Cal. Code Regs. tit. 11 § 339

Current through Register 2024 Notice Reg. No. 49, December 6, 2024

Section 339 - Grounds for Refusal, Revocation or Suspension

The grounds for which a registration may be refused, suspended or revoked include, but are not limited to:

(a) Misuse of charitable assets.

(b) False or misleading statements and/or conduct in connection with a solicitation for charitable purposes, including any conduct in violation of section 17510 et seq. of the Business and Professions Code and sections 12599.6 and 12599.9, subdivision (e), of the Government Code.

(c) False or misleading statements in a document required by law to be filed with a government agency, including the annual registration and renewal reports filed with the Attorney General and informational returns filed with the Internal Revenue Service and Franchise Tax Board. The omission of material information in response to a question in a document required by law to be filed with a government agency constitutes a false or misleading statement.

(d) Failure to comply with the standards of conduct for nonprofit corporations in sections 5230 through 5260 and 7230 through 7238 of the Corporations Code.

(e) Failure to prepare annual financial statements using generally accepted accounting principles that are audited by an independent certified public accountant in conformity with generally accepted auditing standards, as required by section 12586, subdivision (e), of the Government Code.

(f) Failure to produce records in response to a subpoena or written request from the Attorney General.

(g) An adverse action by a governmental entity related to the operation of a charitable corporation, trustee, commercial fundraiser for charitable purposes, fundraising counsel for charitable purposes, commercial coventurer, charitable fundraising platform, platform charity or a person or entity that performs the functions of such registrants regardless of title, or the conduct of a solicitation for charitable purposes, including misuse of charitable assets and unlawful or misleading conduct related to solicitation for charitable purposes.

(1) An adverse action by a governmental entity includes, but is not limited to, suspension, revocation or denial of registration, civil or criminal judgment, assessment of a fine, administrative or civil penalty, entry of assurance of voluntary compliance or enforceable settlement agreement or an equivalent action regardless of its title.

(2) This includes any entity that has an officer, director or key employee, or is owned or operated by a person who was the subject of an adverse action or who owned or operated such an entity or was directly involved in such actions.

Cal. Code Regs. Tit. 11, § 339

Note: Authority cited: Sections 12581, 12585, 12586, 12587, 12598 and 12599.10, Government Code. Reference: Sections 11400 et seq., 11500 et seq., 11425.10, 11425.60, 11517, 11518.5, 11519, 12581, 12581.2, 12584, 12585, 12586, 12588, 12591, 12591.1, 12595, 12596, 12597, 12598, 12599, 12599.1, 12599.2, 12599.3, 12599.5, 12599.6, 12599.7, 12599.9 and 12599.10, Government Code; Sections 17510, 17510.2, 17510.25, 17510.3, 17510.4, 17510.5, 17510.8, 17510.85 and 17510.9, Business and Professions Code; and Sections 5142, 5230, 5231, 5232, 5233, 5235, 5236, 5237, 5238, 5239, 5240, 5260, 6215, 7231, 7233, 7236, 7237 and 7238, Corporations Code.

1. Renumbering of section 999.9 to new section 339, including amendment of section and NOTE, filed 3-26-2024; operative 3/26/2024 pursuant to Government Code section 11343.4(b)(3) (Register 2024, No. 13).