BILL ANALYSIS
AB 918
Page 1
Date of Hearing: April 14, 2009
ASSEMBLY COMMITTEE ON JUDICIARY
Mike Feuer, Chair
AB 918 (Adams) - As Amended: April 13, 2009
PROPOSED CONSENT (As Proposed to be Amended)
SUBJECT : SALVAGEABLE PERSONAL PROPERTY: COLLECTION BOXES
KEY ISSUE : SHOULD COLLECTION BOXES USED FOR THE SOLICITATION
AND COLLECTION OF SALVAGEABLE PERSONAL PROPERTY DISPLAY ON THEIR
EXTERIOR SPECIFIED INFORMATION ABOUT THE ORGANIZATION THAT OWNS
THE BOX, AND SHOULD LOCAL JURISDICTIONS HAVE AUTHORITY TO
PROHIBIT THE USE OF SUCH BOXES THAT DO NOT FULLY DISCLOSE THIS
INFORMATION?
FISCAL EFFECT : As currently in print this bill is keyed
non-fiscal.
SYNOPSIS
This bill, sponsored by the California Council of Goodwill
Industries, would require an organization that owns an
unattended collection box to conspicuously display specified
information about itself on the exterior of all such boxes it
uses for soliciting or collecting donations of salvageable
personal property. In addition, this bill authorizes local
jurisdictions to prohibit an organization from using or
employing such collection boxes if it does not adhere to these
disclosure requirements. Supporters reasonably contend that
organizations which utilize unattended donation boxes to solicit
donated goods should be required to provide proper disclosure of
information about their organization, to ensure that the public
knows clearly if donations to the box will be going to a
non-profit charitable organization, as opposed to a for-profit
organization, and if so, what specific charitable cause will
benefit from their donation. There is no known opposition to
the bill.
SUMMARY : Requires an organization that owns an unattended
collection box, used for soliciting or collecting donations of
personal property, to conspicuously display specified
information about itself on the exterior of all such collection
boxes, and authorizes local jurisdictions to prohibit the
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organization from employing any collection box if it does not
adhere to these disclosure requirements. Specifically, this
bill :
1)Defines a "collection box" to mean an unattended canister,
box, receptacle, or similar device, used for soliciting and
collecting donations of salvageable personal property.
2)Defines a "commercial fundraiser" to mean an entity that, for
compensation or other consideration, directly or indirectly
solicits or receives contributions for or on behalf of a
charitable organization or charitable purpose, or that is
engaged in, or is held out as being independently engaged in,
the business of soliciting or receiving contributions for
those purposes.
3)Defines two types of "covered organizations", having specified
characteristics, to which the disclosure requirements shall
apply: (a) nonprofit organizations; and (b) for-profit
organizations, including but not limited to commercial
fundraisers, as defined.
4)Requires that a collection box that is owned by a covered
organization clearly and conspicuously display on its exterior
the name, address, telephone number, and website address of
the organization that owns the box, in addition to a statement
in at least two-inch type that states whether the box is owned
and operated by a for-profit organization or a nonprofit
organization.
5) Requires, in the case that the collection box is owned by a
commercial fundraiser, that the box display, in at least
two-inch type, a statement that the box is owned and operated
by a for-profit organization but that the proceeds will
benefit a charitable cause.
6)Requires, in the case the collection box is owned by a
nonprofit organization or a commercial fundraiser, that the
box display the following additional information:
a) The organization's charitable trust number issued by the
Attorney General;
b) The organization's California business license number;
c) A statement describing the previous year's charitable
activity, including the percentage of the organization's
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total donation proceeds that was used for the charitable
cause.
7)Requires, in the case the collection box is owned by a
for-profit organization, that the box display the following
additional information:
a) The for-profit organization's California business
license number;
b) A statement that the contribution is not tax deductible.
8)Authorizes a local jurisdiction to prohibit a person or
eligible organization from placing, using, or employing a
collection box for solicitation purposes if the box does not
adhere to these disclosure requirements. Further provides,
however, that nothing in this proposed legislation shall be
deemed to limit a local jurisdiction from adopting ordinances
or regulations regarding collection boxes that go beyond these
provisions, nor shall it supersede or limit existing federal
authority over fundraising for charitable purposes.
