BILL ANALYSIS Ó AB 2289 Page 1 Date of Hearing: April 30, 2014 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mike Gatto, Chair AB 2289 (Daly) - As Introduced: February 21, 2014 Policy Committee: Banking & FinanceVote: 12-0 Urgency: No State Mandated Local Program: No Reimbursable: No SUMMARY This bill amends several provisions of the California Corporations Code and California Financial Code in order to: 1)Authorize the California Department of Business Oversight (CDBO) to accept electronic filings from several of its various licensees and prescribe by rule the circumstances under which it will accept electronic records and signatures. 2)Extend CDBO's franchise renewal application review period from 15 to 30 business days and prescribe the circumstances under which franchise applications are deemed complete for purposes of initiating review. FISCAL EFFECT [Minor and absorbable costs to CDBO for implementation.][DBO to confirm, but very likely] COMMENTS Purpose. According to the author, AB 2289 accomplishes two goals: 1)It allows for the electronic filing of documents relating to several industries regulated by CDBO. The changes expand upon a program initiated by one of CDBO's predecessors, the California Department of Corporations, to accept electronic records in order to reduce administrative costs and enhance efficiency. The bill allows CDBO to continue to require certain documents be filed in person if the Commissioner deems AB 2289 Page 2 it necessary. 2)It extends the automatic effectiveness of franchise renewal applications from 15 to 30 business days and provides the review period does not begin before applicants have submitted a "complete application," which the bill defines to include submission of the filing fee, a specified disclosure document, financial statements, and certain other exhibits. Currently, CDBO is often unable to review franchise renewal applications within the 15 day limit and requests applicants to waive the 15-day limit. Franchise application renewals are due on or before April 20, which results in a significant influx of applications and reviews needed within a short period of time. Analysis Prepared by : Joel Tashjian / APPR. / (916) 319-2081