legislation that may affect volunteerism, from non profit resource center

from the nonprofitresourcectr.org email, based out of Sacramento Public Library, often offering free, or low cost workshops for nonprofits in modesto, and northern CA.

jim

NONPROFIT RESOURCE CENTER

April 14, 2008

Legislative Update!

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Possible Future Change in Legislation May Effect Organizations that Utilize Volunteers

Senate Bill 1345 failed in Committee on Wednesday April 9th

Senate Bill 1345 would have eliminated a sunset in the current law, which exempts volunteers from the wage requirement otherwise associated with government-financed projects.

The sunset, section 1720.4 of the Labor Code is set to expire January 1, 2009.  This code section (part of AB 2690) was passed in 2004 in order to address an issue concerning the use of volunteer labor on public works projects.  Many environmental projects such as trail building, wetland restoration and beach cleanup depend on such volunteer service and as a result required an exemption from prevailing wage regulation in order to continue without the loss of funding. 

Why does this matter to you? If a bill is not passed come January 1, 2009, foundations that fund environmental projects and nonprofit organizations that complete activities such as park, river, creek and coastal cleanups; tree plantings; graffiti abatement projects etc. will have to begin paying volunteers prevailing wage.

Two additional bills are currently awaiting vote in the assembly:

AB 2364 (Walters)

AB 2537 (Furutani)

AB 2364 (Walters) would extend the authorization to use volunteers for public works projects indefinitely (i.e. NO sunset date).  AB 2364 is identical to SB 1345 which died in the senate committee.  AB 2364 is supported by a variety of nonprofit organizations. AB 2537 (Furutani) adds a three year sunset date to 1/1/12.  AB 2537 is supported by labor.

We need to support the bill that eliminates a sunset in current law, extending the volunteer workers’ prevailing wage exemption indefinitely (AB 2364), allowing volunteer workers and organizations to continue providing services for specific projects without being required to receive the prevailing wage. The existing law, which this bill extends, specifically defines a "volunteer" as an individual who performs work for civic, charitable, or humanitarian reasons for a public agency or corporation qualified under Section 501(c)(3) of the Internal Revenue Code as a tax-exempt organization, without promise, expectation, or receipt of any compensation for work performed.  Enacted in 2004, the exemption has proven itself to protect laborers while ensuring the freedom of those who wish to contribute to the state through volunteerism.

Volunteers are responsible for California’s ability to accomplish great tasks, from preserving the environment to responding quickly and effectively to natural disasters.  Time magazine recently highlighted California’s national leadership in volunteerism and noted how the state’s utilization of volunteers has allowed us to successfully respond to disasters where other states have stumbled.  It is clear that the prevailing wage exemption for volunteers is vital to the state beyond its importance to the protection of our residents’ most basic rights. 

To view more information on proposed legislation or to contact your representative, visit the California State Legislature’s Website at www.legislature.ca.gov.

Staci Cox

Program Assistant

Nonprofit Resource Center

916.264.2772

scox@nprcenter.org

www.nprcenter.org