HOUSE BILL No. 4259


     February 11, 1999, Introduced by Rep. Law and referred to the Committee on Gaming and Casino Oversight.


        A bill to amend 1975 PA 169, entitled

   "Charitable organizations and solicitations act,"

   by amending the title and sections 2, 3, 4, 5, 6, 7, 8, 9, 10,

   11, 12, 13, 16, 17, 18, 20, 21, and 23 (MCL 400.272, 400.273,

   400.274, 400.275, 400.276, 400.277, 400.278, 400.279, 400.280,

   400.281, 400.282, 400.283, 400.286, 400.287, 400.288, 400.290,

   400.291, and 400.293), section 13 as amended by 1992 PA 299, and

   by adding sections 3a, 19, 19a, 19b, 19c, 19d, 22a, 23a, 23b, and

   23c; and to repeal acts and parts of acts.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1                                  TITLE

 2         An act to regulate organizations and persons soliciting or

 3    collecting contributions for charitable purposes; to require

 4    registration  ,  AND disclosure of information  and licensing 

 5    before solicitation of contributions; to provide for reporting of


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 1    financial and other information by those  licensed or  registered

 2    and those claiming exemption; to prescribe standards of conduct

 3    and administration, and to prohibit certain actions; to provide

 4    for enforcement, investigation, and promulgation of rules by the

 5    attorney general; to preempt local regulation; to provide penal-

 6    ties for violations; and to repeal  certain  acts and parts of

 7    acts.

 8         Sec. 2.  As used in this act:

 9         (a) "Charitable organization" means  a benevolent, educa-

10     tional, philanthropic, humane, patriotic, or eleemosynary organi-

11     zation of persons which solicits or obtains contributions solic-

12     ited from the public for charitable purposes.  A chapter, branch,

13     area office, or similar affiliate or person soliciting contribu-

14     tions within the state for a charitable organization which has

15     its principal place of business outside the state is a charitable

16     organization.  This definition does not include duly constituted

17     religious organizations or a group affiliated with and forming an

18     integral part of a religious organization no part of the net

19     income of which inures to the direct benefit of any individual if

20     it has received a declaration of current tax exempt status from

21     the United States.  The affiliated group shall not be required to

22     obtain a declaration if the parent or principal organization has

23     obtained tax exempt status.  Charitable organization does not

24     include a candidate or committee as defined in section 901 of Act

25     No. 116 of the Public Acts of 1954, being section 168.901 of the

26     Michigan Compiled Laws, or a political party qualified to be on

27     the general election ballot pursuant to section 560a of Act



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 1    No. 116 of the Public Acts of 1954, as added, being section

 2     168.560a of the Michigan Compiled Laws.  THE FOLLOWING:

 3         (i) A TAX EXEMPT ORGANIZATION UNDER SECTION 501(c)(3) OF THE

 4    INTERNAL REVENUE CODE OF 1986.

 5         (ii) A PERSON WHOSE PURPOSE, STRUCTURE, OR ACTIVITIES ARE

 6    DESCRIBED UNDER SECTION 501(c)(3) OF THE INTERNAL REVENUE CODE OF

 7    1986.

 8         (iii) CHARITABLE ORGANIZATION DOES NOT INCLUDE A FEDERAL,

 9    STATE, OR LOCAL UNIT OF GOVERNMENT, A SUBDIVISION, AGENCY, OR

10    INSTRUMENTALITY OF FEDERAL, STATE, OR LOCAL GOVERNMENT, OR A

11    RELIGIOUS ORGANIZATION INCORPORATED OR ESTABLISHED FOR RELIGIOUS

12    PURPOSES.

13         (iv) CHARITABLE ORGANIZATION DOES NOT INCLUDE ANY OF THE

14    FOLLOWING:

15         (A) A CANDIDATE, CANDIDATE COMMITTEE, OR COMMITTEE AS THOSE

16    TERMS ARE DEFINED IN SECTION 3 OF THE MICHIGAN CAMPAIGN FINANCE

17    ACT, 1976 PA 388, MCL 169.203.

18         (B) AN AUTHORIZED COMMITTEE, POLITICAL COMMITTEE, OR PRINCI-

19    PAL CAMPAIGN COMMITTEE AS THOSE TERMS ARE DEFINED IN SECTION 301

20    OF TITLE III OF THE FEDERAL ELECTION CAMPAIGN ACT OF 1971, PUBLIC

21    LAW 92-225, 2 U.S.C. 431.

22         (C) A POLITICAL PARTY AS DESCRIBED IN SECTION 560A OF THE

23    MICHIGAN ELECTION LAW, 1954 PA 116, MCL 168.560A.

24         (B) "CHARITABLE PURPOSE" MEANS THE FOLLOWING:

25         (i) A PURPOSE DESCRIBED IN SECTION 501(c)(3) OF THE INTERNAL

26    REVENUE CODE OF 1986.





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 1         (ii) A BENEVOLENT, PHILANTHROPIC, EDUCATIONAL, SCIENTIFIC,

 2    PUBLIC HEALTH, HUMANE, RELIGIOUS, OR OTHER ELEEMOSYNARY

 3    OBJECTIVE.

 4         (C) "CHARITABLE SALES PROMOTION" MEANS AN ADVERTISING OR

 5    SALES CAMPAIGN REPRESENTING THAT PROCEEDS FROM THE SALE OR USE OF

 6    THE GOODS OR SERVICES OFFERED WILL BENEFIT, IN WHOLE OR IN PART,

 7    A CHARITABLE ORGANIZATION OR CHARITABLE PURPOSE, OR THAT THE

 8    SELLER OR VENDOR WILL MAKE A PAYMENT TO A CHARITABLE ORGANIZATION

 9    OR FOR A CHARITABLE PURPOSE.

10         (D) "COMMERCIAL COVENTURER" MEANS A PERSON WHO CONDUCTS

11    CHARITABLE SALES PROMOTIONS.  A PERSON WHO ENTERS INTO A LICENS-

12    ING ARRANGEMENT IN WHICH A CHARITABLE ORGANIZATION ALLOWS THE

13    PERSON TO USE THE CHARITABLE ORGANIZATION'S NAME FOR A FEE IS A

14    COMMERCIAL COVENTURER.

15         (E)  (b)  "Contribution" means the promise, grant, or pay-

16    ment of money or property of any kind or value, including

17     promises  THE PROMISE to pay. , except payments by members of an

18     organization for membership fees, dues, fines, or assessments, or

19     for services rendered to individual members, if membership in the

20     organization confers a bona fide right, privilege, professional

21     standing, honor, or other direct benefit, other than the right to

22     vote, elect officers, or hold offices, and except money or prop-

23     erty received from a governmental authority or foundation

24     restricted as to use.  CONTRIBUTION INCLUDES THAT PORTION OF MEM-

25    BERSHIP FEES, DUES, OR ASSESSMENTS THAT EXCEED THE MONETARY VALUE

26    OF MEMBERSHIP BENEFITS AVAILABLE TO A DUES PAYER WHETHER OR NOT

27    THE MEMBERSHIP BENEFITS ARE USED, AND MEMBERSHIP FEES, DUES, OR



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 1    ASSESSMENTS THAT ARE PAID PRIMARILY TO SUPPORT THE CHARITABLE

 2    ORGANIZATION'S ACTIVITIES AND NOT TO OBTAIN BENEFITS OF MORE THAN

 3    NOMINAL MONETARY VALUE.  CONTRIBUTION DOES NOT INCLUDE ANY OF THE

 4    FOLLOWING:

 5         (i) A GRANT OR CONTRACT FROM ANY GOVERNMENTAL AGENCY OR A

 6    RESTRICTED GRANT FROM A FOUNDATION.

 7         (ii) ANY PORTION OF MEMBERSHIP DUES, FEES, OR ASSESSMENTS

 8    PAID TO A LABOR ORGANIZATION OR BARGAINING REPRESENTATIVE.  AS

 9    USED IN THIS SUBPARAGRAPH:

10         (A) "BARGAINING REPRESENTATIVE" MEANS THAT TERM AS DEFINED

11    IN SECTION 1 OF 1947 PA 336, MCL 423.201.

12         (B) "LABOR ORGANIZATION" MEANS THAT TERM AS DEFINED IN SEC-

13    TION 2 OF 1939 PA 176, MCL 423.2, OR SECTION 2 OF THE NATIONAL

14    LABOR RELATIONS ACT, CHAPTER 372, 49 STAT. 450, 29 U.S.C. 152.

15         (F)  (c)  "Person" means an individual, organization, group,

16    association, partnership, corporation, trust, or any combination

17    of them.

18         (G) "PROFESSIONAL FUND-RAISER" MEANS A PERSON, INCLUDING A

19    SUBCONTRACTOR, WHO FOR COMPENSATION OR OTHER CONSIDERATION CON-

20    DUCTS, MANAGES, OR CARRIES ON A DRIVE OR CAMPAIGN TO SOLICIT CON-

21    TRIBUTIONS FOR OR ON BEHALF OF A CHARITABLE ORGANIZATION, RELI-

22    GIOUS ORGANIZATION, OR ANY OTHER PERSON EXCEPT A PERSON DESCRIBED

23    IN SUBDIVISION (A)(iv); OR WHO ENGAGES IN THE BUSINESS OF OR

24    HOLDS HIMSELF OR HERSELF OUT AS INDEPENDENTLY ENGAGED IN THE

25    BUSINESS OF SOLICITING CONTRIBUTIONS FOR CHARITABLE PURPOSES.  A

26    BONA FIDE OFFICER OR EMPLOYEE OF A CHARITABLE ORGANIZATION, OR A

27    PERSON WHOSE SERVICE TO A CHARITABLE ORGANIZATION IS LIMITED TO



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 1    PROVIDING ADVICE, RESEARCH, OR WRITING IS NOT A PROFESSIONAL

 2    FUND-RAISER.

 3         (H) "SOLICIT" AND "SOLICITATION" MEAN THE FOLLOWING:

 4         (i) A DIRECT OR INDIRECT REQUEST FOR A CONTRIBUTION BASED ON

 5    THE REPRESENTATION THAT THE CONTRIBUTION WILL OR MAY BE USED FOR

 6    A CHARITABLE PURPOSE OR TO BENEFIT A CHARITABLE ORGANIZATION, AND

 7    INCLUDES ANY OF THE FOLLOWING METHODS OF SECURING CONTRIBUTIONS:

 8         (A) AN ORAL OR WRITTEN REQUEST.

