Florida Senate - 2014                                     SB 638
       
       
        
       By Senator Brandes
       
       
       
       
       
       22-00188-14                                            2014638__
    1                        A bill to be entitled                      
    2         An act relating to charities; amending s. 212.08,
    3         F.S.; excluding charitable organizations or sponsors
    4         disqualified by the Department of Agriculture and
    5         Consumer Services from receiving certain tax
    6         exemptions; amending s. 212.084, F.S.; requiring the
    7         Department of Revenue to revoke or deny a sales tax
    8         exemption to charitable organizations or sponsors
    9         disqualified by the department; providing for a
   10         limited appeal of the denial or revocation of the
   11         sales tax exemption; amending s. 496.404, F.S.;
   12         defining terms; redefining the term “religious
   13         institution”; amending s. 496.405, F.S.; revising the
   14         timeframe within which a charitable organization or
   15         sponsor must report changes to certain information
   16         provided to the department on an initial or renewal
   17         registration statement; providing for the automatic
   18         expiration of a registration for failure to file a
   19         renewal or financial statement by a certain date;
   20         repealing a requirement that the renewal statement be
   21         filed subsequent to the financial statement; repealing
   22         authorization to extend the time to file a renewal
   23         statement; specifying the information that must be
   24         submitted by a parent organization on a consolidated
   25         financial statement; extending the time allowed for
   26         the department to review certain initial or renewal
   27         registration statements; providing that failure of a
   28         charitable organization or sponsor to make certain
   29         disclosures in a registration statement results in the
   30         automatic suspension of an active registration for a
   31         specified period; prohibiting the officers, directors,
   32         trustees, or employees of a charitable organization or
   33         sponsor from allowing certain persons to solicit
   34         contributions on behalf of the charitable organization
   35         or sponsor; specifying that the prohibition against
   36         certain persons soliciting contributions on behalf of
   37         a charitable organization or sponsor due to the
   38         commission of certain felonies includes those felonies
   39         committed in any state as well as any misdemeanor in
   40         another state which constitutes a disqualifying felony
   41         in this state; authorizing the department to deny or
   42         revoke the registration of a charitable organization
   43         or sponsor under certain circumstances; requiring a
   44         charitable organization or sponsor that has ended
   45         solicitation activities in this state to notify the
   46         department in writing; making technical changes;
   47         creating s. 496.4055, F.S.; defining the term
   48         “conflict of interest transaction”; requiring the
   49         board of directors of a charitable organization or
   50         sponsor, or an authorized committee thereof, to adopt
   51         a policy regarding conflict of interest transactions;
   52         amending s. 496.407, F.S.; requiring that the
   53         financial statements of certain charitable
   54         organizations or sponsors be audited or reviewed;
   55         specifying requirements and standards for the audit or
   56         review of a financial statement; restricting the use
   57         of an existing alternative to the required annual
   58         financial statement to certain charities; authorizing
   59         the department to require an audit or review of any
   60         financial statement and to extend the time to file a
   61         financial statement under certain circumstances;
   62         providing that the registration of a charitable
   63         organization or sponsor be suspended upon its failure
   64         to file a financial statement within an extension
   65         period; making technical changes; creating s.
   66         496.4071, F.S.; requiring certain charitable
   67         organizations or sponsors to report specified
   68         supplemental financial information to the department
   69         by a certain date; creating s. 496.4072, F.S.;
   70         requiring certain charitable organizations or sponsors
   71         who solicit contributions for a specific disaster
   72         relief effort to submit quarterly financial statements
   73         to the department; specifying information to be
   74         included in the quarterly financial statement and the
   75         length of the required reporting period; amending ss.
   76         496.409 and 496.410, F.S.; prohibiting a professional
   77         fundraising consultant or professional solicitor from
   78         entering into a contract or agreement with a
   79         charitable organization or sponsor that has not
   80         complied with certain requirements; extending the time
   81         that the department may review initial or renewal
   82         registration statements of professional fundraising
   83         consultants or professional solicitors which contain
   84         certain disclosures; providing that the failure of a
   85         professional fundraising consultant or professional
   86         solicitor to make certain disclosures in an initial or
   87         renewal registration statement results in automatic
   88         suspension of an active registration; prohibiting the
   89         officers, trustees, directors, or employees of a
   90         professional fundraising consultant or a professional
   91         solicitor from allowing certain persons to solicit
   92         contributions on behalf of the professional
   93         fundraising consultant or professional solicitor;
   94         specifying that the prohibition against acting as a
   95         professional solicitor or the employment of certain
   96         persons by a professional solicitor due to the
   97         commission of certain felonies includes those felonies
   98         committed in any state as well as any misdemeanor in
   99         another state which constitutes a disqualifying felony
  100         in this state; authorizing the department to deny or
  101         revoke the registration of a professional fundraising
  102         consultant or professional solicitor under certain
  103         circumstances; revising required information in the
  104         initial or renewal application of a professional
  105         solicitor; repealing a provision authorizing the
  106         payment of a single registration fee for certain
  107         professional solicitors; requiring a professional
  108         solicitor to provide additional specified information
  109         to the department in a solicitation notice; creating
  110         s. 496.4101, F.S.; requiring each officer, director,
  111         trustee, or owner of a professional solicitor and any
  112         employee of a professional solicitor that conducts
  113         telephone solicitations to obtain a solicitor license
  114         from the department; specifying application
  115         information and the application procedure for a
  116         solicitor license; requiring each applicant for a
  117         solicitor license to submit a complete set of his or
  118         her fingerprints and a fee for fingerprint processing
  119         to the department; requiring that the applicant’s
  120         fingerprints be taken by a law enforcement officer or
  121         approved provider; requiring the department to submit
  122         the applicant’s fingerprints to the Department of Law
  123         Enforcement for a criminal history background check;
  124         requiring the Department of Law Enforcement to report
  125         findings of the criminal history background check to
  126         the department within a specified period; requiring
  127         that a solicitor license be renewed annually or expire
  128         automatically upon nonrenewal; requiring that an
  129         applicant for a solicitor license pay certain
  130         licensing fees; providing that licensing fees be
  131         deposited into the General Inspection Trust Fund;
  132         requiring that an applicant for a solicitor license
  133         report changes in information submitted to the
  134         department in a specified manner along with a
  135         processing fee; specifying violations; requiring the
  136         department to adopt rules allowing certain persons to
  137         engage in solicitation activities without a solicitor
  138         license for a specified period; authorizing the
  139         department to deny or revoke a solicitor license under
  140         specified circumstances; amending ss. 496.411 and
  141         496.412, F.S.; expanding and revising required
  142         solicitation disclosures of charitable organizations,
  143         sponsors, and professional solicitors; requiring that
  144         certain exempt charitable organizations or sponsors
  145         also provide such solicitation disclosures; requiring
  146         that such solicitation disclosures be placed online
  147         under certain circumstances; creating s. 496.4121,
  148         F.S.; defining the term “collection receptacle”;
  149         requiring that collection receptacles display
  150         permanent signs or labels; specifying requirements for
  151         the physical appearance of such labels or signs and
  152         information displayed thereon; requiring that a
  153         charitable organization or sponsor using a collection
  154         receptacle provide certain information to a donor upon
  155         request; amending s. 496.415, F.S.; providing that the
  156         submission of false, misleading, or inaccurate
  157         information in a document connected with a
  158         solicitation or sales promotion is unlawful; providing
  159         that the failure to remit specified funds to a
  160         charitable organization or sponsor is unlawful;
  161         amending s. 496.419, F.S.; increasing administrative
  162         fines for violations of the Solicitation of
  163         Contributions Act; creating s. 496.4191, F.S.;
  164         requiring the department to immediately suspend a
  165         registration or processing of an application for
  166         registration for a specified period if the registrant,
  167         applicant, or any officer or director thereof is
  168         criminally charged with certain offenses; creating s.
  169         496.430, F.S.; authorizing the department to
  170         disqualify a charitable organization or sponsor from
  171         receiving a sales tax exemption under specified
  172         circumstances; providing that a charitable
  173         organization or sponsor may appeal a disqualification
  174         order; specifying appeal procedure; providing
  175         exceptions; providing that a disqualification order
  176         remains effective for a specified period; specifying
  177         the procedure to lift a disqualification order;
  178         requiring the department to provide a final
  179         disqualification order to the Department of Revenue
  180         within a specified period; providing that a final
  181         disqualification order is conclusive as to a
  182         charitable organization or sponsor’s right to a sales
  183         tax exemption; requiring the Department of Revenue to
  184         revoke or deny a sales tax exemption to a charitable
  185         organization or sponsor subject to a final
  186         disqualification order within a specified period;
  187         providing for a limited appeal of the revocation or
  188         denial of the sales tax exemption; providing
  189         applicability; amending s. 741.0305, F.S.; conforming
  190         a cross-reference; making an appropriation; providing
  191         an effective date.
  192          
  193  Be It Enacted by the Legislature of the State of Florida:
  194  
  195         Section 1. Paragraph (p) of subsection (7) of section
  196  212.08, Florida Statutes, is amended to read:
  197         212.08 Sales, rental, use, consumption, distribution, and
  198  storage tax; specified exemptions.—The sale at retail, the
  199  rental, the use, the consumption, the distribution, and the
  200  storage to be used or consumed in this state of the following
  201  are hereby specifically exempt from the tax imposed by this
  202  chapter.
