March 18, 2004, Introduced by Senators GEORGE, GARCIA, PATTERSON, ALLEN, BIRKHOLZ, CHERRY, TOY, BROWN, JELINEK, GILBERT, SWITALSKI, KUIPERS, GOSCHKA, McMANUS and BRATER and referred to the Committee on Economic Development, Small Business and Regulatory Reform.
A bill to amend 1975 PA 169, entitled
"Charitable organizations and solicitations act,"
by amending the title and sections 2, 3, 4, 5, 6, 7, 8, 9, 10,
11, 12, 13, 16, 17, 18, 20, 21, and 23 (MCL 400.272, 400.273,
400.274, 400.275, 400.276, 400.277, 400.278, 400.279, 400.280,
400.281, 400.282, 400.283, 400.286, 400.287, 400.288, 400.290,
400.291, and 400.293), section 13 as amended by 1992 PA 299, and
by adding sections 3a, 19, 19a, 19b, 19c, 19d, 22a, 23a, 23b, and
23c; and to repeal acts and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 TITLE
2 An act to regulate organizations and persons soliciting or
3 collecting contributions for charitable purposes; to require
4 registration , and
disclosure of information and licensing
5 before solicitation of contributions; to provide for reporting of
1 financial and other
information by those licensed or registered
2 and those claiming exemption; to prescribe standards of conduct
3 and administration, and to prohibit certain actions; to provide
4 for enforcement, investigation, and promulgation of rules by the
5 attorney general; to preempt local regulation; to provide
6 penalties for violations;
and to repeal certain acts and parts
7 of acts.
8 Sec. 2. As used in this act:
9 (a) "Charitable
organization" means a benevolent,
10 educational,
philanthropic, humane, patriotic, or eleemosynary
11 organization of
persons which solicits or obtains contributions
12 solicited from the
public for charitable purposes. A chapter,
13 branch, area office,
or similar affiliate or person soliciting
14 contributions within
the state for a charitable organization
15 which has its
principal place of business outside the state is a
16 charitable
organization. This definition does not include duly
17 constituted religious
organizations or a group affiliated with
18 and forming an
integral part of a religious organization no part
19 of the net income of
which inures to the direct benefit of any
20 individual if it has
received a declaration of current tax exempt
21 status from the United States. The affiliated group shall not be
22 required to obtain a
declaration if the parent or principal
23 organization has
obtained tax exempt status. Charitable
24 organization does not
include a candidate or committee as defined
25 in section 901 of Act
No. 116 of the Public Acts of 1954, being
26 section 168.901 of the
Michigan Compiled Laws, or a political
27 party qualified to be
on the general election ballot pursuant to
1 section 560a of Act
No. 116 of the Public Acts of 1954, as added,
2 being section 168.560a
of the Michigan Compiled Laws. tax
exempt
3 organization under section 501(c)(3) of the internal revenue code
4 of 1986 or a person whose purpose, structure, or activities are
5 described under section 501(c)(3) of the internal revenue code of
6 1986. The term does not include any of the following:
7 (i) A federal, state, or local unit of government, a
8 subdivision, agency, or instrumentality of federal, state, or
9 local government, or a religious organization incorporated or
10 established for religious purposes.
11 (ii) A candidate, candidate committee, or committee as those
12 terms are defined in section 3 of the Michigan campaign finance
13 act, 1976 PA 388, MCL 169.203.
14 (iii) An authorized committee, political committee, or
15 principal campaign committee as those terms are defined in 2 USC
16 431.
17 (iv) A political party as described in section 560a of the
18 Michigan election law, 1954 PA 116, MCL 168.560a.
19 (b) "Charitable purpose" means any of the following:
20 (i) A purpose described in section 501(c)(3) of the internal
21 revenue code of 1986.
22 (ii) A benevolent, philanthropic, educational, scientific,
23 public health, humane, religious, or other eleemosynary
24 objective.
25 (c) "Charitable sales promotion" means an advertising or
26 sales campaign representing that proceeds from the sale or use of
27 the goods or services offered will benefit, in whole or in part,
1 a charitable organization or charitable purpose, or that the
2 seller or vendor will make a payment to a charitable organization
3 or for a charitable purpose.
4 (d) "Commercial coventurer" means a person who conducts
5 charitable sales promotions. A person who enters into a
6 licensing arrangement in which a charitable organization allows
7 the person to use the charitable organization's name for a fee is
8 a commercial coventurer.
9 (e) (b) "Contribution"
means the promise, grant, or payment
10 of money or property of
any kind or value, including promises
11 the promise to pay.
, except payments by members of an
12 organization for
membership fees, dues, fines, or assessments, or
13 for services rendered
to individual members, if membership in the
14 organization confers a
bona fide right, privilege, professional
15 standing, honor, or
other direct benefit, other than the right to
16 vote, elect officers,
or hold offices, and except money or
17 property received from
a governmental authority or foundation
18 restricted as to use. Contribution includes that portion of
19 membership fees, dues, or assessments that exceed the monetary
20 value of membership benefits available to a dues payer whether or
21 not the membership benefits are used, and membership fees, dues,
22 or assessments that are paid primarily to support the charitable
23 organization's activities and not to obtain benefits of more than
24 nominal monetary value. Contribution does not include any of the
25 following:
26 (i) A grant or contract from any governmental agency or a
27 restricted grant from a foundation.
1 (ii) Any portion of membership dues, fees, or assessments
2 paid to a labor organization or bargaining representative. As
3 used in this subparagraph:
4 (A) "Bargaining representative" means that term as defined in
5 section 1 of 1947 PA 336, MCL 423.201.
6 (B) "Labor organization" means that term as defined in
7 section 2 of 1939 PA 176, MCL 423.2, or section 2 of the national
8 labor relations act, 29 USC 152.
9 (f) (c) "Person"
means an individual, organization, group,
10 association, partnership, corporation, limited liability company,
11 trust, or any combination of them.
12 (g) "Professional fund-raiser" means a person, including a
13 subcontractor, who for compensation or other consideration
14 conducts, manages, or carries on a drive or campaign to solicit
15 contributions for or on behalf of a charitable organization,
16 religious organization, or any other person except a person
17 described in subdivision (a)(iv); or who engages in the business
18 of or holds himself or herself out as independently engaged in
19 the business of soliciting contributions for charitable
20 purposes. A bona fide officer or employee of a charitable
21 organization, or a person whose service to a charitable
22 organization is limited to providing advice, research, or writing
23 is not a professional fund-raiser.
24 (h) "Solicit" and "solicitation" mean the following:
25 (i) A direct or indirect request for a contribution based on
26 the representation that the contribution will or may be used for
27 a charitable purpose or to benefit a charitable organization,
1 whether or not the person making the solicitation receives a
2 contribution. The term includes any of the following methods of
3 securing contributions:
4 (A) An oral or written request.
