Bill Text: MS HB134 | 2024 | Regular Session | Introduced
Bill Title: Charitable organizations; revise the registration renewal period of certain from every year to every 3 to 5 years.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2024-03-05 - Died In Committee [HB134 Detail]
Download: Mississippi-2024-HB134-Introduced.html
MISSISSIPPI LEGISLATURE
2024 Regular Session
To: Accountability, Efficiency, Transparency
By: Representative Thompson
House Bill 134
AN ACT TO AMEND SECTION 79-11-513, MISSISSIPPI CODE OF 1972, TO REVISE THE PERIOD OF EFFECTIVE REGISTRATION FOR A PROFESSIONAL FUND-RAISER OR FUND-RAISING COUNSEL FOR A CHARITABLE ORGANIZATION FROM ONE YEAR, OR A PART THEREOF, TO THREE TO FIVE YEARS, AS DETERMINED BY THE SECRETARY OF STATE; TO AMEND SECTION 79-11-503, MISSISSIPPI CODE OF 1972, TO REVISE THE RENEWAL PERIOD FOR CHARITABLE ORGANIZATIONS WHICH SOLICIT OR INTEND TO SOLICIT CONTRIBUTIONS FROM EVERY YEAR TO EVERY THREE TO FIVE YEARS, AS DETERMINED BY THE SECRETARY OF STATE; TO AMEND SECTION 79-11-517, MISSISSIPPI CODE OF 1972, TO REVISE THE PERIOD OF EFFECTIVE REGISTRATION FOR A PROFESSIONAL SOLICITOR IN THE EMPLOY OF A PROFESSIONAL FUND-RAISER FROM ONE YEAR, OR A PART THEREOF, TO THREE TO FIVE YEARS, AS DETERMINED BY THE SECRETARY OF STATE; TO AMEND SECTIONS 79-11-507 AND 79-11-505, MISSISSIPPI CODE OF 1972, TO CONFORM TO THE PROVISIONS OF THIS ACT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 79-11-513, Mississippi Code of 1972, is amended as follows:
79-11-513. No person shall
act as a professional fund-raiser or fund-raising counsel for a charitable
organization before he has registered with the Secretary of State or after the
expiration or cancellation of such registration or any renewal thereof. Applications
for registration and renewals shall be in writing sworn to under penalties of
perjury in the form prescribed by the Secretary of State and accompanied by the
filing of a fee of Two Hundred Fifty Dollars ($250.00). The professional fund-raiser
applicant, at the time of making application, shall file with the State
Treasurer and have approved by the Secretary of State a bond in which the
applicant shall be the principal obligor in the sum of Ten Thousand Dollars
($10,000.00) with one or more corporate sureties licensed to do business in
this state whose liability in the aggregate will at least equal such sum. The
bond shall run to the Secretary of State for the use of the state and to any
person who may have a cause of action against the obligor of the bond for any
malfeasance or misfeasance in the conduct of such solicitation; provided, that
the aggregate limit of liability of the surety to the state and to all such
persons shall, in no event, exceed the sum of such bond. Such limitation of
liability, as to the sum of the bond, as to the surety, shall not otherwise
affect any liability to any person by any charitable organization, professional
fund-raiser, professional solicitor or any other person for a violation of this
chapter. Registration when effected shall be for a period of * * * three (3) to
five (5) years, as determined by the Secretary of State, expiring on June
30 or on such other date as prescribed by rule and may be renewed upon written
application, under oath, in the form prescribed by the Secretary of State and
upon the remittance of the renewal fee of Two Hundred Fifty Dollars ($250.00)
and the filing of the bond for additional one-year periods. Every professional
fund-raiser and fund-raising counsel required to register pursuant to Sections
79-11-501 through 79-11-529 shall file * * * a written report every three
(3) to five (5) years with the Secretary of State containing such information
and documentation as he may require by rule.
