AB778,113 21Section 113. 202.155 (3) (a) of the statutes is renumbered 202.14 (11) (b) and
22amended to read:
AB778,35,423 202.14 (11) (b) If a solicitation is made orally, including a solicitation made by
24telephone, the professional fund-raiser shall send a written confirmation, within 5
25days after the solicitation, send to each person contributing or pledging to contribute.

1The written confirmation shall include a clear and conspicuous disclosure of the
2name of the professional fund-raiser and that the solicitation is being conducted by
3a professional fund-raiser
a written confirmation, receipt, or reminder of the
4contribution
.
AB778,114 5Section 114. 202.155 (3) (b) of the statutes is repealed.
AB778,115 6Section 115. 202.155 (3) (c) of the statutes is renumbered 202.14 (11) (e).
AB778,116 7Section 116. 202.155 (4) of the statutes is renumbered 202.12 (6m) (e) and
8amended to read:
AB778,35,169 202.12 (6m) (e) A charitable organization that operates solely within one
10community and that received less than $50,000 in contributions during its most
11recently completed fiscal year may apply to the department for an exemption from
12the disclosure requirements under this section subsection. The department shall
13promulgate rules specifying the criteria for eligibility for an exemption under this
14paragraph, and shall grant exemptions from the disclosure requirements under this
15section to a charitable organization that satisfies those criteria
prescribe the forms
16and procedures for use in applying for an exemption
.
AB778,117 17Section 117. 202.16 (1) (intro.) of the statutes is amended to read:
AB778,35,2118 202.16 (1) (intro.) No person charitable organization, fund-raising counsel, or
19professional fund-raiser
may, in the conduct of his, her, or its affairs, including the
20planning, management, or execution of a solicitation or charitable sales promotion,
21do any of the following:
AB778,118 22Section 118. 202.16 (1) (g) of the statutes is amended to read:
AB778,35,2523 202.16 (1) (g) Represent directly or by implication that a charitable
24organization will receive a fixed or estimated percentage of the gross revenue raised
25total funds collected greater than that established under s. 202.14 (4).
AB778,119
1Section 119. 202.16 (1) (h), (i), (j), (k) and (L) of the statutes are created to read:
AB778,36,32 202.16 (1) (h) Represent or cause another to represent that contributions are
3tax-deductible unless they so qualify under the federal Internal Revenue Code.
AB778,36,64 (i) Represent or cause another to represent that the person has previously
5approved or agreed to make a contribution when in fact the person has not given this
6approval or agreement.
AB778,36,97 (j) Represent or cause another to represent that the person has previously
8contributed to the same organization or for the same purpose when in fact the person
9has not so contributed.
AB778,36,1110 (k) Fail to apply contributions in a manner substantially consistent with the
11solicitation or the purposes expressed in the solicitation.
AB778,36,1312 (L) Represent in any manner that registration constitutes an endorsement or
13approval by the department or the department of justice.
AB778,120 14Section 120. 202.17 (1) of the statutes is amended to read:
AB778,36,2015 202.17 (1) Public records. Except as provided in ss. 202.13 (5) and 202.14 (10),
16registration statements, applications, reports, contracts, and agreements of
17charitable organizations, fund-raising counsel, professional fund-raisers, and
18unpaid solicitors and all other documents and information retained by or filed with
19the department under this subchapter are available for inspection or copying under
20s. 19.35 (1).
AB778,121 21Section 121. 202.17 (4) (a) of the statutes is amended to read:
AB778,37,222 202.17 (4) (a) If the department or the department of justice has reason to
23believe a person has violated or is violating this subchapter or the rules promulgated
24under this subchapter, it may conduct an investigation to determine whether the
25person has violated or is violating those provisions. The department of justice may

1subpoena persons and require the production of books and other documents to aid
2in its investigations of alleged violations of this subchapter.
