Under existing law, by executive order, CaliforniaVolunteers is established in the office of the Governor and is charged with overseeing programs and initiatives for service and volunteerism.

This bill would authorize CaliforniaVolunteers, for so long as it is authorized to exist, to form a nonprofit public benefit corporation or other entity exempt from income taxation, as provided, to raise revenues and receive grants or other financial support from private or public sources, for the purposes of undertaking or funding any lawful activity authorized to be undertaken by CaliforniaVolunteers. The bill would require that the nonprofit public benefit corporation or other entity use the financial support it receives solely for the governmental purposes approved by CaliforniaVolunteers for activities within the scope of authority of CaliforniaVolunteers. The bill would prohibit the nonprofit public benefit corporation or other entity from using for its own administrative costs more than 10% of the grants and financial support it receives. The bill would specify the mission of that nonprofit public benefit corporation or other entity.

Under existing law, by executive order, CaliforniaVolunteers is established in the office of the Governor and is charged with overseeing programs and initiatives for service and volunteerism.

This bill would authorize CaliforniaVolunteers, for so long as it is authorized to exist, to form a nonprofit public benefit corporation or other entity exempt from income taxation, as provided, to raise revenues and receive grants or other financial support from private or public sources, for the purposes of undertaking or funding any lawful activity authorized to be undertaken by CaliforniaVolunteers. The bill would require that the nonprofit public benefit corporation or other entity use the financial support it receives solely for the governmental purposes approved by CaliforniaVolunteers for activities within the scope of authority of CaliforniaVolunteers. The bill would prohibit the nonprofit public benefit corporation or other entity from using for its own administrative costs more than 10% of the grants and financial support it receives. The bill would specify the mission of that nonprofit public benefit corporation or other entity.

Under existing law, by executive order, CaliforniaVolunteers is established in the office of the Governor and is charged with overseeing programs and initiatives for service and volunteerism.

This bill would authorize CaliforniaVolunteers, for so long as it is authorized to exist, to form a nonprofit public benefit corporation or other entity exempt from income taxation, as provided, to raise revenues and receive grants or other financial support from private or public sources, for the purposes of undertaking or funding any lawful activity authorized to be undertaken by CaliforniaVolunteers. The bill would require that the nonprofit public benefit corporation or other entity use the financial support it receives solely for the governmental purposes approved by CaliforniaVolunteers for activities within the scope of authority of CaliforniaVolunteers. The bill would prohibit CaliforniaVolunteers from using more than 10% of the funding received from the nonprofit public benefit corporation or other entity to pay for its administrative costs. The bill would prohibit the nonprofit public benefit corporation or other entity from using for its own administrative costs more than 10% of the grants and financial support it receives. The bill would specify the mission of that nonprofit public benefit corporation or other entity.

Under existing law, by executive order, CaliforniaVolunteers is established in the office of the Governor and is charged with overseeing programs and initiatives for service and volunteerism.

This bill would authorize CaliforniaVolunteers, for so long as it is authorized to exist, to form a nonprofit public benefit corporation or other entity exempt from income taxation, as provided, to raise revenues and receive grants or other financial support from private or public sources, for the purposes of undertaking or funding any lawful activity authorized to be undertaken by CaliforniaVolunteers. The bill would require that corporation or other entity to use the financial support it seeks receives solely for the governmental purposes approved by CaliforniaVolunteers for activities within the scope of authority of CaliforniaVolunteers. The bill would prohibit CaliforniaVolunteers from using more than 10% of the funding received from the nonprofit public benefit corporation or other entity to pay for its administrative costs. The bill would specify the mission of that corporation or other entity.

Under existing law, by executive order, CaliforniaVolunteers is established in the office of the Governor and is charged with overseeing programs and initiatives for service and volunteerism.

