Sec. A-1. 9 MRSA §5002, as enacted by PL 1977, c. 488, §1, is amended to read:
It is the intent of the Legislature to require the registration and financial reporting of charitable organizations, the registration and bonding of professional fund-raising counsels counsel and commercial co-venturers and the registration of professional solicitors.
Sec. A-2. 9 MRSA §5003, sub-§1, as amended by PL 1983, c. 277, §1, is further amended to read:
1. Charitable organization. "Charitable organization" means any person or entity, including any person or entity organized in a foreign state, which that is or holds itself out to be organized or operated for any charitable purpose and which or that solicits, accepts or obtains contributions from the public for any charitable purpose. A chapter, branch, area office or similar affiliate or any person soliciting contributions for any charitable purpose within the State for a charitable organization which that has its principal place of business outside the State shall be is considered a charitable organization for the purposes of this Act. For purposes of this chapter, an organization established for and serving bona fide religious purposes is not a charitable organization.
Sec. A-3. 9 MRSA §5003, sub-§3-A, as enacted by PL 1981, c. 456, Pt. A, §23, is amended to read:
3-A. Commissioner. "Commissioner" means the Commissioner of Business Professional and Financial Regulation.
Sec. A-4. 9 MRSA §5003, sub-§4-A is enacted to read:
4-A. Entity. "Entity" means any natural person, corporation, partnership, limited liability company, association or any other organization.
Sec. A-5. 9 MRSA §5003, sub-§5-C, as enacted by PL 1979, c. 678, §1, is amended to read:
5-C. Hospital. "Hospital" means an institution which that is engaged primarily in providing inpatient, outpatient or both inpatient and outpatient medical and psychiatric diagnostic and therapeutic services in the care and treatment of injured, disabled, sick or mentally ill persons who are under the supervision of a physician.
Sec. A-6. 9 MRSA §5003, sub-§§5-E and 5-F are enacted to read:
5-E. Membership. "Membership" means the relationship of a person to an organization that entitles that person to the privileges, professional standing, honors or other direct benefits of the organization in addition to the right to vote, elect officers and hold office in the organization.
5-F. Office. "Office" means the Office of Licensing and Registration within the Department of Professional and Financial Regulation.
Sec. A-7. 9 MRSA §5003, sub-§10, as amended by PL 1979, c. 127, §50, is further amended to read:
10. Professional solicitor. "Professional solicitor" means any person who for a financial or other consideration engages, employs, directs or contracts with any other person to solicit contributions or directs agents, servants or employees specially employed by or for a charitable organization for the purpose of soliciting contributions. A bona fide salaried officer or employee of a charitable organization, including an employee of a parent organization, shall not be deemed to be a professional solicitor unless that person's salary or other compensation is computed on the basis of funds to be raised or actually raised or the services performed by the person are performed on behalf of some organization other than the one which employs that person or a chapter, branch or affiliate thereof or entity that, alone or through its employees or agents, solicits contributions from the public on behalf of a charitable organization in exchange for a fee or other remuneration. "Professional solicitor" does not include a bona fide employee, bona fide salaried officer, attorney, accountant or investment counselor of a charitable organization.
Sec. A-8. 9 MRSA §5004, sub-§1, as amended by PL 1981, c. 456, Pt. A, §24, is repealed and the following enacted in its place:
1. Registration statements by charitable organizations. The following provisions govern registration statements by charitable organizations.
A. Unless exempt pursuant to section 5006, a charitable organization, that intends to solicit contributions in this State or to have contributions solicited on its behalf within this State shall file a registration statement with the office at least 30 days before solicitation in each year in which the organization is engaged in solicitation activities. The charitable organization shall identify any affiliate organizations or chapters on its registration statement.
B. A parent organization may file a consolidated registration statement for its affiliates, chapters and branches in this State and shall pay a single fee for such a consolidated registration statement.
C. Before approval of its statement by the office in accordance with section 5008, a charitable organization that is required to file an initial registration statement or annual renewal statement may not solicit contributions or have contributions solicited on its behalf by any other person, charitable organization, commercial co-venturer or professional solicitor, or participate in charitable sales promotion.
