Connecticut 2022 Regular Session

Connecticut House Bill HB05222 Compare Versions

Version 1 (Old)

Version 2 (New)

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7		-	General Assembly Substitute Bill No. 5222
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	6	+	LCO No. 1656 1 of 12
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	8	+	General Assembly Raised Bill No. 5222
8	9		February Session, 2022
	10	+	LCO No. 1656
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	13	+	Referred to Committee on GENERAL LAW
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	15	+
	16	+	Introduced by:
	17	+	(GL)
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14	22		AN ACT CONCERNING PAID SOLICITORS OF CHARITABLE FUNDS
15	23		AND CHARITABLE ORGANIZATION TRANSPARENCY.
16	24		Be it enacted by the Senate and House of Representatives in General
17	25		Assembly convened:
18	26
19	27		Section 1. Section 21a-190f of the general statutes is repealed and the 1
20	28		following is substituted in lieu thereof (Effective from passage): 2
21	29		(a) No person shall act as a paid solicitor unless such person has first 3
22	30		registered with the department. Registration shall be in a form 4
23	31		prescribed by the commissioner, shall be certified by the paid solicitor 5
24	32		as true and correct to the best of the solicitor's knowledge and shall be 6
25	33		accompanied by a fee in the amount of five hundred dollars. The 7
26	34		application shall contain such information as the department shall 8
27	35		require. Each registration shall be valid for one year and may be 9
28	36		renewed for additional one-year periods. 10
29	37		(b) An applicant for registration or for a renewal of registration as a 11
30	38		paid solicitor shall, at the time of making such application, file with and 12
31	39		have approved by the department a bond in a form prescribed by the 13
32	40		commissioner, in which the applicant shall be the principal obligor in 14
33		-	the sum of twenty thousand dollars, with one or more responsible 15
	41	+	the sum of twenty thousand dollars, with one or more responsible 15 Raised Bill No. 5222
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34	47		sureties whose liability in the aggregate as such sureties shall be no less 16
35	48		than such sum. The paid solicitor shall maintain the bond in effect as 17
36		-	long as the registration is in effect. The bond shall run to the state and 18 Substitute Bill No. 5222
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	49	+	long as the registration is in effect. The bond shall run to the state and 18
43	50		to any person who may have a cause of action against the principal 19
44	51		obligor of the bond for any liabilities resulting from the obligor's 20
45	52		conduct of any activities subject to sections 21a-190a to 21a-190l, 21
46	53		inclusive, as amended by this act, or arising out of a violation of said 22
47	54		sections or any regulation adopted pursuant to said sections. 23
48	55		(c) No less than [twenty days] one business day prior to the 24
49	56		commencement of each solicitation campaign, a paid solicitor shall file 25
50	57		with the department a copy of the contract described in subsection (d) 26
51	58		of this section and shall complete a solicitation notice in a form 27
52	59		prescribed by the commissioner. A solicitation notice shall be certified 28
53	60		by the paid solicitor as true and correct to the best of the solicitor's 29
54	61		knowledge and shall include a description of the solicitation event or 30
55	62		campaign, the location and telephone number from which the 31
56	63		solicitation is to be conducted, the names and residence addresses of all 32
57	64		employees, agents or other persons however styled who are to solicit 33
58	65		during such campaign and the account number and location of all bank 34
59	66		accounts where receipts from such campaign are to be deposited. 35
60	67		[Copies of campaign solicitation literature, including the text of any 36
61	68		solicitation to be made orally, shall be submitted to the department.] The 37
62	69		charitable organization on whose behalf the paid solicitor is acting shall 38
63	70		certify that the solicitation notice and accompanying material are true 39
64	71		and complete. [Prior to the commencement of such solicitation 40
65	72		campaign, the commissioner shall publicize such solicitation by posting 41
66	73		on the department's web site information describing the terms of the 42
67	74		contract between the paid solicitor and the charitable organization, the 43
68	75		dates of such solicitation campaign and the percentage of the raised 44
69	76		funds to be retained by the paid solicitor. The commissioner may 45
70	77		publicize such solicitation through any additional means the 46
71	78		commissioner deems appropriate.] 47
72	79		(d) A contract between a paid solicitor and a charitable organization 48
73		-	shall be in writing, shall clearly state the respective obligations of the 49
74		-	paid solicitor and the charitable organization and shall state the 50
