Senate
Study
Bill
3191
-
Introduced
SENATE/HOUSE
FILE
_____
BY
(PROPOSED
ATTORNEY
GENERAL
BILL)
A
BILL
FOR
An
Act
relating
to
charitable
solicitations,
by
providing
1
for
registration
requirements,
providing
for
fees
and
2
appropriations,
imposing
penalties,
and
including
effective
3
date
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
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Section
1.
NEW
SECTION
.
13D.1
Definitions.
1
1.
“Business
association”
means
the
same
as
defined
in
2
section
202B.102.
3
2.
“Charitable
organization”
means
a
person
who
solicits
or
4
purports
to
solicit
contributions
for
a
charitable
purpose
and
5
who
receives
contributions.
6
3.
“Charitable
purpose”
means
a
benevolent,
educational,
7
philanthropic,
humane,
scientific,
patriotic,
social
welfare
or
8
advocacy,
public
health,
environmental,
conservation,
civic,
9
or
other
charitable
objective.
10
4.
“Charitable
sales
promotion”
means
an
advertising
or
11
sales
campaign
which
is
conducted
by
a
commercial
coventurer
12
and
which
represents
that
the
purchase
or
use
of
goods
or
13
services
offered
by
the
commercial
coventurer
will
benefit,
in
14
whole
or
in
part,
a
charitable
organization
or
purpose.
15
5.
“Commercial
coventurer”
means
a
person
who,
for
profit,
16
is
regularly
and
primarily
engaged
in
trade
or
commerce,
other
17
than
in
connection
with
soliciting
for
charitable
organizations
18
or
purposes,
and
who
conducts
a
charitable
sales
promotion.
19
6.
a.
“Contribution”
means
the
grant,
promise,
or
pledge
20
of
money,
credit,
property,
financial
assistance,
or
any
other
21
thing
of
value
provided
in
response
to
a
solicitation.
22
b.
“Contribution”
does
not
include
bona
fide
fees,
dues,
23
or
assessments
paid
by
members
of
a
charitable
organization
24
if
membership
in
the
organization
is
not
conferred
primarily
25
as
consideration
for
making
a
contribution
in
response
to
a
26
solicitation.
27
7.
“Internal
Revenue
Code”
means
26
U.S.C.
§
1
et
seq.,
28
designated
as
the
Internal
Revenue
Code
of
1986
by
the
Tax
29
Reform
Act
of
1986,
Pub.
L.
No.
99-514,
including
amendments.
30
8.
“Internal
revenue
service”
means
the
internal
revenue
31
service
of
the
United
States
department
of
the
treasury.
32
9.
“Political
organization”
means
a
political
party,
a
33
candidate
for
federal
or
state
office,
or
a
political
action
34
committee
formed
pursuant
to
the
federal
Election
Campaign
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Act,
2
U.S.C.
§
431
et
seq.,
and
required
to
file
financial
1
information
with
federal
or
state
elections
commissions.
2
10.
“Professional
commercial
fund-raiser”
means
any
person
3
who
for
compensation
solicits
contributions
in
Iowa
for
a
4
charitable
organization
other
than
the
person.
A
person
whose
5
sole
responsibility
is
to
mail
fund-raising
literature
is
not
a
6
professional
commercial
fund-raiser.
7
a.
“Professional
commercial
fund-raiser”
includes
any
8
person,
other
than
a
bona
fide
officer
or
regular
employee
of
9
a
charitable
organization,
who
is
retained
by
a
charitable
10
organization
for
a
fixed
fee
or
rate
under
a
written
agreement
11
to
plan,
manage,
advise,
consult,
or
prepare
material
for
or
12
with
respect
to
the
solicitation
in
this
state
of
contributions
13
for
a
charitable
organization
but
who
does
not
solicit
14
contributions
or
employ,
procure,
or
engage
any
compensated
15
person
to
solicit
contributions.
16
b.
(1)
An
attorney
licensed
to
practice
law,
an
investment
17
adviser
or
investment
adviser
representative
as
defined
in
18
section
502.102,
or
a
person
engaged
in
banking
as
provided
in
19
section
554.4105,
who
advises
a
person
to
make
a
charitable
20
contribution
is
not,
as
a
result
of
such
advice,
a
professional
21
commercial
fund-raiser.
