Chief Sponsor: Patrice M. Arent

Senate Sponsor: Wayne A. Harper


8     General Description:
9          This bill amends provisions related to charitable solicitation.
10     Highlighted Provisions:
11          This bill:
12          ▸     exempts a person from registration with the Division of Consumer Protection for an
13     application the person submits for a grant offered by a state agency;
14          ▸     amends the expiration date for:
15               •     a professional fund raiser's permit; and
16               •     a professional fund raising counsel's or consultant's permit; and
17          ▸     modifies an exemption from registration with the Division of Consumer Protection
18     for a solicitation by an organization authorized by a school and affiliated with a
19     central organization.
20     Money Appropriated in this Bill:
21          None
22     Other Special Clauses:
23          None
24     Utah Code Sections Affected:
25     AMENDS:
26          13-22-8, as last amended by Laws of Utah 2015, Chapter 120
27          13-22-11, as last amended by Laws of Utah 1996, Chapter 187


29     Be it enacted by the Legislature of the state of Utah:
30          Section 1. Section 13-22-8 is amended to read:
31          13-22-8. Exemptions.
32          (1) Section 13-22-5 does not apply to:
33          (a) a solicitation that an organization conducts among the organization's own
34     established and bona fide membership exclusively through the voluntarily donated efforts of
35     other members or officers of the organization;
36          (b) a bona fide religious, ecclesiastical, or denominational organization if:
37          (i) the solicitation is made for a church, missionary, religious, or humanitarian purpose;
38     and
39          (ii) the organization is either:
40          (A) a lawfully organized corporation, institution, society, church, or established
41     physical place of worship, at which nonprofit religious services and activities are regularly
42     conducted and carried on;
43          (B) a bona fide religious group:
44          (I) that does not maintain specific places of worship;
45          (II) that is not subject to federal income tax; and
46          (III) not required to file an IRS Form 990 under any circumstance; or
47          (C) a separate group or corporation that is an integral part of an institution that is an
48     income tax exempt organization under 26 U.S.C. Sec. 501(c)(3) and is not primarily supported
49     by funds solicited outside the group's or corporation's own membership or congregation;
50          (c) a solicitation by a broadcast media owned or operated by an educational institution
51     or governmental entity, or any entity organized solely for the support of that broadcast media;
52          (d) except as provided in Subsection 13-22-21(1), a solicitation for the relief of any
53     person sustaining a life-threatening illness or injury specified by name at the time of
54     solicitation if the entire amount collected without any deduction is turned over to the named
55     person;
56          (e) a political party authorized to transact the political party's affairs within this state
57     and any candidate and campaign worker of the political party if the content and manner of any
58     solicitation make clear that the solicitation is for the benefit of the political party or candidate;

59          (f) a political action committee or group soliciting funds relating to issues or candidates
60     on the ballot if the committee or group is required to file financial information with a federal or
61     state election commission;
62          [(g) any school accredited by the state, any accredited institution of higher learning, or
63     club or parent, teacher, or student organization within and authorized by the school in support
64     of the operations or extracurricular activities of the school;]
65          (g) (i) a public school;
66          (ii) a public institution of higher learning;
67          (iii) a school accredited by an accreditation body recognized within the state or the
68     United States;
69          (iv) an institution of higher learning accredited by an accreditation body recognized
70     within the state or the United States;
71          (v) an organization within, and authorized by, an entity described in Subsections
72     (1)(g)(i) through (iv); or
73          (vi) a parent organization, teacher organization, or student organization authorized by
74     an entity described in Subsection (1)(g)(i) or (iii) if:
75          (A) the parent organization, teacher organization, or student organization is a branch
76     of, or is affiliated with a central organization;
77          (B) the parent organization, teacher organization, or student organization is subject to
78     the central organization's general control and supervision;
79          (C) the central organization holds a United States Internal Revenue Service group tax
80     exemption that covers the parent organization, teacher organization, or student organization;
81     and
82          (D) the central organization is registered with the division under this chapter;
83          (h) a public or higher education foundation established under Title 53A, State System
84     of Public Education, or Title 53B, State System of Higher Education;
85          (i) a television station, radio station, or newspaper of general circulation that donates
86     air time or print space for no consideration as part of a cooperative solicitation effort on behalf
87     of a charitable organization, whether or not that organization is required to register under this
88     chapter;
89          (j) a volunteer fire department, rescue squad, or local civil defense organization whose

90     financial oversight is under the control of a local governmental entity;
91          (k) any governmental unit of any state or the United States; [and]
92          (l) any corporation:
93          (i) established by an act of the United States Congress; and
94          (ii) that is required by federal law to submit an annual report:
95          (A) on the activities of the corporation, including an itemized report of all receipts and
96     expenditures of the corporation; and
97          (B) to the United States Secretary of Defense to be:
98          (I) audited; and
99          (II) submitted to the United States Congress; and
100          (m) a solicitation by an applicant for a grant offered by a state agency if:
101          (i) the terms of the grant provide that the state agency monitors a grant recipient to
102     ensure that grant funds are used in accordance with the grant's purpose; and
103          (ii) the sum of the amount available to the applicant under grants offered by a state
104     agency that the applicant applies for in a calendar year is less than or equal to $1,500.
105          (2) Any organization claiming an exemption under this section bears the burden of
106     proving its eligibility for, or the applicability of, the exemption claimed.
107          (3) Each organization exempt from registration pursuant to this section that makes a
108     material change in the organization's legal status, officers, address, or similar changes shall file
109     a report informing the division of the organization's current legal status, business address,
110     business phone, officers, and primary contact person within 30 days of the change.
111          (4) The division may by rule:
112          (a) require an organization that is exempt from registration under this section to:
113          (i) file a notice of claim of exemption; and
114          (ii) file a renewal of a notice of claim of exemption;
115          (b) prescribe the contents of a notice of claim of exemption and a renewal of a notice
116     of claim of exemption; and
117          (c) require a filing fee for a notice of claim of exemption and a renewal of a notice of
118     claim of exemption as determined under Section 63J-1-504.
119          Section 2. Section 13-22-11 is amended to read:
120          13-22-11. Expiration of registration and permits.

121          (1) Each charitable organization registration issued under this chapter expires annually
122     on the earlier of January 1, April 1, July 1, or October 1 following the completion of 12 months
123     after the date of initial issuance.
124          (2) Each professional fund raiser's permit issued under this chapter expires [the earlier
125     of: (a)] annually on the date of issuance[; or (b) when the professional fund raiser ceases
126     affiliation with the charitable organization named in the application for permit].
127          (3) Each professional fund raising counsel's or consultant's permit issued under this
128     chapter expires [the earlier of: (a)] annually on the date of issuance[; or (b) when the
129     professional fundraising counsel or consultant ceases affiliation with the charitable
130     organization named in the application for permit].
131          (4) A registration or permit may be renewed only by complying with the requirements
132     for obtaining the original registration or permit.

Legislative Review Note
Office of Legislative Research and General Counsel