PRIOR PRINTER'S NO. 2223 PRINTER'S NO. 3646
No. 1852 Session of 1991
INTRODUCED BY RITTER, DALEY, PITTS, ITKIN, ROBINSON, DENT,
MIHALICH, SCRIMENTI, TIGUE, JOHNSON, MUNDY, NICKOL, LANGTRY,
CHADWICK, STRITTMATTER, FARGO, DERMODY, FAIRCHILD, CARLSON,
STABACK, ARNOLD, STUBAN, JAROLIN, KRUSZEWSKI, COLAIZZO, FOX,
FAJT, JOSEPHS, CARONE, NAHILL, McCALL, MERRY, SEMMEL,
ARMSTRONG, BELARDI, BELFANTI, D. W. SNYDER, PETRARCA,
E. Z. TAYLOR, STETLER, KING, NYCE, THOMAS, BROWN, PISTELLA,
BUNT, JAMES, RICHARDSON, HARLEY, BILLOW, McHALE,
M. N. WRIGHT, VANCE AND BOYES, JULY 2, 1991
AS RE-REPORTED FROM COMMITTEE ON STATE GOVERNMENT, HOUSE OF
REPRESENTATIVES, AS AMENDED, MAY 19, 1992
AN ACT
1 Amending the act of December 19, 1990 (P.L.1200, No.202),
2 entitled "An act providing for the registration and
3 regulation of solicitations by charitable organizations,
4 professional fundraisers and other solicitors; imposing
5 additional powers on the Department of State and the Office
6 of Attorney General; prescribing civil and criminal
7 penalties; and making a repeal," providing for an exemption <--
8 from registration. FURTHER DEFINING "CHARITABLE <--
9 ORGANIZATION," "COMMERCIAL COVENTURER," "CONTRIBUTION,"
10 "PROFESSIONAL FUNDRAISING COUNSEL" AND "PROFESSIONAL
11 SOLICITOR"; AND FURTHER PROVIDING FOR REGISTRATION AND FEES,
12 FOR FILING INFORMATION, DEPOSITS AND WITHDRAWALS AND FOR
13 CANCELLATIONS.
14 The General Assembly of the Commonwealth of Pennsylvania
15 hereby enacts as follows:
16 Section 1. Section 6(a) of the act of December 19, 1990 <--
17 (P.L.1200, No.202), known as the Solicitation of Funds for
18 Charitable Purposes Act, is amended by adding a paragraph to
19 read:
1 Section 6. Exemptions from registration.
2 (a) General rule.--The following charitable organizations
3 shall be exempt from the registration requirements of this act:
4 * * *
5 (8) Girl Scouts, Boy Scouts, Girls Club, Boys Club and
6 similar youth groups which are nonprofit and charitable and
7 which have been granted tax-exempt status under section
8 501(c)(3) of the Internal Revenue Code of 1986 provided that
9 all fundraising activities are carried on by volunteers,
10 members or officers of the Girl Scouts, Boy Scouts, Girls
11 Club, Boys Club and similar youth groups and those
12 volunteers, members or officers receive no compensation
13 directly or indirectly for the fundraising activities.
