Bill Text: CA AB2221 | 2025-2026 | Regular Session | Amended

California Assembly Bill 2221

Bill Title: Supervision of Trustees and Fundraisers for Charitable Purposes Act.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Engrossed) 2026-06-03 - Referred to Com. on JUD. [AB2221 Detail]

Download: California-2025-AB2221-Amended.html

Amended IN Assembly April 23, 2026

Amended IN Assembly April 13, 2026

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

Assembly Bill

No. 2221

Introduced by Assembly Member Irwin

February 19, 2026

An act to amend Sections 12599.9 and 12599.10 of, and to add ~~Section~~ Sections 12599.11 and 12599.12 to, the Government Code, relating to charitable fundraising.

LEGISLATIVE COUNSEL'S DIGEST

AB 2221, as amended, Irwin. Supervision of Trustees and Fundraisers for Charitable Purposes Act.

Existing law, the Supervision of Trustees and Fundraisers for Charitable Purposes Act, requires the Attorney General to, among other things, establish and maintain a register of charitable corporations, unincorporated associations, and trustees subject to the act and of the particular trust or other relationship under which they hold property for charitable purposes. Existing law requires the Attorney General to establish rules and regulations necessary for the administration of these provisions.

Existing law requires a charitable fundraising platform, as defined, before soliciting, permitting, or otherwise enabling charitable solicitations, to register with the Attorney General’s Registry of Charities and Fundraisers, under oath, on a form provided by the Attorney General. Existing law requires a platform charity to have good standing, as defined, in order to facilitate acts of solicitation on a charitable fundraising platform. Existing law permits a charitable fundraising platform or platform charity to solicit, permit, or otherwise enable solicitations, or to receive, control, or distribute funds from donations, only for recipient charitable organizations or other charitable organizations in good standing. Existing law authorizes a charitable fundraising platform or platform charity to rely upon specified electronic lists to determine good standing of recipient charitable organizations or other charitable organizations, however, if those lists are not published, then a charitable fundraising platform or platform charity is not required to comply with this provision for that applicable agency for the length of time that agency’s list is unavailable.

This bill would remove the provisions described above that authorize a charitable fundraising platform or platform charity to rely upon specified electronic lists to determine good standing of recipient charitable organizations, or other charitable organizations and excuse compliance if the list is not published. Instead, the bill would specify that the directive that charitable fundraising platforms or platform charities only solicit, permit, or otherwise enable solicitations, or receive, control, or distribute funds from donations for recipient charitable organizations or other charitable organizations in good standing does not apply to charitable organizations that are not subject to the registration requirements of the act.

Existing law requires a charitable fundraising platform or platform charity that performs, permits, or otherwise enables acts of solicitation to, before a person can complete a donation or select or change a recipient charitable organization, provide conspicuous disclosures, including, among other things, a statement that a recipient charitable organization may not receive donations or grants or recommended donations, with an explanation identifying the most pertinent reasons why a recipient charitable organization may not receive the funds.

This bill would also require the statement described above to include an explanation of what alternative disposition will occur for the funds, as specified, and would make other conforming changes.

Existing law requires that the rules and regulations established by the Attorney General for the administration of the registry include, among other things, provisions that specify the contents of the form and other information to be provided by a charitable fundraising platform for registration and in annual reports filed with the registry.

~~This bill would make clarifying and technical changes to those provisions, including updating a reference to the name of the registry.~~
This bill would provide that if the registry does not process a filing submitted by a person or entity who is not registered or whose registration is expired or delinquent within 10 days from the date of filing, the registration would be deemed in good standing. The bill would require a written notice to be sent to the registrant if the filing is found deficient, indicating the reasons for deficiency. The bill would establish related procedures and timelines for registration filings, notices, and responses. The bill would also require the Attorney General to modernize the online registry to support comprehensive electronic administration, as prescribed.
This bill would require a person or entity that is required to file registration, reporting, or other submissions with the registry to do so through the Attorney General’s online filing service in accordance with rules and regulations of the Attorney General. The bill would require the online filing service, by January 1, 2028, to support comprehensive electronic administration, as prescribed. The bill would make various other clarifying and technical changes to the act.

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.

Section 12599.9 of the Government Code is amended to read:

12599.9.

