2015 Wisconsin Act 163

202.12 (1) (title) Annual registration Registration requirement.

163,54 Section 54. 202.12 (1) (b) (intro.) of the statutes is repealed and recreated to read:

202.12 (1) (b) (intro.) Applicants for a charitable organization registration shall apply to the department, in the form and manner prescribed by the department. Each application that is not a renewal application shall be accompanied by any information required by the department, including all of the following:

163,55 Section 55. 202.12 (1) (b) 1. and 2. of the statutes are repealed.

163,56 Section 56. 202.12 (1) (b) 2g. of the statutes is amended to read:

202.12 (1) (b) 2g. Submits to the department an annual A reviewed financial report statement for the most recently completed fiscal year of the charitable organization, if the charitable organization received contributions in excess of $5,000 $300,000, subject to adjustment under sub. (8), but not more than $100,000 $500,000, subject to adjustment under sub. (8), during its most recently completed fiscal year. The statement shall be prepared in accordance with generally accepted accounting principles and include a review of the financial statement by an independent certified public accountant.

163,57 Section 57. 202.12 (1) (b) 2r. of the statutes is amended to read:

202.12 (1) (b) 2r. Submits to the department an An audited financial statement for the most recently completed fiscal year of the charitable organization, if the charitable organization received contributions in excess of $100,000 $500,000, subject to adjustment under sub. (8), during its most recently completed fiscal year. The statement shall be prepared in accordance with generally accepted accounting principles and include the opinion of an independent certified public accountant on the financial statement.

163,58 Section 58. 202.12 (1) (b) 3. of the statutes is renumbered 202.12 (1) (b) 1m. and amended to read:

202.12 (1) (b) 1m. Pays to the department the The registration fee determined by the department under s. 202.08 202.041.

163,59 Section 59. 202.12 (1) (c) and (d) of the statutes are repealed.

163,60 Section 60. 202.12 (1) (e) of the statutes is created to read:

202.12 (1) (e) All charitable organization registrations expire on July 31 of each year.

163,61 Section 61. 202.12 (2) of the statutes is repealed.

163,62 Section 62. 202.12 (3) (title) of the statutes is amended to read:

202.12 (3) (title) Annual financial report; audit requirement.

163,63 Section 63. 202.12 (3) (a) (intro.) of the statutes is renumbered 202.12 (3) (a) and amended to read:

202.12 (3) (a) Except as provided in pars. (am), (b), and (bm), and in rules promulgated under sub. (8), a A charitable organization that received contributions in excess of $5,000 during its most recently completed fiscal year registered under sub. (1) 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 12 months after the end of that fiscal year and shall include all of the following:.

163,64 Section 64. 202.12 (3) (a) 1., 2., 3. and 4. of the statutes are repealed.

163,65 Section 65. 202.12 (3) (am) of the statutes is repealed.

163,66 Section 66. 202.12 (3) (b) of the statutes is amended to read:

202.12 (3) (b) Except as provided in rules promulgated under sub. (8) In addition to the annual report required under par. (a), if a charitable organization received contributions in excess of $400,000 $500,000, subject to adjustment under sub. (8), during its most recently completed fiscal year, the charitable organization shall file with the department, in lieu of a report under par. (a), an audited financial statement for the charitable organization's most recently completed fiscal year, prepared in accordance with generally accepted accounting principles, and the opinion of an independent certified public accountant on the financial statement. The audited financial statement shall be filed within 6 12 months after the end of that fiscal year.

163,67 Section 67. 202.12 (3) (bm) of the statutes is amended to read:

202.12 (3) (bm) Except as provided in rules promulgated under sub. (8) In addition to the annual report required under par. (a), if a charitable organization received contributions in excess of $200,000 $300,000, subject to adjustment under sub. (8), but less not more than $400,000 $500,000, subject to adjustment under sub. (8), during its most recently completed fiscal year, the charitable organization shall file with the department, in lieu of a report under par. (a), a financial statement for the charitable organization's most recently completed fiscal year, prepared in accordance with generally accepted accounting principles, and a review of the financial statement by an independent certified public accountant. The financial statement shall be filed within 6 12 months after the end of that fiscal year.

163,68 Section 68. 202.12 (3) (c) of the statutes is repealed.

163,69 Section 69. 202.12 (3) (d) of the statutes is created to read:

202.12 (3) (d) A charitable organization may apply to the department for a waiver of the requirement set forth in par. (b) or (bm). The waiver application shall be in writing, be received by the department within 90 days after the charitable organization's fiscal year-end, and include documentation to support all of the following:

1. The charitable organization's contributions were, during each of the past 3 fiscal years, less than $100,000, subject to adjustment under sub. (8).

2. During the fiscal year for which the waiver is being requested, the charitable organization received one or more contributions from one contributor that exceeded $200,000, subject to adjustment under sub. (8), if the charitable organization is applying for a waiver of the requirement set forth in par. (bm), or exceeded $400,000, subject to adjustment under sub. (8), if the charitable organization is applying for a waiver of the requirement set forth in par. (b).

163,70 Section 70. 202.12 (4) of the statutes is repealed.

