THE SENATE

S.B. NO.

1067

TWENTY-EIGHTH LEGISLATURE, 2015

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO CHARITABLE SOLICITATION.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  Section 467B-2.5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Within ninety days after a solicitation campaign or event has been completed and on the anniversary of the commencement of a solicitation campaign lasting more than one year, a professional solicitor shall file with the attorney general a financial report for the campaign, including gross revenue and an itemization of all expenses incurred on a form prescribed by the attorney general.  The attorney general may require the financial report to be submitted electronically.  This report shall be signed under penalty provided by section 710-1063 by the authorized contracting agent for the professional solicitor [and two authorized officials of the charitable organization] and shall report gross revenue from Hawaii donors and national gross revenue from a solicitation activity or campaign.  If a financial report required under this section is not filed, taking into account any extension of time for filing, unless it is shown that the failure is due to reasonable cause, an initial fine of $100 shall be imposed and an additional fine of $20 per day shall be imposed for each day during which the violation continues; provided that the total amount imposed under this subsection shall not exceed $1,000.  The professional solicitor shall provide a copy of the financial report to the charitable organization to which the financial report pertains within ten days of its submission of the report to the attorney general.  A professional solicitor shall maintain during each solicitation campaign and for not less than three years after the completion of that campaign the following records, which shall be available for inspection upon demand by the attorney general:

     (1)  The date and amount of each contribution received and the name and address of each contributor;

     (2)  The name and residence of each employee, agent, or other person involved in the solicitation;

     (3)  Records of all revenue received and expenses incurred in the course of the solicitation campaign; and

     (4)  The location and account number of each bank or other financial institution account in which the professional solicitor has deposited revenue from the solicitation campaign."

     SECTION 2.  Section 467B-11.5, Hawaii Revised Statutes, is amended to read as follows:

     "§467B-11.5  Charitable organizations exempted from registration and financial disclosure requirements.  The following charitable organizations shall not be subject to sections 467B-2.1 and 467B-6.5, if the organization submits [information as the department may require] to the department an application for exemption to substantiate an exemption under this section[:] and the department approves the organization's application.  The attorney general may require the application for exemption to be filed electronically with the department and may require the use of electronic signatures.

     (1)  Any duly organized religious corporation, institution, or society that is exempt from filing Form 990 with the Internal Revenue Service pursuant to sections 6033(a)(3)(A)(i) and (iii) and 6033(a)(3)(C)(i) of the Internal Revenue Code, as amended;

     (2)  Parent-teacher associations;

     (3)  Any educational institution that is licensed or accredited by any of the following licensing or accrediting organizations:

         (A)  Hawaii Association of Independent Schools;

         (B)  Hawaii Council of Private Schools;

         (C)  Western Association of Schools and Colleges;

         (D)  Middle States Association of Colleges and Schools.

         (E)  New England Association of Schools and Colleges;

         (F)  North Central Association of Colleges and Schools;

         (G)  Northwest Commission on Colleges and Universities;

         (H)  Southern Association of Colleges and Schools; [or]

         (I)  The National Association for the Education of Young Children; or

         (J)  The Northwest Accreditation Commission for primary and secondary schools;

and any organization exempt from taxation under section 501(c)(3) of the Internal Revenue Code expressly authorized by, and having an established identity with[, such] an educational institution[;] accredited by one of the foregoing accrediting agencies; provided that the organization's solicitation of contributions is primarily directed to the students, alumni, faculty, and trustees of the institutions and their respective families;

     (4)  Any nonprofit hospital licensed by the State or any similar provision of the laws of any other state;

     (5)  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;

     (6)  Any agency of this State, another state, or the federal government; and

     (7)  Any charitable organization that normally receives less than $25,000 in contributions annually, if the organization does not employ or compensate a professional solicitor or professional fundraising counsel.  For purposes of this paragraph, an organization normally receives less than $25,000 in contributions annually, if during the immediately preceding three fiscal years, it received, on average, less than $25,000 in contributions."

     SECTION 3.  Statutory material to repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval.

 

INTRODUCED BY:

_____________________________

 

 

BY REQUEST


 


 

Report Title:

Charitable Solicitation

 

Description:

Authorizes the Attorney General to require electronic financial reporting by professional solicitors, imposes a late fee for late financial reports by professional solicitors; and clarifies exemptions from registration requirements.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.