§ 131F-23. Enforcement. - North Carolina Statutes

§131F‑23.  Enforcement.

(a)        Investigation. –The Department may conduct an investigation of any person whenever there is anallegation or appearance, either upon complaint or otherwise, that a violationof this Chapter or of any rule adopted or of any order issued pursuant to thisChapter has occurred or is about to occur.

(b)        Subpoena Power. –The Department may issue and serve subpoenas and subpoenas duces tecum tocompel the attendance of witnesses and the production of all books, accounts,records, and other documents and materials relevant to an examination orinvestigation. The Department, or its duly authorized representative, mayadminister oaths and affirmations to any person.

(c)        Court Action. – Inthe event of substantial noncompliance with a subpoena or subpoena duces tecumissued or caused to be issued by the Department, the Department may petitionthe superior court of the county in which the person subpoenaed resides or hasthe principal place of business for an order requiring the subpoenaed person toappear and testify and to produce any books, accounts, records, and otherdocuments as are specified in the subpoena duces tecum. The court may grantinjunctive relief restraining the person from collecting contributions and anyother relief, including the restraint by injunction or appointment of areceiver, or any transfer, pledge, assignment, or other disposition of theperson's assets, or any concealment, alteration, destruction, or otherdisposition of subpoenaed books, accounts, records, or other documents andmaterials as the court deems appropriate, until the person or organization hasfully complied with the subpoena or subpoena duces tecum and the Department hascompleted its investigation or examination. The court may also order the personto produce a financial statement that has been audited by an independentcertified public accountant. Costs incurred by the Department to obtain anorder granting, in whole or in part, a petition for enforcement of a subpoenaor subpoena duces tecum shall be taxed against the subpoenaed person andfailure to comply with the order shall be contempt of court.

(d)        Violations. – TheDepartment may enter an order imposing one or more of the penalties set forthin subsection (e) of this section if the Department finds that a charitableorganization, sponsor, fund‑raising consultant, or solicitor, or theirofficers, agents, directors, or employees have engaged in any of the followingacts:

(1)        Violated or isoperating in violation of any of the provisions of this Chapter or of the rulesadopted or orders issued under this Chapter.

(2)        Made a falsestatement in an application, statement, or report required to be filed underthis Chapter.

(3)        Refused or failed,after notice, to produce any records or to disclose any information required tobe disclosed under this Chapter or the rules adopted by the Department.

(4)        Made a falsestatement in response to any request or investigation by the Department or theAttorney General.

(e)        Penalties. – Upon afinding as set forth in subsection (d) of this section, the Department mayenter an order as follows:

(1)        Imposing anadministrative penalty not to exceed one thousand dollars ($1,000) for each actor omission which constitutes a violation of this Chapter or a rule or an order.

(2)        Issuing a cease anddesist order that directs that the person cease and desist specified fund‑raisingactivities.

(3)        Refusing to registeror cancelling or suspending a registration.

(4)        Placing theregistrant on probation for a period of time, subject to such conditions as theDepartment may specify.

(5)        Issuing of a letterof concern.

(6)        Cancelling anexemption granted under G.S. 131F‑3.

(f)         Procedures. –Except as otherwise provided in this section, the administrative proceedingswhich could result in the entry of an order imposing any of the penaltiesspecified in subsection (e) of this section are governed by Chapter 150B of theGeneral Statutes.

(g)        Disposition ofPenalties. – The clear proceeds of penalties provided for in subsection (e) ofthis section shall be remitted to the Civil Penalty and Forfeiture Fund inaccordance with G.S. 115C‑457.2. (1993 (Reg. Sess., 1994), c.759, s. 2; 1998‑215, s. 81.)