California Secretary of State Debra Bowen recently gave notice of proposed amendments to the regulations governing the Victims of Corporate Fraud Compensation Fund. California corporations and foreign corporations qualified to transact intrastate business here pay an annual $2.50 fee that is deposited into the VCFC Fund. In 2004, the Secretary of State adopted regulations governing the the VCFC Fund. According to the Secretary of State the amendments now being proposed are intended to:
- More accurately reflect the application of corporate law. Because the regulations were initially based upon the Department of Real Estate fraud fund [aka DRE Consumer Recovery Account], there are concepts that are based upon real estate law, which fundamentally do not apply or work with corporate law.
- Refine and simplify the whole process from application to ultimate payout.
Written comments are due by June 1, 2012. No hearing has been scheduled.
For the history of the VCFC Fund and data regarding payouts, see my post from September, 2010.
Nevada Secretary of State Ross Miller has also given notice that his office is proposing amendments to various chapters of the Nevada Administrative Code. The proposed regulations are described as follows:
R067-11: Relating to Registered Agents; adopting certain requirements for entities that act as registered agents; adopting provisions relating to service of process, governing written materials produced by registered agents, demands for information under certain circumstances, and setting forth certain actions which the Secretary of State will take when a registered agent is enjoined from acting as a registered agent and other matters properly relating thereto.
R070-11: Adopting procedures for the imposition of penalties on persons purporting to transact business in this State as a business entity without complying with certain requirements concerning filings with the Secretary of State.
R072-11: Provisions relating to the names of specific forms required by the Secretary of State for certain Uniform Commercial Code Filings.
R074-11: Provisions governing checks or other negotiable instruments returned to the Secretary of State because of insufficient funds.
The deadline for written comments is 5:00 p.m. on May 14, 2012 with a public hearing to be held on May 17, 2012.