For any year that the balance sheet of a charitable organization shows that it holds restricted net assets, while reporting negative unrestricted net assets, the organization shall provide an explanation of its compliance with its charitable trust responsibilities and proof of directors’ and officers’ liability insurance coverage to the Attorney General’s Registry of Charities and Fundraisers.

(Amended by Stats. 2023, Ch. 478, Sec. 35. (AB 1756) Effective January 1, 2024.)