(a) For purposes of this section:

(1) “Charitable fundraising platform” means any person, corporation, unincorporated association, or other legal entity that uses the internet to provide an internet website, service, or other platform to persons in this state, and performs, permits, or otherwise enables acts of solicitation to occur, which includes the following and any similar activity:

(A) Lists or references by name one or more recipient charitable organizations to receive donations or grants of recommended donations made by donors who use the platform.

(B) Permits persons who use the platform to solicit donations for or recommend donations to be granted to one or more recipient charitable organizations through peer-to-peer charitable fundraising.

(C) Permits persons who use the platform to select one or more recipient charitable organizations to receive donations or grants of recommended donations made by a platform, platform charity, or other third party person, based on purchases made or other activity performed by persons who use the platform.

(D) Lists or references by name of one or more recipient charitable organizations to receive donations or grants of recommended donations made by the platform based on purchases made or other activity performed by persons who use the platform.

(E) Provides to charitable organizations a customizable internet-based website, software as a service, or other platform that allows charitable organizations to solicit or receive donations on or through the platform, including through peer-to-peer charitable fundraising. The customizable platform provided by the charitable fundraising platform does not include the charitable organization’s own platform, but may integrate with the charitable organization’s platform.

(2) “Charitable fundraising platform” does not include:

(A) A charitable organization’s own platform that solicits donations only for itself.

(B) A vendor that solely provides technical or supportive services to a charitable fundraising platform so that the charitable fundraising platform can function and operate, including vendors used for hosting or domain services, security certificates, internet access, internet application development, or digital payment processing. If that vendor also performs, permits, or otherwise enables acts of solicitation described by paragraph (1) on its own platform to persons in this state, it is a charitable fundraising platform for its own platform.

(C) A sponsoring organization of donor-advised funds, as defined in subdivision (d) of Section 4966 of the Internal Revenue Code, that solicits donors to open donor-advised fund accounts or similar accounts, receives recommendations from donors on charitable organizations that may receive grants of funds previously contributed to the sponsoring organization for a donor’s donor-advised fund account, and the sponsoring organization does not list or reference by name one or more recipient charitable organizations for solicitation purposes on its platform for persons who do not have advisory privileges with respect to the granting of funds in a donor-advised fund of the sponsoring organization.

(D) A person or entity that meets the definition of both a commercial fundraiser for charitable purposes and a charitable fundraising platform shall be only a commercial fundraiser for charitable purposes when the person or entity for compensation performs any of the following acts of solicitation:

(i) Direct mail solicitation, excluding electronic mail or messages.

(ii) Estate gift or estate planning solicitation.

(iii) In-person solicitation through a fundraising event, door-to-door or other public spaces, or a vending machine or similar equipment that does not use a person to perform the solicitation.

(iv) Noncash solicitation.

(v) Nonincidental acts of solicitation that are not internet based, including solicitation through print, radio, or television.

(vi) Solicitation involving receiving something of value, or a chance to win something of value, in connection with a donation.

(vii) Telephone solicitation.

(E) A person or entity that meets the definition of both a commercial coventurer and a charitable fundraising platform solely under subparagraph (D) of paragraph (1) shall be only a commercial coventurer when the acts of solicitation through an internet website, service, or other platform to persons in this state are for six or fewer recipient charitable organizations per calendar year, and the commercial coventurer complies with subdivision (b) of Section 12599.2.

(3) “Good standing” means that a platform charity, recipient charitable organization, or other charitable organization’s tax-exempt standing has not been revoked by the Franchise Tax Board, or the charity or organization is not prohibited from soliciting or operating in the state by the Attorney General on the basis of a cease an and desist order, ~~delinquency pursuant to the procedure contained in Section 12599.11,~~ delinquency, suspension, or revocation by the Attorney ~~General’s office.~~ General pursuant to the procedures in Section 12599.12.

(4) “Peer-to-peer charitable fundraising” means a solicitation campaign created by a person to support a recipient charitable organization, through or with other assistance provided by a charitable fundraising platform or platform charity.

(5) “Platform charity” means a trustee as defined in Section 12582 or a charitable corporation as defined in Section 12582.1 that facilitates acts of solicitation on a charitable fundraising platform that includes either of the following and any similar activity:

(A) Solicits donations through a charitable fundraising platform for itself from donors who use the charitable fundraising platform with the implied or express representation that the platform charity may grant donations to recipient charitable organizations.

(B) Grants funds to recipient charitable organizations based on purchases made or other activity performed by persons who use a charitable fundraising platform.

