GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1993

S	1 

SENATE BILL 940

Short Title:  Charitable Solicitations.	(Public)
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Sponsors: Senator Sands.
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Referred to:  Judiciary I.
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April 21, 1993

A BILL TO BE ENTITLED
AN ACT TO REWRITE THE CHARITABLE SOLICITATIONS ACT.
The General Assembly of North Carolina enacts:
Section 1.  Chapter 130C of the General Statutes is repealed.
Sec. 2.  The General Statutes are amended by adding a new chapter to read:
"Chapter 131F.
"Solicitation of Contributions Act.
"§ 131F-1-1.  Legislative intent.
It is the intent of the General Assembly to recognize the right of persons or organizations to conduct solicitation activities.  It is also the intent of the General Assembly to protect the public by requiring full public disclosure of the identity of persons who solicit contributions from the public, and of the purposes for which the contributions are solicited and the manner in which the contributions are actually used.  It is further the intent of the General Assembly to prohibit deception, fraud, and misrepresentation in the solicitation and reporting of contributions.
"§ 131F-1-2.  Definitions.
As used in this Chapter:
(1)	'Charitable organization' means any person who is or holds itself out to be established for any charitable purpose, or any person who in any manner employs a charitable appeal as the basis for any solicitation or an appeal that suggests that there is a charitable purpose to any solicitation.  It includes a chapter, branch, area office, or similar affiliate soliciting contributions within the State for a charitable organization which has its principal place of business outside the State.
(2)	'Charitable purpose' means any benevolent, philanthropic, patriotic, educational, humane, scientific, artistic, public health, social welfare or advocacy, environmental conservation, civic, or other eleemosynary objective.
(3)	'Charitable sales promotion' means an advertising or sales campaign conducted by a commercial coventurer which represents that the purchase or use of goods or services offered by the commercial coventurer are to benefit a charitable organization.  The provision of advertising services to a charitable organization does not, in itself, constitute a charitable sales promotion.
(4)	'Commercial coventurer' means any person who, for profit, regularly and primarily is engaged in trade or commerce other than in connection with solicitation of contributions and who conducts a charitable sales promotion or a sponsor sales promotion.
(5)	'Contribution' means the promise, pledge, or grant of any money or property, financial assistance, or any other thing of value in response to a solicitation.  Contribution includes, in the case of a charitable organization or sponsor offering goods or services to the public, the difference between the direct cost of the goods and services to the charitable organization or sponsor and the price at which the charitable organization or sponsor or any person acting on behalf of the charitable organization or sponsor resells those goods or services to the public.  Contribution does not include bona fide fees, dues, or assessments paid by members, provided that membership is not conferred solely as consideration for making a contribution in response to a solicitation.  Contribution also does not include funds obtained by a charitable organization or sponsor pursuant to government grants or contracts.
(6)	'Department' means the Department of Human Resources.
(7)	'Emergency service employee' means any employee who is a firefighter, ambulance driver, emergency medical technician, or paramedic.
(8)	'Federated fund-raising organization' means a federation of independent charitable organizations which have voluntarily joined together including, but not limited to, a united way or community chest, for purposes of raising and distributing contributions for and among themselves and where membership does not confer operating authority and control of the individual organization upon the federated group organization.
(9)	'Fund-raising costs' means those costs incurred in inducing others to make contributions to a charitable organization or sponsor for which the contributors will receive no direct economic benefit.  Fund-raising costs include, but are not limited to, salaries, rent, acquiring and obtaining mailing lists, printing, mailing, all direct and indirect costs of soliciting, and the cost of unsolicited merchandise sent to encourage contributions.
(10)	'Law enforcement officer' means any person who is elected, appointed, or employed by any municipality or the State or any political subdivision of the State and:
a.	Who is vested with authority to bear arms and make arrests and whose primary responsibility is the prevention and detection of crime or the enforcement of the criminal, traffic, or highway laws of the State; or
b.	Whose responsibility includes supervision, protection, care, custody, or control of inmates within a correctional institution.
(11)	'Membership' means the relationship of a person to an organization that entitles him to the privileges, professional standing, honors, or other direct benefit of the organization in addition to the right to vote, elect officers, and hold office in the organization.
(12)	'Owner' means any person who has a direct or indirect interest in any professional fund-raising consultant or professional solicitor.
(13)	'Parent organization' means that part of a charitable organization or sponsor which coordinates, supervises, or exercises control over policy, fund-raising, and expenditures or assists or advises one or more chapters, branches, or affiliates of a charitable organization or sponsor in this State.
(14)	'Person' means any individual, organization, trust, foundation, association, group, entity, partnership, corporation, society, or any combination of these acting as a unit.
(15)	'Professional fund-raising consultant' means any person who is retained by a charitable organization or sponsor for a fixed fee or rate under a written agreement to plan, manage, conduct, carry on, advise, consult, or prepare material for a solicitation of contributions in this State, but who does not solicit contributions or employ, procure, or engage any compensated person to solicit contributions and who does not at any time have custody or control of contributions.  A bona fide volunteer or bona fide employee or salaried officer of a charitable organization or sponsor maintaining a permanent establishment in this State is not a professional fund-raising consultant.  An attorney, investment counselor, or banker who advises an individual, corporation, or association to make a charitable contribution is not a professional fund-raising consultant as the result of this advice.
(16)	'Professional solicitor' means any person who, for compensation, performs for a charitable organization or sponsor any service in connection with which contributions are or will be solicited in this State by the compensated person or by any person it employs, procures, or otherwise engages, directly or indirectly, to solicit contributions, or a person who plans, conducts, manages, carries on, advises, consults, whether directly or indirectly, in connection with the solicitation of contributions for or on behalf of a charitable organization or sponsor, but who does not qualify as a professional fund-raising consultant.  A bona fide volunteer or bona fide employee or salaried officer of a charitable organization or sponsor maintaining a permanent establishment in this State is not a professional solicitor.  An attorney, investment counselor, or banker who advises an individual, corporation, or association to make a charitable contribution is not a professional solicitor as the result of this advice.
(17)	'Religious institution' means any church, ecclesiastical, or denominational organization, or established physical place for worship in this State at which nonprofit religious services and activities are regularly conducted and carried on, as well as those bona fide religious groups that do not maintain specific places of worship.  'Religious institution' includes any separate group or corporation which forms an integral part of a religious institution which is exempt from federal income tax under the provisions of section 501(c)(3) of the Internal Revenue Code, and which is not primarily supported by funds solicited outside its own membership or congregation.
