§ 6-205. Power to investigate and take action against alleged violations

   (a) Investigation. --

   (1) The Secretary of State or the Secretary's designee may investigate an alleged violation of this title.

   (2) (i) In the course of any examination, investigation, or hearing, the Secretary of State may subpoena witnesses, administer oaths, examine an individual under oath, serve written interrogatories, and compel production of records, books, papers, and other documents.

      (ii) In the course of any examination, investigation, or hearing, the legal counsel for the Office of the Secretary of State may administer oaths and examine an individual under oath.

      (iii) Information obtained under this subsection is not admissible in a subsequent criminal proceeding against the person who provided the information.

(b) Action. -- If the Secretary of State finds or has reasonable grounds to believe that a charitable organization, charitable representative, or public safety solicitor has violated this title, the Secretary of State may take 1 or more of the following actions:

   (1) by mediation with the apparent violators and any representatives they may choose to assist them, enter into a written assurance of discontinuance, written assurance of voluntary compliance, or other settlement agreement with the apparent violators, in accordance with subsection (c) of this section;

   (2) summarily issue a cease and desist order to the violator, if the Secretary of State:

      (i) finds that this title has been violated and that the public health, safety, or welfare requires emergency action; and

      (ii) gives the violator written notice of the order, the reasons for the order, and the right of the violator to request a hearing under subsection (g) of this section; or

   (3) refer the matter to:

      (i) the Attorney General for civil enforcement; or

      (ii) the appropriate State's Attorney for prosecution.

(c) Settlement agreements -- Stipulations or conditions. -- A settlement agreement under subsection (b)(1) of this section may include one or more of the following stipulations or conditions:

   (1) payment by the apparent violator of the cost of the investigation;

   (2) payment by the apparent violator of civil penalties a court could order under this title;

   (3) payment by the apparent violator of refunds to donors a court could order under this title;

   (4) payment by the apparent violator of contributions received to charitable or public safety beneficiaries or for charitable or public safety purposes consistent with the beneficiaries named or purposes represented in the charitable or public safety solicitations which generated the contributions; or

   (5) any other stipulation, condition, or remedy that will correct a violation of this title.

(d) Settlement agreements -- Effect. -- An agreement under this section is for conciliation purposes only and does not constitute an admission by any party that the law has been violated.

(e) Settlement agreements -- Failure to adhere to provisions; failure to enforce. --

   (1) It is a violation of this title to fail to adhere to any provision contained in a settlement agreement.

   (2) A failure of the Secretary of State to enforce a violation of any provision of a settlement agreement does not constitute a waiver of that or any other provision, or of any right of the Secretary of State.

(f) Restraining order; civil penalties; other relief. -- On referral by the Secretary of State, the Attorney General may sue in the Circuit Court for Anne Arundel County for an order that:

   (1) restrains further violation of this title;

   (2) restrains the defendant from making further charitable or public safety solicitations in the State;

   (3) except as provided under § 6-5A-11 of this title, recovers for the State a civil penalty not to exceed $ 5,000 for each willful violation of this title;

   (4) except as provided under § 6-5A-11 of this title, recovers for the State a civil penalty not to exceed $ 3,000 for each grossly negligent violation of this title;

   (5) enforces compliance with this title; or

   (6) secures any other appropriate relief, including:

      (i) refunds to donors; and

      (ii) payment of the charitable or public safety contributions received by the solicitor to charitable or public safety purposes or beneficiaries consistent with the purposes represented or beneficiaries named in the charitable or public safety solicitations which generated the contributions.

(g) Hearing on cease and desist order. --

   (1) If the Secretary of State issues a cease and desist order to a person, the person may request a hearing from the Secretary of State.

   (2) Within 30 days after a request is submitted, the Secretary of State shall hold a hearing in accordance with Title 10, Subtitle 2 of the State Government Article.

HISTORY: An. Code 1957, art. 41, § 3-214; 1992, ch. 4, § 2; 1993, ch. 386, § 3; 1995, ch. 89; 1996, ch. 10, § 21; ch. 371; 1999, ch. 34, § 1; 2000, ch. 500; 2001, ch. 29, § 1; 2002, ch. 130.