SENATE BILL REPORT

                            SB 6230

  AS REPORTED BY COMMITTEE ON LAW & JUSTICE, FEBRUARY 3, 1994

Brief Description:  Changing charitable organizations and business licensing provisions.

SPONSORS: Senators M. Rasmussen, Nelson and Haugen; by request of Secretary of State

SENATE COMMITTEE ON LAW & JUSTICE

Majority Report:  That Substitute Senate Bill No. 6230 be substituted therefor, and the substitute bill do pass. 

     Signed by Senators A. Smith, Chairman; Ludwig, Vice Chairman; Hargrove, Nelson, Quigley, Roach, Schow and Spanel.

Staff:  Susan Mahoney (786‑7717)

Hearing Dates: February 2, 1994; February 3, 1994

BACKGROUND:

In 1993 legislation was enacted to update the statutes which govern the activities of the Corporations Division and to strengthen the laws concerning charities, commercial fundraisers, and charitable trusts.  As the 1993 laws have been reviewed several problem areas and oversights have been noted which require some revisions be made to clean up and clarify the previously enacted legislation.

In addition, a few minor changes are being requested by the Secretary of State to help facilitate the administration of charity organizations.

SUMMARY:

The Secretary of State shall set the base revenue amount exemption for charity filing by rule rather than having the amount set by statute.

The specific reference to a "toll free" number for consumer information is changed to refer to a "telephone" number for access to consumer information.

Revisions are made to clarify some of the requirements set forth in previously enacted legislation.

Technical revisions are made changing the setting of certain fee amounts by statute to setting those fees by rule.   

EFFECT OF PROPOSED SUBSTITUTE:

Technical revisions are made.

Appropriation:  none

Revenue:   none

Fiscal Note:  none requested

TESTIMONY FOR:

This bill cleans up and clarifies previously enacted legislation.

TESTIMONY AGAINST:  None

TESTIFIED:  Linda Mackintosh, Secretary of State's office (pro)