(18)	'Solicitation' means a request, directly or indirectly, for money, property, financial assistance, or any other thing of value on the plea or representation that this money, property, financial assistance, or other thing of value or a portion of it will be used for a charitable or sponsor purpose or will benefit a charitable organization or sponsor.  Solicitation includes, but is not limited to, the following methods of requesting or securing the promise, pledge, or grant of money, property, financial assistance, or any other thing of value:
a.	Any oral or written request;
b.	Making any announcement to the press, radio, or television, by telephone or telegraph, or by any other communication device concerning an appeal or campaign by or for any charitable organization or sponsor or for any charitable or sponsor purpose;
c.	Distributing, circulating, posting, or publishing any handbill, written advertisement, or other publication that directly or by implication seeks to obtain any contribution; or
d.	Selling or offering or attempting to sell any advertisement, advertising space, book, card, coupon, chance, device, magazine, membership, merchandise, subscription, sponsorship, flower, admission, ticket, food, or other service or tangible good, item, or thing of value, or any right of any description in connection with which any appeal is made for any charitable organization or sponsor or charitable or sponsor purpose, or when the name of any charitable organization or sponsor is used or referred to in any appeal as an inducement or reason for making the sale or when, in connection with the sale or offer or attempt to sell, any statement is made that all or part of the proceeds from the sale will be used for any charitable or sponsor purpose or will benefit any charitable organization or sponsor.  The selling or offering or attempting to sell is a solicitation whether or not the person making the solicitation receives any contribution.  It is not a solicitation when a person applies for a grant or an award to the government or to an organization that is exempt from federal income taxation under section 501(a) of the Internal Revenue Code and described in section 501(c) of the Internal Revenue Code.
(19)	'Sponsor' means a group or person which is or holds itself out to be soliciting contributions by the use of any name which implies that the group or person is in any way affiliated with or organized for the benefit of emergency service employees or law enforcement officers and which is not a charitable organization.  The term includes a chapter, branch, or affiliate which has its principal place of business outside the State, if this chapter, branch, or affiliate solicits or holds itself out to be soliciting contributions in this State.
(20)	'Sponsor purpose' means any program or endeavor performed to benefit emergency service employees or law enforcement officers.
(21)	'Sponsor sales promotion' means an advertising or sales campaign conducted by a commercial coventurer who represents that the purchase or use of goods or services offered by the commercial coventurer will be used for a sponsor purpose or donated to a sponsor.  The provision of advertising services to a sponsor does not, in itself, constitute a sponsor sales promotion.
"§ 131F-1-3.  License and registration statements by charitable organizations and sponsors required.
(a)	A charitable organization or sponsor, unless exempted pursuant to G.S. 131F-1-8, that intends to solicit contributions in this State by any means or have funds solicited on its behalf by any other person, charitable organization, sponsor, commercial coventurer, or professional solicitor, or that participates in a charitable sales promotion or sponsor sales promotion, must, prior to engaging in any of these activities, obtain a license and file a registration statement with the Department.
(b)	The license shall be renewed and the registration statement shall be filed annually on or before the fifteenth day of the fifth calendar month after the close of each fiscal year in which the charitable organization or sponsor solicited in this State, or by the date of any applicable extension of the federal filing date, whichever is later, provided that extensions given under this section shall not exceed three months after the initial renewal date or eight months after the conclusion of the year for which financial information is due at the time of renewal.  A charitable organization or sponsor whose federal filing date has been extended shall, within seven days after receipt, forward a copy of the document granting the extension to the Department.
(c)	No charitable organization or sponsor that is required to be licensed and to file a registration statement shall, prior to approval of its registration statement by the Department in accordance with G.S. 131F-1-7, solicit contributions or have contributions solicited on its behalf by any other person, charitable organization, sponsor, commercial coventurer, or professional solicitor, or participate in a charitable sales promotion or sponsor sales promotion.
(d)	For good cause shown, the Department may extend the time for the license renewal and annual filing of a registration statement or financial report for a period not to exceed 60 days, during which time the previous license and registration statement remains in effect.
(e)	In no event shall the license of a charitable organization or sponsor continue in effect after the date the organization should have renewed its license and filed its financial report in accordance with this section and G.S. 131F-1-9.  The organization shall not file a new registration statement until it has filed the required financial report with the Department.
"§ 131F-1-4. Information required in registration statement.
(a)	The registration statement shall be submitted on a form prescribed by the Department, signed under oath by the treasurer or chief fiscal officer of the charitable organization or sponsor, and shall include the following information or material:
(1)	A copy of the financial report or Internal Revenue Service Form 990 and Schedule A or Internal Revenue Service Form 990-EZ required under G.S. 131F-1-9 for the immediately preceding fiscal year.  A newly organized charitable organization or sponsor with no financial history shall file a budget for the current fiscal year.
(2)	The name of the charitable organization or sponsor, the purpose for which it is organized, the name under which it intends to solicit contributions, and the purpose for which the contributions to be solicited will be used.
(3)	The name of the individuals or officers who are in charge of any solicitation activities.
(4)	A statement of whether:
a.	The charitable organization or sponsor is authorized by any other state to solicit contributions;
b.	The charitable organization or sponsor or any of its officers, directors, trustees, or principal salaried executive personnel have been enjoined in any jurisdiction from soliciting contributions or have been found to have engaged in unlawful practices in the solicitation of contributions or administration of charitable assets;
c.	The charitable organization or sponsor has had its registration or authority denied, suspended, or revoked by any governmental agency, together with the reasons for such denial, suspension, or revocation; and
d.	The charitable organization or sponsor has voluntarily entered into an assurance of voluntary compliance or agreement similar to that set forth in G.S. 131F-1-21, together with a copy of that agreement.
(b)	The names, street addresses, and telephone numbers of any professional solicitor, professional fund-raising consultant, and commercial coventurer who is acting or has agreed to act on behalf of the charitable organization or sponsor, together with a statement setting forth the specific terms of the arrangements for salaries, bonuses, commissions, expenses, or other remunerations to be paid the fund-raising consultant and professional solicitor.
(c)	With initial licensing only, a statement showing when and where the organization was established and the tax-exempt status of the organization together with a copy of any federal tax exemption determination letter.  If the charitable organization or sponsor has not received a federal tax exemption determination letter at the time of initial licensing, a copy of the determination must be filed with the Department within 30 days after receipt of the determination by the charitable organization or sponsor.  If the organization is subsequently notified by the Internal Revenue Service of any challenge to its continued entitlement to federal tax exemption, the charitable organization or sponsor shall notify the Department of this fact within 30 days after receipt.
