| SB 499 - Charities - definitions, paid solicitor requirements |
First Reader Summary
A bill to be entitled an Act to amend Chapter 17 of Title 43 of
the Official Code of Georgia Annotated, the "Georgia Charitable
Solicitations Act of 1988," so as to provide for various matters
relating to the registration and solicitation activities of
charitable organizations and their paid solicitors and solicitor
agents; to change the definition of the term "charitable
organization" and define the terms "religious organization" and
"solicitor agent"; to provide for the electronic filing of
certain forms by paid solicitors; to require that an applicant
for registration as a paid solicitor consent to a criminal
background investigation in connection with his or her
application; to change requirements relating to financial
statements to be filed by paid solicitors; to repeal conflicting
laws; and for other purposes.
| RECORDED VOTES |
| Vote # |
Date |
Yeas |
Nays |
Description |
| SV0861 |
3/07/00 |
052 |
000 |
PASSAGE |
| HV2063 |
3/16/00 |
158 |
000 |
Pass |
| SV1181 |
3/22/00 |
051 |
000 |
AGREE TO HOUSE SUBSTITUTE |
| Senate |
Action |
House |
| 2/28/00 |
Read 1st time |
3/8/00 |
| 3/3/00 |
Favorably Reported |
3/14/00 |
|
Committee Amend/Sub |
Sub |
| 3/6/00 |
Read 2nd Time |
3/9/00 |
| 3/7/00 |
Read 3rd Time |
3/16/00 |
| 3/7/00 |
Passed/Adopted |
3/16/00 |
|
Comm/Floor Amend/Sub |
CS |
| 3/22/00 |
Amend/Sub Agreed To |
|
| 4/7/00 |
Sent To Governor |
|
| 5/1/00 |
Signed by Governor |
|
| 932 |
Act/Veto Number |
|
| 7/1/00 |
Effective Date |
|
SB 499 00 SB499/AP
SENATE BILL 499
By: Senators Hill of the 4th, Cheeks of the 23rd and
Kemp of the 3rd
A BILL TO BE ENTITLED
AN ACT
1- 1 To amend Chapter 17 of Title 43 of the Official Code of
1- 2 Georgia Annotated, the "Georgia Charitable Solicitations Act
1- 3 of 1988," so as to provide for various matters relating to
1- 4 the registration and solicitation activities of charitable
1- 5 organizations and their paid solicitors and solicitor
1- 6 agents; to change the definition of the term "charitable
1- 7 organization" and define the terms "religious organization"
1- 8 and "solicitor agent"; to provide for the electronic filing
1- 9 of certain forms by paid solicitors; to require that an
1-10 applicant for registration as a paid solicitor consent to a
1-11 criminal background investigation in connection with his or
1-12 her application; to change requirements relating to
1-13 financial statements to be filed by paid solicitors; to
1-14 establish a time limit for the Secretary of State to
1-15 register applicants as paid solicitors or find that there
1-16 are grounds for denial of registration; to provide that an
1-17 applicant for registration as a paid solicitor may act as if
1-18 registered after the expiration of such time limit unless
1-19 and until the applicant is notified of deficiencies or
1-20 grounds for denial of the application; to clarify the time
1-21 in which amendments to a paid solicitor's registration must
1-22 be made; to repeal a requirement relating to the Secretary
1-23 of State's review of documents and providing notice of
1-24 deficiencies to a paid solicitor; to change provisions
1-25 relating to reporting by a paid solicitor regarding the
1-26 results of a solicitation campaign; to require a paid
1-27 solicitor to provide to a charitable organization detailed
1-28 records regarding solicitation campaigns conducted on its
1-29 behalf; to require persons who solicit contributions on
1-30 behalf of charitable organizations as solicitor agents to
1-31 register with the Secretary of State; to change the bonding
1-32 requirements for registered paid solicitors; to provide for
1-33 the electronic filing of registration statements by
1-34 charitable organizations; to clarify the time in which
1-35 amendments to a charitable organization's registration must
1-36 be made; to change provisions relating to record keeping by
1-37 registered charitable organizations; to provide that the
-1-
2- 1 Secretary of State may deny, suspend, or revoke
2- 2 registrations based on convictions for certain crimes
2- 3 relating to the person if the applicant or registrant
2- 4 proposes to be engaged in certain activities; to change a
2- 5 provision requiring the Secretary of State to vacate
2- 6 disciplinary actions imposed for failure to pay filing fees;
2- 7 to require solicitor agents to make certain disclosures to
2- 8 contributors; to require a paid solicitor to disclose that
2- 9 the solicitation is not being made by a volunteer; to change
2-10 provisions relating to exemptions from compliance with the
2-11 "Georgia Charitable Solicitations Act of 1988"; to make it
2-12 unlawful for a paid solicitor to have physical possession or
2-13 legal control of contributions without having complied with
2-14 certain requirements relating to financial statements and
2-15 bonds; to provide for related matters; to provide for an
2-16 effective date; to repeal conflicting laws; and for other
2-17 purposes.
2-18 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
2-19 SECTION 1.
