<section article="gbr" article_name="Business Regulation" number="6-101" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <level label="a"> <text>In this title the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Associate solicitor” means a person who, for pay, solicits or receives charitable contributions for a professional solicitor.</text> </level> <level label="c"> <level label="1"> <text>“Charitable contribution” means a contribution made on a representation that it will be used for a charitable purpose.</text> </level> <level label="2"> <text>“Charitable contribution” includes the payment, transfer, or enforceable pledge of financial help, including money, credit, property, or services.</text> </level> <level label="3"> <text>“Charitable contribution” does not include:</text> <level label="i"> <text>an unsolicited gift;</text> </level> <level label="ii"> <text>a government grant or government money;</text> </level> <level label="iii"> <text>membership assessments, dues, or fines;</text> </level> <level label="iv"> <text>a payment for property sold or services rendered by a charitable organization, unless the property is sold or the services are rendered in connection with a charitable solicitation;</text> </level> <level label="v"> <text>a public safety contribution as defined in subsection (j) of this section; and</text> </level> <level label="vi"> <text>an authorization for or a discount on the use of services or materials, equipment, or facilities, including those relating to:</text> <level label="1"> <text>advertising; and</text> </level> <level label="2"> <text>broadcast airtime, including public service announcements.</text> </level> </level> </level> </level> <level label="d"> <level label="1"> <text>“Charitable organization” means:</text> <level label="i"> <text>a person that:</text> <level label="1"> <text>is or holds itself out to be a benevolent, educational, eleemosynary, humane, patriotic, philanthropic, or religious organization; and</text> </level> <level label="2"> <text>solicits or receives charitable contributions from the public; or</text> </level> </level> <level label="ii"> <text>an ambulance, fire fighting, fraternal, rescue, or police or other law enforcement organization when it solicits charitable contributions from the public.</text> </level> </level> <level label="2"> <text>“Charitable organization” includes an area, branch, chapter, office, or similar affiliate that solicits charitable contributions from the public within the State for a charitable organization that is organized or has its principal place of business outside the State.</text> </level> <level label="3"> <text>“Charitable organization” does not include:</text> <level label="i"> <text>an agency of the State government or of a political subdivision; or</text> </level> <level label="ii"> <text>a political club, committee, or party.</text> </level> </level> </level> <level label="e"> <text>“Charitable representative” means a professional solicitor, associate solicitor, or fund-raising counsel.</text> </level> <level label="f"> <level label="1"> <text>“Charitable solicitation” means an oral or written request for a charitable contribution, regardless of whether the person who makes the request receives the charitable contribution.</text> </level> <level label="2"> <text>“Charitable solicitation” includes:</text> <level label="i"> <text>a fund-raising drive, event, campaign, or other activity;</text> </level> <level label="ii"> <text>an announcement to the news media seeking charitable contributions;</text> </level> <level label="iii"> <text>except as provided in § 6-621 of this title, the distribution of a written advertisement or other publication that, directly or implicitly, seeks charitable contributions; and</text> </level> <level label="iv"> <text>the sale of, or offer or attempt to sell an admission, advertisement, advertising space, book card, chance, coupon, device, magazine, membership, merchandise, patron listing, subscription, tag, ticket, or other tangible item in connection with which:</text> <level label="1"> <text>an appeal is made for charitable contributions;</text> </level> <level label="2"> <text>the name of a charitable organization is used expressly or implicitly to induce a purchase; or</text> </level> <level label="3"> <text>a statement is made that some or all of the proceeds from the sale are to be used for a charitable purpose.</text> </level> </level> </level> </level> <level label="g"> <text>“Disclosure statement” means a written statement that includes the following information:</text> <level label="1"> <text>a statement that a copy of the current financial statement of the charitable organization is available on request;</text> </level> <level label="2"> <text>the name of the charitable organization and the address and telephone number where requests for a copy of the financial statement should be directed; and</text> </level> <level label="3"> <text>a statement that, for the cost of copies and postage, documents and information submitted under this title are available from the Secretary of State.</text> </level> </level> <level label="h"> <level label="1"> <text>“Fund–raising counsel” means a person who, for pay:</text> <level label="i"> <text>advises a charitable organization about a charitable solicitation in Maryland or holds, plans, or manages a charitable solicitation in Maryland; but</text> </level> <level label="ii"> <text>does not directly solicit or receive charitable contributions from the public.</text> </level> </level> <level label="2"> <text>“Fund–raising counsel” does not include:</text> <level label="i"> <text>an attorney because of giving legal advice;</text> </level> <level label="ii"> <text>an attorney, investment counselor, or banker because of advising a client or customer to contribute to a charitable organization;</text> </level> <level label="iii"> <text>a salaried officer or employee of a charitable organization that keeps a permanent office in the State;</text> </level> <level label="iv"> <text>a person who prepares a grant proposal for submission to a specific charitable organization, corporation, or foundation; or</text> </level> <level label="v"> <text>a person who is engaged as an independent contractor directly by a charitable organization and who:</text> <level label="1"> <text>prints, reproduces, or distributes written materials prepared by a charitable organization or an employee of the charitable organization;</text> </level> <level label="2"> <text>performs artistic or graphic services relating to written materials prepared by a charitable organization or an employee of the charitable organization; or</text> </level> <level label="3"> <text>is regularly and primarily engaged in the planning and organizing of meetings, social events, or other similar activities, but who does not solicit charitable contributions as a part of the person’s services.</text> </level> </level> </level> </level> <level label="i"> <level label="1"> <text>“Professional solicitor” means a person who, for pay:</text> <level label="i"> <text>advises a charitable organization about a charitable solicitation;</text> </level> <level label="ii"> <text>holds, plans, or manages a charitable solicitation; or</text> </level> <level label="iii"> <text>solicits or receives charitable contributions for a charitable organization, personally or through an associate solicitor.</text> </level> </level> <level label="2"> <text>“Professional solicitor” does not include:</text> <level label="i"> <text>an attorney, investment counselor, or banker because of advising a client or customer to contribute to a charitable organization;</text> </level> <level label="ii"> <text>a salaried officer or employee of a charitable organization that keeps a permanent office in the State; or</text> </level> <level label="iii"> <text>a person who solicits, receives, or collects used personal property, including household goods, furniture, appliances, or clothing, if the property is displayed or resold to the public at a retail establishment.</text> </level> </level> </level> <level label="j"> <text>“Public safety contribution” means a contribution made on a representation that it will be used for the purposes of a public safety organization.</text> </level> <level label="k"> <text>“Public safety organization” means a person who is or purports to be a fire fighting, ambulance, rescue, police, fraternal, or other law enforcement organization.</text> </level> <level label="l"> <level label="1"> <text>“Public safety solicitor” means a person who, for pay, solicits or receives public safety contributions, personally or through another.</text> </level> <level label="2"> <text>“Public safety solicitor” does not include:</text> <level label="i"> <text>an attorney, investment counselor, or banker because of advising a client or customer to make a public safety contribution; or</text> </level> <level label="ii"> <text>an individual who is a member, salaried officer, or employee of a public safety organization that is affiliated with a State or local agency and keeps a permanent office in the State.</text> </level> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-102" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <level label="a"> <level label="1"> <text>In this section, “member” includes a student, former student, parent of a student or former student, present or former board member, and staff member of an accredited school, college, or university.</text> </level> <level label="2"> <text>In this section, “member” does not include an individual who is granted membership on making a charitable contribution as the result of a charitable solicitation.</text> </level> </level> <level label="b"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, this title does not apply to fund-raising by a volunteer organization of firefighters or rescue or ambulance personnel for its ambulance, fire fighting, or rescue operations.</text> </level> <level label="2"> <text>This title applies to a public safety solicitor employed by a volunteer organization of firefighters or rescue or ambulance personnel.</text> </level> </level> <level label="c"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, a charitable organization is exempt from the registration and disclosure requirements of this title if the charitable organization:</text> <level label="i"> <text>does not employ a professional solicitor; and</text> </level> <level label="ii"> <level label="1"> <text>solicits charitable contributions for a named individual and the gross amount is delivered to the individual;</text> </level> <level label="2"> <level label="A"> <text>is a religious organization, a parent organization of a religious organization, or a school affiliated with a religious organization; and</text> </level> </level> <level label="B"> <text>has in effect a declaration of tax-exempt status from the government of the United States;</text> </level> <level label="3"> <text>solicits charitable contributions only from its members;</text> </level> <level label="4"> <text>does not receive more than $25,000 in charitable contributions from the public during the year for which a registration statement and annual report otherwise would be required; or</text> </level> <level label="5"> <text>only receives contributions from for-profit corporations and organizations determined to be private foundations by the government of the United States.</text> </level> </level> </level> <level label="2"> <level label="i"> <text>A charitable organization claiming exemption under paragraph (1) of this subsection shall submit evidence of its entitlement to an exemption upon request of the Secretary of State.</text> </level> <level label="ii"> <text>A charitable organization that fails to submit evidence satisfactory to the Secretary of State under subparagraph (i) of this paragraph is not exempt from the requirements of this title.</text> </level> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-201" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="2" subtitle_name="Powers and Duties of the Secretary of State and the Attorney General"> <level label="a"> <text>In this section, “Program” means the Charitable Giving Information Program.</text> </level> <level label="b"> <text>There is a Charitable Giving Information Program in the Office of the Secretary of State.