§ 131F-15. License required for fund-raising consultant. - North Carolina Statutes

Article3.

Fund‑RaisingConsultants, Solicitors, and Coventurers.

§ 131F‑15.  Licenserequired for fund‑raising consultant.

(a)        License Required. –Unless exempted under G.S. 131F‑3, a person shall not act as a fund‑raisingconsultant in this State unless that person has obtained a license from theDepartment.

(b)        LicenseApplication. – Applications for a license or renewal of a license shall besubmitted on a form provided by the Department, shall be signed under oath, andshall include the following:

(1)        The street addressand telephone number of the principal place of business of the applicant andany street addresses of business locations in this State if the principal placeof business is located outside this State.

(2)        The form of theapplicant's business.

(3)        The names andresidence addresses of all officers, directors, and owners.

(4)        Whether any of theowners, directors, officers, or employees of the applicant are related asparent, child, spouse, or sibling to any of the following individuals:

a.         Other directors,officers, owners, or employees of the applicant.

b.         Any officer,director, trustee, or employee of any charitable organization or sponsor undercontract to the applicant.

c.         Any supplier orvendor providing goods or services to any charitable organization or sponsorunder contract to the applicant.

(5)        Whether theapplicant or any of the applicant's officers, directors, employees, or ownershave, within the last five years, been convicted of any felony, or of anymisdemeanor arising from the conduct of a solicitation for a charitableorganization or sponsor or charitable or sponsor purpose, or been enjoined fromviolating a charitable solicitation law in this or any other state.

(c)        Fees. – Theapplication for an initial or renewal license shall be accompanied by a licensefee of two hundred dollars ($200.00). A fund‑raising consultant that is apartnership or corporation may obtain a license for and pay a single fee onbehalf of all of its partners, members, officers, directors, agents, and employees.In that case, the names and street addresses of all of the officers, employees,and agents of the fund‑raising consultant and all other persons with whomthe fund‑raising consultant has contracted to work under its directionshall be listed in the license application. Each license is valid for one yearor a part of one year and expires on March 31 of each year. The license may berenewed on or before March 31 of each year for additional one‑yearperiods upon application to the Department and payment of the license fee.

(d)        Contracts. – Everycontract or agreement between a fund‑raising consultant and a charitableorganization or sponsor shall be in writing, signed by two authorized officialsof the charitable organization or sponsor, and filed by the fund‑raisingconsultant with the Department at least five days prior to the performance ofany service by the fund‑raising consultant. Solicitation under thecontract or agreement shall not begin before the filing of the contract oragreement. The contract shall contain all of the following provisions:

(1)        A statement of thecharitable purpose or sponsor purpose for which the solicitation campaign isbeing conducted.

(2)        A statement of therespective obligations of the fund‑raising consultant and the charitableorganization or sponsor.

(3)        A clear statement ofthe fee that will be paid to the fund‑raising consultant.

(4)        The effective andtermination dates.

(5)        A statement that thefund‑raising consultant shall not, at any time, have control or custodyof contributions.

(e)        DepartmentalReview. – The Department shall examine each application or renewal filed by afund‑raising consultant and determine whether the requirements aresatisfied. If the Department determines that the requirements are not satisfied,the Department shall notify the fund‑raising consultant within 10 daysafter its receipt of the application or renewal. If the Department does notrespond within 10 days, the license is deemed approved. Within seven days afterreceipt of a notification that the license requirements are not satisfied, theapplicant may file a petition for a contested case. The State has the burden ofproof in the contested case. The contested case hearing must be held withinseven days after the petition is filed. A recommended decision must be madewithin three days of the hearing. A final decision must be made within two daysafter the recommended decision. The contested case hearing proceedings shall beconducted in accordance with Chapter 150B of the General Statutes, except thatthe time limits and provisions set forth in this section shall prevail to theextent of any conflict. The applicant shall be permitted to continue to operateor continue operations pending judicial review of the Department's denial ofthe application. The Department shall make rules regarding the custody andcontrol of any funds collected during the review period and disposal of suchfunds in the event the denial of the application is affirmed on appeal.

(f)         Fund. – Alllicense fees shall be paid to the Department and deposited into theSolicitation of Contributions Fund to be used to pay the costs incurred inadministering and enforcing this Chapter.

(g)        Change inInformation. – Unless otherwise provided, any material change in informationfiled with the Department pursuant to this section shall be reported in writingto the Department within seven working days after the change occurred. (1981,c. 886, s. 1; 1985, c. 497, s. 1; 1989, c. 566, s. 2; 1993 (Reg. Sess., 1994),c. 759, s. 2.)