DeSaulnier Bill to Encourage Formation of Socially Responsible Corporations

February 23, 2014 10:00 am · 22 comments

Senator Mark DeSaulnier (D-Concord) has introduced Senate Bill 1301, which he says will make it easier for companies to incorporate as socially responsible corporations in the state of California.

This bill strengthens previous efforts by Senator DeSaulnier to encourage companies to incorporate with a special purpose.

“Companies formed as Socially Responsible Corporations can promise that more than their shareholders will realize the benefits from the company’s success and subsequent investments,” Senator DeSaulnier said. “This bill promotes socially responsible business practices that will benefit our state. As the nation’s innovation leader, it is important that California provide options for socially conscious entrepreneurs.”

California took the lead in promoting the incorporation of companies with a socially responsible mission, when SB 201 (DeSaulnier) was signed in 2011. This bill established the new corporate form to allow California businesses to organize as a Flexible Purpose Corporation. This new corporate form, the “Flexible Purpose Corporation,” integrated the for-profit philosophy of the traditional corporation along with a “special purpose” mission. SB 201 encouraged and expressly permitted companies to pursue one or more charitable or public purpose activities in addition to creating economic value for shareholders. Several other states, including Delaware, followed California’s lead in creating flexible purpose corporate forms.

SB 1301 renames Flexible Purpose Corporations as Socially Responsible Corporations, to more accurately reflect the spirit of the law. Socially Responsible Corporations will now be required, and not just encouraged, to consider a special purpose.

SB 1301 will make it easier for companies from outside the state to incorporate or reincorporate as a “socially responsible corporation” in California. This bill also cleans up California code to conform to other states’ guidelines for the incorporation of flexible purpose or socially responsible companies.

{ 22 comments }

1 anonymous February 23, 2014 at 10:20 AM

“Socially responsible corporation” as defined by the far left.

I predicted DeSaulnier would be putting forth all kinds of things with his name attached as he runs for Millers seat.

He didn’t disappoint.

2 GoodGrief February 23, 2014 at 10:21 AM

More DeSaulnier FAIL!!

3 Huh? February 23, 2014 at 10:23 AM

“More then their shareholders will realize benefits” Wow! thats a great concept .Ill put my money in a corporation and someone else will share in the profits.

What an idiotic idea.

4 California Nightmare February 23, 2014 at 10:34 AM

Still trying to figure out what a ” socially responsible” company is.

Would it ba a company directing money to kill unborn babies?

Would it be a company “investing” in lobbying government to protect a bait fish while farmers go bankrupt during a drought?

Only in the twisted logic of the Democrat party…

5 Noj February 23, 2014 at 10:59 AM

From the Manhattan Institute for Policy Research, Civic Report 09-2012:

“For decades after World War II, California was a destination for Americans in search of a better life. In many people’s minds, it was the state with more jobs, more space, more sunlight, and more opportunity. They voted with their feet, and California grew spectacularly (its population increased by 137 percent between 1960 and 2010). However, this golden age of migration into the state is over. For the past two decades, California has been sending more people to other American states than it receives from them. Since 1990, the state has lost nearly 3.4 million residents through this migration…
The data also reveal the motives that drive individuals and businesses to leave California. One of these, of course, is work. States with low unemployment rates, such as Texas, are drawing people from California, whose rate is above the national average. Taxation also appears to be a factor, especially as it contributes to the business climate and, in turn, jobs. Most of the destination states favored by Californians have lower taxes. States that have gained the most at California’s expense are rated as having better business climates. The data suggest that many cost drivers—taxes, regulations, the high price of housing and commercial real estate, costly electricity, union power, and high labor costs—are prompting businesses to locate outside California, thus helping to drive the exodus.”

From the Wall Street Journal, Joel Kotkin: The Great California Exodus 04-27-2012 :

“Meanwhile, taxes are harming the private economy. According to the Tax Foundation, California has the 48th-worst business tax climate. Its income tax is steeply progressive. Millionaires pay a top rate of 10.3%, the third-highest in the country. But middle-class workers—those who earn more than $48,000—pay a top rate of 9.3%, which is higher than what millionaires pay in 47 states.”

