Amendment ASA1-AB40

AB40-ASA1,1162,19 (3) (a) (intro.) Except as provided in pars. (am), (b), and (bm), and in rules promulgated under sub. (8), a charitable organization that received contributions in excess of $5,000 during its most recently completed fiscal year shall file with the department an annual financial report for the charitable organization's most recently completed fiscal year. The department shall prescribe the form of the report and shall prescribe standards for its completion. The annual financial report shall be filed within 6 12 months after the end of that fiscal year and shall include all of the following:

AB40-ASA1,1162,20 2. A statement of support, revenue, expenses, and changes in fund balance.

AB40-ASA1,1162,23 (5) (a) 1. A person that is exempt from filing a federal annual information return under section 6033 (a) (2) (3) (A) (i) and (iii) and (C) (i) of the internal revenue code Internal Revenue Code.

AB40-ASA1,1163,3 2. A candidate for national, state, or local office or a political party or other committee or group required to file financial information with the federal elections commission or a filing officer under s. 11.02.

AB40-ASA1,1163,9 3. Except as provided in par. (b) and in rules promulgated under sub. (8), a charitable organization which that does not intend to raise or receive contributions in excess of $5,000 during a fiscal year, if all of its functions, including solicitation, are performed by persons who are unpaid for their services and if no part of its assets or income inures to the benefit of, or is paid to, any officer or member of the charitable organization.

AB40-ASA1,1163,11 3m. A fraternal, civic, benevolent, patriotic, or social organization that solicits contributions solely from its membership.

AB40-ASA1,1163,16 5. A nonprofit, postsecondary educational institution accredited by a regional accrediting agency or association approved under 20 USC 1099b, or an educational institution and its authorized charitable foundations which that solicit contributions only from its students and their families, alumni, faculty, trustees, corporations, foundations, and patients.

AB40-ASA1,1163,21 (7) (a) Before a fund-raising counsel performs any material services for a charitable organization that is required to be registered under sub. (1), the charitable organization shall contract in writing with the fund-raising counsel, except as provided in par. (c). Requirements for the contract are specified in s. 440.43 202.13 (3).

AB40-ASA1,1163,25 (b) Before a professional fund-raiser performs any material services for a charitable organization that is required to be registered under sub. (1), the charitable organization shall contract in writing with the professional fund-raiser. Requirements for the contract are specified in s. 440.44 202.14 (4).

AB40-ASA1,1164,2 (c) Paragraph (a) does not apply if the fund-raising counsel is exempt under s. 440.43 202.13 (6) from contracting in writing with the charitable organization.

AB40-ASA1,2210 Section 2210. 440.43 of the statutes is renumbered 202.13, and 202.13 (1) (a), (b) 3. and (c), (3), (5) and (6), as renumbered, are amended to read:

AB40-ASA1,1164,8 202.13 (1) (a) Except as provided in sub. (6), no fund-raising counsel may at any time have custody of contributions from a solicitation for a charitable organization that is required to be registered under s. 440.42 202.12 (1) unless the fund-raising counsel is registered with the department under this subsection.

AB40-ASA1,1164,12 (b) 3. Pays to the department a $50 the registration fee determined by the department under s. 202.08, except that no registration fee is required under this subdivision for an individual who is eligible for the veterans fee waiver program under s. 45.44.

AB40-ASA1,1164,20 (c) The department shall issue a certificate of registration to each fund-raising counsel that is registered under this subsection. Renewal applications shall be submitted to the department, on in a form provided and manner prescribed by the department, on or before the date specified in s. 440.08 (2) (a) by September 1 of each even-numbered year and shall include the renewal fee determined by the department under s. 440.03 (9) (a) 202.08 and evidence satisfactory to the department that the fund-raising counsel maintains a bond that is approved under sub. (2).

AB40-ASA1,1165,3 (3) Contract. Except as provided in sub. (6), before a fund-raising counsel performs any material services for a charitable organization that is required to be registered under s. 440.42 202.12 (1), the charitable organization and the fund-raising counsel shall contract in writing, and the fund-raising counsel shall file the contract with the department. The contract shall contain information that will enable the department to identify the services that the fund-raising counsel is to provide, including whether the fund-raising counsel will at any time have custody of contributions.

