Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 43 First Substitute (2024GS)

Sponsor

Rep. Maloy, A. Cory

Final action

Governor Signed 3/13/2024

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• consolidates requirements for information a charitable organization submits to the Division of Consumer Protection and the Division of Corporations;
• prohibits deceptive acts and diversion of funds related to charitable solicitations;
• adds regulations and filing requirements for professional fund raisers and professional fund raising campaigns;
• defines terms; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

CHARITABLE SOLICITATIONS ACT AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: A. Cory Maloy
Senate Sponsor: 
Curtis S. Bramble
LONG TITLE
Committee Note:
The Business and Labor Interim Committee recommended this bill.
Legislative Vote: 12 voting for 0 voting against 9 absent
General Description:
This bill amends provisions related to charitable solicitations.
Highlighted Provisions:
This bill:
▸ consolidates requirements for information a charitable organization submits to the
Division of Consumer Protection and the Division of Corporations;
▸ prohibits deceptive acts and diversion of funds related to charitable solicitations;
▸ adds regulations and filing requirements for professional fund raisers and
professional fund raising campaigns;
▸ defines terms; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
13-22-3
, as last amended by Laws of Utah 2008, Chapter 382
13-22-6
, as last amended by Laws of Utah 2020, Chapter 419
13-22-9
, as last amended by Laws of Utah 2018, Chapter 267
13-22-15
, as last amended by Laws of Utah 2015, Chapter 120
13-25a-102
, as last amended by Laws of Utah 2022, Chapter 324
13-25a-111
, as last amended by Laws of Utah 2010, Chapter 379
16-6a-203
, as last amended by Laws of Utah 2015, Chapter 240
16-6a-1503
, as last amended by Laws of Utah 2008, Chapters 249, 364
ENACTS:
13-22-24
, Utah Code Annotated 1953
13-22-25
, Utah Code Annotated 1953
13-22-26
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
13-22-3
 is amended to read:
13-22-3.
Investigative and enforcement powers -- Education.
(1) 
The division shall administer and enforce the provisions of this chapter in
accordance with Chapter 2, Division of Consumer Protection.
(2) The attorney general shall, upon request, give legal advice to, and act as counsel
for, the division in the exercise of the division's responsibilities under this chapter.
(3)
 The division may make any 
audit or
 investigation it considers necessary to
determine whether any person is violating, has violated, or is about to violate any provision of
this chapter or any rule made or order issued under this chapter. As part of the investigation,
the division may:
(a) require a person to file a statement in writing;
(b) administer oaths, subpoena witnesses and compel their attendance, take evidence,
and examine under oath any person in connection with an investigation; and
(c) require the production of any books, papers, documents, merchandise, or other
material relevant to the investigation.
[
(2)
] 
(4)
 [
Whenever it appears to the director that substantial evidence exists that any
person has engaged in, is engaging in, or is about to engage in any act or practice prohibited in
this chapter or constituting a violation of this chapter or any rule made or order issued under
this chapter, the director may do any of the following in addition to other specific duties under
this chapter:
] 
In addition to the division's enforcement powers under Chapter 2, Division of
Consumer Protection:
(a) [
in accordance with Title 63G, Chapter 4, Administrative Procedures Act, the
director may issue an order to cease and desist from engaging in the act or practice or from
doing any act in furtherance of the activity;
] 
the director may impose an administrative fine of
up to $2,500 for each violation of this chapter;
 or
(b) the [
director
] 
division
 may bring an action in [
the appropriate district court of this
state
] 
a court of competent jurisdiction
 to enjoin the acts or practices constituting the violation
or to enforce compliance with this chapter or any rule made or order issued under this chapter.
[
(3) Whenever it appears to the director by a preponderance of the evidence that a
person has engaged in or is engaging in any act or practice prohibited in this chapter or
constituting a violation of this chapter or any rule made or order issued under this chapter, the
director may assess an administrative fine of up to $500 per violation up to $10,000 for any
series of violations arising out of the same operative facts.
