0001|
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0002| HOUSE BILL 558
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0003| 43rd legislature - STATE OF NEW MEXICO - first session, 1997
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0004| INTRODUCED BY
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0005| DANICE PICRAUX
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0006|
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0007|
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0008|
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0009|
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0010|
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0011| AN ACT
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0012| RELATING TO CHARITIES; REQUIRING CHARITABLE ORGANIZATIONS AND
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0013| PROFESSIONAL FUNDRAISERS TO MEET CERTAIN REQUIREMENTS AND
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0014| STANDARDS OF CONDUCT; PROVIDING FOR INVESTIGATIVE DEMANDS;
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0015| PRESCRIBING PENALTIES; AMENDING AND ENACTING SECTIONS OF THE
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0016| NMSA 1978.
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0017|
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0018| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0019| Section 1. Section 57-22-1 NMSA 1978 (being Laws 1983,
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0020| Chapter 140, Section 1) is amended to read:
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0021| "57-22-1. SHORT TITLE. [This act] Chapter 57, Article
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0022| 22 NMSA 1978 may be cited as the "Charitable [Organizations
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and] Solicitations Act"."
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0024| Section 2. Section 57-22-2 NMSA 1978 (being Laws 1983,
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0025| Chapter 140, Section 2) is amended to read:
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0001| "57-22-2. PURPOSE. [Whereas charitable organizations
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which have been granted tax-exempt status are required to serve
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the public interest.] The purpose of the Charitable
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0004| [Organizations and] Solicitations Act is to authorize the
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0005| attorney general to monitor, supervise and enforce the
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0006| charitable purposes of [those] charitable organizations and
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0007| professional fundraisers operating in this state."
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0008| Section 3. Section 57-22-3 NMSA 1978 (being Laws 1983,
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0009| Chapter 140, Section 3) is amended to read:
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0010| "57-22-3. DEFINITIONS.--As used in the Charitable
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0011| [Organizations and] Solicitations Act:
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0012| A. "charitable organization" means [any trust or
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nonprofit corporation which:
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(1) has applied for or has received tax-exempt
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status under Section 501(c)(3) of the Internal Revenue Code;
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and
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(2) does business in this state or holds
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property in this state for charitable purposes] a person,
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0019| including all chapters, branches, local offices or affiliates
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0020| of such person, who solicits for a charitable purpose in or
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0021| from this state;
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0022| B. "charitable purpose" means any purpose for which
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0023| a charitable organization has been established to promote,
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0024| directly or indirectly, the well-being of the public at large
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0025| or the benefit of an indefinite number of persons;
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0001| C. "contribution" means the promise or grant of
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0002| money or property whether or not for merchandise or rights of
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0003| any other description when the promise or grant is made in
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0004| response to a suggestion or representation that the whole or
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0005| any part of the price, value or amount will be applied to a
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0006| charitable purpose;
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0007| [C.] D. "educational institution" means a
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0008| school, college or other institution with a defined curriculum,
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0009| student body and faculty, conducting classes on a regular
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0010| basis;
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0011| E. "person" means an individual or group,
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0012| organization, corporation, partnership, association, trust or
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0013| similar legal entity;
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0014| F. "professional fundraiser" means a person who for
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0015| compensation performs for a charitable organization any service
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0016| in connection with which contributions are solicited in New
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0017| Mexico by the compensated person or by a compensated person he
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0018| employs, directly or indirectly, to solicit and who has custody
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0019| or control of contributions; provided, however, the following
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0020| persons shall be not considered professional fundraisers:
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0021| (1) a person who advises another person to
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0022| make a charitable contribution as long as the person is not
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0023| compensated by the charitable organization to whom the
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0024| contribution was made;
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0025| (2) a board member, officer, salaried employee
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0001| or volunteer of a charitable organization; and
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0002| (3) a person employed by a professional
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0003| fundraiser or a charitable organization;
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0004| [D.] G. "religious organization" means [any]
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0005| a church or group organized for the purpose of divine worship
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0006| or religious teaching [or other specifically religious
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activity] consistent with Section 501(c)(3) and Section
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0008| 509(a)(1) or 170(b)(1)(A)(i) of the Internal Revenue Code of
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0009| 1986, as amended; and
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0010| [E.] H. "solicit" or "solicitation" means
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0011| [any] a request, plea or appeal, [either] whether
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0012| direct or indirect, oral or written, or [any] an endeavor
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0013| to obtain, seek or plead for funds, property, financial
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0014| assistance or other thing of value, including the promise or
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0015| grant of [any] money or property [of any kind or value] for
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0016| a charitable purpose, but excluding:
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0017| (1) direct grants or allocation of funds
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0018| received or solicited from any affiliated fundraising
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0019| organization by a member agency; and
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0020| (2) unsolicited contributions received from
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0021| [any] an individual donor, foundation, trust, governmental
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0022| agency or other source, unless such contributions are received
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0023| in conjunction with a solicitation drive."
