Governor Jerry Brown today signed into law Assembly Bill 361, creating a new class of corporations in California called benefit corporations. The bill had been sponsored by Assemblymember Jared Huffman. California is now the 6th state (joining New Jersey, Virginia, Hawaii, Vermont and Maryland) that officially allow benefit corporations. Benefit corporations are legally required to pursue a positive impact on society and the environment, while meeting higher standards of accountability and transparency.
“Entrepreneurs, investors and consumers are calling for this type of legislation,” said Assemblymember Huffman. “They believe this is the start of something transformational. AB 361 rolls out the welcome mat for businesses and investors ready to create high quality jobs in California and make economic and social contributions that will improve the quality of life in communities across to our state for years to come.”
More than 200 California businesses supported the bill, and over 3000 Care2 members signed the petition sent to Governor Brown.
Many thanks to the Care2 members who signed the petition urging Governor Brown to sign the legislation.