Bill Text: CA AB2221 | 2013-2014 | Regular Session | Enrolled
Bill Title: Business Filing Coordination Council.
Spectrum: Bipartisan Bill
Status: (Vetoed) 2014-09-29 - Vetoed by Governor. [AB2221 Detail]
Download: California-2013-AB2221-Enrolled.html
BILL NUMBER: AB 2221 ENROLLED
BILL TEXT
PASSED THE SENATE AUGUST 13, 2014
PASSED THE ASSEMBLY AUGUST 18, 2014
AMENDED IN SENATE AUGUST 7, 2014
AMENDED IN ASSEMBLY MARCH 28, 2014
INTRODUCED BY Assembly Member Campos
(Coauthor: Senator Berryhill)
FEBRUARY 20, 2014
An act to add Article 3.5 (commencing with Section 12217) to
Chapter 3 of Part 2 of Division 3 of Title 2 of the Government Code,
relating to state government.
LEGISLATIVE COUNSEL'S DIGEST
AB 2221, Campos. Business Filing Coordination Council.
Existing law requires certain business entities, including, but
not limited to, a corporation, a limited partnership, and a limited
liability partnership, to make various business filings with the
Secretary of State. Existing law authorizes the Secretary of State to
promulgate regulations and rules related to business filings and to
refuse a filing based on a reasonable belief that the filing is
unlawful, false, or has a fraudulent purpose.
This bill would establish, within the Secretary of State's office,
the Business Filing Coordination Council composed of 7 members, as
specified. The bill would require the council to, among other things,
provide businesses with additional points of contact for concerns or
suggested innovations for improving the state business climate
through streamlined business filings and annually report to the
Governor and Legislature on the progress of meeting its requirements.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) Filing business formation documents with the Secretary of
State is often the first official step that most new businesses take
when becoming a part of the California business community.
(b) More than two million business documents of various kinds are
processed by the Secretary of State's Business Programs Division.
(c) Efficient and timely processing of business document filings
is instrumental to helping businesses establish within the state.
(d) Currently, the Secretary of State's business document filing
process is manual, paper-based, and labor-intensive, and many paper
copies kept on file are not duplicated, do not have a backup system,
and could easily be lost in an accident or disaster.
(e) While some automated workflow improvements have been made, the
large majority of the 1.7 million business entities that file
annually with the Secretary of State are forced to interface with
antiquated processes.
(f) To improve efficiency and security in document filing, the
Secretary of State has created the California Business Connect
Project.
(g) The California Business Connect Project will benefit
businesses by doing all of the following:
(1) Ensuring a more secure processing of payments.
(2) Providing online help in completing forms.
(3) Reducing the cost and time required to establish and maintain
a business.
(4) Providing services 24 hours a day, seven days a week.
(5) Allowing users to see all filing activities related to a
business over the long term.
(6) Processing business filings faster.
(7) Helping businesses create jobs sooner.
(8) Bringing revenue to the state sooner.
(9) Reducing the use of paper.
(10) Providing reliable online research of entities doing business
in California.
(11) Providing online debtor information.
(h) Due to the critical role played by businesses of all sizes in
supporting the state by stimulating job creation and expanding the
economy, there are numerous state agencies that assist in business
formation and development.
(i) To ensure that California businesses receive the benefits
intended from the California Business Connect Project, the state must
facilitate coordination and cooperation between the Secretary of
State's office and state agencies that serve the millions of
California businesses that file documents with the Secretary of
State.
SEC. 2. Article 3.5 (commencing with Section 12217) is added to
Chapter 3 of Part 2 of Division 3 of Title 2 of the Government Code,
to read:
Article 3.5. Business Filing Coordination Council
12217. (a) There is established, within the Secretary of State's
office, the Business Filing Coordination Council.
(b) The Business Filing Coordination Council shall review and
collect data concerning the needs of businesses required to file
documents with the Secretary of State's office. The council shall
support, maintain, and improve the efficiency of business filings and
provide businesses with additional points of contact for concerns or
suggested innovations for improving the state business climate
through streamlined business filings.
(c) On or before December 31 of each year, the Business Filing
Coordination Council shall report to the Governor and the Legislature
on the progress of meeting the requirements in subdivision (b) in
compliance with Section 9795. The report shall be made available on
the Internet Web site of the Secretary of State.
12217.10. The council shall be composed of the following seven
members:
(a) The Commissioner of Business Oversight, or his or her
designee.
(b) The Director of Consumer Affairs, or his or her designee.
(c) The Secretary of State, or his or her designee.
(d) The Director of Technology, or his or her designee.
(e) One member appointed by the Senate Committee on Rules.
(f) One member appointed by the Speaker of the Assembly.
(g) One member appointed by the Governor.
12217.15. Members of the Business Filing Coordination Council
shall serve without compensation, and state funds shall not be used
to compensate a member for his or her expenses.
