SENATE AMENDED
PRIOR PRINTER'S NOS. 400, 2413, 2670, PRINTER'S NO. 4286
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 TILGHMAN, APPROPRIATIONS, IN SENATE, RE-REPORTED AS
AMENDED, NOVEMBER 13, 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
1 REPORTS; FEES; FAILURE TO FILE.
2 SECTION 6. EXEMPTIONS FROM REGISTRATION.
3 SECTION 7. SHORT FORM REGISTRATION.
4 SECTION 8. REGISTRATION OF PROFESSIONAL FUNDRAISING COUNSEL,
5 AND CONTRACTS.
6 SECTION 9. REGISTRATION OF PROFESSIONAL SOLICITORS; CONTRACT
7 AND DISCLOSURE REQUIREMENTS; BONDS; RECORDS;
8 BOOKS.
9 SECTION 10. CONTRACTS VOIDABLE BY CHARITABLE ORGANIZATIONS.
10 SECTION 11. INFORMATION FILED TO BECOME PUBLIC RECORDS.
11 SECTION 12. RECORDS TO BE KEPT BY CHARITABLE ORGANIZATIONS,
12 PROFESSIONAL FUNDRAISING COUNSELS AND
13 PROFESSIONAL SOLICITORS; INSPECTION; RETENTION.
14 SECTION 13. LIMITATION ON ACTIVITIES OF CHARITABLE
15 ORGANIZATIONS; DISCLOSURE REQUIREMENTS.
16 SECTION 14. RECIPROCAL AGREEMENTS.
17 SECTION 15. PROHIBITED ACTS.
18 SECTION 16. INVESTIGATION; SUBPOENAS; INJUNCTIONS; COURT
19 ORDERS.
20 SECTION 17. ADMINISTRATIVE ENFORCEMENT AND PENALTIES.
21 SECTION 18. CRIMINAL PENALTIES.
22 SECTION 19. CIVIL PENALTIES.
23 SECTION 20. ADDITIONAL REGULATIONS BY COUNTIES, MUNICIPALITIES
24 OR CONSOLIDATED GOVERNMENT.
25 SECTION 21. CHARITABLE ORGANIZATIONS DEEMED FIDUCIARY.
26 SECTION 22. PRIOR REGISTRATION UNAFFECTED.
27 SECTION 23. REPEALS.
28 SECTION 24. APPROPRIATION.
29 SECTION 25. EFFECTIVE DATE.
30 The General Assembly of the Commonwealth of Pennsylvania
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1 hereby enacts as follows:
2 Section 1. Section 12 of the act of April 30, 1986 (P.L.107, <--
3 No.36), known as the Charitable Organization Reform Act, is
4 amended to read:
5 Section 12. Records to be kept by charitable organizations,
6 professional fundraising counsel and professional
7 solicitors.
8 (a) General rule.--Every charitable organization subject to
9 the provisions of this act shall, in accordance with the rules
10 and regulations prescribed by the department, keep true fiscal
11 records as to its activities in Pennsylvania as may be covered
12 by this act in such form as will enable it accurately to provide
13 the information required by this act. Upon demand, such records
14 shall be made available to the department, the bureau or the
15 Attorney General for inspection. Such records shall be retained
16 for a period of at least three years after the end of the period
17 of registration to which they relate.
18 (b) Soliciting for named individual.--
19 (1) A person or charitable organization soliciting
20 contributions for the benefit of a named individual who
21 receives in excess of $5,000 shall hold the funds collected
22 in trust and shall be subject to the provisions of 20 Pa.C.S.
23 Ch.71 (relating to trust estates). [A person who makes] The
24 funds collected shall be invested according to the terms of
25 the trust instrument with an individual or corporate
26 fiduciary, subject to its agreement to accept the account.
27 (2) A person or charitable organization soliciting
28 contributions for the benefit of a named individual who
29 receives in excess of $10,000 shall petition the court of
30 common pleas of the county in which the trust shall be
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1 established for approval by the court of the provisions of
2 the written trust instrument by which such trust shall be
3 established, and for approval of the trustee thereof. The
4 funds collected shall be invested according to the terms of
5 the trust instrument with an individual or corporate
6 fiduciary, subject to its agreement to accept the account.
7 (3) If there is a contribution to a person or charitable
8 organization in response to a solicitation for the benefit of
9 a named individual, the department shall have the right to
10 petition the court of common pleas of the county in which the
11 trust is located for an accounting on behalf of all
12 contributors. For purposes of this subsection, the trust
13 shall be established in the county where the principal place
14 of business of the charitable organization is located. If a
15 charitable organization has its principal place of business
16 outside this Commonwealth, all of the following apply:
17 (i) If a chapter, branch, area, office or similar
18 affiliate is soliciting contributions within this
19 Commonwealth, the trust shall be established in the
20 county where the principal place of business of the
21 chapter, branch, area, office or similar affiliate is
22 located.
23 (ii) If a person is soliciting contributions within
24 this Commonwealth, the trust shall be established in the
25 county where the principal place of business or the
26 residence of the person is located.
27 Section 2. The act is amended by adding a section to read:
28 Section 14.1. Named individual receiving health care.
29 (a) General rule.--If services which, in the estimation of a
30 health care provider, are valued in excess of $5,000 are
19890H0365B4286 - 4 -
1 requested for a named individual from a health care provider in
2 this Commonwealth and if contributions are being, have been or
3 will be solicited for the benefit of the individual which either
4 expressly or implicitly are intended in whole or in part to pay
5 for the services to be provided by the health care provider,
6 then, prior to the commencement of services by the health care
7 provider or any other time requested by the health care
8 provider, the individual or the individual's legal
9 representative shall do all of the following:
10 (1) Provide written verification to the health care
11 provider that funds collected for the benefit of the
12 individual are being, have been, or will be collected,
13 handled and dispersed in accordance with the applicable
14 Federal or state law.
15 (2) Provide to the health care provider the identity and
16 location of all funds and trusts established for the benefit
17 of the individual and the names, addresses and telephone
18 numbers of all trustees or holders of such funds.
19 (3) As collected funds are or become available for the
20 benefit of the individual, do all of the following:
21 (i) Authorize payment to the health care provider
22 from collected funds reasonable deposits or advanced
23 payments required to cover all or part of the estimated
24 cost of the services.
25 (ii) Deposit with the corporate fiduciary in this
26 Commonwealth an amount of the collected funds necessary
27 to cover estimated potential costs for the services. The
28 amount under this subparagraph shall be determined by the
29 health care provider to be the greater of the following:
30 (A) The maximum charges that have been accrued
19890H0365B4286 - 5 -
1 by patients undergoing the same or similar procedures
2 or treatment by the health care provider.
3 (B) The actual costs for the particular services
4 estimated to be necessary for the care and treatment
5 of the individual.
6 (b) Trust.--
7 (1) The trustee has the power and duty to release money
8 to the health care provider on a periodic basis for services
9 rendered or goods supplied, upon billing by the health care
10 provider, if any of the following applies:
11 (i) The named individual or the individual's legal
12 representative approves the bill.
13 (ii) The bill is submitted to the named individual
14 and the individual's legal representative, if there is
15 one; and no written objection is given to the trustee
16 within 30 days of submission.
17 (2) The trustee may not transfer, distribute or pay
18 funds, except in the manner set forth in paragraph (1), until
19 the named individual or the individual's legal representative
20 has provided to the trustee written verification from each
21 health care provider that payment has been made for all goods
22 and services provided to or for the benefit of the
23 individual.
24 (c) Insurance.--
25 (1) A patient to whom services are rendered in this
26 Commonwealth by a health care provider under this section
27 shall be deemed to authorize the health care provider to
28 reveal to an insurance company or a governmental agency all
29 of the following:
30 (i) The estimated cost of the services or goods to
19890H0365B4286 - 6 -
1 be provided for the patient.
2 (ii) The actual cost incurred to date for services
3 or goods provided to the patient.
4 (iii) The amounts of the cost covered by health or
5 other insurance.
6 (iv) The amounts of the cost already paid by
7 insurance or other sources.
8 (v) The existence of any other source of funds for
9 the payment of the cost services, including all
10 charitable funds.
11 (vi) The names and addresses of all banks, trustees
12 or other persons holding funds for the benefit of the
13 patient.
14 (vii) The estimated length of time the patient will
15 be in need of services or goods from the particular
16 health care provider.
17 (2) If the patient has health or other insurance with an
18 insurance company licensed to do business in this
19 Commonwealth, and that insurance covers part or all of the
20 services provided, then, upon written verification to the
21 health care provider from the insurer of the existence of the
22 insurance and the scope of coverage, the health care provider
23 shall reduce the estimated potential costs under subsection
24 (a)(3)(ii) by the amount of the cost covered by the
25 insurance.
26 (d) Other payment.--If the patient has paid to the health
27 care provider a deposit or advance payment or if other payments
28 have been made to the health care provider specifically for the
29 benefit of the patient, the health care provider shall reduce
30 the estimated potential costs under subsection (a)(3)(ii) by the
19890H0365B4286 - 7 -
1 amount of the payments.
2 (e) Other remedies.--Nothing in this section shall limit a
3 health care provider or patient from pursuing any other remedy
4 available at law or in equity.
5 Section 3. This act shall take effect in 60 days.
6 SECTION 1. SHORT TITLE. <--
7 THIS ACT SHALL BE KNOWN AND MAY BE CITED AS THE SOLICITATION
8 OF FUNDS FOR CHARITABLE PURPOSES ACT.
9 SECTION 2. LEGISLATIVE INTENT.
10 IT IS THE INTENTION OF THE GENERAL ASSEMBLY THAT THIS ACT
11 SHALL NOT MERELY REQUIRE PROPER REGISTRATION OF CHARITABLE
12 ORGANIZATIONS, PROFESSIONAL FUNDRAISERS AND PROFESSIONAL
13 SOLICITORS, BUT SHALL PROTECT THE CITIZENS OF THIS COMMONWEALTH
14 BY REQUIRING FULL PUBLIC DISCLOSURE OF THE IDENTITY OF PERSONS
15 WHO SOLICIT CONTRIBUTIONS FROM THE PUBLIC, THE PURPOSES FOR
16 WHICH SUCH CONTRIBUTIONS ARE SOLICITED AND THE MANNER IN WHICH
17 THEY ARE ACTUALLY USED, BY PROMOTING CONSUMER EDUCATION ABOUT
18 CHARITABLE CONCERNS, AND BY PROVIDING CIVIL AND CRIMINAL
19 PENALTIES FOR DECEPTION AND DISHONEST STATEMENTS AND CONDUCT IN
20 THE SOLICITATION AND REPORTING OF CONTRIBUTIONS FOR OR IN THE
21 NAME OF CHARITABLE PURPOSES, AND BY PUBLICIZING MATTERS RELATING
22 TO FRAUD, DECEPTION AND MISREPRESENTATION PERPETRATED IN THE
23 NAME OF CHARITY. THIS ACT SHALL NOT BE CONSTRUED TO BE EXCLUSIVE
24 IN ITS PURVIEW AND ITS APPLICATION SHALL NOT OPERATE AS A BAR OR
25 OTHERWISE PREVENT THE CONTEMPORANEOUS OR SUBSEQUENT APPLICATION
26 OF ANY OTHER RELEVANT ACT OR ACTS.
27 SECTION 3. DEFINITIONS.
28 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ACT SHALL
29 HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
30 CONTEXT CLEARLY INDICATES OTHERWISE:
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1 "ADMINISTRATIVE COSTS." ALL MANAGEMENT AND GENERAL COSTS OF
2 A CHARITABLE ORGANIZATION, NOT IDENTIFIABLE WITH A SINGLE
3 PROGRAM OR FUNDRAISING ACTIVITY, BUT INDISPENSABLE TO THE
4 CONDUCT OF SUCH PROGRAMS AND ACTIVITIES AND TO AN ORGANIZATION'S
5 EXISTENCE, INCLUDING EXPENSES FOR THE OVERALL DIRECTION OF THE
6 ORGANIZATION, BUSINESS MANAGEMENT, GENERAL RECORD KEEPING,
7 BUDGETING, FINANCIAL REPORTING AND RELATED ACTIVITIES, SALARIES,
8 RENT, SUPPLIES, EQUIPMENT AND GENERAL OVERHEAD EXPENSES.
9 "AFFILIATE." ANY CHAPTER, BRANCH, AUXILIARY OR OTHER
10 SUBORDINATE UNIT OF ANY CHARITABLE ORGANIZATION, HOWSOEVER
11 DESIGNATED, WHOSE POLICIES, FUNDRAISING ACTIVITIES AND
12 EXPENDITURES ARE SUPERVISED OR CONTROLLED BY SUCH PARENT
13 ORGANIZATION.
14 "BUREAU." THE BUREAU OF CHARITABLE ORGANIZATIONS OF THE
15 DEPARTMENT OF STATE.
16 "CHARITABLE ORGANIZATION." ANY PERSON GRANTED TAX EXEMPT
17 STATUS UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE OF
18 1986 (PUBLIC LAW 99-514, 26 U.S.C. § 501(C)(3)) OR ANY PERSON
19 WHO IS OR HOLDS HIMSELF OUT TO BE ESTABLISHED FOR ANY CHARITABLE
20 PURPOSE OR ANY PERSON WHO IN ANY MANNER EMPLOYS A CHARITABLE
21 APPEAL AS THE BASIS OF ANY SOLICITATION OR AN APPEAL WHICH HAS A
22 TENDENCY TO SUGGEST THERE IS A CHARITABLE PURPOSE TO ANY
23 SOLICITATION. AN AFFILIATE OF A CHARITABLE ORGANIZATION WHICH
24 HAS ITS PRINCIPAL PLACE OF BUSINESS OUTSIDE THIS COMMONWEALTH
25 SHALL BE A CHARITABLE ORGANIZATION FOR THE PURPOSES OF THIS ACT.
26 THE TERM SHALL NOT BE DEEMED TO INCLUDE:
27 (1) ANY BONA FIDE DULY CONSTITUTED ORGANIZATION OF LAW
28 ENFORCEMENT PERSONNEL, FIREFIGHTERS OR OTHER PERSONS WHO
29 PROTECT THE PUBLIC SAFETY WHOSE STATED PURPOSE IN THE
30 SOLICITATION DOES NOT INCLUDE ANY BENEFIT TO ANY PERSON
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1 OUTSIDE THE ACTUAL ACTIVE MEMBERSHIP OF THE ORGANIZATION; AND
2 (2) ANY BONA FIDE DUTY CONSTITUTED RELIGIOUS
3 INSTITUTIONS AND SUCH SEPARATE GROUPS OR CORPORATIONS WHICH
4 FORM AN INTEGRAL PART OF RELIGIOUS INSTITUTIONS, PROVIDED
5 THAT:
6 (I) SUCH RELIGIOUS INSTITUTIONS, GROUPS OR
7 CORPORATIONS ARE TAX EXEMPT PURSUANT TO THE INTERNAL
8 REVENUE CODE OF 1986;
9 (II) NO PART OF THEIR NET INCOME INURES TO THE
10 DIRECT BENEFIT OF ANY INDIVIDUAL; AND
11 (III) THEIR CONDUCT IS PRIMARILY SUPPORTED BY
12 GOVERNMENT GRANTS OR CONTRACTS OR FUNDS SOLICITED WITHIN
13 THEIR OWN MEMBERSHIPS OR CONGREGATIONS, OR FEES CHARGED
14 FOR SERVICES RENDERED.
15 (3) ANY VETERANS ORGANIZATION CHARTERED UNDER FEDERAL <--
16 LAW AND THE SERVICE FOUNDATION OF SUCH A VETERANS
17 ORGANIZATION RECOGNIZED IN THE BYLAWS OF THE VETERANS
18 ORGANIZATION.
19 "CHARITABLE PROMOTION." ANY ADVERTISING OR SALES CAMPAIGN,
20 EVENT OR PERFORMANCE, CONDUCTED, PRODUCED, PROMOTED,
21 UNDERWRITTEN, ARRANGED OR SPONSORED BY A COMMERCIAL CO-VENTURER,
22 WHICH REPRESENTS THAT THE PURCHASE OR USE OF GOODS OR SERVICES
23 OR ATTENDANCE AT EVENTS OR PERFORMANCES OFFERED OR SPONSORED BY
24 THE COMMERCIAL CO-VENTURER WILL BENEFIT, IN WHOLE OR IN PART, A
25 CHARITABLE ORGANIZATION OR PURPOSE.
26 "CHARITABLE PURPOSE." ANY BENEVOLENT, EDUCATIONAL,
27 PHILANTHROPIC, HUMANE, SCIENTIFIC, PATRIOTIC, SOCIAL WELFARE OR
28 ADVOCACY, PUBLIC HEALTH, ENVIRONMENTAL CONSERVATION, CIVIC OR
29 OTHER ELEEMOSYNARY OBJECTIVE, INCLUDING AN OBJECTIVE OF ANY BONA
30 FIDE DULY CONSTITUTED ORGANIZATION OF LAW ENFORCEMENT PERSONNEL,
19890H0365B4286 - 10 -
1 FIREFIGHTERS OR OTHER PERSONS WHO PROTECT THE PUBLIC SAFETY IF A
2 STATED PURPOSE OF THE SOLICITATION INCLUDES ANY BENEFIT TO ANY
3 PERSON OUTSIDE THE ACTUAL ACTIVE MEMBERSHIP OF THE ORGANIZATION.
4 "COMMERCIAL CO-VENTURER." ANY PERSON WHO FOR PROFIT IS
5 REGULARLY AND PRIMARILY ENGAGED IN TRADE OR COMMERCE OTHER THAN
6 IN CONNECTION WITH THE RAISING OF FUNDS OR ANY OTHER THING OF
7 VALUE FOR A CHARITABLE ORGANIZATION AND WHO ADVERTISES THAT THE
8 PURCHASE OR USE OF GOODS, SERVICES, ENTERTAINMENT OR ANY OTHER
9 THING OF VALUE WILL BENEFIT A CHARITABLE ORGANIZATION.
10 "CONTRIBUTION." THE PROMISE, GRANT OR PLEDGE OF MONEY,
11 CREDIT, PROPERTY, FINANCIAL ASSISTANCE OR OTHER THING OF ANY
12 KIND OR VALUE IN RESPONSE TO A SOLICITATION, INCLUDING THE
13 PAYMENT OR PROMISE TO PAY IN CONSIDERATION OF A PERFORMANCE,
14 EVENT OR SALE OF A GOOD OR SERVICE. PAYMENT BY MEMBERS OF AN
15 ORGANIZATION FOR MEMBERSHIP FEES, DUES, FINES OR ASSESSMENTS OR
16 FOR SERVICES RENDERED TO INDIVIDUAL MEMBERS, IF SUCH FEES, DUES,
17 FINES OR ASSESSMENTS CONFER A BONA FIDE RIGHT, PRIVILEGE,
18 PROFESSIONAL STANDING, HONOR OR OTHER DIRECT BENEFIT, SHALL NOT
19 BE DEEMED CONTRIBUTIONS, PROVIDED THAT MEMBERSHIP IS NOT
20 CONFERRED SOLELY AS CONSIDERATION FOR MAKING A CONTRIBUTION IN
21 RESPONSE TO A SOLICITATION. GOVERNMENT GRANTS OR CONTRACTS SHALL
22 NOT BE DEEMED A CONTRIBUTION.
23 "DEPARTMENT." THE DEPARTMENT OF STATE OF THE COMMONWEALTH.