 9         (B) DISTRIBUTING, CIRCULATING, MAILING, POSTING, OR PUBLISH-

10    ING A HANDBILL, WRITTEN ADVERTISEMENT, OR OTHER PUBLICATION THAT

11    DIRECTLY OR BY IMPLICATION SEEKS TO OBTAIN A CONTRIBUTION.

12         (C) AN ANNOUNCEMENT TO THE NEWS MEDIA, OR BY RADIO, TELEVI-

13    SION, TELEPHONE, TELEGRAPH, FACSIMILE, OR ANY OTHER COMMUNICATION

14    DEVICE, CONCERNING AN APPEAL OR CAMPAIGN FOR A CHARITABLE ORGANI-

15    ZATION OR PURPOSE.

16         (D) THE SALE, ATTEMPTED SALE, OR OFFER TO SELL AN ADVERTISE-

17    MENT, ADVERTISING SPACE, A BOOK, A COUPON, A MAGAZINE, A MEMBER-

18    SHIP, MERCHANDISE, A SUBSCRIPTION, A TICKET, OR OTHER ITEM IN

19    CONNECTION WITH A REQUEST FOR A CHARITABLE ORGANIZATION OR

20    PURPOSE.

21         (E) A RECEPTACLE FOR CONTRIBUTIONS, SUCH AS HONOR BOXES,

22    VENDING MACHINES, WISHING WELLS, OR CONTRIBUTION BOXES, WHERE A

23    CHARITABLE PURPOSE IS USED, REFERRED TO, OR IMPLIED AS AN INDUCE-

24    MENT TO MAKE A CONTRIBUTION OR PURCHASE.

25         (ii) A SOLICITATION OCCURS WHETHER OR NOT THE PERSON MAKING

26    THE SOLICITATION RECEIVES A CONTRIBUTION.  FOR PURPOSES OF THIS

27    ACT, A CHARITABLE ORGANIZATION IS CONSIDERED TO HAVE RECEIVED, IN



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 1    ADDITION TO CONTRIBUTIONS SOLICITED FROM THE PUBLIC BY IT,

 2    CONTRIBUTIONS SOLICITED FROM THE PUBLIC BY ANY OTHER PERSON AND

 3    TRANSFERRED TO THAT CHARITABLE ORGANIZATION.  A CHARITABLE ORGAN-

 4    IZATION THAT RECEIVES AN ALLOCATION FROM A COMMUNITY CHEST,

 5    UNITED FUND, OR SIMILAR ORGANIZATION IS CONSIDERED TO HAVE SOLIC-

 6    ITED THAT ALLOCATION FROM THE PUBLIC.

 7         (I)  (d)  "Soliciting material" means printed or similar

 8    material, including but not limited to labels, posters, televi-

 9    sion scripts, radio scripts, or recordings used in soliciting

10    funds from the public.

11         (J)  (e)  "Solicitor" means a person who solicits on behalf

12    of a charitable organization.

13          (f) "Professional fund raiser" means a person who for com-

14     pensation or other consideration plans, conducts, manages, or

15     carries on a drive or campaign of soliciting contributions for or

16     on behalf of a charitable organization, religious organization,

17     or any other person; or who engages in the business of or holds

18     himself out as independently engaged in the business of solicit-

19     ing contributions for such purposes.  A bona fide officer or

20     employee of a charitable organization is not a professional fund

21     raiser unless his salary or other compensation is computed on the

22     basis of funds to be raised or actually raised.

23          (g) "Professional solicitor" means a person who is employed

24     or retained for compensation by a professional fund raiser to

25     solicit contributions for charitable purposes.

26          (h) "Prohibited transaction" is that dealing, activity,

27     conduct, administration, or management of the charitable



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 1    organization or by any of its officers, trustees, personnel, or

 2     related persons which may be prohibited as constituting activity

 3     contrary to proper administration of the charitable organization

 4     or conduct of a fund raising campaign or solicitation by a pro-

 5     fessional fund raiser or solicitor. 

 6         (K) "VENDOR" MEANS A PERSON OTHER THAN A CHARITABLE ORGANI-

 7    ZATION WHO CONDUCTS CHARITABLE SALES OR SOLICITATION COMPAIGNS

 8    THROUGH VENDING MACHINES, HONOR BOXES, NOVELTY MACHINES, OR SIMI-

 9    LAR DEVICES, THAT REPRESENTS THAT IT BENEFITS A CHARITABLE ORGAN-

10    IZATION OR A CHARITABLE PURPOSE THROUGH A PORTION OF THE PRO-

11    CEEDS, A FIXED DOLLAR AMOUNT, OR ANY OTHER MANNER.

12         Sec. 3.  (1)  Before a solicitation, a  A charitable organi-

13    zation  which  THAT is not  an  exempt  organization and which is

14     not described in  FROM REGISTRATION AND REPORTING PURSUANT TO

15    section 13  , which  AND THAT solicits or intends to solicit or

16    receives or intends to receive contributions from persons by any

17    means  whatsoever,  shall  file  HAVE NOT LESS THAN 2 DIRECTORS,

18    TRUSTEES, OR MEMBERS AND SHALL REGISTER with the attorney general

19    upon forms prescribed by  him, an application for a license.  It 

20    THE ATTORNEY GENERAL, TOGETHER WITH ALL NECESSARY SUPPORTING

21    DOCUMENTATION.  THE REGISTRATION shall include the following

22    information:

23         (a) The name of the organization and  the  ANY name  under

24     which it intends  USED BY THAT ORGANIZATION to solicit

25    contributions.

26         (b) The  principal  address of the PRINCIPAL OFFICE OF THE

27    organization and the address of any office in this state.  If the



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 1    organization does not maintain a principal office, the name and

 2    address of the person having custody of its financial records.

 3          (c) The names and addresses of the officers, directors,

 4     trustees, chief executive officer, and state agent. 

 5         (C)  (d)  Where and when the organization was legally estab-

 6    lished  ,  AND the form of its organization.  , and its tax

 7     exempt status. 

 8         (D) THE ORGANIZATION'S FEDERAL TAX EXEMPT STATUS AND, WITH

 9    ITS INITIAL APPLICATION, A COPY OF ITS INTERNAL REVENUE SERVICE

10    DETERMINATION LETTER.

11         (e)  The  A STATEMENT OF THE ORGANIZATION'S purpose  for

12     which it is organized  and the purposes for which contributions

13    to be solicited will be used.

14         (f)  The fiscal year date of the organization  METHODS BY

15    WHICH SOLICITATIONS WILL BE MADE.

16         (g)  Whether the organization is or has ever been enjoined

17     from soliciting contributions  THE NAMES AND ADDRESSES OF ALL

18    PROFESSIONAL FUND-RAISERS WITH WHOM THE ORGANIZATION HAS

19    CONTRACTED.

20         (h)  All methods by which solicitations will be made  A LIST

21    OF THE NAMES AND ADDRESSES OF THE ORGANIZATION'S BOARD OF DIREC-

22    TORS, OFFICERS, AND TRUSTEES.

23         (i)  Copies of contracts between charitable organizations

24     and professional fund raisers relating to financial compensation

25     or profit to be derived by the professional fund raisers.  When

26     the contract is executed after filing of application statement, a

27     copy shall be filed within 10 days of the date of execution.  IF



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 1    THE PRINCIPAL OFFICE OF THE ORGANIZATION IS NOT IN THIS STATE,

 2    THE ADDRESS AND TELEPHONE NUMBER OF A RESIDENT AGENT IN THIS

 3    STATE.

 4         (j)  Other information as required by rule.  WHETHER THE

 5    ORGANIZATION OR ANY OF ITS OFFICERS, DIRECTORS, OR PRINCIPALS IS,

 6    OR HAS EVER BEEN, ENJOINED, FINED, CONVICTED, OR SUBJECT TO ANY

 7    OTHER SANCTION OR PENALTY AS A RESULT OF SOLICITING CONTRIBUTIONS

 8    IN ANY STATE OR COUNTRY, OR WHETHER SUCH PROCEEDINGS ARE

 9    PENDING.

10         (K) WHETHER AN OFFICER, DIRECTOR, OR EMPLOYEE OF THE CHARI-

11    TABLE ORGANIZATION OWNS A 10% OR GREATER INTEREST IN A PROFES-

12    SIONAL FUND-RAISER, OR IS AN AGENT OR CONTRACTOR FOR A PROFES-

13    SIONAL FUND-RAISER, DURING A PERIOD OF TIME WHEN THE PROFESSIONAL

14    FUND-RAISER IS UNDER CONTRACT WITH THE CHARITABLE ORGANIZATION TO

15    SOLICIT FUNDS.

16         (l) FINANCIAL INFORMATION NECESSARY FOR THE ATTORNEY GENERAL

17    TO PREPARE REPORTS FOR THE LEGISLATURE OR THE PUBLIC IF THE

18    INFORMATION IS NOT INCLUDED IN THE ORGANIZATION'S INTERNAL REVE-

19    NUE SERVICE FORM 990, 990EZ, OR 990PF, OR IF THE ORGANIZATION IS

20    NOT REQUIRED TO FILE AN INTERNAL REVENUE SERVICE FORM 990, 990EZ,

21    OR 990PF PURSUANT TO SUBSECTION (2).

22         (2) THE CHARITABLE ORGANIZATION SHALL PROVIDE THE FOLLOWING

23    DOCUMENTATION WITH ITS REGISTRATION:

24         (A) UNLESS THE ORGANIZATION HAS NOT COMPLETED ITS FIRST

25    ACCOUNTING PERIOD, A COPY OF ITS FULLY AND PROPERLY COMPLETED

26    INTERNAL REVENUE SERVICE FORM 990, 990EZ, OR 990PF FOR THE

27    IMMEDIATELY PRECEDING TAX YEAR, OR SUCCESSOR FORMS, INCLUDING ALL



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 1    SCHEDULES, ATTACHMENTS, AND EXHIBITS FILED WITH THE INTERNAL

 2    REVENUE SERVICE, EXCEPT THE SCHEDULE OF CONTRIBUTORS.  EXCEPT AS

 3    OTHERWISE PROVIDED IN THIS SUBSECTION, IF A CHARITABLE ORGANIZA-

 4    TION DOES NOT FILE AN INTERNAL REVENUE SERVICE FORM 990, 990EZ,

 5    OR 990PF, IT SHALL PREPARE A PRO FORMA FORM 990, 990EZ, OR 990PF

 6    RETURN FOR FILING WITH THE REGISTRATION.  A PRO FORMA RETURN

 7    SHALL BE COMPLETED FULLY AND PROPERLY PURSUANT TO INTERNAL REVE-

 8 NUE SERVICE INSTRUCTIONS AND SHALL INCLUDE ALL REQUIRED INFORMA-

 9    TION, ATTACHMENTS, SCHEDULES, AND EXHIBITS.  IF AN ORGANIZATION

10    IS NOT REQUIRED TO FILE FORM 990EZ WITH THE INTERNAL REVENUE

11    SERVICE BECAUSE OF INSUFFICIENT GROSS RECEIPTS, THAT ORGANIZATION

12    IS NOT REQUIRED TO INCLUDE THAT FORM OR A PRO FORMA RETURN WITH

13    ITS REGISTRATION.

14         (B) FINANCIAL STATEMENTS PREPARED ACCORDING TO GENERALLY

15    ACCEPTED ACCOUNTING PRINCIPLES THAT HAVE BEEN AUDITED BY AN INDE-

16    PENDENT CERTIFIED PUBLIC ACCOUNTANT IF THE AMOUNT OF CONTRIBU-

17    TIONS RECEIVED BY THE CHARITABLE ORGANIZATION DURING ITS FISCAL

18    YEAR REPORTED ON ITS FEDERAL TAX RETURN IS $250,000.00 OR MORE.

19    IF CONTRIBUTIONS AS REPORTED ON THE CHARITABLE ORGANIZATION'S

20    INTERNAL REVENUE SERVICE FORM 990, 990EZ, OR 990PF ARE

21    $100,000.00 OR MORE, BUT LESS THAN $250,000.00, FINANCIAL STATE-

22    MENTS EITHER REVIEWED OR AUDITED BY AN INDEPENDENT CERTIFIED

23    PUBLIC ACCOUNTANT SHALL BE PROVIDED.  THE AMOUNT OF CONTRIBUTIONS

24    RECEIVED BY THE ORGANIZATION INCLUDES DIRECT AND INDIRECT PUBLIC

25    SUPPORT AS SHOWN ON THE INTERNAL REVENUE SERVICE FORM 990, 990EZ,

26    OR 990PF, LESS ANY RESTRICTED GRANTS FROM FOUNDATIONS INCLUDED IN

27    THE FEDERAL TAX RETURN, PLUS NET SPECIAL FUND-RAISING EVENTS



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 1    REVENUE.  THE ATTORNEY GENERAL MAY WAIVE THIS REQUIREMENT 1 TIME

