Bill Text: MS SB2199 | 2018 | Regular Session | Introduced

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Bill Title: Charitable solicitation; revise reporting period.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2018-01-30 - Died In Committee [SB2199 Detail]

Download: Mississippi-2018-SB2199-Introduced.html

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MISSISSIPPI LEGISLATURE

2018 Regular Session

To: Accountability, Efficiency, Transparency

By: Senator(s) Jackson (11th)

Senate Bill 2199

AN ACT TO AMEND SECTIONS 79-11-507, 79-11-513, 79-11-515 AND 79-11-517, MISSISSIPPI CODE OF 1972, TO REVISE THE REPORTING PERIOD APPLYING TO THE FILING OF FINANCIAL STATEMENTS BY CHARITABLE ORGANIZATIONS THAT SOLICIT DONATIONS; AND FOR RELATED PURPOSES.

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

     SECTION 1.  Section 79-11-507, Mississippi Code of 1972, is amended as follows:

     79-11-507.  (1)  Every charitable organization registered pursuant to Section 79-11-503 that * * * shall receives in any fiscal year contributions in excess of Five Hundred Thousand Dollars ($500,000.00) and all of whose fund-raising functions are carried on by persons who are unpaid for * * *such their services, and every charitable organization registered pursuant to Section 79-11-503 whose fund-raising functions are not carried on solely by persons who are unpaid for * * *such their services shall file a financial statement on a four-year cycle for its most recently completed fiscal years of the reporting period with the Secretary of State.  The financial statement shall be filed along with the registration statement required by Section 79-11-503 and any renewals or final report thereafter.  The financial statement shall include a balance sheet and statement of income and expense and shall be consistent with forms furnished by the Secretary of State clearly setting forth the following:  gross receipts and gross income from all sources, broken down into total receipts and income from each separate solicitation project or source; cost of administration; cost of solicitation; cost of programs designed to inform or educate the public; and total net amount disbursed or dedicated for each major purpose, charitable or otherwise.  The statement shall be signed by the president or other authorized officer and the chief fiscal officer of the organization, and shall be accompanied by an opinion signed by an independent certified public accountant that the financial statement therein fairly represents the financial operations of the organization in sufficient detail to permit public evaluation of its operations.  The financial statement shall be accompanied by any and all forms required to be filed by a charitable organization with the United States Internal Revenue Service during the reporting period.

     (2)  Every organization registered pursuant to Section 79-11-503 that shall receive in any fiscal year contributions of at least Two Hundred Fifty Thousand Dollars ($250,000.00) but not more than Five Hundred Thousand Dollars ($500,000.00) and all of whose fund-raising functions are carried on by persons who are unpaid for their services shall file a financial statement reviewed by an independent certified public accountant along with the registration statement required by Section 79-11-503 and any renewals or final report thereafter with the Secretary of State upon forms prescribed by him.  The reviewed financial statement shall cover the * * * most recently completed fiscal years of the reporting period and include * * *such information as required by the Secretary of State by rule or otherwise, including, but not limited to, the gross receipts from contributions and the use of the proceeds of * * *such the contributions.  The statement shall be signed by the president or other authorized officer of the organization who shall certify under penalties of perjury that the statements therein are true and correct to the best of the signer's knowledge.  The reviewed financial statement shall be accompanied by any and all forms required to be filed by a charitable organization with the United States Internal Revenue Service during the reporting period.

     (3)  Every organization registered pursuant to Section 79-11-503 that shall receive in any fiscal year contributions not in excess of Two Hundred Fifty Thousand Dollars ($250,000.00) and all of whose fund-raising functions are carried on by persons who are unpaid for their services shall file a financial report along with the registration statement required by Section 79-11-503 and any renewals or final report thereafter with the Secretary of State upon forms prescribed by him. * * *Such  The financial report shall cover the * * *most recently completed fiscal years of the reporting period and include * * *such information as required by the Secretary of State by rule or otherwise, including, but not limited to, the gross receipts from contributions and the use of the proceeds of * * *such the contributions.  The report shall be signed by the president or other authorized officer of the organization who shall certify under penalties of perjury that the statements therein are true and correct to the best of the signer's knowledge. * * *Such  The financial report shall be accompanied by any and all forms required to be filed by a charitable organization with the United States Internal Revenue Service during the reporting period.