Mark pretends to care. But he doesn’t know why businesses, retirees, and other folks are leaving this once great state of California. He thinks more taxes, regulations, and big government are the answer.

6 Dredge February 23, 2014 at 11:47 AM

It’s an insult.

7 Dredge February 23, 2014 at 11:49 AM

“Special Purpose.” That’s from Steve Martin’s movie “The Jerk.”

8 Anon February 23, 2014 at 11:55 AM

Politicians looking to stay in office, or in his case take someone bigger’s seat.

9 Julio February 23, 2014 at 12:26 PM

“He thinks more taxes, regulations and big government are the answers” Of course he is a Democrat. Wish he could see how Obama care has destroyed those of us living with this mess. My co pays have more than tripled and I have normally reasonable Kaiser.

10 RANDOM TASK February 23, 2014 at 12:34 PM

@8 yep same and wait till next year when those go up and up and they change your 80% coverage to 60% since the Obama has made it so his healthcare conglomerates can fleece us all now he will in deed be getting kickbacks ( fundraising ) for years to come. As for all these bills coming out …….lol the lemmings will no doubt back the dems and their take over policies just as the germans did …..history to repeat itself ……over and over again………simple minds vote dem they have to that’s what they are told to do by their everything is free politicians. Who wouldn’t raise their hand if they were told everything is free follow me. Obviuosly and well unfortunately the lemmings will always bring us down.

11 mutts February 23, 2014 at 1:32 PM

Hahaha, Dredge. guess what folks, Hillary has a special purpose. We all know Bill’s special purpose!

12 Ven Xeter February 23, 2014 at 1:35 PM

Sadly, regardless of how much of a left wing loon this guy is, he is odds on to be our next congressman. While the audience of Claycord reads and actively tries to stay informed, most boobs in our district vote a straight democrat ticket regardless of who is running and what zany policy positions they espouse.

13 Dorothy February 23, 2014 at 1:36 PM

Socially responsible companies are those that don’t pay their major officers 1000% or more than their best paid lower employees. Socially responsible companies keep the jobs in this country instead of overseas for cheaper labor.
You don’t need laws by either party to create socially responsible companies.

14 Lorelei February 23, 2014 at 1:51 PM

How could anyone VOTE for this waste-of-carbon?!?!?!

15 Ted K., SuperMax February 23, 2014 at 1:53 PM

More “feel good” laws from the Peoples Republik of Khalifornia that do little, if anything, to create jobs.

16 Huh? February 23, 2014 at 2:38 PM

Ee gads! would someone, anyone, run against this moron?

17 @ Mirriam February 23, 2014 at 4:40 PM

I think you dont understand what a corporation is. Its a way people make money. If you invest in one as a sharreholder hopefully you get some money back. All the superflous stuff about being socially responsible comes down to this: Who is defining socially responsible? In DeSaulniers case its the far left doing it.

Previous poster was anti abortion, others are pro abortion. So who is right? Who is socially responsible? Do we have a vote on it?

This is simply more messing with the economy by a candidate for higher office. One who almost bankrupted the county when he was a Supervisor.

18 Boneguy1 February 23, 2014 at 4:50 PM

Bill should Read Encourage Socialist Corporations that pay off the elite Fascists like Markist Mark

19 RIII February 23, 2014 at 6:24 PM

Is this all these “Clowns” have to do? Our Cities, Counties, and our State is broke and they spend their time on this type of things. Very disappointing. It’s hard enough for any company to exist in this state without this kind of legislation.

20 Directive 10-289 February 23, 2014 at 6:32 PM

Sounds like some crony-capitalism scam.