14 * * *
15 Section 2. This act shall take effect immediately.
16 SECTION 1. THE DEFINITIONS OF "CHARITABLE ORGANIZATION," <--
17 "COMMERCIAL COVENTURER," "CONTRIBUTION," "PROFESSIONAL
18 FUNDRAISING COUNSEL" AND "PROFESSIONAL SOLICITOR" IN SECTION 3
19 OF THE ACT OF DECEMBER 19, 1990 (P.L.1200, NO.202), KNOWN AS THE
20 SOLICITATION OF FUNDS FOR CHARITABLE PURPOSES ACT, ARE AMENDED
21 TO READ:
22 SECTION 3. DEFINITIONS.
23 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ACT SHALL
24 HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
25 CONTEXT CLEARLY INDICATES OTHERWISE:
26 * * *
27 "CHARITABLE ORGANIZATION." ANY PERSON GRANTED TAX EXEMPT
28 STATUS UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE OF
29 1986 (PUBLIC LAW 99-514, 26 U.S.C. § 501(C)(3)) OR ANY PERSON
30 WHO IS OR HOLDS HIMSELF OUT TO BE ESTABLISHED FOR ANY CHARITABLE
19910H1852B3646 - 2 -
1 PURPOSE OR ANY PERSON WHO IN ANY MANNER EMPLOYS A CHARITABLE
2 APPEAL AS THE BASIS OF ANY SOLICITATION OR AN APPEAL WHICH HAS A
3 TENDENCY TO SUGGEST THERE IS A CHARITABLE PURPOSE TO ANY
4 SOLICITATION. AN AFFILIATE OF A CHARITABLE ORGANIZATION WHICH
5 HAS ITS PRINCIPAL PLACE OF BUSINESS OUTSIDE THIS COMMONWEALTH
6 SHALL BE A CHARITABLE ORGANIZATION FOR THE PURPOSES OF THIS ACT.
7 THE TERM SHALL NOT BE DEEMED TO INCLUDE:
8 (1) ANY BONA FIDE DULY CONSTITUTED ORGANIZATION OF LAW
9 ENFORCEMENT PERSONNEL, FIREFIGHTERS OR OTHER PERSONS WHO
10 PROTECT THE PUBLIC SAFETY WHOSE STATED PURPOSE IN THE
11 SOLICITATION DOES NOT INCLUDE ANY BENEFIT TO ANY PERSON
12 OUTSIDE THE ACTUAL ACTIVE MEMBERSHIP OF THE ORGANIZATION; AND
13 (2) ANY BONA FIDE DULY CONSTITUTED RELIGIOUS
14 INSTITUTIONS AND SUCH SEPARATE GROUPS OR CORPORATIONS WHICH
15 FORM AN INTEGRAL PART OF RELIGIOUS INSTITUTIONS, PROVIDED
16 THAT:
17 (I) SUCH RELIGIOUS INSTITUTIONS, GROUPS OR
18 CORPORATIONS ARE TAX EXEMPT PURSUANT TO THE INTERNAL
19 REVENUE CODE OF 1986;
20 (II) NO PART OF THEIR NET INCOME INURES TO THE
21 DIRECT BENEFIT OF ANY INDIVIDUAL; AND
22 (III) THEIR CONDUCT IS PRIMARILY SUPPORTED BY
23 GOVERNMENT GRANTS OR CONTRACTS OR FUNDS SOLICITED WITHIN
24 THEIR OWN MEMBERSHIPS OR CONGREGATIONS, OR FEES CHARGED
25 FOR SERVICES RENDERED.
26 [(3) ANY VETERANS ORGANIZATION CHARTERED UNDER FEDERAL
27 LAW AND THE SERVICE FOUNDATION OF SUCH A VETERANS
28 ORGANIZATION RECOGNIZED IN THE BYLAWS OF THE VETERANS
29 ORGANIZATION.]
30 * * *
19910H1852B3646 - 3 -
1 "COMMERCIAL COVENTURER." ANY PERSON WHO FOR PROFIT IS
2 REGULARLY AND PRIMARILY ENGAGED IN TRADE OR COMMERCE OTHER THAN
3 IN CONNECTION WITH THE RAISING OF FUNDS OR ANY OTHER THING OF
4 VALUE WHEN OFFERED AT THE USUAL RETAIL PRICE COMPARABLE TO
5 SIMILAR GOODS OR SERVICES IN THE MARKET FOR A CHARITABLE
6 ORGANIZATION AND WHO ADVERTISES THAT THE PURCHASE OR USE OF
7 GOODS, SERVICES, ENTERTAINMENT OR ANY OTHER THING OF VALUE WILL
8 BENEFIT A CHARITABLE ORGANIZATION.
9 "CONTRIBUTION." THE PROMISE, GRANT OR PLEDGE OF MONEY,
10 CREDIT, PROPERTY, FINANCIAL ASSISTANCE OR OTHER THING OF ANY
11 KIND OR VALUE, EXCLUDING VOLUNTEER SERVICES, IN RESPONSE TO A
12 SOLICITATION, INCLUDING THE PAYMENT OR PROMISE TO PAY IN
13 CONSIDERATION OF A PERFORMANCE, EVENT OR SALE OF A GOOD OR
14 SERVICE. PAYMENT BY MEMBERS OF AN ORGANIZATION FOR MEMBERSHIP
15 FEES, DUES, FINES OR ASSESSMENTS OR FOR SERVICES RENDERED TO
16 INDIVIDUAL MEMBERS, IF SUCH FEES, DUES, FINES OR ASSESSMENTS
17 CONFER A BONA FIDE RIGHT, PRIVILEGE, PROFESSIONAL STANDING,
18 HONOR OR OTHER DIRECT BENEFIT, SHALL NOT BE DEEMED
19 CONTRIBUTIONS, PROVIDED THAT MEMBERSHIP IS NOT CONFERRED SOLELY
20 AS CONSIDERATION FOR MAKING A CONTRIBUTION IN RESPONSE TO A
21 SOLICITATION. GOVERNMENT GRANTS OR CONTRACTS SHALL NOT BE DEEMED
22 A CONTRIBUTION.
23 * * *
24 "PROFESSIONAL FUNDRAISING COUNSEL." ANY PERSON WHO IS
25 RETAINED BY A CHARITABLE ORGANIZATION FOR A FIXED FEE OR RATE
26 UNDER A WRITTEN AGREEMENT TO PLAN, [CONDUCT,] MANAGE, [CARRY
27 ON,] ADVISE, CONSULT OR PREPARE MATERIAL FOR OR WITH RESPECT TO
28 THE SOLICITATION IN THIS COMMONWEALTH OF CONTRIBUTIONS FOR A
29 CHARITABLE ORGANIZATION, BUT WHO DOES NOT SOLICIT CONTRIBUTIONS
30 OR EMPLOY, PROCURE OR ENGAGE ANY COMPENSATED PERSON TO SOLICIT
19910H1852B3646 - 4 -
1 CONTRIBUTIONS AND WHO DOES NOT HAVE CUSTODY OR CONTROL OF
2 CONTRIBUTIONS. A BONA FIDE SALARIED OFFICER OR REGULAR,
3 NONTEMPORARY EMPLOYEE OF A CHARITABLE ORGANIZATION [MAINTAINING
4 A PERMANENT ESTABLISHMENT WITHIN THIS COMMONWEALTH] SHALL NOT BE
5 DEEMED TO BE A PROFESSIONAL FUNDRAISING COUNSEL PROVIDED THAT
6 THE INDIVIDUAL IS NOT EMPLOYED OR ENGAGED AS PROFESSIONAL
7 FUNDRAISING COUNSEL OR AS A PROFESSIONAL SOLICITOR BY ANY OTHER
8 PERSON.
9 "PROFESSIONAL SOLICITOR." ANY PERSON WHO IS RETAINED FOR
10 FINANCIAL OR OTHER CONSIDERATION BY A CHARITABLE ORGANIZATION TO
11 SOLICIT IN THIS COMMONWEALTH CONTRIBUTIONS FOR CHARITABLE
12 PURPOSES DIRECTLY OR IN THE FORM OF PAYMENT FOR GOODS, SERVICES
13 OR ADMISSION TO FUNDRAISING EVENTS, WHETHER SUCH SOLICITATION IS
14 PERFORMED PERSONALLY OR THROUGH HIS AGENTS, SERVANTS OR
15 EMPLOYEES OR THROUGH AGENTS, SERVANTS OR EMPLOYEES ESPECIALLY
16 EMPLOYED BY OR FOR A CHARITABLE ORGANIZATION WHO ARE ENGAGED IN
17 THE SOLICITATION OF CONTRIBUTIONS, THE SALE OF GOODS OR SERVICES
18 OR THE PRODUCTION OF FUNDRAISING EVENTS UNDER THE DIRECTION OF
19 SUCH PERSON, OR A PERSON WHO PLANS, CONDUCTS, MANAGES, CARRIES
20 ON, ADVISES, CONSULTS, WHETHER DIRECTLY OR INDIRECTLY, IN
21 CONNECTION WITH THE SOLICITATION OF CONTRIBUTIONS, SALE OF GOODS
22 OR SERVICES OR THE PRODUCTION OF FUNDRAISING EVENTS FOR OR ON
23 BEHALF OF ANY CHARITABLE ORGANIZATION, BUT DOES NOT QUALIFY AS A
24 PROFESSIONAL FUNDRAISING COUNSEL WITHIN THE MEANING OF THIS ACT.
25 A PERSON WHO IS OTHERWISE A PROFESSIONAL FUNDRAISING COUNSEL
26 SHALL BE DEEMED A PROFESSIONAL SOLICITOR IF HIS COMPENSATION IS
27 RELATED TO THE AMOUNT OF CONTRIBUTIONS RECEIVED. A BONA FIDE
28 SALARIED OFFICER OR REGULAR, NONTEMPORARY EMPLOYEE OF A