</text> </level> <level label="c"> <text>The purpose of the Program is to educate the public about charitable organizations and charitable solicitations so that members of the public can:</text> <level label="1"> <text>recognize unlawful or misleading charitable solicitations; and</text> </level> <level label="2"> <text>make informed decisions about charitable contributions to charitable organizations.</text> </level> </level> <level label="d"> <text>The Program shall inform the public of:</text> <level label="1"> <text>the laws and regulations about charitable organizations and charitable solicitations, including registration requirements, prohibited acts and penalties, and the availability of information through the Office of the Secretary of State;</text> </level> <level label="2"> <text>the importance of reporting alleged unlawful or misleading charitable solicitations to the Office of the Secretary of State;</text> </level> <level label="3"> <text>an address and toll-free telephone number through which the public can get information about charitable organizations and charitable solicitations and can report alleged violations of this title;</text> </level> <level label="4"> <text>precautions an individual may take before making a charitable contribution to a charitable organization; and</text> </level> <level label="5"> <text>any other information the Secretary of State believes will help the public make informed decisions about charitable contributions to charitable organizations.</text> </level> </level> <level label="e"> <text>The Program shall make available:</text> <level label="1"> <text>written materials, in places easily accessible to the public, including libraries, schools, and other public buildings;</text> </level> <level label="2"> <text>on request, individuals to speak to community groups or other groups; and</text> </level> <level label="3"> <text>material for broad distribution to the public or for use by the news media.</text> </level> </level> <level label="f"> <level label="1"> <text>The Program may make available a disk containing computerized data if:</text> <level label="i"> <text>the Secretary of State determines that making the disk available serves the purposes of the Program; and</text> </level> <level label="ii"> <text>the person agrees in writing to use the disk only for purposes approved by the Secretary of State, and not to copy the disk, or permit the disk to be copied, without the prior written consent of the Secretary of State.</text> </level> </level> <level label="2"> <level label="i"> <text>The Secretary of State may charge a reasonable fee for a disk under this section.</text> </level> <level label="ii"> <text>The fee may not exceed the actual cost of purchasing and preparing the disk.</text> </level> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-202" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="2" subtitle_name="Powers and Duties of the Secretary of State and the Attorney General"> <level label="a"> <text>In this section, “foreign charitable organization or representative” means a charitable organization or charitable representative who:</text> <level label="1"> <text>has its principal place of business out of state; or</text> </level> <level label="2"> <text>is organized under the laws of another state.</text> </level> </level> <level label="b"> <text>By soliciting a charitable contribution in the State, a foreign charitable organization or representative irrevocably appoints the Secretary of State as agent to receive a subpoena, summons, or other process that is:</text> <level label="1"> <text>issued in an action brought under this title; and</text> </level> <level label="2"> <text>directed to:</text> <level label="i"> <text>the foreign charitable organization or representative; or</text> </level> <level label="ii"> <text>a partner, principal officer, or director of the foreign charitable organization or representative.</text> </level> </level> </level> <level label="c"> <text>Service of process is sufficient service on a foreign charitable organization or representative if:</text> <level label="1"> <text>service is made by the personal delivery and leaving of a copy of the process with the Secretary of State or the authorized representative of the Secretary of State; and</text> </level> <level label="2"> <text>the Secretary of State sends a copy of the process by certified mail to the foreign charitable organization or representative at its last known address.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-203" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="2" subtitle_name="Powers and Duties of the Secretary of State and the Attorney General"> <text>Each document submitted to the Secretary of State under this title is a public record and shall be:</text> <level label="1"> <text>kept in the Office of the Secretary of State for at least 2 years; and</text> </level> <level label="2"> <text>made available to the public during the normal business hours of the Secretary of State for inspection and for photocopying at a reasonable price.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-204" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="2" subtitle_name="Powers and Duties of the Secretary of State and the Attorney General"> <text>The Secretary of State shall adopt regulations to carry out this title.</text> </section> <section article="gbr" article_name="Business Regulation" number="6-205" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="2" subtitle_name="Powers and Duties of the Secretary of State and the Attorney General"> <level label="a"> <level label="1"> <text>The Secretary of State or the Attorney General may investigate an alleged violation of this title.</text> </level> <level label="2"> <level label="i"> <text>In the course of any examination, investigation, or hearing, the Secretary of State or the Attorney General may subpoena witnesses, administer oaths, examine an individual under oath, serve written interrogatories, and compel production of records, books, papers, and other documents.</text> </level> <level label="ii"> <text>Information obtained under this subsection is not admissible in a subsequent criminal proceeding against the person who provided the information.</text> </level> </level> </level> <level label="b"> <text>If the Secretary of State or the Attorney General finds or has reasonable grounds to believe that a charitable organization, charitable representative, or public safety solicitor has violated this title, the Secretary of State or the Attorney General may take one or more of the following actions:</text> <level label="1"> <text>by mediation with the apparent violators and any representatives they may choose to assist them, enter into a written assurance of discontinuance, written assurance of voluntary compliance, or other settlement agreement with the apparent violators, in accordance with subsection (c) of this section;</text> </level> <level label="2"> <text>summarily issue a cease and desist order to the violator, if the Secretary of State or the Attorney General:</text> <level label="i"> <text>finds that this title has been violated and that the public health, safety, or welfare requires emergency action; and</text> </level> <level label="ii"> <text>gives the violator written notice of the order, the reasons for the order, and the right of the violator to request a hearing under subsection (g) of this section; or</text> </level> </level> <level label="3"> <text>refer the matter to the appropriate State’s Attorney for prosecution.</text> </level> </level> <level label="c"> <text>A settlement agreement under subsection (b)(1) of this section may include one or more of the following stipulations or conditions:</text> <level label="1"> <text>payment by the apparent violator of the cost of the investigation;</text> </level> <level label="2"> <text>payment by the apparent violator of civil penalties a court could order under this title;</text> </level> <level label="3"> <text>payment by the apparent violator of refunds to donors a court could order under this title;</text> </level> <level label="4"> <text>payment by the apparent violator of contributions received to charitable or public safety beneficiaries or for charitable or public safety purposes consistent with the beneficiaries named or purposes represented in the charitable or public safety solicitations which generated the contributions; or</text> </level> <level label="5"> <text>any other stipulation, condition, or remedy that will correct a violation of this title.</text> </level> </level> <level label="d"> <text>An agreement under this section is for conciliation purposes only and does not constitute an admission by any party that the law has been violated.</text> </level> <level label="e"> <level label="1"> <text>It is a violation of this title to fail to adhere to any provision contained in a settlement agreement.</text> </level> <level label="2"> <text>A failure of the Secretary of State or the Attorney General to enforce a violation of any provision of a settlement agreement does not constitute a waiver of that or any other provision, or of any right of the Secretary of State or the Attorney General.</text> </level> </level> <level label="f"> <text>The Attorney General may sue in the circuit court for the county in which the alleged violation occurred for an order that:</text> <level label="1"> <text>restrains further violation of this title;</text> </level> <level label="2"> <text>restrains the defendant from making further charitable or public safety solicitations in the State;</text> </level> <level label="3"> <text>except as provided under § 6–5A–11 of this title, recovers for the State a civil penalty not to exceed $5,000 for each willful violation of this title;</text> </level> <level label="4"> <text>except as provided under § 6–5A–11 of this title, recovers for the State a civil penalty not to exceed $3,000 for each grossly negligent violation of this title;</text> </level> <level label="5"> <text>enforces compliance with this title; or</text> </level> <level label="6"> <text>secures any other appropriate relief, including:</text> <level label="i"> <text>refunds to donors; and</text> </level> <level label="ii"> <text>payment of the charitable or public safety contributions received by the solicitor to charitable or public safety purposes or beneficiaries consistent with the purposes represented or beneficiaries named in the charitable or public safety solicitations which generated the contributions.</text> </level> </level> </level> <level label="g"> <level label="1"> <text>If the Secretary of State or the Attorney General issues a cease and desist order to a person, the person may request a hearing from the Secretary of State.</text> </level> <level label="2"> <text>Within 30 days after a request is submitted, the Secretary of State shall hold a hearing in accordance with Title 10, Subtitle 2 of the State Government Article.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-206" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="2" subtitle_name="Powers and Duties of the Secretary of State and the Attorney General"> <text>The Secretary of State or the Attorney General may make reciprocal agreements with other states to:</text> <level label="1"> <text>exchange information about charitable organizations or charitable representatives; or</text> </level> <level label="2"> <text>accept substantially similar information submitted to those states by charitable organizations or charitable representatives instead of the information required to be submitted under this title.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-207" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="2" subtitle_name="Powers and Duties of the Secretary of State and the Attorney General"> <text>Except as otherwise provided in this title, the Secretary of State shall pay all money collected under this title into the General Fund of the State.</text> </section> <section article="gbr" article_name="Business Regulation" number="6-2A-01" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="2A" subtitle_name="Charitable Enforcement Fund"> <level label="a"> <text>In this subtitle, “Fund” means the Charitable Enforcement Fund.</text> </level> <level label="b"> <text>There is a Charitable Enforcement Fund in the Office of the Secretary of State.