2-20 Chapter 17 of Title 43 of the Official Code of Georgia
2-21 Annotated, the "Georgia Charitable Solicitations Act of
2-22 1988," is amended in Code Section 43-17-2, relating to
2-23 definitions, by striking paragraphs (2) and (12) through
2-24 (13) and inserting in lieu thereof new paragraphs (2) and
2-25 (12) through (15) to read respectively as follows:
2-26 "(2) 'Charitable organization' means any benevolent,
2-27 philanthropic, patriotic, or eleemosynary (of, relating
2-28 to, or supported by charity or alms) person, as that
2-29 term is defined in this Code section, who solicits or
2-30 obtains contributions solicited from the general public,
2-31 any part of which contributions is used for charitable
2-32 purposes; and any person who or which falsely represents
2-33 himself or itself to be a charitable organization as
2-34 defined by this paragraph. The term charitable
2-35 organization shall not include religious agencies and
2-36 organizations and charities, agencies, and organizations
2-37 operated, supervised, or controlled by or in connection
2-38 with a religious organization as defined in paragraph
2-39 (12) of this Code section."
2-40 "(12) 'Religious organization' means an entity which:
2-41 (A) Conducts regular worship services; or
-2-
3- 1 (B) Is qualified as a religious organization under
3- 2 Section 501(c)(3) of the Internal Revenue Code of
3- 3 1986, as amended.
3- 4 (12)(13) 'Solicitation,' 'solicitation of funds,' or
3- 5 'solicit' means the request or acceptance directly or
3- 6 indirectly of money, credit, property, financial
3- 7 assistance, or any other thing of value to be used for
3- 8 any charitable purpose; and such act shall be a consumer
3- 9 act or practice or consumer transaction as defined by
3-10 Part 2 of Article 15 of Chapter 1 of Title 10, the 'Fair
3-11 Business Practices Act of 1975.'
3-12 (14) 'Solicitor agent' means any person, other than a
3-13 charitable organization, paid solicitor, or commercial
3-14 coventurer, who or which solicits charitable
3-15 contributions for compensation. The term 'solicitor
3-16 agent' shall not include any person who is an employee
3-17 of a charitable organization which is either registered
3-18 or exempt from registration under this chapter and who
3-19 is neither supervised by, nor whose activities are
3-20 directed by, any paid solicitor or its agent.
3-21 (13)(15) 'State' means any state, territory, or
3-22 possession of the United States, the District of
3-23 Columbia, Puerto Rico, and the Virgin Islands."
3-24 SECTION 2.
3-25 Said chapter is further amended by striking in its entirety
3-26 Code Section 43-17-3, relating to the registration of paid
3-27 solicitors, and inserting in lieu thereof a new Code Section
3-28 43-17-3 to read as follows:
3-29 "43-17-3.
3-30 (a) No paid solicitor shall solicit contributions on
3-31 behalf of a charitable organization within or from this
3-32 state, unless such paid solicitor is a registered paid
3-33 solicitor pursuant to this Code section.
3-34 (b) A fundraising counsel who at any time has custody of
3-35 contributions from a charitable solicitation on behalf of
3-36 a charitable organization required to be registered
3-37 pursuant to Code Section 43-17-5 must be registered as a
3-38 paid solicitor and comply with the provisions of this Code
3-39 section. Registration is not required for attorneys,
3-40 accountants, investment counselors, and bankers who,
3-41 solely incidental to their profession have custody of such
3-42 funds pursuant to an escrow or trust agreement.
-3-
4- 1 (c)(1) A paid solicitor shall register with the
4- 2 Secretary of State prior to engaging in any
4- 3 solicitation. Each registration shall expire on
4- 4 December 31 of each year and may be renewed for
4- 5 additional one-year periods upon application and the
4- 6 payment of the fee.
4- 7 (2) Applications for registration may be made by any
4- 8 person and shall be accompanied by the registration fee
4- 9 set forth in subsection (b) (d) of this Code section.
4-10 Such application for registration shall be made in a
4-11 manner prescribed by the Secretary of State, which may
4-12 include, in whole or in part, electronic filing, shall
4-13 be verified by the applicant, shall be filed with the
4-14 Secretary of State, and shall contain the information
4-15 and documents set forth in this subsection paragraph and
4-16 such other information as may be prescribed by rules and
4-17 regulations promulgated by the Secretary of State:
4-18 (A) The name of the applicant;
4-19 (B) The address of the principal place of business of
4-20 the applicant and the addresses of all branch offices
4-21 of the applicant in this state;
4-22 (C) The form of business organization; the date of
4-23 organization of the applicant; and if the business
4-24 entity is a corporation or limited partnership, the
4-25 date it qualified to do business in Georgia;
4-26 (D) The names and business addresses of all general
4-27 partners, limited partners, directors, affiliates, or
4-28 executive officers of the applicant; if the applicant
4-29 is a limited liability company, the names and business
4-30 addresses of all members of the limited liability
4-31 company; a statement of the limitations, if any, of
4-32 the liability of any general partner, limited partner,
4-33 director, member, affiliate, or executive officer; and
4-34 a statement setting forth in chronological order the
4-35 occupational activities of each such general partner,
4-36 limited partner, director, member, affiliate, or
4-37 executive officer during the preceding ten years;
4-38 (E) A brief description of the general character of
4-39 the business conducted or proposed to be conducted by
4-40 the applicant;
4-41 (F) A list of any other states in which the applicant
4-42 is registered as a paid solicitor and, if registration
-4-
5- 1 of the applicant as a paid solicitor has ever been
5- 2 denied, revoked, suspended, or withdrawn or if such a
5- 3 proceeding is pending in any state, full details with
5- 4 respect thereto;
5- 5 (G) Whether the applicant or any general partner,
5- 6 limited partner, director, member, affiliate, or
5- 7 executive officer of such applicant has ever been
5- 8 subject to any injunction or disciplinary proceeding
5- 9 by any state agency involving any aspect of fund
5-10 raising or solicitation, has ever been convicted of or
5-11 charged with a misdemeanor of which fraud is an
5-12 essential element or which involved charitable fund
5-13 raising, or has ever been convicted of or charged with
5-14 a felony and, if so, all pertinent information with
5-15 respect to such injunction, disciplinary proceeding,
5-16 conviction, or charge; and
5-17 (H) Whether the applicant or any general partner,
5-18 limited partner, director, member, affiliate, or
5-19 executive officer of such applicant has ever been
5-20 subject to an order, consent order, or any other
5-21 disciplinary or administrative proceeding pursuant to
5-22 the unfair and deceptive acts and practices law of any
5-23 state and, if so, all pertinent information with
5-24 respect to such order or proceedings.; and
5-25 (I) Written consent to a criminal background
5-26 investigation for the purpose of verification by the
5-27 Secretary of State of information provided in the
5-28 application.