(d)	The following information, which must be included in the registration statement only if it is not contained in the financial report or Internal Revenue Service form filed pursuant to subdivision (a)(1) of this section:
(1)	The principal street address and telephone number of the organization and the street address and telephone numbers of any offices in this State or, if the charitable organization or sponsor does not maintain an office in this State, the name, street address, and telephone number of the person who has custody of its financial records.  The parent organization that files a consolidated registration statement on behalf of its chapters, branches, or affiliates must additionally provide the street addresses and telephone numbers of all its locations in this State.
(2)	The names and street addresses of the officers, directors, trustees, and the principal salaried executive personnel.
(3)	The date when the charitable organization's or sponsor's fiscal year ends.
(4)	A list or description of the major program activities.
(5)	The names, street addresses, and telephone numbers of the individuals or officers who have final responsibility for the custody of the contributions and who will be responsible for the final distribution of the contributions.
"§ 131F-1-5.  Consolidated registration statement.
Each chapter, branch, or affiliate of a parent organization that is required to obtain a license and submit a registration statement under G.S. 131F-1-3 must either file a separate registration statement and financial report or must report the required information to its parent organization, which shall then file, on a form prescribed by the Department, a consolidated registration statement for the parent organization and its chapters, branches, and affiliates located in this State.  A consolidated registration statement filed by a parent organization shall include or be accompanied by financial reports as specified in G.S. 131F-1-9 for the parent organization and each of its chapters, branches, and affiliates located in this State that solicited or received contributions during the preceding fiscal year.  However, if all contributions received by chapters, branches, or affiliates are remitted directly into a depository account which feeds directly into the parent organizations's centralized accounting system from which all disbursements are made, the parent organization may submit one consolidated financial report on a form prescribed by the Department.
"§ 131F-1-6.  License fees.
(a)	Except as provided in subsections (b) and (c) of this section, every charitable organization or sponsor that is required to obtain a license under G.S. 131F-1-3 shall pay the following fees with each license application:
(1)	Fifty dollars ($50.00), if the contributions received for the last fiscal year were less than one hundred thousand dollars ($100,000);
(2)	One hundred dollars ($100.00), if the contributions received for the last fiscal year were one hundred thousand dollars ($100,000) or more, but less than two hundred thousand dollars ($200,000); or
(3)	Two hundred dollars ($200.00), if the contributions received for the last fiscal year were two hundred thousand dollars ($200,000) or more.
(b)	A licensed charitable organization or sponsor that received less than five thousand dollars ($5,000) in the last calendar or fiscal year shall not pay a fee.
(c)	A parent organization filing on behalf of one or more chapters, branches, or affiliates shall pay a single license fee for itself and its other chapters, branches, or affiliates included in the registration statement.  License fees shall be assessed as follows:
(1)	A parent organization and one to five chapters, branches, or affiliates – one hundred dollars ($100.00);
(2)	A parent organization and six to 10 chapters, branches, or affiliates – two hundred dollars ($200.00);
(3)	A parent organization and 11 to 15 chapters, branches, or affiliates – two hundred fifty dollars ($250.00);
(4)	A parent organization and 16 or more chapters, branches, or affiliates – four hundred dollars ($400.00).
(d)	A charitable organization or sponsor which fails to file a registration statement by the due date may be assessed an additional fee for the late filing. The late filing fee shall be established by rule of the Department and shall not exceed twenty-five dollars ($25.00) for each month or part of a month after the date on which the registration statement and financial report were due to be filed or after the period of extension granted for the filing.
(e)	The Solicitation of Contributions Trust Fund is created.  All license fees shall be paid to the Department and deposited into this Fund, to be used to pay the costs incurred in administering and enforcing this Chapter.
(f)	Each chapter, branch, or area office of a charitable organization or sponsor shall independently comply with the provisions of G.S. 131F-1-3 through G.S. 131F-1-6 unless the entity is exempt from licensure or has reported the required information to its parent organization for filing of a consolidated registration statement.
(g)	An independent member charity of a federated fund-raising organization shall independently comply with G.S. 131F-1-3 through G.S. 131F-1-6 unless specifically exempted.
"§ 131F-1-7.  Department review.
The Department shall examine each registration statement and supporting documents filed by a charitable organization or sponsor and shall determine whether the licensing requirements are satisfied.  If the Department determines that the registration requirements are not satisfied, the Department shall notify the charitable organization or sponsor within 10 working days after its receipt of the registration statement; otherwise, the registration statement is deemed to be approved.  Within seven working days after receipt of a notification that the registration requirements are not satisfied, the charitable organization or sponsor may request a hearing.  The hearing shall be held within seven working days after receipt of the request and any recommended order, if one is issued, shall be rendered within three working days of the hearing.  The final order shall then be issued within two working days after the recommended order.  If no recommended order is issued, the final order shall be issued within five working days after the hearing.  The proceedings shall be conducted in accordance with Chapter 150B of the General Statutes except that the time limits and provisions set forth in this section shall prevail to the extent of any conflict.
"§ 131F-1-8.  Exemptions.
(a)	Any person who solicits charitable contributions for a religious purpose or on behalf of a person established for a religious purpose shall not be required to apply for a license.
(b)	Solicitation of charitable contributions by the federal, State, or local government, or any agency thereof, shall not be subject to this Chapter.  For purposes of this subsection any volunteer fire department or rescue squad which receives any funds from federal, State, or local government shall be considered an agency thereof.
(c)	Any person who receives less than ten thousand dollars ($10,000) in contributions in any calendar year and does not provide compensation to any officer, trustee, organizer, incorporator, fund-raiser, or professional solicitor shall not be required to apply for a license.
(d)	Any educational institution, the curriculum of which in whole or in part, is registered, approved, or accredited by the Southern Association of Colleges and Schools or an equivalent regional accrediting body; any educational institution in compliance with Article 39 of Chapter 115C of the General Statutes; and any foundation or department having an established identity with any of the aforementioned educational institutions shall not be required to apply for a license.
(e)	Any hospital licensed pursuant to Article 5 of Chapter 131F of the General Statutes and any foundation or department having an established identity with the aforementioned hospital shall not be required to apply for a license; provided, however, that the governing board of the hospital authorizes the solicitation and receives an accounting of the funds collected and expended.
(f)	Any noncommercial radio or television station shall not be required to apply for a license.
