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HB4315 Enrolled |
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LRB094 15819 RAS 51035 b |
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| AN ACT concerning regulation.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Solicitation for Charity Act is amended by |
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| changing Sections 1, 5, and 6 as follows:
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| (225 ILCS 460/1) (from Ch. 23, par. 5101)
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| Sec. 1. The following words and phrases as used in this Act |
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| shall have the
following meanings unless a different meaning is |
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| required by the context.
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| (a) "Charitable organization " means any
." Any benevolent, |
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| philanthropic, patriotic,
or eleemosynary person or one |
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| purporting to be such which solicits and
collects funds for |
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| charitable purposes and includes each local, county, or
area |
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| division within this State of such charitable organization, |
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| provided
such local, county or area division has authority and |
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| discretion to
disburse funds or property otherwise than by |
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| transfer to any parent
organization.
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| (b) "Contribution " means the
." The promise or grant of any |
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| money or property of any
kind or value, including the promise |
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| to pay, except payments by union
members of an organization. |
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| Reference to the dollar amount of
"contributions" in this Act |
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| means in the case of promises to pay, or
payments for |
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| merchandise or rights of any other description, the value of
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| the total amount promised to be paid or paid for such |
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| merchandise or rights
and not merely that portion of the |
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| purchase price to be applied to a
charitable purpose. |
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| Contribution shall not include the proceeds from the
sale of |
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| admission tickets by any not-for-profit music or dramatic arts
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| organization which establishes, by such proof as the Attorney |
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| General may
require, that it has received an exemption under |
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| Section 501(c)(3) of the
Internal Revenue Code and which is |
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| organized and operated for the
presentation of live public |
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LRB094 15819 RAS 51035 b |
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| performances of musical or theatrical works on
a regular basis. |
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| For purposes of this subsection, union member dues and
donated |
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| services shall not be deemed contributions.
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| (c) "Person " means any
." Any individual, organization, |
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| group, association,
partnership, corporation, trust or any |
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| combination of them.
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| (d) "Professional fund raiser " means any
." Any person who |
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| for compensation or other
consideration, conducts, manages, or |
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| carries on any solicitation or fund raising drive or
campaign |
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| in this State or from this State or on behalf of a charitable
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| organization residing within this State for the purpose of |
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| soliciting , receiving, or collecting
contributions for or on |
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| behalf of any charitable organization or any other
person, or |
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| who engages in the business of, or holds himself out to persons
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| in this State as independently engaged in the business of |
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| soliciting , receiving, or collecting
contributions for such |
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| purposes. A bona fide director, officer, employee or
unpaid |
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| volunteer of a charitable organization shall not be deemed a
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| professional fund raiser unless the person is in a management |
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| position and
the majority of the individual's salary or other |
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| compensation is computed
on a percentage basis of funds to be |
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| raised, or actually raised.
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| (e) "Professional fund raising consultant " means any
." Any
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| person who is retained
by a charitable organization or trustee |
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| for a fixed fee or rate that is not
computed on a percentage of |
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| funds to be raised, or actually raised, under a
written |
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| agreement, to only plan, advise, consult, or prepare materials |
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| for a
solicitation of contributions in this State, but who does |
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| not manage,
conduct or carry on a fundraising campaign and who |
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| does not solicit
contributions or employ, procure, or engage |
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| any compensated person to
solicit contributions and who does |
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| not at any time have custody or control
of contributions. A |
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| volunteer, employee or salaried officer of a
charitable |
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| organization or trustee maintaining a permanent establishment |
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| or
office in this State is not a professional fundraising |
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| consultant. An
attorney, investment counselor, or banker who |
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LRB094 15819 RAS 51035 b |
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| advises an individual,
corporation or association to make a |
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| charitable contribution is not a
professional fundraising |
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| consultant as a result of the advice.
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| (f) "Charitable purpose " means any
." Any charitable, |
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| benevolent, philanthropic,
patriotic, or eleemosynary purpose.
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| (g) "Charitable Trust" means any relationship whereby |
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| property is held
by a person for a charitable purpose.
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| (h) "Education Program Service" means any activity which |
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| provides
information to the public of a nature that is not |
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| commonly known or facts
which are not universally regarded as |
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| obvious or as established by common
understanding and which |
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| informs the public of what it can or should do
about a |
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| particular issue.
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| (i) "Primary Program Service" means the program service |
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| upon which an
organization spends more than 50% of its program |
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| service funds or the
program activity which represents the |
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| largest expenditure of funds in
the fiscal period.
