5237-S2

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, 11.110.010, 11.110.040, 11.110.050, 11.110.060, 11.110.070, 11.110.075, 11.110.080, 11.110.125, and 11.110.130; adding a new section to chapter 43.07 RCW; adding new sections to chapter 19.09 RCW; creating new sections; repealing RCW 19.09.078; prescribing penalties; providing an effective date; and declaring an emergency.

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.

(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~~)) within this state directly or indirectly solicits or receives 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 or receiving 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~~)) the following shall not be deemed ((~~an independent~~)) a commercial fund raiser or "commercial fund-raising entity": (a) Any entity that provides fund-raising advice or consultation to a charitable organization within this state but neither directly nor indirectly solicits or receives any contribution for or on behalf of any such charitable organization; and (b) a bona fide officer or other employee of a charitable organization.

(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 related foundations, supporting organizations, 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)~~)) (14) "Secretary" means the secretary of state.

((~~(16)~~)) (15) "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 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 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 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, 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 or persons accepting responsibility for 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 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;

(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;

(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 to receive service of process in noncriminal proceedings as provided in RCW 19.09.305; and

(9) The total revenue of the preceding fiscal year.

((~~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.~~)) The solicitation report required to be submitted under subsection (7) of this section shall be in the form prescribed by rule by the secretary, or as agreed to by the secretary and a charitable organization or a group of charitable organizations. A consolidated application for registration may, at the option of the charitable organization, be submitted by a parent organization for itself and any or all of its related foundations, supporting organizations, chapters, branches, or affiliates in the state of Washington.

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 which shall be in an amount to be established by the secretary by rule. In determining the amount of this application fee, the secretary may consider factors such as the entity's annual budget and its federal income tax status. If the secretary determines that the application is complete, the application shall be filed and the applicant deemed registered.

The secretary shall notify the director of veterans' affairs upon receipt of an application for registration as a charitable organization from an entity that purports to raise funds to benefit veterans of the United States military services. The director of veterans' affairs may advise the secretary and the attorney general of any information, reports, or complaints regarding such an organization.

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:

(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

All entities soliciting charitable donations shall comply with the requirements of RCW 19.09.100.

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, 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;

(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 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 secretary. If the secretary 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 be effective for one year((~~, or the end of the organization's accounting year, whichever comes first~~)) or longer, as established by the secretary.

(2) Reregistration required under RCW 19.09.075 ((~~and 19.09.078~~)) or 19.09.079 shall be ((~~received by~~)) submitted to the secretary no later than the ((~~fifteenth day of the fifth month after the organization's accounting period ends~~)) date established by the secretary by rule.

(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)~~)) 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)~~)) (4) The secretary ((~~may~~)) shall 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. Failure to register shall not be excused by a failure of the secretary to mail the notice or by an entity's failure to receive the notice.

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, in the form prescribed by the secretary, 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 correct copy of the contract shall be filed with the secretary 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 secretary 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, 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 secretary. 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 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 toll-free number for the donor to obtain additional financial disclosure information on file with the secretary.

(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 secretary. 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 secretary's office; and

(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 secretary's office under the charitable solicitation act, registration number ...."

(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. This subsection does not apply to a foundation or other charitable organization that is organized, operated, or controlled by or in connection with a registered public charity, including any governmental agency or unit, from which it derives its name.

((~~(6)~~)) (9) No person may, in conducting any solicitation, 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 shall be in writing and signed by two authorized officials of the organization or department and shall be filed with the secretary.

(10) A person may not, in conducting any solicitation, use the name of a federally chartered military veterans' service organization unless authorized in writing by the highest ranking official of that organization in this state.

(11) A charitable organization shall comply with all local governmental regulations that apply to soliciting for or on behalf of charitable organizations.

((~~(7)~~)) (12) 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.

((~~(8)~~)) (13) 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.

(14) 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 secretary of state as required by law. Registration number ...."

(15) 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 secretary.

(16) No entity may engage in any solicitation for contributions unless it complies with all provisions of this chapter.