This bill would authorize CaliforniaVolunteers, for so long as it is authorized to exist, to form a nonprofit public benefit corporation or other entity exempt from income taxation, as provided, to raise revenues and receive grants or other financial support from private or public sources, for the purposes of undertaking or funding any lawful activity authorized to be undertaken by CaliforniaVolunteers. The bill would require that corporation or other entity to use the financial support it seeks solely for the governmental purposes approved by CaliforniaVolunteers for activities within the scope of authority of CaliforniaVolunteers. The bill would specify the mission of that corporation or other entity.

 THIRD READING  

Bill No: AB 1765

Author:

:

Vote:

SENATE GOVERNMENTAL ORG. COMMITTEE: 13-0, 6/28/16

AYES: Hall, Berryhill, Bates, Block, Gaines, Galgiani, Glazer, Hernandez, Hill, Hueso, Lara, McGuire, Vidak

SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/11/16

AYES: Lara, Bates, Beall, Hill, McGuire, Mendoza, Nielsen

ASSEMBLY FLOOR: 80-0, 5/31/16 - See last page for vote

SUBJECT:

SOURCE: Author

DIGEST: This bill authorizes CaliforniaVolunteers, within the Governor’s Office, to form a tax-exempt public benefit nonprofit corporation for fundraising purposes, as specified, and prohibits the nonprofit public benefit corporation from using more than 10% of the grants and financial support it receives for its own administrative costs.

ANALYSIS: Existing law establishes CaliforniaVolunteers (Executive Order S-24-06) in the Governor's Office with the specific mission to recruit and mobilize citizens for volunteer service by identifying service opportunities throughout the state and by recognizing citizen contributions as volunteers and participants in public service.

This bill:

1. Authorizes CaliforniaVolunteers to form a tax-exempt public benefit nonprofit corporation, or other tax-exempt entity, qualified under federal and state law to raise revenues and receive grants or other financial support from public or private sources, for the purpose of undertaking or funding any lawful activity authorized to be undertaken by CaliforniaVolunteers.
   
2. Stipulates that grants and financial support received by the nonprofit corporation or other tax-exempt entity authorized in this bill shall be used solely for governmental purposes approved by CaliforniaVolunteers for activities within its authority.
   
3. Provides that no more than 10% of the grants and financial support received by the nonprofit entity may be used for the administrative costs of that nonprofit public benefit corporation or other entity.
   
4. Specifies that the mission of the nonprofit public benefit corporation or other entity is as follows:
   
   1. To support the funding of CaliforniaVolunteers programming and administrative costs; and,
      
   2. To support any priorities set forth by the Governor or the CaliforniaVolunteers board of commissioners.
      
5. Provides that the authority to establish the nonprofit public benefit corporation or other entity shall expire if the Governor rescinds the establishment of CaliforniaVolunteers.
   

Background

Existing federal law establishes the National and Community Service Trust Act of 1993, which requires each state governor to create and appoint a commission to administer the AmeriCorps volunteer program. AmeriCorps engages Americans in intensive service each year at nonprofits, schools, public agencies, and community and faith-based groups across the country. AmeriCorps service assignments may be part time or full time and generally range from ten to 12 months. Service members receive a small stipend and qualifying members are eligible for an education award that can be used to pay for college or pay back student loans.

Existing law, by Executive Order S-24-06, establishes CaliforniaVolunteers in the Governor’s Office as the state commission required under federal law for participation in AmeriCorps. CaliforniaVolunteers receives approximately $830,000 from the state General Fund for its operations but most of its budget is federally funded with a large majority passing through to AmeriCorps grantees. Duties and responsibilities of CaliforniaVolunteers include, but are not limited to, the following:

• Recruiting and mobilizing citizens for volunteer service by identifying service opportunities throughout the state and by recognizing citizens for the contributions they make as volunteers and participants in public service programs;
• Serving as the state’s lead agency for community service and volunteerism, informing the public of the value of and need for greater community service and volunteerism in California, calling upon all Californians to become involved, and challenging public and private institutions to create and support community service and volunteer opportunities; and,
• Partnering with other public agencies at the state, county, and local levels, and the private and nonprofit sectors to leverage greater resources and create more opportunities for service and volunteerism.

