Bill Text: HI HB992 | 2025 | Regular Session | Amended
Bill Title: Relating To Solicitation Of Funds From The Public.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2025-02-14 - Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with none voting aye with reservations; none voting no (0) and Representative(s) Cochran, Matayoshi, Poepoe, Ward excused (4). [HB992 Detail]
Download: Hawaii-2025-HB992-Amended.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
992 |
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THIRTY-THIRD LEGISLATURE, 2025 |
H.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO SOLICITATION OF FUNDS FROM THE PUBLIC.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
"§467B- Platform charities. (a)
Every platform charity not exempted by section 467B-11.5 shall register
with the department as a platform charity before conducting activities
regulated by this chapter in accordance with section 467B-2.1. A platform charity shall be subject to the
annual financial report and annual filing fee requirements of section
467B-6.5. Each report shall:
(1) Enable the department to ascertain
whether charitable funds have been properly solicited, received, held,
controlled, or distributed;
(2) Provide
information on the number of donations made, amount raised, length of time for
distributing donations or grants of recommended donations, fees charged by or
through a charitable fundraising platform or platform charity, and names of
recipient charitable organizations or other charitable organizations that were
sent or have not yet been sent donations or grants of recommended donations;
and
(3) Protect from
disclosure any personally identifiable information of donors or other users of
the charitable fundraising platform.
(b) No platform
charity shall facilitate acts of solicitation on a charitable fundraising
platform unless the platform charity is in good standing.
(c) A platform charity shall only solicit, permit,
or otherwise enable solicitations or receive, control, or distribute funds from
donations for purported charitable purposes for recipient charitable
organizations or other charitable organizations in good standing. To determine good standing of a recipient
charitable organization or other charitable organization, a platform charity
may rely on information displayed on the department's registry.
(d) With respect to purported charitable purposes,
a platform charity that performs, permits, or otherwise enables solicitation
activities shall, before a person can complete a donation or select or change a
recipient charitable organization, provide conspicuous disclosures that reduce
the likelihood of deception, confusion, or misunderstanding, including:
(1) A
statement that donations are made to the charitable fundraising platform,
platform charity, recipient charitable organization, or person engaging in
peer-to-peer charitable fundraising, whichever is applicable;
(2) A
statement that a recipient charitable organization may not receive donations or
grants or recommended donations, with an explanation identifying the most
pertinent reasons that a recipient charitable organization may not receive the
funds; provided that the explanation of the most pertinent reasons that a
recipient charitable organization may not receive the funds may be provided
through a conspicuous hyperlink, so long as the disclosure is conspicuous when
the hyperlink is selected; provided further that this paragraph shall not apply
when there are no circumstances under which a recipient charitable organization
may not receive the funds;
(3) The
maximum length of time it will take to send the donation or a grant of the
recommended donation to a recipient charitable organization with an explanation
of the time needed, unless the donation is sent contemporaneously to a
recipient charitable organization after the donation is made; provided that the
explanation as to the maximum length of time may be provided through a
conspicuous hyperlink, so long as the disclosure is conspicuous when the
hyperlink is selected;
(4) The
fees or any other amounts that will be deducted from or added to the donation
or a grant of the recommended donation and that are charged or retained by the
charitable fundraising platform, platform charity, or any other partnering
vendor, other than any applicable digital payment processing fees; and
(5) A
statement as to the tax deductibility of the donation.
(e) Each platform charity that solicits, permits,
or otherwise enables solicitations shall obtain the written consent of a
recipient charitable organization before using the recipient charitable
organization's name in a solicitation for a purported charitable purpose. Written consent shall be provided directly to
the platform charity or may be provided to a platform charity by one authorized
officer, director, trustee, or other duly authorized representative of the
recipient charitable organization and may apply to multiple affiliated
charitable fundraising platforms expressly identified in the agreement
providing consent.
(f) After a donor contributes donations and with
respect to purported charitable purposes, the platform charity shall promptly
provide a tax donation receipt to the donor in a manner provided by section
170(f)(8) of the Internal Revenue Code of 1986, as amended.
(g) The platform charity shall not divert or
otherwise misuse any donations made for purported charitable purposes that the
platform charity receives through solicitation on the charitable fundraising
platform and shall hold the donations in a separate account or accounts from
other funds belonging to the platform charity. The platform charity shall promptly ensure
that donations and grants of recommended donations are sent to the recipient
charitable organizations with an accounting of any fees assessed for processing
the funds, and in accordance with any rules adopted by the department pursuant
to chapter 91.
