Wisconsin 2023-2024 Regular Session

Wisconsin Assembly Bill AB912 Compare Versions

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1		-	Date of enactment: March 21, 2024
2		-	2023 Assembly Bill 912 Date of publication*: March 22, 2024
3		-	2023 WISCONSIN ACT 151
4		-	AN ACT to amend 202.12 (1) (b) 2g., 202.12 (1) (b) 2r., 202.12 (3) (b), 202.12 (3) (bm), 202.12 (3) (d) 1. and 202.12
5		-	(3) (d) 2. of the statutes; relating to: financial statements of registered charitable organizations.
6		-	The people of the state of Wisconsin, represented in
7		-	senate and assembly, do enact as follows:
8		-	SECTION 1. 202.12 (1) (b) 2g. of the statutes is
9		-	amended to read:
10		-	202.12 (1) (b) 2g. A reviewed financial statement for
11		-	the most recently completed fiscal year of the charitable
12		-	organization, if the charitable organization received con-
13		-	tributions in excess of $300,000 $500,000, subject to
14		-	adjustment under sub. (8), but not more than $500,000
15		-	$1,000,000, subject to adjustment under sub. (8), during
16		-	its most recently completed fiscal year. The statement
17		-	shall be prepared in accordance with generally accepted
18		-	accounting principles and include a review of the finan-
19		-	cial statement by an independent certified public
20		-	accountant.
21		-	SECTION 2. 202.12 (1) (b) 2r. of the statutes is
22		-	amended to read:
23		-	202.12 (1) (b) 2r. An audited financial statement for
24		-	the most recently completed fiscal year of the charitable
25		-	organization, if the charitable organization received con-
26		-	tributions in excess of $500,000 $1,000,000, subject to
27		-	adjustment under sub. (8), during its most recently com-
28		-	pleted fiscal year. The statement shall be prepared in
29		-	accordance with generally accepted accounting princi-
30		-	ples and include the opinion of an independent certified
31		-	public accountant on the financial statement.
32		-	SECTION 3. 202.12 (3) (b) of the statutes is amended
33		-	to read:
34		-	202.12 (3) (b) In addition to the annual report
35		-	required under par. (a), if a charitable organization
36		-	received contributions in excess of $500,000 $1,000,000,
37		-	subject to adjustment under sub. (8), during its most
38		-	recently completed fiscal year, the charitable organiza-
39		-	tion shall file with the department an audited financial
40		-	statement for the charitable organization’s most recently
41		-	completed fiscal year, prepared in accordance with gen-
42		-	erally accepted accounting principles, and the opinion of
43		-	an independent certified public accountant on the finan-
44		-	cial statement. The audited financial statement shall be
45		-	filed within 12 months after the end of that fiscal year.
46		-	SECTION 4. 202.12 (3) (bm) of the statutes is
47		-	amended to read:
48		-	202.12 (3) (bm) In addition to the annual report
49		-	required under par. (a), if a charitable organization
50		-	received contributions in excess of $300,000 $500,000,
51		-	subject to adjustment under sub. (8), but not more than
52		-	$500,000 $1,000,000, subject to adjustment under sub.
53		-	(8), during its most recently completed fiscal year, the
54		-	charitable organization shall file with the department a
55		-	financial statement for the charitable organization’s most
56		-	recently completed fiscal year, prepared in accordance
57		-	with generally accepted accounting principles, and a
58		-	* Section 991.11, WISCONSIN STATUTES: Effective date of acts. “Every act and every portion of an act enacted by the legislature over the governor’s
59		-	partial veto which does not expressly prescribe the time when it takes effect shall take effect on the day after its date of publication.” − 2 −2023 Wisconsin Act 151 2023 Assembly Bill 912
60		-	review of the financial statement by an independent certi-
61		-	fied public accountant. The financial statement shall be
62		-	filed within 12 months after the end of that fiscal year.
63		-	SECTION 5. 202.12 (3) (d) 1. of the statutes is
64		-	amended to read:
65		-	202.12 (3) (d) 1. The charitable organization’s contri-
66		-	butions were, during each of the past 3 fiscal years, less
67		-	than $100,000 $300,000, subject to adjustment under
68		-	sub. (8).
