SB1252

House of Representatives

charitable organizations; filings; exemptions

Sponsors: Smith

DPA	Committee on Retirement & Government Operations
DPA	Caucus and COW
DPA	As Passed the House
X	As Transmitted to the Governor

SB 1252 requires a charitable organization to file a registration statement with the Secretary of State (SOS) before soliciting its first contribution and repeals the exemptions to registration requirements.

History

Statute defines charitable organization as a person determined by the Internal Revenue Service to be a tax-exempt organization pursuant to §501(c)(3) or a person that holds himself to be established for a charitable purpose or who in any manner employs a charitable appeal as the basis of a solicitation. Current law requires a charitable organization to file a written statement with the SOS containing specific statutory requirements no later than three days after the organization solicits its first contribution.

Current law exempts political parties, candidates for federal, state or local office and campaign committees that are required to file financial information with federal, state or local election agencies as well as many other organizations from the registration requirements. The following groups are only a few examples of these exemptions:

1. Nonprofit hospitals, blood banks and their foundations.

2. Organizations engaged in charitable organizations in foreign countries.

3. Licensed public radio and television stations that are raising monies for their own operations.

4. Solicitations solely from private foundations.

Provisions

· Requires a charitable organization to file a registration statement with the SOS before soliciting its first contribution, rather than no later than three days after it solicits its first contribution.

· Requires annual filing each September, rather than each January.

· Specifies that the registration statement shall be filed with the SOS in a format prescribed and adopted by the SOS by rule.

· Removes the statutory requirements for the content of the written statement to be submitted to the SOS and for the charitable organization to report in writing to the SOS any changes in information previously filed within sixty days of the change.

· Requires the SOS to adopt rules related to filing and preserving of registration information and removes language allowing information to be destroyed after five years from the date of filing.

· Allows a tax exempt organization to file a copy of the organization’s annual information return with the Secretary of State in lieu of the statutory financial disclosure requirements or to notify the Secretary of State where the annual information returns are available on the Internet.

· Allows the SOS to deliver a notice of failure to file a registration by certified mail to any charitable organization that is required to do so and fails to comply with registration requirements.

· Requires the charitable organization to comply with registration requirements within thirty days of receiving notice from the SOS and to pay a late registration penalty of twenty-five dollars.

· Specifies that a charitable organization that does not comply with registration requirements within thirty days of being notified by the Secretary of State of a failure to do so is guilty of a Class 1 misdemeanor.

· Repeals the section of law providing exemptions to registration requirements.

· Exempts this state or any county or municipality of this state or their agencies political parties, candidates for federal, state or local office and campaign committees that are required to file financial information with federal, state or local election agencies from registration requirements.

· Exempts a charitable organization that is a religious institution and any other entity that is an integral part of a religious institution from financial disclosure requirements if they meet the following statutory requirements:

1. The institution is a tax- exempt institution.

2. No part of the entity’s net income is a direct benefit to any individual.

3. The institution solicits monies only from its membership, congregation or previous donors and the institution’s conduct and fees charged for services are primarily paid through government grants or contracts.

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· 45th Legislature