California Government Code 12599.2 – (a) “Commercial coventurer” is defined as any person or entity …
(a) “Commercial coventurer” is defined as any person or entity who, for profit, is regularly and primarily engaged in trade or commerce other than in connection with the raising of funds, assets, or property for charitable organizations or charitable purposes, and who represents to the public that the purchase or use of any goods, services, entertainment, or any other thing of value will benefit a charitable organization or will be used for a charitable purpose. A person or entity that meets the definition of both a commercial coventurer and a charitable fundraising platform under subparagraph (A), (B), (C), or (E) of paragraph (1) of subdivision (a) of Section 12599.9 shall be only a charitable fundraising platform. 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) of subdivision (a) of Section 12599.9 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). Otherwise, this person or entity shall only be a charitable fundraising platform.
(b) A commercial coventurer is a trustee as defined in Section 12582. Notwithstanding the requirements of Sections 12585 and 12586, a commercial coventurer is not required to register or file periodic reports with the Attorney General provided that the commercial coventurer:
Terms Used In California Government Code 12599.2
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Person: includes any person, firm, association, organization, partnership, limited liability company, business trust, corporation, or company. See California Government Code 17
- State: means the State of California, unless applied to the different parts of the United States. See California Government Code 18
- Subdivision: means a subdivision of the section in which the term occurs unless some other section is expressly mentioned. See California Government Code 10
- Trustee: A person or institution holding and administering property in trust.
(1) Has a written contract with a trustee or charitable corporation subject to this article, signed by two officers of the trustee or charitable corporation, prior to representing to the public that the purchase or use of any goods, services, entertainment, or any other thing of value will benefit the trustee or charitable corporation or will be used for a charitable purpose.
(2) Within 90 days after commencement of those representations, and at the end of each successive 90-day period during which the representations are made, transfers to that trustee or charitable corporation subject to this article all funds, assets, or property received as a result of the representations.
(3) Provides in conjunction with each transfer required by paragraph (2) a written accounting to the trustee or charitable corporation subject to this article of all funds, assets, or property received sufficient to enable the trustee or charitable corporation (A) to determine that representations made to the public on its behalf have been adhered to accurately and completely, and (B) to prepare its periodic report filed with the Attorney General pursuant to Section 12586.
(c) A commercial coventurer that does not meet the requirements of paragraphs (1), (2), and (3) of subdivision (b) shall register and report to the Attorney General on forms required by the Attorney General. An annual registration or renewal fee of two hundred dollars ($200) shall be required for registration or renewal of registration of a commercial coventurer, and shall be payable by certified or cashier’s check to the Attorney General’s Registry of Charities and Fundraisers at the time of registration or renewal. The Attorney General may adjust the annual registration or renewal fee, or means of payment, as needed pursuant to this section.
(Amended by Stats. 2023, Ch. 478, Sec. 32. (AB 1756) Effective January 1, 2024.)