AB40-ASA1,1165,9 (5) Department disclosure. The department shall not disclose information under sub. (4) (c) 1. except to the extent necessary for investigative or law enforcement purposes and except that the department may, if requested under s. 49.22 (2m), disclose information regarding the name, address, or employer of or financial information related to an individual to the department of children and families or a county child support agency under s. 59.53 (5).

AB40-ASA1,1165,16 (6) Exceptions. This section does not apply to a fund-raising counsel who does not intend to earn more than $1,000 per year as a fund-raising counsel, except that a fund-raising counsel who does not intend to earn more than $1,000 but does earn more than $1,000 in a year shall, beginning 30 days after actually earning more than $1,000 in a year, comply with sub. (3) and, if the fund-raising counsel at any time has custody of contributions for a charitable organization that is required to be registered under s. 440.42 202.12 (1), register under sub. (1).

AB40-ASA1,2211 Section 2211. 440.44 of the statutes is renumbered 202.14, and 202.14 (1) (a), (b) 3., (c) and (d), (3) (intro.), (4) (a), (7), (8), (9) (a) 2. and (10), as renumbered, are amended to read:

AB40-ASA1,1165,22 202.14 (1) (a) No professional fund-raiser may solicit in this state for a charitable organization that is required to be registered under s. 440.42 202.12 (1) unless the professional fund-raiser is registered under this subsection.

AB40-ASA1,1166,2 (b) 3. Pays to the department a $50 the registration fee determined by the department under s. 202.08, except that no registration fee is required under this subdivision for an individual who is eligible for the veterans fee waiver program under s. 45.44.

AB40-ASA1,1166,10 (c) The department shall issue a certificate of registration to each professional fund-raiser that is registered under this subsection. Renewal applications shall be submitted to the department, on in a form provided and manner prescribed by the department, on or before the date specified in s. 440.08 (2) (a) by September 1 of each even-numbered year and shall include the renewal fee determined by the department under s. 440.03 (9) (a) 202.08 and evidence satisfactory to the department that the professional fund-raiser maintains a bond that is approved under sub. (2).

AB40-ASA1,1166,14 (d) Within 20 days after receiving Upon the department's review of an application for registration or for renewal of a registration under this subsection, the department shall notify the professional fund-raiser of any deficiencies in the application, bond, or fee payment.

AB40-ASA1,1166,22 (3) (intro.) Before performing services under a contract with a charitable organization that is required to be registered under s. 440.42 202.12 (1), a professional fund-raiser shall file with the department a completed solicitation notice in the form and manner prescribed by the department. The charitable organization on whose behalf the professional fund-raiser is acting shall file with the department a written confirmation that the solicitation notice and any accompanying material are true and complete to the best of its knowledge. The solicitation notice shall include all of the following:

AB40-ASA1,1167,5 (4) (a) A professional fund-raiser and a charitable organization that is required to be registered under s. 440.42 202.12 (1) shall enter into a written contract that clearly states the respective obligations of the professional fund-raiser and the charitable organization and states the amount of gross revenue, raised under the contract, that the charitable organization will receive. The amount of the gross revenue that the charitable organization will receive shall be expressed as a fixed percentage of the gross revenue or as an estimated percentage of the gross revenue, as provided in pars. (b) to (d).

AB40-ASA1,1167,13 (7) Financial report. Within 90 days after completing services under a contract described in sub. (4), and on the anniversary of the signing of a contract described under sub. (4) lasting more than one year, the professional fund-raiser shall, if the charitable organization is required to be registered under s. 440.42 202.12 (1), account in writing to the charitable organization for all contributions received and all expenses incurred under the contract. The charitable organization shall retain the accounting for at least 3 years and make it available to the department upon request.

AB40-ASA1,1167,19 (8) Depositing contributions. A professional fund-raiser shall deposit, in its entirety, a contribution of money received by the professional fund-raiser, on behalf of a charitable organization required to be registered under s. 440.42 202.12 (1), in an account at a financial institution within 5 days after its receipt. The account shall be in the name of the charitable organization. The charitable organization shall have sole control of all withdrawals from the account.