5 (B) Distributing, circulating, mailing, posting, or
6 publishing a handbill, written advertisement, or other
7 publication that directly or by implication seeks to obtain a
8 contribution.
9 (C) An announcement to the news media, or by radio,
10 television, telephone, telegraph, facsimile, electronic mail, or
11 any other communication device, or on the internet, concerning an
12 appeal or campaign for a charitable organization or purpose.
13 (D) The sale, attempted sale, or offer to sell an
14 advertisement, advertising space, a book, a coupon, a magazine, a
15 membership, merchandise, a subscription, a ticket, or other item
16 in connection with a request for a charitable organization or
17 purpose.
18 (E) A receptacle for contributions, such as honor boxes,
19 vending machines, wishing wells, or contribution boxes, where a
20 charitable purpose is used, referred to, or implied as an
21 inducement to make a contribution or purchase.
22 (ii) Receiving contributions that are solicited from the
23 public by a person other than the charitable organization and
24 transferred to that charitable organization.
25 (iii) Receiving an allocation from a community chest, united
26 fund, or similar organization.
27 (i) (d) "Soliciting
material" means printed or similar
1 material, including but not limited to labels, posters,
2 television scripts, radio scripts, or other text or recordings
3 used in soliciting funds from the public.
4 (j) (e) "Solicitor"
means a person who solicits on behalf
5 of a charitable organization.
6 (f)
"Professional fund raiser" means a person who for
7 compensation or other
consideration plans, conducts, manages, or
8 carries on a drive or
campaign of soliciting contributions for or
9 on behalf of a charitable
organization, religious organization,
10 or any other person;
or who engages in the business of or holds
11 himself out as
independently engaged in the business of
12 soliciting
contributions for such purposes. A bona fide officer
13 or employee of a
charitable organization is not a professional
14 fund raiser unless his
salary or other compensation is computed
15 on the basis of funds
to be raised or actually raised.
16 (g)
"Professional solicitor" means a person who is employed
17 or retained for
compensation by a professional fund raiser to
18 solicit contributions
for charitable purposes.
19 (h)
"Prohibited transaction" is that dealing, activity,
20 conduct, administration,
or management of the charitable
21 organization or by any
of its officers, trustees, personnel, or
22 related persons which
may be prohibited as constituting activity
23 contrary to proper
administration of the charitable organization
24 or conduct of a fund
raising campaign or solicitation by a
25 professional fund
raiser or solicitor.
26 (k) "Vendor" means a person other than a charitable
27 organization who conducts charitable sales promotions or
1 solicitation campaigns through vending machines, honor boxes,
2 novelty machines, or similar devices, that represents that it
3 benefits a charitable organization or a charitable purpose
4 through a portion of the proceeds, a fixed dollar amount, or any
5 other manner.
6 Sec. 3. (1) Before
a solicitation, a A charitable
7 organization which that
is not an exempt organization and
8 which is not described
in from registration and
reporting
9 pursuant to section 13 ,
which and that solicits or intends to
10 solicit or receives or intends to receive contributions from
11 persons by any means whatsoever,
shall file have not less
12 than 2 directors, trustees, or members and shall register with
13 the attorney general upon
forms prescribed by him, an
14 application for a
license. It the attorney
general, together
15 with all necessary information. The registration shall include
16 the following information:
17 (a) The name of the
organization and the any name under
18 which it intends used by that organization to solicit
19 contributions.
20 (b) The principal
address of the principal office of the
21 organization and the address of any office in this state. If the
22 organization does not maintain a principal office, the name and
23 address of the person having custody of its financial records.
24 (c) The names and
addresses of the officers, directors,
25 trustees, chief
executive officer, and state agent.
26 (c) (d) Where
and when the organization was legally
27 established , and
the form of its organization. , and its tax
1 exempt status.
2 (d) The organization's federal tax exempt status and, with
3 its initial application, a copy of its internal revenue service
4 determination letter.
5 (e) The A
statement of the organization's purpose for
6 which it is organized and the purposes for which contributions
7 to be solicited will be used.
8 (f) The fiscal
year date of the organization Methods by
9 which solicitations will be made.
10 (g) Whether the
organization is or has ever been enjoined
11 from soliciting
contributions The names and
addresses of all
12 professional fund-raisers with whom the organization has
13 contracted.
14 (h) All methods
by which solicitations will be made A list
15 of the names and addresses of the organization's board of
16 directors, officers, and trustees.
17 (i) Copies of
contracts between charitable organizations and
18 professional fund
raisers relating to financial compensation or
19 profit to be derived
by the professional fund raisers. When the
20 contract is executed
after filing of application statement, a
21 copy shall be filed
within 10 days of the date of execution. If
22 the principal office of the organization is not in this state,
23 the address and telephone number of a resident agent in this
24 state.
25 (j) Other
information as required by rule. Whether the
26 organization or any of its officers, directors, or principals is,
27 or has ever been, enjoined, fined, convicted, or subject to any
1 other sanction or penalty as a result of soliciting contributions
2 in any state or country, or whether such proceedings are
3 pending.
4 (k) Whether an officer, director, or employee of the
5 charitable organization owns a 10% or greater interest in a
6 professional fund-raiser, or is an agent or contractor for a
7 professional fund-raiser, during a period of time when the
8 professional fund-raiser is under contract with the charitable
9 organization to solicit funds.
10 (l) Financial information necessary for the attorney general
11 to prepare reports for the legislature or the public if the
12 information is not included in the organization's internal
13 revenue service form 990, 990-EZ, or 990-PF, or if the
14 organization is not required to file an internal revenue service
15 form 990, 990-EZ, or 990-PF pursuant to subsection (2).
16 (2) The charitable organization shall provide the following
17 information with its registration:
18 (a) Unless the organization has not completed its first
19 accounting period, a copy of its fully and properly completed
20 internal revenue service form 990, 990-EZ, or 990-PF for the
21 immediately preceding tax year, or successor forms, including all
22 schedules, attachments, and exhibits filed with the internal
23 revenue service, except the schedule of contributors. Except as
24 otherwise provided in this subsection, if a charitable
25 organization does not file an internal revenue service form 990,
26 990-EZ, or 990-PF, it shall prepare a pro forma form 990, 990-EZ,
27 or 990-PF return for filing with the registration. A pro forma
1 return shall be completed fully and properly pursuant to internal
2 revenue service instructions and shall include all required
3 information, attachments, schedules, and exhibits. If an
4 organization is not required to file form 990-EZ with the
5 internal revenue service because of insufficient gross receipts,
6 that organization is not required to include that form or a pro
7 forma return with its registration.