22
(2)
A
bona
fide
salaried
officer,
employee,
or
volunteer
23
of
a
charitable
organization
is
not
a
professional
commercial
24
fund-raiser.
25
(3)
A
political
organization
is
not
a
professional
26
commercial
fund-raiser.
27
(4)
A
religious
organization
is
not
a
professional
28
commercial
fund-raiser.
29
11.
“Record”
means
a
book,
financial
statement,
paper,
30
correspondence,
memorandum,
agreement,
or
other
information
in
31
a
printed
or
electronic
form
that
the
attorney
general
deems
32
relevant
or
material
to
an
inquiry
made
under
this
chapter.
33
12.
“Religious
organization”
means
an
organization
that
34
is
exempt
from
filing
a
federal
annual
information
return
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pursuant
to
26
U.S.C.
§
6033(a)(3)(A)(i)
or
(iii),
26
U.S.C.
§
1
6033(a)(3)(C)(i),
or
pursuant
to
26
C.F.R.
§
1.6033-2(g)(1)(i)
2
through
(iv),
or
26
C.F.R.
§
1.6033-2(g)(1)(vii).
3
13.
a.
“Solicit”
or
“solicitation”
means
a
request,
4
made
directly
or
indirectly,
for
a
contribution
on
the
5
representation
that
the
contribution
will
be
used
for
a
6
charitable
purpose.
A
solicitation
is
deemed
to
have
taken
7
place
whether
or
not
the
person
making
the
solicitation
8
receives
a
contribution.
9
b.
“Solicitation”
does
not
include
an
application
for
10
a
grant
from
any
governmental
entity
or
private
nonprofit
11
foundation.
12
14.
“Solicitation
campaign”
means
more
than
one
solicitation
13
made
by
the
same
person,
if
the
solicitations
are
similar
in
14
content
or
are
based
on
a
similar
representation,
and
any
of
15
the
following
applies:
16
a.
The
solicitations
result
in
or
are
represented
to
result
17
in
an
event.
18
b.
The
solicitations
occur
or
are
intended
to
occur
for
a
19
specific
time
period.
20
c.
The
solicitations
occur
for
an
indefinite
period
of
time
21
within
the
same
calendar
year.
22
15.
“Volunteer”
means
a
person
who
performs
a
service
for
a
23
charitable
organization
or
charitable
purpose
and
who
does
not
24
receive
financial
remuneration
or
who
has
not
been
expressly
25
nor
impliedly
promised
to
be
paid
financial
remuneration
for
26
performing
such
service.
27
Sec.
2.
NEW
SECTION
.
13D.2
Charitable
organizations
——
28
registration
requirements.
29
1.
A
charitable
organization
must
be
registered
with
the
30
attorney
general
prior
to
soliciting
contributions
in
this
31
state
by
any
means,
having
contributions
solicited
in
this
32
state
on
its
behalf
by
any
other
person,
or
participating
in
33
a
charitable
sales
promotion.
34
2.
In
order
to
be
registered,
a
charitable
organization
must
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file
a
registration
statement
with
the
attorney
general
and
1
must
comply
with
the
annual
renewal
requirement
as
provided
in
2
this
chapter.
3
3.
A
registration
statement
shall
contain
information
4
required
by
the
attorney
general,
including
but
not
limited
to
5
all
of
the
following:
6
a.
The
name
of
the
charitable
organization,
the
purpose
for
7
which
it
is
organized,
and
the
name
or
names
under
which
it
8
intends
to
solicit
contributions.
9
b.
The
mailing
address,
electronic
mail
address,
and
10
telephone
number
of
the
principal
place
of
business
of
the
11
charitable
organization
and
the
mailing
address,
electronic
12
mail
address,
and
telephone
number
of
each
of
its
offices
in
13
this
state.
If
the
charitable
organization
does
not
maintain
14
an
office
in
this
state,
the
registration
statement
shall
15
include
the
name,
mailing
address,
electronic
mail
address,
16
and
telephone
number
of
the
person
who
has
custody
of
the
17
charitable
organization’s
financial
records.
