Chapter 402
S.P. 659 - L.D. 1842
PART A
Sec. A-1. 9 MRSA §5002, as amended by PL 2005, c. 497, §1, is further amended to read:
It is the intent of the Legislature to require the registration licensure and financial reporting of charitable organizations, professional solicitors, professional fund-raising counsel and commercial co-venturers and the bonding of professional solicitors and commercial co-venturers.
Sec. A-2. 9 MRSA §5003, sub-§3, as amended by PL 2005, c. 497, §2, is further amended to read:
3. Commercial co-venturer.
"Commercial co-venturer" means any person who, for profit, is regularly and primarily engaged in trade or commerce in this State, other than in connection with the raising of funds for charitable organizations or purposes, and who conducts a sale, performance, event or collection and sale of donated goods that is advertised in conjunction with the name of any charitable organization. Any such person who will benefit in good will only may not be considered a commercial co-venturer if the collection and distribution of the proceeds of the sale, performance or event, or the collection and sale of donated goods, are supervised and controlled by the benefiting charitable organization. Any such person whose annual contributions to charitable organizations do not exceed $10,000 is exempt from the registration licensure requirement under section 5002.
Sec. A-3. 9 MRSA §5004, as amended by PL 2005, c. 497, §§6 to 8, is further amended to read:
Charitable organizations shall register must be licensed as follows.
1. License applications by charitable organizations.
The following provisions govern registration statements license applications by charitable organizations.A. Unless exempt pursuant to section 5006, a charitable organization that intends to solicit, accept or obtain contributions in this State or to have contributions solicited, accepted or obtained on its behalf within this State shall file a registration statement license application with the office at least 30 days before soliciting, accepting or obtaining contributions in each year in which the organization is engaged in soliciting, accepting or obtaining contributions. The charitable organization shall identify any affiliate organizations or chapters on its registration statement license application.
B. A parent organization may file a consolidated registration statement license application for its affiliates, chapters and branches in this State and shall pay a single fee for such a consolidated registration statement license application.
C. Before approval of its statement issuance of a license by the office in accordance with section 5008, a charitable organization that is required to file an initial registration statement license application or annual renewal statement application may not solicit, accept or obtain contributions or have contributions solicited, accepted or obtained on its behalf by any other person, charitable organization, commercial co-venturer or professional solicitor, or participate in charitable sales promotion.
2-A. Fee for license application.
Charitable organizations shall pay the required application fee and the required , initial fee and the required renewal fee as set under section 5015-A. The application fee is nonrefundable.
3. Content of license application.
The commissioner shall prescribe the form of registration statements. These statements A license application must be sworn to or affirmed by the principal officer of any charitable organization and must contain the following information, which must be updated within 10 days when any change occurs in the information filed:A. The name of the organization and the purpose for which it was organized;
B. The principal address of the organization and the address of any offices in this State, or, if the organization does not maintain an office, the name and address of the person having custody of its financial records;
C. The names and addresses of any chapters, branches or affiliates in this State;
D. The place where and the date when the organization was legally established, the form of its organization and a reference to any determination of its tax-exempt status under the United States Internal Revenue Code;
E. The names and addresses of the officers, directors or trustees and the principal salaried executive staff officer;
F. A statement as to whether the organization intends to solicit contributions from the public directly or have such done on its behalf by others;
G. The name and address of any professional fund-raising counsel, professional solicitor or commercial co-venturer who acts or will act on behalf of the charitable organization and terms of remuneration of the counsel, solicitor or co-venturer;
H. A statement as to whether the organization is authorized by any other governmental authority to solicit contributions and whether it is or has ever been enjoined by any court from soliciting contributions;
I. The purpose or purposes for which the contributions to be solicited shall will be used;
K. The name or names under which it intends to solicit contributions;
L. The names of the individuals or officers of the organizations who will have final responsibility for the custody of the contributions;
M. The names of the individuals or officers of the organization responsible for the final distribution of the contributions;
N. The total amount of money received as contributions during the organization's preceding fiscal year and the dates of the fiscal year; and
O. The estimated percentage of each dollar contribution that will be expended in Maine; and
P. A determination letter from the federal Internal Revenue Service, confirming the tax-exempt status of the charitable organization.