]
[
(4)
] 
(5)
 Upon a proper showing, the court hearing an action brought under Subsection
[
(2)(b)
] 
(4)(b)
 may:
(a) issue an injunction;
(b) enter a declaratory judgment;
(c) appoint a receiver for the defendant or the defendant's assets;
(d) order disgorgement of any money received in violation of this chapter;
(e) order rescission of agreements violating this chapter;
(f) impose a fine of [
not more than $2,000
] 
up to $2,500
 for each violation of this
chapter; [
and
] 
or
(g) impose a civil penalty, or any other relief the court considers just.
(6) If a court of competent jurisdiction grants judgment or injunctive relief to the
division, the court shall award the division:
(a) reasonable attorney fees;
(b) court costs; and
(c) investigative fees.
[
(5)
] 
(7)
 (a) In assessing the amount of a fine or penalty under Subsection [
(3)
] 
(4)(a)
,
[
(4)(f)
] 
(5)(f)
, or [
(4)(g)
] 
(5)(g)
, the director or court imposing the fine or penalty shall consider
the gravity of the violation [
and the intent of the violator
].
(b) If it does not appear by a preponderance of the evidence that the violator acted in
bad faith [
or with intent to harm the public
], the director or court shall excuse payment of the
fine or penalty.
(8) (a) A person who violates an administrative or court order issued for a violation of
this chapter is subject to a civil penalty of no more than $5,000 for each violation.
(b) A civil penalty authorized under this section may be imposed in any civil action
brought by the attorney general on behalf of the division.
[
(6)
] 
(9)
 The division may provide or contract to provide public education and
voluntary education for applicants and registrants under this chapter. The education may be in
the form of publications, advertisements, seminars, courses, or other appropriate means. The
scope of the education may include:
(a) the requirements, prohibitions, and regulated practices under this chapter;
(b) suggestions for effective financial and organizational practices for charitable
organizations;
(c) charitable giving and solicitation;
(d) potential problems with solicitations and fraudulent or deceptive practices; and
(e) any other matter relevant to the subject of this chapter.
Section 2. Section 
13-22-6
 is amended to read:
13-22-6.
Application for registration.
(1) An applicant for registration or renewal of registration as a charitable organization
shall:
(a) pay an application fee as determined under Section 
63J-1-504
; and
(b) submit an application on a form approved by the division which shall include:
[
(i) the organization's name, address, telephone number, facsimile number, if any, and
the names and addresses of any organizations or persons controlled by, controlling, or affiliated
with the applicant;
]
[
(ii) the specific legal nature of the organization, that is, whether the organization is an
individual, joint venture, partnership, limited liability company, corporation, association, or
other entity;
]
[
(iii) the names and residence addresses of the officers and directors of the
organization;
]
[
(iv) the name and address of the registered agent for service of process and a consent
to service of process;
]
[
(v)
] 
(i)
 the purpose of the solicitation and use of the contributions to be solicited
, if
different from the purposes for which the nonprofit corporation is organized as required in the
articles of incorporation under Section 
16-6a-202
;
[
(vi) the method by which the solicitation will be conducted and the projected length of
time the solicitation is to be conducted;
]
[
(vii) the anticipated expenses of the solicitation, including all commissions, costs of
collection, salaries, and any other items;
]
[
(viii) a statement of what percentage of the contributions collected as a result of the
solicitation are projected to remain available for application to the charitable purposes declared
in the application, including a satisfactory statement of the factual basis for the projected
percentage;
]
[
(ix) a statement of total contributions collected or received by the organization within
the calendar year immediately preceding the date of the application, including a description of
the expenditures made from or the use made of the contributions;
]
[
(x) a copy of any written agreements with any professional fund raiser involved with
the solicitation;
]
[
(xi) disclosure of any injunction, judgment, or administrative order or conviction of
any crime involving moral turpitude with respect to any officer, director, manager, operator, or
principal of the organization;
]
[
(xii) a copy of all agreements to which the applicant is, or proposes to be, a party
regarding the use of proceeds for the solicitation or fundraising;
]
[
(xiii) a statement of whether the charitable organization, or the charitable
organization's parent foundation, will be using the services of a professional fund raiser or of a
professional fund raising counsel or consultant;
]
[
(xiv) if either the charitable organization or the charitable organization's parent
foundation will be using the services of a professional fund raiser or a professional fund raising
counsel or consultant:
]
[
(A) a copy of all agreements related to the services; and
]
[
(B) an acknowledgment that fund raising in the state will not commence until both the
charitable organization, its parent foundation, if any, and the professional fund raiser or
professional fund raising counsel or consultant are registered and in compliance with this
chapter;
]
[
(xv)
] 
(ii)
 any documents required under Section 
13-22-15
; and
[
(xvi)
] 
(iii)
 any additional information the division may require by rule.