29 CHARITABLE ORGANIZATION [MAINTAINING A PERMANENT ESTABLISHMENT
30 WITHIN THIS COMMONWEALTH] SHALL NOT BE DEEMED TO BE A
19910H1852B3646 - 5 -
1 PROFESSIONAL SOLICITOR PROVIDED THAT THE INDIVIDUAL IS NOT
2 EMPLOYED OR ENGAGED AS PROFESSIONAL FUNDRAISING COUNSEL OR AS A
3 PROFESSIONAL SOLICITOR BY ANY OTHER PERSON.
4 * * *
5 SECTION 2. SECTION 5(B)(12), (E), (N) AND (P) OF THE ACT ARE
6 AMENDED AND THE SECTION IS AMENDED BY ADDING SUBSECTIONS TO
7 READ:
8 SECTION 5. REGISTRATION OF CHARITABLE ORGANIZATIONS; FINANCIAL
9 REPORTS; FEES; FAILURE TO FILE.
10 * * *
11 (B) FILING OF STATEMENT.--IT SHALL BE THE DUTY OF THE
12 PRESIDENT, CHAIRMAN OR PRINCIPAL OFFICER OF EACH CHARITABLE
13 ORGANIZATION TO FILE THE REGISTRATION STATEMENT, FINANCIAL
14 REPORT AND FEE REQUIRED UNDER THIS SECTION. THE REGISTRATION
15 STATEMENT SHALL BE SWORN TO BY TWO AUTHORIZED OFFICERS,
16 INCLUDING THE CHIEF FISCAL OFFICER OF THE ORGANIZATION, AND
17 SHALL CONTAIN ALL OF THE FOLLOWING INFORMATION:
18 * * *
19 (12) WHETHER ANY OF THE ORGANIZATION'S OFFICERS,
20 DIRECTORS, TRUSTEES OR EMPLOYEES ARE RELATED BY BLOOD,
21 MARRIAGE OR ADOPTION TO EACH OTHER OR TO ANY OFFICERS, AGENTS
22 OR EMPLOYEES OF ANY PROFESSIONAL FUNDRAISING COUNSEL OR
23 PROFESSIONAL SOLICITOR UNDER CONTRACT TO THE ORGANIZATION OR
24 TO ANY SUPPLIER OR VENDOR PROVIDING GOODS OR SERVICES TO THE
25 ORGANIZATION EXCEEDING $5,000 IN THE AGGREGATE, AND THE NAMES
26 AND BUSINESS AND RESIDENCE ADDRESSES OF ANY SUCH RELATED
27 PARTIES.
28 * * *
29 (E) FINANCIAL REPORT.--WITH EACH REGISTRATION STATEMENT
30 FILED UNDER THIS SECTION, A CHARITABLE ORGANIZATION MUST FILE A
19910H1852B3646 - 6 -
1 FINANCIAL REPORT FOR THE IMMEDIATELY PRECEDING FISCAL YEAR,
2 WHICH SHALL CONTAIN A BALANCE SHEET AND STATEMENTS OF REVENUE,
3 EXPENSES AND CHANGES IN FUND BALANCES INDICATING THE
4 ORGANIZATION'S GROSS REVENUE, THE AMOUNT OF FUNDS RECEIVED FROM
5 SOLICITATIONS OR OTHER FUNDRAISING ACTIVITIES AND ALL
6 EXPENDITURES FOR SUPPLIES, EQUIPMENT, GOODS, SERVICES, PROGRAMS,
7 ACTIVITIES OR OTHER EXPENSES, A DETAILED LIST OF ALL SALARIES
8 AND WAGES PAID AND EXPENSES ALLOWED TO ANY OFFICER OR EMPLOYEE
9 IF THE ORGANIZATION IS NOT REQUIRED TO FILE AN INTERNAL REVENUE
10 SERVICE FORM 990 AND THE DISPOSITION OF THE NET PROCEEDS
11 RECEIVED FROM SOLICITED CONTRIBUTIONS OR OTHER FUNDRAISING
12 ACTIVITIES.
13 * * *
14 (N) FEDERATED ORGANIZATIONS.--AN INDEPENDENT MEMBER AGENCY
15 OF A FEDERATED FUNDRAISING ORGANIZATION SHALL INDEPENDENTLY
16 COMPLY WITH THE PROVISIONS OF THIS SECTION UNLESS SPECIFICALLY
17 EXEMPTED OR UNLESS IT RECEIVES ALLOCATIONS SOLELY FROM THE
18 FEDERATED FUNDRAISING ORGANIZATION AND DOES NOT INDEPENDENTLY
19 SOLICIT CONTRIBUTIONS. DONOR CHOICE PROGRAMS ARE DEEMED TO BE
20 INDEPENDENT SOLICITATIONS.
21 * * *
22 (P) ANNUAL REGISTRATION FEES.--A CHARITABLE ORGANIZATION
23 WHICH SUBMITS A SHORT FORM REGISTRATION STATEMENT PURSUANT TO
24 SECTION 7 OR RECEIVES CONTRIBUTIONS OF [LESS THAN] $25,000 OR
25 LESS DURING THE IMMEDIATELY PRECEDING FISCAL YEAR SHALL PAY AN
26 ANNUAL REGISTRATION FEE OF $15. A CHARITABLE ORGANIZATION WHICH
27 RECEIVES CONTRIBUTIONS IN EXCESS OF $25,000, BUT LESS THAN
28 $100,000 DURING THE IMMEDIATELY PRECEDING FISCAL YEAR SHALL PAY
29 AN ANNUAL REGISTRATION FEE OF [$50] $100. A CHARITABLE
30 ORGANIZATION WHICH RECEIVES CONTRIBUTIONS IN EXCESS OF $100,000,
19910H1852B3646 - 7 -
1 BUT NOT EXCEEDING $500,000 DURING THE IMMEDIATELY PRECEDING
2 FISCAL YEAR SHALL PAY AN ANNUAL REGISTRATION FEE OF [$100] $150.
3 A CHARITABLE ORGANIZATION WHICH RECEIVES CONTRIBUTIONS IN EXCESS
4 OF $500,000 DURING THE IMMEDIATELY PRECEDING FISCAL YEAR SHALL
5 PAY AN ANNUAL REGISTRATION FEE OF $250. A PARENT ORGANIZATION
6 FILING ON BEHALF OF ONE OR MORE AFFILIATES AND A FEDERATED
7 FUNDRAISING ORGANIZATION FILING ON BEHALF OF ITS MEMBER AGENCIES
8 SHALL PAY A SINGLE ANNUAL REGISTRATION FEE FOR ITSELF AND SUCH
9 OTHER AFFILIATES OR MEMBER AGENCIES INCLUDED IN THE REGISTRATION
10 STATEMENT.
11 * * *
12 (S) ADMINISTRATION OF CHARITABLE CONTRIBUTIONS.--A
13 CHARITABLE ORGANIZATION SHALL MAINTAIN AND ADMINISTER ALL
14 CONTRIBUTIONS RAISED ON ITS BEHALF THROUGH AN ACCOUNT IN THE
15 NAME OF THE CHARITABLE ORGANIZATION AND UNDER ITS SOLE CONTROL.
16 (T) UPDATING INFORMATION.--ANY MATERIAL CHANGE IN ANY
17 INFORMATION FILED WITH THE DEPARTMENT PURSUANT TO THIS SECTION
18 SHALL BE REPORTED IN WRITING BY THE REGISTRANT TO THE DEPARTMENT
19 NOT MORE THAN 30 DAYS AFTER SUCH CHANGE OCCURS.
20 SECTION 3. SECTION 6 OF THE ACT IS AMENDED TO READ:
21 SECTION 6. EXEMPTIONS FROM REGISTRATION.
22 (A) GENERAL RULE.--THE FOLLOWING CHARITABLE ORGANIZATIONS
23 SHALL BE EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THIS ACT:
24 (1) EDUCATIONAL INSTITUTIONS, THE CURRICULA OF WHICH IN
25 WHOLE OR IN PART ARE REGISTERED WITH OR APPROVED BY THE
26 DEPARTMENT OF EDUCATION, EITHER DIRECTLY OR BY ACCEPTANCE OF
27 ACCREDITATION BY AN ACCREDITING BODY RECOGNIZED BY THE
28 DEPARTMENT OF EDUCATION, AND ANY AUXILIARY ASSOCIATIONS,
29 FOUNDATIONS AND SUPPORT GROUPS WHICH ARE DIRECTLY RESPONSIBLE
30 TO EDUCATIONAL INSTITUTIONS.
19910H1852B3646 - 8 -
1 (2) HOSPITALS WHICH ARE SUBJECT TO REGULATION BY THE
2 DEPARTMENT OF HEALTH OR THE DEPARTMENT OF PUBLIC WELFARE, AND
3 THE HOSPITAL FOUNDATION IF ANY, WHICH IS AN INTEGRAL PART
4 THEREOF.
5 (3) A LOCAL POST, CAMP, CHAPTER OR SIMILARLY DESIGNATED
6 ELEMENT OR A COUNTY UNIT OF SUCH ELEMENTS OF:
7 (I) [A BONA FIDE VETERANS' ORGANIZATION WHICH ISSUES
8 CHARTERS TO SUCH LOCAL ELEMENTS THROUGHOUT THIS
9 COMMONWEALTH;] ANY VETERAN'S ORGANIZATION CHARTERED UNDER
10 FEDERAL LAW AND ANY SERVICE FOUNDATION RECOGNIZED IN THE
11 BYLAWS OF SUCH ORGANIZATION;
12 (II) A BONA FIDE ORGANIZATION OF VOLUNTEER FIREMEN;
13 (III) A BONA FIDE AMBULANCE ASSOCIATION;
14 (IV) A BONA FIDE RESCUE SQUAD ASSOCIATION; OR
15 (V) A BONA FIDE AUXILIARY OR AFFILIATE OF ANY
16 ORGANIZATION OR ASSOCIATION UNDER SUBPARAGRAPH (I), (II),
17 (III) OR (IV);
