Bill Text: FL S0638 | 2014 | Regular Session | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Charities
Spectrum: Slight Partisan Bill (? 2-1)
Status: (Introduced - Dead) 2014-04-29 - Laid on Table, companion bill(s) passed, see CS/CS/HB 629 (Ch. 2014-122) [S0638 Detail]
Download: Florida-2014-S0638-Comm_Sub.html
Bill Title: Charities
Spectrum: Slight Partisan Bill (? 2-1)
Status: (Introduced - Dead) 2014-04-29 - Laid on Table, companion bill(s) passed, see CS/CS/HB 629 (Ch. 2014-122) [S0638 Detail]
Download: Florida-2014-S0638-Comm_Sub.html
Florida Senate - 2014 CS for SB 638
By the Committee on Commerce and Tourism; and Senator Brandes
577-01736A-14 2014638c1
1 A bill to be entitled
2 An act relating to charities; amending s. 212.08,
3 F.S.; excluding charitable organizations or sponsors
4 disqualified by the Department of Agriculture and
5 Consumer Services from receiving certain tax
6 exemptions; amending s. 212.084, F.S.; requiring the
7 Department of Revenue to revoke or deny a sales tax
8 exemption to charitable organizations or sponsors
9 disqualified by the department; providing for a
10 limited appeal of the denial or revocation of the
11 sales tax exemption; amending s. 496.404, F.S.;
12 defining terms; redefining the term “religious
13 institution”; amending s. 496.405, F.S.; revising the
14 timeframe within which a charitable organization or
15 sponsor must report changes to certain information
16 provided to the department on an initial or renewal
17 registration statement; providing for the automatic
18 expiration of a registration for failure to file a
19 renewal or financial statement by a certain date;
20 repealing a requirement that the renewal statement be
21 filed subsequent to the financial statement; repealing
22 authorization to extend the time to file a renewal
23 statement; specifying the information that must be
24 submitted by a parent organization on a consolidated
25 financial statement; extending the time allowed for
26 the department to review certain initial or renewal
27 registration statements; providing that failure of a
28 charitable organization or sponsor to make certain
29 disclosures in a registration statement results in the
30 automatic suspension of an active registration for a
31 specified period; prohibiting the officers, directors,
32 trustees, or employees of a charitable organization or
33 sponsor from allowing certain persons to solicit
34 contributions on behalf of the charitable organization
35 or sponsor; specifying that the prohibition against
36 certain persons soliciting contributions on behalf of
37 a charitable organization or sponsor due to the
38 commission of certain felonies includes those felonies
39 committed in any state as well as any misdemeanor in
40 another state which constitutes a disqualifying felony
41 in this state; authorizing the department to deny or
42 revoke the registration of a charitable organization
43 or sponsor under certain circumstances; requiring a
44 charitable organization or sponsor that has ended
45 solicitation activities in this state to notify the
46 department in writing; making technical changes;
47 creating s. 496.4055, F.S.; defining the term
48 “conflict of interest transaction”; requiring the
49 board of directors of a charitable organization or
50 sponsor, or an authorized committee thereof, to adopt
51 a policy regarding conflict of interest transactions;
52 amending s. 496.407, F.S.; requiring that the
53 financial statements of certain charitable
54 organizations or sponsors be audited or reviewed;
55 specifying requirements and standards for the audit or
56 review of a financial statement; restricting the use
57 of an existing alternative to the required annual
58 financial statement to certain charities; authorizing
59 the department to require an audit or review of any
60 financial statement and to extend the time to file a
61 financial statement under certain circumstances;
62 providing that the registration of a charitable
63 organization or sponsor be suspended upon its failure
64 to file a financial statement within an extension
65 period; making technical changes; creating s.
66 496.4071, F.S.; requiring certain charitable
67 organizations or sponsors to report specified
68 supplemental financial information to the department
69 by a certain date; creating s. 496.4072, F.S.;
70 requiring certain charitable organizations or sponsors
71 who solicit contributions for a specific disaster
72 relief effort to submit quarterly financial statements
73 to the department; specifying information to be
74 included in the quarterly financial statement and the
75 length of the required reporting period; amending ss.
76 496.409 and 496.410, F.S.; prohibiting a professional
77 fundraising consultant or professional solicitor from
78 entering into a contract or agreement with a
79 charitable organization or sponsor that has not
80 complied with certain requirements; extending the time
81 that the department may review initial or renewal
82 registration statements of professional fundraising
83 consultants or professional solicitors which contain
84 certain disclosures; providing that the failure of a
85 professional fundraising consultant or professional
86 solicitor to make certain disclosures in an initial or
87 renewal registration statement results in automatic
88 suspension of an active registration; prohibiting the
89 officers, trustees, directors, or employees of a
90 professional fundraising consultant or a professional
91 solicitor from allowing certain persons to solicit
92 contributions on behalf of the professional
93 fundraising consultant or professional solicitor;
94 specifying that the prohibition against acting as a
95 professional solicitor or the employment of certain
96 persons by a professional solicitor due to the
97 commission of certain felonies includes those felonies
98 committed in any state as well as any misdemeanor in
99 another state which constitutes a disqualifying felony
100 in this state; authorizing the department to deny or
101 revoke the registration of a professional fundraising
102 consultant or professional solicitor under certain
103 circumstances; revising required information in the
104 initial or renewal application of a professional
105 solicitor; repealing a provision authorizing the
106 payment of a single registration fee for certain
107 professional solicitors; requiring a professional
108 solicitor to provide additional specified information
109 to the department in a solicitation notice; creating
110 s. 496.4101, F.S.; requiring each officer, director,
111 trustee, or owner of a professional solicitor and any
112 employee of a professional solicitor that conducts
113 telephone solicitations to obtain a solicitor license
114 from the department; specifying application
115 information and the application procedure for a
116 solicitor license; requiring each applicant for a
117 solicitor license to submit a complete set of his or
118 her fingerprints and a fee for fingerprint processing
119 and retention to the department; requiring the
120 department to submit the applicant’s fingerprints to
121 the Department of Law Enforcement for a criminal
122 history background check; providing for retention of
123 the fingerprints; requiring the department to notify
124 the Department of Law Enforcement of individuals who
125 are no longer licensed; requiring that a solicitor
126 license be renewed annually or expire automatically
127 upon nonrenewal; requiring that an applicant for a
128 solicitor license pay certain licensing fees;
129 providing that licensing fees be deposited into the
130 General Inspection Trust Fund; requiring that an
131 applicant for a solicitor license report changes in
132 information submitted to the department in a specified
133 manner along with a processing fee; specifying
134 violations; requiring the department to adopt rules
135 allowing certain persons to engage in solicitation
136 activities without a solicitor license for a specified
137 period; authorizing the department to deny or revoke a
138 solicitor license under specified circumstances;
139 amending ss. 496.411 and 496.412, F.S.; expanding and
140 revising required solicitation disclosures of
141 charitable organizations, sponsors, and professional
142 solicitors; requiring that certain exempt charitable
143 organizations or sponsors also provide such
144 solicitation disclosures; requiring that such
145 solicitation disclosures be placed online under
146 certain circumstances; creating s. 496.4121, F.S.;
147 defining the term “collection receptacle”; requiring
148 that collection receptacles display permanent signs or
149 labels; specifying requirements for the physical
150 appearance of such labels or signs and information
151 displayed thereon; requiring that a charitable
152 organization or sponsor using a collection receptacle
153 provide certain information to a donor upon request;
154 amending s. 496.415, F.S.; providing that the
155 submission of false, misleading, or inaccurate
156 information in a document connected with a
157 solicitation or sales promotion is unlawful; providing
158 that the failure to remit specified funds to a
159 charitable organization or sponsor is unlawful;
160 amending s. 496.419, F.S.; increasing administrative
161 fines for violations of the Solicitation of
162 Contributions Act; creating s. 496.4191, F.S.;
163 requiring the department to immediately suspend a
164 registration or processing of an application for
165 registration for a specified period if the registrant,
166 applicant, or any officer or director thereof is
167 criminally charged with certain offenses; creating s.
168 496.430, F.S.; authorizing the department to
169 disqualify a charitable organization or sponsor from
170 receiving a sales tax exemption under specified
171 circumstances; providing that a charitable
172 organization or sponsor may appeal a disqualification
173 order; specifying appeal procedure; providing
174 exceptions; providing that a disqualification order
175 remains effective for a specified period; specifying
176 the procedure to lift a disqualification order;
177 requiring the department to provide a final
178 disqualification order to the Department of Revenue
179 within a specified period; providing that a final
180 disqualification order is conclusive as to a
181 charitable organization or sponsor’s right to a sales
182 tax exemption; requiring the Department of Revenue to
183 revoke or deny a sales tax exemption to a charitable
184 organization or sponsor subject to a final
185 disqualification order within a specified period;
186 providing for a limited appeal of the revocation or
187 denial of the sales tax exemption; providing
188 applicability; amending s. 741.0305, F.S.; conforming
189 a cross-reference; creating s. 496.431, F.s.;
190 providing for severability; making an appropriation;
191 providing an effective date.