75		-	minimum amount that the charitable organization shall receive as a 51 Substitute Bill No. 5222
	80	+	shall be in writing, shall clearly state the respective obligations of the 49 Raised Bill No. 5222
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	86	+	paid solicitor and the charitable organization and shall state the 50
	87	+	minimum amount that the charitable organization shall receive as a 51
82	88		result of the solicitation campaign, which minimum amount shall be 52
83	89		stated as a percentage of the gross revenue. Such minimum amount 53
84	90		shall not include any amount that the charitable organization is to pay 54
85	91		as expenses of the solicitation campaign. 55
86	92		(e) A paid solicitor shall, prior to orally requesting a contribution, and 56
87	93		at the same time at which a written request for a contribution is made, 57
88	94		clearly and conspicuously disclose at the point of solicitation such 58
89	95		solicitor's name as on file with the department [,] and the fact that such 59
90	96		solicitor is a paid solicitor. [and the percentage of the gross revenue 60
91	97		which the charitable organization shall receive as identified in 61
92	98		subsection (d) of this section.] 62
93	99		(f) A paid solicitor shall, in the case of a solicitation campaign 63
94	100		conducted orally, whether by telephone or otherwise, send a written 64
95	101		confirmation to each person who has pledged to contribute, no more 65
96	102		than five days after such person has been solicited, which confirmation 66
97	103		shall include a clear and conspicuous disclosure of the information 67
98	104		required by subsection (e) of this section. 68
99	105		(g) A paid solicitor shall not represent that any part of the 69
100	106		contributions received will be given or donated to any charitable 70
101	107		organization unless such organization has consented in writing to the 71
102	108		use of its name, prior to the solicitation. Such written consent, if given, 72
103	109		shall be signed by two authorized officers, directors or trustees of the 73
104	110		charitable organization. 74
105	111		(h) No paid solicitor may represent that tickets to an event are to be 75
106	112		donated for use by another, unless the paid solicitor has first obtained a 76
107	113		commitment, in writing, from a charitable organization stating that it 77
108	114		will accept donated tickets and specifying the number of tickets which 78
109	115		it is willing to accept and provided no more contributions for donated 79
110	116		tickets shall be solicited than the number of ticket commitments 80
111		-	received from the charitable organization. 81
112		-	(i) A paid solicitor shall require any person such solicitor directly or 82 Substitute Bill No. 5222
	117	+	received from the charitable organization. 81 Raised Bill No. 5222
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	123	+	(i) A paid solicitor shall require any person such solicitor directly or 82
119	124		indirectly employs, procures or engages to solicit to comply with the 83
120	125		provisions of subsections (e) to (h), inclusive, of this section. 84
121	126		(j) A paid solicitor shall file a financial report for the campaign with 85
122	127		the department no more than ninety days after a solicitation campaign 86
123	128		has been completed, and on the anniversary of the commencement of 87
124	129		any solicitation campaign which lasts more than one year, in a form 88
125	130		prescribed by the commissioner. The financial report shall include gross 89
126	131		revenue and an itemization of all expenditures incurred. The report 90
127	132		shall be completed on a form prescribed by the department. An 91
128	133		authorized official of the paid solicitor and two authorized officials of 92
129	134		the charitable organization shall certify that such report is true and 93
130	135		complete to the best of their knowledge. The information contained in 94
131	136		such report shall be available to the public. 95
132	137		(k) A paid solicitor shall maintain during each solicitation campaign 96
133	138		and for not less than three years after the completion of each such 97
134	139		campaign the following records: [, which shall be available to the 98
135	140		department for inspection upon request:] (1) The name and address of 99
136	141		each contributor, if known to the paid solicitor, and the date and amount 100
137	142		of the contribution; [, provided the department shall not disclose this 101
138	143		information except to the extent necessary for investigative or law 102
139	144		enforcement purposes;] (2) the name and residence of each employee, 103
140	145		agent or other person involved in the solicitation; and (3) records of all 104
141	146		income received and expenses incurred in the course of the solicitation 105
142	147		campaign. The paid solicitor shall make the records required under 106
143	148		subdivisions (2) and (3) of this subsection, as well as records containing 107
144	149		the dates and amounts described in subdivision (1) of this subsection, 108
145	150		available to the department for inspection upon request. 109
