MARVIN MANDEL, Governor                             1863

Article 41 — Governor — Executive and

Administrative Departments
Section 103A through 103E
Annotated Code of Maryland
(1971 Replacement Volume and 1975 Supplement)

BY repealing

Article 56 — Licenses

Section 282 through 289

Annotated Code of Maryland

(1972 Replacement Volume and 1975 Supplement)

BY adding to

Article 41 — Governor - Executive and

Administrative Departments
Section 103A through 103L
Annotated Code of Maryland
(1971 Replacement Volume and 1975 Supplement)

Preamble

Whereas, the original bills proposing legislation to
regulate charitable organizations were introduced in the
1975 Session as a result of impetus coming from several
television stations and newspapers, published programs,
and articles alleging that various organizations
soliciting funds from the public had excessively high
administrative and other expenses, which resulted in a
relatively small portion of the contributions collected
being used for their intended purpose.

Under existing law there are two basic statutes
dealing with charitable organizations. Article 41,
Sections 103A through 103E requiring the filing of
certain information with the Secretary of State prior to
beginning solicitation, and to file a financial report
with the Secretary of State at the close of its fiscal
year. These sections, although imposing a criminal
penalty to the violation of these provisions, have no
civil enforcement provisions and many charities are
exempt.

Article 56, Sections 282 through 289, require annual
licenses for paid solicitors, but no provisions
regulating these activities and again many charities are

exempt.

The Governor on August 16, 1974 created a Commission
on Charitable Organizations to examine the existing
statutes and to make recommendations. The Commission
concluded its work and found that the present laws were
inadequate and recommended the original bills (SB 287, HB