18
c.
The
name
and
address
of
each
officer,
director,
trustee,
19
or
executive
personnel
of
the
charitable
organization.
20
d.
The
last
day
of
the
fiscal
year
of
the
charitable
21
organization.
22
e.
The
place
and
date
when
the
charitable
organization
was
23
legally
established,
the
legal
form
of
its
organization,
and
24
its
tax-exempt
status.
25
f.
The
name
and
address
of
each
professional
commercial
26
fund-raiser
and
each
commercial
coventurer
who
is
acting
or
has
27
agreed
to
act
on
behalf
of
the
charitable
organization.
If
the
28
professional
commercial
fund-raiser
or
commercial
coventurer
29
is
a
business
association
organized
as
a
legal
entity,
the
30
charitable
organization
shall
list
only
the
name
and
address
of
31
the
business
association.
32
g.
Any
other
information
determined
relevant
by
the
attorney
33
general.
34
4.
A
charitable
organization
required
to
register
under
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this
chapter
shall
file
a
financial
report
with
the
attorney
1
general.
The
financial
report
shall
include
information
for
2
the
charitable
organization’s
most
recent
fiscal
year.
The
3
charitable
organization
shall
file
the
financial
report
on
or
4
before
the
fifteenth
day
of
the
fifth
calendar
month
after
the
5
close
of
each
fiscal
year
of
the
charitable
organization.
6
a.
The
charitable
organization
may
file,
in
lieu
of
a
7
financial
report,
a
copy
of
its
completed
federal
tax
form
8
990
as
promulgated
by
the
internal
revenue
service
for
the
9
charitable
organization’s
most
recent
fiscal
year,
including
10
all
schedules
except
schedules
of
donors,
for
the
most
recent
11
fiscal
year.
12
b.
A
charitable
organization
may
apply
to
the
attorney
13
general
requesting
an
extension
of
time
to
file
a
financial
14
report
or
a
copy
of
a
federal
tax
form
990
as
provided
in
15
paragraph
“a”
.
The
attorney
general
shall
consider
and
approve
16
or
disapprove
such
applications
under
terms,
conditions,
17
and
procedures
that
are
substantially
similar
to
the
terms,
18
conditions,
and
procedures
established
by
the
internal
revenue
19
service
when
considering
and
approving
or
disapproving
an
20
extension
of
time
to
file
a
federal
tax
form
990.
During
the
21
extension
period
the
charitable
organization
shall
file
a
copy
22
of
its
most
recently
filed
federal
tax
form
990
or
such
other
23
financial
information
that
the
attorney
general
may
require.
24
c.
A
charitable
organization
that
was
first
legally
25
established
within
twelve
months
prior
to
being
required
to
26
register
and
thus
cannot
complete
a
financial
report
or
a
27
federal
tax
form
990
as
provided
in
paragraph
“a”
,
shall
file
a
28
preliminary
financial
report
based
on
a
good
faith
estimate
for
29
its
first
full
fiscal
year.
30
5.
a.
A
charitable
organization
required
to
register
under
31
this
chapter
shall
file
with
the
attorney
general
a
statement
32
of
amendment
reflecting
any
changes
materially
affecting
the
33
charitable
organization’s
identity
or
business,
including
but
34
not
limited
to
a
change
to
its:
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(1)
Name.
1
(2)
Address.
2
(3)
Officers,
directors,
trustees,
or
executive
personnel.
3
(4)
Form
of
business
association.
4
(5)
Tax
status.
5
b.
The
statement
of
amendment
shall
be
filed
concurrently
6
with
the
next
financial
report
required
to
be
filed
pursuant
to
7
this
chapter.
8
6.
Each
chapter,
branch,
or
affiliate
of
a
charitable
9
organization
that
is
required
to
file
a
registration
statement
10
or
statement
of
amendment
under
this
section
shall
file
a
11
separate
registration
statement
or
statement
of
amendment,
or
12
shall
report
the
necessary
information
to
its
parent
charitable
13
organization
which
shall
file
a
consolidated
registration
14
statement
or
statement
of
amendment.
15
7.