AB40-ASA1,1167,21 (9) (a) 2. The name and residence address of each employee, agent, or other person involved in the solicitation.

AB40-ASA1,1168,2 (10) Nondisclosure. The department may not disclose information under sub. (9) (a) 1. to any person except to the extent necessary for investigative or law enforcement purposes and except that the department may, if requested under s. 49.22 (2m), disclose information regarding the name, address, or employer of or financial information related to an individual to the department of children and families or a county child support agency under s. 59.53 (5).

AB40-ASA1,2212 Section 2212. 440.45 of the statutes is renumbered 202.15 and amended to read:

AB40-ASA1,1168,15 202.15 Charitable sales promotions. If a commercial coventurer conducts a charitable sales promotion on behalf of a charitable organization that is required to be registered under s. 440.42 202.12 (1), the commercial coventurer shall disclose in each advertisement for the charitable sales promotion the dollar amount, or percentage of price, per unit of goods or services purchased or used that will benefit the charitable organization or charitable purpose. If the actual dollar amount or percentage cannot reasonably be determined on the date of the advertisement, the commercial coventurer shall disclose an estimated dollar amount or percentage. The estimate shall be based upon all of the relevant facts known to the commercial coventurer and to the charitable organization regarding the charitable sales promotion.

AB40-ASA1,2213 Section 2213. 440.455 of the statutes is renumbered 202.155, and 202.155 (1) (intro.) and (b), (2) and (3) (intro.), as renumbered, are amended to read:

AB40-ASA1,1168,23 202.155 (1) (intro.) Except as provided in sub. (4), if a professional fund-raiser or unpaid solicitor solicits a contribution for a charitable organization that is required to be registered under s. 440.42 202.12 (1), the professional fund-raiser or unpaid solicitor shall, at the time of the solicitation or with a written confirmation of a solicitation, prior to accepting a contribution, make the following disclosures to the person from whom the contribution is solicited:

AB40-ASA1,1169,3 (b) That a financial statement of the charitable organization disclosing assets, liabilities, fund balances, revenue, and expenses for the preceding fiscal year will be provided to the person upon request.

AB40-ASA1,1169,8 (2) The financial statement under sub. (1) (b) shall, at a minimum, divide expenses into categories of management and general, program services and fund-raising. If the charitable organization is required to file an annual financial report under s. 440.42 202.12 (3) (a), the financial statement under sub. (1) (b) shall be consistent with that annual financial report.

AB40-ASA1,1169,12 (3) (intro.) In addition to the requirements under subs. (1) and (2), except as provided in sub. (4), if a professional fund-raiser solicits on behalf of a charitable organization that is required to be registered under s. 440.42 202.12 (1), all of the following apply:

AB40-ASA1,2214 Section 2214. 440.46 of the statutes is renumbered 202.16, and 202.16 (1) (intro.), (b), (c), (e) and (g), as renumbered, are amended to read:

AB40-ASA1,1169,16 202.16 (1) (intro.) No person may, in the planning, management, or execution of a solicitation or charitable sales promotion, do any of the following:

AB40-ASA1,1169,20 (b) Imply that a contribution is for or on behalf of a charitable organization or use any emblem, device, or printed matter belonging to or associated with a charitable organization without first being authorized in writing to do so by the charitable organization.

AB40-ASA1,1169,23 (c) Use a name, symbol, or statement so closely related or similar to that used by another charitable organization that the use of the name, symbol , or statement would tend to confuse or mislead a person being solicited.

AB40-ASA1,1170,2 (e) Lead anyone in any manner to believe that another person sponsors, endorses, or approves a solicitation or charitable sales promotion if the other person has not sponsored, endorsed, or approved the solicitation or charitable sales promotion in writing.

AB40-ASA1,1170,5 (g) Represent directly or by implication that a charitable organization will receive a fixed or estimated percentage of the gross revenue raised greater than that established under s. 440.44 202.14 (4).

