Section 162.9 - Registration of professional solicitors; contract and disclosure requirements; bonds; records; books(a) Registration and approval required.-- No person shall act as a professional solicitor before obtaining department approval of a registration statement pursuant to subsection (d) or after the expiration, suspension or revocation of such registration. A registration application shall be signed and made by the principal officer of the professional solicitor subject to 18 Pa.C.S. § 4904 (relating to unsworn falsification to authorities) and shall contain all of the following information: (1) The address of the principal place of business of the applicant and any Pennsylvania addresses, if the principal place of business is located outside this Commonwealth.(2) The form of the applicant's business.(3) The names and residence addresses of all principals of the applicant, including all officers, directors and owners.(4) Whether any of the owners, directors, officers or employees of the applicant are related by blood, marriage or adoption to any other directors, officers, owners or employees of the applicant, any officer, director, trustee or employee of any charitable organization under contract to the applicant or any supplier or vendor providing goods or services to any charitable organization under contract to the applicant.(5) The name of all persons in charge of any solicitation activity.(6) Any other information required by the regulations of the department.(b) Registration fee.-- The application for registration shall be accompanied by a fee of $250. A professional solicitor which is a partnership or corporation may register for and pay a single fee on behalf of all of its partners, members, officers, directors, agents and employees. Each registration shall be valid for one year and may be renewed for additional one-year periods upon application to the department and payment of the registration fee.(c) Bond.-- A professional solicitor shall, at the time of making application for registration and renewal of registration, file with and have approved by the department a bond, in which it shall be the principal obligor in the sum of $25,000, or a greater amount as prescribed by the regulations of the department and which shall have one or more sureties satisfactory to the department whose liability in the aggregate as such sureties will at least equal that sum and maintain the bond in effect as long as the registration is in effect. The bond shall run to the Commonwealth for use of the secretary, Attorney General and any person who may have a cause of action against the obligor for any losses resulting from malfeasance, nonfeasance or misfeasance in the conduct of solicitation activities. A professional solicitor which is a partnership or corporation may file one $25,000 bond or an amount specified by regulation of the department on behalf of all its partners, members, officers, directors, agents and employees.(d) Department review of registration statement.--The department shall examine each registration statement and supporting documents filed by a professional solicitor and shall determine whether the registration requirements are satisfied. If the department determines that registration requirements are not satisfied, the department must notify the professional solicitor within 15 working days of its receipt of its registration statement; otherwise the registration statement is deemed to be approved. Within 15 days after receipt of a notification that the regulation requirements are not satisfied, the professional solicitor may request a hearing. The hearing must be held within 15 days of receipt of the request, and a determination must be rendered within three working days of the hearing.(e) Contract filing.-- No less than ten working days prior to the commencement of each solicitation campaign, event or services, a professional solicitor shall file with the department a copy of the contract described in subsection (f) and a written solicitation notice. No solicitation or services pursuant to the contract shall begin before the department has approved the contract pursuant to subsection (g). The solicitation notice shall be accompanied by a fee of $25 and shall be signed and sworn to by the authorized contracting officer for the professional solicitor. If more than one event or campaign is conducted under a contract, then a solicitation notice addendum must be filed no less than ten working days prior to the commencement of each additional event or campaign. No additional fee is required to file the addendum. The solicitation notice and addendum shall contain all of the following information: (1) A description of the solicitation event or campaign.(2) Each location and telephone number from which the solicitation is to be conducted.(3) The legal name and resident address of each person responsible for directing and supervising the conduct of the campaign and each person who is to solicit during such campaign.(4) A statement as to whether the professional solicitor will at any time have custody or control of contributions.(5) The account number and location of each bank account where receipts from the campaign are to be deposited.(6) A full and fair description of the charitable program for which the solicitation campaign is being carried out.(7) The date the solicitation campaign or event will begin or be held within this Commonwealth and the termination date for each campaign or event.(8) Any other information required by the regulations of the department.(f) Written contract.-- There shall be a written contract between a professional solicitor and a charitable organization for each solicitation campaign which shall be signed by two authorized officials of the charitable organization, one of whom must be a member of the organization's governing body, and the authorized contracting officer for the professional solicitor and which shall contain all of the following provisions:(1) The legal name and address of the charitable organization as registered with the department, unless that charitable organization is exempt from registration.(2) A statement of the charitable purpose for which the solicitation campaign is being conducted.(3) A statement of the respective obligations of the professional solicitor and the charitable organization.(4) A statement of the guaranteed minimum percentage of the gross receipts from contributions which will be remitted to or retained by the charitable organization, if any, or, if the solicitation involves the sale of goods, services or tickets to a fundraising event, the percentage of the purchase price which will be remitted to the charitable organization, if any. Any stated percentage shall exclude any amount which the charitable organization is to pay as fundraising costs.