An Act To Clarify the Charitable Solicitations Act
Maine Legislature, Session 122, LD 1767
Committee: Business, Research and Economic Development
Sponsors: HOBBINS, SMITH, MAYO, SULLIVAN, PELLETIER-SIMPSON, RECTOR
Amends: 9 MRSA §5002, 9 MRSA §5003, 9 MRSA §5004, 9 MRSA §5008, 9 MRSA §5017

Legislative Document 
No. 1767 
S.P.684 
In Senate, December 30, 2005 
An Act To Clarify the Charitable Solicitations Act 
Submitted by the Department of Professional and Financial Regulation pursuant to Joint 
Rule 204. 
Received by the Secretary of the Senate on December 28,2005. Referred to the Committee 
on Business, Research and Economic Development pursuant to Joint Rule 308.2 and ordered 
printed pursuant to Joint Rule 401. 
Presented by Senator HOBBINS of York. 
Cosponsored by Representative SMITH of Monmouth and 
JOY J. O'BRIEN 
Secretary of the Senate 
Senators: MAYO ofSagadahoc, SULLIVAN of York, Representatives: PELLETIER-
SIMPSON of Auburn, RECTOR of Thomaston. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 9 MRSA §5002, as amended by PL 1999, c. 386, Pt. A, 
§1, is further amended to read: 
§5002. Intent 
It 
is 
the 
intent 
of 
the 
Legislature 
to 
require 
the 
registration and financial reporting of charitable organizations, 
professional solid_tors, 
professional fund-raising counsel 
and 
commercial 
co-venturers 
and 
the 
Fe~istFati9B--aBe bonding 
of 
professional 
fli.Be-Fais-i~--€9QBSe;b 
solicitors 
and 
commercial 
co-venturers aBe-the-Fe~istFatieB-ef-pFefessi9Bal-s91ieit9Fs. 
Sec. 2. 9 MRSA §5003, sub-§3, as amended by PL 2003, c. 541, 
§2, is further amended to read: 
3. 
Coamercial co-venturer. "Commercial co-venturer" means 
any person who, for profit, is regularly and primarily engaged in 
trade or commerce in this State, other than in connection with 
the raising of funds for charitable organizations or purposes, 
and who conducts a sale, performance, event or collection and 
sale of donated goods that is advertised in conjunction with the 
name of any charitable organization. 
Any such person who will 
benefit in good will only may not be considered a 
commercial 
co-venturer if the collection and distribution of the proceeds of 
the sale, performance or event, or the collection and sale of 
donated goods, are supervised and controlled by the benefiting 
charitable 
organization. 
Any 
such 
person 
whose 
annual 
contributions to charitable organizations do not exceed $10,000 
is exempt from the registration re~uirement under section 5002. 
Sec. 3. 9 MRSA §5003, sub-§4, 1[A, as enacted by PL 1977, c. 
488, §1, is amended to read: 
A. 
Payments by members of an organization for membership 
fees, dues, fines or assessments, or for services rendered 
to individual members, 
if membership in the organization 
confers a bona fide right, privilege, professional standing, 
honor or other direct benefits, other than the right to 
vote, elect officers or hold offices; 9F 
Sec. 4. 9 MRSA §5003, sub-§4, tB, as enacted by PL 1977, c. 
488, §1, is amended to read: 
B. 
Money 
or 
property 
received 
from 
any 
governmental 
authoritYT~ 
Sec. 5. 9 MRSA §5003, sub-§4, 1[C is enacted to read: 
Page l-LR2999\l' 
C. 
Money or property received from a foundation established 
for charitable or educational purposes. 
Sec. 6. 9 MRSA §5004, sub-§l, ,A, as enacted by PL 1999, c. 
386, Pt. A, §8, is amended to read: 
A. 
Unless exempt pursuant to section 5006, 
a charitable 
organizationT that intends to solicit, 
accept or obtain 
contributions 
in 
this 
State 
or 
to 
have 
contributions 
solicited, accepted or obtained on its behalf within this 
State shall file a registration statement with the office at 
least 30 days before seJ:ieit:at:ieR soliciting, accepting or 
obtaining 
contributions 
in 
each 
year 
in 
which 
the 
organization 
is 
engaged 
in 
seJ:iei~a~ieR---aet:ivit:ies 
soliciting, 
accepting 
or 
obtaining 
contributions. 
The 
charitable 
organization 
shall 
identify 
any 
affiliate 
organizations or chapters on its registration statement. 
Sec. 7. 9 MRSA §5004, sub-§l, ,C, as enacted by PL 1999, c. 
386, Pt. A, §8, is amended to read: 
C. 