5-29 (3) The applicant shall attach to the application for
5-30 registration as a paid solicitor a financial statement
5-31 as of a date within one year prior to the date of
5-32 filing. If the paid solicitor has received or collected
5-33 more than $50,000.00 during its preceding fiscal year,
5-34 the financial statement shall be a certified financial
5-35 statement as of a date within one year prior to the date
5-36 of filing If the paid solicitor will have physical
5-37 possession or legal control over any contributions
5-38 collected by it in or from this state on behalf of any
5-39 charitable organization, the applicant shall attach to
5-40 the application for registration as a paid solicitor a
5-41 financial statement for the fiscal year of the applicant
5-42 which ended within one year prior to the date of filing
5-43 unless the fiscal year of the applicant has ended within
5-44 90 days prior to the date of filing, in which case the
-5-
6- 1 financial statement may be dated as of the end of the
6- 2 fiscal year preceding such last fiscal year. Such
6- 3 financial statement shall be prepared in accordance with
6- 4 generally accepted accounting principles and, if
6- 5 required to be certified, shall be certified by an
6- 6 independent public accountant duly registered and in
6- 7 good standing as such under the laws of the place of his
6- 8 residence or principal office.
6- 9 (4) When Within 15 business days after an applicant has
6-10 fully complied with this subsection, the Secretary of
6-11 State shall examine each paid solicitor's registration
6-12 application, solicitation notice, and contract to
6-13 determine whether the applicable requirements of this
6-14 chapter relating to the same are satisfied and shall
6-15 register such applicant as a paid solicitor unless he or
6-16 she shall find that there are grounds for denial as
6-17 provided in Code Section 43-17-7. When the Secretary of
6-18 State has registered an applicant as a paid solicitor,
6-19 he or she shall immediately notify the applicant of such
6-20 registration. In the event the Secretary of State has
6-21 not notified the applicant of deficiencies or grounds
6-22 for denial of the application within such period, the
6-23 applicant may conduct himself or herself in a manner as
6-24 if registered until and unless such applicant is so
6-25 notified.
6-26 (5) If the Secretary of State finds that there are
6-27 sufficient grounds to deny the registration of the
6-28 applicant as provided in Code Section 43-17-7, he or she
6-29 shall issue an order refusing to register the applicant.
6-30 The order shall state specifically the grounds for its
6-31 issuance. A copy of the order shall be mailed to the
6-32 applicant at his or her business address and to any
6-33 charitable organization who proposes to employ such
6-34 applicant.
6-35 (6) Every registration under this Code section shall
6-36 expire on December 31 of each year. The registration of
6-37 a paid solicitor must be renewed each year by the
6-38 submission of a renewal application containing the
6-39 information required in an application for registration,
6-40 except to the extent that the Secretary of State by rule
6-41 does not require the resubmission of such information
6-42 which has not previously been included in an application
6-43 or renewal application previously filed,; by the payment
6-44 of the proper registration fee,; and, if it would be
-6-
7- 1 required in the event of an initial application, by the
7- 2 filing of a financial statement as of a date within one
7- 3 year prior to the date of filing. If the paid solicitor
7- 4 has received or collected more than $50,000.00 during
7- 5 its preceding fiscal year, the financial statement shall
7- 6 be a certified financial statement as of a date within
7- 7 one year of the date of filing unless the fiscal year of
7- 8 the applicant has ended within 90 days prior to the date
7- 9 of filing, in which case the financial statement may be
7-10 dated as of the end of the preceding fiscal year. Such
7-11 financial statements shall be prepared in accordance
7-12 with generally accepted accounting principles and, if
7-13 required to be certified, shall be certified by an
7-14 independent public accountant duly registered and in
7-15 good standing as such under the laws of the place of his
7-16 residence or principal office.
7-17 (7) The registration of a paid solicitor shall be
7-18 promptly amended within 30 days to reflect a change of
7-19 name, address, principals, state of incorporation, or
7-20 other changes which materially affect the business of
7-21 the paid solicitor. Such amendments shall be filed in a
7-22 manner which the Secretary of State may prescribe by
7-23 rule or regulation.
7-24 (d) The fee for the initial registration of a paid
7-25 solicitor shall be $250.00. The fee to amend the
7-26 registration shall be $15.00. The annual renewal fee for
7-27 a paid solicitor shall be $100.00.
