BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 2641|
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THIRD READING
Bill No: AB 2641
Author: Skinner (D)
Amended: 8/23/12 in Senate
Vote: 21
SENATE BUS., PROF. & ECON. DEV. COMMITTEE : 7-0, 7/2/12
AYES: Price, Corbett, Correa, Hernandez, Negrete McLeod,
Vargas, Wyland
NO VOTE RECORDED: Emmerson, Strickland
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 51-23, 5/30/12 - See last page for vote
SUBJECT : Nonprofit corporations: Internet Web site
SOURCE : Author
DIGEST : This bill requires the Governors Office of
Business and Economic Development (GO-Biz) to post on its
Internet Web site information to assist a person in
starting a nonprofit corporation and to assist nonprofit
corporations to achieve compliance with the state's
statutory and regulatory requirements.
Senate Floor Amendments of 8/23/12 specify the
responsibilities of the Governor's Office of Business and
Economic Development to post information regarding starting
a nonprofit corporation.
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ANALYSIS : Existing law, the Corporations Code:
1. Provides for the organization and governance of
nonprofit public benefit corporations, nonprofit mutual
benefit corporations, and nonprofit religious
corporations.
2. Requires these corporations to prepare and file articles
of incorporation with the Secretary of State (SOS), and
within 90 days of that filing, and biennially
thereafter. Requires these corporations to file a form
prescribed by the SOS stating specified information
regarding certain officers, office location, and agent
for service of process, among other information
Existing law, the Government Code:
1. Establishes GO-Biz within the Governor's Office for the
purpose of serving as the lead state entity for economic
strategy and marketing of California on issues relating
to business development, private sector investment and
economic growth. GO-Biz also serves as the
administrative oversight for the California Business
Investment Service and the Office of the Small Business
Advocate.
2. Provides that the Governor shall appoint the Director of
GO-Biz who shall perform all duties, exercise all
powers, assume and discharge all responsibilities, and
carry out and effect all purposes vested by law in the
office, including contracting for professional or
consultant services in connection with the work of the
office.
3. Establishes the Business, Transportation and Housing
Agency (BTH) for the purpose, among other things, of
overseeing and coordinating the activities of various
departments, offices, and economic development programs,
with responsibility for maintaining the strength and
efficiency of California's infrastructure and financial
markets. These programs provide financial and
programmatic regulation important to the economic
marketplace, community development, the safe and
efficient flow of commerce, and activities related to
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international trade and investment.
4. Provides the BTH shall be the primary state agency
responsible for trade and foreign investment activities,
and directs BTH, among other things, to engage in
specified activities as it relates to trade and foreign
investment.
5. Requires a charitable corporation, as defined, to file
periodic written reports with the Attorney General
beginning within 4 months and 15 days following the
close of the first calendar or fiscal year in which it
initially receives property, setting forth information
as to the nature of the assets held for charitable
purposes.
This bill:
1. Requires GO-Biz to post on its Internet Web site
information to assist an individual to start a nonprofit
corporation and to assist nonprofit corporations to
achieve compliance with the state's statutory and
regulatory requirements.
2. Requires specified state agencies to provide the office
with direct links to information about their
requirements. The Internet Web site shall contain
direct links to information on the incorporation,
registration, and renewal requirements of all of the
following agencies as well as direct links to the
agencies:
A. Employment Development Department.
B. Franchise Tax Board.
C. Internal Revenue Service.
D. Office of the Attorney General.
E. Office of the Secretary of the State.
F. State Board of Equalization.
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3. Requires the Internet Web site to include direct links
to, but not be limited to, information that does all of
the following:
A. Assists individuals with identifying all state
forms or documents they may need.
B. Provides direct links to an electronic copy of
all state forms and documents available for
download.
C. Instructs individuals on how and where to submit
all state forms and documents.
D. Assists nonprofit corporations with identifying
the state's statutory and regulatory requirements
they must comply with to maintain their status as a
nonprofit corporation in this state
E. Informs individuals to contact local agencies
regarding local requirements.
4. Requires GO-Biz to ensure that the Internet Web site is
user friendly and provides accurate and updated
information.
5. Prohibits a state agency from using this Internet Web
site as the exclusive source of information that it
provides to the public.
