BILL ANALYSIS Ó AB 1765 Page 1 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 | | | | | | | | | | | | ------------------------------------------------------------------ AB 1765 Page 2 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 AB 1765 Page 3 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 Page 4