(g)	A qualified community trust as provided in 26 C.F.R. § 1.170A-9(e)(10) through (e)(14) is not required to apply for a license.
"§ 131F-1-9.  Financial report.
(a)	A charitable organization or sponsor that is required to obtain a license shall file an annual financial report for the immediately preceding fiscal year upon a form prescribed by the Department.  The report shall include the following:
(1)	A balance sheet.
(2)	A statement of support, revenue, and expenses, and any change in the fund balance.
(3)	The names and addresses of the charitable organizations or sponsors, professional fund-raising consultant, professional solicitors, and commercial coventurers used, if any, and the amounts received from each of them, if any.
(4)	A statement of functional expenses that shall include, but not be limited to, expenses in the following categories:
a.	Program.
b.	Management and general.
c.	Fund-raising.
(b)	In lieu of the financial report described in subsection (a) of this section, a charitable organization or sponsor may submit a copy of its Internal Revenue Service Form 990 and Schedule A filed for the preceding fiscal year, or a copy of its Form 990-EZ filed for the preceding fiscal year.
(c)	A charitable organization or sponsor may elect to also include a financial report which has been audited by an independent certified public accountant or an audit with opinion by an independent certified public accountant.  In the event that a charitable organization or sponsor elects to file an audited financial report, this optional filing shall be noted in the Department's annual report submitted pursuant to G.S. 131F-1-22.
"§ 131F-1-10.  License and registration by professional fund-raising consultant required.
(a)	A person shall not act as a professional fund-raising consultant unless that person has first complied with the requirements of this Chapter and has obtained approval of the Department of a registration statement in accordance with subsection (f) of this section.  A person shall not act as a professional fund-raising consultant after the expiration, suspension, or cancellation of its license.
(b)	Applications for a license or renewal of a license shall be submitted on a form prescribed by the Department signed under oath, and shall include the following information:
(1)	The street address and telephone number of the principal place of business of the applicant and any street addresses in this State if the principal place of business is located outside this State.
(2)	The form of the applicant's business.
(3)	The names and residence addresses of all principals of the applicant, including all officers, directors, and owners.
(4)	Whether any of the owners, directors, officers, or employees of the applicant are related as parent, child, spouse, or sibling to any other directors, officers, owners, or employees of the applicant; to any officer, director, trustee, or employee of any charitable organization or sponsor under contract to the applicant; or to any supplier or vendor providing goods or services to any charitable organization or sponsor under contract to the applicant.
(5)	Whether the applicant or any of its officers, directors, or principal salaried employees have, within the last five years, been convicted of any felony, or of any misdemeanor arising from the conduct of a solicitation for a charitable organization or sponsor or charitable or sponsor purpose, or been enjoined from violating a charitable solicitation law in this or any other state.
(c)	The application for a license shall be accompanied by a license fee of two hundred dollars ($200.00).  A professional fund-raising consultant that is a partnership or corporation may obtain a license for and pay a single fee on behalf of all of its partners, members, officers, directors, agents, and employees.  In that case, the names and street addresses of all the officers, employees, and agents of the fund-raising consultant and all other persons with whom the fund-raising consultant has contracted to work under its direction shall be listed in the license application.  Each license and registration statement is valid for one year or a part of one year and expires on March 31 of each year.  The license and registration statement may be renewed on or before March 31 of each year for additional one-year periods upon application to the Department and payment of the license fee.
(d)	Every contract or agreement between a professional fund-raising consultant and a charitable organization or sponsor shall be in writing, signed by two authorized officials of the charitable organization or sponsor, and filed by the professional fund-raising consultant with the Department at least five days prior to the performance of any material service by the professional fund-raising consultant.  Solicitation under the contract or agreement may not begin before the filing of the contract or agreement.
(e)	The contract shall contain all of the following provisions:
(1)	A statement of the charitable or sponsor purpose for which the solicitation campaign is being conducted.
(2)	A statement of the respective obligations of the professional fund-raising consultant and the charitable organization or sponsor.
(3)	A clear statement of the fee that will be paid to the professional fund-raising consultant.
(4)	The effective and termination dates.
(5)	A statement that the professional fund-raising consultant will not, at any time, have control or custody of contributions.
(f)	The Department shall examine each registration statement and supporting documents filed by a professional fund-raising consultant and determine whether the license requirements are satisfied.  If the Department determines that the registration requirements are not satisfied, the Department shall notify the professional fund-raising consultant within 10 working days after its receipt of the registration statement; otherwise the registration statement is approved.  Within seven working days after receipt of a notification that the license requirements are not satisfied, the applicant may request a hearing.  The hearing shall be held within seven working days after receipt of the request and any recommended order, if one is issued, shall be rendered within three working days after the hearing.  The final order shall then be issued within two working days after the recommended order.  If there is no recommended order, the final order shall be issued within five working days after the hearing.  The proceedings shall be conducted in accordance with Chapter 150B of the General Statutes, except that the time limits and provisions set forth in this section shall prevail to the extent of any conflict.
(g)	All license fees shall be paid to the Department and deposited into the Solicitation of Contributions Trust Fund to be used to pay the costs incurred in administering and enforcing this Chapter.  Money deposited in this Fund shall be disbursed by the Department for the funding of activities conducted by the Department pursuant to this Chapter.
(h)	Unless otherwise provided, any material change in information filed with the Department pursuant to this section shall be reported in writing to the Department within seven working days after the change occurred.
"§ 131F-1-11.  License and registration statements by professional solicitors required.
(a)	No person may act as a professional solicitor unless that person has first complied with the requirements of this Chapter and has obtained approval of the Department of a registration statement in accordance with subsection (e) of this section.  A person shall not act as a professional solicitor after the expiration, suspension, or cancellation of its license.
(b)	Applications for a license or renewal of a license shall be submitted on a form prescribed by rule of the Department, signed under oath, and shall include the following information:
(1)	The street address and telephone number of the principal place of business of the applicant and any North Carolina street addresses if the principal place of business is located outside this State.
(2)	The form of the applicant's business.
(3)	The place and date when the applicant, if other than an individual, was legally established.
(4)	The names and residence addresses of all principals of the applicant, including all officers, directors, and owners.
(5)	A statement as to whether any of the owners, directors, officers, or employees of the applicant are related as parent, spouse, child, or sibling to any other directors, officers, owners, or employees of the applicant; to any officer, director, trustee, or employee of any charitable organization or sponsor under contract to the applicant; or to any supplier or vendor providing goods or services to any charitable organization or sponsor under contract to the applicant.