192
193 Be It Enacted by the Legislature of the State of Florida:
194
195 Section 1. Paragraph (p) of subsection (7) of section
196 212.08, Florida Statutes, is amended to read:
197 212.08 Sales, rental, use, consumption, distribution, and
198 storage tax; specified exemptions.—The sale at retail, the
199 rental, the use, the consumption, the distribution, and the
200 storage to be used or consumed in this state of the following
201 are hereby specifically exempt from the tax imposed by this
202 chapter.
203 (7) MISCELLANEOUS EXEMPTIONS.—Exemptions provided to any
204 entity by this chapter do not inure to any transaction that is
205 otherwise taxable under this chapter when payment is made by a
206 representative or employee of the entity by any means,
207 including, but not limited to, cash, check, or credit card, even
208 when that representative or employee is subsequently reimbursed
209 by the entity. In addition, exemptions provided to any entity by
210 this subsection do not inure to any transaction that is
211 otherwise taxable under this chapter unless the entity has
212 obtained a sales tax exemption certificate from the department
213 or the entity obtains or provides other documentation as
214 required by the department. Eligible purchases or leases made
215 with such a certificate must be in strict compliance with this
216 subsection and departmental rules, and any person who makes an
217 exempt purchase with a certificate that is not in strict
218 compliance with this subsection and the rules is liable for and
219 shall pay the tax. The department may adopt rules to administer
220 this subsection.
221 (p) Section 501(c)(3) organizations.—Also exempt from the
222 tax imposed by this chapter are sales or leases to organizations
223 determined by the Internal Revenue Service to be currently
224 exempt from federal income tax pursuant to s. 501(c)(3) of the
225 Internal Revenue Code of 1986, as amended, if when such leases
226 or purchases are used in carrying on their customary nonprofit
227 activities, unless such organizations are subject to a final
228 disqualification order issued by the Department of Agriculture
229 and Consumer Services pursuant to s. 496.430.
230 Section 2. Subsection (3) of section 212.084, Florida
231 Statutes, is amended, and subsection (7) is added to that
232 section, to read:
233 212.084 Review of exemption certificates; reissuance;
234 specified expiration date; temporary exemption certificates.—
235 (3) After review is completed and it has been determined
236 that an institution, organization, or individual is actively
237 engaged in a bona fide exempt endeavor and is not subject to a
238 final disqualification order issued by the Department of
239 Agriculture and Consumer Services pursuant to s. 496.430, the
240 department shall reissue an exemption certificate to the entity.
241 However, each certificate so reissued is valid for 5 consecutive
242 years, at which time the review and reissuance procedure
243 provided by this section apply again. If the department
244 determines that an entity no longer qualifies for an exemption,
245 it shall revoke the tax exemption certificate of the entity.
246 (7) The department shall revoke or refuse to grant a sales
247 tax exemption certificate to an institution, organization, or
248 individual that is the subject of a final disqualification order
249 issued by the Department of Agriculture and Consumer Services
250 pursuant to s. 496.430. A revocation or denial under this
251 subsection is subject to challenge under chapter 120 only as to
252 whether a disqualification order is in effect. The institution,
253 organization, or individual must appeal or challenge the
254 validity of the disqualification order pursuant to s.
255 496.430(2).
256 Section 3. Section 496.404, Florida Statutes, is amended to
257 read:
258 496.404 Definitions.—As used in ss. 496.401-496.424, the
259 term:
260 (1) “Charitable organization” means a any person who is or
261 holds herself or himself out to be established for any
262 benevolent, educational, philanthropic, humane, scientific,
263 artistic, patriotic, social welfare or advocacy, public health,
264 environmental conservation, civic, or other eleemosynary
265 purpose, or a any person who in any manner employs a charitable
266 appeal as the basis for any solicitation or an appeal that
267 suggests that there is a charitable purpose to any solicitation.
268 The term It includes a chapter, branch, area office, or similar
269 affiliate soliciting contributions within the state for a
270 charitable organization that which has its principal place of
271 business outside the state.
272 (2) “Charitable purpose” means any benevolent,
273 philanthropic, patriotic, educational, humane, scientific,
274 artistic, public health, social welfare or advocacy,
275 environmental conservation, civic, or other eleemosynary
276 objective.
277 (3) “Charitable sales promotion” means an advertising or
278 sales campaign conducted by a commercial co-venturer which
279 represents that the purchase or use of goods or services offered
280 by the commercial co-venturer are to benefit a charitable
281 organization. The provision of advertising services to a
282 charitable organization does not, in itself, constitute a
283 charitable sales promotion.
284 (4) “Commercial co-venturer” means a any person who, for
285 profit, regularly and primarily is engaged in trade or commerce
286 other than in connection with solicitation of contributions and
287 who conducts a charitable sales promotion or a sponsor sales
288 promotion.
289 (5) “Contribution” means the promise, pledge, or grant of
290 any money or property, financial assistance, or any other thing
291 of value in response to a solicitation. The term “Contribution”
292 includes, in the case of a charitable organization or sponsor
293 offering goods and services to the public, the difference
294 between the direct cost of the goods and services to the
295 charitable organization or sponsor and the price at which the
296 charitable organization or sponsor or any person acting on
297 behalf of the charitable organization or sponsor resells those
298 goods or services to the public. The term “Contribution” does
299 not include bona fide fees, dues, or assessments paid by
300 members, if provided that membership is not conferred solely as
301 consideration for making a contribution in response to a
302 solicitation;. “Contribution” also does not include funds
303 obtained by a charitable organization or sponsor pursuant to
304 government grants or contracts; funds, or obtained as an
305 allocation from a United Way organization that is duly
306 registered with the department; or funds received from an
307 organization that is exempt from federal income taxation under
308 s. 501(a) of the Internal Revenue Code and described in s.
309 501(c) of the Internal Revenue Code which that is duly
310 registered with the department.
311 (6) “Crisis” means an event that garners widespread
312 national or global media coverage due to an actual or perceived
313 threat of harm to an individual, a group, or a community.
314 (7)(6) “Department” means the Department of Agriculture and
315 Consumer Services.
316 (8) “Disaster” means a natural, technological, or civil
317 event, including, but not limited to, an explosion, chemical
318 spill, earthquake, tsunami, landslide, volcanic activity,
319 avalanche, wildfire, tornado, hurricane, drought, or flood,
320 which affects one or more countries and causes damage of
321 sufficient severity and magnitude to result in:
322 (a) An official declaration of a state of emergency; or
323 (b) An official request for international assistance.
324 (9)(7) “Division” means the Division of Consumer Services
325 of the Department of Agriculture and Consumer Services.
326 (10)(8) “Educational institutions” means those institutions
327 and organizations described in s. 212.08(7)(cc)8.a. The term
328 includes private nonprofit organizations, the purpose of which
329 is to raise funds for schools teaching grades kindergarten
330 through grade 12, colleges, and universities, including any
331 nonprofit newspaper of free or paid circulation primarily on
332 university or college campuses which holds a current exemption
333 from federal income tax under s. 501(c)(3) of the Internal
334 Revenue Code, any educational television network or system
335 established pursuant to s. 1001.25 or s. 1001.26, and any
336 nonprofit television or radio station that is a part of such
337 network or system and that holds a current exemption from
338 federal income tax under s. 501(c)(3) of the Internal Revenue
339 Code. The term also includes a nonprofit educational cable
340 consortium that holds a current exemption from federal income
341 tax under s. 501(c)(3) of the Internal Revenue Code, whose
342 primary purpose is the delivery of educational and instructional
343 cable television programming and whose members are composed
344 exclusively of educational organizations that hold a valid
345 consumer certificate of exemption and that are either an
346 educational institution as defined in this subsection or
347 qualified as a nonprofit organization pursuant to s. 501(c)(3)
348 of the Internal Revenue Code.
349 (11)(9) “Emergency service employee” means an any employee
350 who is a firefighter, as defined in s. 633.102, or ambulance
351 driver, emergency medical technician, or paramedic, as defined
352 in s. 401.23.
353 (12)(10) “Federated fundraising organization” means a
354 federation of independent charitable organizations that which
355 have voluntarily joined together, including, but not limited to,
356 a united way or community chest, for purposes of raising and
357 distributing contributions for and among themselves and where
358 membership does not confer operating authority and control of
359 the individual organization upon the federated group
360 organization.
361 (13)(11) “Fundraising costs” means those costs incurred in
362 inducing others to make contributions to a charitable
363 organization or sponsor for which the contributors will receive
364 no direct economic benefit. Fundraising costs include, but are
365 not limited to, salaries, rent, acquiring and obtaining mailing
366 lists, printing, mailing, and all direct and indirect costs of
367 soliciting, as well as the cost of unsolicited merchandise sent
368 to encourage contributions.
369 (14)(12) “Law enforcement officer” means a any person who
370 is elected, appointed, or employed by any municipality or the
371 state or any political subdivision thereof and:
372 (a) Who is vested with authority to bear arms and make
373 arrests and whose primary responsibility is the prevention and
374 detection of crime or the enforcement of the criminal, traffic,
375 or highway laws of the state; or
376 (b) Whose responsibility includes supervision, protection,
377 care, custody, or control of inmates within a correctional
378 institution.
