Bill Text: CA AB2208 | 2019-2020 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Charitable organizations: charitable fundraising platforms and platform charities.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2020-08-20 - In committee: Held under submission. [AB2208 Detail]

Download: California-2019-AB2208-Amended.html

Amended  IN  Assembly  May 04, 2020

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 2208


Introduced by Assembly Member Irwin

February 12, 2020


An act relating to charitable organizations. to amend Sections 12581, 12586.1, 12587, 12598, and 12599.6 of, and to add Section 12599.9 to, the Government Code, relating to charitable organizations.


LEGISLATIVE COUNSEL'S DIGEST


AB 2208, as amended, Irwin. Charitable organizations. Charitable organizations: charitable fundraising platforms and platform charities.
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 would establish specific new requirements for charitable fundraising platforms and platform charities under the act. 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. A charitable fundraising platform would be a trustee for charitable purposes subject to the Attorney General’s supervision.
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 both. 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 also operates as a charitable fundraising platform 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 platform, and require the entity to hold them in a separate bank 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 exempt a charitable fundraising platform or platform charity from those written consent requirements of the act if the requirements imposed by the bill are met. 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.

Existing law, 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 authorizes the Attorney General to impose specified civil penalties for acts and omissions. The act imposes specific requirements on charitable organizations and commercial fundraisers for charitable purposes and prohibits specified acts and practices in the planning, conduct, or execution of any solicitation or charitable sales promotion, including misrepresenting the purpose of the charitable organization or the nature or purpose or beneficiary of a solicitation. Existing law requires charitable corporations, unincorporated associations, and trustees to file periodic written reports with the Attorney General under oath.

This bill would state the intent of the Legislature to enact legislation relating to charitable organizations.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NOYES  

The people of the State of California do enact as follows:


SECTION 1.

 Section 12581 of the Government Code is amended to read:

12581.
 This article applies to all charitable corporations, unincorporated associations, trustees, and other legal entities holding property for charitable purposes, commercial fundraisers for charitable purposes, fundraising counsel for charitable purposes, and commercial coventurers, charitable fundraising platforms, and platform charities, over which the state or the Attorney General has enforcement or supervisory powers. The provisions of this This article shall not apply to any committee as defined in Section 82013 which that is required to and does file any statement pursuant to the provisions of Article 2 (commencing with Section 84200) of Chapter 4 of Title 9.

SEC. 2.

 Section 12586.1 of the Government Code is amended to read:

12586.1.
 In addition to a registration fee, a charitable corporation or trustee, commercial fundraiser, fundraising counsel, or coventurer coventurer, charitable fundraising platform, or platform charity, may be assessed a late fee or an additional fee of twenty-five dollars ($25) for each month or part of the month after the date on which the registration statement and financial report were due to be filed or after the period of extension granted for the filing if the charitable corporation or trustee, commercial fundraiser, fundraising counsel, or coventurer coventurer, charitable fundraising platform, or platform charity, does any of the following:
(a) Exists and operates in California without being registered.
(b) Solicits contributions in California without being registered or, if applicable, bonded.
(c) Fails to file its first report no later than four months and 15 days following the close of each calendar or fiscal year and has not requested an extension of time to file the annual report.
(d) Fails to file its subsequent annual report no later than four months and 15 days following the close of each calendar or fiscal year subsequent to the filing of the first report and has not requested an extension of time to file the annual report.
(e) Fails to file its annual registration/renewal form within the time specified by the Attorney General irrespective of other report filing requirements.
(f) Fails to correct the deficiencies in its registration or annual report within 10 days of receipt of written notice of those deficiencies.

SEC. 3.

 Section 12587 of the Government Code is amended to read:

12587.
 The Attorney General may make additional rules and regulations necessary for the administration of this article, provided that any assessment of an annual registration or renewal fee from charitable trustees and corporations, commercial fundraisers, fundraising counsel, and commercial coventurers coventurers, charitable fundraising platforms, and platform charities, subject to this article, authorized by statute or regulation, shall be used by the Department of Justice solely to operate and maintain the Attorney General’s Registry of Charitable Trusts and provide public access via the Internet internet website to reports filed with the Attorney General.

SEC. 4.

