AB 2208 — Charitable organizations: charitable fundraising platforms and platform charities.

Summary

The Supervision of Trustees and Fundraisers for Charitable Purposes Act governs charitable corporations, unincorporated associations, trustees, commercial fundraisers, fundraising counsel, commercial coventurers, and other legal entities holding or soliciting property for charitable purposes over which the state or the Attorney General has enforcement and supervisory powers. The act requires certain entities to register with and to file specified items with the Attorney General's Registry of Charitable Trusts. Additionally, the act requires registration forms and written reports to be filed with the Attorney General under oath, in accordance with rules and regulations. Under the act, any person who violates any of the act's provisions with intent to deceive or defraud any charity or individual is liable for a specified civil penalty. The act also authorizes the Attorney General to impose other specified civil penalties for related acts and omissions. The act prohibits specified acts and practices in the planning, conduct, or execution of any solicitation or charitable sales promotion including misrepresenting or misleading anyone in any manner to believe that another person sponsors, endorses, or approves a charitable solicitation or charitable sales promotion when that person has not given consent in writing to the use of the person's name for these purposes. The act also prohibits representing that any part of the contributions solicited by a charitable organization will be given or donated to any other charitable organization unless that organization has consented in writing to the use of its name prior to the solicitation. This bill would establish that charitable fundraising platforms and platform charities are trustees for charitable purposes subject to the Attorney General's supervision. The bill would define "charitable fundraising platform" to mean certain legal entities that use the internet to provide a website, service, or other platform to persons in this state, and perform, permit, or otherwise enable certain acts of solicitation to occur. A "platform charity" would be defined to mean a trustee or charitable corporation as defined under the act that facilitates described acts of solicitation on a charitable fundraising platform. The bill would require a charitable fundraising platform, before soliciting, permitting, or otherwise enabling solicitations, to register with the Attorney General's Registry of Charitable Trusts, under oath, on a form provided by the Attorney General. The bill would require persons or entities that meet the definition of a charitable fundraising platform and platform charity to register as a charitable fundraising platform. The bill would require annual renewal of registration. The bill would require the Attorney General to impose registration and renewal fees and deposit revenues in the Registry of Charitable Trusts Fund, for use as specified. The bill would require a charitable fundraising platform to file annual reports, under oath, with the registry on a form provided by the Attorney General. The bill would restrict a charitable fundraising platform or platform charity to soliciting, permitting, or otherwise enabling solicitations, or receiving, controlling, or distributing funds from donations for recipient or other charitable organizations in good standing, as defined. The bill would require a charitable fundraising platform or platform charity that performs, permits, or otherwise enables specific acts of solicitation, before a person can complete a donation or select or change a recipient charitable organization, to provide prescribed conspicuous disclosures that prevent a likelihood of deception, confusion, or misunderstanding. The bill would require a charitable fundraising platform or platform charity that solicits, permits, or otherwise enables solicitations to obtain the written consent of a recipient charitable organization before using its name in a solicitation, as prescribed. Written consent would not be required for certain acts of solicitation if specific requirements are met. The bill would require a charitable fundraising platform or platform charity, after donors contribute donations based on certain solicitations, to promptly provide a tax donation receipt in accordance with specified provisions. The bill would prohibit a charitable fundraising platform or platform charity from diverting or otherwise misusing the donations received through solicitation on the charitable fundraising platform, and require the entity to hold them in a separate bank account and to ensure donations and grants of recommended donations are sent promptly to recipient charitable organizations with an accounting of any fees imposed for processing the funds and in accordance with rules and regulations. The bill would require the Attorney General to establish rules and regulations they determine to be necessary for the administration of the bill's provisions, in accordance with prescribed requirements. The bill would exempt a charitable fundraising platform or platform charity from those written consent requirements of the act if the requirements imposed by the bill are met. The bill would make conforming changes to the act. By expanding the crime of perjury, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.

Bill Text

• Amended 07/02/20 - Amended Senate Current pdf July 02, 2020
• Amended 05/04/20 - Amended Assembly pdf May 04, 2020
• Introduced 02/12/20 - Introduced pdf February 12, 2020
• AB2208 View text html

Action History

1. August 20, 2020

   In committee: Held under submission.

2. August 13, 2020

   In committee: Referred to APPR. suspense file.

3. July 31, 2020

   From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 1.) (July 30). Re-referred to Com. on APPR.

4. July 02, 2020

   From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on JUD.

5. July 01, 2020

   Referred to Com. on JUD.

6. June 11, 2020

   In Senate. Read first time. To Com. on RLS. for assignment.

7. June 10, 2020

   Read third time. Passed. Ordered to the Senate. (Ayes 62. Noes 13. Page 4757.)

8. June 04, 2020

   Read second time. Ordered to third reading.

9. June 03, 2020

   From committee: Do pass. (Ayes 14. Noes 4.) (June 3).

10. June 02, 2020

    In committee: Set, first hearing. Referred to APPR. suspense file.

11. May 12, 2020

    From committee: Do pass and re-refer to Com. on APPR. (Ayes 8. Noes 2.) (May 11). Re-referred to Com. on APPR.

12. May 05, 2020

    Re-referred to Com. on JUD.

13. May 04, 2020

    From committee chair, with author's amendments: Amend, and re-refer to Com. on JUD. Read second time and amended.

14. April 24, 2020

    Referred to Com. on JUD.

15. February 13, 2020

    From printer. May be heard in committee March 14.

16. February 12, 2020

    Read first time. To print.

Sponsors

• Jacqui Irwin · Primary

Votes

Subjects