Comments

Purpose of AB 1765. The author’s office notes that programs administered through CaliforniaVolunteers raise a certain amount of money on their own in order to receive matching federal and state funds. However, many smaller organizations, including those in rural and low-income areas are unable to raise the initial capital needed to secure matching funds. This bill is intended to provide a mechanism for CaliforniaVolunteers to generate more revenue from public and private sources to fund a broader range of programs and engage more Californians in community service. The author’s office believes that additional resources and programs will enable CaliforniaVolunteers to recruit a greater number of passionate and civic minded individuals who will benefit from such a public service experience.

Proponents state that “AB 1765 will enable CaliforniaVolunteers, through a tax-exempt entity, to receive money directly from private and public sources that will ultimately benefit its diverse service programs across the state. It will also be able to support a wider range of service organizations across California that may otherwise not be able to secure funds on their own. Rural and lower-income communities can benefit from increased funds to secure matching state and federal grants.”

Prior Legislation

AB 706 (Bonilla, 2015) would have required CaliforniaVolunteers to administer an AmeriCorps program with a Science, Technology, Engineering and Math focus and authorized CaliforniaVolunteers to establish a nonprofit entity similar to the mechanism in AB 1765 (Irwin, 2016). (Vetoed by the Governor who stated that "without a funding source the program established in this bill would not be viable.")

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

According to the Senate Appropriations Committee, estimated CaliforniaVolunteers administrative costs of approximately $200,000 and one PY to staff the nonprofit foundation (General Fund, private funds).

SUPPORT: (Verified 8/12/16)

America’s Service Commissions

AT&T

Child Abuse Prevention Center

TechNet

OPPOSITION: (Verified 8/12/16)

None received

ASSEMBLY FLOOR: 80-0, 5/31/16

AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon

Prepared by:

8/15/16 20:26:56

**** END ****

SENATE COMMITTEE ON APPROPRIATIONS

Senator Ricardo Lara, Chair

2015 - 2016 Regular Session

AB 1765 (Irwin) - CaliforniaVolunteers: nonprofit public benefit corporation

This bill meets the criteria for referral to the Suspense File.

Bill Summary:

AB 1765 would authorize CaliforniaVolunteers to form a nonprofit public benefit corporation or other tax-exempt entity for fundraising purposes. The nonprofit’s mission would be to support the funding of CaliforniaVolunteers programming and administrative costs, as well as other priorities identified by the CaliforniaVolunteers executive board or the Governor.

Fiscal Impact:

• Estimated CaliforniaVolunteers administrative costs of approximately $200,000 and one PY to staff the nonprofit foundation. (General Fund, private funds)

Background:

Existing law, pursuant to Executive Order S-24-06, establishes California Volunteers in the Governor's Office (housed within the Office of Planning and Research) with the following duties and responsibilities: (1) to recruit and mobilize citizens for volunteer service by identifying service opportunities throughout the state and by recognizing citizen contributions as volunteers and participants in public service; (2) to serve as the state’s lead agency for community service and volunteerism, as specified; and (3) to partner with other public agencies at the state, county, and local levels, and the private and not-for-profit sectors, to leverage greater resources and create more opportunities for service and volunteerism.

Existing federal law establishes the National and Community Service Trust Act of 1993, which requires each state governor to create and appoint a commission to administer the AmeriCorps volunteer program. AmeriCorps engages Americans in intensive service each year at nonprofits, schools, public agencies, and community and faith-based groups across the country. CaliforniaVolunteers administers the state AmeriCorps program, issuing annual requests for applications and awarding federal grants in a competitive process to eligible applicants, including local governments and nonprofit organizations. The grants support community partnerships that engage AmeriCorps members to meet state and local challenges through service and volunteer action.

CaliforniaVolunteers also administers other programs that engage volunteers and foster partnerships to address community needs, such as the Disaster Volunteering and Preparedness program, the Service Enterprise Initiative, and the Business Partners Program.