21 Yhe Phantom February 23, 2014 at 9:30 PM

- State Senator Mark DeSaulnier for Congress 2014 – the Good Concord Solution as our leadership voice in Washington.
- http://en.wikipedia.org/wiki/Mark_DeSaulnier
- http://sd07.senate.ca.gov/contact
- http://www.markdesaulnier.com/
- For a list of his wide spread and diverse supporters:
- http://followthemoney.org/database/StateGlance/contributor_details.phtml?&c=137483&s=CA&y=2012&summary=0&so=a#sorttableSolution!

22 Yhe Phantom February 23, 2014 at 9:34 PM

All but one item completed

What have you defeatists done?

2013 LEGISLATION; STATE SENATOR MARK DESAULNIER

SB 133 – Enterprise Zones
SB 133 reforms redevelopment agency housing expenditures in the event that redevelopment is resurrected in some form.

SB 293 – Owner-Authorized Handguns
SB 293 requires that two years after two manufacturers have owner-authorized handguns on the “Roster of Handguns Certified for Sale”; no handgun can be placed on the roster by the Department of Justice that is not owner-authorized.

SB 299 – Reporting of Lost or Stolen Firearms
SB 299 will require that every person whose firearm is lost or stolen must notify local law enforcement within 7 days from the time the person knew or reasonably should have known that the firearm had been lost or stolen.

SB 341 – Redevelopment Housing Successor Agencies
SB 341 revises rules governing the activities and expenditures of housing successor agencies to streamline administrative requirements while ensuring accountability, provide additional flexibility, and target scarce available resources to the greatest needs.

SB 391 – The Homes and Jobs Act sponsored by California Housing Consortium and Housing California
SB 391 imposes a $75 fee on the recordation of each real-estate document, except for documents related to sales, to provide a permanent funding stream for the Homes and Jobs Trust Fund to support the development, acquisition, rehabilitation, and preservation of homes affordable to low- and moderate-income households.

SB 425 – Public Works Peer Review Act of 2013
SB 425 allows administering agencies to use peer review groups, but requires that those agencies develop a transparent process for selecting members and discouraging conflicts of interest. It also requires the agencies to draft a charter for the peer review group describing the group’s members, its objective and scope, and the duties for which the group is responsible, among other things.

SB 466 – California Institute for Criminal Justice Policy
SB 466 establishes the California Institute for Criminal Justice Policy which will be responsible for conducting a cost benefit analysis of any criminal justice legislation and providing it to the appropriate policy and fiscal committees of the Legislature, no later than 60 days after receiving the request.

SB 486 – Office of Strategic Assessment and Accountability
SB 486 Requires Caltrans to publish quarterly reports measuring the department’s success in meeting performance benchmarks in order to improve transparency and public confidence.

SB 509 – California Health Benefit Exchange
SB 509 provides federally required authority to the Health Benefit Exchange to perform a background check for all employees prior to hiring for positions that will have access to enrollees’ personal identifying information.

SB 544 – California Violence Prevention Act of 2013
SB 544 establishes the California Violence Prevention Authority to coordinate statewide violence prevention efforts across agencies, organizations, and sectors including criminal justice and public health systems to better provide violence prevention for families, schools, and communities.

SB 613 – Toll Revenues
SB 613 limits the use of toll revenues for administrative costs to 1% of annual toll revenues and clearly defines what an administrative cost is. Additionally, the bill eliminates the ability for toll revenues to be spent on any future real estate purchases.

SB 652 – Residential Construction Defects: Notice Requirements
SB 652 requires someone selling a home to disclose any claim he or she made pursuant to the state’s pre-litigation process for construction defect claims and the status of that claim to a subsequent purchaser of the home.

SB 673 – Land Use Planning: Government Subsidies
SB 673 requires a city or county, prior to approving a development project that will receive a subsidy valued at over $1 million from the local government to review an independent cost benefit analysis of the subsidy.

SB 717 – Warrants for DUI Blood Tests
SB 717 conforms California’s Penal Code to adhere to a US Supreme Court decision finding that in drunk-driving investigations it is now unlawful to conduct a blood test without consent. This bill requires officers to obtain a warrant before they can take a suspect’s blood, should the suspect not give consent.