 Section 12598 of the Government Code is amended to read:

12598.
 (a) The primary responsibility for supervising charitable trusts in California, for ensuring compliance with trusts and articles of incorporation, and for protection of assets held by charitable trusts and public benefit corporations, resides in the Attorney General. The Attorney General has broad powers under common law and California statutory law to carry out these charitable trust enforcement responsibilities. These powers include, but are not limited to, charitable trust enforcement actions under all of the following:
(1) This article.
(2) Title 8 (commencing with Section 2223) of Part 4 of Division 3 of the Civil Code.
(3) Division 2 (commencing with Section 5000) of Title 1 of the Corporations Code.
(4) Sections 8111, 11703, 15004, 15409, 15680 to 15685, inclusive, 16060 to 16062, inclusive, 16064, and 17200 to 17210, inclusive, of the Probate Code.
(5) Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of the Business and Professions Code, and Sections 17500 and 17535 of the Business and Professions Code.
(6) Sections 319, 326.5, and 532d of the Penal Code.
(b) The Attorney General shall be entitled to recover from defendants named in a charitable trust enforcement action all reasonable attorney’s fees and actual costs incurred in conducting that action, including, but not limited to, the costs of auditors, consultants, and experts employed or retained to assist with the investigation, preparation, and presentation in court of the charitable trust enforcement action.
(c) Attorney’s fees and costs shall be recovered by the Attorney General pursuant to court order. When awarding attorneys’ attorney’s fees and costs, the court shall order that the attorney’s fees and costs be paid by the charitable organization and the individuals named as defendants in or otherwise subject to the action, in a manner that the court finds to be equitable and fair.
(d) Upon a finding by the court that a lawsuit filed by the Attorney General was frivolous or brought in bad faith, the court may award the defendant charity the costs of that action.
(e) (1) The Attorney General may refuse to register or may revoke or suspend the registration of a charitable corporation or trustee, commercial fundraiser, fundraising counsel, or coventurer coventurer, charitable fundraising platform, or platform charity whenever the Attorney General finds that the charitable corporation or trustee, commercial fundraiser, fundraising counsel, or coventurer coventurer, charitable fundraising platform, or platform charity has violated or is operating in violation of any provisions provision of this article.
(2) All actions of the Attorney General shall be taken subject to the rights authorized pursuant to Chapter 4.5 (commencing with Section 11400) of Part 1 of Division 3 of Title 2.

SEC. 5.

 Section 12599.6 of the Government Code is amended to read:

12599.6.
 (a) Charitable organizations and commercial fundraisers for charitable purposes shall not misrepresent the purpose of the charitable organization or the nature or purpose or beneficiary of a solicitation. A misrepresentation may be accomplished by words or conduct or failure to disclose a material fact.
(b) A charitable organization must shall establish and exercise control over its fundraising activities conducted for its benefit, including approval of all written contracts and agreements, and must shall ensure that fundraising activities are conducted without coercion.
(c) A charitable organization shall not enter into any contract or agreement with, or employ, any commercial fundraiser for charitable purposes or fundraising counsel for charitable purposes unless that commercial fundraiser or fundraising counsel is registered with the Attorney General’s Registry of Charitable Trusts or, if not registered, agrees to register prior to the commencement of any solicitation.
(d) A charitable organization shall not enter into any contract or agreement with, or raise any funds for, any charitable organization required to be registered pursuant to this act unless that charitable organization is registered with the Attorney General’s Registry of Charitable Trusts or, if not registered, agrees to register prior to the commencement of the solicitation.
(e) Each contribution in the control or custody of a commercial fundraiser for charitable purposes shall in its entirety and within five working days of receipt (1) be deposited in an account at a bank or other federally insured financial institution that is solely in the name of the charitable organization on whose behalf the contribution was solicited and over which the charitable organization has sole control of withdrawals or, (2) be delivered to the charitable organization in person, by Express Mail, or by another method of delivery providing for overnight delivery.
(f) Regardless of injury, the following acts and practices are prohibited in the planning, conduct, or execution of any solicitation or charitable sales promotion:
(1) Operating in violation of, or failing to comply with, any of the requirements of this act or regulations or orders of the Attorney General, or soliciting contributions after registration with the Attorney General’s Registry of Charitable Trusts has expired or has been suspended or revoked.
(2) Using any unfair or deceptive acts or practices or engaging in any fraudulent conduct that creates a likelihood of confusion or misunderstanding.
(3) Using any name, symbol, emblem, statement, or other material stating, suggesting, or implying to a reasonable person that the contribution is to or for the benefit of a particular charitable organization when that is not the fact.
(4) Misrepresenting or misleading anyone in any manner to believe that the person on whose behalf a solicitation or charitable sales promotion is being conducted is a charitable organization or that the proceeds of the solicitation or charitable sales promotion will be used for charitable purposes when that is not the fact.
(5) Misrepresenting or misleading anyone in any manner to believe that any other 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. Written consent is not needed if the requirements of Section 12599.9 are met.
(6) Misrepresenting or misleading anyone in any manner to believe that goods or services have endorsement, sponsorship, approval, characteristics, ingredients, uses, benefits, or qualities that they do not have or that a person has endorsement, sponsorship, approval, status, or affiliation that the person does not have.
(7) Using or exploiting the fact of registration with the Attorney General’s Registry of Charitable Trusts so as to lead any person to believe that the registration in any manner constitutes an endorsement or approval by the Attorney General. The use of the following statement is not prohibited:

