BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                       AB 1765|
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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.








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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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