(2) If any information contained in the application for registration becomes incorrect or
incomplete, the applicant or registrant shall, within 30 days after the information becomes
incorrect or incomplete, correct the application or file the complete information required by the
division.
(3) In addition to the registration fee, an organization failing to file a registration
application or renewal by the due date or filing an incomplete registration application or
renewal shall pay an additional fee of $25 for each month or part of a month after the date on
which the registration application or renewal were due to be filed.
Section 3. Section 
13-22-9
 is amended to read:
13-22-9.
Professional fund raiser's or fund raising counsel's or consultant's
permit.
(1) A person applying for or renewing a permit as a professional fund raiser or a
professional fund raising counsel or consultant shall:
(a) pay an application fee as determined under Section 
63J-1-504
; and
(b) submit a written application, verified under oath, on a form approved by the
division that includes:
(i) the applicant's name, address, telephone number, facsimile number, if any;
(ii) the name and address of any organization or person controlled by, controlling, or
affiliated with the applicant;
(iii) the applicant's business, occupation, or employment for the three-year period
immediately preceding the date of the application;
(iv) whether it is an individual, joint venture, partnership, limited liability company,
corporation, association, or other entity;
(v) the names and residence addresses of any officer or director of the applicant;
(vi) the name and address of the registered agent for service of process and a consent to
service of process;
(vii) if a professional fund raiser:
(A) the purpose of the solicitation and use of the contributions to be solicited;
(B) the method by which the solicitation will be conducted and the projected length of
time it is to be conducted;
(C) the anticipated expenses of the solicitation, including all commissions, costs of
collection, salaries, and any other items;
(D) a statement of what percentage of the contributions collected as a result of the
solicitation are projected to remain available to the charitable organization declared in the
application, including a satisfactory statement of the factual basis for the projected percentage
and projected anticipated revenues provided to the charitable organization, and if a flat fee is
charged, documentation to support the reasonableness of the flat fee; and
(E) a statement of total contributions collected or received by the professional fund
raiser within the calendar year immediately preceding the date of the application, including a
description of the expenditures made from or the use made of the contributions;
(viii) if a professional fund raising counsel or consultant:
(A) the purpose of the plan, management, advice, counsel or preparation of materials
for, or with respect to, the solicitation and use of the contributions solicited;
(B) the method by which the plan, management, advice, counsel, or preparation of
materials for, or with respect to, the solicitation will be organized or coordinated and the
projected length of time of the solicitation;
(C) the anticipated expenses of the plan, management, advice, counsel, or preparation
of materials for, or with respect to, the solicitation, including all commissions, costs of
collection, salaries, and any other items;
(D) a statement of total fees to be earned or received from the charitable organization
declared in the application, and what percentage of the contributions collected as a result of the
plan, management, advice, counsel, or preparation of materials for, or with respect to, the
solicitation are projected after deducting the total fees to be earned or received remain available
to the charitable organization declared in the application, including a satisfactory statement of
the factual basis for the projected percentage and projected anticipated revenues provided to the
charitable organization, and if a flat fee is charged, documentation to support the
reasonableness of such flat fee; and
(E) a statement of total net fees earned or received within the calendar year
immediately preceding the date of the application, including a description of the expenditures
made from or the use of the net earned or received fees in the planning, management, advising,
counseling, or preparation of materials for, or with respect to, the solicitation and use of the
contributions solicited for the charitable organization;
(ix) disclosure of any injunction, judgment, or administrative order against the
applicant or the applicant's conviction of any crime involving [
moral turpitude
] 
charitable
solicitations or a felony involving fraud, dishonesty, false statements, forgery, or theft
;
(x) a copy of any written agreements with any charitable organization;
(xi) the disclosure of any injunction, judgment, or administrative order or conviction of
any crime involving [
moral turpitude
] 
charitable solicitations or a felony involving fraud,
dishonesty, false statements, forgery, or theft
 with respect to any officer, director, manager,
operator, or principal of the applicant;
(xii) a copy of all agreements to which the applicant is, or proposes to be, a party
regarding the use of proceeds;
(xiii) an acknowledgment that fund raising in the state will not commence until both
the professional fund raiser or professional fund raising counsel or consultant and the charity,
and its parent foundation, if any, are registered and in compliance with this chapter; [
and
]
(xiv) evidence that the applicant has obtained and maintained a performance bond
issued by a surety authorized to transact surety business in this state:
(A) in the amount of $25,000; and
(B) payable to the division for the benefit of any consumer who incurs damages as a
result of the applicant's violation of this chapter; and
[
(xiv)
] 
(xv)
 any additional information the division may require by rule.
