WILLIAM DONALD SCHAEFER, Governor                         Ch. 386

6-102.

(c) (1) [A] EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION,
A charitable organization is exempt from the requirements of this title if the charitable
organization:

[(1)](I) does not employ a professional solicitor; and

[(2) (i)] (II) 1. solicits charitable contributions for a named individual
and the gross amount is delivered to the individual;

[(ii)]2. is exempt from federal tax and is a religious organization, a
parent organization of a religious organization, or a school affiliated with a religious
organization;

[(iii)] 3. solicits charitable contributions only from its members; or

[(iv)] 4. does not receive more than $25,000 in charitable
contributions from the public during the year for which a registration statement and
annual report otherwise would be required, if:

[1.] A. all its charitable solicitations are done by volunteers;
and

[2.] B. no part of its assets or income inures to the benefit of
or is paid to an officer or member of the charitable organization.

(2) (I) A CHARITABLE ORGANIZATION CLAIMING EXEMPTION UNDER
PARAGRAPH (1) OF THIS SUBSECTION SHALL SUBMIT EVIDENCE OF ITS
ENTITLEMENT TO AN EXEMPTION UPON REQUEST OF THE SECRETARY OF STATE.

(II) A CHARITABLE ORGANIZATION THAT FAILS TO SUBMIT
EVIDENCE SATISFACTORY TO THE SECRETARY OF STATE UNDER SUBPARAGRAPH
(I) OF THIS PARAGRAPH IS NOT EXEMPT FROM THE REQUIREMENTS OF THIS TITLE.

6-205.

(a)     (1) The Secretary of State may investigate an alleged violation of this title.

(2) (I) IN THE COURSE OF ANY EXAMINATION, INVESTIGATION, OR
HEARING, THE SECRETARY OF STATE MAY SUBPOENA WITNESSES, ADMINISTER
OATHS, EXAMINE AN INDIVIDUAL UNDER OATH, AND COMPEL PRODUCTION OF
RECORDS, BOOKS, PAPERS, AND OTHER DOCUMENTS.

(II) INFORMATION OBTAINED UNDER THIS SUBSECTION IS NOT
ADMISSIBLE IN A SUBSEQUENT CRIMINAL PROCEEDING AGAINST THE PERSON WHO
PROVIDED THE INFORMATION.

(b)     If the Secretary of State finds that a charitable organization or charitable
representative has violated this title, the Secretary of State may take 1 or more of the
following actions:

(1) [revoke the registration of the violator;

- 2105 -