Background
Governor's Office of Business and Economic Development . In
February 2010, the Little Hoover Commission (LHC) undertook
a review of the state's economic and workforce development
programs. In its final report, Making up for Lost Ground:
Creating a Governor's Office of Economic Development, it
analyzed the status and effectiveness of current programs
since the 2003 demise of the Technology, Trade and Commerce
Agency and recommended the creation of a new governmental
entity to fill the void left by the dismantled agency.
The report called for a single entity that would promote
greater economic development, foster job creation, serve as
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a policy advisor and deliver specific services (i.e.,
permitting, tax, regulatory, and other information)
directly to the California business community. In April
2010, Governor Schwarzenegger issued Executive Order
S-05-10 as a means to operationalize the report
recommendations including the creation of the Governor's
Office of Economic Development (GOED).
Since its inception, GOED has served over 3,000 businesses,
95 percent of which are small. The most frequent types of
assistance include help with permit streamlining, starting
a businesses, relocation and expansion of businesses, and
regulatory challenges.
Under the auspices of GOED, a number of state programs and
services are administered, including programs related to
international trade, permit assistance, the Office of the
Small Business Advocate, and innovation. There are 23
positions assigned to GOED in 2011-12 Budget, which are
funded through existing state resources and staffed by
personnel loaned from state agencies and departments. In
October 2011, the Governor signed AB 29 (cited and
described below), which effectively codified GOED and
changed its name to GO-Biz, effective January 1, 2012.
Among other programs, GO-Biz administers the Innovation Hub
(iHUB) program in partnership with the statewide network of
Small Business Development Centers. There are currently 12
regional iHUBs located throughout the state. The iHUB
program is designed to improve the state's national and
global competitiveness by stimulating partnerships,
economic development, and job creation around specific
research clusters. Key assets and partners of the
initiative include technology incubators, research parks,
universities, federal laboratories, economic development
organizations, business groups, and venture capitalists.
Another key initiative of GO-Biz is the "strike teams"
which can be mobilized to help attract and/or retain
specific businesses. Strike teams are especially well
suited to engage with major employers and have been
successfully activated to assist Bayer Healthcare, Jazz
Semiconductor, and Baxter Pharmaceutical to locate and/or
expand in California.
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GO-Biz is also sponsoring a permit streamlining pilot
project, which will offer a One-Stop-Shop for state and
local permits. The pilot, launched in partnership with the
City and County of San Francisco, will allow a business
owner to login to a single Web site (24x7) and apply for
and pay all necessary city, county and state permits.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 8/7/12)
AFSCME
ARGUMENTS IN SUPPORT : According to the author, "there is
no single government website that lists all of the
incorporation and renewal requirements. Different websites
for government agencies lists select requirements, but
there is no complete, comprehensive list that details the
requirements for both incorporation and renewal."
The author further contends that, "larger nonprofits have
the resources to hire lawyers for the creation and renewal
of the organization, while ensuring that the organization
is in compliance with state law. Smaller nonprofits do not
have equivalent resources, resulting in many nonprofits
failing to comply with state law. It is difficult for
smaller nonprofits to even know what paperwork needs to be
filed on a yearly basis."
The author believes there needs to be a single government
resource that nonprofit organizations can utilize to attain
updated and accurate information regarding registration and
renewal requirements
ASSEMBLY FLOOR : 51-23, 5/30/12
AYES: Alejo, Allen, Ammiano, Atkins, Beall, Block,
Blumenfield, Bonilla, Bradford, Brownley, Buchanan,
Butler, Charles Calderon, Campos, Carter, Cedillo,
Chesbro, Dickinson, Eng, Fong, Fuentes, Furutani,
Galgiani, Gatto, Gordon, Hall, Hayashi, Roger Hernández,
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Hill, Huber, Huffman, Jeffries, Lara, Bonnie Lowenthal,
Ma, Mendoza, Miller, Mitchell, Monning, Pan, Perea, V.
Manuel Pérez, Portantino, Skinner, Solorio, Swanson,
Torres, Wieckowski, Williams, Yamada, John A. Pérez
NOES: Achadjian, Conway, Cook, Donnelly, Beth Gaines,
Garrick, Gorell, Grove, Hagman, Halderman, Harkey, Jones,
Knight, Logue, Mansoor, Morrell, Nestande, Nielsen,
Norby, Olsen, Silva, Smyth, Wagner
NO VOTE RECORDED: Bill Berryhill, Davis, Feuer, Fletcher,
Hueso, Valadao
JJA:d 8/24/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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