PRESS RELEASE

PR26-18
FOR IMMEDIATE RELEASE
February 5, 2026
Contact: sospress@sos.ca.gov 

Proposed Initiative Enters Circulation: Regulates Certain Nonprofit Research Organizations and Associated For-Profit Entities. Initiative Statute.
 

Sacramento, Calif. – California Secretary of State Shirley N. Weber, Ph.D., announced that the proponent of a new initiative was cleared to begin collecting petition signatures on February 4, 2026.

The Attorney General prepares the legal title and summary that is required to appear on initiative petitions. When the official language is complete, the Attorney General forwards it to the proponent(s) and to the Secretary of State, and the initiative may be circulated for signatures. The Secretary of State then provides a calendar of deadlines to the proponent(s) and to county elections officials. The Attorney General’s official title and summary for the measure is as follows:

REGULATES CERTAIN NONPROFIT RESEARCH ORGANIZATIONS AND ASSOCIATED FOR-PROFIT ENTITIES. INITIATIVE STATUTE. Creates new state agency, the Charitable Trust Oversight Board, comprised of seven appointed members with specified expertise, to regulate (1) certain nonprofit research organizations that have converted to for-profit status or transferred charitable assets to a for-profit entity and (2) those for-profit entities. Authorizes Board to define regulated entities’ ongoing charitable obligations. Requires nonprofits that control converted for-profit entities to appoint independent directors to their board and prioritize “public benefit” over profit. Requires regulated entities developing advanced artificial intelligence technologies to obtain Board approval before materially expanding technological capabilities. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: Increased state costs that would likely range from the millions of dollars to the tens of millions of dollars annually—but could reach into the low hundreds of millions of dollars annually—to increase oversight of certain nonprofit charities and related entities engaged in research and technology creation. These costs would generally be paid for by a similar amount of revenues from new fees and penalties paid by entities subject to the increased oversight. (25-0032A1)

The Secretary of State’s tracking number for this measure is 2009 and the Attorney General's tracking number is 25-0032A1.

The proponent of the measure, Poornima Ramarao, must collect signatures of 546,651 registered voters (five percent of the total votes cast for governor in the November 2022 general election) in order for the measure to become eligible for the ballot. The proponent has 180 days to circulate petitions for the measure, meaning the signatures must be submitted to county elections officials no later than August 3, 2026. The address for the proponent is c/o Matthew Alvarez and Eli Love, Rutan & Tucker, 455 Market Street, Suite 1400, San Francisco, CA 94105. The proponent may also be contacted at (415) 732-4502, malvarez@rutan.com, and elove@rutan.com.

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