Sec. A-9. 9 MRSA §5004, sub-§2-A, as amended by PL 1991, c. 714, §1, is further amended to read:
2-A. Fee for registration statement. Charitable organizations shall pay an application fee of $50 and an initial and a renewal fee of $40 $100.
Sec. A-10. 9 MRSA §5004, sub-§3, as amended by PL 1991, c. 77, §1, is further amended by amending the first paragraph to read:
3. Content of registration statement. The commissioner shall prescribe the form of and issue registration statements. These statements shall must be sworn to or affirmed by the principal officer of any charitable organization and shall must contain the following information, which must be updated when any change occurs in the information filed:
Sec. A-11. 9 MRSA §5004, sub-§3, ¶J, as amended by PL 1991, c. 77, §1, is repealed.
Sec. A-12. 9 MRSA §5004, sub-§4 is enacted to read:
4. Renewal of registration as charitable organization. The following provisions govern the application and qualifications for renewal of a registration as a charitable organization.
A. A person or entity that holds a valid registration must submit a completed application for renewal before the date of expiration of the registration. A registration expires on the stated date of expiration. The department must 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 for the incompleteness. 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 submit:
(1) A financial report covering the most recently audited fiscal year;
(2) A filing fee of $50 and a renewal of registration fee of $100; and
(3) A completed application.
D. The complete renewal of registration application packet must include all the requirements identified in subsection 3 as well as the following.
(1) The applicant must submit an audited financial statement as required in section 5005, subsections 1 and 2. The content of the financial statement must be in accordance with the requirements under section 5004, subsection 3. 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. If a charitable organization files a financial statement in accordance with section 5005, subsection 3, paragraph C, federal Internal Revenue Service 990 and Schedule A forms or a 990 EZ form may be accepted as satisfactory evidence.
(2) The applicant must submit the nonrefundable renewal of registration fee of $100 plus a filing fee of $50 for charitable organizations receiving more than $30,000 in gross contributions.
Sec. A-13. 9 MRSA §5005, sub-§2, as amended by PL 1991, c. 714, §2, is further amended to read:
2. Fee for financial reports. A fee of $50 must be paid to the commissioner office when any financial report is filed.
Sec. A-14. 9 MRSA §5005-A is enacted to read:
A charitable organization shall maintain accurate and complete books and records of all fund-raising campaigns and shall keep those books and records available for inspection by the Attorney General or by the office for 3 years after the conclusion of each fund-raising campaign.
Sec. A-15. 9 MRSA §5006, as amended by PL 1989, c. 700, Pt. A, §35, is further amended to read:
§5006. Exemptions from registration requirements
1. Exemption. The following shall not be required to file registration statements pursuant to charitable organizations, persons and institutions are exempt from the filing requirements of section 5004:
A. Organizations which that solicit primarily within the their membership of the organization and where solicitation activities are conducted by the 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 requesting 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 which 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 which 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 such that amount, whether or not all such contributions are received during a calendar year, the charitable organization shall, within 30 days after the date of contributions reach $10,000, register with and report to the Secretary of State 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 which that are nonprofit and charitable.
3. Procedures for claiming exemption from registration. 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 a $10 fee 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 exemption to those organizations considered exempt under subsection 1.
Sec. A-16. 9 MRSA §5008, as amended by PL 1991, c. 714, §3, is further amended to read:
§5008. Registration and bonding of professional fund-raising counsel, professional solicitors and commercial co-venturers
1. Registration. A person or entity may not act as a professional fund-raising counsel, a professional solicitor or a commercial co-venturer before that person or entity has registered with the commissioner office. Applications for registration or reregistration must be in writing, under oath, in the form prescribed by the commissioner office and must be accompanied by an application fee in the amount of $50 and a registration fee in the amount of $200. Application fees are nonrefundable. The applicant shall, at the time of making application for registration or reregistration, file with and have approved by the commissioner office a bond, in which the applicant must be the principal obligor, in the sum of $10,000 $25,000, with one or more responsible sureties whose liability in the aggregate as such sureties will at least equal 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 is for a period of one year. The registration fee and bond required by this chapter must be waived for an auctioneer, when that auctioneer engages in conduct for which that auctioneer is already bonded, who is licensed by the Department of Professional and Financial Regulation and who has otherwise complied with the requirements of Title 32, chapter 5-A.
