Z-1226.2 _______________________________________________
HOUSE BILL 2637
_______________________________________________
State of Washington 52nd Legislature 1992 Regular Session
By Representatives Rasmussen, Dellwo, Broback, Paris, Anderson, Wineberry, Roland, Valle, Mitchell, Betrozoff, Bowman, R. King, Jacobsen, Winsley and Brekke; by request of Attorney General
Read first time 01/22/92. Referred to Committee on Judiciary.
AN ACT Relating to charitable solicitations; amending RCW 19.09.020, 19.09.065, 19.09.075, 19.09.076, 19.09.079, 19.09.085, 19.09.097, 19.09.271, 19.09.100, 19.09.190, 19.09.200, 19.09.210, 19.09.230, 19.09.240, 19.09.275, 19.09.305, 19.09.315, and 19.09.340; adding new sections to chapter 19.09 RCW; repealing RCW 19.09.078; and prescribing penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 19.09.020 and 1986 c 230 s 2 are each amended to read as follows:
When used in this chapter, unless the context otherwise requires:
(1) A "bona fide officer or employee" of a charitable organization is one (a) whose conduct is subject to direct control by such organization; (b) who does not act in the manner of an independent contractor in his or her relation with the organization; and (c) whose compensation is not computed on funds raised or to be raised.
(2)
"Charitable organization" means any entity that solicits or collects
contributions from the general public where the contribution is or is purported
to be used to support a charitable activity, but does not include any
commercial fund raiser or commercial fund-raising entity as defined in this
section. "Charitable" (a) is not limited to its common law
meaning unless the context clearly requires a narrower meaning; (b) does not include
religious or political activities; and (c) includes, but is not limited to,
educational, recreational, social, patriotic, legal defense, benevolent, ((or))
and health causes; however, a bona fide institution of higher
education located in the state of Washington, whether public or private, and a
separate foundation whose purpose is to raise funds solely for such an
institution, is not a charitable organization.
(3) "Compensation" means salaries, wages, fees, commissions, or any other remuneration or valuable consideration.
(4) "Contribution" means the payment, donation, promise or grant, for consideration or otherwise, of any money or property of any kind or value which contribution is wholly or partly induced by a solicitation. Reference to dollar amounts of "contributions" or "solicitations" in this chapter means in the case of payments or promises to pay for merchandise or rights of any description, the value of the total amount paid or promised to be paid for such merchandise or rights less the reasonable purchase price to the charitable organization of any such tangible merchandise, rights, or services resold by the organization, and not merely that portion of the purchase price to be applied to a charitable purpose.
(5) "Cost of solicitation" means and includes all direct and indirect costs, expenditures, debts, obligations, salaries, wages, commissions, fees, or other money or thing of value paid or incurred in making a solicitation. Cost of solicitation does not include the reasonable purchase price to the charitable organization of any tangible goods or services resold by the organization as a part of its fund raising activities.
(6) "Entity" means an individual, organization, group, association, partnership, corporation, agency or unit of state government, or any combination thereof.
(7) "General public" or "public" means any individual located in Washington state without a membership or other official relationship with a charitable organization before a solicitation by the charitable organization.
(8)
"((Independent)) Commercial fund raiser" or "((independent))
commercial fund-raising entity" means any entity that for
compensation or other consideration, plans, conducts, manages, or administers
any drive or campaign in this state for the purpose of soliciting contributions
for or on behalf of any charitable organization or charitable or religious
purpose, or that is engaged in the business of or is held out to persons in
this state as independently engaged in the business of soliciting contributions
for such purposes, or the business of planning, conducting, managing, or
carrying on any drive or campaign in this state for such solicitations.
However, a ((nonprofit fund raiser or)) bona fide officer or other
employee of a charitable organization shall not be deemed ((an independent))
a commercial fund raiser.
(9) "Membership" means that for the payment of fees, dues, assessments, etc., an organization provides services and confers a bona fide right, privilege, professional standing, honor, or other direct benefit, in addition to the right to vote, elect officers, or hold office. The term "membership" does not include those persons who are granted a membership upon making a contribution as the result of solicitation.