24 "FEDERATED FUNDRAISING ORGANIZATION." A FEDERATION OF
25 INDEPENDENT CHARITABLE ORGANIZATIONS WHICH HAVE VOLUNTARILY
26 JOINED TOGETHER, INCLUDING, BUT NOT LIMITED TO, A UNITED WAY OR
27 COMMUNITY CHEST, FOR PURPOSES OF RAISING AND DISTRIBUTING MONEY
28 FOR AND AMONG THEMSELVES AND WHERE MEMBERSHIP DOES NOT CONFER
29 UPON THE FEDERATED GROUP ORGANIZATION OPERATING AUTHORITY AND
30 CONTROL OF THE INDIVIDUAL AGENCIES.
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1 "FIREFIGHTERS." ANY PERSON WHO IS OR REPRESENTS OR HOLDS
2 ITSELF OUT TO REPRESENT, AID, TRAIN OR OTHERWISE BENEFIT ANY
3 PAID OR VOLUNTEER FIREFIGHTER, ACTIVE OR RETIRED, OR THEIR
4 FAMILIES.
5 "FUNDRAISING COSTS." THOSE COSTS INCURRED IN INDUCING OTHERS
6 TO MAKE CONTRIBUTIONS TO A CHARITABLE ORGANIZATION FOR WHICH THE
7 CONTRIBUTORS WILL RECEIVE NO DIRECT ECONOMIC BENEFIT.
8 FUNDRAISING COSTS NORMALLY INCLUDE, BUT ARE NOT LIMITED TO,
9 SALARIES, RENT, ACQUIRING AND MAINTAINING MAILING LISTS,
10 PRINTING, MAILING AND ALL DIRECT AND INDIRECT COSTS OF
11 SOLICITING, AS WELL AS THE COST OF UNSOLICITED MERCHANDISE SENT
12 TO ENCOURAGE CONTRIBUTIONS. FUNDRAISING COSTS DO NOT INCLUDE THE
13 DIRECT COST OF MERCHANDISE OR GOODS SOLD OR THE DIRECT COST OF
14 FUNDRAISING DINNERS, BAZAARS, SHOWS, CIRCUSES, BANQUETS,
15 DINNERS, THEATER PARTIES OR ANY OTHER FORM OF BENEFIT
16 PERFORMANCES.
17 "LAW ENFORCEMENT PERSONNEL." ANY PERSON WHO IS OR REPRESENTS
18 OR HOLDS ITSELF OUT TO REPRESENT, AID, TRAIN OR OTHERWISE
19 BENEFIT ANY POLICE OFFICER, SHERIFF OR DEPUTY SHERIFF, CONSTABLE
20 OR DEPUTY CONSTABLE, COUNTY DETECTIVES, FIRE POLICE, OR ANY
21 OTHER PERSON WHO IS EMPOWERED TO MAKE ARRESTS, SERVE WARRANTS,
22 ISSUE SUMMONS OR OTHERWISE ENFORCE THE LAWS OF THIS COMMONWEALTH
23 TO INCLUDE RETIRED LAW ENFORCEMENT PERSONNEL AND THE FAMILIES OF
24 LAW ENFORCEMENT PERSONNEL.
25 "NET PROCEEDS." THE TOTAL PROCEEDS RECEIVED FROM THE
26 SOLICITATION OF CONTRIBUTIONS REDUCED BY THE DIRECT COST OF
27 MERCHANDISE OR OTHER GOODS SOLD OR FUNDRAISING EVENTS OF ANY
28 KIND.
29 "OWNER." ANY PERSON WHO HAS A DIRECT OR INDIRECT INTEREST IN
30 ANY PROFESSIONAL FUNDRAISING COUNSEL OR PROFESSIONAL SOLICITOR.
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1 "PARENT ORGANIZATION." THAT PART OF A CHARITABLE
2 ORGANIZATION WHICH COORDINATES, SUPERVISES OR EXERCISES CONTROL
3 OF POLICY, FUNDRAISING AND EXPENDITURES, OR ASSISTS OR RECEIVES
4 FUNDS FROM OR ADVISES ONE OR MORE AFFILIATES.
5 "PERSON." ANY INDIVIDUAL, ORGANIZATION, CORPORATION,
6 ASSOCIATION, PARTNERSHIP, TRUST, FOUNDATION OR ANY OTHER ENTITY
7 HOWEVER STYLED.
8 "PROFESSIONAL FUNDRAISING COUNSEL." ANY PERSON WHO IS
9 RETAINED BY A CHARITABLE ORGANIZATION FOR A FIXED FEE OR RATE
10 UNDER A WRITTEN AGREEMENT TO PLAN, CONDUCT, MANAGE, CARRY ON,
11 ADVISE, CONSULT OR PREPARE MATERIAL FOR OR WITH RESPECT TO THE
12 SOLICITATION IN THIS COMMONWEALTH OF CONTRIBUTIONS FOR A
13 CHARITABLE ORGANIZATION, BUT WHO DOES NOT SOLICIT CONTRIBUTIONS
14 OR EMPLOY, PROCURE OR ENGAGE ANY COMPENSATED PERSON TO SOLICIT
15 CONTRIBUTIONS AND WHO DOES NOT HAVE CUSTODY OR CONTROL OF
16 CONTRIBUTIONS. A BONA FIDE SALARIED OFFICER OR REGULAR,
17 NONTEMPORARY EMPLOYEE OF A CHARITABLE ORGANIZATION MAINTAINING A
18 PERMANENT ESTABLISHMENT WITHIN THIS COMMONWEALTH SHALL NOT BE
19 DEEMED TO BE A PROFESSIONAL FUNDRAISING COUNSEL PROVIDED THAT
20 THE INDIVIDUAL IS NOT EMPLOYED OR ENGAGED AS PROFESSIONAL
21 FUNDRAISING COUNSEL OR AS A PROFESSIONAL SOLICITOR BY ANY OTHER
22 PERSON.
23 "PROFESSIONAL SOLICITOR." ANY PERSON WHO IS RETAINED FOR
24 FINANCIAL OR OTHER CONSIDERATION BY A CHARITABLE ORGANIZATION TO
25 SOLICIT IN THIS COMMONWEALTH CONTRIBUTIONS FOR CHARITABLE
26 PURPOSES DIRECTLY OR IN THE FORM OF PAYMENT FOR GOODS, SERVICES
27 OR ADMISSION TO FUNDRAISING EVENTS, WHETHER SUCH SOLICITATION IS
28 PERFORMED PERSONALLY OR THROUGH HIS AGENTS, SERVANTS OR
29 EMPLOYEES OR THROUGH AGENTS, SERVANTS OR EMPLOYEES ESPECIALLY
30 EMPLOYED BY OR FOR A CHARITABLE ORGANIZATION WHO ARE ENGAGED IN
19890H0365B4286 - 13 -
1 THE SOLICITATION OF CONTRIBUTIONS, THE SALE OF GOODS OR SERVICES
2 OR THE PRODUCTION OF FUNDRAISING EVENTS UNDER THE DIRECTION OF
3 SUCH PERSON, OR A PERSON WHO PLANS, CONDUCTS, MANAGES, CARRIES
4 ON, ADVISES, CONSULTS, WHETHER DIRECTLY OR INDIRECTLY, IN
5 CONNECTION WITH THE SOLICITATION OF CONTRIBUTIONS, SALE OF GOODS
6 OR SERVICES OR THE PRODUCTION OF FUNDRAISING EVENTS FOR OR ON
7 BEHALF OF ANY CHARITABLE ORGANIZATION, BUT DOES NOT QUALIFY AS A
8 PROFESSIONAL FUNDRAISING COUNSEL WITHIN THE MEANING OF THIS ACT.
9 A PERSON WHO IS OTHERWISE A PROFESSIONAL FUNDRAISING COUNSEL
10 SHALL BE DEEMED A PROFESSIONAL SOLICITOR IF HIS COMPENSATION IS
11 RELATED TO THE AMOUNT OF CONTRIBUTIONS RECEIVED. A BONA FIDE
12 SALARIED OFFICER OR REGULAR, NONTEMPORARY EMPLOYEE OF A
13 CHARITABLE ORGANIZATION MAINTAINING A PERMANENT ESTABLISHMENT
14 WITHIN THIS COMMONWEALTH SHALL NOT BE DEEMED TO BE A
15 PROFESSIONAL SOLICITOR PROVIDED THAT THE INDIVIDUAL IS NOT
16 EMPLOYED OR ENGAGED AS PROFESSIONAL FUNDRAISING COUNSEL OR AS A
17 PROFESSIONAL SOLICITOR BY ANY OTHER PERSON.
18 "SECRETARY." THE SECRETARY OF THE COMMONWEALTH.
19 "SOLICITATION." ANY DIRECT OR INDIRECT REQUEST FOR A
20 CONTRIBUTION ON THE REPRESENTATION THAT SUCH CONTRIBUTION WILL
21 BE USED IN WHOLE OR IN PART FOR A CHARITABLE PURPOSE INCLUDING,
22 BUT NOT LIMITED TO, ANY OF THE FOLLOWING:
23 (1) ANY ORAL REQUEST THAT IS MADE IN PERSON, BY
24 TELEPHONE, RADIO OR TELEVISION OR OTHER ADVERTISING OR
25 COMMUNICATION MEDIA.
26 (2) ANY WRITTEN OR OTHERWISE RECORDED OR PUBLISHED
27 REQUEST THAT IS MAILED, SENT, DELIVERED, CIRCULATED,
28 DISTRIBUTED, POSTED IN A PUBLIC PLACE OR ADVERTISED OR
29 COMMUNICATED BY PRESS, TELEGRAPH, TELEVISION OR ANY OTHER
30 MEDIA.
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1 (3) ANY SALE OF, OFFER OR ATTEMPT TO SELL ANY
2 ADVERTISEMENT, ADVERTISING SPACE, SPONSORSHIP, BOOK, CARD,
3 CHANCE, COUPON, DEVICE, FOOD, MAGAZINE, MERCHANDISE,
4 NEWSPAPER, SUBSCRIPTION, TICKET OR OTHER SERVICE OR TANGIBLE
5 GOOD, THING OR ITEM OF VALUE.
6 (4) ANY ANNOUNCEMENT REQUESTING THE PUBLIC TO ATTEND AN
7 APPEAL, ASSEMBLAGE, ATHLETIC OR COMPETITIVE EVENT, CARNIVAL,
8 CIRCUS, CONCERT, CONTEST, DANCE, ENTERTAINMENT, EXHIBITION,
9 EXPOSITION, GAME, LECTURE, MEAL, PARTY, SHOW, SOCIAL
10 GATHERING OR OTHER PERFORMANCE OR EVENT OF ANY KIND.
11 SECTION 4. POWERS AND DUTIES OF SECRETARY.
12 THE SECRETARY SHALL HAVE THE FOLLOWING POWERS AND DUTIES TO:
13 (1) PROVIDE FOR AND REGULATE THE REGISTRATION OF
14 CHARITABLE ORGANIZATIONS, PROFESSIONAL FUNDRAISING COUNSELORS
15 AND PROFESSIONAL SOLICITORS.
16 (2) DECIDE MATTERS RELATING TO THE ISSUANCE, RENEWAL,
17 SUSPENSION OR REVOCATION OF REGISTRATION.
18 (3) PROMULGATE, ADOPT AND ENFORCE THE RULES AND
19 REGULATIONS NECESSARY TO CARRY OUT THIS ACT.
20 (4) PROMULGATE REGULATIONS ALTERING FEES AND FINES
21 ESTABLISHED IN THIS ACT SUFFICIENT TO MEET EXPENDITURES OF
22 THE BUREAU.
23 (5) TAKE APPROPRIATE ACTION TO INITIATE ANY CIVIL OR
24 CRIMINAL PROCEEDINGS NECESSARY TO ENFORCE THIS ACT, IN
25 ACCORDANCE WITH THE ACT OF OCTOBER 15, 1980 (P.L.950,
26 NO.164), KNOWN AS THE COMMONWEALTH ATTORNEYS ACT.
27 (6) CONDUCT HEARINGS AND MAKE ADJUDICATIONS.
28 (7) KEEP A RECORD SHOWING THE NAMES AND ADDRESSES OF ALL
29 REGISTERED CHARITABLE ORGANIZATIONS, PROFESSIONAL FUNDRAISING
30 COUNSEL AND PROFESSIONAL SOLICITORS.
19890H0365B4286 - 15 -
1 (8) SUBMIT ANNUALLY, ON OR BEFORE SEPTEMBER 30, TO THE
2 GOVERNOR, TO THE STATE GOVERNMENT COMMITTEES OF THE HOUSE OF
3 REPRESENTATIVES AND SENATE, AS WELL AS TO INTERESTED PARTIES,
4 A REPORT ON THE NUMBER OF REGISTERED CHARITIES, THE NUMBER OF
5 CHARITIES ORDERED TO CEASE AND DESIST SOLICITATION, THE
6 NUMBER OF CHARITIES CONTRACTING WITH PROFESSIONAL SOLICITORS
7 AND THE COMPENSATION OF PROFESSIONAL SOLICITORS FOR EACH
8 SOLICITATION CAMPAIGN IN RELATION TO THE FUNDS RAISED AND
9 ADMINISTRATIVE COSTS.
10 (9) DELEGATE TO A DIVISION DIRECTOR OF HIS OFFICE SUCH
11 POWERS AND DUTIES UNDER THIS ACT AS HE MAY DEEM APPROPRIATE.
12 (10) EXERCISE ALL OTHER AUTHORITY ACCORDED TO HIM BY
13 THIS ACT.
14 SECTION 5. REGISTRATION OF CHARITABLE ORGANIZATIONS; FINANCIAL
15 REPORTS; FEES; FAILURE TO FILE.
16 (A) REGISTRATION AND APPROVAL REQUIRED.--A CHARITABLE
17 ORGANIZATION, UNLESS EXEMPTED FROM REGISTRATION REQUIREMENTS
18 PURSUANT TO SECTION 6, SHALL FILE A REGISTRATION STATEMENT WITH
19 THE DEPARTMENT. THIS STATEMENT MUST BE REFILED ANNUALLY WITHIN
20 135 DAYS AFTER THE CLOSE OF ITS FISCAL YEAR IN WHICH THE
21 CHARITABLE ORGANIZATION WAS ENGAGED IN SOLICITATION ACTIVITIES.
22 THE DEPARTMENT SHALL REVIEW THE STATEMENT PURSUANT TO SUBSECTION
23 (R). NO CHARITABLE ORGANIZATION SHALL SOLICIT CONTRIBUTIONS OR
24 HAVE CONTRIBUTIONS SOLICITED IN ITS BEHALF BEFORE APPROVAL OF
25 ITS REGISTRATION STATEMENT BY THE DEPARTMENT.
26 (B) FILING OF STATEMENT.--IT SHALL BE THE DUTY OF THE
27 PRESIDENT, CHAIRMAN OR PRINCIPAL OFFICER OF EACH CHARITABLE
28 ORGANIZATION TO FILE THE REGISTRATION STATEMENT, FINANCIAL
29 REPORT AND FEE REQUIRED UNDER THIS SECTION. THE REGISTRATION
30 STATEMENT SHALL BE SWORN TO BY TWO AUTHORIZED OFFICERS,
19890H0365B4286 - 16 -
1 INCLUDING THE CHIEF FISCAL OFFICER OF THE ORGANIZATION, AND
2 SHALL CONTAIN ALL OF THE FOLLOWING INFORMATION:
3 (1) THE NAME OF THE ORGANIZATION AND ANY OTHER NAME OR
4 NAMES UNDER WHICH IT INTENDS TO SOLICIT CONTRIBUTIONS.
5 (2) THE PRINCIPAL ADDRESS AND TELEPHONE NUMBER OF THE
6 ORGANIZATION AND THE ADDRESSES AND TELEPHONE NUMBERS OF ANY
7 OFFICES IN THIS COMMONWEALTH. IF THE ORGANIZATION DOES NOT
8 MAINTAIN AN OFFICE, THE NAME AND ADDRESS OF THE INDIVIDUAL
9 HAVING CUSTODY OF ITS FINANCIAL RECORDS.
10 (3) THE NAMES AND ADDRESSES OF ANY AFFILIATES WHICH
11 SHARE IN THE CONTRIBUTIONS OR OTHER REVENUE RAISED IN THIS
12 COMMONWEALTH.
13 (4) THE NAMES AND ADDRESSES OF THE OFFICERS, DIRECTORS
14 AND TRUSTEES AND THE PRINCIPAL SALARIED EXECUTIVE STAFF
15 OFFICERS.
16 (5) A COPY OF THE FINANCIAL REPORT REQUIRED UNDER
17 SUBSECTION (E).
18 (6) A COPY OF ANY DETERMINATION OF THE ORGANIZATION'S
19 TAX EXEMPT STATUS UNDER THE INTERNAL REVENUE CODE OF 1986
20 (PUBLIC LAW 99-514) AND, FOR ORGANIZATIONS GRANTED TAX EXEMPT
21 STATUS UNDER SECTION 501(C)(3), A COPY OF THE LAST FILED
22 INTERNAL REVENUE SERVICE FORM 990 AND SCHEDULE A FOR EVERY
23 CHARITABLE ORGANIZATION AND PARENT ORGANIZATION.
24 (7) THE DATE WHEN THE ORGANIZATION'S FISCAL YEAR BEGINS.
