When embarking on your first foray into commercial co-venture land, you may have learned that a commercial co-venturer has to register in six states. But how much do you know about what that entails? Here’s a primer:
ALABAMA
(Ala. Code § 13A-9-70)
Annual registration:
1. Complete the registration form
2. Obtain a surety bond in the amount of $10,000.
3. Pay the initial registration and annual fee of $100.00
4. Send to the Alabama Attorney General/Consumer Protection
5. Registration is good until the next September 30th.
For each promotion:
1. File a copy of the ccv contract with the Attorney General within 10 days of execution.
2. The promotion cannot start until 15 days after the contract is filed.
3. File a closing statement with the Attorney General disclosing gross receipts and expenditures within 90 days of termination of the ccv contract.
Failure to comply penalty of up to $5,000
HAWAI’I
(Haw. Rev. Stat. § 467B-5.5)
1. Complete Written Consent Form with Department of Attorney General/Tax Division.
2. File at least 10 days prior to the start of the promotion.
3. Prepare a final accounting at the completion of the promotion and file with Attorney General, if requested, within twenty days.
Failure to comply penalties of up to $1,000 per act and up to $100 per each day a violation continues.
ILLINOIS
(14 Ill. Admin. Code § 480.30)
See here
Annual registration:
1. Complete Registration Statement and Financial Information Form to register as a charitable trustee if you have held $4,000 or more in charitable assets at any time in the previous twelve months.
2. Pay $15 registration fee.
3. File with Attorney General’s Office within 6 months of initially receiving charitable assets.
4. Submit Annual Report Form within 6 months of end of fiscal year, unless trustee holds less than $25,000. $15 fee.
5. Annual registration is based on trustee’s fiscal year.
Failure to comply penalty of $500 to $1,000.
MASSACHUSETTS
(Mass. L. Ch. 68, § 24)
See here
Annual registration
1. Complete the Registration Statement
2. Obtain a $25,000 surety bond
3. Pay the filing fee of $200
4. Send the Registration Statement, bond and fee to Attorney General’s Office
5. Registration is good for calendar year.
For each promotion:
1. File a copy of the ccv contract within 10 days of the start of the promotion.
2. Complete and file an Annual Financial Report for all activity within the calendar year; due February 28 of following year.
Failure to comply penalty of up to $500 per day up to a maximum of $25,000.
MISSISSIPPI
(15 Miss. Admin. Code, Rule 3.17)
See here
1. Complete the online registration form. ALL FILINGS MUST BE ONLINE ONLY.
2. Provide a “User contact” of the co-venturer – MS will then send an email to the user contact to login and complete the registration process.
3. File a Notice of Charitable Sales Promotion and a copy of the ccv contract at least 7 days prior to start of promotion.
4. Pay a $50 filing fee.
5. File a financial accounting of the promotion no later than 30 days after the end of the promotion if the promotion is less than 1 year. If the promotion is longer than 1 year, file a financial accounting no later than 30 days after the anniversary date of the first notice of promotion filing and a final accounting within 30 days of the end of the promotion.
SOUTH CAROLINA
(S.C Code §§ 33-56-70; 33-56-110(A))
Annual registration:
1. Complete the annual registration form.
2. Pay a $50 fee.
3. Send the annual registration form and fee to Secretary of State/Public Charities Division.
For each promotion:
1. File a Notice of Solicitation – CCV and a copy of the ccv contract at least 10 days prior to start of promotion.
2. Submit a Joint Financial Report for Commercial Co-Venture for each promotion within 90 days of the end of the promotion. If the promotion is longer than 1 year, file a financial report within 90 days of the anniversary of the start of the promotion and a final report within 90 days of the end of the promotion.
Failure to comply penalty of up to $2,000.
Important tips:
1. Give yourself at least 1 month to prepare for registration. Many registration forms require, in addition to a signed contract, financial and other company/charity information which will need to be gathered prior to filing.
2. Meet the deadlines. States may be lenient for reasonable excuses, but they can still impose penalties.
3. Forms are available online.
4. Watch out for Mississippi. The new online filing requirements for Mississippi are a bit cumbersome, especially by requiring a two-step verification process. And now that it’s online, it’s easier for Mississippi to track late filings.
5. You may want assistance. Just like you may initially think it’s a good idea to try to fix the leak under the sink yourself, to then realize that plumbers charge $300 per hour for a reason, experience with the ccv filing requirements and procedures as well as familiarity with state nuances that just aren’t apparent from the website or statutes may help avoid a flood of headaches.