18 PROVIDED THAT ALL FUNDRAISING ACTIVITIES OF AN ORGANIZATION
19 OR ASSOCIATION UNDER SUBPARAGRAPH (I), (II), (III), (IV) OR
20 (V) ARE CARRIED ON BY VOLUNTEERS, MEMBERS OR AN AUXILIARY OR
21 AFFILIATE THEREOF, AND THOSE VOLUNTEERS, MEMBERS OR
22 AFFILIATES RECEIVE NO COMPENSATION DIRECTLY OR INDIRECTLY FOR
23 THE FUNDRAISING ACTIVITIES.
24 (4) PUBLIC NONPROFIT LIBRARY ORGANIZATIONS WHICH RECEIVE
25 FINANCIAL AID FROM STATE AND MUNICIPAL GOVERNMENTS AND FILE
26 AN ANNUAL FISCAL REPORT WITH THE STATE LIBRARY SYSTEM.
27 (5) SENIOR CITIZEN CENTERS AND NURSING HOMES WHICH ARE
28 NONPROFIT AND CHARITABLE AND WHICH HAVE BEEN GRANTED TAX-
29 EXEMPT STATUS UNDER THE INTERNAL REVENUE CODE OF 1986 (PUBLIC
30 LAW 99-514, 26 U.S.C. § 1 ET SEQ.), PROVIDED THAT ALL
19910H1852B3646 - 9 -
1 FUNDRAISING ACTIVITIES ARE CARRIED ON BY VOLUNTEERS, MEMBERS
2 OR OFFICERS OF THE SENIOR CITIZEN CENTER AND THOSE
3 VOLUNTEERS, MEMBERS OR OFFICERS RECEIVE NO COMPENSATION,
4 DIRECTLY OR INDIRECTLY, FOR THE FUNDRAISING ACTIVITIES.
5 (6) BONA FIDE PARENT/TEACHER ASSOCIATIONS OR
6 PARENT/TEACHER ORGANIZATIONS AS RECOGNIZED IN A NOTARIZED
7 LETTER FROM THE SCHOOL DISTRICT IN WHICH THEY ARE LOCATED.
8 (7) ANY CORPORATION ESTABLISHED BY AN ACT OF CONGRESS OF
9 THE UNITED STATES THAT IS REQUIRED BY FEDERAL LAW TO SUBMIT
10 ANNUAL REPORTS OF ITS ACTIVITIES TO CONGRESS CONTAINING
11 ITEMIZED ACCOUNTS OF ALL RECEIPTS AND EXPENDITURES AFTER
12 BEING FULLY AUDITED BY THE [DEPARTMENT OF DEFENSE.] FEDERAL
13 GOVERNMENT.
14 (8) ANY CHARITABLE ORGANIZATION WHICH RECEIVES
15 CONTRIBUTIONS OF $25,000 OR LESS ANNUALLY, PROVIDED THAT SUCH
16 ORGANIZATION DOES NOT COMPENSATE ANY PERSON WHO CONDUCTS
17 SOLICITATIONS. CHARITABLE ORGANIZATIONS WHICH RECEIVE MORE
18 THAN $25,000 IN CONTRIBUTIONS SHALL FILE THE APPROPRIATE
19 REGISTRATION STATEMENT WITHIN 30 DAYS AFTER THE CONTRIBUTIONS
20 ARE RECEIVED.
21 (B) EFFECT OF EXEMPTION.--EXEMPTION FROM THE REGISTRATION
22 REQUIREMENTS OF THIS ACT SHALL IN NO WAY LIMIT THE APPLICABILITY
23 OF OTHER PROVISIONS OF THE ACT TO A CHARITABLE ORGANIZATION OR
24 ANY PROFESSIONAL SOLICITOR OR PROFESSIONAL FUNDRAISING COUNSEL
25 ACTING ON ITS OWN BEHALF, EXCEPT THAT WRITTEN NOTICE UNDER
26 SECTIONS 9(K) AND 13(C) SHALL NOT APPLY.
27 SECTION 4. THE INTRODUCTORY PARAGRAPH OF SECTION 7(A) OF THE
28 ACT IS AMENDED AND THE SECTION IS AMENDED BY ADDING SUBSECTIONS
29 TO READ:
30 SECTION 7. SHORT FORM REGISTRATION.
19910H1852B3646 - 10 -
1 (A) ORGANIZATIONS REQUIRED TO FILE.--THE FOLLOWING
2 CHARITABLE ORGANIZATIONS SHALL BE REQUIRED TO FILE SHORT FORM
3 ANNUAL REGISTRATION STATEMENTS WITH THE DEPARTMENT IN LIEU OF
4 THE REGISTRATION STATEMENT REQUIRED BY SECTION 5:
5 * * *
6 (C) FINANCIAL REPORT.--CHARITABLE ORGANIZATIONS WHICH FILE A
7 SHORT FORM REGISTRATION STATEMENT NEED NOT FILE THE FINANCIAL
8 REPORT REQUIRED UNDER SECTION 5.
9 (D) UPDATING OF INFORMATION.--ANY MATERIAL CHANGE IN ANY
10 INFORMATION FILED WITH THE DEPARTMENT PURSUANT TO THIS SECTION
11 SHALL BE REPORTED IN WRITING BY THE REGISTRANT TO THE DEPARTMENT
12 NOT MORE THAN 30 DAYS AFTER SUCH CHANGE OCCURS.
13 SECTION 5. SECTIONS 8(A), (B) AND (D), 9 AND 10(C) AND (E)
14 OF THE ACT ARE AMENDED TO READ:
15 SECTION 8. REGISTRATION OF PROFESSIONAL FUNDRAISING COUNSEL AND
16 CONTRACTS.
17 (A) REGISTRATION AND APPROVAL REQUIRED.--NO PERSON SHALL ACT
18 AS A PROFESSIONAL FUNDRAISING COUNSEL BEFORE OBTAINING
19 DEPARTMENT APPROVAL OF A REGISTRATION STATEMENT PURSUANT TO
20 SUBSECTION (C) OR AFTER THE EXPIRATION, SUSPENSION OR REVOCATION
21 OF SUCH REGISTRATION. A REGISTRATION APPLICATION SHALL BE SIGNED
22 AND SWORN TO BY THE PRINCIPAL OFFICER OF THE PROFESSIONAL
23 FUNDRAISING COUNSEL AND SHALL CONTAIN ALL OF THE FOLLOWING
24 INFORMATION:
25 (1) THE ADDRESS OF THE PRINCIPAL PLACE OF BUSINESS OF
26 THE APPLICANT AND ANY PENNSYLVANIA ADDRESSES, IF THE
27 PRINCIPAL PLACE OF BUSINESS IS LOCATED OUTSIDE THIS
28 COMMONWEALTH.
29 (2) THE FORM OF THE APPLICANT'S BUSINESS.