 2    FOR A CHARITABLE ORGANIZATION.

 3         (3) WITH ITS REGISTRATION, OR RENEWAL OF ITS REGISTRATION AS

 4    PROVIDED IN SECTION 7, A CHARITABLE ORGANIZATION SHALL PAY THE

 5    FOLLOWING REGISTRATION FEE:

 6         (A) IF GROSS RECEIPTS FROM ALL SOURCES WERE LESS THAN

 7    $25,000.00 IN THE FISCAL YEAR REPORTED ON THE REGISTRATION, THERE

 8    IS NO FEE.

 9         (B) IF GROSS RECEIPTS FROM ALL SOURCES WERE AT LEAST

10    $25,000.00 BUT LESS THAN $100,000.00 IN THE FISCAL YEAR REPORTED

11    ON THE REGISTRATION, $20.00.

12         (C) IF GROSS RECEIPTS FROM ALL SOURCES WERE AT LEAST

13    $100,000.00 BUT LESS THAN $500,000.00 IN THE FISCAL YEAR REPORTED

14    ON THE REGISTRATION, $50.00.

15         (D) IF GROSS RECEIPTS FROM ALL SOURCES WERE AT LEAST

16    $500,000.00 BUT LESS THAN $1,000.000.00 IN THE FISCAL YEAR

17    REPORTED ON THE REGISTRATION, $100.00.

18         (E) IF GROSS RECEIPTS FROM ALL SOURCES WERE $1,000,000.00 OR

19    MORE IN THE FISCAL YEAR REPORTED ON THE REGISTRATION, $200.00.

20         (F) A PARENT CHARITABLE ORGANIZATION REGISTERED UNDER THIS

21    ACT THAT IS THE PARENT CHARITABLE ORGANIZATION OF 1 OR MORE SUB-

22    SIDIARY CHARITABLE ORGANIZATIONS REQUIRED TO BE REGISTERED UNDER

23    THIS ACT THAT DO NOT MEET THE COMBINED REGISTRATION REQUIREMENTS

24    SET FORTH IN SECTION 9 MAY PAY 1 REGISTRATION FEE OF $300.00 FOR

25    ITSELF AND ALL OF ITS SUBSIDIARY CHARITABLE ORGANIZATIONS.  AS

26    USED IN THIS SUBDIVISION, "PARENT CHARITABLE ORGANIZATION" MEANS

27    AN ORGANIZATION THAT MEETS THE REQUIREMENTS FOR CONSOLIDATING



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 1    FINANCIAL STATEMENTS UNDER GENERALLY ACCEPTED ACCOUNTING

 2    PRINCIPLES.

 3         (4) A CHARITABLE ORGANIZATION'S REGISTRATION IS EFFECTIVE

 4    IMMEDIATELY UPON RECEIPT BY THE ATTORNEY GENERAL OF THE INFORMA-

 5    TION AND FEES REQUIRED UNDER THIS ACT.

 6         SEC. 3A.  (1) THE CHARITABLE ORGANIZATIONS AND SOLICITATIONS

 7    FUND IS CREATED WITHIN THE STATE TREASURY.

 8         (2) THE STATE TREASURER MAY RECEIVE MONEY OR OTHER ASSETS

 9    FOR DEPOSIT INTO THE CHARITABLE ORGANIZATIONS AND SOLICITATIONS

10    FUND FROM ANY OF THE FOLLOWING:

11         (A) REGISTRATION FEES COLLECTED UNDER THIS ACT.

12         (B) LATE REGISTRATION FEES COLLECTED UNDER THIS ACT.

13         (C) FINES AND PENALTIES ASSESSED AND COLLECTED UNDER THIS

14    ACT.

15         (D) ANY OTHER SOURCE.

16         (3) THE STATE TREASURER SHALL DIRECT THE INVESTMENT OF THE

17    CHARITABLE ORGANIZATIONS AND SOLICITATIONS FUND AND SHALL CREDIT

18    TO THE CHARITABLE ORGANIZATIONS AND SOLICITATIONS FUND INTEREST

19    AND EARNINGS FROM CHARITABLE ORGANIZATIONS AND SOLICITATIONS FUND

20    INVESTMENTS.

21         (4) MONEY IN THE CHARITABLE ORGANIZATIONS AND SOLICITATIONS

22    FUND AT THE CLOSE OF THE FISCAL YEAR SHALL REMAIN IN THE CHARITA-

23    BLE ORGANIZATIONS AND SOLICITATIONS FUND AND SHALL NOT LAPSE TO

24    THE GENERAL FUND.

25         (5) THE DEPARTMENT OF ATTORNEY GENERAL SHALL EXPEND MONEY

26    FROM THE CHARITABLE ORGANIZATIONS AND SOLICITATIONS FUND, UPON

27    APPROPRIATION, ONLY FOR THE ADMINISTRATION OF THIS ACT AND TO



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 1    GATHER AND PROVIDE THE PUBLIC WITH INFORMATION REGARDING PERSONS

 2    SUBJECT TO THIS ACT.  INFORMATION REGARDING PERSONS SUBJECT TO

 3    THIS ACT SHALL BE DISSEMINATED TO THE PUBLIC UNDER THE PLAN

 4    DEVELOPED PURSUANT TO SECTION 23B.

 5         Sec. 4.  (1)  True  A TRUE and correct  copies  COPY of  the

 6     contracts of  A CONTRACT WITH A professional  fund raisers 

 7    FUND-RAISER shall be kept on file in the offices of the charita-

 8    ble organization and the professional  fund raiser  FUND-RAISER

 9    during the term of  employment  THE CONTRACT and for 6 years

10     subsequent to the date  AFTER the solicitation of contributions

11    provided for  therein  IN THE CONTRACT actually terminates.

12         (2) Copies of A CONTRACT WITH A PROFESSIONAL FUND-RAISER,

13    VENDOR, OR COMMERCIAL COVENTURER AND all soliciting materials

14    shall be supplied TO THE ATTORNEY GENERAL upon request.  of the

15     attorney general. 

16         (3) A CHARITABLE ORGANIZATION SHALL TAKE REASONABLE STEPS TO

17    ENSURE THAT A PROFESSIONAL FUND-RAISER WITH WHOM IT HAS CON-

18    TRACTED TO SOLICIT FUNDS IN THIS STATE IS REGISTERED IN THIS

19    STATE AS A PROFESSIONAL FUND-RAISER.

20         Sec. 5.  (1)  An application  THE ATTORNEY GENERAL SHALL

21    REVIEW A REGISTRATION THAT IS SUBMITTED in proper form  and sup-

22     ported by material information  TOGETHER WITH THE DOCUMENTATION

23    AND REGISTRATION FEE required  shall be examined by the attorney

24     general  UNDER THIS ACT.  If the  application and  REGISTRATION,

25    supporting  material conforms  DOCUMENTATION, AND REGISTRATION

26    FEE CONFORM to the requirements of this act,  and the rules,  the

27    attorney general shall  issue a license to  REGISTER the



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 1    charitable organization,  within 30 days, except where 

 2    PROFESSIONAL FUND-RAISER, OR VENDOR UNLESS the CHARITABLE

 3    organization, PROFESSIONAL FUND-RAISER, OR VENDOR has

 4     materially  misrepresented or omitted  information  required

 5    DOCUMENTATION or the CHARITABLE organization, PROFESSIONAL

 6    FUND-RAISER, OR VENDOR has  acted  VIOLATED or is  acting in vio-

 7     lation of  VIOLATING this act or rules promulgated  hereunder 

 8    UNDER THIS ACT.

 9          (2) The license shall be without charge and issued to the

10     charitable organization, its agents and representatives for the

11     purpose of soliciting and receiving contributions and donations

12     or to sell memberships or otherwise raise moneys from the public

13     for the specified charitable purpose. 

14         (2)  (3) A license issued to a professional fund raiser,

15     professional solicitor, or a charitable organization, its agents

16     and representatives may be suspended or revoked by the  THE

17    attorney general MAY SUSPEND OR RESCIND THE REGISTRATION OF A

18    CHARITABLE ORGANIZATION, PROFESSIONAL FUND-RAISER, OR VENDOR AND

19    AN AGENT OR REPRESENTATIVE OF A CHARITABLE ORGANIZATION, PROFES-

20    SIONAL FUND-RAISER, OR VENDOR for violation of this act  or rules

21     promulgated hereunder,  after reasonable notice and opportunity

22    to be heard.  The attorney general may suspend on an emergency

23    basis, without hearing,  any license issued to a professional

24     fund raiser, professional solicitor, or a charitable organization

25     when  THE REGISTRATION OF A CHARITABLE ORGANIZATION, PROFESSIONAL

26    FUND-RAISER, OR VENDOR IF the attorney general specifies in the

27    notice of emergency suspension the reasons and grounds indicating



   00225'99
                                  16

 1    a violation of this act or  any  A rule  which  PROMULGATED UNDER

 2    THIS ACT THAT constitutes the emergency.  The notice shall set

 3    forth that within 48 hours, at a designated time and place, a

 4    hearing shall be held on whether the  license  REGISTRATION

 5    should be permanently suspended or  revoked  RESCINDED.  The

 6     professional fund raiser, professional solicitor, or  charitable

 7    organization, PROFESSIONAL FUND-RAISER, OR VENDOR may show com-

 8    pliance with  the requirements of  this act or the rules

 9    PROMULGATED UNDER THIS ACT and  shall have  HAS the burden of

10     adducing the evidence  PROOF IN ESTABLISHING THAT COMPLIANCE.

11         Sec. 6.  A charitable organization, PROFESSIONAL

12    FUND-RAISER, OR VENDOR shall notify the attorney general within

13    30 days of any change in the information required to be furnished

14    under  section 3  THIS ACT.  A report shall be filed and signed

15     by the president or other authorized officer and the chief fiscal

16     officer of the organization. 

