1     
CHARITABLE SOLICITATIONS ACT AMENDMENTS

2     
2024 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: A. Cory Maloy

5     
Senate Sponsor: Curtis S. Bramble

6     

7     LONG TITLE
8     Committee Note:
9          The Business and Labor Interim Committee recommended this bill.
10               Legislative Vote:     12 voting for     0 voting against     9 absent
11     General Description:
12          This bill amends provisions related to charitable solicitations.
13     Highlighted Provisions:
14          This bill:
15          ▸     consolidates requirements for information a charitable organization submits to the
16     Division of Consumer Protection and the Division of Corporations;
17          ▸     prohibits deceptive acts and diversion of funds related to charitable solicitations;
18          ▸     adds regulations and filing requirements for professional fund raisers and
19     professional fund raising campaigns;
20          ▸     defines terms; and
21          ▸     makes technical and conforming changes.
22     Money Appropriated in this Bill:
23          None
24     Other Special Clauses:
25          None
26     Utah Code Sections Affected:
27     AMENDS:
28          13-22-3, as last amended by Laws of Utah 2008, Chapter 382
29          13-22-6, as last amended by Laws of Utah 2020, Chapter 419
30          13-22-9, as last amended by Laws of Utah 2018, Chapter 267
31          13-22-15, as last amended by Laws of Utah 2015, Chapter 120
32          13-25a-102, as last amended by Laws of Utah 2022, Chapter 324
33          13-25a-111, as last amended by Laws of Utah 2010, Chapter 379
34          16-6a-203, as last amended by Laws of Utah 2015, Chapter 240
35          16-6a-1503, as last amended by Laws of Utah 2008, Chapters 249, 364
36     ENACTS:
37          13-22-24, Utah Code Annotated 1953
38          13-22-25, Utah Code Annotated 1953
39          13-22-26, Utah Code Annotated 1953
40     

41     Be it enacted by the Legislature of the state of Utah:
42          Section 1. Section 13-22-3 is amended to read:
43          13-22-3. Investigative and enforcement powers -- Education.
44          (1) The division shall administer and enforce the provisions of this chapter in
45     accordance with Chapter 2, Division of Consumer Protection.
46          (2) The attorney general shall, upon request, give legal advice to, and act as counsel
47     for, the division in the exercise of the division's responsibilities under this chapter.
48          (3) The division may make any audit or investigation it considers necessary to
49     determine whether any person is violating, has violated, or is about to violate any provision of
50     this chapter or any rule made or order issued under this chapter. As part of the investigation,
51     the division may:
52          (a) require a person to file a statement in writing;
53          (b) administer oaths, subpoena witnesses and compel their attendance, take evidence,
54     and examine under oath any person in connection with an investigation; and
55          (c) require the production of any books, papers, documents, merchandise, or other
56     material relevant to the investigation.
57          [(2)] (4) [Whenever it appears to the director that substantial evidence exists that any
58     person has engaged in, is engaging in, or is about to engage in any act or practice prohibited in
59     this chapter or constituting a violation of this chapter or any rule made or order issued under
60     this chapter, the director may do any of the following in addition to other specific duties under
61     this chapter:] In addition to the division's enforcement powers under Chapter 2, Division of
62     Consumer Protection:
63          (a) [in accordance with Title 63G, Chapter 4, Administrative Procedures Act, the
64     director may issue an order to cease and desist from engaging in the act or practice or from
65     doing any act in furtherance of the activity;] the director may impose an administrative fine of
66     up to $2,500 for each violation of this chapter; or
67          (b) the [director] division may bring an action in [the appropriate district court of this
68     state] a court of competent jurisdiction to enjoin the acts or practices constituting the violation
69     or to enforce compliance with this chapter or any rule made or order issued under this chapter.
70          [(3) Whenever it appears to the director by a preponderance of the evidence that a
71     person has engaged in or is engaging in any act or practice prohibited in this chapter or
72     constituting a violation of this chapter or any rule made or order issued under this chapter, the
73     director may assess an administrative fine of up to $500 per violation up to $10,000 for any
74     series of violations arising out of the same operative facts.]