Each
registration
application,
financial
report,
or
16
statement
of
amendment
required
to
be
filed
pursuant
to
this
17
section
shall
be
signed
and
sworn
to
under
oath
by
an
officer
18
of
the
charitable
organization,
which
may
include
but
is
not
19
limited
to
its
chief
fiscal
officer.
20
Sec.
3.
NEW
SECTION
.
13D.3
Charitable
organizations
——
21
filing
fees.
22
1.
A
charitable
organization
required
to
file
a
financial
23
report
or
a
federal
tax
form
990
in
lieu
of
the
financial
24
report
as
provided
in
section
13D.2,
shall
pay
an
annual
filing
25
fee
to
the
attorney
general.
26
2.
The
amount
of
the
annual
filing
fee
shall
be
based
on
the
27
total
receipts
collected
by
the
charitable
organization
from
28
all
solicitations
in
this
state
during
the
period
covered
in
29
its
financial
report,
or
its
federal
tax
form
990,
being
filed.
30
a.
For
receipts
of
$50,000
or
31
more
but
less
than
$100,000
...............................
$25
32
b.
For
receipts
of
$100,000
or
33
more
but
less
than
$250,000
...............................
$50
34
c.
For
receipts
of
$250,000
or
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more
but
less
than
$500,000
...............................
$75
1
d.
For
receipts
of
$500,000
or
2
more
but
less
than
$1,000,000
............................
$100
3
e.
For
receipts
of
$1,000,000
or
4
more
but
less
than
$2,000,000
............................
$200
5
f.
For
receipts
of
$2,000,000
or
6
more
but
less
than
$5,000,000
............................
$300
7
g.
For
receipts
of
$5,000,000
or
8
more
.....................................................
$500
9
Sec.
4.
NEW
SECTION
.
13D.4
Charitable
organizations
——
10
exemptions.
11
A
charitable
organization
is
not
required
to
be
registered
12
and
is
not
required
to
file
a
financial
report
as
provided
in
13
section
13D.2,
if
the
charitable
organization
is
any
of
the
14
following:
15
1.
A
political
organization.
16
2.
A
religious
organization.
17
3.
a.
A
charitable
organization,
if
any
of
the
following
18
applies:
19
(1)
It
is
required
to
furnish
the
internal
revenue
service
20
an
electronic
annual
notification
pursuant
to
the
Internal
21
Revenue
Code,
26
U.S.C.
§
6033(i).
22
(2)
It
does
not
receive
contributions
from
more
than
ten
23
persons
during
the
charitable
organization’s
fiscal
year.
24
b.
The
exemption
authorized
in
paragraph
“a”
does
not
25
apply
to
a
charitable
organization
that
has
contracted
with
a
26
professional
commercial
fund-raiser
to
solicit
contributions
in
27
this
state
for
the
charitable
organization.
28
4.
a.
A
foundation
acting
solely
for
the
support
of
an
29
institution
governed
by
the
state
board
of
regents.
30
b.
A
foundation
acting
solely
for
the
support
of
an
31
institution
governed
by
chapter
260C.
32
c.
A
private
foundation
as
defined
in
the
Internal
Revenue
33
Code,
26
U.S.C.
§
509(a),
organized
for
the
support
of
a
34
government
body.
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Sec.
5.
NEW
SECTION
.
13D.5
Attorney
general
——
electronic
1
filing.
2
The
attorney
general
shall
take
steps
to
cooperate
with
3
other
states
and
the
federal
government
to
establish
a
joint
4
state
and
federal
electronic
filing
project
for
charitable
5
organizations
making
solicitations
as
provided
in
this
chapter.
6
To
every
extent
feasible,
the
project
shall
involve
state
7
government
offices
regulating
charitable
promotion
and
the
8
internal
revenue
service
to
enable
and
promote
the
electronic
9
filing
of
uniform
multistate
registration
statements
and
10
federal
annual
information
returns.
11
Sec.
6.
NEW
SECTION
.
13D.6
Charitable
organizations
——
use
12
of
another
organization’s
name
in
solicitation.
