BILL ANALYSIS
AB 918
Page 1
ASSEMBLY THIRD READING
AB 918 (Adams)
As Amended April 21, 2009
Majority vote
JUDICIARY 10-0
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|Ayes:|Feuer, Tran, Brownley, | | |
| |Evans, Jones, Knight, | | |
| |Krekorian, Lieu, Monning, | | |
| |Nielsen | | |
|-----+--------------------------+-----+--------------------------|
| | | | |
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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
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 have the same meaning as
in Government Code Section 12599(a).
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 Web site address of
the organization that owns the box, in addition to a statement
AB 918
Page 2
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;
and,
c) A statement describing the previous year's charitable
activity, including the percentage of the organization's
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; and,
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.
AB 918
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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 Revenue and Taxation Code
Section 23701d or 23701f from any tax imposed by the Bank and
Corporations Tax Law.
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.
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 Welfare and Institutions Code Section 148.3.
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.
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.
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.
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FISCAL EFFECT : None
COMMENTS : This bill, sponsored by the California Council of
Goodwill Industries (Goodwill), 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
proceeds was used for the charitable cause in the previous year.
The sponsor, 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 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.
Analysis Prepared by : Anthony Lew / JUD. / (916) 319-2334
FN: 0000363