An Act To Amend the Laws Governing Charitable Solicitations
Maine Legislature, Session 126, LD 1799
Committee: Labor, Commerce, Research and Economic Development
Sponsors: FOWLE, KATZ, HICKMAN, WILSON
Amends: 9 MRSA §5002, 9 MRSA §5003, 9 MRSA §5004, 9 MRSA §5005-A, 9 MRSA §5005-B, 9 MRSA §5006, 9 MRSA §5008-A, 9 MRSA §5008-B, 9 MRSA §5009

Legislative Document 
No. 1799 
H.P. 1291 
House of Representatives, March 4, 2014 
An Act To Amend the Laws Governing Charitable Solicitations 
(AFTER DEADLINE) 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
205. 
Reference to the Committee on Labor, Commerce, Research and Economic Development 
suggested and ordered printed. 
MILLICENT M. MacFARLAND 
Clerk 
Presented by Representative FOWLE of Vassalboro. 
Cosponsored by Senator KATZ of Kennebec and 
Representatives: HICKMAN of Winthrop, WILSON of Augusta. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  9 MRSA §5002, as amended by PL 2013, c. 313, §1, is further amended to 
read: 
§5002.  Intent 
It is the intent of the Legislature to require the licensure and, financial reporting of 
charitable organizations, professional solicitors and professional fund-raising counsel and 
the bonding of professional solicitors. 
Sec. 2.  9 MRSA §5003, sub-§1, as amended by PL 2003, c. 541, §1, is further 
amended to read: 
1.  Charitable organization.  "Charitable organization" means any person or entity, 
including any person or entity organized in a foreign state, that is or holds itself out to be 
organized or operated for any charitable purpose or that solicits, accepts or obtains 
contributions from the public for any charitable purpose and by any means, including, but 
not limited to, personal contact, telephone, mail, newspaper advertisement, television or 
radio.  Status as a tax-exempt entity does not necessarily qualify that entity as a charitable 
organization.  A chapter, branch, area office or similar affiliate or any person soliciting 
contributions for any charitable purpose within the State for a charitable organization that 
has its principal place of business outside the State is considered a charitable organization 
for the purposes of this Act.  For purposes of this chapter, an organization established for 
and serving bona fide religious purposes is not a charitable organization. 
Sec. 3.  9 MRSA §5003, sub-§4-C, as enacted by PL 2013, c. 60, §1, is repealed. 
Sec. 4.  9 MRSA §5003, sub-§5, as enacted by PL 1977, c. 488, §1, is repealed. 
Sec. 5.  9 MRSA §5003, sub-§5-C, as amended by PL 1999, c. 386, Pt. A, §5, is 
repealed. 
Sec. 6.  9 MRSA §5003, sub-§6, as enacted by PL 1977, c. 488, §1, is repealed. 
Sec. 7.  9 MRSA §5003, sub-§8, as amended by PL 2013, c. 313, §8, is further 
amended to read: 
8.  Principal officer.  "Principal officer" means the president, chair, executive 
director or other officer or employee responsible for the daily operation of a charitable 
organization, a professional solicitor or professional fund-raising counsel. 
Sec. 8.  9 MRSA §5003, sub-§9, as amended by PL 2011, c. 286, Pt. A, §2, is 
repealed. 
Sec. 9.  9 MRSA §5004, as amended by PL 2013, c. 313, §9, is repealed. 
Sec. 10.  9 MRSA §5005-A, as repealed and replaced by PL 2013, c. 313, §10, is 
repealed. 
Sec. 11.  9 MRSA §5005-B, as amended by PL 2013, c. 313, §11, is repealed. 
Sec. 12.  9 MRSA §5006, as amended by PL 2013, c. 313, §§12 to 14, is repealed. 
Sec. 13.  9 MRSA §5008-A, as enacted by PL 2013, c. 313, §17, is amended to 
read: 
§5008-A.  Licensure, license renewal and records kept by professional solicitors 
1.  Initial licensure.  A person or entity may not act as a professional solicitor or 
professional fund-raising counsel before that person or entity has received a license from 
the director.  A professional solicitor or professional fund-raising counsel shall apply for 
initial licensure by filing a license application with the director and, paying the 
application and license fees as set under section 5015-A. A professional solicitor, in 
addition, shall submit and submitting the bond required by subsection 5. 
2.  Content of application for initial licensure.  A license application must be 
sworn to or affirmed by the principal officer of the professional solicitor or professional 
fund-raising counsel on a form prescribed by the director and must contain the following 
information: 
A.  The name, mailing address and license number of each charitable organization on 
whose behalf the professional solicitor or professional fund-raising counsel acts or 
will act in connection with fund-raising campaigns for contributions from the State's 
residents; 
B.  A list of all jurisdictions in which the professional solicitor or professional fund-
raising counsel is authorized to solicit contributions; 
C.  Disclosure of, and the final disposition document pertaining to, any disciplinary 
action taken against the applicant by a licensing, registration or regulatory authority 
in any jurisdiction; 
D.  Disclosure of, and the final disposition document pertaining to, any court action 
taken against the applicant by a licensing, registration or regulatory authority or law 
enforcement agency in any jurisdiction that resulted in a restraining order, injunction, 
civil judgment, criminal conviction, consent judgment, consent agreement, agreement 
to pay restitution or investigative costs or any other type of negotiated disposition; 
and 
E.  Other information as the director may require. 
3.  Renewal of licensure as a professional solicitor.  A license issued by the director 
to a professional solicitor or professional fund-raising counsel expires on November 30th 
annually or such other time as the director may designate. A professional solicitor or 
professional fund-raising counsel shall apply for renewal by filing a renewal application 
with the director prior to the expiration date and, paying the license fee as set under 
section 5015-A. A professional solicitor shall, in addition, submit and submitting the 
bond required by subsection 5. 
