RSA 7:28-f · Acts Unlawful; Suspension, Revocation, Penalties and Enforcement

7:28-f Acts Unlawful; Suspension, Revocation, Penalties and Enforcement. –

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I.

The following acts and practices are declared unlawful:

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(a)

Operating in violation of, or failing to comply with, any of the requirements of RSA 7:19-32-a, inclusive, or any rules under this subdivision.

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(b)

Utilizing any unfair or deceptive acts or practices. In deciding whether an act or practice is unfair or deceptive within the meaning of this section, definitions, standards, and interpretations relating to such terms under RSA 358-A shall apply.

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(c)

Utilizing any representation that implies the contribution is for or on behalf of a charitable trust, or utilizing any emblem, device, or printed matter belonging to or associated with a charitable trust, without first obtaining written authorization to do so by the charitable trust.

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(d)

Utilizing a name, symbol, or statement so closely related or similar to that used by another charitable trust that the use thereof would tend to confuse or mislead a solicited person.

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(e)

Misrepresenting or misleading anyone in any manner to believe that the person on whose behalf a solicitation or charitable sales promotion is being conducted is a charitable trust or that the proceeds of such solicitation or charitable sales promotion shall be used for charitable purposes, if such is not the fact.

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(f)

Misrepresenting or misleading anyone, in any manner, to believe that any other person sponsors, endorses, or approves such solicitation or charitable sales promotion, when such other person has not given written consent to the use of his name for these purposes.

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(g)

Utilizing or exploiting the fact of registration so as to lead any person to believe that such registration in any manner constitutes an endorsement or approval by the state.

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(h)

Representing directly or by implication that a charitable trust shall receive a fixed or estimated percentage of the gross revenue from a solicitation campaign greater than identified in RSA 7:28-c, V(a) or VI(a)(2).

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II.

(a) The registration of any charitable trust, fund raising counsel, or paid solicitor which makes a false statement in any registration statement, annual report, or other information required to be filed by this subdivision or any rules adopted under it, or which otherwise violates any provision of this subdivision may be suspended or revoked by the attorney general.

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(b)

Any suspension or revocation of a registration under the provisions of this subdivision shall be in accordance with rules adopted under RSA 541-A.

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(c)

The attorney general may, in addition to all other actions authorized by law, bring an action to enjoin and prosecute all acts or practices declared unlawful under this subdivision or any rules adopted under it.

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(d)

Upon a finding that any person has engaged in or is engaging in any act or practice declared unlawful under this subdivision or any rules adopted under it, the court may make any necessary order or judgment including, but not limited to, injunctions, restitution, awards of reasonable attorneys' fees and costs of investigation and litigation and may award to the state civil penalties up to $10,000 for each violation of RSA 7:19-32-a or any rules adopted thereunder. No such order shall require the payment of civil penalties until the process of appeal has been exhausted. In ordering injunctive relief, the attorney general shall not be required to establish irreparable harm but only a violation of statute or rule or that the requested order promotes the public interest. It shall be an affirmative defense to the assessment of civil penalties under this section that the defendant acted pursuant to a good faith misunderstanding concerning the requirements of this subdivision or any rules adopted under it.

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(e)

Any person who violates the terms of an injunction or other order entered under this section shall, in addition to all other penalties, pay to the state a civil penalty of not more than $10,000 for each violation which may be recovered in a civil action brought by the attorney general. Each separate violation of such an order shall be a separate offense, except that in the case of a violation through continuing failure or neglect to obey said order, each day of continuance of such failure or neglect shall be deemed a separate offense.

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(f)

No charitable trust may indemnify an officer, employee, or director for any costs, fees, restitution, fines, or penalties assessed against that individual by the court pursuant to this section unless the individual is determined by the court to have conducted himself in good faith and reasonably believed the conduct was in or not opposed to the best interests of the charitable trust.

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(g)

In any case in which the attorney general has authority to institute an action or proceeding under this subdivision or any rules adopted under it, in lieu thereof, he may accept an assurance of discontinuance of any method, act, or practice in violation of this subdivision or any rules adopted under it, from any person alleged to be engaged or to have been engaged in such method, act, or practice. Such assurance may, among other terms, include a stipulation for the voluntary payment by such person of the costs of investigation, or of an amount to be held in escrow pending the outcome of an action or as restitution to aggrieved persons, or both. Any such assurance of discontinuance shall be in writing and be filed with the superior court for that county in which the organization has its principal place of business in this state, and, if none, in Merrimack county. Matters thus closed may at any time be reopened by the attorney general for further proceedings in the public interest. Evidence of a violation of such assurance shall be prima facie evidence of a violation of this subdivision or any rule adopted under it, in any subsequent proceeding brought by the attorney general. Source. 1987, 260:3. 1999, 247:2, eff. Sept. 7, 1999.

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