     (4)  Any charitable organization receiving more than Twenty-five Thousand Dollars ($25,000.00) but less than Five Hundred Thousand Dollars ($500,000.00) shall, at the request of the Secretary of State, submit additional financial information, including, but not limited to, an audited financial statement prepared in accordance with generally accepted accounting principles and accompanied by an opinion signed by an independent certified public accountant that the financial statement therein fairly represents the financial operations of the organization in sufficient detail to permit public evaluation of its operations.

     (5)  The Secretary of State pursuant to Section 79-11-509 may promulgate rules to provide for extensions of the due date for filing of the financial statements required by this chapter and may impose an administrative penalty against any organization which fails to comply with this section within the time prescribed, or fails to furnish * * *such additional information as is requested by the Secretary of State within the required time.

     SECTION 2.  Section 79-11-513, Mississippi Code of 1972, is amended as follows:

     79-11-513.  No person shall act as a professional fund-raiser or fund-raising counsel for a charitable organization before he has registered with the Secretary of State or after the expiration or cancellation of * * *such the registration or any renewal thereof.  Applications for registration and renewals shall be in writing sworn to under penalties of perjury in the form prescribed by the Secretary of State and accompanied by * * *the a filing * * * of a fee of Two Hundred Fifty Dollars ($250.00).  The professional fund-raiser applicant, at the time of making application, shall file with the State Treasurer and have approved by the Secretary of State a bond in which the applicant shall be the principal obligor in the sum of Ten Thousand Dollars ($10,000.00) with one or more corporate sureties licensed to do business in this state whose liability in the aggregate will at least equal * * *such sum the required dollar amount.  The bond shall run to the Secretary of State for the use of the state and to any person who may have a cause of action against the obligor of the bond for any malfeasance or misfeasance in the conduct of * * *such the solicitation * * *; provided, that.  Although the aggregate limit of liability of the surety to the state and to all * * *such persons shall, in no event, exceed the * * *sum total amount of * * *such the bond * * *.  Such, this limitation of liability * * *, as to the sum of the bond, as to for the surety * * *, shall not otherwise affect * * *any the liability * * *to any person by of any charitable organization, professional fund-raiser, professional solicitor or any other person for a violation of this chapter to any person who may have a cause of action against the obligor of the bond for any malfeasance or misfeasance in the conduct of the solicitation.  Registration when effected shall be for a period of * * *one (1) year four (4) years, or * * *a part portion thereof of the initial registration period, expiring on June 30 or on * * *such other another date as prescribed by rule, and may be renewed for subsequent four-year periods upon written application, under oath, in the form prescribed by the Secretary of State and upon the remittance of the renewal fee of Two Hundred Fifty Dollars ($250.00) and the filing of the bond for additional * * *one‑year four-year periods.  Every professional fund-raiser and fund-raising counsel required to register pursuant to Sections 79-11-501 through 79-11-529 shall file * * *an annual a written report with the Secretary of State containing * * *such the information and documentation as he may require by rule as a part of the renewal process.

     SECTION 3.  Section 79-11-515, Mississippi Code of 1972, is amended as follows:

     79-11-515.  (1)  All contracts entered into between professional fund-raisers or fund-raising counsel and charitable organizations shall be in writing and a true and correct copy of * * *such the contract shall be filed by the professional fund-raiser or fund-raising counsel who is a party thereto with the Secretary of State at least ten (10) days * * *prior to before the performance by the professional fund-raiser or fund-raising counsel of any service.  The contract must be signed by two (2) authorized officials of the charitable organization, one (1) of whom must be a member of the organization's governing body, and the authorized contracting officer for the professional fund-raiser or fund-raising counsel.  True and correct copies of * * *such the contracts shall be kept on file in the offices of the charitable organization and the professional fund-raiser or fund-raising counsel during the term thereof and until the expiration of a period of three (3) years subsequent to the date the solicitation of contributions provided for therein actually terminates.  The contract shall contain all of the following provisions:

          (a)  The legal name and address of the charitable organization as registered with the Secretary of State, unless that charitable organization is exempt from registration;

          (b)  A statement of the charitable purpose for which the solicitation campaign is being conducted;

          (c)  A statement of the respective obligations of the professional fund-raiser or fund-raising counsel and the charitable organization;

          (d)  A clear statement of the fees or rate which will be paid to the professional fund-raiser or fund-raising counsel;

          (e)  The effective and termination dates of the contract and the date services will commence with respect to the solicitation in this state of contributions for a charitable organization;

          (f)  For fund-raising counsel, a statement that the fund-raising counsel will not at any time have custody or control of contributions;

          (g)  A statement that the charitable organization exercises control and approval over the content and volume of any solicitation; and

          (h)  Any other information required by the rules of the Secretary of State.