(6) “Platform charity” does not include a sponsoring organization of donor-advised funds, as defined in subdivision (d) of Section 4966 of the Internal Revenue Code, that solicits donors to open donor-advised fund accounts or similar accounts, receives recommendations from donors on charitable organizations that may receive grants of funds previously contributed to the sponsoring organization for a donor’s donor-advised fund account, and the sponsoring organization does not list or reference by name one or more recipient charitable organizations for solicitation purposes on its platform for persons who do not have advisory privileges with respect to the granting of funds in a donor-advised fund of the sponsoring organization.

(7) “Recipient charitable organization” means a trustee as defined in Section 12582 or a charitable corporation as defined in Section 12582.1, that is listed or referenced by name on a charitable fundraising platform or by a platform charity for solicitation purposes.

(b) (1) A charitable fundraising platform is a trustee for charitable purposes subject to the Attorney General’s supervision. A charitable fundraising platform shall, before soliciting, permitting, or otherwise enabling solicitations, register with the Attorney General’s Registry of Charities and Fundraisers, under oath, on a form provided by the Attorney General. Persons or entities that meet the definition of a charitable fundraising platform and platform charity shall register as a charitable fundraising platform.

(2) Registration shall be renewed each year. The Attorney General shall impose a registration and renewal fee that shall be deposited and used in accordance with Section 12587.1.

(3) A platform charity is a trustee for charitable purposes subject to the Attorney General’s supervision. A platform charity shall register as a trustee in accordance with Section 12585 if not already registered. When a charitable fundraising platform partners with a platform charity, the platform charity shall promptly notify the Attorney General’s Registry of Charities and Fundraisers of the partnership, unless previously specified through the registration of the platform charity or charitable fundraising platform.

(c) A charitable fundraising platform or platform charity shall file annual reports, under oath, with the Attorney General’s Registry of Charities and Fundraisers on a form provided by the Attorney General. The reports shall:

(1) Enable the Attorney General to ascertain whether charitable funds have been properly solicited, received, held, controlled, or distributed in compliance with this article, including, but not limited to, providing information on the number of donations made, the amounts raised, the length of time for distributing donations or grants of recommended donations, the fees charged by or through a charitable fundraising platform or platform charity, and information on recipient charitable organizations or other charitable organizations that were sent or were not sent donations or grants of recommended donations.

(2) Not require the disclosure of personally identifiable information of donors or other persons using a charitable fundraising platform.

(d) (1) A platform charity shall have good standing in order to facilitate acts of solicitation on a charitable fundraising platform.

(2) ~~(A)~~A charitable fundraising platform or platform charity shall only solicit, permit, or otherwise enable solicitations, or receive, control, or distribute funds from donations for recipient charitable organizations or other charitable organizations in good standing.

~~(B)Subparagraph (A) shall not apply to charitable organizations that are not subject to the registration requirements of this article.~~

(e) A charitable fundraising platform or platform charity that performs, permits, or otherwise enables acts of solicitation described by subparagraph (A), (B), or (C), of paragraph (1) of subdivision (a) shall, before a person can complete a donation or select or change a recipient charitable organization, provide conspicuous disclosures that prevent a likelihood of deception, confusion, or misunderstanding, including, but not limited to, the following:

(1) A statement that donations are made to the charitable fundraising platform, the platform charity, the recipient charitable organization, or the person engaging in peer-to-peer charitable fundraising, whichever is applicable.

(2) A statement that a recipient charitable organization may not receive donations or grants or recommended donations, with an explanation identifying the most pertinent reasons why a recipient charitable organization may not receive funds, and an explanation of what alternative disposition will occur for the funds, which may include, but is not limited to, a refund to the donor, redirection to an alternate recipient charitable organization of the donor’s choice, or a redirection to an alternate recipient charitable organization of the charitable fundraising platform or platform charity’s choice. This disclosure is not required if there are no circumstances under which a recipient charitable organization may not receive the funds. The explanation may be provided through a conspicuous hyperlink, so long as the disclosure is conspicuous when the hyperlink is selected.

(3) The maximum length of time it takes to send the donation or a grant of the recommended donation to a recipient charitable organization with an explanation as to the length of time, unless the donation is sent contemporaneously to a recipient charitable organization after the donation is made. The explanation as to the maximum length of time may be provided through a conspicuous hyperlink, so long as the disclosure is conspicuous when the hyperlink is selected.

