New Mexico 2025 Regular Session

New Mexico Senate Bill SB259 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	underscored material = new
2	2	[bracketed material] = delete
3	3	1
4	4	2
5	5	3
6	6	4
7	7	5
8	8	6
9	9	7
10	10	8
11	11	9
12	12	10
13	13	11
14	14	12
15	15	13
16	16	14
17	17	15
18	18	16
19	19	17
20	20	18
21	21	19
22	22	20
23	23	21
24	24	22
25	25	23
26	26	24
27	27	25
28	28	SENATE BILL 259
29	29	57
30	30	TH LEGISLATURE
31	31	-
32	32
33	33	STATE
34	34
35	35	OF
36	36
37	37	NEW
38	38
39	39	MEXICO
40	40
41	41	-
42	42	FIRST SESSION
43	43	,
44	44
45	45	2025
46	46	INTRODUCED BY
47	47	Katy M. Duhigg
48	48	AN ACT
49	49	RELATING TO CHARITIES; AMENDING THE CHARITABLE SOLICITATIONS
50	50	ACT TO STRENGTHEN REQUIREMENTS FOR PROFESSIONAL FUNDRAISERS AND
51	51	THIRD-PARTY SOLICITORS.
52	52	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
53	53	SECTION 1. Section 57-22-2 NMSA 1978 (being Laws 1983,
54	54	Chapter 140, Section 2, as amended) is amended to read:
55	55	"57-22-2. PURPOSE.--The purpose of the Charitable
56	56	Solicitations Act is to authorize the attorney general to
57	57	monitor, supervise and enforce the charitable purposes of
58	58	charitable organizations and regulate professional fundraisers
59	59	and third-party solicitors operating in this state."
60	60	SECTION 2. Section 57-22-3 NMSA 1978 (being Laws 1983,
61	61	Chapter 140, Section 3, as amended) is amended to read:
62	62	"57-22-3. DEFINITIONS.--As used in the Charitable
63	63	.229559.1 underscored material = new
64	64	[bracketed material] = delete
65	65	1
66	66	2
67	67	3
68	68	4
69	69	5
70	70	6
71	71	7
72	72	8
73	73	9
74	74	10
75	75	11
76	76	12
77	77	13
78	78	14
79	79	15
80	80	16
81	81	17
82	82	18
83	83	19
84	84	20
85	85	21
86	86	22
87	87	23
88	88	24
89	89	25
90	90	Solicitations Act:
91	91	A. "charitable organization" means [any ] an entity
92	92	that has been granted exemption from the federal income tax by
93	93	the United States commissioner of internal revenue as an
94	94	organization described in Section 501(c)(3) of the Internal
95	95	Revenue Code of 1986, as amended, or identifies itself to the
96	96	public as having a charitable purpose;
97	97	B. "charitable purpose" means a benevolent, social
98	98	welfare, scientific, educational, environmental, philanthropic,
99	99	humane, patriotic, public health, civic or other eleemosynary
100	100	objective or an activity conducted in support of or in the name
101	101	of law enforcement officers, firefighters or other persons who
102	102	protect public safety;
103	103	C. "contribution" means the promise, grant or
104	104	pledge of [any] money, credit or property of any kind or value
105	105	provided to a charitable organization in response to a
106	106	solicitation, but does not include program service revenue or
107	107	bona fide membership fees, dues or assessments; provided that
108	108	bona fide membership fees, dues or assessments do not include
109	109	contributions made in exchange for membership in a charitable
110	110	organization unless membership confers rights and benefits in
111	111	addition to receiving literature of the charitable
112	112	organization;
113	113	D. "educational institution" means:
114	114	(1) an entity organized and operated primarily
115	115	.229559.1
116	116	- 2 - underscored material = new
117	117	[bracketed material] = delete
118	118	1
119	119	2
120	120	3
121	121	4
122	122	5
123	123	6
124	124	7
125	125	8
126	126	9
127	127	10
128	128	11
129	129	12
130	130	13
131	131	14
132	132	15
133	133	16
134	134	17
135	135	18
136	136	19
137	137	20
138	138	21
139	139	22
140	140	23
141	141	24
142	142	25
143	143	as a school, college or other instructional institution with a
144	144	defined curriculum, student body and faculty, conducting
145	145	classes on a regular basis; and
146	146	(2) auxiliary entities, including parent-
147	147	teacher organizations, booster and support clubs that support,
148	148	encourage or promote a school, college or other instructional
149	149	institution and its defined curriculum, student body, faculty,
150	150	facilities or activities;
