79-11-519 - Powers and duties of district attorneys and county prosecuting attorneys; violations of Sections 79-11-501 through 79-11-529.
§ 79-11-519. Powers and duties of district attorneys and county prosecuting attorneys; violations of Sections 79-11-501 through 79-11-529.
(1) It is the duty of the district attorneys and county prosecuting attorneys of this state to prosecute all violations of the provisions of Sections 79-11-501 through 79-11-529. In addition, actions for violations of Sections 79-11-501 through 79-11-529 may be prosecuted by the Attorney General.
(2) Sections 79-11-501 through 79-11-529 shall not be construed to limit or restrict the exercise of the powers or the performance of the duties of the Attorney General which he otherwise is authorized to exercise or perform under any other provision of law by statute or otherwise except the rendering of interpretative opinions in accordance with Section 79-11-503 which shall be limited to the Secretary of State.
(3) It shall be a violation of Sections 79-11-501 through 79-11-529 for any person:
(a) To misrepresent:
(i) The purpose or beneficiary of a solicitation;
(ii) The purpose or nature of a charitable organization; or
(iii) That any other person sponsors or endorses a solicitation.
(b) To use or exploit the fact of registration so as to lead the public to believe that such registration constitutes an endorsement or approval by the state;
(c) To use the name of a charitable organization, or to display any emblem, device or printed matter belonging to or associated with a charitable organization without the express written permission of the charitable organization;
(d) To make any false or misleading statement on any document required by Sections 79-11-501 through 79-11-529 or any rule or order thereunder;
(e) To fail to comply with the requirements of Sections 79-11-501 through 79-11-529 or any rule or order thereunder;
(f) To commit any unfair or deceptive act or practice; to employ any device, scheme or artifice to defraud; to engage in any act, practice or course of business which operates or would operate as a fraud or deceit upon any person; or to obtain money or property by means of any false pretense, representation or promise;
(g) To fail to provide complete and timely payment to a charitable organization of the proceeds from a solicitation campaign or a charitable sales promotion;
(h) To make any false or misleading statements in the solicitations of contributions in this state or to omit to state any fact necessary in order to make the statements made, in light of the circumstances under which they are made, not misleading;
(i) To refuse or fail, after notice, to produce any records required to be kept under Sections 79-11-501 through 79-11-529, or any rule or order promulgated thereunder;
(j) To benefit, directly or indirectly, from any transaction in which an economic benefit is provided by a charitable organization where the value of the benefit provided by the organization exceeds the fair market value of the consideration received by the organization.
(4) It shall be a violation of Sections 79-11-501 through 79-11-529 for any charitable organization:
(a) To engage in any financial transaction which is not related to the accomplishment of a charitable purpose, or which jeopardizes or interferes with the ability of the charitable organization to accomplish a charitable purpose;
(b) To expend an unreasonable amount of money for solicitation or management;
(c) To use the name which is the same as or confusingly similar to the name of another charitable organization unless the latter organization shall consent in writing to its use;
(d) To represent itself as being associated with another charitable organization without the express written acknowledgment and endorsement of such other charitable organization;
(e) To use the services of an unregistered professional fund-raiser or fund-raising counsel or professional solicitor;
(f) To fail to comply with any provisions of Sections 79-11-501 through 79-11-529 or any rule or order thereunder;
(g) To employ as an officer, director, partner, employee, agent or volunteer, any person who has accrued three (3) or more unremediated citations issued by the Secretary of State pursuant to Section 79-11-509;
(h) To employ as an officer, director, partner, employee or agent any person who has been convicted of a felony or misdemeanor involving misrepresentation, misapplication or misuse of the money or property of another, in a capacity where that person has access to or control over the funds of the charitable organization;
(i) To employ as an officer, director, partner, employee, volunteer or agent any person who has been convicted under federal or state law of any criminal offense involving acts against children, where such position will bring the person into close contact with children; or
(j) To apply the charitable organization's funds or assets for private inurement or excess benefits which exceed the fair market value of the property or services received in return from directors, officers, or those persons who are deemed disqualified persons or insiders under applicable federal law for tax-exempt organizations.
(5) It shall be a violation of Sections 79-11-501 through 79-11-529 for any professional fund-raiser, professional fund-raising counsel or any professional solicitor:
(a) To perform any services on behalf of an unregistered charitable organization; or
(b) To fail to comply with any provisions of Sections 79-11-501 through 79-11-529 or any rule or order thereunder.
(6) It shall be a violation of Sections 79-11-501 through 79-11-529 for any person, in connection with a public safety organization solicitation:
(a) To use any representation that implies that the contribution is for or on behalf of a public safety agency or a public safety organization, or using any emblem, device, or printed matter belonging to or associated with a public safety agency or organization, unless authorized in writing to do so by the agency or organization;
(b) To use a name, symbol, or statement that is similar to that used by a public safety agency or organization in a manner that is intended to confuse or mislead a person being solicited;
(c) To represent or imply that the solicitor is a peace officer or member of a public safety agency or public safety organization if the solicitor is not;
(d) To solicit for a public safety organization, independent promoter, public safety publication, or cause by representing that those who respond affirmatively to the solicitation will receive favored treatment by public safety personnel; or
(e) To fail to comply with any provisions of Sections 79-11-501 through 79-11-529 or any rule or order thereunder.
(7) A misrepresentation may be accomplished by words or conduct or failure to disclose a material fact. Regardless of a person's intent or the lack of injury, the above acts and practices are prohibited in the planning, conduct or execution of any solicitation or charitable sales promotion.
(8) The Secretary of State or the Attorney General may exercise the authority granted in this section against any charitable organization or person which or who operates under the guise or pretense of being an organization exempted by the provisions of Section 79-11-505, and is not in fact an organization entitled to such an exemption.
Sources: Laws, 1991, ch. 515, § 10; reenacted and amended, 1992, ch. 446, § 10; Laws, 1997, ch. 444, § 12; Laws, 2009, ch. 547, § 11, eff from and after July 1, 2009.