H. B. 4500

         (By Delegates Morgan, Poore, D. Poling,

               Manypenny and Sponaugle)

         (By Request of the Secretary of State)

         [Introduced February 13, 2014; referred to the

         Committee on Government Organization then the Judiciary.]

A BILL to amend and reenact §29-19-5 of the Code of West Virginia, 1931, as amended; to amend and reenact §30-18-10 of said code; and to amend and reenact §30-39-6 of said code, all relating requirements for business registration; requiring charities, athlete agents, private investigators and security guards to have a valid business registration to be licensed or registered; and requiring sole proprietors to have a valid business registration certificate to be licensed or registered.

Be it enacted by the Legislature of West Virginia:

    That §29-19-5 of the Code of West Virginia, 1931, as amended, be amended and reenacted; that §30-18-10 of said code be amended and reenacted; and that §30-39-6 of said code be amended and reenacted, all to read as follows:

CHAPTER 29. MISCELLANEOUS BOARDS AND OFFICERS.

ARTICLE 19. SOLICITATION OF CHARITABLE FUNDS ACT.

§29-19-5. Registration of charitable organizations; fee.

    (a) Every charitable organization, except as provided in section six of this article, which intends to solicit contributions, donations or grants within this state or to have funds solicited or received on its behalf shall, prior to any solicitation, file a registration statement with the Secretary of State upon forms prescribed by him or her which shall be is good for one full year and which shall be refiled in the next and each following year in which the charitable organization is engaged in solicitation activities. If an organization discontinues solicitation at any time after its last registration filing, then it shall file a registration statement reflecting its activities during its last fiscal year in which solicitation in West Virginia took place. It is the duty of the president, chairman or principal officer of the charitable organization to file the statements required under this article. The statements shall be sworn to and shall contain the following information:

    (1) The name of the organization and the purpose for which it was organized;

    (2) The principal address of the organization and the address of any offices in this state. If the organization does not maintain an office, the name and address of the person having custody of its financial records;

    (3) The names and addresses of any chapters, branches or affiliates in this state;

    (4) The place where and the date when the organization was legally established and the form of its organization;

    (5) The names and addresses of the officers, directors, trustees and the principal salaried executive staff officer;

    (6) A copy of a balance sheet and a statement or report of income and expenses for the organization’s immediately preceding fiscal year or a financial statement reporting information showing the kind and amount of funds raised during the preceding fiscal year, the costs and expenses incidental to the fundraising and showing how the funds were disbursed or allocated for the same fiscal year: Provided, That in addition to the financial documents required by this subdivision:

    (A) Charitable organizations raising more than $200,000 per year in contributions, excluding grants from governmental agencies or private foundations, shall submit a report of an audit by an independent certified public accountant; and

    (B) Charitable organizations raising more than $100,000 per year but less than $200,001 per year in contributions, excluding grants from governmental agencies or private foundations, shall submit a statement of financial review by an independent certified public accountant. Organizations are required to report the amount of money received in the state and the amount spent in the state for charitable purposes;

    (7) A copy of any determination of the organization’s tax exempt status under the provisions of 26 U.S.C. §501(c)(3) and a copy of the last filed Internal Revenue Service Form 990 and Schedule A for every charitable organization and any parent organization;

    (8) Whether the organization intends to solicit contributions, donations or grants from the public directly or have other solicitation done on its behalf by others;

    (9) Whether the organization is authorized by any other governmental authority to solicit contributions, donations or grants and whether it is or has ever been enjoined by any court from soliciting contributions;

    (10) The general purpose or purposes for which the contributions to be solicited shall be used;

    (11) The name or names under which it intends to solicit contributions;

    (12) The names of the individuals or officers of the organization who will have final responsibility for the custody of the contributions;

    (13) The names of the individuals or officers of the organization responsible for the final distribution of the contributions; and

    (14) Copies of all contract documentation from professional fund-raising counsels and professional solicitors as provided in subsection (d), section seven of this article.