SECTION 2. Section 79-11-503, Mississippi Code of 1972, is amended as follows:
79-11-503. (1) Except as otherwise provided in Section 79-11-505 and prior to any solicitation of contributions, every charitable organization as defined in Section 79-11-501 which solicits or intends to solicit contributions by any means whatsoever shall file a registration statement with, and pay a filing fee of Fifty Dollars ($50.00) to, the Secretary of State. A registration statement that contains false, misleading, deceptive or incomplete information or documentation shall not be considered sufficient. The registration statement shall be on forms prescribed by the Secretary of State and shall contain the following information and such other information that the Secretary of State may require by rule:
(a) The name of the organization and the name or names under which it intends to solicit contributions;
(b) The names and addresses of the officers, directors, trustees and chief executive officer of the organization;
(c) The addresses of the organization and any offices in this state. If the organization does not maintain a principal office, the name and address of the person having custody of its financial records;
(d) Where and when the organization was legally established, the form of its organization and its tax-exempt status;
(e) The purpose for which the organization and the purpose or purposes for which the contributions to be solicited will be used;
(f) The date on which the fiscal year of the organization ends;
(g) Whether the organization is authorized by any other governmental authority to solicit contributions and a statement of (i) whether the charitable organization or any of its present officers, directors, executive personnel or trustees have ever had a license or registration denied, suspended, revoked or enjoined by any court or other governmental authority in this state or any other state, or (ii) whether the charitable organization has voluntarily entered into an assurance or voluntary discontinuance or agreement with any jurisdiction or federal agency or officer;
(h) The names and addresses of any professional fundraisers or fund-raising counsel who are acting or have agreed to act on behalf of the organization;
(i) Methods by which solicitation will be made;
(j) Copies of contracts between charitable organizations and professional fundraisers or fund-raising counsel relating to financial compensation or profit to be derived by the professional fundraisers or fund-raising counsel. If any such contract is executed after filing of a registration statement, a copy thereof shall be filed within ten (10) days of the date of execution;
(k) The board, group or individual having final authority over the distribution, custody and use of contributions received;
(l) A financial report as required by Section 79-11-507;
(m) With the initial registration only, a copy of the current charter, articles of incorporation, agreement of association, instrument of trust, constitution, or other organizational instrument and a copy of the bylaws of the charitable organization; and
(n) With the initial registration or, if after registration, within thirty (30) days after its receipt, a copy of any federal tax exemption determination letter, any correspondence rescinding the charitable organization's tax-exempt status, or any notification from the Internal Revenue Service of any challenge to or investigation of the charitable organization's continued entitlement to federal tax exemption.
(2) The registration statement shall be signed and sworn to under penalties of perjury by the president or other authorized officer and the chief fiscal officer of the organization.
(3) The Secretary of State shall issue a certificate of registration to a charitable organization once the Secretary of State determines that such organization has complied with all provisions of this chapter. No charitable organization required to be registered under this section shall solicit funds without a valid certificate of registration.
(4) (a) Such registration
shall remain in effect until the time for * * * renewal, which shall be every three (3)
to five (5) years, as determined by the Secretary of State. A charitable
organization shall renew registration by filing forms prescribed by the
Secretary of State and paying the Fifty Dollar ($50.00) renewal fee on or
before the fifteenth day of the fifth month following the close of the charitable
organization's taxable year in the year in which a renewal is required.
(b) The Secretary of
State pursuant to Section 79-11-509 may promulgate rules to provide for
extensions of the due date for filing of the * * * renewal required by this section and may
impose an administrative penalty against any organization which fails to comply
with this section within the time prescribed, or fails to furnish such
additional information as is requested by the Secretary of State within the
required time.
(5) Every registered organization shall notify the Secretary of State within thirty (30) days of any change in the information required to be furnished by such organization under Sections 79-11-501 through 79-11-529.
(6) In no event shall a registered charitable organization continue to solicit contributions in or from this state after the date such organization should have filed, but failed to file, a renewal and the financial report in accordance with the requirements of Sections 79-11-501 through 79-11-529.
(7) If any local, county or
area division of a charitable organization is supervised and controlled by a
superior or parent organization, incorporated, qualified to do business, or
doing business within this state, such local, county or area division shall not
be required to register under this section if the superior or parent
organization files a registration statement on behalf of the local, county or
area division in addition to or as part of its own registration statement. If
a registration statement has been filed by a superior or parent organization as
provided in subsection * * * (1) of this section,
it shall file the * * *
report required under Section 79-11-507 on behalf of the local, county or area
division in addition to or as part of its own report, but the accounting
information required under Section 79-11-507 shall be set forth separately and
not in consolidated form with respect to every local, county or area division
which raises or expends more than Twenty-five Thousand Dollars ($25,000.00).
(8) Any registered charitable organization which for any reason opts not to renew its registration must, upon the expiration of its registration, provide to the Secretary of State a final report including the following, in addition to such other information the Secretary of State may require by rule:
(a) For domestic
charitable organizations which have dissolved pursuant to the Mississippi
Nonprofit Corporation Act * * *;:
(i) All financial statements and reports required by Section 79-11-507;
(ii) Articles of dissolution and certified minutes reflecting the dissolution;
(iii) A list of officers and trustees of the corporation, including their addresses and telephone numbers; and
(iv) A statement signed by an officer of the corporation providing details of the final distribution of assets.
