DAR File No. 29427

Commerce, Consumer Protection

R152-22

Charitable Solicitations Act

NOTICE OF PROPOSED RULE

DAR File No.: 29427
Filed: 01/19/2007, 03:05
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

In an effort to better determine whether violations of the Charitable Solicitations Act have occurred, the proposed rule filing requires that charitable organizations, professional fund raisers, and fund raising counsel or consultants disclose on their application whether they have conducted activities regulated by the Charitable Solicitations Act, Title 13, Chapter 22, without being duly registered with the Division. The filing also makes corrections to statutory references.

Summary of the rule or change:

The proposed rule filing requires that charitable organizations, professional fund raisers, and fund raising counsel or consultants disclose whether they have conducted activities regulated by the Charitable Solicitations Act, Title 13, Chapter 22, without being duly registered with the Division. The filing also corrects statutory references.

State statutory or constitutional authorization for this rule:

Sections 13-2-5, 13-22-6, 13-22-8, 13-22-9, and 13-22-10

Anticipated cost or savings to:

the state budget:

There are no anticipated costs or savings to the state budget. The filing has no impact on the cost to administer the rule. Consumer Protection will continue to evaluate application forms; the added time to assess the newly-required statements will be insignificant.

local governments:

This filing does not affect local governments; therefore, there are no anticipated costs or savings to local governments. Local government neither regulate individuals under the Charitable Solicitations Act, nor do they engage in activities covered by the Act.

other persons:

Charitable organizations, professional fund raisers, and fund raising counsel or consultants will face a minimal amount of increased time to complete the application form by being required to disclose whether they have conducted activities regulated by the Charitable Solicitations Act without being duly registered.

Compliance costs for affected persons:

Charitable organizations, professional fund raisers, and fund raising counsel or consultants will face a minimal amount of increased time to complete the application form by being required to disclose whether they have conducted activities regulated by the Charitable Solicitations Act without being duly registered.

Comments by the department head on the fiscal impact the rule may have on businesses:

No fiscal impact to businesses is anticipated as a result of this rule filing beyond those addressed in the rule summary. Francine Giani, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Commerce
Consumer Protection
HEBER M WELLS BLDG
160 E 300 S
SALT LAKE CITY UT 84111-2316

Direct questions regarding this rule to:

Thomas Copeland at the above address, by phone at 801-530-6601, by FAX at 801-530-6001, or by Internet E-mail at tcopeland@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

03/19/2007

This rule may become effective on:

03/26/2007

Authorized by:

Kevin V Olsen, Director

R152. Commerce, Consumer Protection.

R152-22. Charitable Solicitations Act.

R152-22-3. Application for Charitable Organization Permit.

(1) Any application for registration as a charitable organization shall be executed on the form authorized by the Division.

(2) A statement of collections and expenditures shall be executed on the form authorized by the division.

(3) Applicants or registrants shall submit to the division, on request:

(a) an updated copy of a financial statement prepared by an independent certified public accountant;

(b) a copy of any written contracts, agreements or other documents showing to whom the applicant or registrant disbursed the funds or a portion of the funds contributed to it;

(c) a copy of the applicant's or registrant's articles of incorporation or other organizational documentation showing current legal status;

(d) a copy of the applicant's or registrant's current by-laws or other policies and procedures governing day to day operations;

(e) a setting forth of the applicant's or registrant's registered agent within the State of Utah for purposes of service of process, including his, her or its name, street address, telephone and facsimile numbers;

(f) a copy of the applicant's or registrant's IRS Section [501(c)(e)]501(c)(3) tax exemption letter, if applicable;

(g) either the social security number or driver's license number of each of the applicant's or registrant's board of directors and officers, if a corporation, or partners or the individual applicant or registrant, for the purposes of background checks; [and]

(h) a copy of the applicant's IRS Form 990, 990EZ or 990PF[.]; and

(i) a statement as to whether the charitable organization has conducted activities regulated by the Charitable Solicitations Act, Utah Code Title 13, Chapter 22, without being duly registered with the Division.

(4) All initial applications and renewals of registration in accordance with Section [13-22-5]13-22-6 shall be processed within twenty (20) business days after their receipt by the division.

 

R152-22-6. Application for Professional Fund Raiser, Fund Raising Counsel or Consultant Permit.

(1) Any application for a professional fund raiser, fund raising counsel or consultant permit shall be executed on the form provided by the Division.

(2) The application shall include a copy of all contracts, agreements, or other documents showing:

(a) the relationship and terms of employment or engagement between the applicant and the organization on whose behalf the applicant proposes to act as a professional fund raiser, fund raising counsel or consultant;

(b) the terms of any direct or indirect compensation, in whatever form, paid or promised to the applicant, including the method of payment and the basis for calculating the amounts of payment;

(c) a copy of the applicant's or registrant's articles of incorporation or other organizational documentation showing current legal status;

(d) a copy of the applicant's or registrant's current by-laws or other policies and procedures governing day to day operations;

(e) a setting forth of the applicant's or registrant's registered agent within the State of Utah for purposes of service of process, including his, her or its name, street address, telephone and facsimile numbers;[ and]

(f) either the social security number or driver's license number of each of the applicant's or registrant's board of directors and officers, if a corporation, or partners or the individual applicant or registrant, for the purposes of background checks[.]; and

(g) a statement as to whether the professional fund raiser, fund raising counsel or consultant has conducted activities regulated by the Charitable Solicitations Act, Utah Code Title 13, Chapter 22, without being duly registered with the Division.

(3) All initial applications and renewals of registration in accordance with Section [13-22-5]13-22-9 shall be processed within twenty (20) business days after their receipt by the division.

 

KEY: charit[y]ies, consumer protection, solicitations

Date of Enactment or Last Substantive Amendment: [December 22, 2006]2007

Notice of Continuation: October 30, 2002

Authorizing, and Implemented or Interpreted Law: 13-2-5; 13-22-6; 13-22-8; 13-22-9; 13-22-10