Req. No. 5995 Page 1 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
STATE OF OKLAHOMA
1st Session of the 58th Legislature (2021)
HOUSE BILL 2363 By: Burns
AS INTRODUCED
An Act relating to charitable organizations ; creating
disclosure requirements for solicitation materials;
amending 18 O.S. 2011, Section 5 52.3, as last amended
by Section 1, Chapter 4, O.S.L. 2013 (18 O.S. Supp.
2020, Section 552.3), which relates to registration;
modifying required information; amending 18 O.S.
2011, Section 552.14 a, which relates to violations of
the Oklahoma Solicitation of Charitable Contributions
Act; adding certain violation; updating references;
providing for codification; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 552.23 of Title 18, unless there
is created a duplication in numbering, reads as follows:
A. Every charitable organization and professional fundraiser
that is required to be registered with the Office of the Secretary
of State pursuant to Sections 552.3 and 552.7 of Title 18 of the
Oklahoma Statutes shall disclose all of the following information at
the time of solicitation:
Req. No. 5995 Page 2 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1. The legal name of the charitable organization, any trade
names that the charitable organization uses, any other name the
organization may be identified or known as, and any distinctive
names the organization uses for purposes of solicitation of
contributions, as the name(s) appears on file with the Office of the
Secretary of State, on whose behalf the solicitation is being made;
2. Upon request, the program(s) the funds solicited will be
used to support;
3. Upon request, the approximate percentage of contributions
solicited in a fiscal year to remain in Oklahoma; an d
4. Upon request, the process to obtain for free an copy of the
charitable organization’s registration and financial information
from the Office of the Secretary of State.
B. In addition to the information required by subsection A,
every written or prin ted solicitation shall prominently state the
following disclosure statement verbatim:
"A copy of [insert name of the charitable organization as it
appears on file with the Office of the Secretary of State] 's
registration with the State of Oklahoma and fina ncial information
are available for free from the Oklahoma Office of the Secretary of
State. Registration is not an endorsement by the State. "
The disclosure statement shall be prominently displayed by use
of one or more of the following: underlining, a b order, or bold
type. Where the solicitation consists of more than one piece, the
Req. No. 5995 Page 3 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
disclosure statement shall be displayed on a prominent part of the
solicitation materials. If the solicitation occurs on a website,
the disclosure statement must be prominen tly displayed on any
webpage that identifies a mailing address where contributions are to
be sent, identifies a telephone number to call to process
contributions, or provides for online processing of contributions.
SECTION 2. AMENDATORY 18 O.S. 2011, Section 552.3, as
amended by Section 1, Chapter 4, O.S.L. 2013 (18 O.S. Supp. 2020,
Section 552.3), is amended to read as follows:
Section 552.3 A. No charitable organization that is either
located within this state or that is solici ting contributions from
any person in this state, except those specifically exempt under
Section 552.4 of this title, shall solicit contributions until the
charitable organization shall have registered with the Office of the
Secretary of State and filed in formation, as required by the
Oklahoma Solicitation of Charitable Contributions Act, on forms
approved by that office. At the time of registration, each
charitable organization, except as otherwise provided in this
section, shall pay a fee of Sixty -five Dollars ($65.00). The first
Fifteen Dollars ($15.00) of the fee shall be deposited to the credit
of the General Revenue Fund of the State Treasury. Thirty -four
Dollars ($34.00) of the fee shall be deposited to the credit of the
Attorney General Charitable Solicitations Enforcement Revolving Fund
and the remaining Sixteen Dollars ($16.00) shall be deposited to the
Req. No. 5995 Page 4 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
credit of the Secretary of State Charitable Solicitations Revolving
Fund. Provided, a charitable organization whose contributions
during the previous registration period did not exceed Ten Thousand
Dollars ($10,000.00) or if this is the charitable organization's
first registration period and the anticipated contributions for the
current registration period are not expected to exceed Ten Thousand
Dollars ($10,000.00), shall pay a fee of Fifteen Dollars ($15.00) of
which Ten Dollars ($10.00) shall be deposited to the credit of the
Attorney General Charitable Solicitations Enforcement Revolving Fund
and the remaining Five Dollars ($5.00) shall be depo sited to the
credit of the Secretary of State Charitable Solicitations Revolving
Fund. Each charitable organization that is required to register
under this act shall register annually with the Secretary of State
by the date that the charitable organizatio n files its Form 990 or