30 (3) THE NAMES AND RESIDENCE ADDRESSES OF ALL PRINCIPALS
19910H1852B3646 - 11 -
1 OF THE APPLICANT, INCLUDING ALL OFFICERS, DIRECTORS AND
2 OWNERS.
3 (4) WHETHER ANY OF THE OWNERS, DIRECTORS, OFFICERS OR
4 EMPLOYEES OF THE APPLICANT ARE RELATED BY BLOOD, MARRIAGE OR
5 ADOPTION TO ANY OTHER DIRECTORS, OFFICERS, OWNERS OR
6 EMPLOYEES OF THE APPLICANT, ANY OFFICER, DIRECTOR, TRUSTEE OR
7 EMPLOYEE OF ANY CHARITABLE ORGANIZATION UNDER CONTRACT TO THE
8 APPLICANT OR ANY SUPPLIER OR VENDOR PROVIDING GOODS OR
9 SERVICES TO ANY CHARITABLE ORGANIZATION UNDER CONTRACT TO THE
10 APPLICANT.
11 (5) THE NAME OF ANY PERSON WHO IS IN CHARGE OF ANY
12 SOLICITATION ACTIVITY.
13 (6) ANY OTHER INFORMATION REQUIRED BY THE REGULATIONS OF
14 THE DEPARTMENT.
15 (B) REGISTRATION FEE.--THE APPLICATION FOR REGISTRATION
16 SHALL BE ACCOMPANIED BY A FEE OF [$100] $250. A PROFESSIONAL
17 FUNDRAISING COUNSEL WHICH IS A PARTNERSHIP OR CORPORATION MAY
18 REGISTER FOR AND PAY A SINGLE FEE ON BEHALF OF ALL OF ITS
19 PARTNERS, MEMBERS, OFFICERS, DIRECTORS, AGENTS AND EMPLOYEES.
20 EACH REGISTRATION SHALL BE VALID FOR ONE YEAR AND MAY BE RENEWED
21 FOR ADDITIONAL ONE-YEAR PERIODS UPON APPLICATION TO THE
22 DEPARTMENT AND PAYMENT OF THE REGISTRATION FEE.
23 * * *
24 (D) WRITTEN CONTRACT.--THERE SHALL BE A WRITTEN CONTRACT
25 BETWEEN A CHARITABLE ORGANIZATION AND A PROFESSIONAL FUNDRAISING
26 COUNSEL WHICH SHALL BE FILED BY THE PROFESSIONAL FUNDRAISING
27 COUNSEL WITH THE DEPARTMENT AT LEAST TEN WORKING DAYS PRIOR TO
28 THE PERFORMANCE BY THE PROFESSIONAL FUNDRAISING COUNSEL OF ANY
29 SERVICE. NO SOLICITATION OR SERVICES PURSUANT TO THE CONTRACT
30 SHALL BEGIN BEFORE THE DEPARTMENT HAS APPROVED THE CONTRACT
19910H1852B3646 - 12 -
1 PURSUANT TO SUBSECTION (E). THE CONTRACT MUST BE SIGNED BY TWO
2 AUTHORIZED OFFICIALS OF THE CHARITABLE ORGANIZATION, ONE OF WHOM
3 MUST BE A MEMBER OF THE ORGANIZATION'S GOVERNING BODY, AND THE
4 AUTHORIZED CONTRACTING OFFICER FOR THE PROFESSIONAL FUNDRAISING
5 COUNSEL. THE CONTRACT SHALL CONTAIN ALL OF THE FOLLOWING
6 PROVISIONS:
7 (1) THE LEGAL NAME AND ADDRESS OF THE CHARITABLE
8 ORGANIZATION AS REGISTERED WITH THE DEPARTMENT UNLESS THAT
9 CHARITABLE ORGANIZATION IS EXEMPT FROM REGISTRATION.
10 [(1)] (2) A STATEMENT OF THE CHARITABLE PURPOSE FOR
11 WHICH THE SOLICITATION CAMPAIGN IS BEING CONDUCTED.
12 [(2)] (3) A STATEMENT OF THE RESPECTIVE OBLIGATIONS OF
13 THE PROFESSIONAL FUNDRAISING COUNSEL AND THE CHARITABLE
14 ORGANIZATION.
15 [(3)] (4) A CLEAR STATEMENT OF THE FEES WHICH WILL BE
16 PAID TO THE PROFESSIONAL FUNDRAISING COUNSEL.
17 [(4)] (5) THE EFFECTIVE AND TERMINATION DATES OF THE
18 CONTRACT AND THE DATE SERVICES WILL COMMENCE WITH RESPECT TO
19 SOLICITATION IN THIS COMMONWEALTH OF CONTRIBUTIONS FOR A
20 CHARITABLE ORGANIZATION.
21 [(5)] (6) A STATEMENT THAT THE PROFESSIONAL FUNDRAISING
22 COUNSEL WILL NOT AT ANY TIME HAVE CUSTODY OR CONTROL OF
23 CONTRIBUTIONS.
24 (7) A STATEMENT THAT THE CHARITABLE ORGANIZATION
25 EXERCISES CONTROL AND APPROVAL OVER THE CONTENT AND VOLUME OF
26 ANY SOLICITATION.
27 [(6)] (8) ANY OTHER INFORMATION REQUIRED BY THE
28 REGULATIONS OF THE DEPARTMENT.
29 * * *
30 SECTION 9. REGISTRATION OF PROFESSIONAL SOLICITORS; CONTRACT
19910H1852B3646 - 13 -
1 AND DISCLOSURE REQUIREMENTS; BONDS; RECORDS;
2 BOOKS.
3 (A) REGISTRATION AND APPROVAL REQUIRED.--NO PERSON SHALL ACT
4 AS A PROFESSIONAL SOLICITOR BEFORE OBTAINING DEPARTMENT APPROVAL
5 OF A REGISTRATION STATEMENT PURSUANT TO SUBSECTION (D) OR AFTER
6 THE EXPIRATION, SUSPENSION OR REVOCATION OF SUCH REGISTRATION. A
7 REGISTRATION APPLICATION SHALL BE SIGNED AND SWORN TO BY THE
8 PRINCIPAL OFFICER OF THE PROFESSIONAL SOLICITOR, AND SHALL
9 CONTAIN ALL OF THE FOLLOWING INFORMATION:
10 (1) THE ADDRESS OF THE PRINCIPAL PLACE OF BUSINESS OF
11 THE APPLICANT AND ANY PENNSYLVANIA ADDRESSES, IF THE
12 PRINCIPAL PLACE OF BUSINESS IS LOCATED OUTSIDE THIS
13 COMMONWEALTH.
14 (2) THE FORM OF THE APPLICANT'S BUSINESS.
