SENATE AMENDED PRIOR PRINTER'S NOS. 400, 2413, 2670 PRINTER'S NO. 3469
No. 365 Session of 1989
INTRODUCED BY DALEY, PETRONE, TRELLO, LESCOVITZ, COLAIZZO, KASUNIC, ROBINSON, VEON, WOZNIAK, DeWEESE, MELIO, LAUGHLIN, F. TAYLOR, HALUSKA, MAINE, WAMBACH, TANGRETTI, COWELL, COLAFELLA, LaGROTTA, DeLUCA, GIGLIOTTI, OLASZ, PISTELLA, B. D. CLARK, SALOOM, PETRARCA, VAN HORNE, MARKOSEK, MRKONIC, MICHLOVIC, FEE, CORRIGAN, JAROLIN, GRUITZA, GEORGE, DOMBROWSKI, STEIGHNER, CESSAR, FARMER, GAMBLE AND ITKIN, FEBRUARY 8, 1989
SENATOR RHOADES, STATE GOVERNMENT, IN SENATE, AS AMENDED, MAY 1, 1990
AN ACT 1 Amending the act of April 30, 1986 (P.L.107, No.36), entitled <-- 2 "An act relating to charitable organizations; requiring the 3 registration of such organizations; and regulating the 4 solicitation of money and property by, or on behalf of, 5 charitable organizations," further providing for soliciting 6 for a named individual. 7 PROVIDING FOR THE REGISTRATION AND REGULATION OF SOLICITATIONS <-- 8 BY CHARITABLE ORGANIZATIONS, PROFESSIONAL FUNDRAISERS AND 9 OTHER SOLICITORS; IMPOSING ADDITIONAL POWERS ON THE 10 DEPARTMENT OF STATE AND THE OFFICE OF ATTORNEY GENERAL; 11 PRESCRIBING CIVIL AND CRIMINAL PENALTIES; AND MAKING A 12 REPEAL. 13 TABLE OF CONTENTS 14 SECTION 1. SHORT TITLE. 15 SECTION 2. LEGISLATIVE INTENT. 16 SECTION 3. DEFINITIONS. 17 SECTION 4. POWERS AND DUTIES OF SECRETARY. 18 SECTION 5. REGISTRATION OF CHARITABLE ORGANIZATIONS; FINANCIAL 19 REPORTS; FEES; FAILURE TO FILE.
1 SECTION 6. EXEMPTIONS FROM REGISTRATION. 2 SECTION 7. SHORT FORM REGISTRATION. 3 SECTION 8. REGISTRATION OF PROFESSIONAL FUNDRAISING COUNSEL, 4 AND CONTRACTS. 5 SECTION 9. REGISTRATION OF PROFESSIONAL SOLICITORS; CONTRACT 6 AND DISCLOSURE REQUIREMENTS; BONDS; RECORDS; 7 BOOKS. 8 SECTION 10. CONTRACTS VOIDABLE BY CHARITABLE ORGANIZATIONS. 9 SECTION 11. INFORMATION FILED TO BECOME PUBLIC RECORDS. 10 SECTION 12. RECORDS TO BE KEPT BY CHARITABLE ORGANIZATIONS, 11 PROFESSIONAL FUNDRAISING COUNSELS AND 12 PROFESSIONAL SOLICITORS; INSPECTION; RETENTION. 13 SECTION 13. LIMITATION ON ACTIVITIES OF CHARITABLE 14 ORGANIZATIONS; DISCLOSURE REQUIREMENTS. 15 SECTION 14. RECIPROCAL AGREEMENTS. 16 SECTION 15. PROHIBITED ACTS. 17 SECTION 16. INVESTIGATION; SUBPOENAS; INJUNCTIONS; COURT 18 ORDERS. 19 SECTION 17. ADMINISTRATIVE ENFORCEMENT AND PENALTIES. 20 SECTION 18. CRIMINAL PENALTIES. 21 SECTION 19. CIVIL PENALTIES. 22 SECTION 20. ADDITIONAL REGULATIONS BY COUNTIES, MUNICIPALITIES 23 OR CONSOLIDATED GOVERNMENT. 24 SECTION 21. CHARITABLE ORGANIZATIONS DEEMED FIDUCIARY. 25 SECTION 22. PRIOR REGISTRATION UNAFFECTED. 26 SECTION 23. REPEALS. 27 SECTION 24. APPROPRIATION. 28 SECTION 25. EFFECTIVE DATE. 29 The General Assembly of the Commonwealth of Pennsylvania 30 hereby enacts as follows: 19890H0365B3469 - 2 -
1 Section 1. Section 12 of the act of April 30, 1986 (P.L.107, <-- 2 No.36), known as the Charitable Organization Reform Act, is 3 amended to read: 4 Section 12. Records to be kept by charitable organizations, 5 professional fundraising counsel and professional 6 solicitors. 7 (a) General rule.--Every charitable organization subject to 8 the provisions of this act shall, in accordance with the rules 9 and regulations prescribed by the department, keep true fiscal 10 records as to its activities in Pennsylvania as may be covered 11 by this act in such form as will enable it accurately to provide 12 the information required by this act. Upon demand, such records 13 shall be made available to the department, the bureau or the 14 Attorney General for inspection. Such records shall be retained 15 for a period of at least three years after the end of the period 16 of registration to which they relate. 17 (b) Soliciting for named individual.-- 18 (1) A person or charitable organization soliciting 19 contributions for the benefit of a named individual who 20 receives in excess of $5,000 shall hold the funds collected 21 in trust and shall be subject to the provisions of 20 Pa.C.S. 22 Ch.71 (relating to trust estates). [A person who makes] The 23 funds collected shall be invested according to the terms of 24 the trust instrument with an individual or corporate 25 fiduciary, subject to its agreement to accept the account. 26 (2) A person or charitable organization soliciting 27 contributions for the benefit of a named individual who 28 receives in excess of $10,000 shall petition the court of 29 common pleas of the county in which the trust shall be 30 established for approval by the court of the provisions of 19890H0365B3469 - 3 -
1 the written trust instrument by which such trust shall be 2 established, and for approval of the trustee thereof. The 3 funds collected shall be invested according to the terms of 4 the trust instrument with an individual or corporate 5 fiduciary, subject to its agreement to accept the account. 6 (3) If there is a contribution to a person or charitable 7 organization in response to a solicitation for the benefit of 8 a named individual, the department shall have the right to 9 petition the court of common pleas of the county in which the 10 trust is located for an accounting on behalf of all 11 contributors. For purposes of this subsection, the trust 12 shall be established in the county where the principal place 13 of business of the charitable organization is located. If a 14 charitable organization has its principal place of business 15 outside this Commonwealth, all of the following apply: 16 (i) If a chapter, branch, area, office or similar 17 affiliate is soliciting contributions within this 18 Commonwealth, the trust shall be established in the 19 county where the principal place of business of the 20 chapter, branch, area, office or similar affiliate is 21 located. 22 (ii) If a person is soliciting contributions within 23 this Commonwealth, the trust shall be established in the 24 county where the principal place of business or the 25 residence of the person is located. 26 Section 2. The act is amended by adding a section to read: 27 Section 14.1. Named individual receiving health care. 28 (a) General rule.--If services which, in the estimation of a 29 health care provider, are valued in excess of $5,000 are 30 requested for a named individual from a health care provider in 19890H0365B3469 - 4 -
1 this Commonwealth and if contributions are being, have been or 2 will be solicited for the benefit of the individual which either 3 expressly or implicitly are intended in whole or in part to pay 4 for the services to be provided by the health care provider, 5 then, prior to the commencement of services by the health care 6 provider or any other time requested by the health care 7 provider, the individual or the individual's legal 8 representative shall do all of the following: 9 (1) Provide written verification to the health care 10 provider that funds collected for the benefit of the 11 individual are being, have been, or will be collected, 12 handled and dispersed in accordance with the applicable 13 Federal or state law. 14 (2) Provide to the health care provider the identity and 15 location of all funds and trusts established for the benefit 16 of the individual and the names, addresses and telephone 17 numbers of all trustees or holders of such funds. 18 (3) As collected funds are or become available for the 19 benefit of the individual, do all of the following: 20 (i) Authorize payment to the health care provider 21 from collected funds reasonable deposits or advanced 22 payments required to cover all or part of the estimated 23 cost of the services. 24 (ii) Deposit with the corporate fiduciary in this 25 Commonwealth an amount of the collected funds necessary 26 to cover estimated potential costs for the services. The 27 amount under this subparagraph shall be determined by the 28 health care provider to be the greater of the following: 29 (A) The maximum charges that have been accrued 30 by patients undergoing the same or similar procedures 19890H0365B3469 - 5 -
1 or treatment by the health care provider. 2 (B) The actual costs for the particular services 3 estimated to be necessary for the care and treatment 4 of the individual. 5 (b) Trust.-- 6 (1) The trustee has the power and duty to release money 7 to the health care provider on a periodic basis for services 8 rendered or goods supplied, upon billing by the health care 9 provider, if any of the following applies: 10 (i) The named individual or the individual's legal 11 representative approves the bill. 12 (ii) The bill is submitted to the named individual 13 and the individual's legal representative, if there is 14 one; and no written objection is given to the trustee 15 within 30 days of submission. 16 (2) The trustee may not transfer, distribute or pay 17 funds, except in the manner set forth in paragraph (1), until 18 the named individual or the individual's legal representative 19 has provided to the trustee written verification from each 20 health care provider that payment has been made for all goods 21 and services provided to or for the benefit of the 22 individual. 23 (c) Insurance.-- 24 (1) A patient to whom services are rendered in this 25 Commonwealth by a health care provider under this section 26 shall be deemed to authorize the health care provider to 27 reveal to an insurance company or a governmental agency all 28 of the following: 29 (i) The estimated cost of the services or goods to 30 be provided for the patient. 19890H0365B3469 - 6 -
1 (ii) The actual cost incurred to date for services 2 or goods provided to the patient. 3 (iii) The amounts of the cost covered by health or 4 other insurance. 5 (iv) The amounts of the cost already paid by 6 insurance or other sources. 7 (v) The existence of any other source of funds for 8 the payment of the cost services, including all 9 charitable funds. 10 (vi) The names and addresses of all banks, trustees 11 or other persons holding funds for the benefit of the 12 patient. 13 (vii) The estimated length of time the patient will 14 be in need of services or goods from the particular 15 health care provider. 16 (2) If the patient has health or other insurance with an 17 insurance company licensed to do business in this 18 Commonwealth, and that insurance covers part or all of the 19 services provided, then, upon written verification to the 20 health care provider from the insurer of the existence of the 21 insurance and the scope of coverage, the health care provider 22 shall reduce the estimated potential costs under subsection 23 (a)(3)(ii) by the amount of the cost covered by the 24 insurance. 25 (d) Other payment.--If the patient has paid to the health 26 care provider a deposit or advance payment or if other payments 27 have been made to the health care provider specifically for the 28 benefit of the patient, the health care provider shall reduce 29 the estimated potential costs under subsection (a)(3)(ii) by the 30 amount of the payments. 19890H0365B3469 - 7 -