13
A
charitable
organization
shall
not
solicit
contributions
14
for
a
charitable
purpose
in
this
state,
where
the
charitable
15
organization
claims
that
a
portion
or
all
of
the
contributions
16
received
will
be
given
to
another
charitable
organization
17
in
this
state,
without
permission
from
the
other
charitable
18
organization
that
its
name
may
be
referred
to
as
part
of
the
19
solicitation.
20
Sec.
7.
NEW
SECTION
.
13D.7
Professional
commercial
21
fund-raisers
——
registration
and
filing
fee.
22
1.
A
professional
commercial
fund-raiser
must
be
registered
23
with
the
attorney
general
prior
to
soliciting
contributions
in
24
this
state
on
behalf
of
a
charitable
organization.
25
2.
In
order
to
be
registered,
a
professional
commercial
26
fund-raiser
shall
file
a
registration
statement
as
described
in
27
this
section.
28
3.
A
registration
statement
shall
contain
information
29
required
by
the
attorney
general,
including
but
not
limited
to
30
all
of
the
following:
31
a.
The
mailing
address,
electronic
mail
address,
and
32
telephone
number
of
the
principal
place
of
business
of
the
33
professional
commercial
fund-raiser,
and
the
electronic
mail
34
address
and
telephone
number
of
its
principal
contact
person.
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b.
A
listing
of
the
professional
commercial
fund-raiser’s
1
clients.
2
c.
Financial
disclosure
information
concerning
3
contributions
received
and
disbursements
made
during
the
4
previous
fiscal
year.
Financial
disclosure
information
shall
5
not
include
an
applicant’s
donor
lists.
6
d.
Copies
of
contracts
executed
by
the
professional
7
commercial
fund-raiser
and
a
charitable
organization
as
8
provided
in
section
13D.8.
9
e.
Any
other
information
deemed
relevant
by
the
attorney
10
general.
11
4.
The
attorney
general
may
require
that
registration
12
information
be
updated
on
a
quarterly
basis.
13
5.
A
professional
commercial
fund-raiser
shall
pay
14
the
attorney
general
a
fee
of
one
hundred
dollars
for
each
15
registration.
16
6.
A
professional
commercial
fund-raiser
shall
file
with
17
the
attorney
general
a
statement
of
amendment
reflecting
any
18
changes
to
its
client
list
or
to
its
existing
contracts
within
19
sixty
days
of
such
changes.
20
7.
The
registration
of
a
professional
commercial
21
fund-raiser
with
the
attorney
general
is
valid
for
twelve
22
months.
23
8.
A
professional
commercial
fund-raiser
may
submit
an
24
application
for
renewal
of
registration
in
the
same
manner
as
25
for
initial
registration.
26
Sec.
8.
NEW
SECTION
.
13D.8
Professional
commercial
27
fund-raiser
——
contracts
with
charitable
organizations.
28
1.
A
contract
executed
between
a
professional
commercial
29
fund-raiser
and
a
charitable
organization
required
to
register
30
as
provided
in
section
13D.2
shall
be
in
writing
and
signed
31
by
an
authorized
official
of
the
charitable
organization.
32
The
professional
commercial
fund-raiser
shall
provide
a
copy
33
of
the
contract
to
the
charitable
organization
prior
to
the
34
performance
of
any
material
services
under
the
contract.
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2.
A
contract
executed
between
a
professional
commercial
1
fund-raiser
and
a
charitable
organization
shall
at
least
2
contain
all
of
the
following
provisions:
3
a.
A
statement
of
the
charitable
purpose
for
which
the
4
solicitation
campaign
is
being
conducted.
5
b.
A
statement
of
the
respective
obligations
of
the
6
professional
commercial
fund-raiser
and
the
charitable
7
organization.
8
c.
Whether
the
professional
commercial
fund-raiser
will
at
9
any
time
have
custody
or
control
of
contributions.
10
d.
A
clear
statement
of
the
fees
that
will
be
paid
to
the
11
professional
commercial
fund-raiser
or,
if
the
fees
are
to
be
12
calculated
based
on
a
percentage
of
contributions
or
other
13
formula,
a
clear
statement
of
the
percentage
or
other
formula.
14
e.
The
effective
and
termination
dates
of
the
contract.
15
3.