  203         (7) MISCELLANEOUS EXEMPTIONS.—Exemptions provided to any
  204  entity by this chapter do not inure to any transaction that is
  205  otherwise taxable under this chapter when payment is made by a
  206  representative or employee of the entity by any means,
  207  including, but not limited to, cash, check, or credit card, even
  208  when that representative or employee is subsequently reimbursed
  209  by the entity. In addition, exemptions provided to any entity by
  210  this subsection do not inure to any transaction that is
  211  otherwise taxable under this chapter unless the entity has
  212  obtained a sales tax exemption certificate from the department
  213  or the entity obtains or provides other documentation as
  214  required by the department. Eligible purchases or leases made
  215  with such a certificate must be in strict compliance with this
  216  subsection and departmental rules, and any person who makes an
  217  exempt purchase with a certificate that is not in strict
  218  compliance with this subsection and the rules is liable for and
  219  shall pay the tax. The department may adopt rules to administer
  220  this subsection.
  221         (p) Section 501(c)(3) organizations.—Also exempt from the
  222  tax imposed by this chapter are sales or leases to organizations
  223  determined by the Internal Revenue Service to be currently
  224  exempt from federal income tax pursuant to s. 501(c)(3) of the
  225  Internal Revenue Code of 1986, as amended, if when such leases
  226  or purchases are used in carrying on their customary nonprofit
  227  activities, unless such organizations are subject to a final
  228  disqualification order issued by the Department of Agriculture
  229  and Consumer Services pursuant to s. 496.430.
  230         Section 2. Subsection (3) of section 212.084, Florida
  231  Statutes, is amended, and subsection (7) is added to that
  232  section, to read:
  233         212.084 Review of exemption certificates; reissuance;
  234  specified expiration date; temporary exemption certificates.—
  235         (3) After review is completed and it has been determined
  236  that an institution, organization, or individual is actively
  237  engaged in a bona fide exempt endeavor and is not subject to a
  238  final disqualification order issued by the Department of
  239  Agriculture and Consumer Services pursuant to s. 496.430, the
  240  department shall reissue an exemption certificate to the entity.
  241  However, each certificate so reissued is valid for 5 consecutive
  242  years, at which time the review and reissuance procedure
  243  provided by this section apply again. If the department
  244  determines that an entity no longer qualifies for an exemption,
  245  it shall revoke the tax exemption certificate of the entity.
  246         (7) The department shall revoke or refuse to grant a sales
  247  tax exemption certificate to an institution, organization, or
  248  individual that is the subject of a final disqualification order
  249  issued by the Department of Agriculture and Consumer Services
  250  pursuant to s. 496.430. A revocation or denial under this
  251  subsection is subject to challenge under chapter 120 only as to
  252  whether a disqualification order is in effect. The institution,
  253  organization, or individual must appeal or challenge the
  254  validity of the disqualification order pursuant to s.
  255  496.430(2).
  256         Section 3. Section 496.404, Florida Statutes, is amended to
  257  read:
  258         496.404 Definitions.—As used in ss. 496.401-496.424, the
  259  term:
  260         (1) “Charitable organization” means a any person who is or
  261  holds herself or himself out to be established for any
  262  benevolent, educational, philanthropic, humane, scientific,
  263  artistic, patriotic, social welfare or advocacy, public health,
  264  environmental conservation, civic, or other eleemosynary
  265  purpose, or a any person who in any manner employs a charitable
  266  appeal as the basis for any solicitation or an appeal that
  267  suggests that there is a charitable purpose to any solicitation.
  268  The term It includes a chapter, branch, area office, or similar
  269  affiliate soliciting contributions within the state for a
  270  charitable organization that which has its principal place of
  271  business outside the state.
  272         (2) “Charitable purpose” means any benevolent,
  273  philanthropic, patriotic, educational, humane, scientific,
  274  artistic, public health, social welfare or advocacy,
  275  environmental conservation, civic, or other eleemosynary
  276  objective.
  277         (3) “Charitable sales promotion” means an advertising or
  278  sales campaign conducted by a commercial co-venturer which
  279  represents that the purchase or use of goods or services offered
  280  by the commercial co-venturer are to benefit a charitable
  281  organization. The provision of advertising services to a
  282  charitable organization does not, in itself, constitute a
  283  charitable sales promotion.
  284         (4) “Commercial co-venturer” means a any person who, for
  285  profit, regularly and primarily is engaged in trade or commerce
  286  other than in connection with solicitation of contributions and
  287  who conducts a charitable sales promotion or a sponsor sales
  288  promotion.
  289         (5) “Contribution” means the promise, pledge, or grant of
  290  any money or property, financial assistance, or any other thing
  291  of value in response to a solicitation. The term “Contribution”
  292  includes, in the case of a charitable organization or sponsor
  293  offering goods and services to the public, the difference
  294  between the direct cost of the goods and services to the
  295  charitable organization or sponsor and the price at which the
  296  charitable organization or sponsor or any person acting on
  297  behalf of the charitable organization or sponsor resells those
  298  goods or services to the public. The term “Contribution” does
  299  not include bona fide fees, dues, or assessments paid by
  300  members, if provided that membership is not conferred solely as
  301  consideration for making a contribution in response to a
  302  solicitation;. “Contribution” also does not include funds
  303  obtained by a charitable organization or sponsor pursuant to
  304  government grants or contracts; funds, or obtained as an
  305  allocation from a United Way organization that is duly
  306  registered with the department; or funds received from an
  307  organization that is exempt from federal income taxation under
  308  s. 501(a) of the Internal Revenue Code and described in s.
  309  501(c) of the Internal Revenue Code which that is duly
  310  registered with the department.
  311         (6) “Crisis” means an event that garners widespread
  312  national or global media coverage due to an actual or perceived
  313  threat of harm to an individual, a group, or a community.
  314         (7)(6) “Department” means the Department of Agriculture and
  315  Consumer Services.
  316         (8) “Disaster” means a natural, technological, or civil
  317  event, including, but not limited to, an explosion, chemical
  318  spill, earthquake, tsunami, landslide, volcanic activity,
  319  avalanche, wildfire, tornado, hurricane, drought, or flood,
  320  which affects one or more countries and causes damage of
  321  sufficient severity and magnitude to result in:
  322         (a) An official declaration of a state of emergency; or
  323         (b) An official request for international assistance.
  324         (9)(7) “Division” means the Division of Consumer Services
  325  of the Department of Agriculture and Consumer Services.
  326         (10)(8) “Educational institutions” means those institutions
  327  and organizations described in s. 212.08(7)(cc)8.a. The term
  328  includes private nonprofit organizations, the purpose of which
  329  is to raise funds for schools teaching grades kindergarten
  330  through grade 12, colleges, and universities, including any
  331  nonprofit newspaper of free or paid circulation primarily on
  332  university or college campuses which holds a current exemption
  333  from federal income tax under s. 501(c)(3) of the Internal
  334  Revenue Code, any educational television network or system
  335  established pursuant to s. 1001.25 or s. 1001.26, and any
  336  nonprofit television or radio station that is a part of such
  337  network or system and that holds a current exemption from
  338  federal income tax under s. 501(c)(3) of the Internal Revenue
  339  Code. The term also includes a nonprofit educational cable
  340  consortium that holds a current exemption from federal income
  341  tax under s. 501(c)(3) of the Internal Revenue Code, whose
  342  primary purpose is the delivery of educational and instructional
  343  cable television programming and whose members are composed
  344  exclusively of educational organizations that hold a valid
  345  consumer certificate of exemption and that are either an
  346  educational institution as defined in this subsection or
  347  qualified as a nonprofit organization pursuant to s. 501(c)(3)
  348  of the Internal Revenue Code.
  349         (11)(9) “Emergency service employee” means an any employee
  350  who is a firefighter, as defined in s. 633.102, or ambulance
  351  driver, emergency medical technician, or paramedic, as defined
  352  in s. 401.23.
  353         (12)(10) “Federated fundraising organization” means a
  354  federation of independent charitable organizations that which
  355  have voluntarily joined together, including, but not limited to,
  356  a united way or community chest, for purposes of raising and
  357  distributing contributions for and among themselves and where
  358  membership does not confer operating authority and control of
  359  the individual organization upon the federated group
  360  organization.
  361         (13)(11) “Fundraising costs” means those costs incurred in
  362  inducing others to make contributions to a charitable
  363  organization or sponsor for which the contributors will receive
  364  no direct economic benefit. Fundraising costs include, but are
  365  not limited to, salaries, rent, acquiring and obtaining mailing
  366  lists, printing, mailing, and all direct and indirect costs of
  367  soliciting, as well as the cost of unsolicited merchandise sent
  368  to encourage contributions.
  369         (14)(12) “Law enforcement officer” means a any person who
  370  is elected, appointed, or employed by any municipality or the
  371  state or any political subdivision thereof and:
  372         (a) Who is vested with authority to bear arms and make
  373  arrests and whose primary responsibility is the prevention and
  374  detection of crime or the enforcement of the criminal, traffic,
  375  or highway laws of the state; or
  376         (b) Whose responsibility includes supervision, protection,
  377  care, custody, or control of inmates within a correctional
  378  institution.