1 (e) Other remedies.--Nothing in this section shall limit a 2 health care provider or patient from pursuing any other remedy 3 available at law or in equity. 4 Section 3. This act shall take effect in 60 days. 5 SECTION 1. SHORT TITLE. <-- 6 THIS ACT SHALL BE KNOWN AND MAY BE CITED AS THE SOLICITATION 7 OF FUNDS FOR CHARITABLE PURPOSES ACT. 8 SECTION 2. LEGISLATIVE INTENT. 9 IT IS THE INTENTION OF THE GENERAL ASSEMBLY THAT THIS ACT 10 SHALL NOT MERELY REQUIRE PROPER REGISTRATION OF CHARITABLE 11 ORGANIZATIONS, PROFESSIONAL FUNDRAISERS AND PROFESSIONAL 12 SOLICITORS, BUT SHALL PROTECT THE CITIZENS OF THIS COMMONWEALTH 13 BY REQUIRING FULL PUBLIC DISCLOSURE OF THE IDENTITY OF PERSONS 14 WHO SOLICIT CONTRIBUTIONS FROM THE PUBLIC, THE PURPOSES FOR 15 WHICH SUCH CONTRIBUTIONS ARE SOLICITED AND THE MANNER IN WHICH 16 THEY ARE ACTUALLY USED, BY PROMOTING CONSUMER EDUCATION ABOUT 17 CHARITABLE CONCERNS, AND BY PROVIDING CIVIL AND CRIMINAL 18 PENALTIES FOR DECEPTION AND DISHONEST STATEMENTS AND CONDUCT IN 19 THE SOLICITATION AND REPORTING OF CONTRIBUTIONS FOR OR IN THE 20 NAME OF CHARITABLE PURPOSES, AND BY PUBLICIZING MATTERS RELATING 21 TO FRAUD, DECEPTION AND MISREPRESENTATION PERPETRATED IN THE 22 NAME OF CHARITY. THIS ACT SHALL NOT BE CONSTRUED TO BE EXCLUSIVE 23 IN ITS PURVIEW AND ITS APPLICATION SHALL NOT OPERATE AS A BAR OR 24 OTHERWISE PREVENT THE CONTEMPORANEOUS OR SUBSEQUENT APPLICATION 25 OF ANY OTHER RELEVANT ACT OR ACTS. 26 SECTION 3. DEFINITIONS. 27 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ACT SHALL 28 HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE 29 CONTEXT CLEARLY INDICATES OTHERWISE: 30 "ADMINISTRATIVE COSTS." ALL MANAGEMENT AND GENERAL COSTS OF 19890H0365B3469 - 8 -
1 A CHARITABLE ORGANIZATION, NOT IDENTIFIABLE WITH A SINGLE 2 PROGRAM OR FUNDRAISING ACTIVITY, BUT INDISPENSABLE TO THE 3 CONDUCT OF SUCH PROGRAMS AND ACTIVITIES AND TO AN ORGANIZATION'S 4 EXISTENCE, INCLUDING EXPENSES FOR THE OVERALL DIRECTION OF THE 5 ORGANIZATION, BUSINESS MANAGEMENT, GENERAL RECORD KEEPING, 6 BUDGETING, FINANCIAL REPORTING AND RELATED ACTIVITIES, SALARIES, 7 RENT, SUPPLIES, EQUIPMENT AND GENERAL OVERHEAD EXPENSES. 8 "AFFILIATE." ANY CHAPTER, BRANCH, AUXILIARY OR OTHER 9 SUBORDINATE UNIT OF ANY CHARITABLE ORGANIZATION, HOWSOEVER 10 DESIGNATED, WHOSE POLICIES, FUNDRAISING ACTIVITIES AND 11 EXPENDITURES ARE SUPERVISED OR CONTROLLED BY SUCH PARENT 12 ORGANIZATION. 13 "BUREAU." THE BUREAU OF CHARITABLE ORGANIZATIONS OF THE 14 DEPARTMENT OF STATE. 15 "CHARITABLE ORGANIZATION." ANY PERSON GRANTED TAX EXEMPT 16 STATUS UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE OF 17 1986 (PUBLIC LAW 99-514, 26 U.S.C. § 501(C)(3)) OR ANY PERSON 18 WHO IS OR HOLDS HIMSELF OUT TO BE ESTABLISHED FOR ANY CHARITABLE 19 PURPOSE OR ANY PERSON WHO IN ANY MANNER EMPLOYS A CHARITABLE 20 APPEAL AS THE BASIS OF ANY SOLICITATION OR AN APPEAL WHICH HAS A 21 TENDENCY TO SUGGEST THERE IS A CHARITABLE PURPOSE TO ANY 22 SOLICITATION. AN AFFILIATE OF A CHARITABLE ORGANIZATION WHICH 23 HAS ITS PRINCIPAL PLACE OF BUSINESS OUTSIDE THIS COMMONWEALTH 24 SHALL BE A CHARITABLE ORGANIZATION FOR THE PURPOSES OF THIS ACT. 25 THE TERM SHALL NOT BE DEEMED TO INCLUDE: 26 (1) ANY BONA FIDE DULY CONSTITUTED ORGANIZATION OF LAW 27 ENFORCEMENT PERSONNEL, FIREFIGHTERS OR OTHER PERSONS WHO 28 PROTECT THE PUBLIC SAFETY WHOSE STATED PURPOSE IN THE 29 SOLICITATION DOES NOT INCLUDE ANY BENEFIT TO ANY PERSON 30 OUTSIDE THE ACTUAL ACTIVE MEMBERSHIP OF THE ORGANIZATION; AND 19890H0365B3469 - 9 -
1 (2) ANY BONA FIDE DUTY CONSTITUTED RELIGIOUS 2 INSTITUTIONS AND SUCH SEPARATE GROUPS OR CORPORATIONS WHICH 3 FORM AN INTEGRAL PART OF RELIGIOUS INSTITUTIONS, PROVIDED 4 THAT: 5 (I) SUCH RELIGIOUS INSTITUTIONS, GROUPS OR 6 CORPORATIONS ARE TAX EXEMPT PURSUANT TO THE INTERNAL 7 REVENUE CODE OF 1986; 8 (II) NO PART OF THEIR NET INCOME INURES TO THE 9 DIRECT BENEFIT OF ANY INDIVIDUAL; AND 10 (III) THEIR CONDUCT IS PRIMARILY SUPPORTED BY 11 GOVERNMENT GRANTS OR CONTRACTS OR FUNDS SOLICITED WITHIN 12 THEIR OWN MEMBERSHIPS OR CONGREGATIONS, OR FEES CHARGED 13 FOR SERVICES RENDERED. 14 "CHARITABLE PROMOTION." ANY ADVERTISING OR SALES CAMPAIGN, 15 EVENT OR PERFORMANCE, CONDUCTED, PRODUCED, PROMOTED, 16 UNDERWRITTEN, ARRANGED OR SPONSORED BY A COMMERCIAL CO-VENTURER, 17 WHICH REPRESENTS THAT THE PURCHASE OR USE OF GOODS OR SERVICES 18 OR ATTENDANCE AT EVENTS OR PERFORMANCES OFFERED OR SPONSORED BY 19 THE COMMERCIAL CO-VENTURER WILL BENEFIT, IN WHOLE OR IN PART, A 20 CHARITABLE ORGANIZATION OR PURPOSE. 21 "CHARITABLE PURPOSE." ANY BENEVOLENT, EDUCATIONAL, 22 PHILANTHROPIC, HUMANE, SCIENTIFIC, PATRIOTIC, SOCIAL WELFARE OR 23 ADVOCACY, PUBLIC HEALTH, ENVIRONMENTAL CONSERVATION, CIVIC OR 24 OTHER ELEEMOSYNARY OBJECTIVE, INCLUDING AN OBJECTIVE OF ANY BONA 25 FIDE DULY CONSTITUTED ORGANIZATION OF LAW ENFORCEMENT PERSONNEL, 26 FIREFIGHTERS OR OTHER PERSONS WHO PROTECT THE PUBLIC SAFETY IF A 27 STATED PURPOSE OF THE SOLICITATION INCLUDES ANY BENEFIT TO ANY 28 PERSON OUTSIDE THE ACTUAL ACTIVE MEMBERSHIP OF THE ORGANIZATION. 29 "COMMERCIAL CO-VENTURER." ANY PERSON WHO FOR PROFIT IS 30 REGULARLY AND PRIMARILY ENGAGED IN TRADE OR COMMERCE OTHER THAN 19890H0365B3469 - 10 -
1 IN CONNECTION WITH THE RAISING OF FUNDS OR ANY OTHER THING OF 2 VALUE FOR A CHARITABLE ORGANIZATION AND WHO ADVERTISES THAT THE 3 PURCHASE OR USE OF GOODS, SERVICES, ENTERTAINMENT OR ANY OTHER 4 THING OF VALUE WILL BENEFIT A CHARITABLE ORGANIZATION. 5 "CONTRIBUTION." THE PROMISE, GRANT OR PLEDGE OF MONEY, 6 CREDIT, PROPERTY, FINANCIAL ASSISTANCE OR OTHER THING OF ANY 7 KIND OR VALUE IN RESPONSE TO A SOLICITATION, INCLUDING THE 8 PAYMENT OR PROMISE TO PAY IN CONSIDERATION OF A PERFORMANCE, 9 EVENT OR SALE OF A GOOD OR SERVICE. PAYMENT BY MEMBERS OF AN 10 ORGANIZATION FOR MEMBERSHIP FEES, DUES, FINES OR ASSESSMENTS OR 11 FOR SERVICES RENDERED TO INDIVIDUAL MEMBERS, IF SUCH FEES, DUES, 12 FINES OR ASSESSMENTS CONFER A BONA FIDE RIGHT, PRIVILEGE, 13 PROFESSIONAL STANDING, HONOR OR OTHER DIRECT BENEFIT, SHALL NOT 14 BE DEEMED CONTRIBUTIONS, PROVIDED THAT MEMBERSHIP IS NOT 15 CONFERRED SOLELY AS CONSIDERATION FOR MAKING A CONTRIBUTION IN 16 RESPONSE TO A SOLICITATION. GOVERNMENT GRANTS OR CONTRACTS SHALL 17 NOT BE DEEMED A CONTRIBUTION. 18 "DEPARTMENT." THE DEPARTMENT OF STATE OF THE COMMONWEALTH. 19 "FEDERATED FUNDRAISING ORGANIZATION." A FEDERATION OF 20 INDEPENDENT CHARITABLE ORGANIZATIONS WHICH HAVE VOLUNTARILY 21 JOINED TOGETHER INCLUDING, BUT NOT LIMITED TO, A UNITED WAY OR 22 COMMUNITY CHEST, FOR PURPOSES OF RAISING AND DISTRIBUTING MONEY 23 FOR AND AMONG THEMSELVES AND WHERE MEMBERSHIP DOES NOT CONFER 24 UPON THE FEDERATED GROUP ORGANIZATION OPERATING AUTHORITY AND 25 CONTROL OF THE INDIVIDUAL AGENCIES. 26 "FIREFIGHTERS." ANY PERSON WHO IS OR REPRESENTS OR HOLDS 27 ITSELF OUT TO REPRESENT, AID, TRAIN OR OTHERWISE BENEFIT ANY 28 PAID OR VOLUNTEER FIREFIGHTER, ACTIVE OR RETIRED, OR THEIR 29 FAMILIES. 30 "FUNDRAISING COSTS." THOSE COSTS INCURRED IN INDUCING OTHERS 19890H0365B3469 - 11 -
1 TO MAKE CONTRIBUTIONS TO A CHARITABLE ORGANIZATION FOR WHICH THE 2 CONTRIBUTORS WILL RECEIVE NO DIRECT ECONOMIC BENEFIT. 3 FUNDRAISING COSTS NORMALLY INCLUDE, BUT ARE NOT LIMITED TO, 4 SALARIES, RENT, ACQUIRING AND MAINTAINING MAILING LISTS, 5 PRINTING, MAILING AND ALL DIRECT AND INDIRECT COSTS OF 6 SOLICITING, AS WELL AS THE COST OF UNSOLICITED MERCHANDISE SENT 7 TO ENCOURAGE CONTRIBUTIONS. FUNDRAISING COSTS DO NOT INCLUDE THE 8 DIRECT COST OF MERCHANDISE OR GOODS SOLD OR THE DIRECT COST OF 9 FUNDRAISING DINNERS, BAZAARS, SHOWS, CIRCUSES, BANQUETS, 10 DINNERS, THEATER PARTIES OR ANY OTHER FORM OF BENEFIT 11 PERFORMANCES. 12 "LAW ENFORCEMENT PERSONNEL." ANY PERSON WHO IS OR REPRESENTS 13 OR HOLDS ITSELF OUT TO REPRESENT, AID, TRAIN OR OTHERWISE 14 BENEFIT ANY POLICE OFFICER, SHERIFF OR DEPUTY SHERIFF, CONSTABLE 15 OR DEPUTY CONSTABLE, COUNTY DETECTIVES, FIRE POLICE, OR ANY 16 OTHER PERSON WHO IS EMPOWERED TO MAKE ARRESTS, SERVE WARRANTS, 17 ISSUE SUMMONS OR OTHERWISE ENFORCE THE LAWS OF THIS COMMONWEALTH 18 TO INCLUDE RETIRED LAW ENFORCEMENT PERSONNEL AND THE FAMILIES OF 19 LAW ENFORCEMENT PERSONNEL. 20 "NET PROCEEDS." THE TOTAL PROCEEDS RECEIVED FROM THE 21 SOLICITATION OF CONTRIBUTIONS REDUCED BY THE DIRECT COST OF 22 MERCHANDISE OR OTHER GOODS SOLD OR FUNDRAISING EVENTS OF ANY 23 KIND. 24 "OWNER." ANY PERSON WHO HAS A DIRECT OR INDIRECT INTEREST IN 25 ANY PROFESSIONAL FUNDRAISING COUNSEL OR PROFESSIONAL SOLICITOR. 26 "PARENT ORGANIZATION." THAT PART OF A CHARITABLE 27 ORGANIZATION WHICH COORDINATES, SUPERVISES OR EXERCISES CONTROL 28 OF POLICY, FUNDRAISING AND EXPENDITURES, OR ASSISTS OR RECEIVES 29 FUNDS FROM OR ADVISES ONE OR MORE AFFILIATES. 30 "PERSON." ANY INDIVIDUAL, ORGANIZATION, CORPORATION, 19890H0365B3469 - 12 -
1 ASSOCIATION, PARTNERSHIP, TRUST, FOUNDATION OR ANY OTHER ENTITY 2 HOWEVER STYLED. 3 "PROFESSIONAL FUNDRAISING COUNSEL." ANY PERSON WHO IS 4 RETAINED BY A CHARITABLE ORGANIZATION FOR A FIXED FEE OR RATE 5 UNDER A WRITTEN AGREEMENT TO PLAN, CONDUCT, MANAGE, CARRY ON, 6 ADVISE, CONSULT OR PREPARE MATERIAL FOR OR WITH RESPECT TO THE 7 SOLICITATION IN THIS COMMONWEALTH OF CONTRIBUTIONS FOR A 8 CHARITABLE ORGANIZATION, BUT WHO DOES NOT SOLICIT CONTRIBUTIONS 9 OR EMPLOY, PROCURE OR ENGAGE ANY COMPENSATED PERSON TO SOLICIT 10 CONTRIBUTIONS AND WHO DOES NOT HAVE CUSTODY OR CONTROL OF 11 CONTRIBUTIONS. A BONA FIDE SALARIED OFFICER OR REGULAR, 12 NONTEMPORARY EMPLOYEE OF A CHARITABLE ORGANIZATION MAINTAINING A 13 PERMANENT ESTABLISHMENT WITHIN THIS COMMONWEALTH SHALL NOT BE 14 DEEMED TO BE A PROFESSIONAL FUNDRAISING COUNSEL PROVIDED THAT 15 THE INDIVIDUAL IS NOT EMPLOYED OR ENGAGED AS PROFESSIONAL 16 FUNDRAISING COUNSEL OR AS A PROFESSIONAL SOLICITOR BY ANY OTHER 17 PERSON. 18 "PROFESSIONAL SOLICITOR." ANY PERSON WHO IS RETAINED FOR 19 FINANCIAL OR OTHER CONSIDERATION BY A CHARITABLE ORGANIZATION TO 20 SOLICIT IN THIS COMMONWEALTH CONTRIBUTIONS FOR CHARITABLE 21 PURPOSES DIRECTLY OR IN THE FORM OF PAYMENT FOR GOODS, SERVICES 22 OR ADMISSION TO FUNDRAISING EVENTS, WHETHER SUCH SOLICITATION IS 23 PERFORMED PERSONALLY OR THROUGH HIS AGENTS, SERVANTS OR 24 EMPLOYEES OR THROUGH AGENTS, SERVANTS OR EMPLOYEES ESPECIALLY 25 EMPLOYED BY OR FOR A CHARITABLE ORGANIZATION WHO ARE ENGAGED IN 26 THE SOLICITATION OF CONTRIBUTIONS, THE SALE OF GOODS OR SERVICES 27 OR THE PRODUCTION OF FUNDRAISING EVENTS UNDER THE DIRECTION OF 28 SUCH PERSON, OR A PERSON WHO PLANS, CONDUCTS, MANAGES, CARRIES 29 ON, ADVISES, CONSULTS, WHETHER DIRECTLY OR INDIRECTLY, IN 30 CONNECTION WITH THE SOLICITATION OF CONTRIBUTIONS, SALE OF GOODS 19890H0365B3469 - 13 -
1 OR SERVICES OR THE PRODUCTION OF FUNDRAISING EVENTS FOR OR ON 2 BEHALF OF ANY CHARITABLE ORGANIZATION, BUT DOES NOT QUALIFY AS A 3 "PROFESSIONAL FUNDRAISING COUNSEL" WITHIN THE MEANING OF THIS 4 ACT. A PERSON WHO IS OTHERWISE A PROFESSIONAL FUNDRAISING 5 COUNSEL SHALL BE DEEMED A PROFESSIONAL SOLICITOR IF HIS 6 COMPENSATION IS RELATED TO THE AMOUNT OF CONTRIBUTIONS RECEIVED. 7 A BONA FIDE SALARIED OFFICER OR REGULAR, NONTEMPORARY EMPLOYEE 8 OF A CHARITABLE ORGANIZATION MAINTAINING A PERMANENT 9 ESTABLISHMENT WITHIN THIS COMMONWEALTH SHALL NOT BE DEEMED TO BE 10 A PROFESSIONAL SOLICITOR PROVIDED THAT THE INDIVIDUAL IS NOT 11 EMPLOYED OR ENGAGED AS PROFESSIONAL FUNDRAISING COUNSEL OR AS A 12 PROFESSIONAL SOLICITOR BY ANY OTHER PERSON. 13 "SECRETARY." THE SECRETARY OF THE COMMONWEALTH. 14 "SOLICITATION." ANY DIRECT OR INDIRECT REQUEST FOR A 15 CONTRIBUTION ON THE REPRESENTATION THAT SUCH CONTRIBUTION WILL 16 BE USED IN WHOLE OR IN PART FOR A CHARITABLE PURPOSE INCLUDING, 17 BUT NOT LIMITED TO, ANY OF THE FOLLOWING: 18 (1) ANY ORAL REQUEST THAT IS MADE IN PERSON, BY 19 TELEPHONE, RADIO OR TELEVISION OR OTHER ADVERTISING OR 20 COMMUNICATION MEDIA. 21 (2) ANY WRITTEN OR OTHERWISE RECORDED OR PUBLISHED 22 REQUEST THAT IS MAILED, SENT, DELIVERED, CIRCULATED, 23 DISTRIBUTED, POSTED IN A PUBLIC PLACE OR ADVERTISED OR 24 COMMUNICATED BY PRESS, TELEGRAPH, TELEVISION OR ANY OTHER 25 MEDIA. 26 (3) ANY SALE OF, OFFER OR ATTEMPT TO SELL ANY 27 ADVERTISEMENT, ADVERTISING SPACE, SPONSORSHIP, BOOK, CARD, 28 CHANCE, COUPON, DEVICE, FOOD, MAGAZINE, MERCHANDISE, 29 NEWSPAPER, SUBSCRIPTION, TICKET OR OTHER SERVICE OR TANGIBLE 30 GOOD, THING OR ITEM OF VALUE. 19890H0365B3469 - 14 -
