BILL ANALYSIS �
AB 2641
Page 1
Date of Hearing: May 2, 2012
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 2641 (Skinner) - As Amended: March 29, 2012
Policy Committee: Governmental
Organization Vote: 11 - 5
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill 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 in achieving
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.
FISCAL EFFECT
1)Workload costs potentially in excess of $150,000 (GF) for
GO-Biz to restructure their current website and the CalGOLD
database (a catalog of searchable information regarding
business permits and licensing requirements) and to gather all
of the required information from affected departments and
agencies.
2)Virtually every department and agency in the state conducts
business with nonprofit organizations. All of those agencies
would be required to provide updated statutory and regulatory
AB 2641
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information for GO-Biz to post on their website and perhaps in
the CalGOLD database. Costs associated with that workload
would likely exceed $100,000 (various funds).
COMMENTS
1)Rationale . The intent of this legislation is to create a
single government website that lists all of the incorporation
and renewal requirements for nonprofit organizations.
According to the author, "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 contends larger nonprofits have the resources to
hire lawyers for the creation and renewal of the organization,
ensuring the organization is in compliance with state law,
while smaller nonprofits do not have the same level of
resources.
2)Governor's Office of Business and Economic Development
(GO-Biz) . The purpose of GO-Biz is to promote California as a
place to do business, to support those interested in starting,
growing, financing, expanding or relocating a business in
California, and to help, to the extent possible, those
businesses facing challenges to operating in California.
GO-Biz was created within the Governor's Office, and is headed
by a director designated by the governor.
This legislation would significantly expand the purpose and
mission of GO-Biz by requiring them to provide support for
non-profit organizations.
3)Related Legislation . AB 29 (J. Perez), Chapter 475, Statutes
of 2011 created, within the Governor's office, the Governor's
Office of Business and Economic Development (Go-Biz).
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081