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0024| Section 4. Section 57-22-4 NMSA 1978 (being Laws 1983,
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0025| Chapter 140, Section 4) is amended to read:
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0001| "57-22-4. APPLICATION OF ACT.--
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0002| A. The Charitable [Organizations and]
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0003| Solicitations Act shall not apply to [all charitable
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organizations except:
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(1)] religious organizations.
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0006| B. Exempt only from registration and reporting
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0007| requirements of the Charitable Solicitations Act are:
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0008| [(2)] (1) educational institutions; [and
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(3)] (2) charitable organizations [which]
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0010| that do not actually raise or receive contributions in cash,
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0011| goods or services valued in excess of [two thousand five
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hundred dollars ($2,500)] five thousand dollars ($5,000)
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0013| during a twelve-month period; provided such organizations do
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0014| not use professional fundraisers; and provided further that
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0015| such organizations submit information as the attorney general
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0016| may require to substantiate an exemption pursuant to this
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0017| subsection; and
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0018| (3) persons soliciting for a named individual
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0019| or group that has suffered a medical or other catastrophe and:
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0020| (a) the individual or group is specified
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0021| by name at the time of solicitation;
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0022| (b) the purpose for the contribution is
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0023| clearly stated; and
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0024| (c) the gross contributions collected,
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0025| without any deductions for the benefit of the solicitor or any
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0001| other person, are deposited directly to an account in the name
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0002| of the beneficiary at a local federally insured financial
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0003| institution established for that purpose and if the
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0004| contributions are used for the direct benefit of the named
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0005| individual or group as beneficiary.
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0006| [B.] C. The Charitable [Organizations and]
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0007| Solicitations Act shall apply to charitable organizations and
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0008| professional fundraisers regardless of any contrary provisions
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0009| of any instrument."
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0010| Section 5. Section 57-22-5 NMSA 1978 (being Laws 1983,
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0011| Chapter 140, Section 5) is amended to read:
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0012| "57-22-5. ATTORNEY GENERAL TO MAINTAIN REGISTER OF
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0013| CHARITABLE ORGANIZATIONS AS PUBLIC RECORD.--The attorney
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0014| general shall establish and maintain a register of all
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0015| documents filed by charitable organizations in accordance with
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0016| the Charitable [Organizations and] Solicitations Act. The
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0017| register shall be open to public inspection except that the
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0018| attorney general may withhold from public inspection documents
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0019| or information obtained in the course of an investigation
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0020| undertaken pursuant to the provisions of that act or which
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0021| otherwise may be withheld from public inspection by law."
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0022| Section 6. Section 57-22-6 NMSA 1978 (being Laws 1983,
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0023| Chapter 140, Section 6, as amended) is amended to read:
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0024| "57-22-6. FILING OF REQUIRED DOCUMENTS.--
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0025| [A. Every Charitable organization shall file with
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the office of the attorney general within six months of the
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effective date of the Charitable Organizations and
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Solicitations Act or within six months of the date on which the
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charitable organization becomes subject to the Charitable
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Organizations and Solicitations Act. whichever shall occur
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first:
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(1) an initial registration to be submitted on
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the form provided for that purpose by the attorney general; and
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(2) A copy of the articles of incorporation or
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other instrument creating the charitable organization and
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defining its purpose, powers and duties.
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B. In addition to the documents required in
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Subsection A of this section, every charitable organization
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shall file, within seventy-five days of the close of the fiscal
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year first following registration and of each fiscal year
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thereafter, an annual report, under oath, on the form provided
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by the attorney general for that purpose.]
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0018| A. A charitable organization that intends to
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0019| solicit in New Mexico or have contributions solicited in New
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0020| Mexico on its behalf by other charitable organizations or a
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0021| professional fundraiser shall register with the attorney
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0022| general on a form provided by the attorney general at least
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0023| thirty days prior to conducting a solicitation. A copy of the
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0024| articles of incorporation, and certificate of authority if a
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0025| foreign corporation, or the instrument creating a charitable
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0001| trust and defining its purpose, powers and duties shall be
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0002| included with the registration form.
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0003| [C.] B. The attorney general may make such
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0004| rules and regulations, in accordance with the State Rules Act,
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0005| as are necessary for the proper administration of this section,
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0006| including [but not limited to]:
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0007| (1) requirements for filing additional
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0008| information; and
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0009| (2) provisions for suspending the filing of
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0010| reports where it is determined that such reports are no longer
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0011| necessary for the protection of the public interest.
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0012| [D. This section shall not apply to any local
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affiliate of a statewide or national organization for which all
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local fundraising expenses are paid by the parent organization
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if the parent organization files a report required by this
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section.