(2) If any information contained in the application for a permit becomes incorrect or
incomplete, the applicant or registrant shall, within 30 days after the information becomes
incorrect or incomplete, correct the application or file the complete information required by the
division.
(3) In addition to the permit fee, an applicant failing to file a permit application or
renewal by the due date or filing an incomplete permit application or renewal shall pay an
additional fee of $25 for each month or part of a month after the date on which the permit
application or renewal were due to be filed.
Section 4. Section 
13-22-15
 is amended to read:
13-22-15.
Financial reports required.
(1) (a) Except as provided in Subsection (1)(c), as part of a charitable organization's
application for registration or renewal of registration described in Section 
13-22-6
, each
charitable organization shall file:
(i) an annual financial report on a form prescribed by the division;
(ii) an IRS Form 990, 990EZ, 990N, or 990PF; or
(iii) both the documents described in Subsections (1)(a)(i) and (ii).
(b) The division shall instruct each applicant for registration or renewal of registration
as a charitable organization on which documents to file under Subsection (1)(a).
(c) If a document required under Subsections (1)(a) and (b) is not available during the
charitable organization's first year of registration, upon request from the division, the charitable
organization shall provide a quarterly financial report to the division within 30 days after the
day on which the division requests the quarterly financial report.
(2) Each annual or quarterly financial report shall disclose:
(a) the gross amount of contributions received;
[
(b) the amount of contributions disbursed or to be disbursed to each charitable
organization or charitable purpose represented;
]
[
(c)
] 
(b)
 aggregate amounts paid to any professional fund raiser;
[
(d)
] 
(c)
 amounts spent for overhead, expenses, commissions, and similar purposes;
and
[
(e)
] 
(d)
 unless disclosed in another part of the charitable organization's application for
registration or renewal of registration, the name and address of any professional fund raiser
used by the charitable organization.
(3) Each report required under this section shall be signed under oath by an officer or
principal of the charitable organization.
(4) (a) If a charitable organization fails to timely file a quarterly financial report in
accordance with Subsection (1)(c), the charitable organization's registration is immediately and
automatically suspended pending a final order of the division under Section 
13-22-12
.
(b) The division may reinstate the charitable organization's registration after the
division receives:
(i) the quarterly financial report requested in accordance with Subsection (1)(c); and
(ii) a penalty of $25 for each full or partial calendar month after the day on which the
quarterly report was due.
Section 5. Section 
13-22-24
 is enacted to read:
 13-22-24.
Deceptive acts or practices prohibited -- Prohibited telephone
solicitations.
(1) A deceptive act or practice by a person in connection with a charitable solicitation
is a violation of this chapter.
(2) Without limiting the scope of Subsection (1), a person commits a deceptive act or
practice if the person knowingly or intentionally:
(a) indicates that the person is affiliated with a charitable organization, if it is not;
(b) indicates that the person is an employee, officer, or representative of a public safety
agency, if it is not;
(c) indicates that the person has sponsorship or approval of a given charitable
organization, if it has not;
(d) indicates that a given portion of a solicitation is provided to a charitable
organization, if it is not;
(e) indicates that providing a solicitation has an additional benefit, if it does not;
(f) indicates that providing a solicitation is tax deductible, if it is not;
(g) indicates that providing a solicitation is connected to a tax credit, if it is not;
(h) indicates that the offeror of a solicitation has previously given a solicitation to the
charitable organization, if it has not; or
(i) with the intent to deceive, uses a name that is substantially similar to another
charitable organization.
