CHAPTER 1804. SOLICITATION FOR VETERANS ORGANIZATIONS - Texas Statutes

OCCUPATIONS CODE

TITLE 11. REGULATION OF SALES AND SOLICITATION

CHAPTER 1804. SOLICITATION FOR VETERANS ORGANIZATIONS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1804.001. DEFINITIONS. In this chapter:

(1) "Veteran" means a person who has served on active duty in

the armed forces of the United States or in the state military

forces as defined by Section 431.001, Government Code.

(2) "Veterans organization" means a formally or informally

formed nongovernmental entity that:

(A) purports to include or represent veterans; or

(B) includes a term in its name leading a reasonable person to

assume the organization is associated with veterans or concerned

with veterans' issues.

(3) "Veterans organization solicitor" means a person who

receives monetary compensation for solicitation services for a

veterans organization and who solicits:

(A) a contribution of financial support or a purchase of goods

or services for a veterans organization in person, by telephone,

or by mail; or

(B) membership in a veterans organization from an individual who

is not a veteran.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 1804.002. EFFECT ON MUNICIPAL ORDINANCE. This chapter does

not preempt a municipal ordinance applicable to a veterans

organization or a veterans organization solicitor.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

SUBCHAPTER B. REGISTRATION REQUIREMENTS

Sec. 1804.051. REQUIREMENTS FOR SOLICITATION. (a) A veterans

organization may not use a veterans organization solicitor

unless:

(1) the organization:

(A) files a registration statement under Section 1804.053; and

(B) files and maintains a bond under Section 1804.101; and

(2) the solicitor complies with the requirements of Subsection

(b).

(b) A person may not act as a veterans organization solicitor

unless the person:

(1) files a registration statement under Section 1804.054; and

(2) files and maintains a bond under Section 1804.102.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 1804.052. ELIGIBILITY TO USE SOLICITOR. (a) A veterans

organization may register under Section 1804.053 and use a

veterans organization solicitor only if the organization consists

of individual members:

(1) of whom at least 90 percent or 500, whichever is less, are

veterans; and

(2) who have signed membership agreements with the organization.

(b) A veterans organization may not use a veterans organization

solicitor and a veterans organization solicitor may not solicit

for a veterans organization if the organization or the solicitor

has on three or more occasions forfeited a bond filed under this

chapter.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 1804.053. REGISTRATION STATEMENT BY VETERANS ORGANIZATION.

(a) Before beginning solicitations, a veterans organization must

file with the secretary of state a registration statement

containing:

(1) the name, street address, and telephone number of each

solicitor that solicits for the veterans organization;

(2) the name, street address, and telephone number of each

veterans organization or fund for which any part of the

contributions will be used, or, if there is no organization or

fund, a statement describing how the contributions will be used;

(3) a statement of whether the veterans organization or fund for

which the contributions are solicited has a federal and state

charitable tax exemption;

(4) the name of each veteran serving on the board of directors

or governing body of the veterans organization or fund for which

the contributions are solicited;

(5) a statement of the number of members who are veterans and

the percentage of members of the veterans organization that are

veterans, as determined on December 31 preceding the year in

which the statement is filed;

(6) the name of each local chapter, lodge, association, or group

of veterans that is a member of the veterans organization for

which contributions are solicited;

(7) a copy of the Internal Revenue Service Form 990, or its

successor, the veterans organization most recently filed; and

(8) the name, address, and telephone number of the surety for

the bond filed under Section 1804.101.

(b) The registration statement must be accompanied by a $150

registration fee and the original copy of the bond required under

Section 1804.101.

(c) A registration statement issued under this section takes

effect on the date the secretary of state issues a certificate

and is valid for one year. The statement may be renewed annually

by filing a renewal registration statement and paying the

registration fee required by Subsection (b).

