AB778: Bill Text

AB778,22,25 202.12 (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).

AB778,76 Section 76. 202.12 (7) of the statutes is repealed and recreated to read:

AB778,23,5 202.12 (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:

AB778,23,8 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.

AB778,23,13 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).

AB778,23,16 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.

AB778,23,21 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.

AB778,23,24 (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:

AB778,24,3 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.

AB778,24,6 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).

AB778,24,11 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.

AB778,24,14 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.

AB778,24,20 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.

AB778,77 Section 77. 202.12 (8) of the statutes is renumbered 202.12 (8) (a) and amended to read:

AB778,24,25 202.12 (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.

AB778,78 Section 78. 202.12 (8) (b) and (c) of the statutes are created to read:

AB778,25,12 202.12 (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.

AB778,25,14 (c) The department shall notify registrants of any adjustment under this subsection by posting the adjustment on the department's Internet site.

AB778,79 Section 79. 202.13 (1) (b) (intro.) of the statutes is repealed and recreated to read:

AB778,25,20 202.13 (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:

AB778,80 Section 80. 202.13 (1) (b) 1. of the statutes is repealed.

AB778,81 Section 81. 202.13 (1) (b) 2. of the statutes is amended to read:

AB778,25,24 202.13 (1) (b) 2. Files with the department a A bond that is approved under sub. (2).

AB778,82 Section 82. 202.13 (1) (b) 3. of the statutes is renumbered 202.13 (1) (b) 1m. and amended to read:

AB778,26,6 202.13 (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.

AB778,83 Section 83. 202.13 (1) (c) and (d) of the statutes are repealed.

AB778,84 Section 84. 202.13 (1) (e) of the statutes is created to read:

AB778,26,10 202.13 (1) (e) All fund-raising counsel registrations expire on August 31 of each year.

AB778,85 Section 85. 202.13 (2) of the statutes is amended to read:

AB778,26,22 202.13 (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.

AB778,86 Section 86. 202.13 (2m) of the statutes is created to read:

AB778,27,3 202.13 (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.

AB778,87 Section 87. 202.13 (4) (a) of the statutes is amended to read:

AB778,27,12 202.13 (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.

AB778,88 Section 88. 202.13 (4) (d) of the statutes is created to read:

AB778,27,15 202.13 (4) (d) All records described in this subsection shall be made available to the department upon the department's request.

AB778,89 Section 89. 202.14 (1) (b) (intro.) of the statutes is repealed and recreated to read:

AB778,27,21 202.14 (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:

AB778,90 Section 90. 202.14 (1) (b) 1. of the statutes is repealed.

AB778,91 Section 91. 202.14 (1) (b) 2. of the statutes is amended to read:

AB778,27,25 202.14 (1) (b) 2. Files with the department a A bond that is approved under sub. (2).

AB778,92 Section 92. 202.14 (1) (b) 3. of the statutes is renumbered 202.14 (1) (b) 1m. and amended to read:

AB778,28,6 202.14 (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.

AB778,93 Section 93. 202.14 (1) (c) and (d) of the statutes are repealed.

AB778,94 Section 94. 202.14 (1) (e) of the statutes is created to read:

AB778,28,10 202.14 (1) (e) All professional fund-raiser registrations expire on August 31 of each year.

AB778,95 Section 95. 202.14 (2) of the statutes is amended to read:

AB778,28,24 202.14 (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.

AB778,96 Section 96. 202.14 (2m) of the statutes is created to read:

AB778,29,5 202.14 (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.

AB778,97 Section 97. 202.14 (3) (intro.) of the statutes is renumbered 202.14 (3) (am) and amended to read:

AB778,29,17 202.14 (3) (am) Before performing services under a contract with a charitable organization that is required to be registered under s. 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. Forms prescribed by the department under this paragraph may contain any content or requirement that the department, in its discretion, determines necessary. 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:

AB778,98 Section 98. 202.14 (3) (a), (b), (c), (d), (e) and (f) of the statutes are repealed.

AB778,99 Section 99. 202.14 (4) (a) of the statutes is amended to read:

AB778,30,4 202.14 (4) (a) A professional fund-raiser and may not solicit contributions on behalf of a charitable organization that is required to be registered under s. 202.12 (1) shall enter into unless the professional fund-raiser has executed a written contract with the charitable organization 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).

AB778,100 Section 100. 202.14 (4) (b), (c) and (d) of the statutes are repealed.

AB778,101 Section 101. 202.14 (4) (e) of the statutes is created to read:

AB778,30,8 202.14 (4) (e) The contract required under par. (a) shall include all of the following:

AB778,30,9 1. The name of the professional fund-raiser.

AB778,30,10 2. The name of the charitable organization.

