ASSEMBLY, No STATE OF NEW JERSEY. 211th LEGISLATURE INTRODUCED MAY 27, 2004
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1 ASSEMBLY, No. 0 STATE OF NEW JERSEY th LEGISLATURE INTRODUCED MAY, 00 Sponsored by: Assemblyman NEIL M. COHEN District 0 (Union) Assemblyman CHRISTOPHER "KIP" BATEMAN District (Morris and Somerset) Co-Sponsored by: Assemblyman Vas SYNOPSIS Provides certain requirements for canister solicitations by charities. CURRENT VERSION OF TEXT As introduced. (Sponsorship Updated As Of: //00)
2 A0 COHEN, BATEMAN AN ACT concerning charitable registration and supplementing P.L., c. (C.:A- et seq.). BE IT ENACTED by the Senate and General Assembly of the State of New Jersey:. In addition to all other requirements imposed by P.L., c. (C.:A- et seq.), every charitable organization that is subject to the provisions of P.L., c. (C.:A- et seq.), and that places canisters, that are unattended by a representative of the charitable organization, in a public place for solicitation purposes shall meet all of the following requirements: a. Maintain a bona fide office where a representative of the charitable organization can be reached at a telephone information line during normal business hours for the purpose of offering information concerning the charitable organization. An answering service unrelated to the charitable organization does not constitute a bona fide office. b. Clearly and conspicuously display the following information on a disclosure label on each canister: () The name and address of the organization; () The organization's charitable registration number; () The telephone number of the organization's bona fide office required under subsection a. of this section; () The charitable purpose of the organization; and () The following statement: "INFORMATION FILED WITH THE ATTORNEY GENERAL CONCERNING THE CHARITABLE SOLICITATION MAY BE OBTAINED FROM THE ATTORNEY GENERAL OF THE STATE OF NEW JERSEY BY CALLING REGISTRATION WITH THE ATTORNEY GENERAL DOES NOT IMPLY ENDORSEMENT;" c. Provide to the Attorney General and the Division of Consumer Affairs in the Department of Law and Public Safety, within days of placement, an accurate and complete list of the names and addresses of each location where a canister is placed; d. Provide to the local law enforcement agency in a municipality where any canister is placed, within days of placement, an accurate and complete list of the names and addresses of each location where a canister is placed within the municipality; e. File with the Attorney General a semiannual, independently audited financial statement, which is prepared in accordance with generally accepted accounting principles, and which includes: () The gross amount of contributions generated from all canisters; () A clear description detailing how the contributions generated from the canisters are allocated towards the charitable purposes, specific programs, administrative expenses, and staff salaries of the charitable organization;
3 A0 COHEN, BATEMAN () Whether the charitable organization has engaged the services of an independent paid fund raiser, fund raising counsel or commercial co-venturer; and () Any other information regarding the contributions generated from the canisters as may be required by rules adopted by the Attorney General; f. File with the Attorney General, by the end of each month, a monthly accounting of the collections of funds and disbursements from canister solicitations, and the address and the telephone number of the collection site where the funds are collected and counted; g. Pay to the Attorney General, at the time of the filing of the monthly accounting of funds and disbursements from canister solicitations, a monthly fee of $ for each canister used for solicitation purposes during any part of the month, which fees shall be used for purposes of enforcing this act; h. File with the local law enforcement agency within the municipality where the collection site is located, the address and telephone number of the collection site where the funds are collected and counted, and obtain written consent from the local law enforcement agency that the collection site is acceptable to the local law enforcement agency; i. Deposit all contributions generated from all canisters into one dedicated bank account which will be used solely for contributions generated from canisters and provide the Attorney General with the name and address of the financial institution where the account is held and the charitable organization's federal tax identification number associated with the account; j. Ensure that each director, officer, owner, partner and manager of the charitable organization, and any commercial co-venturer or independent paid fund raiser acting on behalf of the charitable organization, submits to the Attorney General, the applicant's name, address, fingerprints and written consent for a criminal history background check to be performed. The Attorney General is authorized to exchange fingerprint data with the State Bureau of Identification in the Division of State Police and the Federal Bureau of Investigation, consistent with applicable State and federal laws, rules and regulations, for the purpose of facilitating determinations concerning eligibility to register as a charitable organization. The applicant shall bear the cost for the criminal history record background check, including all costs of administering and processing the check. The Division of State Police shall promptly notify the Attorney General in the event that a current registrant or any person who was the subject of a criminal history record background check pursuant to this subsection is arrested for a crime or offense in this State after the date the background check was performed; k. Ensure that each director, officer, owner, partner, manager and