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 1804.054. SOLICITOR REGISTRATION STATEMENT. Before

beginning solicitations for a veterans organization, a veterans

organization solicitor must file with the secretary of state a

registration statement containing:

(1) the name, address, and telephone number of the solicitor;

(2) the name, address, and telephone number of each veterans

organization on whose behalf the solicitor solicits or will

solicit; and

(3) the name of any other state in which the solicitor is

registered as a veterans organization solicitor and the

registration's status.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 1804.055. SOLICITOR REGISTRATION FEE. (a) A registration

statement under Section 1804.054 must be accompanied by:

(1) a $500 registration fee; and

(2) a bond required under Section 1804.102.

(b) A registration statement issued under this section takes

effect on the date the secretary of state issues a certificate

and is valid for one year. A registration statement may be

renewed annually by filing a renewal registration statement and

paying the registration fee required by Subsection (a).

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

SUBCHAPTER C. BONDING AND REPORTING REQUIREMENTS

Sec. 1804.101. VETERANS ORGANIZATION BOND. (a) A veterans

organization using a veterans organization solicitor shall post a

surety bond with the secretary of state:

(1) in the amount of $1,000 if the organization is a veterans

organization chartered by the United States Congress; or

(2) if the organization is not chartered by the United States

Congress, in the amount of:

(A) $5,000 if the organization solicits in only one county;

(B) $10,000 if the organization solicits in more than one county

but fewer than six counties; or

(C) $25,000 if the organization solicits in six or more

counties.

(b) The bond must be payable to the state and conditioned on

compliance with this chapter.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 1804.102. SOLICITOR BOND. (a) A veterans organization

solicitor shall post a surety bond with the secretary of state in

the amount of:

(1) $5,000 if the solicitor solicits in only one county;

(2) $10,000 if the solicitor solicits in more than one county

but fewer than six counties; or

(3) $25,000 if the solicitor solicits in six or more counties.

(b) The bond must be payable to the state and conditioned on

compliance with this chapter.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 1804.103. VETERANS ORGANIZATION REPORTS. (a) Before

January 15 of each year, each veterans organization that received

more than $500 in solicitations during the preceding calendar

year shall file with the secretary of state a report that

includes:

(1) the name and address of the veterans organization and each

officer authorized to spend the organization's funds; and

(2) the total amounts from all sources spent by the organization

for each of the following:

(A) administrative expenses;

(B) travel expenses of officers of the organization;

(C) travel expenses of each member of the organization;

(D) gifts to veterans or other veterans organizations;

(E) gifts to nonveterans;

(F) payments for the purchase, rental, or lease of and repairs

to facilities used by the organization; and

(G) any other expenditures.

(b) A $50 filing fee must accompany each report filed under this

section.

(c) A veterans organization that is chartered by the United

States Congress and that has subsidiary organizations may:

(1) collect the reports of the subsidiary organizations; and

(2) file its report and the reports of its subsidiary

organizations together and pay a single filing fee.

(d) A veterans organization shall require an individual to sign

a receipt for the funds given to the individual for the

individual's personal use before the funds are delivered. The

organization shall keep a receipt for the expenditure for seven

years after the date of the expenditure.

(e) The reports and receipts are public records and the veterans

organization shall make them available to any person who requests

them in writing.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 1804.104. SOLICITOR REPORTS. (a) At the end of each

calendar quarter, a solicitor who raises more than $5,000 for a

veterans organization during that period shall file with the

secretary of state a report that includes:

(1) the name, address, and telephone number of the solicitor;

(2) the gross amount raised by the solicitor for the veterans

organization;

(3) the amount paid to the veterans organization; and

(4) the name and address of the person representing the veterans

organization to which the amount was paid.

(b) A $50 filing fee must accompany each report.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

SUBCHAPTER D. SOLICITATION RESTRICTIONS

Sec. 1804.151. SOLICITATION DISCLOSURE. (a) A veterans

organization solicitor shall disclose at the time each

solicitation is made the following information: "The secretary of

state has on file important information about persons that seek

contributions in the name of veterans, and the number to call

about that information is the Solicitation Information Hotline

(the number maintained by the secretary of state)."