1 (4) ANY ANNOUNCEMENT REQUESTING THE PUBLIC TO ATTEND AN 2 APPEAL, ASSEMBLAGE, ATHLETIC OR COMPETITIVE EVENT, CARNIVAL, 3 CIRCUS, CONCERT, CONTEST, DANCE, ENTERTAINMENT, EXHIBITION, 4 EXPOSITION, GAME, LECTURE, MEAL, PARTY, SHOW, SOCIAL 5 GATHERING OR OTHER PERFORMANCE OR EVENT OF ANY KIND. 6 SECTION 4. POWERS AND DUTIES OF SECRETARY. 7 THE SECRETARY SHALL HAVE THE FOLLOWING POWERS AND DUTIES TO: 8 (1) PROVIDE FOR AND REGULATE THE REGISTRATION OF 9 CHARITABLE ORGANIZATIONS, PROFESSIONAL FUNDRAISING COUNSELORS 10 AND PROFESSIONAL SOLICITORS. 11 (2) DECIDE MATTERS RELATING TO THE ISSUANCE, RENEWAL, 12 SUSPENSION OR REVOCATION OF REGISTRATION. 13 (3) PROMULGATE, ADOPT AND ENFORCE THE RULES AND 14 REGULATIONS NECESSARY TO CARRY OUT THIS ACT. 15 (4) PROMULGATE REGULATIONS ALTERING FEES AND FINES 16 ESTABLISHED IN THIS ACT SUFFICIENT TO MEET EXPENDITURES OF 17 THE BUREAU. 18 (5) TAKE APPROPRIATE ACTION TO INITIATE ANY CIVIL OR 19 CRIMINAL PROCEEDINGS NECESSARY TO ENFORCE THIS ACT, IN 20 ACCORDANCE WITH THE ACT OF OCTOBER 15, 1980 (P.L.950, 21 NO.164), KNOWN AS THE COMMONWEALTH ATTORNEYS ACT. 22 (6) CONDUCT HEARINGS AND MAKE ADJUDICATIONS. 23 (7) KEEP A RECORD SHOWING THE NAMES AND ADDRESSES OF ALL 24 REGISTERED CHARITABLE ORGANIZATIONS, PROFESSIONAL FUNDRAISING 25 COUNSEL AND PROFESSIONAL SOLICITORS. 26 (8) SUBMIT ANNUALLY, ON OR BEFORE SEPTEMBER 30, TO THE 27 GOVERNOR, TO THE STATE GOVERNMENT COMMITTEES OF THE HOUSE OF 28 REPRESENTATIVES AND SENATE, AS WELL AS TO INTERESTED PARTIES, 29 A REPORT ON THE NUMBER OF REGISTERED CHARITIES, THE NUMBER OF 30 CHARITIES ORDERED TO CEASE AND DESIST SOLICITATION, THE 19890H0365B3469 - 15 -
1 NUMBER OF CHARITIES CONTRACTING WITH PROFESSIONAL SOLICITORS 2 AND THE COMPENSATION OF PROFESSIONAL SOLICITORS FOR EACH 3 SOLICITATION CAMPAIGN IN RELATION TO THE FUNDS RAISED AND 4 ADMINISTRATIVE COSTS. 5 (9) DELEGATE TO A DIVISION DIRECTOR OF HIS OFFICE SUCH 6 POWERS AND DUTIES UNDER THIS ACT AS HE MAY DEEM APPROPRIATE. 7 (10) EXERCISE ALL OTHER AUTHORITY ACCORDED TO HIM BY 8 THIS ACT. 9 SECTION 5. REGISTRATION OF CHARITABLE ORGANIZATIONS; FINANCIAL 10 REPORTS; FEES; FAILURE TO FILE. 11 (A) REGISTRATION AND APPROVAL REQUIRED.--A CHARITABLE 12 ORGANIZATION, UNLESS EXEMPTED FROM REGISTRATION REQUIREMENTS 13 PURSUANT TO SECTION 6, SHALL FILE A REGISTRATION STATEMENT WITH 14 THE DEPARTMENT. THIS STATEMENT MUST BE REFILED ANNUALLY WITHIN 15 135 DAYS AFTER THE CLOSE OF ITS FISCAL YEAR IN WHICH THE 16 CHARITABLE ORGANIZATION WAS ENGAGED IN SOLICITATION ACTIVITIES. 17 THE DEPARTMENT SHALL REVIEW THE STATEMENT PURSUANT TO SECTION 18 5(R). NO CHARITABLE ORGANIZATION SHALL SOLICIT CONTRIBUTIONS OR 19 HAVE CONTRIBUTIONS SOLICITED IN ITS BEHALF BEFORE APPROVAL OF 20 ITS REGISTRATION STATEMENT BY THE DEPARTMENT. 21 (B) FILING OF STATEMENT.--IT SHALL BE THE DUTY OF THE 22 PRESIDENT, CHAIRMAN OR PRINCIPAL OFFICER OF EACH CHARITABLE 23 ORGANIZATION TO FILE THE REGISTRATION STATEMENT, FINANCIAL 24 REPORT AND FEE REQUIRED UNDER THIS SECTION. THE REGISTRATION 25 STATEMENT SHALL BE SWORN TO BY TWO AUTHORIZED OFFICERS, 26 INCLUDING THE CHIEF FISCAL OFFICER OF THE ORGANIZATION, AND 27 SHALL CONTAIN ALL OF THE FOLLOWING INFORMATION: 28 (1) THE NAME OF THE ORGANIZATION AND ANY OTHER NAME OR 29 NAMES UNDER WHICH IT INTENDS TO SOLICIT CONTRIBUTIONS. 30 (2) THE PRINCIPAL ADDRESS AND TELEPHONE NUMBER OF THE 19890H0365B3469 - 16 -
1 ORGANIZATION AND THE ADDRESSES AND TELEPHONE NUMBERS OF ANY 2 OFFICES IN THIS COMMONWEALTH. IF THE ORGANIZATION DOES NOT 3 MAINTAIN AN OFFICE, THE NAME AND ADDRESS OF THE INDIVIDUAL 4 HAVING CUSTODY OF ITS FINANCIAL RECORDS. 5 (3) THE NAMES AND ADDRESSES OF ANY AFFILIATES WHICH 6 SHARE IN THE CONTRIBUTIONS OR OTHER REVENUE RAISED IN THIS 7 COMMONWEALTH. 8 (4) THE NAMES AND ADDRESSES OF THE OFFICERS, DIRECTORS 9 AND TRUSTEES AND THE PRINCIPAL SALARIED EXECUTIVE STAFF 10 OFFICERS. 11 (5) A COPY OF THE FINANCIAL REPORT REQUIRED UNDER 12 SUBSECTION (E). 13 (6) A COPY OF ANY DETERMINATION OF THE ORGANIZATION'S 14 TAX EXEMPT STATUS UNDER THE INTERNAL REVENUE CODE OF 1986 15 (PUBLIC LAW 99-514) AND, FOR ORGANIZATIONS GRANTED TAX EXEMPT 16 STATUS UNDER SECTION 501(C)(3), A COPY OF THE LAST FILED 17 INTERNAL REVENUE SERVICE FORM 990 AND SCHEDULE A FOR EVERY 18 CHARITABLE ORGANIZATION AND PARENT ORGANIZATION. 19 (7) THE DATE WHEN THE ORGANIZATION'S FISCAL YEAR BEGINS. 20 (8) WHETHER: 21 (I) THE ORGANIZATION IS AUTHORIZED BY ANY OTHER 22 GOVERNMENTAL AUTHORITY TO SOLICIT CONTRIBUTIONS; 23 (II) THE ORGANIZATION OR ANY OF ITS PRESENT 24 OFFICERS, DIRECTORS, EXECUTIVE PERSONNEL OR TRUSTEES ARE 25 OR HAVE EVER BEEN ENJOINED IN ANY JURISDICTION FROM 26 SOLICITING CONTRIBUTIONS OR HAVE BEEN FOUND TO HAVE 27 ENGAGED IN UNLAWFUL PRACTICES IN THE SOLICITATION OF 28 CONTRIBUTIONS OR ADMINISTRATION OF CHARITABLE ASSETS; 29 (III) THE ORGANIZATION'S REGISTRATION OR LICENSE HAS 30 BEEN DENIED, SUSPENDED OR REVOKED BY ANY GOVERNMENTAL 19890H0365B3469 - 17 -
1 AGENCY TOGETHER WITH THE REASONS FOR SUCH DENIAL, 2 SUSPENSION OR REVOCATION; AND 3 (IV) THE ORGANIZATION HAS VOLUNTARILY ENTERED INTO 4 AN ASSURANCE OF VOLUNTARY DISCONTINUANCE OR AGREEMENT 5 SIMILAR TO THAT SET FORTH IN SECTION 19(B) TOGETHER WITH 6 A COPY OF THAT AGREEMENT. 7 (9) A CLEAR DESCRIPTION OF THE SPECIFIC PROGRAMS FOR 8 WHICH CONTRIBUTIONS WILL BE USED AND A STATEMENT WHETHER SUCH 9 PROGRAMS ARE PLANNED OR IN EXISTENCE. 10 (10) THE NAMES AND ADDRESSES OF ANY PROFESSIONAL 11 SOLICITORS, PROFESSIONAL FUNDRAISING COUNSELS AND COMMERCIAL 12 CO-VENTURERS WHO ARE ACTING OR HAVE AGREED TO ACT ON BEHALF 13 OF THE ORGANIZATION. 14 (11) THE NAMES OF THE INDIVIDUALS OR OFFICERS OF THE 15 ORGANIZATION WHO ARE IN CHARGE OF ANY SOLICITATION 16 ACTIVITIES, WHO WILL HAVE FINAL RESPONSIBILITY FOR THE 17 CUSTODY OF THE CONTRIBUTIONS AND WHO WILL BE RESPONSIBLE FOR 18 THE FINAL DISTRIBUTION OF THE CONTRIBUTIONS. 19 (12) WHETHER ANY OF THE ORGANIZATION'S OFFICERS, 20 DIRECTORS, TRUSTEES OR EMPLOYEES ARE RELATED BY BLOOD, 21 MARRIAGE OR ADOPTION TO EACH OTHER OR TO ANY OFFICERS, AGENTS 22 OR EMPLOYEES OF ANY PROFESSIONAL FUNDRAISING COUNSEL OR 23 PROFESSIONAL SOLICITOR UNDER CONTRACT TO THE ORGANIZATION OR 24 TO ANY SUPPLIER OR VENDOR PROVIDING GOODS OR SERVICES TO THE 25 ORGANIZATION, AND THE NAMES AND BUSINESS AND RESIDENCE 26 ADDRESSES OF ANY SUCH RELATED PARTIES. 27 (13) ANY OTHER INFORMATION REQUIRED BY THE REGULATIONS 28 OF THE DEPARTMENT. 29 (C) ADDITIONAL FILINGS.--WITH THE INITIAL REGISTRATION ONLY, 30 EACH CHARITABLE ORGANIZATION REQUIRED TO BE REGISTERED SHALL 19890H0365B3469 - 18 -
1 ALSO FILE WITH THE DEPARTMENT THE FOLLOWING DOCUMENTS: 2 (1) A COPY OF THE ORGANIZATION'S CHARTER, ARTICLES OF 3 ORGANIZATION, AGREEMENT OF ASSOCIATION, INSTRUMENT OF TRUST, 4 CONSTITUTION OR OTHER ORGANIZATIONAL INSTRUMENT AND BYLAWS. 5 (2) A STATEMENT SETTING FORTH WHERE AND THE DATE WHEN 6 THE ORGANIZATION WAS LEGALLY ESTABLISHED, THE FORM OF ITS 7 ORGANIZATION AND ITS TAX-EXEMPT STATUS TOGETHER WITH A COPY 8 OF THE LETTER OF EXEMPTION, IF ANY, ISSUED BY THE INTERNAL 9 REVENUE SERVICE. 10 (D) FEDERAL TAX EXEMPTION DETERMINATION.--EACH CHARITABLE 11 ORGANIZATION REGISTERED WITH THE DEPARTMENT SHALL FILE WITH THE 12 DEPARTMENT A COPY OF ANY FEDERAL TAX EXEMPTION DETERMINATION 13 LETTER RECEIVED AFTER THE INITIAL REGISTRATION WITHIN 30 DAYS 14 AFTER RECEIPT, AND ANY AMENDMENTS TO ITS ORGANIZATIONAL 15 INSTRUMENT WITHIN 30 DAYS AFTER ADOPTION. 16 (E) FINANCIAL REPORT.--WITH EACH REGISTRATION STATEMENT, A 17 CHARITABLE ORGANIZATION MUST FILE A FINANCIAL REPORT FOR THE 18 IMMEDIATELY PRECEDING FISCAL YEAR, WHICH SHALL CONTAIN A BALANCE 19 SHEET AND STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN FUND 20 BALANCES INDICATING THE ORGANIZATION'S GROSS REVENUE, THE AMOUNT 21 OF FUNDS RECEIVED FROM SOLICITATIONS OR OTHER FUNDRAISING 22 ACTIVITIES AND ALL EXPENDITURES FOR SUPPLIES, EQUIPMENT, GOODS, 23 SERVICES, PROGRAMS, ACTIVITIES OR OTHER EXPENSES, A DETAILED 24 LIST OF ALL SALARIES AND WAGES PAID AND EXPENSES ALLOWED TO ANY 25 OFFICER, OR EMPLOYEE IF THE ORGANIZATION IS NOT REQUIRED TO FILE 26 AN INTERNAL REVENUE SERVICE FORM 990 AND THE DISPOSITION OF THE 27 NET PROCEEDS RECEIVED FROM SOLICITED CONTRIBUTIONS OR OTHER 28 FUNDRAISING ACTIVITIES. 29 (F) AUDIT OF CERTAIN FINANCIAL REPORTS.--THE FINANCIAL 30 REPORT OF EVERY CHARITABLE ORGANIZATION WHICH RECEIVED 19890H0365B3469 - 19 -
1 CONTRIBUTIONS IN EXCESS OF $100,000 SHALL BE AUDITED BY AN 2 INDEPENDENT PUBLIC ACCOUNTANT. THE FINANCIAL REPORT OF EVERY 3 CHARITABLE ORGANIZATION WHICH RECEIVES CONTRIBUTIONS IN EXCESS 4 OF $25,000, BUT LESS THAN $100,000 SHALL BE REVIEWED OR AUDITED 5 BY AN INDEPENDENT PUBLIC ACCOUNTANT. AN AUDIT OR REVIEW IS 6 OPTIONAL FOR ANY CHARITABLE ORGANIZATION WHICH RECEIVES 7 CONTRIBUTIONS LESS THAN $25,000. AUDITS SHALL BE PERFORMED IN 8 ACCORDANCE WITH THE STATEMENT ON AUDITING STANDARDS OF THE 9 AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND REVIEWS 10 SHALL BE PERFORMED IN ACCORDANCE WITH THE STATEMENT ON STANDARDS 11 FOR ACCOUNTING AND REVIEW SERVICES OF THE AMERICAN INSTITUTE OF 12 CERTIFIED PUBLIC ACCOUNTANTS. 13 (G) GOVERNMENTAL AUDITS.--GOVERNMENT AUDITS OF GOVERNMENT 14 GRANTS SHALL BE ACCEPTED AND SHALL BE INCLUDED AS PART OF THE 15 FINANCIAL STATEMENTS. 16 (H) OTHER ACCEPTABLE REPORTS.--THE DEPARTMENT MAY ACCEPT A 17 COPY OF A CURRENT FINANCIAL REPORT PREVIOUSLY PREPARED BY A 18 CHARITABLE ORGANIZATION FOR A GOVERNMENTAL AGENCY IN ANOTHER 19 JURISDICTION IN COMPLIANCE WITH THE LAWS OF THAT JURISDICTION, 20 PROVIDED THAT THE REPORT FILED WITH SUCH OTHER GOVERNMENTAL 21 AGENCY SHALL BE SUBSTANTIALLY SIMILAR IN CONTENT TO THE REPORT 22 REQUIRED BY THIS SECTION. 23 (I) REPORTS TO ACCOMPANY AUDIT.--AUDITED AND REVIEWED 24 FINANCIAL STATEMENTS MUST BE ACCOMPANIED BY THE REPORT PREPARED 25 AND SIGNED BY THE INDEPENDENT PUBLIC ACCOUNTANT. 26 (J) OPTIONAL DEPARTMENTAL ACTION.--THE DEPARTMENT SHALL HAVE 27 THE DISCRETION TO REQUIRE THAT AN AUDIT OR REVIEW BE SUBMITTED 28 BY ANY CHARITABLE ORGANIZATION WHICH FILES A REGISTRATION 29 STATEMENT. THE DEPARTMENT SHALL ALSO HAVE THE DISCRETION TO 30 ACCEPT THE FINANCIAL STATEMENT SUBMITTED BY THE ORGANIZATION IN 19890H0365B3469 - 20 -
1 LIEU OF AN AUDIT OR REVIEW WHERE SPECIAL FACTS AND CIRCUMSTANCES 2 ARE PRESENTED. 3 (K) TIME EXTENSION FOR FILINGS.--FOR GOOD CAUSE SHOWN, THE 4 DEPARTMENT MAY EXTEND THE TIME FOR THE ANNUAL FILING OF A 5 REGISTRATION STATEMENT OR FINANCIAL REPORT FOR A PERIOD NOT TO 6 EXCEED 180 DAYS DURING WHICH TIME THE PREVIOUS REGISTRATION 7 REMAINS IN EFFECT. 8 (L) CANCELLATION OF REGISTRATION.--IN NO EVENT SHALL THE 9 REGISTRATION OF A CHARITABLE ORGANIZATION CONTINUE IN EFFECT 10 AFTER THE DATE THE ORGANIZATION SHOULD HAVE FILED, BUT FAILED TO 11 FILE, ITS FINANCIAL REPORT IN ACCORDANCE WITH THIS SECTION. SUCH 12 ORGANIZATION SHALL NOT BE ELIGIBLE TO FILE A NEW REGISTRATION 13 STATEMENT UNTIL IT SHALL HAVE FILED THE REQUIRED FINANCIAL 14 REPORT WITH THE DEPARTMENT. 15 (M) REPORTS BY AFFILIATES.-- 16 (1) EACH AFFILIATE WHOSE PARENT ORGANIZATION HAS ITS 17 PRINCIPAL PLACE OF BUSINESS IN THIS COMMONWEALTH MAY 18 SEPARATELY FILE THE REGISTRATION STATEMENT OR FINANCIAL 19 INFORMATION REQUIRED BY THIS SECTION, OR REPORT THE REQUIRED 20 INFORMATION TO ITS PARENT ORGANIZATION WHICH SHALL THEN FILE 21 A COMBINED REGISTRATION STATEMENT AND FINANCIAL REPORT FOR 22 ITS PENNSYLVANIA AFFILIATES. THERE SHALL BE APPENDED TO EACH 23 COMBINED REPORT A SCHEDULE, CONTAINING SUCH INFORMATION AS 24 MAY BE PRESCRIBED IN THE REGULATIONS OF THE DEPARTMENT, 25 REFLECTING THE ACTIVITIES OF EACH AFFILIATE, WHICH SHALL 26 CONTAIN A CERTIFICATION, UNDER OATH, BY AN OFFICIAL OF THE 27 ORGANIZATION, THAT THE INFORMATION CONTAINED THEREIN IS TRUE. 28 THE FAILURE OF A PARENT ORGANIZATION TO FILE A COMBINED 29 REGISTRATION STATEMENT AND FINANCIAL REPORT SHALL NOT EXCUSE 30 EITHER THE PARENT ORGANIZATION OR ITS AFFILIATES FROM 19890H0365B3469 - 21 -
