AB 556 — Charitable trusts: regulation and enforcement.

Summary

Existing law requires an individual or entity who for compensation solicits funds or property for charitable purposes to disclose that the solicitation is being conducted by a commercial fundraiser for a charitable purpose and the registered name of the commercial fundraiser. This bill would require the disclosures, if printed or if presented electronically, to be in at least 12-point type, and be clear and conspicuous. Existing law, the Supervision of Trustees and Fundraisers for Charitable Purposes Act, generally regulates charitable corporations, trustees, and other legal entities holding property for charitable purposes, commercial fundraisers for charitable purposes, and fundraising counsel for charitable purposes, among others, over which the state or the Attorney General has enforcement or supervisory powers. Existing law defines a commercial fundraiser for charitable purposes to mean any individual, corporation, unincorporated association, or other legal entity who, for compensation, engages in specified activities, including, among other things, soliciting funds, assets, or property in this state for charitable purposes. Existing law defines a fundraising counsel for charitable purposes to mean any individual, corporation, unincorporated association, or other legal entity who, for compensation, engages in specified activities including, among other things, planning, managing, or preparing material for the solicitation of funds, but who does not engage in specified activities, including, among other things, soliciting funds, assets, or property for charitable purposes. Existing law requires the Attorney General to establish and maintain a register of charitable corporations, unincorporated associations, and trustees subject to these provisions and of the particular trust or other relationship under which they hold property for charitable purposes. Existing law authorizes the Attorney General to bring any action against trustees or against any charitable corporation or director or officer thereof, to enforce a charitable trust, to impress property with a trust for charitable purposes, or to recover property or the proceeds thereof at any time within 10 years after the cause of action accrued. This bill would expand the definition of a commercial fundraiser for charitable purposes to include any individual, corporation, unincorporated association, or other legal entity that plans, manages, advises, counsels, consults, or prepares material for, or with respect to, the solicitation in this state of funds, assets, or property for charitable purposes, as specified. The bill would exclude from the definition of a commercial fundraiser for charitable purposes, a trustee, a charitable corporation, specified financial institutions, or an escrow agent or caging company, as defined, that receives or controls funds as a result of a solicitation for charitable purposes. The bill would list conditions in which a fundraising counsel for charitable purposes is deemed to receive or control funds, assets, or property. The bill would require an individual, corporation, unincorporated association, or other legal entity that does not meet the qualifications of fundraising counsel for charitable purposes to be deemed a commercial fundraiser for charitable purposes. This bill would authorize the Attorney General to bring an action for a violation of these provisions at any time within 10 years after the cause of action accrued. The bill would also authorize the Attorney General to bring an action for civil liability against a person who aids or abets a violation of these provisions at any time within 10 years after the cause of action accrued. Existing law provides that one who wrongfully detains a thing is an involuntary trustee thereof for the benefit of the owner, and that one who gains a thing by fraud, or other wrongful act is an involuntary trustee of the thing gained for the benefit of the owner. This bill would authorize the Attorney General to bring an action for a violation of these provisions at any time within 10 years after the cause of action accrued. This bill would also authorize the Attorney General to bring an action for civil liability against a person who aids or abets a violation of these provisions at any time within 10 years after the cause of action accrued. Existing law, the Nonprofit Corporation Law, sets forth standards of conduct for directors and officers of nonprofit public benefit corporations and provides that it is a crime for any director or officer of any corporation among other things, to knowingly engage in specified acts relating to fraud, to make materially false reports, to receive or acquire possession of the property of the corporation, or to falsify the books or accounts of the corporation. This bill would authorize the Attorney General to bring an action for a violation of these provisions at any time within 10 years after the cause of action accrued. The bill would also authorize the Attorney General to bring an action for civil liability against a person who aids or abets a violation of the standards of conduct for directors and officers of nonprofit public benefit corporations at any time within 10 years after the cause of action accrued.

Bill Text

• Chaptered 09/21/15 - Chaptered Current pdf September 21, 2015
• Enrolled 08/31/15 - Enrolled pdf August 31, 2015
• Amended 06/19/15 - Amended Senate pdf June 19, 2015
• Amended 04/07/15 - Amended Assembly pdf April 07, 2015
• Amended 03/19/15 - Amended Assembly pdf March 19, 2015
• Introduced 02/23/15 - Introduced pdf February 23, 2015
• AB556 View text html

Action History

1. September 21, 2015

   Chaptered by Secretary of State - Chapter 299, Statutes of 2015.

2. September 21, 2015

   Approved by the Governor.

3. September 03, 2015

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

4. August 27, 2015

   Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 78. Noes 0. Page 2601.).

5. July 16, 2015

   In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 14 pursuant to Assembly Rule 77.

6. July 16, 2015

   Read third time. Passed. Ordered to the Assembly. (Ayes 38. Noes 0. Page 1986.).

7. July 14, 2015

   Read second time. Ordered to Consent Calendar.

8. July 13, 2015

   From committee: Be placed on second reading file pursuant to Senate Rule 28.8 and ordered to consent calendar.

9. July 01, 2015

   From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 7. Noes 0.) (June 30). Re-referred to Com. on APPR.

10. June 19, 2015

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

11. June 15, 2015

    In committee: Set, first hearing. Hearing canceled at the request of author.

12. May 28, 2015

    Referred to Com. on JUD.

13. May 14, 2015

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

14. May 14, 2015

    Read third time. Passed. Ordered to the Senate. (Ayes 78. Noes 0. Page 1448.)

15. May 07, 2015

    Read second time. Ordered to Consent Calendar.

16. May 06, 2015

    From committee: Do pass. To Consent Calendar. (Ayes 17. Noes 0.) (May 6).

17. April 22, 2015

    From committee: Do pass and re-refer to Com. on APPR. (Ayes 11. Noes 0.) (April 21). Re-referred to Com. on APPR.

18. April 14, 2015

    From committee: Do pass and re-refer to Com. on P. & C.P. (Ayes 10. Noes 0.) (April 14). Re-referred to Com. on P. & C.P.

19. April 08, 2015

    Re-referred to Com. on JUD.

20. April 07, 2015

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

21. April 06, 2015

    In committee: Set, first hearing. Hearing canceled at the request of author.

22. March 23, 2015

    Re-referred to Com. on JUD.

23. March 19, 2015

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

24. March 05, 2015

    Referred to Coms. on JUD. and P. & C.P.

25. February 24, 2015

    From printer. May be heard in committee March 26.

26. February 23, 2015

    Read first time. To print.

Sponsors

• Jacqui Irwin · Primary

Votes

Subjects