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AB-624 Foundations: diversity.(2007-2008)

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AB624:v95#DOCUMENT

Amended  IN  Senate  May 07, 2008
Amended  IN  Senate  March 03, 2008
Amended  IN  Senate  February 12, 2008
Amended  IN  Assembly  January 23, 2008

CALIFORNIA LEGISLATURE— 2007–2008 REGULAR SESSION

Assembly Bill
No. 624

Introduced  by  Assembly Member Coto
 (Principal Coauthor(s): Senator Oropeza)
 (Coauthor(s): Assembly Member Dymally, Lieu)

February 21, 2007

An act to add Section 5081 to the Corporations Code, and to add Section 16065 to the Probate Code, relating to private foundations.


LEGISLATIVE COUNSEL'S DIGEST


AB 624, as amended, Coto. Foundations: diversity.
Existing law regulates the administration of nonprofit corporations and trusts that are deemed to be private foundations, as defined under federal tax law, and requires these private foundations to distribute their income for each taxable year so as not to subject the private foundation or its property to specified federal tax requirements. Existing law requires these entities to prepare specified annual reports.
This bill would require a private, corporate, or public operating foundation that is incorporated in this state with assets over $250,000,000 to collect specified data pertaining to its governance and domestic grantmaking. The bill would require this information to include the racial and gender composition of the board of directors and staff of the foundation; if applicable, the number of grants and grant dollars awarded to organizations specifically serving specified ethnic minority communities, lesbian, gay, bisexual, and transgender communities, disabled communities, and other underrepresented communities; the number of grants and grant dollars awarded to organizations where 50% or more of the board members or staff are ethnic minorities; and the number of grants and grant dollars awarded to predominantly low-income communities. The bill would require a foundation to disclose this information via its Internet Web site, if available, and to include this information in its annual report, as specified.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

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


SECTION 1.

 Section 5081 is added to the Corporations Code, to read:

5081.
 (a) Notwithstanding any other provision of law, a corporation, during any period or periods that it is deemed to be a private, corporate, or public operating foundation incorporated in the State of California, shall collect the following information:
(1) The racial composition of its board of directors, including the number and percentage of board members that are African-American, Asian-American, Pacific Islander, Caucasian, Latino, Native American, and Alaskan Native.
(2) The gender composition of its board of directors, including the number and percentage of board members who are male and female.
(3) The racial composition of the foundation’s staff, including the number and percentage of full-time equivalent staff members that are African-American, Asian-American, Pacific Islander, Caucasian, Latino, Native American, and Alaskan Native.
(4) The gender composition of the foundation’s staff, including the number and percentage of staff who are male and female.
(5) The number and percentage of business contracts awarded to businesses owned by African-Americans, Asian-Americans, Pacific Islanders, Caucasians, Latinos, Native Americans, and Alaskan Natives.
(6) If applicable, the number of grants and grant dollars awarded to organizations specifically serving African-American, Asian-American, Pacific Islander, Caucasian, Latino, Native American, and Alaskan Native communities, lesbian, gay, bisexual, and transgender communities, disabled communities, and other underrepresented communities.
(7) The number of grants and grant dollars awarded to organizations where 50 percent or more of the board members are ethnic minorities.
(8) The number of grants and grant dollars awarded to organizations where 50 percent or more of the full-time equivalent staff are ethnic minorities.
(9) The number of grants and grant dollars awarded to predominantly low-income communities.
(b) The information collected pursuant to subdivision (a) shall be posted on the foundation’s Internet Web site, if available, and included in its annual report in a section labeled “DIVERSITY.”
(c) This section shall only apply to foundations incorporated in the State of California with assets over two hundred fifty million dollars ($250,000,000) and shall apply only to a foundation’s domestic grants.
(d) For purposes of this section, “organization” means an organization described in Section 501(c)(3) of the Internal Revenue Code.

SEC. 2.

 Section 16065 is added to the Probate Code, to read:

16065.
 (a) Notwithstanding any other provision of law, a trust, during any period or periods that it is deemed to be a private, corporate, or public operating foundation incorporated in the State of California, shall collect the following information:
(1) The racial composition of its board of trustees or directors, including the number and percentage of board members that are African-American, Asian-American, Pacific Islander, Caucasian, Latino, Native American, and Alaskan Native.
(2) The gender composition of its board of trustees or directors, including, the number and percentage who are male and female.
(3) The racial composition of the charitable trust or foundation’s staff, including the number and percentage of full-time equivalent staff members that are African-American, Asian-American, Pacific Islander, Caucasian, Latino, Native American, and Alaskan Native.
(4) The gender composition of the charitable trust or foundation’s staff, including the number and percentage who are male and female.
(5) The number and percentage of business contracts awarded to businesses owned by African-Americans, Asian-Americans, Pacific Islanders, Caucasians, Latinos, Native Americans, and Alaskan Natives.
(6) If applicable, the number of grants and grant dollars awarded to organizations specifically serving African-American, Asian-American, Pacific Islander, Caucasian, Latino, Native American, and Alaskan Native communities, lesbian, gay, bisexual, and transgender communities, disabled communities, and other underserved communities.
(7) The number of grants and grant dollars awarded to organizations where 50 percent or more of the board members are ethnic minorities.
(8) The number of grants and grant dollars awarded to organizations where 50 percent or more of the full-time equivalent staff are ethnic minorities.
(9) The number of grants and grant dollars awarded to predominantly low-income communities.
(b) The information collected pursuant to subdivision (a) shall be posted on the foundation’s Internet Web site, if available, and included in its annual report in a section labeled “DIVERSITY.”
(c) This section shall only apply to foundations incorporated in the State of California with assets over two hundred fifty million dollars ($250,000,000) and shall apply only to a foundation’s domestic grants.
(d) For purposes of this section, “organization” means an organization described in Section 501(c)(3) of the Internal Revenue Code.