    (15) The Secretary of State shall reject the registration of any charitable organization which does not possess the proper business registration: Provided, that a business registered as a sole proprietor shall provide a copy of a current, valid business registration certificate from the West Virginia Tax Department.

    (b) Each chapter, branch or affiliate, except an independent member agency of a federated fund-raising organization, may separately report the information required by this section or report the information to its parent organization which shall then furnish the information regarding its West Virginia affiliates, chapters and branches in a consolidated form to the Secretary of State. An independent member agency of a federated fund-raising organization, as defined in section two of this article, shall comply with the provisions of this article independently. Each organization shall file a separate registration form for each name under which funds will be solicited.

    (c) The registration forms and any other documents prescribed by the Secretary of State shall be signed by an authorized officer or by an independent public accountant and by the chief fiscal officer of the charitable organization and shall be verified under oath.

    (d) Every charitable organization receiving less than $1 million during any year which submits an independent registration to the Secretary of State shall pay an annual registration fee of $15; every charitable organization collecting more than $1 million during one year which submits an independent registration to the Secretary of State shall pay an annual registration fee of $50; and a parent organization filing on behalf of one or more chapters, branches or affiliates or a single organization filing under different names shall pay a single annual registration fee of $50 for itself and the chapters, branches or affiliates included in the registration statement. All fees and moneys collected by the Secretary of State pursuant to the provisions of this article shall be deposited by the Secretary of State as follows: One-half shall be deposited in the state General Revenue Fund and one-half shall be deposited in the services fees and collections account established by section two, article one, chapter fifty-nine of this code for the operation of the office of the Secretary of State. The Secretary of State shall dedicate sufficient resources from that fund or other funds to provide the services required in this article.

    (e) For good cause shown, the Secretary of State may extend the due date for the annual filing of a registration statement or report by a charitable organization or a professional fundraiser for a period not to exceed ninety days. During that period, the previously filed registration statement or report of the charitable organization which has been granted the extension remains in effect.

    (f) In addition to the registration fee required by this section, a charitable organization or professional fundraiser, or both, which fails to file a registration statement or report by the original or extended due date for filing as required by this section shall, for each month or part of the month thereafter in which the registration statement or report is not filed, pay an additional fee of $25: Provided, That the total amount of the additional fees for a registration statement or report required to be filed in any one year may not exceed $500. All fees and moneys collected by the Secretary of State pursuant to the provisions of this article shall be deposited by the Secretary of State as follows: One-half shall be deposited in the state General Revenue Fund and one-half shall be deposited in the service fees and collections account established by section two, article one, chapter fifty-nine of this code for the operation of the Office of the Secretary of State. The Secretary of State shall dedicate sufficient resources from that fund or other funds to provide the services required in this article.

CHAPTER 30. PROFESSIONS AND OCCUPATIONS.

ARTICLE 18. PRIVATE INVESTIGATIVE AND SECURITY SERVICES.

§30-18-10. Authority of Secretary of State.

    (a) When the Secretary of State shall be is satisfied as to the good character, competency and integrity of an applicant, of all employees or individuals conducting the private investigation business or security guard services under a firm license and, if the applicant is a firm, of each member, officer or partner, he or she shall issue and deliver to such the applicant a certificate of license. Each license issued shall be for a period of one year and shall be is revocable at all times for cause shown pursuant to subsection (b) of this section or any rules promulgated pursuant thereto.

    (b) The Secretary of State shall reject any license pursuant to the provisions of this article to any applicant or applicants which do not possess the proper business registration: Provided, that a business registered as a sole proprietor shall provide a copy of a current, valid business registration certificate from the West Virginia Tax Department.

