BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1041
                                                                  Page  1

          Date of Hearing:   July 2, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   SB 1041 (Jackson) - As Amended:  April 21, 2014

          Policy Committee:                              Banking &  
          FinanceVote: 12-0

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

           SUMMARY  

          This bill makes various technical, non-substantive, and  
          clarifying changes throughout the Corporations Code intended to  
          improve efficiency for business filings with the Secretary of  
          State (SOS) and help the SOS prepare for the automated filing  
          system under development as part of the California Business  
          Connect project.

           FISCAL EFFECT 

          Negligible fiscal impact on the SOS; anticipated time and cost  
          savings to SOS during the design, development, training, and  
          implementation stages of the California Business Connect  
          project.

           COMMENTS  

          1)  Purpose.   According to the sponsor, the SOS, this bill is  
            intended to further standardize the business filing process to  
            make it more efficient once the California Business Connect  
            automation project has been completed.  The bill makes various  
            technical, non-substantive, and clarifying changes to achieve  
            two primary goals:

             a)   Standardize certain filing processes to alleviate  
               unnecessary confusion and inconsistences for businesses and  
               other SOS customers.

             b)   Avoid unnecessary design and developments costs  
               associated with the California Business Connect project by  
               eliminating technical deficiencies in current law that  








                                                                  SB 1041
                                                                  Page  2

               would otherwise add unnecessary complexities to the  
               project.

          2)  California Business Connect.   The six-year project that aims  
            to increase efficiency by eliminating paper-based manual  
            transactions and the associated risk of loss to vital state  
            records.  The project will also minimize processing delays  
            through the creation of a uniform data entry platform.   
            Businesses that use California Business Connect will be able  
            to do many of their transactions online, without delay and  
            without paying additional fees.


           Analysis Prepared by  :    Joel Tashjian / APPR. / (916) 319-2081