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Enrolled Bill Summary

Enrolled Bill Summary

Legislative Session: 75(R)

SENATE BILL 1581

SENATE AUTHOR: Carona

EFFECTIVE: 9-1-97

HOUSE SPONSOR: Hartnett

            Senate Bill 1581 establishes registration and reporting requirements for charitable organizations that engage in telephone solicitation for purposes relating to law enforcement. The act requires the charities to register with the attorney general and provide certain information, including the name and address of each commercial telephone solicitor employed by a charity, the amount paid to solicitors, total contributions received, and total fund-raising costs. The act sets a maximum fee of $50 for filing the original registration statements and for renewals and requires solicitors to post a surety bond in the amount of $50,000 with the secretary of state. Charities are required to retain books and records for three years and to make them available to the attorney general on request. In addition, the act authorizes the attorney general to seek injunctive relief, cancellation or suspension of registration, a restraining order, and civil penalties for violations of the act. Remedies are in addition to others provided by statutory or common law.

            In addition, the act requires charities and telephone solicitors that pay less than 90 percent of contributions to a charitable organization to disclose the actual percentage paid before accepting contributions. The act prohibits a person from committing an unfair or deceptive act in soliciting contributions and from representing that a solicitation is for the benefit of survivors of law enforcement officers killed in the line of duty unless 100 percent of the contribution is used for survivors or the actual percentage used is disclosed in writing to the person making the contribution. Telephone calls to solicit contributions are restricted to 9 a.m. to 7 p.m. Monday through Friday.