HB-6633, As Passed House, December 2, 2008

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 6633

 

November 12, 2008, Introduced by Rep. Tobocman and referred to the Committee on Commerce.

 

     A bill to amend 1975 PA 169, entitled

 

"Charitable organizations and solicitations act,"

 

by amending section 3 (MCL 400.273).

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3. (1) Before a solicitation, a Unless the charitable

 

organization which is not an exempt organization and which is not

 

described in that is exempt from licensing and reporting under

 

section 13, which a charitable organization that solicits or

 

intends to solicit or receives or intends to receive contributions

 

from persons by any means whatsoever, shall file an application for

 

a license under this act with the attorney general, upon on forms

 

prescribed by him , an application for a license or her. It

 

     (2) An application for a license under this act shall include

 

the following information:


 

     (a) The name of the organization and the any name under which

 

it intends it uses or intends to use to solicit contributions.

 

     (b) The principal address of the organization and the address

 

of any office in this state. If the organization does not maintain

 

a principal office, the organization shall include the name and

 

address of the person having that has custody of its financial

 

records.

 

     (c) The names and addresses of the officers, directors,

 

trustees, chief executive officer, and state agent of the

 

organization.

 

     (d) Where and when the organization was legally established,

 

the form of its organization, and its tax exempt status.

 

     (e) The purpose for which it the organization is organized and

 

the purposes for which contributions to be solicited will be used.

 

     (f) The fiscal year date of the organization.

 

     (g) Whether the organization is or has ever been enjoined from

 

soliciting contributions.

 

     (h) All methods by which solicitations will be made.

 

     (i) Copies of contracts between charitable organizations and

 

professional fund raisers relating to financial compensation or

 

profit to be derived by the professional fund raisers. When the If

 

a contract described in this subdivision is executed after filing

 

of the application, statement, the organization shall file a copy

 

shall be filed of the contract with the attorney general within 10

 

days of the date of execution.

 

     (j) For the purpose of determining whether a charitable

 

organization meets the monetary thresholds described in subdivision


 

(k), the amount of contributions and net fund-raising revenue it

 

received in its immediately preceding tax year, as reported on the

 

charitable organization's internal revenue form 990, 990-EZ, or

 

990-PF, excluding government grants and contributions and

 

restricted grants from foundations.

 

     (k) If the charitable organization received contributions in

 

its immediately preceding tax year, as reported on the charitable

 

organization's internal revenue service form 990, 990-EZ, or 990-

 

PF, excluding government grants and contributions and restricted

 

grants from foundations, in the amount of $500,000.00 or more,

 

financial statements prepared according to generally accepted

 

accounting principles that are audited by an independent certified

 

public accountant. If the charitable organization received

 

contributions in its immediately preceding tax year, as reported on

 

the charitable organization's internal revenue service form 990,

 

990-EZ, or 990-PF, excluding government grants and contributions

 

and restricted grants from foundations, in the amount of

 

$250,000.00 or more, but less that $500,000.00, the charitable

 

organization shall provide financial statements that are either

 

reviewed or audited by an independent certified public accountant.

 

The attorney general may waive this requirement 1 time for a

 

charitable organization.

 

     (l) (j) Other information as required by rule.