Bill Text: FL S0638 | 2014 | Regular Session | Comm Sub
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 CS for SB 638 By the Committees on Appropriations; and Commerce and Tourism; and Senator Brandes 576-04546-14 2014638c2 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. 496.403, F.S.; 12 revising the applicability of the Solicitation of 13 Contributions Act; amending s. 496.404, F.S.; defining 14 terms; redefining the term “professional solicitor”; 15 amending s. 496.405, F.S.; revising the timeframe 16 within which a charitable organization or sponsor must 17 report changes to certain information provided to the 18 department on an initial or renewal registration 19 statement; providing for the automatic expiration of a 20 registration for failure to file a renewal or 21 financial statement by a certain date; deleting a 22 provision to extend the time to file a renewal 23 statement; deleting a requirement that the renewal 24 statement be filed subsequent to the financial 25 statement; specifying the information that must be 26 submitted by a parent organization on a consolidated 27 financial statement; requiring a parent organization 28 to attach certain Internal Revenue Service forms and 29 schedules to a consolidated financial statement; 30 extending the time allowed for the department to 31 review certain initial or renewal registration 32 statements; providing that failure of a charitable 33 organization or sponsor to make certain disclosures in 34 a registration statement results in the automatic 35 suspension of an active registration for a specified 36 period; prohibiting the officers, directors, trustees, 37 or employees of a charitable organization or sponsor 38 from allowing certain persons to solicit contributions 39 on behalf of the charitable organization or sponsor; 40 specifying that the prohibition against certain 41 persons soliciting contributions on behalf of a 42 charitable organization or sponsor due to the 43 commission of certain felonies includes those felonies 44 committed in any state as well as any misdemeanor in 45 another state which constitutes a disqualifying felony 46 in this state; authorizing the department to deny or 47 revoke the registration of a charitable organization 48 or sponsor under certain circumstances; requiring a 49 charitable organization or sponsor that has ended 50 solicitation activities in this state to notify the 51 department in writing; making technical changes; 52 creating s. 496.4055, F.S.; defining the term 53 “conflict of interest transaction”; requiring the 54 board of directors of a charitable organization or 55 sponsor, or an authorized committee thereof, to adopt 56 a policy regarding conflict of interest transactions; 57 specifying certain requirements of the policy; 58 requiring a charitable organization or sponsor to 59 provide the department with a copy of the policy; 60 amending s. 496.407, F.S.; requiring that the 61 financial statements of certain charitable 62 organizations or sponsors be audited or reviewed; 63 specifying requirements and standards for the audit or 64 review of a financial statement; requiring that an 65 alternative financial statement submitted by certain 66 charitable organizations or sponsors be prepared by a 67 certified public accountant or other professional; 68 authorizing the department to require an audit or 69 review of any financial statement and to extend the 70 time to file a financial statement under certain 71 circumstances; providing that the registration of a 72 charitable organization or sponsor be suspended upon 73 its failure to file a financial statement within an 74 extension period; making technical changes; creating 75 s. 496.4071, F.S.; requiring certain charitable 76 organizations or sponsors to report specified 77 supplemental financial information to the department 78 by a certain date; creating s. 496.4072, F.S.; 79 requiring certain charitable organizations or sponsors 80 who solicit contributions for a specific disaster 81 relief effort to submit quarterly financial statements 82 to the department; specifying information to be 83 included in the quarterly financial statement and the 84 length of the required reporting period; requiring the 85 department to post notice of specific disaster relief 86 efforts subject the reporting requirements; amending 87 ss. 496.409 and 496.410, F.S.; prohibiting a 88 professional fundraising consultant or professional 89 solicitor from entering into a contract or agreement 90 with a charitable organization or sponsor that has not 91 complied with certain requirements; extending the time 92 that the department may review initial or renewal 93 registration statements of professional fundraising 94 consultants or professional solicitors which contain 95 certain disclosures; providing that the failure of a 96 professional fundraising consultant or professional 97 solicitor to make certain disclosures in an initial or 98 renewal registration statement results in automatic 99 suspension of an active registration; prohibiting the 100 officers, trustees, directors, or employees of a 101 professional fundraising consultant or a professional 102 solicitor from allowing certain persons to solicit 103 contributions on behalf of the professional 104 fundraising consultant or professional solicitor; 105 specifying that the prohibition against acting as a 106 professional solicitor or the employment of certain 107 persons by a professional solicitor due to the 108 commission of certain felonies includes those felonies 109 committed in any state as well as any misdemeanor in 110 another state which constitutes a disqualifying felony 111 in this state; authorizing the department to deny or 112 revoke the registration of a professional fundraising 113 consultant or professional solicitor under certain 114 circumstances; revising required information in the 115 initial or renewal application of a professional 116 solicitor; deleting a provision authorizing the 117 payment of a single registration fee for certain 118 professional solicitors; requiring a professional 119 solicitor to provide additional specified information 120 to the department in a solicitation notice; creating 121 s. 496.4101, F.S.; requiring each officer, director, 122 trustee, or owner of a professional solicitor and any 123 employee of a professional solicitor that conducts 124 certain telephonic solicitations to obtain a solicitor 125 license from the department; specifying application 126 information and the application procedure for a 127 solicitor license; requiring that each applicant for a 128 solicitor license submit a complete set of their 129 fingerprints to certain agencies, entities, or 130 vendors; requiring that the applicant’s fingerprints 131 be submitted to the Department of Law Enforcement for 132 state processing; requiring the Department of Law 133 Enforcement to forward the applicant’s fingerprints to 134 the Federal Bureau of Investigation for national 135 processing; providing that fees for fingerprint 136 processing and retention be borne by the applicant; 137 providing for retention of the fingerprints; requiring 138 the department to notify the Department of Law 139 Enforcement of individuals who are no longer licensed; 140 requiring that a solicitor license be renewed annually 141 or expire automatically upon nonrenewal; requiring 142 that an applicant for a solicitor license pay certain 143 licensing fees; providing that licensing fees be 144 deposited into the General Inspection Trust Fund; 145 requiring that an applicant for a solicitor license 146 report changes in information submitted to the 147 department in a specified manner along with a 148 processing fee; specifying violations; requiring the 149 department to adopt rules allowing applicants to 150 engage in solicitation activities without a solicitor 151 license on an interim basis; authorizing the 152 department to deny or revoke a solicitor license under 153 specified circumstances; requiring that certain 154 administrative proceedings be conducted pursuant to 155 chapter 120; amending ss. 496.411 and 496.412, F.S.; 156 expanding and revising required solicitation 157 disclosures of charitable organizations, sponsors, and 158 professional solicitors; requiring that certain exempt 159 charitable organizations or sponsors also provide such 160 solicitation disclosures; requiring that such 161 solicitation disclosures be placed online under 162 certain circumstances; creating s. 496.4121, F.S.; 163 defining the term “collection receptacle”; requiring 164 that collection receptacles display permanent signs or 165 labels; specifying requirements for the physical 166 appearance of such labels or signs and the information 167 displayed thereon; requiring that a charitable 168 organization or sponsor using a collection receptacle 169 provide certain information to a donor upon request; 170 amending s. 496.415, F.S.; providing that the 171 submission of false, misleading, or inaccurate 172 information in a document connected with a 173 solicitation or sales promotion is unlawful; providing 174 that the failure to remit specified funds to a 175 charitable organization or sponsor is unlawful; 176 amending s. 496.419, F.S.; increasing administrative 177 fines for violations of the Solicitation of 178 Contributions Act; creating s. 496.4191, F.S.; 179 requiring the department to immediately suspend a 180 registration or processing of an application for 181 registration for a specified period if the registrant, 182 applicant, or any officer or director thereof is 183 criminally charged with certain offenses; creating s. 184 496.430, F.S.; requiring the department to disqualify 185 a charitable organization or sponsor from receiving a 186 sales tax exemption under specified circumstances; 187 providing that a charitable organization or sponsor 188 may appeal a disqualification order; specifying appeal 189 procedure; providing that a disqualification order 190 remains effective for a specified period; requiring 191 the department to provide a final disqualification 192 order to the Department of Revenue within a specified 193 period; providing that a final disqualification order 194 is conclusive as to a charitable organization or 195 sponsor’s right to a sales tax exemption; requiring 196 the Department of Revenue to revoke or deny a sales 197 tax exemption to a charitable organization or sponsor 198 subject to a final disqualification order within a 199 specified period; prohibiting a charitable 200 organization or sponsor from appealing or challenging 201 the revocation or denial of a sales tax exemption 202 certificate under certain circumstances; creating s. 203 496.431, F.S.; providing for severability; amending s. 204 741.0305, F.S.; conforming a cross-reference; 205 providing an appropriation and authorizing positions; 206 providing an effective date. 207 208 Be It Enacted by the Legislature of the State of Florida: 209 210 Section 1. Paragraph (p) of subsection (7) of section 211 212.08, Florida Statutes, is amended to read: 212 212.08 Sales, rental, use, consumption, distribution, and 213 storage tax; specified exemptions.