AB40-ASA1,2215 Section 2215. 440.47 of the statutes is renumbered 202.17, and 202.17 (1), (2), (3) and (5), as renumbered, are amended to read:

AB40-ASA1,1170,13 202.17 (1) Public records. Except as provided in ss. 440.43 202.13 (5) and 440.44 202.14 (10), registration statements, applications, reports, contracts, and agreements of charitable organizations, fund-raising counsel, professional fund-raisers, and unpaid solicitors and all other documents and information retained by or filed with the department under this subchapter are available for inspection or copying under s. 19.35 (1).

AB40-ASA1,1170,21 (2) Fiscal records; inspection; retention. All charitable organizations, fund-raising counsels, professional fund-raisers, and unpaid solicitors shall keep true records concerning activities regulated by this subchapter in a form that will enable them accurately to provide the information required by this subchapter. Upon demand, those records shall be made available to the department for inspection and copying. The records shall be retained by the charitable organization, fund-raising counsel, professional fund-raiser, or unpaid solicitor for at least 3 years after the end of the fiscal year to which they relate.

AB40-ASA1,1170,25 (3) Exchange of information. The department may exchange with the appropriate authority of any other state or of the United States information with respect to charitable organizations, fund-raising counsel, professional fund-raisers, unpaid solicitors, and commercial coventurers.

AB40-ASA1,1171,17 (5) Substitute service upon department of financial institutions. A charitable organization, fund-raising counsel, professional fund-raiser , or commercial coventurer that has its principal place of business outside of this state or is organized under laws other than the laws of this state and that is subject to this subchapter shall be considered to have irrevocably appointed the department of financial institutions as its agent for the service of process or notice directed to the charitable organization, fund-raising counsel, professional fund-raiser , or commercial coventurer or to any of its partners, principal officers , or directors in an action or proceeding brought under this subchapter. Service of process or notice upon the department of financial institutions shall be made by personally delivering to and leaving with the department of financial institutions a copy of the process or notice. That service shall be sufficient service if the department of financial institutions immediately sends notice of the service and a copy of the process or notice to the charitable organization, fund-raising counsel, professional fund-raiser, commercial coventurer, or other person to whom it is directed by registered mail, with return receipt requested, at the last address known to the department of financial institutions.

AB40-ASA1,2216 Section 2216. 440.475 of the statutes is repealed.

AB40-ASA1,2217 Section 2217. 440.48 of the statutes is renumbered 202.18, and 202.18 (1) (b), (c) 1. and 2. (intro.) and a., (d) and (e), as renumbered, are amended to read:

AB40-ASA1,1172,2 202.18 (1) (b) Upon finding that a person has violated this subchapter or the applicable rules promulgated under s. 202.095 or this subchapter, the court may make any necessary order or judgment, including but not limited to injunctions, restitution, and, notwithstanding s. 814.04, award of reasonable attorney fees and costs of investigation and litigation, and, except as provided in par. (c), may impose a forfeiture of not less than $100 nor more than $10,000 for each violation.

AB40-ASA1,1172,5 (c) 1. A person who violates s. 440.47 202.17 (4) (b) may be required to forfeit not more than $5,000, unless the person establishes reasonable cause for the violation.

AB40-ASA1,1172,8 2. (intro.) A person who, with intent to avoid, prevent, or interfere with a civil investigation under this subsection, does any of the following may be required to forfeit not more than $5,000:

AB40-ASA1,1172,12 a. Alters or by any other means falsifies, removes from any place, conceals, withholds, destroys, or mutilates any documentary material in the possession, custody, or control of a person subject to notice of the taking of testimony or examination of documents under s. 440.47 202.17 (4).

AB40-ASA1,1172,20 (d) A charitable organization, fund-raising counsel, professional fund-raiser, commercial coventurer, or any other person who violates the terms of an injunction or other order entered under this subsection may be required to forfeit, in addition to all other remedies, not less than $1,000 nor more than $10,000 for each violation. The department of justice may recover the forfeiture in a civil action. Each separate violation of an order entered under this subsection is a separate offense, except that each day of a violation through continuing failure to obey an order is a separate offense.

AB40-ASA1,1172,25 (e) No charitable organization may indemnify an officer, employee , or director for any costs, fees, restitution, or forfeitures assessed against that individual by the court under par. (b), (c), or (d) unless the court determines that the individual acted in good faith and reasonably believed the conduct was in or not opposed to the best interests of the charitable organization.