25 (8) WHETHER:
26 (I) THE ORGANIZATION IS AUTHORIZED BY ANY OTHER
27 GOVERNMENTAL AUTHORITY TO SOLICIT CONTRIBUTIONS;
28 (II) THE ORGANIZATION OR ANY OF ITS PRESENT
29 OFFICERS, DIRECTORS, EXECUTIVE PERSONNEL OR TRUSTEES ARE
30 OR HAVE EVER BEEN ENJOINED IN ANY JURISDICTION FROM
19890H0365B4286 - 17 -
1 SOLICITING CONTRIBUTIONS OR HAVE BEEN FOUND TO HAVE
2 ENGAGED IN UNLAWFUL PRACTICES IN THE SOLICITATION OF
3 CONTRIBUTIONS OR ADMINISTRATION OF CHARITABLE ASSETS;
4 (III) THE ORGANIZATION'S REGISTRATION OR LICENSE HAS
5 BEEN DENIED, SUSPENDED OR REVOKED BY ANY GOVERNMENTAL
6 AGENCY TOGETHER WITH THE REASONS FOR SUCH DENIAL,
7 SUSPENSION OR REVOCATION; AND
8 (IV) THE ORGANIZATION HAS VOLUNTARILY ENTERED INTO
9 AN ASSURANCE OF VOLUNTARY DISCONTINUANCE OR AGREEMENT
10 SIMILAR TO THAT SET FORTH IN SECTION 19(B) TOGETHER WITH
11 A COPY OF THAT AGREEMENT.
12 (9) A CLEAR DESCRIPTION OF THE SPECIFIC PROGRAMS FOR
13 WHICH CONTRIBUTIONS WILL BE USED AND A STATEMENT WHETHER SUCH
14 PROGRAMS ARE PLANNED OR IN EXISTENCE.
15 (10) THE NAMES AND ADDRESSES OF ANY PROFESSIONAL
16 SOLICITORS, PROFESSIONAL FUNDRAISING COUNSELS AND COMMERCIAL
17 CO-VENTURERS WHO ARE ACTING OR HAVE AGREED TO ACT ON BEHALF
18 OF THE ORGANIZATION.
19 (11) THE NAMES OF THE INDIVIDUALS OR OFFICERS OF THE
20 ORGANIZATION WHO ARE IN CHARGE OF ANY SOLICITATION
21 ACTIVITIES, WHO WILL HAVE FINAL RESPONSIBILITY FOR THE
22 CUSTODY OF THE CONTRIBUTIONS AND WHO WILL BE RESPONSIBLE FOR
23 THE FINAL DISTRIBUTION OF THE CONTRIBUTIONS.
24 (12) WHETHER ANY OF THE ORGANIZATION'S OFFICERS,
25 DIRECTORS, TRUSTEES OR EMPLOYEES ARE RELATED BY BLOOD,
26 MARRIAGE OR ADOPTION TO EACH OTHER OR TO ANY OFFICERS, AGENTS
27 OR EMPLOYEES OF ANY PROFESSIONAL FUNDRAISING COUNSEL OR
28 PROFESSIONAL SOLICITOR UNDER CONTRACT TO THE ORGANIZATION OR
29 TO ANY SUPPLIER OR VENDOR PROVIDING GOODS OR SERVICES TO THE
30 ORGANIZATION, AND THE NAMES AND BUSINESS AND RESIDENCE
19890H0365B4286 - 18 -
1 ADDRESSES OF ANY SUCH RELATED PARTIES.
2 (13) ANY OTHER INFORMATION REQUIRED BY THE REGULATIONS
3 OF THE DEPARTMENT.
4 (C) ADDITIONAL FILINGS.--WITH THE INITIAL REGISTRATION ONLY,
5 EACH CHARITABLE ORGANIZATION REQUIRED TO BE REGISTERED SHALL
6 ALSO FILE WITH THE DEPARTMENT THE FOLLOWING DOCUMENTS:
7 (1) A COPY OF THE ORGANIZATION'S CHARTER, ARTICLES OF
8 ORGANIZATION, AGREEMENT OF ASSOCIATION, INSTRUMENT OF TRUST,
9 CONSTITUTION OR OTHER ORGANIZATIONAL INSTRUMENT AND BYLAWS.
10 (2) A STATEMENT SETTING FORTH WHERE AND THE DATE WHEN
11 THE ORGANIZATION WAS LEGALLY ESTABLISHED, THE FORM OF ITS
12 ORGANIZATION AND ITS TAX-EXEMPT STATUS TOGETHER WITH A COPY
13 OF THE LETTER OF EXEMPTION, IF ANY, ISSUED BY THE INTERNAL
14 REVENUE SERVICE.
15 (D) FEDERAL TAX EXEMPTION DETERMINATION.--EACH CHARITABLE
16 ORGANIZATION REGISTERED WITH THE DEPARTMENT SHALL FILE WITH THE
17 DEPARTMENT A COPY OF ANY FEDERAL TAX EXEMPTION DETERMINATION
18 LETTER RECEIVED AFTER THE INITIAL REGISTRATION WITHIN 30 DAYS
19 AFTER RECEIPT, AND ANY AMENDMENTS TO ITS ORGANIZATIONAL
20 INSTRUMENT WITHIN 30 DAYS AFTER ADOPTION.
21 (E) FINANCIAL REPORT.--WITH EACH REGISTRATION STATEMENT, A
22 CHARITABLE ORGANIZATION MUST FILE A FINANCIAL REPORT FOR THE
23 IMMEDIATELY PRECEDING FISCAL YEAR, WHICH SHALL CONTAIN A BALANCE
24 SHEET AND STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN FUND
25 BALANCES INDICATING THE ORGANIZATION'S GROSS REVENUE, THE AMOUNT
26 OF FUNDS RECEIVED FROM SOLICITATIONS OR OTHER FUNDRAISING
27 ACTIVITIES AND ALL EXPENDITURES FOR SUPPLIES, EQUIPMENT, GOODS,
28 SERVICES, PROGRAMS, ACTIVITIES OR OTHER EXPENSES, A DETAILED
29 LIST OF ALL SALARIES AND WAGES PAID AND EXPENSES ALLOWED TO ANY
30 OFFICER, OR EMPLOYEE IF THE ORGANIZATION IS NOT REQUIRED TO FILE
19890H0365B4286 - 19 -
1 AN INTERNAL REVENUE SERVICE FORM 990 AND THE DISPOSITION OF THE
2 NET PROCEEDS RECEIVED FROM SOLICITED CONTRIBUTIONS OR OTHER
3 FUNDRAISING ACTIVITIES.
4 (F) AUDIT OF CERTAIN FINANCIAL REPORTS.--THE FINANCIAL
5 REPORT OF EVERY CHARITABLE ORGANIZATION WHICH RECEIVED
6 CONTRIBUTIONS IN EXCESS OF $100,000 SHALL BE AUDITED BY AN
7 INDEPENDENT PUBLIC ACCOUNTANT. THE EXCEPT FOR THE CHARITABLE <--
8 ORGANIZATIONS DESCRIBED IN SECTION 6(A)(3), THE FINANCIAL REPORT
9 OF EVERY CHARITABLE ORGANIZATION WHICH RECEIVES CONTRIBUTIONS IN
10 EXCESS OF $25,000, BUT LESS THAN $100,000 SHALL BE REVIEWED OR
11 AUDITED BY AN INDEPENDENT PUBLIC ACCOUNTANT. AN AUDIT OR REVIEW
12 IS OPTIONAL FOR ANY CHARITABLE ORGANIZATION WHICH RECEIVES
13 CONTRIBUTIONS LESS THAN $25,000 OR FOR ANY CHARITABLE <--
14 ORGANIZATION DESCRIBED IN SECTION 6(A)(3) WHICH RECEIVES
15 CONTRIBUTIONS LESS THAN $100,000. AUDITS SHALL BE PERFORMED IN
16 ACCORDANCE WITH THE STATEMENT ON AUDITING STANDARDS OF THE
17 AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND REVIEWS
18 SHALL BE PERFORMED IN ACCORDANCE WITH THE STATEMENT ON STANDARDS
19 FOR ACCOUNTING AND REVIEW SERVICES OF THE AMERICAN INSTITUTE OF
20 CERTIFIED PUBLIC ACCOUNTANTS.
21 (G) GOVERNMENTAL AUDITS.--GOVERNMENT AUDITS OF GOVERNMENT
22 GRANTS SHALL BE ACCEPTED AND SHALL BE INCLUDED AS PART OF THE
23 FINANCIAL STATEMENTS.
24 (H) OTHER ACCEPTABLE REPORTS.--THE DEPARTMENT MAY ACCEPT A
25 COPY OF A CURRENT FINANCIAL REPORT PREVIOUSLY PREPARED BY A
26 CHARITABLE ORGANIZATION FOR A GOVERNMENTAL AGENCY IN ANOTHER
27 JURISDICTION IN COMPLIANCE WITH THE LAWS OF THAT JURISDICTION,
28 PROVIDED THAT THE REPORT FILED WITH SUCH OTHER GOVERNMENTAL
29 AGENCY SHALL BE SUBSTANTIALLY SIMILAR IN CONTENT TO THE REPORT
30 REQUIRED BY THIS SECTION.
19890H0365B4286 - 20 -
1 (I) REPORTS TO ACCOMPANY AUDIT.--AUDITED AND REVIEWED
2 FINANCIAL STATEMENTS MUST BE ACCOMPANIED BY THE REPORT PREPARED
3 AND SIGNED BY THE INDEPENDENT PUBLIC ACCOUNTANT.
4 (J) OPTIONAL DEPARTMENTAL ACTION.--THE DEPARTMENT SHALL HAVE
5 THE DISCRETION TO REQUIRE THAT AN AUDIT OR REVIEW BE SUBMITTED
6 BY ANY CHARITABLE ORGANIZATION WHICH FILES A REGISTRATION
7 STATEMENT. THE DEPARTMENT SHALL ALSO HAVE THE DISCRETION TO
8 ACCEPT THE FINANCIAL STATEMENT SUBMITTED BY THE ORGANIZATION IN
9 LIEU OF AN AUDIT OR REVIEW WHERE SPECIAL FACTS AND CIRCUMSTANCES
10 ARE PRESENTED.
11 (K) TIME EXTENSION FOR FILINGS.--FOR GOOD CAUSE SHOWN, THE
12 DEPARTMENT MAY EXTEND THE TIME FOR THE ANNUAL FILING OF A
13 REGISTRATION STATEMENT OR FINANCIAL REPORT FOR A PERIOD NOT TO
14 EXCEED 180 DAYS DURING WHICH TIME THE PREVIOUS REGISTRATION
15 REMAINS IN EFFECT.
16 (L) CANCELLATION OF REGISTRATION.--IN NO EVENT SHALL THE
17 REGISTRATION OF A CHARITABLE ORGANIZATION CONTINUE IN EFFECT
18 AFTER THE DATE THE ORGANIZATION SHOULD HAVE FILED, BUT FAILED TO
19 FILE, ITS FINANCIAL REPORT IN ACCORDANCE WITH THIS SECTION. SUCH
20 ORGANIZATION SHALL NOT BE ELIGIBLE TO FILE A NEW REGISTRATION
21 STATEMENT UNTIL IT SHALL HAVE FILED THE REQUIRED FINANCIAL
22 REPORT WITH THE DEPARTMENT.
23 (M) REPORTS BY AFFILIATES.--
24 (1) EACH AFFILIATE WHOSE PARENT ORGANIZATION HAS ITS
25 PRINCIPAL PLACE OF BUSINESS IN THIS COMMONWEALTH MAY
26 SEPARATELY FILE THE REGISTRATION STATEMENT OR FINANCIAL
27 INFORMATION REQUIRED BY THIS SECTION, OR REPORT THE REQUIRED
28 INFORMATION TO ITS PARENT ORGANIZATION WHICH SHALL THEN FILE
29 A COMBINED REGISTRATION STATEMENT AND FINANCIAL REPORT FOR
30 ITS PENNSYLVANIA AFFILIATES. THERE SHALL BE APPENDED TO EACH
19890H0365B4286 - 21 -
1 COMBINED REPORT A SCHEDULE, CONTAINING SUCH INFORMATION AS
2 MAY BE PRESCRIBED IN THE REGULATIONS OF THE DEPARTMENT,
3 REFLECTING THE ACTIVITIES OF EACH AFFILIATE, WHICH SHALL
4 CONTAIN A CERTIFICATION, UNDER OATH, BY AN OFFICIAL OF THE
5 ORGANIZATION, THAT THE INFORMATION CONTAINED THEREIN IS TRUE.
6 THE FAILURE OF A PARENT ORGANIZATION TO FILE A COMBINED
7 REGISTRATION STATEMENT AND FINANCIAL REPORT SHALL NOT EXCUSE
8 EITHER THE PARENT ORGANIZATION OR ITS AFFILIATES FROM
9 COMPLYING WITH THE REQUIREMENTS OF THIS SECTION.
10 (2) IF AN AFFILIATE IS SOLICITING IN THIS COMMONWEALTH
11 BUT ITS PARENT ORGANIZATION HAS ITS PRINCIPAL PLACE OF
12 BUSINESS OUTSIDE THIS COMMONWEALTH, BOTH THE AFFILIATE AND
13 THE PARENT ORGANIZATION SHALL INDEPENDENTLY COMPLY WITH ALL
14 OF THE REGISTRATION REQUIREMENTS OF THIS SECTION.
15 (N) FEDERATED ORGANIZATIONS.--AN INDEPENDENT MEMBER AGENCY
16 OF A FEDERATED FUNDRAISING ORGANIZATION SHALL INDEPENDENTLY
17 COMPLY WITH THE PROVISIONS OF THIS SECTION UNLESS SPECIFICALLY
18 EXEMPTED.
19 (O) RETENTION OF RECORDS, ETC.--EACH CHARITABLE ORGANIZATION
20 REQUIRED TO REGISTER SHALL MAINTAIN RECORDS, BOOKS AND REPORTS
21 FOR AT LEAST THREE YEARS AFTER THE END OF THE PERIOD OF
22 REGISTRATION TO WHICH THEY RELATE, WHICH SHALL BE AVAILABLE FOR
23 INSPECTION UPON DEMAND BY THE DEPARTMENT AND THE OFFICE OF
24 ATTORNEY GENERAL.
25 (P) ANNUAL REGISTRATION FEES.--A CHARITABLE ORGANIZATION
26 WHICH SUBMITS A SHORT FORM REGISTRATION STATEMENT PURSUANT TO
27 SECTION 7 OR RECEIVES CONTRIBUTIONS OF LESS THAN $25,000 DURING
28 THE IMMEDIATELY PRECEDING FISCAL YEAR SHALL PAY AN ANNUAL
29 REGISTRATION FEE OF $15. A CHARITABLE ORGANIZATION WHICH
30 RECEIVES CONTRIBUTIONS IN EXCESS OF $25,000, BUT LESS THAN
19890H0365B4286 - 22 -
1 $100,000 DURING THE IMMEDIATELY PRECEDING FISCAL YEAR SHALL PAY
2 AN ANNUAL REGISTRATION FEE OF $50. A CHARITABLE ORGANIZATION
3 WHICH RECEIVES CONTRIBUTIONS IN EXCESS OF $100,000 DURING THE
4 IMMEDIATELY PRECEDING FISCAL YEAR SHALL PAY AN ANNUAL
5 REGISTRATION FEE OF $100. A PARENT ORGANIZATION FILING ON BEHALF
6 OF ONE OR MORE AFFILIATES AND A FEDERATED FUNDRAISING
7 ORGANIZATION FILING ON BEHALF OF IT MEMBER AGENCIES SHALL PAY A
8 SINGLE ANNUAL REGISTRATION FEE FOR ITSELF AND SUCH OTHER
9 AFFILIATES OR MEMBER AGENCIES INCLUDED IN THE REGISTRATION
10 STATEMENT.
11 (Q) LATE FILING FEES.--IN ADDITION TO THE REGISTRATION FEE,
12 AN ORGANIZATION FAILING TO FILE A REGISTRATION APPLICATION BY
13 THE DUE DATE SHALL PAY AN ADDITIONAL FEE OF $25 FOR EACH MONTH
14 OR PART OF THE MONTH AFTER THE DATE ON WHICH THE REGISTRATION
15 STATEMENT AND FINANCIAL REPORT WERE DUE TO BE FILED OR AFTER THE
16 PERIOD OF EXTENSION GRANTED FOR SUCH FILING.
17 (R) DEPARTMENT REVIEW.--THE DEPARTMENT SHALL EXAMINE EACH
18 REGISTRATION STATEMENT AND SUPPORTING DOCUMENTS FILED BY A
19 CHARITABLE ORGANIZATION 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 CHARITABLE ORGANIZATION WITHIN
23 TEN WORKING DAYS OF ITS RECEIPT OF THE REGISTRATION STATEMENT;
24 OTHERWISE THE REGISTRATION STATEMENT IS DEEMED TO BE APPROVED.
25 WITHIN SEVEN DAYS AFTER RECEIPT OF A NOTIFICATION THAT THE
26 REGISTRATION REQUIREMENTS ARE NOT SATISFIED, THE CHARITABLE
27 ORGANIZATION MAY REQUEST A HEARING. THE HEARING MUST BE HELD
28 WITHIN SEVEN DAYS OF RECEIPT OF THE REQUEST AND A DETERMINATION
29 MUST BE RENDERED WITHIN THREE WORKING DAYS OF THE HEARING.