by the date, plus extensions, that it is required to file its Form
990, whichever occurs first. Registration shall not be deemed to
constitute an endorsement by the state or by the Secretary of State
of any charitable organization or the proposed uses of the funds
solicited. The information so filed shall be available to the
general public. The charitable organization shall provide the
following information on the required forms:
1. The legal name of the charitable organization, any trade
names that the charitable organization uses, any other name the
organization may be identified or known as, and any distinctive
Req. No. 5995 Page 5 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
names the organization uses for purposes of solicitation of
contributions;
2. The mailing address of the charitable o rganization;
3. The name and mailing address of:
a. each officer, director, trustee, and/or equivalent, and
b. each salaried executive employee of the charitable
organization;
4. The name and mailing address of:
a. each professional fundraiser or profess ional solicitor
that will have custody of the contributions, and
b. each person associated with a professional fundraiser,
professional solicitor or charitable organization that
is directly responsible for the payment and
distribution of funds collected;
5. The name and mailing address of each professional
fundraising counsel utilized by the charitable organization;
6. For charitable organizations that register for the first
time, a statement of whether or not the charitable organization
believes contributions for the first year of registration will
exceed Ten Thousand Dollars ($10,000.00);
7. The purposes for which the contributions solicited are to be
used;
8. The approximate percentage of contributions solicited in a
fiscal year to remain in Oklahoma;
Req. No. 5995 Page 6 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
8. 9. For the initial registration of a newly formed charitable
organization, a copy of a letter from the Internal Revenue Service,
or other evidence, showing that such organization is exempt from
federal income taxation; or, for a charitable organizatio n that has
not applied for federal income tax exemption with the Internal
Revenue Service or is not required to apply for federal income tax
exemption, evidence showing that said charitable organization is
organized in any state or jurisdiction as a not -for-profit entity;
9. 10. An identification of the period of time or periods
during which solicitations are to be conducted, which may be
specific periods, estimated or projected time frames, or continuous,
and which may involve different periods for differ ent types of
solicitations by the same charitable organization;
10. 11. An identification of the specific method or methods of
solicitation utilized by the charitable organization and its agents;
11. 12. Whether the solicitation is to be conducted by the
following for or on behalf of the charitable organization:
professional fundraisers, employees or volunteers of the charitable
organization, and/or others; and
12. 13. If the solicitation is to be conducted in whole or in
part by professional fundraiser s, the names and addresses of each
professional fundraiser involved in the solicitation; the basis of
payment or other consideration payable to each professional
fundraiser and the nature of the arrangements between the charitable
Req. No. 5995 Page 7 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
organization and each pro fessional fundraiser, the specific amount,
formula or percentage of compensation, or property of any kind or
value to be paid or provided to each professional fundraiser; and if
payment is based on a percentage, the amount of compensation as a
percentage of the total contributions received, and the net amount
of the total contributions received (total contributions received,
less expenses of solicitation other than amounts payable to any
professional fundraiser).
B. In addition to the required information in subsection A of
this section, every charitable organization subject to the
provisions of the Oklahoma Solicitation of Charitable Contributions
Act that has solicited contributions during the previous fiscal year
shall provide the following information:
1. The gross amount of the contributions, gifts, grants and
other similar amounts received by the charitable organization;
2. The total Program Service Expenses of the charitable
organization;
3. The total Management and General Expenses of the charitab le
organization;
4. The total Fundraising Expenses of the charitable
organization;
5. The actual percentage of contributions solicited that
remained in Oklahoma; and
Req. No. 5995 Page 8 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
5. 6. The aggregate amount paid, or payable, to professional
fundraisers and professio nal fundraising counsel.
C. Any registration form required to be filed under this
section shall be executed by signature, without more, of the person
or persons signing the form, in which case the signature or
signatures shall constitute the affirmation o f the signatory, under
penalty of perjury, that the signature is that person's act and deed
or the act and deed of the organization, and that the facts stated
therein are true.