Before 
approval 
of its statement by 
the office in 
accordance with section 5008, a charitable organization that 
is required to file an initial registration statement or 
annual renewal statement may not solici t, accept or obtain 
contributions or have contributions solicited, 
acce~d or 
obtained on its behalf 
by 
any other person, 
charitable 
organization, 
commercial 
co-venturer 
or 
professional 
solicitor, or participate in charitable sales promotion. 
Sec. 8. 9 MRSA §5004, sub-§4, ,D, as repealed and replaced by 
PL 2003, c. 541, §8, is amended to read: 
D. 
The 
complete 
packet 
for 
renewal 
of 
registration 
application must include all the requirements identified in 
subsection 3 as well as the following: 
(1) 
An audited financial statement, including federal 
Internal Revenue Service 990 and Schedule A forms or a 
EZ 
form. 
Failure to file an audited financial 
statement of the organization's most 
recent audited 
fiscal year may be grounds for disciplinary action as 
provided under Title 10, section 8003, 
subsection 5. 
The office shall adopt rules governing the content of 
the 
audited 
financial 
statement. 
Rules 
adopted 
pursuant to this subparagraph are routine technical 
rules pursuant to Title 5, chapter 375, subchapter 2-A; 
and 
(2) 
The nonrefundable fee for renewal of registration 
plQs---~he---~~~~~--~~~~~---~---~9F---eaa~i~a9le 
9~~aR~Ba~~9Rs--~eee~viR~--ffi9~e--~aaR--$6QTggg--iR--~~9ss 
e9R~~i9Q~i9RS. 
Sec. 9. 9 MRS A §5008. sub-§l. as amended by PL 2003, c. 541, 
§12, is further amended to read: 
1. 
Registration. 
A person or entity may not act as 
a 
professional solicitor, a professional fund-raising counselor a 
commercial 
co-venturer 
before 
that 
person 
or 
entity 
has 
registered with the office. 
Applications for registration or 
reregistration must 
be 
in writing, 
under oath, 
in the 
form 
prescribed by the office and accompanied by an application fee 
and a registration fee. 
The application fee is nonrefundable. 
The applicant, except for applicants that are registering as 
professional· fund-raising counsel, shall, at the time of making 
application for registration or reregistration, file with and 
have approved by the off ice a bond, in which the applicant must 
be the principal obligor and the State the obligee, in the sum of 
$25,000, with one or more responsible sureties whose liability in 
the aggregate as such sureties at least equals that sum. 
The 
bond runs to any person or entity who may have a cause of action 
against the principal obligor of the bond for any malfeasance or 
misfeasance in the conduct of charitable solicitation in this 
State. 
Registration is for a period of one year. 
Sec. 10. 9 MRSA §5008, sub-§I-A, ,C, as enacted by PL 1999, c. 
386, Pt. A, §16, is amended to read: 
c. 
The complete application packet must include: 
(1) 
All forms required in this section; 
(2) 
A Except for professional fund-raising counse1~ 
bond approved by the department in the sum of $25,000 
with one or more responsible sureties whose liability 
in the aggregate as such sureties at least equals that 
sum. 
The 
bond must 
expire 
on 
the stated date of 
expiration and be kept on file in the office for 
years; and 
(3) 
A $200 renewal of registration fee. 
Sec. 11. 9 MRS A §5008. sub-§I-A, ,G is enacted to read: 
G. 
A professional fund-raising counsel who is applying for 
a renewal of registration must submit: 
(1) 
A renewal of registration fee; and 
(2) 
A completed renewal application. 
Sec. 12. 9 MRSA §5017, as enacted by PL 2003, c. 541, §18, is 
amended to read: 
§5017. Denial or refusal to renew registration 
The commissioner may deny or refuse to renew a registration 
under this chapter for fraud, misrepresentation or deception on 
an application or for violation of any provision of statute or 
rule adopted under this chapter. 
SUMMARY 
This bill: 
1. 
Eliminates 
the 
requirement 
that 
professional 
fund-raising counsel carry a $25,000 surety bond; 
2. 
Eliminates the requirement that businesses donating less 
than 
$10,000 
annually 
to 
charitable 
organizations 
become 
registered as commercial co-venturers. 
This will apply the same 
exemption limit to commercial co-venturers as currently applies 
to charitable organizations; 
3. 
Amends the definition of "contribution" by adding an 
exception for money or property received from an organization. 
This will produce the effect of exempting from the registration 
requirement 
individuals 
who 
contract 
with 
charitable 
organizations to provide grant-writing services for the purpose 
of obtaining money or property from organizations; 
4. 
Corrects 
an 
inconsistency between the definition of 
"charitable organization" and the description of entities subject 
to 
the 
registration 
requirements 
applicable 
to 
charitable 
organizations; and 
5. 
Deletes a reference to the financial report filing fee, 
which no longer is charged to charitable organizations receiving 
more than $30,000 annually in gross contributions.