BILL ANALYSIS �
AB 2641
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Date of Hearing: April 18, 2012
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Isadore Hall, Chair
AB 2641 (Skinner) - As Amended: March 29, 2012
SUBJECT : Internet Web Site
SUMMARY : Requires the Governor's Office of Business and
Economic Development (GO-Biz) to post on its Internet Web site
information to assist a person in starting a nonprofit
corporation and to assist nonprofit corporations to achieve
compliance with the state's statutory and regulatory
requirements. Specifically, this bill :
1)Requires a state agency that has authority to regulate
nonprofit corporations to provide accurate and updated
information about its requirements to GO-Biz.
2)Prohibits a state agency from using this Internet Web site as
the exclusive source of information that it provides to the
public.
3)Authorizes Go-Biz to impose a reasonable fee upon users of the
Internet Web Site.
EXISTING LAW
1)Provides for the organization and governance of nonprofit
public benefit corporations, nonprofit mutual benefit
corporations, and nonprofit religious corporations.
2)Requires nonprofit corporations to prepare and file articles
of incorporation with the Secretary of State (SOS), and within
90 days of that filing, and biennially thereafter, to file a
form prescribed by the SOS specifying information regarding
certain specified information.
3)Requires charitable corporations to file periodic written
reports with the Attorney General beginning within 4 months
and 15 days following the close of the first calendar or
fiscal year in which it initially receives property stating
information as to the nature of the assets held for charitable
purposes and the administration thereof.
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4)Requires charitable corporations, unincorporated associations
and trusts to be filed with the Attorney General articles of
incorporation, or other documents governing the organization's
operations within 30 days after initial receipt of property.
5)Requires charitable corporations with gross revenues of $2
million or more must prepare annual financial statements
audited by an independent certified public accountant.
6)Requires charities with gross revenues of $2 million or more
to establish and maintain an audit committee.
7)Requires executive compensation by charitable corporations,
unincorporated associations and charitable trusts must be
review and approved.
FISCAL EFFECT : Unknown
COMMENTS :
Governor's Office of Business and Economic Development : GO-Biz
was created by Governor Edmund G. Brown Jr. to serve as
California's single point of contact for economic development
and job creation efforts. GO-Biz offers a range of services to
business owners including: attraction, retention and expansion
services, site election, permit streamlining, clearing of
regulatory hurdles, small business assistance, international
trade development, assistance with state government, and much
more.
Purpose of the bill : According to the author, "there is no
single government website that lists all of the incorporation
and renewal requirements. Different websites for government
agencies lists select requirements, but there is no complete,
comprehensive list that details the requirements for both
incorporation and renewal."
The author further contends that, "larger nonprofits have the
resources to hire lawyers for the creation and renewal of the
organization, while ensuring that the organization is in
compliance with state law. Smaller nonprofits do not have
equivalent resources, resulting in many nonprofits failing to
comply with state law. It is difficult for smaller nonprofits
to even know what paperwork needs to be filed on a yearly
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basis."
Information already available online : While it is true that
there is no single government website that provides an easy to
comprehend list of all the incorporation and renewal
requirements that a nonprofit has to follow, there are currently
various websites that provide that information. For example,
the Nonprofit Resources Center's website provides a
comprehensive list of all the requirements that an individual
has to follow in order to start a nonprofit in the State of
California. This list includes not only links to the
appropriate forms, but also links to the appropriate federal and
state laws. The same website also provides information to help
established nonprofits to achieve compliance with the state's
statutory and regulatory requirements.
Arguments in Support : The American Federation of State, County
and Municipal Employees (AFSCME), AFL-CIO states that, "AB 2641
resolves the issue by simplifying the incorporation and renewal
processes for nonprofits by providing a single government
website that provides all of the necessary information and
forms, while helping the organizations stay in compliance with
the law."
Prior Legislation :
AB 29 (J. Perez), Chapter 475, Statutes of 2011. This bill
created, within the Governor's office, the Governor's Office of
Business and Economic Development.
REGISTERED SUPPORT / OPPOSITION :
Support
American Federation of State, County and Municipal Employees
(AFSME), AFL-CIO
Opposition
None on file
Analysis Prepared by : Felipe Lopez / G. O. / (916) 319-2531
AB 2641
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