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<ns0:Description>
<ns0:Id>20250AB__057698AMD</ns0:Id>
<ns0:VersionNum>98</ns0:VersionNum>
<ns0:History>
<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2025-02-12</ns0:ActionDate>
</ns0:Action>
<ns0:Action>
<ns0:ActionText>AMENDED_ASSEMBLY</ns0:ActionText>
<ns0:ActionDate>2025-03-28</ns0:ActionDate>
</ns0:Action>
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<ns0:LegislativeInfo>
<ns0:SessionYear>2025</ns0:SessionYear>
<ns0:SessionNum>0</ns0:SessionNum>
<ns0:MeasureType>AB</ns0:MeasureType>
<ns0:MeasureNum>576</ns0:MeasureNum>
<ns0:MeasureState>AMD</ns0:MeasureState>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Irwin</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Irwin</ns0:Name>
</ns0:Legislator>
</ns0:Authors>
<ns0:Title> An act to amend Sections 12599.9 and 12599.10 of the Government Code, relating to charitable giving.</ns0:Title>
<ns0:RelatingClause>charitable giving</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Charitable giving: online fundraising.</ns0:Subject>
</ns0:GeneralSubject>
<ns0:DigestText>
<html:p>The Supervision of Trustees and Fundraisers for Charitable Purposes Act requires a charitable fundraising platform to register with the Attorney General’s Registry of Charities and Fundraisers, under oath, before soliciting, permitting, or otherwise enabling solicitations, as specified, and requires a platform charity to register with the Attorney General pursuant to specified law. The act requires a charitable fundraising platform or platform charity to only enable solicitations or to receive, control, or distribute funds from donations for specified organizations that are in good standing, and authorizes those entities to rely on specified electronic lists when determining good standing.</html:p>
<html:p>This bill would additionally authorize those entities to rely on an
application programming interface, as specified. The bill would require the Attorney General to establish rules and regulations for the specifications for an application programming interface, as specified.</html:p>
</ns0:DigestText>
<ns0:DigestKey>
<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
<ns0:Appropriation>NO</ns0:Appropriation>
<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
<ns0:LocalProgram>NO</ns0:LocalProgram>
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<ns0:ImmediateEffect>NO</ns0:ImmediateEffect>
<ns0:ImmediateEffectFlags>
<ns0:Urgency>NO</ns0:Urgency>
<ns0:TaxLevy>NO</ns0:TaxLevy>
<ns0:Election>NO</ns0:Election>
<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
<ns0:BudgetBill>NO</ns0:BudgetBill>
<ns0:Prop25TrailerBill>NO</ns0:Prop25TrailerBill>
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</ns0:Description>
<ns0:Bill id="bill">
<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_3652CA33-1E76-47E3-A979-4AD9AD8FA75F">
<ns0:Num>SECTION 1.</ns0:Num>
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Section 12599.9 of the
<ns0:DocName>Government Code</ns0:DocName>
is amended to read:
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<ns0:LawSection id="id_E78DE21A-915E-437A-B06A-9DC789BACDFC">
<ns0:Num>12599.9.</ns0:Num>
<ns0:LawSectionVersion id="id_11B39678-8D9C-4726-9B23-32752B8EA4A0">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
For purposes of this section:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
“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 the following and any similar activity:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Lists or references by name one or more recipient charitable organizations to receive donations or grants of recommended donations made by donors who use the platform.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
Lists or references by name 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.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
Provides to charitable organizations a customizable internet-based website, software as a 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 charitable organization’s platform.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
“Charitable fundraising platform” does not include:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
A charitable organization’s own platform that solicits donations only for itself.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A vendor that solely provides technical or supportive services to a charitable fundraising platform so that the charitable fundraising platform can function and operate, including vendors used for hosting or domain services, security certificates, internet access, internet application development, or digital payment processing. If that vendor also
performs, permits, or otherwise enables acts of solicitation described by paragraph (1) on its own platform to persons in this state, it is a charitable fundraising platform for its own platform.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
A sponsoring organization of donor-advised funds, as defined in subdivision (d) of Section 4966 of the Internal Revenue Code, that solicits donors to open donor-advised fund accounts or similar accounts, receives recommendations from donors on charitable organizations that may receive grants of funds previously contributed to the sponsoring organization for a donor’s donor-advised fund account, and the sponsoring organization does not list or reference by name one or more recipient charitable organizations for solicitation purposes on its platform for persons who do not have advisory privileges with respect to the granting of funds in a donor-advised fund of the sponsoring organization.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
A person or entity that meets the definition of both a commercial fundraiser for charitable purposes and a charitable fundraising platform shall be only a commercial fundraiser for charitable purposes when the person or entity for compensation performs any of the following acts of solicitation:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
Direct mail solicitation, excluding electronic mail or messages.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
Estate gift or estate planning solicitation.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
In-person solicitation through a fundraising event, door-to-door or other public spaces, or a vending machine or similar equipment that does not use a person to perform the solicitation.
</html:p>
<html:p>
(iv)
<html:span class="EnSpace"/>
Noncash solicitation.