75          [(4)] (5) Upon a proper showing, the court hearing an action brought under Subsection
76     [(2)(b)] (4)(b) may:
77          (a) issue an injunction;
78          (b) enter a declaratory judgment;
79          (c) appoint a receiver for the defendant or the defendant's assets;
80          (d) order disgorgement of any money received in violation of this chapter;
81          (e) order rescission of agreements violating this chapter;
82          (f) impose a fine of [not more than $2,000] up to $2,500 for each violation of this
83     chapter; [and] or
84          (g) impose a civil penalty, or any other relief the court considers just.
85          (6) If a court of competent jurisdiction grants judgment or injunctive relief to the
86     division, the court shall award the division:
87          (a) reasonable attorney fees;
88          (b) court costs; and
89          (c) investigative fees.
90          [(5)] (7) (a) In assessing the amount of a fine or penalty under Subsection [(3)] (4)(a),
91     [(4)(f)] (5)(f), or [(4)(g)] (5)(g), the director or court imposing the fine or penalty shall consider
92     the gravity of the violation [and the intent of the violator].
93          (b) If it does not appear by a preponderance of the evidence that the violator acted in
94     bad faith [or with intent to harm the public], the director or court shall excuse payment of the
95     fine or penalty.
96          (8) (a) A person who violates an administrative or court order issued for a violation of
97     this chapter is subject to a civil penalty of no more than $5,000 for each violation.
98          (b) A civil penalty authorized under this section may be imposed in any civil action
99     brought by the attorney general on behalf of the division.
100          [(6)] (9) The division may provide or contract to provide public education and
101     voluntary education for applicants and registrants under this chapter. The education may be in
102     the form of publications, advertisements, seminars, courses, or other appropriate means. The
103     scope of the education may include:
104          (a) the requirements, prohibitions, and regulated practices under this chapter;
105          (b) suggestions for effective financial and organizational practices for charitable
106     organizations;
107          (c) charitable giving and solicitation;
108          (d) potential problems with solicitations and fraudulent or deceptive practices; and
109          (e) any other matter relevant to the subject of this chapter.
110          Section 2. Section 13-22-6 is amended to read:
111          13-22-6. Application for registration.
112          (1) An applicant for registration or renewal of registration as a charitable organization
113     shall:
114          (a) pay an application fee as determined under Section 63J-1-504; and
115          (b) submit an application on a form approved by the division which shall include:
116          [(i) the organization's name, address, telephone number, facsimile number, if any, and
117     the names and addresses of any organizations or persons controlled by, controlling, or affiliated
118     with the applicant;]
119          [(ii) the specific legal nature of the organization, that is, whether the organization is an
120     individual, joint venture, partnership, limited liability company, corporation, association, or
121     other entity;]
122          [(iii) the names and residence addresses of the officers and directors of the
123     organization;]
124          [(iv) the name and address of the registered agent for service of process and a consent
125     to service of process;]
126          [(v)] (i) the purpose of the solicitation and use of the contributions to be solicited, if
127     different from the purposes for which the nonprofit corporation is organized as required in the
128     articles of incorporation under Section 16-6a-202;
129          [(vi) the method by which the solicitation will be conducted and the projected length of
130     time the solicitation is to be conducted;]
131          [(vii) the anticipated expenses of the solicitation, including all commissions, costs of
132     collection, salaries, and any other items;]
133          [(viii) a statement of what percentage of the contributions collected as a result of the
134     solicitation are projected to remain available for application to the charitable purposes declared
135     in the application, including a satisfactory statement of the factual basis for the projected
136     percentage;]
137          [(ix) a statement of total contributions collected or received by the organization within
138     the calendar year immediately preceding the date of the application, including a description of
139     the expenditures made from or the use made of the contributions;]
140          [(x) a copy of any written agreements with any professional fund raiser involved with
141     the solicitation;]
142          [(xi) disclosure of any injunction, judgment, or administrative order or conviction of
143     any crime involving moral turpitude with respect to any officer, director, manager, operator, or
144     principal of the organization;]
145          [(xii) a copy of all agreements to which the applicant is, or proposes to be, a party
146     regarding the use of proceeds for the solicitation or fundraising;]
147          [(xiii) a statement of whether the charitable organization, or the charitable
148     organization's parent foundation, will be using the services of a professional fund raiser or of a
149     professional fund raising counsel or consultant;]
150          [(xiv) if either the charitable organization or the charitable organization's parent
151     foundation will be using the services of a professional fund raiser or a professional fund raising
152     counsel or consultant:]
153          [(A) a copy of all agreements related to the services; and]
154          [(B) an acknowledgment that fund raising in the state will not commence until both the
155     charitable organization, its parent foundation, if any, and the professional fund raiser or
156     professional fund raising counsel or consultant are registered and in compliance with this
157     chapter;]
158          [(xv)] (ii) any documents required under Section 13-22-15; and
159          [(xvi)] (iii) any additional information the division may require by rule.