</text> </level> <level label="c"> <text>The purpose of the Fund is to support the actions of the Secretary of State and the Attorney General in administering and enforcing this title and Title 6.5 of this article.</text> </level> <level label="d"> <text>The Secretary of State shall administer the Fund.</text> </level> <level label="e"> <level label="1"> <text>The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article.</text> </level> <level label="2"> <text>The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.</text> </level> </level> <level label="f"> <text>The Fund consists of:</text> <level label="1"> <text>revenue distributed to the Fund under §§ 6–302 and 6–407 of this title;</text> </level> <level label="2"> <text>money appropriated in the State budget to the Fund; and</text> </level> <level label="3"> <text>any other money from any other source accepted for the benefit of the Fund.</text> </level> </level> <level label="g"> <text>The Fund may be used only to support the actions of the Secretary of State and the Attorney General in carrying out the duties of the Secretary of State and the Attorney General under this title and Title 6.5 of this article.</text> </level> <level label="h"> <text>The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.</text> </level> <level label="i"> <text>Expenditures from the Fund may be made only in accordance with the State budget.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-301" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="3" subtitle_name="Charitable Representatives"> <level label="a"> <text>A person must have applied to register appropriately with the Secretary of State whenever the person acts as:</text> <level label="1"> <text>an associate solicitor;</text> </level> <level label="2"> <text>a professional solicitor; or</text> </level> <level label="3"> <text>a fund-raising counsel.</text> </level> </level> <level label="b"> <text>If, within 10 days after a person starts employment as an associate solicitor, the person’s name is submitted to the Secretary of State in accordance with this subtitle, the person is deemed to be registered on the first day of employment.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-302" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="3" subtitle_name="Charitable Representatives"> <level label="a"> <text>An applicant for registration as a professional solicitor or fund–raising counsel shall:</text> <level label="1"> <text>submit to the Secretary of State an application under oath on the form that the Secretary of State provides;</text> </level> <level label="2"> <text>pay to the Secretary of State an application fee of:</text> <level label="i"> <text>$250 for registration as a fund–raising counsel; or</text> </level> <level label="ii"> <text>$350 for registration as a professional solicitor; and</text> </level> </level> <level label="3"> <level label="i"> <text>certify that all taxes due from the applicant to the State or to Baltimore City or a county of the State during the preceding fiscal year have been paid, and all taxes the applicant was required to collect and pay over to the State or to Baltimore City or a county of the State during the preceding fiscal year have been collected and paid over; or</text> </level> <level label="ii"> <text>certify that the taxes due from the applicant to the State or to Baltimore City or a county are under dispute and the dispute has not been finally resolved.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>An applicant for registration as a fund–raising counsel may register and pay a single application fee of $250 to cover all of the applicant’s officers, agents, members, and employees who work in fund–raising, if the applicant lists in the application the name and address of each of them.</text> </level> <level label="2"> <text>An applicant for registration as a professional solicitor may register and pay a single application fee of $350 to cover all of the applicant’s officers, agents, members, associate solicitors, and employees who work in fund–raising, if the applicant:</text> <level label="i"> <text>lists in the application the name of each current officer, agent, member, associate solicitor, and employee who works in fund–raising; and</text> </level> <level label="ii"> <text>submits to the Secretary of State the name of each person within 10 days after the person starts employment.</text> </level> </level> </level> <level label="c"> <text>Of the revenues collected from the application fees under subsections (a)(2) and (b)(1) and (2) of this section, $50 of the application fee paid by each fund–raising counsel and professional solicitor shall be distributed to the Charitable Enforcement Fund under Subtitle 2A of this title, to be used only to support the actions of the Secretary of State and the Attorney General in carrying out the duties of the Secretary of State and the Attorney General under this title and Title 6.5 of this article.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-303" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="3" subtitle_name="Charitable Representatives"> <level label="a"> <level label="1"> <text>Except as provided in subsection (c) of this section, on applying for registration as a professional solicitor, an applicant shall execute and submit to the Secretary of State a bond in the sum of $25,000, with surety that the Secretary of State approves.</text> </level> <level label="2"> <text>The bond shall run to the State for the use of the State and each person who may have a cause of action against the applicant for loss resulting from malfeasance, nonfeasance, or misfeasance in the applicant’s charitable solicitation.</text> </level> <level label="3"> <text>The applicant shall keep the bond in force as long as the registration is in effect.</text> </level> </level> <level label="b"> <text>An applicant for registration as a professional solicitor shall submit a consolidated bond for all of the officers, agents, members, associate solicitors, subcontractors, and employees of the professional solicitor.</text> </level> <level label="c"> <text>An applicant for registration as a professional solicitor that submits a $25,000 irrevocable letter of credit to the Secretary of State is not required to submit a surety bond under subsection (a) of this section.</text> </level> <level label="d"> <text>The Secretary of State may return a bond or irrevocable letter of credit filed under this section only if:</text> <level label="1"> <text>3 years have passed since the registration period to which the bond or letter applies, and there is no pending claim against the bond or letter; or</text> </level> <level label="2"> <text>the registration period to which the bond or letter applies is over, all required accounting reports have been properly completed and filed, and it appears to the satisfaction of the Secretary of State that the person is not in violation of the Maryland Charitable Solicitations Act.</text> </level> </level> <level label="e"> <text>The Secretary of State shall include with an application for registration as a professional solicitor a notice that a person may apply for return of a bond or irrevocable letter of credit after the registration period to which the bond or letter applies.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-304" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="3" subtitle_name="Charitable Representatives"> <level label="a"> <text>If the Secretary of State finds that an applicant for registration has complied with this title and the regulations adopted under it, the Secretary of State shall approve the application.</text> </level> <level label="b"> <text>If the Secretary of State finds that an applicant for registration has not complied with this title and the regulations adopted under it applicable to registration, the Secretary of State shall notify the applicant of the reasons the applicant is not in compliance.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-305" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="3" subtitle_name="Charitable Representatives"> <text>Each registration expires on the first anniversary of its effective date.</text> </section> <section article="gbr" article_name="Business Regulation" number="6-306" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="3" subtitle_name="Charitable Representatives"> <level label="a"> <text>If a currently registered professional solicitor applies for a new registration and has not yet submitted the accounting required by § 6-506 of this title, the professional solicitor shall submit with the new application:</text> <level label="1"> <text>that accounting; or</text> </level> <level label="2"> <text>an interim accounting, under oath and in a form that the Secretary of State requires, that accounts for all money received and disbursed for each fund-raising drive, campaign, or event through a date within 3 months before the professional solicitor’s current registration expires.</text> </level> </level> <level label="b"> <text>A person that acts as a professional solicitor before applying to register as a professional solicitor that has not submitted an accounting under § 6-506 of this title, shall submit with the professional solicitor application:</text> <level label="1"> <text>that accounting; or</text> </level> <level label="2"> <text>an interim accounting, under oath, and in a form that the Secretary of State requires, that accounts for all money received and disbursed for each fund-raising drive, campaign, or event through a date within 3 months before the person filed a professional solicitor application.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-307" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="3" subtitle_name="Charitable Representatives"> <level label="a"> <text>A person who has applied to register as an associate solicitor, professional solicitor, or fund-raising counsel may act as such unless and until the Circuit Court for Anne Arundel County or other court of competent jurisdiction orders the applicant to stop.</text> </level> <level label="b"> <text>The Secretary of State has the burden of proof in any proceeding to restrain or enjoin a person from acting as an associate solicitor, professional solicitor, or fund-raising counsel.</text> </level> <level label="c"> <text>The Circuit Court for Anne Arundel County or other court of competent jurisdiction may order a person to stop acting as a fund-raising counsel, associate solicitor, or professional solicitor if the applicant:</text> <level label="1"> <text>has not applied to register;</text> </level> <level label="2"> <text>has not applied to register in the appropriate category;</text> </level> <level label="3"> <text>has not met the registration requirements of the category for which the person has applied; or</text> </level> <level label="4"> <text>has otherwise violated the Maryland Charitable Solicitations Act.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-401" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="4" subtitle_name="Charitable Organizations"> <level label="a"> <text>A charitable organization shall register and receive a registration letter from the Secretary of State before the charitable organization:</text> <level label="1"> <text>solicits charitable contributions in the State;</text> </level> <level label="2"> <text>has charitable contributions solicited on its behalf in the State; or</text> </level> <level label="3"> <text>solicits charitable contributions outside of the State, if the charitable organization is in the State.</text> </level> </level> <level label="b"> <text>A separate registration statement and a registration letter is necessary before any of the following charitable organizations can solicit:</text> <level label="1"> <text>a federated fund-raising organization consisting of independent charitable organizations, including a united fund and a community chest, that:</text> <level label="i"> <text>have joined to solicit charitable contributions and distribute them among themselves; but</text> </level> <level label="ii"> <text>keep their own operating authority and control; or</text> </level> </level> <level label="2"> <text>an independent charitable organization, including one that is a member of a federated fund-raising organization, unless it is specifically exempted or it does not solicit charitable contributions other than as a member of a federated fund-raising organization.