15 (3) THE NAMES AND RESIDENCE ADDRESSES OF ALL PRINCIPALS
16 OF THE APPLICANT, INCLUDING ALL OFFICERS, DIRECTORS AND
17 OWNERS.
18 (4) WHETHER ANY OF THE OWNERS, DIRECTORS, OFFICERS OR
19 EMPLOYEES OF THE APPLICANT ARE RELATED BY BLOOD, MARRIAGE OR
20 ADOPTION TO ANY OTHER DIRECTORS, OFFICERS, OWNERS OR
21 EMPLOYEES OF THE APPLICANT, ANY OFFICER, DIRECTOR, TRUSTEE OR
22 EMPLOYEE OF ANY CHARITABLE ORGANIZATION UNDER CONTRACT TO THE
23 APPLICANT OR ANY SUPPLIER OR VENDOR PROVIDING GOODS OR
24 SERVICES TO ANY CHARITABLE ORGANIZATION UNDER CONTRACT TO THE
25 APPLICANT.
26 (5) THE NAME OF ALL PERSONS IN CHARGE OF ANY
27 SOLICITATION ACTIVITY.
28 (6) ANY OTHER INFORMATION REQUIRED BY THE REGULATIONS OF
29 THE DEPARTMENT.
30 (B) REGISTRATION FEE.--THE APPLICATION FOR REGISTRATION
19910H1852B3646 - 14 -
1 SHALL BE ACCOMPANIED BY A FEE OF [$100] $250. A PROFESSIONAL
2 SOLICITOR WHICH IS A PARTNERSHIP OR CORPORATION MAY REGISTER FOR
3 AND PAY A SINGLE FEE ON BEHALF OF ALL OF ITS PARTNERS, MEMBERS,
4 OFFICERS, DIRECTORS, AGENTS AND EMPLOYEES. EACH REGISTRATION
5 SHALL BE VALID FOR ONE YEAR AND MAY BE RENEWED FOR ADDITIONAL
6 ONE-YEAR PERIODS UPON APPLICATION TO THE DEPARTMENT AND PAYMENT
7 OF THE REGISTRATION FEE.
8 (C) BOND.--A PROFESSIONAL SOLICITOR SHALL, AT THE TIME OF
9 MAKING APPLICATION FOR REGISTRATION AND RENEWAL OF REGISTRATION,
10 FILE WITH AND HAVE APPROVED BY THE DEPARTMENT A BOND, IN WHICH
11 IT SHALL BE THE PRINCIPAL OBLIGOR IN THE SUM OF $25,000, OR A
12 GREATER AMOUNT AS PRESCRIBED BY THE REGULATIONS OF THE
13 DEPARTMENT AND WHICH SHALL HAVE ONE OR MORE SURETIES
14 SATISFACTORY TO THE DEPARTMENT WHOSE LIABILITY IN THE AGGREGATE
15 AS SUCH SURETIES WILL AT LEAST EQUAL THAT SUM AND MAINTAIN THE
16 BOND IN EFFECT AS LONG AS THE REGISTRATION IS IN EFFECT. THE
17 BOND SHALL RUN TO THE COMMONWEALTH FOR USE OF THE SECRETARY,
18 ATTORNEY GENERAL AND ANY PERSON WHO MAY HAVE A CAUSE OF ACTION
19 AGAINST THE OBLIGOR FOR ANY LOSSES RESULTING FROM MALFEASANCE,
20 NONFEASANCE OR MISFEASANCE IN THE CONDUCT OF SOLICITATION
21 ACTIVITIES. A PROFESSIONAL SOLICITOR WHICH IS A PARTNERSHIP OR
22 CORPORATION MAY FILE ONE $25,000 BOND OR AN AMOUNT SPECIFIED BY
23 REGULATION OF THE DEPARTMENT ON BEHALF OF ALL ITS PARTNERS,
24 MEMBERS, OFFICERS, DIRECTORS, AGENTS AND EMPLOYEES.
25 (D) DEPARTMENT REVIEW OF REGISTRATION STATEMENT.--THE
26 DEPARTMENT SHALL EXAMINE EACH REGISTRATION STATEMENT AND
27 SUPPORTING DOCUMENTS FILED BY A PROFESSIONAL SOLICITOR AND SHALL
28 DETERMINE WHETHER THE REGISTRATION REQUIREMENTS ARE SATISFIED.
29 IF THE DEPARTMENT DETERMINES THAT REGISTRATION REQUIREMENTS ARE
30 NOT SATISFIED, THE DEPARTMENT MUST NOTIFY THE PROFESSIONAL
19910H1852B3646 - 15 -
1 SOLICITOR WITHIN TEN WORKING DAYS OF ITS RECEIPT OF ITS
2 REGISTRATION STATEMENT; OTHERWISE THE REGISTRATION STATEMENT IS
3 DEEMED TO BE APPROVED. WITHIN SEVEN DAYS AFTER RECEIPT OF A
4 NOTIFICATION THAT THE REGULATION REQUIREMENTS ARE NOT SATISFIED,
5 THE PROFESSIONAL SOLICITOR MAY REQUEST A HEARING. THE HEARING
6 MUST BE HELD WITHIN SEVEN DAYS OF RECEIPT OF THE REQUEST, AND A
7 DETERMINATION MUST BE RENDERED WITHIN THREE WORKING DAYS OF THE
8 HEARING.
9 (E) CONTRACT FILING.--NO LESS THAN TEN WORKING DAYS PRIOR TO
10 THE COMMENCEMENT OF EACH SOLICITATION CAMPAIGN, EVENT OR
11 SERVICES, A PROFESSIONAL SOLICITOR SHALL FILE WITH THE
12 DEPARTMENT A COPY OF THE CONTRACT DESCRIBED IN SUBSECTION (F)
13 AND A WRITTEN SOLICITATION NOTICE. NO SOLICITATION OR SERVICES
14 PURSUANT TO THE CONTRACT SHALL BEGIN BEFORE THE DEPARTMENT HAS
15 APPROVED THE CONTRACT PURSUANT TO SUBSECTION (G). THE
16 SOLICITATION NOTICE SHALL BE ACCOMPANIED BY A FEE OF $25, SHALL
17 BE SIGNED AND SWORN TO BY THE AUTHORIZED CONTRACTING OFFICER FOR
18 THE PROFESSIONAL SOLICITOR [AND]. IF MORE THAN ONE EVENT OR
19 CAMPAIGN IS CONDUCTED UNDER A CONTRACT, THEN A SOLICITATION
20 NOTICE ADDENDUM MUST BE FILED NO LESS THAN TEN WORKING DAYS
21 PRIOR TO THE COMMENCEMENT OF EACH ADDITIONAL EVENT OR CAMPAIGN.
22 NO ADDITIONAL FEE IS REQUIRED TO FILE THE ADDENDUM. THE
23 SOLICITATION NOTICE AND ADDENDUM SHALL CONTAIN ALL OF THE
24 FOLLOWING INFORMATION:
25 (1) A DESCRIPTION OF THE SOLICITATION EVENT OR CAMPAIGN.