160          (2) If any information contained in the application for registration becomes incorrect or
161     incomplete, the applicant or registrant shall, within 30 days after the information becomes
162     incorrect or incomplete, correct the application or file the complete information required by the
163     division.
164          (3) In addition to the registration fee, an organization failing to file a registration
165     application or renewal by the due date or filing an incomplete registration application or
166     renewal shall pay an additional fee of $25 for each month or part of a month after the date on
167     which the registration application or renewal were due to be filed.
168          Section 3. Section 13-22-9 is amended to read:
169          13-22-9. Professional fund raiser's or fund raising counsel's or consultant's
170     permit.
171          (1) A person applying for or renewing a permit as a professional fund raiser or a
172     professional fund raising counsel or consultant shall:
173          (a) pay an application fee as determined under Section 63J-1-504; and
174          (b) submit a written application, verified under oath, on a form approved by the
175     division that includes:
176          (i) the applicant's name, address, telephone number, facsimile number, if any;
177          (ii) the name and address of any organization or person controlled by, controlling, or
178     affiliated with the applicant;
179          (iii) the applicant's business, occupation, or employment for the three-year period
180     immediately preceding the date of the application;
181          (iv) whether it is an individual, joint venture, partnership, limited liability company,
182     corporation, association, or other entity;
183          (v) the names and residence addresses of any officer or director of the applicant;
184          (vi) the name and address of the registered agent for service of process and a consent to
185     service of process;
186          (vii) if a professional fund raiser:
187          (A) the purpose of the solicitation and use of the contributions to be solicited;
188          (B) the method by which the solicitation will be conducted and the projected length of
189     time it is to be conducted;
190          (C) the anticipated expenses of the solicitation, including all commissions, costs of
191     collection, salaries, and any other items;
192          (D) a statement of what percentage of the contributions collected as a result of the
193     solicitation are projected to remain available to the charitable organization declared in the
194     application, including a satisfactory statement of the factual basis for the projected percentage
195     and projected anticipated revenues provided to the charitable organization, and if a flat fee is
196     charged, documentation to support the reasonableness of the flat fee; and
197          (E) a statement of total contributions collected or received by the professional fund
198     raiser within the calendar year immediately preceding the date of the application, including a
199     description of the expenditures made from or the use made of the contributions;
200          (viii) if a professional fund raising counsel or consultant:
201          (A) the purpose of the plan, management, advice, counsel or preparation of materials
202     for, or with respect to, the solicitation and use of the contributions solicited;
203          (B) the method by which the plan, management, advice, counsel, or preparation of
204     materials for, or with respect to, the solicitation will be organized or coordinated and the
205     projected length of time of the solicitation;
206          (C) the anticipated expenses of the plan, management, advice, counsel, or preparation
207     of materials for, or with respect to, the solicitation, including all commissions, costs of
208     collection, salaries, and any other items;
209          (D) a statement of total fees to be earned or received from the charitable organization
210     declared in the application, and what percentage of the contributions collected as a result of the
211     plan, management, advice, counsel, or preparation of materials for, or with respect to, the
212     solicitation are projected after deducting the total fees to be earned or received remain available
213     to the charitable organization declared in the application, including a satisfactory statement of
214     the factual basis for the projected percentage and projected anticipated revenues provided to the
215     charitable organization, and if a flat fee is charged, documentation to support the
216     reasonableness of such flat fee; and
217          (E) a statement of total net fees earned or received within the calendar year
218     immediately preceding the date of the application, including a description of the expenditures
219     made from or the use of the net earned or received fees in the planning, management, advising,
220     counseling, or preparation of materials for, or with respect to, the solicitation and use of the
221     contributions solicited for the charitable organization;
222          (ix) disclosure of any injunction, judgment, or administrative order against the
223     applicant or the applicant's conviction of any crime involving [moral turpitude] charitable
224     solicitations or a felony involving fraud, dishonesty, false statements, forgery, or theft;
225          (x) a copy of any written agreements with any charitable organization;
226          (xi) the disclosure of any injunction, judgment, or administrative order or conviction of
227     any crime involving [moral turpitude] charitable solicitations or a felony involving fraud,
228     dishonesty, false statements, forgery, or theft with respect to any officer, director, manager,
229     operator, or principal of the applicant;
230          (xii) a copy of all agreements to which the applicant is, or proposes to be, a party
231     regarding the use of proceeds;
232          (xiii) an acknowledgment that fund raising in the state will not commence until both
233     the professional fund raiser or professional fund raising counsel or consultant and the charity,
234     and its parent foundation, if any, are registered and in compliance with this chapter; [and]
235          (xiv) evidence that the applicant has obtained and maintained a performance bond
236     issued by a surety authorized to transact surety business in this state:
237          (A) in the amount of $25,000; and
238          (B) payable to the division for the benefit of any consumer who incurs damages as a
239     result of the applicant's violation of this chapter; and
240          [(xiv)] (xv) any additional information the division may require by rule.