(6)	A statement as to whether the applicant or any of its directors, officers, persons with a controlling interest in the applicant, or employees or agents involved in solicitation have been convicted, within the last five years, of any felony, or of a misdemeanor arising from the conduct of a solicitation for any charitable organization or sponsor or charitable or sponsor purpose, or been enjoined from violating a charitable solicitation law in this or any other state.
(7)	The names of all persons in charge of any solicitation activity.
(c)	The application for registration shall be accompanied by a license fee of two hundred dollars ($200.00).  A professional solicitor, which is a partnership or corporation, may register for and pay a single fee on behalf of all of its partners, members, officers, directors, agents, and employees.  In that case, the names and street addresses of all the officers, employees, and agents of the professional solicitor and all other persons with whom the professional solicitor has contracted to work under its direction, including solicitors, shall be listed in the license application or furnished to the Department within five days after the date of employment or contractual arrangement.  Each license is valid for one year or a part of one year and expires on March 31 of each year.  The license may be renewed on or before March 31 of each year for an additional one-year period upon application to the Department and payment of the license fee.
(d)	A professional solicitor shall, at the time of application or renewal of its license, file with and have approved by the Department a bond, to which the professional solicitor is the principal obligor, in the sum of:
(1)	Twenty thousand dollars ($20,000), if the contributions received for the last fiscal year were less than one hundred thousand dollars ($100,000);
(2)	Thirty thousand dollars ($30,000), if the contributions received for the last fiscal year were one hundred thousand dollars ($100,000) or more, but less than two hundred thousand dollars ($200,000);
(3)	Fifty thousand dollars ($50,000), if the contributions received for the last fiscal year were two hundred thousand dollars ($200,000) or more;
with one or more sureties authorized to do business in this State.  The professional solicitor shall maintain the bond in effect as long as the license is in effect; however, the liability of the surety under the bond shall not exceed an all-time aggregate liability of fifty thousand dollars ($50,000).  The bond, which may be in the form of a rider to a larger blanket liability bond, shall be payable to the State and to any person who may have a cause of action against the principal obligor of the bond for any liability arising out of a violation by the obligor of any provision of this Chapter, or any rule adopted pursuant to this Chapter.
(e)	The Department shall examine each registration statement and supporting documents filed by a professional solicitor.  If the Department determines that the registration requirements are not satisfied, the Department shall notify the professional solicitor within 10 working days after its receipt of the registration statement; otherwise the registration statement is approved.  Within seven working days after receipt of a notification that the registration requirements are not satisfied, the applicant may request a hearing.  The hearing shall be held within seven working days after receipt of the request and any recommended order, if one is issued, shall be rendered within three working days after the hearing.  The final order shall then be issued within two working days after the recommended order.  If there is no recommended order, the final order shall be issued within five working days after the hearing.  The proceedings shall be conducted in accordance with Chapter 150B of the General Statutes, except that the time limits and provision set forth in this subsection prevail to the extent of any conflict.
(f)	No less than five days before commencing any solicitation campaign or event, the professional solicitor shall file, with the Department, a solicitation notice on a form prescribed by the Department.  The notice shall be signed and sworn to by the contracting officer of the professional solicitor and shall include:
(1)	A description of the solicitation event or campaign.
(2)	Each location and telephone number from which the solicitation is to be conducted.
(3)	The legal name and residence address of each person responsible for directing and supervising the conduct of the campaign.
(4)	A statement as to whether the professional solicitor will, at any time, have custody of contributions.
(5)	The account number and location of each bank account where receipts from the campaign are to be deposited.
(6)	A full and fair description of the charitable or sponsor program for which the solicitation campaign is being carried out as provided in the contract between the professional solicitor and the charitable organization or sponsor.
(7)	The fund-raising methods to be used.
(8)	A copy of the contract executed in accordance with subsection (g) of this section.
(g)	Each contract or agreement between a professional solicitor and a charitable organization or sponsor for each solicitation campaign shall be in writing, signed by two authorized officials of the charitable organization or sponsor, one of whom shall be a member of the organization's governing body, and one of whom shall be the authorized contracting officer for the professional solicitor.  The contract shall contain all of the following provisions:
(1)	A statement of the charitable or sponsor purpose and program for which the solicitation campaign is being conducted.
(2)	A statement of the respective obligations of the professional solicitor and the charitable organization or sponsor.
(3)	A statement of the guaranteed minimum percentage of the gross receipts from contributions which will be remitted to the charitable organization or sponsor, if any, or, if the solicitation involves the sale of goods, services, or tickets to a fund-raising event, the percentage of the purchase price which will be remitted to the charitable organization or sponsor, if any.  Any stated percentage shall exclude any amount which the charitable organization or sponsor is to pay as fund-raising costs.
(4)	A statement of the percentage of the gross revenue which the professional solicitor will be compensated.  If the compensation of the professional solicitor is not contingent upon the number of contributions or the amount of revenue received, his compensation shall be expressed as a reasonable estimate of the percentage of the gross revenue, and the contract must clearly disclose the assumptions upon which the estimate is based.  The stated assumptions shall be based upon all of the relevant facts known to the professional solicitor regarding the solicitation to be conducted by the professional solicitor.
(5)	The effective and termination dates of the contract.
(h)	Within 90 days after a solicitation campaign has been completed and on the anniversary of the commencement of a solicitation campaign lasting more than one year, the professional solicitor shall provide to the charitable organization or sponsor and file with the Department a financial report of the campaign, including the gross revenue received and an itemization of all expenses incurred.  The report shall be completed on a form prescribed by the Department and signed by an authorized official of the professional solicitor who shall certify under oath that the report is true and correct.
(i)	Each contribution collected by or in the custody of the professional solicitor shall be solely in the name of the charitable organization or sponsor on whose behalf the contribution was solicited.  Not later than two days after receipt of each contribution, the professional solicitor shall deposit the entire amount of the contribution in an account at a bank or other federally insured financial institution, which account shall be in the name of that charitable organization or sponsor.  The charitable organization or sponsor shall have sole control of all withdrawals from the account and the professional solicitor shall not be given the authority to withdraw any deposited funds from the account.
(j)	During each solicitation campaign, and for not less than three years after its completion, the professional solicitor shall maintain the following records:
(1)	The date and amount of each contribution received and the name, address, and telephone number of each contributor.
(2)	The name and residence street address of each employee, agent, and any other person, however designated, who is involved in the solicitation, the amount of compensation paid to each, and the dates on which the payments were made.