1-A. Renewal of registration as professional solicitor, professional fund-raising counsel or commercial co-venturer. The following provisions govern application and qualification for renewal registration as a professional solicitor, professional fund-raising counsel or commercial co-venturer.
A. An entity that holds a valid registration must submit a completed application for renewal before the date of expiration of the registration. A registration expires on the stated date of expiration. The office must 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 for the incompleteness. If no such letter is included, the incomplete application must be returned for completion.
C. The complete application packet must include:
(1) All forms required in this section;
(2) 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 renewal of registration fee.
D. A professional solicitor, professional fund-raising counsel or commercial co-venturer that submits an application for renewal of registration after the expiration date must submit:
(1) A bond in the sum of $25,000 that expires on the stated date of expiration;
(2) A renewal of registration fee of $200; and
(3) The completed original application.
E. Annual reports must be submitted on a form provided by the office 60 days before the registration expiration date. The reports must state, at a minimum, the following:
(1) For a professional solicitor or professional fund-raising counsel:
(a) The person's address and telephone number;
(b) The person's registration number;
(c) The name, address and telephone number of each charitable organization;
(d) The registration number of each charitable organization in division (c);
(e) The date or dates of fund-raising campaigns;
(f) The total amount raised by the professional solicitor or professional fund-raising counsel; and
(g) The total amount received by each charitable organization in division (c); and
(2) For a commercial co-venturer:
(a) The person's name, address and telephone number;
(b) The person's registration number;
(c) The name, address and telephone number of each charitable organization;
(d) The registration number of each charitable organization in division (c);
(e) The date or dates of fund-raising campaigns;
(f) The total amount raised by the commercial co-venturer; and
(g) The total amount received by each charitable organization in division (c).
F. Failure to file the annual report may result in disciplinary action as provided under Title 10, section 8003, subsection 5. Applications for renewal of registration may not be accepted unless the annual report has been filed with the department.
2. Records. A professional fund-raising counsel, professional solicitor or commercial co-venturer shall maintain accurate and complete books and records of his fund-raising activities and telephone solicitation scripts and shall keep such 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 he that person acts as a professional fund-raising counsel, professional solicitor or commercial co-venturer.
3. Annual reports. A professional fund-raising counsel, professional solicitor or commercial co-venturer shall file an annual report which states the names and addresses of all charitable organizations for whom any solicitation was conducted, the total amount raised and the amount paid to the charitable organization on a form with such verification as the commissioner shall prescribe by regulation.
Sec. A-17. 9 MRSA §5009, as amended by PL 1981, c. 456, Pt. A, §35, is repealed and the following enacted in its place:
§5009. Contracts to be filed and retained
1. Contracts to be filed. All contracts entered into between a professional fund-raising counsel, a professional solicitor 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 fund-raising counsel, professional solicitor 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 provisions:
A. A statement of the charitable purpose for which a solicitation campaign is being conducted; and
B. A statement of the percentage of gross proceeds collected to be paid to the charitable organization.
True and correct copies of contracts must be kept on file in the offices of the charitable organization and the professional fund-raising counsel, professional solicitor 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.
2. Contracts to be retained by office. True and correct copies of contracts under subsection 1 must be kept on file by the office for 3 years.
Sec. A-18. 9 MRSA §5012, sub-§1, as enacted by PL 1989, c. 55, §4, is amended to read:
1. Solicitation of contributions. Any person or entity to solicit contributions from a prospective donor without fully disclosing to the prospective donor, at the time of solicitation but prior to the request for contributions, the name and address of the charitable organization for which the solicitation is being conducted; and
Sec. A-19. 9 MRSA §5016, as corrected by RR 1993, c. 1, §19, is amended to read:
All fees collected under this chapter must be credited to the Department of Professional and Financial Regulation office to carry out the purposes of this chapter.
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