</html:p>
<html:p>
(v)
<html:span class="EnSpace"/>
Nonincidental acts of solicitation that
are not internet based, including solicitation through print, radio, or television.
</html:p>
<html:p>
(vi)
<html:span class="EnSpace"/>
Solicitation involving receiving something of value, or a chance to win something of value, in connection with a donation.
</html:p>
<html:p>
(vii)
<html:span class="EnSpace"/>
Telephone solicitation.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
A person or entity that meets the definition of both a commercial coventurer and a charitable fundraising platform solely under subparagraph (D) of paragraph (1) shall be only a commercial coventurer when the acts of solicitation through an internet website, service, or other platform to persons in this state are for six or fewer recipient charitable organizations per calendar year, and the commercial coventurer complies with subdivision (b) of Section 12599.2.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
“Good standing” means that a platform charity,
recipient charitable organization, or other charitable organization’s tax-exempt status has not been revoked by the Internal Revenue Service, or the Franchise Tax Board, or is not prohibited from soliciting or operating in the state by the Attorney General.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
“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.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
“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 either of the following and any similar activity:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Solicits donations through a charitable fundraising platform
for itself from donors who use the charitable fundraising platform with the implied or express representation that the platform charity may grant donations to recipient charitable organizations.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Grants funds to recipient charitable organizations based on purchases made or other activity performed by persons who use a charitable fundraising platform.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
“Platform charity” does not include a sponsoring organization of donor-advised funds, as defined in subdivision (d) of Section 4966 of the Internal Revenue Code, that solicits donors to open donor-advised fund accounts or similar accounts, receives recommendations from donors on charitable organizations that may receive grants of funds previously contributed to the sponsoring organization for a donor’s donor-advised fund account, and the sponsoring organization does not list or reference by name one or more recipient charitable
organizations for solicitation purposes on its platform for persons who do not have advisory privileges with respect to the granting of funds in a donor-advised fund of the sponsoring organization.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
“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.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
A charitable fundraising platform is a trustee for charitable purposes subject to the Attorney General’s supervision. A charitable fundraising platform shall, before soliciting, permitting, or otherwise enabling solicitations, register with the Attorney General’s Registry of Charities and Fundraisers, 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 a charitable fundraising platform.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
A platform charity is a trustee for charitable purposes subject to the Attorney General’s supervision. A platform charity shall register as a trustee in accordance with Section 12585 when not already registered. When a charitable fundraising platform partners with a platform charity, the platform charity shall promptly notify the Attorney General’s Registry of Charities and Fundraisers of the partnership, unless previously specified through the registration of the platform charity or charitable fundraising platform.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
A charitable fundraising platform or platform charity shall file annual reports, under oath, with the Attorney General’s Registry of Charities and Fundraisers on a form provided by the Attorney General. The reports shall:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Enable the Attorney General to ascertain whether charitable funds have been properly solicited, received, held, controlled, or distributed in compliance with this article, including, but not limited to, providing information on the number of donations made, the amounts raised, the length of time for distributing donations or grants of recommended donations, the fees charged by or through a charitable fundraising platform or platform charity, and information on recipient charitable organizations or other charitable organizations that were sent or were not sent donations or grants of recommended donations.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Not require the disclosure of
personally identifiable information of donors or other persons using a charitable fundraising platform.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
A platform charity shall have good standing in order to facilitate acts of solicitation on a charitable fundraising platform.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
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 charitable organizations or other charitable organizations in good standing.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
To determine good
standing of recipient charitable organizations or other charitable
organizations for purposes of paragraph (2), a charitable fundraising platform or platform charity may rely on electronic lists periodically published by, or an application programming interface made available by, the Internal Revenue Service, the Franchise Tax Board, and the Attorney General’s Registry of Charities and Fundraisers provided that the lists are in a machine-readable structured data format. If any such agency does not publish such a list or make available an application programming interface, then a charitable fundraising platform or platform charity is not required
to comply with
paragraph (2) for that applicable agency for the length of time that agency’s list or application programming interface is unavailable.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
A charitable fundraising platform or platform charity 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:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
A statement that donations are made to the charitable
fundraising platform, the platform charity, the recipient charitable organization, or the person engaging in peer-to-peer charitable fundraising, whichever is applicable.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
A statement that a recipient charitable organization may not receive donations or grants or recommended donations, with an explanation identifying the most pertinent reasons under which a recipient charitable organization may not receive the funds. This disclosure is not required when there are no circumstances under which a recipient charitable organization may not receive the funds. The explanation may be provided through a conspicuous hyperlink, so long as the disclosure is conspicuous when the hyperlink is selected.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The maximum 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, unless
the donation is sent contemporaneously to a recipient charitable organization after the donation is made. The explanation as to the maximum length of time may be provided through a conspicuous hyperlink, so long as the disclosure is conspicuous when the hyperlink is selected.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The fees or other amounts, if any, deducted from or added to the donation or a grant of the recommended donation that are charged or retained by the charitable fundraising platform, platform charity, or any other partnering vendor, other than digital payment processing fees. This disclosure is not required for acts of solicitation described in subparagraph (C) of paragraph (1) of subdivision (a) when no fees or amounts are deducted or added.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
A statement as to the tax deductibility of the donation. This disclosure is not required for acts of solicitation described by subparagraph (C) of paragraph (1)
of subdivision (a).
