This bill extends the period of reduced fees payable to the secretary of state relating to nonprofit charitable gaming and the solicitation of charitable funds, as described below.
TENNESSEE NONPROFIT GAMING LAW
Present law defines "annual event" as an event:
(1) Authorized by a 2/3 vote of all members elected to each house of the general assembly;
(2) Operated for the benefit of a nonprofit organization located in Tennessee;
(3) Conducted with a single type of lottery game;
(4) Conducted on an event date; and
(5) Conducted at a location within a county where the organization maintains a physical presence or in a county that is contiguous to a county where the organization maintains a physical presence.
Present law requires all annual event applications to be submitted to the secretary of state from July 1 to January 31 for the annual event period beginning July 1 following the close of the application period and ending June 30 of the subsequent calendar year. Present law also requires an initial application fee of $50.00 to be paid at the time of submission of an annual event application, and prohibits an annual event application from being accepted by the secretary unless accompanied by the initial application fee. Present law provides that for the period of July 1, 2022, through January 31, 2023, the initial application fee referenced is $10.00 rather than $50.00. This bill maintains the initial application fee at $10.00 for the period July 1, 2023, through January 31, 2024.
Present law requires the secretary of state to collect a reasonable fee for annual event applications, and authorizes the secretary to establish a fee schedule for annual event applications based on the gross revenue of the annual event. Present law prohibits a fee from exceeding $700, and requires funds collected under the Tennessee Nonprofit Gaming Law (TNGL) to be used by the secretary to defray the cost of operating the division of the department of state administering the TNGL, including, but not limited to, conducting investigations. Present law provides that for the time period of July 1, 2022, through June 30, 2023, the fee referenced in this provision is $10.00 rather than the fees established above and by rule promulgated by the secretary of state. This bill maintains the annual event application fee at $10.00 for the period July 1, 2023, through January 31, 2024.
Present law requires an organization authorized by the general assembly to operate an annual event to file, within 90 calendar days following the actual event date, a financial accounting with the secretary of state. An organization that fails to timely file its financial accounting may be assessed a late fee of $25.00 for each month, or portion thereof, that the accounting is late. Present law requires the late filing fee to accompany every late-filed financial accounting. Present law further provides that if an organization fails to timely file the required financial accounting in any two of three consecutive annual event periods, then the organization may, in the discretion of the secretary of state, be disqualified from filing future annual event applications, which decision is subject to the review and appeal procedures; and for the period of July 1, 2022, through June 30, 2023, the monthly late fee is $10.00 rather than $25.00. This bill maintains the monthly late fee at $10.00 for the period July 1, 2023, through January 31, 2024.
SOLICITATION OF CHARITABLE FUNDS
Present law requires every charitable organization that intends to solicit contributions from or within this state, or have funds solicited on its behalf, to, prior to any solicitation, file a registration statement containing certain information with the secretary of state, upon forms prescribed by the secretary of state. Present law authorizes the secretary of state to prescribe and furnish forms and filing methods for all filings required by laws governing solicitation of charitable funds. Under present law, any registration statement that contains false, misleading, deceptive, or incomplete information or documentation is not considered sufficient, except as specifically otherwise provided.
Present law further requires the registration forms and any other documents prescribed by the secretary of state to be signed by two authorized officers of the charitable organization, and such forms and documents must be accompanied by an initial registration fee of $50.00; however, bona fide Indian organizations whose principal purpose is to assist and promote the welfare of Indians are exempt from the registration fee. Present law provides that for the period of July 1, 2022, through June 30, 2023, the registration fee is $10.00 rather than $50.00. This bill maintains the registration fee at $10.00 for the period July 1, 2023, through January 31, 2024.
Present law establishes a schedule of registration renewal fees ranging from $80.00 to $240 depending on the charitable organization's gross revenue. This bill provides that for the period of July 1, 2022, through June 30, 2023, the registration renewal fee is $10.00 regardless of the organization's gross revenue. This bill maintains the registration renewal fee for all charitable organizations at $10.00 for the period July 1, 2023, through January 31, 2024.