(10)
(("Nonprofit fund raiser" means an entity registered as a
nonprofit corporation under Title 24 RCW, or any entity exempt from federal
income tax under section 501(c) of the Internal Revenue Code, that solicits and
receives contributions exceeding five thousand dollars in any accounting year
on behalf of a charitable or religious organization other than the nonprofit
corporation.
(11)))
"Other employee" of a charitable organization means any person (a)
whose conduct is subject to direct control by such organization; (b) who does
not act in the manner of any independent contractor in his or her relation with
the organization; and (c) who is not engaged in the business of or held out to
persons in this state as independently engaged in the business of soliciting
contributions for charitable or religious purposes.
(((12)))
(11) "Parent organization" means that part of a charitable
organization that coordinates, supervises, or exercises control over policy,
fund raising, or expenditures, or assists or advises one or more chapters,
branches, or affiliates of such organization in the state of Washington.
(((13)))
(12) "Political activities" means those activities subject to
chapter 42.17 RCW or the Federal Elections Campaign Act of 1971, as amended.
(((14)))
(13) "Religious activities" means those religious,
evangelical, or missionary activities under the direction of a religious
organization duly organized and operating in good faith that are entitled to
receive a declaration of current tax exempt status for religious purposes from
the United States government and the duly organized branches or chapters of
those organizations.
(((15)
"Secretary" means the secretary of state.
(16))) (14)
"Solicitation" means any oral or written request for a contribution,
including the solicitor's offer or attempt to sell any property, rights,
services, or other thing in connection with which:
(a) Any appeal is made for any charitable purpose; or
(b) The name of any charitable organization is used as an inducement for consummating the sale; or
(c) Any statement is made that implies that the whole or any part of the proceeds from the sale will be applied toward any charitable purpose or donated to any charitable organization.
The solicitation shall be deemed completed when made, whether or not the person making it receives any contribution or makes any sale.
Bingo activities, raffles, and amusement games conducted under chapter 9.46 RCW and applicable rules of the Washington state gambling commission are specifically excluded and shall not be deemed a solicitation under this chapter.
Sec. 2. RCW 19.09.065 and 1986 c 230 s 3 are each amended to read as follows:
(1)
All charitable organizations((, independent)) and commercial fund
raisers((, and nonprofit fund raisers, as defined in RCW 19.09.020,))
shall register with the ((secretary)) attorney general prior to
conducting any solicitations.
(2) Failure to register as required by this chapter is a violation of this chapter.
(3)
Information provided to the ((secretary)) attorney general
pursuant to this chapter shall be a public record except as otherwise stated
in this chapter.
(4)
Registration shall not be considered or be represented as an endorsement by the
((secretary)) attorney general or the state of Washington.
Sec. 3. RCW 19.09.075 and 1986 c 230 s 4 are each amended to read as follows:
An
application for registration as a charitable organization shall be submitted in
the form prescribed by rule by the ((secretary)) attorney
general, containing, but not limited to, the following:
(1) The name, address, and telephone number of the charitable organization;
(2) The name(s) under which the organization will solicit contributions;
(3) The name, address, and telephone number of the officers of the organization;
(4) The names of the three officers or employees receiving the greatest amount of compensation from the organization;
(5) The purpose of the organization;
(6)(a) Whether the organization is exempt from federal income tax; and if so the organization shall attach to its application a true copy of the letter by which the internal revenue service granted such status; and
(b)
((Whether the financial affairs of the organization are audited by an
independent entity and, if so,)) The name and address of the entity that
prepares, reviews, or audits the financial statement of the organization as
well as such financial statement as may be required by rule of the attorney
general;
(7) A solicitation report of the organization for the preceding accounting year including:
(a) The number and types of solicitations conducted;
(b) The total dollar value of support received from solicitations and from all other sources received on behalf of the charitable purpose of the charitable organization;
(c) The total amount of money applied to charitable purposes, fund raising costs, and other expenses;
(d)
The name, address, and telephone number of any ((independent)) commercial
fund raiser used by the organization; and
(8) An
irrevocable appointment of the ((secretary)) attorney general to
receive service of process in noncriminal proceedings as provided in RCW
19.09.305.
The
requirements of subsection (7) (b) and (c) of this section may be satisfied by
the submission of such federal tax forms as may be approved by rule of the ((secretary))
attorney general.