(17)(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.

(18) Failure to comply with subsections (1) through ((~~(8)~~)) (17) 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 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 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 when claims or payments are made against the bond or when the bond is canceled. The bond shall be filed with the secretary in the form prescribed by the secretary. 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) 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~~)) entity for the purpose of soliciting contributions from persons in this state without the written consent of such other ((~~person~~)) entity. 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 secretary 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 secretary may revoke or deny any application for registration that violates this section.

This section does not apply to a foundation or other charitable organization that is organized, operated, or controlled by or in connection with a registered public charity, including any governmental agency or unit, from which it derives its name.

Sec. 15. RCW 19.09.275 and 1986 c 230 s 18 are each amended to read as follows:

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 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 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 shall be an agent of such person or organization upon whom process may be served. Service on the secretary shall be made by delivering to the secretary or the secretary's designee duplicate copies of such process, and a ((~~twenty-five dollar~~)) filing fee to be established by rule of the secretary. Thereupon, the secretary shall immediately cause one of the copies thereof to be forwarded to the registrant at the most current address shown in the secretary's files. Any service so had on the secretary shall be returnable in not less than thirty days.

Any fee under this section shall be taxable as costs in the action.

The secretary shall maintain a record of all process served on the secretary under this section, and shall record the date of service and the secretary'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:

(1) The secretary may establish, by rule, standard forms and procedures for the efficient administration of this chapter.

(2) The secretary may provide by rule for the filing of a financial statement by registered entities.

(3) The secretary 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 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 administrative procedure act, chapter 34.05 RCW, shall wherever applicable govern the rights, remedies, and procedures respecting the administration of this chapter.

NEW SECTION. Sec. 23. The secretary shall provide the attorney general with copies of or direct electronic access to all registrations, reports, or other information filed under this chapter.

NEW SECTION. Sec. 24. A new section is added to chapter 43.07 RCW to read as follows:

The secretary of state may adopt rules under chapter 34.05 RCW establishing reasonable fees for the following services rendered under chapter 11.110 or 19.09 RCW:

(1) Any service rendered in-person at the secretary of state's office;

(2) Any expedited service;

(3) The electronic transmittal of documents;

(4) The providing of information by microfiche or other reduced-format compilation;

(5) The handling of checks or drafts for which sufficient funds are not on deposit;

(6) The resubmission of documents previously submitted to the secretary of state where the documents have been returned to the submittor to make such documents conform to the requirements of the applicable statute;

(7) The handling of telephone requests for information; and

(8) Special search charges.

Sec. 25. RCW 11.110.010 and 1985 c 30 s 113 are each amended to read as follows:

The purpose of this chapter is to facilitate public supervision over the administration of public charitable trusts and similar relationships and to clarify and implement the powers and duties of the attorney general and the secretary of state with relation thereto.

Sec. 26. RCW 11.110.040 and 1985 c 30 s 115 are each amended to read as follows:

All information, documents, and reports filed with the ((~~attorney general~~)) secretary of state under this chapter are matters of public record and shall be open to public inspection, subject to reasonable regulation: PROVIDED, That the ((~~attorney general~~)) secretary of state shall withhold from public inspection any trust instrument so filed whose content is not exclusively for charitable purposes. The ((~~attorney general~~)) secretary of state may publish, on a periodic or other basis, such information as may be necessary or appropriate in the public interest concerning the registration, reports, and information filed with ((~~him~~)) the secretary of state or any other matters relevant to the administration and enforcement of this chapter.

Sec. 27. RCW 11.110.050 and 1985 c 30 s 116 are each amended to read as follows:

The ((~~attorney general~~)) secretary of state shall establish and maintain a register of trustees as defined in RCW 11.110.020 and, to that end, shall conduct whatever investigation is necessary, and shall obtain from public records, court officers, taxing authorities, trustees, and other sources whatever information, copies of instruments, reports, and records are needed, for the establishment and maintenance of the register.

