Rep. Sidney H. Mathias
Filed: 4/5/2011
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1 | AMENDMENT TO HOUSE BILL 2228
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2 | AMENDMENT NO. ______. Amend House Bill 2228 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Solicitation for Charity Act is amended by | ||||||
5 | changing Section 4 as follows:
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6 | (225 ILCS 460/4) (from Ch. 23, par. 5104)
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7 | Sec. 4.
(a) Every charitable organization registered | ||||||
8 | pursuant to Section 2
of this Act which shall receive in any 12 | ||||||
9 | month period ending upon its
established fiscal or calendar | ||||||
10 | year contributions in excess of $300,000
and every charitable | ||||||
11 | organization whose fund raising functions are not
carried on | ||||||
12 | solely by staff employees or persons who are unpaid for such
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13 | services, if the organization shall receive in any 12 month | ||||||
14 | period ending
upon its established fiscal or calendar year | ||||||
15 | contributions in excess of
$25,000, shall file a
written report | ||||||
16 | with the Attorney General upon forms
prescribed by him, on or |
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1 | before June 30 of each year if its books are kept
on a calendar | ||||||
2 | basis, or within 6 months after the close of its fiscal year
if | ||||||
3 | its books are kept on a fiscal year basis, which written report | ||||||
4 | shall
include a
financial statement covering the immediately | ||||||
5 | preceding 12 month period of
operation. The Attorney General | ||||||
6 | may, at his or her discretion, offer first and second | ||||||
7 | extensions to the filing deadline contained in this subsection | ||||||
8 | (a) by administrative rule. This rule, if it is adopted, may | ||||||
9 | take account of the separate filing extensions granted to | ||||||
10 | charitable organizations by the United States Internal Revenue | ||||||
11 | Service. Such financial statement shall include a balance sheet | ||||||
12 | and
statement of income and expense, and shall be consistent | ||||||
13 | with forms
furnished by the Attorney General clearly setting | ||||||
14 | forth the following:
gross receipts and gross income from all | ||||||
15 | sources, broken down into total
receipts and income from each | ||||||
16 | separate solicitation
project or source; cost of | ||||||
17 | administration; cost of solicitation; cost of
programs | ||||||
18 | designed to inform or educate the public; funds or properties
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19 | transferred out of this State, with explanation as to recipient | ||||||
20 | and
purpose; cost of fundraising; compensation paid to | ||||||
21 | trustees; and total net
amount disbursed or dedicated for each | ||||||
22 | major purpose,
charitable or otherwise. Such report shall also | ||||||
23 | include a statement of any
changes in the information required | ||||||
24 | to be contained in the registration
form filed on behalf of | ||||||
25 | such organization. The report shall be signed by
the president | ||||||
26 | or other authorized officer and the chief fiscal officer of
the |
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1 | organization who shall certify that the statements therein are | ||||||
2 | true
and correct to the best of their knowledge, and shall be | ||||||
3 | accompanied by
an opinion signed by an independent certified | ||||||
4 | public accountant that the
financial statement therein fairly | ||||||
5 | represents the financial operations of
the organization in | ||||||
6 | sufficient detail to permit public evaluation of its
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7 | operations. Said opinion may be relied upon by the Attorney | ||||||
8 | General.
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9 | (b) Every organization registered pursuant to Section 2 of | ||||||
10 | this Act
which shall receive in any 12 month period ending upon | ||||||
11 | its established
fiscal or calendar year of any year
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12 | contributions:
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13 | (1) in excess of $15,000, but not in excess of $25,000, | ||||||
14 | during a
fiscal
year shall file only a simplified summary | ||||||
15 | financial statement disclosing only
the gross receipts, | ||||||
16 | total disbursements, and assets on hand at the end of the
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17 | year on forms prescribed by the Attorney General; or
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18 | (2) in excess of $25,000, but not in excess of | ||||||
19 | $300,000, if it is not
required to submit a report under
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20 | subsection (a) of this Section, shall
file a written report | ||||||
21 | with the Attorney General upon forms prescribed by
him, on | ||||||
22 | or before June 30 of each year if its books are kept on a | ||||||
23 | calendar
basis, or within 6 months after the close of its | ||||||
24 | fiscal year if its books
are kept on a fiscal year basis . | ||||||
25 | The Attorney General may, at his or her discretion, offer | ||||||
26 | first and second extensions to the filing deadline |
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1 | contained in this paragraph (2) of subsection (b) by | ||||||
2 | administrative rule. This rule, if it is adopted, may take | ||||||
3 | account of the separate filing extensions granted to | ||||||
4 | charitable organizations by the United States Internal | ||||||
5 | Revenue Service. This written report , which shall include a | ||||||
6 | financial statement
covering the immediately preceding | ||||||
7 | 12-month period of operation limited to
a statement of such | ||||||
8 | organization's gross receipts from contributions, the
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9 | gross amount expended for charitable educational programs, | ||||||
10 | other charitable
programs, management expense, and fund
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11 | raising expenses including a separate statement of the cost | ||||||
12 | of any goods,
services or admissions supplied as part of | ||||||
13 | its solicitations, and the
disposition of the net proceeds | ||||||
14 | from contributions, including compensation
paid to | ||||||
15 | trustees, consistent with forms furnished by the Attorney | ||||||
16 | General.