(4) The fees or other amounts, if any, deducted from or added to the donation or a grant of the recommended donation that are charged or retained by the charitable fundraising platform, platform charity, or any other partnering vendor, other than digital payment processing fees. This disclosure is not required for acts of solicitation described in subparagraph (C) of paragraph (1) of subdivision (a) when no fees or amounts are deducted or added.

(5) A statement as to the tax deductibility of the donation. This disclosure is not required for acts of solicitation described by subparagraph (C) of paragraph (1) of subdivision (a).

(f) (1) A charitable fundraising platform or platform charity that solicits, permits, or otherwise enables solicitations shall obtain the written consent of a recipient charitable organization before using its name in a solicitation. Written consent shall be provided directly to the charitable fundraising platform or platform charity, or may be provided to a charitable fundraising platform or platform charity and apply to any partnering charitable fundraising platforms expressly identified in an agreement providing consent, by one authorized officer, director, trustee, or other duly authorized representative of the recipient charitable organization.

(2) Written consent pursuant to paragraph (1) shall not be required for acts of solicitation described in subparagraphs (A), (B), or (C), of paragraph (1) of subdivision (a) if, in addition to all provisions of this section and rules or regulations established under Section 12599.10, all of the following are met:

(A) The charitable fundraising platform or platform charity shall only reference the recipient charitable organization’s name, address, telephone number, internet website, including through a hyperlink, employer identification number, corporation or organization number, or registration number with the Attorney General’s Registry of Charities and Fundraisers, classification in the National Taxonomy of Exempt Entities system, publicly available information from the recipient charitable organization’s tax or information returns filed with the Internal Revenue Service, publicly available information from the recipient charitable organization’s reports filed with the Attorney General’s Registry of Charities and Fundraisers, or other information set forth in rules or regulations established under Section 12599.10, if any.

(B) The charitable fundraising platform or platform charity shall conspicuously disclose before persons can complete a donation, or select or change a recipient charitable organization, that the recipient charitable organization has not provided consent or permission for the solicitation, and has not reviewed or approved the content generated by persons engaging in peer-to-peer charitable fundraising, when applicable.

(C) The charitable fundraising platform or platform charity shall remove any recipient charitable organization from its list or any solicitation regarding the recipient charitable organization upon written request by the recipient charitable organization, and verification that the request is legitimate. Requests shall be promptly verified and it shall take no longer than three business days for removal to occur after verification is completed.

(D) The charitable fundraising platform or platform charity shall not require that a recipient charitable organization consent to any solicitations as a condition for accepting a donation or grant of a recommended donation.

(g) After donors contribute donations based on solicitations described by subparagraph (A) or (B) of paragraph (1) of subdivision (a), the charitable fundraising platform or platform charity shall promptly provide a tax donation receipt in accordance with Sections 17510.3 and 17510.4 of the Business and Professions Code.

(h) (1) The charitable fundraising platform or platform charity shall not divert or otherwise misuse the donations received through solicitation on the charitable fundraising platform, and shall hold them in a separate account or accounts from other funds belonging to the charitable fundraising platform or platform charity.

(2) The charitable fundraising platform or platform charity shall promptly ensure donations and grants of recommended donations are disposed of in one of the following ways, and in accordance with any rules and regulations established pursuant to Section 12599.10:

(A) They are promptly sent to recipient charitable organizations with an accounting of any fees imposed for processing the funds.

(B) They are promptly sent to an alternate recipient charitable organization as disclosed pursuant to paragraph (2) of subdivision (e).

(C) For acts of solicitation described in subparagraph (A), (B), or (E) of paragraph (1) of subdivision (a), donations and grants of recommended donations that are ten dollars ($10) or less may be refunded as disclosed pursuant to paragraph (2) of subdivision (e).

(i) If a charitable fundraising platform or platform charity contracts with vendors to solicit, receive, control, process, distribute, and otherwise account for donations on the charitable fundraising platform, the contracts shall be available for inspection by the Attorney General.

SEC. 2.

Section 12599.10 of the Government Code is amended to read:

12599.10.

(a) The Attorney General shall establish rules and regulations necessary for the administration of Section 12599.9, which shall include, but are not limited to, provisions that specify all of the following:

(1) The additional acts of solicitation that meet the definition of a charitable fundraising platform or platform charity, as needed, in order to address changes in technology and charitable fundraising through platforms.

(2) The content of the form and other information to be provided by a charitable fundraising platform for registration and in annual reports filed with the Attorney General’s Registry of Charities and Fundraisers, including all of the following:

(A) The manner and timing of the filing of registration and reports.

