AGO 85-19.

• Court: North Dakota

North Dakota Attorney General Opinions 1985. AGO 85-19. OPINION 85-19Date Issued: May 14, 1985 (AGO 85-19) Requested by: Honorable Ben Meier Secretary of State- QUESTION PRESENTED - Whether the American Red Cross is subject to the licensing requirements of the Charitable Organizations Soliciting Contributions Act of N.D.C.C. chapter 50-22.- ATTORNEY GENERAL'S OPINION - It is my opinion that the American Red Cross is not subject to the licensing requirements of the Charitable Organizations Soliciting Contributions Act of N.D.C.C. chapter 50-22. - ANALYSIS - Charitable organizations soliciting contributions are governed by the provisions of N.D.C.C. chapter 50-22. N.D.C.C. section 50-22-02, provides in part:

50-22-02. LICENSE TO SOLICIT - TERM - REVOCATION. No charitable organization shall solicit contributions from persons in this state by any means whatsoever without first having obtained a license from the secretary of state . . . .

The only exception provided to this strict licensing requirement is granted to institutions of higher learning and churches pursuant to N.D.C.C. section 50-22-01(1).

There is no federal court decision which has directly answered the question of whether the American Red Cross is subject to state charitable solicitation licensure. However, in Department of Employment v. United States 385 U.S. 355 (1966), the United States Supreme Court concluded that the American Red Cross was created by Congress to carry out the treaty provisions of the Geneva Convention and, as such, was an instrumentality of the federal government. Moreover, the issue of whether federal instrumentalities are subject to state regulation was addressed in the case of Hancock v. Train 426 U.S. 167, 179 (1976), in which the Supreme Court reaffirmed its holding in Mayo v. United States 319 U.S. 441, 447 (1943), by stating...