</text> </level> </level> <level label="c"> <level label="1"> <text>A parent organization shall submit a consolidated registration statement for the affiliates, branches, or chapters in the State that it coordinates, controls, or supervises.</text> </level> <level label="2"> <text>An affiliate, branch, or chapter of a charitable organization shall:</text> <level label="i"> <text>report information needed for a consolidated registration statement to its parent organization;</text> </level> <level label="ii"> <text>submit a separate registration statement; and</text> </level> <level label="iii"> <text>receive a registration letter from the Secretary of State prior to soliciting.</text> </level> </level> <level label="3"> <text>For purposes of this subsection, an independent member agency of a federated fund-raising organization is not an affiliate, branch, or chapter.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-402" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="4" subtitle_name="Charitable Organizations"> <level label="a"> <text>A registration statement shall be on the form that the Secretary of State provides.</text> </level> <level label="b"> <text>Except as provided in subsection (c) of this section, the registration statement shall contain or be accompanied by:</text> <level label="1"> <text>the name and address of the charitable organization and of any affiliate, branch, or chapter in the State;</text> </level> <level label="2"> <text>the name and address of:</text> <level label="i"> <text>each officer, including each principal salaried executive staff officer, and each other person with final responsibility for the custody and final distribution of the charitable contributions made to the charitable organization; or</text> </level> <level label="ii"> <text>each person who has custody of the financial records of the charitable organization if the charitable organization does not have a local office in the State;</text> </level> </level> <level label="3"> <text>a statement of:</text> <level label="i"> <text>the purposes for which the charitable organization was organized;</text> </level> <level label="ii"> <text>the purposes for which charitable contributions will be used; and</text> </level> <level label="iii"> <text>whether the charitable organization intends to solicit directly or to have a professional solicitor or fund–raising counsel solicit charitable contributions on its behalf;</text> </level> </level> <level label="4"> <text>a copy of the articles of incorporation or other governing instrument of the charitable organization;</text> </level> <level label="5"> <text>a copy of a letter from the Internal Revenue Service, or other evidence, showing the tax–exempt status of the charitable organization;</text> </level> <level label="6"> <level label="i"> <text>a copy of federal Form 990 that the charitable organization submits to the Internal Revenue Service; or</text> </level> <level label="ii"> <text>information that the charitable organization states on a form that the Secretary of State provides;</text> </level> </level> <level label="7"> <level label="i"> <text>an audit by an independent certified public accountant if the gross income from charitable contributions in the most recently completed fiscal year is at least $1,000,000; or</text> </level> <level label="ii"> <text>a review by an independent certified public accountant if the gross income from charitable contributions in the most recently completed fiscal year is at least $400,000 but less than $1,000,000;</text> </level> </level> <level label="8"> <text>an affidavit signed by the chairman, president, or other principal officer attesting to the truth of the registration statement and each supporting document;</text> </level> <level label="9"> <level label="i"> <text>a certification that all taxes due from the applicant to the State or to Baltimore City or a county of the State for the preceding fiscal year have been paid, and all taxes the applicant was required to collect and pay over to the State or to Baltimore City or a county of the State for the preceding fiscal year have been collected and paid over; or</text> </level> <level label="ii"> <text>a certification that the taxes due from the applicant to the State or to Baltimore City or a county are under dispute and the dispute has not been finally resolved; and</text> </level> </level> <level label="10"> <text>any other information that the Secretary of State requires by regulation.</text> </level> </level> <level label="c"> <text>The Secretary of State may accept other documentation in place of any item required under subsection (b) of this section, including, in place of the audit or review required by subsection (b)(7) of this section, supporting documents indicating, and an affidavit attesting, that:</text> <level label="1"> <text>the charitable organization:</text> <level label="i"> <text>primarily solicits in–kind contributions;</text> </level> <level label="ii"> <text>receives donations of property, including household goods, furniture, appliances, and clothing, that are intended to be redistributed to individuals residing in the State without charge;</text> </level> <level label="iii"> <text>does not employ a professional solicitor or fund–raising counsel;</text> </level> <level label="iv"> <text>used Generally Accepted Accounting Principles to determine the value of property received as charitable contributions during the immediately preceding fiscal year;</text> </level> <level label="v"> <text>has cash receipts from charitable contributions not exceeding $400,000 and amounting to 20% or less of the charitable organization’s gross income during the immediately preceding fiscal year that are used for program services or management and general expenses of the charitable organization, as set forth under COMAR 01.02.04.04.A and C;</text> </level> <level label="vi"> <text>is current and up to date in all registration and reporting requirements under this title;</text> </level> <level label="vii"> <text>is in good standing with the State Department of Assessments and Taxation, if applicable; and</text> </level> <level label="viii"> <text>has tax–exempt status under § 501(c)(3) of the Internal Revenue Code;</text> </level> </level> <level label="2"> <text>the charitable contributions of property are:</text> <level label="i"> <text>directly related to the purposes for which the charitable organization was organized; and</text> </level> <level label="ii"> <text>will be used in conducting the charitable organization’s programs; and</text> </level> </level> <level label="3"> <text>the governing body of the charitable organization:</text> <level label="i"> <text>is composed of at least three independent and unrelated directors; and</text> </level> <level label="ii"> <text>completed an onboarding and training program during the immediately preceding fiscal year, provided internally or externally, that covered:</text> <level label="1"> <text>the charitable organization’s mission;</text> </level> <level label="2"> <text>the policies, procedures, and operations of the charitable organization; and</text> </level> <level label="3"> <text>the duties and responsibilities of directors and officers as fiduciaries of the charitable contributions that the charitable organization collects and spends.</text> </level> </level> </level> </level> <level label="d"> <text>The Secretary of State may require an audit or review if the amount of gross income is less than $1,000,000.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-403" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="4" subtitle_name="Charitable Organizations"> <text>The chairman, president, or other principal officer of a charitable organization is personally responsible for the timely submission of the registration statement.</text> </section> <section article="gbr" article_name="Business Regulation" number="6-404" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="4" subtitle_name="Charitable Organizations"> <level label="a"> <text>If the Secretary of State finds that an applicant for registration has complied with this title and the regulations adopted under it, the Secretary of State shall approve the application.</text> </level> <level label="b"> <level label="1"> <text>If the Secretary of State finds that an applicant for registration has not complied with this title and the regulations adopted under it applicable to registration, the Secretary of State:</text> <level label="i"> <text>shall notify the applicant of the reasons the applicant is not in compliance; and</text> </level> <level label="ii"> <text>for each month or part of a month that the applicant is not in compliance, may assess a fee of $25 30 days after a second notice is sent, by regular mail, to the applicant at the address on file with the Secretary of State.</text> </level> </level> <level label="2"> <text>If the Secretary of State fails to notify the applicant of a noncompliant application within 10 business days as required by paragraph (1) of this subsection, the applicant shall be deemed registered.</text> </level> </level> <level label="c"> <level label="1"> <text>An applicant for registration who receives notice of a noncompliant application under subsection (b) of this section may request a hearing with the Secretary of State within 7 business days after receiving the notice.</text> </level> <level label="2"> <text>The Secretary of State shall:</text> <level label="i"> <text>hold a hearing within 7 business days after a request for a hearing from an applicant; and</text> </level> <level label="ii"> <text>make a final decision within 3 business days after the hearing.</text> </level> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-405" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="4" subtitle_name="Charitable Organizations"> <level label="a"> <text>Except for parent-teacher organizations and youth sports organizations soliciting charitable contributions for programs for minors, a person exempt under § 6-102(c)(1)(ii)1 or 4 of this title shall submit annually a fund-raising notice to the Secretary of State on the form that the Secretary requires.</text> </level> <level label="b"> <text>A person exempt under § 6-102(c)(1)(ii)2 of this title shall submit an IRS Form 990 to the Secretary of State if required to file one with the Internal Revenue Service.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-406" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="4" subtitle_name="Charitable Organizations"> <level label="a"> <level label="1"> <text>Unless exempted from registration under § 6-413 of this subtitle, a person may not solicit the public as a charitable organization prior to registration.</text> </level> <level label="2"> <text>The Circuit Court of Anne Arundel County or other court of competent jurisdiction may restrain or enjoin a person from soliciting in violation of paragraph (1) of this subsection.</text> </level> </level> <level label="b"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, the Secretary of State has the burden of proof in any court proceeding:</text> <level label="i"> <text>to restrain or enjoin a charitable organization from soliciting the public; or</text> </level> <level label="ii"> <text>based on an appeal by a charitable organization of a final decision of the Secretary of State under § 6-404(c) of this subtitle.</text> </level> </level> <level label="2"> <text>A charitable organization claiming to be exempt from the requirements of this title has the burden of production of evidence on that issue.</text> </level> </level> <level label="c"> <text>The Circuit Court for Anne Arundel County or other court of competent jurisdiction may order a charitable organization to stop soliciting the public if the charitable organization:</text> <level label="1"> <text>is required to be registered but has not applied to be registered; or</text> </level> <level label="2"> <text>has otherwise violated the Maryland Charitable Solicitations Act.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-407" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="4" subtitle_name="Charitable Organizations"> <level label="a"> <text>A charitable organization that collects less than $25,000 in charitable contributions from the public in a year need not pay an annual fee, except that, if the charitable organization uses a professional solicitor, it shall pay an annual fee of $50.