241          (2) If any information contained in the application for a permit becomes incorrect or
242     incomplete, the applicant or registrant shall, within 30 days after the information becomes
243     incorrect or incomplete, correct the application or file the complete information required by the
244     division.
245          (3) In addition to the permit fee, an applicant failing to file a permit application or
246     renewal by the due date or filing an incomplete permit application or renewal shall pay an
247     additional fee of $25 for each month or part of a month after the date on which the permit
248     application or renewal were due to be filed.
249          Section 4. Section 13-22-15 is amended to read:
250          13-22-15. Financial reports required.
251          (1) (a) Except as provided in Subsection (1)(c), as part of a charitable organization's
252     application for registration or renewal of registration described in Section 13-22-6, each
253     charitable organization shall file:
254          (i) an annual financial report on a form prescribed by the division;
255          (ii) an IRS Form 990, 990EZ, 990N, or 990PF; or
256          (iii) both the documents described in Subsections (1)(a)(i) and (ii).
257          (b) The division shall instruct each applicant for registration or renewal of registration
258     as a charitable organization on which documents to file under Subsection (1)(a).
259          (c) If a document required under Subsections (1)(a) and (b) is not available during the
260     charitable organization's first year of registration, upon request from the division, the charitable
261     organization shall provide a quarterly financial report to the division within 30 days after the
262     day on which the division requests the quarterly financial report.
263          (2) Each annual or quarterly financial report shall disclose:
264          (a) the gross amount of contributions received;
265          [(b) the amount of contributions disbursed or to be disbursed to each charitable
266     organization or charitable purpose represented;]
267          [(c)] (b) aggregate amounts paid to any professional fund raiser;
268          [(d)] (c) amounts spent for overhead, expenses, commissions, and similar purposes;
269     and
270          [(e)] (d) unless disclosed in another part of the charitable organization's application for
271     registration or renewal of registration, the name and address of any professional fund raiser
272     used by the charitable organization.
273          (3) Each report required under this section shall be signed under oath by an officer or
274     principal of the charitable organization.
275          (4) (a) If a charitable organization fails to timely file a quarterly financial report in
276     accordance with Subsection (1)(c), the charitable organization's registration is immediately and
277     automatically suspended pending a final order of the division under Section 13-22-12.
278          (b) The division may reinstate the charitable organization's registration after the
279     division receives:
280          (i) the quarterly financial report requested in accordance with Subsection (1)(c); and
281          (ii) a penalty of $25 for each full or partial calendar month after the day on which the
282     quarterly report was due.
283          Section 5. Section 13-22-24 is enacted to read:
284          13-22-24. Deceptive acts or practices prohibited -- Prohibited telephone
285     solicitations.
286          (1) A deceptive act or practice by a person in connection with a charitable solicitation
287     is a violation of this chapter.
288          (2) Without limiting the scope of Subsection (1), a person commits a deceptive act or
289     practice if the person knowingly or intentionally:
290          (a) indicates that the person is affiliated with a charitable organization, if it is not;
291          (b) indicates that the person is an employee, officer, or representative of a public safety
292     agency, if it is not;
293          (c) indicates that the person has sponsorship or approval of a given charitable
294     organization, if it has not;
295          (d) indicates that a given portion of a solicitation is provided to a charitable
296     organization, if it is not;
297          (e) indicates that providing a solicitation has an additional benefit, if it does not;
298          (f) indicates that providing a solicitation is tax deductible, if it is not;
299          (g) indicates that providing a solicitation is connected to a tax credit, if it is not;
300          (h) indicates that the offeror of a solicitation has previously given a solicitation to the
301     charitable organization, if it has not; or
302          (i) with the intent to deceive, uses a name that is substantially similar to another
303     charitable organization.