—The sale at retail, the 214 rental, the use, the consumption, the distribution, and the 215 storage to be used or consumed in this state of the following 216 are hereby specifically exempt from the tax imposed by this 217 chapter. 218 (7) MISCELLANEOUS EXEMPTIONS.—Exemptions provided to any 219 entity by this chapter do not inure to any transaction that is 220 otherwise taxable under this chapter when payment is made by a 221 representative or employee of the entity by any means, 222 including, but not limited to, cash, check, or credit card, even 223 when that representative or employee is subsequently reimbursed 224 by the entity. In addition, exemptions provided to any entity by 225 this subsection do not inure to any transaction that is 226 otherwise taxable under this chapter unless the entity has 227 obtained a sales tax exemption certificate from the department 228 or the entity obtains or provides other documentation as 229 required by the department. Eligible purchases or leases made 230 with such a certificate must be in strict compliance with this 231 subsection and departmental rules, and any person who makes an 232 exempt purchase with a certificate that is not in strict 233 compliance with this subsection and the rules is liable for and 234 shall pay the tax. The department may adopt rules to administer 235 this subsection. 236 (p) Section 501(c)(3) organizations.—Also exempt from the 237 tax imposed by this chapter are sales or leases to organizations 238 determined by the Internal Revenue Service to be currently 239 exempt from federal income tax pursuant to s. 501(c)(3) of the 240 Internal Revenue Code of 1986, as amended, ifwhensuch leases 241 or purchases are used in carrying on their customary nonprofit 242 activities, unless such organizations are subject to a final 243 disqualification order issued by the Department of Agriculture 244 and Consumer Services pursuant to s. 496.430. 245 Section 2. Subsection (3) of section 212.084, Florida 246 Statutes, is amended, and subsection (7) is added to that 247 section, to read: 248 212.084 Review of exemption certificates; reissuance; 249 specified expiration date; temporary exemption certificates.— 250 (3) After review is completed and it has been determined 251 that an institution, organization, or individual is actively 252 engaged in a bona fide exempt endeavor and is not subject to a 253 final disqualification order issued by the Department of 254 Agriculture and Consumer Services pursuant to s. 496.430, the 255 department shall reissue an exemption certificate to the entity. 256 However, each certificate so reissued is valid for 5 consecutive 257 years, at which time the review and reissuance procedure 258 provided by this section apply again. If the department 259 determines that an entity no longer qualifies for an exemption, 260 it shall revoke the tax exemption certificate of the entity. 261 (7) The department shall revoke or refuse to grant a sales 262 tax exemption certificate to an institution, organization, or 263 individual that is the subject of a final disqualification order 264 issued by the Department of Agriculture and Consumer Services 265 pursuant to s. 496.430. A revocation or denial under this 266 subsection is subject to challenge under chapter 120 only as to 267 whether a disqualification order is in effect. The institution, 268 organization, or individual must appeal or challenge the 269 validity of the disqualification order pursuant to s. 270 496.430(2). 271 Section 3. Section 496.403, Florida Statutes, is amended to 272 read: 273 496.403 Application.—Sections 496.401-496.424 do not apply 274 to bona fide religious institutions, educational institutions, 275 and state agencies or other government entities or persons or 276 organizations who solicit or act as professional fundraising 277 consultants solely ontheirbehalf of those entities, or to 278 blood establishments as defined in s. 381.06014. Sections 279 496.401-496.424 do not apply to political contributions 280 solicited in accordance with the election laws of this state. 281 Section 4. Section 496.404, Florida Statutes, is amended to 282 read: 283 496.404 Definitions.—As used in ss. 496.401-496.424, the 284 term: 285 (1) “Charitable organization” means aanyperson who is or 286 holds herself or himself out to be established for any 287 benevolent, educational, philanthropic, humane, scientific, 288 artistic, patriotic, social welfare or advocacy, public health, 289 environmental conservation, civic, or other eleemosynary 290 purpose, or aanyperson who in any manner employs a charitable 291 appeal as the basis for any solicitation or an appeal that 292 suggests that there is a charitable purpose to any solicitation. 293 The termItincludes a chapter, branch, area office, or similar 294 affiliate soliciting contributions within the state for a 295 charitable organization thatwhichhas its principal place of 296 business outside the state. 297 (2) “Charitable purpose” means any benevolent, 298 philanthropic, patriotic, educational, humane, scientific, 299 artistic, public health, social welfare or advocacy, 300 environmental conservation, civic, or other eleemosynary 301 objective. 302 (3) “Charitable sales promotion” means an advertising or 303 sales campaign conducted by a commercial co-venturer which 304 represents that the purchase or use of goods or services offered 305 by the commercial co-venturerare tobenefit a charitable 306 organization. The provision of advertising services to a 307 charitable organization does not, in itself, constitute a 308 charitable sales promotion. 309 (4) “Commercial co-venturer” means aanyperson who, for 310 profit, regularly and primarily is engaged in trade or commerce 311 other than in connection with solicitation of contributions and 312 who conducts a charitable sales promotion or a sponsor sales 313 promotion. 314 (5) “Contribution” means the promise, pledge, or grant of 315 any money or property, financial assistance, or any other thing 316 of value in response to a solicitation. The term“Contribution”317 includes, in the case of a charitable organization or sponsor 318 offering goods and services to the public, the difference 319 between the direct cost of the goods and services to the 320 charitable organization or sponsor and the price at which the 321 charitable organization or sponsor or any person acting on 322 behalf of the charitable organization or sponsor resells those 323 goods or services to the public. The term“Contribution”does 324 not include bona fide fees, dues, or assessments paid by 325 members, ifprovided thatmembership is not conferred solely as 326 consideration for making a contribution in response to a 327 solicitation;.“Contribution” also does not includefunds 328 obtained by a charitable organization or sponsor pursuant to 329 government grants or contracts; funds, orobtained as an 330 allocation from a United Way organization that is duly 331 registered with the department; or funds received from an 332 organization that is exempt from federal income taxation under 333 s. 501(a) of the Internal Revenue Code and described in s. 334 501(c) of the Internal Revenue Code whichthatis duly 335 registered with the department. 336 (6) “Crisis” means an event that garners widespread 337 national or global media coverage due to an actual or perceived 338 threat of harm to an individual, a group, or a community. 339 (7)(6)“Department” means the Department of Agriculture and 340 Consumer Services. 341 (8) “Disaster” means a natural, technological, or civil 342 event, including, but not limited to, an explosion, chemical 343 spill, earthquake, tsunami, landslide, volcanic activity, 344 avalanche, wildfire, tornado, hurricane, drought, or flood, 345 which affects one or more countries and causes damage of 346 sufficient severity and magnitude to result in an official 347 declaration of a state of emergency or an official request for 348 international assistance. 349 (9)(7)“Division” means the Division of Consumer Services 350 of the Department of Agriculture and Consumer Services. 351 (10)(8)“Educational institutions” means those institutions 352 and organizations described in s. 212.08(7)(cc)8.a. The term 353 includes private nonprofit organizations, the purpose of which 354 is to raise funds for schools teaching grades kindergarten 355 through grade 12, colleges, and universities, including any 356 nonprofit newspaper of free or paid circulation primarily on 357 university or college campuses which holds a current exemption 358 from federal income tax under s. 501(c)(3) of the Internal 359 Revenue Code, any educational television network or system 360 established pursuant to s. 1001.25 or s. 1001.26, and any 361 nonprofit television or radio station that is a part of such 362 network or system and that holds a current exemption from 363 federal income tax under s. 501(c)(3) of the Internal Revenue 364 Code. The term also includes a nonprofit educational cable 365 consortium that holds a current exemption from federal income 366 tax under s. 501(c)(3) of the Internal Revenue Code, whose 367 primary purpose is the delivery of educational and instructional 368 cable television programming and whose members are composed 369 exclusively of educational organizations that hold a valid 370 consumer certificate of exemption and that are either an 371 educational institution as defined in this subsection or 372 qualified as a nonprofit organization pursuant to s. 501(c)(3) 373 of the Internal Revenue Code. 374 (11)(9)“Emergency service employee” means ananyemployee 375 who is a firefighter, as defined in s. 633.102, or ambulance 376 driver, emergency medical technician, or paramedic, as defined 377 in s. 401.23. 378 (12)(10)“Federated fundraising organization” means a 379 federation of independent charitable organizations thatwhich380 have voluntarily joined together, including, but not limited to, 381 a united way or community chest, for purposes of raising and 382 distributing contributions for and among themselves and where 383 membership does not confer operating authority and control of 384 the individual organization upon the federated group 385 organization. 386 (13)(11)“Fundraising costs” means those costs incurred in 387 inducing others to make contributions to a charitable 388 organization or sponsor for which the contributors will receive 389 no direct economic benefit. Fundraising costs include, but are 390 not limited to, salaries, rent, acquiring and obtaining mailing 391 lists, printing, mailing, and all direct and indirect costs of 392 soliciting, as well as the cost of unsolicited merchandise sent 393 to encourage contributions. 394 (14)(12)“Law enforcement officer” means aanyperson who 395 is elected, appointed, or employed by any municipality or the 396 state or any political subdivision thereof and: 397 (a) Who is vested with authority to bear arms and make 398 arrests and whose primary responsibility is the prevention and 399 detection of crime or the enforcement of the criminal, traffic, 400 or highway laws of the state; or 401 (b) Whose responsibility includes supervision, protection, 402 care, custody, or control of inmates within a correctional 403 institution. 