Sec. 28. RCW 11.110.060 and 1985 c 30 s 117 are each amended to read as follows:

Every trustee shall file with the ((~~attorney general~~)) secretary of state within two months after receiving possession or control of the trust corpus a copy of the instrument establishing his or her title, powers, or duties, and an inventory of the assets of such charitable trust. In addition, trustees exempted from the provisions of RCW 11.110.070 by RCW 11.110.073 shall file with the ((~~attorney general~~)) secretary of state a copy of the declaration of the tax-exempt status or other basis of the claim for such exemption; a copy of the instrument establishing the trustee's title, powers or duties; an inventory of the assets of such trust; and, annually, a copy of each publicly available United States tax or information return or report of the trust which the trustee files with the internal revenue service. The trustees of charitable trusts existing at the time this chapter takes effect or on August 9, 1971, shall comply with this section within six months thereafter.

Sec. 29. RCW 11.110.070 and 1985 c 30 s 118 are each amended to read as follows:

Except as otherwise provided every trustee subject to this chapter shall file with the ((~~attorney general~~)) secretary of state annual reports, under oath, setting forth information as to the nature of the assets held for charitable purposes and the administration thereof by the trustee, in accordance with rules ((~~and regulations~~)) of the ((~~attorney general~~)) secretary of state.

The ((~~attorney general~~)) secretary of state shall make rules ((~~and regulations~~)) as to the time for filing reports, the contents thereof, and the manner of executing and filing them. ((He)) The secretary of state may classify trusts and other relationships concerning property held for a charitable purpose as to purpose, nature of assets, duration of the trust or other relationship, amount of assets, amounts to be devoted to charitable purposes, nature of trustee, or otherwise, and may establish different rules for the different classes as to time and nature of the reports required, to the ends (1) that ((he)) the secretary of state shall receive reasonably current, periodic reports as to all charitable trusts or other relationships of a similar nature which will enable ((~~him~~)) the secretary of state to ascertain whether they are being properly administered, and (2) that periodic reports shall not unreasonably add to the expense of the administration of charitable trusts and similar relationships. The ((~~attorney general~~)) secretary of state may suspend the filing of reports as to a particular charitable trust or relationship for a reasonable, specifically designated time upon written application of the trustee filed with the ((~~attorney general~~)) secretary of state after the ((~~attorney general~~)) secretary of state has filed in the register of charitable trusts a written statement that the interests of the beneficiaries will not be prejudiced thereby and that periodic reports are not required for proper supervision by ((~~his~~)) the secretary of state's office.

A copy of an account filed by the trustee in any court having jurisdiction of the trust or other relationship, if the account substantially complies with the rules ((~~and regulations~~)) of the ((~~attorney general~~)) secretary of state, may be filed as a report required by this section.

The first report for a trust or similar relationship hereafter established, unless the filing thereof is suspended as herein provided, shall be filed not later than one year after any part of the income or principal is authorized or required to be applied to a charitable purpose. If any part of the income or principal of a trust previously established is authorized or required to be applied to a charitable purpose at the time this act takes effect, the first report, unless the filing thereof is suspended, shall be filed within six months after July 30, 1967.

Sec. 30. RCW 11.110.075 and 1985 c 30 s 120 are each amended to read as follows:

A trust is not exclusively for charitable purposes, within the meaning of RCW 11.110.040, when the instrument creating it contains a trust for several or mixed purposes, and any one or more of such purposes is not charitable within the meaning of RCW 11.110.020, as enacted or hereafter amended. Such instrument shall be withheld from public inspection by the ((~~attorney general~~)) secretary of state and no information as to such noncharitable purpose shall be made public. The attorney general shall have free access to such information.

Annual reporting of such trusts to the ((~~attorney general~~)) secretary of state, as required by RCW 11.110.060 or 11.110.070, shall commence within one year after trust income or principal is authorized or required to be used for a charitable purpose.

When a trust consists of a vested charitable remainder preceded by a life estate, a copy of the instrument shall be filed by the trustee or by the life tenant, within two months after commencement of the life estate.