8 (b) Financial statements prepared according to generally
9 accepted accounting principles that have been audited by an
10 independent certified public accountant if the amount of
11 contributions received by the charitable organization during its
12 fiscal year reported on its federal tax return is $250,000.00 or
13 more. If contributions as reported on the charitable
14 organization's internal revenue service form 990, 990-EZ, or
15 990-PF are $100,000.00 or more, but less than $250,000.00,
16 financial statements either reviewed or audited by an independent
17 certified public accountant shall be provided. The amount of
18 contributions received by the organization includes direct and
19 indirect public support as shown on the internal revenue service
20 form 990, 990-EZ, or 990-PF, less any restricted grants from
21 foundations included in the federal tax return, plus net special
22 fund-raising events revenue. The attorney general may waive this
23 requirement 1 time for a charitable organization.
24 (3) With its registration, or renewal of its registration as
25 provided in section 7, a charitable organization shall pay the
26 following registration fee:
27 (a) If gross receipts from all sources were less than
1 $25,000.00 in the fiscal year reported on the registration, there
2 is no fee.
3 (b) If gross receipts from all sources were at least
4 $25,000.00 but less than $100,000.00 in the fiscal year reported
5 on the registration, $20.00.
6 (c) If gross receipts from all sources were at least
7 $100,000.00 but less than $500,000.00 in the fiscal year reported
8 on the registration, $50.00.
9 (d) If gross receipts from all sources were at least
10 $500,000.00 but less than $1,000.000.00 in the fiscal year
11 reported on the registration, $100.00.
12 (e) If gross receipts from all sources were $1,000,000.00 or
13 more in the fiscal year reported on the registration, $200.00.
14 (f) A parent charitable organization registered under this
15 act that is the parent charitable organization of 1 or more
16 subsidiary charitable organizations required to be registered
17 under this act that do not meet the combined registration
18 requirements set forth in section 9 may pay a single registration
19 fee of $300.00 for itself and all of its subsidiary charitable
20 organizations. As used in this subdivision, "parent charitable
21 organization" means an organization that meets the requirements
22 for consolidating financial statements under generally accepted
23 accounting principles.
24 (4) A charitable organization's registration is effective
25 immediately upon receipt by the attorney general of the
26 information and fees required under this act.
27 Sec. 3a. (1) The charitable organizations and solicitations
1 fund is created within the state treasury.
2 (2) The state treasurer may receive money or other assets for
3 deposit into the charitable organizations and solicitations fund
4 from any of the following:
5 (a) Registration fees collected under this act.
6 (b) Late registration fees collected under this act.
7 (c) Fines and penalties assessed and collected under this
8 act.
9 (d) Any other source.
10 (3) The state treasurer shall direct the investment of the
11 charitable organizations and solicitations fund and shall credit
12 to the charitable organizations and solicitations fund interest
13 and earnings from charitable organizations and solicitations fund
14 investments.
15 (4) Money in the charitable organizations and solicitations
16 fund at the close of the fiscal year shall remain in the
17 charitable organizations and solicitations fund and shall not
18 lapse to the general fund.
19 (5) The department of attorney general shall expend money
20 from the charitable organizations and solicitations fund, upon
21 appropriation, only for expenditures directly related to
22 gathering and providing the public with information regarding
23 persons subject to this act. Information regarding persons
24 subject to this act shall be disseminated to the public under the
25 plan developed pursuant to section 23b.
26 Sec. 4. (1) True
A true and correct copies copy of the
27 contracts of a contract with a professional fund
raisers
1 fund-raiser shall be kept on file in the offices of the
2 charitable organization
and the professional fund raiser
3 fund-raiser during the
term of employment the contract and for
4 6 years subsequent to
the date after the solicitation of
5 contributions provided
for therein in the contract actually
6 terminates.
7 (2) Copies of a contract with a professional fund-raiser,
8 vendor, or commercial coventurer and all soliciting materials
9 shall be supplied to
the attorney general upon request. of the
10 attorney general.
11 (3) A charitable organization shall take reasonable steps to
12 ensure that a professional fund-raiser with whom it has
13 contracted to solicit funds in this state is registered in this
14 state as a professional fund-raiser.
15 Sec. 5. (1) An
application The attorney general shall
16 review a registration that is submitted in proper form and
17 supported by material
information together with the
information
18 and registration fee
required shall be examined by the attorney
19 general under this act. If the application and
supporting
20 material conforms registration, information, and registration
21 fee conform to the
requirements of this act, and the rules, the
22 attorney general shall issue
a license to register the
23 charitable organization,
within 30 days, except where
24 professional fund-raiser, or vendor unless the charitable
25 organization, professional fund-raiser, or vendor has
26 materially misrepresented or omitted information required
27 information or the charitable organization, professional
1 fund-raiser, or vendor
has acted violated or is acting in
2 violation of violating this act or rules promulgated hereunder
3 under this act. The attorney general shall notify the charitable
4 organization, professional fund-raiser, or vendor of any
5 omissions or deficiencies in its registration or renewal of
6 registration within 60 days of receipt.
7 (2) The license
shall be without charge and issued to the
8 charitable
organization, its agents and representatives for the
9 purpose of soliciting
and receiving contributions and donations
10 or to sell memberships
or otherwise raise moneys from the public
11 for the specified
charitable purpose.
12 (2) (3) A
license issued to a professional fund raiser,
13 professional
solicitor, or a charitable organization, its agents
14 and representatives
may be suspended or revoked by the The
15 attorney general may suspend or rescind the registration of a
16 charitable organization, professional fund-raiser, or vendor and
17 an agent or representative of a charitable organization,
18 professional fund-raiser, or vendor for violation of this act,
19 or rules promulgated
hereunder, including, but not
limited to,
20 misrepresentation or omission of information required under
21 section 3, after reasonable notice and opportunity to be heard.
22 The attorney general may suspend on an emergency basis, without
23 hearing, any license
issued to a professional fund raiser,
24 professional
solicitor, or a charitable organization when the
25 registration of a charitable organization, professional
26 fund-raiser, or vendor if the attorney general specifies in the
27 notice of emergency suspension the reasons and grounds indicating
1 a violation of this act
or any a rule which promulgated under
2 this act that constitutes the emergency. The notice shall set
3 forth that, within
48 hours, at a designated time and place, a
4 prompt hearing shall be
held on whether the license
5 registration should be
permanently suspended or revoked
6 rescinded. The professional
fund raiser, professional
7 solicitor, or charitable organization, professional fund-raiser,
8 or vendor may show
compliance with the requirements of this act
9 or the rules promulgated
under this act and shall have has the
10 burden of adducing
the evidence proof in establishing that
11 compliance.
12 Sec. 6. A charitable organization, professional
13 fund-raiser, or vendor shall notify the attorney general within
14 30 days of any change in the information required to be furnished
15 under section 3 this
act. A report shall be filed and signed
16 by the president or
other authorized officer and the chief fiscal
17 officer of the
organization.
