House of Representatives

HB 2396

charitable solicitors; disclosure and responsibility

Sponsors: Representatives Anderson, Pierce, Cooley, et al.

 

DPA

 S/E

Committee on Human Services

W/D

Committee on Commerce & Economic Development

DPA

Caucus and COW

DPA

Third Read

 

  X

As Transmitted to the Governor

HB 2396 permits the Secretary of State to revoke or deny the registration of a charitable organization or fund raiser if specified provisions are not met and establishes requirements for independent solicitors to follow when soliciting.

 

 Provisions

·          Defines an independent solicitor as a person who for profit engages to solicit on behalf of a charitable organization [organization] or on behalf of a contracted fund raiser [fund raiser].

·          Stipulates that an organization exempt from federal income taxes at the time of initial registration shall submit a copy of the IRS’s written determination of the exemption to the Secretary of State [Secretary].

·          Requires the previous fiscal year return to be used when an organization files with the Secretary.

·          Authorizes the Secretary to deny organization applicant if the name is misleading or deceptively similar to any existing, licensed, or registered name.

·          Allows the Secretary to deny an application or revoke a registration of an organization or fund raiser for any of the following reasons: 1) material in the application is misstated or omitted; 2)  an employee, member, officer, or director having solicitation responsibilities or any other person holding proprietary or beneficial interest in the organization has been convicted of a felony related to solicitation, unless civil rights have been restored; 3) court order or judgement that the organization has engaged in deceptive, fraudulent or unlawful business practices related to solicitation; 4) violating provisions relating to the solicitation of funds for charitable purposes; or 5)  bouncing a check to the Secretary.

·          Requires the Secretary to notify and explain a denial within 10 days of receiving an application.

·          Requires independent solicitors when soliciting to relay the following: 1) identify themselves as for-profit solicitors who are seeking contributions on behalf of an organization or fund raiser; 2)  state the legal name of the organization or fund raiser; 3)  reveal the legal name of the independent solicitor; and 4)  state that the purpose for soliciting is to raise charitable funds.

·          Prescribes a Class 1 misdemeanor [6 months/$2,500] to an independent solicitor who fails to comply with the specified laws.

·          Clarifies penalties for an organization that fails to file a registration statement with the Secretary.

·          Contains technical and conforming changes.

 

 

 

 

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45th Legislature                   

Second Regular Session     3              May 15, 2002

 

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