Prior
to
commencing
a
solicitation
campaign
in
the
16
state,
the
professional
commercial
fund-raiser
must
file
with
17
the
attorney
general
a
description
of
the
manner
in
which
18
the
solicitation
campaign
will
be
conducted,
including
but
19
not
limited
to
copies
of
any
telephone
calling
scripts,
mail
20
solicitations,
and
pledge
mailing
materials.
21
Sec.
9.
NEW
SECTION
.
13D.9
Rules
and
forms.
22
1.
The
attorney
general
may
adopt
rules
as
necessary
to
23
administer
and
enforce
the
provisions
of
this
chapter.
24
2.
The
attorney
general
may
prescribe
forms
determined
25
necessary
or
convenient
to
administer
this
chapter,
including
26
but
not
limited
to
forms
associated
with
registration
27
requirements
for
charitable
organizations
and
professional
28
commercial
fund-raisers.
29
Sec.
10.
NEW
SECTION
.
13D.10
Attorney
general
authority
to
30
administer
this
chapter.
31
1.
The
submission
of
records
including
but
not
limited
to
32
contracts,
scripts,
and
mail
solicitations
to
the
attorney
33
general
pursuant
to
the
filing
requirements
of
this
chapter
34
do
not
constitute
attorney
general
approval
of
the
records
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submitted.
1
2.
The
attorney
general
may
reject
the
registration
of
a
2
charitable
organization
or
professional
commercial
fund-raiser
3
for
failing
to
comply
with
the
requirements
of
this
chapter.
4
3.
The
attorney
general
may
examine
any
information
that
the
5
attorney
general
deems
is
or
may
be
relevant
to
a
filing
by
a
6
charitable
organization
or
professional
commercial
fund-raiser
7
pursuant
to
this
chapter.
8
Sec.
11.
NEW
SECTION
.
13D.11
Enforcement
——
penalty.
9
1.
The
attorney
general
shall
enforce
the
provisions
of
this
10
chapter.
11
2.
A
violation
of
this
chapter
is
a
violation
of
section
12
714.16,
subsection
2,
paragraph
“a”
.
The
provisions
of
section
13
714.16,
including
but
not
limited
to
provisions
relating
to
14
investigation,
injunctive
relief,
and
penalties,
shall
apply
to
15
this
chapter.
16
Sec.
12.
NEW
SECTION
.
13D.12
Funds
collected
——
charitable
17
solicitations
administration
fund
——
appropriation.
18
A
charitable
solicitations
administration
fund
is
created
19
as
a
separate
fund
in
the
state
treasury
to
be
administered
20
by
the
attorney
general.
Moneys
collected
by
the
attorney
21
general
under
this
chapter
shall
be
deposited
in
the
fund.
22
The
moneys
in
the
fund
are
appropriated
to
the
department
of
23
justice
exclusively
for
public
education
relating
to
charitable
24
solicitations
and
for
enforcement
of
the
provisions
of
this
25
chapter.
Notwithstanding
section
8.33,
any
moneys
in
the
fund
26
shall
not
revert.
Notwithstanding
section
12C.7,
subsection
27
2,
interest
or
earnings
on
moneys
deposited
in
the
fund
shall
28
be
credited
to
the
fund.
29
Sec.
13.
Section
714H.2,
Code
Supplement
2009,
is
amended
by
30
adding
the
following
new
subsections:
31
NEW
SUBSECTION
.
7A.
“Political
organization”
means
a
32
political
party,
a
candidate
for
office,
or
a
political
action
33
committee
required
to
file
financial
information
with
federal
34
or
state
election
or
campaign
commissions.
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NEW
SUBSECTION
.
7B.
“Religious
organization”
means
1
a
religious
corporation,
trust,
foundation,
association,
2
or
organization
incorporated
or
established
for
religious
3
purposes.
4
Sec.
14.
Section
714H.3,
subsection
1,
Code
Supplement
5
2009,
is
amended
to
read
as
follows:
6
1.