If the trust instrument contains only contingent gifts or remainders to charitable purposes, no charitable trust shall be deemed created until a charitable gift or remainder is legally vested. The first registration or report of such trust shall be filed within two months after trust income or principal is authorized or required to be used for a charitable purpose.

Sec. 31. RCW 11.110.080 and 1985 c 30 s 121 are each amended to read as follows:

The custodian of the records of a court having jurisdiction of probate matters or of charitable trusts shall furnish within two months after receiving possession or control thereof such copies of papers, records, and files of ((~~his~~)) the custodian's office relating to the subject of this chapter as the ((~~attorney general~~)) secretary of state shall require.

Every officer, agency, board or commission of this state receiving applications for exemption from taxation of any charitable trust or similar relationship in which the trustee is subject to this chapter shall annually file with the ((~~attorney general~~)) secretary of state a list of all applications received during the year.

Sec. 32. RCW 11.110.125 and 1985 c 30 s 126 are each amended to read as follows:

The willful refusal by a trustee to make or file any report or to perform any other duties expressly required by this chapter, or to comply with any valid rule ((~~or regulation promulgated~~)) adopted by the ((~~attorney general~~)) secretary of state under this chapter, shall constitute a breach of trust and a violation of this chapter.

Sec. 33. RCW 11.110.130 and 1985 c 30 s 127 are each amended to read as follows:

A civil action for a violation of this chapter may be prosecuted by the attorney general or by a prosecuting attorney ((~~designated by the attorney general~~)).

NEW SECTION. Sec. 34. All reports, documents, surveys, books, records, files, papers, or written material in the possession of the attorney general pertaining to the powers, functions, and duties transferred by sections 25 through 33 of this act shall be delivered to the custody of the secretary of state. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the attorney general in carrying out the powers, functions, and duties transferred shall be made available to the secretary of state. All funds, credits, or other assets held in connection with the powers, functions, and duties transferred shall be assigned to the secretary of state.

Any appropriations made to the attorney general for carrying out the powers, functions, and duties transferred shall, on the effective date of this section, be transferred and credited to the secretary of state.

Whenever any question arises as to the transfer of any personnel, funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.

NEW SECTION. Sec. 35. All employees of the attorney general engaged in performing the powers, functions, and duties transferred by sections 25 through 33 of this act are transferred to the jurisdiction of the secretary of state. All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the secretary of state to perform their usual duties upon the same terms as formerly, without any loss of rights, subject to any action that may be appropriate thereafter in accordance with the laws and rules governing state civil service.

NEW SECTION. Sec. 36. All rules and all pending business before the attorney general pertaining to the powers, functions, and duties transferred by sections 25 through 33 of this act shall be continued and acted upon by the secretary of state. All existing contracts and obligations shall remain in full force and shall be performed by the secretary of state.

NEW SECTION. Sec. 37. The transfer of the powers, duties, functions, and personnel of the attorney general shall not affect the validity of any act performed prior to the effective date of this section.

NEW SECTION. Sec. 38. If apportionments of budgeted funds are required because of the transfers directed by sections 34 through 37 of this act, the director of financial management shall certify the apportionments to the agencies affected, the state auditor, and the state treasurer. Each of these shall make the appropriate transfer and adjustments in funds and appropriation accounts and equipment records in accordance with the certification.

NEW SECTION. Sec. 39. Nothing contained in sections 34 through 38 of this act may be construed to alter any existing collective bargaining unit or the provisions of any existing collective bargaining agreement until the agreement has expired or until the bargaining unit has been modified by action of the personnel board as provided by law.

NEW SECTION. Sec. 40. RCW 19.09.078 and 1986 c 230 s 6 are each repealed.

NEW SECTION. Sec. 41. Sections 18 through 23 of this act are each added to chapter 19.09 RCW.

NEW SECTION. Sec. 42. 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.

NEW SECTION. Sec. 43. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1993.