Minnesota Session Laws - 1989, Regular Session

  

                         Laws of Minnesota 1989 

                        CHAPTER 151-S.F.No. 184 
           An act relating to charitable organizations; 
          regulating charitable solicitations and professional 
          fund raisers; excluding certain religious 
          organizations from registration; requiring a bond for 
          professional fund raisers who have access to 
          contributions; modifying disclosure requirements; 
          authorizing the district court to redress violations 
          of law; amending Minnesota Statutes 1988, sections 
          309.515, subdivision 2; 309.531, subdivision 2; 
          309.556; and 309.57, subdivision 1. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1988, section 309.515, 
subdivision 2, is amended to read: 
    Subd. 2.  Where any such group or association or person 
soliciting for the benefit of such group or association 
described in subdivision 1, clauses (a), (b) and (d), employs a 
professional fund raiser to solicit or assist in the 
solicitation of contributions, sections 309.52 and 309.53 shall 
apply and such group or association or person shall file a 
registration statement as provided in section 309.52 and an 
annual report as provided in section 309.53. 
    Sec. 2.  Minnesota Statutes 1988, section 309.531, 
subdivision 2, is amended to read: 
    Subd. 2.  The registration statement of the professional 
fund raiser shall consist of the following:  
    (a) If the professional fund raiser at any time has custody 
of or access to contributions from a solicitation, or if any 
person the professional fund raiser employs, obtains, or engages 
has custody of or access to contributions from a solicitation, 
the registration statement shall include a bond, in which the 
professional fund raiser shall be the principal obligor.  The 
bond shall be in the sum of $20,000, with one or more 
responsible sureties whose liability in the aggregate as the 
sureties will at least equal that sum.  In order to maintain the 
registration, the bond shall be in effect for the full term of 
the registration.  The bond, which may be in the form of a rider 
to a larger blanket liability bond, shall run to the state and 
to any person who may have a cause of action against the 
principal obligor of the bond for any liabilities resulting from 
the obligor's conduct of any activities subject to sections 
309.50 to 309.61 or arising out of a violation of the statutes 
or a rule adopted under the statutes. 
    (b) If the professional fund raiser, or any person the 
professional fund raiser employs, procures, or engages, solicits 
in this state, the registration statement shall include a 
completed "solicitation notice" on a form provided by the 
attorney general.  The solicitation notice shall include a copy 
of the contract described in paragraph (c), the projected dates 
when soliciting will commence and terminate, the location and 
telephone number from where the solicitation will be conducted, 
the name and residence address of each person responsible for 
directing and supervising the conduct of the campaign, a 
statement as to whether the professional fund raiser will at any 
time have custody of contributions, and a description of the 
charitable program for which the solicitation campaign is being 
carried out.  The charitable organization on whose behalf the 
professional fund raiser is acting shall certify that the 
solicitation notice and accompanying material are true and 
complete to the best of its knowledge. 
      (c) The professional fund raiser shall also include, as 
part of the registration statement, a copy of the contract 
between the charitable organization and the professional fund 
raiser.  The contract shall: 
    (1) be in writing; 
    (2) contain information as will enable the attorney general 
to identify the services the professional fund raiser is to 
provide, including whether the professional fund raiser will at 
any time have custody of contributions; and 
    (3) if the professional fund raiser or any person the 
professional fund raiser employs, procures, or engages, directly 
or indirectly, solicits in this state, the contract shall 
disclose the percentage or a reasonable estimate of the 
percentage of the total amount solicited from each person which 
shall be received by the charitable organization for charitable 
purposes.  
    The stated percentages required by this section and section 
309.556, subdivision 2, shall exclude any amount which the 
charitable organization is to pay as expenses of the 
solicitation campaign, including the cost of merchandise or 
services sold or events staged.  
    (d) The registration statement shall also include the 
financial report for previous campaigns conducted by the 
professional fund raiser in this state as set forth in 
subdivision 4.  
    Sec. 3.  Minnesota Statutes 1988, section 309.556, is 
amended to read: 
    309.556 [PUBLIC DISCLOSURE REQUIREMENTS.] 
    Subdivision 1.  [IDENTITY OF ORGANIZATION; PERCENTAGE OF 
DEDUCTIBILITY; DESCRIPTION OF PROGRAM.] In connection with any 
charitable solicitation Prior to orally requesting a 
contribution or contemporaneously with a written request for a 
contribution, the following information shall be clearly 
disclosed: 
    (a) The name, address and telephone number and location by 
city and state of each charitable organization on behalf of 
which the solicitation is made; 
    (b) The percentage of the contribution which may be 
deducted as a charitable contribution under both federal and 
state income tax laws; 
    (c) A description of the charitable program for which the 
solicitation campaign is being carried out; and, if different, a 
description of the programs and activities of the organization 
on whose behalf the solicitation campaign is being carried out.  
    If the solicitation is made by direct personal contact, the 
required information shall also be disclosed prominently on a 
card written document which shall be exhibited to the person 
solicited.  If the solicitation is made by radio, television, 
letter, telephone, or any other means not involving direct 
personal contact, the required information shall be clearly 
disclosed in the solicitation. 
    Subd. 2.  [PERCENTAGE RECEIVED FOR CHARITABLE 
PURPOSES IDENTITY OF PROFESSIONAL FUND RAISER.] In addition to 
the disclosures required by subdivision 1, any professional fund 
raiser soliciting contributions in this state shall also 
disclose the percentage or a reasonable estimate of the 
percentage of the total amount solicited from each person which 
shall be received by the charitable agency for charitable 
purposes.  A professional fund raiser shall also disclose the 
name of the professional fund raiser as on file with the 
attorney general and that the solicitation is being conducted by 
a "professional fund raiser."  The disclosures required by this 
subdivision shall be given in the same manner as the disclosures 
required by subdivision 1. 
    Sec. 4.  Minnesota Statutes 1988, section 309.57, 
subdivision 1, is amended to read: 
    Subdivision 1.  [GENERAL.] Upon the application of the 
attorney general the district court is vested with jurisdiction 
to restrain and, enjoin, and redress violations of sections 
309.50 to 309.61.  The court may make any necessary order or 
judgment including, but not limited to, injunctions, 
restitution, appointment of a receiver for the defendant or the 
defendant's assets, denial, revocation, or suspension of the 
defendant's registration, awards of reasonable attorney fees, 
and costs of investigation and litigation, and may award to the 
state civil penalties up to $25,000 for each violation of 
sections 309.50 to 309.61.  In ordering injunctive relief, the 
attorney general shall not be required to establish irreparable 
harm but only a violation of statute or that the requested order 
promotes the public interest.  The court may, as appropriate, 
enter a consent judgment or decree without the finding of 
illegality. 
    Presented to the governor May 16, 1989 
    Signed by the governor May 17, 1989, 5:50 p.m.