17         Sec. 7.  (1)  The license of a charitable organization shall

18     expire 1 year after the date of issuance.  A charitable organiza-

19     tion desiring renewal of a license shall file with the attorney

20     general a renewal application and supporting information on or

21     before 30 days prior to the expiration date.  A REGISTERED CHARI-

22    TABLE ORGANIZATION SHALL REPORT ON ITS PREVIOUS FISCAL YEAR AND

23    RENEW ITS REGISTRATION WITHIN 6 MONTHS AFTER THE CLOSE OF ITS

24    FISCAL YEAR.  A RENEWAL REGISTRATION AND REPORT SHALL BE ON A

25    FORM PRESCRIBED BY THE ATTORNEY GENERAL AND SHALL INCLUDE THE

26    INFORMATION, SUPPORTING DOCUMENTATION, AND ANY FEE REQUIRED UNDER

27    THIS ACT.



   00225'99
                                  17

 1         (2) A CHARITABLE ORGANIZATION'S REGISTRATION SHALL EXPIRE IF

 2    THE CHARITABLE ORGANIZATION'S RENEWAL REGISTRATION AND REPORT IS

 3    NOT RECEIVED WITHIN 18 MONTHS AFTER THE END OF THE FISCAL YEAR

 4    REPORTED ON THE ORGANIZATION'S MOST RECENTLY FILED REGISTRATION

 5    FORM UNLESS THE ATTORNEY GENERAL HAS EXTENDED THE REGISTRATION

 6    UNDER SUBSECTION (4).

 7         (3) AN ORGANIZATION PREVIOUSLY REGISTERED UNDER THIS ACT

 8    THAT IS NO LONGER SUBJECT TO THE REGISTRATION REQUIREMENTS OF

 9    THIS ACT SHALL FILE A FINANCIAL REPORT WITHIN 6 MONTHS OF THE

10    CLOSE OF THE MOST RECENTLY COMPLETED FISCAL YEAR IN WHICH THE

11    ORGANIZATION SOLICITED IN THIS STATE UNLESS THE ATTORNEY GENERAL

12    HAS EXTENDED THE PERIOD OF TIME FOR FILING THE REPORT PURSUANT TO

13    SUBSECTION (4).  THE REPORT SHALL INCLUDE THE FINANCIAL INFORMA-

14    TION THAT WOULD BE REQUIRED TO RENEW THE ORGANIZATION'S REGISTRA-

15    TION AND ANY REPORTS ON SOLICITATION CAMPAIGNS CONDUCTED BY THE

16    CHARITABLE ORGANIZATION THROUGH A PROFESSIONAL FUND-RAISER AS

17    REQUIRED UNDER SECTION 17(5).

18         (4) IF A CHARITABLE ORGANIZATION RECEIVES AN EXTENSION OF

19    TIME TO FILE THE CHARITABLE ORGANIZATION'S INTERNAL REVENUE SERV-

20    ICE FORM 990, 990EZ, OR 990PF, THE ATTORNEY GENERAL SHALL EXTEND

21    THE CHARITABLE ORGANIZATION'S TIME FOR FILING THE REPORT REQUIRED

22    UNDER SUBSECTION (3) OR ITS REGISTRATION FOR A SIMILAR PERIOD OF

23    TIME.

24         Sec. 8.  (1)  Documents required to be filed with the attor-

25     ney general shall be open to public inspection.  Persons subject

26     to this act shall maintain accurate and detailed books and

27     records at the office of the resident agent or the principal



   00225'99
                                  18

 1    office which shall be open to inspection at all reasonable times

 2     by the attorney general or his authorized representative.  A REG-

 3    ISTRATION, ANNUAL REPORT, OR OTHER DOCUMENT REQUIRED TO BE FILED

 4    UNDER THIS ACT IS A PUBLIC RECORD IN THE OFFICE OF THE ATTORNEY

 5    GENERAL OPEN TO INSPECTION.

 6         (2) A CHARITABLE ORGANIZATION, PROFESSIONAL FUND-RAISER, OR

 7    VENDOR SHALL MAINTAIN, FOR NOT LESS THAN 3 YEARS FROM THE DATE

 8    PREPARED, ACCURATE AND DETAILED RECORDS TO PROVIDE THE INFORMA-

 9    TION REQUIRED UNDER THIS ACT.  ALL RECORDS ARE OPEN TO INSPECTION

10    AT ALL REASONABLE TIMES BY THE ATTORNEY GENERAL AND COPIES OF THE

11    RECORDS SHALL BE PROVIDED TO THE ATTORNEY GENERAL UPON REQUEST.

12         (3) A CHARITABLE ORGANIZATION OR PERSON, INCLUDING A VENDOR,

13    COMMERCIAL COVENTURER, PROFESSIONAL FUND-RAISER, OR PERSON

14    DESCRIBED IN SECTION 23A, THAT SOLICITS CONTRIBUTIONS, RAISES

15    FUNDS, OR CONDUCTS SALES PROMOTIONS FOR A CHARITABLE PURPOSE,

16    SHALL MAINTAIN AT THE PLACE DESIGNATED IN ITS REGISTRATION OR, IF

17    NOT A CHARITABLE ORGANIZATION, AT ITS PRINCIPAL PLACE OF BUSI-

18    NESS, THE ORIGINAL RECORDS OR TRUE COPIES OF THE RECORDS PERTAIN-

19    ING TO ALL MONEY OR OTHER PROPERTY COLLECTED FROM RESIDENTS OF

20    THIS STATE AND TO THE DISBURSEMENT OF THAT MONEY OR PROPERTY.

21    THE RECORDS SHALL BE PRESERVED FOR NOT LESS THAN 3 YEARS FROM THE

22    DATE PREPARED.

23         (4) A FILE IN THE OFFICE OF THE ATTORNEY GENERAL REGARDING A

24    CLOSED ENFORCEMENT ACTION OR A SETTLEMENT IN A CIVIL CASE UNDER

25    THIS ACT IS OPEN TO PUBLIC INSPECTION AND COPYING.  A PROVISION

26    OR REQUIREMENT OF CONFIDENTIALITY OR SEALING OF RECORDS AS A





   00225'99
                                  19

 1    CONDITION OF SETTLEMENT OF AN ENFORCEMENT OR CIVIL ACTION UNDER

 2    THIS ACT IS PROHIBITED.

 3         Sec. 9.  If a local, county, or area division of a charita-

 4    ble organization is directly supervised and controlled by a

 5    superior or parent organization  , which  THAT is incorporated

 6     ,  AND qualified to do business IN THIS STATE, or IS doing busi-

 7    ness within this state, the local, county, or area division OF

 8    THAT CHARITABLE ORGANIZATION is not required to register under

 9    section 3 if the superior or parent organization  files an appli-

10     cation statement  REGISTERS on behalf of the local, county, or

11    area division in addition to or as part of  its application

12     statement.  When an application statement has been  THE SUPERIOR

13    OR PARENT ORGANIZATION'S REGISTRATION.  IF A REGISTRATION IS

14    filed by a superior or parent organization, it shall file the

15    annual report required under  sections 14 and 16  THIS ACT on

16    behalf of the local, county, or area division in  such  THE

17    detail  as  required by the  rules  ATTORNEY GENERAL.

18         Sec. 10.  The attorney general may promulgate rules neces-

19    sary for the administration of this act  in accordance with and

20     subject to Act No. 306 of the Public Acts of 1969, as amended,

21     being sections 24.201 to 24.315 of the Michigan Compiled Laws 

22    UNDER THE ADMINISTRATIVE PROCEDURES ACT OF 1969, 1969 PA 306,

23    MCL 24.201 TO 24.328.  Emergency rules may not be promulgated.

24     pursuant to this act. 

25         Sec. 11.  (1)  An application for a license  THE ATTORNEY

26    GENERAL shall not  be accepted  ACCEPT A REGISTRATION from a

27    charitable organization, PROFESSIONAL FUND-RAISER, OR VENDOR



   00225'99
                                  20

 1    located in another state or country unless  it  THAT CHARITABLE

 2    ORGANIZATION, PROFESSIONAL FUND-RAISER, OR VENDOR first desig-

 3    nates a resident agent in this state  for the acceptance of  TO

 4    ACCEPT process issued by any court.

 5         (2) A charitable organization, person, VENDOR, OR profes-

 6    sional  fund raiser, or professional solicitor, soliciting con-

 7     tributions in this state but not maintaining an office within the

 8     state shall be  FUND-RAISER SUBJECT TO THIS ACT IS subject to

 9    service of process as follows:

10         (a) By service on its  registered  RESIDENT agent within

11     the  THIS state, or if there is no  registered  RESIDENT agent,

12    then upon the person  who has been  designated in the

13     application statement  REGISTRATION as having custody of books

14    and records within this state, OR UPON AN OFFICER OF THE ORGANI-

15    ZATION AT ITS PRINCIPAL OFFICE.  When  IF service is effected

16    upon the person designated in the registration,  statement  a

17    copy of the process shall be mailed to the charitable

18    organization, PERSON, VENDOR, OR PROFESSIONAL FUND-RAISER at its

19    last known address.

20         (b)  When a charitable organization has solicited contribu-

21     tions in this state but does not maintain an office within the

22  state, have a registered agent within this state and have a des-

23     ignated person having custody of its books and records within the

24     state, or when a registered agent or person having custody of its

25     books and records within the state cannot be found as shown by

26     the return of the sheriff of the county in which the registered

27     agent or person having custody of books and records has been



   00225'99
                                  21

 1    represented by the charitable organization as maintaining an

 2     office,  IF SERVICE CANNOT BE EFFECTED AS PROVIDED BY THIS

 3    SECTION, service may be made as otherwise provided by law or

 4    court rules.

 5         (3) Solicitation of a contribution within this state by any

 6    means  ,  is the agreement of the charitable organization,

 7    person, VENDOR, OR professional  fund raiser, or professional

 8     solicitor,  FUND-RAISER that any SERVICE OF process  against it

 9     or him which is  served  in accordance with  UNDER this section

10    is of the same legal force and effect as if served personally.

11         Sec. 12.  Upon THE initial filing of  an application state-

12     ment pursuant to  A REGISTRATION UNDER section 3, the attorney

13    general may suspend for a reasonable, specifically designated

14    time the filing of reports otherwise required  by sections 14 and

15     15  UNDER THIS ACT as to a particular charitable  corporation,

16     trust, or  organization,  incorporated or established for chari-

17     table purposes,  upon written application filed with the attorney

18    general, and after the attorney general has determined and acqui-

19    esced by a written statement that the  interest of the  the

20    public INTEREST will not be prejudiced.  thereby. 

21         Sec. 13.  The  licensing and financial statement 

22    REGISTRATION AND REPORTING requirements of this act do not apply

23    to any of the following:

24         (a) A person who requests a contribution for the relief or

25    benefit of an individual, specified by name at the time of the

26    solicitation, if the contributions collected are turned over to

27    the named beneficiary after deducting reasonable expenses for



   00225'99
                                  22

 1    costs of solicitation, if any, and if all  fun-raising 

 2    FUND-RAISING functions are carried on by persons who are unpaid,

 3    directly or indirectly, for their services.

 4         (b) A  person who  CHARITABLE ORGANIZATION THAT does not

 5    intend to solicit and receive and does not actually receive con-

 6    tributions in excess of  $8,000.00  $25,000.00 during  any

 7     12-month period if all of its fund raising functions are carried

 8     on by persons who are unpaid for their services and if the organ-

 9     ization makes available to its members and the public a financial

10     statement of its activities for the most recent fiscal year.  If

11     the gross contributions received during any 12-month period

12     exceed $8,000.00, the person shall file an application for

13     license with required supporting information as provided in

14     section 3 within 30 days after the date it has received total

15     contributions in excess of $8,000.00.  ITS FISCAL YEAR.  A CHARI-

16    TABLE ORGANIZATION SHALL REGISTER AS REQUIRED UNDER THIS ACT

17    WITHIN 30 DAYS AFTER THE DATE THE CHARITABLE ORGANIZATION

18    RECEIVES TOTAL CONTRIBUTIONS OF MORE THAN $25,000.00 DURING ITS

19    FISCAL YEAR.  THIS SUBDIVISION ONLY APPLIES IF ALL OF THE CHARI-

20    TABLE ORGANIZATION'S FUND-RAISING FUNCTIONS ARE CARRIED ON BY

21    PERSONS WHO ARE NOT PAID FOR THEIR SERVICES.

22         (c) An organization that does not invite the general public

23    to become a member of the organization and confines solicitation

24    activities to solicitation drives solely among its members and

25    the members' immediate families.  , if the drives are not held

26     more frequently than quarterly.  "Immediate family" FOR PURPOSES





   00225'99
                                  23

 1    OF THIS SUBDIVISION means the grandparents, parents, spouse,

 2    brothers, sisters, children, and grandchildren OF A MEMBER.