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| (j) "Professional solicitor" means any natural person who |
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| is employed or
retained for compensation by a professional fund |
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| raiser to solicit , receive, or collect
contributions for |
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| charitable purposes from persons in this State or from
this |
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| State or on behalf of a charitable organization residing within
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| this State.
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| (k) "Program Service Activity" means the actual charitable |
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| program
activities of a charitable organization for which it |
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| expends its resources.
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| (l) "Program Service Expense" means the expenses of |
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| charitable program
activity and not management expenses or fund |
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| raising expenses. In
determining Program Service Expense, |
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| management and fund raising expenses
may not be included.
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| (m) "Public Safety Personnel Organization" means any |
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| person who uses any
of the words "officer", "police", |
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| "policeman", "policemen", "troopers",
"sheriff", "law |
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| enforcement", "fireman", "firemen", "paramedic", or
similar |
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| words in
its name or in conjunction with solicitations, or in |
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| the title or name of a magazine, newspaper, periodical, |
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LRB094 15819 RAS 51035 b |
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| advertisement book, or any other medium of electronic or print |
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| publication, and is not
a governmental entity.
No organization |
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| may be a Public Safety Personnel Organization unless 80% or
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| more of its voting members or trustees are active, retired, or |
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| disabled
police officers, peace officers,
firemen, fire |
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| fighters, emergency medical technicians - ambulance,
emergency |
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| medical technicians - intermediate, emergency medical |
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| technicians -
paramedic, ambulance drivers, or other medical |
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| assistance or first aid
personnel.
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| (m-5) "Public Safety Personnel" includes police officers, |
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| peace officers,
firemen, fire fighters, emergency medical |
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| technicians - ambulance,
emergency medical technicians - |
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| intermediate, emergency medical technicians -
paramedic, |
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| ambulance drivers, and other medical assistance or first aid
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| personnel.
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| (n) "Trustee" means any person, individual, group of |
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| individuals,
association, corporation, not for profit |
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| corporation, or other legal entity
holding property for or |
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| solicited for any charitable purpose; or any
officer, director, |
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| executive director or other controlling persons of a
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| corporation soliciting or holding property for a charitable |
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| purpose.
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| (Source: P.A. 91-301, eff. 7-29-99.)
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| (225 ILCS 460/5) (from Ch. 23, par. 5105)
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| Sec. 5. Any charitable organization, trustee, person, |
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| professional fund
raiser or professional solicitor, which or |
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| who solicits , receives, or collects contributions in
this |
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| State, but does not maintain an office within the State or |
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| cannot be
located within the State shall be subject to service |
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| of process, as follows:
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| (a) By service thereof on its registered agent within the |
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| State, or if
there be no such registered agent, then upon the |
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| person who has been
designated in the registration statement as |
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| having custody of books and
records within this State; where |
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| service is effected upon the person so
designated in the |
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LRB094 15819 RAS 51035 b |
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| registration statement a copy of the process shall, in
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| addition, be mailed to the registrant's last known address;
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| (b) When any corporate person has solicited , received, or |
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| collected contributions in this
State, but maintains no office |
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| within the State, has no registered agent
within the State, and |
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| no designated person having custody of its books and
records |
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| within the State, or when a registered agent or person having
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| custody of its books and records within the State cannot be |
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| found as shown
by the return of the sheriff of the county in |
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| which such registered agent
or person having custody of books |
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| and records has been represented by the
charitable organization |
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| or person as maintaining an office, service may be
made by |
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| delivering to and leaving with the Secretary of State, or with |
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| any
deputy or clerk in the corporation department of his |
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| office, three copies thereof;
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| (c) Following service upon the Secretary of State the |
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| provisions of law
relating to service of process on foreign |
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| corporations shall thereafter govern;
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| (d) Long arm service in accordance with law;
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| (e) The solicitation , receipt, or collection of any |
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| contribution within this State by any
charitable organization |
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| or any person shall be deemed to be their agreement
that any |
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| process against it or him which is so served in accordance with
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| the provisions of this Section shall be of the same legal force |
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| and effect
as if served personally within this State and that |
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| the courts of this State
shall have personal jurisdiction over |
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| such organizations, persons and trustees;
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| (f) Venue over persons required to be registered under this |
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| Act shall be
proper in any county where the Attorney General |
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| accepts and maintains the list
of registrations. In furtherance |
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| of judicial economy, actions filed for
violation of this Act |
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| may name multiple trustees, trusts, and organizations in
a
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| single or joint action where those joined have each engaged in |
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| similar conduct
in violation of this Act or where similar |
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| relief is sought against those
defendants for violation of this |
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| Act.
