Arkansas Code of 1987 (2023) › Title 4 - BUSINESS AND COMMERCIAL LAW (§§ 4-1-101 — 4-119-105) › Subtitle 3 - CORPORATIONS AND ASSOCIATIONS (§§ 4-25-101 — 4-38-1203) › Chapter 28 - NONPROFIT ORGANIZATIONS (§§ 4-28-101 — 4-28-636) › Subchapter 4 - SOLICITATION OF CHARITABLE CONTRIBUTIONS (§§ 4-28-401 — 4-28-418) › Section 4-28-407 - Paid solicitors - Registration, fees, and bond - Filing of contracts - Solicitation notice - Contract requirements - Prohibited practices - Records - Deposit of funds

(a)
(1)
A person shall not act as a paid solicitor unless he or she has first registered with the Secretary of State.
(2)
Applications for registration shall be submitted:
(A)
In writing;
(B)
In the form prescribed by the Secretary of State; and
(C)
Accompanied by a fee in the amount of two hundred dollars ($200) at the time of registration.
(3)
Each registration is valid for one (1) year and may be renewed for additional one-year periods.
(b)
(1)
An applicant for registration as a paid solicitor at the time of making the application shall file with and have approved by the Secretary of State a bond in which the applicant shall be the principal obligor in the sum of ten thousand dollars ($10,000), with one (1) or more responsible sureties whose liability in the aggregate as the sureties shall be no less than that sum.
(2)
(A)
The bond shall run to the Secretary of State and the Attorney General for the use of the state and to any person, including a charitable organization, that may have a cause of action against the paid solicitor for any liabilities resulting from the paid solicitor's conduct of any activities in violation of this subchapter or arising out of a violation of this subchapter or any rule adopted under this subchapter, including any actions arising under this subchapter that give rise to a violation of the Deceptive Trade Practices Act, §
4-88-101
et seq.
(B)
However, the aggregate liability of the surety to the state and to all other persons, including charitable organizations, shall not exceed the sum of the bond.
(c)
At least fifteen (15) days before the commencement of each solicitation campaign, a paid solicitor shall file with the Secretary of State a copy of the contract described in subsection (d) of this section.
(d)
A contract between a paid solicitor and a charitable organization shall:
(1)
Be in writing;
(2)
Clearly state the respective obligations of the paid solicitor and the charitable organization, including the compensation or remuneration to be paid by the charitable organization to the paid solicitor; and
(3)
Require delivery of the names and addresses of all persons making contributions and the amounts thereof to the charitable organization.
(e)
(1)
A paid solicitor shall not represent that any part of the contributions received will be given or donated to any charitable organization unless the organization has consented in writing to the use of its name before the solicitation campaign.
(2)
The written consent shall be signed by an authorized officer, director, or trustee of the charitable organization.
(f)
(1)
A paid solicitor shall not represent that tickets to an event are to be donated for use by another person unless the paid solicitor has first obtained a commitment in writing from a charitable organization stating that it will accept donated tickets and specifying the number of tickets that it will accept and provided no more contributions for donated tickets shall be solicited than the number of ticket commitments received from the charitable organization.
(2)
A charitable organization shall not commit to accept more donated tickets than it can reasonably expect to use.
(3)
Donated tickets shall be used according to the representations made to the consumer at the time of solicitation.
(g)
A paid solicitor shall require any person he or she employs, procures, or engages to solicit to comply with the provisions of subsections (e) and (f) of this section.
(h)
(1)
A paid solicitor shall file a financial report for a solicitation campaign with the Secretary of State no more than ninety (90) days after a solicitation campaign has been completed and on the anniversary of the commencement of any solicitation campaign which lasts more than one (1) year.
(2)
The financial report shall include gross revenue and an itemization of all expenditures incurred and the amount of moneys ultimately remitted to the charitable organization absent payment of any fees or costs to the paid solicitor.
(3)
The report shall be completed on a form prescribed by the Secretary of State.
(4)
An authorized official of the paid solicitor and two (2) authorized officials of the charitable organization shall sign the report, and they shall certify, under oath, that the report is true and complete to the best of their knowledge.
(i)
A paid solicitor shall maintain during each solicitation campaign and for at least five (5) years after the completion of each solicitation campaign the following records, which shall be available to the Secretary of State and the Attorney General for inspection upon request:
(1)
The name and residence of each employee, agent, or other person involved in the solicitation campaign;
(2)
Records of all income received and expenses incurred in the course of the solicitation campaign; and
(3)
The names and addresses of all persons making contributions and the amounts thereof.
(j)
If a paid solicitor sells tickets to an event and represents that tickets will be donated for use by another, the paid solicitor shall maintain for at least five (5) years after the completion of the event the following record, which shall be available to the Secretary of State and the Attorney General for inspection upon request:
(1)
The name and address of all organizations receiving donated tickets for use by others; and
(2)
The number of tickets received by each organization.
(k)
Each contribution in the control or custody of the paid solicitor shall, in its entirety and within five (5) days of its receipt, be deposited, maintained, and administered in an account in a bank or other federally insured financial institution that shall be in the name of the charitable organization and over which that charitable organization has sole control over all withdrawals.
(l)
Any material change in any information filed with the Secretary of State pursuant to this section shall be reported in writing by the paid solicitor to the Secretary of State not more than thirty (30) days after the change occurs.
(m)
All records required under this section shall be open to inspection, examination, and copying during usual and customary business hours by the Secretary of State and the Attorney General or other authorized agencies.
Amended by Act 2017, No. 727,§ 6, eff. 1/1/2018.
Acts 1999, No. 1198, § 7.