THE SENATE |
S.B. NO. |
1067 |
TWENTY-EIGHTH LEGISLATURE, 2015 |
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STATE OF HAWAII |
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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: |
_____________________________ |
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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.