1| STATE OF OKLAHOMA |
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2| 1st Session of the 59th Legislature (2023) |
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3|HOUSE BILL 2268 By: Burns |
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4| |
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5| |
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6| AS INTRODUCED |
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7| An Act relating to charitable organizations; creating |
| disclosure requirements for solicitation materials; |
8| amending 18 O.S. 2021, which relates to registration; |
| modifying required information; amending 18 O.S. |
9| 2021, Section 552.14a, which relates to violations of |
| the Oklahoma Solicitation of Charitable Contributions |
10| Act; adding certain violation; updating references; |
| providing for codification; and providing an |
11| effective date. |
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12| |
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13| |
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14|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: |
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15| SECTION 1. NEW LAW A new section of law to be codified |
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16|in the Oklahoma Statutes as Section 552.24 of Title 18, unless there |
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17|is created a duplication in numbering, reads as follows: |
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18| Every charitable organization that has a gross revenue of One |
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19|Million Dollars ($1,000,000.00) or more and every professional |
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20|fundraiser that is required to be registered with the Office of the |
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21|Secretary of State pursuant to Sections 552.3 and 552.7 of Title 18 |
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22|of the Oklahoma Statutes shall disclose all of the following |
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23|information at the time of solicitation: |
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24| |
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Req. No. 7022 Page 1
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1| 1. The legal name of the charitable organization, any trade |
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2|names that the charitable organization uses, any other name the |
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3|organization may be identified or known as, or any distinctive names |
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4|the organization uses for purposes of solicitation of contributions, |
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5|as the name(s) appears on file with the Office of the Secretary of |
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6|State, on whose behalf the solicitation is being made; |
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7| 2. Upon request, the program(s) the funds solicited will be |
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8|used to support; |
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9| 3. Upon request, the approximate percentage of contributions |
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10|solicited in a fiscal year to remain in Oklahoma; |
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11| 4. Upon request, the process to obtain for free a copy of the |
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12|charitable organization's registration and financial information |
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13|from the Office of the Secretary of State; and |
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14| 5. On every written or printed solicitation, the following |
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15|disclosure statement verbatim: |
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16| "Registration on file with the Office of the Secretary of |
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17|State." |
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18| The disclosure statement shall be prominently displayed by use |
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19|of one or more of the following: underlining, a border, or bold |
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20|type. Where the solicitation consists of more than one piece, the |
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21|disclosure statement shall be displayed on a prominent part of the |
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22|solicitation materials. If the solicitation occurs on a website, |
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23|the disclosure statement must be prominently displayed on any |
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24|webpage that identifies a mailing address where contributions are to |
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Req. No. 7022 Page 2
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1|be sent, identifies a telephone number to call to process |
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2|contributions, or provides for online processing of contributions. |
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3| SECTION 2. AMENDATORY 18 O.S. 2021, Section 552.3, is |
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4|amended to read as follows: |
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5| Section 552.3 A. No charitable organization that is either |
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6|located within this state or that is soliciting contributions from |
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7|any person in this state, except those specifically exempt under |
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8|Section 552.4 of this title, shall solicit contributions until the |
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9|charitable organization shall have registered with the Office of the |
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10|Secretary of State and filed information, as required by the |
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11|Oklahoma Solicitation of Charitable Contributions Act, on forms |
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12|approved by that office. At the time of registration, each |
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13|charitable organization, except as otherwise provided in this |
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14|section, shall pay a fee of Sixty-five Dollars ($65.00). The first |
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15|Fifteen Dollars ($15.00) of the fee shall be deposited to the credit |
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16|of the General Revenue Fund of the State Treasury. Thirty-four |
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17|Dollars ($34.00) of the fee shall be deposited to the credit of the |
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18|Attorney General Charitable Solicitations Enforcement Revolving Fund |
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19|and the remaining Sixteen Dollars ($16.00) shall be deposited to the |
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20|credit of the Secretary of State Charitable Solicitations Revolving |
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21|Fund. Provided, a charitable organization whose contributions |
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22|during the previous registration period did not exceed Ten Thousand |
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23|Dollars ($10,000.00), or if this is the charitable organization's |
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24|first registration period and the anticipated contributions for the |
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Req. No. 7022 Page 3