AB778,122 3Section 122. 202.18 (1) (b) of the statutes is amended to read:
AB778,37,104 202.18 (1) (b) Upon finding that a person has violated this subchapter or the
5applicable rules promulgated under s. 202.095 202.07 (4m) or this subchapter, the
6court may make any necessary order or judgment, including but not limited to
7injunctions, restitution, and, notwithstanding s. 814.04, award of reasonable
8attorney fees and costs of investigation and litigation, and, except as provided in par.
9(c), may impose a forfeiture of not less than $100 nor more than $10,000 for each
10violation.
AB778,123 11Section 123. 202.21 (1) of the statutes is amended to read:
AB778,37,1412 202.21 (1) "Applicant" means a professional employer organization or a
13professional employer group that applies for initial or renewal registration under s.
14202.22.
AB778,124 15Section 124. 202.22 (2) (intro.) of the statutes is amended to read:
AB778,37,2016 202.22 (2) Application for registration. (intro.) Except as provided in sub.
17(7) (b), an applicant for registration under this section shall submit to the
18department an application for registration in a form and manner prescribed by the
19department, together with the. Each application shall be accompanied by any
20information required by the department, including all of the following:
AB778,37,22 21(am) The registration fee determined by the department under s. 202.08 and
22all of the following:
202.041.
AB778,125 23Section 125. 202.22 (2) (a), (b), (c), (d) and (e) of the statutes are repealed.
AB778,126 24Section 126. 202.22 (3) of the statutes is created to read:
AB778,38,2
1202.22 (3) Registration expiration. All professional employer organization
2and professional employer group registrations expire on July 31 of each year.
AB778,127 3Section 127. 202.22 (4) (title), (a) and (b) of the statutes are amended to read:
AB778,38,104 202.22 (4) (title) Registration renewal; extension for filing updated Updated
5financial statement.
(a) A registrant shall submit a renewal application, together
6with the renewal fee determined by the department under s. 202.08, to the
7department in a form and manner prescribed by the department by July 31 of each
8year.
Except as provided in pars. par. (b) and (c) and sub. (7) (b), a registrant shall
9submit with each renewal application a financial statement, as specified in sub. (2)
10(f) 1., updated to reflect the current financial condition of the registrant.
AB778,38,1811 (b) A registrant whose fiscal year end is March 31, April 30, or May 31 may
12apply to the department for an extension of the time within which until August 31,
13September 30, or October 31, respectively,
to submit the updated financial statement
14required under par. (a) by providing with the renewal application a letter from the
15certified public accountant who is auditing the registrant's financial statement
16stating the reasons for the delay and the anticipated completion date of the audit
.
17This application shall be accompanied by any information or documentation
18required by the department, and may be denied by the department
.
AB778,128 19Section 128. 202.22 (4) (c) of the statutes is repealed.
AB778,129 20Section 129. 202.22 (5) (a) of the statutes is amended to read:
AB778,39,921 202.22 (5) (a) Except as provided in sub. (7) (b), a professional employer
22organization or professional employer group that is domiciled outside this state, that
23is registered or licensed as a professional employer organization or professional
24employer group in another state, that does not maintain an office in this state or
25directly solicit clients that are located or domiciled in this state, and that has no more

1than 50 employees performing services for clients in this state on any given day may
2apply for small operations registration under this section by submitting to the
3department an application for small operations registration in a form and manner
4prescribed by the department and paying the initial registration fee determined by
5the department under s. 202.08 202.041. An applicant that is seeking small
6operations registration shall, in addition to the information required under sub. (2)
7(a) to (e), provide the department with information and documentation showing that
8the applicant meets the qualifications specified in this paragraph for small
9operations registration.
AB778,130 10Section 130. 202.22 (5) (d) of the statutes is amended to read:
AB778,39,1711 202.22 (5) (d) Except as provided in sub. (7) (b), a professional employer
12organization or professional employer group registered under this subsection that
13wishes to renew its small operations registration shall, in addition to complying with
14sub. (4) (2), provide the department with information and documentation showing
15that the professional employer organization or professional employer group
16continues to meet the qualifications specified in par. (a) for small operations
17registration.