The
application shall be signed by the president, treasurer, or comparable officer
of the organization ((and)) whose signature shall be notarized. The
application shall be submitted with a nonrefundable((, ten-dollar))
filing fee in an amount to be established by the attorney general by rule.
If the ((secretary)) attorney general determines that the
application is complete, the application shall be filed and the applicant
deemed registered.
Sec. 4. RCW 19.09.076 and 1986 c 230 s 5 are each amended to read as follows:
The application requirements of RCW 19.09.075 do not apply to the following:
(1) Any charitable organization raising less than five thousand dollars in any accounting year when all the activities of the organization, including all fund raising activities, are carried on by persons who are unpaid for their services and no part of the charitable organization's assets or income inures to the benefit of or is paid to any officer or member of the organization;
(2)
Any charitable organization located outside of the state of Washington if the
organization files the following with the ((secretary)) attorney
general:
(a) The registration documents required under the charitable solicitation laws of the state in which the charitable organization is located;
(b) The registration required under the charitable solicitation laws of the state of California and the state of New York; and
(c)
Such federal income tax forms as may be required by rule of the ((secretary))
attorney general.
Sec. 5. RCW 19.09.079 and 1986 c 230 s 7 are each amended to read as follows:
An
application for registration as ((an independent)) a commercial
fund raiser shall be submitted in the form prescribed by the ((secretary))
attorney general, containing, but not limited to, the following:
(1)
The name, address, and telephone number of the ((independent)) commercial
fund-raising entity;
(2)
The name(s), address(es), and telephone number(s) of the owner(s) and principal
officer(s) of the ((independent)) commercial fund-raising entity;
(3)
The name, address, and telephone number of the individual responsible for the
activities of the ((independent)) commercial fund-raising entity
in Washington;
(4) A list of states and Canadian provinces in which fund raising has been performed;
(5)
The names of the three officers or employees receiving the greatest amount of
compensation from the ((independent)) commercial fund-raising
entity;
(6) ((Whether
the financial affairs of the independent fund raiser are audited by an
independent entity, and, if so,)) The name and address of the entity
that prepares, reviews, or audits the financial statement of the
organization, and such financial statement as may be required by rule of the
attorney general;
(7) A
solicitation report of the ((independent)) commercial 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 required to register under RCW 19.09.065 for whom fund raising services have been performed;
(c)
The total value of contributions received on behalf of charitable organizations
required to register under RCW 19.09.065 by the ((independent)) commercial
fund raiser, affiliate of the ((independent)) commercial fund
raiser, or any entity retained by the ((independent)) commercial
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 ((independent))
commercial fund raiser;
(8)
The name, address, and telephone number of any ((independent)) commercial
fund raiser that was retained in the conduct of providing fund raising
services; and
(9) An
irrevocable appointment of the ((secretary)) attorney general to
receive service of process in noncriminal proceedings as provided in RCW
19.09.305.
The
application shall be signed by an officer or owner of the ((independent))
commercial fund raiser and shall be submitted with a nonrefundable((,
fifty-dollar filing)) fee in an amount to be established by rule of the
attorney general. If the ((secretary)) attorney general
determines that the application is complete, the application shall be filed and
the applicant deemed registered.
Sec. 6. RCW 19.09.085 and 1986 c 230 s 8 are each amended to read as follows:
(1)
Registration under this chapter shall cease to be effective ((for))
after one year, or on the ((end of)) fifteenth day of
the fifth month after the organization's accounting year ends,
whichever comes first.
(2)
Reregistration required under RCW 19.09.075 ((and 19.09.078)) shall be
((received by the secretary)) submitted to the attorney general
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)) submitted to the attorney general no later than the
fifteenth day of the third month after the organization's accounting period
ends.
(4)
Entities 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 (6)((,)) or 19.09.079 (1) through (6)((,
or 19.09.078 (1) through (4))).
(5)
The ((secretary)) attorney general may notify entities 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.