“The official registration and financial information regarding (insert the legal name of the charity as registered with the Registry of Charitable Trusts) can be obtained from the Attorney General’s Web site internet website at http://caag.state.ca.us/charities/. Registration does not imply endorsement.”

(8) Representing directly or by implication that a charitable organization will receive an amount greater than the actual net proceeds reasonably estimated to be retained by the charity for its use.
(9) With respect to solicitations by commercial fundraisers for charitable purposes on behalf of law enforcement personnel, firefighters, or other persons who protect the public safety, issuing, offering, giving, delivering, or distributing any honorary membership cards, courtesy cards, or similar cards, or any stickers, emblems, plates, or other items that could be used for display on a motor vehicle, and that suggest affiliation with, or endorsement by any public safety personnel or a group comprising such personnel.
(10) (A) Soliciting for advertising to appear in a for-profit publication that relates to, purports to relate to, or that could reasonably be construed to relate to, any charitable purpose without making the following disclosures at the time of solicitation:
(i) The publication is a for-profit, commercial enterprise.
(ii) The true name of the solicitor and the fact that the solicitor is a professional solicitor.
(iii) The publication is not affiliated with or sponsored by any charitable organization.
(B) Where a sale of advertising has been made, the solicitor, prior to accepting any money for the sale, shall make to the purchaser the disclosures required by subparagraph (A) in written form and in conspicuous type.
(11) 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. The written consent shall be signed by one authorized officer, director, or trustee of the charitable organization. Written consent is not needed if the requirements of Section 12599.9 are met.
(12) Representing that tickets to events will be donated for use by another, unless all of the following requirements have been met:
(A) The charitable organization or commercial fundraiser has commitments, in writing, from charitable organizations stating that they will accept donated tickets and specifying the number of tickets they are willing to accept.
(B) The donated tickets will not, when combined with other ticket donations, exceed either of the following:
(i) The number of ticket commitments the charitable organization or commercial fundraiser has received from charitable organizations.
(ii) The total attendance capacity of the site of the event.
(g) A person shall not knowingly submit for filing on behalf of any charitable organization any statement, report, financial statement, attachment, or other information to be filed with the Attorney General that contains information, a statement, or an omission that is false or misleading.
(h) A ticket commitment from a charitable organization alone, as described in clause (i) of subparagraph (B) of paragraph (12) of subdivision (f), does not constitute written consent to use of the organization’s name in the solicitation campaign.

SEC. 6.