146	151		(l) If a paid solicitor sells tickets to an event and represents that tickets 110
147	152		will be donated for use by another, the paid solicitor shall maintain, for 111
148	153		not less than three years after the completion of such event, the 112
149	154		following records, which shall be available to the department for 113
150		-	inspection upon request: (1) The name and address of contributors 114
151		-	donating tickets and the number of tickets donated by each contributor; 115 Substitute Bill No. 5222
	155	+	inspection upon request: (1) The name and address of contributors 114 Raised Bill No. 5222
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	161	+	donating tickets and the number of tickets donated by each contributor; 115
158	162		and (2) the name and address of all organizations receiving donated 116
159	163		tickets for use by others, including the number of tickets received by 117
160	164		each organization. 118
161	165		(m) All funds collected by the paid solicitor shall be deposited in a 119
162	166		bank account. The bank account shall be in the name of the charitable 120
163	167		organization with whom the paid solicitor has contracted and the 121
164	168		charitable organization shall have sole or joint control of the account. 122
165	169		(n) Any material change in any information filed with the department 123
166	170		pursuant to this section shall be reported in writing or electronically by 124
167	171		the paid solicitor to the department not more than seven days after such 125
168	172		change occurs. 126
169	173		(o) No person may act as a paid solicitor if such person, any officer or 127
170	174		director thereof, any person with a controlling interest therein, or any 128
171	175		person the paid solicitor employs, engages or procures to solicit for 129
172	176		compensation, has been convicted by a court of any state or the United 130
173	177		States of any felony, or of any misdemeanor involving dishonesty or 131
174	178		arising from the conduct of a solicitation for a charitable organization or 132
175	179		purpose. Any denial, suspension or revocation of the registration of a 133
176	180		paid solicitor based on a violation of this subsection shall be made in 134
177	181		accordance with the provisions of section 46a-80. 135
178	182		Sec. 2. Section 21a-190a of the general statutes is repealed and the 136
179	183		following is substituted in lieu thereof (Effective January 1, 2023): 137
180	184		As used in this section and sections [21a-190a] 21a-190b to 21a-190l, 138
181	185		inclusive, as amended by this act: 139
182	186		(1) "Charitable organization" means any person who is, or holds 140
183		-	[himself] ~~oneself~~ out to be, established for (A) any [benevolent, 141
	187	+	[himself] such person out to be, established for (A) any [benevolent, 141
184	188		educational, philanthropic, humane, scientific, patriotic, social welfare 142
185	189		or advocacy, public health, environmental conservation, civic or 143
186	190		eleemosynary] charitable purpose, or [for] (B) the benefit of firefighters, 144
187		-	law enforcement officers [, firefighters] or other persons who protect the 145
188		-	public safety. 146 Substitute Bill No. 5222
	191	+	law enforcement officers [, firefighters] or other persons who protect the 145 Raised Bill No. 5222
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	197	+	public safety. 146
195	198		(2) "Charitable purpose" means any benevolent, civic, educational, 147
196	199		eleemosynary, environmental conservation, humane, patriotic, 148
197	200		philanthropic, public health, scientific, social advocacy or social welfare 149
198	201		objective. 150
199	202		(3) "Charitable sales promotion" means an advertising or sales 151
200	203		campaign, conducted by a commercial coventurer, which represents 152
201	204		that the purchase or use of goods or services offered by the commercial 153
202	205		coventurer are to benefit a charitable organization or charitable purpose. 154
203	206		(4) "Commercial coventurer" means a person who (A) for profit, is 155
204	207		primarily and regularly engaged in trade or commerce in this state other 156
205	208		than in connection with the raising of funds for charitable organizations 157
206	209		or charitable purposes, and (B) conducts a charitable sales promotion. 158
207	210		(5) "Commissioner" means the Commissioner of Consumer 159
208	211		Protection. 160
209	212		(6) (A) "Contribution" means the grant, pledge or promise of credit, 161
210	213		financial assistance, money, property or other thing of any kind or value 162
211	214		in response to a solicitation. 163
212	215		(B) "Contribution" does not include bona fide assessments, dues or 164
213	216		fees paid by members, provided membership is not conferred solely as 165
214	217		consideration for making a contribution in response to a solicitation. 166
215	218		(7) "Department" means the Department of Consumer Protection. 167
216	219		(8) (A) "Fund-raising counsel" means a person who (i) is compensated 168
217	220		to advise, consult, manage or plan with respect to the solicitation in this 169