Sec. 7. RCW 19.09.097 and 1986 c 230 s 10 are each amended to read as follows:
(1) No charitable organization may contract with a commercial fund raiser for any fund raising service or activity unless its contract requires that both parties comply with the law and permits officers of the charity reasonable access to: (a) The fund raisers' financial records relating to that charitable organization; and (b) the fund raisers' operations including without limitation the right to be present during any telephone solicitation. In addition, the contract shall specify the amount of raised funds that the charitable organization will receive or the method of computing that amount, the amount of compensation of the commercial fund raiser or the method of computing that amount, and whether the compensation is fixed or contingent.
(2)
Before ((contracting)) a charitable organization may contract with a
commercial fund raiser for any fund raising service or activity, the
charitable organization and ((independent)) commercial fund
raiser shall complete a registration form. The registration shall be filed by
the charitable organization with the ((secretary)) attorney general,
in the form prescribed by the ((secretary)) attorney general,
within five working days of the execution of the contract containing, but not
limited to the following information:
(((1)))
(a) The name and registration number of the ((independent)) commercial
fund raiser;
(((2)))
(b) The name of the surety or sureties issuing the bond required by RCW
19.09.190, the aggregate amount of such bond or bonds, the bond number(s),
original effective date(s), and termination date(s);
(((3)))
(c) The name and registration number of the charitable organization;
(((4)))
(d) The name of the representative of the ((independent)) commercial
fund raiser who will be responsible for the conduct of the fund raising;
(((5)))
(e) The type(s) of service(s) to be provided by the ((independent))
commercial fund raiser;
(((6)))
(f) The dates such service(s) will begin and end;
(((7)))
(g) The terms of the agreement between the charitable organization and
((independent)) commercial fund raiser relating to:
(((a)))
(i) Amount or percentages of amounts to inure to the charitable
organization;
(((b)))
(ii) 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)))
(iii) 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)))
(iv) The manner in which contributions received directly by the
charitable organization, not the result of services provided by the ((independent))
commercial fund raiser, will be identified and used in computing the fee
owed to the ((independent)) commercial fund raiser; and
(((8)))
(h) 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 ((independent)) commercial fund raiser or
relative by blood or marriage thereof is an owner or officer of any such
entity.
(3) A true and correct copy of the contract must be filed with the attorney general before the commencement of any campaign.
(4)
The registration form shall be submitted with a nonrefundable((, five-dollar))
filing fee in an amount to be established by rule of the attorney general
and shall be signed by an owner or principal officer of the ((independent))
commercial fund raiser and the president, treasurer, or comparable
officer of the charitable organization.
Sec. 8. RCW 19.09.271 and 1986 c 230 s 17 are each amended to read as follows:
(((1)))
Any charitable organization((, nonprofit fund raiser,)) or ((independent))
commercial fund raiser who, after notification by the ((secretary))
attorney general, fails to properly register under this chapter by the
end of the first business day following the issuance of the notice, is liable
for a late filing fee ((of five dollars per day from the date of the notice
until the registration is properly completed and filed)) in an amount to
be established by rule of the attorney general. The late filing fee is in
addition to any other filing fee provided by this chapter.
(((2)
The secretary shall notify the attorney general of any entity liable for late
filing fees under subsection (1) of this section.))
Sec. 9. RCW 19.09.100 and 1986 c 230 s 11 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
orally 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)
Whether the charitable organization is or is not properly registered under this
chapter, and if registered, that information relating to its financial affairs
is available by contacting the office of the secretary of state, giving the
secretary's toll-free telephone number, if available.
(2)
Each person or organization soliciting charitable contributions shall
conspicuously disclose in writing to each person or organization solicited:
(a)
If the solicitation is conducted by a charitable organization, the percentage
relationship between (i) the total amount of money applied to charitable
purposes; and (ii) the dollar value of support received from solicitations and
from all other sources received on behalf of the charitable purpose of the
organization, as contained in the organization's most recent solicitation
report filed in accordance with RCW 19.09.075(7);
(b)
If the solicitation is conducted by an independent or nonprofit fund raiser,
the percentage relationship between (i) the amount of money disbursed to
charitable organizations for charitable purposes; and (ii) the total value of
contributions received on behalf of charitable organizations by the independent
or nonprofit fund raiser, as contained in the fund raiser's most recent
solicitation report filed in accordance with RCW 19.09.079(7) or 19.09.078.