</text> </level> <level label="b"> <level label="1"> <text>Each charitable organization that submits a separate registration statement and collects at least $25,000 in charitable contributions from the public in a year shall pay an annual fee based on the charitable contributions collected.</text> </level> <level label="2"> <text>The annual fee shall be:</text> <level label="i"> <text>$50, if charitable contributions from the public are at least $25,000 but less than $50,001;</text> </level> <level label="ii"> <text>$75, if charitable contributions from the public are at least $50,001 but less than $75,001;</text> </level> <level label="iii"> <text>$100, if charitable contributions from the public are at least $75,001 but less than $100,001;</text> </level> <level label="iv"> <text>$200, if charitable contributions from the public are at least $100,001 but less than $500,001; and</text> </level> <level label="v"> <text>$300, if charitable contributions from the public are at least $500,001.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>A charitable organization failing to file an annual report either by the end of the 6–month period after the end of the charitable organization’s fiscal year or within any period of extension granted shall pay, in addition to the annual fee, $25 for each month or part thereof after the date on which the annual report was due to be filed or after the period of extension granted for such filing.</text> </level> <level label="2"> <text>The late fee shall be assessed 60 days after:</text> <level label="i"> <text>the end of the 6th month after the end of the fiscal year; or</text> </level> <level label="ii"> <text>the period of extension.</text> </level> </level> <level label="3"> <text>Failure to remit an assessed late fee is a violation of this title.</text> </level> <level label="4"> <text>The Secretary of State may suspend or waive late fees in accordance with:</text> <level label="i"> <text>regulations adopted under subsection (f) of this section; or</text> </level> <level label="ii"> <text>a settlement agreement made under § 6–205(b) and (c) of this title.</text> </level> </level> </level> <level label="d"> <text>The following revenues shall be distributed to the Charitable Enforcement Fund under Subtitle 2A of this title, to be used only to support the actions of the Secretary of State and the Attorney General in carrying out the duties of the Secretary of State and the Attorney General under this title and Title 6.5 of this article:</text> <level label="1"> <text>$100 of the annual fee paid by each charitable organization under subsection (b)(2)(v) of this section; and</text> </level> <level label="2"> <text>the late fees collected under subsection (c) of this section.</text> </level> </level> <level label="e"> <text>A late fee assessed under this section may not be considered a delinquent account or debt requiring referral to the Central Collection Unit for collection purposes under § 3–302 of the State Finance and Procurement Article.</text> </level> <level label="f"> <text>The Secretary of State may adopt regulations regarding the suspension or waiver of late fees for charitable organizations that fail to file an annual report under subsection (c) of this section.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-408" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="4" subtitle_name="Charitable Organizations"> <level label="a"> <text>A charitable organization that solicits or intends to solicit charitable contributions after it submits a registration statement to the Secretary of State shall submit an annual report in accordance with this section.</text> </level> <level label="b"> <text>A charitable organization shall submit an annual report to the Secretary of State:</text> <level label="1"> <text>within 6 months after the end of the charitable organization’s fiscal year; or</text> </level> <level label="2"> <text>by any later date that the Secretary of State sets.</text> </level> </level> <level label="c"> <text>The annual report shall contain:</text> <level label="1"> <text>any change to the registration statement and to a previous annual report;</text> </level> <level label="2"> <text>the financial information and any supporting audit or review that the Secretary of State requires; and</text> </level> <level label="3"> <text>an affidavit signed by the chairman, president, or other principal officer attesting to the truth of the annual report and all supporting documents.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-409" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="4" subtitle_name="Charitable Organizations"> <text>The chairman, president, or other principal officer of a charitable organization is personally responsible for the timely submission of the annual report.</text> </section> <section article="gbr" article_name="Business Regulation" number="6-410" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="4" subtitle_name="Charitable Organizations"> <level label="a"> <text>Within 30 days after receiving a request, a charitable organization shall mail a current financial statement at no charge to the person who requested it.</text> </level> <level label="b"> <text>The financial statement shall contain:</text> <level label="1"> <text>the name, address, and telephone number of the charitable organization;</text> </level> <level label="2"> <level label="i"> <text>the amount of total revenue, the amount of total revenue received from charitable contributions, and the amount and percentage of total revenue used by the charitable organization for its management and general expenses, fund-raising expenses, and program service expenses during the preceding fiscal year; or</text> </level> <level label="ii"> <text>if the charitable organization is newly organized, the estimated percentage of charitable contributions being sought that will be used for its management and general expenses, fund-raising expenses, and program service expenses; and</text> </level> </level> <level label="3"> <text>if the charitable organization is registered with the Secretary of State, a declaration that the charitable organization is registered, but that registration is not and does not imply endorsement of any charitable solicitation.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-411" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="4" subtitle_name="Charitable Organizations"> <level label="a"> <text>This section does not apply to:</text> <level label="1"> <text>a charitable solicitation by an accredited school, college, or university to its students, former students, parents of students or former students, board members, or staff; or</text> </level> <level label="2"> <text>a formal grant application prepared for and submitted to a specific corporation or foundation.</text> </level> </level> <level label="b"> <level label="1"> <text>A charitable solicitation that is a specific written request to the public for a charitable contribution shall contain a disclosure statement.</text> </level> <level label="2"> <text>A written receipt for a charitable contribution shall contain a disclosure statement.</text> </level> </level> <level label="c"> <text>The disclosure statement shall be displayed conspicuously on a charitable solicitation and on a receipt for a charitable contribution.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-412" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="4" subtitle_name="Charitable Organizations"> <level label="a"> <text>A charitable organization shall keep accurate financial records about its activities in the State in a form that will enable it to provide the information required under this title.</text> </level> <level label="b"> <text>On request, a charitable organization shall make its financial records available to the Secretary of State for inspection.</text> </level> <level label="c"> <text>A charitable organization shall keep its financial records for at least 3 years after the end of the period of registration to which they relate.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-413" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="4" subtitle_name="Charitable Organizations"> <text>The Secretary of State may exempt from the requirement of a registration statement or annual report a charitable organization that:</text> <level label="1"> <text>is organized under the laws of another state that has a statute substantially similar to this title;</text> </level> <level label="2"> <text>has been exempted from the submission of a registration statement by that other state;</text> </level> <level label="3"> <text>has its principal place of business outside this State; and</text> </level> <level label="4"> <text>gets its money principally from sources outside this State.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-414" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="4" subtitle_name="Charitable Organizations"> <text>A charitable organization may honor a credit card that the board of directors or executive officer of the charitable organization accepts for payment of charitable contributions.</text> </section> <section article="gbr" article_name="Business Regulation" number="6-415" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="4" subtitle_name="Charitable Organizations"> <text>An individual who is a director, officer, partner, or trustee of a charitable organization may not vote to authorize, approve, or ratify a contract or transaction related to charitable solicitations if the individual has a material financial interest or a material conflicting interest in the contract or transaction.</text> </section> <section article="gbr" article_name="Business Regulation" number="6-416" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="4" subtitle_name="Charitable Organizations"> <level label="a"> <text>A charitable organization may solicit charitable contributions or spend them only for a charitable purpose that is stated in its registration statement and most recent annual report.</text> </level> <level label="b"> <text>On the request of a donor, a charitable organization shall provide the donor with a statement of the programs and uses for which the funds are requested.</text> </level> <level label="c"> <text>A charitable organization shall establish and exercise controls over fund-raising activities conducted for its benefit, by itself or by a professional solicitor or fund-raising counsel.</text> </level> <level label="d"> <text>A charitable organization may not misrepresent the purpose for which funds are solicited.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-417" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="4" subtitle_name="Charitable Organizations"> <text>A charitable organization that intends to end soliciting shall submit to the Secretary of State:</text> <level label="1"> <text>a statement of its intent; and</text> </level> <level label="2"> <text>a final annual report within 6 months after the end of its fiscal year.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-418" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="4" subtitle_name="Charitable Organizations"> <level label="a"> <text>The Secretary of State may cancel the registration of a charitable organization if:</text> <level label="1"> <text>the organization failed to submit:</text> <level label="i"> <text>a statement of intent and final annual report under § 6–417 of this subtitle within 3 years after the date the statement of intent and final annual report were due; or</text> </level> <level label="ii"> <text>any annual report or updates required under § 6–408 of this subtitle for a 3–year period; and</text> </level> </level> <level label="2"> <text>the Secretary of State sends a notice of cancellation to the last known address and e–mail address of the organization.</text> </level> </level> <level label="b"> <text>A charitable organization may request that the Secretary of State reinstate a registration canceled under subsection (a) of this section if the organization:</text> <level label="1"> <text>submits to the Secretary of State any outstanding or missing annual reports, supporting materials, and annual fees required under this title;</text> </level> <level label="2"> <level label="i"> <text>remits all unpaid late fees; or</text> </level> <level label="ii"> <text>had late fees suspended or waived in accordance with § 6–407(c) of this subtitle;</text> </level> </level> <level label="3"> <text>is in good standing with the State Department of Assessments and Taxation, if applicable;</text> </level> <level label="4"> <text>has a current tax–exempt status under § 501(c)(3) of the Internal Revenue Code, if applicable; and</text> </level> <level label="5"> <text>provides any other information that the Secretary of State requires.