California 2019-2020 Regular Session Status: Enacted 1 R cosponsors

SB 540 — Nonprofit public benefit corporations.

Last action — Chaptered by Secretary of State. Chapter 250, Statutes of 2019.

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed Assembly
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced February 21, 2019. Enacted.

Prognosis

Likely to advance 72% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (1 R).

  • Cleared a recorded vote

    Passed 6 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

Existing law prohibits a nonprofit public benefit corporation from lending money or property to a director or officer, or guaranteeing the obligation of a director or officer, without the approval of the Attorney General. However, a nonprofit public benefit corporation is authorized to pay life insurance premiums for insurance on the life of a director or officer if repayment is secured by the proceeds of the policy and its cash surrender value. This bill would revise the above-described exception to allow the nonprofit public benefit corporation to pay life insurance premiums if repayment is secured by either the policy's death benefit proceeds or its cash surrender value, or both. The bill would provide that when repayment is secured only by a policy's death benefit, the contract between the corporation and director or officer that secures the loan must include terms sufficient to ensure that any policy fees and charges, withdrawals of the cash value, or loans taken against it do not impair the value of the death benefit to repay the cost of the loan, for the life of the policy. The bill would also provide that when repayment is secured only by the policy's cash surrender value, the contract between the corporation and director or officer that secures the loan must include terms sufficient to ensure that the cash surrender value is sufficient to repay the cost of the loan, for the life of the policy.

Bill Text

Action History

  1. Chaptered by Secretary of State. Chapter 250, Statutes of 2019.

  2. Approved by the Governor.

  3. Enrolled and presented to the Governor at 3 p.m.

  4. In Senate. Ordered to engrossing and enrolling.

  5. Read third time. Passed. (Ayes 68. Noes 3. Page 2803.) Ordered to the Senate.

  6. Ordered to third reading.

  7. From consent calendar on motion of Assembly Member Calderon.

  8. Read second time. Ordered to consent calendar.

  9. From committee: Do pass. Ordered to consent calendar. (Ayes 14. Noes 0.) (July 10).

  10. From committee: Do pass and re-refer to Com. on INS. with recommendation: To consent calendar. (Ayes 10. Noes 0.) (July 8). Re-referred to Com. on INS.

  11. Assembly Rule 56 suspended.

  12. June 24 set for first hearing canceled at the request of author.

  13. June 10 hearing postponed by committee.

  14. Referred to Coms. on B. & F. and INS.

  15. In Assembly. Read first time. Held at Desk.

  16. Read third time. Passed. (Ayes 31. Noes 4. Page 962.) Ordered to the Assembly.

  17. Read second time and amended. Ordered to third reading.

  18. From committee: Do pass as amended. (Ayes 6. Noes 0. Page 872.) (April 24).

  19. Set for hearing April 24.

  20. Read second time and amended. Re-referred to Com. on B. & F.I.

  21. From committee: Do pass as amended and re-refer to Com. on B. & F.I. (Ayes 12. Noes 0. Page 652.) (April 10).

  22. Set for hearing April 10.

  23. Referred to Coms. on INS. and B. & F.I.

  24. From printer. May be acted upon on or after March 24.

  25. Introduced. Read first time. To Com. on RLS. for assignment. To print.

Sponsors

Sponsorship breakdown

Export CSV (upgrade) →

1 sponsors · 0 co-sponsors · 121 not signed on · 2 voted No

Sponsors (1)

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

Show all 121 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

SB 540 Jones Senate Third Reading By Cooley

Passed 68 Yea · 3 Nay · 8 Other
Party YeaNayPresentNot Voting
Unaffiliated 43306
Democratic 20002
Republican 5000
Total 68308
% of votes cast 86%4%0%10%
How each member voted (79)
Member Party Vote
Fong — Yea
Brough — Yea
Kiley — Yea
Mayes — Yea
Salas — Yea
Mathis — Yea
Bigelow — Yea
Cooley — Yea
Smith — Yea
Cunningham — Yea
Diep — Yea
Chau — Yea
Bloom — Yea
Rodriguez — Yea
Santiago — Yea
Obernolte — Yea
Voepel — Yea
Holden — Yea
Daly — Yea
Eggman — Yea
Maienschein — Yea
Jones-Sawyer — Yea
Quirk — Yea
Mullin — Yea
Friedman — Yea
Kamlager-Dove — Yea
Levine — Yea
Melendez — Yea
Nazarian — Yea
Burke — Yea
Cooper — Yea
Medina — Yea
Rendon — Yea
Chu — Yea
McCarty — Yea
O'Donnell — Yea
Waldron — Yea
Gloria — Nay
Gonzalez — Nay
Ting — Nay
Wood — Not Voting
Gray — Not Voting
Chiu — Not Voting
Frazier — Not Voting
Weber — Not Voting
Low — Not Voting
Cristina Garcia — Yea
Eduardo Garcia — Yea
Jim Patterson — Yea
Luz Rivas — Yea
Mark Stone — Yea
Wendy Carrillo — Yea
Aguiar-Curry, Cecilia M. Democratic Yea
Arambula, Joaquin Democratic Yea
Bauer-Kahan, Rebecca Democratic Yea
Berman, Marc Democratic Yea
Boerner, Tasha Democratic Not Voting
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Yea
Cervantes, Sabrina Democratic Yea
Gabriel, Jesse Democratic Yea
Gipson, Mike A. Democratic Yea
Grayson, Timothy S. Democratic Yea
Irwin, Jacqui Democratic Yea
Kalra, Ash Democratic Yea
Limón, Monique Democratic Yea
Muratsuchi, Al Democratic Not Voting
Petrie-Norris, Cottie Democratic Yea
Quirk-Silva, Sharon Democratic Yea
Ramos, James C. Democratic Yea
Reyes, Eloise Gómez Democratic Yea
Rivas, Robert Democratic Yea
Rubio, Blanca E. Democratic Yea
Wicks, Buffy Democratic Yea
Chen, Phillip Republican Yea
Choi, Steven S. Republican Yea
Flora, Heath Republican Yea
Gallagher, James Republican Yea
Lackey, Tom Republican Yea

Official roll call →

Do pass. To Consent Calendar.