4. Renewal of licensure as charitable organization.
The following provisions govern the application and qualifications for renewal of a registration license as a charitable organization.A. A person or entity that holds a valid registration license must submit to the office a completed application for renewal prior to the date of expiration of the registration license. A registration expires on the stated date of expiration. The department shall mail an application form to the registrant's last known address not less than 30 days prior to the expiration date of the current registration.
B. An application for license renewal may not be considered for approval until it is complete. If the application is incomplete, the applicant must include a letter documenting the specific reasons the application is incomplete. If that letter is not included, the incomplete application must be returned for completion.
C.
A charitable organization that submits an application for renewal after the expiration date must include with the application:
(1) A financial report covering the most recently audited fiscal year;
(2) The required filing fee and the required fee for license renewal of registration fee as set under section 5015-A; and
(3) A completed application.
D.
The complete packet for renewal of registration license application must include all the requirements identified in subsection 3 as well as the following:
(1) An audited financial statement, including federal Internal Revenue Service 990 and Schedule A forms or a 990 EZ form. Failure to file an audited financial statement of the organization's most recent audited fiscal year may be grounds for disciplinary action as provided under Title 10, section 8003, subsection 5. The office shall adopt rules governing the content of the audited financial statement. Rules adopted pursuant to this subparagraph are routine technical rules pursuant to Title 5, chapter 375, subchapter 2-A ; and .
(2) The nonrefundable fee for renewal of registration.
Sec. A-4. 9 MRSA §5005-B, as enacted by PL 2003, c. 541, §10, is amended to read:
1. Content of report.
A charitable organization shall submit to the office an annual fund-raising activity report that reflects data from the preceding calendar year, on a form prescribed by the office, at least 60 days prior to the registration license expiration date. The report must state, at a minimum, the following:A. The charitable organization's name, mailing address, telephone number and registration license number;
B. The name, mailing address, telephone number and registration license number of each professional solicitor, professional fund-raising counsel and commercial co-venturer with which the charitable organization contracts;
C. The date of each fund-raising campaign;
D. The total dollar amount raised during each fund-raising campaign;
E. The total dollar amount received by the charitable organization from each fund-raising campaign and for the year;
F. The total dollar amount retained by any professional solicitor from each fund-raising campaign and for the year;
G. The total amount paid to any professional fund-raising counsel from each fund-raising campaign and for the year; and
H. The total amount received from any commercial co-venturer from each fund-raising campaign and for the year.
2. Failure to file; discrepancies.
Failure to file the annual fund-raising activity report required under this section or disagreement between the report filed by the charitable organization and that submitted by the professional solicitor, professional fund-raising counsel or commercial co-venturer with which the charitable organization has contracted may result in disciplinary action as provided under Title 10, section 8003, subsection 5 5-A.
3. Contracting with unlicensed entities prohibited.
A charitable organization may not contract with an unregistered unlicensed professional solicitor, professional fund-raising counsel or commercial co-venturer. A violation of this subsection may result in disciplinary action as provided under Title 10, section 8003, subsection 5 5-A.
Sec. A-5. 9 MRSA §5006, as amended by PL 2001, c. 323, §5, is further amended to read:
1. Exemption.
The following charitable organizations, persons and institutions are exempt from the filing license requirements of section 5004: A. Organizations that solicit primarily within their membership and where solicitation activities are conducted by members. For purposes of this paragraph, the term "membership" does not include those persons who are granted a membership upon making a contribution as a result of a solicitation;
C. Persons soliciting contributions for the relief of any individual specified by name at the time of the solicitation, when all of the contributions collected, without any deductions whatsoever, are turned over to the named beneficiary for that individual's use;
D. Charitable organizations that do not intend to solicit and receive and do not actually solicit or receive contributions from the public in excess of $10,000 during a calendar year or do not receive contributions from more than 10 persons during a calendar year, if all fund-raising activities are carried on by persons who are unpaid for their services and if no part of the assets or income inures to the benefit of or is paid to any officer or member. If a charitable organization that does not intend to solicit or receive contributions from the public in excess of $10,000 during a calendar year does actually solicit or receive contributions in excess of that amount, whether or not all such contributions are received during a calendar year, the charitable organization shall, within 30 days after the date contributions reach $10,000, register must be licensed with and report to the Office of Licensing and Registration as required by this Act;
E. Educational institutions, the curriculums of which in whole or in part are registered or approved by the Department of Education, either directly or by acceptance of accreditation by an accrediting body recognized by the Department of Education, and organizations operated by the student bodies of such institutions; and
F. Hospitals that are nonprofit and charitable.
3. Procedures for claiming exemption from licensure.
A charitable organization claiming to be exempt under subsection 1 must submit to the office annually on forms prescribed by that office and accompanied by the required fee as set under section 5015-A, a sworn statement setting forth the name and address of the organization and its principal executive personnel, the purpose of the organization and the factual basis for the exemption. The organization claiming exemption must include a copy of any financial statement, report or return filed with the federal Internal Revenue Service. The office shall issue annually a letter of an exemption to those organizations considered exempt under subsection 1.
Sec. A-6. 9 MRSA §5008, as amended by PL 2005, c. 497, §§9 to 12, is further amended to read:
1. Licensure.
A person or entity may not act as a professional solicitor, a professional fund-raising counsel or a commercial co-venturer before that person or entity has registered with received a license from the office. Applications for registration or reregistration initial or renewal licensure must be in writing, under oath, in the form prescribed by the office and accompanied by an application fee and a registration license fee as set under section 5015-A. The application fee is nonrefundable. The applicant, except for applicants that are registering licensed as professional fund-raising counsel, shall, at the time of making application for registration or reregistration initial or renewal licensure, file with and must have approved by the office a bond, in which the applicant must be the principal obligor and the State the obligee, in the sum of $25,000, with one or more responsible sureties whose liability in the aggregate as such sureties at least equals that sum. The bond runs to any person or entity who may have a cause of action against the principal obligor of the bond for any malfeasance or misfeasance in the conduct of charitable solicitation in this State. Registration Licensure is for a period of one year.
1-A. Renewal of license as professional solicitor, professional fund-raising counsel or commercial co-venturer.
The following provisions govern application and qualification for renewal registration licensure as a professional solicitor, professional fund-raising counsel or commercial co-venturer.A. An entity that holds a valid registration license must submit a completed application for renewal before the date of expiration of the registration license. A registration expires on the stated date of expiration. The office shall mail an application form to the registrant's last known address.
B. An application may not be considered for approval until complete. If the application is incomplete, the applicant must include a letter documenting the specific reasons the application is incomplete. If no such letter is included, the incomplete application must may be returned for completion.
C.
The complete application packet must include:
(1) All forms required in this section;
(2) Except for professional fund-raising counsel, a bond approved by the department in the sum of $25,000 with one or more responsible sureties whose liability in the aggregate as such sureties at least equals that sum. The bond must expire on the stated date of expiration and be kept on file in the office for 3 years; and
(3) A $200 license renewal of registration fee as set under section 5015-A.
D.
A professional solicitor or commercial co-venturer who submits an application for a license renewal of registration application must submit:
(1) A bond in the sum of $25,000 that expires on the stated date of expiration;
(2) A license renewal of registration fee as set under section 5015-A; and
(3) The completed application.
G.
A professional fund-raising counsel who is applying for a license renewal of registration must submit:
(1) A license renewal of registration fee as set under section 5015-A; and
(2) A completed renewal application.
