BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 1765|
|Office of Senate Floor Analyses | |
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THIRD READING
Bill No: AB 1765
Author: Irwin (D)
Amended: 4/19/16 in Assembly
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE: 13-0, 6/28/16
AYES: Hall, Berryhill, Bates, Block, Gaines, Galgiani, Glazer,
Hernandez, Hill, Hueso, Lara, McGuire, Vidak
SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/11/16
AYES: Lara, Bates, Beall, Hill, McGuire, Mendoza, Nielsen
ASSEMBLY FLOOR: 80-0, 5/31/16 - See last page for vote
SUBJECT: CaliforniaVolunteers: nonprofit public benefit
corporation
SOURCE: Author
DIGEST: This bill authorizes CaliforniaVolunteers, 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.
ANALYSIS: Existing law establishes CaliforniaVolunteers
(Executive Order S-24-06) in the Governor's Office with the
specific mission to recruit and mobilize citizens for volunteer
service by identifying service opportunities throughout the
state and by recognizing citizen contributions as volunteers and
participants in public service.
AB 1765
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This bill:
1)Authorizes CaliforniaVolunteers to form a tax-exempt public
benefit nonprofit corporation, or other tax-exempt entity,
qualified under federal and state law to raise revenues and
receive grants or other financial support from public or
private sources, for the purpose of undertaking or funding any
lawful activity authorized to be undertaken by
CaliforniaVolunteers.
2)Stipulates that grants and financial support received by the
nonprofit corporation or other tax-exempt entity authorized in
this bill shall be used solely for governmental purposes
approved by CaliforniaVolunteers 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 for the
administrative costs of that nonprofit public benefit
corporation or other entity.
4)Specifies that the mission of the nonprofit public benefit
corporation or other entity is as follows:
a) To support the funding of CaliforniaVolunteers
programming and administrative costs; and,
b) To support any priorities set forth by the Governor or
the CaliforniaVolunteers board of commissioners.
5)Provides that the authority to establish the nonprofit public
benefit corporation or other entity shall expire if the
Governor rescinds the establishment of CaliforniaVolunteers.
Background
Existing federal law establishes the National and Community
Service Trust Act of 1993, which requires each state governor to
create and appoint a commission to administer the AmeriCorps
volunteer program. AmeriCorps engages Americans in intensive
service each year at nonprofits, schools, public agencies, and
community and faith-based groups across the country. AmeriCorps
service assignments may be part time or full time and generally
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range from ten to 12 months. Service members receive a small
stipend and qualifying members are eligible for an education
award that can be used to pay for college or pay back student
loans.
Existing law, by Executive Order S-24-06, establishes
CaliforniaVolunteers in the Governor's Office as the state
commission required under federal law for participation in
AmeriCorps. CaliforniaVolunteers 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. Duties and responsibilities of
CaliforniaVolunteers include, but are not limited to, the
following:
Recruiting and mobilizing citizens for volunteer service by
identifying service opportunities throughout the state and by
recognizing citizens for the contributions they make as
volunteers and participants in public service programs;
Serving as the state's lead agency for community service and
volunteerism, informing the public of the value of and need
for greater community service and volunteerism in California,
calling upon all Californians to become involved, and
challenging public and private institutions to create and
support community service and volunteer opportunities; and,
Partnering with other public agencies at the state, county,
and local levels, and the private and nonprofit sectors to
leverage greater resources and create more opportunities for
service and volunteerism.
Comments
Purpose of AB 1765. The author's office notes that programs
administered through CaliforniaVolunteers raise a certain amount
of money on their own in order to receive matching federal and
state funds. However, many smaller organizations, including
those in rural and low-income areas are unable to raise the
initial capital needed to secure matching funds. This bill is
intended to provide a mechanism for CaliforniaVolunteers to
generate more revenue from public and private sources to fund a
broader range of programs and engage more Californians in
community service. The author's office believes that additional
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resources and programs will enable CaliforniaVolunteers to
recruit a greater number of passionate and civic minded
individuals who will benefit from such a public service
experience.
Proponents state that "AB 1765 will enable CaliforniaVolunteers,
through a tax-exempt entity, to receive money directly from
private and public sources that will ultimately benefit its
diverse service programs across the state. It will also be able
to support a wider range of service organizations across
California that may otherwise not be able to secure funds on
their own. Rural and lower-income communities can benefit from
increased funds to secure matching state and federal grants."
Prior Legislation
AB 706 (Bonilla, 2015) would have required CaliforniaVolunteers
to administer an AmeriCorps program with a Science, Technology,
Engineering and Math focus and authorized CaliforniaVolunteers
to establish a nonprofit entity similar to the mechanism in AB
1765 (Irwin, 2016). (Vetoed by the Governor who stated that
"without a funding source the program established in this bill
would not be viable.")
FISCAL EFFECT: Appropriation: No Fiscal
Com.: Yes Local: No
According to the Senate Appropriations Committee, estimated
CaliforniaVolunteers administrative costs of approximately
$200,000 and one PY to staff the nonprofit foundation (General
Fund, private funds).
SUPPORT: (Verified 8/12/16)
America's Service Commissions
AT&T
Child Abuse Prevention Center
TechNet
OPPOSITION: (Verified 8/12/16)
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None received
ASSEMBLY FLOOR: 80-0, 5/31/16
AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker,
Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke,
Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley,
Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth
Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto,
Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper,
Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim,
Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis,
Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte,
O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez,
Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting,
Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon
Prepared by:Arthur Terzakis / G.O. / (916) 651-1530
8/15/16 20:26:56
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