BILL NUMBER: AB 285	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 12, 2009

INTRODUCED BY   Assembly Member Tran

                        FEBRUARY 13, 2009

   An act to amend Section 20 of the Corporations Code, relating to
corporations.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 285, as amended, Tran. Corporations: electronic transmissions.
   Existing law provides requirements  of   for
 an authorized electronic transmission by a corporation,
including without limitation, that  the recipient has provided an
unrevoked consent to the means of transmission and that  an
electronic  communication   transmission 
to an individual shareholder or member satisfies the federal
Electronic Signatures in Global and National Commerce Act.
   This bill would eliminate the requirement to satisfy that federal
law and  instead  would require that  the
consent to  electronic transmissions to an individual
shareholder or member  of the corporation  who is a natural
person  shall  be preceded by or include a written
statement  to the recipient  containing specified
information.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 20 of the Corporations Code is amended to read:

   20.  "Electronic transmission by the corporation" means a
communication (a) delivered by (1) facsimile telecommunication or
electronic mail when directed to the facsimile number or electronic
mail address, respectively, for that recipient on record with the
corporation, (2) posting on an electronic message board or network
which the corporation has designated for those communications,
together with a separate notice to the recipient of the posting,
which transmission shall be validly delivered upon the later of the
posting or delivery of the separate notice thereof, or (3) other
means of electronic communication, (b) to a recipient who has
provided an unrevoked consent to the use of those means of
transmission for communications under or pursuant to this code, and
(c) that creates a record that is capable of retention, retrieval,
and review, and that may thereafter be rendered into clearly legible
tangible form. However, an electronic transmissionunder this code by
a corporation to an individual shareholder or member  of the
corporation  who is a natural person, and if an officer or
director of the corporation, only if communicated to the recipient in
that person's capacity as a shareholder or member, is not authorized
unless, in addition to satisfying the requirements of this section,
 the consent to  the transmission has been preceded by or
includes a clear written statement to the recipient as to (a) any
right of the recipient to have the record provided or made available
on paper or in nonelectronic form, (b) whether the consent applies
only to that transmission, to specified categories of communications,
or to all communications from the corporation, and (c) the
procedures the recipient must use to withdraw consent.