Amend on third reading SB 1581, as amended on second reading,
as follows:
(1) In the section of the bill entitled REGISTRATION, in
Subsection (a), strike "voluntarily".
(2) In the section of the bill entitled REGISTRATION, in
Subsection (b), strike "that registers with the attorney general".
(3) In the section of the bill entitled REGISTRATION, add
Subsection (f) to read as follows:
(f) A volunteer that has been authorized to solicit on
behalf of a charitable organization is not required to register
under this Act.
(4) In the section of the bill entitled RECORDKEEPING; AUDIT
POWERS OF ATTORNEY GENERAL, in Subsection (a), strike "that files"
and substitute "required to file".
(5) In the section of the bill entitled RECORDKEEPING; AUDIT
POWERS OF ATTORNEY GENERAL, in Subsection (a), strike "filed with
the attorney general" and substitute "required by this Act".
(6) Insert the following appropriately numbered sections:
SECTION ____. DEFINITIONS. In this Act:
(1) "Charitable organization" means a person, other
than a governmental law enforcement agency or organization, who
solicits contributions or funds and is or holds himself, herself,
or itself out to be established or operating for a charibable
purpose relating to law enforcement, including nongovernmental law
enforcement organizations, nongovernmental law enforcement
publications, and survivors of law enforcement officers who are
killed in the line of duty.
(2) "Commercial telephone solicitor" means a person
who is retained by a charitable organization to solicit
contributions or funds by telephone, whether done individually or
through another person under the direction of the commercial
telephone solicitor. Ther term does not include a bona fide
employee, officer, director, or volunteer of a charitable
organization.
(3) "Contribution" means the promise to give or the
gift of money, credit, property, financial assistance, or other
thing of any kind or value, except volunteer services. The term
does not include bona fide fees, dues, or assessments paid by
members if the membership is not conferred solely as consideration
for making a contribution in response to a telephone solicitation.
(4) "Knowingly" means with actual awareness, but
actual awareness may be inferred if objective manifestations
indicate that a person acted with actual awareness.
(5) "Person" means an individual, partnership,
corporation, association, or other legal entity.
(6) "Telephone solicitation" means the use of a
telephone to solicit another person to make a charitable
contribution to an organization.
SECTION ____. REGISTER TO BE MAINTAINTED. (a) The attorney
general shall establish and maintain a register of charibable
organizations subject to this Act.
(b) All documents required to be filed with the attorney
general under this Act are public information and shall be
available to the public under the open records law, Chapter 552,
Government Code, except those documents that identify the donors of
a charitable organization, which information is confidential and is
not subject to disclosure.
SECTION ____. BOND. A commercial telephone solicitor shall
post a surety bond with the secretary of state in the amount of
$50,000 issued by a surety company authorized to do business in
this state.
SECTION ____. NOTIFICATION OF NONCOMPLIANCE. (a) a
charitable organization that is not in compliance with this Act
shall be notified of noncompliance by the attorney general by first
class mail at the organization's last reported address.
Noncompliance includes failure to file any documents required by
this Act or the filing of incomplete or inaccurate documents.
(b) A charitable organization violates this Act if the
organization:
(1) fails to file complete documents within 30 days
after the date the notice required by Subsection (a) of this
section has been mailed; or
(2) knowingly files materially inaccurate documents.
SECTION ____. REGISTRATION DOES NOT IMPLY
ENDORSEMENT. Registration under this Act does not imply
endorsement by this state or the attorney general, and charitable
organizations are prohibited from stating or implying to the
contrary.
SECTION ____. REMEDIES. (a) The attorney general may
institute an action for failure to fully and accurately comply with
this Act and may obtain injunctive relief to restrain a person from
continuing a violation, cancellation or suspension of the
registration, an order restraining the person from doing business
in this state while violating this Act, a civil penalty of not more
than $25,000 per violation, or injunctive relief and a civil
penalty. A person who violates an injunction issued under this
section is liable to the state for civil penalty of not less than
$100,000.
(b) The remedies authorized by this Act are not exclusive
but are in addition to any other prodedure or remedy provided for
by other statutory or common law.
(c) In any proceeding successfully prosecuted by the
attorney general under this Act, the court may allow the attorney
general to recover civil penalties and the reasonable costs,
expenses, and attorney's fees incurred in bringing the suit.
SECTION ____. DEDICATION OF FEES AND CIVIL PENALTIES. In
addition to other money, all fees assessed under this Act and all
recovered expenses incurred in obtaining injunctive relief and
administrative and civil penalties authorized by this Act are
dedicated for use by the attorney general in enforcing and
administering this Act. Recovered expenses include investigative
costs, witness fees, attorney's fees, and deposition expenses.
SECTION ____. VENUE. An action under this Act shall be
brought in a court of competent jurisdiction in Travis County, in
the county which the charitable organization has its principal
place of business or has a fixed and established place of business
at the time the suit is brought, or in the county in which the
solicitation occurred.
SECTION ____. NOTICE TO CONTRIBUTORS; PROHIBITION. (a) If
less than 90 percent of the contributions or funds collected by a
charitable organization or commercial telephone solicitor are paid
by the charitable organization or commercial telephone solicitor to
a charitable organization, the commercial telephone solicitor shall
notify each person solicited by telephone, before accepting a
contribution or funds from the person, of the percentage of the
contributions or funds that will be paid to the organization for
which the contributions or funds are being solicited and the
percentage that will be retained by the solicitor. This information
shall also be included on any written statement mailed to the
contributor.
(b) A charitable organization or commercial telephone
solicitor may not make a telephone call to solicit contributions or
funds unless the call is made after 9 a.m. and before 7 p.m.,
Monday through Friday.
SECTION ____. PROHIBITED PRACTICES. (a) A person may not
commit an unfair or deceptive act or practice in the conduct of
solicitations for a charitable organization.
(b) A person may not represent to a person solicited that a
contribution is to be used to benefit the survivors of a law
enforcement officer killed in the line of duty unless:
(1) 100 percent of the contributions collected are
used to benefit those survivors; or
(2) the person solicited is informed in writing of the
exact percentage of the contribution that will directly benefit
those survivors.
SECTION ____. RULES. The attorney general may adopt rules,
procedures, and forms that are consistent with and necessary for
the proper administration and enforcement of this Act.
SECTION ____. TRANSITION. (a) The changes in law made by
this Act apply only to a solicitation that takes place on or after
the effective date of this Act. A solicitation that takes place
before the effective date of this Act is governed by law in effect
on the date of the solicitation, and the former law is continued in
effect for that purpose.
(b) A charitable organization engaging in telephone
solicitation in this state on the effective date of this Act that
is required to register under this Act shall file the
organization's initial registration statement required under that
section before January 1, 1998.
(7) Renumber the sections of the bill accordingly.