 3         (d)  An educational institution certified by the state board

 4     of education  A PRIVATE FOUNDATION AS THAT TERM IS DEFINED IN

 5    SECTION 509(a) OF THE INTERNAL REVENUE CODE OF 1986 THAT DID NOT

 6    RECEIVE CONTRIBUTIONS FROM MORE THAN 25 PERSONS DURING ITS MOST

 7    RECENT FISCAL YEAR.

 8         (e) A veterans' organization  incorporated under federal

 9     law  CHARTERED BY CONGRESS, ITS DULY AUTHORIZED SERVICE FOUNDA-

10    TION, AND A PROFESSIONAL FUND-RAISER WHO FUND-RAISES SOLELY FOR

11    THAT SERVICE FOUNDATION.

12         (f) An organization that receives funds from a charitable

13    organization  licensed  REGISTERED under this act that does not

14    solicit or intend to solicit or receive or intend to receive con-

15    tributions from persons other than  a  THE REGISTERED charitable

16    organization, if the organization makes available to its members

17    and the public a financial statement of its activities for  the 

18    ITS most recent fiscal year.

19         (g)  A licensed hospital, hospital based foundation, and

20     hospital auxiliary that solicit funds solely for 1 or more

21     licensed hospitals  A BOOSTER GROUP OR A PARENT-TEACHER ORGANIZA-

22    TION THAT IS RECOGNIZED BY THE PUBLIC SCHOOL, NONPUBLIC SCHOOL,

23    OR SCHOOL DISTRICT THAT IT IS ORGANIZED TO SUPPORT.

24         (h)  A nonprofit service organization that is exempt from

25     taxation pursuant to a provision of the United States internal

26     revenue code other than section 501(c)(3), whose principal

27     purpose is not charitable, but solicits from time to time funds



   00225'99
                                  24

 1    for a charitable purpose by members of the organization who are

 2     not paid for the solicitation.  The funds shall be wholly used

 3     for the charitable purposes for which they were solicited, and

 4     the organization shall file with the attorney general a federal

 5     form 990 or 990 AR.  A PUBLIC SCHOOL, NONPUBLIC SCHOOL, PRE-

 6    SCHOOL, OR INSTITUTION OF HIGHER EDUCATION.

 7          (i) A nonprofit corporation whose stock is wholly owned by

 8     a religious or fraternal society that owns and operates facili-

 9     ties for the aged and chronically ill in which no part of the net

10     income from the operation of the corporation inures to the bene-

11     fit of a person other than the residents.

12          (j) Charitable organizations licensed by the department of

13     social services that serve children and families. 

14         (I)  (k)  A person registered under and complying with the

15    requirements of the public safety solicitation act, 1992 PA 298,

16    MCL 14.301 TO 14.327.

17         Sec. 16.  The attorney general may CONDITIONALLY continue

18     under conditions  the  license  REGISTRATION of  an  A

19    CHARITABLE organization, professional  fund raiser, or profes-

20     sional solicitor which  FUND-RAISER, OR VENDOR THAT fails to

21    comply with this act  including failure to comply with the rules

22     regarding prohibited transactions, standards of solicitation,

23     conduct, or administration  OR RULES PROMULGATED UNDER THIS ACT.