151	151	E. "professional fundraiser" means a person that
152	152	solicits or employs or directs others to solicit contributions
153	153	from the public on behalf of a charitable organization in
154	154	exchange for compensation and has custody or control of the
155	155	contributions; provided that "professional fundraiser" does not
156	156	include a director, officer, bona fide employee or salaried
157	157	officer, volunteer, attorney, accountant or investment
158	158	counselor of a charitable organization;
159	159	F. "professional fundraising counsel" means a
160	160	person that provides services or employs or directs others to
161	161	provide services for compensation to a charitable organization
162	162	in the solicitation of contributions, including managing or
163	163	preparing materials to be used in conjunction with [any ] a
164	164	solicitation; provided that the person does not:
165	165	(1) directly solicit contributions; or
166	166	(2) receive, have access to or control any
167	167	contribution received in response to the solicitation; provided
168	168	.229559.1
169	169	- 3 - underscored material = new
170	170	[bracketed material] = delete
171	171	1
172	172	2
173	173	3
174	174	4
175	175	5
176	176	6
177	177	7
178	178	8
179	179	9
180	180	10
181	181	11
182	182	12
183	183	13
184	184	14
185	185	15
186	186	16
187	187	17
188	188	18
189	189	19
190	190	20
191	191	21
192	192	22
193	193	23
194	194	24
195	195	25
196	196	further that "professional fundraising counsel" does not
197	197	include a director, officer, bona fide employee or salaried
198	198	officer, volunteer, attorney, accountant or investment
199	199	counselor of a charitable organization;
200	200	G. "religious organization" means a church,
201	201	organization or group organized for the purpose of divine
202	202	worship or religious teaching or other specific religious
203	203	activity or any other organization that is formed in
204	204	association with or to primarily encourage, support or promote
205	205	the work, worship, fellowship or teaching of the church,
206	206	organization or group; [and ]
207	207	H. "solicit" or "solicitation" means [any ] the
208	208	donation of nonperishable goods or a communication requesting a
209	209	contribution or offering an opportunity to participate in a
210	210	game of chance, raffle or similar event with the representation
211	211	that the contribution or participation will support a
212	212	charitable purpose, and includes:
213	213	(1) [any] a verbal request made in person or
214	214	by telephone, radio, television, electronic communication or
215	215	other media;
216	216	(2) [any] a written or published request
217	217	mailed, sent, delivered, circulated, distributed, posted in a
218	218	public place, advertised or communicated through any medium to
219	219	the public;
220	220	(3) [any] a sale or attempt to sell a good or
221	221	.229559.1
222	222	- 4 - underscored material = new
223	223	[bracketed material] = delete
224	224	1
225	225	2
226	226	3
227	227	4
228	228	5
229	229	6
230	230	7
231	231	8
232	232	9
233	233	10
234	234	11
235	235	12
236	236	13
237	237	14
238	238	15
239	239	16
240	240	17
241	241	18
242	242	19
243	243	20
244	244	21
245	245	22
246	246	23
247	247	24
248	248	25
249	249	service; and
250	250	(4) [any] an invitation to attend an assembly,
251	251	event, exhibition, performance or social gathering of any kind.
252	252	A contribution is not required for a solicitation to have
253	253	occurred, and "solicit" or "solicitation" does not include
254	254	direct grants or allocation of funds received or solicited from
255	255	[any] an affiliated fundraising organization by a member agency
256	256	or unsolicited contributions received from [any ] an individual
257	257	donor, foundation, trust, governmental agency or other source,
258	258	unless such contributions are received in conjunction with a
259	259	solicitation drive; and
260	260	I. "third-party solicitor" means a person that
261	261	contracts with a charitable organization to facilitate the sale
262	262	of nonperishable goods as a fundraising mechanism ."