26 (2) EACH LOCATION AND TELEPHONE NUMBER FROM WHICH THE
27 SOLICITATION IS TO BE CONDUCTED.
28 (3) THE LEGAL NAME AND RESIDENT ADDRESS OF EACH PERSON
29 RESPONSIBLE FOR DIRECTING AND SUPERVISING THE CONDUCT OF THE
30 CAMPAIGN AND EACH PERSON WHO IS TO SOLICIT DURING SUCH
19910H1852B3646 - 16 -
1 CAMPAIGN.
2 (4) A STATEMENT AS TO WHETHER THE PROFESSIONAL SOLICITOR
3 WILL AT ANY TIME HAVE CUSTODY OR CONTROL OF CONTRIBUTIONS.
4 (5) THE ACCOUNT NUMBER AND LOCATION OF EACH BANK ACCOUNT
5 WHERE RECEIPTS FROM THE CAMPAIGN ARE TO BE DEPOSITED.
6 (6) A FULL AND FAIR DESCRIPTION OF THE CHARITABLE
7 PROGRAM FOR WHICH THE SOLICITATION CAMPAIGN IS BEING CARRIED
8 OUT.
9 (7) THE DATE THE SOLICITATION CAMPAIGN OR EVENT WILL
10 BEGIN OR BE HELD WITHIN THIS COMMONWEALTH AND THE TERMINATION
11 DATE FOR EACH CAMPAIGN OR EVENT.
12 [(7)] (8) ANY OTHER INFORMATION REQUIRED BY THE
13 REGULATIONS OF THE DEPARTMENT.
14 (F) WRITTEN CONTRACT.--THERE SHALL BE A WRITTEN CONTRACT
15 BETWEEN A PROFESSIONAL SOLICITOR AND A CHARITABLE ORGANIZATION
16 FOR EACH SOLICITATION CAMPAIGN WHICH SHALL BE SIGNED BY TWO
17 AUTHORIZED OFFICIALS OF THE CHARITABLE ORGANIZATION, ONE OF WHOM
18 MUST BE A MEMBER OF THE ORGANIZATION'S GOVERNING BODY, AND THE
19 AUTHORIZED CONTRACTING OFFICER FOR THE PROFESSIONAL SOLICITOR
20 AND WHICH SHALL CONTAIN ALL OF THE FOLLOWING PROVISIONS:
21 (1) THE LEGAL NAME AND ADDRESS OF THE CHARITABLE
22 ORGANIZATION AS REGISTERED WITH THE DEPARTMENT, UNLESS THAT
23 CHARITABLE ORGANIZATION IS EXEMPT FROM REGISTRATION.
24 [(1)] (2) A STATEMENT OF THE CHARITABLE PURPOSE FOR
25 WHICH THE SOLICITATION CAMPAIGN IS BEING CONDUCTED.
26 [(2)] (3) A STATEMENT OF THE RESPECTIVE OBLIGATIONS OF
27 THE PROFESSIONAL SOLICITOR AND THE CHARITABLE ORGANIZATION.
28 [(3)] (4) A STATEMENT OF THE GUARANTEED MINIMUM
29 PERCENTAGE OF THE GROSS RECEIPTS FROM CONTRIBUTIONS WHICH
30 WILL BE REMITTED TO OR RETAINED BY THE CHARITABLE
19910H1852B3646 - 17 -
1 ORGANIZATION, IF ANY, OR, IF THE SOLICITATION INVOLVES THE
2 SALE OF GOODS, SERVICES OR TICKETS TO A FUNDRAISING EVENT,
3 THE PERCENTAGE OF THE PURCHASE PRICE WHICH WILL BE REMITTED
4 TO THE CHARITABLE ORGANIZATION, IF ANY. ANY STATED PERCENTAGE
5 SHALL EXCLUDE ANY AMOUNT WHICH THE CHARITABLE ORGANIZATION IS
6 TO PAY AS FUNDRAISING COSTS.
7 [(4)] (5) A STATEMENT OF THE PERCENTAGE OF THE GROSS
8 REVENUE WHICH THE PROFESSIONAL SOLICITOR WILL BE COMPENSATED.
9 THE STATED PERCENTAGE SHALL INCLUDE ANY AMOUNT WHICH THE
10 PROFESSIONAL SOLICITOR IS TO BE REIMBURSED AS PAYMENT FOR
11 FUNDRAISING COSTS. IF THE COMPENSATION OF THE PROFESSIONAL
12 SOLICITOR IS NOT CONTINGENT UPON THE NUMBER OF CONTRIBUTIONS
13 OR THE AMOUNT OF REVENUE RECEIVED, HIS COMPENSATION SHALL BE
14 EXPRESSED AS A REASONABLE ESTIMATE OF THE PERCENTAGE OF THE
15 GROSS REVENUE, AND THE CONTRACT SHALL CLEARLY DISCLOSE THE
16 ASSUMPTIONS UPON WHICH THE ESTIMATE IS BASED. THE STATED
17 ASSUMPTIONS SHALL BE BASED UPON ALL OF THE RELEVANT FACTS
18 KNOWN TO THE PROFESSIONAL SOLICITOR REGARDING THE
19 SOLICITATION TO BE CONDUCTED BY THE PROFESSIONAL SOLICITOR.
20 [(5)] (6) THE EFFECTIVE AND TERMINATION DATES OF THE
21 CONTRACT AND THE DATE SOLICITATION ACTIVITY IS TO COMMENCE
22 WITHIN THIS COMMONWEALTH.
23 [(6)] (7) ANY OTHER INFORMATION REQUIRED BY THE
24 REGULATIONS OF THE DEPARTMENT.
25 (G) DEPARTMENT REVIEW OF CONTRACT.--THE DEPARTMENT SHALL
26 EXAMINE EACH CONTRACT AND SOLICITATION NOTICE FILED BY A
27 PROFESSIONAL SOLICITOR AND SHALL DETERMINE WHETHER THE CONTRACT
28 AND NOTICE CONTAIN THE REQUIRED INFORMATION. IF THE DEPARTMENT
29 DETERMINES THAT THE REQUIREMENTS ARE NOT SATISFIED, THE
30 DEPARTMENT MUST NOTIFY THE PROFESSIONAL SOLICITOR WITHIN TEN
19910H1852B3646 - 18 -
1 WORKING DAYS OF ITS RECEIPT OF THE CONTRACT AND NOTICE;
2 OTHERWISE THE CONTRACT AND NOTICE ARE DEEMED TO BE APPROVED.
3 WITHIN SEVEN DAYS AFTER RECEIPT OF A NOTIFICATION THAT THE
4 REQUIREMENTS ARE NOT SATISFIED, THE PROFESSIONAL SOLICITOR MAY
5 REQUEST A HEARING. THE HEARING MUST BE HELD WITHIN SEVEN DAYS OF
6 RECEIPT OF THE REQUEST, AND A DETERMINATION MUST BE RENDERED
7 WITHIN THREE WORKING DAYS OF THE HEARING.
8 (H) REQUIRED DISCLOSURES.--PRIOR TO ORALLY REQUESTING A
9 CONTRIBUTION OR CONTEMPORANEOUSLY WITH A WRITTEN REQUEST FOR A
10 CONTRIBUTION, A PROFESSIONAL SOLICITOR SHALL BE RESPONSIBLE FOR
11 CLEARLY AND CONSPICUOUSLY DISCLOSING:
12 (1) THE NAME OF THE PROFESSIONAL SOLICITOR AS ON FILE
13 WITH THE DEPARTMENT AND THAT THE SOLICITATION IS BEING
14 CONDUCTED BY A PROFESSIONAL SOLICITOR WHO IS BEING PAID FOR
15 HIS SERVICES.
16 (2) IF THE INDIVIDUAL ACTING ON BEHALF OF THE
17 PROFESSIONAL SOLICITOR IDENTIFIES HIMSELF BY NAME, THE
18 INDIVIDUAL'S LEGAL NAME.
19 (3) THE LEGAL NAME OF THE CHARITABLE ORGANIZATION AS
20 REGISTERED WITH THE DEPARTMENT AND A DESCRIPTION OF HOW THE
21 CONTRIBUTIONS RAISED BY THE SOLICITATION WILL BE UTILIZED FOR
22 A CHARITABLE PURPOSE OR, IF THERE IS NO CHARITABLE
23 ORGANIZATION, A DESCRIPTION AS TO HOW THE CONTRIBUTIONS
24 RAISED BY THE SOLICITATION WILL BE UTILIZED FOR A CHARITABLE
25 PURPOSE.
26 (I) RESPONSES.--ANY RESPONSES GIVEN BY OR ON BEHALF OF A
27 PROFESSIONAL SOLICITOR TO AN ORAL OR WRITTEN REQUEST FOR
28 INFORMATION SHALL BE TRUTHFUL.
29 (J) INFORMATION ON DISCLOSURE.--IN THE CASE OF A
30 SOLICITATION CAMPAIGN CONDUCTED ORALLY, WHETHER BY TELEPHONE OR
19910H1852B3646 - 19 -
1 OTHERWISE, ANY WRITTEN CONFIRMATION [OR] RECEIPT [OR], AND
2 REMINDER SENT TO ANY PERSON WHO HAS CONTRIBUTED OR HAS PLEDGED
3 TO CONTRIBUTE SHALL INCLUDE A CLEAR AND CONSPICUOUS DISCLOSURE
4 OF THE INFORMATION REQUIRED BY SUBSECTION (H).
5 (K) NOTICE.--IN ADDITION TO THE INFORMATION REQUIRED BY
6 SUBSECTION (J), ANY WRITTEN CONFIRMATION, RECEIPT [OR], AND
7 REMINDER OF A CONTRIBUTION MADE PURSUANT TO AN ORAL SOLICITATION
8 AND ANY WRITTEN SOLICITATION SHALL CONSPICUOUSLY STATE VERBATIM:
9 [A COPY OF THE] THE OFFICIAL REGISTRATION AND FINANCIAL
10 INFORMATION OF (INSERT THE LEGAL NAME OF THE CHARITY AS
11 REGISTERED WITH THE DEPARTMENT) MAY BE OBTAINED FROM THE
12 PENNSYLVANIA DEPARTMENT OF STATE BY CALLING TOLL FREE,
13 WITHIN PENNSYLVANIA, 1 (800) 000-0000. REGISTRATION DOES
14 NOT IMPLY ENDORSEMENT.
15 (L) FINANCIAL REPORTS.--WITHIN 90 DAYS AFTER A SOLICITATION
16 CAMPAIGN OR EVENT HAS BEEN COMPLETED AND ON THE ANNIVERSARY OF
17 THE COMMENCEMENT OF A SOLICITATION CAMPAIGN LASTING MORE THAN
18 ONE YEAR, A PROFESSIONAL SOLICITOR SHALL FILE WITH THE
19 DEPARTMENT A FINANCIAL REPORT FOR THE CAMPAIGN, INCLUDING GROSS
20 REVENUE AND AN ITEMIZATION OF ALL EXPENSES INCURRED. THIS REPORT
21 SHALL BE SIGNED AND SWORN TO BY THE AUTHORIZED CONTRACTING AGENT
22 FOR THE PROFESSIONAL SOLICITOR AND TWO AUTHORIZED OFFICIALS OF
23 THE 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.
19910H1852B3646 - 20 -
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] WHICH SHALL BE IN THE NAME OF THE