30 SECTION 6. EXEMPTIONS FROM REGISTRATION.
19890H0365B4286 - 23 -
1 (A) GENERAL RULE.--THE FOLLOWING CHARITABLE ORGANIZATIONS
2 SHALL BE EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THIS ACT:
3 (1) EDUCATIONAL INSTITUTIONS, THE CURRICULA OF WHICH IN
4 WHOLE OR IN PART ARE REGISTERED WITH OR APPROVED BY THE
5 DEPARTMENT OF EDUCATION, EITHER DIRECTLY OR BY ACCEPTANCE OF
6 ACCREDITATION BY AN ACCREDITING BODY RECOGNIZED BY THE
7 DEPARTMENT OF EDUCATION; AND ANY AUXILIARY ASSOCIATIONS,
8 FOUNDATIONS AND SUPPORT GROUPS WHICH ARE DIRECTLY RESPONSIBLE
9 TO EDUCATIONAL INSTITUTIONS.
10 (2) HOSPITALS WHICH ARE SUBJECT TO REGULATION BY THE
11 DEPARTMENT OF HEALTH.
12 (3) A LOCAL POST, CAMP, CHAPTER OR SIMILARLY DESIGNATED
13 ELEMENT OR A COUNTY UNIT OF SUCH ELEMENTS OF:
14 (I) A BONA FIDE VETERAN'S ORGANIZATION WHICH ISSUES
15 CHARTERS TO SUCH LOCAL ELEMENTS THROUGHOUT THIS
16 COMMONWEALTH;
17 (II) A BONA FIDE ORGANIZATION OF VOLUNTEER FIREMEN;
18 (III) A BONA FIDE AMBULANCE ASSOCIATION;
19 (IV) A BONA FIDE RESCUE SQUAD ASSOCIATION; OR
20 (V) A BONA FIDE AUXILIARY OR AFFILIATE OF ANY
21 ORGANIZATION OR ASSOCIATION UNDER SUBPARAGRAPH (I), (II),
22 (III) OR (IV);
23 PROVIDED THAT ALL FUNDRAISING ACTIVITIES OF AN ORGANIZATION
24 OR ASSOCIATION UNDER SUBPARAGRAPH (I), (II), (III), (IV) OR
25 (V) ARE CARRIED ON BY VOLUNTEERS, MEMBERS OR AN AUXILIARY OR
26 AFFILIATE THEREOF, AND THOSE VOLUNTEERS, MEMBERS OR
27 AFFILIATES RECEIVE NO COMPENSATION DIRECTLY OR INDIRECTLY FOR
28 THE FUNDRAISING ACTIVITIES.
29 (4) PUBLIC NONPROFIT LIBRARY ORGANIZATIONS WHICH RECEIVE
30 FINANCIAL AID FROM STATE AND MUNICIPAL GOVERNMENTS AND FILE
19890H0365B4286 - 24 -
1 AN ANNUAL FISCAL REPORT WITH THE STATE LIBRARY SYSTEM.
2 (5) SENIOR CITIZEN CENTERS WHICH ARE NONPROFIT AND
3 CHARITABLE AND WHICH HAVE BEEN GRANTED TAX-EXEMPT STATUS
4 UNDER THE INTERNAL REVENUE CODE OF 1986 (PUBLIC LAW 99-514,
5 26 U.S.C. § 1 ET. SEQ.), PROVIDED THAT ALL FUNDRAISING
6 ACTIVITIES ARE CARRIED ON BY VOLUNTEERS, MEMBERS OR OFFICERS
7 OF THE SENIOR CITIZEN CENTER AND THOSE VOLUNTEERS, MEMBERS OR
8 OFFICERS RECEIVE NO COMPENSATION DIRECTLY OR INDIRECTLY FOR
9 THE FUNDRAISING ACTIVITIES.
10 (6) BONA FIDE PARENT/TEACHER ASSOCIATIONS OR
11 PARENT/TEACHER ORGANIZATIONS AS RECOGNIZED IN A NOTARIZED
12 LETTER FROM THE SCHOOL DISTRICT IN WHICH THEY ARE LOCATED.
13 (7) ANY CORPORATION ESTABLISHED BY AN ACT OF CONGRESS OF
14 THE UNITED STATES, THAT IS REQUIRED BY FEDERAL LAW TO SUBMIT
15 ANNUAL REPORTS OF ITS ACTIVITIES TO CONGRESS CONTAINING
16 ITEMIZED ACCOUNTS OF ALL RECEIPTS AND EXPENDITURES AFTER
17 BEING FULLY AUDITED BY THE DEPARTMENT OF DEFENSE.
18 (B) EFFECT OF EXEMPTION.--EXEMPTION FROM THE REGISTRATION
19 REQUIREMENTS OF THIS ACT SHALL IN NO WAY LIMIT THE APPLICABILITY
20 OF OTHER PROVISIONS OF THE ACT TO A CHARITABLE ORGANIZATION.
21 SECTION 7. SHORT FORM REGISTRATION.
22 (A) ORGANIZATIONS REQUIRED TO FILE.--THE FOLLOWING <--
23 CHARITABLE ORGANIZATIONS SHALL BE REQUIRED TO FILE SHORT FORM
24 ANNUAL REGISTRATION STATEMENTS WITH THE DEPARTMENT:
25 (1) PERSONS OR CHARITABLE ORGANIZATIONS ACCEPTING
26 CONTRIBUTIONS FOR THE RELIEF OF ANY INDIVIDUAL SPECIFIED BY
27 NAME AT THE TIME OF ACCEPTANCE OR SOLICITATION WHEN ALL OF
28 THE CONTRIBUTIONS COLLECTED WITHOUT ANY DEDUCTIONS WHATSOEVER
29 ARE TURNED OVER TO THE NAMED BENEFICIARY FOR HIS USE;
30 PROVIDED THAT ALL CONTRIBUTIONS COLLECTED SHALL BE HELD IN
19890H0365B4286 - 25 -
1 TRUST AND SHALL BE SUBJECT TO THE PROVISIONS OF 20 PA.C.S.
2 CH. 71 (RELATING TO TRUST ESTATES). THE SECRETARY, THE
3 ATTORNEY GENERAL, ANY CONTRIBUTOR OR ANY PERSON WHO PROVIDES
4 ANY GOODS OR SERVICES FOR WHICH FUNDS ARE EXPRESSLY OR
5 IMPLICITLY SOLICITED SHALL HAVE THE RIGHT TO PETITION THE
6 COURT OF COMMON PLEAS OF THE COUNTY IN WHICH THE TRUST IS
7 LOCATED FOR AN ACCOUNTING OF ALL CONTRIBUTIONS. FOR PURPOSES
8 OF THIS PARAGRAPH, THE TRUST SHALL BE DEEMED TO BE LOCATED IN
9 THE COUNTY WHERE THE PRINCIPAL PLACE OF BUSINESS OF THE
10 CHARITABLE ORGANIZATION IS LOCATED. IF A CHARITABLE
11 ORGANIZATION HAS ITS PRINCIPAL PLACE OF BUSINESS OUTSIDE THIS
12 COMMONWEALTH, ALL OF THE FOLLOWING SHALL APPLY:
13 (I) IF AN AFFILIATE IS SOLICITING CONTRIBUTIONS
14 WITHIN THIS COMMONWEALTH, THE TRUST SHALL BE DEEMED TO BE
15 LOCATED IN THE COUNTY WHERE THE PRINCIPAL PLACE OF
16 BUSINESS OF THE AFFILIATE IS LOCATED.
17 (II) IF A PERSON IS SOLICITING CONTRIBUTIONS WITHIN
18 THIS COMMONWEALTH, THE TRUST SHALL BE DEEMED TO BE
19 LOCATED IN THE COUNTY WHERE THE PRINCIPAL PLACE OF
20 BUSINESS OR THE RESIDENCE OF THE PERSON IS LOCATED.
21 (III) IF THERE IS NO PLACE OF BUSINESS OR RESIDENCE
22 WITHIN THIS COMMONWEALTH, THE TRUST SHALL BE DEEMED TO BE
23 LOCATED IN THE COUNTY OF DAUPHIN.
24 (2) ORGANIZATIONS WHICH ONLY SOLICIT WITHIN THE
25 MEMBERSHIP OF THE ORGANIZATION BY THE MEMBERS OF THE
26 ORGANIZATION; PROVIDED THAT THE TERM "MEMBERSHIP" SHALL NOT
27 INCLUDE THOSE PERSONS WHO ARE GRANTED A MEMBERSHIP SOLELY
28 UPON MAKING A CONTRIBUTION AS THE RESULT OF SOLICITATION. FOR
29 THE PURPOSE OF THIS PARAGRAPH, "MEMBER" MEANS A PERSON HAVING
30 MEMBERSHIP IN A NONPROFIT CORPORATION, OR OTHER ORGANIZATION,
19890H0365B4286 - 26 -
1 IN ACCORDANCE WITH THE PROVISIONS OF ITS ARTICLES OF
2 INCORPORATION, BYLAWS OR OTHER INSTRUMENTS CREATING ITS FORM
3 AND ORGANIZATION AND HAVING BONA FIDE RIGHTS AND PRIVILEGES
4 IN THE ORGANIZATION SUCH AS THE RIGHT TO VOTE, TO ELECT
5 OFFICERS AND DIRECTORS, TO HOLD OFFICE OR POSITION AS
6 ORDINARILY CONFERRED ON MEMBERS OF SUCH ORGANIZATIONS.
7 (3) CHARITABLE ORGANIZATIONS WHOSE FUNDRAISING
8 ACTIVITIES ARE CARRIED ON BY VOLUNTEERS, MEMBERS, OFFICERS OR
9 PERMANENT EMPLOYEES AND WHICH DO NOT RECEIVE CONTRIBUTIONS IN
10 EXCESS OF $25,000 DURING A FISCAL YEAR, IF NO PART OF THEIR
11 ASSETS OR INCOME INURES TO THE BENEFIT OF OR IS PAID TO ANY
12 OFFICER OR MEMBER, PROFESSIONAL FUNDRAISING COUNSEL,
13 PROFESSIONAL SOLICITOR OR COMMERCIAL CO-VENTURER. CHARITABLE
14 ORGANIZATIONS WHICH DO NOT INTEND TO SOLICIT AND RECEIVE IN
15 EXCESS OF $25,000, BUT DO RECEIVE CONTRIBUTIONS IN EXCESS OF
16 THAT AMOUNT SHALL FILE THE FINANCIAL REPORT REQUIRED IN
17 SECTION 5 WITHIN 30 DAYS AFTER CONTRIBUTIONS ARE RECEIVED IN
18 EXCESS OF THAT AMOUNT.
19 (4) ORGANIZATIONS DESCRIBED IN SECTION 6(A)(3) WHICH DO <--
20 NOT RECEIVE CONTRIBUTIONS IN EXCESS OF $100,000 DURING A
21 FISCAL YEAR IF NO PART OF THEIR ASSETS OR INCOME INURES TO
22 THE BENEFIT OF OR IS PAID TO A PROFESSIONAL SOLICITOR.
23 (B) CONTENTS OF STATEMENT.--THE SHORT FORM ANNUAL
24 REGISTRATION STATEMENTS REQUIRED TO BE FILED UNDER THIS SECTION
25 SHALL INCLUDE ANY INFORMATION REQUIRED BY THE REGULATIONS OF THE
26 DEPARTMENT.
27 SECTION 8. REGISTRATION OF PROFESSIONAL FUNDRAISING COUNSEL,
28 AND CONTRACTS.
29 (A) REGISTRATION AND APPROVAL REQUIRED.--NO PERSON SHALL ACT
30 AS A PROFESSIONAL FUNDRAISING COUNSEL BEFORE OBTAINING
19890H0365B4286 - 27 -
1 DEPARTMENT APPROVAL OF A REGISTRATION STATEMENT PURSUANT TO
2 SUBSECTION (C) OR AFTER THE EXPIRATION, SUSPENSION OR REVOCATION
3 OF SUCH REGISTRATION. A REGISTRATION APPLICATION SHALL BE SIGNED
4 AND SWORN TO BY THE PRINCIPAL OFFICER OF THE PROFESSIONAL
5 FUNDRAISING COUNSEL AND SHALL CONTAIN ALL OF THE FOLLOWING
6 INFORMATION:
7 (1) THE ADDRESS OF THE PRINCIPAL PLACE OF BUSINESS OF
8 THE APPLICANT AND ANY PENNSYLVANIA ADDRESSES, IF THE
9 PRINCIPAL PLACE OF BUSINESS IS LOCATED OUTSIDE THIS
10 COMMONWEALTH.
11 (2) THE FORM OF THE APPLICANT'S BUSINESS.
12 (3) THE NAMES AND RESIDENCE ADDRESSES OF ALL PRINCIPALS
13 OF THE APPLICANT, INCLUDING ALL OFFICERS, DIRECTORS AND
14 OWNERS.
15 (4) WHETHER ANY OF THE OWNERS, DIRECTORS, OFFICERS OR
16 EMPLOYEES OF THE APPLICANT ARE RELATED BY BLOOD, MARRIAGE OR
17 ADOPTION TO ANY OTHER DIRECTORS, OFFICERS, OWNERS OR
18 EMPLOYEES OF THE APPLICANT, ANY OFFICER, DIRECTOR, TRUSTEE OR
19 EMPLOYEE OF ANY CHARITABLE ORGANIZATION UNDER CONTRACT TO THE
20 APPLICANT OR ANY SUPPLIER OR VENDOR PROVIDING GOODS OR
21 SERVICES TO ANY CHARITABLE ORGANIZATION UNDER CONTRACT TO THE
22 APPLICANT.
23 (5) THE NAME OF ANY PERSON WHO IS IN CHARGE OF ANY
24 SOLICITATION ACTIVITY.
25 (B) REGISTRATION FEE.--THE APPLICATION FOR REGISTRATION
26 SHALL BE ACCOMPANIED BY A FEE OF $100. A PROFESSIONAL
27 FUNDRAISING COUNSEL WHICH IS A PARTNERSHIP OR CORPORATION MAY
28 REGISTER FOR AND PAY A SINGLE FEE ON BEHALF OF ALL OF ITS
29 PARTNERS, MEMBERS, OFFICERS, DIRECTORS, AGENTS AND EMPLOYEES.
30 EACH REGISTRATION SHALL BE VALID FOR ONE YEAR AND MAY BE RENEWED
19890H0365B4286 - 28 -
1 FOR ADDITIONAL ONE-YEAR PERIODS UPON APPLICATION TO THE
2 DEPARTMENT AND PAYMENT OF THE REGISTRATION FEE.
3 (C) DEPARTMENT REVIEW.--THE DEPARTMENT SHALL EXAMINE EACH
4 REGISTRATION STATEMENT AND SUPPORTING DOCUMENTS FILED BY A
5 PROFESSIONAL FUNDRAISING COUNSEL AND SHALL DETERMINE WHETHER THE
6 REGISTRATION REQUIREMENTS ARE SATISFIED. IF THE DEPARTMENT
7 DETERMINES THAT THE REGISTRATION REQUIREMENTS ARE NOT SATISFIED,
8 THE DEPARTMENT MUST NOTIFY THE PROFESSIONAL FUNDRAISING COUNSEL
9 WITHIN TEN WORKING DAYS OF ITS RECEIPT OF ITS REGISTRATION
10 STATEMENT; OTHERWISE THE REGISTRATION STATEMENT IS DEEMED TO BE
11 APPROVED. WITHIN SEVEN DAYS AFTER RECEIPT OF A NOTIFICATION THAT
12 THE REGISTRATION REQUIREMENTS ARE NOT SATISFIED, THE
13 PROFESSIONAL FUNDRAISING COUNSEL MAY REQUEST A HEARING. THE
14 HEARING MUST BE HELD WITHIN SEVEN DAYS OF RECEIPT OF THE REQUEST
15 AND A DETERMINATION MUST BE RENDERED WITHIN THREE WORKING DAYS
16 OF THE HEARING.
17 (D) WRITTEN CONTRACT.--THERE SHALL BE A WRITTEN CONTRACT
18 BETWEEN A CHARITABLE ORGANIZATION AND A PROFESSIONAL FUNDRAISING
19 COUNSEL WHICH SHALL BE FILED BY THE PROFESSIONAL FUNDRAISING
20 COUNSEL WITH THE DEPARTMENT AT LEAST TEN WORKING DAYS PRIOR TO
21 THE PERFORMANCE BY THE PROFESSIONAL FUNDRAISING COUNSEL OF ANY
22 SERVICE. NO SOLICITATION PURSUANT TO THE CONTRACT SHALL BEGIN
23 BEFORE THE DEPARTMENT HAS APPROVED THE CONTRACT PURSUANT TO
24 SUBSECTION (E). THE CONTRACT MUST BE SIGNED BY TWO AUTHORIZED
25 OFFICIALS OF THE CHARITABLE ORGANIZATION, ONE OF WHOM MUST BE A
26 MEMBER OF THE ORGANIZATION'S GOVERNING BODY, AND THE AUTHORIZED
27 CONTRACTING OFFICER FOR THE PROFESSIONAL FUNDRAISING COUNSEL.
28 THE CONTRACT SHALL CONTAIN ALL OF THE FOLLOWING PROVISIONS:
29 (1) A STATEMENT OF THE CHARITABLE PURPOSE FOR WHICH THE
30 SOLICITATION CAMPAIGN IS BEING CONDUCTED.
19890H0365B4286 - 29 -
1 (2) A STATEMENT OF THE RESPECTIVE OBLIGATIONS OF THE
2 PROFESSIONAL FUNDRAISING COUNSEL AND THE CHARITABLE
3 ORGANIZATION.
4 (3) A CLEAR STATEMENT OF THE FEES WHICH WILL BE PAID TO
5 THE PROFESSIONAL FUNDRAISING COUNSEL.
6 (4) THE EFFECTIVE AND TERMINATION DATES.
