KRS § 367.652 — KY Code / Title XXIX / Chapter 367 / Section 367.652
367.652 Registration of professional solicitors and fundraising consultants -- Prohibitions -- Background check
Status: in_force

367.652 Registration of professional solicitors and fundraising consultants --

Prohibitions -- Background check.

(1) A professional solicitor shall file a registration statement with, and obtain the

approval of, the Attorney General before acting as a professional solicitor. The

registration statement shall be attested to by the professional solicitor, if an

individual, or by the principal officer of the professional solicitor, if the solicitor is a

business entity. The statement shall be accompanied by a fee of three hundred

dollars ($300), plus the costs of a background investigation to the Attorney

General's office. The funds shall be placed in a trust or agency account pursuant to

KRS 45.253. If a professional solicitor is a corporation or partnership, a single fee

shall cover all its partners, members, employees, directors, agents, or officers.

(2) Each registration shall expire on December 31 of the calendar year in which it is

filed and may be renewed by reapplying and paying the prescribed fee.

(3) At the time of filing the registration statement, a professional solicitor shall file with

and have approved by the Attorney General a full cash or surety bond in the amount

of twenty-five thousand dollars ($25,000). The bond shall be in favor of the

Attorney General and shall be held for any person having prevailed in a cause of

action against the solicitor for liabilities resulting from the solicitor's violation of

KRS 367.650 to 367.670 or any administrative regulation promulgated pursuant to

these sections. The bond shall be in a form prescribed by the Attorney General. If a

surety bond is issued, it shall be issued by an insurer authorized to transact surety

insurance in this state pursuant to KRS Chapter 304. The Attorney General may

require that any cash offered as security for a full cash bond be held in escrow by a

financial institution located in the state, subject to an escrow agreement approved by

the Attorney General.

(4) The registration statement shall be filed in a form prescribed by the Attorney

General and shall include:

(a) The name, address, and telephone number of the professional solicitor and the

agent authorized to accept service of process in this state;

(b) The names in which the professional solicitor is doing business in Kentucky

and any names used in the past;

(c) The names and addresses of any charity sharing in the charitable contributions

received in this state;

(d) A copy of any articles of incorporation and by-laws of the solicitor, fund

raising consultant, and the charitable organization, and any tax-exempt status

letter from the Internal Revenue Service;

(e) The names, addresses, and occupations of persons employed by or who have

contracted with the professional solicitor and a statement of whether those

persons have been convicted of a felony or a misdemeanor involving moral

turpitude or arising from their conduct as solicitors for a charitable

organization or purpose;

(f) A copy of the financial statement for the professional solicitor's preceding

fiscal year, which shall set out the total profits and revenue from all

fundraising activities, the balance sheet, the kind and amounts of funds raised,

specific costs in raising funds, the percentage of funds raised on behalf of the

charitable organization which are actually paid to the organization for

charitable purposes, and the location of the original financial records;

(g) A statement of whether the professional solicitor has ever been enjoined by

any court or otherwise prohibited from soliciting contributions in any

jurisdiction;

(h) A statement indicating the method by which the solicitation is made, a

description of the promotional plan together with copies of all advertisements,

the location of all telephones being used, and the time period during and the

areas in which the solicitations are made; and

(i) Any other information which may be required by the Attorney General for the

public interest or for the protection of contributors.

(5) A fundraising consultant shall file a registration statement with and obtain the

approval of the Attorney General before acting as a consultant. The registration

statement shall be attested to by the fundraising consultant, if the consultant is an

individual, or by the principal officer of the fundraising consultant, if the consultant

is a business entity. The statement shall be accompanied by a fee of fifty dollars

($50), plus the costs of a background investigation. The fees shall be placed in a

trust or agency account pursuant to KRS 45.253. If a fundraising consultant is a

corporation or partnership, a single fee shall cover all its partners, members,

employees, directors, agents, or officers.

(6) Each registration shall expire on December 31 of the calendar year in which it is

filed and may be renewed by reapplying and paying the fee.

(7) The professional solicitor and fundraising consultant shall report in writing to the

Attorney General any material change in the registration statement occurring after

filing. The report shall be filed within seven (7) calendar days after the change

occurs.

(8) No person shall act as a professional solicitor or fundraising consultant if he, his

officers, directors, or any person with a controlling interest in the business, or any

person the professional solicitor or fundraising consultant employs or procures to

solicit for compensation or to advise, consult, plan, or manage in regards to the

solicitation campaign, has been convicted by a court of any state or the United

States of a felony or a misdemeanor involving moral turpitude or arising from his

conduct as a solicitor or consultant for a charitable organization or purpose. A

background check on each person set out in this subsection shall be performed by

the Attorney General's office. The actual cost of the investigation shall be added to

the registration fee.