Passed 14 Yea · 0 Nay
Party YeaNayPresentNot Voting
Democratic 4000
Unaffiliated 9000
Republican 1000
Total 14000
% of votes cast 100%0%0%0%
How each member voted (14)
Member Party Vote
Cooper — Yea
Voepel — Yea
Mayes — Yea
Kamlager-Dove — Yea
Frazier — Yea
Bigelow — Yea
Daly — Yea
Cooley — Yea
Chu — Yea
Berman, Marc Democratic Yea
Calderon, Lisa Democratic Yea
Gipson, Mike A. Democratic Yea
Grayson, Timothy S. Democratic Yea
Chen, Phillip Republican Yea

Official roll call →

Do pass and be re-referred to the Committee on [Insurance] with recommendation: To Consent Calendar

Passed 10 Yea · 0 Nay · 2 Other
Party YeaNayPresentNot Voting
Unaffiliated 2002
Democratic 6000
Republican 2000
Total 10002
% of votes cast 83%0%0%17%
How each member voted (12)
Member Party Vote
Weber — Yea
Burke — Not Voting
Melendez — Not Voting
Mark Stone — Yea
Bauer-Kahan, Rebecca Democratic Yea
Cervantes, Sabrina Democratic Yea
Gabriel, Jesse Democratic Yea
Grayson, Timothy S. Democratic Yea
Limón, Monique Democratic Yea
Wicks, Buffy Democratic Yea
Chen, Phillip Republican Yea
Choi, Steven S. Republican Yea

Official roll call →

3rd Reading

Passed 31 Yea · 4 Nay · 3 Other
Party YeaNayPresentNot Voting
Unaffiliated 23202
Democratic 6201
Republican 2000
Total 31403
% of votes cast 82%11%0%8%
How each member voted (38)
Member Party Vote
Rubio — Yea
Bradford — Yea
Wilk — Yea
Beall — Yea
Atkins — Yea
Hill — Yea
Roth — Yea
Morrell — Yea
Hueso — Yea
Leyva — Yea
Dodd — Yea
Moorlach — Yea
Allen — Yea
Borgeas — Yea
Galgiani — Yea
Hertzberg — Yea
Portantino — Yea
Bates — Yea
Glazer — Yea
Nielsen — Yea
Chang — Yea
Pan — Yea
Mitchell — Nay
Skinner — Nay
Wieckowski — Not Voting
Monning — Not Voting
Mark Stone — Yea
Archuleta, Bob Democratic Yea
Caballero, Anna M. Democratic Yea
Durazo, Maria Elena Democratic Nay
Hurtado, Melissa Democratic Yea
Jackson, Corey A. Democratic Not Voting
McGuire, Mike Democratic Yea
Stern, Henry I. Democratic Yea
Umberg, Thomas J. Democratic Yea
Wiener, Scott D. Democratic Nay
Grove, Shannon Republican Yea
Jones, Brian W. Republican Yea

Official roll call →

Do pass as amended

Passed 6 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Democratic 2000
Unaffiliated 4001
Total 6001
% of votes cast 86%0%0%14%
How each member voted (7)
Member Party Vote
Chang — Yea
Morrell — Yea
Hueso — Yea
Bradford — Yea
Portantino — Not Voting
Caballero, Anna M. Democratic Yea
Durazo, Maria Elena Democratic Yea

Official roll call →

Do pass as amended, but first amend, and re-refer to the Committee on [Banking and Financial Institutions]

Passed 12 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 10001
Republican 1000
Democratic 1000
Total 12001
% of votes cast 92%0%0%8%
How each member voted (13)
Member Party Vote
Dodd — Yea
Moorlach — Yea
Rubio — Yea
Borgeas — Yea
Galgiani — Yea
Portantino — Yea
Bates — Yea
Roth — Yea
Glazer — Yea
Hueso — Yea
Mitchell — Not Voting
Archuleta, Bob Democratic Yea
Jones, Brian W. Republican Yea

Official roll call →

Subjects

finance
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does SB 540 do?
Existing law prohibits a nonprofit public benefit corporation from lending money or property to a director or officer, or guaranteeing the obligation of a director or officer, without the approval of the Attorney General. However, a nonprofit public benefit corporation is authorized to pay life insurance premiums for insurance on the life of a director or officer if repayment is secured by the proceeds of the policy and its cash surrender value. This bill would revise the above-described exception to allow the nonprofit public benefit corporation to pay life insurance premiums if repayment is secured by either the policy's death benefit proceeds or its cash surrender value, or both. The bill would provide that when repayment is secured only by a policy's death benefit, the contract between the corporation and director or officer that secures the loan must include terms sufficient to ensure that any policy fees and charges, withdrawals of the cash value, or loans taken against it do not impair the value of the death benefit to repay the cost of the loan, for the life of the policy. The bill would also provide that when repayment is secured only by the policy's cash surrender value, the contract between the corporation and director or officer that secures the loan must include terms sufficient to ensure that the cash surrender value is sufficient to repay the cost of the loan, for the life of the policy.
Who sponsors SB 540?
SB 540 is sponsored by Jones, Brian W. (Republican).
What is the current status of SB 540?
This bill has been enacted into law. Introduced February 21, 2019. Enacted.
Where can I track SB 540?
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