Home California Assemblyman Frazier’s Non-Profit Bill Could Cost Taxpayers More than $150k

Assemblyman Frazier’s Non-Profit Bill Could Cost Taxpayers More than $150k

by ECT

Assemblyman Jim Frazier’s (D-Oakley) Assembly Bill 2855, which non-profits are calling it the “warning label bill” is estimated to cost the state more than $150,000 a year.

Appropriations Committee chair Lorena Gonzalez (D-Chula Vista) has until May 27th to decide whether to allow AB 2855 to go to the floor for a full Assembly vote. If the bill is held, it is dead. If it gets out, it will hit the floor by June 3.

According to the Bill, it requires a charity’s website home page to include a prominent link directing consumers to the Attorney General’s (AG’s) website for information about consumer rights and protections and charity research resources, and requires a charity’s written solicitation materials to include this AG website address.  It also requires the AG, no later than July 1, 2017, to develop and publish on its website, information about consumer rights and protections and charity research resources that will better prepare potential donors to research a charity before making a decision to donate.

During a May 9 hearing at the Assembly Committee on Appropriations, chaired by Lorena Gonzalez, the Fiscal Impact of AB 2855 will be a one-time costs that could exceed $150,000 for the Attorney General to develop and adopt regulations to implement the bill’s requirements. This would require one attorney position and support staff. There could be additional costs following adoption to modify the Attorney General website and respond to compliance-related inquiries from charities. Enforcement costs would likely be absorbable.

It also states that given the depth and breadth of opposition to this bill, and the history of litigation regarding nonprofits and compelled speech, it is reasonable to assume that the state could incur significant legal costs if this bill was enacted.

At the hearing, Assemblyman Frazier cited recent examples of improprieties by several charities—the Cancer Fund of America, Cancer Support Services, Children’s Cancer Fund of American, The Breast Cancer Society, the Kids Wish Network, and Wounded Warrior Project.

Currently, charities file their annual Tax Form 990 with the State and IRS. It’s also posted on GuideStar.

In total, the California Association of Non-Profits states their opposition letter has been signed by more than 700 non-profits.

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3 comments

Quonundrum (@voterandproud) May 17, 2016 - 11:27 am

“In total, the California Association of Non-Profits states their opposition letter has been signed by more than 700 non-profits INCLUDING THE ONE ASSEMBLYMAN FRAZIER FOUNDED”

FTFY

Jorge G. May 17, 2016 - 10:31 pm

Frazier should be helping stop all these shootings on our freeways. He should be bringing jobs to Contra Costa County. He should not be wasting tax dollars on BS bills. At first I was still going to vote for him but I might just vote for the other guy. Hell, it doesn’t seem like we would get worst and if he does do worst we could find someone better in two years to take him out.

Frazier HTR May 18, 2016 - 12:12 am

Frazier has exceeded his 15 Minutes….it’s no wonder he abandoned CC county.

Jim Frazier=A wolf duping the voters. Those that know him know It’s all about Jim.

Let’s hope he stays restricted to the Assembly where he really is a big headed fish in a small pond.

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