(h) If a platform charity enters into any contract
with a vendor to solicit, receive, control, process, distribute, and otherwise
account for donations on the charitable fundraising platform, the contract
shall be available for inspection by the department.
(i) As used in this section, "good
standing" means that a platform charity, recipient charitable
organization, or other charitable organization is not prohibited from
soliciting or operating in the State by the department."
SECTION 2. Section
467B-1, Hawaii Revised Statutes, is amended as follows:
1. By amending the
definition of "commercial co-venturer" to read:
""Commercial co-venturer" means a
person who, for profit, is regularly and primarily engaged in trade or commerce
other than in connection with soliciting for charitable organizations or
charitable purposes, and who conducts
charitable sales promotions. A person
who meets the definition of both a commercial co-venturer and a charitable
fundraising platform shall be considered a commercial co-venturer when the acts
of solicitation through an internet website, service, or other platform to
persons in this State are for six or fewer recipient charitable organizations
per calendar year, and the commercial co-venturer complies with section
467B-5.5."
2. By amending the
definition of "owner" to read:
""Owner" means any person who has a direct or
indirect interest in any professional fundraising counsel[,] or
professional solicitor[, charitable fundraising platform, or platform
charity]."
3. By amending the
definition of "platform charity" to read:
""Platform charity" means a charitable
organization that facilitates acts of solicitation on a charitable fundraising
platform, which includes either of the following and any similar activity:
(1) [Solicits] Soliciting
donations through a charitable fundraising platform for itself from donors who
use the charitable fundraising platform with the implied or express
representation that the platform charity may grant donations to recipient
charitable organizations; or
(2) [Grants] Granting
funds to recipient charitable organizations based on purchases made or other
activity performed by persons who use a charitable fundraising platform.
"Platform
charity" does not include a sponsoring organization of donor advised funds
that solicits donors to open donor advised fund accounts or similar accounts,
receives recommendations from donors on charitable organizations that may
receive grants of funds previously contributed to the sponsoring organization
for a donor's donor advised fund account, and the sponsoring organization does
not list or reference by name one or more recipient charitable organizations
for solicitation purposes on its platform for persons who do not have advisory
privileges with respect to the granting of funds in a donor advised fund of the
sponsoring organization. A person who
meets the definition of both a platform charity and charitable fundraising
platform shall be deemed a charitable fundraising platform."
SECTION 3. Section
467B-1.5, Hawaii Revised Statutes, is amended to read as follows:
"§467B-1.5 Professional
solicitors[,] and charitable fundraising platforms[, platform
charities]; required disclosures.
(a) Every professional solicitor,
charitable fundraising platform, [platform charity,] and every employee
or agent thereof, who solicits contributions from a prospective donor or
contributor in this State shall at the outset of any oral or written request
for a contribution:
(1) Identify themselves by
their true surname and first name, and the name of their employer or the
contractor as the case may be, that is compensating the individual making the
solicitation;
(2) Identify the name of
the professional solicitor[,] or charitable fundraising platform[,
or platform charity] registered with the department that has contracted
with the charitable organization to provide the solicitation services and, if
the individual is employed by a subcontractor, the name of the registered
subcontractor;
(3) Disclose that the
person making the oral or written request for a donation is being paid to make [such]
the solicitation and the name of the charitable organization on whose
behalf the person making the request is soliciting; and
(4) Disclose, orally and
in writing, the fact that a copy of the professional solicitor's[,] or
charitable fundraising platform's[, or platform charity's] registration
data and financial reports are available from the department.
(b) A professional
solicitor[,] or charitable fundraising platform[, or platform
charity] who makes an oral solicitation by telephone, door-to-door, or
otherwise, [prior to] before collecting or attempting to collect
any contribution, shall provide a written confirmation of the expected
contribution and clearly disclose that the contribution is not tax-deductible,
if applicable, or, if the professional solicitor[,] or charitable
fundraising platform[, or platform charity] maintains that the
contribution is tax-deductible in whole or in part, the portion of the
contribution that the professional solicitor[,] or charitable
fundraising platform[, or platform charity] maintains is tax-deductible. The written confirmation shall also
conspicuously disclose the name and current address of the registered
professional solicitor[,] or charitable fundraising platform[,
or platform charity]."
SECTION 4.
