A Competing Flexible Purpose Corporation Bill?

In this post last week, I identified AB 361 as a “spot” bill introduced by Assembly Member Jared Huffman. As explained in this post from last June, a spot bill is a bill that would make non-substantive changes to a particular code or law in order to serve as a placeholder so that the bill can be amended to make substantive changes. Because the substantive amendments must be “germane” to the bill’s original subject matter, a spot bill will make a non-substantive change to the code or law that is to be the subject of the substantive amendment. By hiding their true colors, spot bills are an affront to legislative transparency and accountability.

Now, I’m hearing that AB 361 is intended to be the vehicle for the introduction a Benefit Corporation Law. If this is the case, AB 361 would be a competitor to SB 201, introduced by Senator Mark DeSaulnier. Last month, I wrote about SB 201 in this post. Although the substantive text has not yet been amended into AB 361, it is my understanding that the proposed Benefit Corporation Law will be similar to legislation enacted last April in Maryland and last May in Vermont.

Please see full article below for more information.

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