379 (15) “Management and general costs” means all such costs of
380 a charitable organization or sponsor which are not identifiable
381 with a single program or fundraising activity but which are
382 indispensable to the conduct of such programs and activities and
383 the charitable organization’s or sponsor’s existence. The term
384 includes, but is not limited to, expenses for:
385 (a) The overall direction of the organization.
386 (b) Business management.
387 (c) General recordkeeping.
388 (d) Budgeting.
389 (e) Financial reporting and related expenses.
390 (f) Salaries.
391 (g) Rent.
392 (h) Supplies.
393 (i) Equipment.
394 (j) General overhead.
395 (16)(13) “Membership” means the relationship of a person to
396 an organization which that entitles her or him to the
397 privileges, professional standing, honors, or other direct
398 benefit of the organization in addition to the right to vote,
399 elect officers, and hold office in the organization.
400 (17)(14) “Owner” means a any person who has a direct or
401 indirect interest in any professional fundraising consultant or
402 professional solicitor.
403 (18)(15) “Parent organization” means that part of a
404 charitable organization or sponsor which coordinates,
405 supervises, or exercises control over policy, fundraising, and
406 expenditures or assists or advises one or more of the
407 organization’s chapters, branches, or affiliates in this state.
408 (19)(16) “Person” means an any individual, organization,
409 trust, foundation, group, association, entity, partnership,
410 corporation, society, or any combination thereof of them.
411 (20)(17) “Professional fundraising consultant” means a any
412 person who is retained by a charitable organization or sponsor
413 for a fixed fee or rate under a written agreement to plan,
414 manage, conduct, carry on, advise, consult, or prepare material
415 for a solicitation of contributions in this state, but who does
416 not solicit contributions or employ, procure, or engage any
417 compensated person to solicit contributions and who does not at
418 any time have custody or control of contributions. A bona fide
419 volunteer or bona fide employee or salaried officer of a
420 charitable organization or sponsor maintaining a permanent
421 establishment in this state is not a professional fundraising
422 consultant. An attorney, investment counselor, or banker who
423 advises an individual, corporation, or association to make a
424 charitable contribution is not a professional fundraising
425 consultant as the result of such advice.
426 (21)(18) “Professional solicitor” means a any person who,
427 for compensation, performs for a charitable organization or
428 sponsor any service in connection with which contributions are
429 or will be solicited in, or from a location in, this state by
430 the compensated person or by any person it employs, procures, or
431 otherwise engages, directly or indirectly, to solicit
432 contributions, or a person who plans, conducts, manages, carries
433 on, advises, consults, whether directly or indirectly, in
434 connection with the solicitation of contributions for or on
435 behalf of a charitable organization or sponsor, but who does not
436 qualify as a professional fundraising consultant. A bona fide
437 volunteer or bona fide employee or salaried officer of a
438 charitable organization or sponsor maintaining a permanent
439 establishment in this state is not a professional solicitor. An
440 attorney, investment counselor, or banker who advises an
441 individual, corporation, or association to make a charitable
442 contribution is not a professional solicitor as the result of
443 such advice.
444 (22) “Program service costs” means all expenses incurred
445 primarily to accomplish the charitable organization or sponsor’s
446 stated purposes. The term does not include fundraising costs.
447 (23)(19) “Religious institution” means any church,
448 ecclesiastical or denominational organization, or established
449 physical place for worship in this state at which nonprofit
450 religious services and activities are regularly conducted and
451 carried on, and includes those bona fide religious groups which
452 do not maintain specific places of worship. The term “Religious
453 institution” also includes any separate group or corporation
454 that which forms an integral part of a religious institution
455 that which is exempt from federal income tax under the
456 provisions of s. 501(c)(3) of the Internal Revenue Code, that is
457 or qualifies as being exempt from filing an annual tax return
458 under the provisions of 26 U.S.C. s. 6033, and that which is not
459 primarily supported by funds solicited outside its own
460 membership or congregation.
461 (24)(20) “Solicitation” means a request, directly or
462 indirectly, for money, property, financial assistance, or any
463 other thing of value on the plea or representation that such
464 money, property, financial assistance, or other thing of value
465 or a portion of it will be used for a charitable or sponsor
466 purpose or will benefit a charitable organization or sponsor.
467 The term “Solicitation” includes, but is not limited to, the
468 following methods of requesting or securing the promise, pledge,
469 or grant of money, property, financial assistance, or any other
470 thing of value:
471 (a) Making any oral or written request;
472 (b) Making any announcement to the press, on radio or
473 television, by telephone or telegraph, or by any other
474 communication device concerning an appeal or campaign by or for
475 any charitable organization or sponsor or for any charitable or
476 sponsor purpose;
477 (c) Distributing, circulating, posting, or publishing any
478 handbill, written advertisement, or other publication that
479 directly or by implication seeks to obtain any contribution; or
480 (d) Selling or offering or attempting to sell any
481 advertisement, advertising space, book, card, coupon, chance,
482 device, magazine, membership, merchandise, subscription,
483 sponsorship, flower, admission, ticket, food, or other service
484 or tangible good, item, or thing of value, or any right of any
485 description in connection with which any appeal is made for any
486 charitable organization or sponsor or charitable or sponsor
487 purpose, or when the name of any charitable organization or
488 sponsor is used or referred to in any such appeal as an
489 inducement or reason for making the sale or when, in connection
490 with the sale or offer or attempt to sell, any statement is made
491 that all or part of the proceeds from the sale will be used for
492 any charitable or sponsor purpose or will benefit any charitable
493 organization or sponsor.
494
495 A solicitation is considered as having taken place whether or
496 not the person making the solicitation receives any
497 contribution. A solicitation does not occur when a person
498 applies for a grant or an award to the government or to an
499 organization that is exempt from federal income taxation under
500 s. 501(a) of the Internal Revenue Code and described in s.
501 501(c) of the Internal Revenue Code and is duly registered with
502 the department.
503 (25)(21) “Sponsor” means a group or person that which is or
504 holds itself out to be soliciting contributions by the use of
505 any name that which implies that the group or person is in any
506 way affiliated with or organized for the benefit of emergency
507 service employees or law enforcement officers and the group or
508 person which is not a charitable organization. The term includes
509 a chapter, branch, or affiliate that which has its principal
510 place of business outside the state, if such chapter, branch, or
511 affiliate solicits or holds itself out to be soliciting
512 contributions in this state.
513 (26)(22) “Sponsor purpose” means any program or endeavor
514 performed to benefit emergency service employees or law
515 enforcement officers.
516 (27)(23) “Sponsor sales promotion” means an advertising or
517 sales campaign conducted by a commercial co-venturer who
518 represents that the purchase or use of goods or services offered
519 by the commercial co-venturer will be used for a sponsor purpose
520 or donated to a sponsor. The provision of advertising services
521 to a sponsor does not, in itself, constitute a sponsor sales
522 promotion.
523 Section 4. Subsection (1), paragraphs (a) and (g) of
524 subsection (2), subsection (3), paragraph (b) of subsection (4),
525 and subsections (7) and (8) of section 496.405, Florida
526 Statutes, are amended, and subsections (9) and (10) are added to
527 that section, to read:
528 496.405 Registration statements by charitable organizations
529 and sponsors.—
530 (1)(a) A charitable organization or sponsor, unless
531 exempted pursuant to s. 496.406, which intends to solicit
532 contributions in this state by any means or have funds solicited
533 on its behalf by any other person, charitable organization,
534 sponsor, commercial co-venturer, or professional solicitor, or
535 that participates in a charitable sales promotion or sponsor
536 sales promotion, must, before prior to engaging in any of these
537 activities, file an initial registration statement, and a
538 renewal statement annually thereafter, with the department.
539 (a)(b) Except as provided in paragraph (b), any changes in
540 the information submitted on the initial registration statement
541 or the last renewal statement must be updated annually on a
542 renewal statement provided by the department on or before the
543 date that marks 1 year after the date the department approved
544 the initial registration statement as provided in this section.
545 The department shall annually provide a renewal statement to
546 each registrant by mail or by electronic mail at least 30 days
547 before the renewal date.
548 (b) Any changes to the information submitted to the
549 department pursuant to paragraph (2)(d) on the initial
550 registration statement or the last renewal statement must be
551 reported to the department on a form prescribed by the
552 department within 10 days after the change occurs.
553 (c) A charitable organization or sponsor that is required
554 to file an initial registration statement or annual renewal
555 statement may not, before prior to approval of its statement by
556 the department in accordance with subsection (7), solicit
557 contributions or have contributions solicited on its behalf by
558 any other person, charitable organization, sponsor, commercial
559 co-venturer, or professional solicitor, or participate in a
560 charitable sales promotion or sponsor sales promotion.
561 (d) For good cause shown, the department may extend the
562 time for the filing of an annual renewal statement or financial
563 report for a period not to exceed 60 days, during which time the
564 previous registration remains in effect.
565 (d)(e) In no event shall The registration of a charitable
566 organization or sponsor may not continue in effect and shall
567 expire without further action of the department:
568 1. After the date the charitable organization or sponsor
569 should have filed, but failed to file, its renewal statement
570 financial report in accordance with this section.
571 2. For failure to provide a financial statement within any
572 extension period provided under and s. 496.407. The organization
573 may not file a renewal statement until it has filed the required
574 financial report with the department.
575 (2) The initial registration statement must be submitted on
576 a form prescribed by the department, signed by an authorized
577 official of the charitable organization or sponsor who shall
578 certify that the registration statement is true and correct, and
579 include the following information or material:
580 (a) A copy of the financial statement report or Internal
581 Revenue Service Form 990 and all attached schedules or Internal
582 Revenue Service Form 990-EZ and Schedule O required under s.
583 496.407 for the immediately preceding fiscal year. A newly
584 organized charitable organization or sponsor with no financial
585 history must file a budget for the current fiscal year.
586 (g) The following information must be filed with the
587 initial registration statement and must be updated when any
588 change occurs in the information that was previously filed with
589 the initial registration statement:
590 1. The principal street address and telephone number of the
591 charitable organization or sponsor and the street address and
592 telephone numbers of any offices in this state or, if the
593 charitable organization or sponsor does not maintain an office
594 in this state, the name, street address, and telephone number of
595 the person who that has custody of its financial records. The
596 parent organization that files a consolidated registration
597 statement on behalf of its chapters, branches, or affiliates
598 must additionally provide the street addresses and telephone
599 numbers of all such locations in this state.
600 2. The names and street addresses of the officers,
601 directors, trustees, and the principal salaried executive
602 personnel.
603 3. The date when the charitable organization’s or sponsor’s
604 fiscal year ends.
605 4. A list or description of the major program activities.
606 5. The names, street addresses, and telephone numbers of
607 the individuals or officers who have final responsibility for
608 the custody of the contributions and who will be responsible for
609 the final distribution of the contributions.
610 (3) Each chapter, branch, or affiliate of a parent
611 organization that is required to register under this section
612 must either file a separate registration statement and financial
613 statement report or must report the required information to its
614 parent organization, which shall then file, on a form prescribed
615 by the department, a consolidated registration statement for the
616 parent organization and its Florida chapters, branches, and
617 affiliates. A consolidated registration statement filed by a
618 parent organization must include or be accompanied by financial
619 statements reports as specified in s. 496.407 for the parent
620 organization and each of its Florida chapters, branches, and
621 affiliates that solicited or received contributions during the
622 preceding fiscal year. However, if all contributions received by
623 chapters, branches, or affiliates are remitted directly into a
624 depository account that which feeds directly into the parent
625 organization’s centralized accounting system from which all
626 disbursements are made, the parent organization may submit one
627 consolidated financial statement report on a form prescribed by
628 the department. The consolidated financial statement must
629 reflect the activities of each chapter, branch, or affiliate of
630 the parent organization, including all contributions received in
631 the name of each chapter, branch, or affiliate; all payments
632 made to each chapter, branch, or affiliate; and all
633 administrative fees assessed to each chapter, branch, or
634 affiliate.
635 (4)
636 (b) A charitable organization or sponsor that which fails
637 to file a registration statement by the due date may be assessed
638 an additional fee for such late filing. The late filing fee is
639 shall be $25 for each month or part of a month after the date on
640 which the annual renewal statement was and financial report were
641 due to be filed with the department.
642 (7)(a) The department must examine each initial
643 registration statement or annual renewal statement and the
644 supporting documents filed by a charitable organization or
645 sponsor and shall determine whether the registration
646 requirements are satisfied. Within 15 business working days
647 after its receipt of a statement, the department must examine
648 the statement, notify the applicant of any apparent errors or
649 omissions, and request any additional information the department
650 is allowed by law to require. Failure to correct an error or
651 omission or to supply additional information is not grounds for
652 denial of the initial registration or annual renewal statement
653 unless the department has notified the applicant within such
654 period of 15 business days the 15-working-day period. The
655 department must approve or deny each statement, or must notify
656 the applicant that the activity for which she or he seeks
657 registration is exempt from the registration requirement, within
658 15 business working days after receipt of the initial
659 registration or annual renewal statement or the requested
660 additional information or correction of errors or omissions. Any
661 statement that is not approved or denied within 15 business
662 working days after receipt of the requested additional
663 information or correction of errors or omissions is approved.
664 Within 7 business working days after receipt of a notification
665 that the registration requirements are not satisfied, the
666 charitable organization or sponsor may request a hearing. The
667 hearing must be held within 7 business working days after
668 receipt of the request, and any recommended order, if one is
669 issued, must be rendered within 3 business working days of the
670 hearing. The final order must then be issued within 2 business
671 working days after the recommended order. If a recommended order
672 is not issued, the final order must be issued within 5 business
673 working days after the hearing. The proceedings must be
674 conducted in accordance with chapter 120, except that the time
675 limits and provisions set forth in this subsection prevail to
676 the extent of any conflict.
677 (b) If a charitable organization or sponsor discloses
678 information specified in subparagraphs (2)(d)2.-7. in the
679 initial registration statement or annual renewal statement, the
680 time limits of this subsection are waived, and the department
681 shall process such initial registration statement or annual
682 renewal statement in accordance with the time limits in chapter
683 120. The registration of a charitable organization or sponsor
684 shall be automatically suspended for failure to disclose any
685 information specified in subparagraphs (2)(d)2.-7. until such
686 time as the required information is submitted to the department.
687 (8) A No charitable organization or sponsor, or any
688 officer, director, trustee, or employee thereof, may not shall
689 knowingly allow any officer, director, trustee, or employee of
690 the charitable organization or sponsor of its officers,
691 directors, trustees, or employees to solicit contributions on
692 behalf of such charitable organization or sponsor if such
693 officer, director, trustee, or employee has, in any state,
694 regardless of adjudication, been convicted of, or found guilty
695 of, or pled guilty or nolo contendere to, or has been
696 incarcerated within the last 10 years as a result of having
697 previously been convicted of, or found guilty of, or pled guilty
698 or nolo contendere to, any felony within the last 10 years or
699 any crime within the last 10 years involving fraud, theft,
700 larceny, embezzlement, fraudulent conversion, misappropriation
701 of property, or any crime arising from the conduct of a
702 solicitation for a charitable organization or sponsor, or has
703 been enjoined, in any state, from violating any law relating to
704 a charitable solicitation. The prohibitions in this subsection
705 also apply to any misdemeanor in another state which constitutes
706 a disqualifying felony in this state.
707 (9) The department may deny or revoke the registration of a
708 charitable organization or sponsor if the charitable
709 organization or sponsor, or any officer, director, or trustee
710 thereof, has had the right to solicit contributions revoked in
711 any state, has entered into an agreement with any state to cease
712 soliciting contributions within that state, or has been ordered
713 by any court or governmental agency to cease soliciting
714 contributions within any state.
715 (10) A charitable organization or sponsor registered under
716 this section which ends solicitation activities or participation
717 in charitable sales promotions in this state shall immediately
718 notify the department in writing of the date such activities
719 ceased.
720 Section 5. Section 496.4055, Florida Statutes, is created
721 to read:
722 496.4055 Charitable organization or sponsor board duties.—
723 (1) As used in this section, the term “conflict of interest
724 transaction” means a transaction between a charitable
725 organization or sponsor and another party in which a director,
726 officer, or trustee of the charitable organization or sponsor
727 has a direct or indirect interest. The term includes, but is not
728 limited to, the sale, lease, or exchange of property to or from
729 the charitable organization or sponsor; the lending of moneys to
730 or borrowing of moneys from the charitable organization or
731 sponsor; and the payment of compensation for services provided
732 to or from the charitable organization or sponsor.
733 (2) The board of directors, or an authorized committee
734 thereof, of a charitable organization or sponsor required to
735 register with the department under s. 496.405 shall adopt a
736 policy regarding conflict of interest transactions.
737 Section 6. Section 496.407, Florida Statutes, is amended to
738 read:
739 496.407 Financial statement report.—
740 (1) A charitable organization or sponsor that is required
741 to initially register or annually renew registration must file
742 an annual financial statement report for the immediately
743 preceding fiscal year on upon a form prescribed by the
744 department.
745 (a) The statement report must include the following:
746 1.(a) A balance sheet.
747 2.(b) A statement of support, revenue and expenses, and any
748 change in the fund balance.
749 3.(c) The names and addresses of the charitable
750 organizations or sponsors, professional fundraising consultant,
751 professional solicitors, and commercial co-venturers used, if
752 any, and the amounts received from each of them, if any.
753 4.(d) A statement of functional expenses that must include,
754 but not be limited to, expenses in the following categories:
755 a.1. Program service costs.
756 b.2. Management and general costs.
757 c.3. Fundraising costs.
758 (b) The financial statement must be audited or reviewed as
759 follows:
760 1. For a charitable organization or sponsor that receives
761 less than $500,000 in annual contributions, a compilation,
762 audit, or review of the financial statement is optional.
763 2. For a charitable organization or sponsor that receives
764 at least $500,000 but less than $1 million in annual
765 contributions, the financial statement shall be reviewed or
766 audited by an independent certified public accountant.
767 3. For a charitable organization or sponsor that receives
768 $1 million or more in annual contributions, the financial
769 statement shall be audited by an independent certified public
770 accountant.
771 (c) Audits and reviews shall be prepared in accordance with
772 the following standards:
773 1. Audits shall be prepared by an independent certified
774 public account in accordance with generally accepted auditing
775 standards, including the Statements on Auditing Standards.
776 2. Reviews shall be prepared by an independent certified
777 public accountant in accordance with the Statements on Standards
778 for Accounting and Review Services.
779 (d) Audited and reviewed financial statements must be
780 accompanied by a report signed and prepared by the independent
781 certified public accountant performing such audit or review.
782 (2) In lieu of the financial statement report described in
783 subsection (1), a charitable organization or sponsor that
784 receives less than $500,000 in annual contributions may submit a
785 copy of its Internal Revenue Service Form 990 and all attached
786 schedules filed for the preceding fiscal year, or a copy of its
787 Internal Revenue Service Form 990-EZ and Schedule O filed for
788 the preceding fiscal year.
789 (3) Upon a showing of good cause by a charitable
790 organization or sponsor, the department may extend the time for
791 the filing of a financial statement required under this section
792 by up to 180 days, during which time the previous registration
793 shall remain active. The registration shall be automatically
794 suspended for failure to file the financial statement within the
795 extension period.
796 (4) The department may require that an audit or review be
797 conducted for any financial statement submitted by any
798 charitable organization or sponsor. A charitable organization or
799 sponsor may elect to also include a financial report that has
800 been audited by an independent certified public accountant or an
801 audit with opinion by an independent certified public
802 accountant. In the event that a charitable organization or
803 sponsor elects to file an audited financial report, this
804 optional filing must be noted in the department’s annual report
805 submitted pursuant to s. 496.423.
806 Section 7. Section 496.4071, Florida Statutes, is created
807 to read:
808 496.4071 Supplemental financial disclosure.—
809 (1) If, for the immediately preceding fiscal year, a
810 charitable organization or sponsor had more than $1 million in
811 total revenue and spent less than 25 percent of the
812 organization’s total annual functional expenses on program
813 service costs, in addition to any financial statement required
814 under s. 496.407, the charitable organization or sponsor shall
815 file the following supplemental financial information on a form
816 prescribed by the department:
817 (a) The dollar amount and the percentage of total revenue
818 and charitable contributions allocated to funding each of the
819 following administrative functions:
820 1. Total salaries of all persons employed by the charitable
821 organization or sponsor.
822 2. Fundraising.
823 3. Travel expenses.
824 4. Overhead and other expenses related to managing and
825 administering the charitable organization or sponsor.
826 (b) The name of and specific sum earned by or paid to all
827 employees or consultants who earned or were paid more than
828 $100,000 during the immediately preceding fiscal year.
829 (c) The name of and specific sum paid to all service
830 providers who were paid $100,000 or more during the immediately
831 preceding fiscal year and a brief description of the services
832 provided.
833 (d) The dollar amount and percentage of total revenue and
834 charitable contributions allocated to programs.
835 (e) The details of any economic or business transactions
836 between the charitable organization or sponsor and an officer,
837 trustee, or director of the charitable organization or sponsor;
838 the immediate family of an officer, trustee, or director of the
839 charitable organization or sponsor; any entity controlled by an
840 officer, trustee, or director of the charitable organization or
841 sponsor; any entity controlled by the immediate family of an
842 officer, trustee, or director of the charitable organization or
843 sponsor; any entity that employed or engaged for consultation an
844 officer, trustee, or director of the charitable organization or
845 sponsor; and any entity that employed or engaged for
846 consultation the immediate family of an officer, trustee, or
847 director of the charitable organization or sponsor. As used in
848 this paragraph, the term “immediate family” means a parent,
849 spouse, child, sibling, grandparent, grandchild, brother-in-law,
850 sister-in-law, son-in-law, daughter-in-law, mother-in-law, or
851 father-in-law.
852 (2) The supplemental financial information required under
853 subsection (1) must be filed with the department by the
854 charitable organization or sponsor within 30 days after
855 receiving a request for such information from the department.
856 Section 8. Section 496.4072, Florida Statutes, is created
857 to read:
858 496.4072 Financial statements for specific disaster relief
859 solicitations.—
860 (1) A charitable organization or sponsor that solicits
861 contributions in this state for a charitable purpose related to
862 a specific disaster or crisis and receives at least $100,000 in
863 contributions in response to such solicitation shall file
864 quarterly disaster relief financial statements with the
865 department on a form prescribed by the department. The quarterly
866 statements must detail the contributions secured as a result of
867 the solicitation and the manner in which such contributions were
868 expended. The department shall post notice on its website of the
869 disasters and crises subject to the additional reporting
870 requirements in this section within ten days of the disaster or
871 crisis.
872 (2) The first quarterly statement shall be filed on the
873 last day of the third month following the accrual of at least
874 $100,000 in contributions after the commencement of
875 solicitations for the specific disaster or crisis. The
876 charitable organization or sponsor shall continue to file
877 quarterly statements with the department until the quarter after
878 all contributions raised in response to the solicitation are
879 expended.
880 Section 9. Subsections (4), (6), and (9) of section
881 496.409, Florida Statutes, are amended, and subsection (10) is
882 added to that section, to read:
883 496.409 Registration and duties of professional fundraising
884 consultant.—
885 (4) A professional fundraising consultant may enter into a
886 contract or agreement with a charitable organization or sponsor
887 only if the charitable organization or sponsor has complied with
888 all applicable provisions of this chapter. A Every contract or
889 agreement between a professional fundraising consultant and a
890 charitable organization or sponsor must be in writing, signed by
891 two authorized officials of the charitable organization or
892 sponsor, and filed by the professional fundraising consultant
893 with the department at least 5 days before prior to the
894 performance of any material service by the professional
895 fundraising consultant. Solicitation under the contract or
896 agreement may not begin before the filing of the contract or
897 agreement.
898 (6)(a) The department shall examine each registration
899 statement and all supporting documents filed by a professional
900 fundraising consultant and determine whether the registration
901 requirements are satisfied. If the department determines that
902 the registration requirements are not satisfied, the department
903 must notify the professional fundraising consultant within 15
904 business working days after its receipt of the registration
905 statement; otherwise the registration statement is approved.
906 Within 7 business working days after receipt of a notification
907 that the registration requirements are not satisfied, the
908 applicant may request a hearing. The hearing must be held within
909 7 business working days after receipt of the request, and any
910 recommended order, if one is issued, must be rendered within 3
911 business working days after the hearing. The final order must
912 then be issued within 2 business working days after the
913 recommended order. If there is no recommended order, the final
914 order must be issued within 5 business working days after the
915 hearing. The proceedings must be conducted in accordance with
916 chapter 120, except that the time limits and provisions set
917 forth in this subsection prevail to the extent of any conflict.
918 (b) If a professional fundraising consultant discloses
919 information specified in paragraphs (2)(e)-(g) in the initial
920 application for registration or renewal application, the
921 processing time limits of this subsection are waived and the
922 department shall process the initial application for
923 registration or the renewal application in accordance with the
924 time limits in chapter 120. The registration of a professional
925 consultant shall be automatically suspended for failure to
926 disclose any information specified in paragraphs (2)(e)-(g)
927 until such time as the required information is submitted to the
928 department.
929 (9) A No person may not act as a professional fundraising
930 consultant, and a no professional fundraising consultant, or any
931 officer, director, trustee, or employee thereof, may not shall
932 knowingly employ any officer, trustee, director, or employee, if
933 such person has, in any state, regardless of adjudication, been
934 convicted of, or found guilty of, or pled guilty or nolo
935 contendere to, or has been incarcerated within the last 10 years
936 as a result of having previously been convicted of, or found
937 guilty of, or pled guilty or nolo contendere to, any crime
938 within the last 10 years involving fraud, theft, larceny,
939 embezzlement, fraudulent conversion, or misappropriation of
940 property, or any crime arising from the conduct of a
941 solicitation for a charitable organization or sponsor, or has
942 been enjoined in any state from violating any law relating to a
943 charitable solicitation.
944 (10) The department may deny or revoke the registration of
945 a professional fundraising consultant if the professional
946 fundraising consultant, or any of its officers, directors, or
947 trustees, has had the right to solicit contributions revoked in
948 any state, has entered into an agreement with any state to cease
949 soliciting contributions within that state, or has been ordered
950 by any court or governmental agency to cease soliciting
951 contributions within any state.
952 Section 10. Present subsections (3), (5), (7), (14), and
953 (15) of section 496.410, Florida Statutes, are amended,
954 paragraphs (j), (k), and (l) are added to subsection (2) of that
955 section, paragraphs (i) through (n) are added to subsection (6)
956 of that section, and a new subsection (15) is added to that
957 section, to read:
958 496.410 Registration and duties of professional
959 solicitors.—
960 (2) Applications for registration or renewal of
961 registration must be submitted on a form prescribed by rule of
962 the department, signed by an authorized official of the
963 professional solicitor who shall certify that the report is true
964 and correct, and must include the following information:
965 (j) A list of all telephone numbers the applicant will use
966 to solicit contributions as well as the actual physical address
967 associated with each telephone number and any fictitious names
968 associated with such address.
969 (k) A copy of any script, outline, or presentation used by
970 the applicant to solicit contributions or, if such solicitation
971 aids are not used, written confirmation thereof.
972 (l) A copy of sales information or literature provided to a
973 donor or potential donor by the applicant in connection with a
974 solicitation.
975 (3) The application for registration must be accompanied by
976 a fee of $300. A professional solicitor that is a partnership or
977 corporation may register for and pay a single fee on behalf of
978 all of its partners, members, officers, directors, agents, and
979 employees. In that case, The names and street addresses of all
980 the officers, employees, and agents of the professional
981 solicitor and all other persons with whom the professional
982 solicitor has contracted to work under its direction, including
983 solicitors, must be listed in the application or furnished to
984 the department within 5 days after the date of employment or
985 contractual arrangement. Each registration is valid for 1 year
986 and. The registration may be renewed for an additional 1-year
987 period upon application to the department and payment of the
988 registration fee.
989 (5)(a) The department must examine each registration
990 statement and supporting documents filed by a professional
991 solicitor. If the department determines that the registration
992 requirements are not satisfied, the department must notify the
993 professional solicitor within 15 business working days after its
994 receipt of the registration statement; otherwise the
995 registration statement is approved. Within 7 business working
996 days after receipt of a notification that the registration
997 requirements are not satisfied, the applicant may request a
998 hearing. The hearing must be held within 7 business working days
999 after receipt of the request, and any recommended order, if one
1000 is issued, must be rendered within 3 business working days after
1001 the hearing. The final order must then be issued within 2
1002 business working days after the recommended order. If there is
1003 no recommended order, the final order must be issued within 5
1004 business working days after the hearing. The proceedings must be
1005 conducted in accordance with chapter 120, except that the time
1006 limits and provisions set forth in this subsection prevail to
1007 the extent of any conflict.
1008 (b) If a professional solicitor makes a disclosure
1009 specified in paragraphs (2)(f)-(h) in the initial application
1010 for registration or the renewal application, the processing time
1011 limits of this subsection are waived and the department shall
1012 process the initial application for registration or renewal
1013 application in accordance with the time limits in chapter 120.
1014 The registration of a professional solicitor shall be
1015 automatically suspended for failure to disclose any information
1016 specified in paragraphs (2)(f)-(h) until such time as the
1017 required information is submitted to the department.
1018 (6) No less than 15 days before commencing any solicitation
1019 campaign or event, the professional solicitor must file with the
1020 department a solicitation notice on a form prescribed by the
1021 department. The notice must be signed and sworn to by the
1022 contracting officer of the professional solicitor and must
1023 include:
1024 (i) A statement of the guaranteed minimum percentage of the
1025 gross receipts from contributions which will be remitted to the
1026 charitable organization or sponsor, if any, or, if the
1027 solicitation involves the sale of goods, services, or tickets to
1028 a fundraising event, the percentage of the purchase price which
1029 will be remitted to the charitable organization or sponsor, if
1030 any.
1031 (j) The percentage of a contribution which may be deducted
1032 as a charitable contribution under federal income tax laws.
1033 (k) A statement as to whether any owner, director, officer,
1034 trustee, or employee of the professional solicitor is related as
1035 a parent, spouse, child, sibling, grandparent, grandchild,
1036 brother-in-law, sister-in-law, son-in-law, daughter-in-law,
1037 mother-in-law, or father-in-law to:
1038 1. Another officer, director, owner, trustee, or employee
1039 of the professional solicitor.
1040 2. Any officer, director, owner, trustee, or employee of a
1041 charitable organization or sponsor under contract to the
1042 professional solicitor.
1043 3. Any supplier or vendor providing goods or services to a
1044 charitable organization or sponsor under contract to the
1045 professional solicitor.
1046 (l) The beginning and ending dates of the solicitation
1047 campaign.
1048 (m) A copy of any script, outline, or presentation used by
1049 the professional solicitor to solicit contributions for the
1050 solicitation campaign. If such aids are not used, written
1051 confirmation thereof.
1052 (n) A copy of sales information or literature provided to a
1053 donor or potential donor by the professional solicitor in
1054 connection with the solicitation campaign.
1055 (7) A professional solicitor may enter into a contract or
1056 agreement with a charitable organization or sponsor only if the
1057 charitable organization or sponsor has complied with all
1058 applicable provisions of this chapter. A Each contract or
1059 agreement between a professional solicitor and a charitable
1060 organization or sponsor for each solicitation campaign must be
1061 in writing, signed by two authorized officials of the charitable
1062 organization or sponsor, one of whom must be a member of the
1063 organization’s governing body and one of whom must be the
1064 authorized contracting officer for the professional solicitor,
1065 and contain all of the following provisions:
1066 (a) A statement of the charitable or sponsor purpose and
1067 program for which the solicitation campaign is being conducted.
1068 (b) A statement of the respective obligations of the
1069 professional solicitor and the charitable organization or
1070 sponsor.
1071 (c) A statement of the guaranteed minimum percentage of the
1072 gross receipts from contributions which will be remitted to the
1073 charitable organization or sponsor, if any, or, if the
1074 solicitation involves the sale of goods, services, or tickets to
1075 a fundraising event, the percentage of the purchase price which
1076 will be remitted to the charitable organization or sponsor, if
1077 any. Any stated percentage shall exclude any amount which the
1078 charitable organization or sponsor is to pay as fundraising
1079 costs.
1080 (d) A statement of the percentage of the gross revenue
1081 which the professional solicitor will be compensated. If the
1082 compensation of the professional solicitor is not contingent
1083 upon the number of contributions or the amount of revenue
1084 received, his or her compensation shall be expressed as a
1085 reasonable estimate of the percentage of the gross revenue, and
1086 the contract must clearly disclose the assumptions upon which
1087 the estimate is based. The stated assumptions must be based upon
1088 all of the relevant facts known to the professional solicitor
1089 regarding the solicitation to be conducted by the professional
1090 solicitor.
1091 (e) The effective and termination dates of the contract.
1092 (14) A No person may not act as a professional solicitor,
1093 and a no professional solicitor, or any officer, director,
1094 trustee, or employee thereof, may not shall, to solicit for
1095 compensation, knowingly employ any officer, trustee, director,
1096 employee, or any person with a controlling interest therein, who
1097 has, in any state, regardless of adjudication, been convicted
1098 of, or found guilty of, or pled guilty or nolo contendere to, or
1099 has been incarcerated within the last 10 years as a result of
1100 having previously been convicted of, or found guilty of, or pled
1101 guilty or nolo contendere to, a felony within the last 10 years
1102 involving fraud, theft, larceny, embezzlement, fraudulent
1103 conversion, or misappropriation of property, or any crime
1104 arising from the conduct of a solicitation for a charitable
1105 organization or sponsor, or has been enjoined in any state from
1106 violating any law relating to a charitable solicitation. The
1107 prohibitions in this subsection also apply to any misdemeanor in
1108 another state which constitutes a disqualifying felony in this
1109 state.
1110 (15) The department may deny or revoke the registration of
1111 a professional solicitor if the professional solicitor, or any
1112 of its officers, directors, trustees, or agents, has had the
1113 right to solicit contributions revoked in any state, has entered
1114 into an agreement with any state to cease soliciting
1115 contributions within that state, or has been ordered by any
1116 court or governmental agency to cease soliciting contributions
1117 within any state.
1118 (16)(15) All registration fees must be paid to the
1119 department and deposited into the General Inspection Trust Fund.
1120 Section 11. Section 496.4101, Florida Statutes, is created
1121 to read:
1122 496.4101 Licensure of professional solicitors and certain
1123 employees thereof.—
1124 (1) Each officer, director, trustee, or owner of a
1125 professional solicitor and any employee of a professional
1126 solicitor conducting telephonic solicitations must, before
1127 engaging in solicitation activities, obtain a solicitor license
1128 from the department.
1129 (2) Persons required to obtain a solicitor license under
1130 subsection (1) shall submit to the department, in such form as
1131 the department prescribes, an application for a solicitor
1132 license. The application must include the following information:
1133 (a) The true name, date of birth, unique identification
1134 number of a driver license or other valid form of
1135 identification, and home address of the applicant.
1136 (b) If the applicant, in any state, regardless of
1137 adjudication, has previously been convicted of, or found guilty
1138 of, or pled guilty or nolo contendere to, or has been
1139 incarcerated within the last 10 years as a result of having
1140 previously been convicted of, or found guilty of, or pled guilty
1141 or nolo contendere to, any crime within the last 10 years
1142 involving fraud, theft, larceny, embezzlement, fraudulent
1143 conversion, or misappropriation of property, or any crime
1144 arising from the conduct of a solicitation for a charitable
1145 organization or sponsor, or has been enjoined, in any state,
1146 from violating any law relating to a charitable solicitation.
1147 (c) If the applicant, in any state, is involved in pending
1148 litigation or has had entered against her or him an injunction,
1149 a temporary restraining order, or a final judgment or order,
1150 including a stipulated judgment or order, an assurance of
1151 voluntary compliance, cease and desist, or any similar document,
1152 in any civil or administrative action involving fraud, theft,
1153 larceny, embezzlement, fraudulent conversion, or
1154 misappropriation of property, or has been enjoined from
1155 violating any law relating to a charitable solicitation.
1156 (3)(a) Each applicant shall submit a complete set of his or
1157 her fingerprints with the initial application for a solicitor
1158 license and a fee equal to the federal and state costs for
1159 fingerprint processing and fingerprint retention. The state cost
1160 for fingerprint processing is that authorized in s.
1161 943.053(3)(b) for records provided to persons or entities other
1162 than those specified as exceptions therein.
1163 (b) The department shall forward the fingerprints to the
1164 Department of Law Enforcement for state processing, and the
1165 Department of Law Enforcement shall forward them to the Federal
1166 Bureau of Investigation for national processing.
1167 (c) All fingerprints submitted to the Department of Law
1168 Enforcement as required under this subsection shall be retained
1169 by the Department of Law Enforcement as provided under s.
1170 943.05(2)(g) and (h) and enrolled in the Federal Bureau of
1171 Investigation’s national retained print arrest notification
1172 program. Fingerprints shall not be enrolled in the national
1173 retained print arrest notification program until the Department
1174 of Law Enforcement begins participation with the Federal Bureau
1175 of Investigation. Arrest fingerprints will be searched against
1176 the retained prints by the Department of Law Enforcement and the
1177 Federal Bureau of Investigation.
1178 (d) For any renewal of the applicant’s license, the
1179 department shall request the Department of Law Enforcement to
1180 forward the retained fingerprints of the applicant to the
1181 Federal Bureau of Investigation unless the applicant is enrolled
1182 in the national retained print arrest notification program
1183 described in paragraph (c). The fee for the national criminal
1184 history check will be paid as part of the renewal fee to the
1185 department and forwarded by the department to Department of Law
1186 Enforcement. If the applicant’s fingerprints are retained in the
1187 national retained print arrest notification program, the
1188 applicant shall pay the state and national retention fee to the
1189 department which will forward the fee to the Department of Law
1190 Enforcement.
1191 (e) The department shall notify the Department of Law
1192 Enforcement regarding any person whose fingerprints have been
1193 retained but who is no longer licensed under this chapter.
1194 (f) The department shall screen background results to
1195 determine if an applicant meets licensure requirements.
1196 (4) A solicitor license must be renewed annually by the
1197 submission of a renewal application. A solicitor license that is
1198 not renewed expires without further action by the department.
1199 (5) Each applicant for a solicitor license shall remit a
1200 license fee of $100 to the department at the time the initial
1201 application is filed with the department and an annual renewal
1202 fee of $100 thereafter. All fees collected, less the cost of
1203 administration, shall be deposited into the General Inspection
1204 Trust Fund.
1205 (6) Any material change to the information submitted to the
1206 department in the initial application or renewal application for
1207 a solicitor license shall be reported to the department by the
1208 applicant or licensee within 10 days after the change occurs.
1209 The applicant or licensee shall also remit a fee in the amount
1210 of $10 for processing the change to the initial or renewal
1211 application.
1212 (7) It is a violation of this chapter:
1213 (a) For an applicant to provide inaccurate or incomplete
1214 information to the department in the initial or renewal
1215 application for a solicitor license.
1216 (b) For any person specified in subsection (1) to fail to
1217 maintain a solicitor license as required by this section.
1218 (c) For a professional solicitor to allow, require, permit,
1219 or authorize an employee without an active solicitor license
1220 issued under this section to conduct telephonic solicitations.
1221 (8) The department shall adopt rules that allow certain
1222 applicants to engage in solicitation activities on an interim
1223 basis until such time as a solicitor license is granted or
1224 denied.
1225 (9) The department may deny or revoke any solicitor license
1226 if the applicant or licensee has had the right to solicit
1227 contributions revoked in any state, has entered into an
1228 agreement with any state to cease soliciting contributions
1229 within that state, has been ordered by any court or governmental
1230 agency to cease soliciting contributions within any state, or is
1231 subject to any disqualification specified in s. 496.410(14).
1232 Section 12. Subsections (2) and (3) of section 496.411,
1233 Florida Statutes, are amended to read:
1234 496.411 Disclosure requirements and duties of charitable
1235 organizations and sponsors.—
1236 (2) A charitable organization or sponsor soliciting in this
1237 state must include all of the following disclosures at the point
1238 of solicitation:
1239 (a) The name of the charitable organization or sponsor and
1240 state of the principal place of business of the charitable
1241 organization or sponsor;
1242 (b) A description of the purpose or purposes for which the
1243 solicitation is being made;
1244 (c) Upon request, the name and either the address or
1245 telephone number of a representative to whom inquiries could be
1246 addressed;
1247 (d) Upon request, the amount of the contribution which may
1248 be deducted as a charitable contribution under federal income
1249 tax laws;
1250 (e) Upon request, the source from which a written financial
1251 statement may be obtained. Such financial statement must be for
1252 the immediate preceding past fiscal year and must be consistent
1253 with the annual financial statement report filed under s.
1254 496.407. The written financial statement must be provided within
1255 14 days after the request and must state the purpose for which
1256 funds are raised, the total amount of all contributions raised,
1257 the total costs and expenses incurred in raising contributions,
1258 the total amount of contributions dedicated to the stated
1259 purpose or disbursed for the stated purpose, and whether the
1260 services of another person or organization have been contracted
1261 to conduct solicitation activities.
1262 (3) Every charitable organization or sponsor that which is
1263 required to register under s. 496.405 or is exempt under s.
1264 496.406(1)(d) shall must conspicuously display in capital
1265 letters the following statement on every printed solicitation,
1266 written confirmation, receipt, or reminder of a contribution:
1267
1268 “A COPY OF THE OFFICIAL REGISTRATION AND FINANCIAL
1269 INFORMATION MAY BE OBTAINED FROM THE DIVISION OF
1270 CONSUMER SERVICES BY CALLING TOLL-FREE WITHIN THE
1271 STATE. REGISTRATION DOES NOT IMPLY ENDORSEMENT,
1272 APPROVAL, OR RECOMMENDATION BY THE STATE.”
1273
1274 The statement must include a toll-free number and website for
1275 the division which that can be used to obtain the registration
1276 information. If When the solicitation consists of more than one
1277 piece, the statement must be displayed prominently in the
1278 solicitation materials. If the solicitation occurs through a
1279 website, the statement must be conspicuously displayed on the
1280 webpage where donations are requested.
1281 Section 13. Subsection (1) of section 496.412, Florida
1282 Statutes, is amended to read:
1283 496.412 Disclosure requirements and duties of professional
1284 solicitors.—
1285 (1) A professional solicitor must comply with and be
1286 responsible for complying or causing compliance with the
1287 following disclosures:
1288 (a) Before Prior to orally requesting a contribution, or
1289 contemporaneously with a written request for a contribution, a
1290 professional solicitor must clearly disclose:
1291 1. The name of the professional solicitor as on file with
1292 the department.
1293 2. If the individual acting on behalf of the professional
1294 solicitor identifies himself or herself by name, the
1295 individual’s legal name.
1296 3. The name and state of the principal place of business of
1297 the charitable organization or sponsor and a description of how
1298 the contributions raised by the solicitation will be used for a
1299 charitable or sponsor purpose; or, if there is no charitable
1300 organization or sponsor, a description as to how the
1301 contributions raised by the solicitation will be used for a
1302 charitable or sponsor purpose.
1303 (b) In the case of a solicitation campaign conducted
1304 orally, whether by telephone or otherwise, any written
1305 confirmation, receipt, or reminder sent to any person who has
1306 contributed or has pledged to contribute, shall include a clear
1307 disclosure of the information required by paragraph (a).
1308 (c) In addition to the information required by paragraph
1309 (a), any written confirmation, receipt, or reminder of
1310 contribution made pursuant to an oral solicitation and any
1311 written solicitation shall conspicuously state in capital
1312 letters:
1313
1314 “A COPY OF THE OFFICIAL REGISTRATION AND FINANCIAL
1315 INFORMATION MAY BE OBTAINED FROM THE DIVISION OF
1316 CONSUMER SERVICES BY CALLING TOLL-FREE WITHIN THE
1317 STATE. REGISTRATION DOES NOT IMPLY ENDORSEMENT,
1318 APPROVAL, OR RECOMMENDATION BY THE STATE.”
1319
1320 The statement must include a toll-free number and website for
1321 the division which that can be used to obtain the registration
1322 information. If When the solicitation consists of more than one
1323 piece, the statement must be displayed prominently in the
1324 solicitation materials. If the solicitation occurs on a website,
1325 the statement must be conspicuously displayed on the webpage
1326 where donations are requested.
1327 (d) If requested by the person being solicited, the
1328 professional solicitor shall inform that person in writing,
1329 within 14 days after of the request, of the fixed percentage of
1330 the gross revenue or the reasonable estimate of the percentage
1331 of the gross revenue that the charitable organization or sponsor
1332 will receive as a benefit from the solicitation campaign or
1333 shall immediately notify the person being solicited that the
1334 information is available on the department’s website or by
1335 calling the division’s toll-free number.
1336 (e) If requested by the person being solicited, the
1337 professional solicitor shall inform that person in writing,
1338 within 14 days after of the request, of the percentage of the
1339 contribution which may be deducted as a charitable contribution
1340 under federal income tax laws or shall immediately notify the
1341 person being solicited that the information is available on the
1342 department’s website or by calling the division’s toll-free
1343 number.
