AB778: Bill Text

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AB778,98 Section 98. 202.14 (3) (a), (b), (c), (d), (e) and (f) of the statutes are repealed.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

AB778,108 Section 108. 202.155 (1) (a) of the statutes is renumbered 202.12 (6m) (a) 1. and amended to read:

AB778,34,2 202.12 (6m) (a) 1. The name and location of the charitable organization, as it appears on file with the department, on whose behalf the solicitation is being made.

AB778,109 Section 109. 202.155 (1) (b) of the statutes is renumbered 202.12 (6m) (b) and amended to read:

AB778,34,10 202.12 (6m) (b) That a In addition to the information required by par. (a), any written solicitation, and any confirmation, receipt, or reminder of a pledged amount, shall 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 the any person upon request."

AB778,110 Section 110. 202.155 (1) (c) of the statutes is renumbered 202.12 (6m) (a) 2.

AB778,111 Section 111. 202.155 (2) of the statutes is renumbered 202.12 (6m) (c) and amended to read:

AB778,34,19 202.12 (6m) (c) The financial statement under sub. (1) par. (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 financial information with its annual financial report under s. 202.12 sub. (3) (a), the financial statement under sub. (1) par. (b) shall be consistent with the financial information reported in that annual financial report.

AB778,112 Section 112. 202.155 (3) (intro.) of the statutes is repealed.

AB778,113 Section 113. 202.155 (3) (a) of the statutes is renumbered 202.14 (11) (b) and amended to read:

AB778,35,4 202.14 (11) (b) If a solicitation is made orally, including a solicitation made by telephone, the professional fund-raiser shall send a written confirmation, within 5 days after the solicitation, send to each person contributing or pledging to contribute. The written confirmation shall include a clear and conspicuous disclosure of the name of the professional fund-raiser and that the solicitation is being conducted by a professional fund-raiser a written confirmation, receipt, or reminder of the contribution.

AB778,114 Section 114. 202.155 (3) (b) of the statutes is repealed.

AB778,115 Section 115. 202.155 (3) (c) of the statutes is renumbered 202.14 (11) (e).

AB778,116 Section 116. 202.155 (4) of the statutes is renumbered 202.12 (6m) (e) and amended to read:

AB778,35,16 202.12 (6m) (e) A charitable organization that operates solely within one community and that received less than $50,000 in contributions during its most recently completed fiscal year may apply to the department for an exemption from the disclosure requirements under this section subsection. The department shall promulgate rules specifying the criteria for eligibility for an exemption under this paragraph, and shall grant exemptions from the disclosure requirements under this section to a charitable organization that satisfies those criteria prescribe the forms and procedures for use in applying for an exemption.

AB778,117 Section 117. 202.16 (1) (intro.) of the statutes is amended to read:

AB778,35,21 202.16 (1) (intro.) No person charitable organization, fund-raising counsel, or professional fund-raiser may, in the conduct of his, her, or its affairs, including the planning, management, or execution of a solicitation or charitable sales promotion, do any of the following:

AB778,118 Section 118. 202.16 (1) (g) of the statutes is amended to read:

AB778,35,25 202.16 (1) (g) Represent directly or by implication that a charitable organization will receive a fixed or estimated percentage of the gross revenue raised total funds collected greater than that established under s. 202.14 (4).

AB778,119 Section 119. 202.16 (1) (h), (i), (j), (k) and (L) of the statutes are created to read:

AB778,36,3 202.16 (1) (h) Represent or cause another to represent that contributions are tax-deductible unless they so qualify under the federal Internal Revenue Code.

AB778,36,6 (i) Represent or cause another to represent that the person has previously approved or agreed to make a contribution when in fact the person has not given this approval or agreement.

AB778,36,9 (j) Represent or cause another to represent that the person has previously contributed to the same organization or for the same purpose when in fact the person has not so contributed.

AB778,36,11 (k) Fail to apply contributions in a manner substantially consistent with the solicitation or the purposes expressed in the solicitation.

AB778,36,13 (L) Represent in any manner that registration constitutes an endorsement or approval by the department or the department of justice.

AB778,120 Section 120. 202.17 (1) of the statutes is amended to read:

AB778,36,20 202.17 (1) Public records. Except as provided in ss. 202.13 (5) and 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).

AB778,121 Section 121. 202.17 (4) (a) of the statutes is amended to read:

AB778,37,2 202.17 (4) (a) If the department or the department of justice has reason to believe a person has violated or is violating this subchapter or the rules promulgated under this subchapter, it may conduct an investigation to determine whether the person has violated or is violating those provisions. The department of justice may subpoena persons and require the production of books and other documents to aid in its investigations of alleged violations of this subchapter.

AB778,122 Section 122. 202.18 (1) (b) of the statutes is amended to read:

AB778,37,10 202.18 (1) (b) Upon finding that a person has violated this subchapter or the applicable rules promulgated under s. 202.095 202.07 (4m) 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.

AB778,123 Section 123. 202.21 (1) of the statutes is amended to read:

AB778,37,14 202.21 (1) "Applicant" means a professional employer organization or a professional employer group that applies for initial or renewal registration under s. 202.22.

AB778,124 Section 124. 202.22 (2) (intro.) of the statutes is amended to read:

AB778,37,20 202.22 (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 in a form and manner prescribed by the department, together with the. Each application shall be accompanied by any information required by the department, including all of the following:

AB778,37,22 (am) The registration fee determined by the department under s. 202.08 and all of the following: 202.041.

AB778,125 Section 125. 202.22 (2) (a), (b), (c), (d) and (e) of the statutes are repealed.

AB778,126 Section 126. 202.22 (3) of the statutes is created to read:

AB778,38,2 202.22 (3) Registration expiration. All professional employer organization and professional employer group registrations expire on July 31 of each year.

AB778,127 Section 127. 202.22 (4) (title), (a) and (b) of the statutes are amended to read:

AB778,38,10 202.22 (4) (title) Registration renewal; extension for filing updated Updated financial statement. (a) A registrant shall submit a renewal application, together with the renewal fee determined by the department under s. 202.08, to the department in a form and manner prescribed by the department by July 31 of each year. Except as provided in pars. par. (b) and (c) and sub. (7) (b), a registrant shall submit with each renewal application a financial statement, as specified in sub. (2) (f) 1., updated to reflect the current financial condition of the registrant.

AB778,38,18 (b) A registrant whose fiscal year end is March 31, April 30, or May 31 may apply to the department for an extension of the time within which until August 31, September 30, or October 31, respectively, to submit the updated financial statement required under par. (a) by providing with the renewal application a letter from the certified public accountant who is auditing the registrant's financial statement stating the reasons for the delay and the anticipated completion date of the audit. This application shall be accompanied by any information or documentation required by the department, and may be denied by the department.

AB778,128 Section 128. 202.22 (4) (c) of the statutes is repealed.

AB778,129 Section 129. 202.22 (5) (a) of the statutes is amended to read:

AB778,39,9 202.22 (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 submitting to the department an application for small operations registration in a form and manner prescribed by the department and paying the initial registration fee determined by the department under s. 202.08 202.041. 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.

AB778,130 Section 130. 202.22 (5) (d) of the statutes is amended to read:

AB778,39,17 202.22 (5) (d) Except as provided in sub. (7) (b), a professional employer organization or professional employer group registered under this subsection that wishes to renew its small operations registration shall, in addition to complying with sub. (4) (2), provide the department with information and documentation showing that the professional employer organization or professional employer group continues to meet the qualifications specified in par. (a) for small operations registration.

AB778,131 Section 131. 202.22 (6) of the statutes is amended to read: