BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 1765| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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 Page 2 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 AB 1765 Page 3 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 AB 1765 Page 4 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) AB 1765 Page 5 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 **** END ****