1 COMPLYING WITH THE REQUIREMENTS OF THIS SECTION. 2 (2) IF AN AFFILIATE IS SOLICITING IN THIS COMMONWEALTH 3 BUT ITS PARENT ORGANIZATION HAS ITS PRINCIPAL PLACE OF 4 BUSINESS OUTSIDE THIS COMMONWEALTH, BOTH THE AFFILIATE AND 5 THE PARENT ORGANIZATION SHALL INDEPENDENTLY COMPLY WITH ALL 6 OF THE REGISTRATION REQUIREMENTS OF THIS SECTION. 7 (N) FEDERATED ORGANIZATIONS.--AN INDEPENDENT MEMBER AGENCY 8 OF A FEDERATED FUNDRAISING ORGANIZATION SHALL INDEPENDENTLY 9 COMPLY WITH THE PROVISIONS OF THIS SECTION UNLESS SPECIFICALLY 10 EXEMPTED. 11 (O) RETENTION OF RECORDS, ETC.--EACH CHARITABLE ORGANIZATION 12 REQUIRED TO REGISTER SHALL MAINTAIN RECORDS, BOOKS AND REPORTS 13 FOR AT LEAST THREE YEARS AFTER THE END OF THE PERIOD OF 14 REGISTRATION TO WHICH THEY RELATE, WHICH SHALL BE AVAILABLE FOR 15 INSPECTION UPON DEMAND BY THE DEPARTMENT AND THE OFFICE OF 16 ATTORNEY GENERAL. 17 (P) ANNUAL REGISTRATION FEES.--A CHARITABLE ORGANIZATION 18 WHICH SUBMITS A SHORT FORM REGISTRATION STATEMENT PURSUANT TO 19 SECTION 7 OR RECEIVES CONTRIBUTIONS OF LESS THAN $25,000 DURING 20 THE IMMEDIATELY PRECEDING FISCAL YEAR SHALL PAY AN ANNUAL 21 REGISTRATION FEE OF $15. A CHARITABLE ORGANIZATION WHICH 22 RECEIVES CONTRIBUTIONS IN EXCESS OF $25,000, BUT LESS THAN 23 $100,000 DURING THE IMMEDIATELY PRECEDING FISCAL YEAR SHALL PAY 24 AN ANNUAL REGISTRATION FEE OF $50. A CHARITABLE ORGANIZATION 25 WHICH RECEIVES CONTRIBUTIONS IN EXCESS OF $100,000 DURING THE 26 IMMEDIATELY PRECEDING FISCAL YEAR SHALL PAY AN ANNUAL 27 REGISTRATION FEE OF $100. A PARENT ORGANIZATION FILING ON BEHALF 28 OF ONE OR MORE AFFILIATES AND A FEDERATED FUNDRAISING 29 ORGANIZATION FILING ON BEHALF OF IT MEMBER AGENCIES SHALL PAY A 30 SINGLE ANNUAL REGISTRATION FEE FOR ITSELF AND SUCH OTHER 19890H0365B3469 - 22 -
1 AFFILIATES OR MEMBER AGENCIES INCLUDED IN THE REGISTRATION 2 STATEMENT. 3 (Q) LATE FILING FEES.--IN ADDITION TO THE REGISTRATION FEE, 4 AN ORGANIZATION FAILING TO FILE A REGISTRATION APPLICATION BY 5 THE DUE DATE SHALL PAY AN ADDITIONAL FEE OF $25 FOR EACH MONTH 6 OR PART OF THE MONTH AFTER THE DATE ON WHICH THE REGISTRATION 7 STATEMENT AND FINANCIAL REPORT WERE DUE TO BE FILED OR AFTER THE 8 PERIOD OF EXTENSION GRANTED FOR SUCH FILING. 9 (R) DEPARTMENT REVIEW.--THE DEPARTMENT SHALL EXAMINE EACH 10 REGISTRATION STATEMENT AND SUPPORTING DOCUMENTS FILED BY A 11 CHARITABLE ORGANIZATION AND SHALL DETERMINE WHETHER THE 12 REGISTRATION REQUIREMENTS ARE SATISFIED. IF THE DEPARTMENT 13 DETERMINES THAT THE REGISTRATION REQUIREMENTS ARE NOT SATISFIED, 14 THE DEPARTMENT MUST NOTIFY THE CHARITABLE ORGANIZATION WITHIN 15 TEN WORKING DAYS OF ITS RECEIPT OF THE REGISTRATION STATEMENT; 16 OTHERWISE THE REGISTRATION STATEMENT IS DEEMED TO BE APPROVED. 17 WITHIN SEVEN DAYS AFTER RECEIPT OF A NOTIFICATION THAT THE 18 REGISTRATION REQUIREMENTS ARE NOT SATISFIED, THE CHARITABLE 19 ORGANIZATION MAY REQUEST A HEARING. THE HEARING MUST BE HELD 20 WITHIN SEVEN DAYS OF RECEIPT OF THE REQUEST AND A DETERMINATION 21 MUST BE RENDERED WITHIN THREE WORKING DAYS OF THE HEARING. 22 SECTION 6. EXEMPTIONS FROM REGISTRATION. 23 (A) GENERAL RULE.--THE FOLLOWING CHARITABLE ORGANIZATIONS 24 SHALL BE EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THIS ACT: 25 (1) EDUCATIONAL INSTITUTIONS, THE CURRICULA OF WHICH IN 26 WHOLE OR IN PART ARE REGISTERED WITH OR APPROVED BY THE 27 DEPARTMENT OF EDUCATION, EITHER DIRECTLY OR BY ACCEPTANCE OF 28 ACCREDITATION BY AN ACCREDITING BODY RECOGNIZED BY THE 29 DEPARTMENT OF EDUCATION; AND ANY AUXILIARY ASSOCIATIONS, 30 FOUNDATIONS AND SUPPORT GROUPS WHICH ARE DIRECTLY RESPONSIBLE 19890H0365B3469 - 23 -
1 TO EDUCATIONAL INSTITUTIONS. 2 (2) HOSPITALS WHICH ARE SUBJECT TO REGULATION BY THE 3 DEPARTMENT OF HEALTH. 4 (3) A LOCAL POST, CAMP, CHAPTER OR SIMILARLY DESIGNATED 5 ELEMENT OR A COUNTY UNIT OF SUCH ELEMENTS OF: 6 (I) A BONA FIDE VETERAN'S ORGANIZATION WHICH ISSUES 7 CHARTERS TO SUCH LOCAL ELEMENTS THROUGHOUT THIS 8 COMMONWEALTH; 9 (II) A BONA FIDE ORGANIZATION OF VOLUNTEER FIREMEN; 10 (III) A BONA FIDE AMBULANCE ASSOCIATION; 11 (IV) A BONA FIDE RESCUE SQUAD ASSOCIATION; OR 12 (V) A BONA FIDE AUXILIARY OR AFFILIATE OF ANY 13 ORGANIZATION OR ASSOCIATION UNDER SUBPARAGRAPH (I), (II), 14 (III) OR (IV); 15 PROVIDED THAT ALL FUNDRAISING ACTIVITIES OF AN ORGANIZATION 16 OR ASSOCIATION UNDER SUBPARAGRAPH (I), (II), (III), (IV) OR 17 (V) ARE CARRIED ON BY VOLUNTEERS, MEMBERS OR AN AUXILIARY OR 18 AFFILIATE THEREOF, AND THOSE VOLUNTEERS, MEMBERS OR 19 AFFILIATES RECEIVE NO COMPENSATION DIRECTLY OR INDIRECTLY FOR 20 THE FUNDRAISING ACTIVITIES. 21 (4) PUBLIC NONPROFIT LIBRARY ORGANIZATIONS WHICH RECEIVE 22 FINANCIAL AID FROM STATE AND MUNICIPAL GOVERNMENTS AND FILE 23 AN ANNUAL FISCAL REPORT WITH THE STATE LIBRARY SYSTEM. 24 (5) SENIOR CITIZEN CENTERS WHICH ARE NONPROFIT AND 25 CHARITABLE AND WHICH HAVE BEEN GRANTED TAX-EXEMPT STATUS 26 UNDER THE INTERNAL REVENUE CODE OF 1986 (PUBLIC LAW 99-514, 27 26 U.S.C. § 1 ET. SEQ.), PROVIDED THAT ALL FUNDRAISING 28 ACTIVITIES ARE CARRIED ON BY VOLUNTEERS, MEMBERS OR OFFICERS 29 OF THE SENIOR CITIZEN CENTER AND THOSE VOLUNTEERS, MEMBERS OR 30 OFFICERS RECEIVE NO COMPENSATION DIRECTLY OR INDIRECTLY FOR 19890H0365B3469 - 24 -
1 THE FUNDRAISING ACTIVITIES. 2 (6) BONA FIDE PARENT/TEACHER ASSOCIATIONS OR 3 PARENT/TEACHER ORGANIZATIONS AS RECOGNIZED IN A NOTARIZED 4 LETTER FROM THE SCHOOL DISTRICT IN WHICH THEY ARE LOCATED. 5 (7) ANY CORPORATION ESTABLISHED BY AN ACT OF CONGRESS OF 6 THE UNITED STATES, THAT IS REQUIRED BY FEDERAL LAW TO SUBMIT 7 ANNUAL REPORTS OF ITS ACTIVITIES TO CONGRESS CONTAINING 8 ITEMIZED ACCOUNTS OF ALL RECEIPTS AND EXPENDITURES AFTER 9 BEING FULLY AUDITED BY THE DEPARTMENT OF DEFENSE. 10 (B) EFFECT OF EXEMPTION.--EXEMPTION FROM THE REGISTRATION 11 REQUIREMENTS OF THIS ACT SHALL IN NO WAY LIMIT THE APPLICABILITY 12 OF OTHER PROVISIONS OF THE ACT TO A CHARITABLE ORGANIZATION. 13 SECTION 7. SHORT FORM REGISTRATION. 14 THE FOLLOWING CHARITABLE ORGANIZATIONS SHALL BE REQUIRED TO 15 FILE SHORT FORM ANNUAL REGISTRATION STATEMENTS WITH THE 16 DEPARTMENT: 17 (1) PERSONS OR CHARITABLE ORGANIZATIONS ACCEPTING 18 CONTRIBUTIONS FOR THE RELIEF OF ANY INDIVIDUAL SPECIFIED BY 19 NAME AT THE TIME OF ACCEPTANCE OR SOLICITATION WHEN ALL OF 20 THE CONTRIBUTIONS COLLECTED WITHOUT ANY DEDUCTIONS WHATSOEVER 21 ARE TURNED OVER TO THE NAMED BENEFICIARY FOR HIS USE; 22 PROVIDED THAT ALL CONTRIBUTIONS COLLECTED SHALL BE HELD IN 23 TRUST AND SHALL BE SUBJECT TO THE PROVISIONS OF 20 PA.C.S. 24 CH. 71 (RELATING TO TRUST ESTATES). THE SECRETARY, THE 25 ATTORNEY GENERAL, ANY CONTRIBUTOR OR ANY PERSON WHO PROVIDES 26 ANY GOODS OR SERVICES FOR WHICH FUNDS ARE EXPRESSLY OR 27 IMPLICITLY SOLICITED SHALL HAVE THE RIGHT TO PETITION THE 28 COURT OF COMMON PLEAS OF THE COUNTY IN WHICH THE TRUST IS 29 LOCATED FOR AN ACCOUNTING OF ALL CONTRIBUTIONS. FOR PURPOSES 30 OF THIS PARAGRAPH, THE TRUST SHALL BE DEEMED TO BE LOCATED IN 19890H0365B3469 - 25 -
1 THE COUNTY WHERE THE PRINCIPAL PLACE OF BUSINESS OF THE 2 CHARITABLE ORGANIZATION IS LOCATED. IF A CHARITABLE 3 ORGANIZATION HAS ITS PRINCIPAL PLACE OF BUSINESS OUTSIDE THIS 4 COMMONWEALTH, ALL OF THE FOLLOWING SHALL APPLY: 5 (I) IF AN AFFILIATE IS SOLICITING CONTRIBUTIONS 6 WITHIN THIS COMMONWEALTH, THE TRUST SHALL BE DEEMED TO BE 7 LOCATED IN THE COUNTY WHERE THE PRINCIPAL PLACE OF 8 BUSINESS OF THE AFFILIATE IS LOCATED. 9 (II) IF A PERSON IS SOLICITING CONTRIBUTIONS WITHIN 10 THIS COMMONWEALTH, THE TRUST SHALL BE DEEMED TO BE 11 LOCATED IN THE COUNTY WHERE THE PRINCIPAL PLACE OF 12 BUSINESS OR THE RESIDENCE OF THE PERSON IS LOCATED. 13 (III) IF THERE IS NO PLACE OF BUSINESS OR RESIDENCE 14 WITHIN THIS COMMONWEALTH, THE TRUST SHALL BE DEEMED TO BE 15 LOCATED IN THE COUNTY OF DAUPHIN. 16 (2) ORGANIZATIONS WHICH ONLY SOLICIT WITHIN THE 17 MEMBERSHIP OF THE ORGANIZATION BY THE MEMBERS OF THE 18 ORGANIZATION; PROVIDED THAT THE TERM "MEMBERSHIP" SHALL NOT 19 INCLUDE THOSE PERSONS WHO ARE GRANTED A MEMBERSHIP SOLELY 20 UPON MAKING A CONTRIBUTION AS THE RESULT OF SOLICITATION. FOR 21 THE PURPOSE OF THIS PARAGRAPH, "MEMBER" MEANS A PERSON HAVING 22 MEMBERSHIP IN A NONPROFIT CORPORATION, OR OTHER ORGANIZATION, 23 IN ACCORDANCE WITH THE PROVISIONS OF ITS ARTICLES OF 24 INCORPORATION, BYLAWS OR OTHER INSTRUMENTS CREATING ITS FORM 25 AND ORGANIZATION AND HAVING BONA FIDE RIGHTS AND PRIVILEGES 26 IN THE ORGANIZATION SUCH AS THE RIGHT TO VOTE, TO ELECT 27 OFFICERS AND DIRECTORS, TO HOLD OFFICE OR POSITION AS 28 ORDINARILY CONFERRED ON MEMBERS OF SUCH ORGANIZATIONS. 29 (3) CHARITABLE ORGANIZATIONS WHOSE FUNDRAISING 30 ACTIVITIES ARE CARRIED ON BY VOLUNTEERS, MEMBERS, OFFICERS OR 19890H0365B3469 - 26 -
1 PERMANENT EMPLOYEES AND WHICH DO NOT RECEIVE CONTRIBUTIONS IN 2 EXCESS OF $25,000 DURING A FISCAL YEAR, IF NO PART OF THEIR 3 ASSETS OR INCOME INURES TO THE BENEFIT OF OR IS PAID TO ANY 4 OFFICER OR MEMBER, PROFESSIONAL FUNDRAISING COUNSEL, 5 PROFESSIONAL SOLICITOR OR COMMERCIAL CO-VENTURER. CHARITABLE 6 ORGANIZATIONS WHICH DO NOT INTEND TO SOLICIT AND RECEIVE IN 7 EXCESS OF $25,000, BUT DO RECEIVE CONTRIBUTIONS IN EXCESS OF 8 THAT AMOUNT SHALL FILE THE FINANCIAL REPORT REQUIRED IN 9 SECTION 5 WITHIN 30 DAYS AFTER CONTRIBUTIONS ARE RECEIVED IN 10 EXCESS OF THAT AMOUNT. 11 SECTION 8. REGISTRATION OF PROFESSIONAL FUNDRAISING COUNSEL, 12 AND CONTRACTS. 13 (A) REGISTRATION AND APPROVAL REQUIRED.--NO PERSON SHALL ACT 14 AS A PROFESSIONAL FUNDRAISING COUNSEL BEFORE OBTAINING 15 DEPARTMENT APPROVAL OF A REGISTRATION STATEMENT PURSUANT TO 16 SUBSECTION (C) OR AFTER THE EXPIRATION, SUSPENSION OR REVOCATION 17 OF SUCH REGISTRATION. A REGISTRATION APPLICATION SHALL BE SIGNED 18 AND SWORN TO BY THE PRINCIPAL OFFICER OF THE PROFESSIONAL 19 FUNDRAISING COUNSEL AND SHALL CONTAIN ALL OF THE FOLLOWING 20 INFORMATION: 21 (1) THE ADDRESS OF THE PRINCIPAL PLACE OF BUSINESS OF 22 THE APPLICANT AND ANY PENNSYLVANIA ADDRESSES, IF THE 23 PRINCIPAL PLACE OF BUSINESS IS LOCATED OUTSIDE THIS 24 COMMONWEALTH. 25 (2) THE FORM OF THE APPLICANT'S BUSINESS. 26 (3) THE NAMES AND RESIDENCE ADDRESSES OF ALL PRINCIPALS 27 OF THE APPLICANT, INCLUDING ALL OFFICERS, DIRECTORS AND 28 OWNERS. 29 (4) WHETHER ANY OF THE OWNERS, DIRECTORS, OFFICERS OR 30 EMPLOYEES OF THE APPLICANT ARE RELATED BY BLOOD, MARRIAGE OR 19890H0365B3469 - 27 -