(b) The disclosure must be made:

(1) orally if the solicitation is in person or by telephone; and

(2) by printed notice in any printed matter distributed by the

solicitor.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 1804.152. SOLICITATION INFORMATION HOTLINE. The secretary

of state shall establish and operate a toll-free telephone line

known as the Solicitation Information Hotline that enables a

person to call the hotline number to:

(1) obtain information concerning a veterans organization or

solicitor that has filed a statement with the secretary of state

under this chapter; or

(2) report an alleged violation of this chapter by a solicitor

or a veterans organization.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 1804.153. PROHIBITED PRACTICES. (a) A veterans

organization solicitor may not solicit on behalf of a veterans

organization in a county other than a county that the veterans

organization serves unless the solicitor discloses to the person

being solicited the county or counties actually served by the

organization.

(b) A contribution or membership fee solicited at a person's

residence in person or by telephone may not be collected except

through the United States mail or parcel post courier.

(c) A veterans organization solicitor may not make a materially

false or misleading statement of fact during a solicitation that

would lead a responsible person to believe that proceeds of the

solicitation are being used or will be used for a purpose other

than the purpose for which the proceeds are actually used.

(d) A veterans organization solicitor or a veterans organization

may not make a material misrepresentation in a registration

statement.

(e) For purposes of Subsection (d), overstating the number of

veterans who are members of the veterans organization by more

than three percent of the organization's total membership is a

material misrepresentation.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

SUBCHAPTER E. ENFORCEMENT AND PENALTIES

Sec. 1804.201. AUDIT BY ATTORNEY GENERAL. (a) The attorney

general may request reasonable and necessary information from a

veterans organization or a veterans organization solicitor for

the purpose of auditing or verifying the representations

contained in a registration statement.

(b) The attorney general may audit representations made by a

veterans organization solicitor during a solicitation to

determine whether the solicitation complies with this chapter.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 1804.202. CRIMINAL PENALTIES. (a) A person commits an

offense if the person knowingly violates this chapter.

(b) An offense under this section is a Class B misdemeanor,

except that if it is shown on trial of the offense that the

defendant has been convicted previously under this section, the

offense is a Class A misdemeanor.

(c) A corporation or association may be held criminally

responsible for the conduct of a person acting on its behalf if

the person's conduct constitutes an offense under this section.

(d) It is a defense to prosecution under this section that:

(1) the defendant is a veterans organization;

(2) the person whose conduct constitutes the offense was acting

on behalf of a corporation or association with which the veterans

organization had contracted for services; and

(3) the person committed the conduct without the knowledge of

the veterans organization.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 1804.203. ENFORCEMENT AND INJUNCTION. (a) The attorney

general may bring an action in a Travis County district court to

enjoin a person from violating this chapter.

(b) The attorney general shall notify the defendant of the

alleged prohibited conduct not later than the seventh day before

the date the action is commenced.

(c) Notice is not required if the attorney general intends to

request that the court issue a temporary restraining order.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 1804.204. CIVIL PENALTIES. (a) A person who violates this

chapter is liable to the state for a civil penalty of not more

than $10,000 for each violation.

(b) A person who violates an injunction issued under this

chapter is liable to the state for a civil penalty of not less

than $100,000.

(c) The attorney general shall bring an action to recover a

civil penalty.

(d) If the violator has filed a bond under this chapter, the

suit may be brought against the bond.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 1804.205. SUIT ON BOND. (a) A person injured by a

violation of this chapter may bring an action or join an action

brought by the state to recover against a bond filed under this

chapter.

(b) The court may assess costs of litigation and reasonable

attorney's fees incurred by a plaintiff other than the state or

by a defendant who substantially prevails.

(c) In an action brought by a private plaintiff and the state

under this chapter, if the amount claimed exceeds the amount of

the bond, money derived from a bond forfeiture first applies to

pay the private plaintiff's damages and attorney's fees, and any

remaining amount is forfeited to the state.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 1804.206. AVAILABILITY OF OTHER REMEDIES. This chapter

does not:

(1) prevent the state or an injured party from bringing an

action to recover a contribution obtained by misrepresentation;

or

(2) limit other causes of action available to a plaintiff by

statute or common law.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.