California AB 1338: Community Foundations

California Assembly Bill 1338, introduced by Assembly Member Jacqui Irwin (D) on February 22, 2019, adds a requirement to meet the definition of a community foundation for the purpose of a Chapter of the Planning and Zoning Law regarding agency authorization of special entities, including community foundations, to hold title to, and manage that interest in, real property for the purpose of mitigating the environmental impact of a project or facility, as well as any endowment.

The following language is added as Section 65965(b)(7) to the definition of a community foundation for purposes of Chapter 4.6, Division 1, Title 7 of the Government Code:

On and after January 1, 2021, provides each of its board members and officers training on performance of their fiduciary duties within a specified time period after the commencement of their tenure with the community foundation, and periodically thereafter. A community foundation shall also post information about its fulfillment of this requirement, and the compliance of each board member and officer, on its internet website.

To be clear, this is not a general requirement applicable to all community foundations. Chapter 4.6 provides for the eligibility of certain community foundations that meet the applicable definition to hold title to and manage mitigation property and endowment funds conveyed solely for the long-term management and stewardship of a mitigation property.