(3) A deceptive act or practice by a professional fund raiser or professional fund raising
counsel or consultant is a violation of this chapter.
(4) Without limiting the scope of Subsection (3), a professional fund raiser or
professional fund raising counsel or consultant commits a deceptive act or practice if the
professional fund raiser or professional fund raising counsel or consultant knowingly or
intentionally:
(a) indicates the name of the professional fund raiser or professional fund raising
counsel or consultant, if it is not;
(b) indicates that the professional fund raiser or professional fund raising counsel or
consultant is conducting a solicitation on behalf of a given charitable organization, if it is not;
or
(c) indicates that a given portion of a solicitation is provided to a charitable
organization, if it is not.
(5) (a) A charitable organization shall maintain a list of persons in the state who
request not to be contacted by telephone in connection with a charitable solicitation.
(b) A person in connection with a charitable solicitation, a professional fund raiser, or a
professional fund raising counsel or consultant may not make or cause to be made an
unsolicited phone call to a person:
(i) located in the state; and
(ii) who requests to be placed on the charitable organization's list described in
Subsection (5)(a).
(c) (i) It is a violation of this chapter to make an unsolicited telephone call in violation
of this Subsection (5).
(ii) Each unsolicited telephone call in violation of this Subsection (5) is a separate
violation of this chapter.
Section 6. Section 
13-22-25
 is enacted to read:
 13-22-25.
Diversion of funds prohibited.
(1) Diverting funds from a charitable purpose is a violation of this chapter.
(2) Without limiting the scope of Subsection (1), a person or professional fund raiser or
fund raising counsel or consultant diverts funds from a charitable purpose if the person:
(a) appropriates solicited funds to a person other than the person to which the funds
were solicited;
(b) appropriates solicited funds for a purpose other than the purpose for which the
funds were solicited;
(c) appropriates solicited funds for any compensation in excess of a reasonable
allowance for salaries or other compensation for services rendered;
(d) appropriates solicited funds for any fees in excess of a reasonable allowance for
travel, entertainment, legal, professional, or services of a similar nature; or
(e) uses solicited funds for any purpose prohibited by 26 U.S.C. Sec. 501(c)(3).
Section 7. Section 
13-22-26
 is enacted to read:
 13-22-26.
Fund raising campaign registration required.
(1) As used in this section, "fund raising campaign" means solicitation activities a
professional fund raiser engages in on behalf of a charitable organization:
(a) through a written agreement required under Section 
13-22-17
; and
(b) for a definite period.
(2) Before the commencement of a fund raising campaign, a professional fund raiser
shall submit to the division:
(a) projected expenses and revenue for the campaign;
(b) bank account information for the bank account where the professional fund raiser
will hold contributions collected in the fund raising campaign;
(c) solicitation scripts;
(d) an affirmation from the professional fund raiser that the charity approves
solicitation materials; and
(e) names and contact information for the individual or individuals overseeing the fund
raising campaign.
(3) No later than 90 days after the day on which the fund raising campaign ends, the
professional fund raiser shall submit a report to the division of all contributions collected and
expenses paid to the charitable organization during the fund raising campaign.
(4) A professional fund raiser shall keep records of a fund raising campaign for five
years after the date on which the fund raising campaign ends.
Section 8. Section 
13-25a-102
 is amended to read:
13-25a-102.
Definitions.
As used in this chapter:
(1) "Advertisement" means material offering for sale, or advertising the availability or
quality of, any property, good, or service.
(2) (a) "Automated telephone dialing system" means equipment used to:
(i) store or produce telephone numbers;
(ii) call a stored or produced number; and
(iii) connect the number called with a recorded message or artificial voice.
(b) "Automated telephone dialing system" does not include a system used in an
emergency involving the immediate health or safety of a person, including a burglar alarm
system, voice messaging system, fire alarm system, or other similar system.
