December 17, 2009, Introduced by Reps. Clemente and Hansen and referred to the Committee on Commerce.
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. Unless the person is a charitable organization, 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; what percentage of that property or those proceeds that
charitable organization receives; the name, address, and telephone
number of any other person that receives any of that property or
those proceeds; and what percentage of that property or those
proceeds that person receives.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No.____ or House Bill No. 5716(request no.
05346'09) of the 95th Legislature is enacted into law.