1 ADOPTION TO ANY OTHER DIRECTORS, OFFICERS, OWNERS OR 2 EMPLOYEES OF THE APPLICANT, ANY OFFICER, DIRECTOR, TRUSTEE OR 3 EMPLOYEE OF ANY CHARITABLE ORGANIZATION UNDER CONTRACT TO THE 4 APPLICANT OR ANY SUPPLIER OR VENDOR PROVIDING GOODS OR 5 SERVICES TO ANY CHARITABLE ORGANIZATION UNDER CONTRACT TO THE 6 APPLICANT. 7 (5) THE NAME OF ANY PERSON WHO IS IN CHARGE OF ANY 8 SOLICITATION ACTIVITY. 9 (B) REGISTRATION FEE.--THE APPLICATION FOR REGISTRATION 10 SHALL BE ACCOMPANIED BY A FEE OF $100. A PROFESSIONAL 11 FUNDRAISING COUNSEL WHICH IS A PARTNERSHIP OR CORPORATION MAY 12 REGISTER FOR AND PAY A SINGLE FEE ON BEHALF OF ALL OF ITS 13 PARTNERS, MEMBERS, OFFICERS, DIRECTORS, AGENTS AND EMPLOYEES. 14 EACH REGISTRATION SHALL BE VALID FOR ONE YEAR AND MAY BE RENEWED 15 FOR ADDITIONAL ONE-YEAR PERIODS UPON APPLICATION TO THE 16 DEPARTMENT AND PAYMENT OF THE REGISTRATION FEE. 17 (C) DEPARTMENT REVIEW.--THE DEPARTMENT SHALL EXAMINE EACH 18 REGISTRATION STATEMENT AND SUPPORTING DOCUMENTS FILED BY A 19 PROFESSIONAL FUNDRAISING COUNSEL AND SHALL DETERMINE WHETHER THE 20 REGISTRATION REQUIREMENTS ARE SATISFIED. IF THE DEPARTMENT 21 DETERMINES THAT THE REGISTRATION REQUIREMENTS ARE NOT SATISFIED, 22 THE DEPARTMENT MUST NOTIFY THE PROFESSIONAL FUNDRAISING COUNSEL 23 WITHIN TEN WORKING DAYS OF ITS RECEIPT OF ITS REGISTRATION 24 STATEMENT; OTHERWISE THE REGISTRATION STATEMENT IS DEEMED TO BE 25 APPROVED. WITHIN SEVEN DAYS AFTER RECEIPT OF A NOTIFICATION THAT 26 THE REGISTRATION REQUIREMENTS ARE NOT SATISFIED, THE 27 PROFESSIONAL FUNDRAISING COUNSEL MAY REQUEST A HEARING. THE 28 HEARING MUST BE HELD WITHIN SEVEN DAYS OF RECEIPT OF THE REQUEST 29 AND A DETERMINATION MUST BE RENDERED WITHIN THREE WORKING DAYS 30 OF THE HEARING. 19890H0365B3469 - 28 -
1 (D) WRITTEN CONTRACT.--THERE SHALL BE A WRITTEN CONTRACT 2 BETWEEN A CHARITABLE ORGANIZATION AND A PROFESSIONAL FUNDRAISING 3 COUNSEL WHICH SHALL BE FILED BY THE PROFESSIONAL FUNDRAISING 4 COUNSEL WITH THE DEPARTMENT AT LEAST TEN WORKING DAYS PRIOR TO 5 THE PERFORMANCE BY THE PROFESSIONAL FUNDRAISING COUNSEL OF ANY 6 SERVICE. NO SOLICITATION PURSUANT TO THE CONTRACT SHALL BEGIN 7 BEFORE THE DEPARTMENT HAS APPROVED THE CONTRACT PURSUANT TO 8 SUBSECTION (E). THE CONTRACT MUST BE SIGNED BY TWO AUTHORIZED 9 OFFICIALS OF THE CHARITABLE ORGANIZATION, ONE OF WHOM MUST BE A 10 MEMBER OF THE ORGANIZATION'S GOVERNING BODY, AND THE AUTHORIZED 11 CONTRACTING OFFICER FOR THE PROFESSIONAL FUNDRAISING COUNSEL. 12 THE CONTRACT SHALL CONTAIN ALL OF THE FOLLOWING PROVISIONS: 13 (1) A STATEMENT OF THE CHARITABLE PURPOSE FOR WHICH THE 14 SOLICITATION CAMPAIGN IS BEING CONDUCTED. 15 (2) A STATEMENT OF THE RESPECTIVE OBLIGATIONS OF THE 16 PROFESSIONAL FUNDRAISING COUNSEL AND THE CHARITABLE 17 ORGANIZATION. 18 (3) A CLEAR STATEMENT OF THE FEES WHICH WILL BE PAID TO 19 THE PROFESSIONAL FUNDRAISING COUNSEL. 20 (4) THE EFFECTIVE AND TERMINATION DATES. 21 (5) A STATEMENT THAT THE PROFESSIONAL FUNDRAISING 22 COUNSEL WILL NOT AT ANY TIME HAVE CUSTODY OF CONTRIBUTIONS. 23 (6) ANY OTHER INFORMATION REQUIRED BY THE REGULATIONS OF 24 THE DEPARTMENT. 25 (E) DEPARTMENT REVIEW.--THE DEPARTMENT SHALL EXAMINE EACH 26 CONTRACT FILED BY A PROFESSIONAL FUNDRAISING COUNSEL AND SHALL 27 DETERMINE WHETHER THE CONTRACT CONTAINS THE REQUIRED 28 INFORMATION. IF THE DEPARTMENT DETERMINES THAT THE REQUIREMENTS 29 ARE NOT SATISFIED, THE DEPARTMENT MUST NOTIFY THE PROFESSIONAL 30 FUNDRAISING COUNSEL WITHIN TEN WORKING DAYS OF ITS RECEIPT OF 19890H0365B3469 - 29 -
1 THE CONTRACT; OTHERWISE THE CONTRACT IS DEEMED TO BE APPROVED. 2 WITHIN SEVEN DAYS AFTER RECEIPT OF A NOTIFICATION THAT THE 3 REQUIREMENTS ARE NOT SATISFIED, THE PROFESSIONAL FUNDRAISING 4 COUNSEL MAY REQUEST A HEARING. THE HEARING MUST BE HELD WITHIN 5 SEVEN DAYS OF RECEIPT OF THE REQUEST AND A DETERMINATION MUST BE 6 RENDERED WITHIN THREE WORKING DAYS OF THE HEARING. 7 SECTION 9. REGISTRATION OF PROFESSIONAL SOLICITORS; CONTRACT 8 AND DISCLOSURE REQUIREMENTS; BONDS; RECORDS; 9 BOOKS. 10 (A) REGISTRATION AND APPROVAL REQUIRED.--NO PERSON SHALL ACT 11 AS A PROFESSIONAL SOLICITOR BEFORE OBTAINING DEPARTMENT APPROVAL 12 OF A REGISTRATION STATEMENT PURSUANT TO SUBSECTION (D) OR AFTER 13 THE EXPIRATION, SUSPENSION OR REVOCATION OF SUCH REGISTRATION. A 14 REGISTRATION APPLICATION SHALL BE SIGNED AND SWORN TO BY THE 15 PRINCIPAL OFFICER OF THE PROFESSIONAL SOLICITOR, AND SHALL 16 CONTAIN ALL OF THE FOLLOWING INFORMATION: 17 (1) THE ADDRESS OF THE PRINCIPAL PLACE OF BUSINESS OF 18 THE APPLICANT AND ANY PENNSYLVANIA ADDRESSES, IF THE 19 PRINCIPAL PLACE OF BUSINESS IS LOCATED OUTSIDE THIS 20 COMMONWEALTH. 21 (2) THE FORM OF THE APPLICANT'S BUSINESS. 22 (3) THE NAMES AND RESIDENCE ADDRESSES OF ALL PRINCIPALS 23 OF THE APPLICANT, INCLUDING ALL OFFICERS, DIRECTORS AND 24 OWNERS. 25 (4) WHETHER ANY OF THE OWNERS, DIRECTORS, OFFICERS OR 26 EMPLOYEES OF THE APPLICANT ARE RELATED BY BLOOD, MARRIAGE OR 27 ADOPTION TO ANY OTHER DIRECTORS, OFFICERS, OWNERS OR 28 EMPLOYEES OF THE APPLICANT, ANY OFFICER, DIRECTOR, TRUSTEE OR 29 EMPLOYEE OF ANY CHARITABLE ORGANIZATION UNDER CONTRACT TO THE 30 APPLICANT OR ANY SUPPLIER OR VENDOR PROVIDING GOODS OR 19890H0365B3469 - 30 -
1 SERVICES TO ANY CHARITABLE ORGANIZATION UNDER CONTRACT TO THE 2 APPLICANT. 3 (5) THE NAME OF ALL PERSONS IN CHARGE OF ANY 4 SOLICITATION ACTIVITY. 5 (B) REGISTRATION FEE.--THE APPLICATION FOR REGISTRATION 6 SHALL BE ACCOMPANIED BY A FEE OF $100. A PROFESSIONAL SOLICITOR 7 WHICH IS A PARTNERSHIP OR CORPORATION MAY REGISTER FOR AND PAY A 8 SINGLE FEE ON BEHALF OF ALL OF ITS PARTNERS, MEMBERS, OFFICERS, 9 DIRECTORS, AGENTS AND EMPLOYEES. EACH REGISTRATION SHALL BE 10 VALID FOR ONE YEAR AND MAY BE RENEWED FOR ADDITIONAL ONE-YEAR 11 PERIODS UPON APPLICATION TO THE DEPARTMENT AND PAYMENT OF THE 12 REGISTRATION FEE. 13 (C) BOND.--A PROFESSIONAL SOLICITOR SHALL, AT THE TIME OF 14 MAKING APPLICATION FOR REGISTRATION AND RENEWAL OF REGISTRATION, 15 FILE WITH AND HAVE APPROVED BY THE DEPARTMENT A BOND, IN WHICH 16 IT SHALL BE THE PRINCIPAL OBLIGOR IN THE SUM OF $25,000, OR A 17 GREATER AMOUNT AS PRESCRIBED BY THE REGULATIONS OF THE 18 DEPARTMENT AND WHICH SHALL HAVE ONE OR MORE SURETIES 19 SATISFACTORY TO THE DEPARTMENT WHOSE LIABILITY IN THE AGGREGATE 20 AS SUCH SURETIES WILL AT LEAST EQUAL THAT SUM AND MAINTAIN THE 21 BOND IN EFFECT AS LONG AS THE REGISTRATION IS IN EFFECT. THE 22 BOND SHALL RUN TO THE COMMONWEALTH FOR USE OF THE SECRETARY, 23 ATTORNEY GENERAL AND ANY PERSON WHO MAY HAVE A CAUSE OF ACTION 24 AGAINST THE OBLIGOR FOR ANY LOSSES RESULTING FROM MALFEASANCE, 25 NONFEASANCE OR MISFEASANCE IN THE CONDUCT OF SOLICITATION 26 ACTIVITIES. A PROFESSIONAL SOLICITOR WHICH IS A PARTNERSHIP OR 27 CORPORATION MAY FILE ONE $25,000 BOND OR AN AMOUNT SPECIFIED BY 28 REGULATION OF THE DEPARTMENT ON BEHALF OF ALL ITS PARTNERS, 29 MEMBERS, OFFICERS, DIRECTORS, AGENTS AND EMPLOYEES. 30 (D) DEPARTMENT REVIEW.--THE DEPARTMENT SHALL EXAMINE EACH 19890H0365B3469 - 31 -
1 REGISTRATION STATEMENT AND SUPPORTING DOCUMENTS FILED BY A 2 PROFESSIONAL SOLICITOR AND SHALL DETERMINE WHETHER THE 3 REGISTRATION REQUIREMENTS ARE SATISFIED. IF THE DEPARTMENT 4 DETERMINES THAT REGISTRATION REQUIREMENTS ARE NOT SATISFIED, THE 5 DEPARTMENT MUST NOTIFY THE PROFESSIONAL SOLICITOR WITHIN TEN 6 WORKING DAYS OF ITS RECEIPT OF ITS REGISTRATION STATEMENT; 7 OTHERWISE THE REGISTRATION STATEMENT IS DEEMED TO BE APPROVED. 8 WITHIN SEVEN DAYS AFTER RECEIPT OF A NOTIFICATION THAT THE 9 REGULATION REQUIREMENTS ARE NOT SATISFIED, THE PROFESSIONAL 10 SOLICITOR MAY REQUEST A HEARING. THE HEARING MUST BE HELD WITHIN 11 SEVEN DAYS OF RECEIPT OF THE REQUEST AND A DETERMINATION MUST BE 12 RENDERED WITHIN THREE WORKING DAYS OF THE HEARING. 13 (E) CONTRACT FILING.--NO LESS THAN TEN WORKING DAYS PRIOR TO 14 THE COMMENCEMENT OF EACH SOLICITATION CAMPAIGN, A PROFESSIONAL 15 SOLICITOR SHALL FILE WITH THE DEPARTMENT A COPY OF THE CONTRACT 16 DESCRIBED IN SUBSECTION (F) AND A WRITTEN SOLICITATION NOTICE. 17 NO SOLICITATION PURSUANT TO THE CONTRACT SHALL BEGIN BEFORE THE 18 DEPARTMENT HAS APPROVED THE CONTRACT PURSUANT TO SUBSECTION (G). 19 THE SOLICITATION NOTICE SHALL BE ACCOMPANIED BY A FEE OF $25, 20 SHALL BE SIGNED AND SWORN TO BY THE AUTHORIZED CONTRACTING 21 OFFICER FOR THE PROFESSIONAL SOLICITOR AND SHALL CONTAIN ALL OF 22 THE FOLLOWING INFORMATION: 23 (1) A DESCRIPTION OF THE SOLICITATION EVENT OR CAMPAIGN. 24 (2) EACH LOCATION AND TELEPHONE NUMBER FROM WHICH THE 25 SOLICITATION IS TO BE CONDUCTED. 26 (3) THE LEGAL NAME AND RESIDENT ADDRESS OF EACH PERSON 27 RESPONSIBLE FOR DIRECTING AND SUPERVISING THE CONDUCT OF THE 28 CAMPAIGN AND EACH PERSON WHO IS TO SOLICIT DURING SUCH 29 CAMPAIGN. 30 (4) A STATEMENT AS TO WHETHER THE PROFESSIONAL SOLICITOR 19890H0365B3469 - 32 -
1 WILL AT ANY TIME HAVE CUSTODY OF CONTRIBUTIONS. 2 (5) THE ACCOUNT NUMBER AND LOCATION OF EACH BANK ACCOUNT 3 WHERE RECEIPTS FROM THE CAMPAIGN ARE TO BE DEPOSITED. 4 (6) FULL AND FAIR DESCRIPTION OF THE CHARITABLE PROGRAM 5 FOR WHICH THE SOLICITATION CAMPAIGN IS BEING CARRIED OUT. 6 (7) ANY OTHER INFORMATION REQUIRED BY THE REGULATIONS OF 7 THE DEPARTMENT. 8 (F) WRITTEN CONTRACT.--THERE SHALL BE A WRITTEN CONTRACT 9 BETWEEN A PROFESSIONAL SOLICITOR AND A CHARITABLE ORGANIZATION 10 FOR EACH SOLICITATION CAMPAIGN WHICH SHALL BE SIGNED BY TWO 11 AUTHORIZED OFFICIALS OF THE CHARITABLE ORGANIZATION, ONE OF WHOM 12 MUST BE A MEMBER OF THE ORGANIZATION'S GOVERNING BODY, AND THE 13 AUTHORIZED CONTRACTING OFFICER FOR THE PROFESSIONAL SOLICITOR 14 AND WHICH SHALL CONTAIN ALL OF THE FOLLOWING PROVISIONS: 15 (1) A STATEMENT OF THE CHARITABLE PURPOSE FOR WHICH THE 16 SOLICITATION CAMPAIGN IS BEING CONDUCTED. 17 (2) A STATEMENT OF THE RESPECTIVE OBLIGATIONS OF THE 18 PROFESSIONAL SOLICITOR AND THE CHARITABLE ORGANIZATION. 19 (3) A STATEMENT OF THE GUARANTEED MINIMUM PERCENTAGE OF 20 THE GROSS RECEIPTS FROM CONTRIBUTIONS WHICH WILL BE REMITTED 21 TO THE CHARITABLE ORGANIZATION, IF ANY, OR, IF THE 22 SOLICITATION INVOLVES THE SALE OF GOODS, SERVICES OR TICKETS 23 TO A FUNDRAISING EVENT, THE PERCENTAGE OF THE PURCHASE PRICE 24 WHICH WILL BE REMITTED TO THE CHARITABLE ORGANIZATION, IF 25 ANY. ANY STATED PERCENTAGE SHALL EXCLUDE ANY AMOUNT WHICH THE 26 CHARITABLE ORGANIZATION IS TO PAY AS FUNDRAISING COSTS. 27 (4) A STATEMENT OF THE PERCENTAGE OF THE GROSS REVENUE 28 WHICH THE PROFESSIONAL SOLICITOR WILL BE COMPENSATED. IF THE 29 COMPENSATION OF THE PROFESSIONAL SOLICITOR IS NOT CONTINGENT 30 UPON THE NUMBER OF CONTRIBUTIONS OR THE AMOUNT OF REVENUE 19890H0365B3469 - 33 -
1 RECEIVED, HIS COMPENSATION SHALL BE EXPRESSED AS A REASONABLE 2 ESTIMATE OF THE PERCENTAGE OF THE GROSS REVENUE, AND THE 3 CONTRACT SHALL CLEARLY DISCLOSE THE ASSUMPTIONS UPON WHICH 4 THE ESTIMATE IS BASED. THE STATED ASSUMPTIONS SHALL BE BASED 5 UPON ALL OF THE RELEVANT FACTS KNOWN TO THE PROFESSIONAL 6 SOLICITOR REGARDING THE SOLICITATION TO BE CONDUCTED BY THE 7 PROFESSIONAL SOLICITOR. 8 (5) THE EFFECTIVE AND TERMINATION DATES OF THE CONTRACT. 9 (6) ANY OTHER INFORMATION REQUIRED BY THE REGULATIONS OF 10 THE DEPARTMENT. 11 (G) DEPARTMENT REVIEW.--THE DEPARTMENT SHALL EXAMINE EACH 12 CONTRACT AND SOLICITATION NOTICE FILED BY A PROFESSIONAL 13 SOLICITOR AND SHALL DETERMINE WHETHER THE CONTRACT AND NOTICE 14 CONTAIN THE REQUIRED INFORMATION. IF THE DEPARTMENT DETERMINES 15 THAT THE REQUIREMENTS ARE NOT SATISFIED, THE DEPARTMENT MUST 16 NOTIFY THE PROFESSIONAL SOLICITOR WITHIN TEN WORKING DAYS OF ITS 17 RECEIPT OF THE CONTRACT AND NOTICE; OTHERWISE THE CONTRACT AND 18 NOTICE ARE DEEMED TO BE APPROVED. WITHIN SEVEN DAYS AFTER 19 RECEIPT OF A NOTIFICATION THAT THE REQUIREMENTS ARE NOT 20 SATISFIED, THE PROFESSIONAL SOLICITOR MAY REQUEST A HEARING. THE 21 HEARING MUST BE HELD WITHIN SEVEN DAYS OF RECEIPT OF THE REQUEST 22 AND A DETERMINATION MUST BE RENDERED WITHIN THREE WORKING DAYS 23 OF THE HEARING. 24 (H) REQUIRED DISCLOSURES.--PRIOR TO ORALLY REQUESTING A 25 CONTRIBUTION OR CONTEMPORANEOUSLY WITH A WRITTEN REQUEST FOR A 26 CONTRIBUTION, A PROFESSIONAL SOLICITOR SHALL BE RESPONSIBLE FOR 27 CLEARLY AND CONSPICUOUSLY DISCLOSING: 28 (1) THE NAME OF THE PROFESSIONAL SOLICITOR AS ON FILE 29 WITH THE DEPARTMENT AND THAT THE SOLICITATION IS BEING 30 CONDUCTED BY A PROFESSIONAL SOLICITOR WHO IS BEING PAID FOR 19890H0365B3469 - 34 -