Proposed Law:

AB 1765 would authorize CaliforniaVolunteers to form a tax-exempt public benefit nonprofit corporation or other tax-exempt entity that is qualified to raise revenues and receive financial support from public or private sources, for the purpose of undertaking or funding authorized activities. Any grants or financial support received by the nonprofit fundraising entity must be used solely for governmental purposes approved by CaliforniaVolunteers for activities within its authority, and no more than 10 percent of those funds could be used for the nonprofit entity’s administrative costs.

The bill also specifies that the mission of the nonprofit entity would be to support the funding of CaliforniaVolunteers programming and administrative costs, and to support any priorities set forth by the Governor or the CaliforniaVolunteers board of commissioners. The authority to establish the nonprofit fundraising entity would expire if the Governor rescinds the establishment of CaliforniaVolunteers or the executive order that created it.

Related Legislation:

AB 706 (Bonilla), which was vetoed by the Governor last year, would have established the California AmeriCorps –science, technology, engineering, and math (STEM) program, administered by CaliforniaVolunteers. AB 706 would have also authorized the formation of a nonprofit public benefit corporation similar to the authority provided in this bill. The Governor’s veto message stated the following:

This bill establishes the California AmeriCorps STEM program and authorizes California Volunteers to form a non-profit foundation for fundraising purposes. I applaud the author for promoting math and science through volunteerism in California, but without a funding source the program established in this bill would not be viable.

Staff Comments:

This bill would provide CaliforniaVolunteers with the authority to establish a nonprofit entity for fundraising purposes to raise supplemental public and private money that could be used fund a broader range of programs and provide necessary matching funds to enhance AmeriCorps opportunities in rural and low-income communities. Staff assumes that CaliforniaVolunteers would need additional staff with fundraising expertise for the nonprofit foundation, at an annual cost of approximately $200,000. Although these costs would initially be paid from the General Fund, they could be partially or fully offset in future years by a portion of funds raised by the nonprofit entity (up to 10 percent of any grants or financial support received by the nonprofit may be used for administrative purposes).

-- END --

SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION

Senator Isadore Hall, III

Chair

2015 - 2016 Regular

Bill No: AB Hearing Date: 6/28/2016

SUBJECT:

DIGEST: This bill authorizes CaliforniaVolunteers, within the Governor’s Office, to form a tax-exempt public benefit nonprofit corporation for fundraising purposes, as specified, and prohibits the nonprofit public benefit corporation from using more than 10% of the grants and financial support it receives for its own administrative costs.

ANALYSIS:

Existing law:

Establishes CaliforniaVolunteers (Executive Order S-24-06) in the Governor's Office with the specific mission to recruit and mobilize citizens for volunteer service by identifying service opportunities throughout the state and by recognizing citizen contributions as volunteers and participants in public service.

This bill:

1. Authorizes CaliforniaVolunteers to form a tax-exempt public benefit nonprofit corporation, or other tax-exempt entity, qualified under federal and state law to raise revenues and receive grants or other financial support from public or private sources, for the purpose of undertaking or funding any lawful activity authorized to be undertaken by CaliforniaVolunteers.
   
2. Stipulates that grants and financial support received by the nonprofit corporation or other tax-exempt entity authorized in this bill shall be used solely for governmental purposes approved by CaliforniaVolunteers for activities within its authority.
   
3. Provides that no more than 10% of the grants and financial support received by the nonprofit entity may be used for the administrative costs of that nonprofit public benefit corporation or other entity.
   
4. Specifies that the mission of the nonprofit public benefit corporation or other entity is as follows:
   
   1. To support the funding of CaliforniaVolunteers programming and administrative costs; and,
      
   2. To support any priorities set forth by the Governor or the CaliforniaVolunteers board of commissioners.
      
5. Provides that the authority to establish the nonprofit public benefit corporation or other entity shall expire if the Governor rescinds the establishment of CaliforniaVolunteers.
   

Background

Existing federal law establishes the National and Community Service Trust Act of 1993, which requires each state governor to create and appoint a commission to administer the AmeriCorps volunteer program. AmeriCorps engages Americans in intensive service each year at nonprofits, schools, public agencies, and community and faith-based groups across the country. AmeriCorps service assignments may be part time or full time and generally range from ten to 12 months. Service members receive a small stipend and qualifying members are eligible for an education award that can be used to pay for college or pay back student loans.