18 Sec. 7. (1) The
license of a charitable organization shall
19 expire 1 year after
the date of issuance. A charitable
20 organization desiring
renewal of a license shall file with the
21 attorney general a
renewal application and supporting information
22 on or before 30 days
prior to the expiration date. A registered
23 charitable organization shall report on its previous fiscal year
24 and renew its registration within 6 months after the close of its
25 fiscal year. A renewal registration and report shall be on a
26 form prescribed by the attorney general and shall include the
27 information and any fee required under this act.
1 (2) A charitable organization's registration shall expire if
2 the charitable organization's renewal registration and report is
3 not received within 18 months after the end of the fiscal year
4 reported on the organization's most recently filed registration
5 form unless the attorney general has extended the registration
6 under subsection (4).
7 (3) An organization previously registered under this act that
8 is no longer subject to the registration requirements of this act
9 shall file a financial report within 6 months of the close of the
10 most recently completed fiscal year in which the organization
11 solicited in this state unless the attorney general has extended
12 the period of time for filing the report pursuant to subsection
13 (4). The report shall include the financial information that
14 would be required to renew the organization's registration and
15 any reports on solicitation campaigns conducted by the charitable
16 organization through a professional fund-raiser as required under
17 section 17(5).
18 (4) If a charitable organization receives an extension of
19 time to file the charitable organization's internal revenue
20 service form 990, 990-EZ, or 990-PF, the attorney general shall
21 extend the charitable organization's time for filing the report
22 required under subsection (3) or its registration for a similar
23 period of time.
24 Sec. 8. (1) Documents
required to be filed with the
25 attorney general shall
be open to public inspection. Persons
26 subject to this act
shall maintain accurate and detailed books
27 and records at the
office of the resident agent or the principal
1 office which shall be
open to inspection at all reasonable times
2 by the attorney
general or his authorized representative. A
3 registration, annual report, or other information required to be
4 provided to or filed with the attorney general under this act is
5 a public record in the office of the attorney general open to
6 inspection.
7 (2) A charitable organization, professional fund-raiser, or
8 vendor shall maintain, for not less than 3 years from the date
9 prepared, accurate and detailed records to provide the
10 information required under this act. All records are open to
11 inspection at all reasonable times by the attorney general and
12 copies of the records shall be provided to the attorney general
13 upon request.
14 (3) A charitable organization or person, including a vendor,
15 commercial coventurer, professional fund-raiser, or person
16 described in section 23a, that solicits contributions, raises
17 funds, or conducts sales promotions for a charitable purpose,
18 shall maintain at the place designated in its registration or, if
19 not a charitable organization, at its principal place of
20 business, the original records or true copies of the records
21 pertaining to all money or other property collected from
22 residents of this state and to the disbursement of that money or
23 property. The records shall be preserved for not less than 3
24 years from the date prepared.
25 (4) A file in the office of the attorney general regarding a
26 closed enforcement action or a settlement in a civil case under
27 this act is open to public inspection and copying. A provision
1 or requirement of confidentiality or sealing of records as a
2 condition of settlement of an enforcement or civil action under
3 this act is prohibited.
4 Sec. 9. If a local, county, or area division of a
5 charitable organization is directly supervised and controlled by
6 a superior or parent
organization , which that is incorporated
7 , or qualified to do business in this state,
or is doing
8 business within in
this state, the local, county, or area
9 division of that charitable organization is not required to
10 register under section 3 if the superior or parent organization
11 files an application
statement registers on behalf
of the
12 local, county, or area
division in addition to or as part of its
13 application
statement. When an application statement has been
14 the superior or parent organization's registration. If a
15 registration is filed by a superior or parent organization, it
16 shall file the annual
report required under sections 14 and 16
17 this act on behalf of the local, county, or area division in
18 such the detail as required by the rules
attorney general.
19 Sec. 10. The attorney general may promulgate rules
20 necessary for the
administration of this act in accordance with
21 and subject to Act No.
306 of the Public Acts of 1969, as
22 amended, being
sections 24.201 to 24.315 of the Michigan Compiled
23 Laws under the administrative procedures act of 1969,
1969
24 PA 306, MCL 24.201 to 24.328. Emergency rules may not be
25 promulgated. pursuant
to this act.
26 Sec. 11. (1) An
application for a license The attorney
27 general shall not be
accepted from register a charitable
1 organization, professional fund-raiser, or vendor located in
2 another state or country
unless it that charitable
3 organization, professional fund-raiser, or vendor first
4 designates a resident
agent in this state for the acceptance of
5 to accept process issued by any court.
6 (2) A charitable organization, person, vendor, or
7 professional fund
raiser, or professional solicitor, soliciting
8 contributions in this
state but not maintaining an office within
9 the state shall be fund-raiser subject to this act is subject to
10 service of process as follows:
11 (a) By service on its
registered resident agent within
12 the this state, or if there is no registered
resident agent,
13 then upon the person who
has been designated in the
14 application statement
registration as having
custody of books
15 and records within this state, or upon an officer of the
16 organization at its principal office. When If service is
17 effected upon the person designated in the registration,
18 statement a copy of the process shall be mailed to the
19 charitable organization, person, vendor, or professional
20 fund-raiser at its last known address.
21 (b) When a
charitable organization has solicited
22 contributions in this
state but does not maintain an office
23 within the state, have
a registered agent within this state and
24 have a designated
person having custody of its books and records
25 within the state, or
when a registered agent or person having
26 custody of its books
and records within the state cannot be found
27 as shown by the return
of the sheriff of the county in which the
1 registered agent or
person having custody of books and records
2 has been represented
by the charitable organization as
3 maintaining an office,
If service cannot be effected as
provided
4 by this section, service may be made as otherwise provided by law
5 or court rules.
6 (3) Solicitation of a contribution within this state by any
7 means , is the
agreement of the charitable organization,
8 person, vendor, or
professional fund raiser, or professional
9 solicitor, fund-raiser that any service of process
against it
10 or him which is served in accordance with under this
section
11 is of the same legal force and effect as if served personally.
12 Sec. 12. Upon the
initial filing of an application
13 statement pursuant to a registration under section 3, the
14 attorney general may suspend for a reasonable, specifically
15 designated time the
filing of reports otherwise required by
16 sections 14 and 15 under this act as to a particular charitable
17 corporation, trust,
or organization, incorporated
or
18 established for
charitable purposes, upon written
application
19 filed with the attorney general, and after the attorney general
20 has determined and acquiesced by a written statement that the
21 interest of the public interest will not be prejudiced.
22 thereby.
23 Sec. 13. The licensing
and financial statement
24 registration and reporting requirements of this act do not apply
25 to any of the following:
26 (a) A person who requests a contribution for the relief or
27 benefit of an individual, specified by name at the time of the
1 solicitation, if the contributions collected are turned over to
2 the named beneficiary after deducting reasonable expenses for
3 costs of solicitation, if
any, and if all fun-raising
4 fund-raising functions are carried on by persons who are unpaid,
5 directly or indirectly, for their services.