7-28 (e)(1) There shall be a contract between a paid
7-29 solicitor and a charitable organization which shall be
7-30 in writing, shall clearly state the respective
7-31 obligations of the paid solicitor and the charitable
7-32 organization, and shall state the amount of the gross
7-33 revenue from the solicitation campaign that the
7-34 charitable organization will receive. Such amount shall
7-35 be expressed as a fixed percentage of the gross revenue
7-36 or as a reasonable estimate of the gross revenue,
7-37 subject to and in accordance with the provisions of
7-38 paragraphs (2), (3), and (4) of this subsection.
7-39 (2) If the compensation of the paid solicitor is
7-40 contingent upon the number of contributions or the
7-41 amount of revenue received from the solicitation
7-42 campaign, the stated amount shall be expressed as a
7-43 fixed percentage of the gross revenue.
-7-
8- 1 (3) If the compensation of the paid solicitor is not
8- 2 contingent upon the number of contributions or the
8- 3 amount of revenue received, the stated amount shall be a
8- 4 reasonable estimate, expressed as a percentage of the
8- 5 gross revenue, and the contract shall clearly disclose
8- 6 the assumptions upon which the estimate is based. The
8- 7 stated assumptions shall be based upon all the relevant
8- 8 facts known to the paid solicitor regarding the
8- 9 solicitation to be conducted as well as the past
8-10 performance of solicitations conducted by the paid
8-11 solicitor. If the stated amount is a reasonable
8-12 estimate, rather than a fixed percentage of the gross
8-13 revenue, the contract shall also provide that the
8-14 charitable organization is guaranteed a percentage of
8-15 the gross revenue which is no less than the reasonable
8-16 estimate less 10 percent of the gross revenue.
8-17 (4) The stated percentages required by this Code section
8-18 subsection shall exclude any amount which the charitable
8-19 organization is to pay as expenses of the solicitation
8-20 campaign, including the cost of merchandise or services
8-21 sold or events staged.
8-22 (f) Prior to the commencement of each solicitation
8-23 campaign the paid solicitor shall file with the Secretary
8-24 of State a completed 'solicitation notice' on forms
8-25 prescribed by the Secretary of State. The Secretary of
8-26 State may provide that said filing be made, in whole or in
8-27 part, through electronic means. The solicitation notice
8-28 shall include a copy of the contract described in
8-29 subsection (e) of this Code section, the projected dates
8-30 when soliciting will commence and terminate, the location
8-31 and telephone number from which the solicitation will be
8-32 conducted, the name and residence address of each person
8-33 responsible for directing and supervising the conduct of
8-34 the campaign, a statement as to whether the paid solicitor
8-35 will at any time have custody of contributions, and a full
8-36 and fair description of the charitable program for which
8-37 the solicitation campaign is being carried out. (g) The Secretary of State shall examine each paid
8-39 solicitor's registration application, solicitation notice,
8-40 and contract to determine whether the applicable
8-41 requirements of this chapter relating to the same are
8-42 satisfied. The Secretary of State shall notify the paid
8-43 solicitor of any deficiencies therein.
-8-
9- 1 (h)(g) Within 90 30 days after a solicitation campaign has
9- 2 been completed, and on the anniversary of the commencement
9- 3 of a solicitation campaign lasting more than one year, the
9- 4 paid solicitor shall account to the charitable
9- 5 organization with whom it has contracted and to the
9- 6 Secretary of State for all contributions collected and
9- 7 expenses paid. The accounting shall be in writing, shall
9- 8 be retained by the charitable organization for three
9- 9 years, and shall contain the following information:
9-10 (1) The total gross receipts;
9-11 (2) A description of how the gross receipts were
9-12 distributed, including an itemized list of all expenses,
9-13 commissions, and other costs of the fundraising campaign
9-14 and the net amount paid to the charitable organization
9-15 for its charitable purposes after payment of all
9-16 fundraising expenses, commissions, and other costs; and
9-17 (3) The signature of the charitable organization and
9-18 such other information as the Secretary of State by rule
9-19 may require.
9-20 The original of the report shall be forwarded to the
9-21 charitable organization within the time prescribed above,
9-22 and a copy shall be filed simultaneously with the
9-23 Secretary of State.
9-24 (i)(h) Each contribution collected by the paid solicitor
9-25 shall, in its entirety and within ten days of its receipt,
9-26 be deposited in an account at a bank or other federally
9-27 insured financial institution. The account shall be in
9-28 the name of the charitable organization with whom the paid
9-29 solicitor has contracted and the charitable organization
9-30 shall have sole control of all withdrawals from the
9-31 account.
9-32 (j)(i)(1) The paid solicitor shall maintain during each
9-33 solicitation campaign and for not less than three years
9-34 after its completion, the following records:
9-35 (A) The name and, if known to the paid solicitor, the
9-36 address of each person pledging to contribute together
9-37 with the date and amount of the pledge;
9-38 (B) The name and residence address of each employee,
9-39 agent, or other person, however styled, involved in
9-40 the solicitation;
-9-
10- 1 (C) A record of all contributions at any time in the
10- 2 custody of the paid solicitor;
10- 3 (D) A record of all expenses incurred by the paid
10- 4 solicitor for which the charitable organization is
10- 5 liable for payment;
10- 6 (E) The location and account number of all bank or
10- 7 other financial institution accounts in which the paid
10- 8 solicitor has deposited revenue from the solicitation
10- 9 campaign; and
10-10 (F) Such other records as may be prescribed by the
10-11 Secretary of State by rule and regulation.