263	263	SECTION 3. Section 57-22-6.1 NMSA 1978 (being Laws 1999,
264	264	Chapter 124, Section 12) is amended to read:
265	265	"57-22-6.1. PROFESSIONAL FUNDRAISERS AND THIRD-PARTY
266	266	SOLICITORS--REGISTRATION.--
267	267	A. Professional fundraisers and third-party
268	268	solicitors shall, before entering into a contract with [any ] a
269	269	charitable organization, except a religious organization, to
270	270	solicit for or on its behalf money, nonperishable goods or
271	271	other things of value :
272	272	(1) register with the attorney general on a form
273	273	provided by the attorney general, pay a registration fee of two
274	274	.229559.1
275	275	- 5 - underscored material = new
276	276	[bracketed material] = delete
277	277	1
278	278	2
279	279	3
280	280	4
281	281	5
282	282	6
283	283	7
284	284	8
285	285	9
286	286	10
287	287	11
288	288	12
289	289	13
290	290	14
291	291	15
292	292	16
293	293	17
294	294	18
295	295	19
296	296	20
297	297	21
298	298	22
299	299	23
300	300	24
301	301	25
302	302	hundred dollars ($200) and submit the names and addresses of
303	303	all officers, employees, agents and contractors within five
304	304	business days of their hiring or engagement ;
305	305	(2) file with the attorney general a surety bond
306	306	[pursuant to the Charitable Solicitations Act ] at the time of
307	307	registration in the amount of twenty-five thousand dollars
308	308	($25,000); and
309	309	(3) file with the attorney general a copy of the
310	310	intended written contract between the professional fundraiser
311	311	or third-party solicitor and the charitable organization on
312	312	whose behalf the professional fundraiser or third-party
313	313	solicitor intends to conduct a solicitation campaign or set up
314	314	collection receptacles or a charitable store or other means of
315	315	collecting donated nonperishable goods for a charitable
316	316	organization.
317	317	B. The contract between [the ] a professional
318	318	fundraiser and [the] a charitable organization shall clearly
319	319	describe the:
320	320	(1) compensation and authority of the
321	321	professional fundraiser;
322	322	(2) solicitation campaign;
323	323	(3) location and telephone numbers from where
324	324	solicitations are intended to be conducted;
325	325	(4) list of names and addresses of all
326	326	employees, agents or other persons who are to solicit during
327	327	.229559.1
328	328	- 6 - underscored material = new
329	329	[bracketed material] = delete
330	330	1
331	331	2
332	332	3
333	333	4
334	334	5
335	335	6
336	336	7
337	337	8
338	338	9
339	339	10
340	340	11
341	341	12
342	342	13
343	343	14
344	344	15
345	345	16
346	346	17
347	347	18
348	348	19
349	349	20
350	350	21
351	351	22
352	352	23
353	353	24
354	354	25
355	355	the campaign; and
356	356	(5) copies of the solicitation literature,
357	357	including scripts of any written or verbal solicitation.
358	358	C. The contract between a third-party solicitor and a
359	359	charitable organization shall clearly describe the:
360	360	(1) authority and compensation of the third-
361	361	party solicitor and the share, if any, of money earned on the
362	362	sale of donated nonperishable goods that does not go to the
363	363	charitable organization;
364	364	(2) location of collection receptacles, a
365	365	charitable store or other means of collecting donated
366	366	nonperishable goods for a charitable organization and, if a
367	367	store, the store's telephone number;
368	368	(3) list of names and addresses of all officers
369	369	and agents of the third-party solicitor and of all managers and
370	370	supervisors in stores in New Mexico, by location; and
371	371	(4) other information the attorney general deems
372	372	necessary.
373	373	[C.] D. The charitable organization on whose behalf
374	374	the professional fundraiser or third-party solicitor is acting
375	375	shall certify that the contract and solicitation and other
376	376	information and materials filed with the attorney general are
377	377	true and complete.
378	378	[D.] E. Within ten business days after receiving a
379	379	registration pursuant to this section, the attorney general
380	380	.229559.1
381	381	- 7 - underscored material = new
382	382	[bracketed material] = delete
383	383	1
384	384	2
385	385	3
386	386	4
387	387	5
388	388	6
389	389	7
390	390	8
391	391	9
392	392	10
393	393	11
394	394	12
395	395	13
396	396	14
397	397	15
398	398	16
399	399	17
400	400	18
401	401	19
402	402	20
403	403	21
404	404	22
405	405	23
406	406	24
407	407	25
408	408	shall notify the professional fundraiser or third-party
409	409	solicitor of any deficiencies in the registration, contract or
410	410	bond; otherwise the filing is deemed approved as filed.