(3)
Each person or organization soliciting charitable contributions by telephone
shall make the disclosures required by RCW 19.09.100(2) (a) or (b) in writing
within five days of the receipt of any contribution. If the person or
organization sends any materials to the person or organization solicited before
the receipt of any contribution, those materials shall include the disclosures
required in RCW 19.09.100(1)(d), and 19.09.100 (2) (a) or (b), whichever is
applicable.
(4))) A
charitable organization, whether or not required to register pursuant to this
chapter, that directly solicits contributions from the public in this state
shall make the following clear and conspicuous disclosures at the point of
solicitation:
(a) The true name of the individual making the solicitation;
(b) The identity of the charitable organization and the city of the principal place of business of the charitable organization;
(c) If requested by the solicitee, the registration number assigned to the charitable organization by the attorney general;
(d) The toll-free number for the donor to obtain additional financial disclosure information on file with the attorney general.
(2) A commercial fund raiser shall clearly and conspicuously disclose at the point of solicitation: (a) The name of the individual making the solicitation; (b) the name of the entity for which the fund raiser is an agent or employee and the name and city of the charitable organization for which the solicitation is being conducted; and (c) if requested by the solicitee, the toll-free number for the donor to obtain additional financial disclosure information on file with the attorney general. The disclosure must be made during an oral solicitation of a contribution, and at the same time at which a written request for a contribution is made.
(3) A person or organization soliciting charitable contributions by telephone shall make the disclosures required under subsection (1) or (2) of this section in the course of the solicitation but prior to asking for a commitment for a contribution from the solicitee, and in writing to any solicitee that makes a pledge within five days of making the pledge. If the person or organization sends any materials to the person or organization solicited before the receipt of any contribution, those materials shall include the disclosures required in subsection (1) or (2) of this section, whichever is applicable.
(4) In the case of a solicitation by advertisement or mass distribution, including posters, leaflets, automatic dialing machines, publication, and audio or video broadcasts, it shall be clearly and conspicuously disclosed in the body of the solicitation material that: (a) The solicitation is conducted by a named commercial fund raiser, if it is; (b) the notice of solicitation required by the charitable solicitation act is on file with the attorney general's office; and (c) the potential donor can obtain additional information at a toll-free number.
(5) A container or vending machine displaying a solicitation must also display in a clear and conspicuous manner the name of the charitable organization for which funds are solicited, the name, residence address, and telephone number of the individual and any commercial fund raiser responsible for collecting funds placed in the containers or vending machines, and the following statement: "This charity is registered with the attorney general's office under the charitable solicitation act, registration #...."
(6) A commercial fund raiser shall not represent that tickets to any fund raising event will be donated for use by another person unless all the following requirements are met:
(a) The commercial fund raiser prior to conducting a solicitation has written commitments from persons stating that they will accept donated tickets and specifying the number of tickets they will accept;
(b) The written commitments are kept on file by the commercial fund raiser for three years and are made available to the attorney general on demand;
(c) The contributions solicited for donated tickets may not be more than the amount representing the number of ticket commitments received from persons and kept on file under (a) of this subsection; and
(d) Not later than seven calendar days prior to the date of the event for which ticket donations are solicited, the commercial fund raiser shall give all donated tickets to the persons who made the written commitments to accept them.
(7) Each 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 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 such person is unpaid for his or her services;
(c)
The person soliciting the charitable contribution is a member, staffer, 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)) a commercial fund raiser.
(((5)))
(8) If the charitable organization is associated with, or has a name
that is similar to, any unit of government each person or organization
soliciting contributions shall disclose to each person solicited whether the
charitable organization is or is not part of any unit of government and the
true nature of its relationship to the unit of government.
(((6)))
(9) No person may, in connection with the solicitation of contributions or
the sale of goods, magazine, newspaper advertising, or any other service, use
the name "police," "sheriff," "fire fighter,"
"firemen," or a similar name unless properly authorized by a bona
fide police, sheriff, or fire fighter organization or police, sheriff, or fire
department. A proper authorization must be in writing and signed by two
authorized officials of the organization or department.
(10) A charitable organization shall comply with all local governmental regulations that apply to soliciting for or on behalf of charitable organizations.
(((7)))
(11) 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. The attorney general may, by rule, define
specific false, misleading, or deceptive practices to be deemed violations of
this section.