Section 467B-2.3, Hawaii Revised Statutes, is
amended to read as follows:
"[[]§467B-2.3[]] Charitable fundraising platforms[;
platform charities]. (a) [Each charitable fundraising platform
shall be subject to the department's supervision for activities regulated by
this section.] Before soliciting,
permitting, or otherwise enabling any solicitations for purported charitable
purposes, a charitable fundraising platform shall register with the department
on a form provided by the department. [Registrations
under this section shall be subject to an annual report and an annual renewal
fee imposed by the department. Fee
revenues from this section shall be deposited into the solicitation of funds
for charitable purposes special fund.]
The registration statement shall contain the information set forth in
subsection (b). The registration under
this section shall be accompanied by a fee in the amount of $250, or in the
amount and with any additional sums as may be prescribed by the attorney
general. Renewal registration statements
shall be filed with the department on or before July 1 of each calendar year by
each charitable fundraising platform.
The renewal statement shall contain the information set forth in
subsection (b). A renewal fee of $250,
or in any amount and with any additional sums as may be prescribed by the
attorney general, shall accompany the renewal statement. If a renewal registration required under this
section is not filed, unless it is shown that the failure is due to reasonable
cause, a fine of $20 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.
[(b) A platform charity
shall be subject to the department's supervision. The platform charity shall register with the
department as a platform charity before conducting activities regulated by this
section.
(c) Each charitable
fundraising platform and platform charity shall file periodic reports with the
department on a form provided by the department. Reports shall be filed pursuant to section
467B-12.]
(b) Each registration
and renewal registration report shall:
(1) Enable the department
to ascertain whether charitable funds have been properly solicited, received,
held, controlled, or distributed;
(2) Provide information on
the number of donations made, amount raised, length of time for distributing
donations or grants of recommended donations, fees charged by or through a
charitable fundraising platform or platform charity, and names of recipient charitable
organizations or other charitable organizations that were sent or have not yet
been sent donations or grants of recommended donations; and
(3) Protect from
disclosure any personally identifiable information of donors or other users of
the charitable fundraising platform.
[(d) No platform
charity shall facilitate acts of solicitation on a charitable fundraising
platform unless the platform charity is in good standing.
(e)] (c) A
charitable fundraising platform [or platform charity] shall only
solicit, permit, or otherwise enable solicitations, or receive, control, or
distribute funds from donations for purported charitable purposes for recipient
charitable organizations or other charitable organizations in good standing. To determine good standing of a recipient
charitable organization or other charitable organization, a charitable
fundraising platform [or platform charity] may rely on [electronic
lists periodically published by the Internal Revenue Service, department of
taxation, or department.] the department's registry.
[(f)] (d) With
respect to purported charitable purposes, a charitable fundraising platform [or
platform charity] that performs, permits, or otherwise enables solicitation
activities shall, before a person can complete a donation or select or change a
recipient charitable organization, provide conspicuous disclosures that reduce
the likelihood of deception, confusion, or misunderstanding, including:
(1) A statement that
donations are made to the charitable fundraising platform, platform charity,
recipient charitable organization, or person engaging in peer-to-peer
charitable fundraising, whichever is applicable;
(2) A statement that a
recipient charitable organization may not receive donations or grants or
recommended donations, with an explanation identifying the most pertinent
reasons [under which] that a recipient charitable organization
may not receive the funds; provided that the explanation [as to the maximum
length of time] of the most pertinent reasons that a
recipient charitable organization may not receive the funds
may be provided through a conspicuous hyperlink, so
long as the disclosure is conspicuous when the hyperlink is selected; provided
further that this paragraph shall not apply when there are no circumstances
under which a recipient charitable organization may not receive the funds;
(3) The maximum length of
time it will take to send the donation or a grant of the recommended donation
to a recipient charitable organization with an explanation of the time needed,
unless the donation is sent contemporaneously to a recipient charitable organization
after the donation is made; provided that the explanation as to the maximum
length of time may be provided through a conspicuous hyperlink, so long as the
disclosure is conspicuous when the hyperlink is selected;
(4) The fees or any other
amounts that will be deducted from or added to the donation or a grant of the
recommended donation and that are charged or retained by the charitable
fundraising platform, platform charity, or any other partnering vendor, other
than any applicable digital payment processing fees; and
(5) A statement as to the
tax deductibility of the donation.