D. If a charitable organization that is registered with the
Secretary of State to solicit contributions in this state changes
its name or the mailing address of its principal office, or plans to
engage in the solicitation of contributions using a name that is not
listed on its registration form, then it shall, prior to soliciting
any funds in this state using any such name, file with the Secretary
of State a statement executed by an authorized officer of the
organization setting forth any new name and mailing address along
with a fee of Twenty -five Dollars ($25.00). Such fee shall b e
deposited to the credit of the General Revenue Fund of the State
Treasury.
E. Any fraternal or membership organization not based in
Oklahoma which solicits contributions from any person of this state
by telephone, or contracts with professional fundrais ers to solicit
such contributions, shall be required to have at least one member or
Req. No. 5995 Page 9 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
employee of the fraternal or membership organization residing within
the county where the call is received.
SECTION 3. AMENDATORY 18 O.S. 2011, Sect ion 552.14a, is
amended to read as follows:
Section 552.14a A. Applicable to charitable organizations,
professional fundraisers and professional solicitors, the following
shall constitute violations of this act:
1. Knowingly making any false material st atement or
representation on a registration application;
2. Using the name of a person when soliciting contributions or
in an advertisement, brochure, stationery or correspondence, without
the consent or approval of such person , other than an officer,
director or trustee of the charitable organization by or for which
contributions are solicited. This paragraph shall not apply to the
use of the name of a person that has contributed to or sponsored an
event or program of the charitable organization in a rep ort,
brochure, program or listing of donors, contributors , sponsors, or
supporters issued or published by a charitable organization . This
paragraph shall not apply to the use of a public figure 's name
and/or likeness truthfully and in good faith, so long as such use
does not imply a false endorsement ;
3. Knowingly using, in connection with solicitation of
contributions for the purpose of deceiving the public, a name
similar to other charitable organization s, professional fundraiser,
Req. No. 5995 Page 10 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
professional solicitor or government agency or political
subdivision;
4. Failing to register as required pursuant to Sections Section
552.3, 552.7 or 552.9, as applicable, of Title 18 of the Oklahoma
Statutes this title unless otherwise exempted by this act;
5. Employing in any solicitation or collection of contributions
for a charitable organization any device, scheme or artifice to
defraud or for obtaining money or property by means of any false
pretense, representation or promise; and
6. Failing or refusing to supply reque sted information as
required by Section 552.9 of Title 18 of the Oklahoma Statutes this
title; and
7. Failing or refusing to supply information as required by
Section 1 of this act.
B. The Attorney General or a district attorney may bring an
action:
1. To obtain a declaratory judgment that an act or practice
violates this act;
2. To enjoin, or to obtain a restraining order against a person
who has violated or is violating this act;
3. To recover actual damages, restitution, disgorgement and
penalties attributed to a violation of this act;
4. To recover reasonable expenses and investigation fees
attributable to a violation of this act;
Req. No. 5995 Page 11 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
5. To prosecute any civil or criminal actions as prov ided by
this act, as applicable; and
6. To revoke the registrati on of a charitable organizatio n,
professional fundraiser, or professional solicitor for any violation
of this act.
C. In lieu of instigating or continuing an action or
proceeding, the Attorney General or a district attorney may accept a
consent judgment with respect to any act or practice declared to be
a violation of this act. Such a consent judgment shall provide for
the discontinuance by the person entering the same of any act or
practice declared to be a violation of this act, and it may include
a stipulation for the payment by such person of reasonable expenses,
attorney fees, investigation costs and penalties incurred by the
Attorney General or a district attorney. The consent judgment also
may include a stipulation for restitution to be made by suc h person
to contributors of money, property or other things received from
contributors in connection with a violation of this act and also may
include a stipulation for specific performance. Any consent
judgment entered into pursuant to this section shall not be deemed
to admit the violation, unless it does so by its terms. Before any
consent judgment entered into pursuant to this section shall be
effective, it must be approved by the district court and an entry
made in the manner required for making an e ntry of judgment. After
such approval is received, any breach of the conditions of such
Req. No. 5995 Page 12 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
consent judgment shall be treated as a violation of a court order,
and shall be subject to all the penalties provided by law therefor.
