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ROBERT L. EHRLICH, JR., Governor
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Ch. 459
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FOR the purpose of altering provisions of the Maryland Charitable Solicitations Act
to require a charitable organization to be in total compliance prior to soliciting
the public; authorizing a noncompliant applicant for registration to request a
hearing with the Secretary of State under certain circumstances; establishing
the burden of proof in a court proceeding based on a certain appeal by a
charitable organization; altering the enforcement provisions of the Act; altering
the type of charitable solicitation that is required to contain a disclosure
statement; and generally relating to the Maryland Charitable Solicitations Act.
BY repealing and reenacting, with amendments,
Article - Business Regulation
Section 6-401, 6-404, 6-406, and 6-411(b)(l)
Annotated Code of Maryland
(2004 Replacement Volume and 2005 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:
Article - Business Regulations
6-401.
(a) A charitable organization shall [submit a registration statement to]
REGISTER AND RECEIVE A REGISTRATION LETTER FROM the Secretary of State
before the charitable organization:
(1) solicits charitable contributions in the State;
(2) has charitable contributions solicited on its behalf in the State; or
(3) solicits charitable contributions outside of the State, if the charitable
organization is in the State.
(b) A separate registration statement [shall be submitted by each] AND A
REGISTRATION LETTER IS NECESSARY BEFORE ANY OF THE FOLLOWING charitable
[organization that is] ORGANIZATIONS CAN SOLICIT:
(1) a federated fund-raising organization consisting of independent
charitable organizations, including a united fund and a community chest, that:
(i) have joined to solicit charitable contributions and distribute
them among themselves; but
(ii) keep their own operating authority and control; or
(2) an independent charitable organization, including one that is a
member of a federated fund-raising organization, unless it is specifically exempted or
it does not solicit charitable contributions other than as a member of a federated
fund-raising organization.
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- 2357 -
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