10-12 (2) If the paid solicitor sells tickets to an event and
10-13 represents that tickets will be donated for use by
10-14 another, the paid solicitor shall also maintain for the
10-15 same period as specified in paragraph (1) of this
10-16 subsection:
10-17 (A) The name and address of those contributors
10-18 donating tickets and the number of tickets donated by
10-19 each contributor; and
10-20 (B) The name and address of all organizations
10-21 receiving donated tickets for use by others, including
10-22 the number of tickets received by each organization.
10-23 (3) All records of such paid solicitor are subject to
10-24 such reasonable periodic, special, or other examinations
10-25 by representatives of the Secretary of State, within or
10-26 outside this state, as the Secretary of State deems
10-27 necessary or appropriate in the public interest or for
10-28 the protection of the public, provided that the
10-29 Secretary of State shall not disclose this information
10-30 except to the extent he or she reasonably deems
10-31 necessary for investigative or law enforcement purposes.
10-32 (j) Not later than 30 days following the end of each
10-33 solicitation campaign, the paid solicitor shall provide to
10-34 the charitable organization, at no cost, a copy of all
10-35 records described in subsection (i) of this Code section.
10-36 In the event any such campaign exceeds six months in
10-37 length, such records shall be provided, in addition, not
10-38 less that 30 days following the end of each six-month
10-39 period."
-10-
11- 1 SECTION 3.
11- 2 Said chapter is further amended by adding a new Code Section
11- 3 43-17-3.1 to read as follows:
11- 4 "43-17-3.1.
11- 5 (a) No solicitor agent shall solicit contributions on
11- 6 behalf of a charitable organization within or from this
11- 7 state, unless such solicitor agent is a registered
11- 8 solicitor agent pursuant to this Code section and is
11- 9 affiliated through employment or as an independent
11-10 contractor pursuant to a written agreement with a paid
11-11 solicitor or charitable organization which is either
11-12 registered or exempt from registration.
11-13 (b)(1) A solicitor agent shall register with the
11-14 Secretary of State prior to engaging in any
11-15 solicitation. Each registration shall expire on
11-16 December 31 of each year and may be renewed for
11-17 additional one-year periods upon application and the
11-18 payment of the fee.
11-19 (2) Applications for registration may be made by any
11-20 person and shall be accompanied by the registration fee
11-21 set forth in subsection (c) of this Code section. Such
11-22 application for registration shall be made in a manner
11-23 prescribed by the Secretary of State, which may include,
11-24 in whole or in part, electronic filing, shall be
11-25 verified by the applicant, shall be filed with the
11-26 Secretary of State, and shall contain the information
11-27 and documents set forth in this paragraph and such other
11-28 information as may be prescribed by rules and
11-29 regulations promulgated by the Secretary of State:
11-30 (A) The name of the applicant;
11-31 (B) The address of each place of business of the
11-32 applicant;
11-33 (C) The name and address of the paid solicitor or
11-34 charitable organization with which the solicitor agent
11-35 will be affiliated by employment or as an independent
11-36 contractor;
11-37 (D) If the solicitor agent is to be an independent
11-38 contractor, a copy of the contract setting forth the
11-39 terms and conditions thereof;
11-40 (E) A list of any other states in which the applicant
11-41 is registered as a paid solicitor agent and, if any
-11-
12- 1 registration of the applicant under the charitable
12- 2 solicitation law of any state has ever been denied,
12- 3 revoked, suspended, or withdrawn or if such a
12- 4 proceeding is pending in any state, full details with
12- 5 respect thereto;
12- 6 (F) Whether the applicant has ever been subject to any
12- 7 injunction or disciplinary proceeding by any state
12- 8 agency involving any aspect of fund raising or
12- 9 solicitation, has ever been convicted of or charged
12-10 with a misdemeanor of which fraud is an essential
12-11 element or which involved charitable fund raising, or
12-12 has ever been convicted of or charged with a felony
12-13 and, if so, all pertinent information with respect to
12-14 such injunction, disciplinary proceeding, conviction,
12-15 or charge;
12-16 (G) Whether the applicant has ever been subject to an
12-17 order, consent order, or any other disciplinary or
12-18 administrative proceeding pursuant to the unfair and
12-19 deceptive acts and practices law of any state and, if
12-20 so, all pertinent information with respect to such
12-21 order or proceedings; and
12-22 (H) Written consent to a criminal background
12-23 investigation for the purpose of verification by the
12-24 Secretary of State of information provided in the
12-25 application.
12-26 (3) Within 15 business days after an applicant has fully
12-27 complied with this subsection, the Secretary of State
12-28 shall register such applicant as a solicitor agent
12-29 unless he or she shall find that there are grounds for
12-30 denial as provided in Code Section 43-17-7. When the
12-31 Secretary of State has registered an applicant, he or
12-32 she shall immediately notify the applicant of such
12-33 registration. In the event the Secretary of State has
12-34 not notified the applicant of deficiencies or grounds
12-35 for denial of the application within such period, the
12-36 applicant may conduct itself in a manner as if
12-37 registered until and unless it is so notified.
12-38 (4) If the Secretary of State finds that there are
12-39 sufficient grounds to deny the registration of the
12-40 applicant as provided in Code Section 43-17-7, he or she
12-41 shall issue an order refusing to register the applicant.
12-42 The order shall state specifically the grounds for its
12-43 issuance. A copy of the order shall be mailed to the
-12-
13- 1 applicant at his or her business address and to any
13- 2 charitable organization or paid solicitor who proposes
13- 3 to employ such applicant.