D. In any action brought by the Attorney General or a district
attorney, the court may:
1. Make such orders or judgments as may be necessary to prevent
the use or employment by a person of any practice declared to be a
violation of this act;
2. Make such orders or judgments as may be necessary to
compensate any person for damages sustained;
3. Enjoin any person from engaging in solicitation of
charitable contributions in this state;
4. Revoke the registration of a charitable organization,
professional fundraiser or professional solic itor;
5. Enter any order that is appropriate in a criminal
prosecution of crimes identified in this act or any other state law;
and
6. Grant other appropriate relief.
E. When an action is filed under this act by the Attorney
General or a district attorn ey, no action seeking an injunction or
declaratory judgment shall be filed in any other district in this
state based upon the same transaction or occurrence, series of
transactions or occurrences, or allegations that form the basis of
the first action file d.
Req. No. 5995 Page 13 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
F. When the Attorney General or a district attorney has reason
to believe that a person has engaged in, is engaging in or is about
to engage in any practice declared to be in violation of this act
and he or she believes it to be in the public interest that an
investigation should be made to ascertain whether a person has in
fact engaged in, is engaging in or is about to engage in any such
practice, he or she may execute in writing and cause to be served
upon any such person who is believed to have infor mation,
documentary material or physical evidence relevant to the alleged
violation an investigative demand requiring such person to furnish,
under oath or otherwise, a report in writing setting forth the
nonprivileged relevant facts and circumstances of w hich the person
has knowledge, or to appear and testify, or to produce relevant
nonprivileged documentary material or physical evidence for
examination at such reasonable time and place as may be stated in
the investigative demand, concerning the solicitat ion of charitable
contributions.
G. To accomplish the objectives and to carry out the duties
prescribed by this act, the Attorney General or district attorney,
in addition to other powers conferred on him or her by this act or
the laws of this state, may issue subpoenas or other process to any
person and conduct hearings in aid of any investigation or inquiry,
administer oaths and take sworn statements under penalty of perjury,
and serve and execute in any county, search warrants; provided, that
Req. No. 5995 Page 14 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
none of the powers conferred by this act shall be used for the
purpose of compelling any natural person to furnish testimony or
evidence that might tend to incriminate him or her or subject him
or her to a penalty; and provided further, that information obtained
pursuant to the powers conferred by this act shall not be made
public or disclosed by the Attorney General, district attorney or
their employees unless otherwise provided under this act .
H. In addition to any other penalties provided under this act,
a charitable organization, professional fundraiser, or professional
solicitor that is found to be in violation of the Oklahoma
Solicitation of Charitable Contributions Act in a civil action or
who willfully violates the terms of any injunction or court order
issued pursuant to the Oklahoma Solicitation of Charitable
Contributions Act shall pay a civil penalty of not more than Ten
Thousand Dollars ($10,000.00) per violation, taking into account the
nature and severity of the violation and the benefit provided to th e
public by the violator, along with the need for protecting
contributors and donors . For the purposes of this section, the
district court issuing an injunction shall retain jurisdiction, and
in such cases, the Attorney General, acting in the name of the
state, or a district attorney may petition for recovery of civil
penalties.
I. In administering and pursuing actions under this act, the
Attorney General and a district attorney are authorized to sue for
Req. No. 5995 Page 15 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
and collect reasonable expenses, attorney fees, and investigation
fees as determined by the court. Civil penalties or contempt
penalties sued for and recovered by the Attorney General or a
district attorney shall be used for the furtherance of their duties
and activities under this act.
J. In addition to other penalties imposed by this act, any
person convicted in a criminal proceeding of committing an act
prohibited in paragraph 1, 3 or 5 of subsection A of this section,
shall be guilty of a felony and upon conviction thereof shall be
subject to a fine not to exceed Ten Thousand Dollars ($10,000.00) or
imprisonment in the custody of the Department of Corrections for not
more than five (5) years, or by both such fine and imprisonment.
SECTION 4. This act shall become effective November 1, 2021.
58-1-5995 AQH 12/23/20