Key Votes

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

California Key Votes

Jerry Brown, Jr. signed this Legislation.

Read statements Jerry Brown, 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)