404 (15) “Management and general costs” means all such costs of 405 a charitable organization or sponsor which are not identifiable 406 with a single program or fundraising activity but which are 407 indispensable to the conduct of such programs and activities and 408 the charitable organization’s or sponsor’s existence. 409 (16)(13)“Membership” means the relationship of a person to 410 an organization whichthatentitles her or him to the 411 privileges, professional standing, honors, or other direct 412 benefit of the organization in addition to the right to vote, 413 elect officers, and hold office in the organization. 414 (17)(14)“Owner” means aanyperson who has a direct or 415 indirect interest in any professional fundraising consultant or 416 professional solicitor. 417 (18)(15)“Parent organization” means that part of a 418 charitable organization or sponsor which coordinates, 419 supervises, or exercises control over policy, fundraising, and 420 expenditures or assists or advises one or more of the 421 organization’s chapters, branches, or affiliates in this state. 422 (19)(16)“Person” means ananyindividual, organization, 423 trust, foundation, group, association, entity, partnership, 424 corporation, society, or any combination thereofof them. 425 (20)(17)“Professional fundraising consultant” means aany426 person who is retained by a charitable organization or sponsor 427 for a fixed fee or rate under a written agreement to plan, 428 manage, conduct, carry on, advise, consult, or prepare material 429 for a solicitation of contributions in this state, but who does 430 not solicit contributions or employ, procure, or engage any 431 compensated person to solicit contributions and who does not at 432 any time have custody or control of contributions. A bona fide 433 volunteer or bona fide employee or salaried officer of a 434 charitable organization or sponsor maintaining a permanent 435 establishment in this state is not a professional fundraising 436 consultant. An attorney, investment counselor, or banker who 437 advises an individual, corporation, or association to make a 438 charitable contribution is not a professional fundraising 439 consultant as the result of such advice. 440 (21)(18)“Professional solicitor” means aanyperson who, 441 for compensation, performs for a charitable organization or 442 sponsor any service in connection with which contributions are 443 or will be solicited in, or from a location in, this state by 444 the compensated person or by any person it employs, procures, or 445 otherwise engages, directly or indirectly, to solicit 446 contributions, or a person who plans, conducts, manages, carries 447 on, advises, consults,whetherdirectly or indirectly, in 448 connection with the solicitation of contributions for or on 449 behalf of a charitable organization or sponsor, but who does not 450 qualify as a professional fundraising consultant. A bona fide 451 volunteer or bona fide employee or salaried officer of a 452 charitable organization or sponsor maintaining a permanent 453 establishment in this state is not a professional solicitor. An 454 attorney, investment counselor, or banker who advises an 455 individual, corporation, or association to make a charitable 456 contribution is not a professional solicitor as the result of 457 such advice. 458 (22) “Program service costs” means all expenses incurred 459 primarily to accomplish the charitable organization or sponsor’s 460 stated purposes. The term does not include fundraising costs. 461 (23)(19)“Religious institution” means any church, 462 ecclesiastical or denominational organization, or established 463 physical place for worship in this state at which nonprofit 464 religious services and activities are regularly conducted and 465 carried on, and includes those bona fide religious groups which 466 do not maintain specific places of worship. The term“Religious467institution”also includes any separate group or corporation 468 which forms an integral part of a religious institution which is 469 exempt from federal income tax under the provisions of s. 470 501(c)(3) of the Internal Revenue Code, and which is not 471 primarily supported by funds solicited outside its own 472 membership or congregation. 473 (24)(20)“Solicitation” means a request, directly or 474 indirectly, for money, property, financial assistance, or any 475 other thing of value on the plea or representation that such 476 money, property, financial assistance, or other thing of value 477 or a portion of it will be used for a charitable or sponsor 478 purpose or will benefit a charitable organization or sponsor. 479 The term“Solicitation”includes, but is not limited to, the 480 following methods of requesting or securing the promise, pledge, 481 or grant of money, property, financial assistance, or any other 482 thing of value: 483 (a) Making any oral or written request; 484 (b) Making any announcement to the press, on radio or 485 television, by telephone or telegraph, or by any other 486 communication device concerning an appeal or campaign by or for 487 any charitable organization or sponsor or for any charitable or 488 sponsor purpose; 489 (c) Distributing, circulating, posting, or publishing any 490 handbill, written advertisement, or other publication that 491 directly or by implication seeks to obtain any contribution; or 492 (d) Selling or offering or attempting to sell any 493 advertisement, advertising space, book, card, coupon, chance, 494 device, magazine, membership, merchandise, subscription, 495 sponsorship, flower, admission, ticket, food, or other service 496 or tangible good, item, or thing of value, or any right of any 497 description in connection with which any appeal is made for any 498 charitable organization or sponsor or charitable or sponsor 499 purpose, or when the name of any charitable organization or 500 sponsor is used or referred to in any such appeal as an 501 inducement or reason for making the sale or when, in connection 502 with the sale or offer or attempt to sell, any statement is made 503 that all or part of the proceeds from the sale will be used for 504 any charitable or sponsor purpose or will benefit any charitable 505 organization or sponsor. 506 507 A solicitation is considered as having taken place whether or 508 not the person making the solicitation receives any 509 contribution. A solicitation does not occur when a person 510 applies for a grant or an award to the government or to an 511 organization that is exempt from federal income taxation under 512 s. 501(a) of the Internal Revenue Code and described in s. 513 501(c) of the Internal Revenue Code and is duly registered with 514 the department. 515 (25)(21)“Sponsor” means a group or person thatwhichis or 516 holds itself out to be soliciting contributions by the use of 517 any name thatwhichimplies that the group or person is in any 518 way affiliated with or organized for the benefit of emergency 519 service employees or law enforcement officers and the group or 520 personwhichis not a charitable organization. The term includes 521 a chapter, branch, or affiliate thatwhichhas its principal 522 place of business outside the state, if such chapter, branch, or 523 affiliate solicits or holds itself out to be soliciting 524 contributions in this state. 525 (26)(22)“Sponsor purpose” means any program or endeavor 526 performed to benefit emergency service employees or law 527 enforcement officers. 528 (27)(23)“Sponsor sales promotion” means an advertising or 529 sales campaign conducted by a commercial co-venturer who 530 represents that the purchase or use of goods or services offered 531 by the commercial co-venturer will be used for a sponsor purpose 532 or donated to a sponsor. The provision of advertising services 533 to a sponsor does not, in itself, constitute a sponsor sales 534 promotion. 535 Section 5. Subsection (1), paragraphs (a) and (g) of 536 subsection (2), subsection (3), paragraph (b) of subsection (4), 537 and subsections (7) and (8) of section 496.405, Florida 538 Statutes, are amended, and subsections (9) and (10) are added to 539 that section, to read: 540 496.405 Registration statements by charitable organizations 541 and sponsors.— 542 (1)(a)A charitable organization or sponsor, unless 543 exempted pursuant to s. 496.406, which intends to solicit 544 contributions in this state by any means or have funds solicited 545 on its behalf by any other person, charitable organization, 546 sponsor, commercial co-venturer, or professional solicitor, or 547 that participates in a charitable sales promotion or sponsor 548 sales promotion, must, beforeprior toengaging in any of these 549 activities, file an initial registration statement, and a 550 renewal statement annually thereafter, with the department. 551 (a)(b)Except as provided in paragraph (b), any changes in 552 the information submitted on the initial registration statement 553 or the last renewal statement must be updated annually on a 554 renewal statement provided by the department on or before the 555 date that marks 1 year after the date the department approved 556 the initial registration statement as provided in this section. 557 The department shall annually provide a renewal statement to 558 each registrant by mail or by electronic mail at least 30 days 559 before the renewal date. 560 (b) Any changes to the information submitted to the 561 department pursuant to paragraph (2)(d) on the initial 562 registration statement or the last renewal statement must be 563 reported to the department on a form prescribed by the 564 department within 10 days after the change occurs. 565 (c) A charitable organization or sponsor that is required 566 to file an initial registration statement or annual renewal 567 statement may not, beforeprior toapproval of its statement by 568 the department in accordance with subsection (7), solicit 569 contributions or have contributions solicited on its behalf by 570 any other person, charitable organization, sponsor, commercial 571 co-venturer, or professional solicitor, or participate in a 572 charitable sales promotion or sponsor sales promotion. 573(d) For good cause shown, the department may extend the574time for the filing of an annual renewal statement or financial575report for a period not to exceed 60 days, during which time the576previous registration remains in effect.577 (d)(e)In no event shallThe registration of a charitable 578 organization or sponsor may not continue in effect and shall 579 expire without further action of the department: 580 1. After the date the charitable organization or sponsor 581 should have filed, but failed to file, its renewal statement 582financial reportin accordance with this section. 583 2. For failure to provide a financial statement within any 584 extension period provided underands. 