  379         (15) “Management and general costs” means all such costs of
  380  a charitable organization or sponsor which are not identifiable
  381  with a single program or fundraising activity but which are
  382  indispensable to the conduct of such programs and activities and
  383  the charitable organization’s or sponsor’s existence. The term
  384  includes, but is not limited to, expenses for:
  385         (a) The overall direction of the organization.
  386         (b) Business management.
  387         (c) General recordkeeping.
  388         (d) Budgeting.
  389         (e) Financial reporting and related expenses.
  390         (f) Salaries.
  391         (g) Rent.
  392         (h) Supplies.
  393         (i) Equipment.
  394         (j) General overhead.
  395         (16)(13) “Membership” means the relationship of a person to
  396  an organization which that entitles her or him to the
  397  privileges, professional standing, honors, or other direct
  398  benefit of the organization in addition to the right to vote,
  399  elect officers, and hold office in the organization.
  400         (17)(14) “Owner” means a any person who has a direct or
  401  indirect interest in any professional fundraising consultant or
  402  professional solicitor.
  403         (18)(15) “Parent organization” means that part of a
  404  charitable organization or sponsor which coordinates,
  405  supervises, or exercises control over policy, fundraising, and
  406  expenditures or assists or advises one or more of the
  407  organization’s chapters, branches, or affiliates in this state.
  408         (19)(16) “Person” means an any individual, organization,
  409  trust, foundation, group, association, entity, partnership,
  410  corporation, society, or any combination thereof of them.
  411         (20)(17) “Professional fundraising consultant” means a any
  412  person who is retained by a charitable organization or sponsor
  413  for a fixed fee or rate under a written agreement to plan,
  414  manage, conduct, carry on, advise, consult, or prepare material
  415  for a solicitation of contributions in this state, but who does
  416  not solicit contributions or employ, procure, or engage any
  417  compensated person to solicit contributions and who does not at
  418  any time have custody or control of contributions. A bona fide
  419  volunteer or bona fide employee or salaried officer of a
  420  charitable organization or sponsor maintaining a permanent
  421  establishment in this state is not a professional fundraising
  422  consultant. An attorney, investment counselor, or banker who
  423  advises an individual, corporation, or association to make a
  424  charitable contribution is not a professional fundraising
  425  consultant as the result of such advice.
  426         (21)(18) “Professional solicitor” means a any person who,
  427  for compensation, performs for a charitable organization or
  428  sponsor any service in connection with which contributions are
  429  or will be solicited in this state by the compensated person or
  430  by any person it employs, procures, or otherwise engages,
  431  directly or indirectly, to solicit contributions, or a person
  432  who plans, conducts, manages, carries on, advises, consults,
  433  whether directly or indirectly, in connection with the
  434  solicitation of contributions for or on behalf of a charitable
  435  organization or sponsor, but who does not qualify as a
  436  professional fundraising consultant. A bona fide volunteer or
  437  bona fide employee or salaried officer of a charitable
  438  organization or sponsor maintaining a permanent establishment in
  439  this state is not a professional solicitor. An attorney,
  440  investment counselor, or banker who advises an individual,
  441  corporation, or association to make a charitable contribution is
  442  not a professional solicitor as the result of such advice.
  443         (22) “Program service costs” means all expenses incurred
  444  primarily to accomplish the charitable organization or sponsor’s
  445  stated purposes. The term does not include fundraising costs.
  446         (23)(19) “Religious institution” means any church,
  447  ecclesiastical or denominational organization, or established
  448  physical place for worship in this state at which nonprofit
  449  religious services and activities are regularly conducted and
  450  carried on, and includes those bona fide religious groups which
  451  do not maintain specific places of worship. The term “Religious
  452  institution” also includes any separate group or corporation
  453  that which forms an integral part of a religious institution
  454  that which is exempt from federal income tax under the
  455  provisions of s. 501(c)(3) of the Internal Revenue Code, that is
  456  or qualifies as being exempt from filing an annual tax return
  457  under the provisions of 26 U.S.C. s. 6033, and that which is not
  458  primarily supported by funds solicited outside its own
  459  membership or congregation.
  460         (24)(20) “Solicitation” means a request, directly or
  461  indirectly, for money, property, financial assistance, or any
  462  other thing of value on the plea or representation that such
  463  money, property, financial assistance, or other thing of value
  464  or a portion of it will be used for a charitable or sponsor
  465  purpose or will benefit a charitable organization or sponsor.
  466  The term “Solicitation” includes, but is not limited to, the
  467  following methods of requesting or securing the promise, pledge,
  468  or grant of money, property, financial assistance, or any other
  469  thing of value:
  470         (a) Making any oral or written request;
  471         (b) Making any announcement to the press, on radio or
  472  television, by telephone or telegraph, or by any other
  473  communication device concerning an appeal or campaign by or for
  474  any charitable organization or sponsor or for any charitable or
  475  sponsor purpose;
  476         (c) Distributing, circulating, posting, or publishing any
  477  handbill, written advertisement, or other publication that
  478  directly or by implication seeks to obtain any contribution; or
  479         (d) Selling or offering or attempting to sell any
  480  advertisement, advertising space, book, card, coupon, chance,
  481  device, magazine, membership, merchandise, subscription,
  482  sponsorship, flower, admission, ticket, food, or other service
  483  or tangible good, item, or thing of value, or any right of any
  484  description in connection with which any appeal is made for any
  485  charitable organization or sponsor or charitable or sponsor
  486  purpose, or when the name of any charitable organization or
  487  sponsor is used or referred to in any such appeal as an
  488  inducement or reason for making the sale or when, in connection
  489  with the sale or offer or attempt to sell, any statement is made
  490  that all or part of the proceeds from the sale will be used for
  491  any charitable or sponsor purpose or will benefit any charitable
  492  organization or sponsor.
  493  
  494  A solicitation is considered as having taken place whether or
  495  not the person making the solicitation receives any
  496  contribution. A solicitation does not occur when a person
  497  applies for a grant or an award to the government or to an
  498  organization that is exempt from federal income taxation under
  499  s. 501(a) of the Internal Revenue Code and described in s.
  500  501(c) of the Internal Revenue Code and is duly registered with
  501  the department.
  502         (25)(21) “Sponsor” means a group or person that which is or
  503  holds itself out to be soliciting contributions by the use of
  504  any name that which implies that the group or person is in any
  505  way affiliated with or organized for the benefit of emergency
  506  service employees or law enforcement officers and the group or
  507  person which is not a charitable organization. The term includes
  508  a chapter, branch, or affiliate that which has its principal
  509  place of business outside the state, if such chapter, branch, or
  510  affiliate solicits or holds itself out to be soliciting
  511  contributions in this state.
  512         (26)(22) “Sponsor purpose” means any program or endeavor
  513  performed to benefit emergency service employees or law
  514  enforcement officers.
  515         (27)(23) “Sponsor sales promotion” means an advertising or
  516  sales campaign conducted by a commercial co-venturer who
  517  represents that the purchase or use of goods or services offered
  518  by the commercial co-venturer will be used for a sponsor purpose
  519  or donated to a sponsor. The provision of advertising services
  520  to a sponsor does not, in itself, constitute a sponsor sales
  521  promotion.
  522         Section 4. Subsection (1), paragraphs (a) and (g) of
  523  subsection (2), subsection (3), paragraph (b) of subsection (4),
  524  and subsections (7) and (8) of section 496.405, Florida
  525  Statutes, are amended, and subsections (9) and (10) are added to
  526  that section, to read:
  527         496.405 Registration statements by charitable organizations
  528  and sponsors.—
  529         (1)(a) A charitable organization or sponsor, unless
  530  exempted pursuant to s. 496.406, which intends to solicit
  531  contributions in this state by any means or have funds solicited
  532  on its behalf by any other person, charitable organization,
  533  sponsor, commercial co-venturer, or professional solicitor, or
  534  that participates in a charitable sales promotion or sponsor
  535  sales promotion, must, before prior to engaging in any of these
  536  activities, file an initial registration statement, and a
  537  renewal statement annually thereafter, with the department.
  538         (a)(b)Except as provided in paragraph (b), any changes in
  539  the information submitted on the initial registration statement
  540  or the last renewal statement must be updated annually on a
  541  renewal statement provided by the department on or before the
  542  date that marks 1 year after the date the department approved
  543  the initial registration statement as provided in this section.
  544  The department shall annually provide a renewal statement to
  545  each registrant by mail or by electronic mail at least 30 days
  546  before the renewal date.
  547         (b) Any changes to the information submitted to the
  548  department pursuant to paragraph (2)(d) on the initial
  549  registration statement or the last renewal statement must be
  550  reported to the department on a form prescribed by the
  551  department within 10 days after the change occurs.
  552         (c) A charitable organization or sponsor that is required
  553  to file an initial registration statement or annual renewal
  554  statement may not, before prior to approval of its statement by
  555  the department in accordance with subsection (7), solicit
  556  contributions or have contributions solicited on its behalf by
  557  any other person, charitable organization, sponsor, commercial
  558  co-venturer, or professional solicitor, or participate in a
  559  charitable sales promotion or sponsor sales promotion.
  560         (d) For good cause shown, the department may extend the
  561  time for the filing of an annual renewal statement or financial
  562  report for a period not to exceed 60 days, during which time the
  563  previous registration remains in effect.