4 A0 COHEN, BATEMAN employee of the charitable organization, and any commercial coventurer or independent paid fund raiser acting on behalf of the charitable organization, shall prominently display a photo identification card, issued by the Attorney General, in a form acceptable to the Attorney General, when placing canisters and collecting canisters and contributions.. Whenever it shall appear to the Attorney General that a person has engaged in, or is engaging in, any act or practice in violation of section of this act or otherwise declared unlawful by the provisions of P.L., c. (C.:A- et seq.), in addition to any other remedy or action available under P.L., c. (C.:A- et seq.), the Attorney General may apply to Superior Court for an order to seize any canister contributions and to forfeit the canister contributions. Notwithstanding any provision of P.L., c. (C.:A- et seq.) to the contrary, the Attorney General may divide the canister contributions seized and forfeited with any municipality, to the extent that the law enforcement agency of that municipality participated in the seizure, as determined in the discretion of the Attorney General. In the event that the Attorney General divides the canister contributions with any municipality, the chief financial officer of the municipality shall remit the total amount of the canister contributions to a charitable organization approved by action of the municipal governing body, except that the municipality may retain an amount not to exceed % of the canister contributions to defray the cost of administration.. In addition to any other penalties or remedies authorized by P.L., c. (C.:A- et seq.), any person who violates any provision of this act, shall be subject to a penalty of up to $0,000 for each violation. The Attorney General may bring this action in a summary proceeding under the "Penalty Enforcement Law of," P.L., c. (C.A:- et seq.).. An owner, lessee or occupant whose premises are used for canister placement, and who acts reasonably and in good faith in cooperating with the Attorney General or a law enforcement agency, is immune from civil or criminal liability as a result of acts of commission or omission arising in connection with enforcement of this act or P.L., c. (C.:A- et seq.).. This act shall take effect on the 0th day following enactment, and shall apply to all canister in place on the effective date and all canisters placed subsequent to the effective date.
5 A0 COHEN, BATEMAN STATEMENT This bill is in response to the State of New Jersey Commission of Investigation report on the commission's investigation into the Associated Humane Societies. The commission's report indicated that the Associated Humane Societies violated the "Charitable Registration and Investigation Act," P.L., c. (C.:A- et seq.) and that the act needs to be revised to require further reporting by charitable organizations so as to prevent future abuses. This bill supplements the "Charitable Registration and Investigation Act" by imposing additional reporting, record keeping, and consumer disclosure requirements on a charitable organization that places unattended canisters in public places to solicit contributions. The bill requires that the charitable organization must maintain a bona fide office, other than an answering service, to provide information in response to telephone calls about the organization. The charitable organization must also display certain disclosure information, including a phone number for a bona fide office, on each canister. The bill requires the charitable organization to provide to the Attorney General and the Division of Consumer Affairs a list of all locations where canisters are placed and a semiannual audited financial statement regarding the contributions received from the canisters. The charitable organization must also file a monthly accounting with the Attorney General, and pay a monthly fee of $ for each canister used for solicitation purposes during any part of the month. The charitable organization must deposit all contributions generated from canisters into one bank account and report information about the account to the Attorney General. The bill requires the charitable organization to file with the local law enforcement within the municipality where the collection site is located, the address and telephone number of the collection site where the funds from canister solicitations are collected and counted, and obtain written consent from the local law enforcement agency that the collection site is acceptable to that agency. The charitable organization must also provide a municipality with a list of the canister locations within the municipality. The bill requires criminal history record background checks for directors, officers, owners and managers of the charitable organization, and any commercial co-venturer or independent fundraiser acting on behalf of the charitable organization, and requires all of these persons and all employees of these organizations to display photo identification when collecting or placing canisters. The bill also allows the Attorney General to obtain a court order for seizure and forfeiture of canister contributions if the act is violated, and provides that the seized contributions may be divided with a municipality whose law enforcement agency participates in the
6 A0 COHEN, BATEMAN enforcement action. If the contributions are so divided, the municipality must remit the total amount of the contributions to a charitable organization, except that % may be retained for administrative costs. The bill provides, in addition to any other penalties or remedies provided for in the "Charitable Registration and Investigation Act," a penalty of up to $0,000 for each violation of the bill's requirements that supplement that act. The Attorney General may bring a summary proceeding under the "Penalty Enforcement Law of," to collect this penalty. The bill also provides civil and criminal immunity to an owner, lessee or occupant on whose premises a canister is placed and who cooperates in an enforcement action.
A3436 GARCIA, EUSTACE 2
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