496.407.The organization585may not file a renewal statement until it has filed the required586financial report with the department.587 (2) The initial registration statement must be submitted on 588 a form prescribed by the department, signed by an authorized 589 official of the charitable organization or sponsor who shall 590 certify that the registration statement is true and correct, and 591 include the following information or material: 592 (a) A copy of the financial statementreportor Internal 593 Revenue Service Form 990 and all attached schedules or Internal 594 Revenue Service Form 990-EZ and Schedule O required under s. 595 496.407 for the immediately preceding fiscal year. A newly 596 organized charitable organization or sponsor with no financial 597 history must file a budget for the current fiscal year. 598 (g) The following information must be filed with the 599 initial registration statement and must be updated when any 600 change occurs in the information that was previously filed with 601 the initial registration statement: 602 1. The principal street address and telephone number of the 603 charitable organization or sponsor and the street address and 604 telephone numbers of any offices in this state or, if the 605 charitable organization or sponsor does not maintain an office 606 in this state, the name, street address, and telephone number of 607 the person whothathas custody of its financial records. The 608 parent organization that files a consolidated registration 609 statement on behalf of its chapters, branches, or affiliates 610 must additionally provide the street addresses and telephone 611 numbers of all such locations in this state. 612 2. The names and street addresses of the officers, 613 directors, trustees, and the principal salaried executive 614 personnel. 615 3. The date when the charitable organization’s or sponsor’s 616 fiscal year ends. 617 4. A list or description of the major program activities. 618 5. The names, street addresses, and telephone numbers of 619 the individuals or officers who have final responsibility for 620 the custody of the contributions and who will be responsible for 621 the final distribution of the contributions. 622 (3) Each chapter, branch, or affiliate of a parent 623 organization that is required to register under this section 624 musteitherfile a separate registration statement and financial 625 statementreportormustreport the required information to its 626 parent organization, which shall then file, on a form prescribed 627 by the department, a consolidated registration statement for the 628 parent organization and its Florida chapters, branches, and 629 affiliates. A consolidated registration statement filed by a 630 parent organization must include or be accompanied by financial 631 statementsreportsas specified in s. 496.407 for the parent 632 organization and each of its Florida chapters, branches, and 633 affiliates that solicited or received contributions during the 634 preceding fiscal year. However, if all contributions received by 635 chapters, branches, or affiliates are remitted directly into a 636 depository account thatwhichfeeds directly into the parent 637 organization’s centralized accounting system from which all 638 disbursements are made, the parent organization may submit one 639 consolidated financial statementreporton a form prescribed by 640 the department. A copy of Internal Revenue Service Form 990 and 641 all attached schedules filed for the preceding fiscal year, or a 642 copy of Internal Revenue Form 990-EZ and Schedule O for the 643 preceding fiscal year, for the parent organization and each 644 Florida chapter, branch, or affiliate that is required to file 645 such forms must be attached to the consolidated financial 646 statement. The consolidated financial statement must comply with 647 the requirements of s. 496.407 and must reflect the activities 648 of each chapter, branch, or affiliate of the parent 649 organization, including all contributions received in the name 650 of each chapter, branch, or affiliate; all payments made to each 651 chapter, branch, or affiliate; and all administrative fees 652 assessed to each chapter, branch, or affiliate. 653 (4) 654 (b) A charitable organization or sponsor thatwhichfails 655 to file a registration statement by the due date may be assessed 656 an additional fee for such late filing. The late filing fee is 657shall be$25 for each month or part of a month after the date on 658 which the annual renewal statement wasand financial report were659 due to be filed with the department. 660 (7)(a) The department must examine each initial 661 registration statement or annual renewal statement and the 662 supporting documents filed by a charitable organization or 663 sponsor and shall determine whether the registration 664 requirements are satisfied. Within 15 businessworkingdays 665 after its receipt of a statement, the department must examine 666 the statement, notify the applicant of any apparent errors or 667 omissions, and request any additional information the department 668 is allowed by law to require. Failure to correct an error or 669 omission or to supply additional information is not grounds for 670 denial of the initial registration or annual renewal statement 671 unless the department has notified the applicant within such 672 period of 15 business daysthe 15-working-day period. The 673 department must approve or deny each statement, or must notify 674 the applicant that the activity for which she or he seeks 675 registration is exempt from the registration requirement, within 676 15 businessworkingdays after receipt of the initial 677 registration or annual renewal statement or the requested 678 additional information or correction of errors or omissions. Any 679 statement that is not approved or denied within 15 business 680workingdays after receipt of the requested additional 681 information or correction of errors or omissions is approved. 682 Within 7 businessworkingdays after receipt of a notification 683 that the registration requirements are not satisfied, the 684 charitable organization or sponsor may request a hearing. The 685 hearing must be held within 7 businessworkingdays after 686 receipt of the request, and any recommended order, if one is 687 issued, must be rendered within 3 businessworkingdays of the 688 hearing. The final order must then be issued within 2 business 689workingdays after the recommended order. If a recommended order 690 is not issued, the final order must be issued within 5 business 691workingdays after the hearing. The proceedings must be 692 conducted in accordance with chapter 120, except that the time 693 limits and provisions set forth in this subsection prevail to 694 the extent of any conflict. 695 (b) If a charitable organization or sponsor discloses 696 information specified in subparagraphs (2)(d)2.-7. in the 697 initial registration statement or annual renewal statement, the 698 time limits of this subsection are waived, and the department 699 shall process such initial registration statement or annual 700 renewal statement in accordance with the time limits in chapter 701 120. The registration of a charitable organization or sponsor 702 shall be automatically suspended for failure to disclose any 703 information specified in subparagraphs (2)(d)2.-7. until such 704 time as the required information is submitted to the department. 705 (8) ANocharitable organization or sponsor, or any 706 officer, director, trustee, or employee thereof, may notshall707 knowingly allow any officer, director, trustee, or employee of 708 the charitable organization or sponsorof its officers,709directors, trustees, or employeesto solicit contributions on 710 behalf of such charitable organization or sponsor if such 711 officer, director, trustee, or employee has, in any state, 712 regardless of adjudication, been convicted of, or found guilty 713 of, or pled guilty or nolo contendere to, or has been 714 incarcerated within the last 10 years as a result of having 715 previously been convicted of, or found guilty of, or pled guilty 716 or nolo contendere to, any felony within the last 10 years or 717 any crime within the last 10 years involving fraud, theft, 718 larceny, embezzlement, fraudulent conversion, misappropriation 719 of property, or any crime arising from the conduct of a 720 solicitation for a charitable organization or sponsor, or has 721 been enjoined, in any state, from violating any law relating to 722 a charitable solicitation. The prohibitions in this subsection 723 also apply to any misdemeanor in another state which constitutes 724 a disqualifying felony in this state. 725 (9) The department may deny or revoke the registration of a 726 charitable organization or sponsor if the charitable 727 organization or sponsor, or any officer, director, or trustee 728 thereof, has had the right to solicit contributions revoked in 729 any state or has been ordered by any court or governmental 730 agency to cease soliciting contributions within any state. 731 (10) A charitable organization or sponsor registered under 732 this section which ends solicitation activities or participation 733 in charitable sales promotions in this state shall immediately 734 notify the department in writing of the date such activities 735 ceased. 736 Section 6. Section 496.4055, Florida Statutes, is created 737 to read: 738 496.4055 Charitable organization or sponsor board duties.— 739 (1) As used in this section, the term “conflict of interest 740 transaction” means a transaction between a charitable 741 organization or sponsor and another party in which a director, 742 officer, or trustee of the charitable organization or sponsor 743 has a direct or indirect financial interest. The term includes, 744 but is not limited to, the sale, lease, or exchange of property 745 to or from the charitable organization or sponsor; the lending 746 of moneys to or borrowing of moneys from the charitable 747 organization or sponsor; and the payment of compensation for 748 services provided to or from the charitable organization or 749 sponsor. 750 (2) The board of directors, or an authorized committee 751 thereof, of a charitable organization or sponsor required to 752 register with the department under s. 496.405 shall adopt a 753 policy regarding conflict of interest transactions. The policy 754 must require annual certification of compliance with the policy 755 by all directors, officers, and trustees of the charitable 756 organization or sponsor. 757 (3) The charitable organization or sponsor shall provide to 758 the department a copy of the policy adopted under subsection (2) 759 with the annual registration statement required under s. 760 496.405. 761 Section 7. Section 496.407, Florida Statutes, is amended to 762 read: 763 496.407 Financial statementreport.— 764 (1) A charitable organization or sponsor that is required 765 to initially register or annually renew registration must file 766 an annual financial statementreportfor the immediately 767 preceding fiscal year onupona form prescribed by the 768 department. 769 (a) The statementreportmust include the following: 770 1.(a)A balance sheet. 771 2.(b)A statement of support, revenue and expenses, and any 772 change in the fund balance. 773 3.