A
person
shall
not
engage
in
a
practice
or
act
the
7
person
knows
or
reasonably
should
know
is
an
unfair
practice,
8
deception,
fraud,
false
pretense,
or
false
promise,
or
the
9
misrepresentation,
concealment,
suppression,
or
omission
of
10
a
material
fact,
with
the
intent
that
others
rely
upon
the
11
unfair
practice,
deception,
fraud,
false
pretense,
false
12
promise,
misrepresentation,
concealment,
suppression,
or
13
omission
in
connection
with
the
advertisement,
sale,
or
lease
14
of
consumer
merchandise,
or
the
solicitation
of
contributions
15
for
charitable
purposes.
For
the
purposes
of
this
chapter,
16
a
claimant
alleging
an
unfair
practice,
deception,
fraud,
17
false
pretense,
false
promise,
or
misrepresentation
must
prove
18
that
the
prohibited
practice
related
to
a
material
fact
or
19
facts.
“Solicitations
of
contributions
for
charitable
purposes”
20
does
not
include
solicitations
made
on
behalf
of
a
political
21
organization
as
defined
in
section
13C.1
,
solicitations
made
22
on
behalf
of
a
religious
organization
as
defined
in
section
23
13C.1
,
solicitations
made
on
behalf
of
a
state,
regionally,
or
24
nationally
accredited
college
or
university,
or
solicitations
25
made
on
behalf
of
a
nonprofit
foundation
benefiting
a
state,
26
regionally,
or
nationally
accredited
college
or
university
27
subject
to
section
509(a)(1)
or
509(a)(3)
of
the
Internal
28
Revenue
Code
of
1986.
29
Sec.
15.
CHARITABLE
SOLICITATIONS
ADMINISTRATION.
30
1.
There
is
appropriated
from
the
consumer
education
and
31
litigation
fund
created
in
section
714.16C
to
the
department
of
32
justice
for
the
fiscal
year
beginning
July
1,
2010,
and
ending
33
June
30,
2011,
the
following
amount,
or
so
much
thereof
as
is
34
necessary,
to
be
used
for
the
purposes
designated:
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For
supporting
the
administration
and
enforcement
of
this
1
Act,
including
the
registration
of
charitable
organizations
2
and
professional
fund-raisers
and
the
collection
and
public
3
dissemination
of
information:
4
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
$
125,000
5
2.
The
department
of
justice
shall
repay
the
amount
6
appropriated
in
subsection
1
to
the
consumer
education
7
and
litigation
fund
from
the
charitable
solicitations
8
administration
fund,
as
created
in
this
Act,
not
later
than
9
June
30,
2012.
10
Sec.
16.
REPEAL.
Chapter
13C,
Code
2009,
is
repealed.
11
Sec.
17.
EFFECTIVE
DATE.
This
Act
takes
effect
January
1,
12
2011.
13
EXPLANATION
14
GENERAL.
This
bill
provides
for
solicitations
for
15
contributions
by
or
on
behalf
of
a
charitable
organization.
16
The
bill
eliminates
Code
chapter
13C
referring
to
the
same
17
subject
and
rewrites
those
provisions
in
proposed
new
Code
18
chapter
13D.
19
The
bill
regulates
charitable
organizations
that
solicit
20
contributions
for
a
charitable
purpose
associated
with
a
21
benevolent,
educational,
philanthropic,
humane,
scientific,
22
patriotic,
social
welfare
or
advocacy,
public
health,
23
environmental,
conservation,
civic,
or
other
charitable
24
objective.
25
CHARITABLE
ORGANIZATIONS.
The
bill
contains
a
number
of
new
26
provisions
regulating
a
charitable
organization.
According
to
27
the
bill,
a
charitable
organization
must
be
registered
with
28
the
attorney
general
prior
to
soliciting
contributions
in
this
29
state.
The
registration
statement
must
include
information
30
regarding
its
business
and
fund-raising
activities.
The
31
charitable
organization
must
also
file
amendment
statements
32
that
reflect
material
changes
to
the
organization.
The
33
charitable
organization
must
file
a
financial
report
which
34
includes
information
for
the
charitable
organization’s
most
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recent
fiscal
year
as
provided
by
the
attorney
general
or,
in
1
the
discretion
of
the
attorney
general,
a
copy
of
a
completed
2
federal
tax
form
990
filed
by
nonprofit
organizations.
A
3
charitable
organization
must
also
pay
filing
fees
with
the
fee
4
based
on
the
amount
of
receipts
collected
by
the
charitable
5
organization.