304          (3) A deceptive act or practice by a professional fund raiser or professional fund raising
305     counsel or consultant is a violation of this chapter.
306          (4) Without limiting the scope of Subsection (3), a professional fund raiser or
307     professional fund raising counsel or consultant commits a deceptive act or practice if the
308     professional fund raiser or professional fund raising counsel or consultant knowingly or
309     intentionally:
310          (a) indicates the name of the professional fund raiser or professional fund raising
311     counsel or consultant, if it is not;
312          (b) indicates that the professional fund raiser or professional fund raising counsel or
313     consultant is conducting a solicitation on behalf of a given charitable organization, if it is not;
314     or
315          (c) indicates that a given portion of a solicitation is provided to a charitable
316     organization, if it is not.
317          (5) (a) A charitable organization shall maintain a list of persons in the state who
318     request not to be contacted by telephone in connection with a charitable solicitation.
319          (b) A person in connection with a charitable solicitation, a professional fund raiser, or a
320     professional fund raising counsel or consultant may not make or cause to be made an
321     unsolicited phone call to a person:
322          (i) located in the state; and
323          (ii) who requests to be placed on the charitable organization's list described in
324     Subsection (5)(a).
325          (c) (i) It is a violation of this chapter to make an unsolicited telephone call in violation
326     of this Subsection (5).
327          (ii) Each unsolicited telephone call in violation of this Subsection (5) is a separate
328     violation of this chapter.
329          Section 6. Section 13-22-25 is enacted to read:
330          13-22-25. Diversion of funds prohibited.
331          (1) Diverting funds from a charitable purpose is a violation of this chapter.
332          (2) Without limiting the scope of Subsection (1), a person or professional fund raiser or
333     fund raising counsel or consultant diverts funds from a charitable purpose if the person:
334          (a) appropriates solicited funds to a person other than the person to which the funds
335     were solicited;
336          (b) appropriates solicited funds for a purpose other than the purpose for which the
337     funds were solicited;
338          (c) appropriates solicited funds for any compensation in excess of a reasonable
339     allowance for salaries or other compensation for services rendered;
340          (d) appropriates solicited funds for any fees in excess of a reasonable allowance for
341     travel, entertainment, legal, professional, or services of a similar nature; or
342          (e) uses solicited funds for any purpose prohibited by 26 U.S.C. Sec. 501(c)(3).
343          Section 7. Section 13-22-26 is enacted to read:
344          13-22-26. Fund raising campaign registration required.
345          (1) As used in this section, "fund raising campaign" means solicitation activities a
346     professional fund raiser engages in on behalf of a charitable organization:
347          (a) through a written agreement required under Section 13-22-17; and
348          (b) for a definite period.
349          (2) Before the commencement of a fund raising campaign, a professional fund raiser
350     shall submit to the division:
351          (a) projected expenses and revenue for the campaign;
352          (b) bank account information for the bank account where the professional fund raiser
353     will hold contributions collected in the fund raising campaign;
354          (c) solicitation scripts;
355          (d) an affirmation from the professional fund raiser that the charity approves
356     solicitation materials; and
357          (e) names and contact information for the individual or individuals overseeing the fund
358     raising campaign.
359          (3) No later than 90 days after the day on which the fund raising campaign ends, the
360     professional fund raiser shall submit a report to the division of all contributions collected and
361     expenses paid to the charitable organization during the fund raising campaign.
362          (4) A professional fund raiser shall keep records of a fund raising campaign for five
363     years after the date on which the fund raising campaign ends.
364          Section 8. Section 13-25a-102 is amended to read:
365          13-25a-102. Definitions.
366          As used in this chapter:
367          (1) "Advertisement" means material offering for sale, or advertising the availability or
368     quality of, any property, good, or service.
369          (2) (a) "Automated telephone dialing system" means equipment used to:
370          (i) store or produce telephone numbers;
371          (ii) call a stored or produced number; and
372          (iii) connect the number called with a recorded message or artificial voice.
373          (b) "Automated telephone dialing system" does not include a system used in an
374     emergency involving the immediate health or safety of a person, including a burglar alarm
375     system, voice messaging system, fire alarm system, or other similar system.