  564         (d)(e)In no event shall The registration of a charitable
  565  organization or sponsor may not continue in effect and shall
  566  expire without further action of the department:
  567         1. After the date the charitable organization or sponsor
  568  should have filed, but failed to file, its renewal statement
  569  financial report in accordance with this section.
  570         2.For failure to provide a financial statement within any
  571  extension period provided under and s. 496.407. The organization
  572  may not file a renewal statement until it has filed the required
  573  financial report with the department.
  574         (2) The initial registration statement must be submitted on
  575  a form prescribed by the department, signed by an authorized
  576  official of the charitable organization or sponsor who shall
  577  certify that the registration statement is true and correct, and
  578  include the following information or material:
  579         (a) A copy of the financial statement report or Internal
  580  Revenue Service Form 990 and all attached schedules or Internal
  581  Revenue Service Form 990-EZ and Schedule O required under s.
  582  496.407 for the immediately preceding fiscal year. A newly
  583  organized charitable organization or sponsor with no financial
  584  history must file a budget for the current fiscal year.
  585         (g) The following information must be filed with the
  586  initial registration statement and must be updated when any
  587  change occurs in the information that was previously filed with
  588  the initial registration statement:
  589         1. The principal street address and telephone number of the
  590  charitable organization or sponsor and the street address and
  591  telephone numbers of any offices in this state or, if the
  592  charitable organization or sponsor does not maintain an office
  593  in this state, the name, street address, and telephone number of
  594  the person who that has custody of its financial records. The
  595  parent organization that files a consolidated registration
  596  statement on behalf of its chapters, branches, or affiliates
  597  must additionally provide the street addresses and telephone
  598  numbers of all such locations in this state.
  599         2. The names and street addresses of the officers,
  600  directors, trustees, and the principal salaried executive
  601  personnel.
  602         3. The date when the charitable organization’s or sponsor’s
  603  fiscal year ends.
  604         4. A list or description of the major program activities.
  605         5. The names, street addresses, and telephone numbers of
  606  the individuals or officers who have final responsibility for
  607  the custody of the contributions and who will be responsible for
  608  the final distribution of the contributions.
  609         (3) Each chapter, branch, or affiliate of a parent
  610  organization that is required to register under this section
  611  must either file a separate registration statement and financial
  612  statement report or must report the required information to its
  613  parent organization, which shall then file, on a form prescribed
  614  by the department, a consolidated registration statement for the
  615  parent organization and its Florida chapters, branches, and
  616  affiliates. A consolidated registration statement filed by a
  617  parent organization must include or be accompanied by financial
  618  statements reports as specified in s. 496.407 for the parent
  619  organization and each of its Florida chapters, branches, and
  620  affiliates that solicited or received contributions during the
  621  preceding fiscal year. However, if all contributions received by
  622  chapters, branches, or affiliates are remitted directly into a
  623  depository account that which feeds directly into the parent
  624  organization’s centralized accounting system from which all
  625  disbursements are made, the parent organization may submit one
  626  consolidated financial statement report on a form prescribed by
  627  the department. The consolidated financial statement must
  628  reflect the activities of each chapter, branch, or affiliate of
  629  the parent organization, including all contributions received in
  630  the name of each chapter, branch, or affiliate; all payments
  631  made to each chapter, branch, or affiliate; and all
  632  administrative fees assessed to each chapter, branch, or
  633  affiliate.
  634         (4)
  635         (b) A charitable organization or sponsor that which fails
  636  to file a registration statement by the due date may be assessed
  637  an additional fee for such late filing. The late filing fee is
  638  shall be $25 for each month or part of a month after the date on
  639  which the annual renewal statement was and financial report were
  640  due to be filed with the department.
  641         (7)(a) The department must examine each initial
  642  registration statement or annual renewal statement and the
  643  supporting documents filed by a charitable organization or
  644  sponsor and shall determine whether the registration
  645  requirements are satisfied. Within 15 business working days
  646  after its receipt of a statement, the department must examine
  647  the statement, notify the applicant of any apparent errors or
  648  omissions, and request any additional information the department
  649  is allowed by law to require. Failure to correct an error or
  650  omission or to supply additional information is not grounds for
  651  denial of the initial registration or annual renewal statement
  652  unless the department has notified the applicant within such
  653  period of 15 business days the 15-working-day period. The
  654  department must approve or deny each statement, or must notify
  655  the applicant that the activity for which she or he seeks
  656  registration is exempt from the registration requirement, within
  657  15 business working days after receipt of the initial
  658  registration or annual renewal statement or the requested
  659  additional information or correction of errors or omissions. Any
  660  statement that is not approved or denied within 15 business
  661  working days after receipt of the requested additional
  662  information or correction of errors or omissions is approved.
  663  Within 7 business working days after receipt of a notification
  664  that the registration requirements are not satisfied, the
  665  charitable organization or sponsor may request a hearing. The
  666  hearing must be held within 7 business working days after
  667  receipt of the request, and any recommended order, if one is
  668  issued, must be rendered within 3 business working days of the
  669  hearing. The final order must then be issued within 2 business
  670  working days after the recommended order. If a recommended order
  671  is not issued, the final order must be issued within 5 business
  672  working days after the hearing. The proceedings must be
  673  conducted in accordance with chapter 120, except that the time
  674  limits and provisions set forth in this subsection prevail to
  675  the extent of any conflict.
  676         (b) If a charitable organization or sponsor discloses
  677  information specified in subparagraphs (2)(d)2.-7. in the
  678  initial registration statement or annual renewal statement, the
  679  time limits of this subsection are waived, and the department
  680  shall process such initial registration statement or annual
  681  renewal statement in accordance with the time limits in chapter
  682  120. The registration of a charitable organization or sponsor
  683  shall be automatically suspended for failure to disclose any
  684  information specified in subparagraphs (2)(d)2.-7. until such
  685  time as the required information is submitted to the department.
  686         (8) A No charitable organization or sponsor, or any
  687  officer, director, trustee, or employee thereof, may not shall
  688  knowingly allow any officer, director, trustee, or employee of
  689  the charitable organization or sponsor of its officers,
  690  directors, trustees, or employees to solicit contributions on
  691  behalf of such charitable organization or sponsor if such
  692  officer, director, trustee, or employee has, in any state,
  693  regardless of adjudication, been convicted of, or found guilty
  694  of, or pled guilty or nolo contendere to, or has been
  695  incarcerated within the last 10 years as a result of having
  696  previously been convicted of, or found guilty of, or pled guilty
  697  or nolo contendere to, any felony within the last 10 years or
  698  any crime within the last 10 years involving fraud, theft,
  699  larceny, embezzlement, fraudulent conversion, misappropriation
  700  of property, or any crime arising from the conduct of a
  701  solicitation for a charitable organization or sponsor, or has
  702  been enjoined, in any state, from violating any law relating to
  703  a charitable solicitation. The prohibitions in this subsection
  704  also apply to any misdemeanor in another state which constitutes
  705  a disqualifying felony in this state.
  706         (9) The department may deny or revoke the registration of a
  707  charitable organization or sponsor if the charitable
  708  organization or sponsor, or any officer, director, or trustee
  709  thereof, has had the right to solicit contributions revoked in
  710  any state, has entered into an agreement with any state to cease
  711  soliciting contributions within that state, or has been ordered
  712  by any court or governmental agency to cease soliciting
  713  contributions within any state.
  714         (10) A charitable organization or sponsor registered under
  715  this section which ends solicitation activities or participation
  716  in charitable sales promotions in this state shall immediately
  717  notify the department in writing of the date such activities
  718  ceased.
  719         Section 5. Section 496.4055, Florida Statutes, is created
  720  to read:
  721         496.4055 Charitable organization or sponsor board duties.—
  722         (1) As used in this section, the term “conflict of interest
  723  transaction” means a transaction between a charitable
  724  organization or sponsor and another party in which a director,
  725  officer, or trustee of the charitable organization or sponsor
  726  has a direct or indirect interest. The term includes, but is not
  727  limited to, the sale, lease, or exchange of property to or from
  728  the charitable organization or sponsor; the lending of moneys to
  729  or borrowing of moneys from the charitable organization or
  730  sponsor; and the payment of compensation for services provided
  731  to or from the charitable organization or sponsor.
  732         (2) The board of directors, or an authorized committee
  733  thereof, of a charitable organization or sponsor required to
  734  register with the department under this chapter shall adopt a
  735  policy regarding conflict of interest transactions.
  736         Section 6. Section 496.407, Florida Statutes, is amended to
  737  read:
  738         496.407 Financial statement report.—
  739         (1) A charitable organization or sponsor that is required
  740  to initially register or annually renew registration must file
  741  an annual financial statement report for the immediately
  742  preceding fiscal year on upon a form prescribed by the
  743  department.
  744         (a) The statement report must include the following:
  745         1.(a) A balance sheet.
  746         2.(b) A statement of support, revenue and expenses, and any
  747  change in the fund balance.
  748         3.(c) The names and addresses of the charitable
  749  organizations or sponsors, professional fundraising consultant,
  750  professional solicitors, and commercial co-venturers used, if
  751  any, and the amounts received from each of them, if any.
  752         4.(d) A statement of functional expenses that must include,
  753  but not be limited to, expenses in the following categories:
  754         a.1. Program service costs.
  755         b.2. Management and general costs.
  756         c.3. Fundraising costs.