163,71 Section 71. 202.12 (5) (a) 3. of the statutes is amended to read:

202.12 (5) (a) 3. Except as provided in par. (b) and in rules promulgated under sub. (8), a charitable organization that does not intend to raise or receive contributions in excess of $5,000 $25,000, subject to adjustment under sub. (8), 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.

163,72 Section 72. 202.12 (5) (a) 9. of the statutes is created to read:

202.12 (5) (a) 9. Any corporation established by an act of the United States Congress that is required by federal law to submit to Congress annual reports, fully audited by the United States Department of Defense, of its activities including itemized accounts of all receipts and expenditures.

163,73 Section 73. 202.12 (5) (b) of the statutes is amended to read:

202.12 (5) (b) Except as provided in rules promulgated under sub. (8), if If a charitable organization would otherwise be exempt under par. (a) 3., but it raises or receives more than $5,000 $25,000, subject to adjustment under sub. (8), in contributions, it shall, within 30 days after the date on which its contributions exceed $5,000 this amount, register as required under sub. (1).

163,74 Section 74. 202.12 (6m) (a) 3. of the statutes is created to read:

202.12 (6m) (a) 3. That the contribution is not tax-deductible, if this disclosure is applicable.

163,75 Section 75. 202.12 (6m) (d) of the statutes is created to read:

202.12 (6m) (d) The disclosures required by this subsection are required unless the unpaid solicitor is soliciting a contribution for a charitable organization that is not required to be registered under sub. (1) or that has obtained a disclosure exemption under par. (e).

163,76 Section 76. 202.12 (7) of the statutes is repealed and recreated to read:

202.12 (7) Relationship with fund-raising counsel and professional fund-raisers. (a) A charitable organization that is required to be registered under sub. (1), and that permits a fund-raising counsel to perform any material services for the charitable organization, shall do all of the following:

1. Before permitting the fund-raising counsel to perform any material services for the charitable organization, ensure the fund-raising counsel is registered under s. 202.13 (1) or is not required to be registered.

2. Before permitting the fund-raising counsel to perform any material services for the charitable organization, contract in writing with the fund-raising counsel, unless the fund-raising counsel is exempt under s. 202.13 (6) from contracting in writing with the charitable organization. Requirements for the contract are specified in s. 202.13 (3).

3. Retain, for at least 3 years, the accounting the fund-raising counsel is required to provide to the charitable organization under s. 202.13 (4) (a) and make this accounting available to the department upon request.

4. Maintain an account at a financial institution within which the fund-raising counsel shall deposit, in its entirety, within 5 days after its receipt, a contribution of money received by the fund-raising counsel on behalf of the charitable organization. The account shall be in the name of the charitable organization, and the charitable organization shall have sole control of all withdrawals from the account.

(b) A charitable organization that is required to be registered under sub. (1), and that permits a professional fund-raiser to perform any material services for the charitable organization, shall do all of the following:

1. Before permitting the professional fund-raiser to perform any material services for the charitable organization, ensure the professional fund-raiser is registered under s. 202.14 (1) or is not required to be registered.

2. Before permitting the professional fund-raiser to perform any material services for the charitable organization, contract in writing with the professional fund-raiser. Requirements for the contract are specified in s. 202.14 (4).

3. Before permitting the professional fund-raiser to perform any material services for the charitable organization, file with the department a written confirmation that any solicitation notice filed with the department under s. 202.14 (3), and any material accompanying that notice, are true and correct to the best of the charitable organization's knowledge.

4. Retain, for at least 3 years, the accounting the professional fund-raiser is required to provide to the charitable organization under s. 202.14 (7), and make this accounting available to the department upon request.

5. Maintain an account at a financial institution within which the professional fund-raiser shall deposit, in its entirety, within 5 days after its receipt, a contribution of money received by the professional fund-raiser on behalf of the charitable organization. The account shall be in the name of the charitable organization, and the charitable organization shall have sole control of all withdrawals from the account.

163,77 Section 77. 202.12 (8) of the statutes is renumbered 202.12 (8) (a) and amended to read:

202.12 (8) (a) The Subject to par. (b), the department may promulgate rules that adjust the threshold amounts in subs. (1) (b) 2g. and 2r., (3) (a), (b), (bm), and (c) (d) and (5) (a) 3. and (b) to account for inflation.

163,78 Section 78. 202.12 (8) (b) and (c) of the statutes are created to read:

202.12 (8) (b) Before the department makes any adjustment under par. (a), the department shall send a notification of the proposed adjustment to the cochairpersons of the joint committee for review of administrative rules. If the cochairpersons of the committee do not notify the secretary of financial institutions within 14 working days after the date of the department's notification that the committee has scheduled a meeting for the purpose of reviewing the proposed adjustment, the adjustment may be made as proposed. If, within 14 working days after the date of the department's notification, the cochairpersons of the committee notify the secretary of financial institutions that the committee has scheduled a meeting for the purpose of reviewing the proposed adjustment, the adjustment may be made only upon approval of the committee.

(c) The department shall notify registrants of any adjustment under this subsection by posting the adjustment on the department's Internet site.