    (b) (c) The Secretary of State shall have the authority to may propose for promulgation in accordance with the provisions of chapter twenty-nine-a of this code such legislative rules as may be necessary for the administration and enforcement of this article and for the issuance, suspension and revocation of licenses issued under the provisions of this article. The Secretary of State shall afford any applicant an opportunity to be heard in person or by counsel when a determination is made to deny, revoke or suspend any such applicant's license or application for license, including a renewal of a license. Such The applicant shall have fifteen days from the date of receiving written notice of the Secretary of State's adverse determination to request a hearing on the matter of denial, suspension or revocation. The action of the Secretary of State in granting, renewing, or in refusing to grant or to renew, a license, shall be is subject to review by the circuit court of Kanawha County or other court of competent jurisdiction.

    (c) (d) At any hearing before the Secretary of State to challenge an adverse determination by the Secretary of State on the matter of a denial, suspension or revocation of a license, if the adverse determination is based upon a conviction for a crime which would bar licensure under the provisions of this article, the hearing shall be an identity hearing only, and the sole issue which may be contested is whether the person whose application is denied or whose license is suspended or revoked is the same person convicted of the crime.

ARTICLE 39. UNIFORM ATHLETE AGENTS ACT.

§30-39-6. Certificate of registration; issuance or denial; renewal.

    (a) Except as otherwise provided in subsections (b) and (c) of this section, the Secretary of State shall issue a certificate of registration to an individual who complies with subsection (a), section five of this article or whose application has been accepted under subsection (b), section five of this article.

    (b) The Secretary of State may refuse to issue a certificate of registration if the Secretary of State determines that the applicant has engaged in conduct that has a significant adverse effect on the applicant's fitness to act as an athlete agent. In making the determination, the Secretary of State may consider whether the applicant has:

    (1) Been convicted of a crime that, if committed in this state, would be a crime involving moral turpitude or a felony;

    (2) Made a materially false, misleading, deceptive, or fraudulent representation in the application or as an athlete agent;

    (3) Engaged in conduct that would disqualify the applicant from serving in a fiduciary capacity;

    (4) Engaged in conduct prohibited by section fourteen of this article;

    (5) Had a registration or licensure as an athlete agent suspended, revoked, or denied or been refused renewal of registration or licensure as an athlete agent in any state;

    (6) Engaged in conduct the consequence of which was that a sanction, suspension, or declaration of ineligibility to participate in an interscholastic or intercollegiate athletic event was imposed on a student-athlete or educational institution; or

    (7) Engaged in conduct that significantly adversely reflects on the applicant’s credibility, honesty or integrity.

    (c) The Secretary of State shall reject the registration if the athlete agent does not possess the proper business registration; Provided, that an athlete agent registered as a sole proprietor shall provide a copy of a current, valid business registration certificate from the West Virginia Tax Department.

    (c) (d) In making a determination under subsection (b) of this section, the Secretary of State shall consider:

    (1) How recently the conduct occurred;

    (2) The nature of the conduct and the context in which it occurred; and

    (3) Any other relevant conduct of the applicant.

    (d) (e) An athlete agent may apply to renew a registration by submitting an application for renewal in a form prescribed by the Secretary of State. An application filed under this section is a public record. The application for renewal must be signed by the applicant under penalty of perjury and must contain current information on all matters required in an original registration.

    (e) (f) An individual who has submitted an application for renewal of registration or licensure in another state, in lieu of submitting an application for renewal in the form prescribed pursuant to subsection (d) of this section, may file a copy of the application for renewal and a valid certificate of registration or licensure from the other state. The Secretary of State shall accept the application for renewal from the other state as an application for renewal in this state if the application to the other state:

    (1) Was submitted in the other state within six months next preceding the filing in this state and the applicant certifies the information contained in the application for renewal is current;

    (2) Contains information substantially similar to or more comprehensive than that required in an application for renewal submitted in this state; and

    (3) Was signed by the applicant under penalty of perjury.

    (f) (g) A certificate of registration or a renewal of a registration is valid for two years.

    NOTE: The purpose of this bill is to require those registering as a charity or athlete agent, and those seeking licensing as a private investigator or security guard to have a valid business registration in this state.

    Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.