(b) For all other charitable organizations, foreign or domestic, which opt not to renew for any other reason:
(i) All financial statements and reports required by Section 79-11-507; and
(ii) A statement signed by an officer of the charitable organization certifying that the organization has ceased charitable solicitations within the state.
SECTION 3. Section 79-11-517, Mississippi Code of 1972, is amended as follows:
79-11-517. No person shall
act as a professional solicitor in the employ of a professional fund-raiser
required to register pursuant to Section 79-11-513 before he has registered
with the Secretary of State or after the expiration or cancellation of such
registration or any renewal thereof. Application for registration or renewal
shall be in writing sworn to under penalties of perjury in the form prescribed
by the Secretary of State. Such registration when effected shall be for a
period of * * * three (3) to five (5) years, as determined by the
Secretary of State, expiring on June 30 or such other date as prescribed by
rule, and may be renewed upon written application, sworn to under penalties of
perjury, in the form prescribed by the Secretary of State for additional * * * periods.
SECTION 4. Section 79-11-507, Mississippi Code of 1972, is amended as follows:
79-11-507. (1) Every charitable
organization registered pursuant to Section 79-11-503 that shall receive in any
fiscal year contributions in excess of Seven Hundred Fifty Thousand Dollars ($750,000.00)
via monetary donations and all of whose fund-raising functions are carried on by
persons who are unpaid for such services, and every charitable organization registered
pursuant to Section 79-11-503 whose fund-raising functions are not carried on solely
by persons who are unpaid for such services shall file a financial statement for * * * each such fiscal
year with the Secretary of State every three (3) to five (5) years, as determined
by the Secretary of State. The financial statement shall be filed along with
the registration statement required by Section 79-11-503 and any renewals or final
report thereafter. The financial statement shall include a balance sheet and statement
of income and expense and shall be consistent with forms furnished by the Secretary
of State clearly setting forth the following: gross receipts and gross income from
all sources, broken down into total receipts and income from each separate solicitation
project or source; cost of administration; cost of solicitation; cost of programs
designed to inform or educate the public; total net amount disbursed or dedicated
for each major purpose, charitable or otherwise. The statement shall be signed
by the president or other authorized officer and the chief fiscal officer of the
organization, and shall be accompanied by an opinion signed by an independent certified
public accountant that the financial statement therein fairly represents the financial
operations of the organization in sufficient detail to permit public evaluation
of its operations. The financial statement shall be accompanied by any and all
forms required to be filed by a charitable organization with the United States Internal
Revenue Service.
(2) Every organization registered
pursuant to Section 79-11-503 that shall receive in any fiscal year contributions
of at least Two Hundred Fifty Thousand Dollars ($250,000.00) but not more than Seven
Hundred Fifty Thousand Dollars ($750,000.00) via monetary donations and all of whose
fund-raising functions are carried on by persons who are unpaid for their services
shall file a financial statement reviewed by an independent certified public accountant
along with the registration statement required by Section 79-11-503 and any renewals
or final report thereafter with the Secretary of State upon forms prescribed by
him. The reviewed financial statement shall cover * * * each such fiscal
year and include such information as required by the Secretary of State by rule
or otherwise, including, but not limited to, the gross receipts from contributions
and the use of the proceeds of such contributions. Such financial statement
shall be filed every three (3) to five (5) years, as determined by the Secretary
of State. The statement shall be signed by the president or other authorized
officer of the organization who shall certify under penalties of perjury that the
statements therein are true and correct to the best of the signer's knowledge.
The reviewed financial statement shall be accompanied by any and all forms required
to be filed by a charitable organization with the United States Internal Revenue
Service.
(3) Every organization registered
pursuant to Section 79-11-503 that shall receive in any fiscal year contributions
not in excess of Two Hundred Fifty Thousand Dollars ($250,000.00) and all of whose
fund-raising functions are carried on by persons who are unpaid for their services
shall file a financial report along with the registration statement required by
Section 79-11-503 and any renewals or final report thereafter with the Secretary
of State upon forms prescribed by him. Such financial report shall cover * * * each such completed fiscal
year and include such information as required by the Secretary of State by rule
or otherwise, including, but not limited to, the gross receipts from contributions
and the use of the proceeds of such contributions. Such financial statement
shall be filed every three (3) to five (5) years, as determined by the Secretary
of State. The report shall be signed by the president or other authorized officer
of the organization who shall certify under penalties of perjury that the statements
therein are true and correct to the best of the signer's knowledge. Such financial
report shall be accompanied by any and all forms required to be filed by a charitable
organization with the United States Internal Revenue Service.
