GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2001
S	1
SENATE BILL 140

 
 
Short Title:	Charitable Contributions Reported.	()	
Sponsors:	Senators Rand;  Dalton, Dannelly, Hoyle, Lee, Reeves, and Soles.	
Referred to:	Judiciary I.	
February 14, 2001

	A BILL TO BE ENTITLED
AN ACT TO REQUIRE PERSONS TO REPORT TO THE SECRETARY OF STATE CHARITABLE CONTRIBUTIONS SOLICITED OR ACCEPTED FOR NAMED INDIVIDUALS AND TO APPROPRIATE FUNDS FOR THE PUBLIC INFORMATION PROGRAM.

The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 131F‑31 reads as rewritten:
"§ 131F‑31.  Contributions solicited for, or accepted by or on behalf of, a named individual.
(a)	Trust Account Required. – Contributions solicited for, or accepted by or on behalf of, a named individual shall be deposited in a trust account opened by a trustee named in a properly established trust document.
(b)	Use of Trust Funds. – Contributions deposited in the trust fund may be used only for the purpose for which the contributions were solicited; if the contributions are no longer needed for the purpose for which they were solicited, they may be used for another similar charitable purpose.
(b1)	Report of Trust Funds. – The trustee may disburse funds from the trust account only after making a written record that:
(1)	States the total amount of the contributions received;
(2)	States the source or sources of the contributions received and the amount of contributions received from each source; and
(3)	 Verifies the purpose for which the funds will be used accompanied by documentation of the identity of the payee and the justification for the payment.
The trustee shall file the written record and identifying documentation with the Secretary of State by December 31 of each year in which there are funds in the trust account during all or part of that year. 
The Trustee shall retain these records for each disbursement from the trust account for a period of three years after the disbursement. 
(c)	Application of Section. – In addition to those persons to whom this Chapter is applicable and notwithstanding G.S. 131F-3, this section applies to any person that solicits or accepts contributions for, or on behalf of, a named individual in an amount of one thousand dollars ($1,000) or more. The prohibitions and enforcements of Article 4 of this Chapter apply to any person who violates this section, including any person who knowingly and willingly fails to file the report required by this section or knowingly and willfully submits false information to the Secretary of State."
SECTION 2.  G.S. 131F-3(3) reads as rewritten:
"(3)	 Subject to G.S. 131F-31, any person who receives less than twenty-five thousand dollars ($25,000) in contributions in any calendar year and does not provide compensation to any officer, trustee, organizer, incorporator, fund-raiser, or solicitor."
SECTION 3.  G.S. 131F-20 is amended by adding a new subdivision to read:
"(21)	Fail to file the report required by G.S. 131F-31."
SECTION 4.  There is appropriated from the General Fund to the Department of the Secretary of State the sum of twenty thousand dollars ($20,000) for the 2001-2002 fiscal year for the Public Information Program developed by the Secretary of State pursuant to G.S. 131F-30 to educate the public about the requirements of this act.
SECTION 5.  This act becomes effective July 1, 2001.