PRINTER'S NO. 1663
No. 1411 Session of 1991
INTRODUCED BY SHAFFER, NOVEMBER 12, 1991
REFERRED TO STATE GOVERNMENT, NOVEMBER 12, 1991
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," requiring professional
8 fundraising counsel and professional solicitors to notify
9 certain charitable organizations of the registration
10 requirements.
11 The General Assembly of the Commonwealth of Pennsylvania
12 hereby enacts as follows:
13 Section 1. Sections 8, 9(a) and (f) and 17 of the act of
14 December 19, 1990 (P.L.1200, No.202), known as the Solicitation
15 of Funds for Charitable Purposes Act, are amended to read:
16 Section 8. Registration of professional fundraising counsel and
17 contracts.
18 (a) Registration and approval required.--No person shall act
19 as a professional fundraising counsel before obtaining
20 department approval of a registration statement pursuant to
21 subsection (c) or after the expiration, suspension or revocation
1 of such registration. A registration application shall be signed
2 and sworn to by the principal officer of the professional
3 fundraising counsel and shall contain all of the following
4 information:
5 (1) The address of the principal place of business of
6 the applicant and any Pennsylvania addresses, if the
7 principal place of business is located outside this
8 Commonwealth.
9 (2) The form of the applicant's business.
10 (3) The names and residence addresses of all principals
11 of the applicant, including all officers, directors and
12 owners.
13 (4) Whether any of the owners, directors, officers or
14 employees of the applicant are related by blood, marriage or
15 adoption to any other directors, officers, owners or
16 employees of the applicant, any officer, director, trustee or
17 employee of any charitable organization under contract to the
18 applicant or any supplier or vendor providing goods or
19 services to any charitable organization under contract to the
20 applicant.
21 (5) The name of any person who is in charge of any
22 solicitation activity.
23 (6) An acknowledgement of the professional fundraising
24 counsel's duty to notify all charitable organizations with
25 whom the professional fundraising counsel contracts of the
26 registration requirements of this act.
27 (b) Registration fee.--The application for registration
28 shall be accompanied by a fee of $100. A professional
29 fundraising counsel which is a partnership or corporation may
30 register for and pay a single fee on behalf of all of its
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1 partners, members, officers, directors, agents and employees.
2 Each registration shall be valid for one year and may be renewed
3 for additional one-year periods upon application to the
4 department and payment of the registration fee.
5 (c) Department review of registration statement.--The
6 department shall examine each registration statement and
7 supporting documents filed by a professional fundraising counsel
8 and shall determine whether the registration requirements are
9 satisfied. If the department determines that the registration
10 requirements are not satisfied, the department must notify the
11 professional fundraising counsel within ten working days of its
12 receipt of its registration statement; otherwise the
13 registration statement is deemed to be approved. Within seven
14 days after receipt of a notification that the registration
15 requirements are not satisfied, the professional fundraising
16 counsel may request a hearing. The hearing must be held within
17 seven days of receipt of the request, and a determination must
18 be rendered within three working days of the hearing.
19 (d) Written contract.--There shall be a written contract
20 between a charitable organization and a professional fundraising
21 counsel which shall be filed by the professional fundraising
22 counsel with the department at least ten working days prior to
23 the performance by the professional fundraising counsel of any
24 service. No solicitation pursuant to the contract shall begin
25 before the department has approved the contract pursuant to
26 subsection (e). The contract must be signed by two authorized
27 officials of the charitable organization, one of whom must be a
28 member of the organization's governing body, and the authorized
29 contracting officer for the professional fundraising counsel.
30 The contract shall contain all of the following provisions:
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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 fundraising counsel and the charitable
5 organization.
6 (3) A clear statement of the fees which will be paid to
7 the professional fundraising counsel.
8 (4) The effective and termination dates.
9 (5) A statement that the professional fundraising
10 counsel will not at any time have custody of contributions.
11 (6) A statement that the professional fundraising
12 counsel has notified the charitable organization of the
13 registration requirements of this act.
14 [(6)] (7) Any other information required by the
15 regulations of the department.
16 (e) Department review of contract.--The department shall
17 examine each contract filed by a professional fundraising
18 counsel and shall determine whether the contract contains the
19 required information. If the department determines that the
20 requirements are not satisfied, the department must notify the
21 professional fundraising counsel within ten working days of its
22 receipt of the contract; otherwise the contract is deemed to be
23 approved. Within seven days after receipt of a notification that
24 the requirements are not satisfied, the professional fundraising
25 counsel may request a hearing. The hearing must be held within
26 seven days of receipt of the request, and a determination must
27 be rendered within three working days of the hearing.
28 Section 9. Registration of professional solicitors; contract
29 and disclosure requirements; bonds; records;
30 books.
