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Key Votes

AB 2327 - Increases Penalties for the Misuse of Funds by Charitable Organizations - Key Vote

California Key Votes

Curren Price, Jr. voted Yea (Passage With Amendment) on this Legislation.

Read statements Curren Price, Jr. made in this general time period.

Stages

Family

Issues

Stage Details

Legislation - Signed (Executive) -

Title: Increases Penalties for the Misuse of Funds by Charitable Organizations

Legislation - Concurrence Vote Passed (House) (62-18) - (Key vote)

Title: Increases Penalties for the Misuse of Funds by Charitable Organizations

Vote Smart's Synopsis:

Vote to concur with Senate amendments and pass a bill that increases penalties for the misuse of funds by charitable organizations.

Highlights:
  • Prohibits any person or charitable organization from committing certain violations, including, but not limited to, the following (Secs. 1 & 2):
    • Knowingly submitting false or misleading information to the Attorney General;
    • Failing to file required documents, including a complete financial report;
    • Misrepresenting the nature or purpose of the charitable organization or beneficiary; and
    • Misleading an individual to believe that the proceeds of a solicitation or charitable sales promotion will be used for charitable purposes when that is not the case.
  • Authorizes the Attorney General to take the following actions against an organization that violates the provisions of this bill (Sec. 1):
    • Issue a cease-and-desist letter;
    • Impose a penalty of up to $1000 for each act that violates the law after providing at least 5 days notice;
    • Suspend the registration of an organization if it is given a penalty; and
    • Appeal to a superior court for an injunction to prevent further violations.
  • Specifies that any individual that intentionally deceives or defrauds a charity will be subject to a civil penalty of up to $10,000 (Sec. 1).
  • Requires a charitable organization to provide the following for any year the organization's balance sheet shows holdings of restricted net assets when negative unrestricted net assets were reported (Sec. 3):
    • An explanation of its compliance with its charitable trust responsibilities; and
    • Proof of directors’ and officers’ liability insurance coverage.
Legislation - Bill Passed With Amendment (Senate) (23-12) - (Key vote)

Title: Increases Penalties for the Misuse of Funds by Charitable Organizations

Vote Smart's Synopsis:

Vote to pass a bill that increases penalties for the misuse of funds by charitable organizations.

Highlights:
  • Prohibits any person or charitable organization from committing certain violations, including, but not limited to, the following (Secs. 1 & 2):
    • Knowingly submitting false or misleading information to the Attorney General;
    • Failing to file required documents, including a complete financial report;
    • Misrepresenting the nature or purpose of the charitable organization or beneficiary; and
    • Misleading an individual to believe that the proceeds of a solicitation or charitable sales promotion will be used for charitable purposes when that is not the case.
  • Authorizes the Attorney General to take the following actions against an organization that violates the provisions of this bill (Sec. 1):
    • Issue a cease-and-desist letter;
    • Impose a penalty of up to $1000 for each act that violates the law after providing at least 5 days notice;
    • Suspend the registration of an organization if it is given a penalty; and
    • Appeal to a superior court for an injunction to prevent further violations.
  • Specifies that any individual that intentionally deceives or defrauds a charity will be subject to a civil penalty of up to $10,000 (Sec. 1).
  • Requires a charitable organization to provide the following for any year the organization's balance sheet shows holdings of restricted net assets when negative unrestricted net assets were reported (Sec. 3):
    • An explanation of its compliance with its charitable trust responsibilities; and
    • Proof of directors’ and officers’ liability insurance coverage.
Legislation - Bill Passed (House) (62-10) -
Legislation - Introduced (House) -

Title: Increases Penalties for the Misuse of Funds by Charitable Organizations

Sponsors

  • Mike Feuer (CA - D) (Out Of Office)
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