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E.] C. In addition to any other reporting
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0018| requirements pursuant to the Charitable [Organizations and]
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0019| Solicitations Act, every charitable organization [to which
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that act applies and] that has received tax-exempt status
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0021| under Section 501(c)(3) of the federal Internal Revenue Code of
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0022| 1986, as amended, and is required to file a form 990 [or],
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0023| 990EZ or 990PF pursuant to the Internal Revenue Code of 1986,
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0024| as amended, shall file that form and the accompanying schedule
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0025| A annually with the office of the attorney general up to five
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0001| months and fifteen days following the close of the charitable
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0002| organization's fiscal year. Extensions of time for filing may
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0003| be allowed at the discretion of the attorney general for good
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0004| cause shown. Such forms shall be public records and available
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0005| for public inspection. Organizations that do not file a form
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0006| 990, 990EZ or 990PF pursuant to the Internal Revenue Code of
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0007| 1986, as amended, shall file an annual report, under oath, on
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0008| the form provided by the attorney general for that purpose.
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0009| The financial report of a charitable organization that received
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0010| contributions in excess of three hundred thousand dollars
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0011| ($300,000) shall be audited by an independent certified public
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0012| accountant. The financial report of a charitable organization
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0013| that receives contributions in excess of one hundred thousand
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0014| dollars ($100,000) but less than three hundred thousand dollars
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0015| ($300,000) shall be reviewed or audited by an independent
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0016| certified public accountant. Audits shall be performed in
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0017| accordance with the statement on auditing standards of the
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0018| American institute of certified public accountants, and reviews
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0019| shall be performed in accordance with the statement on
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0020| standards for accounting and review services of the American
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0021| institute of certified public accountants. Such audits and
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0022| reviews shall be filed with the attorney general's office.
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0023| D. The attorney general shall notify each
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0024| charitable organization required to register pursuant to
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0025| Subsection B of this section within thirty days of its receipt
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0001| of the registration form of any deficiencies in the
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0002| registration; otherwise it is deemed approved as filed. No
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0003| charitable organization required to be registered pursuant to
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0004| Subsection B of this section shall solicit prior to
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0005| registration.
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0006| E. A charitable organization that fails to register
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0007| with the attorney general or properly renew its registration
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0008| annually may be assessed a late filing fee of one hundred
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0009| dollars ($100)."
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0010| Section 7. Section 57-22-7 NMSA 1978 (being Laws 1983,
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0011| Chapter 140, Section 7) is amended to read:
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0012| "57-22-7. RESTRICTION ON USE OF FACT OF FILING IN
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0013| SOLICITATION.--No solicitation [of funds] for charitable
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0014| purposes shall use the fact or requirement of registration or
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0015| of the filing of any report with the attorney general pursuant
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0016| to the Charitable [Organizations and] Solicitations Act with
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0017| the intent to cause or in a manner tending to cause any person
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0018| to believe that [such] the solicitation, the manner in
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0019| which it is conducted, its purposes, any use to which the
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0020| proceeds will be applied or the person or organization
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0021| conducting it have been or will be in any way endorsed,
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0022| sanctioned or approved by the attorney general or any
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0023| governmental agency or office."
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0024| Section 8. Section 57-22-8 NMSA 1978 (being Laws 1983,
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0025| Chapter 140, Section 8) is amended to read:
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0001| "57-22-8. DISCLOSURE OF FUNDRAISING COSTS.--
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0002| A. All charitable organizations subject to the
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0003| Charitable [Organizations and] Solicitations Act shall
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0004| disclose upon request the percentage of the funds solicited
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0005| [which] that are spent on the costs of fundraising. For
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0006| purposes of this section, costs of fundraising shall include
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0007| all money directly expended on fundraising and that portion of
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0008| all administrative expenses and salaries of the charitable
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0009| organization attributable to fundraising activities.
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0010| B. Whenever a solicitation [of funds] on behalf
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0011| of a charitable organization subject to the Charitable
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0012| [Organizations and] Solicitations Act is undertaken by a
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0013| professional fundraiser, the professional fundraiser [must]
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0014| shall disclose that fact to prospective contributors. [For
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purposes of this section, a professional fundraiser shall mean
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any individual, corporation, association or other enitity
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employed or retained or otherwise compensated by or on behalf
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of a charitable organization to solicit funds.]"