(3)	A record of all contributions that at any time are in the custody of the professional solicitor,
(4)	A record of all expenses incurred by the professional solicitor for the payment of which the professional solicitor is liable.
(5)	A record of all expenses incurred by the professional solicitor for the payment of which the charitable organization or sponsor is liable.
(6)	The location of each bank or financial institution in which the professional solicitor has deposited revenue from the solicitation campaign and the account number of each account in which the deposits were made.
(7)	A copy of each pitch sheet or solicitation script used during the completed solicitation campaign.
(8)	If a refund of a contribution has been requested, the name and address of each person requesting the refund, and, if a refund was made, its amount and the date it was made.
(k)	If the professional solicitor sells tickets to any event and represents that the tickets will be donated for use by another person, the professional solicitor also shall maintain for the same period as specified in subsection (j) of this section the following records:
(1)	The name and address of each contributor who purchases or donates tickets and the number of tickets purchased or donated by the contributor.
(2)	The name and address of each organization that receives the donated tickets for the use of others, and the number of tickets received by the organization.
(l)	Any of the records described in this section shall be made available to the Department upon request and shall be furnished within 10 days after the request.
(m)	Unless otherwise provided in this Chapter, any material change in any information filed with the Department pursuant to this section shall be reported in writing to the Department within seven days after the change occurs.
(n)	Any person licensed as a professional solicitor shall permanently lose its license if it is determined that that person, any officer or director thereof, any person with a ten percent (10%) or greater interest therein, or any person the professional solicitor employs, engages, or procures to solicit for compensation, has been convicted in the last five years by a court in any state of the United States of a crime arising from the conduct of a solicitation for a charitable organization or sponsor or a charitable purpose or sponsor purpose.
(o)	All license fees shall be paid to the Department and deposited into the Solicitation of Contributions Trust Fund to be used to pay the costs incurred in administering and enforcing this Chapter.  Money deposited therein must be disbursed by the Department for the funding of activities conducted by the Department pursuant to this Chapter.
"§ 131F-1-12.  Disclosure requirements and duties of charitable organizations and sponsors.
(a)	A charitable organization or sponsor shall solicit contributions only for the purpose expressed in the collection for contributions or the registration statement of the charitable organization or sponsor and may apply contributions only in a manner substantially consistent with that purpose.
(b)	A charitable organization or sponsor soliciting in this State shall include all of the following disclosures at the point of solicitation:
(1)	The name of the charitable organization and state of the principal place of business of the charitable organization or sponsor;
(2)	A description of the purpose for which the solicitation is being made;
(3)	Upon request, the name and either the address or telephone number of a representative to whom inquiries could be addressed;
(4)	Upon request, the amount of the contribution which may be deducted as a charitable contribution under federal income tax laws;
(5)	Upon request, the source from which a written financial statement may be obtained.  Such financial statement shall be for the immediate past fiscal year and shall be consistent with the annual financial report filed under G.S. 131F-1-9.  The written financial statement shall be provided within 14 days after the request and shall state the purpose for which funds are raised, the total amount of all contributions raised, the total costs and expenses incurred in raising contributions, the total amount of contributions dedicated to the stated purpose or disbursed for the stated purpose, and whether the services of another person or organization have been contracted to conduct solicitation activities.
(c)	Every charitable organization or sponsor that is required to obtain a license under G.S. 131F-1-3 shall conspicuously display in capital letters the following statement on every printed solicitation, written confirmation, receipt, or reminder of a contribution:
'A COPY OF THE LICENSE TO SOLICIT CHARITABLE CONTRIBUTIONS AS A CHARITABLE ORGANIZATION OR SPONSOR AND FINANCIAL INFORMATION MAY BE OBTAINED FROM THE DEPARTMENT OF HUMAN RESOURCES, SOLICITATION LICENSING BRANCH, BY CALLING (919)	733-4510.  REGISTRATION DOES NOT IMPLY ENDORSEMENT, APPROVAL, OR RECOMMENDATION BY THE STATE.
When the solicitation consists of more than one piece, the statement shall be displayed prominently in the solicitation materials.
(d)	A charitable organization or sponsor shall establish and exercise control over its fund-raising activities.
(e)	A charitable organization or sponsor shall not enter into any contract or agreement with or employ a professional fund-raising consultant or professional solicitor unless that professional fund-raising consultant or professional solicitor is licensed by the Department.
"§ 131F-1-13.  Disclosure requirements and duties of professional solicitors.
(a)	A professional solicitor shall comply with and be responsible for complying or causing compliance with the following disclosures:
(1)	Prior to orally requesting a contribution or contemporaneously with a written request for a contribution, a professional solicitor shall clearly disclose:
a.	The name of the professional solicitor as on file with the Department.
b.	If the individual acting on behalf of the professional solicitor identifies himself by name, the individual's legal name.
(2)	In the case of a solicitation campaign conducted orally, whether by telephone or otherwise, any written confirmation, receipt, or reminder sent to any person who has contributed or has pledged to contribute, shall include a clear disclosure of the information required under subdivision (1) of this subsection.
(3)	In addition to the information required by subdivision (1) of this subsection, any written confirmation, receipt, or reminder of contribution made pursuant to an oral solicitation and any written solicitation shall conspicuously state in capital letters:
	'A COPY OF THE LICENSE AND FINANCIAL INFORMATION OF THE PROFESSIONAL SOLICITOR MAY BE OBTAINED FROM THE DEPARTMENT OF HUMAN RESOURCES, SOLICITATION LICENSING BRANCH, BY CALLING (919) 733-4510.  REGISTRATION DOES NOT IMPLY ENDORSEMENT, APPROVAL, OR RECOMMENDATION BY THE STATE.'
	When the solicitation consists of more than one piece, the statement shall be displayed prominently in the solicitation materials.
(4)	If requested by the person being solicited, the professional solicitor shall inform that person in writing, within 14 days of the request, of the fixed percentage of the gross revenue or the reasonable estimate of the percentage of the gross revenue that the charitable organization or sponsor will receive as a benefit from the solicitation campaign.
(5)	If requested by the person being solicited, the professional solicitor shall inform that person, in writing, within 14 days of the request, of the percentage of the contribution which may be deducted as a charitable contribution under federal income tax laws.
(b)	A professional solicitor shall not represent that tickets to any event will be donated for use by another person, unless:
(1)	The professional solicitor has the written commitments from persons stating that they will accept donated tickets and specifying the number of tickets they are willing to accept.
(2)	The written commitments are filed with the Department prior to any solicitation.