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-501" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="5" subtitle_name="Charitable Solicitations"> <level label="a"> <text>An agreement between a charitable organization and a fund–raising counsel or professional solicitor and any subcontract or other contract in furtherance of such an agreement shall be in writing.</text> </level> <level label="b"> <text>A fund–raising counsel or professional solicitor shall submit to the Secretary of State a copy of all agreements under subsection (a) of this section on or before the earlier of:</text> <level label="1"> <text>the tenth day after the agreement is made; or</text> </level> <level label="2"> <text>the start of a charitable solicitation.</text> </level> </level> <level label="c"> <text>The text that a professional solicitor or associate solicitor uses in a charitable solicitation shall be attached to the agreement and shall include:</text> <level label="1"> <text>the name of the charitable organization for which the charitable solicitation is made;</text> </level> <level label="2"> <text>the specific charitable purpose that is to be advanced with charitable contributions as shown in the registration statement; and</text> </level> <level label="3"> <text>a statement that the person who solicits charitable contributions:</text> <level label="i"> <text>is a paid fund–raiser; and</text> </level> <level label="ii"> <text>on request, will provide a copy of the charitable organization’s financial statement.</text> </level> </level> </level> <level label="d"> <text>An agreement between a professional solicitor, fund–raising counsel, or charitable organization and a person engaged to receive or hold contributions resulting from a professional solicitor or fund–raising counsel agreement shall be attached to the professional solicitor or fund–raising counsel agreement filed with the Secretary of State.</text> </level> <level label="e"> <text>An agreement between a charitable organization and a fund–raising counsel or professional solicitor may not contain a provision that states:</text> <level label="1"> <text>that the charitable organization may not use contributions from a solicitation for its charitable purposes until some or all fund–raising expenses have been paid; or</text> </level> <level label="2"> <text>that the professional solicitor or fund–raising counsel may engage in a direct mail or other solicitation in the charity’s name for the purpose of paying or offsetting preexisting fund–raising expenses.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-502" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="5" subtitle_name="Charitable Solicitations"> <level label="a"> <level label="1"> <text>A professional solicitor shall submit a fund-raising notice to the Secretary of State before starting a public solicitation.</text> </level> <level label="2"> <text>The notice shall be submitted on the form that the Secretary of State provides.</text> </level> </level> <level label="b"> <text>The notice shall contain the information that the Secretary of State requires, including each fund-raising method to be used and the dates set for each fund-raising drive, event, or campaign of the charitable solicitation.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-503" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="5" subtitle_name="Charitable Solicitations"> <level label="a"> <text>This section does not apply to a raffle or other game of chance that a charitable organization holds in a county under the laws applicable to the county.</text> </level> <level label="b"> <level label="1"> <text>If a person, in connection with a written charitable solicitation, offers a contest, sweepstakes, or other promotion, the person shall disclose in writing to each offeree:</text> <level label="i"> <text>the manufacturer’s suggested retail price or comparable retail price of each prize offered;</text> </level> <level label="ii"> <text>the conditions to be met to receive a prize; and</text> </level> <level label="iii"> <text>that to receive the prize offered in the promotion the offeree may not be required to:</text> <level label="1"> <text>buy goods or services;</text> </level> <level label="2"> <text>pay money; or</text> </level> <level label="3"> <text>submit to a promotion.</text> </level> </level> </level> <level label="2"> <text>If the contest, sweepstakes, or other promotion involves awarding prizes by chance, the person shall also disclose in writing to each offeree:</text> <level label="i"> <text>the exact number of prizes offered in each category;</text> </level> <level label="ii"> <text>how to get a list of winners, if a prize with a retail price or monetary value of more than $100 is offered;</text> </level> <level label="iii"> <text>whether each prize offered will be awarded;</text> </level> <level label="iv"> <text>the date when winners will be determined; and</text> </level> <level label="v"> <level label="1"> <text>the odds of winning each prize, if they can be calculated in advance; or</text> </level> <level label="2"> <text>that the odds of winning will be determined by the number of entries, if the odds cannot be calculated in advance.</text> </level> </level> </level> </level> <level label="c"> <text>Each disclosure required under this section shall appear on the first page of the prize notification document.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-504" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="5" subtitle_name="Charitable Solicitations"> <text>Within 30 days after receiving a charitable contribution as a result of a charitable solicitation by telephone, a professional solicitor shall send the contributor a written receipt that contains:</text> <level label="1"> <text>the name and address of the professional solicitor;</text> </level> <level label="2"> <text>a disclosure statement; and</text> </level> <level label="3"> <text>other information that the Secretary of State requires.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-505" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="5" subtitle_name="Charitable Solicitations"> <level label="a"> <text>A professional solicitor shall deposit each charitable contribution that the professional solicitor receives into a bank account established by the charitable organization.</text> </level> <level label="b"> <text>A professional solicitor may not be authorized to withdraw money from the bank account of the charitable organization.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-506" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="5" subtitle_name="Charitable Solicitations"> <level label="a"> <text>Within 3 months after the end of each fund-raising drive, campaign, or event, a professional solicitor shall submit to the Secretary of State, on the form that the Secretary of State provides, an accounting under oath of all money received and disbursed on a gross basis.</text> </level> <level label="b"> <text>The professional solicitor and an authorized official of the charitable organization for which the professional solicitor acts shall sign the accounting and certify that it is true to the best of their knowledge.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-507" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="5" subtitle_name="Charitable Solicitations"> <level label="a"> <text>For each fund–raising drive, campaign, or event, a professional solicitor shall keep records that show:</text> <level label="1"> <text>all compensation received for services rendered and expenses incurred;</text> </level> <level label="2"> <text>the name and address of each associate solicitor;</text> </level> <level label="3"> <text>the amount of compensation paid to each associate solicitor and the dates when payments were made;</text> </level> <level label="4"> <text>the name, address, and telephone number of each person solicited who made a pledge or charitable contribution;</text> </level> <level label="5"> <text>the date of each charitable solicitation;</text> </level> <level label="6"> <text>each amount pledged or contributed; and</text> </level> <level label="7"> <text>if a refund was requested, the date the refund was made.</text> </level> </level> <level label="b"> <text>The professional solicitor shall keep the records for at least 3 years after the end of the fund–raising drive, campaign, or event.</text> </level> <level label="c"> <level label="1"> <text>A professional solicitor shall make the records available to the Secretary of State for inspection and copying upon reasonable notice and at any hearing that the Secretary of State holds.</text> </level> <level label="2"> <text>If the records of an organization are maintained outside the State, upon reasonable notice, the organization shall make the records or certified copies of the records available at the Office of the Secretary of State.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-508" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="5" subtitle_name="Charitable Solicitations"> <text>Charitable organizations and charitable representatives and the directors, officers, partners, and trustees of charitable organizations and charitable representatives are fiduciaries as to the charitable contributions they collect or spend.</text> </section> <section article="gbr" article_name="Business Regulation" number="6-509" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="5" subtitle_name="Charitable Solicitations"> <level label="a"> <text>The only persons liable under this section are:</text> <level label="1"> <text>charitable organizations;</text> </level> <level label="2"> <text>charitable representatives; and</text> </level> <level label="3"> <text>officers, directors, partners, or trustees of charitable organizations or charitable representatives.</text> </level> </level> <level label="b"> <text>Except as provided in subsection (d) of this section, a person who willfully fails to comply with a requirement of this title as to a charitable contribution made because of a charitable solicitation is liable to the donor of the charitable contribution for:</text> <level label="1"> <text>actual damages that the donor sustains because of the failure;</text> </level> <level label="2"> <text>punitive damages that the court allows, not exceeding 3 times the actual damages; and</text> </level> <level label="3"> <text>reasonable attorney’s fees and costs of the action, if damages are awarded.</text> </level> </level> <level label="c"> <text>Except as provided in subsection (d) of this section, a person who is grossly negligent in failing to comply with a requirement of this title as to a charitable contribution made because of a charitable solicitation is liable to the donor of the charitable contribution for:</text> <level label="1"> <text>actual damages that the donor sustains because of the failure; and</text> </level> <level label="2"> <text>reasonable attorney’s fees and costs of the action, if damages are awarded.</text> </level> </level> <level label="d"> <text>A person is not liable under this section if the person establishes by a preponderance of the evidence that, at the time of the failure to comply with a requirement under this title, the person followed reasonable procedures to comply.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-5A-01" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="5A" subtitle_name="Public Safety Solicitors"> <text>A person is prohibited from acting as a public safety solicitor unless the person has applied to register with the Secretary of State.