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: 5 TLSB 5385DP (19) 83 da/nh
S.F. _____ H.F. _____ 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 35 -1- LSB 5385DP (19) 83 da/nh 1/ 15
S.F. _____ H.F. _____ 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 35 -2- LSB 5385DP (19) 83 da/nh 2/ 15
S.F. _____ H.F. _____ 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 35 -3- LSB 5385DP (19) 83 da/nh 3/ 15
S.F. _____ H.F. _____ 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 35 -4- LSB 5385DP (19) 83 da/nh 4/ 15
S.F. _____ H.F. _____ 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: 35 -5- LSB 5385DP (19) 83 da/nh 5/ 15
S.F. _____ H.F. _____ (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 35 -6- LSB 5385DP (19) 83 da/nh 6/ 15
S.F. _____ H.F. _____ 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. 35 -7- LSB 5385DP (19) 83 da/nh 7/ 15
S.F. _____ H.F. _____ 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. 35 -8- LSB 5385DP (19) 83 da/nh 8/ 15
S.F. _____ H.F. _____ 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. 35 -9- LSB 5385DP (19) 83 da/nh 9/ 15
S.F. _____ H.F. _____ 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 35 -10- LSB 5385DP (19) 83 da/nh 10/ 15
S.F. _____ H.F. _____ 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. 35 -11- LSB 5385DP (19) 83 da/nh 11/ 15
S.F. _____ H.F. _____ 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: 35 -12- LSB 5385DP (19) 83 da/nh 12/ 15
S.F. _____ H.F. _____ 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 35 -13- LSB 5385DP (19) 83 da/nh 13/ 15
S.F. _____ H.F. _____ 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 35 -14- LSB 5385DP (19) 83 da/nh 14/ 15
S.F. _____ H.F. _____ 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 -15- LSB 5385DP (19) 83 da/nh 15/ 15