No. 41039 (5-year Review): Rule R152-22. Charitable Solicitations Act

DAR File No.: 41039
Filed: 12/01/2016 08:20:42 AM

NOTICE OF REVIEW AND STATEMENT OF CONTINUATION

Concise explanation of the particular statutory provisions under which the rule is enacted and how these provisions authorize or require the rule:

Subsection 13-2-5(1) gives the Director of the Division of Consumer Protection (Division) authorization to issue rules to administer and enforce the chapters listed in Section 13-2-1. Within the Charitable Solicitations Act (CSA), the Division is authorized to require additional information as needed in an application for registration or permitting, according to Subsections 13-22-6(1)(xvi) and 13-22-9(1)(xiv). It is also authorized by rule to require an organization that is exempt from registration to file a notice of claim of exemption and file a renewal of a notice of claim of exemption, prescribe the contents of a notice of claim of exemption and its renewal, and require a filing fee for a notice of claim of exemption, according to Section 13-22-8. Finally, by rule, the Division may require terms to be included in an agreement between a charity and a commercial co-venturer, according to Subsection 13-22-22(2).

Summary of written comments received during and since the last five-year review of the rule from interested persons supporting or opposing the rule:

The Division is not aware of any written comments regarding the rules. The interpretation of these rules is at times the subject of informal proceedings before the Division.

Reasoned justification for continuation of the rule, including reasons why the agency disagrees with comments in opposition to the rule, if any:

The Division has utilized its statutory authority to issue rules to administer and enforce the CSA both from the Division's general statutory rulemaking powers, as well as the specific provisions authorizing the Division to issue rules within the CSA. This rule governs a variety of issues that affect the Division's ability to register professional fundraisers and charities and enforce the CSA. The Division has defined the term "parent foundation" as it appears in the CSA in Section R152-22-2. Defining what constitutes a parent foundation or parent organization eases the burden of administrative compliance by setting a defined standard for what that means. The rule also provides notice to organizations that the use of a vending device or decal in connection with charitable solicitations creates a presumption that the party utilizing the vending device or decal is acting as a regulated entity under the chapter. Section R152-22-3 allows the Division to collect additional identifying information and financial information important for the Division to make registration approval decisions. It also clarifies what charities may file that are new and have no financial history similar to Sections R152-22-3 and R152-22-6, and provides administrative guidance for the collection of information useful to the Division in making a permitting decision regarding professional fundraisers. Section R152-22-4 helps charities seeking to comply with the CSA by clarifying that the annual financial report or IRS Form 990 filed must be the most recent filed. It also clarifies that "30 days after the end of the year reported" means 30 days from the end of the registration year with the Division, as opposed to the company's financial year. Section R152-22-5 provides administrative support by describing the process for establishing a claim of exemption from CSA registration with the Division, and allowing the Division to charge a fee to cover the administrative costs of such a filing. The Division receives applications for registrations or permits that are incomplete with some frequency. Section R152-22-7 provides the Division flexibility to process incomplete applications in a grace period, and charge late fees for applications outside of that period. Section R152-22-8 requires written notification from professional fundraisers prior to the commencement of a new fundraising campaign. It also defines "not currently registered" for purposes of determining who a professional fundraiser may provide services for. Section R152-22-9 provides rules for emergency suspension of a registration or permit and establishes procedures for a hearing under an emergency suspension. In the event of fraud or other deceit by a registered charity or permitted fundraiser, it may be necessary for the Division to take action quickly as provided by this rule. Each of these sections under Rule R152-22 provide support to the Division's purposes in administering and enforcing the CSA. Therefore, this rule should be continued.

The full text of this rule may be inspected, during regular business hours, at the Office of Administrative Rules, or at:

Commerce
Consumer Protection
HEBER M WELLS BLDG
160 E 300 S
SALT LAKE CITY, UT 84111-2316

Direct questions regarding this rule to:

• Jacob Hart at the above address, by phone at 801-530-6636, by FAX at , or by Internet E-mail at [e-mail]

Effective:

12/01/2016

Authorized by:

Daniel O'Bannon, Director

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