(3) "Division" means the Division of Consumer Protection.
(4) (a) "Established business relationship" means a relationship that:
(i) is based on inquiry, application, purchase, or transaction regarding products or
services offered;
(ii) is formed by a voluntary two-way communication between a person making a
telephone solicitation and a person to whom a telephone solicitation is made; and
(iii) has not been terminated by:
(A) an act by either person; or
(B) the passage of 18 months since the most recent inquiry, application, purchase,
transaction, or voluntary two-way communication.
(b) "Established business relationship" includes a relationship with an affiliate as
defined in Section 
16-10a-102
.
(5) "Facsimile machine" means equipment used for:
(a) scanning or encoding text or images for conversion into electronic signals for
transmission; or
(b) receiving electronic signals and reproducing them as a duplicate of the original text
or image.
(6) "Negative response" means a statement from a person stating the person does not
wish to listen to the sales presentation or participate in the solicitation presented in the
telephone call.
(7) "On-call emergency provider" means an individual who is required by an employer
to be on call to respond to a medical emergency.
(8) "Telephone solicitation" means the initiation of a telephone call or message for a
commercial purpose or to seek a financial donation, including calls:
(a) encouraging the purchase or rental of, or investment in, property, goods, or services,
regardless of whether the transaction involves a nonprofit organization;
(b) soliciting a sale of or extension of credit for property or services to the person
called;
(c) soliciting information that will be used for:
(i) the direct solicitation of a sale of property or services to the person called; or
(ii) an extension of credit to the person called for a sale of property or services;
(d) soliciting a charitable donation [
involving the exchange of any premium, prize, gift,
ticket, subscription, or other benefit in connection with any appeal made for a charitable
purpose
]; or
(e) encouraging the person called to sell real or personal property.
(9) "Telephone solicitor" means any individual, firm, organization, partnership,
association, or corporation who makes or causes to be made an unsolicited telephone call,
including calls made by use of an automated telephone dialing system.
(10) "Unsolicited telephone call" means a telephone call for a commercial purpose or
to seek a financial donation other than a call made:
(a) in response to an express request of the person called;
(b) primarily in connection with an existing debt or contract, payment or performance
of which has not been completed at the time of the call;
(c) to a person with whom the telephone solicitor has an established business
relationship; or
(d) as required by law for a medical purpose.
Section 9. Section 
13-25a-111
 is amended to read:
13-25a-111.
Exemptions.
Notwithstanding any other provision of this chapter, Sections 
13-25a-103
 and
13-25a-108
 do not apply to 
a person who holds a license or registration
:
[
(1) a telephone call made for a charitable purpose as defined in Section 
13-22-2
;
]
[
(2) a charitable solicitation as defined in Section 
13-22-2
; or
]
[
(3) a person who holds a license or registration:
]
[
(a)
] 
(1)
 under Title 31A, Insurance Code;
[
(b)
] 
(2)
 issued by the Division of Real Estate established in Section 
61-2-201
; or
[
(c)
] 
(3)
 issued by the National Association of Securities Dealers.
Section 10. Section 
16-6a-203
 is amended to read:
16-6a-203.
Incorporation -- Required filings.
(1) 
As used in this section:
(a) "Professional fund raiser" means the same as that term is defined in Section
13-22-2
.
(b) "Professional fund raising counsel or consultant" means the same as that term is
defined in Section 
13-22-2
.
(2)
 A nonprofit corporation is incorporated, and its corporate existence begins:
(a) when the articles of incorporation are filed by the division; or
(b) if a delayed effective date is specified pursuant to Subsection 
16-6a-108
(2), on the
delayed effective date, unless a certificate of withdrawal is filed prior to the delayed effective
date.
[
(2)
] 
(3)
 Notwithstanding Subsection 
16-6a-110
(4), the filing of the articles of
incorporation by the division is conclusive proof that all conditions precedent to incorporation
have been satisfied, except in a proceeding by the state to:
(a) cancel or revoke the incorporation; or
(b) involuntarily dissolve the nonprofit corporation.
