BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 657
                                                                  Page  1

          Date of Hearing:   May 4, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                    AB 657 (Gordon) - As Amended:  March 21, 2011 

          Policy Committee:                              Banking and 
          Finance      Vote:                            11-0

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              No


           SUMMARY  

          This bill revises and recasts filing requirements and notice 
          requirements concerning documents that need to be filed within 
          the Secretary of State's office.    Specifically, this bill:  

          1)Allows the SOS's office to receive an annual renewal notice by 
            electronic mail.  

          2)Requires foreign corporations to file an initial Statement of 
            Information within 90 days of formation or registration.  

          3)Allows a common interest development corporation to file a 
            "Statement by Common Interest Development" while the common 
            interest development corporation is suspended.  

          4)Sets the fee for the initial 90-day Statement of Information 
            for California and foreign limited liability companies (LLCs), 
            credit union corporations and consumer cooperative 
            corporations at $20.  

          5)Makes other minor and technical changes.  

           FISCAL EFFECT  

          Minor absorbable costs to the Secretary of State's office to 
          implement the bill's provisions and possible cost savings once 
          the electronic system is operational.

           COMMENTS  









                                                                  AB 657
                                                                  Page  2

           1)Purpose.   According to the sponsor, Secretary of State Debra 
            Bowen, California statutes have not kept up to date with the 
            way we do business in the state.  For example, the law 
            requires mailing of paper notices to all corporations and 
            LLCs, reminding the entity to file the required annual or 
            biennial Statement of Information.  As a result, the Secretary 
            of State mails over 1.2 million reminder, delinquency, penalty 
            and suspension notices to businesses at a cost of over 
            $500,000 in printing and postage each fiscal year.  The costs 
            and staff time can be significantly reduced by sending 
            statutory required notices via email to businesses that 
            voluntary opt to receive their notifications in this fashion


           Analysis Prepared by  :    Roger Dunstan / APPR. / (916) 319-2081