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1|current registration period are not expected to exceed Ten Thousand |
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2|Dollars ($10,000.00), shall pay a fee of Fifteen Dollars ($15.00) of |
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3|which Ten Dollars ($10.00) shall be deposited to the credit of the |
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4|Attorney General Charitable Solicitations Enforcement Revolving Fund |
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5|and the remaining Five Dollars ($5.00) shall be deposited to the |
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6|credit of the Secretary of State Charitable Solicitations Revolving |
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7|Fund. Each charitable organization that is required to register |
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8|under this act shall register annually with the Secretary of State |
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9|by the date that the charitable organization files its Form 990 or |
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10|by the date, plus extensions, that it is required to file its Form |
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11|990, whichever occurs first. Registration shall not be deemed to |
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12|constitute an endorsement by the state or by the Secretary of State |
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13|of any charitable organization or the proposed uses of the funds |
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14|solicited. The information so filed shall be available to the |
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15|general public. The charitable organization shall provide the |
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16|following information on the required forms: |
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17| 1. The legal name of the charitable organization, any trade |
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18|names that the charitable organization uses, any other name the |
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19|organization may be identified or known as, and any distinctive |
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20|names the organization uses for purposes of solicitation of |
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21|contributions; |
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22| 2. The mailing address of the charitable organization, which |
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23|can be a P.O. box address; |
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24| 3. The name and mailing address of: |
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Req. No. 7022 Page 4
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1| a. each officer, director, trustee, and/or equivalent, |
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2| and |
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3| b. each salaried executive employee of the charitable |
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4| organization; |
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5| 4. The name and mailing address of: |
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6| a. each professional fundraiser or professional |
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7| solicitor that will have custody of the contributions, |
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8| and |
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9| b. each person associated with a professional |
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10| fundraiser, professional solicitor or charitable |
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11| organization that is directly responsible for the |
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12| payment and distribution of funds collected; |
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13| 5. The name and mailing address of each professional |
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14|fundraising counsel utilized by the charitable organization; |
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15| 6. For charitable organizations that register for the first |
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16|time, a statement of whether or not the charitable organization |
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17|believes contributions for the first year of registration will |
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18|exceed Ten Thousand Dollars ($10,000.00); |
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19| 7. The purposes for which the contributions solicited are to be |
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20|used; |
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21| 8. For charitable organizations that have a gross revenue of |
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22|One Million Dollars ($1,000,000.00) or more, the approximate |
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23|percentage of contributions solicited in a fiscal year to remain in |
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24|Oklahoma; |
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1| 9. For the initial registration of a newly formed charitable |
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2|organization, a copy of a letter from the Internal Revenue Service, |
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3|or other evidence, showing that such organization is exempt from |
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4|federal income taxation; or, for a charitable organization that has |
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5|not applied for federal income tax exemption with the Internal |
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6|Revenue Service or is not required to apply for federal income tax |
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7|exemption, evidence showing that said charitable organization is |
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8|organized in any state or jurisdiction as a not-for-profit entity; |
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9| 9. 10. An identification of the period or periods of time or |
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10|periods during which solicitations are to be conducted, which may be |
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11|specific periods, estimated or projected time frames, or continuous, |
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12|and which may involve different periods for different types of |
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13|solicitations by the same charitable organization; |
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14| 10. 11. An identification of the specific method or methods of |
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15|solicitation utilized by the charitable organization and its agents; |
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16| 11. 12. Whether the solicitation is to be conducted by the |
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17|following for or on behalf of the charitable organization: |
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18|professional fundraisers, employees or volunteers of the charitable |
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19|organization, and/or others; and |
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20| 12. 13. If the solicitation is to be conducted in whole or in |
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21|part by professional fundraisers, the names and addresses of each |
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22|professional fundraiser involved in the solicitation; the basis of |
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23|payment or other consideration payable to each professional |