 Section 12599.9 is added to the Government Code, to read:

12599.9.
 (a) For purposes of this section:
(1) “Charitable fundraising platform” means any person, corporation, unincorporated association or other legal entity that uses the internet to provide an internet website, service, or other platform to persons in this state, and performs, permits, or otherwise enables acts of solicitation to occur, which includes, but is not limited to, any of the following:
(A) Lists one or more recipient charitable organizations to receive donations or grants of recommended donations made by donors who use the platform.
(B) Permits persons who use the platform to solicit donations for or recommend donations to be granted to one or more recipient charitable organizations through peer-to-peer charitable fundraising.
(C) Permits persons who use the platform to select one or more recipient charitable organizations to receive donations or grants of recommended donations made by a platform, platform charity, or other third party person, based on purchases made or other activity performed by persons who use the platform.
(D) Lists one or more recipient charitable organizations to receive donations or grants of recommended donations made by the platform based on purchases made or other activity performed by persons who use the platform.
(E) Provides to charitable organizations a customizable internet-based website, service, or other platform that allows charitable organizations to solicit or receive donations on or through the platform, including through peer-to-peer charitable fundraising. The customizable platform provided by the charitable fundraising platform does not include the charitable organization’s own platform, but may integrate with the organization’s platform.
(2) “Charitable fundraising platform” does not include a charitable organization’s own platform that solicits donations only for itself.
(3) “Good standing” means that a recipient or other charitable organization’s tax-exempt status has not been revoked by the Internal Revenue Service, or the Franchise Tax Board when applicable, and the organization is registered and in compliance with the reporting requirements of the Attorney General’s Registry of Charitable Trusts when applicable.
(4) “Peer-to-peer charitable fundraising” means a solicitation campaign created by a person to support a recipient charitable organization, through or with other assistance provided by a charitable fundraising platform or platform charity.
(5) “Platform charity” means a trustee as defined in Section 12582 or a charitable corporation as defined in Section 12582.1 that facilitates acts of solicitation on a charitable fundraising platform, which includes, but is not limited to, either of the following:
(A) Solicits donations through a charitable fundraising platform for itself from donors who use the platform with the implied or express representation that the platform charity may grant donations to recipient charitable organizations.
(B) Grants funds to recipient charitable organizations based on purchases made or other activity performed by persons who use a charitable fundraising platform.
(6) “Recipient charitable organization” means a trustee as defined in Section 12582 or a charitable corporation as defined in Section 12582.1, that is listed or referenced by name on a charitable fundraising platform or by a platform charity for solicitation purposes.
(b) (1) A charitable fundraising platform is a trustee for charitable purposes subject to the Attorney General’s supervision. A charitable fundraising platform or platform charity shall, before soliciting, permitting, or otherwise enabling solicitations, register with the Attorney General’s Registry of Charitable Trusts, under oath, on a form provided by the Attorney General. Persons or entities that meet the definition of a charitable fundraising platform and platform charity shall register as both.
(2) Registration shall be renewed each year. The Attorney General shall impose a registration and renewal fee, which shall be deposited and used in accordance with Section 12587.1.
(c) A charitable fundraising platform or platform charity shall file annual reports, under oath, with the Attorney General’s Registry of Charitable Trusts on a form provided by the Attorney General.
(d) A charitable fundraising platform or platform charity shall only solicit, permit or otherwise enable solicitations, or receive, control or distribute funds from donations for recipient or other charitable organizations in good standing.
(e) A charitable fundraising platform or platform charity that also operates as a charitable fundraising platform that performs, permits, or otherwise enables acts of solicitation described by subparagraph (A), (B), or (C), of paragraph (1) of subdivision (a) shall, before a person can complete a donation or select or change a recipient charitable organization, provide conspicuous disclosures that prevent a likelihood of deception, confusion, or misunderstanding, including, but not limited to, the following:
(1) A statement that donations are made to the platform charity, when applicable, otherwise a statement that donations are made to the recipient charitable organization. If donations are not made to the platform charity or the recipient charitable organization, then a statement that donations are made to the charitable fundraising platform.
(2) The circumstances, if any, under which a recipient charitable organization may not receive the donation or a grant of the recommended donation.
(3) The length of time it takes to send the donation or a grant of the recommended donation to a recipient charitable organization with an explanation as to the length of time.
(4) The fees, if any, deducted from or added to the donation or a grant of the recommended donation that are charged by the charitable fundraising platform, platform charity, or any other partnering vendor, other than digital payment processing fees.
(5) Whether the donation is tax deductible or not. This disclosure is not required for acts of solicitation described by subparagraph (C) of paragraph (1) of subdivision (a).
