BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  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