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24|fundraiser and the nature of the arrangements between the charitable |
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Req. No. 7022 Page 6
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1|organization and each professional fundraiser, the specific amount, |
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2|formula or percentage of compensation, or property of any kind or |
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3|value to be paid or provided to each professional fundraiser; and if |
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4|payment is based on a percentage, the amount of compensation as a |
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5|percentage of the total contributions received, and the net amount |
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6|of the total contributions received (total contributions received, |
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7|less expenses of solicitation other than amounts payable to any |
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8|professional fundraiser). |
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9| B. In addition to the required information in subsection A of |
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10|this section, every charitable organization subject to the |
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11|provisions of the Oklahoma Solicitation of Charitable Contributions |
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12|Act that has solicited contributions during the previous fiscal year |
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13|shall provide the following information: |
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14| 1. The gross amount of the contributions, gifts, grants and |
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15|other similar amounts received by the charitable organization; |
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16| 2. The total Program Service Expenses of the charitable |
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17|organization; |
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18| 3. The total Management and General Expenses of the charitable |
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19|organization; |
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20| 4. The total Fundraising Expenses of the charitable |
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21|organization; and |
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22| 5. For charitable organizations that have a gross revenue of |
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23|One Million Dollars ($1,000,000.00) or more, the actual percentage |
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24|of contributions solicited that remained in Oklahoma; |
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Req. No. 7022 Page 7
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1| 6. The actual percentage of funds raised spent on a commission |
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2|or fee to a professional fundraiser; and |
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3| 7. The aggregate amount paid, or payable, to professional |
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4|fundraisers and professional fundraising counsel. |
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5| C. Any registration form required to be filed under this |
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6|section shall be executed by signature, without more, of the person |
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7|or persons signing the form, in which case the signature or |
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8|signatures shall constitute the affirmation of the signatory, under |
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9|penalty of perjury, that the signature is that person's act and deed |
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10|or the act and deed of the organization, and that the facts stated |
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11|therein are true. |
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12| D. If a charitable organization that is registered with the |
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13|Secretary of State to solicit contributions in this state changes |
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14|its name or the mailing address of its principal office, or plans to |
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15|engage in the solicitation of contributions using a name that is not |
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16|listed on its registration form, then it shall, prior to soliciting |
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17|any funds in this state using any such name, file with the Secretary |
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18|of State a statement executed by an authorized officer of the |
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19|organization setting forth any new name and mailing address along |
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20|with a fee of Twenty-five Dollars ($25.00). Such fee shall be |
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21|deposited to the credit of the General Revenue Fund of the State |
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22|Treasury. |
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23| E. Any fraternal or membership organization not based in |
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24|Oklahoma which solicits contributions from any person of this state |
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Req. No. 7022 Page 8
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1|by telephone, or contracts with professional fundraisers to solicit |
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2|such contributions, shall be required to have at least one member or |
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3|employee of the fraternal or membership organization residing within |
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4|the county where the call is received. |
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5| SECTION 3. AMENDATORY 18 O.S. 2021, Section 552.14a, is |
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6|amended to read as follows: |
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7| Section 552.14a A. Applicable to charitable organizations, |
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8|professional fundraisers and professional solicitors, the following |
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9|shall constitute violations of this act: |
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10| 1. Knowingly making any false material statement or |
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11|representation on a registration application; |
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12| 2. Using the name of a person when soliciting contributions or |
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13|in an advertisement, brochure, stationery or correspondence, without |
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14|the consent or approval in writing of such person, other than an |
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15|officer, director or trustee of the charitable organization by or |
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16|for which contributions are solicited. This paragraph shall not |
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17|apply to the use of the name of a person that has contributed to or |
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18|sponsored an event or program of the charitable organization in a |
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19|report, brochure, program or listing of donors, contributors, |
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20|sponsors, or supporters issued or published by a charitable |