(B) The handling of confidential, trade secret, or personal information provided.

(C) The circumstances under which partnering charitable fundraising platforms or platform charities may submit an annual report on behalf of other charitable fundraising platforms, taking into consideration the benefits and expenses of submitting individual reports for charitable fundraising platforms as compared to consolidated reports for charitable fundraising platforms that partner with platform charities.

(D) The payment of fees to cover the reasonable costs to administer and enforce Section 12599.9.

(3) The requirements for any written agreement between a recipient charitable organization and a charitable fundraising platform or a platform charity that provides consent for or otherwise applies to solicitations for donations, including permitting those agreements to be entered into electronically.

(4) The requirements for holding donations or distributing donations and grants of recommended donations, including all of the following:

(A) (i) The maximum length of times it takes to send the donated funds, taking into consideration the acts of solicitation described in paragraph (1) of subdivision (a), the number of donations made through a charitable fundraising platform or platform charity, whether donations are made to the charitable fundraising platform, platform charity, recipient charitable organizations, other charitable organizations, or persons engaging in peer-to-peer charitable fundraising, whether the recipient charitable organization has provided consent for a solicitation, whether further verification information is requested to prevent fraud, and whether donations are sent to alternate recipient charitable organizations.

(ii) For charitable fundraising platforms as defined in subparagraph (C) or (D) of paragraph (1) of subdivision (a) of Section 12599.9, the length of time to send ~~donations or grants of recommended donations~~ donated funds to the recipient charitable organization shall be no less than on a quarterly basis and may be subject to any minimum threshold amounts, not to exceed ten dollars ($10), as disclosed pursuant to paragraphs (2) and (3) of subdivision (e) of Section 12599.9. ~~Regardless of the minimum amount, donations or grants of recommended donations~~ Donated funds not meeting a minimum threshold amount shall be sent to the recipient charitable organization ~~shall be sent~~ after four consecutive quarters, unless the recipient charitable organization is not eligible to receive the funds, as disclosed pursuant to paragraphs (2) and (3) of subdivision (e) of Section 12599.9.

(iii) For charitable fundraising platforms as defined in subparagraph (A) or (B) of paragraph (1) of subdivision (a) of Section 12599.9, the length of time to send donated funds to the recipient charitable organization shall be no less than on a quarterly basis and may be subject to any minimum threshold amount not to exceed ten dollars ($10), as disclosed pursuant to paragraphs (2) and (3) of subdivision (e) of Section 12599.9. Donated funds not meeting a minimum threshold amount shall be sent to the recipient charitable organization within 12 months after a donation is made, unless the recipient charitable organization is not eligible to receive the funds, as disclosed pursuant to paragraphs (2) and (3) of subdivision (e) of Section 12599.9.

(B) The circumstances under which donors or persons may be contacted to provide alternate recipient charitable organizations or notified when the donated funds are sent.

(b) This section shall become operative on January 1, 2022.