Such report shall also
include a statement of any | ||||||
17 | changes in the information required to be
contained in the | ||||||
18 | registration form filed on behalf of such organization.
The | ||||||
19 | report shall be signed by the president or other authorized | ||||||
20 | officer and
the chief fiscal officer of the organization | ||||||
21 | who shall certify that the
statements therein are true and | ||||||
22 | correct to the best of their knowledge.
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23 | (c) For any fiscal or calendar year of any organization | ||||||
24 | registered
pursuant to Section 2 of this Act in which such | ||||||
25 | organization would have
been exempt from registration pursuant | ||||||
26 | to Section 3 of this Act if it had
not been so registered, or in |
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1 | which it did not solicit or receive
contributions, such | ||||||
2 | organization shall file, on or before June 30 of each
year if | ||||||
3 | its books are kept on a calendar basis, or within 6 months | ||||||
4 | after
the close of its fiscal year if its books are kept on a | ||||||
5 | fiscal year basis,
instead of the reports required by | ||||||
6 | subdivisions (a) or (b) of this Section,
a statement certified | ||||||
7 | under penalty of perjury by its president and chief fiscal
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8 | officer stating the exemption and the facts upon which it is | ||||||
9 | based or that
such organization did not solicit or receive | ||||||
10 | contributions in such fiscal
year. The statement shall also | ||||||
11 | include a statement of any
changes in the information required | ||||||
12 | to be contained in the registration form
filed on behalf of | ||||||
13 | such organization. The Attorney General may, at his or her | ||||||
14 | discretion, offer first and second extensions to the filing | ||||||
15 | deadline contained in this subsection (c) by administrative | ||||||
16 | rule. This rule, if it is adopted, may take account of the | ||||||
17 | separate filing extensions granted to charitable organizations | ||||||
18 | by the United States Internal Revenue Service.
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19 | (d) As an alternative means of satisfying the duties and | ||||||
20 | obligations
otherwise imposed by this Section, any veterans | ||||||
21 | organization
chartered or incorporated under federal law and | ||||||
22 | any veterans organization
which is affiliated with, and | ||||||
23 | recognized in the bylaws of, a
congressionally chartered or | ||||||
24 | incorporated organization may, at its option,
annually file | ||||||
25 | with the Attorney General the following documents:
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26 | (1) A copy of its Form 990, as filed with the Internal |
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1 | Revenue Service.
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2 | (2) Copies of any reports required to be filed by the | ||||||
3 | affiliate with
the congressionally chartered or | ||||||
4 | incorporated veterans organization, as well
as copies of | ||||||
5 | any reports filed by the congressionally chartered or
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6 | incorporated veterans organization with the government of | ||||||
7 | the United States
pursuant to federal law.
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8 | (3) Copies of all contracts entered into by the | ||||||
9 | congressionally
chartered or incorporated veterans | ||||||
10 | organization or its affiliate for
purposes of raising funds | ||||||
11 | in this State, such copies to be filed with the
Attorney | ||||||
12 | General no more than 30 days after execution of the | ||||||
13 | contracts.
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14 | (e) As an alternative means of satisfying all of the duties | ||||||
15 | and
obligations otherwise imposed by this Section, any person, | ||||||
16 | pursuant
to a
contract with a charitable organization, a | ||||||
17 | veterans organization or an
affiliate described or referred to | ||||||
18 | in subsection (d), who receives,
collects, holds or transports | ||||||
19 | as the agent of the organization or affiliate
for purposes of | ||||||
20 | resale any used or second hand personal property, including
but | ||||||
21 | not limited to household goods, furniture or clothing donated | ||||||
22 | to the
organization or affiliate may, at its option, annually | ||||||
23 | file with the
Attorney General the following documents, | ||||||
24 | accompanied by an annual filing fee
of $15:
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25 | (1) A notarized report including the number of | ||||||
26 | donations of personal
property it has received on behalf of |
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1 | the charitable organization, veterans
organization or | ||||||
2 | affiliate during the proceeding year. For purposes of this
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3 | report, the number of donations of personal property shall | ||||||
4 | refer to the
number of stops or pickups made regardless of | ||||||
5 | the number of items received
at each stop or pickup. The | ||||||
6 | report may cover the person's fiscal year, in
which case it | ||||||
7 | shall be filed with the Attorney General no later than 90
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8 | days after the close of that fiscal year.