4.  Content of renewal application.  A renewal application pursuant to subsection 3 
must contain the following information: 
A.  The annual fund-raising activity report required by section 5008-B; 
B.  Disclosure of, and the final disposition document pertaining to, any disciplinary 
action taken against the licensee by a licensing, registration or regulatory authority in 
any jurisdiction since the date of the most recent application submitted by the 
professional solicitor or professional fund-raising counsel; 
C.  Disclosure of, and the final disposition document pertaining to, any court action 
taken against the licensee by a licensing, registration or regulatory authority or law 
enforcement agency in any jurisdiction that resulted in a restraining order, injunction, 
civil judgment, criminal conviction, consent judgment, consent agreement, agreement 
to pay restitution or investigative costs or any other type of negotiated disposition 
since the date of the most recent application submitted by the professional solicitor or 
professional fund-raising counsel; 
D.  Any changes to the information contained in the licensee's application for initial 
licensure or the most recent renewal application; and 
E.  Other information as the director may require. 
5.  Bonding of professional solicitors.  An applicant for initial or renewal licensure 
as a professional solicitor shall submit with the application a bond approved by the 
director in which the professional solicitor is 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 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 that occurs during the 
term of the license applied for. 
6.  Late renewal.  A license may be renewed up to 90 days after the date of its 
expiration upon payment of a late fee in addition to the renewal fee as set under section 
5015-A. 
7.  Change of information.  As an ongoing condition of licensure, a professional 
solicitor or professional fund-raising counsel must notify the director of a change to the 
information contained in the licensee's application for initial or renewal licensure, 
including any additional disciplinary or court action taken against the licensee, within 10 
days of the change. 
8.  Records.  A professional solicitor or professional fund-raising counsel shall 
maintain accurate and complete books and records of fund-raising activities and 
telephone solicitation scripts and shall keep those books and records available for 
inspection by or production to the Attorney General or the director for a period of 3 years 
after the conclusion of each specific instance in which that person or entity acts as a 
professional solicitor or professional fund-raising counsel. 
Sec. 14.  9 MRSA §5008-B, as enacted by PL 2013, c. 313, §17, is amended to 
read: 
§5008-B.  Annual fund-raising activity reports to be filed by professional solicitors 
1.  Content of report.  A professional solicitor or professional fund-raising counsel 
licensed pursuant to section 5008-A shall submit to the director an annual fund-raising 
activity report that reflects data from the licensee's preceding fiscal year, on a form 
prescribed by the director, as part of its application for license renewal. The report must 
state, at a minimum, the following: 
A.  The name, mailing address, telephone number and license number of the licensee 
making the report; 
B.  The name, mailing address, and telephone number and license number of each 
charitable organization with which the licensee contracted to solicit contributions in 
this State or to plan, manage, advise or provide consultation services with respect to 
the solicitation of contributions in this State; 
C.  The total dollar amount of contributions raised in this State during each fund-
raising campaign and for the year; 
D.  The total dollar amount of contributions raised in this State that was actually 
received and retained by the charitable organization from each fund-raising campaign 
and for the year; and 
E.  The total dollar amount attributable to contributions raised in this State that was 
retained by or paid to the licensee from each fund-raising campaign and for the year. 
2.  Failure to file; discrepancies.  Failure to file the annual fund-raising activity 
report required under this section or filing a report that contains discrepancies between 
that report and the report submitted by the charitable organization with which the 
professional solicitor or professional fund-raising counsel has contracted may result in 
disciplinary action as provided under Title 10, section 8003, subsection 5-A. To resolve a 
disagreement between reports, the director may require the professional solicitor or 
professional fund-raising counsel to submit an annual fund-raising activity report 
according to a fiscal year other than the professional solicitor's or professional 
fund-raising counsel's fiscal year. 
3.  Contracting with unlicensed charitable organization.  A person may not 
contract with an unlicensed charitable organization for the solicitation of funds from the 
State's residents.  A violation of this subsection may result in disciplinary action as 
provided under Title 10, section 8003, subsection 5-A. 
Sec. 15.  9 MRSA §5009, as repealed and replaced by PL 2013, c. 313, §18, is 
amended to read: 
§5009.  Retention of contracts 
All contracts entered into between a professional solicitor or professional 
fund-raising counsel and a charitable organization, whether or not the organization is 
exempted under section 5006, must be in writing. 
Contracts must be kept on file in the offices of the charitable organization and the 
professional solicitor or professional fund-raising counsel during the term of the contract 
and for 3 years after the date of solicitation of contributions provided for in the contract 
and must be made available for inspection by or production to the Attorney General or 
the director during that time. 
SUMMARY 
This bill amends the Charitable Solicitations Act to limit the scope and application of 
the Act to professional solicitors, which are persons or entities that solicit contributions 
from the public on behalf of a charitable organization in exchange for a fee or other 
remuneration, thus excluding from regulation those persons who solicit donations on 
behalf of a charitable organization without remuneration.  As in current law, an 
employee, salaried officer, attorney, accountant or investment officer of a charitable 
organization is not considered a professional solicitor.  This bill also changes the 
definition of "charitable organization" to remove the exclusion of organizations serving 
religious purposes; the effect of this change is that a professional solicitor is subject to 
regulation under the Act, regardless of the charitable organization for which donations are 
being solicited.