(4) Any charitable organization receiving more than Twenty-five Thousand Dollars ($25,000.00) but less than Seven Hundred Fifty Thousand Dollars ($750,000.00) via monetary donations shall, at the request of the Secretary of State, submit additional financial information, including, but not limited to, an audited financial statement prepared in accordance with generally accepted accounting principles and accompanied by an opinion signed by an independent certified public accountant that the financial statement therein fairly represents the financial operations of the organization in sufficient detail to permit public evaluation of its operations.
(5) The Secretary of State pursuant to Section 79-11-509 may promulgate rules to provide for extensions of the due date for filing of the financial statements required by this chapter and may impose an administrative penalty against any organization which fails to comply with this section within the time prescribed, or fails to furnish such additional information as is requested by the Secretary of State within the required time.
SECTION 5. Section 79-11-505, Mississippi Code of 1972, is amended as follows:
79-11-505. (1) The registration provisions of Section 79-11-503 and the reporting provisions of Section 79-11-507 shall not apply to the following organizations:
(a) All educational institutions that are recognized by the State Board of Education or that are accredited by a regional accrediting association or by an organization affiliated with the National Commission on Accrediting, any foundation having an established identity with any of the aforementioned educational institutions, any other educational institution which makes the solicitation of contributions solely by its student body, alumni, faculty and trustees and their families or a library established under the laws of this state.
(b) Fraternal, patriotic, social, educational, alumni organizations and historical societies when solicitation of contributions is made solely by their membership; however, posts of the American Legion and posts of the Veterans of Foreign Wars of the United States may utilize nonmembers to assist designated supervisors in the conduct of bingo under the Charitable Bingo Law and qualify for this exemption. This exemption shall be extended to any subsidiary of a parent or superior organization if such solicitation is made solely by the membership of the subsidiary, parent or superior organization.
(c) Persons requesting any contributions for the relief or benefit of any individual, specified by name at the time of the solicitation, if the contributions collected are turned over to the named beneficiary, first deducting reasonable expenses for costs of banquets or social gatherings, if any, provided all fundraising functions are carried on by persons who are unpaid, directly or indirectly, for such services.
(d) Any charitable organization which does not intend to solicit and receive and does not actually receive contributions in excess of Twenty-five Thousand Dollars ($25,000.00) during any twelve-month period ending June 30 of any year or on such other date as prescribed by rule, provided all of its fundraising functions are carried on by persons who are unpaid for such services. However, if the gross contributions received by such charitable organization during any twelve-month period ending June 30 of any year or other date as prescribed by rule shall be in excess of Twenty-five Thousand Dollars ($25,000.00) it shall, within thirty (30) days after the date it shall have received total contributions in excess of Twenty-five Thousand Dollars ($25,000.00), register with and report to the Secretary of State as required by this chapter.
(e) Any charitable
organization receiving an allocation from an incorporated community chest or
united fund, provided such chest or fund is complying with the provisions of
Sections 79-11-501 through 79-11-529 relating to registration and filing of * * * reports with the Secretary of State, and
provided such organization does not actually receive, in addition to such
allocation, contributions in excess of Twenty-five Thousand Dollars ($25,000.00)
during any twelve-month period ending June 30 of any year or such other date as
prescribed by rule, and provided further, that all the fundraising functions of
such organization are carried on by persons who are unpaid for such services.
However, if the gross contributions other than such allocation received by such
charitable organization during any twelve-month period ending June 30 of any
year or on such other date as prescribed by rule shall be in excess of Twenty-five
Thousand Dollars ($25,000.00), it shall, within thirty (30) days after the date
it shall have received such contributions in excess of Twenty-five Thousand
Dollars ($25,000.00), register with and report to the Secretary of State as
required by this chapter.
(f) All volunteer fire departments or rescue units, rural or otherwise, chartered under the laws and statutes of the State of Mississippi as nonprofit corporations.
(g) Any humane society organized under the laws of Mississippi which receives not less than fifty percent (50%) of its annual funding from contracts with counties or municipalities for the care and keeping of estrays.
(h) Any other organization which the Secretary of State by rule or order exempts from the registration requirements of this chapter upon finding that (i) such registration is neither necessary in the public interest nor for the protection of contributors, or (ii) such exemption shall further the objectives of compatibility with uniformity among the states.
(2) Prior to any solicitations for contributions, each charitable organization claiming to be exempt shall file a Notice of Exemption on the forms prescribed by the Secretary of State. In any proceeding under this chapter, the burden of proving an exemption, or an exception from a definition, is upon the person claiming it.
SECTION 6. This act shall take effect and be in force from and after July 1, 2024.