218		-	state of contributions by a charitable organization, (ii) does not ~~solicit~~ 170
219		-	contributions, ~~and~~ (~~iii~~) ~~does not~~ directly or indirectly engage, employ or 171
	221	+	state of contributions by a charitable organization, and (ii) does not (I) 170
	222	+	solicit contributions, or (II) directly or indirectly engage, employ or 171
220	223		procure any person compensated to solicit contributions. 172
221	224		(B) "Fund-raising counsel" does not include a bona fide 173
222		-	nontemporary salaried employee or officer of a charitable organization. 174 ~~Substitute~~ Bill No. 5222
	225	+	nontemporary salaried employee or officer of a charitable organization. 174 Raised Bill No. 5222
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229	231		(9) "Gross revenue" means income of any kind from all sources, 175
230	232		including all amounts received as the result of any solicitation by a paid 176
231	233		solicitor, without deduction of any costs or expenses. 177
232	234		(10) "Membership" means that which entitles a person to the honors, 178
233	235		privileges, professional standing or other direct benefit of the 179
234	236		organization and the rights to vote, elect officers and hold office in the 180
235	237		organization. 181
236	238		(11) (A) "Paid solicitor" means a person who, for any consideration 182
237	239		other than any nonmonetary gift of nominal value awarded to a 183
238	240		volunteer solicitor as an incentive or token of appreciation, performs for 184
239	241		a charitable organization any service in connection with which 185
240	242		contributions are solicited by such person or by any person he or she 186
241	243		directly or indirectly employs, engages or procures to solicit for such 187
242	244		contributions. 188
243	245		(B) "Paid solicitor" does not include a bona fide nontemporary 189
244	246		salaried employee or officer of a charitable organization. 190
245	247		(12) "Parent organization" means that part of a charitable 191
246	248		organization which exercises control over and supervises the 192
247	249		expenditure and solicitation activities of one or more affiliates, branches 193
248	250		or chapters. 194
249	251		[(2)] (13) "Person" means an individual, association, corporation, 195
250	252		limited liability company, [association] foundation, partnership, trust [, 196
251	253		foundation] or any other entity however styled. 197
252	254		[(3)] (14) "Solicit" and "solicitation" (A) mean any request directly or 198
253	255		indirectly for [money,] credit, financial assistance, money, property [, 199
254	256		financial assistance] or other thing of any kind or value on the plea or 200
255	257		representation that such [money,] credit, financial assistance, money, 201
256	258		property [, financial assistance] or other thing of any kind or value is to 202
257	259		be used for a charitable purpose or benefit a charitable organization, [. 203
258	260		"Solicit" and "solicitation" shall] and (B) include, but [shall] are not [be] 204
259		-	limited to, the following methods of requesting or securing such 205 ~~Substitute~~ Bill No. 5222
	261	+	limited to, the following methods of requesting or securing such 205 Raised Bill No. 5222
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266	267		[money,] credit, financial assistance, money, property [, financial 206
267	268		assistance] or other thing of value: [(A)] (i) Any oral or written request; 207
268	269		[(B)] (ii) any announcement to the press, over the radio or television or 208
269	270		by telephone or telegraph concerning an appeal or campaign by or for 209
270	271		any charitable organization or charitable purpose; [(C)] (iii) the 210
271	272		circulation, distribution, [circulation,] posting or publishing of any 211
272		-	handbill, written advertisement or other publication; [(D)] ~~and~~ (iv) the 212
273		-	~~offer~~ or sale of, [offer] or attempt to sell, any advertisement, advertising 213
	273	+	handbill, written advertisement or other publication; [(D)] (iv) the offer 212
	274	+	or sale of, [offer] or attempt to sell, any advertisement, advertising 213
274	275		space, book, candy, card, [tag,] cookies, coupon, device, flower, 214
275	276		magazine, membership, merchandise, subscription, [flower,] tag, ticket 215
276	277		[, candy, cookies] or other tangible item in connection with an appeal 216
277	278		made for any charitable organization or charitable purpose, or where 217
278	279		the name of any charitable organization is used or referred to in any 218
279	280		such appeal as an inducement or reason for making any such sale [,] or 219
280	281		when or where in connection with any such sale, any statement is made 220
281	282		that the whole or any part of the proceeds from any such sale is to be 221
282	283		used for any charitable purpose or benefit any charitable organization. 222
283	284		A solicitation shall be deemed to have taken place whether or not the 223
284	285		person making the [same] solicitation receives any contribution. 224
285	286		[(4) "Charitable purpose" means any benevolent, educational, 225