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LRB094 15819 RAS 51035 b |
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| (Source: P.A. 90-469, eff. 8-17-97.)
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| (225 ILCS 460/6) (from Ch. 23, par. 5106)
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| Sec. 6. Professional fund raiser registration.
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| (a) No person shall act as a professional fund raiser or |
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| allow
a professional fund raiser entity he owns, manages or |
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| controls to act for a
charitable organization required to |
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| register pursuant to Section 2 of this
Act, or for any |
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| organization as described in Section 3 of
this Act before he |
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| has registered himself or the entity with the
Attorney General |
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| or after the expiration or cancellation of such
registration or |
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| any renewal thereof. Applications for registration and
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| re-registration shall be in writing, under oath, in the form |
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| prescribed by
the Attorney General.
A registration fee of $100 |
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| shall be paid with each registration and upon
each |
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| re-registration.
Registration and re-registration can proceed |
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| only if all financial
reports have been filed in proper form |
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| and all fees have been paid in full.
If the applicant intends |
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| to or
does take control or possession of charitable funds, the |
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| applicant shall at
the time of making application, file with, |
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| and have approved by, the
Attorney General a bond in which the |
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| applicant shall be the principal
obligor, in the sum of |
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| $10,000, with one or more corporate sureties licensed
to do |
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| business in this State whose liability in the aggregate will at |
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| least
equal such sum. The bond shall run to the Attorney |
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| General for the use of
the State and to any person who may have |
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| a cause of action against the
obligor of the bond for any |
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| malfeasance or misfeasance in the conduct of
such solicitation; |
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| provided, that the aggregate limit of liability of the
surety |
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| to the State and to all such persons shall, in no event, exceed |
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| the
sum of such bond. Registration or re-registration when |
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| effected shall be
for a period of one year, or a part thereof, |
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| expiring on the 30th day of
June, and may be renewed upon |
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| written application, under oath, in the form
prescribed by the |
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| Attorney General and the filing of the bond for
additional one |
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| year periods. Every professional fund raiser required to
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LRB094 15819 RAS 51035 b |
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| register pursuant to this Act shall file an annual written |
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| report with the
Attorney General containing such information as |
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| he may require by rule.
Certification shall be required for |
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| only information within the
professional fund raiser's |
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| knowledge.
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| (b) Upon filing a complete registration statement, a
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| professional fund raiser shall be given a registration number |
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| and shall be
considered registered. If the materials submitted |
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| are determined to be
inaccurate or incomplete, the Attorney |
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| General shall notify the
professional fund raiser of his |
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| findings and the defect and that within 30
days his |
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| registration will be cancelled unless the defect is cured |
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| within
said time.
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| (c) Every professional fund raiser registered under this |
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| Act who takes
possession or control of charitable funds |
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| directly, indirectly, or through an
escrow shall submit a full |
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| written
accounting to the charitable organization of all funds |
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| it or its agents
collected on behalf of the charitable |
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| organization during the 6 month
period ended June 30 of each |
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| year, and file a copy of the accounting with
the Attorney |
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| General. The accounting shall be in writing under oath and be
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| signed and made on forms as prescribed by the Attorney General |
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| and shall be
filed by the following September 30 of each year; |
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| however, within the time
prescribed, and for good cause, the |
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| Attorney General may grant a 60 day
extension of the due date.
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| (d) Every professional fund raiser registered pursuant to |
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| this Act shall
also file calendar year written financial |
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| reports with the
Attorney General containing such information |
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| as he may require, on forms
prescribed by him, as well as |
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| separate financial reports for each separate
fund raising |
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| campaign conducted. The written report , including all required |
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| schedules, shall be filed under
oath on or before April 30 of |
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| the following calendar year and be signed and
verified under |
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| penalty of perjury within the time prescribed.
An annual report |
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| fee of $25 shall be paid to the Attorney General with the
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| filing of that report. If the report is not timely filed, a |
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| late filing fee
shall result and must be paid prior to |
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| re-registration. The late filing fee
shall be calculated at |
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| $200 for each and every separate fundraising
campaign conducted |
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| during the report year.