[(g)] (e) Each
charitable fundraising platform [or platform charity] that solicits,
permits, or otherwise enables solicitations shall obtain the written consent of
a recipient charitable organization before using the recipient charitable
organization's name in a solicitation for a purported charitable purpose. Written consent shall be provided directly to
the charitable fundraising platform [or platform charity], or may be
provided to a charitable fundraising platform [or platform charity] by
one authorized officer, director, trustee, or other duly authorized
representative of the recipient charitable organization and may apply to
multiple affiliated charitable fundraising platforms expressly identified in
the agreement providing consent.
[(h)] (f) After
a donor contributes donations and with respect to purported charitable
purposes, the charitable fundraising platform [or platform charity]
shall promptly provide a tax donation receipt to the donor in a [format
determined by the department.] manner provided by section
170(f)(8) of the Internal Revenue Code of 1986, as amended.
[(i)] (g) The
charitable fundraising platform [or platform charity] shall not divert
or otherwise misuse any donations made for purported charitable purposes that
the charitable fundraising platform [or platform charity] receives
through solicitation on the charitable fundraising platform, and shall hold the
donations in a separate account or accounts from other funds belonging to the
charitable fundraising platform [or platform charity]. The charitable fundraising platform [or
platform charity] shall promptly ensure that donations and grants of
recommended donations are sent to the recipient charitable organizations with
an accounting of any fees assessed for processing the funds, and in accordance
with any rules adopted by the department pursuant to chapter 91. A platform charity shall be vicariously
liable for a charitable fundraising platform's misuse of funds, and vice versa.
[(j)] (h) If
a charitable fundraising platform [or platform charity] enters into any
contract with a vendor to solicit, receive, control, process, distribute, and
otherwise account for donations on the charitable fundraising platform, the
contract shall be available for inspection by the department.
(i) The attorney
general may require that registration and renewal registration and contracts be
filed with the department electronically and may require the use of electronic
signatures.
[(k)] (j) As
used in this section, "good standing" means that a platform charity,
recipient charitable organization, or other charitable [organization's tax‑exempt
status has not been revoked by the Internal Revenue Service or] organization
is not prohibited from soliciting or operating in the [state] State
by the department."
SECTION 5. Section
467B-2.5, Hawaii Revised Statutes, is amended to read as follows:
"§467B-2.5 Professional
solicitor[,] and charitable fundraising platform[, and
platform charity] financial reports; contribution account. (a) A professional solicitor[,] or charitable fundraising platform[,
or platform charity] shall file
with the attorney general a financial report for any charitable solicitation campaign, including gross revenue from Hawaii donors and national gross revenue and
an itemization of all expenses incurred on
a form prescribed by the attorney
general no more than ninety days after the end of the solicitation campaign
and, for solicitation campaigns lasting more than one year, within ninety days
after each anniversary of the commencement of the solicitation campaign and
within ninety days after the end of the solicitation campaign.
(b) The attorney general
may require the financial report required by
subsection (a) to be submitted electronically and may require
the use of electronic signatures. This report shall be signed by the
professional solicitor, charitable fundraising platform, [platform charity,]
or [by] an authorized officer or agent of the professional solicitor[,]
or charitable fundraising platform,[ or platform charity] who
shall certify that the statements therein are true and correct to the best of
the solicitor's, charitable fundraising platform's, officer's, or
agent's knowledge subject to penalties imposed by section 710-1063. If a financial report required under this
section is not filed in a timely manner, taking into account any extension of
time for filing, unless it is shown that the failure is due to reasonable
cause, an initial late filing fee of $100 shall be imposed, and an additional
late filing fee of $20 per day shall be imposed, for each day during which the
violation continues; provided that the total fee amount imposed under this subsection
shall not exceed $1,000. The attorney
general may waive all or part of the late filing fee imposed by this subsection
if there is a reasonable cause for the failure to timely file. The professional solicitor[,] or
charitable fundraising platform[, or platform charity] 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.
(c) A professional solicitor[,] or charitable
fundraising platform[, or platform charity] shall maintain during each solicitation campaign and for [not] no 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[,] or
charitable fundraising platform[, or platform charity] has deposited
revenue from the solicitation
campaign.
(d) Any material change
in any information filed with the attorney general pursuant to this section
shall be reported in writing by the professional solicitor[,] or
charitable fundraising platform[, or platform charity] to the attorney
general [not] no more than seven days after the change occurs.
