Supervision of Trustees and Fundraisers for Charitable Purposes Act.

The method for determining good standing of recipient charitable organizations changed. The Assembly version exempted organizations not subject to registration requirements from the good standing rule. The Senate version instead allows platforms to rely on electronic lists periodically published by the Franchise Tax Board and the Attorney General's Registry, but only if those lists are in machine-readable structured data format. If an agency does not publish such a list, the platform is excused from compliance for that agency while the list is unavailable.

A new provision (subdivision (e)(2)) allows charitable fundraising platforms soliciting users at checkout to make donations of $10 or less (or a higher inflation-adjusted amount) to provide certain disclosures (about alternative disposition, timing, fees, and tax deductibility) through a conspicuous hyperlink rather than inline text. This applies only to solicitations described in subparagraphs (A), (C), or (D) of the definition, and only for recipient charitable organizations that have provided written consent.

The Assembly version included provisions stating that if the registry does not process a filing within 10 days, the registration would be deemed in good standing, and required written notice to registrants when filings are found deficient with reasons stated. These procedural protections for registrants were removed in the Senate version.

The requirement for electronic administration of the registry was reframed. The Assembly version required the Attorney General to 'modernize the online registry.' The Senate version requires the online filing service to support comprehensive electronic administration by January 1, 2028, providing a specific deadline.

The definition of 'good standing' was slightly revised to clarify that it refers to tax-exempt status not being revoked by the Franchise Tax Board, and that prohibitions come from cease and desist orders, delinquency, suspension, or revocation by the Attorney General under Section 12599.12 procedures (removing a reference to Section 12599.11).

The bill now adds Section 12599.12 to the Government Code in addition to Section 12599.11, expanding the regulatory framework for charitable fundraising platforms.

The definition of 'good standing' in Section 12599.9(a)(3) was restructured. It now requires that a charity's tax-exempt standing has not been revoked by the Franchise Tax Board, and adds 'delinquency pursuant to the procedure contained in Section 12599.11' and general 'delinquency' as grounds for losing good standing. The prior language requiring 'appropriate due process procedure, including written notice, an opportunity for a hearing, and prompt examination of any filings' was removed.

A new requirement mandates that any person or entity required to file registration, reporting, or other submissions with the registry must do so through the Attorney General's online filing service. The online filing service must support comprehensive electronic administration by January 1, 2028.

Section 12599.10(a)(4)(A)(i) was broadened. The maximum time to send donated funds is no longer limited to solicitations where the recipient has not provided consent. It now must account for multiple factors including the type of solicitation, number of donations, whether further verification is requested to prevent fraud, and whether donations are sent to alternate recipients.

The name of the registry was updated from 'Registry of Charitable Trusts, Charities and Fundraisers' to 'Registry of Charities and Fundraisers' in Section 12599.10(a)(2).

The digest removed a provision that would have required registration statements and reports to be deemed approved within 10 business days unless the Attorney General notified the filer of specific deficiencies, along with a 15-day window to request a hearing on sufficiency of the filing.

If the registry does not process a filing submitted by a person or entity who is not registered or whose registration is expired or delinquent within 10 days from the date of filing, the registration would be deemed in good standing. A written notice must be sent to the registrant if the filing is found deficient, indicating the reasons for deficiency.

The Attorney General is now required to modernize the online registry to support comprehensive electronic administration.

The donation disposition provisions in subdivision (h)(2) now require that funds be 'promptly sent' to recipient or alternate charitable organizations, adding a timing requirement that was not explicit in the introduced version.

A new exception allows donations and grants of recommended donations that are $10 or less to be refunded (rather than sent to a recipient charity) for acts of solicitation described in subparagraphs (A), (B), or (E) of the platform definition, as disclosed to the donor.

The definition of 'good standing' was restructured. The primary test is now whether the organization is not prohibited from soliciting or operating by the Attorney General based on a cease and desist order, delinquency (newly added, referencing Section 12599.11), suspension, or revocation. The tax-exempt status language was moved to a secondary position and now references only the Franchise Tax Board rather than both the IRS and FTB.

References to 'Registry of Charitable Trusts' in Section 12599.10 were updated to 'Registry of Charities and Fundraisers' to match the correct name of the registry.