The bill amends the Charitable Solicitations Act in New Mexico to strengthen the regulatory framework governing professional fundraisers and third-party solicitors. It mandates that these entities register with the attorney general prior to contracting with charitable organizations, pay a registration fee, and provide detailed operational information. The bill also clarifies definitions for key terms such as "charitable organization," "professional fundraiser," and "third-party solicitor," while establishing guidelines for solicitation practices and banning deceptive fundraising tactics. Contracts between fundraisers and charitable organizations must now include specific details about compensation and the nature of the solicitation campaign, alongside requirements for regular reporting of contributions and expenses to enhance transparency.

Additionally, the bill outlines the procedures for demands made by the attorney general during investigations, ensuring that such demands are reasonable and do not request privileged documents. It introduces a provision allowing the attorney general to mandate financial audits by independent certified public accountants for relevant entities. The bill specifies that documentary materials must be produced during normal business hours and only authorized personnel may inspect them. It also grants the district court the authority to modify demands and establishes a civil penalty of up to $5,000 for violations of the Charitable Solicitations Act, thereby aiming to enhance accountability and protect the integrity of charitable fundraising in New Mexico.

Statutes affected:
introduced version: 57-22-2, 57-22-3, 57-22-6.1, 57-22-6.3, 57-22-6.4, 57-22-9.1