(e) Each contribution in
the control or custody of the professional solicitor[,] or charitable
fundraising platform[, or platform charity] in its entirety and within
five days of its receipt, shall be deposited in an account at a bank or other
federally insured financial institution, which shall be in the name of the
charitable organization. The charitable
organization shall maintain and administer the account and shall have sole
control of all withdrawals."
SECTION 6. Section 467B-12,
Hawaii Revised Statutes, is amended to read as follows:
"§467B-12 Filing requirements
for professional fundraising counsel[,] and professional
solicitors[, charitable fundraising platforms, and platform charities]. (a) Every
professional fundraising counsel[,] or professional solicitor, [charitable
fundraising platform, or platform charity, prior to] before any
solicitation, shall register with the department. The registration statement shall contain the
information set forth in subsection (e).
The registration statement shall be accompanied by a fee in the amount
of $250, or in the amount and with any additional sums as may be prescribed by
the attorney general. Renewal
registration statements shall be filed with the department on or before July 1
of each calendar year by each professional fundraising counsel[,] or
professional solicitor[, charitable fundraising platform, or platform
charity]. The renewal statement
shall contain the information set forth in subsection (e). A renewal fee of $250, or in any amount and
with any additional sums as may be prescribed by the attorney general, shall
accompany the renewal statement. If a
renewal registration required under this section is not filed, unless it is
shown that the failure is due to reasonable cause, a fine of $20 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.
(b) Each professional
solicitor, [charitable fundraising platform, or platform charity,] at
the time of each filing, shall file with and have approved by the attorney
general a bond in which the applicant is the principal obligor in the penal sum
of $25,000 issued with good and sufficient surety or sureties approved by the
attorney general, and which shall remain in effect for one year. The bond shall inure to the benefit of the
State, conditioned that the applicant, its officers, directors, employees,
agents, servants, and independent contractors shall not violate this chapter. A partnership or corporation that is a
professional solicitor[, charitable fundraising platform, or platform
charity] may file a consolidated bond on behalf of all its members,
officers, and employees.
(c) The attorney general
shall examine each registration statement and supporting document filed by a
professional fundraising counsel[,] or professional solicitor[,
charitable fundraising platform, or platform charity] and shall determine
whether the registration requirements are satisfied. If the attorney general determines that the
registration requirements are not satisfied, the attorney general shall notify
the professional fundraising counsel[,] or professional solicitor[,
charitable fundraising platform, or platform charity] in writing within
fifteen business days of its receipt of the registration statement; otherwise
the registration statement [is] shall be deemed to be approved. Within seven business days after receipt of a
notification that the registration requirements are not satisfied, the
professional fundraising counsel[,] or professional solicitor[,
charitable fundraising platform, or platform charity] may request a
hearing.
(d) The attorney general
may require that registration and renewal registration, surety bonds, and
contracts be filed with the department electronically and may require the use
of electronic signatures.
(e) Each registration and
renewal registration shall contain:
(1) The names and addresses of all owners,
officers, and directors of a professional fundraising counsel [or charitable
fundraising platform], and the names and addresses of all owners, officers,
and directors of a professional solicitor [or platform charity];
(2) A statement concerning
the corporate form of the registrant, whether corporation, limited liability
corporation, partnership, or individual;
(3) A statement whether
the registrant has an office in Hawaii and the name and phone number of the
person in charge of the office;
(4) The names and
addresses of any individuals supervising any solicitation activity;
(5) A statement whether
the [[]registrant[]] has entered into a consent agreement with,
or been disciplined by or subject to administrative action by, another
governmental agency;
(6) A statement whether any officer, director, or any person with a controlling
interest in the registrant has ever been convicted of a felony or a misdemeanor
involving dishonesty in the solicitation for a charitable purpose;
(7) The date that the
registrant began soliciting Hawaii residents on behalf of a charitable
organization or providing professional fundraising counsel services; and
(8) Whether any owners,
directors, or officers are related to:
(A) Any other officers, directors, owners, or employees of the registrant;
(B) Any officer, director, trustee, or employee of a charitable organization under contract with the registrant; and
(C) Any vendor or supplier
providing goods or services to a charitable organization under contract with
the registrant."