AB778,131 18Section 131. 202.22 (6) of the statutes is amended to read:
AB778,40,419 202.22 (6) Professional employer group registration. Except as provided in
20sub. (7) (b), 2 or more professional employer organizations that are part of a
21professional employer group may register under this section or renew a registration
22by providing the information required under sub. subs. (2), and (4), (a) or sub. (5) on
23a combined or consolidated basis, paying the initial registration or renewal fee
24determined by the department under s. 202.08 202.041, and guaranteeing each
25other's obligations. If a professional employer group provides a combined or

1consolidated financial statement under sub. (2) (f) 1. that includes the financial
2condition of entities that are not part of the professional employer group, the
3controlling person shall guarantee the obligations of the professional employer
4organizations in the professional employer group.
AB778,132 5Section 132. 202.22 (7) (a) of the statutes is repealed.
AB778,133 6Section 133. 202.22 (7) (b) of the statutes is amended to read:
AB778,40,157 202.22 (7) (b) The department may by rule provide for allow the registration
8of a professional employer organization or professional employer group without
9compliance with sub. (2), (4), (5), or (6), s. 202.23, or rules promulgated under s.
10202.095 202.07 (4m) or 202.26 on acceptance by the department of assurance,
11provided by a bonded, independent, and qualified assurance organization that has
12been approved by the department, satisfactory to the department that the
13professional employer organization or professional employer group is qualified to
14operate as a professional employer organization or a professional employer group in
15this state.
AB778,134 16Section 134. 202.22 (7) (c) of the statutes is amended to read:
AB778,40,2417 202.22 (7) (c) This subsection does not limit the authority of the department
18to require a professional employer organization or professional employer group to
19register as provided in sub. (2), (4), (5), or (6), to maintain proof of financial capability
20as required under s. 202.23, or to comply with this chapter and the rules promulgated
21under s. 202.095 202.07 (4m) or 202.26; to investigate an applicant or registrant and
22deny registration or renewal registration under sub. (8) s. 202.021, or to investigate
23an applicant, registrant. or controlling person and take disciplinary action under s.
24202.06.
AB778,135 25Section 135. 202.22 (8) of the statutes is repealed.
AB778,136
1Section 136. 202.22 (9) (am) of the statutes is amended to read:
AB778,41,52 202.22 (9) (am) The department shall maintain and periodically update a list
3of all professional employer organizations and professional employer groups
4registered under this section, and shall make the list available on the department's
5Internet Web site
upon request. The list shall include the address of each registrant.
AB778,137 6Section 137. 202.23 (1) of the statutes is amended to read:
AB778,41,207 202.23 (1) Working capital requirement. Working capital, as defined by
8generally accepted accounting principles, of not less than $100,000, as shown in the
9financial statement submitted to the department under s. 202.22 (2) (f) 1., (4) (a), or
10(6). If a professional employer organization or professional employer group has less
11than $100,000 in working capital, the department may issue a registration or
12renewal registration contingent on the registrant meeting the working capital
13requirement of this subsection no later than 180 days after the issuance of the
14registration or renewal registration. During the period of contingent registration,
15the registrant shall submit quarterly financial statements to the department
16accompanied by an attestation by the chief executive officer of the registrant that all
17wages, salaries, employee benefits, worker's compensation insurance premiums,
18payroll taxes, unemployment insurance contributions, and other amounts that are
19payable to or with respect to an employee of the registrant performing services for
20a client were paid by the registrant when due.
