BILL NUMBER: AB 624	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Coto

                        FEBRUARY 21, 2007

   An act to add Section 5081 to the Corporations Code, and to add
Section 16065 to the Probate Code, relating to private foundations.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 624, as introduced, Coto. Private foundations: diversity.
   Existing law regulates the administration of nonprofit
corporations and trusts that are deemed to be private foundations, as
defined under federal tax law, and requires these private
foundations to distribute their income for each taxable year so as
not to subject the private foundation or its property to specified
federal tax requirements. Existing law requires these entities to
prepare specified annual reports.
   This bill would require a private foundation with assets over
$250,000,000 to collect specified ethnic and gender data pertaining
to its governance and grantmaking. The bill would require this
information to include, but not be limited to, the following: the
racial and gender composition of the board of directors or trustees,
the number of grants awarded to specified organizations serving
ethnic minority communities, and the percentage of grant dollars
awarded to specified organizations where 50% or more of the board
members are ethnic minorities. The bill would require these private
foundations to disclose this information via its Internet Web site,
if available, and to include this information in its annual report,
as specified.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 5081 is added to the Corporations Code, to
read:
   5081.  (a) Notwithstanding any other provision of law, a
corporation, during any period or periods that it is deemed to be a
"private foundation" as defined in Section 509 of the Internal
Revenue Code, shall collect the following information:
   (1) The racial composition of its board of directors, including
the percentage of board members that are African-American,
Asian-American, Pacific Islander, Caucasian, Latino, Native American,
and Alaskan Native.
   (2) The gender composition of its board of directors, including,
the percentage of board members who are male and female.
   (3) The racial composition of the private foundation's staff,
including the percentage of staff members that are African-American,
Asian-American, Pacific Islander, Caucasian, Latino, Native American,
and Alaskan Native.
   (4) The gender composition of the private foundation's staff,
including, the percentage of staff who are male and female.
   (5) The percentage of business contracts awarded to businesses
owned by African-Americans, Asian-Americans, Pacific Islanders,
Caucasians, Latinos, Native Americans, and Alaskan Natives.
   (6) The number of grants awarded to organizations serving
African-American, Asian-American, Pacific Islander, Caucasian,
Latino, Native American, and Alaskan Native communities.
   (7) The percentage of grant dollars awarded to organizations
serving African-American, Asian-American, Pacific Islander,
Caucasian, Latino, Native American, and Alaskan Native communities.
   (8) The number of grants awarded to organizations where 50 percent
or more of the board members are ethnic minorities.
   (9) The percentage of grant dollars awarded to organizations where
50 percent or more of the board members are ethnic minorities.
   (10) The number of grants awarded to organizations where 50
percent or more of the staff are ethnic minorities.
   (11) The percentage of grant dollars awarded to organizations
where 50 percent or more of the staff are ethnic minorities.
   (b) The information collected pursuant to subdivision (a) shall be
posted on the private foundation's Internet Web site, if available,
and included in its annual report in a section labeled "DIVERSITY."
   (c) This section shall only apply to private foundations with
assets over two hundred fifty million dollars ($250,000,000).
   (d) For purposes of this section, "organization" means an
organization described in Section 501(c)(3) of the Internal Revenue
Code.
  SEC. 2.  Section 16065 is added to the Probate Code, to read:
   16065.  (a) Notwithstanding any other provision of law, a trust,
during any period or periods that it is deemed to be a "private
foundation" as defined in Section 509 of the Internal Revenue Code,
shall collect the following information:
   (1) The racial composition of its board of trustees or directors,
including the percentage of board members that are African-American,
Asian-American, Pacific Islander, Caucasian, Latino, Native American,
and Alaskan Native.
   (2) The gender composition of its board of trustees or directors,
including, the percentage who are male and female.
   (3) The racial composition of the charitable trust or private
foundation's staff, including the percentage of staff members that
are African-American, Asian-American, Pacific Islander, Caucasian,
Latino, Native American, and Alaskan Native.
   (4) The gender composition of the charitable trust or private
foundation's staff, including, the percentage who are male and
female.
   (5) The percentage of business contracts awarded to businesses
owned by African-Americans, Asian-Americans, Pacific Islanders,
Caucasians, Latinos, Native Americans, and Alaskan Natives.
   (6) The number of grants awarded to organizations serving
African-American, Asian-American, Pacific Islander, Caucasian,
Latino, Native American, and Alaskan Native communities.
   (7) The percentage of grant dollars awarded to organizations
serving African-American, Asian-American, Pacific Islander,
Caucasian, Latino, Native American, and Alaskan Native communities.
   (8) The number of grants awarded to organizations where 50 percent
or more of the board members are ethnic minorities.
   (9) The percentage of grant dollars awarded to organizations where
50 percent or more of the board members are ethnic minorities.
   (10) The number of grants awarded to organizations where 50
percent or more of the staff are ethnic minorities.
   (11) The percentage of grant dollars awarded to organizations
where 50 percent or more of the staff are ethnic minorities.
   (b) The information collected pursuant to subdivision (a) shall be
posted on the private foundation's Internet Web site, if available,
and included in its annual report in a section labeled "DIVERSITY."
   (c) This section shall only apply to private foundations with
assets over two hundred fifty million dollars ($250,000,000).
   (d) For purposes of this section, "organization" means an
organization described in Section 501(c)(3) of the Internal Revenue
Code.