HOUSE BILL 958
47th legislature - STATE OF NEW MEXICO - first session, 2005
INTRODUCED BY
Al Park
AN ACT
RELATING TO CHARITABLE ORGANIZATIONS; REQUIRING REGISTRATION OF FUNDRAISING CAMPAIGNS; CREATING A FUND; PRESCRIBING FEES; MAKING APPROPRIATIONS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 57-22-6 NMSA 1978 (being Laws 1983, Chapter 140, Section 6, as amended) is amended to read:
"57-22-6. FILING OF REQUIRED DOCUMENTS.--
A. A charitable organization existing, operating or soliciting in the state, unless exempted by Section 57-22-4 NMSA 1978, shall register with the attorney general on a form provided by the attorney general; correct any deficiencies in its registration upon notice of deficiencies provided by the attorney general; [and] provide a copy of its IRS Form 1023 or IRS Form 1024 application for exempt status with its registration; and pay the required registration fees.
B. The attorney general shall notify each charitable organization required to register within ten business days of his receipt of the registration form of any deficiencies in the registration and may make rules in accordance with the State Rules Act, as are necessary for the proper administration of this section, including:
(1) requirements for filing additional information, including disclosure of professional fundraising counsel retained by the charitable organization; and
(2) provisions for suspending the filing of reports or granting an exemption from the registration and reporting requirements of this section for a charitable organization subject to audit, registration, charter or other requirements of a statewide, regional or national association and if it is determined that such reports or registration is not necessary for the protection of the public interest.
C. In addition to any other reporting requirements pursuant to the Charitable Solicitations Act, every charitable organization that has received tax-exempt status pursuant to Section 501(c)(3) of the federal Internal Revenue Code of 1986, as amended, and is required to file a form 990, 990EZ or 990PF pursuant to the Internal Revenue Code of 1986, as amended, shall file that form and the accompanying schedule A annually with the office of the attorney general up to six months following the close of the charitable organization's fiscal year. Extensions of time for filing may be allowed at the discretion of the attorney general for good cause shown. Such forms shall be public records and available for public inspection. Organizations that do not file a form 990, 990EZ or 990PF pursuant to the Internal Revenue Code of 1986, as amended, shall file an annual report, under oath, on the form provided by the attorney general for that purpose. A charitable organization that received total revenue in excess of five hundred thousand dollars ($500,000) shall be audited by an independent certified public accountant. Audits shall be performed in accordance with generally acceptable accounting principles. A charitable organization shall correct any deficiencies in an annual report upon notice of deficiencies provided by the attorney general.
D. A charitable organization that fails to register before a solicitation is made or fails to timely file its tax filings with the attorney general pursuant to Subsection C of this section may be assessed a late filing fee of one hundred dollars ($100).
E. The attorney general may accept information filed by a charitable organization with another state or the federal government in lieu of the registration and reporting requirements of the Charitable Solicitations Act if such information is determined by the attorney general to be in substantial compliance with the registration and reporting requirements of that act."
Section 2. Section 57-22-6.1 NMSA 1978 (being Laws 1999, Chapter 124, Section 12) is amended to read:
"57-22-6.1. PROFESSIONAL FUNDRAISERS--REGISTRATION.--
A. Professional fundraisers shall, before entering into a contract with [any] a charitable organization, except a religious organization, to solicit for or on its behalf:
(1) register with the attorney general on a form provided by the attorney general and pay the required fees;
(2) file with the attorney general a surety bond pursuant to the Charitable Solicitations Act; and
(3) file with the attorney general a copy of the intended written contract between the professional fundraiser and the charitable organization on whose behalf the professional fundraiser intends to conduct a solicitation campaign.
B. The contract between the professional fundraiser and the charitable organization shall clearly describe the:
(1) compensation and authority of the professional fundraiser;
(2) solicitation campaign;
(3) location and telephone numbers from where solicitations are intended to be conducted;
(4) list of names and addresses of all employees, agents or other persons who are to solicit during the campaign; and
(5) copies of the solicitation literature, including scripts of any written or verbal solicitation.
C. The charitable organization on whose behalf the professional fundraiser is acting shall certify that the contract and solicitation materials filed with the attorney general are true and complete.
D. Within ten business days after receiving a registration pursuant to this section, the attorney general shall notify the professional fundraiser of any deficiencies in the registration, contract or bond; otherwise the filing is deemed approved as filed.
E. A professional fundraiser who fails to register with the attorney general may be assessed a late registration fee of five hundred dollars ($500)."
Section 3. A new section of the Charitable Solicitations Act is enacted to read:
"[NEW MATERIAL] FUNDRAISING CAMPAIGNS.--Unless exempted by the provisions of Section 57-22-4 or 57-22-6.1 NMSA 1978, every professional fundraiser soliciting donations on behalf of a charitable organization shall file each fundraising campaign with and submit to the attorney general:
A. a copy of all campaign materials;
B. a copy of the contract between the professional fundraiser and the charitable organization;
C. other information requested by the attorney general; and
D. the fundraising campaign registration fee."
Section 4. A new section of the Charitable Solicitations Act is enacted to read:
"[NEW MATERIAL] REGISTRATION FEES.--
A. The attorney general may charge the following fees:
(1) for initial and annual registration as a charitable organization, a fee not to exceed twenty-five dollars ($25.00);
(2) for initial registration as a professional fundraiser, a fee not to exceed five hundred dollars ($500); and
(3) for registration of a fundraising campaign, a fee not to exceed two hundred fifty dollars ($250).
B. Fees shall be deposited in the charitables unit fund."
Section 5. A new section of the Charitable Solicitations Act is enacted to read:
"[NEW MATERIAL] FUND CREATED--USE.--The "charitables unit fund" is created in the state treasury. The fund consists of registration fees collected pursuant to the Charitable Solicitations Act, appropriations, gifts, grants and donations. Money in the fund shall not revert to any other fund at the end of a fiscal year. The fund shall be administered by the attorney general and money in the fund is appropriated to the attorney general to defray costs associated with the administration and enforcement of the Charitable Soliciations Act."
Section 6. APPROPRIATION.--Three hundred thousand dollars ($300,000) is appropriated from the general fund to the charitables unit fund for expenditure in fiscal year 2006 and subsequent fiscal years to carry out the purposes of the fund. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert to the general fund.
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