AN ACT Relating to charitable solicitations; amending RCW 19.09.075, 19.09.079, 19.09.085, 19.09.100, and 19.09.275; adding a new section to chapter 19.09 RCW; and prescribing penalties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1. Section 5, chapter 265, Laws of 1983 and RCW 19.09.075 are each amended to read as follows:

An application for registration as a charitable organization shall be submitted in the form prescribed by the secretary and shall contain the following:

(1) The name, address, and telephone number of the charitable organization;

(2) The name under which the organization will solicit contributions;

(3) The name, address, and telephone number of the president and treasurer, or comparable officers, of the organization;

(4) The purpose of the solicitations;

(5) A solicitation history of the organization including:

(a) The number of solicitation campaigns over the past three years;

(b) The total amount of money applied to the costs of the solicitations over the past three years;

(d) The number of solicitation campaigns reported under subsection (5)(a) of this section for which the organization used a professional fund raiser; and

((~~(6)~~)) (e) The name, address, and telephone number of any professional fund raiser used by the organization over the past three years;

(6) Whether the organization is exempt from federal income tax;

(7) The name and address of any independent entity that has audited the financial affairs of the organization during the past three years; and

(8) An irrevocable appointment of the secretary to receive service of process in noncriminal proceedings as provided in RCW 19.09.305.

The requirements of subsections (5)(b) and (c) of this section may be satisfied by the submission of an independent certified audit or such federal tax forms as may be approved by rule of the secretary.

The application shall be submitted with a fifteen-dollar filing fee and shall be signed by the president, treasurer, or comparable officer of the organization. If the secretary determines that the application is complete, the application shall be filed and the applicant deemed registered.

Sec. 2. Section 15, chapter 265, Laws of 1983 and RCW 19.09.079 are each amended to read as follows:

An application for registration as a professional fund raiser shall be submitted in the form prescribed by the secretary and shall contain the following:

(1) The name, address, and telephone number of the professional fund raiser;

(2) A solicitation history of the professional fund raiser for the past three years including:

(a) Number of solicitation campaigns;

(b) Names of charitable organizations for whom fund raising has been performed; ((~~and~~))

((~~(3)~~)) (d) The name(s), address(es), and telephone number(s) of the owner(s) and principal officer(s) of the professional fund-raising entity;

(3) The name, address, and telephone number of the individual responsible for the activities of the professional fund-raising entity in Washington;

(4) Whether the financial affairs of the professional fund raiser are audited by an independent entity and, if so, the name and address of the entity;

(5) A solicitation report of the professional fund-raising entity for the preceding accounting year, including:

(a) The number and types of fund-raising services conducted;

(b) The names of charitable organizations for whom fund-raising services have been performed;

(c) The total value of contributions received on behalf of charitable organizations by the professional fund raiser, affiliate of the professional fund raiser, or any entity retained by the professional fund raiser; and

(d) The amount of money disbursed to charitable organizations for charitable purposes, net of fund-raising costs paid by the charitable organization as stipulated in any agreement between charitable organizations and the professional fund raiser;

(6) An irrevocable appointment of the secretary to receive service of process in noncriminal proceedings as provided in RCW 19.09.305.

The application shall be submitted with a fifteen-dollar nonrefundable filing fee and shall be signed by the professional fund raiser. If the secretary determines that the application is complete, the application shall be filed and the applicant deemed registered.

Sec. 3. Section 8, chapter 265, Laws of 1983 and RCW 19.09.085 are each amended to read as follows:

(1) Registration under this chapter shall be effective for ((~~two years.~~

~~(2)~~)) one year or the end of the organization's accounting year, whichever comes first.

(2) Reregistration required under RCW 19.09.075 shall be received by the secretary no later than the fifteenth day of the fifth month after the organization's accounting period ends.

(3) Reregistration required under RCW 19.09.079 shall be received by the secretary no later than the fifteenth day of the third month after the organization's accounting period ends.

(4) Persons and charitable organizations required to register under this chapter shall file a notice of change of information within thirty days of any change in the information contained in RCW 19.09.075 (1) through (4) and (6) and 19.09.079.

((~~(3)~~)) (5) The secretary may notify persons and charitable organizations registered under this chapter of the need to reregister upon the expiration of their current registration. The notification shall be by mail, sent at least sixty days prior to the expiration of their current registration.