EXISTING LAW :
1)Provides that it shall be unlawful for any association of
persons to engage, directly or indirectly, in soliciting
donations of salvageable personal property, or in selling
salvageable personal property obtained by soliciting, except
an association which is exempt under section 23701d or 23701f
of the Revenue and Taxation Code from any tax imposed by the
Bank and Corporations Tax Law. (Welfare and Institutions Code
Section 148.3.)
2)Defines "solicit" to mean, among other things, requests made
by means of any box or receptacle, upon any public street,
sidewalk or way, or in any public park or in any publicly
owned or controlled place; or by means of any box or
receptacle in any place immediately abutting upon any public
sidewalk or way, or in any place of business open to the
public, or in any room, hallway, corridor, lobby, or
entranceway, or other place open or accessible to the public.
Defines "salvageable personal property" to mean any type of
corporeal personalty, new or used, but not including money or
evidences of debt. (Welfare and Institutions Code Section
148.)
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3)Provides that a "commercial fundraiser for charitable
purposes" shall include any person, association of persons,
corporation, or other entity that obtains a majority of its
inventory for sale by the purchase, receipt, or control for
resale to the general public, of salvageable personal property
solicited by an organization qualified to solicit donations
pursuant to Section 148.3 of the Welfare and Institutions
Code. (Government Code 12599(a).)
4)Governs the activities of charitable organizations and
corporations and specifically regulates their fundraising
activities through the Uniform Supervision of Trustees and
Fundraisers for Charitable Purposes Act. (Government Code
Section 12580 et seq.)
5)States that, while the charitable solicitation industry has a
significant impact upon the well-being of the people of this
state, regulation of solicitations and sale solicitations is
necessary for the public welfare. (Business and Professions
Code Section 17510.)
6)Endows local governments with the power to regulate the time,
manner, and place of activities within their respective
jurisdictions in order to promote order and protect the health
and safety of their citizens. (California Constitution,
article XI.)
COMMENTS : This bill, sponsored by the California Council of
Goodwill Industries, would require an organization that owns an
unattended collection box to conspicuously display specified
information about itself on the exterior of all such boxes it
uses for soliciting or collecting donations of personal
property. In addition, this bill authorizes local jurisdictions
to prohibit an organization from using or employing such
collection boxes if it does not adhere to these disclosure
requirements.
According to the author, the specific disclosure requirements
contained in this bill will ensure that individuals donating
their personal property through use of unattended collection
boxes are informed that their donation is going to either a
non-profit charitable organization or a for-profit organization.
In the case of non-profit organizations or commercial
fundraisers, individuals will also be informed from the box's
exterior what percentage of the organization's total donation
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proceeds was used for the charitable cause in the previous year.
The sponsor, the Council of California Goodwill Industries
(Goodwill), writes that the purpose of this bill is to create a
level playing field for all non-profit organizations that rely
on private clothing and household items donated to support their
charitable programs. Goodwill also states:
It is important that organizations which utilize
unattended donation boxes to solicit donated goods
for resale, for profit, or charitable use are
required to provide proper disclosure about their
organization so the public knows clearly what
charitable cause will benefit from their donation.
The California Association of Nonprofits (CAN) also supports
this bill, stating that the improved disclosure requirements for
unattended collection boxes will help protect the public from
being misled and discourage unscrupulous operators from entering
the clothing donation arena.
Technical Amendment re: Definition of "Commercial Fundraiser" :
The bill as amended defines the term "commercial fundraiser."
However, the term "commercial fundraiser" is already defined in
similar but not identical language in a related section,
Government Code Section 12599(a). In the interest of clarity,
the Committee has recommended that the author take a technical
amendment to conform the definition of "commercial fundraiser"
under this bill by cross-reference to Government Code Section
12599(a).
Prior Legislation : AB 2610 (Davis) of 2008, sought to authorize
local jurisdictions to implement a detailed permitting process,
as specified, for the use of unattended collection boxes,
including the authority to collect local fees for the permit and
authority to determine the physical placement of collection
boxes based on safety criteria. AB 2610 was vetoed by the
Governor.
REGISTERED SUPPORT / OPPOSITION :
Support
California Council of Goodwill Industries (sponsor)
California Association of Nonprofits (CAN)
AB 918
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Opposition
None on file
Analysis Prepared by : Anthony Lew / JUD. / (916) 319-2334