AB40-ASA1,2228e Section 2228e. 446.02 (3) (a) of the statutes is repealed.

AB40-ASA1,2228p Section 2228p. 446.02 (3) (b) of the statutes is repealed and recreated to read:

AB40-ASA1,1173,7 446.02 (3) (b) Parts I, II, III, and IV of the examination administered by the National Board of Chiropractic Examiners. An applicant successfully completes Part III of that examination if the applicant scores at least 438 on that part. An applicant successfully completes Part IV of that examination if the applicant scores at least 475 on that part.

AB40-ASA1,2230 Section 2230. 450.19 (5) of the statutes is repealed.

AB40-ASA1,2230m Section 2230m. 459.24 (5) (a) of the statutes is amended to read:

AB40-ASA1,1173,11 459.24 (5) (a) The A renewal fee determined by the department under s. 440.03 (9) (a) of $75.

AB40-ASA1,2232 Section 2232. Chapter 461 (title) of the statutes is renumbered subchapter III (title) of chapter 202 [precedes 202.21].

AB40-ASA1,2233 Section 2233. 461.01 of the statutes is renumbered 202.21, and 202.21 (intro.), (1) and (6) of the statutes, as renumbered, are amended to read:

AB40-ASA1,1173,16 202.21 Definitions. (intro.) In this chapter subchapter:

AB40-ASA1,1173,18 (1) "Applicant" means a professional employer organization or a professional employer group that applies for registration under s. 461.02 202.22.

AB40-ASA1,1173,20 (6) "Registrant" means a professional employer organization or a professional employer group that is registered under s. 461.02 202.22.

AB40-ASA1,2234 Section 2234. 461.02 (title) of the statutes is renumbered 202.22 (title).

AB40-ASA1,2235 Section 2235. 461.02 (1) of the statutes is renumbered 202.22 (1), and 202.22 (1) (b), as renumbered, is amended to read:

AB40-ASA1,1174,8 202.22 (1) (b) No person may designate as the person's title, or append to the person's name the words or letters, "professional employer organization," "P.E.O.," "professional employer group," "P.E.G.," "staff leasing company," "registered staff leasing company," "employee leasing company," or "administrative employer," or other similar titles or letters, or use these those titles, words, or letters to describe the person's business or represent that the person or the person's business is registered or licensed as a "professional employer organization," "P.E.O.," "professional employer group," "P.E.G.," "staff leasing company," "registered staff leasing company," "employee leasing company," or "administrative employer," unless the person is registered by the department under this chapter section.

AB40-ASA1,2236 Section 2236. 461.02 (2) of the statutes is renumbered 202.22 (2), and 202.22 (2) (intro.), (d) and (e), as renumbered, are amended to read:

AB40-ASA1,1174,15 202.22 (2) Application for registration. (intro.) Except as provided in sub. (7) (b), an applicant for registration under this section shall submit to the department an application for registration on in a form and manner prescribed by the department, together with the registration fee determined by the department under s. 440.03 (9) (a) 202.08 and all of the following:

AB40-ASA1,1174,18 (d) A statement of ownership, which shall include the name and business experience of every controlling person, as defined in s. 461.01 202.21 (3) (a), of the applicant.

AB40-ASA1,1174,21 (e) A statement of management, which shall include the name and business experience of every controlling person, as defined in s. 461.01 202.21 (3) (b), of the applicant.

AB40-ASA1,2237 Section 2237. 461.02 (3) of the statutes is repealed.

AB40-ASA1,2238 Section 2238. 461.02 (4) of the statutes is renumbered 202.22 (4), and 202.22 (4) (a), as renumbered, is amended to read:

AB40-ASA1,1175,9 202.22 (4) (a) Renewal applications A registrant shall be submitted submit a renewal application, together with the applicable renewal fee determined by the department under s. 440.03 (9) (a) 202.08, to the department on in a form provided and manner prescribed by the department on or before the applicable renewal date specified under s. 440.08 (2) (a) by July 31 of each year. Except as provided in pars. (b) and (c) and sub. (7) (b), the a registrant shall submit with each renewal application shall be accompanied by a financial statement, as that term is used specified in sub. (2) (f) 1., updated to reflect the current financial condition of the registrant.