NEW SECTION. Sec. 4. A new section is added to chapter 19.09 RCW to read as follows:

Before contracting for any fund-raising service or activity, the charitable organization and professional fund raiser shall complete a registration form. The registration shall be filed by the professional fund raiser with the secretary in the form prescribed by the secretary within five working days of the execution of the contract and containing, but not limited to, the following information:

(1) The name and registration number of the professional fund raiser;

(2) The name and registration number of the charitable organization;

(3) The name of the representative of the professional fund raiser who will be responsible for the conduct of the fund raising;

(4) The type(s) of service(s) to be provided by the professional fund raiser;

(5) The dates such service(s) will begin and end;

(6) The terms of the agreement between the charitable organization and professional fund raiser relating to:

(a) Amount or percentages of amounts to inure to the charitable organization;

(b) Limitations placed on the maximum amount to be raised by the fund raiser, if the amount to inure to the charitable organization is not stated as a percentage of the amount raised;

(c) Costs of fund raising that will be the responsibility of the charitable organization, regardless of whether paid as a direct expense, deducted from the amounts disbursed, or otherwise; and

(d) The manner in which contributions received directly by the charitable organization, not the result of services provided by the professional fund raiser, will be identified and used in computing the fee owed to the professional fund raiser; and

(7) The names of any entity to which more than ten percent of the total anticipated fund-raising cost is to be paid, and whether any principal officer or owner of the professional fund raiser or relative by blood or marriage thereof is an owner or officer of any such entity.

The registration form shall be submitted with a two-dollar filing fee and shall be signed by an owner or principal officer of the professional fund raiser and the president, treasurer, or comparable officer of the charitable organization.

Sec. 5. Section 10, chapter 13, Laws of 1973 1st ex. sess. as last amended by section 9, chapter 265, Laws of 1983 and RCW 19.09.100 are each amended to read as follows:

The following conditions apply to solicitations as defined by RCW 19.09.020:

(1) Each person or organization soliciting charitable contributions shall disclose verbally or in writing to each person or organization solicited:

(a) The name of the individual making the solicitation;

(b) The name of the charitable organization;

(c) The purpose of the solicitation, and the name of the organization that will receive the funds contributed; ((~~and~~))

(d) ((~~Upon request,~~)) The estimated percentage of the money collected which will be applied to the cost of the solicitation or to the charitable purpose; and

((~~(2)~~)) (e) That information relating to its financial affairs is on file with the secretary of state;

(2) A person or organization soliciting charitable contributions shall not represent orally or in writing that:

(a) The charitable contribution is tax deductible unless the charitable organization for which charitable contributions are being solicited or to which tickets for fund-raising events or other services or goods will be donated, has applied for and received from the federal internal revenue service a letter of determination granting tax-deductible status to the charitable organization;

(b) The person soliciting the charitable contribution is a volunteer or words of similar meaning or effect that create the impression that the person soliciting is not a paid solicitor unless the person is unpaid for his or her services;

(c) The person soliciting the charitable contribution is a member, staff member, helper, or employee of the charitable organization or words of similar meaning or effect that create the impression that the person soliciting is not a paid solicitor if the person soliciting is employed, contracted, or paid by an independent fund raiser.

(3) A charitable organization shall comply with all local governmental regulations which apply to soliciting for or on behalf of charitable organizations;

((~~(3)~~)) (4) The advertising material and the general promotional plan for a solicitation shall not be false, misleading, or deceptive, and shall afford full and fair disclosure; and

((~~(4)~~)) (5) Solicitations shall not be conducted by a charitable organization that has, or if a corporation, its officers, directors, or principals have, been convicted of a crime involving solicitations for or on behalf of a charitable organization in this state, the United States, or any other state or foreign country within the past ten years and has been subject to any permanent injunction or administrative order or judgment, under the provisions of RCW 19.86.080 or 19.86.090, involving a violation or violations of the provisions of RCW 19.86.020, within the past ten years, or of restraining a false or misleading promotional plan involving solicitations for charitable organizations.

Failure to comply with subsections (1) through ((~~(4)~~)) (5) of this section is a violation of this chapter.

Sec. 6. Section 14, chapter 222, Laws of 1977 ex. sess. as last amended by section 11, chapter 265, Laws of 1983 and RCW 19.09.275 are each amended to read as follows:

Any person who ((~~wilfully and knowingly~~)) violates any provisions of this chapter or who ((~~shall wilfully and knowingly~~)) gives false or incorrect information to the secretary, attorney general, or county prosecuting attorney in filing statements required by this chapter, whether or not such statement or report is verified, ((~~shall be deemed~~)) is guilty of a misdemeanor ((~~as provided in~~)) punishable under chapter 9A.20 RCW.

Any person who wilfully and knowingly violates any provision of this chapter or who wilfully and knowingly gives false or incorrect information to the secretary, attorney general, or county prosecuting attorney in filing statements required by this chapter, whether or not such statement or report is verified, is guilty of a class B felony punishable under chapter 9A.20 RCW.