6 (b) A person who charitable
organization that does not
7 intend to solicit and receive and does not actually receive
8 contributions in excess
of $8,000.00 $25,000.00 during any
9 12-month period if all
of its fund raising functions are carried
10 on by persons who are
unpaid for their services and if the
11 organization makes
available to its members and the public a
12 financial statement of
its activities for the most recent fiscal
13 year. If the gross
contributions received during any 12-month
14 period exceed
$8,000.00, the person shall file an application for
15 license with required
supporting information as provided in
16 section 3 within 30
days after the date it has received total
17 contributions in
excess of $8,000.00. its fiscal
year. A
18 charitable organization shall register as required under this act
19 within 30 days after the date the charitable organization
20 receives total contributions of more than $25,000.00 during its
21 fiscal year. This subdivision only applies if all of the
22 charitable organization's fund-raising functions are carried on
23 by persons who are not paid for their services.
24 (c) An organization that does not invite the general public
25 to become a member of the organization and confines solicitation
26 activities to solicitation drives solely among its members and
27 the members' immediate
families. , if the drives are not held
1 more frequently than
quarterly. "Immediate
family" for purposes
2 of this subdivision means the grandparents, parents, spouse,
3 brothers, sisters, children, and grandchildren of a member.
4 (d) An
educational institution certified by the state board
5 of education A private foundation as that term is defined in
6 section 509(a) of the internal revenue code of 1986 that did not
7 receive contributions from more than 25 persons during its most
8 recent fiscal year.
9 (e) A veterans'
organization incorporated under federal law
10 chartered by congress, its duly authorized service foundation,
11 and a professional fund-raiser who fund-raises solely for that
12 service foundation.
13 (f) An organization that receives funds from a charitable
14 organization licensed
registered under this act that does not
15 solicit or intend to solicit or receive or intend to receive
16 contributions from
persons other than a the registered
17 charitable organization, if the organization makes available to
18 its members and the public a financial statement of its
19 activities for the its
most recent fiscal year.
20 (g) A licensed
hospital, hospital based foundation, and
21 hospital auxiliary
that solicit funds solely for 1 or more
22 licensed hospitals A booster group or a parent-teacher
23 organization that is recognized by the public school, nonpublic
24 school, or school district that it is organized to support.
25 (h) A nonprofit
service organization that is exempt from
26 taxation pursuant to a
provision of the United States internal
27 revenue code other
than section 501(c)(3), whose principal
1 purpose is not
charitable, but solicits from time to time funds
2 for a charitable
purpose by members of the organization who are
3 not paid for the
solicitation. The funds shall be wholly used
4 for the charitable
purposes for which they were solicited, and
5 the organization shall
file with the attorney general a federal
6 form 990 or 990 AR. A public school, nonpublic school,
7 preschool, or institution of higher education.
8 (i) A nonprofit
corporation whose stock is wholly owned by a
9 religious or fraternal
society that owns and operates facilities
10 for the aged and
chronically ill in which no part of the net
11 income from the
operation of the corporation inures to the
12 benefit of a person
other than the residents.
13 (j) Charitable
organizations licensed by the department of
14 social services that
serve children and families.
15 (i) (k) A
person registered under and complying with the
16 requirements of the public safety solicitation act, 1992 PA 298,
17 MCL 14.301 to 14.327.
18 Sec. 16. The attorney general may conditionally continue
19 under conditions the license registration of an a
20 charitable organization,
professional fund raiser, or
21 professional solicitor
which fund-raiser, or vendor that
fails
22 to comply with this act including
failure to comply with the
23 rules regarding
prohibited transactions, standards of
24 solicitation, conduct,
or administration or rules
promulgated
25 under this act.
26 Sec. 17. (1) A
person shall not act as a professional fund
27 raiser for a
charitable organization or charitable purpose before
1 he has filed an
application for a license with the attorney
2 general or after the
expiration or cancellation of a license or
3 renewal thereof.
Applications for license shall be in writing,
4 under oath, in the
form prescribed by the attorney general. The
5 applicant when making
application, shall file with and have
6 approved by the
attorney general a bond in which the applicant
7 shall be the principal
obligor, in the sum of $10,000.00. The
8 bond shall run to the
people of the state and to any person
9 including charitable
organizations who may have a cause of action
10 against the obligor of
the bond for any malfeasance or
11 misfeasance in the
conduct of the solicitation. The aggregate
12 limit of liability of
the surety to the state and to all the
13 persons shall not
exceed the sum of the bond. Application for
14 renewal of licenses
when effected shall be for a period of 1
15 year, or a part
thereof, expiring on June 30, and may be renewed
16 for additional 1-year
periods upon written application, under
17 oath, in the form
prescribed by the attorney general and the
18 filing of the bond. A professional fund-raiser shall not solicit
19 or receive donations for a charitable purpose or on behalf of a
20 charitable organization or religious organization, before
21 registering with the attorney general, or after the expiration,
22 suspension, revocation, or denial of a registration.
23 (2) A person
shall not act as a professional solicitor in
24 the employ of a
professional fund raiser required to be licensed
25 before he has
registered with the attorney general or after the
26 expiration or
cancellation of registration. Application for The
27 registration or
reregistration of a professional fund-raiser
1 shall be in writing ,
under oath, in the on a form prescribed
2 by the attorney general .
Registration or reregistration when
3 effected shall be for
a period of 1 year, or a part thereof,
4 expiring on June 30, and
may be renewed upon written application,
5 under oath, in the
form prescribed by the attorney general for
6 additional 1-year
periods. and shall be accompanied
by a payment
7 of a $200.00 fee. Information provided to the attorney general
8 on the registration form shall include all of the following:
9 (a) All names currently used by the professional
10 fund-raiser.
11 (b) The address and telephone number of the principal office
12 of the professional fund-raiser and of each office it maintains
13 in this state.
14 (c) If the principal address of the professional fund-raiser
15 is not in this state, the address and telephone number of a
16 resident agent in this state.
17 (d) Where and when the professional fund-raiser was legally
18 established and the form of its organization. If a professional
19 fund-raiser is incorporated, the registration form shall include
20 the name and business or home address of all officers and
21 directors. If a professional fund-raiser is a sole
22 proprietorship, limited liability company, or partnership, the
23 registration form shall include the name and business or home
24 address of the owner, all members and managers, or all partners,
25 respectively.
26 (e) The name, address, and telephone number of anyone with
27 direct responsibility for solicitation activity in this state.
1 (f) Whether the professional fund-raiser or any of its
2 officers, directors, or principals is, or has ever been,
3 enjoined, fined, convicted, or subject to any other sanction or
4 penalty as a result of soliciting contributions in any state or
5 country.
6 (g) A concise description of the principal methods by which
7 the professional fund-raiser is, or will be, soliciting
8 contributions.