6
The
bill
provides
for
a
number
of
exceptions
from
7
the
registration
requirements,
which
apply
to
religious
8
organizations;
political
parties,
political
candidates,
9
and
political
action
committees;
organizations
that
receive
10
contributions
from
10
persons
or
less;
and
foundations
11
including
those
associated
with
the
state
board
of
regents
and
12
community
colleges.
13
The
bill
authorizes
the
attorney
general
to
cooperate
with
14
the
federal
government
and
state
government
to
establish
a
15
state
electronic
filing
project.
16
PROFESSIONAL
COMMERCIAL
FUND-RAISERS.
The
bill
provides
17
for
the
registration
of
professional
commercial
fund-raisers
18
who
for
compensation
solicit
contributions
in
Iowa
for
a
19
charitable
organization
(but
does
not
include
attorneys,
20
investment
advisers,
or
investment
adviser
representatives
21
regulated
under
Code
chapter
502,
persons
engaged
in
banking,
22
political
organizations,
or
religious
organizations).
The
23
bill
rewrites
provisions
contained
in
Code
section
13C.2.
It
24
retains
requirements
that
prohibit
a
person
from
soliciting
25
contributions
for
charitable
purposes
in
this
state
unless
the
26
professional
commercial
fund-raiser
registers
with
the
attorney
27
general.
It
eliminates
a
number
of
requirements
in
Code
28
section
13C.2,
including
(1)
the
option
to
forgo
registration
29
by
promising
to
provide
financial
disclosure
information
to
a
30
person
or
government
entity
requesting
the
information
and
(2)
31
a
provision
requiring
the
confidentiality
of
client
lists
owned
32
by
a
professional
commercial
fund-raiser.
The
bill
increases
33
the
fee
required
for
registering
from
$10
to
$100.
34
USE
OF
A
CHARITABLE
ORGANIZATION’S
NAME.
The
bill
retains
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other
provisions
from
Code
chapter
13C,
including
provisions
in
1
Code
section
13C.3,
which
prohibit
a
charitable
organization
2
from
soliciting
contributions
for
a
charitable
purpose
where
3
the
organization
claims
that
a
portion
of
or
all
of
the
4
contributions
received
will
be
given
to
another
charitable
5
organization
in
this
state,
without
permission
from
the
other
6
charitable
organization.
7
ADMINISTRATION.
The
bill
retains
a
provision
that
delegates
8
rule
making
authority
to
the
attorney
general,
and
authorizes
9
the
attorney
general
to
promulgate
forms.
10
FUNDING.
The
bill
establishes
a
charitable
solicitations
11
administration
fund
under
the
control
of
the
attorney
general.
12
Moneys
collected
by
the
attorney
general
under
the
bill
are
13
deposited
in
the
fund,
and
are
appropriated
from
the
fund
for
14
the
use
by
the
attorney
general
in
administering
and
enforcing
15
its
provisions.
16
PENALTIES.
The
bill
also
retains
language
from
Code
section
17
13C.8
which
provides
the
attorney
general
with
enforcement
18
authority,
and
makes
a
violation
of
the
Code
chapter
a
19
fraudulent
practice
under
Code
section
714.16(2)(a).
A
20
fraudulent
practice
is
an
offense
that
is
punishable
by
a
21
range
of
penalties
depending
upon
the
amount
of
money
or
value
22
of
property
taken
(see
Code
sections
714.9
through
714.13),
23
from
fraudulent
practice
in
the
fifth
degree
punishable
as
a
24
simple
misdemeanor
to
fraudulent
practice
in
the
first
degree
25
punishable
as
a
class
“C”
felony.
A
simple
misdemeanor
is
26
punishable
by
confinement
for
no
more
than
30
days
or
a
fine
of
27
at
least
$65
but
not
more
than
$625
or
by
both.
A
class
“C”
28
felony
is
punishable
by
confinement
for
no
more
than
10
years
29
and
a
fine
of
at
least
$1,000
but
not
more
than
$10,000.
30
EFFECTIVE
DATE.
The
bill
takes
effect
on
January
1,
2011.
31
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