24         Sec. 17.  (1)  A person shall not act as a professional fund

25     raiser for a charitable organization or charitable purpose before

26     he has filed an application for a license with the attorney

27     general or after the expiration or cancellation of a license or



   00225'99
                                  25

 1    renewal thereof.  Applications for license shall be in writing,

 2     under oath, in the form prescribed by the attorney general.  The

 3     applicant when making application, shall file with and have

 4     approved by the attorney general a bond in which the applicant

 5     shall be the principal obligor, in the sum of $10,000.00.  The

 6     bond shall run to the people of the state and to any person

 7     including charitable organizations who may have a cause of action

 8     against the obligor of the bond for any malfeasance or misfeas-

 9     ance in the conduct of the solicitation.  The aggregate limit of

10     liability of the surety to the state and to all the persons shall

11     not exceed the sum of the bond.  Application for renewal of

12     licenses when effected shall be for a period of 1 year, or a part

13     thereof, expiring on June 30, and may be renewed for additional

14     1-year periods upon written application, under oath, in the form

15     prescribed by the attorney general and the filing of the bond.  A

16    PROFESSIONAL FUND-RAISER SHALL NOT SOLICIT OR RECEIVE DONATIONS

17    FOR A CHARITABLE PURPOSE OR ON BEHALF OF A CHARITABLE ORGANIZA-

18    TION OR RELIGIOUS ORGANIZATION, BEFORE REGISTERING WITH THE

19    ATTORNEY GENERAL, OR AFTER THE EXPIRATION, SUSPENSION, REVOCA-

20    TION, OR DENIAL OF A REGISTRATION.

21         (2)  A person shall not act as a professional solicitor in

22     the employ of a professional fund raiser required to be licensed

23     before he has registered with the attorney general or after the

24     expiration or cancellation of registration.  Application for  THE

25    registration  or reregistration  OF A PROFESSIONAL FUND-RAISER

26    shall be in writing  , under oath, in the  ON A form prescribed

27    by the attorney general  .  Registration or reregistration when



   00225'99
                                  26

 1    effected shall be for a period of 1 year, or a part thereof,

 2     expiring on June 30, and may be renewed upon written application,

 3     under oath, in the form prescribed by the attorney general for

 4     additional 1-year periods.  AND SHALL BE ACCOMPANIED BY A PAYMENT

 5    OF A $200.00 FEE.  INFORMATION PROVIDED TO THE ATTORNEY GENERAL

 6    ON THE REGISTRATION FORM SHALL INCLUDE ALL OF THE FOLLOWING:

 7         (A) ALL NAMES CURRENTLY USED BY THE PROFESSIONAL

 8    FUND-RAISER.

 9         (B) THE ADDRESS AND TELEPHONE NUMBER OF THE PRINCIPAL OFFICE

10    OF THE PROFESSIONAL FUND-RAISER AND OF EACH OFFICE IT MAINTAINS

11    IN THIS STATE.

12         (C) IF THE PRINCIPAL ADDRESS OF THE PROFESSIONAL FUND-RAISER

13    IS NOT IN THIS STATE, THE ADDRESS AND TELEPHONE NUMBER OF A RESI-

14    DENT AGENT IN THIS STATE.

15         (D) WHERE AND WHEN THE PROFESSIONAL FUND-RAISER WAS LEGALLY

16    ESTABLISHED AND THE FORM OF ITS ORGANIZATION.  IF A PROFESSIONAL

17    FUND-RAISER IS INCORPORATED, THE REGISTRATION FORM SHALL INCLUDE

18    THE NAME AND BUSINESS OR HOME ADDRESS OF ALL OFFICERS AND

19    DIRECTORS.  IF A PROFESSIONAL FUND-RAISER IS A SOLE PROPRIETOR-

20    SHIP, LIMITED LIABILITY COMPANY, OR PARTNERSHIP, THE REGISTRATION

21    FORM SHALL INCLUDE THE NAME AND BUSINESS OR HOME ADDRESS OF THE

22    OWNER, MEMBERS AND MANAGERS, OR ALL PARTNERS.

23         (E) THE NAME, ADDRESS, AND TELEPHONE NUMBER OF ANYONE WITH

24    DIRECT RESPONSIBILITY FOR SOLICITATION ACTIVITY IN THIS STATE.

25         (F) WHETHER THE PROFESSIONAL FUND-RAISER OR ANY OF ITS OFFI-

26    CERS, DIRECTORS, OR PRINCIPALS IS, OR HAS EVER BEEN, ENJOINED,





   00225'99
                                  27

 1    FINED, CONVICTED, OR SUBJECT TO ANY OTHER SANCTION OR PENALTY AS

 2    A RESULT OF SOLICITING CONTRIBUTIONS IN ANY STATE OR COUNTRY.

 3         (G) A CONCISE DESCRIPTION OF THE PRINCIPAL METHODS BY WHICH

 4    THE PROFESSIONAL FUND-RAISER IS, OR WILL BE, SOLICITING

 5    CONTRIBUTIONS.

 6         (H) THE NAME, ADDRESS, AND TELEPHONE NUMBER OF ANY CHARITA-

 7    BLE ORGANIZATION FOR WHICH THE PROFESSIONAL FUND-RAISER HAS

 8    AGREED TO SOLICIT FUNDS IN THIS STATE.

 9         (I) A COMPLETE COPY OF ANY AGREEMENT BETWEEN THE PROFES-

10    SIONAL FUND-RAISER AND A CHARITABLE ORGANIZATION.

11         (J) A COMPLETE COPY OF ANY SUBCONTRACT AGREEMENT BETWEEN THE

12    PROFESSIONAL FUND-RAISER AND A PERSON THAT WILL ACT AS A PROFES-

13    SIONAL FUND-RAISER ON BEHALF OF A CHARITABLE ORGANIZATION, RELI-

14    GIOUS ORGANIZATION, OR ANY OTHER PERSON SOLICITING FOR A CHARITA-

15    BLE PURPOSE.

16         (K) WHETHER AN OFFICER, DIRECTOR, OR EMPLOYEE OF A CHARITA-

17    BLE ORGANIZATION OWNS A 10% OR GREATER INTEREST IN THE PROFES-

18    SIONAL FUND-RAISER, OR IS AN AGENT OR CONTRACTOR FOR THE PROFES-

19    SIONAL FUND-RAISER, DURING A PERIOD OF TIME WHEN THE PROFESSIONAL

20    FUND-RAISER IS UNDER CONTRACT WITH THAT CHARITABLE ORGANIZATION

21    TO SOLICIT FUNDS, AND WHETHER THAT INFORMATION HAS BEEN FULLY

22    DISCLOSED TO THE BOARD OF DIRECTORS OR OTHER GOVERNING BODY OF

23    THE CHARITABLE ORGANIZATION.

24         (3) EXCEPT AS OTHERWISE PROVIDED IN SUBSECTION (4), THE REG-

25    ISTRATION OF A PROFESSIONAL FUND-RAISER THAT RECEIVES, HAS CUS-

26    TODY OF, OR HAS ACCESS TO FUNDS SOLICITED IN THIS STATE FOR A

27    CHARITABLE ORGANIZATION SHALL BE ACCOMPANIED BY A $25,000.00



   00225'99
                                  28

 1    BOND, OF WHICH THE PROFESSIONAL FUND-RAISER IS THE PRINCIPAL

 2    OBLIGOR.  THE BOND SHALL RUN TO THE PEOPLE OF THIS STATE AND TO

 3    ANY PERSON, INCLUDING A CHARITABLE ORGANIZATION, THAT MAY HAVE A

 4    CAUSE OF ACTION AGAINST THE PROFESSIONAL FUND-RAISER AS A RESULT

 5    OF THE PROFESSIONAL FUND-RAISER'S CONDUCT OF ANY ACTIVITY SUBJECT

 6    TO THIS ACT.  THE BOND SHALL BE OBTAINED AND SUBMITTED IN THE

 7    FORM PRESCRIBED BY THE ATTORNEY GENERAL.  THE BOND SHALL BE

 8    ISSUED BY A COMPANY AUTHORIZED TO ENGAGE IN INSURANCE ACTIVITY IN

 9    THIS STATE.  THE BOND SHALL REMAIN IN EFFECT FOR A PERIOD OF AT

10    LEAST 1 YEAR AFTER THE PROFESSIONAL FUND-RAISER'S REGISTRATION

11    EXPIRES.

12         (4) THE ATTORNEY GENERAL MAY ACCEPT AN IRREVOCABLE LETTER OF

13    CREDIT IN LIEU OF A BOND.  AN IRREVOCABLE LETTER OF CREDIT SHALL

14    BE ISSUED BY A FINANCIAL INSTITUTION THAT IS AUTHORIZED TO TRANS-

15    ACT BUSINESS IN THIS STATE AND THAT IS INSURED BY THE FEDERAL

16    DEPOSIT INSURANCE CORPORATION, THE FEDERAL SAVINGS AND LOAN

17    INSURANCE CORPORATION, OR THE NATIONAL CREDIT UNION ASSOCIATION.

18    AN IRREVOCABLE LETTER OF CREDIT SHALL BE SUBMITTED IN THE FORM

19    PRESCRIBED BY THE ATTORNEY GENERAL AND SHALL EXPIRE NOT LESS THAN

20    1 YEAR AFTER THE PROFESSIONAL FUND-RAISER'S REGISTRATION

21    EXPIRES.

22         (5) WITHIN 90 DAYS AFTER A SOLICITATION CAMPAIGN IS COM-

23    PLETED, OR ON THE ANNIVERSARY OF THE COMMENCEMENT OF A SOLICITA-

24    TION CAMPAIGN LASTING MORE THAN 1 YEAR, A PROFESSIONAL

25    FUND-RAISER THAT SOLICITED CONTRIBUTIONS IN THIS STATE ON BEHALF

26    OF A CHARITABLE ORGANIZATION SHALL FILE WITH THE ATTORNEY GENERAL

27    A FINANCIAL REPORT FOR THE CAMPAIGN, INCLUDING GROSS REVENUE AND



   00225'99
                                  29

 1    AN ITEMIZATION OF ALL EXPENSES INCURRED ON BEHALF OF THE

 2    CHARITABLE ORGANIZATION.  THE REPORT SHALL BE SUBMITTED ON A FORM

 3    PRESCRIBED BY THE ATTORNEY GENERAL.  THE REPORT SHALL BE SIGNED

 4    BY AN AUTHORIZED OFFICIAL OF THE PROFESSIONAL FUND-RAISER AND AN

 5    AUTHORIZED OFFICIAL OF THE CHARITABLE ORGANIZATION, WHO SHALL

 6    EACH CERTIFY, UNDER OATH, THAT THE REPORT IS TRUE TO THE BEST OF

 7    HIS OR HER KNOWLEDGE.

 8         (6) A PROFESSIONAL FUND-RAISER'S REGISTRATION IS EFFECTIVE

 9    IMMEDIATELY UPON RECEIPT BY THE ATTORNEY GENERAL OF THE INFORMA-

10    TION AND FEES REQUIRED UNDER THIS ACT.  THE REGISTRATION SHALL

11    EXPIRE 1 YEAR AFTER THE REGISTRATION IS EFFECTIVE.  A PROFES-

12    SIONAL FUND-RAISER'S REGISTRATION IS RENEWABLE BY FILING A

13    RENEWAL REGISTRATION AND PAYING A $200.00 FEE.

14         Sec. 18.  (1)  A person shall not use for the purpose of

15     soliciting contributions the name of another person, except that

16     of an officer, director, or trustee of the charitable organiza-

17     tion by or for which contributions are solicited, without the

18     consent of such other person.  A CHARITABLE ORGANIZATION, PROFES-

19    SIONAL FUND-RAISER, COMMERCIAL COVENTURER, VENDOR, PERSON

20    DESCRIBED IN SECTION 23A, OR AN EMPLOYEE OR AGENT OF A CHARITABLE

21    ORGANIZATION, PROFESSIONAL FUND-RAISER, COMMERCIAL COVENTURER,

22    VENDOR, OR PERSON DESCRIBED IN SECTION 23A SHALL NOT ENGAGE IN

23    ANY OF THE FOLLOWING:

24         (A) A METHOD, ACT, OR PRACTICE IN VIOLATION OF THIS ACT OR A

25    RULE PROMULGATED UNDER THIS ACT, ANY RESTRICTION, CONDITION, OR

26    LIMITATION PLACED ON A REGISTRATION, OR A FINAL ORDER OR CEASE

27    AND DESIST ORDER.



   00225'99
                                  30

 1         (B) REPRESENTING OR IMPLYING THAT A PERSON SOLICITING

 2    CONTRIBUTIONS OR OTHER FUNDS FOR A CHARITABLE ORGANIZATION HAS A

 3    SPONSORSHIP, APPROVAL, STATUS, AFFILIATION, OR OTHER CONNECTION

 4    WITH A CHARITABLE ORGANIZATION OR CHARITABLE PURPOSE THAT THE

 5    PERSON DOES NOT HAVE.

 6         (C) REPRESENTING OR IMPLYING THAT A CONTRIBUTION IS FOR OR

 7    ON BEHALF OF A CHARITABLE ORGANIZATION, OR USING AN EMBLEM,

 8    DEVICE, OR PRINTED MATERIAL BELONGING TO OR ASSOCIATED WITH A

 9    CHARITABLE ORGANIZATION, WITHOUT FIRST OBTAINING WRITTEN AUTHORI-

10    ZATION FROM THAT CHARITABLE ORGANIZATION.

11         (D) USING A NAME, SYMBOL, OR STATEMENT SO CLOSELY RELATED OR

12    SIMILAR TO A NAME, SYMBOL, OR STATEMENT USED BY ANOTHER CHARITA-

13    BLE ORGANIZATION THAT USE OF THAT NAME, SYMBOL, OR STATEMENT

14    WOULD TEND TO CONFUSE OR MISLEAD A SOLICITED PERSON.

15         (E) USING A BOGUS, FICTITIOUS, OR NONEXISTENT ORGANIZATION,

16    ADDRESS, OR TELEPHONE NUMBER IN ANY SOLICITATION.

17         (F) MISREPRESENTING OR MISLEADING ANY PERSON IN ANY MANNER

18    TO BELIEVE THAT A PERSON ON WHOSE BEHALF A SOLICITATION EFFORT IS

19    CONDUCTED IS A CHARITABLE ORGANIZATION OR THAT THE PROCEEDS OF A

20    SOLICITATION EFFORT ARE FOR CHARITABLE PURPOSES.

21         (G) MISREPRESENTING OR MISLEADING ANY PERSON IN ANY MANNER

22    TO BELIEVE THAT A PERSON SPONSORS, ENDORSES, OR APPROVES A SOLIC-

23    ITATION EFFORT IF THAT PERSON HAS NOT GIVEN WRITTEN CONSENT TO

24    THE USE OF HIS OR HER NAME FOR THAT PURPOSE.

25         (H) MISREPRESENTING OR MISLEADING ANY PERSON IN ANY MANNER

26    TO BELIEVE THAT REGISTRATION UNDER THIS ACT CONSTITUTES





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 1    ENDORSEMENT OR APPROVAL BY THIS STATE OR A DEPARTMENT OR AGENCY

 2    OF THIS STATE.

 3         (I) REPRESENTING OR IMPLYING THAT THE AMOUNT OR PERCENTAGE

 4    OF A CONTRIBUTION THAT A CHARITABLE ORGANIZATION WILL RECEIVE FOR

 5    A CHARITABLE PROGRAM AFTER COSTS OF SOLICITATION ARE PAID IS

 6    GREATER THAN THE AMOUNT OR PERCENTAGE OF A CONTRIBUTION THE CHAR-

 7    ITABLE ORGANIZATION WILL ACTUALLY RECEIVE.

 8         (J) DIVERTING OR MISDIRECTING CONTRIBUTIONS TO A PURPOSE OR

 9    ORGANIZATION OTHER THAN THAT FOR WHICH THE FUNDS WERE CONTRIBUTED

10    OR SOLICITED.

11         (K) FALSELY REPRESENTING OR IMPLYING THAT A DONOR WILL

12    RECEIVE SPECIAL BENEFITS OR TREATMENT OR THAT FAILURE TO MAKE A

13    CONTRIBUTION WILL RESULT IN UNFAVORABLE TREATMENT.

14         (l) MISREPRESENTING OR MISLEADING ANY PERSON IN ANY MANNER

15    TO BELIEVE THAT A CONTRIBUTION IS ELIGIBLE FOR TAX ADVANTAGES

16    UNLESS THAT PERSON QUALIFIES FOR THOSE TAX ADVANTAGES AND ALL

17    DISCLOSURES REQUIRED BY LAW ARE MADE.

18         (M) FALSELY REPRESENTING OR IMPLYING THAT THE PERSON BEING

19    SOLICITED OR A FAMILY MEMBER OR ASSOCIATE OF THE PERSON BEING

20    SOLICITED HAS PREVIOUSLY MADE OR AGREED TO MAKE A CONTRIBUTION.

21         (N) EMPLOYING ANY DEVICE, SCHEME, OR ARTIFICE TO DEFRAUD OR

22    OBTAIN MONEY OR PROPERTY FROM A PERSON BY MEANS OF A FALSE,

23    DECEPTIVE, OR MISLEADING PRETENSE, REPRESENTATION, OR PROMISE.

24         (O) REPRESENTING THAT FUNDS SOLICITED WILL BE USED FOR A

25    PARTICULAR CHARITABLE PURPOSE IF THOSE FUNDS ARE NOT USED FOR THE

26    REPRESENTED PURPOSE.





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 1         (P) SOLICITING CONTRIBUTIONS, CONDUCTING A SALES PROMOTION,

 2    OR OTHERWISE OPERATING IN THIS STATE AS A CHARITABLE

 3    ORGANIZATION, PROFESSIONAL FUND-RAISER, OR VENDOR UNLESS THE

 4    INFORMATION REQUIRED UNDER THIS ACT IS FILED WITH THE ATTORNEY

 5    GENERAL AS REQUIRED UNDER THIS ACT.

 6         (Q) AIDING, ABETTING, OR OTHERWISE PERMITTING A PERSON TO

 7    SOLICIT CONTRIBUTIONS OR CONDUCT A SALES PROMOTION IN THIS STATE

 8    UNLESS THE PERSON SOLICITING CONTRIBUTIONS OR CONDUCTING THE

 9    SALES PROMOTION HAS COMPLIED WITH THE REQUIREMENTS OF THIS ACT.

10         (R) FAILING TO FILE THE INFORMATION AND REPORTS REQUIRED

11    UNDER THIS ACT OR FAILING TO PROVIDE ANY INFORMATION REQUESTED BY

12    THE ATTORNEY GENERAL IN A TIMELY MANNER.

13         (S) FAILING TO REMOVE A PERSON'S NAME FROM ANY DONOR OR MAIL

14    LIST UTILIZED BY A CHARITABLE ORGANIZATION OR PROFESSIONAL

15    FUND-RAISER FOR SOLICITATION PURPOSES IF THAT PERSON REQUESTS

16    THAT HIS OR HER NAME BE REMOVED FROM THAT LIST.

17         (2)  A person has used the name of another person for the

18     purpose of soliciting contributions if the latter person's name

19     is listed on stationery, an advertisement, brochure, or in corre-

20     spondence by which a contribution is solicited by or on behalf of

21     a charitable organization or the name is listed or referred to in

22     connection with a request for a contribution as one who has con-

23     tributed to, sponsored, or indorsed the organization or its

24     activities.  IN ADDITION TO THE PENALTIES PROVIDED IN SECTION 20,

25    A PERSON WHO ENGAGES IN ANY UNFAIR, UNCONSCIONABLE, OR DECEPTIVE

26    METHOD, ACT, OR PRACTICE IN A SOLICITATION FOR CONTRIBUTIONS IN

27    VIOLATION OF THIS ACT OR RULES PROMULGATED UNDER THIS ACT HAS



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 1    ENGAGED IN A PROHIBITED ACT IN VIOLATION OF THE MICHIGAN CONSUMER

 2    PROTECTION ACT, 1976 PA 331, MCL 445.901 TO 445.922, AND IS

 3    SUBJECT TO THE PENALTIES AND REMEDIES PROVIDED IN THAT ACT.

 4         (3) This section does not prevent the publication of names

 5    of contributors without their written consent in an annual or

 6    other periodic report issued by a charitable organization for the

 7    purpose of reporting on its operations and affairs to its member-

 8    ship or for the purpose of reporting contributions to

 9    contributors.

