BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1765


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          ASSEMBLY THIRD READING


          AB  
          1765 (Irwin)


          As Amended  April 19, 2016


          Majority vote


           ------------------------------------------------------------------ 
          |Committee       |Votes|Ayes                  |Noes                |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Accountability  |8-0  |Cristina Garcia,      |                    |
          |                |     |Lackey, Brough,       |                    |
          |                |     |Burke, Frazier,       |                    |
          |                |     |Irwin, Medina,        |                    |
          |                |     |Rodriguez             |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Appropriations  |20-0 |Gonzalez, Bigelow,    |                    |
          |                |     |Bloom, Bonilla,       |                    |
          |                |     |Bonta, Calderon,      |                    |
          |                |     |Chang, Daly, Eggman,  |                    |
          |                |     |Gallagher, Eduardo    |                    |
          |                |     |Garcia, Roger         |                    |
          |                |     |Hernández, Holden,    |                    |
          |                |     |Jones, Obernolte,     |                    |
          |                |     |Quirk, Santiago,      |                    |
          |                |     |Wagner, Weber, Wood   |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
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                                                                    AB 1765


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          SUMMARY:  Authorizes CaliforniaVolunteers (CV), within the  
          Governor's Office, to form a tax-exempt public benefit nonprofit  
          corporation for fundraising purposes, as specified, and  
          prohibits the nonprofit public benefit corporation from using  
          more than 10% of the grants and financial support it receives  
          for its own administrative costs.  Specifically, this bill: 


          1)Allows CV 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.
          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)Provides that no more than 10% of the grants and financial  
            support received by the nonprofit entity may be used to pay  
            for the administrative costs of that nonprofit public benefit  
            corporation or other entity.


          4)Specifies that the mission of the 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.


          5)Provides that the authority to establish the nonprofit entity  
            expires if the Governor rescinds the establishment of CV.


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, CV estimates a need for $200,000 and one Personnel  
          Year to staff the nonprofit corporation, but the bill limits  








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          administrative expenditures of the corporation to $10% of funds  
          received.  The amount of funding CV will receive through the  
          nonprofit corporation is unknown.  The difference would be made  
          up with General Fund dollars.


          COMMENTS:  CV is the designated state service entity in the  
          Governor's office that administers federal AmeriCorps funds and  
          grants in California.  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.  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, this 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.    




          Analysis Prepared by:                                             
                          Cassie Royce / A. & A.R. / (916) 319-3600  FN:  
          0003133



















                                                                    AB 1765


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