language to be deleted (2) new language
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 solicitationPrior 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 numberand 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 cardwritten 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 PURPOSESIDENTITY 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 disclosethe 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, orsuspension 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.