10          (4) A charitable organization or professional fund raiser

11     soliciting contributions shall not use a name, symbol, or state-

12     ment so closely related or similar to that used by another chari-

13     table organization or governmental agency that would tend to con-

14     fuse or mislead the public. 

15         (4)  (5)  A charitable organization, whether OR NOT exempt

16     or not  from this act, shall supply to each solicitor and each

17    solicitor shall have in HIS OR HER immediate possession identifi-

18    cation  which  THAT sets forth the name of the solicitor and the

19    name of the charitable organization on whose behalf the solicita-

20    tion is conducted.

21         SEC. 19.  (1) BEFORE CONDUCTING A SALES OR SOLICITATION CAM-

22    PAIGN, A VENDOR SHALL REGISTER WITH THE ATTORNEY GENERAL ON A

23    FORM PRESCRIBED BY THE ATTORNEY GENERAL.  THE REGISTRATION SHALL

24    INCLUDE, BUT IS NOT LIMITED TO, THE FOLLOWING INFORMATION:

25         (A) THE NAME OF THE VENDOR AND ANY OTHER CORPORATE, BUSI-

26    NESS, OR TRADE NAMES USED BY THE VENDOR.





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 1         (B) THE ADDRESS AND TELEPHONE NUMBER OF THE PRINCIPAL OFFICE

 2    OF THE VENDOR.

 3         (C) IF THE VENDOR IS NOT A SOLE PROPRIETORSHIP, WHERE AND

 4    WHEN THE VENDOR WAS LEGALLY ESTABLISHED AND THE FORM OF ITS

 5    ORGANIZATION.

 6         (D) A CONCISE DESCRIPTION OF THE PRINCIPAL METHODS BY WHICH

 7    THE VENDOR INTENDS TO CONDUCT ITS SALES OR SOLICITATION CAMPAIGN

 8    IN MICHIGAN.

 9         (E) THE NAME, ADDRESS, AND TELEPHONE NUMBER OF EACH CHARITA-

10    BLE ORGANIZATION WITH WHICH THE VENDOR HAS CONTRACTED.

11         (F) A COMPLETE COPY OF ANY AGREEMENT BETWEEN THE VENDOR AND

12    A CHARITABLE ORGANIZATION.

13         (2) A VENDOR SHALL PAY A FEE OF $50.00 WITH ITS

14    REGISTRATION.

15         (3) A VENDOR'S REGISTRATION IS EFFECTIVE IMMEDIATELY UPON

16    THE ATTORNEY GENERAL'S RECEIPT OF THE INFORMATION AND FEES

17    REQUIRED UNDER THIS ACT.

18         (4) A VENDOR'S REGISTRATION SHALL EXPIRE 1 YEAR AFTER ITS

19    REGISTRATION IS EFFECTIVE.

20         (5) A VENDOR SHALL NOT CONDUCT A CHARITABLE SALES OR SOLICI-

21    TATION CAMPAIGN IN WHICH IT USES THE NAME OF A CHARITABLE ORGANI-

22    ZATION THAT IS NOT REGISTERED IN THIS STATE.

23         SEC. 19A.  A VENDOR SHALL REPORT TO THE ATTORNEY GENERAL THE

24    TOTAL DOLLAR SALES OF EACH CAMPAIGN CONDUCTED IN THIS STATE AND

25    THE AMOUNT PAID TO EACH CHARITABLE ORGANIZATION WITH ITS RENEWAL

26    REGISTRATION OR WITHIN 30 DAYS AFTER THE CONCLUSION OF A SALES

27    CAMPAIGN IN THIS STATE IF NO FURTHER CAMPAIGN IS INTENDED.



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 1         SEC. 19B.  A VENDOR SHALL PROMINENTLY DISPLAY THE FOLLOWING

 2    INFORMATION ON EACH VENDING MACHINE, HONOR BOX, NOVELTY MACHINE,

 3    OR SIMILAR DEVICE THROUGH WHICH THAT VENDOR CONDUCTS A CHARITABLE

 4    SALES OR SOLICITATION CAMPAIGN:

 5         (A) THE NAME OF THE VENDOR AND THE FACT THAT THE VENDOR OWNS

 6    THE VENDING MACHINE, HONOR BOX, NOVELTY MACHINE, OR SIMILAR

 7    DEVICE.

 8         (B) THE PERCENTAGE OF SALES, IF ANY, THAT A CHARITABLE

 9    ORGANIZATION WILL RECEIVE.

10         (C) THE AMOUNT THAT A CHARITABLE ORGANIZATION WILL RECEIVE

11    REGARDLESS OF SALES, IF ANY.

12         SEC. 19C.  (1) BEFORE MAKING AN ORAL REQUEST FOR A CONTRIBU-

13    TION AND CONTEMPORANEOUSLY WITH A WRITTEN REQUEST FOR A CONTRIBU-

14    TION, THE CHARITABLE ORGANIZATION, PROFESSIONAL FUND-RAISER, OR

15    VENDOR SOLICITING THE CONTRIBUTION SHALL DISCLOSE THE NAME AND

16    LOCATION BY CITY AND STATE OF EACH CHARITABLE ORGANIZATION ON

17    BEHALF OF WHICH THE SOLICITATION IS MADE.  IF A SOLICITATION IS

18    MADE BY DIRECT PERSONAL CONTACT, THE INFORMATION REQUIRED UNDER

19    THIS SECTION SHALL ALSO BE DISCLOSED PROMINENTLY ON ANY WRITTEN

20    DOCUMENT EXHIBITED TO THE PERSON SOLICITED.  IF A SOLICITATION IS

21    MADE BY RADIO, TELEVISION, LETTER, TELEPHONE, OR ANY OTHER MEANS

22    NOT INVOLVING PERSONAL CONTACT, THE INFORMATION REQUIRED UNDER

23    THIS SECTION SHALL BE DISCLOSED PROMINENTLY IN THE SOLICITATION.

24    THE INFORMATION REQUIRED UNDER THIS SECTION SHALL ALSO BE DIS-

25    CLOSED PROMINENTLY ON ANY INVOICES, BILLS, FULFILLMENT REQUESTS,

26    LETTERS, PAMPHLETS, OR BROCHURES USED TO OBTAIN PAYMENT OF A

27    PLEDGE OR PROMISE TO MAKE A CONTRIBUTION.



   00225'99
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 1         (2) IN ADDITION TO THE INFORMATION REQUIRED UNDER SUBSECTION

 2    (1), A PROFESSIONAL FUND-RAISER THAT ORALLY SOLICITS CONTRIBU-

 3    TIONS IN THIS STATE SHALL ALSO DISCLOSE THE PROFESSIONAL

 4    FUND-RAISER'S NAME AS FILED WITH THE ATTORNEY GENERAL AND A

 5    STATEMENT THAT THE SOLICITATION IS BEING CONDUCTED BY A PROFES-

 6    SIONAL FUND-RAISER.  THE INFORMATION REQUIRED UNDER THIS SUBSEC-

 7    TION SHALL BE PROVIDED IN THE SAME MANNER AS THE INFORMATION

 8    REQUIRED UNDER SUBSECTION (1).

 9         SEC. 19D.  A PERSON REQUIRED TO REGISTER UNDER THIS ACT IS

10    SUBJECT TO A LATE FEE OF $1.00 PER DAY UP TO A MAXIMUM LATE FEE

11    OF $100.00 IF ANY OF THE FOLLOWING OCCUR:

12         (A) A CHARITABLE ORGANIZATION FAILS TO FILE A REPORT ON OR

13    BEFORE THE DATE ITS REGISTRATION EXPIRES AS PROVIDED IN SECTION

14    7(1) UNLESS AN EXTENSION HAS BEEN GRANTED UNDER SECTION 7(4).

15         (B) A PROFESSIONAL FUND-RAISER FAILS TO FILE A REPORT AS

16    REQUIRED UNDER SECTION 17(5).

17         (C) A VENDOR FAILS TO FILE A CAMPAIGN FINANCIAL REPORT OR

18    CAMPAIGN SALES REPORT AS REQUIRED UNDER SECTION 19A.

19         (D) A CHARITABLE ORGANIZATION, PROFESSIONAL FUND-RAISER, OR

20    VENDOR FAILS TO CURE A DEFECT IN ITS REGISTRATION OR ANNUAL

21    REPORT WITHIN 30 DAYS AFTER NOTICE BY THE ATTORNEY GENERAL THAT A

22    CORRECTION OR ADDITIONAL INFORMATION IS REQUIRED.

23         Sec. 20.  (1) The attorney general may,  institute  IN ADDI-

24    TION TO ANY OTHER ACTION AUTHORIZED BY LAW, BRING an action  in

25     any circuit court  to enjoin  preliminarily or permanently a

26     charitable organization, professional fund raiser, solicitor, or

27     other person who:  (a) Engages in a method, act, or practice in



   00225'99
                                  37

 1    violation of this act or any of the rules promulgated hereunder.