411	411	[E.] F. A professional fundraiser or third-party
412	412	solicitor who fails to register with the attorney general may
413	413	be assessed a late registration fee of five hundred dollars
414	414	($500). In addition to the late fee, a professional fundraiser
415	415	or third-party solicitor who fails to comply with registration
416	416	or reporting requirements shall be assessed an administrative
417	417	penalty of two hundred dollars ($200) per violation. "
418	418	SECTION 4. Section 57-22-6.3 NMSA 1978 (being Laws 1999,
419	419	Chapter 124, Section 14) is amended to read:
420	420	"57-22-6.3. GENERAL PROVISIONS--CHARITABLE
421	421	ORGANIZATIONS--PROFESSIONAL FUNDRAISERS--THIRD-PARTY
422	422	SOLICITORS--PROHIBITED PRACTICES.--A charitable organization or
423	423	a professional fundraiser or third-party solicitor shall not:
424	424	A. engage in deceptive fundraising or third-party
425	425	soliciting practices, meaning any false or misleading verbal or
426	426	written statement, description or representation of any kind
427	427	knowingly made in connection with a solicitation and that may,
428	428	tends to or does deceive or mislead [any ] a person and
429	429	includes:
430	430	(1) using the name or likeness of [any ] a person
431	431	in solicitation literature without the express written consent
432	432	of the person; provided that publication of previous
433	433	.229559.1
434	434	- 8 - underscored material = new
435	435	[bracketed material] = delete
436	436	1
437	437	2
438	438	3
439	439	4
440	440	5
441	441	6
442	442	7
443	443	8
444	444	9
445	445	10
446	446	11
447	447	12
448	448	13
449	449	14
450	450	15
451	451	16
452	452	17
453	453	18
454	454	19
455	455	20
456	456	21
457	457	22
458	458	23
459	459	24
460	460	25
461	461	contributors' names to acknowledge their contributions shall
462	462	not require their express written consent;
463	463	(2) using a name, symbol or statement that is so
464	464	closely related or similar to that used by another charitable
465	465	organization or governmental agency that the use would tend to
466	466	confuse or mislead the public; [and ]
467	467	(3) misrepresenting, confusing or misleading
468	468	[any] a person to reasonably believe incorrectly that the
469	469	contributions being solicited are or will be used for purposes,
470	470	persons or programs in the state; [or ]
471	471	(4) misleading a person regarding sponsorship,
472	472	endorsement or approval of the solicitation;
473	473	(5) representing that a charitable organization
474	474	will receive a greater percentage of revenue than outlined in
475	475	the professional fundraiser's or third-party solicitor's
476	476	contract; and
477	477	(6) failing to disclose the market value of
478	478	donated nonperishable goods to the charitable organization; or
479	479	B. collect or attempt to collect a contribution in
480	480	person or by courier [unless ] if:
481	481	(1) the solicitation and collection [or attempt
482	482	to collect occur contemporaneously ] occurs simultaneously ; or
483	483	(2) the solicitation [includes ] involves the
484	484	sale of goods or items and the collection [or attempt to
485	485	collect occurs contemporaneously ] occurs simultaneously with
486	486	.229559.1
487	487	- 9 - underscored material = new
488	488	[bracketed material] = delete
489	489	1
490	490	2
491	491	3
492	492	4
493	493	5
494	494	6
495	495	7
496	496	8
497	497	9
498	498	10
499	499	11
500	500	12
501	501	13
502	502	14
503	503	15
504	504	16
505	505	17
506	506	18
507	507	19
508	508	20
509	509	21
510	510	22
511	511	23
512	512	24
513	513	25
514	514	the delivery of the goods or items agreed to be purchased by
515	515	the contributor."