  757         (b) The financial statement must be audited or reviewed as
  758  follows:
  759         1. For a charitable organization or sponsor that receives
  760  less than $500,000 in annual contributions, a compilation,
  761  audit, or review of the financial statement is optional.
  762         2. For a charitable organization or sponsor that receives
  763  at least $500,000 but less than $1 million in annual
  764  contributions, the financial statement shall be reviewed or
  765  audited by an independent certified public accountant.
  766         3. For a charitable organization or sponsor that receives
  767  $1 million or more in annual contributions, the financial
  768  statement shall be audited by an independent certified public
  769  accountant.
  770         (c) Audits and reviews shall be performed in accordance
  771  with the following standards:
  772         1. Audits shall be performed in accordance with generally
  773  accepted auditing standards, including the Statements on
  774  Auditing Standards of the American Institute of Certified Public
  775  Accountants.
  776         2. Reviews shall be performed in accordance with the
  777  Statements on Standards for Accounting and Review Services of
  778  the American Institute of Certified Public Accountants.
  779         (d) Audited and reviewed financial statements must be
  780  accompanied by a report signed and prepared by the independent
  781  certified public accountant performing such audit or review.
  782         (2) In lieu of the financial statement report described in
  783  subsection (1), a charitable organization or sponsor that
  784  receives less than $500,000 in annual contributions may submit a
  785  copy of its Internal Revenue Service Form 990 and all attached
  786  schedules filed for the preceding fiscal year, or a copy of its
  787  Internal Revenue Service Form 990-EZ and Schedule O filed for
  788  the preceding fiscal year.
  789         (3) Upon a showing of good cause, the department may:
  790         (a) Extend the time for the filing of a financial statement
  791  required under this section by up to 180 days, during which time
  792  the previous registration shall remain active. The registration
  793  shall be automatically suspended for failure to file the
  794  financial statement within the extension period.
  795         (b) Require that an audit or review be conducted for any
  796  financial statement submitted by any charitable organization or
  797  sponsor. A charitable organization or sponsor may elect to also
  798  include a financial report that has been audited by an
  799  independent certified public accountant or an audit with opinion
  800  by an independent certified public accountant. In the event that
  801  a charitable organization or sponsor elects to file an audited
  802  financial report, this optional filing must be noted in the
  803  department’s annual report submitted pursuant to s. 496.423.
  804         Section 7. Section 496.4071, Florida Statutes, is created
  805  to read:
  806         496.4071Supplemental financial disclosure.—
  807         (1) If, for the immediately preceding fiscal year, a
  808  charitable organization or sponsor had more than $1 million in
  809  total revenue and spent less than 25 percent of the
  810  organization’s total annual functional expenses on program
  811  service costs, in addition to any financial statement required
  812  under s. 496.407, the charitable organization or sponsor shall
  813  file the following supplemental financial information on a form
  814  prescribed by the department:
  815         (a) The dollar amount and the percentage of total revenue
  816  and charitable contributions allocated to funding each of the
  817  following administrative functions:
  818         1. Total salaries of all persons employed by the charitable
  819  organization or sponsor.
  820         2. Fundraising.
  821         3. Travel expenses.
  822         4. Overhead and other expenses related to managing and
  823  administering the charitable organization or sponsor.
  824         (b) The name of and specific sum earned by or paid to all
  825  employees or consultants who earned or were paid more than
  826  $100,000 during the immediately preceding fiscal year.
  827         (c) The name of and specific sum paid to all service
  828  providers who were paid $100,000 or more during the immediately
  829  preceding fiscal year and a brief description of the services
  830  provided.
  831         (d) The dollar amount and percentage of total revenue and
  832  charitable contributions allocated to programs.
  833         (e) The details of any economic or business transactions
  834  between the charitable organization or sponsor and an officer,
  835  trustee, or director of the charitable organization or sponsor;
  836  the immediate family of an officer, trustee, or director of the
  837  charitable organization or sponsor; any entity controlled by an
  838  officer, trustee, or director of the charitable organization or
  839  sponsor; any entity controlled by the immediate family of an
  840  officer, trustee, or director of the charitable organization or
  841  sponsor; any entity that employed or engaged for consultation an
  842  officer, trustee, or director of the charitable organization or
  843  sponsor; and any entity that employed or engaged for
  844  consultation the immediate family of an officer, trustee, or
  845  director of the charitable organization or sponsor. As used in
  846  this paragraph, the term “immediate family” means a parent,
  847  spouse, child, sibling, ancestor, descendant, brother-in-law,
  848  sister-in-law, son-in-law, daughter-in-law, mother-in-law, or
  849  father-in-law.
  850         (2) The supplemental financial information required under
  851  subsection (1) must be filed with the department by the
  852  charitable organization or sponsor within 30 days after
  853  receiving a request for such information from the department.
  854         Section 8. Section 496.4072, Florida Statutes, is created
  855  to read:
  856         496.4072 Financial statements for specific disaster relief
  857  solicitations.—
  858         (1) A charitable organization or sponsor that solicits
  859  contributions in this state for a charitable purpose related to
  860  a specific disaster or crisis and receives at least $100,000 in
  861  contributions in response to such solicitation shall file
  862  quarterly disaster relief financial statements with the
  863  department on a form prescribed by the department. The quarterly
  864  statements must detail the contributions secured as a result of
  865  the solicitation and the manner in which such contributions were
  866  expended.
  867         (2) The first quarterly statement shall be filed on the
  868  last day of the third month following the accrual of at least
  869  $100,000 in contributions after the commencement of
  870  solicitations for the specific disaster or crisis. The
  871  charitable organization or sponsor shall continue to file
  872  quarterly statements with the department until the quarter after
  873  all contributions raised in response to the solicitation are
  874  expended.
  875         Section 9. Subsections (4), (6), and (9) of section
  876  496.409, Florida Statutes, are amended, and subsection (10) is
  877  added to that section, to read:
  878         496.409 Registration and duties of professional fundraising
  879  consultant.—
  880         (4) A professional fundraising consultant may enter into a
  881  contract or agreement with a charitable organization or sponsor
  882  only if the charitable organization or sponsor has complied with
  883  all applicable provisions of this chapter. A Every contract or
  884  agreement between a professional fundraising consultant and a
  885  charitable organization or sponsor must be in writing, signed by
  886  two authorized officials of the charitable organization or
  887  sponsor, and filed by the professional fundraising consultant
  888  with the department at least 5 days before prior to the
  889  performance of any material service by the professional
  890  fundraising consultant. Solicitation under the contract or
  891  agreement may not begin before the filing of the contract or
  892  agreement.
  893         (6)(a) The department shall examine each registration
  894  statement and all supporting documents filed by a professional
  895  fundraising consultant and determine whether the registration
  896  requirements are satisfied. If the department determines that
  897  the registration requirements are not satisfied, the department
  898  must notify the professional fundraising consultant within 15
  899  business working days after its receipt of the registration
  900  statement; otherwise the registration statement is approved.
  901  Within 7 business working days after receipt of a notification
  902  that the registration requirements are not satisfied, the
  903  applicant may request a hearing. The hearing must be held within
  904  7 business working days after receipt of the request, and any
  905  recommended order, if one is issued, must be rendered within 3
  906  business working days after the hearing. The final order must
  907  then be issued within 2 business working days after the
  908  recommended order. If there is no recommended order, the final
  909  order must be issued within 5 business working days after the
  910  hearing. The proceedings must be conducted in accordance with
  911  chapter 120, except that the time limits and provisions set
  912  forth in this subsection prevail to the extent of any conflict.
  913         (b) If a professional fundraising consultant discloses
  914  information specified in paragraphs (2)(e)-(g) in the initial
  915  application for registration or renewal application, the
  916  processing time limits of this subsection are waived and the
  917  department shall process the initial application for
  918  registration or the renewal application in accordance with the
  919  time limits in chapter 120. The registration of a professional
  920  consultant shall be automatically suspended for failure to
  921  disclose any information specified in paragraphs (2)(e)-(g)
  922  until such time as the required information is submitted to the
  923  department.
  924         (9) A No person may not act as a professional fundraising
  925  consultant, and a no professional fundraising consultant, or any
  926  officer, director, trustee, or employee thereof, may not shall
  927  knowingly employ any officer, trustee, director, or employee, if
  928  such person has, in any state, regardless of adjudication, been
  929  convicted of, or found guilty of, or pled guilty or nolo
  930  contendere to, or has been incarcerated within the last 10 years
  931  as a result of having previously been convicted of, or found
  932  guilty of, or pled guilty or nolo contendere to, any crime
  933  within the last 10 years involving fraud, theft, larceny,
  934  embezzlement, fraudulent conversion, or misappropriation of
  935  property, or any crime arising from the conduct of a
  936  solicitation for a charitable organization or sponsor, or has
  937  been enjoined in any state from violating any law relating to a
  938  charitable solicitation.
  939         (10) The department may deny or revoke the registration of
  940  a professional fundraising consultant if the professional
  941  fundraising consultant, or any of its officers, directors, or
  942  trustees, has had the right to solicit contributions revoked in
  943  any state, has entered into an agreement with any state to cease
  944  soliciting contributions within that state, or has been ordered
  945  by any court or governmental agency to cease soliciting
  946  contributions within any state.
