BILL ANALYSIS Ó AB 1765 Page 1 Date of Hearing: March 30, 2016 ASSEMBLY COMMITTEE ON ACCOUNTABILITY AND ADMINISTRATIVE REVIEW Cristina Garcia, Chair AB 1765 (Irwin) - As Introduced February 3, 2016 SUBJECT: CaliforniaVolunteers: nonprofit public benefit corporation SUMMARY: Authorizes CaliforniaVolunteers (CV), the state entity within the Governor's Office that manages programs and initiatives for volunteerism, to form a tax-exempt public benefit nonprofit corporation, or other qualified tax-exempt entity, to raise revenues and receive financial support from public or private sources, for the purpose of undertaking or funding authorized activities. Specifically, this bill: 1)Allows CV to form a nonprofit corporation, or other tax-exempt entity, for fundraising purposes, as specified. 2)Requires financial support sought by the nonprofit entity authorized in this bill to be used solely for governmental purposes approved by CV for activities within its authority. 3)Specifies that the mission of the CV nonprofit entity is to support the funding of CV programming and administrative costs and to support any priorities set forth by the Governor or the CV board of commissioners. AB 1765 Page 2 4)Provides that the authority to establish the nonprofit entity expires if the Governor rescinds the establishment of CV. FISCAL EFFECT: Unknown COMMENTS: CV is the designated state service entity in the Governor's office that administers federal AmeriCorps funds and grants in California. AmeriCorps is a national network of programs throughout the US that engage Americans in intensive community service projects at public agencies and nonprofit organizations across the country. Members work in a variety of service programs that address critical community needs in the areas of education, public safety, health, the environment, and disaster response. CV was established by Executive Order S-24-06 with the specific mission to recruit and mobilize citizens for volunteer service by identifying service opportunities in California. CV provides federal AmeriCorps grant funding to a host of community programs throughout the state, particularly those that target unmet needs in counties with no AmeriCorps state presence; provide critical support to veterans; and, promote economic opportunities for disadvantaged communities. Currently, CV helps to fund nearly 50 programs across the state. This bill authorizes CV to set up a nonprofit foundation to receive additional monetary support for the various programs that it funds. CV receives approximately $830,000 from the state General Fund for its operations but most of its budget is federally funded with a large majority passing through to AmeriCorps grantees. According to the author, the bill provides a mechanism for CV to generate more revenue from public and private sources to fund a broader range of programs and engage more Californians in community service. AB 1765 Page 3 PRIOR LEGISLATION: 1)AB 706 (Bonilla) of 2015 would have required CV to administer an AmeriCorps program with a Science, Technology, Engineering and Math (STEM) focus and authorized CV to establish a nonprofit entity similar to the mechanism in this is bill. AB 706 was vetoed by the Governor who stated that "without a funding source the program established in this bill would not be viable." 2)AB 2328 (John A. Pérez) of 2014 would have created the Cal AmeriCorps program administered by CV and enabled local governments to compete to host service members. AB 2328 was vetoed by the Governor who noted that "California already has programs, such as the California Conservation Corps and the California Volunteers Service Enterprise Initiative, that couple volunteer service with educational scholarships." REGISTERED SUPPORT / OPPOSITION: Support Child Abuse Prevention Center TechNet Opposition AB 1765 Page 4 None on file Analysis Prepared by:Cassie Royce / A. & A.R. / (916) 319-3600