Z-1027               _______________________________________________

                                                   HOUSE BILL NO. 1734

                        _______________________________________________

State of Washington                               51st Legislature                              1989 Regular Session

By Representatives R. Fisher, Miller, Locke, Prince, Belcher, Bowman, Heavey, Brough, Valle, Wineberry, Beck, Brumsickle, Basich, Crane, Walker, Winsley, R. King, May, Horn, Betrozoff and Todd; by request of Secretary of State

Read first time 2/3/89 and referred to Committee on State Government.

AN ACT Relating to the regulation of unfair, unscrupulous, or misleading practices in charitable solicitations; amending RCW 19.09.275; adding new sections to chapter 19.09 RCW; prescribing penalties; and providing an effective date.

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

NEW SECTION. Sec. 1.  A new section is added to chapter 19.09 RCW to read as follows:

          The secretary has the following powers and duties:

          (1) To establish by rule, those practices and materials used in the solicitation of contributions that, based on the experience of complaints and inquiries from the general public, have a tendency to mislead or confuse;

          (2) To issue an order demanding that an entity stop engaging in the practices or using materials that have been identified by rule as having a tendency to mislead or confuse;

          (3) To issue, as the secretary may prescribe by rule, an order demanding the return or refund of the full amount of a monetary contribution received by an entity, upon receipt of a written request of a person who, during the period beginning one hundred twenty days before the issuance of the order and ending thirty days after the entity has complied with the order provided for in subsection (2) of this section, contributed money to the entity;

          (4) To issue an order imposing a civil penalty in the amount of (a) ten dollars per violation of subsection (2) of this section, and (b) one hundred dollars per violation of subsection (3) of this section.

NEW SECTION. Sec. 2.  A new section is added to chapter 19.09 RCW to read as follows:

          (1) Failure of an entity to refund or return the full amount of the contribution within thirty days of receipt of a written request under section 1(3) of this act is a violation of this chapter.

          (2) An entity that has been issued an order under section 1(2) of this act may appeal the order directly to the superior court of Thurston county or the county in which it is registered.

        Sec. 3.  Section 14, chapter 222, Laws of 1977 ex. sess. as last amended by section 18, chapter 230, Laws of 1986 and RCW 19.09.275 are each amended to read as follows:

(1) 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.

(2) 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.

(3) In addition to any other penalties or remedies under chapter 19.86 RCW, a person who is injured by a violation of this chapter may bring an action for recovery of actual damages, including court costs and attorneys' fees.  No provision in this chapter may be construed to limit a right or remedy provided under chapter 19.86 RCW.

(4) A civil penalty shall be imposed by the court for each violation of this chapter in an amount not less than five hundred dollars nor more than one thousand dollars per violation.

NEW SECTION. Sec. 4.     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. 5.     This act shall take effect January 1, 1990.