(((8)))
(12) Solicitations shall not be conducted by a charitable organization
or ((independent)) commercial fund raiser 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 or has been subject to any permanent injunction or
administrative order or judgment under RCW 19.86.080 or 19.86.090, involving a
violation or violations of RCW 19.86.020, within the past ten years, or of
restraining a false or misleading promotional plan involving solicitations for
charitable organizations.
(13) No charitable organization or commercial fund raiser subject to this chapter may use or exploit the fact of registration under this chapter so as to lead the public to believe that registration constitutes an endorsement or approval by the state, but the use of the following is not deemed prohibited: "Registered with the Washington state attorney general as required by law. Registration number ...."
(14) No entity may engage in any solicitation for contributions for or on behalf of any charitable organization or commercial fund raiser unless the charitable organization or commercial fund raiser is registered with the attorney general.
(15) No entity may engage in any solicitation for contributions unless it complies with all provisions of this chapter.
(16)(a) No entity may place a telephone call for the purpose of charitable solicitation that will be received by the solicitee before eight o'clock a.m. or after nine o'clock p.m.
(b) No entity may, while placing a telephone call for the purpose of charitable solicitation, engage in any conduct the natural consequence of which is to harass, intimidate, or torment any person in connection with the telephone call.
(17)
Failure to comply with subsections (1) through (((8))) (16) of
this section is a violation of this chapter.
Sec. 10. RCW 19.09.190 and 1986 c 230 s 16 are each amended to read as follows:
Every
((independent)) commercial fund raiser who (1) directly or
indirectly receives contributions from the public on behalf of any charitable
organization; or (2) is compensated based upon funds raised or to be raised,
number of solicitations made or to be made, or any other similar method; or (3)
incurs or is authorized to incur expenses on behalf of the charitable
organization; or (4) has not been registered with the ((secretary)) attorney
general as ((an independent)) a commercial fund raiser for the
preceding accounting year shall execute a surety bond as principal with one or
more sureties whose liability in the aggregate as such sureties will equal at
least fifteen thousand dollars. The ((secretary)) attorney general
may, by rule, provide for the reduction and reinstatement of the bond required
by this section.
The
issuer of the surety bond shall be licensed to do business in this state, and
shall promptly notify the ((secretary)) attorney general when
claims or payments are made against the bond or when the bond is canceled.
The bond shall be filed with the ((secretary)) attorney general
in the form prescribed by the ((secretary)) attorney general.
The bond shall run to the state and to any person who may have a cause of
action against the obligor of said bond for any malfeasance, misfeasance, or
deceptive practice in the conduct of such solicitation.
Sec. 11. RCW 19.09.200 and 1986 c 230 s 12 are each amended to read as follows:
(1)
Charitable organizations and ((independent)) commercial fund
raisers shall maintain accurate, current, and readily available books and
records at their usual business locations until at least three years have
elapsed following the effective period to which they relate.
(2) Each commercial fund raiser and charitable organization shall maintain a record of the names of donors, their addresses, and the date the donations were received for one year after a solicitation campaign has been completed. No donor list, information, or documentation required to be maintained under this subsection that is obtained by the attorney general under this chapter, unless otherwise ordered by a court for good cause shown, may be a public record.
(3)
All contracts between ((independent)) commercial fund raisers and
charitable organizations shall be in writing, and true and correct copies of
such contracts or records thereof shall be kept on file in the various offices
of the charitable organization and the ((independent)) commercial
fund raiser for a three-year period. Such records and contracts shall be
available for inspection and examination by the attorney general or by the
county prosecuting attorney. A copy of such contract or record shall be
submitted by the charitable organization or ((independent)) commercial
fund raiser, within ten days, following receipt of a written demand therefor
from the attorney general or county prosecutor.
Sec. 12. RCW 19.09.210 and 1986 c 230 s 13 are each amended to read as follows:
Upon the request of the attorney general or the county prosecutor, a charitable organization or commercial fund raiser shall submit a financial statement containing, but not limited to, the following information:
(1) The gross amount of the contributions pledged and the gross amount collected.
(2) The amount thereof, given or to be given to charitable purposes represented together with details as to the manner of distribution as may be required.