SB 745 – Transportation and Housing Committee Bill
SB 745 is a code clean-up bill to make non-controversial changes to sections of law relating to housing.

SB 747 – Public Health Epidemic Protection Act of 2013
SB 747 establishes the Public Health Epidemic Protection Act of 2013 to reduce significant public health risk factors that contribute to serious chronic diseases and coordinate actions necessary to mitigate the rise in preventable illnesses associated with these risk factors, as well as to reduce healthcare costs and lost workforce productivity.

SB 761 – Paid Family Leave: Anti-Retaliation sponsored by Legal Aid Society – Employment Law Center
SB 761 prohibits an employer or agent of an employer to discharge or in any other manner to discriminate against an individual because he or she has applied for, used, or indicated an intent to apply for or use, paid family leave insurance benefits.

SB 782 – Sexual Assault Victim Equity Act (SAVE Act) sponsored by California Coalition Against Sexual Assault and Alameda County District Attorney, Nancy O’Malley
SB 782, the Sexual Assault Victim Equity Act (SAVE Act), creates a sustainable funding stream for California’s rape crisis programs through a $10 per customer fee on California sexually oriented businesses that serve alcohol or permit alcohol consumption.

SB 788 – Transportation and Housing Committee Bill
SB 788 is a code clean-up bill to make non-controversial changes to sections of law relating to transportation.

SB 792 – Bay Area Regional Governance
SB 792 requires the Bay Area’s four regional agencies to adopt jointly a coordinated sustainable communities strategy that will additionally consider air quality, sea level rise, priority infrastructure needs, economic development, and social equity. The bill also requires the four agencies to prepare a plan for consolidating common functions and requires the joint policy committee comprised of the four agencies to appoint an advisory committee on economic competitiveness.

SB 803 – Mortgage Fraud sponsored by California District Attorneys Association
SB 803 allows a criminal court to adjudge void any false or forged instrument that affects title to the property of a victim of mortgage fraud. This will make it easier for people who have been defrauded to clear up their chain of title after the fraud.

SB 809 – Controlled Substance Utilization Review and Evaluation System sponsored by Attorney General Kamala Harris
SB 809 provides funding to operate the Department of Justice’s Controlled Substance Utilization Review and Evaluation System (CURES) program to deter prescription drug abuse and require that all prescribers and pharmacists enroll in the program.

SCA 6 – Initiatives: Funding Source
SCA 6 prohibits initiative measures that increase state and local government costs from taking effect, unless the measure provides for the revenues required to pay for itself.

SCR 2 – Constitutional Convention
SCR 2 proposes that the people of the State of California vote at the next statewide general election on the question of whether to call a convention to revise the California Constitution.

SCR 8 – Prescription Drug Abuse Awareness Month
SCR 8 declares March, of each year, as Prescription Drug Abuse Awareness Month.

SCR 43 – Officer Kenyon Youngstrom Memorial Undercrossing
SCR 43 names the Livorna Road Undercrossing of State Highway Route (SR) 680 in Contra Costa County as the Officer Kenyon Youngstrom Memorial Undercrossing, in order to honor and memorialize the life and service of Kenyon Youngstrom.

SCR 44 – Joe Eddy McDonald Memorial Overcrossing
SCR 44 designates the Willow Avenue Overcrossing over State Highway Route 4 in Contra Costa County as the Joe Eddy McDonald Memorial Overcrossing, in order to honor and memorialize the life and service of Joe Eddy McDonald.

SJR 11 – Encouraging Housing With Services
SJR 11 encourages the federal government to expand Medicare waivers to support Housing with Services models of affordable housing for seniors and persons with disabilities as a means to encourage aging-in-place and use Medicaid resources more efficiently.

- Some detractors may find one thing they like:

SB 717 – Warrants for DUI Blood Tests
SB 717 conforms California’s Penal Code to adhere to a US Supreme Court decision finding that in drunk-driving investigations it is now unlawful to conduct a blood test without consent. This bill requires officers to obtain a warrant before they can take a suspect’s blood, should the suspect not give consent.

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