13- 4 (5) Every registration under this Code section shall
13- 5 expire on December 31 of each year. The registration of
13- 6 a solicitor agent must be renewed each year by the
13- 7 submission of a renewal application containing the
13- 8 information required in an application for registration,
13- 9 except to the extent that the Secretary of State by rule
13-10 does not require the resubmission of such information
13-11 which has previously been included in an application or
13-12 renewal application previously filed, and by the payment
13-13 of the proper registration fee.
13-14 (6) The registration of a solicitor agent shall be
13-15 promptly amended to reflect a change of name or address
13-16 or other changes in the information previously provided
13-17 to the Secretary of State. Such amendments shall be
13-18 filed in a manner which the Secretary of State may
13-19 prescribe by rule or regulation.
13-20 (c) The fee for the initial registration of a solicitor
13-21 agent shall be $50.00. The fee to amend the registration
13-22 shall be $15.00. The annual renewal fee for a paid
13-23 solicitor shall be $50.00."
13-24 SECTION 4.
13-25 Said chapter is further amended in Code Section 43-17-4,
13-26 relating to bonding requirements for registered paid
13-27 solicitors, by striking in its entirety subsection (a) and
13-28 inserting in lieu thereof a new subsection (a) to read as
13-29 follows:
13-30 "(a) Except as otherwise provided in this subsection, no
13-31 applicant shall be registered as a paid solicitor under
13-32 this chapter nor shall any such registration be renewed
13-33 until the applicant files An applicant for registration as
13-34 a paid solicitor who will have physical possession or
13-35 legal control over any contributions collected by it in or
13-36 from this state on behalf of any charitable organizations
13-37 shall file with the Secretary of State a bond satisfactory
13-38 to the Secretary of State in the sum of $10,000.00 payable
13-39 to the State of Georgia for the use of all interested
13-40 persons and conditioned upon the faithful compliance by
13-41 the principal with any and all provisions of this chapter
13-42 and any regulations and orders issued by the Secretary of
13-43 State. Such an applicant for renewal of registration as a
-13-
14- 1 paid solicitor shall also file such bond. Except as
14- 2 otherwise provided in subsection (b) of this Code section,
14- 3 the Secretary of State shall not register such an
14- 4 applicant or renew the registration of such an applicant
14- 5 until such bond is filed as provided in this subsection.
14- 6 Any such bond may be canceled by the principal or surety
14- 7 by giving notice to the Secretary of State, but such
14- 8 cancellation shall not affect any cause of action accruing
14- 9 thereon prior to cancellation and such cancellation shall
14-10 result in automatic cancellation of the principal's
14-11 registration until a new bond satisfactory to the
14-12 Secretary of State is filed. Any action on such bond must
14-13 be brought within two years after accrual of the cause of
14-14 action. The amount prescribed in this subsection for the
14-15 bond required of a paid solicitor shall be construed as
14-16 being the aggregate liability recoverable against such
14-17 bond, regardless of the number of claimants, and shall not
14-18 be construed as individual liability."
14-19 SECTION 5.
14-20 Said chapter is further amended in Code Section 43-17-5,
14-21 relating to the registration of charitable organizations, by
14-22 striking paragraphs (2) and (10) of subsection (b) and
14-23 inserting in lieu thereof new paragraphs (2) and (10) to
14-24 read as follows:
14-25 "(2) A registration statement, which the Secretary of
14-26 State may require to be in whole or in part an
14-27 electronic filing, shall be signed by an authorized
14-28 executive officer of the charitable organization and
14-29 shall contain the following information:
14-30 (A) The name under which the charitable organization
14-31 intends to solicit contributions;
14-32 (B) The names and addresses of officers, directors,
14-33 trustees, and executive personnel and, in the case of
14-34 a state-wide parent organization, the communities in
14-35 which the chapters, branches, or affiliates are
14-36 located and their directors;
14-37 (C) The names and addresses of any fundraising counsel
14-38 or paid solicitor who acts or will act on behalf of
14-39 the charitable organization, together with a statement
14-40 setting forth the terms of the arrangements for
14-41 salaries, bonuses, commissions, or other remuneration
14-42 to be paid to the fundraising counsel or paid
14-43 solicitor;
-14-
15- 1 (D) The general purposes for which the charitable
15- 2 organization is organized;
15- 3 (E) The purposes for which the contributions to be
15- 4 solicited will be used;
15- 5 (F) The period of time during which the solicitation
15- 6 will be made;
15- 7 (G) The method of solicitation; and
15- 8 (H) Such other information as the Secretary of State
15- 9 may require."
15-10 "(10) The registration of a charitable organization
15-11 shall be promptly amended within 30 days to reflect a
15-12 change of name, address, principals, state of
15-13 incorporation, corporate forms (including a merger of
15-14 two charitable organizations), or other changes which
15-15 materially affect the business of the charitable
15-16 organization. Such amendments shall be filed in a manner
15-17 which the Secretary of State may prescribe by rule or
15-18 regulation."
15-19 SECTION 6.
15-20 Said chapter is further amended in Code Section 43-17-5,
15-21 relating to the registration of charitable organizations, by
15-22 striking subsection (d) and inserting in lieu thereof new
15-23 subsections (d), (e), and (f) to read as follows:
15-24 "(d) A charitable organization shall maintain for not less
15-25 than three years a record of all contributions including,
15-26 but not limited to, the name and address of each
15-27 contributor giving $25.00 or more directly or indirectly
15-28 to the charitable organization, the date and amount of the
15-29 contribution, and the location and account number of all
15-30 bank or other financial institution accounts in which the
15-31 charitable organization has deposited contributions.
