HB 6217 — AN ACT INCREASING TRANSPARENCY FOR CHARITABLE ORGANIZATIONS.

House of Representatives General Assembly CommitteeFile Bill No.

6217133 January Session, 2021 LCOHouse Bill No.

43146217 ReferredHouse toof Representatives, March 25, 2021 The Committee on GENERALGeneral LAWLaw Introducedreported by:through REP.

(GL)D'AGOSTINO ANof ACTthe INCREASING91st TRANSPARENCYDist., FORChairperson CHARITABLEof ORGANIZATIONS.the Committee on the part of the House, that the bill ought to pass.

AN ACT INCREASING TRANSPARENCY FOR CHARITABLE ORGANIZATIONS.

(3)HB6217 "Solicit"/ andFile "solicitation" mean any request directly or indirectly LCO 4314 \\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06217-R021 of 5 HB.docx Committee Bill No.

6217133 for1 money,HB6217 credit,File property,No. financial assistance or other thing of any kind or value on the plea or representation that such money, credit, property, financial assistance or other thing of any kind or value is to be used for a charitable purpose or benefit a charitable organization.

133 (3) "Solicit" and "solicitation" [shallmean include]any includes,request butdirectly [shall]or isindirectly notfor [be]money, limitedcredit, to,property, thefinancial followingassistance methodsor ofrequestingother thing of any kind or securingvalue on the plea or representation that such money, credit,property,financialassistanceorothercredit, thingofvalue:(A)Anyoralproperty, financial assistance or writtenother request;thing of any kind or value is to be used for a charitable purpose or benefit a charitable organization.

"Solicit" and "solicitation" [shall include] includes, but [shall] is not [be] limited to, the following methods ofrequesting or securing such money, credit,property,financialassistanceorotherthingofvalue:(A)Anyoral or written request;

(5) "Contribution" means the grant, promise or pledge of money, credit, property, financial assistance or other thing of any kind or value inresponse to a solicitation."Contribution" [shall]doesnot includeincludebona bona fide fees, dues or assessments paid by members, provided membership is not conferred solely as consideration for making a contribution in response to a solicitation.

LCOHB6217 4314/ {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06217-2File of 5 R02-HB.docx } Committee Bill No.

6217133 (6)2 "Fund-raisingHB6217 counsel"File meansNo. a person who for compensation plans, manages, advises or consults with respect to the solicitation in thisstate ofcontributionsby a charitableorganization,but who does not solicit contributions and who does not directly or indirectly employ, procure or engage any person compensated to solicit contributions.

133 (6) "Fund-raising counsel" means a person who for compensation plans, manages, advises or consults with respect to the solicitation in thisstate ofcontributionsby a charitableorganization,but who does not solicit contributions and who does not directly or indirectly employ, procure or engage any person compensated to solicit contributions.

LCO(13) 4314"Parent {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-062173organization" means that part of 5a R02-HB.docxcharitable }HB6217 Committee/ BillFile No.

6217133 (13)3 "ParentHB6217 organization"File meansNo. that part of a charitable organization which supervises and exercises control over the solicitation and expenditure activities of one or more chapters, branches or affiliates.

133 organization which supervises and exercises control over the solicitation and expenditure activities of one or more chapters, branches or affiliates.

LCOAny 4314such {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-062174charitable oforganization 5may R02-HB.docxrequest }a Committeehearing Billon No.its noncompliant status in accordance with the provisions of chapter 54.

6217HB6217 Any/ suchFile charitableNo. organization may request a hearing on its noncompliant status in accordance with the provisions of chapter 54.

(c)133 In4 additionHB6217 toFile theNo. application fee required pursuant to subsection (a)ofthissection,a charitableorganizationshallpay alate feeoftwenty- five dollars for each month, or part thereof, that such application for registrationislate.

133 (c) In addition to the application fee required pursuant to subsection (a)ofthissection,a charitableorganizationshallpay alate feeoftwenty- five dollars for each month, or part thereof, that such application for registrationislate.

Section 1 January 1, 2022 21a-190a January 1, 2022 Sec.

2 January 1, 2022 21a-190b GL Joint Favorable LCOHB6217 4314/ {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06217-File 5No. of 5 R02-HB.docx }

133 5 HB6217 File No.

133 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.

Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note State Impact:

None Municipal Impact:

None Explanation The bill requires charitable organizations to disclose certain informationwhensolicitingoruponrequestresultinginnofiscalimpact to the state.

The Out Years State Impact:

None Municipal Impact:

None HB6217 / File No.

133 6 HB6217 File No.

133 OLR Bill Analysis HB 6217 AN ACT INCREASING TRANSPARENCY FOR CHARITABLE ORGANIZATIONS.

SUMMARY This bill requires Department of Consumer Protection (DCP)- registered charitable organizations, when soliciting, to disclose (1) their registration number and (2) the percentage offunds they collected inthe prior calendar year that directly funded their charitable purpose (see BACKGROUND).

This information must also be provided upon anyone’s request.

The bill also requires registered charitable organizations to conspicuously display their registration number on printed advertisements.

By law, unchanged by the bill, charitable organizations (whether a person or a legal entity) receiving at least $50,000 in donations annually generally must register with DCP.

The law exempts certain organizations from registration, such as the following:

1.