BILL ANALYSIS Ó AB 2641 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 2641 (Skinner) As Amended August 23, 2012 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |51-23|(May 30, 2012) |SENATE: |35-1 |(August 28, | | | | | | |2012) | ----------------------------------------------------------------- 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 AB 2641 Page 2 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 AB 2641 Page 3 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