Statements of information: common interest development associations: limited liability companies.
The bill is expected to facilitate quicker compliance and updates for common interest development associations and limited liability companies by enabling them to submit their required documentation online. This can improve the speed of processing and accessibility of information for regulatory bodies and the public, enhancing transparency regarding the operations of these entities. Moreover, it seeks to alleviate potential confusion and delays associated with physical filing.
Assembly Bill 786, introduced by Assembly Member Kiley, aims to modernize the processes surrounding the filing of information by common interest development associations and limited liability companies in California. The bill proposes to amend Section 5405 of the Civil Code and Section 17702.09 of the Corporations Code to allow for the electronic submission of required statements of information, thereby streamlining the administrative burden on these entities. This aligns with broader efforts to increase efficiency and reduce paperwork in state governance.
While the bill primarily aims at improving administrative efficiency, there may be concerns about internet accessibility for all associations and companies, particularly smaller entities or those in underserved areas. Ensuring that all entities can successfully transition to an online filing system will be key to the bill's success. Furthermore, regulatory oversight may need to adapt to this new online environment to prevent any lapses in compliance during the transition.