HF 3289

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to auctioneers; exempting auctioneers from certain requirements
applicable to professional fund-raisers; amending Minnesota Statutes 2006,
section 309.515, subdivision 1.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2006, section 309.515, subdivision 1, is amended to read:

Subdivision 1.

Registration and reporting exemption.

Subject to the provisions of
subdivisions 2 and 3, sections 309.52 and 309.53 shall not apply to any of the following:

(a) Charitable organizations:

(1) which did not receive total contributions in excess of $25,000, exclusive of the
direct cost of prizes given to the public by the charitable organization in connection with
lawful gambling conducted in compliance with chapter 349, from the public within or
without this state during the accounting year last ended, and

(2) which do not plan to receive total contributions in excess of such amount from
the public within or without this state during any accounting year, and

(3) whose functions and activities, including fund-raising, are performed wholly by
persons who are unpaid for their services, and

(4) none of whose assets or income inure to the benefit of or are paid to any officer.

For purposes of this chapter, a charitable organization shall be deemed to receive in
addition to contributions solicited from the public by it, the contributions solicited from
the public by any other person and transferred to it. Any organization constituted for a
charitable purpose receiving an allocation from a community chest, united fund or similar
organization shall be deemed to have solicited that allocation from the public.

(b) A religious society or organization which is exempt from filing a federal annual
information return pursuant to Internal Revenue Code, section 6033(a)(2)(A)(i) and (iii),
and Internal Revenue Code, section 6033(a)(2)(C)(i).

(c) Any educational institution which is under the general supervision of the
commissioner of education, the Board of Trustees of the Minnesota State Colleges and
Universities, or the University of Minnesota or any educational institution which is
accredited by the University of Minnesota or the North Central Association of Colleges
and Secondary Schools, or by any other national or regional accrediting association.

(d) A fraternal, patriotic, social, educational, alumni, professional, trade or learned
society which limits solicitation of contributions to persons who have a right to vote
as a member. The term "member" shall not include those persons who are granted a
membership upon making a contribution as the result of a solicitation.

(e) A charitable organization soliciting contributions for any person specified by
name at the time of the solicitation if all of the contributions received are transferred
to the person named with no restrictions on the person's expenditure of it and with no
deductions whatsoever.

(f) A private foundation, as defined in section 509(a) of the Internal Revenue
Code of 1954, which did not solicit contributions from more than 100 persons during
the accounting year last ended.

new text begin (g) An auctioneer licensed and bonded under chapter 330 who is conducting a live
auction who has no access to the proceeds of the auction is not subject to the registration
and reporting requirements of this chapter, and is not considered a professional fund-raiser
for the purposes of subdivision 2.
new text end

Sec. 2. new text begin EFFECTIVE DATE.
new text end

new text begin This act is effective the day following final enactment.
new text end