26 CHARITABLE ORGANIZATION [WITH WHOM THE PROFESSIONAL SOLICITOR
27 HAS CONTRACTED, AND THE CHARITABLE ORGANIZATION SHALL HAVE SOLE
28 CONTROL OVER ALL WITHDRAWALS FROM THE ACCOUNT]. THE CHARITABLE
29 ORGANIZATION SHALL MAINTAIN AND ADMINISTER THE ACCOUNT AND SHALL
30 HAVE SOLE CONTROL OF ALL WITHDRAWALS.
19910H1852B3646 - 21 -
1 (P) UPDATING OF INFORMATION.--ANY MATERIAL CHANGE IN ANY
2 INFORMATION FILED WITH THE DEPARTMENT PURSUANT TO THIS SECTION
3 SHALL BE REPORTED IN WRITING BY THE PROFESSIONAL SOLICITOR TO
4 THE DEPARTMENT NOT MORE THAN SEVEN DAYS AFTER SUCH CHANGE
5 OCCURS.
6 (Q) RESTRICTIONS.--
7 (1) NO PERSON MAY ACT AS A PROFESSIONAL SOLICITOR IF
8 SUCH PERSON, ANY OFFICER OR DIRECTOR THEREOF, ANY PERSON WITH
9 A CONTROLLING INTEREST THEREIN, OR ANY PERSON THE
10 PROFESSIONAL SOLICITOR EMPLOYS, ENGAGES OR PROCURES TO
11 SOLICIT FOR COMPENSATION, HAS BEEN CONVICTED BY A COURT OF
12 ANY STATE OR THE UNITED STATES OF ANY FELONY, OR OF ANY
13 MISDEMEANOR INVOLVING DISHONESTY OR ARISING FROM THE CONDUCT
14 OF A SOLICITATION FOR A CHARITABLE ORGANIZATION OR PURPOSE.
15 (2) A PROFESSIONAL SOLICITOR SHALL NOT SOLICIT IN THIS
16 COMMONWEALTH ON BEHALF OF A CHARITABLE ORGANIZATION UNLESS
17 THAT CHARITABLE ORGANIZATION IS REGISTERED, OR IS EXEMPT FROM
18 REGISTRATION, WITH THE DEPARTMENT.
19 SECTION 10. CONTRACTS VOIDABLE BY CHARITABLE ORGANIZATIONS.
20 * * *
21 (C) MANNER OF CANCELLATION.--A CHARITABLE ORGANIZATION MAY
22 CANCEL A CONTRACT PURSUANT TO SUBSECTION (B) BY SERVING A
23 WRITTEN NOTICE OF CANCELLATION ON THE PROFESSIONAL FUNDRAISING
24 COUNSEL OR PROFESSIONAL SOLICITOR. IF MAILED, SERVICE SHALL BE
25 BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, AND CANCELLATION
26 SHALL BE DEEMED EFFECTIVE [WHEN DEPOSITED WITH THE UNITED STATES
27 POSTAL SERVICE, PROPERLY ADDRESSED AND POSTAGE PREPAID] UPON
28 RECEIPT BY THE PROFESSIONAL FUNDRAISING COUNSEL OR PROFESSIONAL
29 SOLICITOR. THE NOTICE SHALL BE SUFFICIENT IF IT INDICATES THAT
30 THE CHARITABLE ORGANIZATION DOES NOT INTEND TO BE BOUND BY THE
19910H1852B3646 - 22 -
1 CONTRACT.
2 * * *
3 (E) STATUS OF FUNDS AFTER CANCELLATION.--ANY FUNDS COLLECTED
4 AFTER EFFECTIVE NOTICE THAT A CONTRACT HAS BEEN CANCELED SHALL
5 BE DEEMED TO BE HELD IN TRUST FOR THE BENEFIT OF THE CHARITABLE
6 ORGANIZATION WITHOUT DEDUCTION FOR COST OR EXPENSES OF ANY
7 NATURE. A CHARITABLE ORGANIZATION SHALL BE ENTITLED TO RECOVER
8 ALL FUNDS COLLECTED AFTER THE DATE OF CANCELLATION.
9 SECTION 6. SECTION 13(B)(1) AND (C) OF THE ACT ARE AMENDED
10 AND THE SECTION IS AMENDED BY ADDING A SUBSECTION TO READ:
11 SECTION 13. LIMITATION ON ACTIVITIES OF CHARITABLE
12 ORGANIZATIONS; DISCLOSURE REQUIREMENTS.
13 * * *
14 (B) SOLICITATION DISCLOSURES.--A CHARITABLE ORGANIZATION
15 SOLICITING IN THIS COMMONWEALTH SHALL INCLUDE ALL OF THE
16 FOLLOWING DISCLOSURES AT THE POINT OF SOLICITATION:
17 (1) ITS [IDENTITY] LEGAL NAME AS REGISTERED WITH THE
18 DEPARTMENT AND LOCATION AND, IF DIFFERENT, THE LEGAL NAME AND
19 ADDRESS OF THE CHARITABLE ORGANIZATION AS REGISTERED WITH THE
20 DEPARTMENT ON WHOSE BEHALF THE SOLICITATION IS BEING
21 CONDUCTED. ANY USE OF A PROJECT OR PROGRAM NAME IN A
22 SOLICITATION MUST BE IMMEDIATELY FOLLOWED BY A DISCLOSURE OF
23 THE LEGAL NAME OF THE CHARITABLE ORGANIZATION AS REGISTERED.
24 * * *
25 (C) NOTICE ON PRINTED SOLICITATION.--ON EVERY PRINTED
26 SOLICITATION OR WRITTEN CONFIRMATION, RECEIPT OR REMINDER OF A
27 CONTRIBUTION, THE FOLLOWING STATEMENT MUST BE CONSPICUOUSLY
28 PRINTED VERBATIM:
29 [A COPY OF THE] THE OFFICIAL REGISTRATION AND FINANCIAL
30 INFORMATION OF (INSERT THE LEGAL NAME OF THE CHARITY AS
19910H1852B3646 - 23 -
1 REGISTERED WITH THE DEPARTMENT) MAY BE OBTAINED FROM THE
2 PENNSYLVANIA DEPARTMENT OF STATE BY CALLING TOLL FREE,
3 WITHIN PENNSYLVANIA, 1 (800) 000-0000. REGISTRATION DOES
4 NOT IMPLY ENDORSEMENT.
5 * * *
6 (H) DEPOSIT OF CONTRIBUTIONS.--EACH CONTRIBUTION IN THE
7 CONTROL OR CUSTODY OF THE PROFESSIONAL SOLICITOR SHALL, IN ITS
8 ENTIRETY AND WITHIN FIVE DAYS OF ITS RECEIPT, BE DEPOSITED,
9 MAINTAINED AND ADMINISTERED IN AN ACCOUNT AT A BANK OR OTHER
10 FEDERALLY INSURED FINANCIAL INSTITUTION WHICH SHALL BE IN THE
11 NAME OF THE CHARITABLE ORGANIZATION AND OVER WHICH THAT
12 CHARITABLE ORGANIZATION SHALL HAVE SOLE CONTROL OF ALL
13 WITHDRAWALS.
14 SECTION 7. SECTION 15(A)(8) AND (10) OF THE ACT ARE AMENDED
15 TO READ:
16 SECTION 15. PROHIBITED ACTS.
17 (A) GENERAL RULE.--REGARDLESS OF A PERSON'S INTENT OR THE
18 LACK OF INJURY, THE FOLLOWING ACTS AND PRACTICES ARE PROHIBITED
19 IN THE PLANNING, CONDUCT OR EXECUTION OF ANY SOLICITATION OR
20 CHARITABLE SALES PROMOTION:
21 * * *
22 (8) UTILIZING OR EXPLOITING THE FACT OF REGISTRATION SO
23 AS TO LEAD ANY PERSON TO BELIEVE THAT SUCH REGISTRATION IN
24 ANY MANNER CONSTITUTES AN ENDORSEMENT OR APPROVAL BY THE
25 COMMONWEALTH. THE USE OF THE FOLLOWING STATEMENT SHALL NOT BE
26 DEEMED A PROHIBITED EXPLOITATION:
27 [A COPY OF THE] THE OFFICIAL REGISTRATION AND FINANCIAL
28 INFORMATION OF (INSERT THE LEGAL NAME OF THE CHARITY AS
29 REGISTERED WITH THE DEPARTMENT) MAY BE OBTAINED FROM THE
30 PENNSYLVANIA DEPARTMENT OF STATE BY CALLING TOLL FREE,
19910H1852B3646 - 24 -
1 WITHIN PENNSYLVANIA, 1 (800) 000-0000. REGISTRATION DOES
2 NOT IMPLY ENDORSEMENT.
3 * * *
4 (10) WITH RESPECT TO SOLICITATIONS BY [OR] PROFESSIONAL
5 SOLICITORS ON BEHALF OF LAW ENFORCEMENT PERSONNEL,
6 FIREFIGHTERS OR OTHER PERSONS WHO PROTECT THE PUBLIC SAFETY,
7 ISSUING, OFFERING, GIVING, DELIVERING OR DISTRIBUTING ANY
8 HONORARY MEMBERSHIP CARDS, COURTESY CARDS OR SIMILAR CARDS,
9 OR ANY STICKERS, EMBLEMS, PLATES OR OTHER SUCH ITEMS WHICH
10 COULD BE USED FOR DISPLAY ON A MOTOR VEHICLE.
11 * * *
12 SECTION 8. THIS ACT SHALL TAKE EFFECT AS FOLLOWS:
13 (1) THE AMENDMENT OF SECTIONS 9(K), 13(C) AND 15(A)(8)
14 OF THE ACT SHALL TAKE EFFECT JANUARY 1, 1993.
15 (2) THE REMAINDER OF THIS ACT SHALL TAKE EFFECT
16 IMMEDIATELY.
F27L10PJP/19910H1852B3646 - 25 -