9 (h) The name, address, and telephone number of any charitable
10 organization for which the professional fund-raiser has agreed to
11 solicit funds or provide services as a professional fund-raiser
12 on any campaign in this state.
13 (i) A complete copy of any agreement between the professional
14 fund-raiser and a charitable organization.
15 (j) A complete copy of any subcontract agreement between the
16 professional fund-raiser and a person that will act as a
17 professional fund-raiser on behalf of a charitable organization,
18 religious organization, or any other person soliciting for a
19 charitable purpose.
20 (k) Whether an officer, director, or employee of a charitable
21 organization owns a 10% or greater interest in the professional
22 fund-raiser, or is an agent or contractor for the professional
23 fund-raiser, during a period of time when the professional
24 fund-raiser is under contract with that charitable organization
25 to solicit funds, and whether that information has been fully
26 disclosed to the board of directors or other governing body of
27 the charitable organization.
1 (3) Except as otherwise provided in subsection (4), a
2 professional fund-raiser that receives, has custody of, or has
3 access to funds solicited in this state for a charitable
4 organization shall include with a registration a $25,000.00 bond
5 that meets all of the following:
6 (a) The professional fund-raiser is the principal obligor.
7 (b) The bond runs to the benefit of the people of this state
8 and to any person, including a charitable organization, that may
9 have a cause of action against the professional fund-raiser as a
10 result of the professional fund-raiser's conduct of any activity
11 subject to this act.
12 (c) The bond is obtained and submitted in the form prescribed
13 by the attorney general.
14 (d) A company authorized to engage in insurance activity in
15 this state issues the bond.
16 (e) The term of the bond does not expire until at least 1
17 year after the professional fund-raiser's registration expires.
18 (4) The attorney general may accept an irrevocable letter of
19 credit in lieu of a bond required under subsection (3) if the
20 irrevocable letter of credit is issued by a financial institution
21 that is authorized to transact business in this state and the
22 irrevocable letter of credit is insured by the federal deposit
23 insurance corporation, the federal savings and loan insurance
24 corporation, or the national credit union association. An
25 irrevocable letter of credit shall be submitted in the form
26 prescribed by the attorney general and shall expire not less than
27 1 year after the professional fund-raiser's registration
1 expires.
2 (5) Within 90 days after a solicitation campaign is
3 completed, or on the anniversary of the commencement of a
4 solicitation campaign lasting more than 1 year, a professional
5 fund-raiser that solicited contributions in this state on behalf
6 of a charitable organization shall file with the attorney general
7 a financial report for the campaign, including gross revenue and
8 an itemization of all expenses incurred on behalf of the
9 charitable organization. The report shall be submitted on a form
10 prescribed by the attorney general. An authorized official of
11 the professional fund-raiser and an authorized official of the
12 charitable organization shall sign the report, and each shall
13 certify, under oath, that the report is true to the best of his
14 or her knowledge.
15 (6) A professional fund-raiser's registration is effective
16 immediately upon receipt by the attorney general of the
17 information and fees required under this act. A registration
18 expires 1 year after the registration is effective. A
19 professional fund-raiser's registration is renewable by filing a
20 renewal registration and paying a $200.00 fee.
21 Sec. 18. (1) A
person shall not use for the purpose of
22 soliciting
contributions the name of another person, except that
23 of an officer,
director, or trustee of the charitable
24 organization by or for
which contributions are solicited, without
25 the consent of such
other person. A charitable organization,
26 professional fund-raiser, commercial coventurer, vendor, person
27 described in section 23a, or an employee or agent of a charitable
1 organization, professional fund-raiser, commercial coventurer,
2 vendor, or person described in section 23a shall not do any of
3 the following:
4 (a) Engage in a method, act, or practice in violation of this
5 act or a rule promulgated under this act, any restriction,
6 condition, or limitation placed on a registration, or a final
7 order or cease and desist order.
8 (b) Represent or imply that a person soliciting contributions
9 or other funds for a charitable organization has a sponsorship,
10 approval, status, affiliation, or other connection with a
11 charitable organization or charitable purpose that the person
12 does not have.
13 (c) Represent or imply that a contribution is for or on
14 behalf of a charitable organization, or using an emblem, device,
15 or printed material belonging to or associated with a charitable
16 organization, without first obtaining written authorization from
17 that charitable organization.
18 (d) Use a name, symbol, or statement so closely related or
19 similar to a name, symbol, or statement used by another
20 charitable organization or governmental agency that use of that
21 name, symbol, or statement would tend to confuse or mislead a
22 solicited person.
23 (e) Use a bogus, fictitious, or nonexistent organization,
24 address, or telephone number in any solicitation.
25 (f) Misrepresent or mislead any person in any manner to
26 believe that a person on whose behalf a solicitation effort is
27 conducted is a charitable organization or that the proceeds of a
1 solicitation effort are for charitable purposes.
2 (g) Misrepresent or mislead any person in any manner to
3 believe that a person sponsors, endorses, or approves a
4 solicitation effort if that person has not given written consent
5 to the use of his or her name for that purpose.
6 (h) Misrepresent or mislead any person in any manner to
7 believe that registration under this act constitutes endorsement
8 or approval by this state or a department or agency of this
9 state.
10 (i) Represent or imply that the amount or percentage of a
11 contribution that a charitable organization will receive for a
12 charitable program after costs of solicitation are paid is
13 greater than the amount or percentage of a contribution the
14 charitable organization will actually receive.
15 (j) Divert or misdirect contributions to a purpose or
16 organization other than that for which the funds were contributed
17 or solicited.
18 (k) Falsely represent or imply that a donor will receive
19 special benefits or treatment or that failure to make a
20 contribution will result in unfavorable treatment.
21 (l) Misrepresent or mislead any person in any manner to
22 believe that a contribution is eligible for tax advantages unless
23 that contribution qualifies for those tax advantages and all
24 disclosures required by law are made.
25 (m) Falsely represent or imply that a person being solicited
26 or a family member or associate of a person being solicited has
27 previously made or agreed to make a contribution.
1 (n) Employ any device, scheme, or artifice to defraud or
2 obtain money or property from a person by means of a false,
3 deceptive, or misleading pretense, representation, or promise.
4 (o) Represent that funds solicited will be used for a
5 particular charitable purpose if those funds are not used for the
6 represented purpose.
7 (p) Solicit contributions, conduct a sales promotion, or
8 otherwise operate in this state as a charitable organization,
9 professional fund-raiser, or vendor unless the information
10 required under this act is filed with the attorney general as
11 required under this act.
12 (q) Aid, abet, or otherwise permit a person to solicit
13 contributions or conduct a sales promotion in this state unless
14 the person soliciting contributions or conducting the sales
15 promotion has complied with the requirements of this act.
16 (r) Fail to file the information and reports required under
17 this act or fail to provide any information requested by the
18 attorney general in a timely manner.