</text> </section> <section article="gbr" article_name="Business Regulation" number="6-5A-02" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="5A" subtitle_name="Public Safety Solicitors"> <text>An applicant for registration as a public safety solicitor shall:</text> <level label="1"> <text>submit to the Secretary of State an application under oath on the form the Secretary of State provides for each public safety organization on whose behalf the applicant is soliciting in the State;</text> </level> <level label="2"> <text>pay to the Secretary of State an application fee of $100 for registration as a public safety solicitor;</text> </level> <level label="3"> <level label="i"> <text>certify that all taxes due from the applicant to the State or to Baltimore City or a county of the State during the preceding fiscal year have been paid, and all taxes the applicant was required to collect and pay over to the State or to Baltimore City or a county of the State during the preceding fiscal year have been collected and paid over; or</text> </level> <level label="ii"> <text>certify that the taxes due from the applicant to the State or to Baltimore City or a county are under dispute and the dispute has not been finally resolved; and</text> </level> </level> <level label="4"> <text>provide any other nonproprietary information that the Secretary of State requires by regulation.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-5A-03" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="5A" subtitle_name="Public Safety Solicitors"> <level label="a"> <level label="1"> <text>Except as provided in subsections (c) and (f) of this section, on applying for registration as a public safety solicitor, an applicant shall execute and submit to the Secretary of State a bond in the sum of $25,000, with surety that the Secretary of State approves.</text> </level> <level label="2"> <text>The bond shall run to the State for the use of the State and each person who may have a cause of action against the applicant for loss resulting from malfeasance, nonfeasance, or misfeasance in the applicant’s public safety solicitation.</text> </level> </level> <level label="b"> <text>An applicant for registration as a public safety solicitor shall submit a consolidated bond for all of the officers, agents, members, subcontractors, and employees of the public safety solicitor.</text> </level> <level label="c"> <text>An applicant for registration as a public safety solicitor that submits a $25,000 irrevocable letter of credit to the Secretary of State is not required to submit a surety bond under subsection (a) of this section.</text> </level> <level label="d"> <text>The Secretary of State may return a bond or irrevocable letter of credit filed under this section only if:</text> <level label="1"> <text>3 years have passed since the registration period to which the bond or letter applies, and there is no pending claim against the bond or letter; or</text> </level> <level label="2"> <text>the registration period to which the bond or letter applies expires and it appears to the satisfaction of the Secretary of State that the person is not in violation of this subtitle.</text> </level> </level> <level label="e"> <text>The Secretary of State shall include with an application for registration as a public safety solicitor a notice that a person may apply for return of a bond or irrevocable letter of credit after the registration period to which the bond or letter applies.</text> </level> <level label="f"> <text>A public safety solicitor with a current registration shall not be required to execute and submit to the Secretary of State an additional bond or irrevocable letter of credit for each public safety organization on whose behalf public safety contributions will be solicited, provided that a separate application is submitted for each organization.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-5A-04" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="5A" subtitle_name="Public Safety Solicitors"> <level label="a"> <text>If the Secretary of State finds that an applicant for registration has complied with this title and the regulations adopted under it, the Secretary of State shall approve the application.</text> </level> <level label="b"> <text>If the Secretary of State finds that an applicant for registration has not complied with this title and the regulations adopted under it applicable to registration, the Secretary of State shall notify the applicant of the reasons the applicant is not in compliance.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-5A-05" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="5A" subtitle_name="Public Safety Solicitors"> <text>Each registration expires on the first anniversary of its approval date.</text> </section> <section article="gbr" article_name="Business Regulation" number="6-5A-06" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="5A" subtitle_name="Public Safety Solicitors"> <text>A public safety solicitor shall include in all written solicitations and receipts for public safety contributions:</text> <level label="1"> <text>a toll free telephone number of the public safety solicitor within the local area code in which the public safety contribution is solicited for individuals or businesses solicited to obtain verification of authenticity or make complaints;</text> </level> <level label="2"> <text>a statement that, for the cost of copying and postage, information submitted under this title is available from the Secretary of State; and</text> </level> <level label="3"> <text>the address and the telephone number of the Secretary of State.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-5A-07" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="5A" subtitle_name="Public Safety Solicitors"> <level label="a"> <text>A public safety solicitor may not solicit public safety contributions unless the script of an oral solicitation and a copy of a written solicitation:</text> <level label="1"> <text>is approved by the public safety organization on whose behalf the public safety contribution is solicited; and</text> </level> <level label="2"> <text>includes:</text> <level label="i"> <text>the specific purpose that is to be advanced with public safety contributions; and</text> </level> <level label="ii"> <text>a statement that the person is soliciting on behalf of a public safety organization.</text> </level> </level> </level> <level label="b"> <text>A copy of the approved script of an oral solicitation and a copy of a written solicitation shall be made available to the Secretary of State upon request.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-5A-08" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="5A" subtitle_name="Public Safety Solicitors"> <text>A public safety solicitor may not:</text> <level label="1"> <text>falsely state, imply, or mislead, directly or indirectly, the person solicited for a public safety contribution that the public safety solicitor is a fire fighting, ambulance, rescue, police, fraternal, or other law enforcement employee or member;</text> </level> <level label="2"> <text>send an individual to personally pick up a public safety contribution from a private residence, business, or any other location, unless the individual presents at the time of the solicitation, collection, or attempt to collect:</text> <level label="i"> <text>photo identification; and</text> </level> <level label="ii"> <text>correspondence from the public safety organization authorizing the public safety solicitor to solicit on behalf of the public safety organization for a stated period of time;</text> </level> </level> <level label="3"> <text>solicit in the State using an alias, fictitious, or false name other than the full name of the public safety organization on whose behalf the public safety contribution is solicited as stated in the application for registration as a public safety solicitor; or</text> </level> <level label="4"> <text>promise, directly or indirectly, or imply that the individual or business being solicited will receive any additional or different law enforcement services or treatment by a fire fighting, ambulance, rescue, police, fraternal, or other law enforcement organization or employee as a result of a pledge or refusal to make a public safety contribution.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-5A-09" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="5A" subtitle_name="Public Safety Solicitors"> <level label="a"> <text>An applicant for registration as a public safety solicitor or a registered public safety solicitor may not willfully or in a grossly negligent way:</text> <level label="1"> <text>submit to the Secretary of State a registration statement or other information that is materially false; or</text> </level> <level label="2"> <text>commit a violation of this subtitle.</text> </level> </level> <level label="b"> <text>A principal owner or employee of the public safety solicitor may not willfully or in a grossly negligent way commit or cause to commit a violation of this subtitle.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-5A-10" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="5A" subtitle_name="Public Safety Solicitors"> <level label="a"> <text>A person that engages in soliciting public safety contributions without prior application for registration as a public safety solicitor is guilty of a misdemeanor and, on conviction, is subject to a fine not exceeding 10 times the value of the total amount of funds improperly solicited or imprisonment not exceeding 1 year or both.</text> </level> <level label="b"> <text>A person convicted of a violation of this section may:</text> <level label="1"> <text>be prohibited from acting as a public safety solicitor for a period up to 10 years beginning on the date of the conviction; and</text> </level> <level label="2"> <text>be ordered to refund all improperly solicited public safety contributions to the donors who made such contributions.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-5A-11" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="5A" subtitle_name="Public Safety Solicitors"> <level label="a"> <text>A person who commits a willful violation of this subtitle:</text> <level label="1"> <text>is guilty of a misdemeanor;</text> </level> <level label="2"> <text>is subject, on conviction, to a fine not exceeding three times the value of the total gross amount of funds solicited by the public safety solicitor or imprisonment not exceeding 1 year or both; and</text> </level> <level label="3"> <text>shall forfeit to the Secretary of State the bond required in § 6-5A-03 of this subtitle.</text> </level> </level> <level label="b"> <text>A person who commits a grossly negligent violation of this subtitle:</text> <level label="1"> <text>is guilty of a misdemeanor;</text> </level> <level label="2"> <text>is subject, on conviction, to a fine not exceeding the gross amount of funds solicited by the public safety solicitor or liability for restitution that the court determines or both; and</text> </level> <level label="3"> <text>shall forfeit to the Secretary of State the bond required in § 6-5A-03 of this subtitle.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-601" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties"> <level label="a"> <text>A person may not act as an associate solicitor, professional solicitor, or fund-raising counsel unless the person has applied to register appropriately with the Secretary of State.</text> </level> <level label="b"> <text>An associate solicitor may not solicit money from the public for a professional solicitor unless the professional solicitor has applied to register with the Secretary of State and can show evidence of the application.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-602" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties"> <text>A professional solicitor may not employ, pay, agree to pay, or otherwise use the services of a person to make a charitable solicitation unless the person:</text> <level label="1"> <text>is registered with the Secretary of State as an associate solicitor; or</text> </level> <level label="2"> <text>becomes registered with the Secretary of State within 10 days after the person starts acting as an associate solicitor.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-603" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties"> <level label="a"> <text>A professional solicitor or fund-raising counsel may not make an agreement with a charitable organization unless the charitable organization has applied to register with the Secretary of State or is otherwise exempt.</text> </level> <level label="b"> <text>A charitable organization may not make an agreement with a professional solicitor or fund-raising counsel unless the professional solicitor or fund-raising counsel has applied to register with the Secretary of State or is otherwise exempt.