 2     (b) Employs or uses in a solicitation or collection of contribu-

 3     tions for a charitable organization on behalf of any other person

 4     for a charitable purpose a device, scheme, or artifice to

 5     defraud, or for obtaining money or property by means of any false

 6     pretense, deception, representation, or promise.  AN ACT OR PRAC-

 7    TICE PROHIBITED UNDER THIS ACT.  AFTER FINDING THAT A PERSON HAS

 8    ENGAGED IN OR IS ENGAGING IN A PROHIBITED ACT OR PRACTICE, A

 9    COURT MAY ENTER ANY NECESSARY ORDER OR JUDGMENT, INCLUDING, BUT

10    NOT LIMITED TO, AN INJUNCTION, AN ORDER OF RESTITUTION, AN AWARD

11    OF REASONABLE ATTORNEY FEES AND COSTS.  A COURT MAY AWARD TO THIS

12    STATE A CIVIL PENALTY OF $10,000.00 OR LESS FOR EACH VIOLATION OF

13    THIS ACT.  A COURT NEED NOT FIND IRREPARABLE HARM TO ENTER AN

14    INJUNCTION, BUT NEED ONLY FIND A VIOLATION OF THIS ACT OR FIND

15    THAT AN INJUNCTION WOULD PROMOTE THE PUBLIC INTEREST.

16         (2)  In addition to any relief afforded under this section,

17     the attorney general may exercise the authority to suspend or

18     revoke a license issued pursuant to this act.  A CHARITABLE

19    ORGANIZATION, PROFESSIONAL FUND-RAISER, OR ANY OTHER PERSON WHO

20    VIOLATES AN INJUNCTION OR OTHER ORDER ENTERED UNDER SUBSECTION

21    (1) SHALL, IN ADDITION TO ANY OTHER REMEDY, PAY TO THIS STATE A

22    CIVIL PENALTY OF NOT MORE THAN $10,000.00 FOR EACH VIOLATION,

23    WHICH MAY BE RECOVERED IN A CIVIL ACTION BROUGHT BY THE ATTORNEY

24    GENERAL.

25         (3) The attorney general may,  exercise the authority

26     granted in this section against a charitable organization or

27     person which or who operates under the guise or pretense of being



   00225'99
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 1    an organization or person exempted by this act and is not in fact

 2     an organization or person entitled to such an exemption.  IN

 3    ADDITION TO ANY OTHER ACTION AUTHORIZED BY LAW, ISSUE A CEASE AND

 4    DESIST ORDER, ISSUE A NOTICE OF INTENDED ACTION, OR TAKE OTHER

 5    ACTION IN THE PUBLIC INTEREST.  THE ATTORNEY GENERAL MAY ACCEPT

 6    AN ASSURANCE OF DISCONTINUANCE OF ANY METHOD, ACT, OR PRACTICE IN

 7    VIOLATION OF THIS ACT FROM ANY PERSON ALLEGED TO BE ENGAGED IN OR

 8    TO HAVE BEEN ENGAGED IN THAT METHOD, ACT, OR PRACTICE.  AN ASSUR-

 9    ANCE OF DISCONTINUANCE MAY INCLUDE A STIPULATION FOR THE VOLUN-

10    TARY PAYMENT OF THE COSTS OF INVESTIGATION, FOR AN AMOUNT TO BE

11    HELD IN ESCROW PENDING THE OUTCOME OF AN ACTION OR AS RESTITUTION

12    TO AN AGGRIEVED PERSON, OR FOR THE VOLUNTARY PAYMENT TO ANOTHER

13    PERSON IF IN THE PUBLIC INTEREST.  AN ASSURANCE OF DISCONTINUANCE

14    SHALL BE IN WRITING AND SHALL BE FILED WITH THE CIRCUIT COURT FOR

15    INGHAM COUNTY.  AN ACTION RESOLVED BY AN ASSURANCE OF DISCONTINU-

16    ANCE MAY BE REOPENED BY THE ATTORNEY GENERAL AT ANY TIME FOR

17    ENFORCEMENT BY A COURT OR FOR FURTHER PROCEEDINGS IN THE PUBLIC

18    INTEREST.  EVIDENCE OF A VIOLATION OF AN ASSURANCE OF DISCONTINU-

19    ANCE IS PRIMA FACIE EVIDENCE OF A VIOLATION OF THIS ACT IN ANY

20    SUBSEQUENT PROCEEDING BROUGHT BY THE ATTORNEY GENERAL.

21         (4) A PERSON WHO HAS VIOLATED SECTION 18 IS SUBJECT TO 1 OR

22    MORE OF THE FOLLOWING PENALTIES:

23         (A) PLACEMENT OF A RESTRICTION OR CONDITION ON THE PERSON'S

24    REGISTRATION.

25         (B) DENIAL, SUSPENSION, OR REVOCATION OF A REGISTRATION.

26         (C) A CIVIL FINE OF NOT MORE THAN $10,000.00 TO BE PAID TO

27    THE ATTORNEY GENERAL.



   00225'99
                                  39

 1         (D) A REQUIREMENT TO TAKE SOME TYPE OF AFFIRMATIVE ACTION,

 2    INCLUDING THE PAYMENT OF RESTITUTION.

 3         (5) THE ATTORNEY GENERAL SHALL, BEFORE SUSPENDING OR REVOK-

 4    ING A REGISTRATION, ASSESSING A CIVIL FINE, OR ORDERING RESTITU-

 5    TION, PROVIDE THE PERSON AGAINST WHOM THE PENALTY IS TO BE

 6    IMPOSED AN OPPORTUNITY FOR A HEARING IN ACCORDANCE WITH THE

 7    ADMINISTRATIVE PROCEDURES ACT OF 1969, 1969 PA 306, MCL 24.201 TO

 8    24.328.

 9         (6) A PERSON WHO SUFFERS A LOSS AS A RESULT OF A VIOLATION

10    OF THIS ACT MAY EXERCISE ANY RIGHT OR REMEDY CREATED UNDER SEC-

11    TION 11 OF THE MICHIGAN CONSUMER PROTECTION ACT, 1976 PA 331,

12    MCL 445.911.

13         Sec. 21.  (1) The attorney general may investigate  the

14     operations or conduct of charitable organizations, professional

15     fund raisers, or professional solicitors subject to this act.  He

16     may require a person, corporation, institution, or association,

17     and the officers, members, and employees and agents thereof, to

18     appear at a named time and place in the county designated by the

19     attorney general or where the person resides or is found, to give

20     information under oath and to produce books, memoranda, papers,

21     records, documents of title, evidence of assets, liabilities,

22     receipts, or disbursements in the possession or control of the

23     person ordered to appear.  A COMPLAINT FROM ANY PERSON IN WHAT-

24    EVER MANNER THE ATTORNEY GENERAL CONSIDERS APPROPRIATE AND MAY

25    INVESTIGATE ON HIS OR HER OWN INITIATIVE A CHARITABLE ORGANIZA-

26 TION, PROFESSIONAL FUND-RAISER, VENDOR, COMMERCIAL COVENTURER, OR

27    PERSON DESCRIBED IN SECTION 23A.  THE ATTORNEY GENERAL MAY



   00225'99
                                  40

 1    REQUIRE A PERSON, CORPORATION, INSTITUTION, OR ASSOCIATION OR AN

 2    OFFICER, MEMBER, EMPLOYEE, OR AGENT OF A CORPORATION, INSTITU-

 3    TION, OR ASSOCIATION TO APPEAR AT A TIME AND PLACE SPECIFIED BY

 4    THE ATTORNEY GENERAL TO GIVE INFORMATION UNDER OATH AND TO

 5    PRODUCE BOOKS, MEMORANDA, PAPERS, RECORDS, DOCUMENTS, OR EVIDENCE

 6    OF ASSETS, LIABILITIES, RECEIPTS, OR DISBURSEMENTS IN THE POSSES-

 7    SION OF THE PERSON ORDERED TO APPEAR.

 8         (2) When REQUIRING THE ATTENDANCE OF A PERSON, the attorney

 9    general  requires the attendance of a person, he  shall issue an

10    order setting forth the time when and the place where attendance

11    is required and shall  cause the same to be served  SERVE THE

12    ORDER upon the person in the manner provided for service of pro-

13    cess in civil cases at least 5 days before the date fixed for

14    attendance.  The order shall have the same force and effect as a

15    subpoena and, upon application of the attorney general,

16     obedience to  the order may be enforced by a court having juris-

17    diction over the person  ,  OR the circuit court for the county

18    of Ingham  ,  or for the county where the person receiving  it 

19    THE ORDER resides or is found, in the same manner as though the

20    notice were a subpoena.  In case of  contumacy  FAILURE or

21    refusal to obey the order issued by the attorney general, the

22    court may issue an order requiring the person to appear before

23    the court,  or  to produce documentary evidence,  if so ordered, 

24    or to give evidence  touching  CONCERNING the matter in

25    question.  Failure to obey the order of the court  shall be

26     punished  IS PUNISHABLE by that court as  a  contempt.  The

27    investigation may be  made  CONDUCTED by  or before  an assistant



   00225'99
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 1    attorney general OR OTHER PERSON designated  in writing  by the

 2    attorney general.  to conduct the investigation.  The attorney

 3    general or  the assistant attorney general acting in his behalf 

 4    OTHER DESIGNATED PERSON may administer the necessary oath or

 5    affirmation to witnesses.

 6         (3) THIS ACT DOES NOT LIMIT OR RESTRICT THE POWERS OR DUTIES

 7    OF THE ATTORNEY GENERAL THAT ARE AUTHORIZED UNDER ANY OTHER PRO-

 8    VISION OF LAW.

 9         SEC. 22A.  IF AN ORAL PLEDGE OR PROMISE TO MAKE A CONTRIBU-

10    TION IS THE RESULT OF A TELEPHONE OR DOOR-TO-DOOR SOLICITATION,

11    THAT PLEDGE OR PROMISE TO MAKE A CONTRIBUTION IS UNENFORCEABLE.

12         Sec. 23.  (1) A person who does any of the following is

13    guilty of a misdemeanor punishable by a fine of not more than

14     $500.00  $5,000.00, or imprisonment for not more than 6 months,

15    or both:

16         (a) Violates this act.

17         (b) Solicits  and  OR receives public donations, or sells

18    memberships in this state for  and  OR on behalf of any organiza-

19    tion, institution, or association subject to the provisions of

20    this act  and which  THAT is not  duly licensed pursuant to 

21    REGISTERED UNDER this act.

22         (c) Solicits funds under a  license  REGISTRATION and

23     thereafter  diverts the  same  FUNDS to purposes other than that

24    for which the funds were contributed.

25         (2) This section  shall  DOES not  be construed to  limit or

26    restrict prosecution under the general criminal statutes of  the 

27    THIS state.



   00225'99
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 1         SEC. 23A.  (1) EXCEPT AS OTHERWISE PROVIDED IN SUBSECTION

 2    (2), A PERSON WHO IS NOT A CHARITABLE ORGANIZATION OR A VOLUNTEER

 3    SUPERVISED BY A CHARITABLE ORGANIZATION BUT WHO SOLICITS CONTRI-

 4    BUTIONS, CONDUCTS A FUND-RAISING EVENT, OR CONDUCTS A SALES PRO-

 5    MOTION OR CAMPAIGN FOR A CHARITABLE PURPOSE IS SUBJECT TO THIS

 6    ACT.

 7         (2) A PERSON SUBJECT TO THIS ACT UNDER SUBSECTION (1) IS NOT

 8    REQUIRED TO REGISTER OR FILE REPORTS AS REQUIRED UNDER THIS ACT.

 9         SEC. 23B.  (1) THE ATTORNEY GENERAL SHALL PREPARE A REPORT

10    TO THE SENATE AND TO THE HOUSE OF REPRESENTATIVES PROVIDING IN

11    DETAIL THE MEANS TO BE IMPLEMENTED TO EDUCATE THE PUBLIC REGARD-

12    ING CHARITABLE ORGANIZATIONS AND PROFESSIONAL FUND-RAISERS OPER-

13    ATING IN OR SOLICITING CONTRIBUTIONS IN THIS STATE.

14         (2) THE REPORT SHALL INCLUDE A DESCRIPTION OF THE INFORMA-

15    TION TO BE DISSEMINATED TO THE PUBLIC AND SHALL INCLUDE A PLAN TO

16    DISSEMINATE THE INFORMATION.

17         (3) THE REPORT SHALL BE PRESENTED TO THE SENATE AND TO THE

18    HOUSE OF REPRESENTATIVES NOT LATER THAN 1 YEAR AFTER THE EFFEC-

19    TIVE DATE OF THE AMENDATORY ACT THAT ADDED THIS SECTION.

20         SEC. 23C.  THE PROSECUTING ATTORNEY FOR A COUNTY MAY INVES-

21    TIGATE AND PROSECUTE A PERSON SUBJECT TO THIS ACT IN THE SAME

22    MANNER AS THE ATTORNEY GENERAL.

23         Enacting section 1.  Sections 14 and 22 of the charitable

24    organizations and solicitations act, 1975 PA 169, MCL 400.284 and

25    400.292, are repealed.







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