HB-5717, As Passed Senate, September 22, 2010

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 5717

     A bill to amend 1975 PA 169, entitled

"Charitable organizations and solicitations act,"

by amending section 2 (MCL 400.272) and by adding section 19.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 2. As used in this act:

     (a) "Charitable organization" means a benevolent, educational,

philanthropic, humane, patriotic, or eleemosynary organization of

persons which that solicits or obtains contributions solicited from

the public for charitable purposes. A chapter, branch, area office,

or similar affiliate or person soliciting contributions within the

state for a charitable organization which that has its principal

place of business outside the state is a charitable organization.

This definition The term does not include a duly constituted

religious organizations organization or a group affiliated with and

forming an integral part of a religious organization no part of the

if none of its net income of which inures to the direct benefit of

any individual and if it has received a declaration of current tax

exempt status from the United States . The affiliated group shall

not be required to obtain a declaration if the if it is a religious

organization or it or its parent or principal organization has

obtained tax exempt status if it is an affiliated group. Charitable

organization does not include a candidate or a committee as defined

in section 901 of Act No. 116 of the Public Acts of 1954, being

section 168.901 of the Michigan Compiled Laws, as those terms are

defined in section 3 of the Michigan campaign finance act, 1976 PA

388, MCL 169.203, or a political party qualified to be on the

general election ballot pursuant to under section 560a of Act No.

116 of the Public Acts of 1954, as added, being section 168.560a of

the Michigan Compiled Laws. the Michigan election law, 1954 PA 116,

MCL 168.560a.

     (b) "Clothing donation box" means a receptacle in which a

person may place clothing or other items of personal property he or

she intends to donate to a charitable organization and that has a

capacity of at least 27 cubic feet.

(c) (b) "Contribution" means the a promise, grant, or payment

of money or property of any kind or value, including promises a

promise to pay, except payments by members of an organization for

membership fees, dues, fines, or assessments, or for services

rendered to individual members, if membership in the organization

confers a bona fide right, privilege, professional standing, honor,

or other direct benefit, other than the right to vote, elect

officers, or hold offices, and except money or property received

from a governmental authority or foundation restricted as to use.

(d) (c) "Person" means an individual, organization, group,

association, partnership, corporation, limited liability company,

trust, any other legal entity, or any combination of them legal

entities.

     (d) "Soliciting material" means printed or similar material,

including but not limited to labels, posters, television scripts,

radio scripts, or recordings used in soliciting funds from the

public.

     (e) "Solicitor" means a person who solicits on behalf of a

charitable organization.

(e) (f) "Professional fund raiser" means a person who for

compensation or other consideration plans, conducts, manages, or

carries on a drive or campaign of soliciting contributions for or

on behalf of a charitable organization, religious organization, or

any other person in exchange for compensation or other

consideration; or who engages in the business of or holds himself

or herself out as independently engaged in the business of

soliciting contributions for such those purposes. A The term does

not include a bona fide officer or employee of a charitable

organization is not a professional fund raiser unless his or her

salary or other compensation is computed on the basis of funds to

be raised or actually raised. The term includes a person that is

not a charitable organization and that owns or operates a clothing

donation box if any of the following are met:

     (i) The person represents or implies to any person that

personal property placed in the clothing donation box or the

proceeds of that property will be donated to 1 or more charitable

organizations.

     (ii) The person represents or implies to any person that he or

she is using the clothing donation box to solicit contributions on

behalf of 1 or more charitable organizations.

     (iii) The clothing donation box or any sign near the clothing

donation box is marked with the name, logo, trademark, or service

mark of 1 or more charitable organizations or is otherwise marked

in any manner that represents or implies that personal property

placed in the donation box or the proceeds of that property will be

donated to 1 or more charitable organizations.

(f) (g) "Professional solicitor" means a person who is

employed or retained for compensation by a professional fund raiser

to solicit contributions for charitable purposes.

(g) (h) "Prohibited transaction" is that any dealing,

activity, conduct, administration, or management of the a

charitable organization or by any of its officers, trustees,

personnel, or related persons which that may be prohibited as

constituting activity contrary to proper administration of the

charitable organization or conduct of a fund raising campaign or

solicitation by a professional fund raiser, professional solicitor,

or solicitor.

     (h) "Soliciting material" means printed or similar material

used to solicit money from the public, including, but not limited

to, any labels, posters, television scripts, radio scripts, or

recordings used for that purpose.

     (i) "Solicitor" means a person who solicits on behalf of a

charitable organization.

     Sec. 19. (1) Subject to subsection (2), a person that owns or

operates a clothing donation box or that receives any of the

personal property placed in a clothing donation box or proceeds of

that personal property shall not do any of the following:

     (a) Fail or neglect to maintain a current license under this

act at any time the clothing donation box is accessible to the

public.

     (b) Mark the clothing donation box or any sign near the

clothing donation box in any manner that represents or implies that

personal property placed in the clothing donation box, or the

proceeds of that personal property, is donated to 1 or more

charitable organizations if it is not.

     (c) Display the name, logo, trademark, or service mark of a

charitable organization on a clothing donation box or on any sign

near the clothing donation box if that charitable organization does

not receive any of the personal property placed in the clothing

donation box or any of the proceeds of that personal property.

     (d) If charitable organizations receive some but not all of

the personal property placed in the clothing donation box or the

proceeds of that personal property, fail or neglect to clearly and

conspicuously disclose on the donation box or on a sign at the

donation box the name, address, and telephone number of each

charitable organization that receives any of that property or those

proceeds and the name, address, and telephone number of any other

person that receives any of that property or those proceeds.

     (2) Subsection (1) does not apply to any person that is exempt

from the licensing and financial statement requirements of this act

under section 13.

     Enacting section 1. This amendatory act does not take effect

unless House Bill No. 5716 of the 95th Legislature is enacted into

law.