  947         Section 10. Present subsections (3), (5), (7), (14), and
  948  (15) of section 496.410, Florida Statutes, are amended,
  949  paragraphs (j), (k), and (l) are added to subsection (2) of that
  950  section, paragraphs (i) through (n) are added to subsection (6)
  951  of that section, and a new subsection (15) is added to that
  952  section, to read:
  953         496.410 Registration and duties of professional
  954  solicitors.—
  955         (2) Applications for registration or renewal of
  956  registration must be submitted on a form prescribed by rule of
  957  the department, signed by an authorized official of the
  958  professional solicitor who shall certify that the report is true
  959  and correct, and must include the following information:
  960         (j) A list of all telephone numbers the applicant will use
  961  to solicit contributions as well as the actual physical address
  962  associated with each telephone number and any fictitious names
  963  associated with such address.
  964         (k) A copy of any script, outline, or presentation used by
  965  the applicant to solicit contributions or, if such solicitation
  966  aids are not used, written confirmation thereof.
  967         (l) A copy of sales information or literature provided to a
  968  donor or potential donor by the applicant in connection with a
  969  solicitation.
  970         (3) The application for registration must be accompanied by
  971  a fee of $300. A professional solicitor that is a partnership or
  972  corporation may register for and pay a single fee on behalf of
  973  all of its partners, members, officers, directors, agents, and
  974  employees. In that case, The names and street addresses of all
  975  the officers, employees, and agents of the professional
  976  solicitor and all other persons with whom the professional
  977  solicitor has contracted to work under its direction, including
  978  solicitors, must be listed in the application or furnished to
  979  the department within 5 days after the date of employment or
  980  contractual arrangement. Each registration is valid for 1 year
  981  and. The registration may be renewed for an additional 1-year
  982  period upon application to the department and payment of the
  983  registration fee.
  984         (5)(a) The department must examine each registration
  985  statement and supporting documents filed by a professional
  986  solicitor. If the department determines that the registration
  987  requirements are not satisfied, the department must notify the
  988  professional solicitor within 15 business working days after its
  989  receipt of the registration statement; otherwise the
  990  registration statement is approved. Within 7 business working
  991  days after receipt of a notification that the registration
  992  requirements are not satisfied, the applicant may request a
  993  hearing. The hearing must be held within 7 business working days
  994  after receipt of the request, and any recommended order, if one
  995  is issued, must be rendered within 3 business working days after
  996  the hearing. The final order must then be issued within 2
  997  business working days after the recommended order. If there is
  998  no recommended order, the final order must be issued within 5
  999  business working days after the hearing. The proceedings must be
 1000  conducted in accordance with chapter 120, except that the time
 1001  limits and provisions set forth in this subsection prevail to
 1002  the extent of any conflict.
 1003         (b) If a professional solicitor makes a disclosure
 1004  specified in paragraphs (2)(f)-(h) in the initial application
 1005  for registration or the renewal application, the processing time
 1006  limits of this subsection are waived and the department shall
 1007  process the initial application for registration or renewal
 1008  application in accordance with the time limits in chapter 120.
 1009  The registration of a professional solicitor shall be
 1010  automatically suspended for failure to disclose any information
 1011  specified in paragraphs (2)(f)-(h) until such time as the
 1012  required information is submitted to the department.
 1013         (6) No less than 15 days before commencing any solicitation
 1014  campaign or event, the professional solicitor must file with the
 1015  department a solicitation notice on a form prescribed by the
 1016  department. The notice must be signed and sworn to by the
 1017  contracting officer of the professional solicitor and must
 1018  include:
 1019         (i) A statement of the guaranteed minimum percentage of the
 1020  gross receipts from contributions which will be remitted to the
 1021  charitable organization or sponsor, if any, or, if the
 1022  solicitation involves the sale of goods, services, or tickets to
 1023  a fundraising event, the percentage of the purchase price which
 1024  will be remitted to the charitable organization or sponsor, if
 1025  any.
 1026         (j) The percentage of a contribution which may be deducted
 1027  as a charitable contribution under federal income tax laws.
 1028         (k) A statement as to whether any owner, director, officer,
 1029  trustee, or employee of the professional solicitor is related as
 1030  a parent, spouse, child, sibling, ancestor, descendant, brother
 1031  in-law, sister-in-law, son-in-law, daughter-in-law, mother-in
 1032  law, or father-in-law to:
 1033         1. Another officer, director, owner, trustee, or employee
 1034  of the professional solicitor.
 1035         2. Any officer, director, owner, trustee, or employee of a
 1036  charitable organization or sponsor under contract to the
 1037  professional solicitor.
 1038         3. Any supplier or vendor providing goods or services to a
 1039  charitable organization or sponsor under contract to the
 1040  professional solicitor.
 1041         (l) The beginning and ending dates of the solicitation
 1042  campaign.
 1043         (m) A copy of any script, outline, or presentation used by
 1044  the professional solicitor to solicit contributions for the
 1045  solicitation campaign. If such aids are not used, written
 1046  confirmation thereof.
 1047         (n) A copy of sales information or literature provided to a
 1048  donor or potential donor by the professional solicitor in
 1049  connection with the solicitation campaign.
 1050         (7) A professional solicitor may enter into a contract or
 1051  agreement with a charitable organization or sponsor only if the
 1052  charitable organization or sponsor has complied with all
 1053  applicable provisions of this chapter. A Each contract or
 1054  agreement between a professional solicitor and a charitable
 1055  organization or sponsor for each solicitation campaign must be
 1056  in writing, signed by two authorized officials of the charitable
 1057  organization or sponsor, one of whom must be a member of the
 1058  organization’s governing body and one of whom must be the
 1059  authorized contracting officer for the professional solicitor,
 1060  and contain all of the following provisions:
 1061         (a) A statement of the charitable or sponsor purpose and
 1062  program for which the solicitation campaign is being conducted.
 1063         (b) A statement of the respective obligations of the
 1064  professional solicitor and the charitable organization or
 1065  sponsor.
 1066         (c) A statement of the guaranteed minimum percentage of the
 1067  gross receipts from contributions which will be remitted to the
 1068  charitable organization or sponsor, if any, or, if the
 1069  solicitation involves the sale of goods, services, or tickets to
 1070  a fundraising event, the percentage of the purchase price which
 1071  will be remitted to the charitable organization or sponsor, if
 1072  any. Any stated percentage shall exclude any amount which the
 1073  charitable organization or sponsor is to pay as fundraising
 1074  costs.
 1075         (d) A statement of the percentage of the gross revenue
 1076  which the professional solicitor will be compensated. If the
 1077  compensation of the professional solicitor is not contingent
 1078  upon the number of contributions or the amount of revenue
 1079  received, his or her compensation shall be expressed as a
 1080  reasonable estimate of the percentage of the gross revenue, and
 1081  the contract must clearly disclose the assumptions upon which
 1082  the estimate is based. The stated assumptions must be based upon
 1083  all of the relevant facts known to the professional solicitor
 1084  regarding the solicitation to be conducted by the professional
 1085  solicitor.
 1086         (e) The effective and termination dates of the contract.
 1087         (14) A No person may not act as a professional solicitor,
 1088  and a no professional solicitor, or any officer, director,
 1089  trustee, or employee thereof, may not shall, to solicit for
 1090  compensation, knowingly employ any officer, trustee, director,
 1091  employee, or any person with a controlling interest therein, who
 1092  has, in any state, regardless of adjudication, been convicted
 1093  of, or found guilty of, or pled guilty or nolo contendere to, or
 1094  has been incarcerated within the last 10 years as a result of
 1095  having previously been convicted of, or found guilty of, or pled
 1096  guilty or nolo contendere to, a felony within the last 10 years
 1097  involving fraud, theft, larceny, embezzlement, fraudulent
 1098  conversion, or misappropriation of property, or any crime
 1099  arising from the conduct of a solicitation for a charitable
 1100  organization or sponsor, or has been enjoined in any state from
 1101  violating any law relating to a charitable solicitation. The
 1102  prohibitions in this subsection also apply to any misdemeanor in
 1103  another state which constitutes a disqualifying felony in this
 1104  state.
 1105         (15) The department may deny or revoke the registration of
 1106  a professional solicitor if the professional solicitor, or any
 1107  of its officers, directors, trustees, or agents, has had the
 1108  right to solicit contributions revoked in any state, has entered
 1109  into an agreement with any state to cease soliciting
 1110  contributions within that state, or has been ordered by any
 1111  court or governmental agency to cease soliciting contributions
 1112  within any state.
 1113         (16)(15) All registration fees must be paid to the
 1114  department and deposited into the General Inspection Trust Fund.
 1115         Section 11. Section 496.4101, Florida Statutes, is created
 1116  to read:
 1117         496.4101 Licensure of professional solicitors and certain
 1118  employees thereof.—
 1119         (1) Each officer, director, trustee, or owner of a
 1120  professional solicitor and any employee of a professional
 1121  solicitor conducting telephonic solicitations must, before
 1122  engaging in solicitation activities, obtain a solicitor license
 1123  from the department.
 1124         (2) Persons required to obtain a solicitor license under
 1125  subsection (1) shall submit to the department, in such form as
 1126  the department prescribes, an application for a solicitor
 1127  license. The application must include the following information:
 1128         (a)The true name, date of birth, unique identification
 1129  number of a driver license or other valid form of
 1130  identification, and home address of the applicant.