(4) (a) A nonprofit corporation shall file with the division any of the following that
apply to the nonprofit corporation:
(i) a copy of the nonprofit corporation's Internal Revenue Service determination letter
qualifying the nonprofit corporation as being tax exempt under Section 501(c)(3), Internal
Revenue Code;
(ii) an unredacted IRS Form 990, 990EZ, 990N, or 990PF;
(iii) a copy of any written agreement with a professional fund raiser or professional
fund raising counsel or consultant; and
(iv) disclosure of any injunction, judgment, administrative order, or felony conviction
involving fraud, dishonesty, false statements, forgery, or theft with respect to an officer,
director, manager, operator, or principal of the organization.
(b) Except as provided in Subsection (4)(c), a nonprofit corporation shall make the
filings required under Subsection (4)(a):
(i) for a nonprofit corporation whose corporate existence begins on or after May 1,
2024, no later than 90 days after the date on which the nonprofit corporation's corporate
existence begins; or
(ii) for a nonprofit corporation in existence before May 1, 2024, no later than August 1,
2024.
(c) If a nonprofit corporation does not have the information described in Subsection
(4)(a) during the time period described in Subsection (4)(b), the nonprofit corporation shall, no
later than 30 days after the day on which the nonprofit corporation obtains the information, file
the information required under Subsection (4)(a) with the division.
(d) If a document required under Subsections (4)(a)(i) and (ii) is not available during
the time period described in Subsection (4)(b), upon request from the division, the nonprofit
corporation shall provide a quarterly financial report to the division no later than 30 days after
the day on which the division requests the quarterly financial report.
Section 11. Section 
16-6a-1503
 is amended to read:
16-6a-1503.
Application for authority to conduct affairs.
(1) A foreign nonprofit corporation may apply for authority to conduct affairs in this
state by delivering to the division for filing an application for authority to conduct affairs
setting forth:
(a) its corporate name and its assumed corporate name, if any;
(b) the name of the state or country under whose law it is incorporated;
(c) its date of incorporation;
(d) its period of duration;
(e) the street address of its principal office;
(f) the information required by Subsection 
16-17-203
(1);
(g) the names and usual business addresses of its current directors and officers;
(h) the date it commenced or expects to commence conducting affairs in this state;
[
and
]
(i) a copy of the foreign nonprofit corporation's Internal Revenue Service determination
letter qualifying the nonprofit corporation as being tax exempt under Section 501(c)(3),
Internal Revenue Code;
(j) an unredacted IRS form 990, 990EZ, 990N, or 990PF;
(k) a copy of any written agreement with a professional fund raiser or professional fund
raising counsel or consultant;
(l) disclosure of any injunction, judgment, or administrative order or conviction of any
felony involving fraud, dishonesty, false statements, forgery, or theft with respect to any
officer, director, manager, operator, or principal of the organization; and
[
(i)
] 
(m)
 the additional information the division determines is necessary or appropriate
to determine whether the application for authority to conduct affairs should be filed.
(2) With the completed application required by Subsection (1) the foreign nonprofit
corporation shall deliver to the division for a certificate of existence, or a document of similar
import that is:
(a) authenticated by the division or other official having custody of corporate records in
the state or country under whose law it is incorporated; and
(b) dated within 90 days before the day on which the application for authority to
conduct affairs is filed.
(3) If the foreign nonprofit corporation does not have the information described in
Subsection (1)(i) through (l) at the time the foreign nonprofit corporation files the application,
the foreign nonprofit corporation shall, no later than 30 days of the day on which the nonprofit
corporation obtains the information, file the information with the division.
[
(3)
] 
(4)
 The foreign nonprofit corporation shall include in the application for authority
to conduct affairs, or in an accompanying document, written consent to appointment by its
designated registered agent.
[
(4)
] 
(5)
 (a) The division may permit a tribal nonprofit corporation to apply for
authority to conduct affairs in this state in the same manner as a nonprofit corporation
incorporated in another state.
(b) If a tribal nonprofit corporation elects to apply for authority to conduct affairs in
this state, for purposes of this chapter, the tribal nonprofit corporation shall be treated in the
same manner as a foreign nonprofit corporation incorporated under the laws of another state.
Section 12. 
Effective date.
This bill takes effect on May 1, 2024.