(c)	The contributions solicited for donated tickets shall not be more than the amount representing the number of ticket commitments received from persons and filed with the Department.
(d)	At least seven calendar days before the date of the event, the professional solicitor shall give all donated tickets to each person that made the written commitment to accept them.
"§ 131F-1-14.  Contributions solicited for or accepted on behalf of a named individual.
(a)	Contributions solicited for, or accepted by or on behalf of, a named individual shall be deposited in a trust account opened by a trustee named in a properly established trust document.  District court has jurisdiction over the contributed funds placed in any depository account.
(b)	Disbursements of contributions may be properly made from a trust account only upon written verification from the trustee that the disbursement is in furtherance of the purpose for which the funds were solicited, with documentation reflecting the identity of the proposed payee and the justification for the proposed payment.  Disbursements of contributed funds from a depository account may be made only as allowed by the court.
(c)	Any person or organization that violates the provisions of subsection (a) or subsection (b) of this section is guilty of a Class J felony.
"§ 131F-1-15.  Duties of commercial coventures.
(a)	Prior to the commencement of any charitable or sponsor sales promotion in this State conducted by a commercial coventurer on behalf of a charitable organization or sponsor, the commercial coventurer shall obtain the written consent of the charitable organization or sponsor whose name will be used during the charitable or sponsor sales promotion.
(b)	If determined to be essential to protect the public from fraudulent or deceptive advertising, the Department may adopt rules requiring disclosure in advertising for a charitable or sponsor sales promotion of information relating to the portion or amount that will benefit the charitable organization or sponsor or the charitable purpose or sponsor purpose.
(c)	A final accounting for each charitable or sponsor sales promotion shall be prepared by the commercial coventurer following the completion of the sales promotion.  The final accounting shall be provided to the charitable organization or sponsor on whose behalf the sales promotion was conducted within 10 days after a request by the charitable organization or sponsor.  The final accounting shall be kept by the commercial coventurer for a period of three years, unless the commercial coventurer and the charitable organization or sponsor mutually agree that the accounting should be kept by the charitable organization or sponsor instead of the commercial coventurer.  A copy of the final accounting shall be provided to the Department no later than 10 working days after the Department requests it.
"§ 131F-1-16.  Prohibited acts.
It is unlawful for any person in connection with the planning, conduct, or execution of any solicitation or charitable or sponsor sales promotion to:
(1)	Operate in violation of, or fail to comply with, the requirements of this Chapter.
(2)	Knowingly file false or misleading information in any document required to be filed with the Department or in response to any request or investigation by the Department or the Attorney General.
(3)	Make misrepresentations or misleading statements to the effect that any other person or organization sponsors or endorses the solicitation, approves of its purpose, or is connected therewith, when that person or organization has not given written consent to the use of its name.
(4)	Represent that the contribution is for or on behalf of a charitable organization or sponsor or to use any emblem, device, or printed matter belonging to or associated with a charitable organization or sponsor, without first being authorized in writing to do so by the charitable organization or sponsor.
(5)	Use a name, symbol, emblem, device, service mark, or statement so closely related or similar to that used by another charitable organization or sponsor that the use thereof would mislead the public.
(6)	Falsely state that the person is a member of or a representative of a charitable organization or sponsor or falsely state or represent that the person is a member of or represents a law enforcement or emergency service organization.
(7)	Misrepresent or mislead anyone by any manner, means, practice, or device whatsoever, to believe that the person or organization on whose behalf the solicitation or sale is being conducted is a charitable organization or sponsor, or that any of the proceeds of the solicitation or sale will be used for charitable or sponsor purposes, if that is not the fact.
(8)	Represent that a charitable organization or sponsor will receive a fixed or estimated percentage of the gross revenue from a solicitation campaign greater than that identified in filings with the Department pursuant to this Chapter, or that a charitable organization or sponsor will receive an actual or estimated dollar amount or percentage per unit of goods or services purchased or used in the charitable or sponsor sales promotion that is greater than that agreed to by the commercial coventurer and the charitable organization or sponsor.
(9)	Use or exploit the fact of registration or the filing of any report with any governmental agency so as to lead any person to believe that the registration in any manner constitutes an endorsement or approval by the State.  However, use of the statement required in G.S. 131F-1-12(c) or G.S. 131F-1-13(a)(3) is not a prohibited use or exploitation.
(10)	Make misrepresentations or misleading statements to the effect that the donation of a contribution or the display of any sticker, emblem, or insignia offered to contributors will entitle such other person to any special treatment by emergency service employees or law enforcement officers in the performance of their official duties.
(11)	Solicit contributions from another person or organization while wearing the uniform of an emergency service employee or law enforcement officer, or while on duty as an emergency service employee or law enforcement officer, except where the solicitation is for an organization exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code or except when soliciting contributions to benefit an emergency service employee or law enforcement officer who has been injured in the line of duty or to benefit the family or dependents of an emergency service employee or law enforcement officer who has been killed in the line of duty.
(12)	Solicit contributions on behalf of another person or organization using any statement that the failure to make a contribution shall result in a reduced level of law enforcement services being provided to the public or the person solicited.
(13)	Employ in any solicitation any device, scheme, or artifice to defraud or to obtain a contribution by means of any deception, false pretense, misrepresentation, or false promise.
(14)	Notify any other person by any means, as part of an advertising scheme or plan, that the other person has won a prize, received an award, or has been selected or is eligible to receive anything of value if the other person is required to purchase goods or services, pay any money to participate in, or submit to a promotion effort.
(15)	Fail to provide complete and timely payment to a charitable organization or sponsor of the proceeds from a solicitation campaign or a charitable or sponsor sales promotion.
(16)	Fail to apply contributions in a manner substantially consistent with the solicitation.
(17)	Fail to identify the professional relationship to the person for whom the solicitation is being made.
"§ 131F-1-17.  Violation as deceptive or unfair trade practice.
Any person who commits an act or practice that violates any provision of this Chapter engages in an unfair practice in violation of G.S. 75-1.1.
"§ 131F-1-18.  Criminal penalties.
Except as otherwise provided in this Chapter and in addition to any administrative or civil penalties, any person who willfully and knowingly violates a provision of this Chapter commits a Class J felony.  For a second or subsequent conviction, such violation constitutes a Class J felony.
"§ 131F-1-19.  Records.  
Each charitable organization, sponsor, professional fund-raising consultant, and professional solicitor shall keep, for a period of at least three years, true and accurate records as to its activities in this State, which records are required by this Chapter.  The records shall be made available upon request, to the Department for inspection and shall be furnished no later than 10 working days after the request was made.