SEC. 3.Section 12599.11 is added to the Government Code, to read:
12599.11.
(a)If the Attorney General’s Registry of Charities and Fundraisers does not process a filing submitted by a person or entity who is not registered or whose registration is expired or delinquent within 10 days from the date of filing, the registration shall be deemed in good standing. If the filing is found deficient, a written notice shall be sent to the registrant indicating the reasons for deficiency. If a filing responsive to the notice is not submitted within 30 days from the date of the notice, the registration shall revert to not being in good standing. If a filing responsive to the notice is submitted within 30 days from the date of the notice, the registration shall remain in good standing. If the timely filing remains deficient, a second written notice shall be sent to the registrant indicating the reasons for deficiency. If a filing responsive to the second notice is not submitted within 30 days from the date of the second notice, or the timely filing remains deficient, a third written notice shall be sent to the registrant indicating that the registration is not in good standing. The process set forth in this subdivision is not applicable to a person or entity that is not in good standing because it is suspended, revoked, or subject to a cease and desist order.
(b)(1)Before a person or entity’s registration becomes delinquent, written notice shall be sent to the registrant indicating the reasons for deficiency. If a filing responsive to the notice is not submitted within 60 days from the date of the notice, or a timely filing remains deficient, a second written notice shall be sent to the registrant indicating the reasons for deficiency. If a filing responsive to the second notice is not submitted within 60 days from the date of the second notice, or a timely filing remains deficient, a third written notice shall be sent to the registrant indicating that the registration has become delinquent.
(2)If a filing that is responsive to a notice is submitted within the timeframe outlined, the registry shall process the filing within 30 days from the date of filing. If the Attorney General’s Registry of Charities and Fundraisers fails to issue any notice, the individual or entity may continue to solicit and operate and there is no change in status on the Registry of Charities and Fundraisers.
~~(3)The grounds for which a registration may become delinquent include, but are not limited to, the following:~~
~~(A)Failure to timely file completed periodic written reports as required by Section 12586.~~
~~(B)Failure to timely file completed annual financial reports as required by subdivision (c) of Section 12599.~~
~~(C)Failure to timely file completed annual financial reports as required by subdivision (c) of Section 12599.2.~~
~~(D)Failure to timely file completed annual fundraiser reports as required by subdivision (c) of Section 12599.9.~~
~~(E)Failure to timely pay late fees as required by Section 12586.1.~~
(c)(1)The Attorney General shall modernize the online Registry of Charities and Fundraisers to support comprehensive electronic administration. On or before ____, the registry system shall be configured to automatically approve compliant filings and provide immediate electronic confirmation of receipt for submissions, including forms, supporting documents, and payments.
~~(2)To facilitate this transition, the Attorney General shall adopt regulations mandating the electronic submission of all required filings and payments by ____.~~
(3)Until the modernized registry is fully operational with automatic approval capabilities and mandated electronic submissions and payments, the Department of Justice shall ensure that no entity is penalized for administrative processing delays.
(d)Before a person or entity’s registration becomes suspended or revoked, or the person or entity is subject to a cease and desist order, an administrative action shall be taken in accordance with Article 3 (commencing with Section 336) of Chapter 4 of Division 1 of Title 11 of the California Code of Regulations.

SEC. 3.

Section 12599.11 is added to the Government Code, to read:

12599.11.
A person or entity subject to this article that is required to file registration, reporting, or other submissions with the Attorney General’s Registry of Charities and Fundraisers, including the submission of supporting documents and payment of fees, shall do so through the Attorney General’s online filing service in accordance with rules and regulations of the Attorney General. By January 1, 2028, the Attorney General’s online filing service and related systems shall also support comprehensive electronic administration, including prompt confirmation and automated processing of filings required by Sections 12585 and 12586.

SEC. 4.

Section 12599.12 is added to the Government Code, to read:

12599.12.
(a) The grounds for which a registration may become delinquent include, but are not limited to:
(1) Failure to timely file completed periodic written reports as required by Section 12586.
(2) Failure to timely file completed annual fundraiser reports as required by subdivision (c) of Section 12599.9.
(3) Failure to timely pay late fees as required by Section 12586.1.
(b) Before a person or entity’s registration becomes delinquent, written notice shall be sent to the registrant indicating the reason or reasons for deficiency. If a filing responsive to the notice is not submitted within 60 days from the date of the notice, or a timely filing remains deficient, a second written notice shall be sent to the registrant indicating the reason or reasons for deficiency. If a filing responsive to the second notice is not submitted within 60 days from the date of the second notice, or a timely filing remains deficient, a third written notice shall be sent to the registrant indicating that the registration has become delinquent.
(c) If the Attorney General’s Registry of Charities and Fundraisers does not process a filing submitted by a person or entity who is not registered or whose registration is expired or delinquent within 10 days from the date of filing, the registration shall be deemed in good standing. If the filing is found deficient, a written notice shall be sent to the registrant indicating the reasons for deficiency. If a filing responsive to the notice is not submitted within 30 days from the date of the notice, the registration shall revert to not being in good standing. If a filing responsive to the notice is submitted within 30 days from the date of the notice, the registration shall remain in good standing. If the timely filing remains deficient, a second written notice shall be sent to the registrant indicating the reasons for deficiency. If a filing responsive to the second notice is not submitted within 30 days from the date of the second notice, or the timely filing remains deficient, a third written notice shall be sent to the registrant indicating that the registration is not in good standing. The process set forth in this subdivision is not applicable to a person or entity that is not in good standing because the person or entity’s registration is suspended, revoked, or the person or entity is subject to a cease and desist order.
(d) Before a person or entity’s registration becomes suspended or revoked, or the person or entity is subject to a cease and desist order, an administrative action shall be taken in accordance with Article 3 (commencing with Section 336) of Chapter 4 of Division 1 of Title 11 of the California Code of Regulations.