19 (s) Fail to remove a person's name from any donor or mail
20 list utilized by a charitable organization or professional
21 fund-raiser for solicitation purposes if that person requests
22 that his or her name be removed from that list.
23 (2) A person has
used the name of another person for the
24 purpose of soliciting
contributions if the latter person's name
25 is listed on
stationery, an advertisement, brochure, or in
26 correspondence by
which a contribution is solicited by or on
27 behalf of a charitable
organization or the name is listed or
1 referred to in
connection with a request for a contribution as
2 one who has
contributed to, sponsored, or indorsed the
3 organization or its
activities.
4 (2) (3) This
section does not prevent the publication of
5 names of contributors without their written consent in an annual
6 or other periodic report issued by a charitable organization for
7 the purpose of reporting on its operations and affairs to its
8 membership or for the purpose of reporting contributions to
9 contributors.
10 (4) A charitable
organization or professional fund raiser
11 soliciting
contributions shall not use a name, symbol, or
12 statement so closely
related or similar to that used by another
13 charitable
organization or governmental agency that would tend to
14 confuse or mislead the
public.
15 (3) (5) A
charitable organization, whether or not exempt
16 or not from this act, shall supply to each solicitor and
each
17 solicitor shall have in his or her immediate possession
18 identification which that
sets forth the name of the solicitor
19 and the name of the charitable organization on whose behalf the
20 solicitation is conducted.
21 Sec. 19. (1) Before conducting a charitable sales promotion
22 or solicitation campaign, a vendor shall register with the
23 attorney general on a form prescribed by the attorney general.
24 The registration shall include, but is not limited to, the
25 following information:
26 (a) The name of the vendor and any other corporate, business,
27 or trade names used by the vendor.
1 (b) The address and telephone number of the principal office
2 of the vendor.
3 (c) If the vendor is not a sole proprietorship, where and
4 when the vendor was legally established and the form of its
5 organization.
6 (d) A concise description of the principal methods by which
7 the vendor intends to conduct its charitable sales promotion or
8 solicitation campaign in Michigan.
9 (e) The name, address, and telephone number of each
10 charitable organization with which the vendor has contracted.
11 (f) A complete copy of any agreement between the vendor and a
12 charitable organization.
13 (2) A vendor shall pay a fee of $50.00 with its
14 registration.
15 (3) A vendor's registration is effective immediately upon the
16 attorney general's receipt of the information and fees required
17 under this act.
18 (4) A vendor's registration shall expire 1 year after its
19 registration is effective.
20 (5) A vendor shall not conduct a charitable sales promotion
21 or solicitation campaign in which it uses the name of a
22 charitable organization that is not registered in this state.
23 Sec. 19a. A vendor shall report to the attorney general the
24 total dollar sales of each charitable sales promotion or
25 solicitation campaign conducted in this state and the amount paid
26 to each charitable organization with its renewal registration or
27 within 30 days after the conclusion of a charitable sales
1 promotion or solicitation campaign in this state if no further
2 charitable sales promotion or solicitation campaign is intended.
3 Sec. 19b. A vendor shall prominently display the following
4 information on each vending machine, honor box, novelty machine,
5 or similar device through which that vendor conducts a charitable
6 sales promotion or solicitation campaign:
7 (a) The name of the vendor and the fact that the vendor owns
8 the vending machine, honor box, novelty machine, or similar
9 device.
10 (b) The percentage of sales, if any, that a charitable
11 organization will receive.
12 (c) The amount that a charitable organization will receive
13 regardless of sales, if any.
14 Sec. 19c. (1) Before making an oral request for a
15 contribution and contemporaneously with a written request for a
16 contribution, the charitable organization, professional
17 fund-raiser, or vendor soliciting the contribution shall disclose
18 the name and location by city and state of each charitable
19 organization on behalf of which the solicitation is made. If a
20 solicitation is made by direct personal contact, the information
21 required under this section shall also be disclosed prominently
22 on any written document exhibited to the person solicited. If a
23 solicitation is made by radio, television, letter, telephone, or
24 any other means not involving personal contact, the information
25 required under this section shall be disclosed prominently in the
26 solicitation. The information required under this section shall
27 also be disclosed prominently on any invoices, bills, fulfillment
1 requests, letters, pamphlets, or brochures used to obtain payment
2 of a pledge or promise to make a contribution.
3 (2) In addition to the information required under subsection
4 (1), a professional fund-raiser that orally solicits
5 contributions in this state shall also disclose the professional
6 fund-raiser's name as filed with the attorney general and a
7 statement that the solicitation is being conducted by a
8 professional fund-raiser. The information required under this
9 subsection shall be provided in the same manner as the
10 information required under subsection (1).
11 Sec. 19d. A person required to register under this act is
12 subject to a late fee of $1.00 per day up to a maximum late fee
13 of $100.00 if any of the following occur:
14 (a) A charitable organization fails to file a report on or
15 before the date its registration expires as provided in section
16 7(1) unless an extension has been granted under section 7(4).
17 (b) A professional fund-raiser fails to file a report as
18 required under section 17(5).
19 (c) A vendor fails to file a campaign financial report or
20 campaign sales report as required under section 19a.
21 (d) A charitable organization, professional fund-raiser, or
22 vendor fails to cure a defect in its registration or annual
23 report within 30 days after notice by the attorney general that a
24 correction or additional information is required.
25 Sec. 20. (1) The
attorney general may, institute in
26 addition to any other action authorized by law, bring an action
27 in any circuit court to enjoin preliminarily or permanently a
1 charitable
organization, professional fund raiser, solicitor, or
2 other person who: (a)
Engages in a method, act, or practice in
3 violation of this act
or any of the rules promulgated hereunder.
4 (b) Employs or uses in
a solicitation or collection of
5 contributions for a
charitable organization on behalf of any
6 other person for a
charitable purpose a device, scheme, or
7 artifice to defraud,
or for obtaining money or property by means
8 of any false pretense,
deception, representation, or promise. an
9 act or practice prohibited under this act. After finding that a
10 person has engaged in or is engaging in a prohibited act or
11 practice, a court may enter any necessary order or judgment,
12 including, but not limited to, an injunction, an order of
13 restitution, or an award of reasonable attorney fees and costs.
14 A court may award to this state a civil penalty of $10,000.00 or
15 less for each violation of this act. A court need not find
16 irreparable harm to enter an injunction, but need only find a
17 violation of this act or find that an injunction would promote
18 the public interest.
19 (2) In addition
to any relief afforded under this section,
20 the attorney general
may exercise the authority to suspend or
21 revoke a license
issued pursuant to this act. A
charitable
22 organization, professional fund-raiser, or any other person who
23 violates an injunction or other order entered under subsection
24 (1) shall, in addition to any other remedy, pay to this state a
25 civil penalty of not more than $10,000.00 for each violation,
26 which may be recovered in a civil action brought by the attorney
27 general.