 1131         (b)If the applicant, in any state, regardless of
 1132  adjudication, has previously been convicted of, or found guilty
 1133  of, or pled guilty or nolo contendere to, or has been
 1134  incarcerated within the last 10 years as a result of having
 1135  previously been convicted of, or found guilty of, or pled guilty
 1136  or nolo contendere to, any crime within the last 10 years
 1137  involving fraud, theft, larceny, embezzlement, fraudulent
 1138  conversion, or misappropriation of property, or any crime
 1139  arising from the conduct of a solicitation for a charitable
 1140  organization or sponsor, or has been enjoined, in any state,
 1141  from violating any law relating to a charitable solicitation.
 1142         (c)If the applicant, in any state, is involved in pending
 1143  litigation or has had entered against her or him an injunction,
 1144  a temporary restraining order, or a final judgment or order,
 1145  including a stipulated judgment or order, an assurance of
 1146  voluntary compliance, cease and desist, or any similar document,
 1147  in any civil or administrative action involving fraud, theft,
 1148  larceny, embezzlement, fraudulent conversion, or
 1149  misappropriation of property, or has been enjoined from
 1150  violating any law relating to a charitable solicitation.
 1151         (3) Each applicant shall submit a complete set of his or
 1152  her fingerprints with the initial application for a solicitor
 1153  license and a fee equal to the federal and state costs for
 1154  fingerprint processing.
 1155         (a) The applicant’s fingerprints must be taken by an
 1156  authorized law enforcement officer or fingerprinting service
 1157  provider approved by the Department of Law Enforcement.
 1158         (b) The department shall forward the complete set of
 1159  fingerprints to the Department of Law Enforcement to be
 1160  processed for state and federal criminal justice information as
 1161  defined in s. 943.045. The Department of Law Enforcement shall
 1162  report the findings of the state and national criminal history
 1163  background check to the department within 30 days after the
 1164  fingerprints are submitted to the Department of Law Enforcement
 1165  for criminal justice information.
 1166         (4) A solicitor license must be renewed annually by the
 1167  submission of a renewal application. A solicitor license that is
 1168  not renewed expires without further action by the department.
 1169         (5) Each applicant for a solicitor license shall remit a
 1170  license fee of $100 to the department at the time the initial
 1171  application is filed with the department and an annual renewal
 1172  fee of $100 thereafter. All fees collected, less the cost of
 1173  administration, shall be deposited into the General Inspection
 1174  Trust Fund.
 1175         (6) Any material change to the information submitted to the
 1176  department in the initial application or renewal application for
 1177  a solicitor license shall be reported to the department by the
 1178  applicant or licensee within 10 days after the change occurs.
 1179  The applicant or licensee shall also submit a fee in the amount
 1180  of $10 for processing the change to the initial or renewal
 1181  application.
 1182         (7) It is a violation of this chapter:
 1183         (a) For an applicant to provide inaccurate or incomplete
 1184  information to the department in the initial or renewal
 1185  application for a solicitor license.
 1186         (b) For any person specified in subsection (1) to fail to
 1187  maintain a solicitor license as required by this section.
 1188         (c) For a professional solicitor to allow, require, permit,
 1189  or authorize an employee without an active solicitor license
 1190  issued under this section to conduct telephonic solicitations.
 1191         (8) The department shall adopt rules that allow certain
 1192  applicants to engage in solicitation activities on an interim
 1193  basis until such time as a solicitor license is granted or
 1194  denied.
 1195         (9) The department may deny or revoke any solicitor license
 1196  if the applicant or licensee has had the right to solicit
 1197  contributions revoked in any state, has entered into an
 1198  agreement with any state to cease soliciting contributions
 1199  within that state, has been ordered by any court or governmental
 1200  agency to cease soliciting contributions within any state, or is
 1201  subject to any disqualification specified in s. 496.410(14).
 1202         Section 12. Subsections (2) and (3) of section 496.411,
 1203  Florida Statutes, are amended to read:
 1204         496.411 Disclosure requirements and duties of charitable
 1205  organizations and sponsors.—
 1206         (2) A charitable organization or sponsor soliciting in this
 1207  state must include all of the following disclosures at the point
 1208  of solicitation:
 1209         (a) The name of the charitable organization or sponsor and
 1210  state of the principal place of business of the charitable
 1211  organization or sponsor;
 1212         (b) A description of the purpose or purposes for which the
 1213  solicitation is being made;
 1214         (c) Upon request, the name and either the address or
 1215  telephone number of a representative to whom inquiries could be
 1216  addressed;
 1217         (d) Upon request, the amount of the contribution which may
 1218  be deducted as a charitable contribution under federal income
 1219  tax laws;
 1220         (e) Upon request, the source from which a written financial
 1221  statement may be obtained. Such financial statement must be for
 1222  the immediate preceding past fiscal year and must be consistent
 1223  with the annual financial statement report filed under s.
 1224  496.407. The written financial statement must be provided within
 1225  14 days after the request and must state the purpose for which
 1226  funds are raised, the total amount of all contributions raised,
 1227  the total costs and expenses incurred in raising contributions,
 1228  the total amount of contributions dedicated to the stated
 1229  purpose or disbursed for the stated purpose, and whether the
 1230  services of another person or organization have been contracted
 1231  to conduct solicitation activities.
 1232         (3) Every charitable organization or sponsor that which is
 1233  required to register under s. 496.405 or is exempt under s.
 1234  496.406(2)(d) shall must conspicuously display in capital
 1235  letters the following statement on every printed solicitation,
 1236  written confirmation, receipt, or reminder of a contribution:
 1237  
 1238         “A COPY OF THE OFFICIAL REGISTRATION AND FINANCIAL
 1239         INFORMATION MAY BE OBTAINED FROM THE DIVISION OF
 1240         CONSUMER SERVICES BY CALLING TOLL-FREE WITHIN THE
 1241         STATE. REGISTRATION DOES NOT IMPLY ENDORSEMENT,
 1242         APPROVAL, OR RECOMMENDATION BY THE STATE.”
 1243  
 1244  The statement must include a toll-free number and website for
 1245  the division which that can be used to obtain the registration
 1246  information. If When the solicitation consists of more than one
 1247  piece, the statement must be displayed prominently in the
 1248  solicitation materials. If the solicitation occurs through a
 1249  website, the statement must be conspicuously displayed on the
 1250  webpage where donations are requested.
 1251         Section 13. Subsection (1) of section 496.412, Florida
 1252  Statutes, is amended to read:
 1253         496.412 Disclosure requirements and duties of professional
 1254  solicitors.—
 1255         (1) A professional solicitor must comply with and be
 1256  responsible for complying or causing compliance with the
 1257  following disclosures:
 1258         (a) Before Prior to orally requesting a contribution, or
 1259  contemporaneously with a written request for a contribution, a
 1260  professional solicitor must clearly disclose:
 1261         1. The name of the professional solicitor as on file with
 1262  the department.
 1263         2. If the individual acting on behalf of the professional
 1264  solicitor identifies himself or herself by name, the
 1265  individual’s legal name.
 1266         3. The name and state of the principal place of business of
 1267  the charitable organization or sponsor and a description of how
 1268  the contributions raised by the solicitation will be used for a
 1269  charitable or sponsor purpose; or, if there is no charitable
 1270  organization or sponsor, a description as to how the
 1271  contributions raised by the solicitation will be used for a
 1272  charitable or sponsor purpose.
 1273         (b) In the case of a solicitation campaign conducted
 1274  orally, whether by telephone or otherwise, any written
 1275  confirmation, receipt, or reminder sent to any person who has
 1276  contributed or has pledged to contribute, shall include a clear
 1277  disclosure of the information required by paragraph (a).
 1278         (c) In addition to the information required by paragraph
 1279  (a), any written confirmation, receipt, or reminder of
 1280  contribution made pursuant to an oral solicitation and any
 1281  written solicitation shall conspicuously state in capital
 1282  letters:
 1283  
 1284         “A COPY OF THE OFFICIAL REGISTRATION AND FINANCIAL
 1285         INFORMATION MAY BE OBTAINED FROM THE DIVISION OF
 1286         CONSUMER SERVICES BY CALLING TOLL-FREE WITHIN THE
 1287         STATE. REGISTRATION DOES NOT IMPLY ENDORSEMENT,
 1288         APPROVAL, OR RECOMMENDATION BY THE STATE.”
 1289  
 1290  The statement must include a toll-free number and website for
 1291  the division which that can be used to obtain the registration
 1292  information. If When the solicitation consists of more than one
 1293  piece, the statement must be displayed prominently in the
 1294  solicitation materials. If the solicitation occurs on a website,
 1295  the statement must be conspicuously displayed on the webpage
 1296  where donations are requested.
 1297         (d) If requested by the person being solicited, the
 1298  professional solicitor shall inform that person in writing,
 1299  within 14 days after of the request, of the fixed percentage of
 1300  the gross revenue or the reasonable estimate of the percentage
 1301  of the gross revenue that the charitable organization or sponsor
 1302  will receive as a benefit from the solicitation campaign or
 1303  shall immediately notify the person being solicited that the
 1304  information is available on the department’s website or by
 1305  calling the division’s toll-free number.