1 HIS SERVICES. 2 (2) IF THE INDIVIDUAL ACTING ON BEHALF OF THE 3 PROFESSIONAL SOLICITOR IDENTIFIES HIMSELF BY NAME, THE 4 INDIVIDUAL'S LEGAL NAME. 5 (3) THE NAME OF THE CHARITABLE ORGANIZATION AND A 6 DESCRIPTION OF HOW THE CONTRIBUTIONS RAISED BY THE 7 SOLICITATION WILL BE UTILIZED FOR A CHARITABLE PURPOSE, OR IF 8 THERE IS NO CHARITABLE ORGANIZATION, A DESCRIPTION AS TO HOW 9 THE CONTRIBUTIONS RAISED BY THE SOLICITATION WILL BE UTILIZED 10 FOR A CHARITABLE PURPOSE. 11 (I) RESPONSES.--ANY RESPONSES GIVEN BY OR ON BEHALF OF A 12 PROFESSIONAL SOLICITOR TO AN ORAL OR WRITTEN REQUEST FOR 13 INFORMATION SHALL BE TRUTHFUL. 14 (J) INFORMATION ON DISCLOSURE.--IN THE CASE OF A 15 SOLICITATION CAMPAIGN CONDUCTED ORALLY, WHETHER BY TELEPHONE OR 16 OTHERWISE, ANY WRITTEN CONFIRMATION OR RECEIPT OR REMINDER SENT 17 TO ANY PERSON WHO HAS CONTRIBUTED OR HAS PLEDGED TO CONTRIBUTE, 18 SHALL INCLUDE A CLEAR AND CONSPICUOUS DISCLOSURE OF THE 19 INFORMATION REQUIRED BY SUBSECTION (H). 20 (K) NOTICE.--IN ADDITION TO THE INFORMATION REQUIRED BY 21 SUBSECTION (J), ANY WRITTEN CONFIRMATION, RECEIPT OR REMINDER OF 22 A CONTRIBUTION MADE PURSUANT TO AN ORAL SOLICITATION AND ANY 23 WRITTEN SOLICITATION SHALL CONSPICUOUSLY STATE: 24 "A COPY OF THE OFFICIAL REGISTRATION AND FINANCIAL 25 INFORMATION MAY BE OBTAINED FROM THE PENNSYLVANIA 26 DEPARTMENT OF STATE BY CALLING TOLL FREE, WITHIN 27 PENNSYLVANIA, 1 (800) 000-0000. REGISTRATION DOES NOT 28 IMPLY ENDORSEMENT." 29 (L) FINANCIAL REPORTS.--WITHIN 90 DAYS AFTER A SOLICITATION 30 CAMPAIGN HAS BEEN COMPLETED, AND ON THE ANNIVERSARY OF THE 19890H0365B3469 - 35 -
1 COMMENCEMENT OF A SOLICITATION CAMPAIGN LASTING MORE THAN ONE 2 YEAR, A PROFESSIONAL SOLICITOR SHALL FILE WITH THE DEPARTMENT A 3 FINANCIAL REPORT FOR THE CAMPAIGN, INCLUDING GROSS REVENUE AND 4 AN ITEMIZATION OF ALL EXPENSES INCURRED. THIS REPORT SHALL BE 5 SIGNED AND SWORN TO BY THE AUTHORIZED CONTRACTING AGENT FOR THE 6 PROFESSIONAL SOLICITOR AND TWO AUTHORIZED OFFICIALS OF THE 7 CHARITABLE ORGANIZATION. 8 (M) RETENTION OF RECORDS, ETC.--A PROFESSIONAL SOLICITOR 9 SHALL MAINTAIN DURING EACH SOLICITATION CAMPAIGN AND FOR NOT 10 LESS THAN THREE YEARS AFTER THE COMPLETION OF SUCH CAMPAIGN THE 11 FOLLOWING RECORDS, WHICH SHALL BE AVAILABLE FOR INSPECTION UPON 12 DEMAND BY THE DEPARTMENT OR THE OFFICE OF ATTORNEY GENERAL: 13 (1) THE DATE AND AMOUNT OF EACH CONTRIBUTION RECEIVED 14 AND THE NAME AND ADDRESS OF EACH CONTRIBUTOR. 15 (2) THE NAME AND RESIDENCE OF EACH EMPLOYEE, AGENT OR 16 OTHER PERSON INVOLVED IN THE SOLICITATION. 17 (3) RECORDS OF ALL REVENUE RECEIVED AND EXPENSES 18 INCURRED IN THE COURSE OF THE SOLICITATION CAMPAIGN. 19 (4) THE LOCATION AND ACCOUNT NUMBER OF EACH BANK OR 20 OTHER FINANCIAL INSTITUTION ACCOUNT IN WHICH THE PROFESSIONAL 21 SOLICITOR HAS DEPOSITED REVENUE FROM THE SOLICITATION 22 CAMPAIGN. 23 (N) RECORDS FROM TICKET SALES.--IF THE PROFESSIONAL 24 SOLICITOR SELLS TICKETS TO AN EVENT AND REPRESENTS THAT TICKETS 25 WILL BE DONATED FOR USE BY ANOTHER, THE PROFESSIONAL SOLICITOR 26 SHALL MAINTAIN, FOR NOT LESS THAN THREE YEARS AFTER THE 27 COMPLETION OF SUCH EVENT, THE FOLLOWING RECORDS, WHICH SHALL BE 28 AVAILABLE FOR INSPECTION UPON DEMAND BY THE DEPARTMENT OR THE 29 OFFICE OF ATTORNEY GENERAL: 30 (1) THE NUMBER OF TICKETS PURCHASED AND DONATED BY EACH 19890H0365B3469 - 36 -
1 CONTRIBUTOR. 2 (2) THE NAME AND ADDRESS OF ALL ORGANIZATIONS RECEIVING 3 DONATED TICKETS FOR USE BY OTHERS, INCLUDING THE NUMBER OF 4 TICKETS RECEIVED BY EACH ORGANIZATION. 5 (O) DEPOSIT OF CONTRIBUTIONS.--EACH CONTRIBUTION IN THE 6 CONTROL OR CUSTODY OF THE PROFESSIONAL SOLICITOR SHALL, IN ITS 7 ENTIRETY AND WITHIN FIVE DAYS OF ITS RECEIPT, BE DEPOSITED IN AN 8 ACCOUNT AT A BANK OR OTHER FEDERALLY INSURED FINANCIAL 9 INSTITUTION. THE ACCOUNT SHALL BE IN THE NAME OF THE CHARITABLE 10 ORGANIZATION WITH WHOM THE PROFESSIONAL SOLICITOR HAS CONTRACTED 11 AND THE CHARITABLE ORGANIZATION SHALL HAVE SOLE CONTROL OVER ALL 12 WITHDRAWALS FROM THE ACCOUNT. 13 (P) UPDATING OF INFORMATION.--ANY MATERIAL CHANGE IN ANY 14 INFORMATION FILED WITH THE DEPARTMENT PURSUANT TO THIS SECTION 15 SHALL BE REPORTED IN WRITING BY THE PROFESSIONAL SOLICITOR TO 16 THE DEPARTMENT NOT MORE THAN SEVEN DAYS AFTER SUCH CHANGE 17 OCCURS. 18 (Q) RESTRICTIONS.--NO PERSON MAY ACT AS A PROFESSIONAL 19 SOLICITOR IF SUCH PERSON, ANY OFFICER OR DIRECTOR THEREOF, ANY 20 PERSON WITH A CONTROLLING INTEREST THEREIN, OR ANY PERSON THE 21 PROFESSIONAL SOLICITOR EMPLOYS, ENGAGES OR PROCURES TO SOLICIT 22 FOR COMPENSATION, HAS BEEN CONVICTED BY A COURT OF ANY STATE OR 23 THE UNITED STATES OF ANY FELONY, OR OF ANY MISDEMEANOR INVOLVING 24 DISHONESTY OR ARISING FROM THE CONDUCT OF A SOLICITATION FOR A 25 CHARITABLE ORGANIZATION OR PURPOSE. 26 SECTION 10. CONTRACTS VOIDABLE BY CHARITABLE ORGANIZATIONS. 27 (A) CONTRACTS WITH REGISTERED GROUPS.--NO PROFESSIONAL 28 FUNDRAISING COUNSEL OR PROFESSIONAL SOLICITOR SHALL CONTRACT 29 WITH A CHARITABLE ORGANIZATION UNLESS SUCH PROFESSIONAL 30 FUNDRAISING COUNSEL OR PROFESSIONAL SOLICITOR IS REGISTERED WITH 19890H0365B3469 - 37 -
1 THE DEPARTMENT. A CONTRACT WITH AN UNREGISTERED PROFESSIONAL 2 FUNDRAISING COUNSEL OR PROFESSIONAL SOLICITOR SHALL BE VOIDABLE 3 AT THE OPTION OF THE CHARITABLE ORGANIZATION. 4 (B) CANCELLATION OF CONTRACT.--WHENEVER A CHARITABLE 5 ORGANIZATION CONTRACTS WITH A PROFESSIONAL FUNDRAISING COUNSEL 6 OR PROFESSIONAL SOLICITOR, THE CHARITABLE ORGANIZATION SHALL 7 HAVE THE RIGHT TO CANCEL THE CONTRACT WITHOUT COST, PENALTY OR 8 LIABILITY FOR A PERIOD OF TEN DAYS FOLLOWING THE DATE ON WHICH 9 THAT CONTRACT IS EXECUTED. ANY PROVISION IN THE CONTRACT THAT IS 10 INTENDED TO WAIVE THIS RIGHT OF CANCELLATION SHALL BE VOID AND 11 UNENFORCEABLE. 12 (C) MANNER OF CANCELLATION.--A CHARITABLE ORGANIZATION MAY 13 CANCEL A CONTRACT PURSUANT TO SUBSECTION (B) BY A WRITTEN NOTICE 14 OF CANCELLATION. IF MAILED, CANCELLATION SHALL BE DEEMED 15 EFFECTIVE WHEN DEPOSITED WITH THE UNITED STATES POSTAL SERVICE, 16 PROPERLY ADDRESSED AND POSTAGE PREPAID. THE NOTICE SHALL BE 17 SUFFICIENT IF IT INDICATES THAT THE CHARITABLE ORGANIZATION DOES 18 NOT INTEND TO BE BOUND BY THE CONTRACT. 19 (D) CANCELLATION NOTICE TO DEPARTMENT.--WHENEVER A 20 CHARITABLE ORGANIZATION CANCELS A CONTRACT PURSUANT TO THE 21 PROVISIONS OF THIS SECTION, IT SHALL MAIL A DUPLICATE COPY OF 22 THE NOTICE OF CANCELLATION TO THE DEPARTMENT. 23 (E) STATUS OF FUNDS AFTER CANCELLATION.--ANY FUNDS COLLECTED 24 AFTER A CONTRACT HAS BEEN CANCELED SHALL BE DEEMED TO BE HELD IN 25 TRUST FOR THE BENEFIT OF THE CHARITABLE ORGANIZATION WITHOUT 26 DEDUCTION FOR COST OR EXPENSES OF ANY NATURE. A CHARITABLE 27 ORGANIZATION SHALL BE ENTITLED TO RECOVER ALL FUNDS COLLECTED 28 AFTER THE DATE OF CANCELLATION. 29 SECTION 11. INFORMATION FILED TO BECOME PUBLIC RECORDS. 30 EXCEPT AS OTHERWISE PROVIDED IN SECTION 12, REGISTRATION 19890H0365B3469 - 38 -
1 STATEMENTS AND APPLICATIONS, REPORTS, NOTICES, CONTRACTS OR 2 AGREEMENTS BETWEEN CHARITABLE ORGANIZATIONS AND PROFESSIONAL 3 FUNDRAISING COUNSEL, PROFESSIONAL SOLICITORS AND COMMERCIAL CO- 4 VENTURERS, AND ALL OTHER DOCUMENTS AND INFORMATION REQUIRED TO 5 BE FILED UNDER THIS ACT WITH THE DEPARTMENT SHALL BECOME PUBLIC 6 RECORDS IN THE OFFICE OF THE BUREAU AND SHALL BE OPEN TO THE 7 GENERAL PUBLIC AT SUCH TIME AND UNDER SUCH CONDITIONS AS THE 8 DEPARTMENT MAY PRESCRIBE. 9 SECTION 12. RECORDS TO BE KEPT BY CHARITABLE ORGANIZATIONS, 10 PROFESSIONAL FUNDRAISING COUNSELS AND 11 PROFESSIONAL SOLICITORS; INSPECTION; RETENTION. 12 EVERY CHARITABLE ORGANIZATION, PROFESSIONAL FUNDRAISING 13 COUNSEL, AND PROFESSIONAL SOLICITOR SUBJECT TO THE PROVISIONS OF 14 THIS ACT SHALL, IN ACCORDANCE WITH THE RULES AND REGULATIONS 15 PRESCRIBED BY THE DEPARTMENT, KEEP TRUE FISCAL RECORDS AS TO ITS 16 ACTIVITIES IN THIS COMMONWEALTH AS MAY BE COVERED UNDER THIS 17 ACT, IN SUCH FORM AS WILL ENABLE THEM ACCURATELY TO PROVIDE THE 18 INFORMATION REQUIRED UNDER THIS ACT. SUCH RECORDS SHALL BE MADE 19 AVAILABLE FOR INSPECTION UPON DEMAND BY THE DEPARTMENT OR THE 20 OFFICE OF ATTORNEY GENERAL. HOWEVER, NAMES, ADDRESSES AND 21 IDENTITIES OF CONTRIBUTORS AND AMOUNTS CONTRIBUTED BY THEM SHALL 22 NOT BE CONSIDERED A MATTER OF PUBLIC RECORD AND, THEREFORE, 23 SHALL NOT GENERALLY BE MADE AVAILABLE FOR PUBLIC INSPECTION, 24 SHALL NOT BE USED FOR A PURPOSE INCONSISTENT WITH THIS ACT, AND 25 SHALL BE REMOVED FROM THE RECORDS IN THE CUSTODY OF THE 26 DEPARTMENT AT SUCH TIME THAT SUCH INFORMATION IS NO LONGER 27 NECESSARY FOR THE ENFORCEMENT OF THIS ACT. SUCH RECORDS SHALL BE 28 MAINTAINED FOR A PERIOD OF AT LEAST THREE YEARS AFTER THE END OF 29 THE PERIOD OF REGISTRATION TO WHICH THEY RELATE. 30 SECTION 13. LIMITATION ON ACTIVITIES OF CHARITABLE 19890H0365B3469 - 39 -
1 ORGANIZATIONS; DISCLOSURE REQUIREMENTS. 2 (A) SOLICITATION LIMITATION.--A CHARITABLE ORGANIZATION MAY 3 ONLY SOLICIT CONTRIBUTIONS FOR THE CHARITABLE PURPOSE EXPRESSED 4 IN SOLICITATION FOR CONTRIBUTIONS OR THE REGISTRATION STATEMENT 5 OF THE CHARITABLE ORGANIZATION AND MAY ONLY APPLY CONTRIBUTIONS 6 IN A MANNER SUBSTANTIALLY CONSISTENT WITH THAT PURPOSE. 7 (B) SOLICITATION DISCLOSURES.--A CHARITABLE ORGANIZATION 8 SOLICITING IN THIS COMMONWEALTH SHALL INCLUDE ALL OF THE 9 FOLLOWING DISCLOSURES AT THE POINT OF SOLICITATION: 10 (1) ITS IDENTITY AND LOCATION AND, IF DIFFERENT, THE 11 NAME AND ADDRESS OF THE CHARITABLE ORGANIZATION ON WHOSE 12 BEHALF THE SOLICITATION IS BEING CONDUCTED. 13 (2) IF REQUESTED, THE NAME, AND ADDRESS OR TELEPHONE 14 NUMBER OF A REPRESENTATIVE TO WHOM INQUIRIES COULD BE 15 ADDRESSED. 16 (3) A FULL AND FAIR DESCRIPTION OF THE CHARITABLE 17 PURPOSE OR PURPOSES FOR WHICH THE SOLICITATION IS BEING MADE, 18 AND A SOURCE FROM WHICH WRITTEN INFORMATION IS AVAILABLE. 19 (4) IF REQUESTED, THE SOURCE FROM WHICH A FINANCIAL 20 STATEMENT MAY BE OBTAINED. SUCH FINANCIAL STATEMENT SHALL BE 21 CONSISTENT WITH THE ANNUAL FINANCIAL REPORT REQUESTED UNDER 22 SECTION 5 AND SHALL DISCLOSE ASSETS, LIABILITIES, FUND 23 BALANCES, REVENUE AND EXPENSES FOR THE PRECEDING FISCAL YEAR. 24 EXPENSES SHALL BE SEPARATED INTO PROGRAM SERVICES, 25 ADMINISTRATIVE COSTS AND FUNDRAISING COSTS. 26 (C) NOTICE ON PRINTED SOLICITATION.--ON EVERY PRINTED 27 SOLICITATION OR WRITTEN CONFIRMATION, RECEIPT, OR REMINDER OF A 28 CONTRIBUTION, THE FOLLOWING STATEMENT MUST BE CONSPICUOUSLY 29 PRINTED: 30 "A COPY OF THE OFFICIAL REGISTRATION AND FINANCIAL 19890H0365B3469 - 40 -