(3) The aggregate amount paid and to be paid for the expenses of such solicitation.
(4)
The amounts paid to and to be paid to ((independent)) commercial
fund raisers or charitable organizations.
(5) Copies of any annual or periodic reports furnished by the charitable organization, of its activities during or for the same fiscal period, to its parent organization, subsidiaries, or affiliates, if any.
Sec. 13. RCW 19.09.230 and 1986 c 230 s 14 are each amended to read as follows:
No
charitable organization, ((independent)) commercial fund raiser,
or other entity may knowingly use the name, symbol, or emblem of any
other person for the purpose of soliciting contributions from persons in this
state without the written consent of such other person. Such consent may be
deemed to have been given by anyone who is a director, trustee, or other
authorized officer, employee, agent, or ((independent)) commercial
fund raiser of the charitable organization, and a copy of the written
consent must be kept on file by the charitable organization or commercial fund
raiser and made available to the attorney general upon demand.
A person may be deemed to have used the name of another person for the purpose of soliciting contributions if such latter person's name is listed on any stationery, advertisement, brochure, or correspondence of the charitable organization or person or if such name is listed or represented to any one who has contributed to, sponsored, or endorsed the charitable organization or person, or its or his activities.
The attorney general may revoke or deny any application for registration that violates this section.
Sec. 14. RCW 19.09.240 and 1986 c 230 s 15 are each amended to read as follows:
No
charitable organization, ((independent)) commercial fund raiser,
or other person soliciting contributions for or on behalf of a charitable
organization may use a name, symbol, emblem, or statement so closely
related or similar to that used by another charitable organization or
governmental agency that the use thereof would tend to confuse or mislead the
public. The attorney general may revoke or deny any application for
registration that violates this section.
Sec. 15. RCW 19.09.275 and 1986 c 230 s 18 are each amended to read as follows:
Any
person who willfully and knowingly violates any provision of this
chapter or who willfully 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 gross misdemeanor
punishable under chapter 9A.20 RCW.
Any
person who violates any provisions of this chapter or who 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 misdemeanor
punishable under chapter 9A.20 RCW.
Any person who willfully and knowingly violates RCW 19.09.100(9) or who falsely claims, in the course of a charitable solicitation, to be a law enforcement officer, is guilty of a class C felony punishable under chapter 9A.20 RCW.
Sec. 16. RCW 19.09.305 and 1983 c 265 s 7 are each amended to read as follows:
When a
person or an organization registered under this chapter, or its president,
treasurer, or comparable officers, cannot be found after reasonably diligent
effort, the ((secretary of state)) attorney general shall be an
agent of such person or organization upon whom process may be served. Service
on the ((secretary)) attorney general shall be made by delivering
to the ((secretary)) attorney general or the ((secretary's))
attorney general's designee duplicate copies of such process, and a ((twenty-five
dollar)) filing fee to be established by rule of the attorney general.
Thereupon, the ((secretary)) attorney general shall immediately
cause one of the copies thereof to be forwarded to the registrant at the most
current address shown in the ((secretary's)) attorney general's
files. Any service so had on the ((secretary)) attorney general
shall be returnable in not less than thirty days.
Any fee under this section shall be taxable as costs in the action.
The ((secretary))
attorney general shall maintain a record of all process served on the ((secretary))
attorney general under this section, and shall record the date of
service and the ((secretary's)) attorney general's action with
reference thereto.
Nothing in this section limits or affects the right to serve process required or permitted to be served on a registrant in any other manner now or hereafter permitted by law.
Sec. 17. RCW 19.09.315 and 1983 c 265 s 17 are each amended to read as follows:
The ((secretary))
attorney general may establish, by rule, standard forms and procedures
for the efficient administration of this chapter. The ((secretary)) attorney
general may issue such publications, reports, or information from the
records as may be useful to the solicited public and charitable organizations.
To defray the costs of any such publication, the ((secretary)) attorney
general is authorized to charge a reasonable fee to cover the costs of
preparing, printing, and distributing such publications.