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0019| Section 9. Section 57-22-9 NMSA 1978 (being Laws 1983,
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0020| Chapter 140, Section 9) is amended to read:
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0021| "57-22-9. AUTHORITY OF THE ATTORNEY GENERAL.--
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0022| A. The attorney general [is authorized] may, on
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0023| behalf of the state, [to] examine and investigate any
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0024| charitable organization subject to the Charitable
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0025| [Organizations and] Solicitations Act to ascertain the condi-
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0001|
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0002| tions of its affairs and to what extent, if at all, it fails to
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0003| comply with the trusts [which] that it has assumed or if
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0004| it has departed from the purposes for which it [is] was
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0005| formed. In the case of such failure or departure, the attorney
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0006| general may institute, in the name of the state, the proceed-
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0007|
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0008| ings necessary to correct the noncompliance or departure by any
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0009| remedy available under the common law.
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0010| B. The attorney general [is authorized] may, in
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0011| the name of the state, [to initiate appropriate proceedings to
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enjoin the solicitation of funds by any charitable organization
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which] seek injunctive relief, civil penalties, financial
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0014| accounting or restitution in the district court or other court
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0015| of competent jurisdiction from any person who has failed to
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0016| comply with the registration, filing or disclosure provisions
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0017| of the Charitable [Organizations and] Solicitations Act or
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0018| [which] that has [filed any false or misleading report or
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has made any false or misleading disclosure] otherwise
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0020| violated the provisions of that act.
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0021| C. The attorney general [is authorized] may, in
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0022| the name of the state, [to] initiate appropriate proceedings
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0023| to seek compliance with the provisions of the Charitable
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0024| [Organizations and] Solicitations Act and with any rules and
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0025| regulations duly promulgated by the attorney general
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0001| [thereunder] pursuant to that act. The attorney general may
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0002| promulgate rules and regulations for the proper administration
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0003| of that act.
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0004| D. Nothing in this section shall be construed to
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0005| preclude [any] a person or group [or] of persons from
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0006| asserting [any] a private cause of action [they] it
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0007| might have against a charitable organization or professional
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0008| fundraiser."
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0009| Section 10. Section 57-22-10 NMSA 1978 (being Laws 1983,
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0010| Chapter 140, Section 10) is amended to read:
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0011| "57-22-10. STANDARD OF CARE.--All officers, directors,
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0012| managers, trustees, professional fundraisers or other persons
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0013| having access to the [funds] money of a charitable
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0014| organization intended for use for charitable purposes shall be
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0015| held to the standard of care defined for fiduciary trustees
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0016| under common law."
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0017| Section 11. Section 57-22-11 NMSA 1978 (being Laws 1983,
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0018| Chapter 140, Section 11) is amended to read:
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0019| "57-22-11. EXEMPTIONS FROM STATE AND LOCAL TAXATION.--
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0020| Every officer, agency, board or commission of this state or
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0021| political subdivision [thereof] of this state receiving
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0022| applications for exemption from taxation shall provide to the
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0023| attorney general copies of all [such] the applications,
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0024| supporting documents and official responses."
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0025| Section 12. A new section of the Charitable Solicitations
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0001| Act is enacted to read:
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0002| "[NEW MATERIAL] CHARITABLE ORGANIZATIONS--
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0003| INCORPORATION.--A charitable organization, except a charitable
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0004| trust, soliciting in or from New Mexico shall be incorporated
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0005| as a nonprofit corporation in accordance with the provisions of
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0006| the Nonprofit Corporation Act. A charitable organization that
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0007| is a foreign corporation shall file a copy of its certificate
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0008| of authority issued by the state corporation commission with
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0009| the attorney general."
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0010| Section 13. A new section of the Charitable Solicitations
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0011| Act is enacted to read:
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0012| "[NEW MATERIAL] PROFESSIONAL FUNDRAISERS--
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0013| REGISTRATION.--
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0014| A. A professional fundraiser shall not enter into a
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0015| contract with a charitable organization to solicit for or on
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0016| behalf of the charitable organization unless the professional
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0017| fundraiser is registered with the attorney general.
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0018| Professional fundraisers shall:
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0019| (1) register with the attorney general on a
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0020| form provided by the attorney general;
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0021| (2) file a twenty-five thousand dollar
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0022| ($25,000) surety bond on a form provided by the attorney
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0023| general; and
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0024| (3) file the written contract between the
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0025| professional fundraiser and the charitable organization on
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0001| whose behalf the professional fundraiser intends to conduct a
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0002| solicitation campaign.
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0003| B. The contract between the professional fundraiser
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0004| and the charitable organization shall clearly describe the
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0005| compensation and authority of the professional fundraiser, the
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0006| solicitation campaign and the location and telephone number
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0007| from which the solicitation is to be conducted; list the names
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0008| and addresses of all employees, agents or other persons who are
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0009| to solicit during the campaign; include copies of the
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0010| solicitation literature, including scripts of any written or
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0011| verbal solicitation; and contain the estimated annual amount of
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0012| gross and net revenue the charitable organization will receive
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0013| as a result of the activities outlined in the contract. The
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0014| charitable organization on whose behalf the professional
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0015| fundraiser is acting shall certify that the contract and
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0016| solicitation materials are true and complete.
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0017| C. The professional fundraiser shall renew his
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0018| registration annually.
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0019| D. Within thirty days after receiving a
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0020| registration or a renewal of registration pursuant to this
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0021| section, the attorney general shall notify the professional
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0022| fundraiser of any deficiencies in the registration, contract or
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0023| bond; otherwise it is deemed approved as filed.
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0024| E. A professional fundraiser who fails to register
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0025| with the attorney general or properly renew his registration
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0001| annually may be assessed a late filing fee of one hundred
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0002| dollars ($100)."
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0003| Section 14. A new section of the Charitable Solicitations
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0004| Act is enacted to read:
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0005| "[NEW MATERIAL] PROFESSIONAL FUNDRAISERS--BOND.--A
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0006| professional fundraiser shall file a surety bond at the time of
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0007| registration or renewal of registration with the attorney
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0008| general. The bond shall be approved as to form by the attorney
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0009| general. The professional fundraiser shall be the principal
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0010| obligor on the surety bond in the sum of twenty-five thousand
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0011| dollars ($25,000) held by one or more responsible sureties.
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0012| The sureties shall have an aggregate liability of twenty-five
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0013| thousand dollars ($25,000). The professional fundraiser shall
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0014| maintain the surety bond as long as the professional fundraiser
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0015| is soliciting contributions from persons in New Mexico and as
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0016| long as his registration is in effect. The bond, which may be
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0017| in the form of a rider to a larger blanket liability bond,
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0018| shall be with a surety company authorized to do business in New
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0019| Mexico. The surety bond shall be held and firmly bound,
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0020| jointly and severally, in the name of the state and any person
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0021| who may have a cause of action against the principal obligor
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0022| for liabilities arising out of the conduct of business by the
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0023| principal obligor or arising out of a violation of the
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0024| Charitable Solicitations Act or regulations adopted pursuant to
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0025| that act."
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0001| Section 15. A new section of the Charitable Solicitations
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0002| Act is enacted to read:
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0003| "[NEW MATERIAL] GENERAL PROVISIONS--CHARITABLE
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0004| ORGANIZATIONS--PROFESSIONAL FUNDRAISERS.--
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0005| A. A charitable organization shall not use the name
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0006| or likeness of any person in solicitation literature without
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0007| express written consent of the person; provided that the
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0008| publication of the names of previous contributors for the
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0009| purpose of acknowledging contributions shall not require the
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0010| express written consent of such contributors.
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0011| B. A charitable organization shall not use a name,
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0012| symbol or statement so closely related or similar to that used
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0013| by another charitable organization or governmental agency that
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0014| the use of such name, symbol or statement would tend to confuse
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0015| or mislead the public.
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0016| C. A charitable organization shall not state or
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0017| suggest, directly or indirectly, orally or in writing, that
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0018| registration with the attorney general constitutes approval or
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0019| endorsement by the state or the attorney general.
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0020| D. A charitable organization shall not use or
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0021| employ fraud; false pretense; false promise; misrepresentation;
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0022| misleading statements, name, mark or identification; or unfair
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0023| or deceptive practice, method or device in connection with a
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0024| solicitation, including any statements, actions or omissions
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0025| designed or intended to confuse or mislead a person to believe
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0001| that the organization is another organization or related to
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0002| another organization or to believe that contributions being
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0003| solicited are or will be used for purposes and programs
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0004| conducted within New Mexico or for persons located within New
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0005| Mexico when that is not the case; or to otherwise represent
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0006| purposes and uses of the solicited contributions that are not
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0007| within the charitable purpose of the charitable organization.
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0008| E. Within sixty days after the completion of
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0009| services or activities outlined in the contract, the
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0010| professional fundraiser shall account in writing to the
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0011| charitable organization for all contributions received and all
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0012| expenses incurred under the contract. The charitable
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0013| organization shall keep each accounting of contributions and
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0014| expenses for three years and make it available to the attorney
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0015| general upon request.
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0016| F. All contributions of money received by the
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0017| professional fundraiser shall be deposited in an account at a
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0018| federally insured financial institution within two days after
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0019| receipt. The account shall be established and maintained in
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0020| the name of the charitable organization. Disbursements from
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0021| the account shall be made upon warrants signed by the
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0022| professional fundraiser and an authorized representative of the
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0023| charitable organization.
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0024| G. The professional fundraiser shall record and
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0025| maintain the following information for three years after the
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0001| solicitation:
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0002| (1) the name and address of each person
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0003| contributing to the charitable organization and the date and
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0004| amount of the contribution;
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0005| (2) the name and residence address of each
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0006| employee, agent or other person involved in the solicitation;
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0007| (3) the script or other instructional
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0008| information provided by the charitable organization or
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0009| professional fundraiser to employees or agents conducting
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0010| solicitations;
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0011| (4) a record of expenses incurred by the
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0012| professional fundraiser that the charitable organization is
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0013| required to pay; and
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0014| (5) the name and address of each financial
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0015| institution and the account number of each account in which the
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0016| professional fundraiser deposits contributions.