1 INFORMATION MAY BE OBTAINED FROM THE PENNSYLVANIA 2 DEPARTMENT OF STATE BY CALLING TOLL FREE, WITHIN 3 PENNSYLVANIA, 1 (800) 000-0000. REGISTRATION DOES NOT 4 IMPLY ENDORSEMENT." 5 (D) MISREPRESENTATION.--A CHARITABLE ORGANIZATION MAY NOT 6 MISREPRESENT ITS PURPOSE OR NATURE, OR THE PURPOSE OR 7 BENEFICIARY OF A SOLICITATION. A MISREPRESENTATION MAY BE 8 ACCOMPLISHED BY WORDS OR CONDUCT OR FAILURE TO DISCLOSE A 9 MATERIAL FACT. 10 (E) CONTROL OVER FUNDRAISING ACTIVITIES.--A CHARITABLE 11 ORGANIZATION MUST ESTABLISH AND EXERCISE CONTROL OVER 12 FUNDRAISING ACTIVITIES CONDUCTED FOR ITS BENEFIT, INCLUDING 13 APPROVAL OF ALL WRITTEN CONTRACTS AND AGREEMENTS, AND MUST 14 ASSURE THAT FUNDRAISING ACTIVITIES ARE CONDUCTED WITHOUT 15 COERCION. 16 (F) RESTRICTIONS ON CERTAIN CONTRACTS.--A CHARITABLE 17 ORGANIZATION SHALL NOT ENTER INTO ANY CONTRACT OR AGREEMENT WITH 18 OR EMPLOY ANY PROFESSIONAL FUNDRAISING COUNSEL OR PROFESSIONAL 19 SOLICITOR UNLESS THAT PROFESSIONAL FUNDRAISING COUNSEL OR 20 PROFESSIONAL SOLICITOR IS REGISTERED WITH THE DEPARTMENT. 21 (G) REGISTRATION WITH DEPARTMENT REQUIRED.--A CHARITABLE 22 ORGANIZATION SHALL NOT ENTER INTO ANY CONTRACT OR AGREEMENT WITH 23 OR RAISE ANY FUNDS FOR ANY CHARITABLE ORGANIZATION REQUIRED TO 24 BE REGISTERED PURSUANT TO THIS ACT UNLESS SUCH CHARITABLE 25 ORGANIZATION IS REGISTERED WITH THE DEPARTMENT. 26 SECTION 14. RECIPROCAL AGREEMENTS. 27 THE SECRETARY MAY ENTER INTO RECIPROCAL AGREEMENTS WITH THE 28 APPROPRIATE AUTHORITY OF ANY OTHER STATE FOR THE PURPOSE OF 29 EXCHANGING INFORMATION WITH RESPECT TO CHARITABLE ORGANIZATIONS, 30 PROFESSIONAL FUNDRAISING COUNSEL AND PROFESSIONAL SOLICITORS. 19890H0365B3469 - 41 -
1 PURSUANT TO SUCH AGREEMENTS, THE SECRETARY MAY ACCEPT 2 INFORMATION FILED BY A CHARITABLE ORGANIZATION, PROFESSIONAL 3 FUNDRAISING COUNSEL OR PROFESSIONAL SOLICITOR WITH THE 4 APPROPRIATE AUTHORITY OF ANOTHER STATE IN LIEU OF THE 5 INFORMATION REQUIRED TO BE FILED IN ACCORDANCE WITH THIS ACT, IF 6 SUCH INFORMATION IS SUBSTANTIALLY SIMILAR TO THE INFORMATION 7 REQUIRED UNDER THIS ACT. THE SECRETARY MAY ALSO GRANT EXEMPTIONS 8 FROM THE REQUIREMENTS FOR THE FILING OF ANNUAL REGISTRATION 9 STATEMENTS WITH THE DEPARTMENT TO CHARITABLE ORGANIZATIONS 10 ORGANIZED UNDER THE LAWS OF ANOTHER STATE HAVING THEIR PRINCIPAL 11 PLACE OF BUSINESS OUTSIDE THIS COMMONWEALTH WHOSE FUNDS ARE 12 DERIVED PRINCIPALLY FROM SOURCES OUTSIDE THIS COMMONWEALTH AND 13 WHICH HAVE BEEN EXEMPTED FROM THE FILING OF REGISTRATION 14 STATEMENTS BY THE STATUTE UNDER WHOSE LAWS THEY ARE ORGANIZED IF 15 SUCH STATE HAS A STATUTE SIMILAR IN SUBSTANCE TO THE PROVISIONS 16 OF THIS ACT. 17 SECTION 15. PROHIBITED ACTS. 18 (A) GENERAL RULE.--REGARDLESS OF A PERSON'S INTENT OR THE 19 LACK OF INJURY, THE FOLLOWING ACTS AND PRACTICES ARE PROHIBITED 20 IN THE PLANNING, CONDUCT OR EXECUTION OF ANY SOLICITATION OR 21 CHARITABLE SALES PROMOTION: 22 (1) OPERATING IN VIOLATION OF, OR FAILING TO COMPLY 23 WITH, ANY OF THE REQUIREMENTS OF THIS ACT, REGULATIONS OF THE 24 DEPARTMENT OR AN ORDER OF THE SECRETARY, OR SOLICITING 25 CONTRIBUTIONS AFTER REGISTRATION WITH THE DEPARTMENT HAS 26 EXPIRED OR HAS BEEN SUSPENDED OR REVOKED OR SOLICITING 27 CONTRIBUTIONS PRIOR TO THE SOLICITATION NOTICE AND CONTRACT 28 HAVING BEEN APPROVED BY THE DEPARTMENT. 29 (2) UTILIZING ANY UNFAIR OR DECEPTIVE ACTS OR PRACTICES 30 OR ENGAGING IN ANY FRAUDULENT CONDUCT WHICH CREATES A 19890H0365B3469 - 42 -
1 LIKELIHOOD OF CONFUSION OR OF MISUNDERSTANDING. 2 (3) UTILIZING ANY REPRESENTATION THAT IMPLIES THE 3 CONTRIBUTION IS FOR OR ON BEHALF OF A CHARITABLE 4 ORGANIZATION, OR UTILIZING ANY EMBLEM, DEVICE OR PRINTED 5 MATTER BELONGING TO OR ASSOCIATED WITH A CHARITABLE 6 ORGANIZATION WITHOUT FIRST BEING AUTHORIZED IN WRITING TO DO 7 SO BY THE CHARITABLE ORGANIZATION. 8 (4) UTILIZING A NAME, SYMBOL OR STATEMENT SO CLOSELY 9 RELATED OR SIMILAR TO THAT USED BY ANOTHER CHARITABLE 10 ORGANIZATION OR OTHER PERSON THAT THE USE THEREOF WOULD TEND 11 TO CONFUSE OR MISLEAD A SOLICITED PERSON. 12 (5) MISREPRESENTING OR MISLEADING ANYONE IN ANY MANNER 13 TO BELIEVE THAT THE PERSON ON WHOSE BEHALF A SOLICITATION OR 14 CHARITABLE SALES PROMOTION IS BEING CONDUCTED IS A CHARITABLE 15 ORGANIZATION OR THAT THE PROCEEDS OF SUCH SOLICITATION OR 16 CHARITABLE SALES PROMOTION WILL BE USED FOR CHARITABLE 17 PURPOSES WHEN SUCH IS NOT THE FACT. 18 (6) MISREPRESENTING OR MISLEADING ANYONE IN ANY MANNER 19 TO BELIEVE THAT ANY OTHER PERSON SPONSORS, ENDORSES OR 20 APPROVES SUCH SOLICITATION OR CHARITABLE SALES PROMOTION WHEN 21 SUCH OTHER PERSON HAS NOT GIVEN CONSENT IN WRITING TO THE USE 22 OF HIS NAME FOR THESE PURPOSES. 23 (7) MISREPRESENTING OR MISLEADING ANYONE IN ANY MANNER 24 TO BELIEVE THAT GOODS OR SERVICES HAVE SPONSORSHIP, APPROVAL, 25 CHARACTERISTICS, INGREDIENTS, USES, BENEFITS OR QUALITIES 26 THAT THEY DO NOT HAVE OR THAT A PERSON HAS A SPONSORSHIP, 27 APPROVAL, STATUS, AFFILIATION OR CONNECTION THAT HE DOES NOT 28 HAVE. 29 (8) UTILIZING OR EXPLOITING THE FACT OF REGISTRATION SO 30 AS TO LEAD ANY PERSON TO BELIEVE THAT SUCH REGISTRATION IN 19890H0365B3469 - 43 -
1 ANY MANNER CONSTITUTES AN ENDORSEMENT OR APPROVAL BY THE 2 COMMONWEALTH. THE USE OF THE FOLLOWING STATEMENT SHALL NOT BE 3 DEEMED A PROHIBITED EXPLOITATION: 4 "A COPY OF THE OFFICIAL REGISTRATION AND FINANCIAL 5 INFORMATION MAY BE OBTAINED FROM THE PENNSYLVANIA 6 DEPARTMENT OF STATE BY CALLING TOLL FREE, WITHIN 7 PENNSYLVANIA, 1 (800) 000-0000. REGISTRATION DOES NOT 8 IMPLY ENDORSEMENT." 9 (9) REPRESENTING DIRECTLY OR BY IMPLICATION THAT A 10 CHARITABLE ORGANIZATION WILL RECEIVE AN AMOUNT GREATER THAN 11 THE ACTUAL NET PROCEEDS REASONABLY ESTIMATED TO BE RETAINED 12 BY THE CHARITY FOR ITS USE. 13 (10) WITH RESPECT TO SOLICITATIONS BY OR ON BEHALF OF 14 LAW ENFORCEMENT PERSONNEL, FIREFIGHTERS, OR OTHER PERSONS WHO 15 PROTECT THE PUBLIC SAFETY, ISSUING, OFFERING, GIVING, 16 DELIVERING OR DISTRIBUTING ANY HONORARY MEMBERSHIP CARDS, 17 COURTESY CARDS OR SIMILAR CARDS, OR ANY STICKERS, EMBLEMS, 18 PLATES OR OTHER SUCH ITEMS WHICH COULD BE USED FOR DISPLAY ON 19 A MOTOR VEHICLE. 20 (11) (I) SOLICITING FOR ADVERTISING TO APPEAR IN A FOR- 21 PROFIT PUBLICATION WHICH RELATES TO, PURPORTS TO RELATE 22 TO, OR WHICH COULD REASONABLY BE CONSTRUED TO RELATE TO 23 ANY CHARITABLE PURPOSE WITHOUT MAKING THE FOLLOWING 24 DISCLOSURES AT THE TIME OF SOLICITATION: 25 (A) THE PUBLICATION IS A FOR-PROFIT, COMMERCIAL 26 ENTERPRISE. 27 (B) TRUE NAME OF THE SOLICITOR AND THE FACT THAT 28 THE SOLICITOR IS A PROFESSIONAL SOLICITOR. 29 (C) THE PUBLICATION IS NOT DIRECTLY AFFILIATED 30 OR SPONSORED BY ANY CHARITABLE ORGANIZATION. 19890H0365B3469 - 44 -
1 (II) WHERE A SALE OF ADVERTISING HAS BEEN MADE, THE 2 SOLICITOR, PRIOR TO ACCEPTING ANY MONEY FOR THE SALE, 3 SHALL PRESENT THE PURCHASER WITH THE SAME DISCLOSURES, IN 4 WRITTEN FORM AND IN CONSPICUOUS TYPE. 5 (12) REPRESENTING THAT ANY PART OF THE CONTRIBUTIONS 6 RECEIVED WILL BE GIVEN OR DONATED TO ANY OTHER CHARITABLE 7 ORGANIZATION UNLESS SUCH ORGANIZATION HAS CONSENTED TO THE 8 USE OF ITS NAME PRIOR TO THE SOLICITATION. THE WRITTEN 9 CONSENT SHALL BE SIGNED BY ANY TWO AUTHORIZED OFFICERS, 10 DIRECTORS OR TRUSTEES OF THE CHARITABLE ORGANIZATION. 11 (13) REPRESENTING THAT TICKETS TO EVENTS WILL BE DONATED 12 FOR USE BY ANOTHER, UNLESS ALL OF THE FOLLOWING REQUIREMENTS 13 HAVE BEEN MET: 14 (I) THE CHARITABLE ORGANIZATION OR PROFESSIONAL 15 SOLICITOR SHALL HAVE COMMITMENTS, IN WRITING, FROM 16 CHARITABLE ORGANIZATIONS STATING THAT THEY WILL ACCEPT 17 DONATED TICKETS AND SPECIFYING THE NUMBER OF TICKETS THEY 18 ARE WILLING TO ACCEPT. 19 (II) THE CHARITABLE ORGANIZATION OR PROFESSIONAL 20 SOLICITOR SHALL NOT SOLICIT OR ACCEPT MORE CONTRIBUTIONS 21 OF DONATED TICKETS THAN THE LESSER OF: 22 (A) THE NUMBER OF TICKET COMMITMENTS IT HAS 23 RECEIVED FROM CHARITABLE ASSOCIATIONS; OR 24 (B) THE TOTAL ATTENDANCE CAPACITY OF THE SITE OF 25 THE EVENT. 26 (III) A TICKET COMMITMENT ALONE, AS DESCRIBED IN 27 THIS SUBSECTION, SHALL NOT CONSTITUTE WRITTEN CONSENT TO 28 USE THE ORGANIZATION'S NAME IN THE SOLICITATION CAMPAIGN. 29 (B) CRITERIA TO DETERMINE UNFAIRNESS.--IN DETERMINING 30 WHETHER OR NOT A PRACTICE IS UNFAIR, DECEPTIVE, FRAUDULENT OR 19890H0365B3469 - 45 -
1 MISLEADING UNDER THIS SECTION, DEFINITIONS, STANDARDS OR 2 INTERPRETATIONS RELATING THERETO UNDER THE ACT OF DECEMBER 17, 3 1968 (P.L.1224, NO.387), KNOWN AS THE UNFAIR TRADE PRACTICES AND 4 CONSUMER PROTECTION LAW, SHALL APPLY. 5 SECTION 16. INVESTIGATION; SUBPOENAS; INJUNCTIONS; COURT 6 ORDERS. 7 (A) PERMISSIBLE INVESTIGATIONS.--THE ATTORNEY GENERAL, THE 8 SECRETARY OR THE DISTRICT ATTORNEY MAY MAKE OR CAUSE TO BE MADE 9 AN INVESTIGATION OF ANY PERSON AS DEEMED NECESSARY. IN 10 CONDUCTING SUCH INVESTIGATION, HE MAY: 11 (1) REQUIRE OR PERMIT ANY PERSON TO FILE A STATEMENT IN 12 WRITING, UNDER OATH OR OTHERWISE, AS TO ALL THE FACTS AND 13 CIRCUMSTANCES CONCERNING THE MATTER TO BE INVESTIGATED. 14 (2) ADMINISTER OATHS OR AFFIRMATIONS. 15 (3) TAKE TESTIMONY UNDER OATH. 16 (4) REQUIRE THE ATTENDANCE AND TESTIMONY OF WITNESSES 17 AND THE PRODUCTION OF ANY BOOKS, ACCOUNTS, PAPERS, RECORDS, 18 DOCUMENTS, AUDITS AND FILES RELATING TO ANY SOLICITATION OR 19 ANY PRACTICE SUBJECT TO THIS ACT OR THE REGULATIONS OF THE 20 DEPARTMENT. 21 (5) ISSUE SUBPOENAS. 22 (6) CONDUCT PRIVATE OR PUBLIC HEARINGS. 23 (7) EXAMINE WITNESSES AND RECEIVE EVIDENCE DURING ANY 24 INVESTIGATION OR PUBLIC OR PRIVATE HEARINGS. 25 (B) NOTICE.--NOTICE OF THE TIME AND PLACE FOR THE 26 EXAMINATION OF DOCUMENTARY MATERIAL SHALL BE GIVEN BY THE 27 ATTORNEY GENERAL, THE SECRETARY OR THE DISTRICT ATTORNEY AT 28 LEAST TEN DAYS PRIOR TO THE DATE OF SUCH EXAMINATION OR TAKING 29 OF TESTIMONY. 30 (C) CONTENTS OF NOTICE.--EACH NOTICE SHALL: 19890H0365B3469 - 46 -
1 (1) STATE THE TIME AND PLACE FOR THE TAKING OF TESTIMONY 2 OR THE EXAMINATION AND THE NAME AND ADDRESS OF THE PERSON TO 3 BE EXAMINED, IF KNOWN, AND IF THE NAME IS NOT KNOWN, A 4 GENERAL DESCRIPTION SUFFICIENT TO IDENTIFY HIM OR THE 5 PARTICULAR CLASS OR GROUP TO WHICH HE BELONGS. 6 (2) STATE THE STATUTE THEREOF, IF ANY, OF THE ALLEGED 7 VIOLATION WHICH IS UNDER INVESTIGATION AND STATE THE GENERAL 8 SUBJECT MATTER OF THE INVESTIGATION. 9 (3) DESCRIBE THE CLASS OR CLASSES OF DOCUMENTARY 10 MATERIAL TO BE PRODUCED THEREUNDER WITH REASONABLE 11 SPECIFICITY, SO AS FAIRLY TO INDICATE THE MATERIAL DEMANDED. 12 (4) PRESCRIBE A RETURN DATE WITHIN WHICH THE DOCUMENTARY 13 MATERIAL IS TO BE PRODUCED. 14 (5) IDENTIFY THE MEMBERS OF THE OFFICE OF ATTORNEY 15 GENERAL'S STAFF, THE SECRETARY'S STAFF OR THE DISTRICT 16 ATTORNEY'S STAFF TO WHOM SUCH DOCUMENTARY MATERIAL IS TO BE 17 MADE AVAILABLE FOR INSPECTION AND COPYING. 18 (D) RESTRICTIONS ON NOTICES.--NO SUCH NOTICE SHALL CONTAIN 19 ANY REQUIREMENT WHICH WOULD BE UNREASONABLE OR IMPROPER IF 20 CONTAINED IN A SUBPOENA DUCES TECUM ISSUED BY A COURT OF THE 21 COMMONWEALTH. 22 (E) RESTRICTION ON MATERIALS.-- 23 (1) EXCEPT AS PROVIDED IN PARAGRAPH (2), ANY DOCUMENTARY 24 MATERIAL OR OTHER INFORMATION PRODUCED BY ANY PERSON PURSUANT 25 TO THIS SECTION SHALL NOT, UNLESS OTHERWISE ORDERED BY ANY 26 COURT OF COMPETENT JURISDICTION FOR GOOD CAUSE SHOWN, BE 27 PRODUCED FOR INSPECTION OR COPYING BY OR BE DISCLOSED TO ANY 28 PERSON OTHER THAN THE AUTHORIZED REPRESENTATIVE OF THE 29 ATTORNEY GENERAL, THE SECRETARY OR THE DISTRICT ATTORNEY 30 WITHOUT THE CONSENT OF THE PERSON WHO PRODUCED SUCH MATERIAL. 19890H0365B3469 - 47 -
