Bill Text: CA AB2018 | 2011-2012 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Land use: local planning: religious corporations.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2012-04-23 - In committee: Set, first hearing. Hearing canceled at the request of author. [AB2018 Detail]

Download: California-2011-AB2018-Introduced.html

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BILL NUMBER: AB 2018	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Norby

                        FEBRUARY 23, 2012

   An act to amend Section 9142 of the Corporations Code, relating to
religious corporations.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2018, as introduced, Norby. Religious corporations: trusts.
   Under existing law, a trust in favor of a superior religious body
or general church may be created in assets of its member religious
corporation only, (1) by express commitment by resolution of its
board of directors to hold those assets in trust, (2) if the articles
or bylaws of the corporation, or the governing instruments of a
superior religious body or general church of which the corporation is
a member, expressly provide for creation of a trust, and (3) if the
donor expressly imposed a trust in writing.
   This bill would make technical, nonsubstantive changes to those
provisions.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 9142 of the Corporations Code is amended to
read:
   9142.  (a) Notwithstanding Section 9141, any of the following may
bring an action to enjoin, correct, obtain damages for or to
otherwise remedy a breach of a trust under which any or all of the
assets of a corporation are held:
   (1) The corporation, a member, or a former member asserting the
right in the name of the corporation, provided that for the purpose
of this paragraph the provisions of Section 5710 shall apply to
 such   the  action.
   (2) An officer of the corporation.
   (3) A director of the corporation.
   (4) A person with a reversionary, contractual, or property
interest in the assets subject to  such   the
 trust.
   (b) In an action under this section, the court may not rescind or
enjoin the performance of a contract unless:
   (1) All of the parties to the contract are parties to the action;
   (2) No party to the contract has, in good faith and without actual
notice of the restriction, parted with value under the contract or
in reliance upon it; and
   (3) It is equitable to do so.
   (c) No assets of a religious corporation are or shall be deemed to
be impressed with any trust, express or implied, statutory or at
common law unless one of the following applies:
   (1) Unless, and only to the extent that, the assets were received
by the corporation with an express commitment by resolution of its
board of directors to so hold those assets in trust.
   (2) Unless, and only to the extent that, the articles or bylaws of
the corporation, or the governing instruments of a superior
religious body or general church of which the corporation is a
member, so expressly provide.
   (3) Unless, and only to the extent that, the donor expressly
imposed a trust, in writing, at the time of the gift or donation.
   (d) Trusts created by paragraph (2) of subdivision (c) may be
amended or dissolved by amendment from time to time to the articles,
bylaws, or governing instruments creating the trusts. However,
nothing in this subdivision shall be construed to permit the
amendment of the articles to delete or to amend provisions required
by Section 214.01 of the Revenue and Taxation Code to a greater
extent than otherwise allowable by law.