7 (5) A STATEMENT THAT THE PROFESSIONAL FUNDRAISING
8 COUNSEL WILL NOT AT ANY TIME HAVE CUSTODY OF CONTRIBUTIONS.
9 (6) ANY OTHER INFORMATION REQUIRED BY THE REGULATIONS OF
10 THE DEPARTMENT.
11 (E) DEPARTMENT REVIEW.--THE DEPARTMENT SHALL EXAMINE EACH
12 CONTRACT FILED BY A PROFESSIONAL FUNDRAISING COUNSEL AND SHALL
13 DETERMINE WHETHER THE CONTRACT CONTAINS THE REQUIRED
14 INFORMATION. IF THE DEPARTMENT DETERMINES THAT THE REQUIREMENTS
15 ARE NOT SATISFIED, THE DEPARTMENT MUST NOTIFY THE PROFESSIONAL
16 FUNDRAISING COUNSEL WITHIN TEN WORKING DAYS OF ITS RECEIPT OF
17 THE CONTRACT; OTHERWISE THE CONTRACT IS DEEMED TO BE APPROVED.
18 WITHIN SEVEN DAYS AFTER RECEIPT OF A NOTIFICATION THAT THE
19 REQUIREMENTS ARE NOT SATISFIED, THE PROFESSIONAL FUNDRAISING
20 COUNSEL MAY REQUEST A HEARING. THE HEARING MUST BE HELD WITHIN
21 SEVEN DAYS OF RECEIPT OF THE REQUEST AND A DETERMINATION MUST BE
22 RENDERED WITHIN THREE WORKING DAYS OF THE HEARING.
23 SECTION 9. REGISTRATION OF PROFESSIONAL SOLICITORS; CONTRACT
24 AND DISCLOSURE REQUIREMENTS; BONDS; RECORDS;
25 BOOKS.
26 (A) REGISTRATION AND APPROVAL REQUIRED.--NO PERSON SHALL ACT
27 AS A PROFESSIONAL SOLICITOR BEFORE OBTAINING DEPARTMENT APPROVAL
28 OF A REGISTRATION STATEMENT PURSUANT TO SUBSECTION (D) OR AFTER
29 THE EXPIRATION, SUSPENSION OR REVOCATION OF SUCH REGISTRATION. A
30 REGISTRATION APPLICATION SHALL BE SIGNED AND SWORN TO BY THE
19890H0365B4286 - 30 -
1 PRINCIPAL OFFICER OF THE PROFESSIONAL SOLICITOR, AND SHALL
2 CONTAIN ALL OF THE FOLLOWING INFORMATION:
3 (1) THE ADDRESS OF THE PRINCIPAL PLACE OF BUSINESS OF
4 THE APPLICANT AND ANY PENNSYLVANIA ADDRESSES, IF THE
5 PRINCIPAL PLACE OF BUSINESS IS LOCATED OUTSIDE THIS
6 COMMONWEALTH.
7 (2) THE FORM OF THE APPLICANT'S BUSINESS.
8 (3) THE NAMES AND RESIDENCE ADDRESSES OF ALL PRINCIPALS
9 OF THE APPLICANT, INCLUDING ALL OFFICERS, DIRECTORS AND
10 OWNERS.
11 (4) WHETHER ANY OF THE OWNERS, DIRECTORS, OFFICERS OR
12 EMPLOYEES OF THE APPLICANT ARE RELATED BY BLOOD, MARRIAGE OR
13 ADOPTION TO ANY OTHER DIRECTORS, OFFICERS, OWNERS OR
14 EMPLOYEES OF THE APPLICANT, ANY OFFICER, DIRECTOR, TRUSTEE OR
15 EMPLOYEE OF ANY CHARITABLE ORGANIZATION UNDER CONTRACT TO THE
16 APPLICANT OR ANY SUPPLIER OR VENDOR PROVIDING GOODS OR
17 SERVICES TO ANY CHARITABLE ORGANIZATION UNDER CONTRACT TO THE
18 APPLICANT.
19 (5) THE NAME OF ALL PERSONS IN CHARGE OF ANY
20 SOLICITATION ACTIVITY.
21 (B) REGISTRATION FEE.--THE APPLICATION FOR REGISTRATION
22 SHALL BE ACCOMPANIED BY A FEE OF $100. A PROFESSIONAL SOLICITOR
23 WHICH IS A PARTNERSHIP OR CORPORATION MAY REGISTER FOR AND PAY A
24 SINGLE FEE ON BEHALF OF ALL OF ITS PARTNERS, MEMBERS, OFFICERS,
25 DIRECTORS, AGENTS AND EMPLOYEES. EACH REGISTRATION SHALL BE
26 VALID FOR ONE YEAR AND MAY BE RENEWED FOR ADDITIONAL ONE-YEAR
27 PERIODS UPON APPLICATION TO THE DEPARTMENT AND PAYMENT OF THE
28 REGISTRATION FEE.
29 (C) BOND.--A PROFESSIONAL SOLICITOR SHALL, AT THE TIME OF
30 MAKING APPLICATION FOR REGISTRATION AND RENEWAL OF REGISTRATION,
19890H0365B4286 - 31 -
1 FILE WITH AND HAVE APPROVED BY THE DEPARTMENT A BOND, IN WHICH
2 IT SHALL BE THE PRINCIPAL OBLIGOR IN THE SUM OF $25,000, OR A
3 GREATER AMOUNT AS PRESCRIBED BY THE REGULATIONS OF THE
4 DEPARTMENT AND WHICH SHALL HAVE ONE OR MORE SURETIES
5 SATISFACTORY TO THE DEPARTMENT WHOSE LIABILITY IN THE AGGREGATE
6 AS SUCH SURETIES WILL AT LEAST EQUAL THAT SUM AND MAINTAIN THE
7 BOND IN EFFECT AS LONG AS THE REGISTRATION IS IN EFFECT. THE
8 BOND SHALL RUN TO THE COMMONWEALTH FOR USE OF THE SECRETARY,
9 ATTORNEY GENERAL AND ANY PERSON WHO MAY HAVE A CAUSE OF ACTION
10 AGAINST THE OBLIGOR FOR ANY LOSSES RESULTING FROM MALFEASANCE,
11 NONFEASANCE OR MISFEASANCE IN THE CONDUCT OF SOLICITATION
12 ACTIVITIES. A PROFESSIONAL SOLICITOR WHICH IS A PARTNERSHIP OR
13 CORPORATION MAY FILE ONE $25,000 BOND OR AN AMOUNT SPECIFIED BY
14 REGULATION OF THE DEPARTMENT ON BEHALF OF ALL ITS PARTNERS,
15 MEMBERS, OFFICERS, DIRECTORS, AGENTS AND EMPLOYEES.
16 (D) DEPARTMENT REVIEW.--THE DEPARTMENT SHALL EXAMINE EACH
17 REGISTRATION STATEMENT AND SUPPORTING DOCUMENTS FILED BY A
18 PROFESSIONAL SOLICITOR AND SHALL DETERMINE WHETHER THE
19 REGISTRATION REQUIREMENTS ARE SATISFIED. IF THE DEPARTMENT
20 DETERMINES THAT REGISTRATION REQUIREMENTS ARE NOT SATISFIED, THE
21 DEPARTMENT MUST NOTIFY THE PROFESSIONAL SOLICITOR WITHIN TEN
22 WORKING DAYS OF ITS RECEIPT OF ITS REGISTRATION STATEMENT;
23 OTHERWISE THE REGISTRATION STATEMENT IS DEEMED TO BE APPROVED.
24 WITHIN SEVEN DAYS AFTER RECEIPT OF A NOTIFICATION THAT THE
25 REGULATION REQUIREMENTS ARE NOT SATISFIED, THE PROFESSIONAL
26 SOLICITOR MAY REQUEST A HEARING. THE HEARING MUST BE HELD WITHIN
27 SEVEN DAYS OF RECEIPT OF THE REQUEST AND A DETERMINATION MUST BE
28 RENDERED WITHIN THREE WORKING DAYS OF THE HEARING.
29 (E) CONTRACT FILING.--NO LESS THAN TEN WORKING DAYS PRIOR TO
30 THE COMMENCEMENT OF EACH SOLICITATION CAMPAIGN, A PROFESSIONAL
19890H0365B4286 - 32 -
1 SOLICITOR SHALL FILE WITH THE DEPARTMENT A COPY OF THE CONTRACT
2 DESCRIBED IN SUBSECTION (F) AND A WRITTEN SOLICITATION NOTICE.
3 NO SOLICITATION PURSUANT TO THE CONTRACT SHALL BEGIN BEFORE THE
4 DEPARTMENT HAS APPROVED THE CONTRACT PURSUANT TO SUBSECTION (G).
5 THE SOLICITATION NOTICE SHALL BE ACCOMPANIED BY A FEE OF $25,
6 SHALL BE SIGNED AND SWORN TO BY THE AUTHORIZED CONTRACTING
7 OFFICER FOR THE PROFESSIONAL SOLICITOR AND SHALL CONTAIN ALL OF
8 THE FOLLOWING INFORMATION:
9 (1) A DESCRIPTION OF THE SOLICITATION EVENT OR CAMPAIGN.
10 (2) EACH LOCATION AND TELEPHONE NUMBER FROM WHICH THE
11 SOLICITATION IS TO BE CONDUCTED.
12 (3) THE LEGAL NAME AND RESIDENT ADDRESS OF EACH PERSON
13 RESPONSIBLE FOR DIRECTING AND SUPERVISING THE CONDUCT OF THE
14 CAMPAIGN AND EACH PERSON WHO IS TO SOLICIT DURING SUCH
15 CAMPAIGN.
16 (4) A STATEMENT AS TO WHETHER THE PROFESSIONAL SOLICITOR
17 WILL AT ANY TIME HAVE CUSTODY OF CONTRIBUTIONS.
18 (5) THE ACCOUNT NUMBER AND LOCATION OF EACH BANK ACCOUNT
19 WHERE RECEIPTS FROM THE CAMPAIGN ARE TO BE DEPOSITED.
20 (6) FULL AND FAIR DESCRIPTION OF THE CHARITABLE PROGRAM
21 FOR WHICH THE SOLICITATION CAMPAIGN IS BEING CARRIED OUT.
22 (7) ANY OTHER INFORMATION REQUIRED BY THE REGULATIONS OF
23 THE DEPARTMENT.
24 (F) WRITTEN CONTRACT.--THERE SHALL BE A WRITTEN CONTRACT
25 BETWEEN A PROFESSIONAL SOLICITOR AND A CHARITABLE ORGANIZATION
26 FOR EACH SOLICITATION CAMPAIGN WHICH SHALL BE SIGNED BY TWO
27 AUTHORIZED OFFICIALS OF THE CHARITABLE ORGANIZATION, ONE OF WHOM
28 MUST BE A MEMBER OF THE ORGANIZATION'S GOVERNING BODY, AND THE
29 AUTHORIZED CONTRACTING OFFICER FOR THE PROFESSIONAL SOLICITOR
30 AND WHICH SHALL CONTAIN ALL OF THE FOLLOWING PROVISIONS:
19890H0365B4286 - 33 -
1 (1) A STATEMENT OF THE CHARITABLE PURPOSE FOR WHICH THE
2 SOLICITATION CAMPAIGN IS BEING CONDUCTED.
3 (2) A STATEMENT OF THE RESPECTIVE OBLIGATIONS OF THE
4 PROFESSIONAL SOLICITOR AND THE CHARITABLE ORGANIZATION.
5 (3) A STATEMENT OF THE GUARANTEED MINIMUM PERCENTAGE OF
6 THE GROSS RECEIPTS FROM CONTRIBUTIONS WHICH WILL BE REMITTED
7 TO THE CHARITABLE ORGANIZATION, IF ANY, OR, IF THE
8 SOLICITATION INVOLVES THE SALE OF GOODS, SERVICES OR TICKETS
9 TO A FUNDRAISING EVENT, THE PERCENTAGE OF THE PURCHASE PRICE
10 WHICH WILL BE REMITTED TO THE CHARITABLE ORGANIZATION, IF
11 ANY. ANY STATED PERCENTAGE SHALL EXCLUDE ANY AMOUNT WHICH THE
12 CHARITABLE ORGANIZATION IS TO PAY AS FUNDRAISING COSTS.
13 (4) A STATEMENT OF THE PERCENTAGE OF THE GROSS REVENUE
14 WHICH THE PROFESSIONAL SOLICITOR WILL BE COMPENSATED. IF THE
15 COMPENSATION OF THE PROFESSIONAL SOLICITOR IS NOT CONTINGENT
16 UPON THE NUMBER OF CONTRIBUTIONS OR THE AMOUNT OF REVENUE
17 RECEIVED, HIS COMPENSATION SHALL BE EXPRESSED AS A REASONABLE
18 ESTIMATE OF THE PERCENTAGE OF THE GROSS REVENUE, AND THE
19 CONTRACT SHALL CLEARLY DISCLOSE THE ASSUMPTIONS UPON WHICH
20 THE ESTIMATE IS BASED. THE STATED ASSUMPTIONS SHALL BE BASED
21 UPON ALL OF THE RELEVANT FACTS KNOWN TO THE PROFESSIONAL
22 SOLICITOR REGARDING THE SOLICITATION TO BE CONDUCTED BY THE
23 PROFESSIONAL SOLICITOR.
24 (5) THE EFFECTIVE AND TERMINATION DATES OF THE CONTRACT.