AB778,138 21Section 138. 202.23 (2) of the statutes is amended to read:
AB778,42,1822 202.23 (2) Alternative commitment. A bond, certificate of deposit, escrow
23account, or irrevocable letter of credit
in an amount that is not less than $100,000
24or, if the financial statement submitted to the department under s. 202.22 (2) (f) 1.,
25(4), or (6) indicates a deficit in negative working capital, a bond, certificate of deposit,

1escrow account, or irrevocable letter of credit
in an amount that is not less than
2$100,000 plus an amount that is sufficient to cover that deficit negative amount. The
3commitment described in this subsection bond shall be in a form approved by the
4department, shall be held in a depository designated by the department, and shall
5secure the payment by the professional employer organization or professional
6employer group of any wages, salaries, employee benefits, worker's compensation
7insurance premiums, payroll taxes, unemployment insurance contributions, or
8other amounts that are payable to or with respect to an employee performing services
9for a client if the professional employer organization or professional employer group
10does not make those payments when due. The commitment bond shall be established
11in favor of or be made payable to the department, for the benefit of the state and any
12employee to whom or with respect to whom the professional employer organization
13or professional employer group does not make a payment described in this subsection
14when due. The professional employer organization or professional employer group
15shall file with the department any agreement, instrument, or other document that
16is necessary to enforce the commitment against the professional employer
17organization or professional employer group, or against any relevant 3rd party, or
18both.
AB778,139 19Section 139. 202.26 (intro.) and (2) of the statutes are consolidated,
20renumbered 202.26 and amended to read:
AB778,42,25 21202.26 Rules. (intro.) The rules the department promulgates under s. 202.095
22202.07 (4m) that implement this subchapter shall may include rules providing for all
23of the following:
(2) Reasonable reasonable fees for any service provided under this
24chapter that do not exceed an amount that is necessary to cover the cost of providing
25that service.
AB778,140
1Section 140. 202.26 (1) and (3) of the statutes are repealed.
AB778,141 2Section 141. 227.01 (13) (yx) of the statutes is created to read:
AB778,43,53 227.01 (13) (yx) Relates to adjustments under s. 202.12 (8), exemptions under
4s. 202.12 (6m) (e), or the alternative registration of professional employer
5organizations under s. 202.22 (7) (b).
AB778,142 6Section 142. DFI-Bkg 60.01 of the administrative code is amended to read:
AB778,43,87 DFI-Bkg 60.01 Authority. This chapter is adopted pursuant to ss. 202.12 (3)
8(am), 202.12 (8), 202.155 (4), and 227.11 (2)
s. 202.07 (4m), Stats.
AB778,143 9Section 143. DFI-Bkg 60.02 (3) of the administrative code is repealed.
AB778,144 10Section 144. DFI-Bkg 60.03 (intro.) and (1) of the administrative code are
11repealed.
AB778,145 12Section 145. DFI-Bkg 60.03 (2) (title) of the administrative code is
13renumbered DFI-Bkg 60.03 (title).
AB778,146 14Section 146. DFI-Bkg 60.03 (2) of the administrative code is amended to read:
AB778,44,315 DFI-Bkg 60.03 (2) A registered charitable organization which desires that
16operates solely within one community and that received less than $50,000 in
17contributions during its most recently completed fiscal year may apply to the
18department
to be exempted from the solicitation disclosure requirements of s.
19202.155 (1) and (2), Stats., may apply for the exemption by filing the affidavit
20prescribed by s. DFI-Bkg 60.04
s. 202.12 (6m) (b), Stats. The application shall be
21made on forms and in the manner prescribed by the department
. A registered
22charitable organization which has applied for the exemption may not conduct
23solicitations without making the disclosures required under s. 202.155 (1) and (2)
24202.12 (6m), Stats., until the registered charitable organization has received written
25notice from the department that the department has granted the exemption. A

1registered charitable organization may qualify for the exemption from solicitation
2disclosures regardless of whether it uses a professional fund-raiser or an unpaid
3solicitor for the solicitation of contributions to the registered charitable organization.