1 (3) The attorney
general may exercise the authority granted
2 in this section
against a charitable organization or person which
3 or who operates under
the guise or pretense of being an
4 organization or person
exempted by this act and is not in fact an
5 organization or person
entitled to such an exemption. In
6 addition to any other action authorized by law, the attorney
7 general may issue a cease and desist order, issue a notice of
8 intended action, or take other action in the public interest.
9 The attorney general may accept an assurance of discontinuance of
10 any method, act, or practice in violation of this act from any
11 person alleged to be engaged in or to have been engaged in that
12 method, act, or practice. An assurance of discontinuance may
13 include a stipulation for the voluntary payment of the costs of
14 investigation, for an amount to be held in escrow pending the
15 outcome of an action or as restitution to an aggrieved person, or
16 for the voluntary payment to another person if in the public
17 interest. An assurance of discontinuance shall be in writing and
18 shall be filed with the circuit court for Ingham county. An
19 action resolved by an assurance of discontinuance may be reopened
20 by the attorney general at any time for enforcement by a court or
21 for further proceedings in the public interest. Evidence of a
22 violation of an assurance of discontinuance is prima facie
23 evidence of a violation of this act in any subsequent proceeding
24 brought by the attorney general.
25 (4) A person who has violated section 18 is subject to 1 or
26 more of the following penalties:
27 (a) Placement of a restriction or condition on the person's
1 registration.
2 (b) Denial, suspension, or revocation of a registration.
3 (c) A civil fine of not more than $10,000.00 to be paid to
4 the attorney general.
5 (d) A requirement to take some type of affirmative action,
6 including the payment of restitution.
7 (5) The attorney general shall, before suspending or revoking
8 a registration, provide the person against whom the penalty is to
9 be imposed an opportunity for a hearing in accordance with the
10 administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
11 24.328.
12 (6) A person who suffers a loss as a result of a violation of
13 this act may exercise any right or remedy created under section
14 11 of the Michigan consumer protection act, 1976 PA 331,
15 MCL 445.911.
16 Sec. 21. (1) The
attorney general may investigate the
17 operations or conduct
of charitable organizations, professional
18 fund raisers, or
professional solicitors subject to this act. He
19 may require a person,
corporation, institution, or association,
20 and the officers,
members, and employees and agents thereof, to
21 appear at a named time
and place in the county designated by the
22 attorney general or
where the person resides or is found, to give
23 information under oath
and to produce books, memoranda, papers,
24 records, documents of
title, evidence of assets, liabilities,
25 receipts, or
disbursements in the possession or control of the
26 person ordered to
appear. a complaint from any
person in
27 whatever manner the attorney general considers appropriate and
1 may investigate on his or her own initiative a charitable
2 organization, professional fund-raiser, vendor, commercial
3 coventurer, or person described in section 23a. The attorney
4 general may require a person or an officer, member, employee, or
5 agent of a person to appear at a time and place specified by the
6 attorney general to give information under oath and to produce
7 books, memoranda, papers, records, documents, or evidence of
8 assets, liabilities, receipts, or disbursements in the possession
9 of the person ordered to appear.
10 (2) When requiring the attendance of a person, the attorney
11 general requires the
attendance of a person, he shall issue an
12 order setting forth the time when and the place where attendance
13 is required and shall cause
the same to be served serve the
14 order upon the person in the manner provided for service of
15 process in civil cases at least 5 days before the date fixed for
16 attendance. The order shall have the same force and effect as a
17 subpoena and, upon application of the attorney general,
18 obedience to the order may be enforced by a court having
19 jurisdiction over the
person , or the circuit court for the
20 county of Ingham , or
for the county where the person receiving
21 it the order resides or is found, in the same
manner as though
22 the notice were a
subpoena. In case of contumacy If a person
23 fails or refusal refuses
to obey the order issued by the
24 attorney general, the court may issue an order requiring the
25 person to appear before
the court, or to produce documentary
26 evidence, if so
ordered, or to give evidence touching
27 concerning the matter in question. Failure to obey the order of
1 the court shall be
punished is punishable by that court as a
2 contempt. The
investigation may be made conducted by or
3 before an assistant attorney general or other person
designated
4 in writing by the attorney general. to conduct the
5 investigation. The attorney general or the assistant attorney
6 general acting in his
behalf other designated person
may
7 administer the necessary oath or affirmation to witnesses.
8 (3) This act does not limit or restrict the powers or duties
9 of the attorney general that are authorized under any other
10 provision of law.
11 Sec. 22a. If an oral pledge or promise to make a
12 contribution is the result of a telephone or door-to-door
13 solicitation, that pledge or promise to make a contribution is
14 unenforceable.
15 Sec. 23. (1) A person who does any of the following is
16 guilty of a misdemeanor punishable by a fine of not more than
17 $500.00 $5,000.00, or imprisonment for not more than 6
months,
18 or both:
19 (a) Violates this act.
20 (b) Solicits and or
receives public donations, or sells
21 memberships in this state
for and or on behalf of any
22 organization, institution, or association subject to the
23 provisions of this act and
which that is not duly licensed
24 pursuant to registered under this act.
25 (c) Solicits funds
under a license registration and
26 thereafter diverts the same funds to purposes
other than that
27 for which the funds were contributed.
1 (2) This section shall
does not be construed to limit or
2 restrict prosecution
under the general criminal statutes of the
3 this state.
4 Sec. 23a. (1) A person that is not a charitable
5 organization, a professional fund-raiser, a vendor, or a
6 volunteer supervised by a charitable organization, but that
7 solicits contributions, conducts a fund-raising event, or
8 conducts a sales promotion or campaign for a charitable purpose
9 is subject to this act.
10 (2) A person subject to this act under subsection (1) is not
11 required to register or file reports required under this act.
12 Sec. 23b. The attorney general shall prepare and deliver a
13 report to the senate and to the house of representatives that
14 meets all of the following:
15 (a) The report shall describe in detail a plan to educate the
16 public regarding charitable organizations and professional
17 fund-raisers operating in or soliciting contributions in this
18 state.
19 (b) The report shall include a description of the information
20 the attorney general intends to disseminate to the public and
21 shall include a plan to disseminate the information to the public
22 free of charge.
23 (c) The attorney general shall present the report to the
24 senate and to the house of representatives within 1 year after
25 the effective date of the amendatory act that added this
26 section.
27 (d) The attorney general shall implement the plan to
1 disseminate information included in the report not later than 1
2 year after presenting the report to the senate or the house of
3 representatives, whichever occurs later.
4 Sec. 23c. The prosecuting attorney for a county may
5 investigate and prosecute a person subject to this act in the
6 same manner as the attorney general.
7 Enacting section 1. Sections 14 and 22 of the charitable
8 organizations and solicitations act, 1975 PA 169, MCL 400.284 and
9 400.292, are repealed.