25 (6) ANY OTHER INFORMATION REQUIRED BY THE REGULATIONS OF
26 THE DEPARTMENT.
27 (G) DEPARTMENT REVIEW.--THE DEPARTMENT SHALL EXAMINE EACH
28 CONTRACT AND SOLICITATION NOTICE FILED BY A PROFESSIONAL
29 SOLICITOR AND SHALL DETERMINE WHETHER THE CONTRACT AND NOTICE
30 CONTAIN THE REQUIRED INFORMATION. IF THE DEPARTMENT DETERMINES
19890H0365B4286 - 34 -
1 THAT THE REQUIREMENTS ARE NOT SATISFIED, THE DEPARTMENT MUST
2 NOTIFY THE PROFESSIONAL SOLICITOR WITHIN TEN WORKING DAYS OF ITS
3 RECEIPT OF THE CONTRACT AND NOTICE; OTHERWISE THE CONTRACT AND
4 NOTICE ARE DEEMED TO BE APPROVED. WITHIN SEVEN DAYS AFTER
5 RECEIPT OF A NOTIFICATION THAT THE REQUIREMENTS ARE NOT
6 SATISFIED, THE PROFESSIONAL SOLICITOR MAY REQUEST A HEARING. THE
7 HEARING MUST BE HELD WITHIN SEVEN DAYS OF RECEIPT OF THE REQUEST
8 AND A DETERMINATION MUST BE RENDERED WITHIN THREE WORKING DAYS
9 OF THE HEARING.
10 (H) REQUIRED DISCLOSURES.--PRIOR TO ORALLY REQUESTING A
11 CONTRIBUTION OR CONTEMPORANEOUSLY WITH A WRITTEN REQUEST FOR A
12 CONTRIBUTION, A PROFESSIONAL SOLICITOR SHALL BE RESPONSIBLE FOR
13 CLEARLY AND CONSPICUOUSLY DISCLOSING:
14 (1) THE NAME OF THE PROFESSIONAL SOLICITOR AS ON FILE
15 WITH THE DEPARTMENT AND THAT THE SOLICITATION IS BEING
16 CONDUCTED BY A PROFESSIONAL SOLICITOR WHO IS BEING PAID FOR
17 HIS SERVICES.
18 (2) IF THE INDIVIDUAL ACTING ON BEHALF OF THE
19 PROFESSIONAL SOLICITOR IDENTIFIES HIMSELF BY NAME, THE
20 INDIVIDUAL'S LEGAL NAME.
21 (3) THE NAME OF THE CHARITABLE ORGANIZATION AND A
22 DESCRIPTION OF HOW THE CONTRIBUTIONS RAISED BY THE
23 SOLICITATION WILL BE UTILIZED FOR A CHARITABLE PURPOSE, OR IF
24 THERE IS NO CHARITABLE ORGANIZATION, A DESCRIPTION AS TO HOW
25 THE CONTRIBUTIONS RAISED BY THE SOLICITATION WILL BE UTILIZED
26 FOR A CHARITABLE PURPOSE.
27 (I) RESPONSES.--ANY RESPONSES GIVEN BY OR ON BEHALF OF A
28 PROFESSIONAL SOLICITOR TO AN ORAL OR WRITTEN REQUEST FOR
29 INFORMATION SHALL BE TRUTHFUL.
30 (J) INFORMATION ON DISCLOSURE.--IN THE CASE OF A
19890H0365B4286 - 35 -
1 SOLICITATION CAMPAIGN CONDUCTED ORALLY, WHETHER BY TELEPHONE OR
2 OTHERWISE, ANY WRITTEN CONFIRMATION OR RECEIPT OR REMINDER SENT
3 TO ANY PERSON WHO HAS CONTRIBUTED OR HAS PLEDGED TO CONTRIBUTE,
4 SHALL INCLUDE A CLEAR AND CONSPICUOUS DISCLOSURE OF THE
5 INFORMATION REQUIRED BY SUBSECTION (H).
6 (K) NOTICE.--IN ADDITION TO THE INFORMATION REQUIRED BY
7 SUBSECTION (J), ANY WRITTEN CONFIRMATION, RECEIPT OR REMINDER OF
8 A CONTRIBUTION MADE PURSUANT TO AN ORAL SOLICITATION AND ANY
9 WRITTEN SOLICITATION SHALL CONSPICUOUSLY STATE:
10 "A COPY OF THE OFFICIAL REGISTRATION AND FINANCIAL
11 INFORMATION MAY BE OBTAINED FROM THE PENNSYLVANIA
12 DEPARTMENT OF STATE BY CALLING TOLL FREE, WITHIN
13 PENNSYLVANIA, 1 (800) 000-0000. REGISTRATION DOES NOT
14 IMPLY ENDORSEMENT."
15 (L) FINANCIAL REPORTS.--WITHIN 90 DAYS AFTER A SOLICITATION
16 CAMPAIGN HAS BEEN COMPLETED, AND ON THE ANNIVERSARY OF THE
17 COMMENCEMENT OF A SOLICITATION CAMPAIGN LASTING MORE THAN ONE
18 YEAR, A PROFESSIONAL SOLICITOR SHALL FILE WITH THE DEPARTMENT A
19 FINANCIAL REPORT FOR THE CAMPAIGN, INCLUDING GROSS REVENUE AND
20 AN ITEMIZATION OF ALL EXPENSES INCURRED. THIS REPORT SHALL BE
21 SIGNED AND SWORN TO BY THE AUTHORIZED CONTRACTING AGENT FOR THE
22 PROFESSIONAL SOLICITOR AND TWO AUTHORIZED OFFICIALS OF THE
23 CHARITABLE ORGANIZATION.
24 (M) RETENTION OF RECORDS, ETC.--A PROFESSIONAL SOLICITOR
25 SHALL MAINTAIN DURING EACH SOLICITATION CAMPAIGN AND FOR NOT
26 LESS THAN THREE YEARS AFTER THE COMPLETION OF SUCH CAMPAIGN THE
27 FOLLOWING RECORDS, WHICH SHALL BE AVAILABLE FOR INSPECTION UPON
28 DEMAND BY THE DEPARTMENT OR THE OFFICE OF ATTORNEY GENERAL:
29 (1) THE DATE AND AMOUNT OF EACH CONTRIBUTION RECEIVED
30 AND THE NAME AND ADDRESS OF EACH CONTRIBUTOR.
19890H0365B4286 - 36 -
1 (2) THE NAME AND RESIDENCE OF EACH EMPLOYEE, AGENT OR
2 OTHER PERSON INVOLVED IN THE SOLICITATION.
3 (3) RECORDS OF ALL REVENUE RECEIVED AND EXPENSES
4 INCURRED IN THE COURSE OF THE SOLICITATION CAMPAIGN.
5 (4) THE LOCATION AND ACCOUNT NUMBER OF EACH BANK OR
6 OTHER FINANCIAL INSTITUTION ACCOUNT IN WHICH THE PROFESSIONAL
7 SOLICITOR HAS DEPOSITED REVENUE FROM THE SOLICITATION
8 CAMPAIGN.
9 (N) RECORDS FROM TICKET SALES.--IF THE PROFESSIONAL
10 SOLICITOR SELLS TICKETS TO AN EVENT AND REPRESENTS THAT TICKETS
11 WILL BE DONATED FOR USE BY ANOTHER, THE PROFESSIONAL SOLICITOR
12 SHALL MAINTAIN, FOR NOT LESS THAN THREE YEARS AFTER THE
13 COMPLETION OF SUCH EVENT, THE FOLLOWING RECORDS, WHICH SHALL BE
14 AVAILABLE FOR INSPECTION UPON DEMAND BY THE DEPARTMENT OR THE
15 OFFICE OF ATTORNEY GENERAL:
16 (1) THE NUMBER OF TICKETS PURCHASED AND DONATED BY EACH
17 CONTRIBUTOR.
18 (2) THE NAME AND ADDRESS OF ALL ORGANIZATIONS RECEIVING
19 DONATED TICKETS FOR USE BY OTHERS, INCLUDING THE NUMBER OF
20 TICKETS RECEIVED BY EACH ORGANIZATION.
21 (O) DEPOSIT OF CONTRIBUTIONS.--EACH CONTRIBUTION IN THE
22 CONTROL OR CUSTODY OF THE PROFESSIONAL SOLICITOR SHALL, IN ITS
23 ENTIRETY AND WITHIN FIVE DAYS OF ITS RECEIPT, BE DEPOSITED IN AN
24 ACCOUNT AT A BANK OR OTHER FEDERALLY INSURED FINANCIAL
25 INSTITUTION. THE ACCOUNT SHALL BE IN THE NAME OF THE CHARITABLE
26 ORGANIZATION WITH WHOM THE PROFESSIONAL SOLICITOR HAS CONTRACTED
27 AND THE CHARITABLE ORGANIZATION SHALL HAVE SOLE CONTROL OVER ALL
28 WITHDRAWALS FROM THE ACCOUNT.
29 (P) UPDATING OF INFORMATION.--ANY MATERIAL CHANGE IN ANY
30 INFORMATION FILED WITH THE DEPARTMENT PURSUANT TO THIS SECTION
19890H0365B4286 - 37 -
1 SHALL BE REPORTED IN WRITING BY THE PROFESSIONAL SOLICITOR TO
2 THE DEPARTMENT NOT MORE THAN SEVEN DAYS AFTER SUCH CHANGE
3 OCCURS.
4 (Q) RESTRICTIONS.--NO PERSON MAY ACT AS A PROFESSIONAL
5 SOLICITOR IF SUCH PERSON, ANY OFFICER OR DIRECTOR THEREOF, ANY
6 PERSON WITH A CONTROLLING INTEREST THEREIN, OR ANY PERSON THE
7 PROFESSIONAL SOLICITOR EMPLOYS, ENGAGES OR PROCURES TO SOLICIT
8 FOR COMPENSATION, HAS BEEN CONVICTED BY A COURT OF ANY STATE OR
9 THE UNITED STATES OF ANY FELONY, OR OF ANY MISDEMEANOR INVOLVING
10 DISHONESTY OR ARISING FROM THE CONDUCT OF A SOLICITATION FOR A
11 CHARITABLE ORGANIZATION OR PURPOSE.
12 SECTION 10. CONTRACTS VOIDABLE BY CHARITABLE ORGANIZATIONS.
13 (A) CONTRACTS WITH REGISTERED GROUPS.--NO PROFESSIONAL
14 FUNDRAISING COUNSEL OR PROFESSIONAL SOLICITOR SHALL CONTRACT
15 WITH A CHARITABLE ORGANIZATION UNLESS SUCH PROFESSIONAL
16 FUNDRAISING COUNSEL OR PROFESSIONAL SOLICITOR IS REGISTERED WITH
17 THE DEPARTMENT. A CONTRACT WITH AN UNREGISTERED PROFESSIONAL
18 FUNDRAISING COUNSEL OR PROFESSIONAL SOLICITOR SHALL BE VOIDABLE
19 AT THE OPTION OF THE CHARITABLE ORGANIZATION.
20 (B) CANCELLATION OF CONTRACT.--WHENEVER A CHARITABLE
21 ORGANIZATION CONTRACTS WITH A PROFESSIONAL FUNDRAISING COUNSEL
22 OR PROFESSIONAL SOLICITOR, THE CHARITABLE ORGANIZATION SHALL
23 HAVE THE RIGHT TO CANCEL THE CONTRACT WITHOUT COST, PENALTY OR
24 LIABILITY FOR A PERIOD OF TEN DAYS FOLLOWING THE DATE ON WHICH
25 THAT CONTRACT IS EXECUTED. ANY PROVISION IN THE CONTRACT THAT IS
26 INTENDED TO WAIVE THIS RIGHT OF CANCELLATION SHALL BE VOID AND
27 UNENFORCEABLE.
28 (C) MANNER OF CANCELLATION.--A CHARITABLE ORGANIZATION MAY
29 CANCEL A CONTRACT PURSUANT TO SUBSECTION (B) BY A WRITTEN NOTICE
30 OF CANCELLATION. IF MAILED, CANCELLATION SHALL BE DEEMED
19890H0365B4286 - 38 -
1 EFFECTIVE WHEN DEPOSITED WITH THE UNITED STATES POSTAL SERVICE,
2 PROPERLY ADDRESSED AND POSTAGE PREPAID. THE NOTICE SHALL BE
3 SUFFICIENT IF IT INDICATES THAT THE CHARITABLE ORGANIZATION DOES
4 NOT INTEND TO BE BOUND BY THE CONTRACT.
5 (D) CANCELLATION NOTICE TO DEPARTMENT.--WHENEVER A
6 CHARITABLE ORGANIZATION CANCELS A CONTRACT PURSUANT TO THE
7 PROVISIONS OF THIS SECTION, IT SHALL MAIL A DUPLICATE COPY OF
8 THE NOTICE OF CANCELLATION TO THE DEPARTMENT.
9 (E) STATUS OF FUNDS AFTER CANCELLATION.--ANY FUNDS COLLECTED
10 AFTER A CONTRACT HAS BEEN CANCELED SHALL BE DEEMED TO BE HELD IN
11 TRUST FOR THE BENEFIT OF THE CHARITABLE ORGANIZATION WITHOUT
12 DEDUCTION FOR COST OR EXPENSES OF ANY NATURE. A CHARITABLE
13 ORGANIZATION SHALL BE ENTITLED TO RECOVER ALL FUNDS COLLECTED
14 AFTER THE DATE OF CANCELLATION.
15 SECTION 11. INFORMATION FILED TO BECOME PUBLIC RECORDS.
16 EXCEPT AS OTHERWISE PROVIDED IN SECTION 12, REGISTRATION
17 STATEMENTS AND APPLICATIONS, REPORTS, NOTICES, CONTRACTS OR
18 AGREEMENTS BETWEEN CHARITABLE ORGANIZATIONS AND PROFESSIONAL
19 FUNDRAISING COUNSEL, PROFESSIONAL SOLICITORS AND COMMERCIAL CO-
20 VENTURERS, AND ALL OTHER DOCUMENTS AND INFORMATION REQUIRED TO
21 BE FILED UNDER THIS ACT WITH THE DEPARTMENT SHALL BECOME PUBLIC
22 RECORDS IN THE OFFICE OF THE BUREAU AND SHALL BE OPEN TO THE
23 GENERAL PUBLIC AT SUCH TIME AND UNDER SUCH CONDITIONS AS THE
24 DEPARTMENT MAY PRESCRIBE.
25 SECTION 12. RECORDS TO BE KEPT BY CHARITABLE ORGANIZATIONS,
26 PROFESSIONAL FUNDRAISING COUNSELS AND
27 PROFESSIONAL SOLICITORS; INSPECTION; RETENTION.
28 EVERY CHARITABLE ORGANIZATION, PROFESSIONAL FUNDRAISING
29 COUNSEL, AND PROFESSIONAL SOLICITOR SUBJECT TO THE PROVISIONS OF
30 THIS ACT SHALL, IN ACCORDANCE WITH THE RULES AND REGULATIONS
19890H0365B4286 - 39 -
1 PRESCRIBED BY THE DEPARTMENT, KEEP TRUE FISCAL RECORDS AS TO ITS
2 ACTIVITIES IN THIS COMMONWEALTH AS MAY BE COVERED UNDER THIS
3 ACT, IN SUCH FORM AS WILL ENABLE THEM ACCURATELY TO PROVIDE THE
4 INFORMATION REQUIRED UNDER THIS ACT. SUCH RECORDS SHALL BE MADE
5 AVAILABLE FOR INSPECTION UPON DEMAND BY THE DEPARTMENT OR THE
6 OFFICE OF ATTORNEY GENERAL. HOWEVER, NAMES, ADDRESSES AND
7 IDENTITIES OF CONTRIBUTORS AND AMOUNTS CONTRIBUTED BY THEM SHALL
8 NOT BE CONSIDERED A MATTER OF PUBLIC RECORD AND, THEREFORE,
9 SHALL NOT GENERALLY BE MADE AVAILABLE FOR PUBLIC INSPECTION,
10 SHALL NOT BE USED FOR A PURPOSE INCONSISTENT WITH THIS ACT, AND
11 SHALL BE REMOVED FROM THE RECORDS IN THE CUSTODY OF THE
12 DEPARTMENT AT SUCH TIME THAT SUCH INFORMATION IS NO LONGER
13 NECESSARY FOR THE ENFORCEMENT OF THIS ACT. SUCH RECORDS SHALL BE
14 MAINTAINED FOR A PERIOD OF AT LEAST THREE YEARS AFTER THE END OF
15 THE PERIOD OF REGISTRATION TO WHICH THEY RELATE.
16 SECTION 13. LIMITATION ON ACTIVITIES OF CHARITABLE
17 ORGANIZATIONS; DISCLOSURE REQUIREMENTS.
18 (A) SOLICITATION LIMITATION.--A CHARITABLE ORGANIZATION MAY
19 ONLY SOLICIT CONTRIBUTIONS FOR THE CHARITABLE PURPOSE EXPRESSED
20 IN SOLICITATION FOR CONTRIBUTIONS OR THE REGISTRATION STATEMENT
21 OF THE CHARITABLE ORGANIZATION AND MAY ONLY APPLY CONTRIBUTIONS
22 IN A MANNER SUBSTANTIALLY CONSISTENT WITH THAT PURPOSE.
23 (B) SOLICITATION DISCLOSURES.--A CHARITABLE ORGANIZATION
24 SOLICITING IN THIS COMMONWEALTH SHALL INCLUDE ALL OF THE
25 FOLLOWING DISCLOSURES AT THE POINT OF SOLICITATION:
26 (1) ITS IDENTITY AND LOCATION AND, IF DIFFERENT, THE
27 NAME AND ADDRESS OF THE CHARITABLE ORGANIZATION ON WHOSE
28 BEHALF THE SOLICITATION IS BEING CONDUCTED.