For good
cause, the Attorney General |
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| may grant a 30 day extension of the due date, in
which case a |
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| late filing fee shall not be imposed until the expiration of |
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| the
extension period.
A copy of the report shall also be given |
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| to the charitable organization by
the due date of filing. A |
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| professional fund raiser shall only be required
to verify |
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| information actually available to the professional fund |
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| raiser, but
in any event an annual report must be timely filed.
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| (d-5) The calendar year written financial report of every |
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| professional fund raiser who conducts, manages, or carries on a |
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| fund raising campaign involving the collection or resale of any |
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| automobiles, motorcycles, other motor vehicles, boats, yachts, |
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| or other water craft collected in Illinois during the report |
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| year, and the distribution of funds from the collection or |
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| resale of such motor vehicles and water crafts to the |
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| charitable organization, must include a schedule detailing the |
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| following information for each motor vehicle and water craft |
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| collected or resold: |
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| (1) The vehicle or hull identification number. |
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| (2) The gross resale amount of the vehicle. |
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| (3) The total amount distributed to the charitable |
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| organization from the collection or resale of the motor |
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| vehicle or water craft. |
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| (4) Any and all fees, compensation, or other |
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| consideration paid to or retained by the professional fund |
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| raiser from the collection or resale of the motor vehicle |
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| or water craft. |
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| (5) The identity of any other professional fund raiser |
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| that participated in the collection or resale of the |
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| vehicle and any fees, compensation, or other consideration |
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| paid to or retained by that other professional fund raiser |
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| from the collection or resale of the motor vehicle or water |
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| craft.
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LRB094 15819 RAS 51035 b |
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| The calendar year written financial report of every |
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| professional fund raiser who conducts, manages, or carries on a |
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| fund raising campaign involving the collection or resale of any |
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| automobile, motorcycle, other motor vehicle, boat, yacht, or |
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| other water craft collected in Illinois during the report year, |
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| but who does not distribute funds from such collection or |
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| resale to the charitable organization, must include a schedule |
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| detailing the following information for each motor vehicle and |
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| water craft collected or resold: |
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| (1) The vehicle or hull identification number. |
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| (2) Any and all fees, compensation, or other |
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| consideration paid to or retained by the professional fund |
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| raiser from the collection or resale of the motor vehicle |
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| or water craft. |
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| (3) The identity of the person or entity involved in |
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| the fund raising campaign who does distribute funds from |
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| the collection or resale of the vehicle to the charitable |
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| organization.
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| (e) No person convicted of a felony may register as a |
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| professional fund
raiser, and no person convicted of a |
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| misdemeanor involving fiscal
wrongdoing, breach of fiduciary |
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| duty or a violation of this Act may
register as a professional |
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| fund raiser for a period of 5 years from the
date of the |
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| conviction or the date of termination of the sentence or
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| probation, if any, whichever is later. This subsection shall |
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| not apply to
charitable organizations that have as their |
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| primary purpose the
rehabilitation of criminal offenders, the |
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| reintegration of criminal
offenders into society, the |
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| improvement of the criminal justice system or
the improvement |
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| of conditions within penal institutions.
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| (f) A professional fund raiser may not cause or allow |
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| independent
contractors to act on its behalf in soliciting |
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| charitable contributions
other than registered professional |
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| solicitors.
A professional fund raiser must maintain
the names, |
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| addresses and social security numbers of all of its |
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| professional
solicitors for a period of at least 2 years.
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LRB094 15819 RAS 51035 b |
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| (g) Any person who knowingly violates the provisions of
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| subsections (a), (e), and (f) of this Section is
guilty of a |
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| Class 4 felony. Any person who
fails after being given notice |
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| of delinquency to file written financial
reports required by |
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| subsections (c) ,
and (d) , and (d-5) of this Section which is
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| more than 2 months past its due date is guilty of a Class A |
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| misdemeanor.
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| (h) Any person who violates any of the provisions of this
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| Section shall be subject to civil penalties of $5,000 for each
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| violation and shall not be entitled to keep or receive fees, |
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| salaries,
commissions or any compensation as a result or on |
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| account of the
solicitations or fund raising campaigns, and at |
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| the request of the Attorney
General or the charitable |
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| organization, a court may order that such
be forfeited and paid |
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| toward and used for a charitable purpose as the court
in its |
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| discretion determines is appropriate or placed in the Illinois |
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| Charity
Bureau Fund.
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| (Source: P.A. 90-469, eff. 8-17-97; 91-444, eff. 8-6-99.)
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