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9 | (2) All contracts with the charitable organization, | ||||||
10 | veterans
organization or affiliate under which the person | ||||||
11 | has acted as an agent for
the purposes listed above.
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12 | (3) All contracts by which the person agreed to pay the | ||||||
13 | charitable
organization, veterans organization or | ||||||
14 | affiliate a fixed amount for, or a
fixed percentage of the | ||||||
15 | value of, each donation of used or second hand
personal | ||||||
16 | property. Copies of all such contracts shall be filed no | ||||||
17 | later
than 30 days after they are executed.
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18 | (f) The Attorney General may seek appropriate equitable | ||||||
19 | relief from a
court or, in his discretion, cancel the | ||||||
20 | registration
of any organization which fails to comply with | ||||||
21 | subdivision (a), (b) or (c) of
this Section within the time | ||||||
22 | therein prescribed, or fails to furnish such
additional | ||||||
23 | information as is requested by the Attorney General within the
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24 | required time; except that the time may be extended by the | ||||||
25 | Attorney General
for a period not to exceed 60 days upon a | ||||||
26 | timely written
request and for
good cause stated. Unless |
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1 | otherwise stated herein, the Attorney General
shall, by
rule, | ||||||
2 | set forth the standards used to determine whether a | ||||||
3 | registration
shall be cancelled as authorized by this | ||||||
4 | subsection. Such standards shall
be stated as precisely and | ||||||
5 | clearly as practicable, to inform fully those
persons affected. | ||||||
6 | Notice of such cancellation shall be mailed to the
registrant | ||||||
7 | at least 15 days before the effective date thereof.
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8 | (g) The Attorney General in his discretion may, pursuant to | ||||||
9 | rule,
accept executed copies of federal Internal Revenue | ||||||
10 | returns and reports as a
portion of the foregoing
annual | ||||||
11 | reporting in the interest of minimizing paperwork, except there
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12 | shall be no substitute for the independent certified public | ||||||
13 | accountant
audit opinion required by this Act.
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14 | (h) The Attorney General after canceling the registration | ||||||
15 | of any trust
or organization which fails to comply with
this
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16 | Section within the time therein prescribed may by court | ||||||
17 | proceedings, in
addition to all other relief, seek to
collect | ||||||
18 | the assets and distribute such under court supervision to other
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19 | charitable purposes.
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20 | (i) Every trustee, person, and organization required to | ||||||
21 | file an annual
report shall pay a filing fee of $15 with each | ||||||
22 | annual financial report filed
pursuant to this Section. If a | ||||||
23 | proper and complete annual report is not timely
filed, a late | ||||||
24 | filing fee of an additional $100 is imposed and shall be paid
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25 | as a condition of filing a late report. Reports submitted | ||||||
26 | without the proper
fee shall not be accepted for filing. |
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1 | Payment of the late filing fee and
acceptance by the Attorney | ||||||
2 | General shall both be conditions of filing a late
report. All | ||||||
3 | late filing fees shall be used to provide charitable trust
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4 | enforcement and dissemination of charitable trust information | ||||||
5 | to the public and
shall be maintained in a separate fund for | ||||||
6 | such purpose known as the Illinois
Charity Bureau Fund.
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7 | (j) There is created hereby a separate special fund in the | ||||||
8 | State Treasury to
be known as the Illinois Charity Bureau Fund. | ||||||
9 | That Fund shall be under the
control of the Attorney General, | ||||||
10 | and the funds, fees, and penalties deposited
therein shall be | ||||||
11 | used by the Attorney General to enforce the provisions of this
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12 | Act and to gather and disseminate information about charitable | ||||||
13 | trustees and
organizations to the public.
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14 | (Source: P.A. 96-488, eff. 1-1-10.)
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15 | Section 10. The Charitable Trust Act is amended by changing | ||||||
16 | Section 7 as follows:
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17 | (760 ILCS 55/7) (from Ch. 14, par. 57)
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18 | Sec. 7.
(a) Except as otherwise provided, every trustee | ||||||
19 | subject to this Act
shall, in addition to filing copies of the | ||||||
20 | instruments previously required,
file with the Attorney | ||||||
21 | General periodic annual written reports under oath,
setting
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22 | forth information as to the nature of the assets held for | ||||||
23 | charitable
purposes and the administration thereof by the | ||||||
24 | trustee, in accordance with
rules and regulations of the |
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1 | Attorney General.