AB778,147 4Section 147. DFI-Bkg 60.03 (3) of the administrative code is created to read:
AB778,44,95 DFI-Bkg 60.03 (3) If a registered charitable organization obtains an
6exemption under sub. (2), a professional fund-raiser who solicits contributions on
7behalf of the registered charitable organization is exempt from the solicitation
8disclosure requirements in s. 202.14 (11) (c), Stats., when soliciting contributions on
9behalf of the registered charitable organization.
AB778,148 10Section 148. DFI-Bkg 60.04 of the administrative code is repealed.
AB778,149 11Section 149. DFI-Bkg 60.05 of the administrative code is repealed.
AB778,150 12Section 150. DFI-Bkg 60.06 (title) and (1) of the administrative code are
13repealed.
AB778,151 14Section 151. DFI-Bkg 60.06 (note) of the administrative code is repealed.
AB778,152 15Section 152. DFI-Bkg 60.06 (2) (title) of the administrative code is
16renumbered DFI-Bkg 60.06 (title).
AB778,153 17Section 153. DFI-Bkg 60.06 (2) of the administrative code is amended to read:
AB778,44,2318 DFI-Bkg 60.06 (2) A central organization may file a single application for
19charitable organization registration of the central organization and all of its
20affiliated subunits, provided that the central organization has complete and direct
21control over the solicitation activities of all subunits, receives all contributions for its
22use or future distribution to the subunits and is accountable for all receipts and
23disbursements relating to the solicited contributions.
AB778,154 24Section 154. DFI-Bkg 60.07 of the administrative code is repealed.
AB778,155
1Section 155. DFI-Bkg 60.075 (2) (c) of the administrative code is amended to
2read:
AB778,45,43 DFI-Bkg 60.075 (2) (c) The contents of the mailing do not include the name or
4contact information
of the professional fund-raiser or the fund-raising counsel.
AB778,156 5Section 156. DFI-Bkg 60.08 (title) of the administrative code is amended to
6read:
AB778,45,7 7DFI-Bkg 60.08 (title) Annual financial reports.
AB778,157 8Section 157. DFI-Bkg 60.08 (1) of the administrative code is amended to read:
AB778,45,129 DFI-Bkg 60.08 (1) Only charitable organizations which are registered or are
10required to be registered with the department are required to file an annual report
11or an affidavit in lieu of an annual report with the department under s. 202.12 (3),
12Stats
.
AB778,158 13Section 158. DFI-Bkg 60.08 (2) of the administrative code is repealed.
AB778,159 14Section 159. DFI-Bkg 60.08 (3) and (note) of the administrative code are
15amended to read:
AB778,45,2416 DFI-Bkg 60.08 (3) An annual financial report submitted to the department
17pursuant to s. 202.12 (3), 202.13 (2m), or 202.14 (2m), Stats., by a charitable
18organization which is registered or required to be registered
shall be complete,
19accurate and truthful. It shall include all schedules and attachments required by the
20form prepared by the department pursuant to s. 202.12 (3) (a), Stats., or prepared by
21another person pursuant to s. 202.12 (4), Stats. A charitable organization which files
22with the department financial information which it has filed with another state or
23the federal government shall complete a supplemental form prepared by the
24department which requires additional information to comply with sub. (2)
.
AB778,46,4
1Note: The annual Annual report form and the supplemental form forms may
2be obtained upon request from the current Internet site of the Department of
3Financial Institutions, Division of Banking, 201 West Washington Avenue, P.O. Box
47876, Madison, Wisconsin 53707-7876
.
AB778,160 5Section 160. DFI-Bkg 60.08 (3m) of the administrative code is repealed.
AB778,161 6Section 161. DFI-Bkg 60.08 (4) of the administrative code is repealed.
AB778,162 7Section 162. Effective date.
AB778,46,98 (1) This act takes effect on June 1, 2016, or on the day after publication,
9whichever is later.
AB778,46,1010 (End)
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