2. Records.
A professional solicitor, professional fund-raising counsel or commercial co-venturer shall maintain accurate and complete books and records of fund-raising activities and telephone solicitation scripts and shall keep those books and records available for inspection by the Attorney General or the office for a period of 3 years after the conclusion of each specific instance in which that person acts as a professional solicitor, professional fund-raising counsel or commercial co-venturer.
3-A. Annual fund-raising activity reports to be filed by professional solicitors, professional fund-raising counsel and commercial co-venturers.
Filing of annual fund-raising activity reports by professional solicitors, professional fund-raisers and commercial co-venturers is governed by this subsection.A.
Each professional solicitor, professional fund-raising counsel or commercial co-venturer shall file with the office an annual fund-raising activity report on a form prescribed by the office at least 60 days prior to the registration license expiration date that reflects data from the preceding calendar year. The report must state, at a minimum, the following:
(1) The name, mailing address, telephone number and registration license number of the professional solicitor, professional fund-raising counsel or commercial co-venturer making the report;
(2) The name, mailing address, telephone number and registration license number of each charitable organization with which the professional solicitor, professional fund-raising counsel or commercial co-venturer has contracted;
(3) The date of any fund-raising campaign in which the professional solicitor, professional fund-raising counsel or commercial co-venturer was involved;
(4) The total dollar amount raised during each fund-raising campaign;
(5) The total dollar amount remitted to the charitable organization from each fund-raising campaign and for the year;
(6) The total dollar amount retained by the professional solicitor from each fund-raising campaign and for the year;
(7) The total dollar amount received by the professional fund-raising counsel from each fund-raising campaign and for the year; and
(8) The total dollar amount remitted by the commercial co-venturer from each fund-raising campaign and for the year.
B. Failure to file the annual fund-raising activity report or disagreement between that report and the report submitted by the charitable organization with which the professional solicitor, professional fund-raising counsel or commercial co-venturer has contracted may result in disciplinary action as provided under Title 10, section 8003, subsection 5 5-A.
C. Contracting with an unregistered unlicensed entity is prohibited and may result in disciplinary action as provided under Title 10, section 8003, subsection 5 5-A.
4. Exemption.
This section does not apply to a national bank, a federal savings bank, a subsidiary of a national bank or federal savings bank or any other financial institution or credit union chartered under the laws of the United States or any state and subject to supervision and regulation by a federal financial regulatory agency.
Sec. A-7. 9 MRSA §5009, sub-§1, as amended by PL 2003, c. 541, §13, is further amended to read:
1. Contracts to be filed.
All contracts entered into between a professional solicitor, a professional fund-raising counsel or a commercial co-venturer and any charitable organization, whether or not the organization is exempted under section 5006, must be in writing, and a true and correct copy of each contract must be filed by the professional solicitor, professional fund-raising counsel or commercial co-venturer who is a party to the contract with the office before services are performed under the contract. The contract must contain the following:A. A statement of the charitable purpose for which a solicitation campaign is being conducted;
B. In the case of a professional solicitor, a statement of the percentage of gross proceeds collected to be paid to the charitable organization; and
C. The signatures and legibly printed or typed names of individuals representing the contracting parties.
True and correct copies of contracts Contracts must be kept on file in the offices of the charitable organization and the professional solicitor, professional fund-raising counsel or commercial co-venturer during the term of the contract and for 3 years after the date of solicitation of contributions provided for in the contract.
Sec. A-8. 9 MRSA §5009, sub-§2, as enacted by PL 1999, c. 386, Pt. A, §17, is repealed.
Sec. A-9. 9 MRSA §5016, as amended by PL 1999, c. 386, Pt. A, §19, is repealed.
Sec. A-10. 9 MRSA §5017, as amended by PL 2005, c. 497, §13, is repealed and the following enacted in its place:
The commissioner may deny, refuse to renew a license or impose the disciplinary sanctions authorized under Title 10, section 8003, subsection 5-A for any of the reasons enumerated in Title 10, section 8003, subsection 5-A, paragraph A.