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21|organization. This paragraph shall not apply to the use of a public |
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22|figure's name and/or likeness truthfully and in good faith, so long |
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23|as such use does not imply a false endorsement; |
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24| |
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Req. No. 7022 Page 9
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1| 3. Knowingly using, in connection with solicitation of |
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2|contributions for the purpose of deceiving the public, a name |
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3|similar to other charitable organizations, professional fundraiser, |
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4|professional solicitor or government agency or political |
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5|subdivision; |
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6| 4. Failing to register as required pursuant to Sections Section |
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7|552.3, 552.7 or 552.9, as applicable, of Title 18 of the Oklahoma |
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8|Statutes this title unless otherwise exempted by this act; |
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9| 5. Employing in any solicitation or collection of contributions |
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10|for a charitable organization any device, scheme or artifice to |
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11|defraud or for obtaining money or property by means of any false |
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12|pretense, representation or promise; and |
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13| Title 18 of the Oklahoma Statutes this |
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15|title; and |
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16| 7. Failing or refusing to supply information as required by |
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17|Section 1 of this act within a reasonable amount of time. |
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18| B. The Attorney General or a district attorney may bring an |
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19|action: |
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20| 1. To obtain a declaratory judgment that an act or practice |
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21|violates this act; |
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22| 2. To enjoin, or to obtain a restraining order against a person |
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23|who has violated or is violating this act; |
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24| |
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1| 3. To recover actual damages, restitution, disgorgement and |
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2|penalties attributed to a violation of this act; |
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3| 4. To recover reasonable expenses and investigation fees |
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4|attributable to a violation of this act; |
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5| 5. To prosecute any civil or criminal actions as provided by |
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6|this act, as applicable; and |
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7| 6. To revoke the registration of a charitable organization, |
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8|professional fundraiser, or professional solicitor for any violation |
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9|of this act. |
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10| C. In lieu of instigating or continuing an action or |
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11|proceeding, the Attorney General or a district attorney may accept a |
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12|consent judgment with respect to any act or practice declared to be |
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13|a violation of this act. Such a consent judgment shall provide for |
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14|the discontinuance by the person entering the same of any act or |
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15|practice declared to be a violation of this act, and it may include |
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16|a stipulation for the payment by such person of reasonable expenses, |
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17|attorney fees, investigation costs and penalties incurred by the |
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18|Attorney General or a district attorney. The consent judgment also |
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19|may include a stipulation for restitution to be made by such person |
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20|to contributors of money, property or other things received from |
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21|contributors in connection with a violation of this act and also may |
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22|include a stipulation for specific performance. Any consent |
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23|judgment entered into pursuant to this section shall not be deemed |
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24|to admit the violation, unless it does so by its terms. Before any |
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1|consent judgment entered into pursuant to this section shall be |
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2|effective, it must be approved by the district court and an entry |
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3|made in the manner required for making an entry of judgment. After |
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4|such approval is received, any breach of the conditions of such |
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5|consent judgment shall be treated as a violation of a court order, |
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6|and shall be subject to all the penalties provided by law therefor. |
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7| D. In any action brought by the Attorney General or a district |
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8|attorney, the court may: |
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9| 1. Make such orders or judgments as may be necessary to prevent |
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10|the use or employment by a person of any practice declared to be a |
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11|violation of this act; |
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12| 2. Make such orders or judgments as may be necessary to |
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13|compensate any person for damages sustained; |
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14| 3. Enjoin any person from engaging in solicitation of |
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15|charitable contributions in this state; |
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16| 4. Revoke the registration of a charitable organization, |
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17|professional fundraiser or professional solicitor; |
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18| 5. Enter any order that is appropriate in a criminal |
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19|prosecution of crimes identified in this act or any other state law; |
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20|and |
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21| 6. Grant other appropriate relief. |
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22| E. When an action is filed under this act by the Attorney |