516	516	SECTION 5. Section 57-22-6.4 NMSA 1978 (being Laws 1999,
517	517	Chapter 124, Section 15) is amended to read:
518	518	"57-22-6.4. PROFESSIONAL FUNDRAISER--THIRD-PARTY
519	519	SOLICITOR--RECORDS AND REPORTS.--
520	520	A. At least every six months, the professional
521	521	fundraiser shall account in writing to the charitable
522	522	organization for all contributions received and all expenses
523	523	incurred under their contract. The charitable organization
524	524	shall maintain a copy of the accounting of contributions and
525	525	expenses for three years and make it available to the attorney
526	526	general upon request. The professional fundraiser shall
527	527	maintain a record of written commitments from recipients of
528	528	donated tickets and provide those records to the attorney
529	529	general upon request.
530	530	B. All contributions of money received by the
531	531	professional fundraiser shall be deposited in an account at a
532	532	federally insured financial institution within two days after
533	533	receipt. The account shall be established and maintained in
534	534	the name of the charitable organization. Disbursements from
535	535	the account shall be made upon warrants signed by an authorized
536	536	representative of the charitable organization and may also be
537	537	signed by the professional fundraiser.
538	538	C. The professional fundraiser shall include the
539	539	.229559.1
540	540	- 10 - underscored material = new
541	541	[bracketed material] = delete
542	542	1
543	543	2
544	544	3
545	545	4
546	546	5
547	547	6
548	548	7
549	549	8
550	550	9
551	551	10
552	552	11
553	553	12
554	554	13
555	555	14
556	556	15
557	557	16
558	558	17
559	559	18
560	560	19
561	561	20
562	562	21
563	563	22
564	564	23
565	565	24
566	566	25
567	567	following information in its accounting required by Subsection
568	568	A of this section to the charitable organization:
569	569	(1) the name and address of each person
570	570	contributing to the charitable organization and the date and
571	571	amount of the contribution. This information shall not be
572	572	publicly disclosed and shall be used only for law enforcement
573	573	purposes;
574	574	(2) the name and residence address of each
575	575	employee, agent or other person involved in the solicitation;
576	576	(3) the script or other instructional
577	577	information provided by the charitable organization or
578	578	professional fundraiser to employees, agents or other persons
579	579	conducting solicitations;
580	580	(4) a description of the location and telephone
581	581	numbers from which the solicitation campaign will be conducted
582	582	if conducted by telephone;
583	583	(5) an audio recording of each telephone
584	584	solicitation conducted by the professional fundraiser;
585	585	[(4)] (6) a record of expenses incurred by the
586	586	professional fundraiser that the charitable organization paid;
587	587	[and]
588	588	[(5)] (7) the name and address of each financial
589	589	institution and the account number of each account in which the
590	590	professional fundraiser deposited contributions received from
591	591	the solicitation;
592	592	.229559.1
593	593	- 11 - underscored material = new
594	594	[bracketed material] = delete
595	595	1
596	596	2
597	597	3
598	598	4
599	599	5
600	600	6
601	601	7
602	602	8
603	603	9
604	604	10
605	605	11
606	606	12
607	607	13
608	608	14
609	609	15
610	610	16
611	611	17
612	612	18
613	613	19
614	614	20
615	615	21
616	616	22
617	617	23
618	618	24
619	619	25
620	620	(8) the gross revenue received and an itemized
621	621	list of expenses incurred; and
622	622	(9) a sworn statement certifying that the
623	623	solicitation campaign records are true and correct .
624	624	D. The professional fundraiser and the employees of
625	625	the professional fundraiser shall disclose the following in
626	626	solicitations:
627	627	(1) the name of the charitable organization; and
628	628	(2) the fact that the solicitation is made by or
629	629	through a professional fundraiser.
630	630	E. No later than ninety days after the completion of
631	631	a solicitation campaign, the professional fundraiser shall
632	632	provide a detailed financial report, including gross revenue
633	633	and expenses, to the charitable organization and file a copy
634	634	with the attorney general.
635	635	F. On a schedule provided in the contract with a
636	636	charitable organization, the third-party solicitor shall
637	637	account in writing to the charitable organization for the
638	638	market value of the total weight of goods donated within the
639	639	reporting period and a detailed financial report, including
640	640	gross revenue and expenses for the period. The third-party
641	641	solicitor shall file a copy of the report with the attorney
642	642	general.
643	643	[E.] G. Every professional fundraiser, third-party
644	644	solicitor and charitable organization shall have either a
645	645	.229559.1
646	646	- 12 - underscored material = new
647	647	[bracketed material] = delete
648	648	1
649	649	2
650	650	3
651	651	4
652	652	5
653	653	6
654	654	7
655	655	8
656	656	9
657	657	10
658	658	11
659	659	12
660	660	13
661	661	14
662	662	15
663	663	16
664	664	17
665	665	18
666	666	19
667	667	20
668	668	21
669	669	22
670	670	23
671	671	24
672	672	25
673	673	registered agent in the state or shall file a consent to
674	674	service of process with the attorney general. The consent to
675	675	service shall be in the form prescribed by the attorney general
676	676	and shall be irrevocable."
677	677	SECTION 6. A new section of the Charitable Solicitations
678	678	Act, Section 57-22-6.5 NMSA 1978, is enacted to read:
679	679	"57-22-6.5. [NEW MATERIAL ] COLLECTION RECEPTACLES--
680	680	INFORMATION REQUIRED.--The operator of a collection receptacle
681	681	shall display the following information on the receptacle in
682	682	clear and legible letters at least three inches in height:
683	683	A. the name, address and telephone number of the
684	684	charitable organization that will receive goods collected in
685	685	the receptacle;
686	686	B. if operated by a professional fundraiser or
687	687	third-party solicitor, the name, address and telephone number
688	688	of the professional fundraiser or third-party solicitor; and
689	689	C. a statement that financial arrangements between
690	690	the professional fundraiser or third-party solicitor and the
691	691	charitable organization are on file with the attorney general."
692	692	SECTION 7. Section 57-22-9.1 NMSA 1978 (being Laws 1999,
693	693	Chapter 124, Section 16) is amended to read:
694	694	"57-22-9.1. INVESTIGATIVE DEMAND--CIVIL PENALTY.--
695	695	A. Whenever the attorney general has reason to
696	696	believe that [any] a person may be in possession, custody or
697	697	control of information or documentary material, including an
698	698	.229559.1
699	699	- 13 - underscored material = new
700	700	[bracketed material] = delete
701	701	1
702	702	2
703	703	3
704	704	4
705	705	5
706	706	6
707	707	7
708	708	8
709	709	9
710	710	10
711	711	11
712	712	12
713	713	13
714	714	14
715	715	15
716	716	16
717	717	17
718	718	18
719	719	19
720	720	20
721	721	21
722	722	22
723	723	23
724	724	24
725	725	25
726	726	original or copy of [any ] a book, record, report, memorandum,
727	727	paper, communication, tabulation, chart, photograph, mechanical
728	728	transcription or other tangible document or recording, that the
729	729	attorney general believes to be relevant to the subject matter
730	730	of an investigation of a probable violation of the Charitable
731	731	Solicitations Act, the attorney general may, prior to the
732	732	institution of a civil proceeding, execute in writing and cause
733	733	to be served upon the person a civil investigative demand. The
734	734	demand shall require the person to answer interrogatories or to
735	735	produce documentary material and permit the inspection and
736	736	copying of the material. The demand of the attorney general
737	737	shall not be a matter of public record and shall not be
738	738	published by [him] the attorney general except by order of the
739	739	court.
740	740	B. Each demand shall:
741	741	(1) state the general subject matter of the
742	742	investigation;
743	743	(2) describe with reasonable certainty the
744	744	information or documentary material to be provided;
745	745	(3) identify the time period within which the
746	746	information or documentary material is to be provided, which in
747	747	no case shall be less than ten days after the date of service
748	748	of the demand; and
749	749	(4) state the date on which [any ] documentary
750	750	material [shall be] is available for inspection and copying.
751	751	.229559.1
752	752	- 14 - underscored material = new
753	753	[bracketed material] = delete
754	754	1
755	755	2
756	756	3
757	757	4
758	758	5
759	759	6
760	760	7
761	761	8
762	762	9
763	763	10
764	764	11
765	765	12
766	766	13
767	767	14
768	768	15
769	769	16
770	770	17
771	771	18
772	772	19
773	773	20
774	774	21
775	775	22
776	776	23
777	777	24
778	778	25
779	779	C. No demand shall:
780	780	(1) contain [any] a requirement that would be
781	781	unreasonable or improper if contained in a subpoena duces tecum
782	782	issued by a court of the state;
783	783	(2) require the disclosure of [any ]
784	784	documentary material that would be privileged or that for any
785	785	other reason would not be required by a subpoena duces tecum by
786	786	a court of the state; or
787	787	(3) require the removal of [any ] documentary
788	788	material from the custody of the person upon which the demand
789	789	is served except in accordance with the provisions of
790	790	Subsection E of this section.
