Fictitious business names.
The implementation of AB 1912 would fundamentally enhance the transparency of business operations by providing a statewide database that allows residents and other businesses to easily verify the legitimacy of fictitious business names. County clerks would be required to send statements to the Secretary of State to ensure that the online index is kept up-to-date. This is expected to facilitate better compliance monitoring and strengthen the integrity of business practices across California.
Assembly Bill 1912, introduced by Assembly Member Boerner Horvath, seeks to amend current regulations regarding fictitious business names in California. Under existing law, individuals or entities conducting business under a fictitious name must file a business name statement with local county clerks within 40 days of commencing business. AB 1912 proposes the creation of a centralized, searchable index maintained by the Secretary of State, which would streamline access and improve public tracking of fictitious business name registrations across the state.
A notable point of contention regarding AB 1912 pertains to the funding mechanism for maintaining this new index. The bill includes a provision that, should the Commission on State Mandates identify any costs incurred by local agencies, the state will be responsible for reimbursing those costs. This has raised concerns among local officials regarding potential budgetary impacts and the sufficiency of state funds to cover such mandates. Supporters argue that such a system is necessary for consumer protection, while opponents worry about the financial implications for local government budgets.