SENATE BILL No. 1518

 

 

September 18, 2008, Introduced by Senators JANSEN and GEORGE and referred to the Committee on Economic Development and Regulatory Reform.

 

 

 

     A bill to amend 1975 PA 169, entitled

 

"Charitable organizations and solicitations act,"

 

by amending section 13 (MCL 400.283), as amended by 1992 PA 299.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 13. The licensing and financial statement requirements of

 

this act do not apply to any of the following:

 

     (a) A person who that requests a contribution for the relief

 

or benefit of an individual, specified by name at the time of the

 

solicitation, if the contributions collected are turned over to the

 

named beneficiary after deducting reasonable expenses for costs of

 

solicitation, if any, and if all fund-raising functions are carried

 

on by persons who are unpaid, directly or indirectly, for their

 


services.

 

     (b) A person who charitable organization that does not intend

 

to solicit and receive and does not actually receive contributions

 

in excess of $8,000.00 during any 12-month period if all of its

 

fund-raising functions are carried on by persons who are unpaid for

 

their services and if the organization makes available to its

 

members and the public a financial statement of its activities for

 

the most recent fiscal year. If the gross contributions received

 

during any 12-month period exceed $8,000.00, the person shall file

 

an application for license with required supporting information as

 

provided in section 3 within 30 days after the date it has received

 

total contributions in excess of $8,000.00 of more than $25,000.00

 

in its current fiscal year if all of the charitable organization's

 

fund-raising functions are carried on by persons who are not paid

 

for their services. However, if a charitable organization otherwise

 

exempt under this subdivision receives actual total contributions

 

in that fiscal year of more than $25,000.00, the charitable

 

organization must obtain a license under this act within 30 days

 

after the date its total contributions in that fiscal year first

 

exceed $25,000.00.

 

     (c) An A charitable organization that does not invite the

 

general public to become a member of the organization and confines

 

solicitation activities to solicitation drives solely among its

 

members, and the members' directors, trustees, or their immediate

 

families. , if the drives are not held more frequently than

 

quarterly. "Immediate family" for purposes of this subdivision

 

means the grandparents, parents, spouse, brothers, sisters,

 


children, and grandchildren of a member, director, or trustee.

 

     (d) An educational institution certified by the state board of

 

education.

 

     (e) A veterans' organization incorporated under federal law.

 

     (f) An organization that receives funds from a charitable

 

organization licensed under this act that does not solicit or

 

intend to solicit or receive or intend to receive contributions

 

from persons other than a the charitable organization, if the

 

organization makes available to its members and the public a

 

financial statement of its activities for the its most recent

 

fiscal year.

 

     (g) A licensed hospital, hospital based foundation, and or

 

hospital auxiliary that solicit funds solicits money solely for 1

 

or more licensed hospitals.

 

     (h) A nonprofit service organization that is exempt from

 

taxation pursuant to a provision of the United States internal

 

revenue code other than section 501(c)(3), whose principal purpose

 

is not charitable, but that solicits money from time to time funds

 

for a charitable purpose by using members of the organization who

 

are not paid for the solicitation. The funds shall be wholly used A

 

nonprofit service organization must use all money it solicits under

 

this subdivision for the charitable purposes for which they were it

 

was solicited, and the organization shall file with the attorney

 

general a federal form 990 or 990 AR.

 

     (i) A nonprofit corporation whose stock is wholly owned by a

 

religious or fraternal society that owns and operates facilities

 

for the aged and chronically ill in which no part and does not use

 


any part of the net income from the operation of the corporation

 

inures to for the benefit of a any person other than the residents

 

of the facilities.

 

     (j) Charitable organizations A charitable organization

 

licensed by the department of social human services that serve

 

serves children and families.

 

     (k) A person registered under and complying with the

 

requirements of the public safety solicitation act, 1992 PA 298,

 

MCL 14.301 to 14.327.