376          (3) "Division" means the Division of Consumer Protection.
377          (4) (a) "Established business relationship" means a relationship that:
378          (i) is based on inquiry, application, purchase, or transaction regarding products or
379     services offered;
380          (ii) is formed by a voluntary two-way communication between a person making a
381     telephone solicitation and a person to whom a telephone solicitation is made; and
382          (iii) has not been terminated by:
383          (A) an act by either person; or
384          (B) the passage of 18 months since the most recent inquiry, application, purchase,
385     transaction, or voluntary two-way communication.
386          (b) "Established business relationship" includes a relationship with an affiliate as
387     defined in Section 16-10a-102.
388          (5) "Facsimile machine" means equipment used for:
389          (a) scanning or encoding text or images for conversion into electronic signals for
390     transmission; or
391          (b) receiving electronic signals and reproducing them as a duplicate of the original text
392     or image.
393          (6) "Negative response" means a statement from a person stating the person does not
394     wish to listen to the sales presentation or participate in the solicitation presented in the
395     telephone call.
396          (7) "On-call emergency provider" means an individual who is required by an employer
397     to be on call to respond to a medical emergency.
398          (8) "Telephone solicitation" means the initiation of a telephone call or message for a
399     commercial purpose or to seek a financial donation, including calls:
400          (a) encouraging the purchase or rental of, or investment in, property, goods, or services,
401     regardless of whether the transaction involves a nonprofit organization;
402          (b) soliciting a sale of or extension of credit for property or services to the person
403     called;
404          (c) soliciting information that will be used for:
405          (i) the direct solicitation of a sale of property or services to the person called; or
406          (ii) an extension of credit to the person called for a sale of property or services;
407          (d) soliciting a charitable donation [involving the exchange of any premium, prize, gift,
408     ticket, subscription, or other benefit in connection with any appeal made for a charitable
409     purpose]; or
410          (e) encouraging the person called to sell real or personal property.
411          (9) "Telephone solicitor" means any individual, firm, organization, partnership,
412     association, or corporation who makes or causes to be made an unsolicited telephone call,
413     including calls made by use of an automated telephone dialing system.
414          (10) "Unsolicited telephone call" means a telephone call for a commercial purpose or
415     to seek a financial donation other than a call made:
416          (a) in response to an express request of the person called;
417          (b) primarily in connection with an existing debt or contract, payment or performance
418     of which has not been completed at the time of the call;
419          (c) to a person with whom the telephone solicitor has an established business
420     relationship; or
421          (d) as required by law for a medical purpose.
422          Section 9. Section 13-25a-111 is amended to read:
423          13-25a-111. Exemptions.
424          Notwithstanding any other provision of this chapter, Sections 13-25a-103 and
425     13-25a-108 do not apply to a person who holds a license or registration:
426          [(1) a telephone call made for a charitable purpose as defined in Section 13-22-2;]
427          [(2) a charitable solicitation as defined in Section 13-22-2; or]
428          [(3) a person who holds a license or registration:]
429          [(a)] (1) under Title 31A, Insurance Code;
430          [(b)] (2) issued by the Division of Real Estate established in Section 61-2-201; or
431          [(c)] (3) issued by the National Association of Securities Dealers.
432          Section 10. Section 16-6a-203 is amended to read:
433          16-6a-203. Incorporation -- Required filings.
434          (1) As used in this section:
435          (a) "Professional fund raiser" means the same as that term is defined in Section
436     13-22-2.
437          (b) "Professional fund raising counsel or consultant" means the same as that term is
438     defined in Section 13-22-2.
439          (2) A nonprofit corporation is incorporated, and its corporate existence begins:
440          (a) when the articles of incorporation are filed by the division; or
441          (b) if a delayed effective date is specified pursuant to Subsection 16-6a-108(2), on the
442     delayed effective date, unless a certificate of withdrawal is filed prior to the delayed effective
443     date.
444          [(2)] (3) Notwithstanding Subsection 16-6a-110(4), the filing of the articles of
445     incorporation by the division is conclusive proof that all conditions precedent to incorporation
446     have been satisfied, except in a proceeding by the state to:
447          (a) cancel or revoke the incorporation; or
448          (b) involuntarily dissolve the nonprofit corporation.