Existing law, by Executive Order S-24-06, establishes CaliforniaVolunteers in the Governor’s office as the state commission required under federal law for participation in AmeriCorps. CaliforniaVolunteers receives approximately $830,000 from the state General Fund for its operations but most of its budget is federally funded with a large majority passing through to AmeriCorps grantees. Duties and responsibilities of CaliforniaVolunteers include, but are not limited to, the following:

• Recruiting and mobilizing citizens for volunteer service by identifying service opportunities throughout the state and by recognizing citizens for the contributions they make as volunteers and participants in public service programs;
• Serving as the state’s lead agency for community service and volunteerism, informing the public of the value of and need for greater community service and volunteerism in California, calling upon all Californians to become involved, and challenging public and private institutions to create and support community service and volunteer opportunities; and,
• Partnering with other public agencies at the state, county, and local levels, and the private and nonprofit sectors to leverage greater resources and create more opportunities for service and volunteerism.

Purpose of AB 1765. The author’s office notes that programs administered through CaliforniaVolunteers raise a certain amount of money on their own in order to receive matching federal and state funds. However, many smaller organizations, including those in rural and low-income areas are unable to raise the initial capital needed to secure matching funds. This bill is intended to provide a mechanism for CaliforniaVolunteers to generate more revenue from public and private sources to fund a broader range of programs and engage more Californians in community service. The author’s office believes that additional resources and programs will enable CaliforniaVolunteers to recruit a greater number of passionate and civic minded individuals who will benefit from such a public service experience.

Prior/Related Legislation

AB 706 (Bonilla, 2015) would have required CaliforniaVolunteers to administer an AmeriCorps program with a Science, Technology, Engineering and Math (STEM) focus and authorized CaliforniaVolunteers to establish a nonprofit entity similar to the mechanism in AB 1765 (Irwin, 2016). (Vetoed by the Governor who stated that "without a funding source the program established in this bill would not be viable.")

AB 2328 (John A. Pérez, 2014) would have established “California AmeriCorps” to be administered by CaliforniaVolunteers, within the Governor’s Office, and operated under the existing federal AmeriCorps program guidelines. (Vetoed by the Governor who stated "while the bill is well intentioned, California already has programs, such as the California Conservation Corps and the CaliforniaVolunteers Service Enterprise Initiative, that couple volunteer service with educational scholarships. I encourage the Legislature to work through these programs to strengthen partnerships between volunteers and local governments.")

AB 127 (Jeffries, 2009) would have repealed statutes establishing the Office for Citizen Initiative and Voluntary Action within the Governor’s Office and instead would have codified the Executive Order establishing the Office of CaliforniaVolunteers, specifying the duties and responsibilities of the office and requiring that the office be led by the Secretary of Service of Volunteering, who would be appointed by, and serve at the pleasure of the Governor. Also, would have established the California Volunteer Commission, which would have served as California’s “State Commission” for purposes of the federal National and Community Service Trust Act of 1993. (Died Senate Appropriations suspense file)

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

SUPPORT:

AT&T

America’s Service Commissions

Child Abuse Prevention Center

TechNet

OPPOSITION:

None received

ARGUMENTS IN SUPPORT: Proponents state that “AB 1765 will enable CaliforniaVolunteers, through a tax-exempt entity, to receive money directly from private and public sources that will ultimately benefit its diverse service programs across the state. It will also be able to support a wider range of service organizations across California that may otherwise not be able to secure funds on their own. Rural and lower-income communities can benefit from increased funds to secure matching state and federal grants.”