AB40-ASA1,2239 Section 2239. 461.02 (5) (title) of the statutes is renumbered 202.22 (5) (title).

AB40-ASA1,2240 Section 2240. 461.02 (5) (a) of the statutes is renumbered 202.22 (5) (a) and amended to read:

AB40-ASA1,1176,2 202.22 (5) (a) Except as provided in sub. (7) (b), a professional employer organization or professional employer group that is domiciled outside this state, that is registered or licensed as a professional employer organization or professional employer group in another state, that does not maintain an office in this state or directly solicit clients that are located or domiciled in this state, and that has no more than 50 employees performing services for clients in this state on any given day may apply for small operations registration under this section by filing with submitting to the department a an application for small operations registration in a form and manner prescribed by the department and paying the initial credential registration fee determined by the department under s. 440.03 (9) (a) 202.08. An applicant that is seeking small operations registration shall, in addition to the information required under sub. (2) (a) to (e), provide the department with information and documentation showing that the applicant meets the qualifications specified in this paragraph for small operations registration.

AB40-ASA1,2241 Section 2241. 461.02 (5) (b) of the statutes is repealed.

AB40-ASA1,2242 Section 2242. 461.02 (5) (c) of the statutes is repealed.

AB40-ASA1,2243 Section 2243. 461.02 (5) (d) of the statutes is renumbered 202.22 (5) (d).

AB40-ASA1,2244 Section 2244. 461.02 (5) (e) of the statutes is renumbered 202.22 (5) (e) and amended to read:

AB40-ASA1,1176,10 202.22 (5) (e) A professional employer organization or professional employer group registered under this subsection is not required to comply with the financial capability requirement under s. 461.03 202.23.

AB40-ASA1,2245 Section 2245. 461.02 (6) of the statutes is renumbered 202.22 (6) and amended to read:

AB40-ASA1,1176,24 202.22 (6) Professional employer group registration. Except as provided in sub. (7) (b), 2 or more professional employer organizations that are part of a professional employer group may register under this section or renew a registration by providing the information required under sub. (2), (4), or (5) on a combined or consolidated basis, paying the initial credential registration or renewal fee determined by the department under s. 440.03 (9) (a) 202.08, and guaranteeing each other's obligations. If a professional employer group provides a combined or consolidated financial statement under sub. (2) (f) 1. that includes the financial condition of entities that are not part of the professional employer group, the controlling person controlling the professional employer group shall guarantee the obligations of the professional employer organizations in the professional employer group.

AB40-ASA1,2246 Section 2246. 461.02 (7) of the statutes is renumbered 202.22 (7), and 202.22 (7) (a), (b) and (c), as renumbered, are amended to read:

AB40-ASA1,1177,9 202.22 (7) (a) The department shall by rule provide for registration of a professional employer organization or professional employer group on acceptance by the department of a registration form, financial statement, or any other information or documentation required under sub. (2), (4), (5), or (6), s. 461.03 202.23, or rules promulgated under s. 461.06 202.095 or 202.26 in the form of an electronic record, as defined in s. 137.11 (7) and, if a signature is required, on acceptance of an electronic signature, as defined in s. 137.11 (8).

AB40-ASA1,1177,18 (b) The department may by rule provide for registration of a professional employer organization or professional employer group without compliance with sub. (2), (4), (5), or (6), s. 461.03 202.23, or rules promulgated under s. 461.06 202.095 or 202.26 on acceptance by the department of assurance, provided by a bonded, independent, and qualified assurance organization that has been approved by the department, that provides assurance satisfactory to the department that the professional employer organization or professional employer group is qualified to operate as a professional employer organization or a professional employer group in this state.

AB40-ASA1,1178,2 (c) This subsection does not limit the authority of the department to require a professional employer organization or professional employer group to register as provided in sub. (2), (4), (5), or (6), to maintain proof of financial capability as required under s. 461.03 202.23, or to comply with this chapter and the rules promulgated under s. 461.06 202.095 or 202.26; to investigate an applicant or registrant and deny registration or renewal registration under sub. (8), or to investigate an applicant, registrant. or controlling person and take disciplinary action under s. 461.05 202.06.