69		-	SECTION 6. 202.12 (3) (d) 2. of the statutes is
70		-	amended to read:
71		-	202.12 (3) (d) 2. During the fiscal year for which the
72		-	waiver is being requested, the charitable organization
73		-	received one or more contributions from one contributor
74		-	that exceeded $200,000, subject to adjustment under sub.
75		-	(8), if the charitable organization is applying for a waiver
76		-	of the requirement set forth in par. (bm), or exceeded
77		-	$400,000 $700,000, subject to adjustment under sub. (8),
78		-	if the charitable organization is applying for a waiver of
79		-	the requirement set forth in par. (b).
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	3	+	2023 - 2024 LEGISLATURE
	4	+	2023 ASSEMBLY BILL 912
	5	+	January 4, 2024 - Introduced by Representatives WITTKE, BROOKS, ALLEN, MURPHY,
	6	+	O'CONNOR, PENTERMAN, RETTINGER, SINICKI, WICHGERS and GOEBEN,
	7	+	cosponsored by Senators M ARKLEIN, BRADLEY and ROYS. Referred to
	8	+	Committee on Financial Institutions.
	9	+	*AUTHORS SUBJECT TO CHANGE*
	10	+	AN ACT to amend 202.12 (1) (b) 2g., 202.12 (1) (b) 2r., 202.12 (3) (b), 202.12 (3)
	11	+	(bm), 202.12 (3) (d) 1. and 202.12 (3) (d) 2. of the statutes; relating to: financial
	12	+	statements of registered charitable organizations.
	13	+	Analysis by the Legislative Reference Bureau
	14	+	This bill makes changes relating to registration and reporting requirements
	15	+	applicable to charitable organizations.
	16	+	Under current law, a charitable organization that solicits, or has solicited on its
	17	+	behalf, contributions in this state must register with the Department of Financial
	18	+	Institutions, unless an exception applies. With its initial application for registration
	19	+	and with each annual report, a charitable organization must provide financial
	20	+	information for the previous fiscal year if the charitable organization meets a certain
	21	+	contribution threshold (except that all dollar amounts below are subject to DFI's
	22	+	adjustment for inflation). Financial information must be provided as follows:
	23	+	1. If the charitable organization received contributions of more than $300,000
	24	+	but not more than $500,000 in the previous fiscal year, a reviewed financial
	25	+	statement, prepared in accordance with generally accepted accounting principles
	26	+	(GAAP) and reviewed by an independent certified public accountant (CPA).
	27	+	2. If the charitable organization received contributions of more than $500,000
	28	+	in the previous fiscal year, an audited financial statement, prepared in accordance
	29	+	with GAAP and including the opinion of an independent CPA.
	30	+	This bill increases these threshold amounts. Under the bill, a reviewed
	31	+	financial statement is required if the charitable organization received contributions
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	36	+	ASSEMBLY BILL 912
	37	+	in the previous fiscal year of more than $500,000 but not more than $1,000,000. An
	38	+	audited financial statement is required if the contributions exceeded $1,000,000.
	39	+	Current law also allows DFI, upon application, to grant a charitable
	40	+	organization a waiver of the requirement to file financial information with its annual
	41	+	report. A waiver may be granted if the charitable organization received
	42	+	contributions in each of the past three fiscal years of less than $100,000, but during
	43	+	the fiscal year for which the waiver is requested the charitable organization received
	44	+	contributions from one contributor exceeding $200,000 or $400,000, respectively.
	45	+	The bill also increases the threshold amounts applicable for DFI's waiver.
	46	+	Under the bill, a waiver may be granted if the charitable organization received
	47	+	contributions in each of the past three fiscal years of less than $300,000, but during
	48	+	the fiscal year for which the waiver is requested the charitable organization received
	49	+	contributions from one contributor exceeding $200,000 or $700,000, respectively.
	50	+	The people of the state of Wisconsin, represented in senate and assembly, do
	51	+	enact as follows:
	52	+	SECTION 1. 202.12 (1) (b) 2g. of the statutes is amended to read:
	53	+	202.12 (1) (b) 2g. A reviewed financial statement for the most recently
	54	+	completed fiscal year of the charitable organization, if the charitable organization
	55	+	received contributions in excess of $300,000 $500,000, subject to adjustment under
	56	+	sub. (8), but not more than $500,000 $1,000,000, subject to adjustment under sub.