(c)The names and addresses of the charitable 774 organizations or sponsors, professional fundraising consultant, 775 professional solicitors, and commercial co-venturers used, if 776 any, and the amounts received from each of them, if any. 777 4.(d)A statement of functional expenses that must include, 778 but not be limited to, expenses in the following categories: 779 a.1.Program service costs. 780 b.2.Management and general costs. 781 c.3.Fundraising costs. 782 (b) The financial statement must be audited, or reviewed as 783 follows: 784 1. For a charitable organization or sponsor that receives 785 less than $500,000 in annual contributions, a compilation, 786 audit, or review of the financial statement is optional. 787 2. For a charitable organization or sponsor that receives 788 at least $500,000 but less than $1 million in annual 789 contributions, the financial statement shall be reviewed or 790 audited by an independent certified public accountant. 791 3. For a charitable organization or sponsor that receives 792 $1 million or more in annual contributions, the financial 793 statement shall be audited by an independent certified public 794 accountant. 795 (c) Audits and reviews shall be prepared in accordance with 796 the following standards: 797 1. Audits shall be prepared by an independent certified 798 public account in accordance with generally accepted auditing 799 standards, including the Statements on Auditing Standards. 800 2. Reviews shall be prepared by an independent certified 801 public accountant in accordance with the Statements on Standards 802 for Accounting and Review Services. 803 (d) Audited and reviewed financial statements must be 804 accompanied by a report signed and prepared by the independent 805 certified public accountant performing such audit or review. 806 (2) In lieu of the financial statementreportdescribed in 807 subsection (1), a charitable organization or sponsor may submit 808 as its financial statement a copy of its Internal Revenue 809 Service Form 990 and all attached schedules filed for the 810 preceding fiscal year, or a copy of its Internal Revenue Service 811 Form 990-EZ and Schedule O filed for the preceding fiscal year. 812 Such forms and schedules submitted by a charitable organization 813 or sponsor that receives at least $500,000 in annual 814 contributions must be prepared by a certified public accountant 815 or other professional who normally prepares such forms and 816 schedules in the ordinary course of their business. 817 (3) Upon a showing of good cause by a charitable 818 organization or sponsor, the department may extend the time for 819 the filing of a financial statement required under this section 820 by up to 180 days, during which time the previous registration 821 shall remain active. The registration shall be automatically 822 suspended for failure to file the financial statement within the 823 extension period. 824 (4) Upon a showing of good cause, the department may 825 require that an audit or review be conducted for any financial 826 statement submitted by any charitable organization or sponsor. 827 As used in this subsection, the term “good cause” includes, but 828 is not limited to, irregular or inconsistent information 829 provided on a charitable organization’s or sponsor’s financial 830 statement.A charitable organization or sponsor may elect to831also include a financial report that has been audited by an832independent certified public accountant or an audit with opinion833by an independent certified public accountant. In the event that834a charitable organization or sponsor elects to file an audited835financial report, this optional filing must be noted in the836department’s annual report submitted pursuant to s. 496.423.837 Section 8. Section 496.4071, Florida Statutes, is created 838 to read: 839 496.4071 Supplemental financial disclosure.— 840 (1) If, for the immediately preceding fiscal year, a 841 charitable organization or sponsor had more than $1 million in 842 total revenue and spent less than 25 percent of the 843 organization’s total annual functional expenses on program 844 service costs, in addition to any financial statement required 845 under s. 496.407, the charitable organization or sponsor shall 846 file the following supplemental financial information on a form 847 prescribed by the department: 848 (a) The dollar amount and the percentage of total revenue 849 and charitable contributions allocated to funding each of the 850 following administrative functions: 851 1. Total salaries of all persons employed by the charitable 852 organization or sponsor. 853 2. Fundraising, including the names of any professional 854 solicitors, amounts paid to the professional solicitors, and 855 contributions received from a professional solicitor’s campaign. 856 3. Travel expenses. 857 4. Overhead and other expenses related to managing and 858 administering the charitable organization or sponsor. 859 (b) The name of and specific sum earned by or paid to all 860 employees or consultants who earned or were paid more than 861 $100,000 during the immediately preceding fiscal year. 862 (c) The name of and specific sum paid to all service 863 providers who were paid $100,000 or more during the immediately 864 preceding fiscal year and a brief description of the services 865 provided. 866 (d) The dollar amount and percentage of total revenue and 867 charitable contributions allocated to programs. 868 (e) The details of any economic or business transactions 869 between the charitable organization or sponsor and an officer, 870 trustee, or director of the charitable organization or sponsor; 871 the immediate family of an officer, trustee, or director of the 872 charitable organization or sponsor; any entity controlled by an 873 officer, trustee, or director of the charitable organization or 874 sponsor; any entity controlled by the immediate family of an 875 officer, trustee, or director of the charitable organization or 876 sponsor; any entity that employed or engaged for consultation an 877 officer, trustee, or director of the charitable organization or 878 sponsor; and any entity that employed or engaged for 879 consultation the immediate family of an officer, trustee, or 880 director of the charitable organization or sponsor. As used in 881 this paragraph, the term “immediate family” means a parent, 882 spouse, child, sibling, grandparent, grandchild, brother-in-law, 883 sister-in-law, son-in-law, daughter-in-law, mother-in-law, or 884 father-in-law. 885 (2) The supplemental financial information required under 886 subsection (1) must be filed with the department by the 887 charitable organization or sponsor within 30 days after 888 receiving a request for such information from the department. 889 Section 9. Section 496.4072, Florida Statutes, is created 890 to read: 891 496.4072 Financial statements for specific disaster relief 892 solicitations.— 893 (1) A charitable organization or sponsor that solicits 894 contributions in this state for a charitable purpose related to 895 a specific disaster or crisis and receives at least $100,000 in 896 contributions in response to such solicitation shall file 897 quarterly disaster relief financial statements with the 898 department on a form prescribed by the department. The quarterly 899 statements must detail the contributions secured as a result of 900 the solicitation and the manner in which such contributions were 901 expended. 902 (2) The first quarterly statement shall be filed on the 903 last day of the third month following the accrual of at least 904 $100,000 in contributions after the commencement of 905 solicitations for the specific disaster or crisis. The 906 charitable organization or sponsor shall continue to file 907 quarterly statements with the department until the quarter after 908 all contributions raised in response to the solicitation are 909 expended. 910 (3) The department shall post notice on its website of the 911 specific disasters and crises subject to the additional 912 reporting requirements in this section within 10 days after such 913 disaster or crisis. 914 Section 10. Subsections (4), (6), and (9) of section 915 496.409, Florida Statutes, are amended, and subsection (10) is 916 added to that section, to read: 917 496.409 Registration and duties of professional fundraising 918 consultant.— 919 (4) A professional fundraising consultant may enter into a 920 contract or agreement with a charitable organization or sponsor 921 only if the charitable organization or sponsor has complied with 922 all applicable provisions of this chapter. AEverycontract or 923 agreement between a professional fundraising consultant and a 924 charitable organization or sponsor must be in writing, signed by 925 two authorized officials of the charitable organization or 926 sponsor, and filed by the professional fundraising consultant 927 with the department at least 5 days beforeprior tothe 928 performance of any material service by the professional 929 fundraising consultant. Solicitation under the contract or 930 agreement may not begin before the filing of the contract or 931 agreement. 932 (6)(a) The department shall examine each registration 933 statement and all supporting documents filed by a professional 934 fundraising consultant and determine whether the registration 935 requirements are satisfied. If the department determines that 936 the registration requirements are not satisfied, the department 937 must notify the professional fundraising consultant within 15 938 businessworkingdays after its receipt of the registration 939 statement; otherwise the registration statement is approved. 940 Within 7 businessworkingdays after receipt of a notification 941 that the registration requirements are not satisfied, the 942 applicant may request a hearing. The hearing must be held within 943 7 businessworkingdays after receipt of the request, and any 944 recommended order, if one is issued, must be rendered within 3 945 businessworkingdays after the hearing. The final order must 946 then be issued within 2 businessworkingdays after the 947 recommended order. If there is no recommended order, the final 948 order must be issued within 5 businessworkingdays after the 949 hearing. The proceedings must be conducted in accordance with 950 chapter 120, except that the time limits and provisionsset951forthin this subsection prevail to the extent of any conflict. 952 (b) If a professional fundraising consultant discloses 953 information specified in paragraphs (2)(e)-(g) in the initial 954 application for registration or renewal application, the 955 processing time limits of this subsection are waived and the 956 department shall process the initial application for 957 registration or the renewal application in accordance with the 958 time limits in chapter 120. The registration of a professional 959 consultant shall be automatically suspended for failure to 960 disclose any information specified in paragraphs (2)(e)-(g) 961 until such time as the required information is submitted to the 962 department. 