ASSEMBLY THIRD READING

ATR Bill Id:AB 1765

Author:(Irwin)

As Amended Ver:April 19, 2016

Majority vote

SUMMARY: Authorizes CaliforniaVolunteers (CV), within the Governor's Office, to form a tax-exempt public benefit nonprofit corporation for fundraising purposes, as specified, and prohibits the nonprofit public benefit corporation from using more than 10% of the grants and financial support it receives for its own administrative costs. Specifically, this bill:

1. Allows CV to form a tax-exempt public benefit nonprofit corporation, or other qualified tax-exempt entity, to raise revenues and receive financial support from public or private sources, for the purpose of undertaking or funding authorized activities.
2. Requires financial support sought by the nonprofit entity authorized in this bill to be used solely for governmental purposes approved by CV for activities within its authority.
3. Provides that no more than 10% of the grants and financial support received by the nonprofit entity may be used to pay for the administrative costs of that nonprofit public benefit corporation or other entity.
4. Specifies that the mission of the nonprofit entity is to support the funding of CV programming and administrative costs and to support any priorities set forth by the Governor or the CV board of commissioners.
5. Provides that the authority to establish the nonprofit entity expires if the Governor rescinds the establishment of CV.

FISCAL EFFECT: According to the Assembly Appropriations Committee, CV estimates a need for $200,000 and one Personnel Year to staff the nonprofit corporation, but the bill limits administrative expenditures of the corporation to $10% of funds received. The amount of funding CV will receive through the nonprofit corporation is unknown. The difference would be made up with General Fund dollars.

COMMENTS: CV is the designated state service entity in the Governor's office that administers federal AmeriCorps funds and grants in California. CV was established by Executive Order S-24-06 with the specific mission to recruit and mobilize citizens for volunteer service by identifying service opportunities in California. This bill authorizes CV to set up a nonprofit foundation to receive additional monetary support for the various programs that it funds. CV receives approximately $830,000 from the state General Fund for its operations but most of its budget is federally funded with a large majority passing through to AmeriCorps grantees. According to the author, this bill provides a mechanism for CV to generate more revenue from public and private sources to fund a broader range of programs and engage more Californians in community service.

Analysis Prepared by: Cassie Royce / A. & A.R. / (916) 319-3600 FN: 0003133

Date of Hearing: May 4, 2016

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez, Chair

ABPCA Bill Id:AB 1765

Author:(Irwin) – As Amended Ver:April 19, 2016

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY: This bill authorizes CaliforniaVolunteers (CV), within the Governor's Office, to form a tax-exempt public benefit nonprofit corporation to raise revenues and receive financial support from public or private sources, for the purpose of undertaking or funding authorized activities. The bill prohibits the nonprofit public benefit corporation from using more than 10% of the grants and financial support it receives for its own administrative costs.

FISCAL EFFECT:

Cal Volunteers estimates a need for $200,000 and one PY to staff the nonprofit corporation, but the bill limits administrative expenditures of the corporation to $10% of funds received. The amount of funding CV will receive through the nonprofit corporation is unknown. The difference would be made up with General Fund dollars. (GF and/or private funds)

COMMENTS:

1. Purpose. According to the author, the bill provides a mechanism for CV to generate more revenue from public and private sources to fund a broader range of programs and engage more Californians in community service. CV receives approximately $830,000 from the state General Fund for its operations but most of its budget is federally funded with a large majority passing through to AmeriCorps grantees. This bill authorizes CV to set up a nonprofit to receive additional monetary support for the various programs that it funds.
2. Background. CV is the designated state service entity in the Governor's office that administers federal AmeriCorps funds and grants in California. AmeriCorps is a national network of programs throughout the US that engage Americans in intensive community service projects at public agencies and nonprofit organizations across the country. Members work in a variety of service programs that address critical community needs in the areas of education, public safety, health, the environment, and disaster response.

CV was established by Executive Order S-24-06 with the specific mission to recruit and mobilize citizens for volunteer service by identifying service opportunities in California. CV provides federal AmeriCorps grant funding to a host of community programs throughout the state, particularly those that target unmet needs in counties with no AmeriCorps state presence; provide critical support to veterans; and, promote economic opportunities for disadvantaged communities. Currently, CV helps to fund nearly 50 programs across the state. 