 1306         (e) If requested by the person being solicited, the
 1307  professional solicitor shall inform that person in writing,
 1308  within 14 days after of the request, of the percentage of the
 1309  contribution which may be deducted as a charitable contribution
 1310  under federal income tax laws or shall immediately notify the
 1311  person being solicited that the information is available on the
 1312  department’s website or by calling the division’s toll-free
 1313  number.
 1314         Section 14. Section 496.4121, Florida Statutes, is created
 1315  to read:
 1316         496.4121 Collection receptacles used for donations.—
 1317         (1) As used in this section, the term “collection
 1318  receptacle“ means a receptacle used to collect donated clothing,
 1319  household items, or other goods for resale.
 1320         (2) A collection receptacle must display a permanent sign
 1321  or label on each side which contains the following information
 1322  printed in letters that are at least 3 inches in height and no
 1323  less than one-half inch in width, in a color that contrasts with
 1324  the color of the collection receptacle:
 1325         (a) For collection receptacles used by a person required to
 1326  register under this chapter, the name, business address,
 1327  telephone number, and registration number of the charitable
 1328  organization or sponsor for whom the solicitation is made.
 1329         (b) For collection receptacles placed or maintained in
 1330  public view by a person not required to register under this
 1331  chapter, the name, telephone number, and physical address of the
 1332  business conducting the solicitation and the statement: “This is
 1333  not a charity. Donations made here support a for-profit business
 1334  and are not tax deductible.”
 1335         (3) Upon request, a charitable organization or sponsor
 1336  using a collection receptacle must provide the donor with
 1337  documentation of its tax-exempt status and the registration
 1338  issued under this chapter.
 1339         Section 15. Subsection (2) of section 496.415, Florida
 1340  Statutes, is amended, and subsection (18) is added to that
 1341  section, to read:
 1342         496.415 Prohibited acts.—It is unlawful for any person in
 1343  connection with the planning, conduct, or execution of any
 1344  solicitation or charitable or sponsor sales promotion to:
 1345         (2) Knowingly Submit false, misleading, or inaccurate
 1346  information in a document that is filed with the department,
 1347  provided to the public, or offered in response to a request or
 1348  investigation by the department, the Department of Legal
 1349  Affairs, or the state attorney.
 1350         (18) Fail to remit to a charitable organization or sponsor
 1351  the disclosed guaranteed minimum percentage of gross receipts
 1352  from contributions as required under s. 496.410(7)(c) or, if the
 1353  solicitation involved the sale of goods, services, or tickets to
 1354  a fundraising event, the percentage of the purchase price as
 1355  agreed in the contract or agreement as required under this
 1356  chapter.
 1357         Section 16. Subsection (5) of section 496.419, Florida
 1358  Statutes, is amended to read:
 1359         496.419 Powers of the department.—
 1360         (5) Upon a finding as set forth in subsection (4), the
 1361  department may enter an order doing one or more of the
 1362  following:
 1363         (a) Issuing a notice of noncompliance pursuant to s.
 1364  120.695;
 1365         (b) Issuing a cease and desist order that directs that the
 1366  person cease and desist specified fundraising activities;
 1367         (c) Refusing to register or canceling or suspending a
 1368  registration;
 1369         (d) Placing the registrant on probation for a period of
 1370  time, subject to such conditions as the department may specify;
 1371         (e) Canceling an exemption granted under s. 496.406; and
 1372         (f) Except as provided in paragraph (g), imposing an
 1373  administrative fine not to exceed $5,000 $1,000 for each act or
 1374  omission that which constitutes a violation of ss. 496.401
 1375  496.424 or s. 496.426 or a rule or order. With respect to a s.
 1376  501(c)(3) organization, the penalty imposed pursuant to this
 1377  subsection may shall not exceed $500 per violation for failure
 1378  to register under s. 496.405 or file for an exemption under s.
 1379  496.406(2). The penalty shall be the entire amount per violation
 1380  and is not to be interpreted as a daily penalty; and
 1381         (g) Imposing an administrative fine not to exceed $10,000
 1382  for a violation of this chapter that involves fraud or
 1383  deception.
 1384         Section 17. Section 496.4191, Florida Statutes, is created
 1385  to read:
 1386         496.4191Additional penalty; immediate suspension.—Upon
 1387  notification and subsequent written verification by a law
 1388  enforcement agency, a court, a state attorney, or the Florida
 1389  Department of Law Enforcement, the department shall immediately
 1390  suspend a registration or the processing of an application for a
 1391  registration if the registrant, applicant, or any officer or
 1392  director of the registrant or applicant is formally charged with
 1393  a crime involving fraud, theft, larceny, embezzlement, or
 1394  fraudulent conversion or misappropriation of property or any
 1395  crime arising from the conduct of a solicitation for a
 1396  charitable organization or sponsor until final disposition of
 1397  the case or removal or resignation of that officer or director.
 1398         Section 18. Section 496.430, Florida Statutes, is created
 1399  to read:
 1400         496.430 Disqualification for certain tax exemptions.—
 1401         (1) The department may issue an order to disqualify a
 1402  charitable organization or sponsor from receiving any sales tax
 1403  exemption if the department finds, based upon the average of
 1404  functional expenses and program service costs provided to the
 1405  department pursuant to s. 496.407 for the 3 most recent fiscal
 1406  years, that the charitable organization or sponsor has failed to
 1407  expend at least 25 percent of its total annual functional
 1408  expenses on program service costs.
 1409         (2) A charitable organization or sponsor may appeal a
 1410  disqualification order by requesting a hearing within 21 days
 1411  after notification from the department that it has issued a
 1412  disqualification order under this section. The hearing must be
 1413  conducted in accordance with chapter 120.
 1414         (3) Notwithstanding a finding under subsection (1) that a
 1415  charitable organization or sponsor has failed to expend at least
 1416  25 percent of its total annual functional expenses on program
 1417  service costs, the department may decline to issue a
 1418  disqualification order if the charitable organization or sponsor
 1419  establishes:
 1420         (a) That payments were made to affiliates which should be
 1421  considered in calculating the program service costs;
 1422         (b) That revenue was accumulated for a specific program
 1423  purpose consistent with representations in solicitations; or
 1424         (c) Such other mitigating circumstances as are defined by
 1425  rule of the department.
 1426         (4) A disqualification order issued by the department
 1427  pursuant to this section is effective for at least 1 year after
 1428  such order becomes final and shall remain effective until such
 1429  time as the department receives sufficient evidence from the
 1430  disqualified charitable organization or sponsor which
 1431  demonstrates it expends at least 25 percent of its total annual
 1432  functional expenses on program service costs.
 1433         (a) The charitable organization or sponsor may not submit
 1434  such evidence to the department sooner than 1 year after the
 1435  disqualification order becomes final and may not submit such
 1436  information more than once each year for consideration by the
 1437  department.
 1438         (b) The department shall also consider any financial
 1439  statement that was submitted by the charitable organization or
 1440  sponsor to the department pursuant to s. 496.407 after the
 1441  disqualification order became final.
 1442         (5) The department shall provide a disqualification order
 1443  to the Department of Revenue within 30 days after such order
 1444  becomes final. A final disqualification order is conclusive as
 1445  to the charitable organization’s or sponsor’s entitlement to any
 1446  sales tax exemption. The Department of Revenue shall revoke or
 1447  refuse to grant a sales tax exemption certificate to a
 1448  charitable organization or sponsor subject to a final
 1449  disqualification order within 30 days after receiving such
 1450  disqualification order. A charitable organization or sponsor may
 1451  not appeal or challenge the revocation or denial of a sales tax
 1452  exemption certificate by the Department of Revenue if such
 1453  revocation or denial is based upon a final disqualification
 1454  order issued pursuant to this section.
 1455         (6) This section does not apply to a charitable
 1456  organization or sponsor that:
 1457         (a) Is not required to register under this chapter with the
 1458  department; or
 1459         (b) Has been in existence for less than 4 years.
 1460         Section 19. Paragraph (a) of subsection (3) of section
 1461  741.0305, Florida Statutes, is amended to read:
 1462         741.0305 Marriage fee reduction for completion of
 1463  premarital preparation course.—
 1464         (3)(a) All individuals electing to participate in a
 1465  premarital preparation course shall choose from the following
 1466  list of qualified instructors:
 1467         1. A psychologist licensed under chapter 490.
 1468         2. A clinical social worker licensed under chapter 491.
 1469         3. A marriage and family therapist licensed under chapter
 1470  491.
 1471         4. A mental health counselor licensed under chapter 491.
 1472         5. An official representative of a religious institution
 1473  which is recognized under s. 496.404(23) 496.404(19), if the
 1474  representative has relevant training.
 1475         6. Any other provider designated by a judicial circuit,
 1476  including, but not limited to, school counselors who are
 1477  certified to offer such courses. Each judicial circuit may
 1478  establish a roster of area course providers, including those who
 1479  offer the course on a sliding fee scale or for free.
 1480         Section 20. For the 2014-2015 fiscal year, the sum of
 1481  $175,000 in nonrecurring funds is appropriated from the General
 1482  Inspection Trust Fund of the Department of Agriculture and
 1483  Consumer Services to the Contracted Services appropriation
 1484  category for the purpose of implementing this act. Funds
 1485  remaining unexpended or unencumbered from this appropriation as
 1486  of June 30, 2015, shall revert and be reappropriated for the
 1487  same purpose in the 2015-2016 fiscal year.
 1488         Section 21. This act shall take effect July 1, 2014.