963 (9) ANoperson may not act as a professional fundraising 964 consultant, and anoprofessional fundraising consultant, or any 965 officer, director, trustee, or employee thereof, may notshall966 knowingly employ any officer, trustee, director, or employee, if 967 such person has, in any state, regardless of adjudication, been 968 convicted of, or found guilty of, or pled guilty or nolo 969 contendere to, or has been incarcerated within the last 10 years 970 as a result of having previously been convicted of, or found 971 guilty of, or pled guilty or nolo contendere to, any crime 972 within the last 10 years involving fraud, theft, larceny, 973 embezzlement, fraudulent conversion, or misappropriation of 974 property, or any crime arising from the conduct of a 975 solicitation for a charitable organization or sponsor, or has 976 been enjoined in any state from violating any law relating to a 977 charitable solicitation. 978 (10) The department may deny or revoke the registration of 979 a professional fundraising consultant if the professional 980 fundraising consultant, or any of its officers, directors, or 981 trustees, has had the right to solicit contributions revoked in 982 any state or has been ordered by any court or governmental 983 agency to cease soliciting contributions within any state. 984 Section 11. Present subsections (3), (5), (7), (14), and 985 (15) of section 496.410, Florida Statutes, are amended, 986 paragraphs (j), (k), and (l) are added to subsection (2) of that 987 section, paragraphs (i) through (n) are added to subsection (6) 988 of that section, and a new subsection (15) is added to that 989 section, to read: 990 496.410 Registration and duties of professional 991 solicitors.— 992 (2) Applications for registration or renewal of 993 registration must be submitted on a form prescribed by rule of 994 the department, signed by an authorized official of the 995 professional solicitor who shall certify that the report is true 996 and correct, and must include the following information: 997 (j) A list of all telephone numbers the applicant will use 998 to solicit contributions as well as the actual physical address 999 associated with each telephone number and any fictitious names 1000 associated with such address. 1001 (k) A copy of any script, outline, or presentation used by 1002 the applicant to solicit contributions or, if such solicitation 1003 aids are not used, written confirmation thereof. 1004 (l) A copy of sales information or literature provided to a 1005 donor or potential donor by the applicant in connection with a 1006 solicitation. 1007 (3) The application for registration must be accompanied by 1008 a fee of $300.A professional solicitor that is a partnership or1009corporation may register for and pay a single fee on behalf of1010all of its partners, members, officers, directors, agents, and1011employees. In that case,The names and street addresses of all 1012 the officers, employees, and agents of the professional 1013 solicitor and all other persons with whom the professional 1014 solicitor has contracted to work under its direction, including 1015 solicitors, must be listed in the application or furnished to 1016 the department within 5 days after the date of employment or 1017 contractual arrangement. Each registration is valid for 1 year 1018 and. The registrationmay be renewed for an additional 1-year 1019 period upon application to the department and payment of the 1020 registration fee. 1021 (5)(a) The department must examine each registration 1022 statement and supporting documents filed by a professional 1023 solicitor. If the department determines that the registration 1024 requirements are not satisfied, the department must notify the 1025 professional solicitor within 15 businessworkingdays after its 1026 receipt of the registration statement; otherwise the 1027 registration statement is approved. Within 7 businessworking1028 days after receipt of a notification that the registration 1029 requirements are not satisfied, the applicant may request a 1030 hearing. The hearing must be held within 7 businessworkingdays 1031 after receipt of the request, and any recommended order, if one 1032 is issued, must be rendered within 3 businessworkingdays after 1033 the hearing. The final order must then be issued within 2 1034 businessworkingdays after the recommended order. If there is 1035 no recommended order, the final order must be issued within 5 1036 businessworkingdays after the hearing. The proceedings must be 1037 conducted in accordance with chapter 120, except that the time 1038 limits and provisionsset forthin this subsection prevail to 1039 the extent of any conflict. 1040 (b) If a professional solicitor makes a disclosure 1041 specified in paragraphs (2)(f)-(h) in the initial application 1042 for registration or the renewal application, the processing time 1043 limits of this subsection are waived and the department shall 1044 process the initial application for registration or renewal 1045 application in accordance with the time limits in chapter 120. 1046 The registration of a professional solicitor shall be 1047 automatically suspended for failure to disclose any information 1048 specified in paragraphs (2)(f)-(h) until such time as the 1049 required information is submitted to the department. 1050 (6) No less than 15 days before commencing any solicitation 1051 campaign or event, the professional solicitor must file with the 1052 department a solicitation notice on a form prescribed by the 1053 department. The notice must be signed and sworn to by the 1054 contracting officer of the professional solicitor and must 1055 include: 1056 (i) A statement of the guaranteed minimum percentage of the 1057 gross receipts from contributions which will be remitted to the 1058 charitable organization or sponsor, if any, or, if the 1059 solicitation involves the sale of goods, services, or tickets to 1060 a fundraising event, the percentage of the purchase price which 1061 will be remitted to the charitable organization or sponsor, if 1062 any. 1063 (j) The percentage of a contribution which may be deducted 1064 as a charitable contribution under federal income tax laws. 1065 (k) A statement as to whether any owner, director, officer, 1066 trustee, or employee of the professional solicitor is related as 1067 a parent, spouse, child, sibling, grandparent, grandchild, 1068 brother-in-law, sister-in-law, son-in-law, daughter-in-law, 1069 mother-in-law, or father-in-law to: 1070 1. Another officer, director, owner, trustee, or employee 1071 of the professional solicitor. 1072 2. Any officer, director, owner, trustee, or employee of a 1073 charitable organization or sponsor under contract to the 1074 professional solicitor. 1075 3. Any supplier or vendor providing goods or services to a 1076 charitable organization or sponsor under contract to the 1077 professional solicitor. 1078 (l) The beginning and ending dates of the solicitation 1079 campaign. 1080 (m) A copy of any script, outline, or presentation used by 1081 the professional solicitor to solicit contributions for the 1082 solicitation campaign. If such aids are not used, written 1083 confirmation thereof. 1084 (n) A copy of sales information or literature provided to a 1085 donor or potential donor by the professional solicitor in 1086 connection with the solicitation campaign. 1087 (7) A professional solicitor may enter into a contract or 1088 agreement with a charitable organization or sponsor only if the 1089 charitable organization or sponsor has complied with all 1090 applicable provisions of this chapter. AEachcontract or 1091 agreement between a professional solicitor and a charitable 1092 organization or sponsor for each solicitation campaign must be 1093 in writing, signed by two authorized officials of the charitable 1094 organization or sponsor, one of whom must be a member of the 1095 organization’s governing body and one of whom must be the 1096 authorized contracting officer for the professional solicitor, 1097 and contain all of the following provisions: 1098 (a) A statement of the charitable or sponsor purpose and 1099 program for which the solicitation campaign is being conducted. 1100 (b) A statement of the respective obligations of the 1101 professional solicitor and the charitable organization or 1102 sponsor. 1103 (c) A statement of the guaranteed minimum percentage of the 1104 gross receipts from contributions which will be remitted to the 1105 charitable organization or sponsor, if any, or, if the 1106 solicitation involves the sale of goods, services, or tickets to 1107 a fundraising event, the percentage of the purchase price which 1108 will be remitted to the charitable organization or sponsor, if 1109 any. Any stated percentage shall exclude any amount which the 1110 charitable organization or sponsor is to pay as fundraising 1111 costs. 1112 (d) A statement of the percentage of the gross revenue 1113 which the professional solicitor will be compensated. If the 1114 compensation of the professional solicitor is not contingent 1115 upon the number of contributions or the amount of revenue 1116 received, his or her compensation shall be expressed as a 1117 reasonable estimate of the percentage of the gross revenue, and 1118 the contract must clearly disclose the assumptions upon which 1119 the estimate is based. The stated assumptions must be based upon 1120 all of the relevant facts known to the professional solicitor 1121 regarding the solicitation to be conducted by the professional 1122 solicitor. 1123 (e) The effective and termination dates of the contract. 1124 (14) ANoperson may not act as a professional solicitor, 1125 and anoprofessional solicitor, or any officer, director, 1126 trustee, or employee thereof, may notshall, to solicit for 1127 compensation, knowingly employ any officer, trustee, director, 1128 employee, or any person with a controlling interest therein, who 1129 has, in any state, regardless of adjudication, been convicted 1130 of, or found guilty of, or pled guilty or nolo contendere to, or 1131 has been incarcerated within the last 10 years as a result of 1132 having previously been convicted of, or found guilty of, or pled 1133 guilty or nolo contendere to, a felony within the last 10 years 1134 involving fraud, theft, larceny, embezzlement, fraudulent 1135 conversion, or misappropriation of property, or any crime 1136 arising from the conduct of a solicitation for a charitable 1137 organization or sponsor, or has been enjoined in any state from 1138 violating any law relating to a charitable solicitation. The 1139 prohibitions in this subsection also apply to any misdemeanor in 1140 another state which constitutes a disqualifying felony in this 1141 state. 1142 (15) The department may deny or revoke the registration of 1143 a professional solicitor if the professional solicitor, or any 1144 of its officers, directors, trustees, or agents, has had the 1145 right to solicit contributions revoked in any state or has been 1146 ordered by any court or governmental agency to cease soliciting 1147 contributions within any state. 