(5) A statement of the percentage of the gross revenue which the professional solicitor will be compensated. The stated percentage shall include any amount which the professional solicitor is to be reimbursed as payment for fundraising costs. If the compensation of the professional solicitor is not contingent upon the number of contributions or the amount of revenue received, his compensation shall be expressed as a reasonable estimate of the percentage of the gross revenue, and the contract shall clearly disclose the assumptions upon which the estimate is based. The stated assumptions shall be based upon all of the relevant facts known to the professional solicitor regarding the solicitation to be conducted by the professional solicitor.(6) The effective and termination dates of the contract, or, if the contract does not have a set termination date, the contract shall contain a clause allowing either party a reasonable period to terminate the contract or notify the other party if either party chooses not to renew. The contract shall also contain the date solicitation activity is to commence within this Commonwealth.(7) Any other information required by the regulations of the department.(g) Department review of contract.-- The department shall examine each contract and solicitation notice filed by a professional solicitor and shall determine whether the contract and notice contain the required information. If the department determines that the requirements are not satisfied, the department must notify the professional solicitor within ten working days of its receipt of the contract and notice; otherwise the contract and notice are deemed to be approved. Within seven days after receipt of a notification that the requirements are not satisfied, the professional solicitor may request a hearing. The hearing must be held within seven days of receipt of the request, and a determination must be rendered within three working days of the hearing.(h) Required disclosures.-- Prior to orally requesting a contribution or contemporaneously with a written request for a contribution, a professional solicitor shall be responsible for clearly and conspicuously disclosing: (1) The name of the professional solicitor as on file with the department and that the solicitation is being conducted by a professional solicitor who is being paid for his services.(2) If the individual acting on behalf of the professional solicitor identifies himself by name, the individual's legal name.(3) The legal name of the charitable organization as registered with the department and a description of how the contributions raised by the solicitation will be utilized for a charitable purpose or, if there is no charitable organization, a description as to how the contributions raised by the solicitation will be utilized for a charitable purpose.(i) Responses.-- Any responses given by or on behalf of a professional solicitor to an oral or written request for information shall be truthful.(j) Information on disclosure.-- In the case of a solicitation campaign conducted orally, whether by telephone or otherwise, any written confirmation, receipt, and reminder sent to any person who has contributed or has pledged to contribute shall include a clear and conspicuous disclosure of the information required by subsection (h).(k) Notice.-- In addition to the information required by subsection (j), any written confirmation, receipt and reminder of a contribution made pursuant to an oral solicitation and any written solicitation shall conspicuously state verbatim: The official registration and financial information of (insert the legal name of the charity as registered with the department) may be obtained from the Pennsylvania Department of State by calling toll free, within Pennsylvania, 1 (800) 000-0000. Registration does not imply endorsement.
(l) Financial reports.-- Within 90 days after a solicitation campaign or event has been completed and on the anniversary of the commencement of a solicitation campaign lasting more than one year, a professional solicitor shall file with the department a financial report for the campaign, including gross revenue and an itemization of all expenses incurred. This report shall be signed and sworn to by the authorized contracting agent for the professional solicitor and two authorized officials of the charitable organization.(m) Retention of records, etc.-- A professional solicitor shall maintain during each solicitation campaign and for not less than three years after the completion of such campaign the following records, which shall be available for inspection upon demand by the department or the Office of Attorney General: (1) The date and amount of each contribution received and the name and address of each contributor.(2) The name and residence of each employee, agent or other person involved in the solicitation.(3) Records of all revenue received and expenses incurred in the course of the solicitation campaign.(4) The location and account number of each bank or other financial institution account in which the professional solicitor has deposited revenue from the solicitation campaign.(n) Records from ticket sales.-- If the professional solicitor sells tickets to an event and represents that tickets will be donated for use by another, the professional solicitor shall maintain, for not less than three years after the completion of such event, the following records, which shall be available for inspection upon demand by the department or the Office of Attorney General: (1) The number of tickets purchased and donated by each contributor.(2) The name and address of all organizations receiving donated tickets for use by others, including the number of tickets received by each organization.(o) Deposit of contributions.-- Each contribution in the control or custody of the professional solicitor shall, in its entirety and within five days of its receipt, be deposited in an account at a bank or other federally insured financial institution which shall be in the name of the charitable organization. The charitable organization shall maintain and administer the account and shall have sole control of all withdrawals.(p) Updating of information.-- Any material change in any information filed with the department pursuant to this section shall be reported in writing by the professional solicitor to the department not more than seven days after such change occurs.(q) Restrictions.--(1) No person may act as a professional solicitor if such person, any officer or director thereof, any person with a controlling interest therein, or any person the professional solicitor employs, engages or procures to solicit for compensation, has been convicted by a court of any state or the United States of any felony, or of any misdemeanor involving dishonesty or arising from the conduct of a solicitation for a charitable organization or purpose.(2) A professional solicitor shall not solicit in this Commonwealth on behalf of a charitable organization unless that charitable organization is registered or is exempt from registration with the department.Amended by P.L. TBD 2017 No. 72, § 1, eff. 2/20/2018.1990, Dec. 19, P.L. 1200, No. 202, § 9, effective in 60 days. Amended 1992, July 9, P.L. 436, No. 92, § 5, imd. effective; 2001, June 22, P.L. 588, No. 45, § 2, effective in 60 days.