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-604" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties"> <level label="a"> <text>A charitable representative or a charitable organization may not lead the public to believe that registration is an endorsement or approval by the State.</text> </level> <level label="b"> <text>Use of the following statement is allowed: “Registered with the Secretary of State of Maryland as required by law. Registration is not an endorsement of a public solicitation for contributions”.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-605" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties"> <text>A fund-raising counsel may not receive compensation from a charitable organization if the compensation depends wholly or partly on the number or value of charitable contributions that result from the effort of the fund-raising counsel.</text> </section> <section article="gbr" article_name="Business Regulation" number="6-606" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties"> <text>A person may not apply a charitable contribution in a way substantially inconsistent with the charitable solicitation.</text> </section> <section article="gbr" article_name="Business Regulation" number="6-607" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties"> <text>A person may not use false or materially misleading advertising or promotional material in connection with a charitable solicitation.</text> </section> <section article="gbr" article_name="Business Regulation" number="6-608" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties"> <level label="a"> <text>In connection with a charitable solicitation, a charitable organization or charitable representative may not commit an act or engage in a practice that by affirmative representation or by omission is misleading about anything important to, or likely to affect, another person’s decision to make a charitable contribution.</text> </level> <level label="b"> <text>An act or practice prohibited by this section is a violation of this section, whether or not a person has been misled, deceived, or damaged.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-609" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties"> <level label="a"> <text>Unless authorized by a charitable organization, a person may not:</text> <level label="1"> <text>represent that a charitable contribution is requested for the charitable organization; or</text> </level> <level label="2"> <text>use a name, symbol, emblem, device, service mark or printed matter that belongs to or is associated with the charitable organization to solicit charitable contributions.</text> </level> </level> <level label="b"> <text>In soliciting charitable contributions for a charitable organization, a person may not use a name, symbol, emblem, device, service mark, or printed matter so similar to that of another established charitable organization that the use might confuse or mislead the public.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-610" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties"> <text>A person may not falsely represent that:</text> <level label="1"> <text>the person on whose behalf a solicitation or sale is made is a charitable organization; or</text> </level> <level label="2"> <text>the proceeds of a solicitation or sale will be used for a charitable purpose.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-611" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties"> <level label="a"> <text>A person may not represent that another person sponsors, endorses, or approves of a charitable solicitation, the sale of goods or services for a charitable purpose, a charitable purpose, or a charitable organization without the consent of the other person.</text> </level> <level label="b"> <text>A member of the board of directors or trustee of a charitable organization or a person who volunteers to participate in a charitable solicitation is deemed to have consented to the use of the person’s name in the charitable solicitation.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-612" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties"> <text>A person may not continue to solicit charitable contributions for a charitable organization after the contract between the person and the charitable organization is canceled.</text> </section> <section article="gbr" article_name="Business Regulation" number="6-613" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties"> <level label="a"> <text>A charitable organization or a charitable representative may not willfully:</text> <level label="1"> <text>fail to submit to the Secretary of State when required a registration statement, annual report, or other information; or</text> </level> <level label="2"> <text>submit to the Secretary of State a registration statement, report, or other information that is materially false.</text> </level> </level> <level label="b"> <text>A director, officer, partner, or trustee of a charitable organization or charitable representative may not cause the charitable organization or charitable representative to violate this title willfully.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-614" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties"> <level label="a"> <text>A charitable organization or a charitable representative may not in a grossly negligent way:</text> <level label="1"> <text>fail to submit to the Secretary of State when required a registration statement, annual report, or other information; or</text> </level> <level label="2"> <text>submit to the Secretary of State a registration statement, report, or other information that is materially false.</text> </level> </level> <level label="b"> <text>A director, officer, partner, or trustee of a charitable organization or charitable representative may not cause the charitable organization or charitable representative to violate this title in a grossly negligent way.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-615" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties"> <text>A person may not act as a fund-raising counsel unless the person’s agreement with the charitable organization states:</text> <level label="1"> <text>the names and addresses of the parties;</text> </level> <level label="2"> <text>the services to be provided;</text> </level> <level label="3"> <text>the number of persons to be involved in providing the services;</text> </level> <level label="4"> <text>the time when the services are to be provided; and</text> </level> <level label="5"> <text>the method and formula for compensation.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-616" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties"> <text>A person may not act as a professional solicitor unless the person’s agreement with the charitable organization states:</text> <level label="1"> <text>the names and addresses of the parties;</text> </level> <level label="2"> <text>the minimum percentage of the gross receipts from charitable solicitations that will be used by the charitable organization exclusively to advance its charitable purposes;</text> </level> <level label="3"> <text>the text that the professional solicitor or associate solicitor will use in each charitable solicitation; and</text> </level> <level label="4"> <text>any other information that the Secretary of State requires by regulation.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-617" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties"> <text>A professional solicitor or associate solicitor may not solicit charitable contributions for or in the name of a charitable organization unless the professional solicitor or associate solicitor:</text> <level label="1"> <text>has written authorization that contains:</text> <level label="i"> <text>the consent of 2 officers of the charitable organization;</text> </level> <level label="ii"> <text>the signature of the professional solicitor; and</text> </level> <level label="iii"> <text>an express statement of the term of the authorization;</text> </level> </level> <level label="2"> <text>submits a copy of the authorization to the Secretary of State; and</text> </level> <level label="3"> <text>on request, shows a copy of the authorization and personal identification to a person who is solicited.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-618" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties"> <level label="a"> <text>This section does not apply to a raffle or other game of chance that a charitable organization holds in a county under the laws applicable to the county.</text> </level> <level label="b"> <text>As part of an advertising plan in connection with a charitable solicitation, a person may not notify another person that the other person has won a prize, has received an award, or has been chosen or is eligible to receive a thing of value if the other person is required to:</text> <level label="1"> <text>buy goods or services;</text> </level> <level label="2"> <text>pay money; or</text> </level> <level label="3"> <text>submit to a promotion.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-619" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties"> <level label="a"> <text>A person who commits a willful violation of this title or who causes a person to commit a willful violation of this title is guilty of a misdemeanor and, on conviction, is subject to a fine not exceeding $5,000 or imprisonment not exceeding 1 year or both.</text> </level> <level label="b"> <text>A person who commits a grossly negligent violation of this title or who causes a person to commit a grossly negligent violation of this title is guilty of a misdemeanor and, on conviction, is subject to a fine not exceeding $3,000 or liability for restitution that the court determines or both.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-620" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties"> <text>A person who places in an establishment or other location open to the public a vending machine, canister, or other device or container for the deposit of money that reflects the name of a charitable organization or a charitable purpose shall:</text> <level label="1"> <text>state on the device or container:</text> <level label="i"> <text>the address of the charitable organization named; and</text> </level> <level label="ii"> <text>the name and address of the business placing the device or container, if not the charitable organization; and</text> </level> </level> <level label="2"> <text>state on the device or container and to the person who grants permission for the placement of the device or container that a portion of the money deposited is retained by the business placing the device or container and that the remainder is given to a charitable organization or used for charitable purposes, if less than all of the money deposited is given to a charitable organization or used for charitable purposes.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="6-621" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties"> <text>A television or radio broadcasting station or a publisher or printer of a newspaper, magazine, Web site, or other form of advertising that broadcasts, publishes, or prints a charitable solicitation that violates this title is not liable for the violation, unless the station, publisher, or printer has knowledge that the charitable solicitation violates this title.</text> </section> <section article="gbr" article_name="Business Regulation" number="6-622" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties"> <text>A person may not knowingly, with the intent to retaliate, take any action harmful to any individual, including interference with the lawful employment or livelihood of the individual, because the individual provided to a law enforcement officer, the Secretary of State, or the Attorney General any truthful information relating to the commission or possible commission of any federal or State offense.</text> </section> <section article="gbr" article_name="Business Regulation" number="6-701" title_number="6" title_name="Charitable Organizations and Charitable Representatives" subtitle_number="7" subtitle_name="Short Title"> <text>This title is the Maryland Solicitations Act.</text> </section>