(6) The disclosures required by this subdivision may be provided through a conspicuous hyperlink, so long as the disclosure is conspicuous when the hyperlink is selected.
(f) (1) A charitable fundraising platform or platform charity that solicits, permits, or otherwise enables solicitations shall obtain the written consent of a recipient charitable organization before using its name in a solicitation. Written consent shall be provided directly to the charitable fundraising platform or platform charity, on behalf of the platform or platform charity and any partnering charitable fundraising platforms expressly identified in an agreement providing consent, by one authorized officer, director, or trustee of the recipient charitable organization.
(2) Written consent pursuant to paragraph (1) shall not be required for acts of solicitation described in subparagraphs (A), (B), or (C), of paragraph (1) of subdivision (a) if, in addition to all provisions of this section and rules or regulations established under subdivision (j) of this section, all of the following are met:
(A) The charitable fundraising platform or platform charity only lists the recipient charitable organization’s name, address information, employer identification number, or registration number with the Attorney General’s Registry of Charitable Trusts.
(B) The charitable fundraising platform or platform charity that also operates as a charitable fundraising platform conspicuously discloses before persons can complete a donation, or select or change a recipient charitable organization, that the recipient charitable organization has not provided consent, has no association with the charitable fundraising platform, platform charity, or persons using the platform for solicitation purposes when applicable, and has not reviewed or approved any peer-to-peer charitable fundraising content generated by such persons when applicable.
(C) No fees are deducted from the donation or a grant of the recommended donation that are charged by the charitable fundraising platform, platform charity, or any other partnering vendor, other than digital payment processing fees.
(D) The charitable fundraising platform or platform charity shall remove any recipient charitable organization from its list or any solicitation regarding the recipient charitable organization within 72 hours of a written request by the recipient charitable organization.
(E) The charitable fundraising platform or platform charity shall not require that a recipient charitable organization consent to any solicitations as a condition for accepting a donation or grant of a recommended donation.
(g) After donors contribute donations based on solicitations described by subparagraph (A) or (B) of paragraph (1) of subdivision (a), the charitable fundraising platform or platform charity shall promptly provide a tax donation receipt in accordance with Sections 17510.3 and 17510.4 of the Business and Professions Code.
(h) The charitable fundraising platform or platform charity shall not divert or otherwise misuse the donations received through solicitation on the platform, and shall hold them in a separate bank account from other funds belonging to the fundraising platform or platform charity. The charitable fundraising platform or platform charity shall promptly ensure donations and grants of recommended donations are sent to recipient charitable organizations with an accounting of any fees imposed for processing the funds, and in accordance with any rules and regulations established under subdivision (j).
(i) When a charitable fundraising platform or platform charity contracts with other vendors to solicit, receive, control, process, distribute, and otherwise account for donations on the platform, the contracts shall be available for inspection by the Attorney General.
(j) The Attorney General shall establish rules and regulations necessary for the administration of this section, which shall include, but are not limited to, all of the following:
(1) The content of the form and other information to be provided by a charitable fundraising platform or platform charity for registration with the Attorney General’s Registry of Charitable Trusts, including all of the following:
(A) The manner and timing of the filing of registration.
(B) The circumstances when additional registration as a commercial fundraiser for charitable purposes, a fundraising counsel for charitable purposes, or a commercial coventurer may be unnecessary.
(C) The payment of fees to cover the reasonable costs to administer and enforce this section.
(2) The content of the form and other information to be provided by a charitable fundraising platform or platform charity in annual reports filed with the Attorney General’s Registry of Charitable Trusts, including all of the following:
(A) The manner and timing of the filing of the reports.
(B) The circumstances under which partnering charitable fundraising platforms or platform charities may submit an annual report on behalf of other platforms, if any.
(C) The payment of fees to cover the reasonable costs to administer and enforce this section.
(3) The requirements for any written agreement between a recipient charitable organization and a charitable fundraising platform or a platform charity that provides consent for or otherwise applies to solicitations for donations.
(4) The requirements for holding donations or distributing donations and grants of recommended donations, including all of the following:
(A) The length of time it takes to send the donated funds.
(B) The circumstances under which donors or persons may be contacted to provide alternate recipient charitable organizations or notified when the donated funds are sent.
(C) The circumstances when donor or personal information may be provided to recipient charitable organizations.

SEC. 7.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.
SECTION 1.

It is the intent of the Legislature to enact legislation relating to charitable organizations.

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