15-32 (e) All records of charitable organizations which relate
15-33 to charitable solicitations or charitable contributions
15-34 are subject to such reasonable periodic, special, or other
15-35 examinations by representatives of the Secretary of State,
15-36 within or outside this state, as the Secretary of State
15-37 deems necessary or appropriate in the public interest or
15-38 for the protection of the public, provided that the
15-39 Secretary of State shall not disclose this information
15-40 except to the extent he or she deems reasonably necessary
15-41 for investigative or law enforcement purposes.
-15-
16- 1 (f) A charitable organization shall maintain for not less
16- 2 than three years at an office located in Georgia or, if it
16- 3 has no office in Georgia, its principal office all records
16- 4 provided to it by any paid solicitor relating to any
16- 5 solicitation campaign. The charitable organization shall
16- 6 notify the Secretary of State of the address of the office
16- 7 at which such records are kept."
16- 8 SECTION 7.
16- 9 Said chapter is further amended in Code Section 43-17-7,
16-10 relating to the denial, suspension, or revocation of
16-11 registration, by striking subsections (a) and (b) and
16-12 inserting in lieu thereof new subsections (a) and (b) to
16-13 read as follows:
16-14 "(a) The Secretary of State, by order, may deny, suspend,
16-15 or revoke a registration, limit the fundraising activities
16-16 that an applicant or registered person may perform in this
16-17 state, bar an applicant or registered person from
16-18 association with a paid solicitor or charitable
16-19 organization, or bar a person who is a partner, officer,
16-20 director, or employee of, or a member of a limited
16-21 liability company which is, an applicant or registered
16-22 person from employment with a paid solicitor or charitable
16-23 organization if the Secretary of State finds that the
16-24 order is in the public interest and that the applicant,
16-25 registered person, or such other person:
16-26 (1) Has filed an application for registration with the
16-27 Secretary of State which, as of its effective date or
16-28 any date after filing in the case of an order denying
16-29 effectiveness, was incomplete in a material respect or
16-30 contained a statement that was, in light of the
16-31 circumstances under which it was made, false or
16-32 misleading with respect to a material fact;
16-33 (2) Has willfully violated or failed to comply with this
16-34 chapter, a prior enactment, or a rule promulgated by the
16-35 Secretary of State under this chapter or a prior
16-36 enactment;
16-37 (3) Is the subject of an adjudication or determination,
16-38 after notice and opportunity for hearing, within the
16-39 last five years by a state or federal agency or a court
16-40 of competent jurisdiction that the person has violated
16-41 the charitable organizations regulatory act or the
16-42 unfair and deceptive acts and practices law of any
16-43 state, but only if the acts constituting the violation
-16-
17- 1 of that state's law would constitute a violation of this
17- 2 chapter had the acts occurred in this state;
17- 3 (4) Within the last ten years has been convicted of a
17- 4 felony or misdemeanor which the Secretary of State
17- 5 finds:
17- 6 (A) Involves the solicitation or acceptance of
17- 7 charitable contributions or the making of a false
17- 8 oath, the making of a false report, bribery, perjury,
17- 9 burglary, or conspiracy to commit any of the foregoing
17-10 offenses;
17-11 (B) Arises out of the conduct of solicitation of
17-12 contributions for a charitable organization; or
17-13 (C) Involves the larceny, theft, robbery, extortion,
17-14 forgery, counterfeiting, fraudulent concealment,
17-15 embezzlement, fraudulent conversion, or
17-16 misappropriation of funds;
17-17 (D) Involves murder or rape; or
17-18 (E) Involves assault or battery if such person
17-19 proposes to be engaged in counseling, advising,
17-20 housing, or sheltering individuals;
17-21 (5) Is permanently or temporarily enjoined by a court of
17-22 competent jurisdiction from acting as a charitable
17-23 organization, paid solicitor, or as an affiliated person
17-24 or employee of such;
17-25 (6) Is the subject of an order of the Secretary of State
17-26 denying, suspending, or revoking the person's
17-27 registration as a charitable organization or paid
17-28 solicitor;
17-29 (7) Has violated a law or any rule or regulation of this
17-30 state, any other state, the United States, or any other
17-31 lawful authority (without regard to whether the
17-32 violation is criminally punishable), which law or rule
17-33 or regulation relates to or in part regulates charitable
17-34 organizations or paid solicitors regulated under this
17-35 chapter, when the charitable organization or paid
17-36 solicitor knows or should know that such action is in
17-37 violation of such law, rule, or regulation; or
17-38 (8) Has failed to pay the proper filing fee within 30
17-39 days after being notified by the Secretary of State of a
17-40 deficiency, but the Secretary of State shall vacate an
17-41 order under this subsection when may provide for the
-17-
18- 1 reinstatement of the registration or the suspension of a
18- 2 fine or penalty at such time as the deficiency is
18- 3 corrected.
18- 4 (b) The Secretary of State may not begin a proceeding
18- 5 solely on the basis of a fact or transaction known to the
18- 6 Secretary of State when the registration became effective
18- 7 unless the proceeding is begun within 90 days after
18- 8 effectiveness of the registration."
18- 9 SECTION 8.
18-10 Said chapter is further amended by striking in its entirety
18-11 Code Section 43-17-8, relating to disclosures to be made by
18-12 charitable organizations and paid solicitors, and inserting
18-13 in lieu thereof a new Code Section 43-17-8 to read as
18-14 follows:
18-15 "43-17-8.