Present law requires applications received after the expiration of the current registration period to be assessed a late fee of $25.00 for each month, or portion thereof, that the report is late filed; and requires the late filing fee to accompany every late filed application. In addition to the late fee, any organization that files a late application is also subject to the imposition of civil penalties for violation of any law governing the solicitation of charitable funds. Present law provides that for the period of July 1, 2022, through June 30, 2023, the monthly late fee is $10.00 rather than $25.00. This bill maintains the monthly late fee at $10.00 for the period July 1, 2023, through January 31, 2024. This bill also prohibits the aggregate late fees assessed under the above provision to any entity from exceeding $300 in any calendar year.
Present law prohibits any person from acting as a professional solicitor for any charitable organization, unless such person has first registered with the secretary of state. Present law requires registration to include the filing of a complete application, bond and filing fee. Present law requires registration applications received after December 31 to be assessed a late fee of $25.00 for each month, or portion thereof, that the report is late filed; and requires the late filing fee to accompany every late-filed application. In addition to the late fee, any organization that files a late application is also subject to the imposition of civil penalties for violation of any portion of this law. Present law provides that for the period of July 1, 2022, through June 30, 2023, the monthly late fee is $10.00 rather than $25.00. This bill maintains the monthly late fee at $10.00 for the period July 1, 2023, through January 31, 2024.
Present law requires the annual registration fee for every person who is a professional solicitor to be $250, and provides that for the period of July 1, 2022, through June 30, 2023, the fee referenced in this provision is $10.00 rather than $250. This bill maintains the registration fee at $10.00 for the period July 1, 2023, through January 31, 2024.
Present law requires a professional solicitor to file a financial report for a solicitation campaign with the secretary of state within 90 days after a solicitation campaign has been completed or within 90 days after the end of the fiscal year or end of any campaign which lasts for more than one year. Present law requires financial reports for solicitation campaigns to be assessed a late fee of $25.00 for each month, or portion thereof, that the report is late filed; and requires the late filing fee to accompany every late-filed campaign report. In addition to the late fee, any person who files a late financial report is also subject to the imposition of civil penalties for violation of any portion of this law. Present law provides that for the period of July 1, 2022, through June 30, 2023, the monthly late filing is $10.00 rather than $25.00. This bill maintains the monthly late filing fee at $10.00 for the period July 1, 2023, through January 31, 2024.
Present law requires charitable organizations soliciting and receiving contributions for disasters to file financial reports as follows:
(1) Any charitable organization, other than a bona fide religious institution, that solicits and receives contributions exceeding $25,000 for a charitable purpose related to a disaster in this state is required to file quarterly financial reports with the secretary of state, on forms prescribed by the secretary of state, detailing the money raised and expended by the organization as a result of the solicitation, until the funds are expended. Additionally, present law requires the first quarterly report to be filed on the last day of the third month following the commencement of solicitations; and
(2) Any charitable organization other than a bona fide religious institution, which solicited and received contributions exceeding $25,000 for a charitable purpose related to a disaster in this state after June 30, 2011, is required to file quarterly financial reports with the secretary of state, on forms prescribed by the secretary of state, detailing the money raised and expended by the organization as a result of the solicitation, until the funds are expended.
This bill adds to the above list that any charitable organization, other than a bona fide religious institution, that solicits and receives contributions exceeding $25,000 for a charitable purpose related to a disaster in this state and that does not expend all contributions received within two years of the commencement of solicitations is required to file a report with both the secretary of state and the attorney general and reporter detailing both the timing and anticipated placement for the expenditures of the remaining funds. This bill requires the report to be filed by the last day of the twenty-fourth month following the commencement of solicitations, and authorizes a charitable organization to request an exemption from the requirements of this provision from the secretary of state and the attorney general and reporter; however, both the secretary of state and the attorney general and reporter must first approve the request.

Statutes affected:
Introduced: 3-17-104(c)(4), 3-17-104, 3-17-104(c)(5), 3-17-106(a)(3), 3-17-106, 48-101-504(b)(2), 48-101-504, 48-101-506(c)(3), 48-101-506, 48-101-506(f)(2), 48-101-507(a)(7), 48-101-507, 48-101-507(a)(8), 48-101-507(b)(4), 48-101-506(f), 48-101-521