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
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, or may be provided to a charitable fundraising platform or platform charity and apply to any partnering charitable fundraising platforms expressly identified in an agreement providing consent, by one authorized officer, director, trustee, or other duly authorized representative of the recipient charitable organization.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
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 Section 12599.10, all of the following are met:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The charitable fundraising platform or platform charity shall only reference the recipient charitable organization’s name, address, telephone number, internet website, including through a hyperlink, employer identification number, corporation or organization number, or registration number with the Attorney General’s Registry of Charities and Fundraisers, classification in the National Taxonomy of Exempt Entities system, publicly available information from the recipient charitable organization’s tax or information returns filed with the Internal Revenue Service, publicly available information from the recipient charitable organization’s reports filed with the Attorney General’s Registry of Charities and Fundraisers, or other information set forth in rules or regulations established under Section 12599.10, if any.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The charitable fundraising platform or platform charity shall conspicuously disclose before persons can complete a donation, or select or change a recipient charitable organization, that the recipient charitable organization has not provided consent or permission for the solicitation, and has not reviewed or approved the content generated by persons engaging in peer-to-peer charitable fundraising, when applicable.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The charitable fundraising platform or platform charity shall remove any recipient charitable organization from its list or any solicitation regarding the recipient charitable organization upon written request by the recipient charitable organization, and verification that the request is legitimate. Requests shall be promptly verified and it shall take no longer than three business days for removal to occur after verification is completed.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
The charitable fundraising platform or platform charity shall not divert or otherwise misuse the donations received through solicitation on the charitable fundraising platform, and shall hold them in a separate account or accounts from other funds belonging to the charitable
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 Section 12599.10.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
When a charitable fundraising platform or platform charity contracts with vendors to solicit, receive, control, process, distribute, and otherwise account for donations on the charitable fundraising platform, the contracts shall be available for inspection by the Attorney General.
</html:p>
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<ns0:Num>SEC. 2.</ns0:Num>
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Section 12599.10 of the
<ns0:DocName>Government Code</ns0:DocName>
is amended to read:
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<ns0:LawSection id="id_0B28ED94-D864-4353-B9EA-63390966861A">
<ns0:Num>12599.10.</ns0:Num>
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<ns0:Content>
<html:p>The Attorney General shall establish rules and regulations necessary for the administration of Section 12599.9, which shall include, but are not limited to, all of the following:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
The additional acts of solicitation that meet the definition of a charitable fundraising platform or platform charity, as needed, in order to
address changes in technology and charitable fundraising through platforms.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The content of the form and other information to be provided by a charitable fundraising platform for registration and in annual reports filed with the Attorney General’s Registry of Charitable Trusts, including all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The manner and
timing of the filing of registration and reports.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The handling of confidential, trade secret, or personal information provided.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The circumstances under which partnering charitable fundraising platforms or platform charities may submit an annual report on behalf of other charitable fundraising platforms, taking into
consideration the benefits and expenses of submitting individual reports for charitable fundraising platforms as compared to consolidated reports for charitable fundraising platforms that partner with platform charities.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The payment of fees to cover the reasonable costs to administer and enforce Section 12599.9.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
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, including permitting those agreements to be entered into electronically.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
The requirements for holding donations or distributing donations and grants of recommended donations, including all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
The maximum length of times it takes to send the donated funds, taking into consideration the acts of solicitation described in paragraph (1) of subdivision (a), the number of donations made through a charitable fundraising platform or platform charity, whether donations are made to the charitable fundraising platform, platform charity, recipient charitable organizations, other charitable organizations, or persons engaging in peer-to-peer charitable fundraising, whether the recipient charitable organization has provided consent for a solicitation, whether further verification information is requested to prevent fraud, and whether donations are sent to alternate recipient charitable organizations.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
For charitable fundraising platforms as defined in subparagraph (C) or (D) of paragraph (1) of subdivision (a) of Section 12599.9, the length of time to send donations or grants of recommended donations to the recipient charitable organization shall be no less than on a quarterly basis and subject to any minimum amounts, not to exceed ten dollars ($10), as disclosed pursuant to paragraphs (2) and (3) of subdivision (e) of Section 12599.9. Regardless of the minimum amount, donations or grants of recommended donations to the recipient charitable organization shall be sent after four consecutive quarters, unless the recipient charitable organization is not eligible to receive the funds, as disclosed pursuant to paragraphs (2) and (3) of subdivision (e) of Section 12599.9.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The circumstances under which donors or persons may be contacted to provide alternate recipient charitable organizations or notified when the donated funds are sent.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The circumstances when donor or personal information may be provided to recipient charitable organizations.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
The specifications for an application programming interface that provides charitable fundraising platforms, platform charities, or other entities the necessary information from the Attorney General’s Registry of Charitable Trusts database to determine good standing pursuant to paragraph (3) of subdivision (d) of Section 12599.9 in real time.
</html:p>
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