18-16 Every charitable organization, or paid solicitor, or
18-17 solicitor agent required to be registered under this Code
18-18 section and soliciting in this state shall include the
18-19 following disclosures at the point of solicitation:
18-20 (1) The name and location of the paid solicitor and
18-21 solicitor agent, if any;
18-22 (2) The name and location of the charitable organization
18-23 for which the solicitation is being made;
18-24 (3) That the following information will be made
18-25 available upon request:
18-26 (A) A full and fair description of the charitable
18-27 program for which the solicitation campaign is being
18-28 carried out and, if different, a full and fair
18-29 description of the programs and activities of the
18-30 charitable organization on whose behalf the
18-31 solicitation is being carried out; and
18-32 (B) A financial statement or summary which shall be
18-33 consistent with the financial statement required to be
18-34 filed with the Secretary of State pursuant to Code
18-35 Section 43-17-5; and
18-36 (4) In the case of a telephone solicitation, the
18-37 location of the caller If made by a solicitor agent or
18-38 paid solicitor, that the solicitation is being made by a
18-39 paid person on behalf of the charitable organization and
18-40 not by a volunteer."
-18-
19- 1 SECTION 9.
19- 2 Said chapter is further amended in Code Section 43-17-9,
19- 3 relating to exemptions from the requirements of said
19- 4 chapter, by striking subsection (a) and inserting in lieu
19- 5 thereof a new subsection (a) to read as follows:
19- 6 "(a) The following persons are exempt from the provisions
19- 7 of Code Sections 43-17-3, 43-17-4, 43-17-5, 43-17-6, and
19- 8 43-17-8:
19- 9 (1) Nonprofit educational Educational institutions and
19-10 those organizations, foundations, associations,
19-11 corporations, charities, and agencies operated,
19-12 supervised, or controlled by or in connection with a
19-13 nonprofit educational institution, provided that any
19-14 such institution or organization is qualified under
19-15 Section 501(c) of the Internal Revenue Code of 1986, as
19-16 amended;
19-17 (2) Business, professional, and trade associations and
19-18 federations which do not solicit members or funds from
19-19 the general public;
19-20 (3) Fraternal, civic, benevolent, patriotic, and social
19-21 organizations, when solicitation of contributions is
19-22 carried on by persons for their services and without any
19-23 form of compensation and which solicitation is confined
19-24 to their membership;
19-25 (4) Persons requesting any contributions for the relief
19-26 of any other individual who is specified by name at the
19-27 time of the solicitation if all of the contributions
19-28 collected, without any deductions whatsoever, are turned
19-29 over to the named beneficiary; provided, however, that
19-30 any such person who collects contributions in excess of
19-31 $5,000.00 in order to claim benefit of this exemption
19-32 shall file with the Secretary of State a written
19-33 accounting of funds so collected on forms prescribed by
19-34 the Secretary of State at the end of the first 90 days
19-35 of solicitation and, thereafter, at the end of every
19-36 subsequent 90 day period until said solicitation is
19-37 concluded;
19-38 (5) Any charitable organization whose total gross
19-39 revenue is has been less than $25,000.00 per for both
19-40 the immediately preceding and current calendar year
19-41 years or which is exempt from filing a federal annual
19-42 information return pursuant to Section 6033(a)(2)(A)(i)
-19-
20- 1 and (iii) of the Internal Revenue Code and Section
20- 2 6033(a)(2)(C)(i) of the Internal Revenue Code;
20- 3 (6) Any local or state-wide organization of hunters,
20- 4 fishermen, and target shooters which has been recognized
20- 5 as an organization described in Section 501(c)(3) or
20- 6 Section 501(c)(4) of the Internal Revenue Code, as
20- 7 amended, or the corresponding provisions of any future
20- 8 federal revenue law; or
20- 9 (7) Religious organizations; or
20-10 (7)(8) Political parties, candidates for federal or
20-11 state office, and political action committees required
20-12 to file financial information with federal or state
20-13 elections commissions."
20-14 SECTION 10.
20-15 Said chapter is further amended in Code Section 43-17-12,
20-16 relating to prohibited acts, by striking in its entirety
20-17 subsection (b) and inserting in lieu thereof a new
20-18 subsection (b) and by adding at the end thereof a new
20-19 subsection (e), to read respectively as follows:
20-20 "(b) It shall be unlawful for any person who is registered
20-21 as, or making application for registration as, a solicitor
20-22 agent or paid solicitor or charitable organization or is
20-23 an affiliate of such registrant or applicant to knowingly
20-24 knowingly to cause to be made, in any document filed with
20-25 the Secretary of State or in any proceeding under this
20-26 chapter, any statement which is, at the time it is made
20-27 and in light of the circumstances under which it is made,
20-28 false or misleading in any material respect."
20-29 "(e) It shall be unlawful for any paid solicitor to have
20-30 physical possession or legal control of a contribution
20-31 collected by it in or from this state on behalf of any
20-32 charitable organization without having complied with the
20-33 requirements of paragraph (3) or (6) of subsection (c) of
20-34 Code Section 43-17-3, as applicable, and Code Section
20-35 43-17-4."
20-36 SECTION 11.
20-37 This Act shall become effective on July 1, 2000.
20-38 SECTION 12.
20-39 All laws and parts of laws in conflict with this Act are
20-40 repealed.
-20-
Secretary of the Senate
Frank Eldridge, Jr., Secretary
Last Updated on 05/15/00