AB778,30,11 3. The beginning and expiration dates of the contract.

AB778,30,13 4. The terms of the contract, including a clear description of the services to be performed by the professional fund-raiser.

AB778,30,16 5. A clear statement of the financial arrangement between the professional fund-raiser and the charitable organization, including, if applicable, a statement of all of the following:

AB778,30,19 a. The percentage or dollar amount of the total funds collected on behalf of the charitable organization that shall be paid to, or retained by, the charitable organization.

AB778,30,23 b. The percentage or dollar amount of the total funds collected on behalf of the charitable organization that shall be paid to the professional fund-raiser or any other person for purposes other than the exclusive benefit of the charitable organization's charitable purposes.

AB778,30,24 c. The fixed fee, if any, to be received by the professional fund-raiser.

AB778,31,3 d. All contractual expenses to be incurred by the professional fund-raiser but charged to the charitable organization. This list of expenses shall contain specific dollar amounts or projected estimates of these costs.

AB778,31,5 e. The costs per unit for the services to be provided and the projected number of units to be provided.

AB778,31,8 6. The signature of an owner or principal officer of the professional fund-raiser and the signatures of 2 authorized officers, directors, or trustees of the charitable organization.

AB778,102 Section 102. 202.14 (5) (title) of the statutes is repealed.

AB778,103 Section 103. 202.14 (5) of the statutes is renumbered 202.14 (3) (bm) and amended to read:

AB778,31,14 202.14 (3) (bm) Within 7 days after any material change occurs in information filed with the department under this section par. (am), the professional fund-raiser shall report the change, in writing, to the department.

AB778,104 Section 104. 202.14 (7) of the statutes is amended to read:

AB778,31,23 202.14 (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. 202.12 (1), account in writing to the charitable organization for all contributions received and all expenses incurred under the contract. The charitable organization professional fund-raiser shall retain the accounting for at least 3 years and make it available to the department upon request.

AB778,105 Section 105. 202.14 (11) (title), (a), (c), (d) and (f) of the statutes are created to read:

AB778,32,4 202.14 (11) (title) Solicitation disclosure requirements. (a) Prior to orally requesting a contribution or contemporaneously with a written request for a contribution, a professional fund-raiser shall clearly and conspicuously disclose all of the following:

AB778,32,6 1. The name of the charitable organization, as it appears on file with the department, on whose behalf the solicitation is being made.

AB778,32,8 2. A clear description of the primary charitable purpose for which the solicitation is made.

AB778,32,9 3. That the contribution is not tax-deductible, if this disclosure is applicable.

AB778,32,12 4. The name of the professional fund-raiser, as it appears on file with the department, and that the solicitation is being conducted by a professional fund-raiser who is being paid for his, her, or its services.

AB778,32,14 5. If the individual acting on behalf of the professional fund-raiser identifies himself or herself by name, the individual's legal name.

AB778,32,19 6. Upon request by a person from whom a charitable contribution is sought, the percentage of the contribution that will be paid to the charitable organization as a result of the person's contribution. If the professional fund-raiser does not receive a percentage of the contribution, the professional fund-raiser shall disclose the dollar amount it was to or will receive.

AB778,33,2 (c) In addition to the information required by par. (a) 1. to 5., any written solicitation, and any confirmation, receipt, or reminder required by par. (b), shall, unless the charitable organization has obtained a disclosure exemption under s. 202.12 (6m) (e), conspicuously state the following verbatim: "A financial statement of the charitable organization disclosing assets, liabilities, fund balances, revenue, and expenses for the preceding fiscal year will be provided to any person upon request."

AB778,33,7 (d) The financial statement under par. (c) 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 financial information with its annual report under s. 202.12 (3), the financial statement under par. (c) shall be consistent with the financial information reported in that annual report.

AB778,33,10 (f) The disclosures required by this subsection are required unless the professional fund-raiser is soliciting a contribution for a charitable organization that is not required to be registered under s. 202.12 (1).

AB778,106 Section 106. 202.155 (title) of the statutes is renumbered 202.12 (6m) (title) and amended to read:

AB778,33,13 202.12 (6m) (title) Solicitation Unpaid solicitor disclosure requirements.

AB778,107 Section 107. 202.155 (1) (intro.) of the statutes is renumbered 202.12 (6m) (a) (intro.) and amended to read:

AB778,33,23 202.12 (6m) (a) (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. 202.12 (1), the professional fund-raiser or Prior to orally requesting a contribution or contemporaneously with a written request for a contribution, an unpaid solicitor shall, at the time of the solicitation or with a written confirmation of a solicitation, prior to accepting a contribution, make clearly and conspicuously disclose all of the following disclosures to the person from whom the contribution is solicited: