§ 131F-5. Licensure of charitable organizations and sponsors required.
Article 2.
Charitable Organizationsand Sponsors.
§ 131F‑5. Licensure ofcharitable organizations and sponsors required.
(a) License Required. Unless exempted under G.S. 131F‑3, a charitable organization, sponsor, orperson that intends to solicit contributions in this State, to have fundssolicited on its behalf, or to participate in a charitable sales promotion orsponsor sales promotion shall obtain a license by filing an application withthe Department, obtaining approval of that application by the Department, andpaying the applicable fee.
(b) DepartmentalReview. The Department shall examine each application filed by a charitableorganization or sponsor and shall determine whether the licensing requirementsare satisfied. If the Department determines that the requirements are notsatisfied, the Department shall notify the charitable organization or sponsorwithin 10 days after its receipt of the application. If the Department does notnotify the charitable organization or sponsor within 10 days, the applicationis deemed to be approved and the license shall be granted. Within seven daysafter receipt of a notification that the requirements are not satisfied, thecharitable organization or sponsor may file a petition for a contested case.The State has the burden of proof in the contested case. The contested casehearing must be held within seven days after the petition is filed. Arecommended decision must be made within three days of the hearing. A finaldecision must be made within two days after the recommended decision. Thecontested case hearing proceedings shall be conducted in accordance withChapter 150B of the General Statutes except that the time limits and provisionsset forth in this section shall prevail to the extent of any conflict. Theapplicant shall be permitted to continue to operate or continue operationspending judicial review of the Department's denial of the application. TheDepartment shall make rules regarding the custody and control of any fundscollected during the review period and disposal of such funds in the event thedenial of the application is affirmed on appeal.
(c) License Renewal. The license shall be renewed on an annual basis. Any change in information fromthe original application for a license shall be filed annually on or before thefifteenth day of the fifth calendar month after the close of each fiscal yearin which the charitable organization or sponsor solicited in this State, or bythe date of any applicable extension of the federal filing date, whichever islater, provided that extensions given under this section shall not exceed threemonths after the initial renewal date or eight months after the conclusion ofthe year for which financial information is due at the time of renewal. Acharitable organization or sponsor whose federal filing date has been extendedshall, within seven days after receipt, forward a copy of the document grantingthe extension to the Department.
(d) Extension of Time. For good cause shown, the Department may extend the time for the licenserenewal and the annual filing of updated information for a period not to exceed60 days, during which time the previous license shall remain in effect. (1981,c. 886, s. 1; 1985, c. 497, s. 3; 1987, c. 827, ss. 1, 239; 1989, c. 566, s. 1;1993 (Reg. Sess., 1994), c. 759, s. 2.)