     (2) * * *Prior to  Before the commencement of any solicitation, the professional fund-raiser shall file all of the following with the Secretary of State and * * *such other information that the Secretary of State may, by rule, require in the form of a written report on forms prescribed by the Secretary of State containing information about the solicitation campaign, including, but not limited to, the following:

          (a)  The fund-raising methods to be used;

          (b)  The projected dates when the solicitation campaign will commence and terminate;

          (c)  The location and telephone number from where the solicitation campaign will be conducted if it will be conducted by telephone;

          (d)  The name and residence address of each person responsible for directing and supervising the conduct of the solicitation campaign;

          (e)  A statement of whether the professional fund-raiser will at any time have custody of any contributions;

          (f)  The account number and location of each bank account where receipts from the campaign are to be deposited;

          (g)  A full and fair description of the charitable program for which the solicitation campaign is being carried out; and

          (h)  The written and signed consent of every charitable organization on whose behalf the professional fund-raiser will be soliciting contributions or whose name will be mentioned during the solicitation.

     (3)  Not later than ninety (90) days after a solicitation campaign has been completed * * * and on the anniversary of the commencement, or, in the case of a solicitation campaign lasting more than * * *one (1) year four (4) years, on the next reporting due date, the professional fund-raiser shall furnish an accounting of all contributions collected and expenses paid to the charitable organization with which the professional fund-raiser has contracted.  The accounting shall be in writing and shall be retained by the professional fund-raiser and charitable organization for three (3) years following the filing due date.  The professional fund-raiser shall file a final report of the accounting with the Secretary of State on forms prescribed by him and containing * * *such the information he may, by rule, require not later than seven (7) days after it is furnished to the charitable organization.  This report shall be signed by the contracting agent with the professional fund-raiser and also by an authorized officer of the charitable organization.

     (4)  Not later than two (2) days after receipt of each contribution, the professional fund-raiser shall deposit the entire amount of the contribution in an account at a bank or other federally insured financial institution which shall be in the name of the charitable organization with which the professional fund-raiser has contracted.  Each contribution collected by the professional fund-raiser shall be solely in the name of that charitable organization.  The charitable organization shall have sole control of all withdrawals from the account and the professional fund-raiser shall not be given the authority to withdraw any deposited funds from the account.

     (5)  During each solicitation campaign and for not less than three (3) years after its completion, the professional fund-raiser shall maintain the following records that shall be made available to the Attorney General or the Secretary of State upon request:

          (a)  A record of each contribution that at any time is in the custody of the professional fund-raiser, including the name and address of each contributor and the date and amount of the contribution; and

          (b)  The location of each bank or financial institution in which the professional fund-raiser has deposited revenue from the solicitation campaign and the account number of each account into which the deposits were made.

     (6)  Any material change in any information filed with the Secretary of State pursuant to this section shall be reported in writing by the professional fund-raiser or fund-raising counsel to the Secretary of State not more than seven (7) days after * * *such the change occurs.

     SECTION 4.  Section 79-11-517, Mississippi Code of 1972, is amended as follows:

     79-11-517.  No person shall act as a professional solicitor in the employ of a professional fund-raiser required to register pursuant to Section 79-11-513 before he has registered with the Secretary of State or after the expiration or cancellation of * * *such the registration or any renewal thereof.  Application for registration or renewal shall be in writing sworn to under penalties of perjury in the form prescribed by the Secretary of State. * * *Such  The registration when effected shall be for a period of * * *one (l) year four (4) years, or * * *a part portion thereof, expiring on June 30 or * * *such other another date as prescribed by rule, and may be renewed upon written application, sworn to under penalties of perjury, in the form prescribed by the Secretary of State for additional * * *one‑year four-year periods.

     SECTION 5.  This act shall take effect and be in force from and after July 1, 2018.

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