449          (4) (a) A nonprofit corporation shall file with the division any of the following that
450     apply to the nonprofit corporation:
451          (i) a copy of the nonprofit corporation's Internal Revenue Service determination letter
452     qualifying the nonprofit corporation as being tax exempt under Section 501(c)(3), Internal
453     Revenue Code;
454          (ii) an unredacted IRS Form 990, 990EZ, 990N, or 990PF;
455          (iii) a copy of any written agreement with a professional fund raiser or professional
456     fund raising counsel or consultant; and
457          (iv) disclosure of any injunction, judgment, administrative order, or felony conviction
458     involving fraud, dishonesty, false statements, forgery, or theft with respect to an officer,
459     director, manager, operator, or principal of the organization.
460          (b) Except as provided in Subsection (4)(c), a nonprofit corporation shall make the
461     filings required under Subsection (4)(a):
462          (i) for a nonprofit corporation whose corporate existence begins on or after May 1,
463     2024, no later than 90 days after the date on which the nonprofit corporation's corporate
464     existence begins; or
465          (ii) for a nonprofit corporation in existence before May 1, 2024, no later than August 1,
466     2024.
467          (c) If a nonprofit corporation does not have the information described in Subsection
468     (4)(a) during the time period described in Subsection (4)(b), the nonprofit corporation shall, no
469     later than 30 days after the day on which the nonprofit corporation obtains the information, file
470     the information required under Subsection (4)(a) with the division.
471          (d) If a document required under Subsections (4)(a)(i) and (ii) is not available during
472     the time period described in Subsection (4)(b), upon request from the division, the nonprofit
473     corporation shall provide a quarterly financial report to the division no later than 30 days after
474     the day on which the division requests the quarterly financial report.
475          Section 11. Section 16-6a-1503 is amended to read:
476          16-6a-1503. Application for authority to conduct affairs.
477          (1) A foreign nonprofit corporation may apply for authority to conduct affairs in this
478     state by delivering to the division for filing an application for authority to conduct affairs
479     setting forth:
480          (a) its corporate name and its assumed corporate name, if any;
481          (b) the name of the state or country under whose law it is incorporated;
482          (c) its date of incorporation;
483          (d) its period of duration;
484          (e) the street address of its principal office;
485          (f) the information required by Subsection 16-17-203(1);
486          (g) the names and usual business addresses of its current directors and officers;
487          (h) the date it commenced or expects to commence conducting affairs in this state;
488     [and]
489          (i) a copy of the foreign nonprofit corporation's Internal Revenue Service determination
490     letter qualifying the nonprofit corporation as being tax exempt under Section 501(c)(3),
491     Internal Revenue Code;
492          (j) an unredacted IRS form 990, 990EZ, 990N, or 990PF;
493          (k) a copy of any written agreement with a professional fund raiser or professional fund
494     raising counsel or consultant;
495          (l) disclosure of any injunction, judgment, or administrative order or conviction of any
496     felony involving fraud, dishonesty, false statements, forgery, or theft with respect to any
497     officer, director, manager, operator, or principal of the organization; and
498          [(i)] (m) the additional information the division determines is necessary or appropriate
499     to determine whether the application for authority to conduct affairs should be filed.
500          (2) With the completed application required by Subsection (1) the foreign nonprofit
501     corporation shall deliver to the division for a certificate of existence, or a document of similar
502     import that is:
503          (a) authenticated by the division or other official having custody of corporate records in
504     the state or country under whose law it is incorporated; and
505          (b) dated within 90 days before the day on which the application for authority to
506     conduct affairs is filed.
507          (3) If the foreign nonprofit corporation does not have the information described in
508     Subsection (1)(i) through (l) at the time the foreign nonprofit corporation files the application,
509     the foreign nonprofit corporation shall, no later than 30 days of the day on which the nonprofit
510     corporation obtains the information, file the information with the division.
511          [(3)] (4) The foreign nonprofit corporation shall include in the application for authority
512     to conduct affairs, or in an accompanying document, written consent to appointment by its
513     designated registered agent.
514          [(4)] (5) (a) The division may permit a tribal nonprofit corporation to apply for
515     authority to conduct affairs in this state in the same manner as a nonprofit corporation
516     incorporated in another state.
517          (b) If a tribal nonprofit corporation elects to apply for authority to conduct affairs in
518     this state, for purposes of this chapter, the tribal nonprofit corporation shall be treated in the
519     same manner as a foreign nonprofit corporation incorporated under the laws of another state.
520          Section 12. Effective date.
521          This bill takes effect on May 1, 2024.