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23|General or a district attorney, no action seeking an injunction or |
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24|declaratory judgment shall be filed in any other district in this |
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1|state based upon the same transaction or occurrence, series of |
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2|transactions or occurrences, or allegations that form the basis of |
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3|the first action filed. |
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4| F. When the Attorney General or a district attorney has reason |
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5|to believe that a person has engaged in, is engaging in or is about |
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6|to engage in any practice declared to be in violation of this act |
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7|and he or she believes it to be in the public interest that an |
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8|investigation should be made to ascertain whether a person has in |
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9|fact engaged in, is engaging in or is about to engage in any such |
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10|practice, he or she may execute in writing and cause to be served |
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11|upon any such person who is believed to have information, |
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12|documentary material or physical evidence relevant to the alleged |
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13|violation an investigative demand requiring such person to furnish, |
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14|under oath or otherwise, a report in writing setting forth the |
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15|nonprivileged relevant facts and circumstances of which the person |
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16|has knowledge, or to appear and testify, or to produce relevant |
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17|nonprivileged documentary material or physical evidence for |
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18|examination at such reasonable time and place as may be stated in |
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19|the investigative demand, concerning the solicitation of charitable |
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20|contributions. |
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21| G. To accomplish the objectives and to carry out the duties |
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22|prescribed by this act, the Attorney General or district attorney, |
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23|in addition to other powers conferred on him or her by this act or |
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24|the laws of this state, may issue subpoenas or other process to any |
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1|person and conduct hearings in aid of any investigation or inquiry, |
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2|administer oaths and take sworn statements under penalty of perjury, |
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3|and serve and execute in any county, search warrants; provided, that |
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4|none of the powers conferred by this act shall be used for the |
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5|purpose of compelling any natural person to furnish testimony or |
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6|evidence that might tend to incriminate him or her or subject him |
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7|or her to a penalty; and provided further, that information obtained |
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8|pursuant to the powers conferred by this act shall not be made |
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9|public or disclosed by the Attorney General, district attorney or |
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10|their employees unless otherwise provided under this act. |
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11| H. In addition to any other penalties provided under this act, |
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12|a charitable organization, professional fundraiser, or professional |
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13|solicitor that is found to be in violation of the Oklahoma |
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14|Solicitation of Charitable Contributions Act in a civil action or |
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15|who willfully violates the terms of any injunction or court order |
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16|issued pursuant to the Oklahoma Solicitation of Charitable |
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17|Contributions Act shall pay a civil penalty of not more than Ten |
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18|Thousand Dollars ($10,000.00) per violation, taking into account the |
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19|nature and severity of the violation and the benefit provided to the |
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20|public by the violator, along with the need for protecting |
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21|contributors and donors. For the purposes of this section, the |
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22|district court issuing an injunction shall retain jurisdiction, and |
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23|in such cases, the Attorney General, acting in the name of the |
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24| |
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1|state, or a district attorney may petition for recovery of civil |
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2|penalties. |
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3| I. In administering and pursuing actions under this act, the |
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4|Attorney General and a district attorney are authorized to sue for |
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5|and collect reasonable expenses, attorney fees, and investigation |
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6|fees as determined by the court. Civil penalties or contempt |
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7|penalties sued for and recovered by the Attorney General or a |
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8|district attorney shall be used for the furtherance of their duties |
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9|and activities under this act. |
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10| J. In addition to other penalties imposed by this act, any |
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11|person convicted in a criminal proceeding of committing an act |
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12|prohibited in paragraph 1, 3 or 5 of subsection A of this section, |
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13|shall be guilty of a felony and upon conviction thereof shall be |
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14|subject to a fine not to exceed Ten Thousand Dollars ($10,000.00) or |
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15|imprisonment in the custody of the Department of Corrections for not |
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16|more than five (5) years, or by both such fine and imprisonment. |
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17| SECTION 4. This act shall become effective November 1, 2023. |
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19| 59-1-7022 MAH 01/11/23 |
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Req. No. 7022 Page 15