1344 Section 14. Section 496.4121, Florida Statutes, is created
1345 to read:
1346 496.4121 Collection receptacles used for donations.—
1347 (1) As used in this section, the term “collection
1348 receptacle“ means a receptacle used to collect donated clothing,
1349 household items, or other goods for resale.
1350 (2) A collection receptacle must display a permanent sign
1351 or label on each side which contains the following information
1352 printed in letters that are at least 3 inches in height and no
1353 less than one-half inch in width, in a color that contrasts with
1354 the color of the collection receptacle:
1355 (a) For collection receptacles used by a person required to
1356 register under this chapter, the name, business address,
1357 telephone number, and registration number of the charitable
1358 organization or sponsor for whom the solicitation is made.
1359 (b) For collection receptacles placed or maintained in
1360 public view by a person not required to register under this
1361 chapter or by a person not claiming an exemption pursuant to
1362 496.406, the name, telephone number, and physical address of the
1363 business conducting the solicitation and the statement: “This is
1364 not a charity. Donations made here support a for-profit business
1365 and are not tax deductible.”
1366 (3) Upon request, a charitable organization or sponsor
1367 using a collection receptacle must provide the donor with
1368 documentation of its tax-exempt status and the registration
1369 issued under this chapter.
1370 Section 15. Subsection (2) of section 496.415, Florida
1371 Statutes, is amended, and subsection (18) is added to that
1372 section, to read:
1373 496.415 Prohibited acts.—It is unlawful for any person in
1374 connection with the planning, conduct, or execution of any
1375 solicitation or charitable or sponsor sales promotion to:
1376 (2) Knowingly Submit false, misleading, or inaccurate
1377 information in a document that is filed with the department,
1378 provided to the public, or offered in response to a request or
1379 investigation by the department, the Department of Legal
1380 Affairs, or the state attorney.
1381 (18) Fail to remit to a charitable organization or sponsor
1382 the disclosed guaranteed minimum percentage of gross receipts
1383 from contributions as required under s. 496.410(7)(c) or, if the
1384 solicitation involved the sale of goods, services, or tickets to
1385 a fundraising event, the percentage of the purchase price as
1386 agreed in the contract or agreement as required under this
1387 chapter.
1388 Section 16. Subsection (5) of section 496.419, Florida
1389 Statutes, is amended to read:
1390 496.419 Powers of the department.—
1391 (5) Upon a finding as set forth in subsection (4), the
1392 department may enter an order doing one or more of the
1393 following:
1394 (a) Issuing a notice of noncompliance pursuant to s.
1395 120.695;
1396 (b) Issuing a cease and desist order that directs that the
1397 person cease and desist specified fundraising activities;
1398 (c) Refusing to register or canceling or suspending a
1399 registration;
1400 (d) Placing the registrant on probation for a period of
1401 time, subject to such conditions as the department may specify;
1402 (e) Canceling an exemption granted under s. 496.406; and
1403 (f) Except as provided in paragraph (g), imposing an
1404 administrative fine not to exceed $5,000 $1,000 for each act or
1405 omission that which constitutes a violation of ss. 496.401
1406 496.424 or s. 496.426 or a rule or order. With respect to a s.
1407 501(c)(3) organization, the penalty imposed pursuant to this
1408 subsection may shall not exceed $500 per violation for failure
1409 to register under s. 496.405 or file for an exemption under s.
1410 496.406(2). The penalty shall be the entire amount per violation
1411 and is not to be interpreted as a daily penalty; and
1412 (g) Imposing an administrative fine not to exceed $10,000
1413 for a violation of this chapter that involves fraud or
1414 deception.
1415 Section 17. Section 496.4191, Florida Statutes, is created
1416 to read:
1417 496.4191 Additional penalty; immediate suspension.—Upon
1418 notification and subsequent written verification by a law
1419 enforcement agency, a court, a state attorney, or the Florida
1420 Department of Law Enforcement, the department shall immediately
1421 suspend a registration or the processing of an application for a
1422 registration if the registrant, applicant, or any officer or
1423 director of the registrant or applicant is formally charged with
1424 a crime involving fraud, theft, larceny, embezzlement, or
1425 fraudulent conversion or misappropriation of property or any
1426 crime arising from the conduct of a solicitation for a
1427 charitable organization or sponsor until final disposition of
1428 the case or removal or resignation of that officer or director.
1429 Section 18. Section 496.430, Florida Statutes, is created
1430 to read:
1431 496.430 Disqualification for certain tax exemptions.—
1432 (1) The department may issue an order to disqualify a
1433 charitable organization or sponsor from receiving any sales tax
1434 exemption certificate issued by the Department of Revenue if the
1435 department finds, based up on the average of functional expenses
1436 and program service costs provided to the department pursuant to
1437 s. 496.407 for the 3 most recent fiscal years, that the
1438 charitable organization or sponsor has failed to expend at least
1439 25 percent of its total annual functional expenses on program
1440 service costs.
1441 (2) A charitable organization or sponsor may appeal a
1442 disqualification order by requesting a hearing within 21 days
1443 after notification from the department that it has issued a
1444 disqualification order under this section. The hearing must be
1445 conducted in accordance with chapter 120.
1446 (3) Notwithstanding a finding under subsection (1) that a
1447 charitable organization or sponsor has failed to expend at least
1448 25 percent of its total annual functional expenses on program
1449 service costs, the department may decline to issue a
1450 disqualification order if the charitable organization or sponsor
1451 establishes:
1452 (a) That payments were made to affiliates which should be
1453 considered in calculating the program service costs;
1454 (b) That revenue was accumulated for a specific program
1455 purpose consistent with representations in solicitations; or
1456 (c) Such other mitigating circumstances as are defined by
1457 rule of the department.
1458 (4) A disqualification order issued by the department
1459 pursuant to this section is effective for at least 1 year after
1460 such order becomes final and shall remain effective until such
1461 time as the department receives sufficient evidence from the
1462 disqualified charitable organization or sponsor which
1463 demonstrates it expends at least 25 percent of its total annual
1464 functional expenses on program service costs.
1465 (a) The charitable organization or sponsor may not submit
1466 such evidence to the department sooner than 1 year after the
1467 disqualification order becomes final and may not submit such
1468 information more than once each year for consideration by the
1469 department.
1470 (b) The department shall also consider any financial
1471 statement that was submitted by the charitable organization or
1472 sponsor to the department pursuant to s. 496.407 after the
1473 disqualification order became final.
1474 (5) The department shall provide a disqualification order
1475 to the Department of Revenue within 30 days after such order
1476 becomes final. A final disqualification order is conclusive as
1477 to the charitable organization’s or sponsor’s entitlement to any
1478 sales tax exemption. The Department of Revenue shall revoke or
1479 refuse to grant a sales tax exemption certificate to a
1480 charitable organization or sponsor subject to a final
1481 disqualification order within 30 days after receiving such
1482 disqualification order. A charitable organization or sponsor may
1483 not appeal or challenge the revocation or denial of a sales tax
1484 exemption certificate by the Department of Revenue if such
1485 revocation or denial is based upon a final disqualification
1486 order issued pursuant to this section.
1487 (6) This section does not apply to a charitable
1488 organization or sponsor that:
1489 (a) Is not required to register under this chapter with the
1490 department; or
1491 (b) Has been in existence for less than 4 years.
1492 Section 19. Paragraph (a) of subsection (3) of section
1493 741.0305, Florida Statutes, is amended to read:
1494 741.0305 Marriage fee reduction for completion of
1495 premarital preparation course.—
1496 (3)(a) All individuals electing to participate in a
1497 premarital preparation course shall choose from the following
1498 list of qualified instructors:
1499 1. A psychologist licensed under chapter 490.
1500 2. A clinical social worker licensed under chapter 491.
1501 3. A marriage and family therapist licensed under chapter
1502 491.
1503 4. A mental health counselor licensed under chapter 491.
1504 5. An official representative of a religious institution
1505 which is recognized under s. 496.404(23) 496.404(19), if the
1506 representative has relevant training.
1507 6. Any other provider designated by a judicial circuit,
1508 including, but not limited to, school counselors who are
1509 certified to offer such courses. Each judicial circuit may
1510 establish a roster of area course providers, including those who
1511 offer the course on a sliding fee scale or for free.
1512 Section 20. Section 496.431, Florida Statutes, is created
1513 to read:
1514 496.431 Severability.—If any provision of this chapter or
1515 its application to any person or circumstance is held invalid,
1516 the invalidity does not affect other provisions or applications
1517 of this chapter which can be given effect without the invalid
1518 provision or application, and to this end the provisions of this
1519 chapter are severable.
1520 Section 21. For the 2014-2015 fiscal year, there is
1521 appropriated to the Department of Agriculture and Consumer
1522 Services, the sums of $235,352 in recurring and $239,357 in
1523 nonrecurring funds from the General Inspection Trust Fund, and 4
1524 full-time equivalent positions with associated salary rate of
1525 $143,264 are authorized for the purpose of implementing this
1526 act.
1527 Section 22. This act shall take effect July 1, 2014.