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1 (a) Registration and approval required.--No person shall act
2 as a professional solicitor before obtaining department approval
3 of a registration statement pursuant to subsection (d) or after
4 the expiration, suspension or revocation of such registration. A
5 registration application shall be signed and sworn to by the
6 principal officer of the professional solicitor, and shall
7 contain all of the following information:
8 (1) The address of the principal place of business of
9 the applicant and any Pennsylvania addresses, if the
10 principal place of business is located outside this
11 Commonwealth.
12 (2) The form of the applicant's business.
13 (3) The names and residence addresses of all principals
14 of the applicant, including all officers, directors and
15 owners.
16 (4) Whether any of the owners, directors, officers or
17 employees of the applicant are related by blood, marriage or
18 adoption to any other directors, officers, owners or
19 employees of the applicant, any officer, director, trustee or
20 employee of any charitable organization under contract to the
21 applicant or any supplier or vendor providing goods or
22 services to any charitable organization under contract to the
23 applicant.
24 (5) The name of all persons in charge of any
25 solicitation activity.
26 (6) An acknowledgement of the professional solicitor's
27 duty to notify all charitable organizations with whom the
28 professional solicitor contracts of the registration
29 requirements of this act.
30 * * *
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1 (f) Written contract.--There shall be a written contract
2 between a professional solicitor and a charitable organization
3 for each solicitation campaign which shall be signed by two
4 authorized officials of the charitable organization, one of whom
5 must be a member of the organization's governing body, and the
6 authorized contracting officer for the professional solicitor
7 and which shall contain all of the following provisions:
8 (1) A statement of the charitable purpose for which the
9 solicitation campaign is being conducted.
10 (2) A statement of the respective obligations of the
11 professional solicitor and the charitable organization.
12 (3) A statement of the guaranteed minimum percentage of
13 the gross receipts from contributions which will be remitted
14 to the charitable organization, if any, or, if the
15 solicitation involves the sale of goods, services or tickets
16 to a fundraising event, the percentage of the purchase price
17 which will be remitted to the charitable organization, if
18 any. Any stated percentage shall exclude any amount which the
19 charitable organization is to pay as fundraising costs.
20 (4) A statement of the percentage of the gross revenue
21 which the professional solicitor will be compensated. If the
22 compensation of the professional solicitor is not contingent
23 upon the number of contributions or the amount of revenue
24 received, his compensation shall be expressed as a reasonable
25 estimate of the percentage of the gross revenue, and the
26 contract shall clearly disclose the assumptions upon which
27 the estimate is based. The stated assumptions shall be based
28 upon all of the relevant facts known to the professional
29 solicitor regarding the solicitation to be conducted by the
30 professional solicitor.
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1 (5) The effective and termination dates of the contract.
2 (6) A statement that the professional solicitor has
3 notified the charitable organization of the registration
4 requirements of this act.
5 [(6)] (7) Any other information required by the
6 regulations of the department.
7 * * *
8 Section 17. Administrative enforcement and penalties.
9 (a) General rule.--The secretary may refuse to register or
10 revoke or suspend the registration of any charitable
11 organization, professional fundraising counsel or professional
12 solicitor whenever he finds that a charitable organization,
13 professional fundraising counsel or professional solicitor, or
14 an agent, servant or employee thereof:
15 (1) Has violated or is operating in violation of any of
16 the provisions of this act, the regulations of the
17 department, or an order issued by the secretary.
18 (2) Has refused or failed or any of its principal
19 officers has refused or failed, after notice, to produce any
20 records of such organization or to disclose any information
21 required to be disclosed under this act or the regulations of
22 the department.
23 (3) Has made a material false statement in an
24 application, statement or report required to be filed under
25 this act.
26 (b) Additional actions.--When the secretary finds that the
27 registration of any person may be refused, suspended or revoked
28 under the terms of subsection (a), the secretary may:
29 (1) Revoke a grant of exemption to any of the provisions
30 of this act.
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1 (2) Issue an order directing that the person cease and
2 desist specified fundraising activities.
3 (3) Impose an administrative fine not to exceed $1,000
4 for each act or omission which constitutes a violation of
5 this act and an additional penalty, not to exceed $100 for
6 each day during which such violation continues. Registration
7 will be automatically suspended upon final affirmation of an
8 administrative fine until the fine is paid or until the
9 normal expiration date of the registration. No registration
10 shall be renewed until the fine is paid.
11 (4) Place the registrant on probation for such period of
12 time and subject to such conditions as he may decide.
13 (b.1) Additional penalties.--When the secretary finds that a
14 professional fundraising counsel or professional solicitor, or
15 an agent, servant or employee thereof, has failed to notify a
16 charitable organization of the registration requirements of this
17 act, the secretary shall issue an order directing the
18 professional fundraising counsel or professional solicitor to
19 pay the charitable organization's annual registration fee. This
20 penalty shall be in addition to other penalties provided for in
21 this act.
22 (c) Administrative procedures.--All actions of the secretary
23 shall be taken subject to the right of notice, hearing and
24 adjudication and the right of appeal therefrom in accordance
25 with Title 2 of the Pennsylvania Consolidated Statutes (relating
26 to administrative law and procedure).
27 Section 2. This act shall take effect immediately.
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