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AB-2221 Business Filing Coordination Council.(2013-2014)

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Enrolled  August 20, 2014
Passed  IN  Senate  August 13, 2014
Passed  IN  Assembly  August 18, 2014
Amended  IN  Senate  August 07, 2014
Amended  IN  Assembly  March 28, 2014

CALIFORNIA LEGISLATURE— 2013–2014 REGULAR SESSION

Assembly Bill
No. 2221


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.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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.