AB 488 — 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, beginning January 1, 2023, 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 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 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

• Chaptered 10/07/21 - Chaptered Current pdf October 07, 2021
• Enrolled 09/07/21 - Enrolled pdf September 07, 2021
• Amended 08/26/21 - Amended Senate pdf August 26, 2021
• Amended 06/18/21 - Amended Senate pdf June 18, 2021
• Amended 03/25/21 - Amended Assembly pdf March 25, 2021
• Introduced 02/08/21 - Introduced pdf February 08, 2021
• AB488 View text html

Action History

1. October 07, 2021

   Chaptered by Secretary of State - Chapter 616, Statutes of 2021.

2. October 07, 2021

   Approved by the Governor.

3. September 10, 2021

   Enrolled and presented to the Governor at 4 p.m.

4. September 02, 2021

   Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 58. Noes 18. Page 2708.).

5. September 02, 2021

   Assembly Rule 77 suspended. (Ayes 57. Noes 14. Page 2703.)

6. September 01, 2021

   In Assembly. Concurrence in Senate amendments pending. May be considered on or after September 3 pursuant to Assembly Rule 77.

7. September 01, 2021

   Read third time. Passed. Ordered to the Assembly. (Ayes 30. Noes 9. Page 2298.).

8. August 30, 2021

   Read second time. Ordered to third reading.

9. August 26, 2021

   Read second time and amended. Ordered returned to second reading.

10. August 26, 2021

    From committee: Amend, and do pass as amended. (Ayes 5. Noes 2.) (August 26).

11. July 15, 2021

    In committee: Referred to suspense file.

12. June 30, 2021

    From committee: Do pass and re-refer to Com. on APPR. (Ayes 9. Noes 1. Page 1716.) (June 29). Re-referred to Com. on APPR.

13. June 18, 2021

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

14. June 09, 2021

    Referred to Com. on JUD.

15. May 28, 2021

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

16. May 27, 2021

    Read third time. Passed. Ordered to the Senate. (Ayes 59. Noes 18. Page 1631.)

17. May 24, 2021

    Read second time. Ordered to third reading.

18. May 20, 2021

    From committee: Do pass. (Ayes 12. Noes 4.) (May 20).

19. April 21, 2021

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

20. April 08, 2021

    From committee: Do pass and re-refer to Com. on APPR. (Ayes 8. Noes 3.) (April 8). Re-referred to Com. on APPR.

21. March 26, 2021

    Re-referred to Com. on P. & C.P.

22. March 25, 2021

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

23. February 18, 2021

    Referred to Com. on P. & C.P.

24. February 09, 2021

    From printer. May be heard in committee March 11.

25. February 08, 2021

    Read first time. To print.

Sponsors

• Jacqui Irwin · Primary

Votes

Subjects