Utah Code 13-22-12. Grounds for denial, suspension, or revocation

(1)

The director may, in accordance with Title 63G, Chapter 4, Administrative Procedures Act, issue an order to deny, suspend, or revoke an application, registration, permit, or information card, upon a finding that the order is in the public interest and that:

Terms Used In Utah Code 13-22-12

Chapter: means a chapter, branch, area, office, or similar affiliate of a charitable organization. See Utah Code 13-22-2
Charitable organization: includes a chapter or a person who solicits contributions within the state for a charitable organization. See Utah Code 13-22-2
Charitable purpose: means any benevolent, educational, philanthropic, humane, patriotic, religious, eleemosynary, social welfare or advocacy, public health, environmental, conservation, civic, or other charitable objective or for the benefit of a public safety, law enforcement, or firefighter fraternal association. See Utah Code 13-22-2
Director: means the director of the Division of Consumer Protection. See Utah Code 13-22-2
Division: means the Division of Consumer Protection of the Department of Commerce. See Utah Code 13-22-2
Fiduciary: A trustee, executor, or administrator.
Fraud: Intentional deception resulting in injury to another.
Injunction: An order of the court prohibiting (or compelling) the performance of a specific act to prevent irreparable damage or injury.
organization: means any person, joint venture, partnership, limited liability company, corporation, association, group, or other entity:

(i)

who is or holds itself out to be:

(A)	a benevolent, educational, voluntary health, philanthropic, humane, patriotic, religious or eleemosynary, social welfare or advocacy, public health, environmental or conservation, or civic organization;

(B)	for the benefit of a public safety, law enforcement, or firefighter fraternal association; or

(C)	established for any charitable purpose;

(ii)	who solicits or obtains contributions solicited from the public for a charitable purpose; or

(iii)

in any manner employs a charitable appeal as the basis of any solicitation or employs an appeal that reasonably suggests or implies that there is a charitable purpose to any solicitation. See Utah Code 13-22-2

Property: includes both real and personal property. See Utah Code 68-3-12.5

solicitation: includes :

(i)

any of the following done, or purporting to be done, for a charitable purpose:

(A)	any oral or written request, including any request by telephone, radio, television, or other advertising or communications media;

(B)	the distribution, circulation, or posting of any handbill, written advertisement, or publication; or

(C)	an application or other request for a a private grant or, if made by an individual, a public grant; or

(ii)

the sale of, offer or attempt to sell, or request of donations in exchange for any advertisement, membership, subscription, or other article in connection with which any appeal is made for any charitable purpose, or the use of the name of any charitable organization or movement as an inducement or reason for making any purchase donation, or, in connection with any sale or donation, stating or implying that the whole or any part of the proceeds of any sale or donation will go to or be donated to any charitable purpose. See Utah Code 13-22-2

(a)

the application for registration or renewal is incomplete or misleading in any material respect;

(b)

the applicant or registrant or any officer, director, agent, or employee of the applicant or registrant has:

(i)	violated this chapter or committed any of the prohibited acts and practices described in this chapter;

(ii)

been enjoined by any court, or is the subject of an administrative order issued in this or another state, if the injunction or order includes a finding or admission of fraud, breach of fiduciary duty, material misrepresentation, or if the injunction or order was based on a finding of lack of integrity, truthfulness, or mental competence of the applicant;

(iii)

been convicted of a crime involving moral turpitude;

(iv)	obtained or attempted to obtain a registration or a permit by misrepresentation;

(v)	materially misrepresented or caused to be misrepresented the purpose and manner in which contributed funds and property will be used in connection with any solicitation;

(vi)	caused or allowed any paid solicitor to violate any rule made or order issued under this chapter by the division;

(vii)

failed to take corrective action with its solicitors who have violated this chapter or committed any of the prohibited acts and practices of this chapter;

(viii)

used, or attempted to use a name that either is deceptively similar to a name used by an existing registered or exempt charitable organization, or appears reasonably likely to cause confusion of names;

(ix)	failed to timely file with the division any report required in this chapter or by rules made under this chapter; or

(x)	failed to pay a fine imposed by the division in accordance with Section 13-22-3; or

(c)	the applicant for registration or renewal has no charitable purpose.

(2)

The director may, in accordance with Title 63G, Chapter 4, Administrative Procedures Act, issue an order to revoke or suspend a claim of exemption filed under Subsection 13-22-8(4), upon a finding that the order is in the public interest and that:

(a)	the notice of claim of exemption is incomplete or false or misleading in any material respect; or

(b)	any provision of this chapter, or any rule made or order issued by the division under this chapter has been violated in connection with a charitable solicitation by any exempt organization.

Amended by Chapter 382, 2008 General Session

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