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The Verde Independent | Cottonwood, Arizona

home : opinions : editorials May 24, 2016

2/25/2014 12:10:00 PM
Editorial: No need to reinvent the wheel on legal notice requirements

Reinventing the wheel with an inferior product is the latest example of political intelligence at the Arizona Legislature.

Rep. John Cavanaugh, a Fountain Hills Republican, has introduced legislation that would require the Arizona Corporation Commission to spend $65,000 in taxpayer money to create a website where minimal information about corporate and limited-liability company filings would be posted for 90 days.

Let's compare that to existing law.

Arizona law already requires detailed filings -- not minimal information -- to be published in a newspaper as part of a permanent record, available to the public. That service comes complete with a legal proof of notice, and online posting to publicnoticeads.com, where they can be accessed today, tomorrow and for years to come.

It bears emphasis that the business community is not asking for this legislation, In fact, the Arizona Chamber, Greater Phoenix Chamber, Lake Havasu Chamber and the Arizona Small Business Association have officially opposed the bill.

Further, let's be clear that such legal notices do represent revenue for newspapers: The statewide average for publication of such legal notices is $35 ... paid for by the corporation.

Again, for the sake of comparison, under the legislation proposed by Rep. Cavanaugh, corporations would no longer have to pay for such legal notices. Instead, the buck would be passed on to the taxpayer.

Are you getting the picture that this proposal simply has not been thought-through.

Cavanaugh's bill makes about as much sense as trading in a 2014 BMW 3 Series 328 for a 1974 Chevy Vega.

His colleagues in the Arizona House of Representatives should do him a favor and junk this clunker.

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Reader Comments

Posted: Thursday, February 27, 2014
Article comment by: Trading down

"...as much sense as trading in a 2014 BMW 3 Series 328 for a 1974 Chevy Vega."

When you've run out of cash and credit, that can make a lot of sense.

Posted: Tuesday, February 25, 2014
Article comment by: Self Serving commentary

We should never be stuck doing things the same old way because this newspaper wants to get income from legal notices. I am not saying the proposed change is good or bad. I am wary when a newspaper opposes something when it has a stake in the process. How many people rely on a newspaper to dig through notices? In this electronic age there may be a better way. Keep an open mind to change

Posted: Tuesday, February 25, 2014
Article comment by: A Fact Is Missing

A crucial fact is missing from this article. I don't know where the editors get the average cost of notices, but here in Yavapai County, it costs at least $150 to get the notice published, much more than the fee paid to the Arizona Corporation Commission. I know Prescott law firms regularly publish legal notices in the Camp Verde Bugle or the Sedona Red Rock News because they are marginally cheaper than the Prescott or Cottonwood papers. (The current law requires the notice to be published in the same county THREE weeks in a row).

A better solution would be to have the Arizona Corporation Commission pay the price up front to build the website and the organizers of the company or the corporation pay the average fee, $35, to the State. 2,000 filings later, and the website is paid for.

Posted: Tuesday, February 25, 2014
Article comment by: Mary Heartman

Not again!

Maybe we all ought to call Rep. Cavanaugh and ask who is behind this perennial attempt to make researching business connections more difficult. It's not just John Cavanaugh. He's just the latest in a long line of sponsors of bills that keep being voted down after months of public outcry.

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