791	791	D. Service of the demand may be made by:
792	792	(1) delivering a duly executed copy of the
793	793	demand to the person to be served or, if the person is not a
794	794	natural person, to the registered or statutory agent for the
795	795	person to be served;
796	796	(2) delivering a duly executed copy of the
797	797	demand to the principal place of business in New Mexico of the
798	798	person to be served; or
799	799	(3) mailing by registered mail or certified
800	800	mail a duly executed copy of the demand addressed to the person
801	801	to be served at [his] the person's principal place of business
802	802	in the state or, if the person has no place of business in the
803	803	state, to [his] the person's principal place of business.
804	804	.229559.1
805	805	- 15 - underscored material = new
806	806	[bracketed material] = delete
807	807	1
808	808	2
809	809	3
810	810	4
811	811	5
812	812	6
813	813	7
814	814	8
815	815	9
816	816	10
817	817	11
818	818	12
819	819	13
820	820	14
821	821	15
822	822	16
823	823	17
824	824	18
825	825	19
826	826	20
827	827	21
828	828	22
829	829	23
830	830	24
831	831	25
832	832	E. Documentary material demanded pursuant to
833	833	Subsection A of this section shall be produced for inspection
834	834	and copying during normal business hours at the principal place
835	835	of business of the person served or may be inspected and copied
836	836	at such other times and places as may be agreed upon by the
837	837	person served and the attorney general.
838	838	F. Documentary material and its contents produced
839	839	pursuant to a demand or answers to interrogatories shall not be
840	840	produced for inspection or copying by anyone other than an
841	841	authorized employee of the attorney general. The district
842	842	court in the county in which the person resides or has [his ]
843	843	the person's principal place of business or is about to perform
844	844	or is performing the practice that is alleged to be unlawful
845	845	[under] pursuant to the Charitable Solicitations Act may order
846	846	documentary material, its contents or answers to
847	847	interrogatories to be produced for inspection or copying by
848	848	someone other than an authorized employee of the attorney
849	849	general.
850	850	G. At any time before the return date of the
851	851	demand, a petition to set aside the demand, modify the demand
852	852	or extend the return date on the demand may be filed in the
853	853	district court in the county in which the person resides or has
854	854	[his] the person's principal place of business or is about to
855	855	perform or is performing the practice that is alleged to be
856	856	unlawful [under] pursuant to the Charitable Solicitations Act,
857	857	.229559.1
858	858	- 16 - underscored material = new
859	859	[bracketed material] = delete
860	860	1
861	861	2
862	862	3
863	863	4
864	864	5
865	865	6
866	866	7
867	867	8
868	868	9
869	869	10
870	870	11
871	871	12
872	872	13
873	873	14
874	874	15
875	875	16
876	876	17
877	877	18
878	878	19
879	879	20
880	880	21
881	881	22
882	882	23
883	883	24
884	884	25
885	885	and the court upon showing of good cause may set aside the
886	886	demand, modify it or extend the return date on the demand.
887	887	H. If after service of the demand the person
888	888	neglects or refuses to comply with the demand, the attorney
889	889	general may invoke the aid of the court in the enforcement of
890	890	the demand.
891	891	I. This section shall not be applicable to criminal
892	892	prosecutions.
893	893	J. In an action brought pursuant to the Charitable
894	894	Solicitations Act, if the court finds that a person has
895	895	violated a provision of that act or rules promulgated pursuant
896	896	to that act, the attorney general may recover, on behalf of the
897	897	state, a maximum civil penalty of five thousand dollars
898	898	($5,000) per violation.
899	899	K. The attorney general may require a financial
900	900	audit, conducted by an independent certified public accountant,
901	901	for any charitable organization, professional fundraiser or
902	902	third-party solicitor. "
903	903	- 17 -
904	904	.229559.1