Bill Text: GA HB863 | 2009-2010 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Charitable solicitations; accounting; revise certain provisions

Spectrum: Partisan Bill (Republican 7-0)

Status: (Passed) 2010-07-01 - Effective Date [HB863 Detail]

Download: Georgia-2009-HB863-Introduced.html

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09 LC 36 1466ER

House Bill 863

By: Representatives Dempsey of the 13th, Peake of the 137th, Smith of the 131st, Carter of the 175th, Stephens of the 164th, and others

A BILL TO BE ENTITLED
AN ACT

To amend Chapter 17 of Title 43 of the Official Code of Georgia Annotated, relating to charitable solicitations, so as to revise certain provisions related to charitable solicitations; to require certain information be provided as part of the accounting relating to certain contributions; to provide for applicability of provisions relating to disclosures required by charitable organizations, paid solicitors, or solicitor agents; to provide requirements for use of collection receptacles for certain donations; to define a certain term; to provide for related matters; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.

Chapter 17 of Title 43 of the Official Code of Georgia Annotated, relating to charitable solicitations, is amended by revising subsection (g) of Code Section 43-17-3, relating to registration of paid solicitors, renewal, financial statements, denial of registration, amendments, contracts, solicitation notices, accounting, deposit of contributions, and records, as follows:

"(g) Within 90 days after a solicitation campaign has been completed, and on the anniversary of the commencement of a solicitation campaign lasting more than one year, the paid solicitor shall account to the charitable organization with whom it has contracted and to the Secretary of State for all contributions collected and expenses paid. The accounting shall be in the form of a written report, submitted to the charitable organization and to the Secretary of State, shall be retained by the charitable organization for three years, and shall contain the following information:

(1) The total gross receipts;

(2) A description of how the gross receipts were distributed, including an itemized list of all expenses, commissions, and other costs of the fundraising campaign and the net amount paid to the charitable organization for its charitable purposes after payment of all fundraising expenses, commissions, and other costs;

(3) The signature of the charitable organization acknowledging its agreement with the accuracy of the report, or a statement from the paid solicitor stating the reasons why such signature has not been obtained within the prescribed period, including a summary of any communications from the charitable organization contesting the accuracy of the report; and

(4) With, respect to any contributions of boats, motor vehicles, clothing, shoes, books, appliances, and other household items received as a result of solicitations by a paid solicitor:

(A) The names and addresses of any persons to whom such contributions were delivered by the paid solicitor, by the charitable organization whose name was used in connection with the solicitation, or by their agents; provided, however, this subparagraph shall not apply to consumer products which are delivered to a charitable organization to be sold at retail by the charitable organization with the proceeds of such sales being used to further the stated charitable purpose of the organization;

(B) The total consideration, if any, received by the paid solicitor, by the charitable organization, or by their agents from such persons for such contributions; and

(C) The manner in which such consideration was calculated; and

(4)(5) Such other information as the Secretary of State by rule may require."

SECTION 2.

Said chapter is further amended by revising Code Section 43-17-8, relating to registration of paid solicitors and certain disclosures, as follows:

"43-17-8.

(a) Every charitable organization, paid solicitor, or solicitor agent required to be registered under this Code section, at the time of any solicitation that occurs in or from this state, shall include the following disclosures:

(1) The name and location of the paid solicitor and solicitor agent, if any;

(2) The name and location of the charitable organization for which the solicitation is being made;

(3) That the following information will be sent upon request:

(A) A full and fair description of the charitable program for which the solicitation campaign is being carried out and, if different, a full and fair description of the programs and activities of the charitable organization on whose behalf the solicitation is being carried out; and

(B) A financial statement or summary which shall be consistent with the financial statement required to be filed with the Secretary of State pursuant to Code Section 43-17-5; and

(4) If made by a solicitor agent or paid solicitor, that the solicitation is being made by a paid solicitor on behalf of the charitable organization and not by a volunteer and inform the person being solicited that the contract disclosing the financial arrangements between the paid solicitor and the charity is on file with and available from the Secretary of State.

(b) This Code section shall not apply to charitable solicitations subject to and in compliance with the provisions of Code Section 43-17-8.1."

SECTION 3.

Said chapter is further amended by adding a new Code section to read as follows:

"43-17-8.1.

(a) As used in this Code section, the term 'collection receptacle' means a container which is not regularly attended by a person representing the charitable organization soliciting a charitable donation for the purpose of collecting donations of clothing or other tangible items.

(b) When any person makes a solicitation of donation of goods and tangible items from the public by encouraging donations of such goods and items into a collection receptacle the provisions of this Code section shall apply to all such solicitations.

(c) If the collection receptacle is owned or operated entirely by a charitable organization exempt from taxation pursuant to Section 501(c)(3) of the United States Internal Revenue Code of 1986, the receptacle shall contain the following information in boldface letters at least two inches high on the front of the collection receptacle and directly underneath the deposit door stating:

(1) The name, address, telephone number, and website, if any, of the charitable organization that owns or operates the collection receptacle, from which persons may obtain additional information about the charitable organization, including the address of its principal office and its telephone number; and

(2) Whether or not the charitable organization is registered with the Secretary of State and, if it is registered, a statement that additional information may be obtained from the Secretary of State, including the charitable purpose for which the charitable organization exists.

(d) If the collection receptacle is owned or operated entirely or in part by a solicitor agent, a paid solicitor, or any entity other than a religious organization or a charitable organization, it shall be unlawful for any person to collect donations of goods or tangible items in a collection receptacle and resell the donated items for profit unless the collection receptacle prominently displays a statement in boldface letters at least two inches high located on the front of the collection receptacle and directly underneath the deposit door stating: 'DONATIONS ARE NOT FOR CHARITABLE ORGANIZATIONS AND WILL BE RESOLD FOR PROFIT.' The name, address, telephone number, and website, if any, of the owner or operator shall also be printed in the same area in letters at least two inches high.

(e) If the collection receptacle is owned or operated entirely or in part by a solicitor agent, a paid solicitor, or any entity other than a religious organization or a charitable organization, it shall be unlawful for any person to collect donations of goods or tangible items in a collection receptacle and resell the donated items where some or all of the proceeds from the sale are directly given to one or more charitable organizations, unless the collection receptacle prominently displays a statement in boldface letters at least two inches high located on the front of the collection receptacle and directly underneath the deposit door stating: 'THIS COLLECTION BOX IS MAINTAINED BY _________. THE ITEMS DEPOSITED IN THIS BOX WILL BE SOLD BY ________. ________HAS A CONTRACT WITH _________ [NAME OF CHARITABLE ORGANIZATION] TO PAY A PORTION OF THE PROCEEDS FROM THE SALE OF THESE ITEMS TO ________________ [CHARITABLE ORGANIZATION]. FURTHER INFORMATION ABOUT THESE PAYMENTS CAN BE OBTAINED FROM ________________ AT [ADDRESS AND TELEPHONE NUMBER OF PAID SOLICITOR] AND _____________ [ADDRESS AND TELEPHONE NUMBER OF CHARITABLE ORGANIZATION]. IN ADDITION, FURTHER INFORMATION ABOUT ______________ (NAME OF THE OWNER OR OPERATOR) AND THE CHARITABLE PURPOSE OF__________[NAME OF CHARITABLE ORGANIZATION] CAN BE OBTAINED FROM THE SECRETARY OF STATE.'

(f) The Secretary of State may, by rule or regulation, specify additional contact information which may be required to be disclosed for use by the Secretary of State."

SECTION 4.

All laws and parts of laws in conflict with this Act are repealed.