"§ 131F-1-20.  Powers of the Department.
(a)	The Department may conduct an investigation of any person or organization whenever there is an appearance, either upon complaint or otherwise, that a violation of this Chapter or of any rule adopted or of any order issued pursuant to this Chapter has occurred or is about to occur.
(b)	The Department may issue and serve subpoenas and subpoenas duces tecum to compel the attendance of witnesses and the production of all books, accounts, records, and other documents and materials relevant to an examination or investigation.  The Department, or its duly authorized representative, may administer oaths and affirmations to any person.
(c)	In the event of substantial noncompliance with a subpoena or subpoena duces tecum issued or caused to be issued by the Department, the Department may petition the superior court of the county in which the person subpoenaed resides or has its principal place of business for an order requiring the subpoenaed person to appear and testify and to produce any books, accounts, records, and other documents as are specified in the subpoena duces tecum.  The court may grant injunctive relief restraining the person or organization from collecting contributions and any other relief, including, but not limited to, the restraint by injunction or appointment of a receiver, or any transfer, pledge, assignment, or other disposition of the person's or organization's assets, or any concealment, alteration, destruction, or other disposition of subpoenaed books, accounts, records, or other documents and materials as the court deems appropriate, until the person or organization has fully complied with the subpoena or subpoena duces tecum and the Department has completed its investigation or examination.  The court may also order the person or organization to produce a financial statement that has been audited by an independent certified public accountant.  Costs incurred by the Department to obtain an order granting, in whole or in part, a petition for enforcement of a subpoena or subpoena duces tecum shall be taxed against the subpoenaed person or organization, and failure to comply with the order shall be contempt of court.
(d)	The Department may enter an order imposing one or more of the penalties set forth in subsection (e) of this section if the Department finds that a charitable organization, sponsor, professional fund-raising consultant, or professional solicitor, or an agent, servant, or employee thereof has:
(1)	Violated or is operating in violation of any of the provisions of this Chapter or of the rules adopted or orders issued pursuant to this Chapter;
(2)	Made a material false statement in an application, statement, or report required to be filed under this Chapter;
(3)	Refused or failed, or any of its principal officers refused or failed, after notice, to produce any records of the organization or to disclose any information required to be disclosed under this Chapter or the rules adopted by the Department; or
(4)	Made a material false statement in response to any request or investigation by the Department or the Attorney General.
(e)	Upon a finding as set forth in subsection (d) of this section, the Department may enter an order doing one or more of the following:
(1)	Imposing an administrative fine not to exceed one thousand dollars ($1,000) for each act or omission which constitutes a violation of this Chapter or a rule or an order;
(2)	Issuing a cease and desist order that directs that the person cease and desist specified fund-raising activities;
(3)	Refusing to register or cancelling or suspending a registration;
(4)	Placing the registrant on probation for a period of time, subject to such conditions as the Department may specify;
(5)	Issuing of a letter of concern; and
(6)	Cancelling an exemption granted under G.S. 131F-1-8.
(f)	Except as otherwise provided in this section, the administrative proceedings which could result in the entry of an order imposing any of the penalties specified in subsection (e) of this section are governed by Chapter 150B of the General Statutes.
(g)	All fines collected by the Department under subsection (e) of this section must be paid into the Solicitation of Contributions Trust Fund to be used to pay the costs incurred in administering and enforcing this Chapter.  Money deposited therein must be disbursed by the Department for the funding of activities conducted by the Department pursuant to this Chapter.
(h)	The Department may adopt rules to implement this Chapter.
"§ 131F-1-21.  Civil remedies and enforcement.
(a)	In addition to other remedies authorized by law, the Attorney General may bring a civil action in superior court to enforce this Chapter.  Upon a finding that any person has violated this Chapter, a court may make any necessary order or enter a judgment including, but not limited to, a temporary or permanent injunction, a declaratory judgment, the appointment of a master or receiver, the sequestration of assets, the reimbursement of persons from whom contributions have been unlawfully solicited, the distribution of contributions in accordance with the charitable or sponsor purpose expressed in the registration statement or in accordance with the representations made to the person solicited, the reimbursement of the Department for attorneys' fees and costs, including investigative costs, and any other equitable relief the court finds appropriate.  Upon a finding that any person has violated any provision of this Chapter with actual knowledge or knowledge fairly implied on the basis of objective circumstances, a court may enter an order imposing a civil penalty in an amount not to exceed ten thousand dollars ($10,000) per violation.
(b)	The Attorney General may conduct any investigation necessary to bring a civil action under this section including, but not limited to, administering oaths and affirmations, subpoenaing witnesses or material, and collecting evidence.
(c)	The Attorney General may terminate an investigation or an action upon acceptance of a person's written assurance of voluntary compliance with this Chapter.  Acceptance of an assurance may be conditioned on commitment to reimburse donors or to take other appropriate corrective action.  An assurance is not evidence of a prior violation of any of this Chapter.  However, unless an assurance has been rescinded by agreement of the parties or voided by a court for good cause, subsequent failure to comply with the terms of an assurance is prima facie evidence of a violation of this Chapter.
"§ 131F-1-22.  Public information; annual report.
(a)	The Department shall develop a public information program to further the purposes of this Chapter.  The purpose of the program is to help the public recognize unlawful, misleading, deceptive, or fraudulent solicitations and make knowledgeable, informed decisions concerning contributions.
(b)	The program shall include information concerning:
(1)	The laws governing solicitations, including licensing and disclosure requirements, prohibited acts, and penalties;
(2)	The means by which the public can report suspected violations or file a complaint; and
(3)	Any other information the Department believes will assist the public in making knowledgeable and informed decisions concerning contributions.
(c)	The Department shall prepare an annual public report to be submitted to the Governor, the President of the Senate, and the Speaker of the House of Representatives summarizing the information filed under this Chapter which the Department determines will assist the public in making informed and knowledgeable decisions concerning contributions.  The report shall include the following:
(1)	A list of complaints filed for which violations were found to have occurred in each of the following categories: charitable organizations, sponsors, professional solicitors, and professional fund-raising consultants.
(2)	A list of the number of investigations by the Department, enforcement actions commenced under this Chapter, and the disposition of those actions.
(3)	A list of those charitable organizations and sponsors that have voluntarily submitted an audited financial statement pursuant to G.S. 131F-1-9 or an audit with an opinion prepared by an independent certified public accountant."
Sec. 3.  This act becomes effective October 1, 1993.