1 (2) UNDER SUCH REASONABLE TERMS AND CONDITIONS THAT THE 2 ATTORNEY GENERAL, SECRETARY OR THE DISTRICT ATTORNEY SHALL 3 PRESCRIBE, DOCUMENTARY MATERIAL IN PARAGRAPH (1) SHALL BE 4 AVAILABLE FOR INSPECTION AND COPYING BY THE PERSON WHO 5 PRODUCED SUCH MATERIAL OR ANY DULY AUTHORIZED REPRESENTATIVE 6 OF SUCH PERSON. THE ATTORNEY GENERAL, THE SECRETARY OR THE 7 DISTRICT ATTORNEY OR HIS DULY AUTHORIZED REPRESENTATIVE MAY 8 USE SUCH DOCUMENTARY MATERIAL OR COPIES THEREOF AS HE 9 DETERMINES NECESSARY IN THE ENFORCEMENT OF THIS ACT, 10 INCLUDING PRESENTATION IN ANY SUBSEQUENT ADMINISTRATIVE OR 11 JUDICIAL PROCEEDING. 12 (F) COMPLIANCE.--ANY PERSON UPON WHOM A NOTICE IS SERVED 13 PURSUANT TO THIS SECTION SHALL COMPLY WITH THE TERMS THEREOF 14 UNLESS OTHERWISE PROVIDED BY AN ORDER OF COURT. ANY PERSON WHO 15 FAILS TO APPEAR, OR WITH INTENT TO AVOID, EVADE, OR PREVENT 16 COMPLIANCE, IN WHOLE OR IN PART, WITH ANY CIVIL INVESTIGATION 17 UNDER THIS ACT, REMOVES FROM ANY PLACE, CONCEALS, WITHHOLDS, OR 18 DESTROYS, MUTILATES, ALTERS, OR BY ANY OTHER MEANS FALSIFIES ANY 19 DOCUMENTARY MATERIAL IN THE POSSESSION, CUSTODY OR CONTROL OF 20 ANY PERSON SUBJECT TO ANY NOTICE, OR KNOWINGLY CONCEALS ANY 21 RELEVANT INFORMATION, SHALL BE ASSESSED A CIVIL PENALTY OF NOT 22 MORE THAN $5,000. THE ATTORNEY GENERAL OR THE DISTRICT ATTORNEY 23 MAY PETITION FOR AN ORDER OF COURT FOR ENFORCEMENT OF THIS 24 SECTION. ADDITIONALLY, THE SECRETARY MAY TAKE APPROPRIATE ACTION 25 TO PETITION FOR AN ORDER OF COURT FOR THE ENFORCEMENT OF THIS 26 SECTION IN ACCORDANCE WITH THE ACT OF OCTOBER 15, 1980 (P.L.950, 27 NO.164), KNOWN AS THE COMMONWEALTH ATTORNEYS ACT. ANY 28 DISOBEDIENCE OF ANY FINAL ORDER ENTERED UNDER THIS SECTION BY 29 ANY COURT SHALL BE PUNISHED AS CONTEMPT THEREOF. 30 (G) SERVICE.--SERVICE OF A SUBPOENA MAY BE MADE IN ANY ONE 19890H0365B3469 - 48 -
1 OF THE FOLLOWING WAYS: 2 (1) DELIVERING A DULY EXECUTED COPY THEREOF TO THE 3 PERSON TO BE SERVED OR TO A PARTNER OR TO ANY OFFICER OR 4 AGENT AUTHORIZED BY APPOINTMENT OR BY LAW TO RECEIVE SERVICE 5 OF PROCESS ON BEHALF OF SUCH PERSON. 6 (2) DELIVERING A DULY EXECUTED COPY THEREOF TO THE 7 PRINCIPAL PLACE OF BUSINESS IN THIS COMMONWEALTH OF THE 8 PERSON TO BE SERVED. 9 (3) MAILING BY REGISTERED OR CERTIFIED MAIL A DULY 10 EXECUTED COPY THEREOF ADDRESSED TO THE PERSON TO BE SERVED AT 11 HIS PRINCIPAL PLACE OF BUSINESS IN THIS COMMONWEALTH OR IF 12 SAID PERSON HAS NO PLACE OF BUSINESS IN THIS COMMONWEALTH, TO 13 THE LAST ADDRESS OF SUCH PERSON KNOWN TO THE SECRETARY. 14 (4) ANY CHARITABLE ORGANIZATION, FUNDRAISING COUNSEL, OR 15 PROFESSIONAL SOLICITOR HAVING ITS PRINCIPAL PLACE OF BUSINESS 16 OTHER THAN WITHIN THIS COMMONWEALTH, OR ORGANIZED UNDER AND 17 BY VIRTUE OF THE LAWS OF A FOREIGN STATE, WHICH IS SUBJECT TO 18 THE PROVISIONS OF THIS ACT, SHALL BE DEEMED TO HAVE 19 IRREVOCABLY APPOINTED THE SECRETARY OF STATE AS ITS AGENT 20 UPON WHOM MAY BE SERVED ANY SUMMONS, SUBPOENA DUCES TECUM OR 21 OTHER PROCESS DIRECTED TO SUCH CHARITABLE ORGANIZATION, 22 FUNDRAISING COUNSEL, PROFESSIONAL SOLICITOR, OR ANY PARTNER, 23 PRINCIPAL OFFICER OR DIRECTOR OF ANY OF THEM, IN ANY ACTION 24 OR PROCEEDING BROUGHT UNDER THE PROVISIONS OF THIS ACT. 25 SERVICE OF SUCH PROCESS UPON THE SECRETARY OF STATE SHALL BE 26 MADE BY PERSONALLY DELIVERING TO AND LEAVING WITH HIM A COPY 27 THEREOF AT HIS OFFICE IN THE CITY OF HARRISBURG, PENNSYLVANIA 28 AND SUCH SERVICE SHALL BE SUFFICIENT SERVICE; PROVIDED NOTICE 29 OF SUCH SERVICE AND A COPY OF SUCH PROCESS SHALL BE FORTHWITH 30 SENT BY SAID SECRETARY TO SUCH CHARITABLE ORGANIZATION, 19890H0365B3469 - 49 -
1 FUNDRAISING COUNSEL, PROFESSIONAL SOLICITOR, OR OTHER PERSON 2 TO WHOM IT IS DIRECTED BY REGISTERED MAIL, WITH RETURN 3 RECEIPT REQUESTED AT THE LAST ADDRESS KNOWN TO SAID 4 SECRETARY. 5 SECTION 17. ADMINISTRATIVE ENFORCEMENT AND PENALTIES. 6 (A) GENERAL RULE.--THE SECRETARY MAY REFUSE TO REGISTER OR 7 REVOKE OR SUSPEND THE REGISTRATION OF ANY CHARITABLE 8 ORGANIZATION, PROFESSIONAL FUNDRAISING COUNSEL OR PROFESSIONAL 9 SOLICITOR WHENEVER HE FINDS THAT A CHARITABLE ORGANIZATION, 10 PROFESSIONAL FUNDRAISING COUNSEL OR PROFESSIONAL SOLICITOR, OR 11 AN AGENT, SERVANT OR EMPLOYEE THEREOF: 12 (1) HAS VIOLATED OR IS OPERATING IN VIOLATION OF ANY OF 13 THE PROVISIONS OF THIS ACT, THE REGULATIONS OF THE 14 DEPARTMENT, OR AN ORDER ISSUED BY THE SECRETARY. 15 (2) HAS REFUSED OR FAILED OR ANY OF ITS PRINCIPAL 16 OFFICERS HAS REFUSED OR FAILED, AFTER NOTICE, TO PRODUCE ANY 17 RECORDS OF SUCH ORGANIZATION OR TO DISCLOSE ANY INFORMATION 18 REQUIRED TO BE DISCLOSED UNDER THIS ACT OR THE REGULATIONS OF 19 THE DEPARTMENT. 20 (3) HAS MADE A MATERIAL FALSE STATEMENT IN AN 21 APPLICATION, STATEMENT OR REPORT REQUIRED TO BE FILED UNDER 22 THIS ACT. 23 (B) ADDITIONAL ACTIONS.--WHEN THE SECRETARY FINDS THAT THE 24 REGISTRATION OF ANY PERSON MAY BE REFUSED, SUSPENDED OR REVOKED 25 UNDER THE TERMS OF SUBSECTION (A), THE SECRETARY MAY: 26 (1) REVOKE A GRANT OF EXEMPTION TO ANY OF THE PROVISIONS 27 OF THIS ACT. 28 (2) ISSUE AN ORDER DIRECTING THAT THE PERSON CEASE AND 29 DESIST SPECIFIED FUNDRAISING ACTIVITIES. 30 (3) IMPOSE AN ADMINISTRATIVE FINE NOT TO EXCEED $1,000 19890H0365B3469 - 50 -
1 FOR EACH ACT OR OMISSION WHICH CONSTITUTES A VIOLATION OF 2 THIS ACT AND AN ADDITIONAL PENALTY, NOT TO EXCEED $100 FOR 3 EACH DAY DURING WHICH SUCH VIOLATION CONTINUES. REGISTRATION 4 WILL BE AUTOMATICALLY SUSPENDED UPON FINAL AFFIRMATION OF AN 5 ADMINISTRATIVE FINE UNTIL THE FINE IS PAID OR UNTIL THE 6 NORMAL EXPIRATION DATE OF THE REGISTRATION. NO REGISTRATION 7 SHALL BE RENEWED UNTIL THE FINE IS PAID. 8 (4) PLACE THE REGISTRANT ON PROBATION FOR SUCH PERIOD OF 9 TIME AND SUBJECT TO SUCH CONDITIONS AS HE MAY DECIDE. 10 (C) ADMINISTRATIVE PROCEDURES.--ALL ACTIONS OF THE SECRETARY 11 SHALL BE TAKEN SUBJECT TO THE RIGHT OF NOTICE, HEARING AND 12 ADJUDICATION AND THE RIGHT OF APPEAL THEREFROM IN ACCORDANCE 13 WITH TITLE 2 OF THE PENNSYLVANIA CONSOLIDATED STATUTES (RELATING 14 TO ADMINISTRATIVE LAW AND PROCEDURE). 15 SECTION 18. CRIMINAL PENALTIES. 16 (A) DECEIT IN FRAUD VIOLATION.--ANY PERSON WHO WILLFULLY AND 17 KNOWINGLY VIOLATES ANY PROVISIONS OF THIS ACT WITH INTENT TO 18 DECEIVE OR DEFRAUD ANY CHARITY OR INDIVIDUAL, COMMITS A 19 MISDEMEANOR OF THE FIRST DEGREE AND SHALL, UPON CONVICTION, BE 20 SENTENCED TO PAY A FINE NOT EXCEEDING $10,000 OR IMPRISONMENT 21 FOR NOT MORE THAN FIVE YEARS, OR BOTH. 22 (B) OTHER VIOLATIONS.--ANY OTHER VIOLATION OF THIS ACT SHALL 23 CONSTITUTE A MISDEMEANOR OF THE THIRD DEGREE PUNISHABLE, UPON 24 CONVICTION, BY A FINE NOT EXCEEDING $2,500 OR IMPRISONMENT FOR 25 NOT MORE THAN ONE YEAR, OR BOTH. 26 (C) LOCATION OF OFFENSE.--ANY OFFENSE COMMITTED UNDER THIS 27 ACT INVOLVING A SOLICITATION MAY BE DEEMED TO HAVE BEEN 28 COMMITTED AT EITHER THE PLACE AT WHICH THE SOLICITATION WAS 29 INITIATED, OR AT THE PLACE WHERE THE SOLICITATION WAS RECEIVED. 30 SECTION 19. CIVIL PENALTIES. 19890H0365B3469 - 51 -
1 (A) GENERAL RULE.--WHENEVER THE ATTORNEY GENERAL OR ANY 2 DISTRICT ATTORNEY SHALL HAVE REASON TO BELIEVE, OR SHALL BE 3 ADVISED BY THE SECRETARY, THAT THE PERSON IS OPERATING IN 4 VIOLATION OF THE PROVISIONS OF THIS ACT, THE ATTORNEY GENERAL OR 5 DISTRICT ATTORNEY MAY BRING AN ACTION IN THE NAME OF THE 6 COMMONWEALTH AGAINST SUCH PERSON WHO HAS VIOLATED THIS ACT, TO 7 ENJOIN SUCH PERSON FROM CONTINUING SUCH VIOLATION AND FOR SUCH 8 OTHER RELIEF AS THE COURT DEEMS APPROPRIATE. IN ANY PROCEEDING 9 UNDER THIS SUBSECTION, THE COURT MAY MAKE APPROPRIATE ORDERS, 10 INCLUDING: 11 (1) THE APPOINTMENT OF A MASTER OR RECEIVER; 12 (2) THE SEQUESTRATION OF ASSETS; 13 (3) THE REIMBURSEMENT OF PERSONS FROM WHOM CONTRIBUTIONS 14 HAVE BEEN UNLAWFULLY SOLICITED; 15 (4) THE DISTRIBUTION OF CONTRIBUTIONS IN ACCORDANCE WITH 16 THE CHARITABLE PURPOSE EXPRESSED IN THE REGISTRATION 17 STATEMENT OR IN ACCORDANCE WITH THE REPRESENTATIONS MADE TO 18 THE PERSON SOLICITED; 19 (5) THE REIMBURSEMENT OF THE COMMONWEALTH FOR ATTORNEY 20 FEES AND THE COSTS OF INVESTIGATION, INCLUDING AUDIT COSTS; 21 (6) THE ASSESSMENT OF A CIVIL PENALTY NOT EXCEEDING 22 $1,000 PER VIOLATION OF THE ACT, WHICH PENALTY SHALL BE IN 23 ADDITION TO ANY OTHER RELIEF WHICH MAY BE GRANTED; AND 24 (7) THE GRANTING OF OTHER APPROPRIATE RELIEF. 25 (B) ASSURANCE OF VOLUNTARY COMPLIANCE.--IN ANY CASE WHERE 26 THE ATTORNEY GENERAL OR DISTRICT ATTORNEY HAS AUTHORITY TO 27 INSTITUTE AN ACTION OR PROCEEDING UNDER THIS ACT, HE MAY ACCEPT 28 AN ASSURANCE OF VOLUNTARY COMPLIANCE THROUGH WHICH ANY PERSON 29 ALLEGED TO BE ENGAGED IN ANY METHOD, ACT OR PRACTICE IN 30 VIOLATION OF THIS ACT AGREES TO DISCONTINUE SUCH METHOD, ACT OR 19890H0365B3469 - 52 -
1 PRACTICE. SUCH ASSURANCE MAY, AMONG OTHER TERMS, INCLUDE A 2 STIPULATION OF A VOLUNTARY PAYMENT BY SUCH PERSON OF THE COST OF 3 THE INVESTIGATION OR OF AN AMOUNT TO BE HELD IN ESCROW PENDING 4 THE OUTCOME OF AN ACTION OR AS RESTITUTION TO AGREED PERSONS, OR 5 BOTH. ANY SUCH ASSURANCE OF COMPLIANCE SHALL BE IN WRITING AND 6 SHALL BE FILED WITH A COURT OF THE COMMONWEALTH. MATTERS CLOSED 7 MAY, AT ANY TIME BE REOPENED BY THE COURT FOR FURTHER 8 PROCEEDINGS IN THE PUBLIC INTEREST. IN THE EVENT OF AN ALLEGED 9 VIOLATION OF THE ASSURANCE OF VOLUNTARY COMPLIANCE, THE ATTORNEY 10 GENERAL OR DISTRICT ATTORNEY MAY, AT HIS DISCRETION, EITHER 11 INITIATE CONTEMPT PROCEEDINGS OR PROCEED AS IF THE ASSURANCE OF 12 VOLUNTARY COMPLIANCE HAS NOT BEEN ACCEPTED. EVIDENCE OF A 13 VIOLATION OF SUCH ASSURANCE SHALL BE PRIMA FACIE EVIDENCE OF A 14 VIOLATION OF THIS ACT IN ANY SUBSEQUENT PROCEEDING BROUGHT BY 15 THE ATTORNEY GENERAL OR DISTRICT ATTORNEY. 16 SECTION 20. ADDITIONAL REGULATIONS BY COUNTIES, MUNICIPALITIES 17 OR CONSOLIDATED GOVERNMENT. 18 NOTHING CONTAINED IN THIS ACT SHALL SERVE TO DENY THE RIGHT 19 TO ANY COUNTY, MUNICIPALITY OR CONSOLIDATED GOVERNMENT TO PASS 20 SUCH ORDINANCES, RULES AND REGULATIONS AS MAY BE DEEMED 21 APPROPRIATE TO REGULATE FURTHER THE SOLICITING OF CONTRIBUTIONS 22 WITHIN SUCH COUNTY, MUNICIPALITY OR CONSOLIDATED GOVERNMENT. 23 SUCH ORDINANCE MAY NOT ALTER ANY OF THE OBLIGATIONS SET FORTH IN 24 THIS ACT OR THE REGULATIONS OF THE DEPARTMENT BUT MAY ADD 25 THERETO OTHER REQUIREMENTS AND RULES AS APPEAR TO BE PROPER TO 26 THE COUNTY, MUNICIPALITY OR CONSOLIDATED GOVERNMENT INVOLVED. 27 SECTION 21. CHARITABLE ORGANIZATIONS DEEMED FIDUCIARY. 28 EVERY PERSON SOLICITING, COLLECTING OR EXPENDING 29 CONTRIBUTIONS FOR CHARITABLE PURPOSES AND EVERY OFFICER, 30 DIRECTOR, TRUSTEE AND EMPLOYEE OF ANY SUCH PERSON CONCERNED WITH 19890H0365B3469 - 53 -
1 THE SOLICITATION, COLLECTION OR EXPENDITURE OF SUCH CONTRIBUTION 2 SHALL BE DEEMED TO BE A FIDUCIARY AND ACTING IN A FIDUCIARY 3 CAPACITY. 4 SECTION 22. PRIOR REGISTRATION UNAFFECTED. 5 ANY PERSON WHO IS REGISTERED WITH THE DEPARTMENT UNDER THE 6 ACT OF APRIL 30, 1986 (P.L.107, NO.36), KNOWN AS THE CHARITABLE 7 ORGANIZATION REFORM ACT, PRIOR TO THE EFFECTIVE DATE OF THIS ACT 8 SHALL, ON AND AFTER THE EFFECTIVE DATE HEREOF, BE DEEMED TO BE 9 REGISTERED WITH THE DEPARTMENT AS PROVIDED FOR IN THIS ACT. 10 REGISTRATION SHALL BE REISSUED IN ACCORDANCE WITH THIS ACT. 11 SECTION 23. REPEALS. 12 THE ACT OF APRIL 30, 1986 (P.L.107, NO.36), KNOWN AS THE 13 CHARITABLE ORGANIZATION REFORM ACT, IS REPEALED. EXISTING 14 REGULATIONS PROMULGATED PURSUANT TO THE CHARITABLE ORGANIZATION 15 REFORM ACT, SHALL REMAIN IN EFFECT UNTIL AMENDED IN ACCORDANCE 16 WITH THE PROVISIONS OF THIS ACT. 17 SECTION 24. APPROPRIATION. 18 ALL FEES SHALL BE PAID TO THE STATE TREASURER AND ARE 19 APPROPRIATED TO THE DEPARTMENT OF STATE FOR THE ADMINISTRATION 20 AND ENFORCEMENT OF THIS ACT AND ALL FINES, PENALTIES, ATTORNEY 21 FEES AND COSTS OF INVESTIGATION SHALL BE PAID TO THE 22 GOVERNMENTAL AGENCY THAT CONDUCTED THE LITIGATION. 23 SECTION 25. EFFECTIVE DATE. 24 THIS ACT SHALL TAKE EFFECT AS FOLLOWS: 25 (1) SECTIONS 9(J) AND 13(C) SHALL BE EFFECTIVE IN 120 26 DAYS. 27 (2) THE REMAINING PROVISIONS OF THIS ACT SHALL TAKE 28 EFFECT IN 60 DAYS. A23L10VDL/19890H0365B3469 - 54 -