SECTION 7. Section
467B-12.5, Hawaii Revised Statutes, is amended by amending subsections (a),
(b), and (c) to read as follows:
"(a) There shall be
a written contract between a charitable organization and a professional
fundraising counsel[,] or professional solicitor[, charitable
fundraising platform, or platform charity] that shall be filed by the
professional fundraising counsel[,] or professional solicitor[,
charitable fundraising platform, or platform charity] with the attorney
general at least ten business days [prior to] before the
performance by the professional fundraising counsel[,] or professional
solicitor[, charitable fundraising platform, or platform charity] of any
service. No solicitation or service
pursuant to the contract shall begin before the contract is filed with the
attorney general. The contract shall be
signed by two authorized officials of the charitable organization, one of whom
shall be a member of the organization's governing body, and the authorized
contracting officer for the professional fundraising counsel[,] or
professional solicitor[, charitable fundraising platform, or platform
charity]. The contract shall contain
all of the following provisions:
(1) The legal name and
address of the charitable organization;
(2) A statement of the
charitable purpose for which the solicitation campaign is being conducted;
(3) A statement of the respective obligations of the professional fundraising
counsel[,] or professional solicitor[, charitable fundraising
platform, or platform charity] and the charitable organization;
(4) A statement of the guaranteed minimum percentage of the gross receipts from
contributions that will be remitted to or retained by the charitable
organization, if any, or, if the solicitation involves the sale of goods,
services, or tickets to a fundraising event, the percentage of the purchase
price that will be remitted to the charitable organization, if any. The stated percentage shall exclude any
amount that the charitable organization is to pay as fundraising costs;
(5) Information concerning the compensation of the professional solicitor and professional
fundraising counsel as follows:
(A) If the
compensation of the professional fundraising counsel[,] or professional
solicitor[, charitable fundraising platform, or platform charity] is
contingent upon the number of contributions or the amount of revenue received,
a statement shall be included specifying the percentage of the gross revenue
that is the basis for that compensation.
The stated percentage shall include any amount that the professional
fundraising counsel[,] or professional solicitor[, charitable
fundraising platform, or platform charity] is to be reimbursed for
fundraising costs;
(B) If the
compensation of the professional solicitor[, charitable fundraising
platform, or platform charity] is not contingent upon the number of
contributions or amount of revenue received from the solicitation campaign, the
compensation shall be expressed as a reasonable estimate of the percentage of
the gross revenue, and the contract shall clearly disclose the assumptions upon
which the estimate is based. The stated
assumptions shall be based upon all of the relevant facts known to the
professional solicitor regarding the solicitation to be conducted by the
professional solicitor; or
(C) If the compensation of the professional
fundraising counsel[, charitable fundraising platform, or platform charity]
is not contingent on the number of contributions or amount of revenue received
from the solicitation campaign, the compensation shall be stated in a dollar
amount;
(6) The effective and
termination dates of the contract or, if the contract does not have a set
termination date, a clause allowing either party a reasonable period to
terminate the contract or notify the other party if either party chooses not to
renew. The contract shall also contain
the date services will commence with respect to solicitation in this State of
contributions for a charitable organization;
(7) In the case of a professional fundraising counsel, [charitable fundraising
platform, or platform charity,] a statement that the professional
fundraising counsel will not at any time have custody or control of
contributions, as applicable;
(8) A statement that the charitable organization exercises control and approval
over the content and volume of any solicitation; and
(9) Any other information required by the rules of the attorney general.
(b) No professional
fundraising counsel[,] or professional solicitor[, charitable
fundraising platform, or platform charity] shall contract with a charitable
organization unless the professional fundraising counsel[,] or professional
solicitor[, charitable fundraising platform, or platform charity] is
registered with the department. A
contract with an unregistered professional fundraising counsel[,] or
professional solicitor[, charitable fundraising platform, or platform
charity] shall be voidable at the option of the charitable organization.
(c) Whenever a charitable
organization contracts with a professional fundraising counsel[,] or
professional solicitor, [charitable fundraising platform, or platform
charity,] the charitable organization shall have the right to cancel the
contract without cost, penalty, or liability, for a period of ten days
following the date on which that contract is executed. Any provision in the contract that is
intended to waive this right of cancellation shall be void and
unenforceable."
SECTION 8. This Act does
not affect rights and duties that matured, penalties that were incurred, and
proceedings that were begun before its effective date.
SECTION 9. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 10. This Act shall take effect on January 1, 3000.
Report Title:
Solicitations; Fundraising; Platforms; Registration
Description:
Revises registration, fee, reporting, and enforcement requirements for charitable fundraising platforms and platform charities that solicit funds from the public. Removes duplication of registration, fee, and reporting requirements for charitable fundraising platforms and platform charities. Effective 1/1/3000. (HD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