286	287		philanthropic, humane, scientific, patriotic, social welfare or advocacy, 226
287	288		public health, environmental conservation, civic or eleemosynary 227
288	289		objective. 228
289	290		(5) "Contribution" means the grant, promise or pledge of money, 229
290	291		credit, property, financial assistance or other thing of any kind or value 230
291	292		in response to a solicitation. "Contribution" shall not include bona fide 231
292	293		fees, dues or assessments paid by members, provided membership is 232
293	294		not conferred solely as consideration for making a contribution in 233
294	295		response to a solicitation. 234
295	296		(6) "Fund-raising counsel" means a person who for compensation 235
296	297		plans, manages, advises or consults with respect to the solicitation in 236
297	298		this state of contributions by a charitable organization, but who does not 237
298		-	solicit contributions and who does not directly or indirectly employ, 238 ~~Substitute~~ Bill No. 5222
	299	+	solicit contributions and who does not directly or indirectly employ, 238 Raised Bill No. 5222
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305	305		procure or engage any person compensated to solicit contributions. A 239
306	306		bona fide nontemporary salaried officer or employee of a charitable 240
307	307		organization shall not be deemed to be a fund-raising counsel. 241
308	308		(7) "Paid solicitor" means a person who for any consideration, other 242
309	309		than any nonmonetary gift of nominal value awarded to a volunteer 243
310	310		solicitor as an incentive or token of appreciation, performs for a 244
311	311		charitable organization any service in connection with which 245
312	312		contributions are solicited by such person or by any person he directly 246
313	313		or indirectly employs, procures or engages to solicit for such 247
314	314		compensation. A bona fide nontemporary salaried officer or employee 248
315	315		of a charitable organization shall not be deemed to be a paid solicitor. 249
316	316		(8) "Commercial coventurer" means a person who for profit is 250
317	317		regularly and primarily engaged in trade or commerce in this state other 251
318	318		than in connection with the raising of funds for charitable organizations 252
319	319		or purposes and who conducts a charitable sales promotion. 253
320	320		(9) "Charitable sales promotion" means an advertising or sales 254
321	321		campaign, conducted by a commercial coventurer, which represents 255
322	322		that the purchase or use of goods or services offered by the commercial 256
323	323		coventurer are to benefit a charitable organization or purpose. 257
324	324		(10) "Department" means the Department of Consumer Protection. 258
325	325		(11) "Commissioner" means the Commissioner of Consumer 259
326	326		Protection. 260
327	327		(12) "Membership" means that which entitles a person to the 261
328	328		privileges, professional standing, honors or other direct benefit of the 262
329	329		organization and the rights to vote, elect officers and hold office in the 263
330	330		organization. 264
331	331		(13) "Parent organization" means that part of a charitable 265
332	332		organization which supervises and exercises control over the 266
333	333		solicitation and expenditure activities of one or more chapters, branches 267
334		-	or affiliates. 268 ~~Substitute~~ Bill No. 5222
	334	+	or affiliates. 268 Raised Bill No. 5222
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341	340		(14) "Gross revenue" means income of any kind from all sources, 269
342	341		without deduction of any costs or expenses, including all amounts 270
343	342		received as the result of any solicitation by a paid solicitor.] 271
344	343		Sec. 3. Section 21a-190b of the general statutes is repealed and the 272
345	344		following is substituted in lieu thereof (Effective January 1, 2023): 273
346	345		(a) Every charitable organization not exempted by section 21a-190d 274
347	346		shall annually register with the department prior to conducting any 275
348	347		solicitation or prior to having any solicitation conducted on [its] such 276
349	348		charitable organization's behalf by others. Application for registration 277
350	349		shall be in a form prescribed by the commissioner and shall include a 278
351	350		nonrefundable application fee of fifty dollars. Such application shall 279
352	351		include: (1) A registration statement, (2) an annual financial report for 280
353	352		such charitable organization for the preceding fiscal year that is 281
354	353		prepared in accordance with the provisions of subsection (a) of section 282
355		-	21a-190c~~, as amended by this act~~, and (3) an audited financial statement 283
356		-	~~as required by~~ subsection (b) of section 21a-190c~~, as amended by this act.~~ 284
357		-	~~An authorized officer of the charitable~~ organization shall certify that the 285
358		-	~~statements therein are true and correct~~ to the best of [their] such officer's 286
359		-	~~knowledge. [A chapter, branch or] An~~ affiliate, branch or chapter in this 287
