BILL ANALYSIS Ó
AB 2641
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 2641 (Skinner)
As Amended August 23, 2012
Majority vote
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|ASSEMBLY: |51-23|(May 30, 2012) |SENATE: |35-1 |(August 28, |
| | | | | |2012) |
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Original Committee Reference: G.O.
SUMMARY : Requires the Governor's 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.
The Senate amendments :
1)Delete the requirement for specified agencies to provide
GO-Biz with accurate and updated information about its
requirements.
2)Delete language that would have required GO-Biz to be
responsible for maintaining updated information on the
requirements of the Internal Revenue Service.
3)Require the Internet Web site to contain direct links to
information on the incorporation, registration, and renewal
requirements of specified state agencies.
4)Require specified state agencies to provide GO-Biz with direct
links to information to assist nonprofit corporations to
achieve compliance with the state's statutory and regulatory
requirements.
EXISTING LAW :
1)Provides for the organization and governance of nonprofit
public benefit corporations, nonprofit mutual benefit
corporations, and nonprofit religious corporations.
2)Requires nonprofit corporations to prepare and file articles
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of incorporation with the Secretary of State (SOS), and within
90 days of that filing, and biennially thereafter, to file a
form prescribed by the SOS specifying information regarding
certain specified information.
3)Requires charitable corporations to file periodic written
reports with the Attorney General beginning within four months
and 15 days following the close of the first calendar or
fiscal year in which it initially receives property stating
information as to the nature of the assets held for charitable
purposes and the administration thereof.
4)Requires charitable corporations, unincorporated associations
and trusts to be filed with the Attorney General articles of
incorporation, or other documents governing the organization's
operations within 30 days after initial receipt of property.
5)Requires charitable corporations with gross revenues of $2
million or more to prepare annual financial statements audited
by an independent certified public accountant.
6)Requires charities with gross revenues of $2 million or more
to establish and maintain an audit committee.
7)Requires executive compensation by charitable corporations,
unincorporated associations and charitable trusts must be
review and approved.
FISCAL EFFECT : Unknown
COMMENTS :
Governor's Office of Business and Economic Development : GO-Biz
was created by Governor Edmund G. Brown Jr. to serve as
California's single point of contact for economic development
and job creation efforts. GO-Biz offers a range of services to
business owners including: attraction, retention and expansion
services, site election, permit streamlining, clearing of
regulatory hurdles, small business assistance, international
trade development, assistance with state government, and much
more.
Purpose of the bill : According to the author, "there is no
single government website that lists all of the incorporation
and renewal requirements. Different websites for government
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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."
Arguments in support : The American Federation of State, County
and Municipal Employees (AFSCME), AFL-CIO states that, "AB 2641
resolves the issue by simplifying the incorporation and renewal
processes for nonprofits by providing a single government
website that provides all of the necessary information and
forms, while helping the organizations stay in compliance with
the law."
Prior legislation : AB 29 (John A. Pérez), Chapter 475, Statutes
of 2011. This bill created, within the Governor's office, the
Governor's Office of Business and Economic Development.
Analysis Prepared by : Felipe Lopez / G. O. / (916) 319-2531
FN: 0005763