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0017| H. The professional fundraiser shall make the
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0018| information required in Subsection G of this section available
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0019| for inspection to the attorney general upon request.
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0020| I. The professional fundraiser and all employees of
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0021| the professional fundraiser shall disclose the following to
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0022| prospective contributors:
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0023| (1) the name of the charitable organization
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0024| whenever a solicitation is made on behalf of the charitable
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0025| organization; and
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0001| (2) the fact that the money is being solicited
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0002| by or through a professional fundraiser.
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0003| J. Every professional fundraiser and charitable
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0004| organization shall have a registered agent in New Mexico or
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0005| shall file a consent to service of process with the attorney
|
0006| general. The consent to service shall be in the form
|
0007| prescribed by the attorney general, shall be irrevocable and
|
0008| shall provide that actions arising out of or founded upon the
|
0009| solicitation of charitable contributions in violation of the
|
0010| Charitable Solicitations Act may be commenced against the
|
0011| person executing such consent in any court of competent
|
0012| jurisdiction and proper venue within New Mexico by the service
|
0013| of process or pleadings upon the attorney general. Service of
|
0014| process or pleadings in any such action against a person who
|
0015| has filed a consent to service with the attorney general shall,
|
0016| if made on the attorney general, be by duplicate copies, one of
|
0017| which shall be filed in the office of the attorney general, and
|
0018| the other shall be immediately forwarded by the attorney
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0019| general by registered or certified mail to the person against
|
0020| whom the process or pleadings are directed at his latest
|
0021| address on file in the office of the attorney general."
|
0022| Section 16. A new section of the Charitable Solicitations
|
0023| Act is enacted to read:
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0024| "[NEW MATERIAL] INVESTIGATIVE DEMAND--CIVIL PENALTY.--
|
0025| A. Whenever the attorney general has reason to
|
0001| believe that any person may be in possession, custody or
|
0002| control of information or documentary material, including an
|
0003| original or copy of any book, record, report, memorandum,
|
0004| paper, communication, tabulation, chart, photograph, mechanical
|
0005| transcription or other tangible document or recording, that the
|
0006| attorney general believes to be relevant to the subject matter
|
0007| of an investigation of a probable violation of the Charitable
|
0008| Solicitations Act, the attorney general may, prior to the
|
0009| institution of a civil proceeding, execute in writing and cause
|
0010| to be served upon the person a civil investigative demand. The
|
0011| demand shall require the person to answer interrogatories or to
|
0012| produce documentary material and permit the inspection and
|
0013| copying of the material. The demand of the attorney general
|
0014| shall not be a matter of public record and shall not be
|
0015| published by him except by order of the court.
|
0016| B. Each demand shall:
|
0017| (1) state the general subject matter of the
|
0018| investigation;
|
0019| (2) describe with reasonable certainty the
|
0020| information or documentary material to be provided;
|
0021| (3) identify the time period within which the
|
0022| information or documentary material is to be provided, which in
|
0023| no case shall be less than ten days after the date of service
|
0024| of the demand; and
|
0025| (4) state the date on which any documentary
|
0001| material shall be made available for inspection and copying.
|
0002| C. No demand shall:
|
0003| (1) contain any requirement that would be
|
0004| unreasonable or improper if contained in a subpoena duces tecum
|
0005| issued by a court of the state;
|
0006| (2) require the disclosure of any documentary
|
0007| material that would be privileged or that for any other reason
|
0008| would not be required by a subpoena duces tecum issued by a
|
0009| court of the state; or
|
0010| (3) require the removal of any documentary
|
0011| material from the custody of the person upon whom the demand is
|
0012| served except in accordance with the provisions of Subsection E
|
0013| of this section.
|
0014| D. Service of the demand may be made by:
|
0015| (1) delivering a duly executed copy of the
|
0016| demand to the person to be served or, if the person is not a
|
0017| natural person, to the registered or statutory agent for the
|
0018| person to be served;
|
0019| (2) delivering a duly executed copy of the
|
0020| demand to the principal place of business in New Mexico of the
|
0021| person to be served; or
|
0022| (3) mailing by registered or certified mail a
|
0023| duly executed copy of the demand addressed to the person to be
|
0024| served at his principal place of business in the state or, if
|
0025| the person has no place of business in the state, to his
|
0001| principal place of business.
|
0002| E. Documentary material demanded pursuant to
|
0003| Subsection A of this section shall be produced for inspection
|
0004| and copying during normal business hours at the principal place
|
0005| of business of the person served or may be inspected and copied
|
0006| at such other times and places as may be agreed upon by the
|
0007| person served and the attorney general.
|
0008| F. No documentary material or copies of the
|
0009| documentary material produced pursuant to a demand shall be
|
0010| produced for inspection or copying by anyone other than an
|
0011| authorized employee of the attorney general, nor shall the
|
0012| contents of the documentary material be disclosed to anyone
|
0013| other than an authorized employee of the attorney general or in
|
0014| court in an action relating to a violation of the Charitable
|
0015| Solicitations Act. The district court in the county in which
|
0016| the person resides or has his principal place of business or is
|
0017| about to perform or is performing the practice that is alleged
|
0018| to be unlawful under the Charitable Solicitations Act may order
|
0019| documentary material to be produced for inspection or copying
|
0020| by someone other than an authorized employee of the attorney
|
0021| general.
|
0022| G. At any time before the return date of the
|
0023| demand, a petition to set aside the demand, modify the demand
|
0024| or extend the return date on the demand may be filed in the
|
0025| district court in the county in which the person resides or has
|
0001| his principal place of business or is about to perform or is
|
0002| performing the practice that is alleged to be unlawful under
|
0003| the Charitable Solicitations Act, and the court upon showing of
|
0004| good cause may set aside the demand, modify it or extend the
|
0005| return date of the demand.
|
0006| H. If after service of the demand the person
|
0007| neglects or refuses to comply with the demand, the attorney
|
0008| general may invoke the aid of the court in the enforcement of
|
0009| the demand. In appropriate cases the court shall issue its
|
0010| order requiring the person to appear and produce the
|
0011| documentary material required in the demand. Upon failure of
|
0012| the person to comply with the court order, the court shall
|
0013| punish the person for contempt of court.
|
0014| I. This section shall not be applicable to criminal
|
0015| prosecutions.
|
0016| J. In an action brought pursuant to the Charitable
|
0017| Solicitations Act, if the district court or other court of
|
0018| competent jurisdiction finds that a person has violated a
|
0019| provision of that act or regulations promulgated pursuant to
|
0020| that act, the attorney general, upon petition to the district
|
0021| court or other court of competent jurisdiction, may recover, on
|
0022| behalf of the state, a maximum civil penalty of five thousand
|
0023| dollars ($5,000) per violation."
|
0024| Section 17. SEVERABILITY.--If any part or application of
|
0025| the Charitable Solicitations Act is held invalid, the remainder
|
0001| or its application to other situations or persons shall not be
|
0002| affected.
|
0003| Section 18. EFFECTIVE DATE.--The effective date of the
|
0004| provisions of this act is September 1, 1997.
|
0005| State of New Mexico
|
0006| House of Representatives
|
0007|
|
0008| FORTY-THIRD LEGISLATURE
|
0009| FIRST SESSION, 1997
|
0010|
|
0011|
|
0012| February 25, 1997
|
0013|
|
0014|
|
0015| Mr. Speaker:
|
0016|
|
0017| Your BUSINESS AND INDUSTRY COMMITTEE, to whom
|
0018| has been referred
|
0019|
|
0020| HOUSE BILL 558
|
0021|
|
0022| has had it under consideration and reports same with
|
0023| recommendation that it DO PASS, amended as follows:
|
0024|
|
0025| 1. On page 4, line 2, after "church" insert ",
|
0001| organization".
|
0002|
|
0003| 2. On page 4, line 3, remove the brackets and line-through.
|
0004|
|
0005| 3. On page 4, strike all of lines 4 and 5 and on line 6,
|
0006| strike "amended" and insert in lieu thereof "or any other
|
0007| organization formed primarily to support any such church,
|
0008| organization or group".
|
0009|
|
0010| 4. On page 5, line 3, after "institutions" insert "and any
|
0011| organization defined by Section 6-5A-1 NMSA 1978".
|
0012|
|
0013| 5. On page 9, line 3, strike "contributions" and insert in
|
0014| lieu thereof "total revenue".
|
0015|
|
0016| 6. On page 9, lines 3 and 4, strike "three hundred thousand
|
0017| dollars ($300,000)" and insert in lieu thereof "four hundred
|
0018| thousand dollars ($400,000)".
|
0019|
|
0020| 7. On page 9, line 6, strike "contributions" and insert in
|
0021| lieu thereof "total revenue".
|
0022|
|
0023| 8. On page 9, lines 6 and 7, strike "one hundred thousand
|
0024| dollars ($100,000)" and insert in lieu thereof "two hundred
|
0025| thousand dollars ($200,000)".
|
0001|
|
0002| 9. On page 9, lines 7 and 8, strike "three hundred thousand
|
0003| dollars ($300,000)" and insert in lieu thereof "four hundred
|
0004| thousand dollars ($400,000)".