29 (2) IF REQUESTED, THE NAME, AND ADDRESS OR TELEPHONE
30 NUMBER OF A REPRESENTATIVE TO WHOM INQUIRIES COULD BE
19890H0365B4286 - 40 -
1 ADDRESSED.
2 (3) A FULL AND FAIR DESCRIPTION OF THE CHARITABLE
3 PURPOSE OR PURPOSES FOR WHICH THE SOLICITATION IS BEING MADE,
4 AND A SOURCE FROM WHICH WRITTEN INFORMATION IS AVAILABLE.
5 (4) IF REQUESTED, THE SOURCE FROM WHICH A FINANCIAL
6 STATEMENT MAY BE OBTAINED. SUCH FINANCIAL STATEMENT SHALL BE
7 CONSISTENT WITH THE ANNUAL FINANCIAL REPORT REQUESTED UNDER
8 SECTION 5 AND SHALL DISCLOSE ASSETS, LIABILITIES, FUND
9 BALANCES, REVENUE AND EXPENSES FOR THE PRECEDING FISCAL YEAR.
10 EXPENSES SHALL BE SEPARATED INTO PROGRAM SERVICES,
11 ADMINISTRATIVE COSTS AND FUNDRAISING COSTS.
12 (C) NOTICE ON PRINTED SOLICITATION.--ON EVERY PRINTED
13 SOLICITATION OR WRITTEN CONFIRMATION, RECEIPT, OR REMINDER OF A
14 CONTRIBUTION, THE FOLLOWING STATEMENT MUST BE CONSPICUOUSLY
15 PRINTED:
16 "A COPY OF THE OFFICIAL REGISTRATION AND FINANCIAL
17 INFORMATION MAY BE OBTAINED FROM THE PENNSYLVANIA
18 DEPARTMENT OF STATE BY CALLING TOLL FREE, WITHIN
19 PENNSYLVANIA, 1 (800) 000-0000. REGISTRATION DOES NOT
20 IMPLY ENDORSEMENT."
21 (D) MISREPRESENTATION.--A CHARITABLE ORGANIZATION MAY NOT
22 MISREPRESENT ITS PURPOSE OR NATURE, OR THE PURPOSE OR
23 BENEFICIARY OF A SOLICITATION. A MISREPRESENTATION MAY BE
24 ACCOMPLISHED BY WORDS OR CONDUCT OR FAILURE TO DISCLOSE A
25 MATERIAL FACT.
26 (E) CONTROL OVER FUNDRAISING ACTIVITIES.--A CHARITABLE
27 ORGANIZATION MUST ESTABLISH AND EXERCISE CONTROL OVER
28 FUNDRAISING ACTIVITIES CONDUCTED FOR ITS BENEFIT, INCLUDING
29 APPROVAL OF ALL WRITTEN CONTRACTS AND AGREEMENTS, AND MUST
30 ASSURE THAT FUNDRAISING ACTIVITIES ARE CONDUCTED WITHOUT
19890H0365B4286 - 41 -
1 COERCION.
2 (F) RESTRICTIONS ON CERTAIN CONTRACTS.--A CHARITABLE
3 ORGANIZATION SHALL NOT ENTER INTO ANY CONTRACT OR AGREEMENT WITH
4 OR EMPLOY ANY PROFESSIONAL FUNDRAISING COUNSEL OR PROFESSIONAL
5 SOLICITOR UNLESS THAT PROFESSIONAL FUNDRAISING COUNSEL OR
6 PROFESSIONAL SOLICITOR IS REGISTERED WITH THE DEPARTMENT.
7 (G) REGISTRATION WITH DEPARTMENT REQUIRED.--A CHARITABLE
8 ORGANIZATION SHALL NOT ENTER INTO ANY CONTRACT OR AGREEMENT WITH
9 OR RAISE ANY FUNDS FOR ANY CHARITABLE ORGANIZATION REQUIRED TO
10 BE REGISTERED PURSUANT TO THIS ACT UNLESS SUCH CHARITABLE
11 ORGANIZATION IS REGISTERED WITH THE DEPARTMENT.
12 SECTION 14. RECIPROCAL AGREEMENTS.
13 THE SECRETARY MAY ENTER INTO RECIPROCAL AGREEMENTS WITH THE
14 APPROPRIATE AUTHORITY OF ANY OTHER STATE FOR THE PURPOSE OF
15 EXCHANGING INFORMATION WITH RESPECT TO CHARITABLE ORGANIZATIONS,
16 PROFESSIONAL FUNDRAISING COUNSEL AND PROFESSIONAL SOLICITORS.
17 PURSUANT TO SUCH AGREEMENTS, THE SECRETARY MAY ACCEPT
18 INFORMATION FILED BY A CHARITABLE ORGANIZATION, PROFESSIONAL
19 FUNDRAISING COUNSEL OR PROFESSIONAL SOLICITOR WITH THE
20 APPROPRIATE AUTHORITY OF ANOTHER STATE IN LIEU OF THE
21 INFORMATION REQUIRED TO BE FILED IN ACCORDANCE WITH THIS ACT, IF
22 SUCH INFORMATION IS SUBSTANTIALLY SIMILAR TO THE INFORMATION
23 REQUIRED UNDER THIS ACT. THE SECRETARY MAY ALSO GRANT EXEMPTIONS
24 FROM THE REQUIREMENTS FOR THE FILING OF ANNUAL REGISTRATION
25 STATEMENTS WITH THE DEPARTMENT TO CHARITABLE ORGANIZATIONS
26 ORGANIZED UNDER THE LAWS OF ANOTHER STATE HAVING THEIR PRINCIPAL
27 PLACE OF BUSINESS OUTSIDE THIS COMMONWEALTH WHOSE FUNDS ARE
28 DERIVED PRINCIPALLY FROM SOURCES OUTSIDE THIS COMMONWEALTH AND
29 WHICH HAVE BEEN EXEMPTED FROM THE FILING OF REGISTRATION
30 STATEMENTS BY THE STATUTE UNDER WHOSE LAWS THEY ARE ORGANIZED IF
19890H0365B4286 - 42 -
1 SUCH STATE HAS A STATUTE SIMILAR IN SUBSTANCE TO THE PROVISIONS
2 OF THIS ACT.
3 SECTION 15. PROHIBITED ACTS.
4 (A) GENERAL RULE.--REGARDLESS OF A PERSON'S INTENT OR THE
5 LACK OF INJURY, THE FOLLOWING ACTS AND PRACTICES ARE PROHIBITED
6 IN THE PLANNING, CONDUCT OR EXECUTION OF ANY SOLICITATION OR
7 CHARITABLE SALES PROMOTION:
8 (1) OPERATING IN VIOLATION OF, OR FAILING TO COMPLY
9 WITH, ANY OF THE REQUIREMENTS OF THIS ACT, REGULATIONS OF THE
10 DEPARTMENT OR AN ORDER OF THE SECRETARY, OR SOLICITING
11 CONTRIBUTIONS AFTER REGISTRATION WITH THE DEPARTMENT HAS
12 EXPIRED OR HAS BEEN SUSPENDED OR REVOKED OR SOLICITING
13 CONTRIBUTIONS PRIOR TO THE SOLICITATION NOTICE AND CONTRACT
14 HAVING BEEN APPROVED BY THE DEPARTMENT.
15 (2) UTILIZING ANY UNFAIR OR DECEPTIVE ACTS OR PRACTICES
16 OR ENGAGING IN ANY FRAUDULENT CONDUCT WHICH CREATES A
17 LIKELIHOOD OF CONFUSION OR OF MISUNDERSTANDING.
18 (3) UTILIZING ANY REPRESENTATION THAT IMPLIES THE
19 CONTRIBUTION IS FOR OR ON BEHALF OF A CHARITABLE
20 ORGANIZATION, OR UTILIZING ANY EMBLEM, DEVICE OR PRINTED
21 MATTER BELONGING TO OR ASSOCIATED WITH A CHARITABLE
22 ORGANIZATION WITHOUT FIRST BEING AUTHORIZED IN WRITING TO DO
23 SO BY THE CHARITABLE ORGANIZATION.
24 (4) UTILIZING A NAME, SYMBOL OR STATEMENT SO CLOSELY
25 RELATED OR SIMILAR TO THAT USED BY ANOTHER CHARITABLE
26 ORGANIZATION OR OTHER PERSON THAT THE USE THEREOF WOULD TEND
27 TO CONFUSE OR MISLEAD A SOLICITED PERSON.
28 (5) MISREPRESENTING OR MISLEADING ANYONE IN ANY MANNER
29 TO BELIEVE THAT THE PERSON ON WHOSE BEHALF A SOLICITATION OR
30 CHARITABLE SALES PROMOTION IS BEING CONDUCTED IS A CHARITABLE
19890H0365B4286 - 43 -
1 ORGANIZATION OR THAT THE PROCEEDS OF SUCH SOLICITATION OR
2 CHARITABLE SALES PROMOTION WILL BE USED FOR CHARITABLE
3 PURPOSES WHEN SUCH IS NOT THE FACT.
4 (6) MISREPRESENTING OR MISLEADING ANYONE IN ANY MANNER
5 TO BELIEVE THAT ANY OTHER PERSON SPONSORS, ENDORSES OR
6 APPROVES SUCH SOLICITATION OR CHARITABLE SALES PROMOTION WHEN
7 SUCH OTHER PERSON HAS NOT GIVEN CONSENT IN WRITING TO THE USE
8 OF HIS NAME FOR THESE PURPOSES.
9 (7) MISREPRESENTING OR MISLEADING ANYONE IN ANY MANNER
10 TO BELIEVE THAT GOODS OR SERVICES HAVE SPONSORSHIP, APPROVAL,
11 CHARACTERISTICS, INGREDIENTS, USES, BENEFITS OR QUALITIES
12 THAT THEY DO NOT HAVE OR THAT A PERSON HAS A SPONSORSHIP,
13 APPROVAL, STATUS, AFFILIATION OR CONNECTION THAT HE DOES NOT
14 HAVE.
15 (8) UTILIZING OR EXPLOITING THE FACT OF REGISTRATION SO
16 AS TO LEAD ANY PERSON TO BELIEVE THAT SUCH REGISTRATION IN
17 ANY MANNER CONSTITUTES AN ENDORSEMENT OR APPROVAL BY THE
18 COMMONWEALTH. THE USE OF THE FOLLOWING STATEMENT SHALL NOT BE
19 DEEMED A PROHIBITED EXPLOITATION:
20 "A COPY OF THE OFFICIAL REGISTRATION AND FINANCIAL
21 INFORMATION MAY BE OBTAINED FROM THE PENNSYLVANIA
22 DEPARTMENT OF STATE BY CALLING TOLL FREE, WITHIN
23 PENNSYLVANIA, 1 (800) 000-0000. REGISTRATION DOES NOT
24 IMPLY ENDORSEMENT."
25 (9) REPRESENTING DIRECTLY OR BY IMPLICATION THAT A
26 CHARITABLE ORGANIZATION WILL RECEIVE AN AMOUNT GREATER THAN
27 THE ACTUAL NET PROCEEDS REASONABLY ESTIMATED TO BE RETAINED
28 BY THE CHARITY FOR ITS USE.
29 (10) WITH RESPECT TO SOLICITATIONS BY OR ON BEHALF OF
30 LAW ENFORCEMENT PERSONNEL, FIREFIGHTERS, OR OTHER PERSONS WHO
19890H0365B4286 - 44 -
1 PROTECT THE PUBLIC SAFETY, ISSUING, OFFERING, GIVING,
2 DELIVERING OR DISTRIBUTING ANY HONORARY MEMBERSHIP CARDS,
3 COURTESY CARDS OR SIMILAR CARDS, OR ANY STICKERS, EMBLEMS,
4 PLATES OR OTHER SUCH ITEMS WHICH COULD BE USED FOR DISPLAY ON
5 A MOTOR VEHICLE.
6 (11) (I) SOLICITING FOR ADVERTISING TO APPEAR IN A FOR-
7 PROFIT PUBLICATION WHICH RELATES TO, PURPORTS TO RELATE
8 TO, OR WHICH COULD REASONABLY BE CONSTRUED TO RELATE TO
9 ANY CHARITABLE PURPOSE WITHOUT MAKING THE FOLLOWING
10 DISCLOSURES AT THE TIME OF SOLICITATION:
11 (A) THE PUBLICATION IS A FOR-PROFIT, COMMERCIAL
12 ENTERPRISE.
13 (B) TRUE NAME OF THE SOLICITOR AND THE FACT THAT
14 THE SOLICITOR IS A PROFESSIONAL SOLICITOR.
15 (C) THE PUBLICATION IS NOT DIRECTLY AFFILIATED
16 OR SPONSORED BY ANY CHARITABLE ORGANIZATION.
17 (II) WHERE A SALE OF ADVERTISING HAS BEEN MADE, THE
18 SOLICITOR, PRIOR TO ACCEPTING ANY MONEY FOR THE SALE,
19 SHALL PRESENT THE PURCHASER WITH THE SAME DISCLOSURES, IN
20 WRITTEN FORM AND IN CONSPICUOUS TYPE.
21 (12) REPRESENTING THAT ANY PART OF THE CONTRIBUTIONS
22 RECEIVED WILL BE GIVEN OR DONATED TO ANY OTHER CHARITABLE
23 ORGANIZATION UNLESS SUCH ORGANIZATION HAS CONSENTED TO THE
24 USE OF ITS NAME PRIOR TO THE SOLICITATION. THE WRITTEN
25 CONSENT SHALL BE SIGNED BY ANY TWO AUTHORIZED OFFICERS,
26 DIRECTORS OR TRUSTEES OF THE CHARITABLE ORGANIZATION.
27 (13) REPRESENTING THAT TICKETS TO EVENTS WILL BE DONATED
28 FOR USE BY ANOTHER, UNLESS ALL OF THE FOLLOWING REQUIREMENTS
29 HAVE BEEN MET:
30 (I) THE CHARITABLE ORGANIZATION OR PROFESSIONAL
19890H0365B4286 - 45 -
1 SOLICITOR SHALL HAVE COMMITMENTS, IN WRITING, FROM
2 CHARITABLE ORGANIZATIONS STATING THAT THEY WILL ACCEPT
3 DONATED TICKETS AND SPECIFYING THE NUMBER OF TICKETS THEY
4 ARE WILLING TO ACCEPT.
5 (II) THE CHARITABLE ORGANIZATION OR PROFESSIONAL
6 SOLICITOR SHALL NOT SOLICIT OR ACCEPT MORE CONTRIBUTIONS
7 OF DONATED TICKETS THAN THE LESSER OF:
8 (A) THE NUMBER OF TICKET COMMITMENTS IT HAS
9 RECEIVED FROM CHARITABLE ASSOCIATIONS; OR
10 (B) THE TOTAL ATTENDANCE CAPACITY OF THE SITE OF
11 THE EVENT.
12 (III) A TICKET COMMITMENT ALONE, AS DESCRIBED IN
13 THIS SUBSECTION, SHALL NOT CONSTITUTE WRITTEN CONSENT TO
14 USE THE ORGANIZATION'S NAME IN THE SOLICITATION CAMPAIGN.
15 (B) CRITERIA TO DETERMINE UNFAIRNESS.--IN DETERMINING
16 WHETHER OR NOT A PRACTICE IS UNFAIR, DECEPTIVE, FRAUDULENT OR
17 MISLEADING UNDER THIS SECTION, DEFINITIONS, STANDARDS OR
18 INTERPRETATIONS RELATING THERETO UNDER THE ACT OF DECEMBER 17,
19 1968 (P.L.1224, NO.387), KNOWN AS THE UNFAIR TRADE PRACTICES AND
20 CONSUMER PROTECTION LAW, SHALL APPLY.
21 SECTION 16. INVESTIGATION; SUBPOENAS; INJUNCTIONS; COURT
22 ORDERS.
23 (A) PERMISSIBLE INVESTIGATIONS.--THE ATTORNEY GENERAL, THE
24 SECRETARY OR THE DISTRICT ATTORNEY MAY MAKE OR CAUSE TO BE MADE
25 AN INVESTIGATION OF ANY PERSON AS DEEMED NECESSARY. IN
26 CONDUCTING SUCH INVESTIGATION, HE MAY:
27 (1) REQUIRE OR PERMIT ANY PERSON TO FILE A STATEMENT IN
28 WRITING, UNDER OATH OR OTHERWISE, AS TO ALL THE FACTS AND
29 CIRCUMSTANCES CONCERNING THE MATTER TO BE INVESTIGATED.
30 (2) ADMINISTER OATHS OR AFFIRMATIONS.
19890H0365B4286 - 46 -
1 (3) TAKE TESTIMONY UNDER OATH.
2 (4) REQUIRE THE ATTENDANCE AND TESTIMONY OF WITNESSES
3 AND THE PRODUCTION OF ANY BOOKS, ACCOUNTS, PAPERS, RECORDS,
4 DOCUMENTS, AUDITS AND FILES RELATING TO ANY SOLICITATION OR
5 ANY PRACTICE SUBJECT TO THIS ACT OR THE REGULATIONS OF THE
6 DEPARTMENT.
7 (5) ISSUE SUBPOENAS.
8 (6) CONDUCT PRIVATE OR PUBLIC HEARINGS.
9 (7) EXAMINE WITNESSES AND RECEIVE EVIDENCE DURING ANY
10 INVESTIGATION OR PUBLIC OR PRIVATE HEARINGS.
11 (B) NOTICE.--NOTICE OF THE TIME AND PLACE FOR THE
12 EXAMINATION OF DOCUMENTARY MATERIAL SHALL BE GIVEN BY THE
13 ATTORNEY GENERAL, THE SECRETARY OR THE DISTRICT ATTORNEY AT
14 LEAST TEN DAYS PRIOR TO THE DATE OF SUCH EXAMINATION OR TAKING
15 OF TESTIMONY.
16 (C) CONTENTS OF NOTICE.--EACH NOTICE SHALL:
17 (1) STATE THE TIME AND PLACE FOR THE TAKING OF TESTIMONY
18 OR THE EXAMINATION AND THE NAME AND ADDRESS OF THE PERSON TO
19 BE EXAMINED, IF KNOWN, AND IF THE NAME IS NOT KNOWN, A
20 GENERAL DESCRIPTION SUFFICIENT TO IDENTIFY HIM OR THE
21 PARTICULAR CLASS OR GROUP TO WHICH HE BELONGS.
22 (2) STATE THE STATUTE THEREOF, IF ANY, OF THE ALLEGED
23 VIOLATION WHICH IS UNDER INVESTIGATION AND STATE THE GENERAL
24 SUBJECT MATTER OF THE INVESTIGATION.
25 (3) DESCRIBE THE CLASS OR CLASSES OF DOCUMENTARY
26 MATERIAL TO BE PRODUCED THEREUNDER WITH REASONABLE
27 SPECIFICITY, SO AS FAIRLY TO INDICATE THE MATERIAL DEMANDED.
28 (4) PRESCRIBE A RETURN DATE WITHIN WHICH THE DOCUMENTARY
29 MATERIAL IS TO BE PRODUCED.
30 (5) IDENTIFY THE MEMBERS OF THE OFFICE OF ATTORNEY
19890H0365B4286 - 47 -
1 GENERAL'S STAFF, THE SECRETARY'S STAFF OR THE DISTRICT
2 ATTORNEY'S STAFF TO WHOM SUCH DOCUMENTARY MATERIAL IS TO BE
3 MADE AVAILABLE FOR INSPECTION AND COPYING.
4 (D) RESTRICTIONS ON NOTICES.--NO SUCH NOTICE SHALL CONTAIN
5 ANY REQUIREMENT WHICH WOULD BE UNREASONABLE OR IMPROPER IF
6 CONTAINED IN A SUBPOENA DUCES TECUM ISSUED BY A COURT OF THE
7 COMMONWEALTH.
8 (E) RESTRICTION ON MATERIALS.--
9 (1) EXCEPT AS PROVIDED IN PARAGRAPH (2), ANY DOCUMENTARY
10 MATERIAL OR OTHER INFORMATION PRODUCED BY ANY PERSON PURSUANT
11 TO THIS SECTION SHALL NOT, UNLESS OTHERWISE ORDERED BY ANY
12 COURT OF COMPETENT JURISDICTION FOR GOOD CAUSE SHOWN, BE
13 PRODUCED FOR INSPECTION OR COPYING BY OR BE DISCLOSED TO ANY
14 PERSON OTHER THAN THE AUTHORIZED REPRESENTATIVE OF THE
15 ATTORNEY GENERAL, THE SECRETARY OR THE DISTRICT ATTORNEY
16 WITHOUT THE CONSENT OF THE PERSON WHO PRODUCED SUCH MATERIAL.
17 (2) UNDER SUCH REASONABLE TERMS AND CONDITIONS THAT THE
18 ATTORNEY GENERAL, SECRETARY OR THE DISTRICT ATTORNEY SHALL
19 PRESCRIBE, DOCUMENTARY MATERIAL IN PARAGRAPH (1) SHALL BE
20 AVAILABLE FOR INSPECTION AND COPYING BY THE PERSON WHO
21 PRODUCED SUCH MATERIAL OR ANY DULY AUTHORIZED REPRESENTATIVE
22 OF SUCH PERSON. THE ATTORNEY GENERAL, THE SECRETARY OR THE
23 DISTRICT ATTORNEY OR HIS DULY AUTHORIZED REPRESENTATIVE MAY
24 USE SUCH DOCUMENTARY MATERIAL OR COPIES THEREOF AS HE
25 DETERMINES NECESSARY IN THE ENFORCEMENT OF THIS ACT,
26 INCLUDING PRESENTATION IN ANY SUBSEQUENT ADMINISTRATIVE OR
27 JUDICIAL PROCEEDING.
28 (F) COMPLIANCE.--ANY PERSON UPON WHOM A NOTICE IS SERVED
29 PURSUANT TO THIS SECTION SHALL COMPLY WITH THE TERMS THEREOF
30 UNLESS OTHERWISE PROVIDED BY AN ORDER OF COURT. ANY PERSON WHO
19890H0365B4286 - 48 -
1 FAILS TO APPEAR, OR WITH INTENT TO AVOID, EVADE, OR PREVENT
2 COMPLIANCE, IN WHOLE OR IN PART, WITH ANY CIVIL INVESTIGATION
3 UNDER THIS ACT, REMOVES FROM ANY PLACE, CONCEALS, WITHHOLDS, OR
4 DESTROYS, MUTILATES, ALTERS, OR BY ANY OTHER MEANS FALSIFIES ANY
5 DOCUMENTARY MATERIAL IN THE POSSESSION, CUSTODY OR CONTROL OF
6 ANY PERSON SUBJECT TO ANY NOTICE, OR KNOWINGLY CONCEALS ANY
7 RELEVANT INFORMATION, SHALL BE ASSESSED A CIVIL PENALTY OF NOT
8 MORE THAN $5,000. THE ATTORNEY GENERAL OR THE DISTRICT ATTORNEY
9 MAY PETITION FOR AN ORDER OF COURT FOR ENFORCEMENT OF THIS
10 SECTION. ADDITIONALLY, THE SECRETARY MAY TAKE APPROPRIATE ACTION
11 TO PETITION FOR AN ORDER OF COURT FOR THE ENFORCEMENT OF THIS
12 SECTION IN ACCORDANCE WITH THE ACT OF OCTOBER 15, 1980 (P.L.950,
13 NO.164), KNOWN AS THE COMMONWEALTH ATTORNEYS ACT. ANY
14 DISOBEDIENCE OF ANY FINAL ORDER ENTERED UNDER THIS SECTION BY
15 ANY COURT SHALL BE PUNISHED AS CONTEMPT THEREOF.
16 (G) SERVICE.--SERVICE OF A SUBPOENA MAY BE MADE IN ANY ONE
17 OF THE FOLLOWING WAYS:
18 (1) DELIVERING A DULY EXECUTED COPY THEREOF TO THE
19 PERSON TO BE SERVED OR TO A PARTNER OR TO ANY OFFICER OR
20 AGENT AUTHORIZED BY APPOINTMENT OR BY LAW TO RECEIVE SERVICE
21 OF PROCESS ON BEHALF OF SUCH PERSON.
22 (2) DELIVERING A DULY EXECUTED COPY THEREOF TO THE
23 PRINCIPAL PLACE OF BUSINESS IN THIS COMMONWEALTH OF THE
24 PERSON TO BE SERVED.
25 (3) MAILING BY REGISTERED OR CERTIFIED MAIL A DULY
26 EXECUTED COPY THEREOF ADDRESSED TO THE PERSON TO BE SERVED AT
27 HIS PRINCIPAL PLACE OF BUSINESS IN THIS COMMONWEALTH OR IF
28 SAID PERSON HAS NO PLACE OF BUSINESS IN THIS COMMONWEALTH, TO
29 THE LAST ADDRESS OF SUCH PERSON KNOWN TO THE SECRETARY.
30 (4) ANY CHARITABLE ORGANIZATION, FUNDRAISING COUNSEL, OR
19890H0365B4286 - 49 -
1 PROFESSIONAL SOLICITOR HAVING ITS PRINCIPAL PLACE OF BUSINESS
2 OTHER THAN WITHIN THIS COMMONWEALTH, OR ORGANIZED UNDER AND
3 BY VIRTUE OF THE LAWS OF A FOREIGN STATE, WHICH IS SUBJECT TO
4 THE PROVISIONS OF THIS ACT, SHALL BE DEEMED TO HAVE
5 IRREVOCABLY APPOINTED THE SECRETARY OF STATE AS ITS AGENT
6 UPON WHOM MAY BE SERVED ANY SUMMONS, SUBPOENA DUCES TECUM OR
7 OTHER PROCESS DIRECTED TO SUCH CHARITABLE ORGANIZATION,
8 FUNDRAISING COUNSEL, PROFESSIONAL SOLICITOR, OR ANY PARTNER,
9 PRINCIPAL OFFICER OR DIRECTOR OF ANY OF THEM, IN ANY ACTION
10 OR PROCEEDING BROUGHT UNDER THE PROVISIONS OF THIS ACT.
11 SERVICE OF SUCH PROCESS UPON THE SECRETARY OF STATE SHALL BE
12 MADE BY PERSONALLY DELIVERING TO AND LEAVING WITH HIM A COPY
13 THEREOF AT HIS OFFICE IN THE CITY OF HARRISBURG, PENNSYLVANIA
14 AND SUCH SERVICE SHALL BE SUFFICIENT SERVICE; PROVIDED NOTICE
15 OF SUCH SERVICE AND A COPY OF SUCH PROCESS SHALL BE FORTHWITH
16 SENT BY SAID SECRETARY TO SUCH CHARITABLE ORGANIZATION,
17 FUNDRAISING COUNSEL, PROFESSIONAL SOLICITOR, OR OTHER PERSON
18 TO WHOM IT IS DIRECTED BY REGISTERED MAIL, WITH RETURN
19 RECEIPT REQUESTED AT THE LAST ADDRESS KNOWN TO SAID
20 SECRETARY.
21 SECTION 17. ADMINISTRATIVE ENFORCEMENT AND PENALTIES.
22 (A) GENERAL RULE.--THE SECRETARY MAY REFUSE TO REGISTER OR
23 REVOKE OR SUSPEND THE REGISTRATION OF ANY CHARITABLE
24 ORGANIZATION, PROFESSIONAL FUNDRAISING COUNSEL OR PROFESSIONAL
25 SOLICITOR WHENEVER HE FINDS THAT A CHARITABLE ORGANIZATION,
26 PROFESSIONAL FUNDRAISING COUNSEL OR PROFESSIONAL SOLICITOR, OR
27 AN AGENT, SERVANT OR EMPLOYEE THEREOF:
28 (1) HAS VIOLATED OR IS OPERATING IN VIOLATION OF ANY OF
29 THE PROVISIONS OF THIS ACT, THE REGULATIONS OF THE
30 DEPARTMENT, OR AN ORDER ISSUED BY THE SECRETARY.
19890H0365B4286 - 50 -
1 (2) HAS REFUSED OR FAILED OR ANY OF ITS PRINCIPAL
2 OFFICERS HAS REFUSED OR FAILED, AFTER NOTICE, TO PRODUCE ANY
3 RECORDS OF SUCH ORGANIZATION OR TO DISCLOSE ANY INFORMATION
4 REQUIRED TO BE DISCLOSED UNDER THIS ACT OR THE REGULATIONS OF
5 THE DEPARTMENT.
6 (3) HAS MADE A MATERIAL FALSE STATEMENT IN AN
7 APPLICATION, STATEMENT OR REPORT REQUIRED TO BE FILED UNDER
8 THIS ACT.
9 (B) ADDITIONAL ACTIONS.--WHEN THE SECRETARY FINDS THAT THE
10 REGISTRATION OF ANY PERSON MAY BE REFUSED, SUSPENDED OR REVOKED
11 UNDER THE TERMS OF SUBSECTION (A), THE SECRETARY MAY:
12 (1) REVOKE A GRANT OF EXEMPTION TO ANY OF THE PROVISIONS
13 OF THIS ACT.
14 (2) ISSUE AN ORDER DIRECTING THAT THE PERSON CEASE AND
15 DESIST SPECIFIED FUNDRAISING ACTIVITIES.
16 (3) IMPOSE AN ADMINISTRATIVE FINE NOT TO EXCEED $1,000
17 FOR EACH ACT OR OMISSION WHICH CONSTITUTES A VIOLATION OF
18 THIS ACT AND AN ADDITIONAL PENALTY, NOT TO EXCEED $100 FOR
19 EACH DAY DURING WHICH SUCH VIOLATION CONTINUES. REGISTRATION
20 WILL BE AUTOMATICALLY SUSPENDED UPON FINAL AFFIRMATION OF AN
21 ADMINISTRATIVE FINE UNTIL THE FINE IS PAID OR UNTIL THE
22 NORMAL EXPIRATION DATE OF THE REGISTRATION. NO REGISTRATION
23 SHALL BE RENEWED UNTIL THE FINE IS PAID.
24 (4) PLACE THE REGISTRANT ON PROBATION FOR SUCH PERIOD OF
25 TIME AND SUBJECT TO SUCH CONDITIONS AS HE MAY DECIDE.
26 (C) ADMINISTRATIVE PROCEDURES.--ALL ACTIONS OF THE SECRETARY
27 SHALL BE TAKEN SUBJECT TO THE RIGHT OF NOTICE, HEARING AND
28 ADJUDICATION AND THE RIGHT OF APPEAL THEREFROM IN ACCORDANCE
29 WITH TITLE 2 OF THE PENNSYLVANIA CONSOLIDATED STATUTES (RELATING
30 TO ADMINISTRATIVE LAW AND PROCEDURE).
19890H0365B4286 - 51 -
1 SECTION 18. CRIMINAL PENALTIES.
2 (A) DECEIT IN FRAUD VIOLATION.--ANY PERSON WHO WILLFULLY AND
3 KNOWINGLY VIOLATES ANY PROVISIONS OF THIS ACT WITH INTENT TO
4 DECEIVE OR DEFRAUD ANY CHARITY OR INDIVIDUAL, COMMITS A
5 MISDEMEANOR OF THE FIRST DEGREE AND SHALL, UPON CONVICTION, BE
6 SENTENCED TO PAY A FINE NOT EXCEEDING $10,000 OR IMPRISONMENT
7 FOR NOT MORE THAN FIVE YEARS, OR BOTH.
8 (B) OTHER VIOLATIONS.--ANY OTHER VIOLATION OF THIS ACT SHALL
9 CONSTITUTE A MISDEMEANOR OF THE THIRD DEGREE PUNISHABLE, UPON
10 CONVICTION, BY A FINE NOT EXCEEDING $2,500 OR IMPRISONMENT FOR
11 NOT MORE THAN ONE YEAR, OR BOTH.
12 (C) LOCATION OF OFFENSE.--ANY OFFENSE COMMITTED UNDER THIS
13 ACT INVOLVING A SOLICITATION MAY BE DEEMED TO HAVE BEEN
14 COMMITTED AT EITHER THE PLACE AT WHICH THE SOLICITATION WAS
15 INITIATED, OR AT THE PLACE WHERE THE SOLICITATION WAS RECEIVED.
16 SECTION 19. CIVIL PENALTIES.
17 (A) GENERAL RULE.--WHENEVER THE ATTORNEY GENERAL OR ANY
18 DISTRICT ATTORNEY SHALL HAVE REASON TO BELIEVE, OR SHALL BE
19 ADVISED BY THE SECRETARY, THAT THE PERSON IS OPERATING IN
20 VIOLATION OF THE PROVISIONS OF THIS ACT, THE ATTORNEY GENERAL OR
21 DISTRICT ATTORNEY MAY BRING AN ACTION IN THE NAME OF THE
22 COMMONWEALTH AGAINST SUCH PERSON WHO HAS VIOLATED THIS ACT, TO
23 ENJOIN SUCH PERSON FROM CONTINUING SUCH VIOLATION AND FOR SUCH
24 OTHER RELIEF AS THE COURT DEEMS APPROPRIATE. IN ANY PROCEEDING
25 UNDER THIS SUBSECTION, THE COURT MAY MAKE APPROPRIATE ORDERS,
26 INCLUDING:
27 (1) THE APPOINTMENT OF A MASTER OR RECEIVER;
28 (2) THE SEQUESTRATION OF ASSETS;
29 (3) THE REIMBURSEMENT OF PERSONS FROM WHOM CONTRIBUTIONS
30 HAVE BEEN UNLAWFULLY SOLICITED;
19890H0365B4286 - 52 -
1 (4) THE DISTRIBUTION OF CONTRIBUTIONS IN ACCORDANCE WITH
2 THE CHARITABLE PURPOSE EXPRESSED IN THE REGISTRATION
3 STATEMENT OR IN ACCORDANCE WITH THE REPRESENTATIONS MADE TO
4 THE PERSON SOLICITED;
5 (5) THE REIMBURSEMENT OF THE COMMONWEALTH FOR ATTORNEY
6 FEES AND THE COSTS OF INVESTIGATION, INCLUDING AUDIT COSTS;
7 (6) THE ASSESSMENT OF A CIVIL PENALTY NOT EXCEEDING
8 $1,000 PER VIOLATION OF THE ACT, WHICH PENALTY SHALL BE IN
9 ADDITION TO ANY OTHER RELIEF WHICH MAY BE GRANTED; AND
10 (7) THE GRANTING OF OTHER APPROPRIATE RELIEF.
11 (B) ASSURANCE OF VOLUNTARY COMPLIANCE.--IN ANY CASE WHERE
12 THE ATTORNEY GENERAL OR DISTRICT ATTORNEY HAS AUTHORITY TO
13 INSTITUTE AN ACTION OR PROCEEDING UNDER THIS ACT, HE MAY ACCEPT
14 AN ASSURANCE OF VOLUNTARY COMPLIANCE THROUGH WHICH ANY PERSON
15 ALLEGED TO BE ENGAGED IN ANY METHOD, ACT OR PRACTICE IN
16 VIOLATION OF THIS ACT AGREES TO DISCONTINUE SUCH METHOD, ACT OR
17 PRACTICE. SUCH ASSURANCE MAY, AMONG OTHER TERMS, INCLUDE A
18 STIPULATION OF A VOLUNTARY PAYMENT BY SUCH PERSON OF THE COST OF
19 THE INVESTIGATION OR OF AN AMOUNT TO BE HELD IN ESCROW PENDING
20 THE OUTCOME OF AN ACTION OR AS RESTITUTION TO AGREED PERSONS, OR
21 BOTH. ANY SUCH ASSURANCE OF COMPLIANCE SHALL BE IN WRITING AND
22 SHALL BE FILED WITH A COURT OF THE COMMONWEALTH. MATTERS CLOSED
23 MAY, AT ANY TIME BE REOPENED BY THE COURT FOR FURTHER
24 PROCEEDINGS IN THE PUBLIC INTEREST. IN THE EVENT OF AN ALLEGED
25 VIOLATION OF THE ASSURANCE OF VOLUNTARY COMPLIANCE, THE ATTORNEY
26 GENERAL OR DISTRICT ATTORNEY MAY, AT HIS DISCRETION, EITHER
27 INITIATE CONTEMPT PROCEEDINGS OR PROCEED AS IF THE ASSURANCE OF
28 VOLUNTARY COMPLIANCE HAS NOT BEEN ACCEPTED. EVIDENCE OF A
29 VIOLATION OF SUCH ASSURANCE SHALL BE PRIMA FACIE EVIDENCE OF A
30 VIOLATION OF THIS ACT IN ANY SUBSEQUENT PROCEEDING BROUGHT BY
19890H0365B4286 - 53 -
1 THE ATTORNEY GENERAL OR DISTRICT ATTORNEY.
2 SECTION 20. ADDITIONAL REGULATIONS BY COUNTIES, MUNICIPALITIES
3 OR CONSOLIDATED GOVERNMENT.
4 NOTHING CONTAINED IN THIS ACT SHALL SERVE TO DENY THE RIGHT
5 TO ANY COUNTY, MUNICIPALITY OR CONSOLIDATED GOVERNMENT TO PASS
6 SUCH ORDINANCES, RULES AND REGULATIONS AS MAY BE DEEMED
7 APPROPRIATE TO REGULATE FURTHER THE SOLICITING OF CONTRIBUTIONS
8 WITHIN SUCH COUNTY, MUNICIPALITY OR CONSOLIDATED GOVERNMENT.
9 SUCH ORDINANCE MAY NOT ALTER ANY OF THE OBLIGATIONS SET FORTH IN
10 THIS ACT OR THE REGULATIONS OF THE DEPARTMENT BUT MAY ADD
11 THERETO OTHER REQUIREMENTS AND RULES AS APPEAR TO BE PROPER TO
12 THE COUNTY, MUNICIPALITY OR CONSOLIDATED GOVERNMENT INVOLVED.
13 SECTION 21. CHARITABLE ORGANIZATIONS DEEMED FIDUCIARY.
14 EVERY PERSON SOLICITING, COLLECTING OR EXPENDING
15 CONTRIBUTIONS FOR CHARITABLE PURPOSES AND EVERY OFFICER,
16 DIRECTOR, TRUSTEE AND EMPLOYEE OF ANY SUCH PERSON CONCERNED WITH
17 THE SOLICITATION, COLLECTION OR EXPENDITURE OF SUCH CONTRIBUTION
18 SHALL BE DEEMED TO BE A FIDUCIARY AND ACTING IN A FIDUCIARY
19 CAPACITY.
20 SECTION 22. PRIOR REGISTRATION UNAFFECTED.
21 ANY PERSON WHO IS REGISTERED WITH THE DEPARTMENT UNDER THE
22 ACT OF APRIL 30, 1986 (P.L.107, NO.36), KNOWN AS THE CHARITABLE
23 ORGANIZATION REFORM ACT, PRIOR TO THE EFFECTIVE DATE OF THIS ACT
24 SHALL, ON AND AFTER THE EFFECTIVE DATE HEREOF, BE DEEMED TO BE
25 REGISTERED WITH THE DEPARTMENT AS PROVIDED FOR IN THIS ACT.
26 REGISTRATION SHALL BE REISSUED IN ACCORDANCE WITH THIS ACT.
27 SECTION 23. REPEALS.
28 THE ACT OF APRIL 30, 1986 (P.L.107, NO.36), KNOWN AS THE
29 CHARITABLE ORGANIZATION REFORM ACT, IS REPEALED. EXISTING
30 REGULATIONS PROMULGATED PURSUANT TO THE CHARITABLE ORGANIZATION
19890H0365B4286 - 54 -
1 REFORM ACT, SHALL REMAIN IN EFFECT UNTIL AMENDED IN ACCORDANCE
2 WITH THE PROVISIONS OF THIS ACT.
3 SECTION 24. APPROPRIATION.
4 ALL FEES SHALL BE PAID TO THE STATE TREASURER AND ARE
5 APPROPRIATED TO THE DEPARTMENT OF STATE FOR THE ADMINISTRATION
6 AND ENFORCEMENT OF THIS ACT AND ALL FINES, PENALTIES, ATTORNEY
7 FEES AND COSTS OF INVESTIGATION SHALL BE PAID TO THE
8 GOVERNMENTAL AGENCY THAT CONDUCTED THE LITIGATION.
9 SECTION 25. EFFECTIVE DATE.
10 THIS ACT SHALL TAKE EFFECT AS FOLLOWS:
11 (1) SECTIONS 9(J) AND 13(C) SHALL TAKE EFFECT IN 120
12 DAYS.
13 (2) THE REMAINING PROVISIONS OF THIS ACT SHALL TAKE
14 EFFECT IN 60 DAYS.
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