1148 (16)(15)All registration fees must be paid to the 1149 department and deposited into the General Inspection Trust Fund. 1150 Section 12. Section 496.4101, Florida Statutes, is created 1151 to read: 1152 496.4101 Licensure of professional solicitors and certain 1153 employees thereof.— 1154 (1) Each officer, director, trustee, or owner of a 1155 professional solicitor and any employee of a professional 1156 solicitor conducting telephonic solicitations during which a 1157 donor’s or potential donor’s personal financial information is 1158 requested or provided must, before engaging in solicitation 1159 activities, obtain a solicitor license from the department. As 1160 used in this subsection the term “personal financial 1161 information” includes, but is not limited to, social security 1162 numbers, credit card numbers, banking information, and credit 1163 reports. 1164 (2) Persons required to obtain a solicitor license under 1165 subsection (1) shall submit to the department, in such form as 1166 the department prescribes, an application for a solicitor 1167 license. The application must include all of the following 1168 information: 1169 (a) The true name, date of birth, unique identification 1170 number of a driver license or other valid form of 1171 identification, and home address of the applicant. 1172 (b) If the applicant, in any state, regardless of 1173 adjudication, has previously been convicted of, or found guilty 1174 of, or pled guilty or nolo contendere to, or has been 1175 incarcerated within the last 10 years as a result of having 1176 previously been convicted of, or found guilty of, or pled guilty 1177 or nolo contendere to, any crime within the last 10 years 1178 involving fraud, theft, larceny, embezzlement, fraudulent 1179 conversion, or misappropriation of property, or any crime 1180 arising from the conduct of a solicitation for a charitable 1181 organization or sponsor, or has been enjoined, in any state, 1182 from violating any law relating to a charitable solicitation. 1183 (c) If the applicant, in any state, is involved in pending 1184 litigation or has had entered against her or him an injunction, 1185 a temporary restraining order, or a final judgment or order, 1186 including a stipulated judgment or order, an assurance of 1187 voluntary compliance, cease and desist, or any similar document, 1188 in any civil or administrative action involving fraud, theft, 1189 larceny, embezzlement, fraudulent conversion, or 1190 misappropriation of property, or has been enjoined from 1191 violating any law relating to a charitable solicitation. 1192 (3)(a) Each applicant shall submit a complete set of his or 1193 her fingerprints to an agency, entity, or vendor authorized by 1194 s. 943.053(13). The fingerprints shall be forwarded to the 1195 Department of Law Enforcement for state processing, and the 1196 Department of Law Enforcement shall forward the fingerprints to 1197 the Federal Bureau of Investigation for national processing. 1198 (b) Fees for state and national fingerprint processing and 1199 retention shall be borne by the applicant. The state cost for 1200 fingerprint processing is that authorized in s. 943.053(3)(b) 1201 for records provided to persons or entities other than those 1202 specified as exceptions therein. 1203 (c) All fingerprints submitted to the Department of Law 1204 Enforcement as required under this subsection shall be retained 1205 by the Department of Law Enforcement as provided under s. 1206 943.05(2)(g) and (h) and enrolled in the Federal Bureau of 1207 Investigation’s national retained print arrest notification 1208 program. Fingerprints may not be enrolled in the national 1209 retained print arrest notification program until the Department 1210 of Law Enforcement begins participation with the Federal Bureau 1211 of Investigation. Arrest fingerprints will be searched against 1212 the retained prints by the Department of Law Enforcement and the 1213 Federal Bureau of Investigation. 1214 (d) For any renewal of the applicant’s license, the 1215 department shall request the Department of Law Enforcement to 1216 forward the retained fingerprints of the applicant to the 1217 Federal Bureau of Investigation unless the applicant is enrolled 1218 in the national retained print arrest notification program 1219 described in paragraph (c). The fee for the national criminal 1220 history check will be paid as part of the renewal fee to the 1221 department and forwarded by the department to Department of Law 1222 Enforcement. If the applicant’s fingerprints are retained in the 1223 national retained print arrest notification program, the 1224 applicant shall pay the state and national retention fee to the 1225 department which will forward the fee to the Department of Law 1226 Enforcement. 1227 (e) The department shall notify the Department of Law 1228 Enforcement regarding any person whose fingerprints have been 1229 retained but who is no longer licensed under this chapter. 1230 (f) The department shall screen background results to 1231 determine if an applicant meets licensure requirements. 1232 (4) A solicitor license must be renewed annually by the 1233 submission of a renewal application. A solicitor license that is 1234 not renewed expires without further action by the department. 1235 (5) Each applicant for a solicitor license shall remit a 1236 license fee of $50 to the department at the time the initial 1237 application is filed with the department and an annual renewal 1238 fee of $50 thereafter. All fees collected, less the cost of 1239 administration, shall be deposited into the General Inspection 1240 Trust Fund. 1241 (6) Any material change to the information submitted to the 1242 department in the initial application or renewal application for 1243 a solicitor license shall be reported to the department by the 1244 applicant or licensee within 10 days after the change occurs. 1245 The applicant or licensee shall also remit a fee in the amount 1246 of $10 for processing the change to the initial or renewal 1247 application. 1248 (7) It is a violation of this chapter: 1249 (a) For an applicant to provide inaccurate or incomplete 1250 information to the department in the initial or renewal 1251 application for a solicitor license. 1252 (b) For any person specified in subsection (1) to fail to 1253 maintain a solicitor license as required by this section. 1254 (c) For a professional solicitor to allow, require, permit, 1255 or authorize an employee without an active solicitor license 1256 issued under this section to conduct telephonic solicitations. 1257 (8) The department shall adopt rules that allow applicants 1258 to engage in solicitation activities on an interim basis until 1259 such time as a solicitor license is granted or denied. 1260 (9) The department may deny or revoke any solicitor license 1261 if the applicant or licensee has had the right to solicit 1262 contributions revoked in any state, has been ordered by any 1263 court or governmental agency to cease soliciting contributions 1264 within any state, or is subject to any disqualification 1265 specified in s. 496.410(14). 1266 (10) Any administrative proceeding that could result in 1267 entry of an order under this section shall be conducted in 1268 accordance with chapter 120. 1269 Section 13. Subsections (2) and (3) of section 496.411, 1270 Florida Statutes, are amended to read: 1271 496.411 Disclosure requirements and duties of charitable 1272 organizations and sponsors.— 1273 (2) A charitable organization or sponsor soliciting in this 1274 state must include all of the following disclosures at the point 1275 of solicitation: 1276 (a) The name of the charitable organization or sponsor and 1277 state of the principal place of business of the charitable 1278 organization or sponsor.;1279 (b) A description of the purpose or purposes for which the 1280 solicitation is being made.;1281 (c) Upon request, the name and either the address or 1282 telephone number of a representative to whom inquiries could be 1283 addressed.;1284 (d) Upon request, the amount of the contribution which may 1285 be deducted as a charitable contribution under federal income 1286 tax laws.;1287 (e) Upon request, the source from which a written financial 1288 statement may be obtained. Such financial statement must be for 1289 the immediate precedingpastfiscal year and must be consistent 1290 with the annual financial statementreportfiled under s. 1291 496.407. The written financial statement must be provided within 1292 14 days after the request and must state the purpose for which 1293 funds are raised, the total amount of all contributions raised, 1294 the total costs and expenses incurred in raising contributions, 1295 the total amount of contributions dedicated to the stated 1296 purpose or disbursed for the stated purpose, and whether the 1297 services of another person or organization have been contracted 1298 to conduct solicitation activities. 1299 (3) Every charitable organization or sponsor thatwhichis 1300 required to register under s. 496.405 or is exempt under s. 1301 496.406(1)(d) shallmustconspicuously displayin capital1302lettersthe following statement on everyprintedsolicitation, 1303writtenconfirmation, receipt, or reminder of a contribution: 1304 1305 “A COPY OF THE OFFICIAL REGISTRATION AND FINANCIAL 1306 INFORMATION MAY BE OBTAINED FROM THE DIVISION OF 1307 CONSUMER SERVICES BY CALLING TOLL-FREE WITHIN THE 1308 STATE. REGISTRATION DOES NOT IMPLY ENDORSEMENT, 1309 APPROVAL, OR RECOMMENDATION BY THE STATE.” 1310 1311 The statement must include a toll-free number and website for 1312 the division whichthatcan be used to obtain the registration 1313 information. IfWhenthe solicitation consists of more than one 1314 piece, the statement must be displayed prominently in the 1315 solicitation materials. If the solicitation occurs through a 1316 website, the statement must be conspicuously displayed on any 1317 webpage that identifies a mailing address where contributions 1318 are to be sent, identifies a telephone number to call to process 1319 contributions, or provides for online processing of 1320 contributions. 1321 Section 14. Subsection (1) of section 496.412, Florida 1322 Statutes, is amended to read: 1323 496.412 Disclosure requirements and duties of professional 1324 solicitors.— 1325 (1) A professional solicitor must comply with and be 1326 responsible for complying or causing compliance with the 1327 following disclosures: 1328 (a) BeforePrior toorally requesting a contribution, or 1329 contemporaneously with a written request for a contribution, a 1330 professional solicitor must clearly disclose: 1331 1. The name of the professional solicitor as on file with 1332 the department. 1333 2. If the individual acting on behalf of the professional 1334 solicitor identifies himself or herself by name, the 1335 individual’s legal name. 1336 3. The name and state of the principal place of business of 1337 the charitable organization or sponsor and a description of how 1338 the contributions raised by the solicitation will be used for a 1339 charitable or sponsor purpose; or, if there is no charitable 1340 organization or sponsor, a description as to how the 1341 contributions raised by the solicitation will be used for a 1342 charitable or sponsor purpose. 