360		-	~~state of a registered parent~~ organization shall not be required to register, 288
361		-	~~provided the parent~~ organization files a consolidated annual 289
362		-	~~registration for itself and its~~ [chapter, branch or] affiliate, branch or 290
363		-	~~chapter. Each charitable~~ organization shall annually renew [its] such 291
364		-	~~charitable organization's~~ registration not later than eleven months after 292
365		-	~~the end of such charitable~~ organization's fiscal year. 293
	354	+	21a-190c, and (3) an audited financial statement as required by 283
	355	+	subsection (b) of section 21a-190c. An authorized officer of the charitable 284
	356	+	organization shall certify that the statements therein are true and correct 285
	357	+	to the best of [their] such officer's knowledge. [A chapter, branch or] An 286
	358	+	affiliate, branch or chapter in this state of a registered parent 287
	359	+	organization shall not be required to register, provided the parent 288
	360	+	organization files a consolidated annual registration for itself and its 289
	361	+	[chapter, branch or] affiliate, branch or chapter. Each charitable 290
	362	+	organization shall annually renew [its] such charitable organization's 291
	363	+	registration not later than eleven months after the end of such charitable 292
	364	+	organization's fiscal year. 293
366	365		(b) In the event the department determines that the application for 294
367	366		registration does not contain the documents required in subsection (a) 295
368	367		of this section or is not in accordance with the regulations adopted by 296
369	368		the commissioner pursuant to this chapter, the department shall notify 297
370	369		the charitable organization of such noncompliance not later than ten 298
371	370		days after the department's receipt of such application for registration. 299
372	371		Any such charitable organization may request a hearing on its 300
373		-	noncompliant status in accordance with the provisions of chapter 54. 301 ~~Substitute~~ Bill No. 5222
	372	+	noncompliant status in accordance with the provisions of chapter 54. 301 Raised Bill No. 5222
374	373
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379	377
380	378		(c) In addition to the application fee required pursuant to subsection 302
381	379		(a) of this section, a charitable organization shall pay a late fee of twenty-303
382	380		five dollars for each month, or part thereof, that such application for 304
383	381		registration is late. The commissioner may, upon written request and for 305
384	382		good cause shown, waive or reduce any late fee under this section. 306
385	383		(d) In the event that a charitable organization fails to register in 307
386	384		accordance with the provisions of this section, [such] the charitable 308
387	385		organization shall include in [its] such charitable organization's 309
388	386		application for registration an annual financial report for each of the 310
389	387		previous years in which such charitable organization was required to 311
390	388		file an application for registration or an annual financial report. 312
391	389		(e) Any charitable organization registered in accordance with this 313
392	390		section on September 30, 2005, shall be deemed to be registered 314
393	391		pursuant to this section until the last day of the fifth month after the 315
394	392		close of the fiscal year in effect on September 30, 2005. 316
395	393		(f) A charitable organization registered in accordance with this 317
396	394		section shall (1) when engaging in solicitation, or upon request from any 318
397		-	person, disclose the charitable organization's registration number, and 319
398		-	(2) display the charitable organization's registration number in a 320
399		-	conspicuous manner on (A) such charitable organization's Internet web 321
400		-	site, and (B) any (i) printed advertisement, or (ii) advertisement on any 322
401		-	Internet web site. 323
402		-	Sec. 4. Section 21a-71 of the general statutes is repealed and the 324
403		-	following is substituted in lieu thereof (Effective January 1, 2023): 325
404		-	No person shall sell any food, drug or cosmetic, as defined by section 326
405		-	21a-92, at an auction, unless such person has notified the Commissioner 327
406		-	of Consumer Protection, in writing, of such sale; provided this section 328
407		-	shall not apply to the sale of food by any church, parent teacher 329
408		-	association, charitable organization as defined [by subdivision (1) of] in 330
409		-	section 21a-190a, as amended by this act, or any organization of any 331
410		-	political party. Such notice shall be given at least seven days prior to 332 Substitute Bill No. 5222
	395	+	person, disclose the charitable organization's registration number and 319
	396	+	the percentage of funds such charitable organization collected during 320
	397	+	the prior calendar year that directly funded such charitable 321
	398	+	organization's charitable purpose, and (2) display the charitable 322
	399	+	organization's registration number in a conspicuous manner on any 323