	57	+	(8), during its most recently completed fiscal year. The statement shall be prepared
	58	+	in accordance with generally accepted accounting principles and include a review of
	59	+	the financial statement by an independent certified public accountant.
	60	+	SECTION 2. 202.12 (1) (b) 2r. of the statutes is amended to read:
	61	+	202.12 (1) (b) 2r. An audited financial statement for the most recently
	62	+	completed fiscal year of the charitable organization, if the charitable organization
	63	+	received contributions in excess of $500,000 $1,000,000, subject to adjustment under
	64	+	sub. (8), during its most recently completed fiscal year. The statement shall be
	65	+	prepared in accordance with generally accepted accounting principles and include
	66	+	the opinion of an independent certified public accountant on the financial statement.
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	84	+	SECTION 3
	85	+	ASSEMBLY BILL 912
	86	+	SECTION 3. 202.12 (3) (b) of the statutes is amended to read:
	87	+	202.12 (3) (b) In addition to the annual report required under par. (a), if a
	88	+	charitable organization received contributions in excess of $500,000 $1,000,000,
	89	+	subject to adjustment under sub. (8), during its most recently completed fiscal year,
	90	+	the charitable organization shall file with the department an audited financial
	91	+	statement for the charitable organization's most recently completed fiscal year,
	92	+	prepared in accordance with generally accepted accounting principles, and the
	93	+	opinion of an independent certified public accountant on the financial statement.
	94	+	The audited financial statement shall be filed within 12 months after the end of that
	95	+	fiscal year.
	96	+	SECTION 4. 202.12 (3) (bm) of the statutes is amended to read:
	97	+	202.12 (3) (bm) In addition to the annual report required under par. (a), if a
	98	+	charitable organization received contributions in excess of $300,000 $500,000,
	99	+	subject to adjustment under sub. (8), but not more than $500,000 $1,000,000, subject
	100	+	to adjustment under sub. (8), during its most recently completed fiscal year, the
	101	+	charitable organization shall file with the department a financial statement for the
	102	+	charitable organization's most recently completed fiscal year, prepared in
	103	+	accordance with generally accepted accounting principles, and a review of the
	104	+	financial statement by an independent certified public accountant. The financial
	105	+	statement shall be filed within 12 months after the end of that fiscal year.
	106	+	SECTION 5. 202.12 (3) (d) 1. of the statutes is amended to read:
	107	+	202.12 (3) (d) 1. The charitable organization's contributions were, during each
	108	+	of the past 3 fiscal years, less than $100,000 $300,000, subject to adjustment under
	109	+	sub. (8).
	110	+	SECTION 6. 202.12 (3) (d) 2. of the statutes is amended to read:
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	137	+	SECTION 6 ASSEMBLY BILL 912
	138	+	202.12 (3) (d) 2. During the fiscal year for which the waiver is being requested,
	139	+	the charitable organization received one or more contributions from one contributor
	140	+	that exceeded $200,000, subject to adjustment under sub. (8), if the charitable
	141	+	organization is applying for a waiver of the requirement set forth in par. (bm), or
	142	+	exceeded $400,000 $700,000, subject to adjustment under sub. (8), if the charitable
	143	+	organization is applying for a waiver of the requirement set forth in par. (b).
80	144		SECTION 7.0Initial applicability.
81		-	(1) The treatment of s. 202.12 (1) (b) 2g. and 2r. first
82		-	applies to applications for registration received after the
83		-	effective date of this subsection.
84		-	(2) The treatment of s. 202.12 (3) (b), (bm), and (d)
85		-	1. and 2. first applies with respect to a fiscal year that
86		-	begins after the effective date of this subsection.
	145	+	(1) The treatment of s. 202.12 (1) (b) 2g. and 2r. first applies to applications for
	146	+	registration received after the effective date of this subsection.
	147	+	(2) The treatment of s. 202.12 (3) (b), (bm), and (d) 1. and 2. first applies with
	148	+	respect to a fiscal year that begins after the effective date of this subsection.
	149	+	(END)
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