1343 (b) In the case of a solicitation campaign conducted 1344 orally, whether by telephone or otherwise, any written 1345 confirmation, receipt, or reminder sent to any person who has 1346 contributed or has pledged to contribute, shall include a clear 1347 disclosure of the information required by paragraph (a). 1348 (c) In addition to the information required by paragraph 1349 (a), any written confirmation, receipt, or reminder of 1350 contribution made pursuant to an oral solicitation and any 1351writtensolicitation shall conspicuously statein capital1352letters: 1353 1354 “A COPY OF THE OFFICIAL REGISTRATION AND FINANCIAL 1355 INFORMATION MAY BE OBTAINED FROM THE DIVISION OF 1356 CONSUMER SERVICES BY CALLING TOLL-FREE WITHIN THE 1357 STATE. REGISTRATION DOES NOT IMPLY ENDORSEMENT, 1358 APPROVAL, OR RECOMMENDATION BY THE STATE.” 1359 1360 The statement must include a toll-free number and website for 1361 the division whichthatcan be used to obtain the registration 1362 information. IfWhenthe solicitation consists of more than one 1363 piece, the statement must be displayed prominently in the 1364 solicitation materials. If the solicitation occurs through a 1365 website, the statement must be conspicuously displayed on any 1366 webpage that identifies a mailing address where contributions 1367 are to be sent, identifies a telephone number to call to process 1368 contributions, or provides for online processing of 1369 contributions. 1370 (d) If requested by the person being solicited, the 1371 professional solicitor shall inform that person in writing, 1372 within 14 days afterofthe request, of the fixed percentage of 1373 the gross revenue or the reasonable estimate of the percentage 1374 of the gross revenue that the charitable organization or sponsor 1375 will receive as a benefit from the solicitation campaign or 1376 shall immediately notify the person being solicited that the 1377 information is available on the department’s website or by 1378 calling the division’s toll-free number. 1379 (e) If requested by the person being solicited, the 1380 professional solicitor shall inform that person in writing, 1381 within 14 days afterofthe request, of the percentage of the 1382 contribution which may be deducted as a charitable contribution 1383 under federal income tax laws or shall immediately notify the 1384 person being solicited that the information is available on the 1385 department’s website or by calling the division’s toll-free 1386 number. 1387 Section 15. Section 496.4121, Florida Statutes, is created 1388 to read: 1389 496.4121 Collection receptacles used for donations.— 1390 (1) As used in this section, the term “collection 1391 receptacle” means a receptacle used to collect donated clothing, 1392 household items, or other goods for resale. 1393 (2) A collection receptacle must display a permanent sign 1394 or label on each side which contains the following information 1395 printed in letters that are at least 3 inches in height and no 1396 less than one-half inch in width, in a color that contrasts with 1397 the color of the collection receptacle: 1398 (a) For collection receptacles used by a person required to 1399 register under this chapter, the name, business address, 1400 telephone number, and registration number of the charitable 1401 organization or sponsor for whom the solicitation is made. 1402 (b) For collection receptacles placed or maintained in 1403 public view by a person not required to register under this 1404 chapter or by a person not claiming an exemption pursuant to s. 1405 496.406, the name, telephone number, and physical address of the 1406 business conducting the solicitation and the statement: “This is 1407 not a charity. Donations made here support a for-profit business 1408 and are not tax deductible.” 1409 (3) Upon request, a charitable organization or sponsor 1410 using a collection receptacle must provide the donor with 1411 documentation of its tax-exempt status and the registration 1412 issued under this chapter. 1413 Section 16. Subsection (2) of section 496.415, Florida 1414 Statutes, is amended, and subsection (18) is added to that 1415 section, to read: 1416 496.415 Prohibited acts.—It is unlawful for any person in 1417 connection with the planning, conduct, or execution of any 1418 solicitation or charitable or sponsor sales promotion to: 1419 (2)KnowinglySubmit false, misleading, or inaccurate 1420 information in a document that is filed with the department, 1421 provided to the public, or offered in response to a request or 1422 investigation by the department, the Department of Legal 1423 Affairs, or the state attorney. 1424 (18) Fail to remit to a charitable organization or sponsor 1425 the disclosed guaranteed minimum percentage of gross receipts 1426 from contributions as required under s. 496.410(7)(c) or, if the 1427 solicitation involved the sale of goods, services, or tickets to 1428 a fundraising event, the percentage of the purchase price as 1429 agreed in the contract or agreement as required under this 1430 chapter. 1431 Section 17. Subsection (5) of section 496.419, Florida 1432 Statutes, is amended to read: 1433 496.419 Powers of the department.— 1434 (5) Upon a finding as set forth in subsection (4), the 1435 department may enter an order doing one or more of the 1436 following: 1437 (a) Issuing a notice of noncompliance pursuant to s. 1438 120.695; 1439 (b) Issuing a cease and desist order that directs that the 1440 person cease and desist specified fundraising activities; 1441 (c) Refusing to register or canceling or suspending a 1442 registration; 1443 (d) Placing the registrant on probation for a period of 1444 time, subject to such conditions as the department may specify; 1445 (e) Canceling an exemption granted under s. 496.406;and1446 (f) Except as provided in paragraph (g), imposing an 1447 administrative fine not to exceed $5,000$1,000for each act or 1448 omission thatwhichconstitutes a violation of ss. 496.401 1449 496.424 or s. 496.426 or a rule or order. With respect to a s. 1450 501(c)(3) organization, the penalty imposed pursuant to this 1451 subsection mayshallnot exceed $500 per violation for failure 1452 to register under s. 496.405 or file for an exemption under s. 1453 496.406(2). The penalty shall be the entire amount per violation 1454 and is notto be interpreted asa daily penalty; and 1455 (g) Imposing an administrative fine not to exceed $10,000 1456 for a violation of this chapter that involves fraud or 1457 deception. 1458 Section 18. Section 496.4191, Florida Statutes, is created 1459 to read: 1460 496.4191 Additional penalty; immediate suspension.—Upon 1461 notification and subsequent written verification by a law 1462 enforcement agency, a court, a state attorney, or the Florida 1463 Department of Law Enforcement, the department shall immediately 1464 suspend a registration or the processing of an application for a 1465 registration if the registrant, applicant, or any officer or 1466 director of the registrant or applicant is formally charged with 1467 a crime involving fraud, theft, larceny, embezzlement, or 1468 fraudulent conversion or misappropriation of property or any 1469 crime arising from the conduct of a solicitation for a 1470 charitable organization or sponsor until final disposition of 1471 the case or removal or resignation of that officer or director. 1472 Section 19. Section 496.430, Florida Statutes, is created 1473 to read: 1474 496.430 Disqualification for certain tax exemptions.— 1475 (1) In addition to the penalties provided for in s. 1476 496.419(5), the department may issue an order to disqualify a 1477 charitable organization or sponsor from receiving any sales tax 1478 exemption certificate issued by the Department of Revenue if the 1479 department finds a violation of s. 496.419(4). 1480 (2) A charitable organization or sponsor may appeal a 1481 disqualification order by requesting a hearing within 21 days 1482 after notification from the department that it has issued a 1483 disqualification order under this section. The hearing must be 1484 conducted in accordance with chapter 120. 1485 (3) A disqualification order issued by the department 1486 pursuant to this section is effective for 1 year after such 1487 order becomes final. 1488 (4) The department shall provide a disqualification order 1489 to the Department of Revenue within 30 days after such order 1490 becomes final. A final disqualification order is conclusive as 1491 to the charitable organization’s or sponsor’s entitlement to any 1492 sales tax exemption. The Department of Revenue shall revoke or 1493 refuse to grant a sales tax exemption certificate to a 1494 charitable organization or sponsor subject to a final 1495 disqualification order within 30 days after receiving such 1496 disqualification order. A charitable organization or sponsor may 1497 not appeal or challenge the revocation or denial of a sales tax 1498 exemption certificate by the Department of Revenue if such 1499 revocation or denial is based upon a final disqualification 1500 order issued pursuant to this section. 1501 Section 20. Section 496.431, Florida Statutes, is created 1502 to read: 1503 496.431 Severability.—If any provision of this chapter or 1504 its application to any person or circumstance is held invalid, 1505 the invalidity does not affect other provisions or applications 1506 of this chapter which can be given effect without the invalid 1507 provision or application, and to this end the provisions of this 1508 chapter are severable. 1509 Section 21. Paragraph (a) of subsection (3) of section 1510 741.0305, Florida Statutes, is amended to read: 1511 741.0305 Marriage fee reduction for completion of 1512 premarital preparation course.— 1513 (3)(a) All individuals electing to participate in a 1514 premarital preparation course shall choose from the following 1515 list of qualified instructors: 1516 1. A psychologist licensed under chapter 490. 1517 2. A clinical social worker licensed under chapter 491. 1518 3. A marriage and family therapist licensed under chapter 1519 491. 1520 4. A mental health counselor licensed under chapter 491. 1521 5. An official representative of a religious institution 1522 which is recognized under s. 496.404(23)s. 496.404(19), if the 1523 representative has relevant training. 1524 6. Any other provider designated by a judicial circuit, 1525 including, but not limited to, school counselors who are 1526 certified to offer such courses. Each judicial circuit may 1527 establish a roster of area course providers, including those who 1528 offer the course on a sliding fee scale or for free. 1529 Section 22. For the 2014-2015 fiscal year, there is 1530 appropriated to the Department of Agriculture and Consumer 1531 Services, the sums of $179,944 in recurring and $235,584 in 1532 nonrecurring funds from the General Inspection Trust Fund, and 1533 three full-time equivalent positions with associated salary rate 1534 of 110,441 are authorized for the purpose of implementing this 1535 act. 1536 Section 23. This act shall take effect July 1, 2014.