1. Prior Legislation.
2. AB 706 (Bonilla) of 2015 would have required CV to administer an AmeriCorps program with a Science, Technology, Engineering and Math (STEM) focus and authorized CV to establish a nonprofit entity similar to the mechanism in this is bill. AB 706 was vetoed by Governor Brown who stated that "without a funding source the program established in this bill would not be viable."
3. AB 2328 (John A. Pérez) of 2014 would have created the Cal AmeriCorps program administered by CV and enabled local governments to compete to host service members. AB 2328 was vetoed by Governor Brown who noted that "California already has programs, such as the California Conservation Corps and the California Volunteers Service Enterprise Initiative, that couple volunteer service with educational scholarships."

Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081

Date of Hearing: March 30, 2016

ASSEMBLY COMMITTEE ON ACCOUNTABILITY AND ADMINISTRATIVE REVIEW

Cristina Garcia, Chair

ABPCA Bill Id:AB 1765 (

Author:Irwin) – As Introduced Ver:February 3, 2016

SUBJECT: CaliforniaVolunteers: nonprofit public benefit corporation

SUMMARY: Authorizes CaliforniaVolunteers (CV), the state entity within the Governor's Office that manages programs and initiatives for volunteerism, to form a tax-exempt public benefit nonprofit corporation, or other qualified tax-exempt entity, to raise revenues and receive financial support from public or private sources, for the purpose of undertaking or funding authorized activities. Specifically, this bill:

1. Allows CV to form a nonprofit corporation, or other tax-exempt entity, for fundraising purposes, as specified.
2. Requires financial support sought by the nonprofit entity authorized in this bill to be used solely for governmental purposes approved by CV for activities within its authority.
3. Specifies that the mission of the CV nonprofit entity is to support the funding of CV programming and administrative costs and to support any priorities set forth by the Governor or the CV board of commissioners.
4. Provides that the authority to establish the nonprofit entity expires if the Governor rescinds the establishment of CV.

FISCAL EFFECT: Unknown

COMMENTS: CV is the designated state service entity in the Governor's office that administers federal AmeriCorps funds and grants in California. AmeriCorps is a national network of programs throughout the US that engage Americans in intensive community service projects at public agencies and nonprofit organizations across the country. Members work in a variety of service programs that address critical community needs in the areas of education, public safety, health, the environment, and disaster response.

CV was established by Executive Order S-24-06 with the specific mission to recruit and mobilize citizens for volunteer service by identifying service opportunities in California. CV provides federal AmeriCorps grant funding to a host of community programs throughout the state, particularly those that target unmet needs in counties with no AmeriCorps state presence; provide critical support to veterans; and, promote economic opportunities for disadvantaged communities. Currently, CV helps to fund nearly 50 programs across the state. 

This bill authorizes CV to set up a nonprofit foundation to receive additional monetary support for the various programs that it funds. CV receives approximately $830,000 from the state General Fund for its operations but most of its budget is federally funded with a large majority passing through to AmeriCorps grantees. According to the author, the bill provides a mechanism for CV to generate more revenue from public and private sources to fund a broader range of programs and engage more Californians in community service.

PRIOR LEGISLATION:

1. AB 706 (Bonilla) of 2015 would have required CV to administer an AmeriCorps program with a Science, Technology, Engineering and Math (STEM) focus and authorized CV to establish a nonprofit entity similar to the mechanism in this is bill. AB 706 was vetoed by the Governor who stated that "without a funding source the program established in this bill would not be viable."
2. AB 2328 (John A. Pérez) of 2014 would have created the Cal AmeriCorps program administered by CV and enabled local governments to compete to host service members. AB 2328 was vetoed by the Governor who noted that "California already has programs, such as the California Conservation Corps and the California Volunteers Service Enterprise Initiative, that couple volunteer service with educational scholarships."

REGISTERED SUPPORT / OPPOSITION:

Support

Child Abuse Prevention Center

TechNet

Opposition

None on file

Analysis Prepared by: Cassie Royce / A. & A.R. / (916) 319-3600