163,79 Section 79. 202.13 (1) (b) (intro.) of the statutes is repealed and recreated to read:

202.13 (1) (b) (intro.) Applicants for a fund-raising counsel registration shall apply to the department, in the form and manner prescribed by the department. Each application that is not a renewal application shall be accompanied by any information required by the department, including all of the following:

163,80 Section 80. 202.13 (1) (b) 1. of the statutes is repealed.

163,81 Section 81. 202.13 (1) (b) 2. of the statutes is amended to read:

202.13 (1) (b) 2. Files with the department a A bond that is approved under sub. (2).

163,82 Section 82. 202.13 (1) (b) 3. of the statutes is renumbered 202.13 (1) (b) 1m. and amended to read:

202.13 (1) (b) 1m. Pays to the department the The registration fee determined by the department under s. 202.08 202.041, 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.

163,83 Section 83. 202.13 (1) (c) and (d) of the statutes are repealed.

163,84 Section 84. 202.13 (1) (e) of the statutes is created to read:

202.13 (1) (e) All fund-raising counsel registrations expire on August 31 of each year.

163,85 Section 85. 202.13 (2) of the statutes is amended to read:

202.13 (2) Bond. At the time of applying for registration under sub. (1), the fund-raising counsel shall file with and have approved by the department a bond, in which the fund-raising counsel is the principal obligor, in the sum of $20,000, with one or more responsible sureties whose liability in the aggregate as sureties at least equals that sum. The fund-raising counsel shall maintain the bond in effect as long as the registration is in effect. The bond, which may shall be in the a form of a rider to a larger blanket liability bond prescribed by and acceptable to the department, shall run to the state and to any person who may have a cause of action against the principal obligor of the bond for any liabilities resulting from the obligor's conduct of any activities as a fund-raising counsel or arising out of a violation of this subchapter or the rules promulgated under this subchapter.

163,86 Section 86. 202.13 (2m) of the statutes is created to read:

202.13 (2m) Annual report. Each fund-raising counsel registered under sub. (1) shall, on or before March 31 of each year, file a report with the department giving such reasonable and relevant information as the department may require concerning the business and operations conducted by the registrant. This report shall be in the form prescribed by the department.

163,87 Section 87. 202.13 (4) (a) of the statutes is amended to read:

202.13 (4) (a) Within 90 days after services under a contract required under sub. (3) are completed, and on the anniversary of the signing of a contract lasting more than one year, the fund-raising counsel shall account in writing to the charitable organization with which the fund-raising counsel has contracted for all contributions received and expenses incurred under the contract. The charitable organization fund-raising counsel shall keep the accounting for at least 3 years after the date on which services under the contract are completed and make it available to the department upon request.

163,88 Section 88. 202.13 (4) (d) of the statutes is created to read:

202.13 (4) (d) All records described in this subsection shall be made available to the department upon the department's request.

163,89 Section 89. 202.14 (1) (b) (intro.) of the statutes is repealed and recreated to read:

202.14 (1) (b) (intro.) Applicants for a professional fund-raiser registration shall apply to the department, in the form and manner prescribed by the department. Each application that is not a renewal application shall be accompanied by any information required by the department, including all of the following:

163,90 Section 90. 202.14 (1) (b) 1. of the statutes is repealed.

163,91 Section 91. 202.14 (1) (b) 2. of the statutes is amended to read:

202.14 (1) (b) 2. Files with the department a A bond that is approved under sub. (2).

163,92 Section 92. 202.14 (1) (b) 3. of the statutes is renumbered 202.14 (1) (b) 1m. and amended to read:

202.14 (1) (b) 1m. Pays the The registration fee determined by the department under s. 202.08 202.041, 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.

163,93 Section 93. 202.14 (1) (c) and (d) of the statutes are repealed.

163,94 Section 94. 202.14 (1) (e) of the statutes is created to read:

202.14 (1) (e) All professional fund-raiser registrations expire on August 31 of each year.

163,95 Section 95. 202.14 (2) of the statutes is amended to read:

202.14 (2) Bond. At the time of applying for registration under sub. (1), a professional fund-raiser shall file with and have approved by the department a bond, in which the professional fund-raiser is the principal obligor, in the sum of $20,000, with one or more responsible sureties whose liability in the aggregate as sureties at least equals that sum. If a professional fund-raiser does not at any time have custody of any contributions, the bond shall be in the sum of $5,000. The professional fund-raiser shall maintain the bond in effect as long as the registration is in effect. The bond, which may shall be in the a form of a rider to a larger blanket liability bond prescribed by and acceptable to the department, shall run to the state and to any person who may have a cause of action against the principal obligor of the bond for any liabilities resulting from the obligor's conduct of any activities as a professional fund-raiser or arising out of a violation of this subchapter or the rules promulgated under this subchapter.

163,96 Section 96. 202.14 (2m) of the statutes is created to read:

202.14 (2m) Annual report. Each professional fund-raiser registered under sub. (1) shall, on or before March 31 of each year, file a report with the department giving such reasonable and relevant information as the department may require concerning the business and operations conducted by the registrant. This report shall be in the form prescribed by the department.