	400	+	printed advertisement. 324
	401	+	Sec. 4. Section 21a-71 of the general statutes is repealed and the 325
	402	+	following is substituted in lieu thereof (Effective January 1, 2023): 326
	403	+	No person shall sell any food, drug or cosmetic, as defined by section 327
	404	+	21a-92, at an auction, unless such person has notified the Commissioner 328
	405	+	of Consumer Protection, in writing, of such sale; provided this section 329
	406	+	shall not apply to the sale of food by any church, parent teacher 330
	407	+	association, charitable organization as defined [by subdivision (1) of] in 331
	408	+	section 21a-190a, as amended by this act, or any organization of any 332
	409	+	political party. Such notice shall be given at least seven days prior to 333 Raised Bill No. 5222
411	410
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416	412
417		-	such sale and said commissioner may inspect such food, drug or 333
418		-	cosmetic and prohibit the sale of the same if it is found to be unfit for 334
419		-	human use. This section shall apply to the sale of unclaimed freight. 335
420		-	Sec. 5. Subsection (b) of section 21a-190c of the general statutes is 336
421		-	repealed and the following is substituted in lieu thereof (Effective from 337
422		-	passage): 338
423		-	(b) A charitable organization with gross revenue in [excess of] an 339
424		-	amount that is (1) greater than five hundred thousand dollars but less 340
425		-	than one million dollars in the year covered by the report shall include 341
426		-	with [its] the charitable organization's financial statement an audit 342
427		-	report or review report of a certified public accountant, or (2) at least 343
428		-	one million dollars in the year covered by the report shall include with 344
429		-	the charitable organization's financial statement an audit report of a 345
430		-	certified public accountant. For purposes of this section, gross revenue 346
431		-	shall not include grants or fees from government agencies or the 347
432		-	revenue derived from funds held in trust for the benefit of the charitable 348
433		-	organization. The commissioner may, upon written request and for 349
434		-	good cause shown, waive the audit report or review report requirement 350
435		-	[under] established in this subsection. 351
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	414	+
	415	+	such sale and said commissioner may inspect such food, drug or 334
	416	+	cosmetic and prohibit the sale of the same if it is found to be unfit for 335
	417	+	human use. This section shall apply to the sale of unclaimed freight. 336
436	418		This act shall take effect as follows and shall amend the following
437	419		sections:
438	420
439	421		Section 1 from passage 21a-190f
440	422		Sec. 2 January 1, 2023 21a-190a
441	423		Sec. 3 January 1, 2023 21a-190b
442	424		Sec. 4 January 1, 2023 21a-71
443		-	Sec. 5 from passage 21a-190c(b)
444	425
445		-	Statement of Legislative Commissioners:
446		-	In Section 2(a)(1), "such person" was changed to "oneself", for clarity;
447		-	and, in Section 5(b), "audit, or review, report" was changed to "audit
448		-	report or review report", and "audit or review report" was changed to
449		-	"audit report or review report", for clarity.
450		-	Substitute Bill No. 5222
451		-
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456		-
457		-	GL Joint Favorable Subst.
	426	+	Statement of Purpose:
	427	+	To: (1) Shorten from twenty days prior to commencement of a
	428	+	solicitation campaign to one business day prior to commencement of the
	429	+	campaign the deadline by which a paid solicitor must file with the
	430	+	Department of Consumer Protection the contract between such solicitor
	431	+	and the charitable organization; (2) eliminate provisions requiring (A)
	432	+	that copies of campaign solicitation literature be submitted to the
	433	+	department, (B) the Commissioner of Consumer Protection to publicize
	434	+	charitable solicitation campaigns, and (C) the paid solicitor to disclose,
	435	+	at the point of solicitation, the percentage of gross revenue that the
	436	+	charitable organization will receive as a result of the solicitation
	437	+	campaign; (3) provide that a paid solicitor shall maintain, for each
	438	+	solicitation campaign, records containing the name and address of each
	439	+	contributor, if known to the solicitor, and make records containing the
	440	+	date and amount of each contribution, name and residence of each
	441	+	employee, agent or other person involved in such campaign and all
	442	+	income received, and expenses incurred, in the course of such campaign
	443	+	available to the Department of Consumer Protection for inspection upon
	444	+	request; and (4) require a charitable organization to (A) disclose its
	445	+	registration number and certain financial information when soliciting
	446	+	funds, and (B) display its registration number on any printed
	447	+	advertisement.
	448	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
	449	+	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
	450	+	underlined.]
458	451