NEW SECTION. Sec. 18. The attorney general, in the attorney general's discretion, may:
(1) Annually, or more frequently, make such public or private investigations within or without this state as the attorney general deems necessary to determine whether any registration should be granted, denied, revoked, or suspended, or whether any person has violated or is about to violate a provision of this chapter or any rule adopted or order issued under this chapter, or to aid in the enforcement of this chapter or in the prescribing of rules and forms under this chapter; and
(2) Publish information concerning a violation of this chapter or a rule adopted or order issued under this chapter.
NEW SECTION. Sec. 19. For the purpose of any investigation or proceeding under this chapter, the attorney general or any officer designated by the attorney general may administer oaths and affirmations, subpoena witnesses, compel their attendance, take evidence, and require the production of any books, papers, correspondence, memoranda, agreements, or other documents or records which the attorney general deems relevant or material to the inquiry.
In case of willful failure on the part of a person to comply with a subpoena lawfully issued by the attorney general or on the refusal of a witness to testify to matters regarding which the witness may be lawfully interrogated, the superior court of a county, on application of the attorney general and after satisfactory evidence of willful disobedience, may compel obedience by proceedings for contempt, as in the case of disobedience of a subpoena issued from the court or a refusal to testify therein.
NEW SECTION. Sec. 20. If it appears to the attorney general that a person has engaged or is about to engage in an act or practice constituting a violation of a provision of this chapter or a rule adopted or order issued under this chapter, the attorney general may, in the attorney general's discretion, issue an order directing the person to cease and desist from continuing the act or practice. Reasonable notice of and opportunity for a hearing shall be given. The attorney general may issue a temporary order pending the hearing, which shall remain in effect until ten days after the hearing is held and which shall become final if the person to whom the notice is addressed does not request a hearing within fifteen days after the receipt of the notice.
NEW SECTION. Sec. 21. (1) The attorney general may assess against any person or organization who violates this chapter, or any rule adopted under this chapter, a civil penalty of not more than one thousand dollars for each violation.
(2) Such person or organization shall be afforded the opportunity for a hearing, upon request made to the attorney general within thirty days after the date of issuance of the notice of assessment. The hearing shall be conducted in accordance with chapter 34.05 RCW.
(3) If any person fails to pay an assessment after it has become a final and unappealable order, or after the court has entered final judgment in favor of the state, the attorney general may recover the amount assessed by action in the appropriate superior court. In such action, the validity and appropriateness of the final order imposing the penalty shall not be subject to review.
NEW SECTION. Sec. 22. The attorney general may from time to time make, amend, and rescind such rules, forms, and orders as are necessary to carry out the provisions of this chapter including, without limitation, rules and forms governing applications and reports, rules defining any terms whether or not used in this chapter insofar as the definitions are consistent with this chapter, and rules prohibiting such unfair and deceptive practices as the attorney general may choose to define. The attorney general in his or her discretion may honor requests from interested persons for interpretive opinions.
NEW SECTION. Sec. 23. The administrative procedure act, chapter 34.05 RCW, shall wherever applicable herein govern the rights, remedies, and procedures respecting the administration of this chapter.
Sec. 24. RCW 19.09.340 and 1983 c 265 s 12 are each amended to read as follows:
(1) The commission by any person of an act or practice prohibited by this chapter is hereby declared to be an unfair act or practice or unfair method of competition in the conduct of trade or commerce for the purpose of application of the Consumer Protection Act, chapter 19.86 RCW.
(2) ((The
secretary may refer such evidence, as may be available, concerning violations
of this chapter to the attorney general or the prosecuting attorney of the
county wherein the alleged violation arose.)) In addition to any other action
they might commence, the attorney general or the county prosecuting attorney
may bring an action in the name of the state((, with or without such reference,))
against any person to restrain and prevent the doing of any act or practice
prohibited by this chapter: PROVIDED, That this chapter shall be considered in
conjunction with chapters 9.04 and 19.86 RCW, as now or hereafter amended, and
the powers and duties of the attorney general and the prosecuting attorney as
they may appear in the aforementioned chapters, shall apply against all persons
subject to this chapter.
NEW SECTION. Sec. 25. RCW 19.09.078 and 1986 c 230 s 6 are each repealed.
NEW SECTION. Sec. 26. Sections 18 through 23 of this act are each added to chapter 19.09 RCW.
NEW SECTION. Sec. 27. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.