|
0005|
|
0006| 10. On page 9, line 17, strike "B" and insert in lieu
|
0007| thereof "A".
|
0008|
|
0009| 11. On page 9, line 21, strike "B" and insert in lieu
|
0010| thereof "A".,
|
0011|
|
0012| and thence referred to the JUDICIARY COMMITTEE.
|
0013|
|
0014| Respectfully submitted,
|
0015|
|
0016|
|
0017|
|
0018|
|
0019|
|
0020| Fred Luna, Chairman
|
0021|
|
0022|
|
0023| Adopted Not Adopted
|
0024|
|
0025| (Chief Clerk) (Chief Clerk)
|
0001|
|
0002| Date
|
0003|
|
0004| The roll call vote was 11 For 0 Against
|
0005| Yes: 11
|
0006| Excused: Hobbs
|
0007| Absent: Getty
|
0008|
|
0009|
|
0010| .117631.1
|
0011| G:\BILLTEXT\BILLW_97\H0558 State of New Mexico
|
0012| House of Representatives
|
0013|
|
0014| FORTY-THIRD LEGISLATURE
|
0015| FIRST SESSION, 1997
|
0016|
|
0017|
|
0018| March 10, 1997
|
0019|
|
0020|
|
0021| Mr. Speaker:
|
0022|
|
0023| Your JUDICIARY COMMITTEE, to whom has been referred
|
0024|
|
0025| HOUSE BILL 558, as amended
|
0001|
|
0002| has had it under consideration and reports same with
|
0003| recommendation that it DO PASS.
|
0004|
|
0005| Respectfully submitted,
|
0006|
|
0007|
|
0008|
|
0009|
|
0010|
|
0011| Thomas P. Foy, Chairman
|
0012|
|
0013|
|
0014| Adopted Not Adopted
|
0015|
|
0016| (Chief Clerk) (Chief Clerk)
|
0017|
|
0018| Date
|
0019|
|
0020| The roll call vote was 11 For 0 Against
|
0021| Yes: 11
|
0022| Excused: King, Rios
|
0023| Absent: None
|
0024|
|
0025|
|
0001| G:\BILLTEXT\BILLW_97\H0558
|
0002|
|
0003| FORTY-THIRD LEGISLATURE
|
0004| FIRST SESSION, 1997
|
0005|
|
0006|
|
0007| March 14, 1997
|
0008|
|
0009| Mr. President:
|
0010|
|
0011| Your CORPORATIONS & TRANSPORTATION COMMITTEE, to
|
0012| whom has been referred
|
0013|
|
0014| HOUSE BILL 558, as amended
|
0015|
|
0016| has had it under consideration and reports same with
|
0017| recommendation that it DO PASS, and thence referred to the
|
0018| JUDICIARY COMMITTEE.
|
0019|
|
0020| Respectfully submitted,
|
0021|
|
0022|
|
0023|
|
0024|
|
0025| __________________________________
|
0001| Roman M. Maes, III, Chairman
|
0002|
|
0003|
|
0004|
|
0005| Adopted_______________________ Not
|
0006| Adopted_______________________
|
0007| (Chief Clerk) (Chief Clerk)
|
0008|
|
0009|
|
0010| Date ________________________
|
0011|
|
0012|
|
0013| The roll call vote was 7 For 0 Against
|
0014| Yes: 7
|
0015| No: 0
|
0016| Excused: Fidel, Griego, Robinson
|
0017| Absent: None
|
0018|
|
0019|
|
0020| H0558CT1
|
0021|
|
0022|
|
0023|
|
0024| FORTY-THIRD LEGISLATURE
|
0025| FIRST SESSION, 1997
|
0001|
|
0002|
|
0003| March 19, 1997
|
0004|
|
0005| Mr. President:
|
0006|
|
0007| Your JUDICIARY COMMITTEE, to whom has been referred
|
0008|
|
0009| HOUSE BILL 558, as amended
|
0010|
|
0011| has had it under consideration and reports same with
|
0012| recommendation that it DO PASS.
|
0013|
|
0014| Respectfully submitted,
|
0015|
|
0016|
|
0017|
|
0018|
|
0019| __________________________________
|
0020| Fernando R. Macias, Chairman
|
0021|
|
0022|
|
0023|
|
0024| Adopted_______________________ Not
|
0025| Adopted_______________________
|
0001| (Chief Clerk) (Chief Clerk)
|
0002|
|
0003|
|
0004|
|
0005| Date ________________________
|
0006|
|
0007|
|
0008| The roll call vote was 7 For 0 Against
|
0009| Yes: 7
|
0010| No: 0
|
0011| Excused: Tsosie
|
0012| Absent: None
|
0013|
|
0014|
|
0015| H0558JU1
|