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2 | (b) The Attorney General shall make rules and regulations | ||||||
3 | as to the time
for filing reports, the contents thereof, and | ||||||
4 | the manner of executing and
filing them. He may classify trusts | ||||||
5 | and other relationships concerning
property held for a | ||||||
6 | charitable purpose as to purpose, nature of assets,
duration of | ||||||
7 | the trust or other relationship, amount of assets, amounts to
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8 | be devoted to charitable purposes, nature of trustee, or | ||||||
9 | otherwise, and may
establish different rules for the different | ||||||
10 | classes as to time and nature
of the reports required to the | ||||||
11 | ends (1) that he shall receive reasonably
current, annual | ||||||
12 | reports as to all charitable trusts or other
relationships of a | ||||||
13 | similar nature, which will enable him to ascertain
whether they | ||||||
14 | are being properly administered, and (2) that periodic reports
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15 | shall not unreasonably add to the expense of the administration | ||||||
16 | of
charitable trusts and similar relationships. The Attorney | ||||||
17 | General may
suspend the filing of reports as to a particular | ||||||
18 | charitable trust or
relationship for a reasonable, | ||||||
19 | specifically designated time upon written
application of the | ||||||
20 | trustee filed with the Attorney General and after the
Attorney | ||||||
21 | General has filed in the register of charitable trusts a | ||||||
22 | written
statement that the interests of the beneficiaries will | ||||||
23 | not be prejudiced
thereby and that periodic reports are not | ||||||
24 | required for proper supervision
by his office.
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25 | (c) A copy of an account filed by the trustee in any court | ||||||
26 | having
jurisdiction of the trust or other relationship, if the |
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1 | account has
been approved by the court in which it was filed | ||||||
2 | and notice given to the
Attorney General as an interested | ||||||
3 | party, may be filed as a report
required by this Section.
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4 | (d) The first report for a trust or similar relationship | ||||||
5 | hereafter
established, unless the filing thereof is suspended | ||||||
6 | as herein provided,
shall be filed not later than one year | ||||||
7 | after any part of the income or
principal is authorized or | ||||||
8 | required to be applied to a charitable purpose.
If any part of | ||||||
9 | the income or principal of a trust previously established is
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10 | authorized or required to be applied to a charitable purpose at | ||||||
11 | the time
this Act takes effect, the first report, unless the | ||||||
12 | filing thereof is
suspended, shall be filed within 6 months | ||||||
13 | after the effective date of this
Act. In addition, every | ||||||
14 | trustee registered hereunder that received more than
$25,000 in | ||||||
15 | revenue during a trust fiscal year or has possession
of more | ||||||
16 | than
$25,000 of assets at any time during a fiscal year shall | ||||||
17 | file
an annual
financial report within 6 months of the close of | ||||||
18 | the trust's or organization's
fiscal year, and if a calendar | ||||||
19 | year the report shall be due on each June 30 of
the following | ||||||
20 | year. The Attorney General may, at his or her discretion, offer | ||||||
21 | first and second extensions to the filing deadline contained in | ||||||
22 | this subsection (d) by administrative rule. This rule, if it is | ||||||
23 | adopted, may take account of the separate filing extensions | ||||||
24 | granted to charitable trusts by the United States Internal | ||||||
25 | Revenue Service. Every trustee registered hereunder that did | ||||||
26 | not receive
more than $25,000 in revenue or hold more than |
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1 | $25,000 in assets during a
fiscal year shall file only a | ||||||
2 | simplified summary financial statement disclosing
only the | ||||||
3 | gross receipts, total disbursements, and assets on hand at the | ||||||
4 | end of
the year, on forms prescribed by
the Attorney General.
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5 | (e) The periodic reporting provisions of this Act do not | ||||||
6 | apply to any
trustee of a trust which is the subject matter of | ||||||
7 | an adversary proceeding
pending in the circuit court in this | ||||||
8 | State. However, upon
commencement of the proceeding the trustee | ||||||
9 | shall file a report with the
Attorney General informing him of | ||||||
10 | that fact together with the title and
number of the cause and | ||||||
11 | the name of the court. Upon entry of final judgment
in the | ||||||
12 | cause the trustee shall in like manner report that fact to the
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13 | Attorney General and fully account for all periods of | ||||||
14 | suspension.
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15 | (f) The Attorney General in his discretion may, pursuant to | ||||||
16 | rules and
regulations promulgated by the Attorney General, | ||||||
17 | accept executed copies of
federal Internal Revenue returns and | ||||||
18 | reports as a portion of the annual
reporting. The report shall | ||||||
19 | include a statement of any changes in purpose
or any other | ||||||
20 | information required to be contained in the registration form
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21 | filed on behalf of the organization. The report shall be signed | ||||||
22 | under
penalty of perjury by the president and the chief fiscal | ||||||
23 | officer of any
corporate organization or by 2 trustees if not a | ||||||
24 | corporation. One
signature shall be accepted if there is only | ||||||
25 | one officer or trustee.
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26 | (g) The Attorney General shall cancel the registration of |
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1 | any trust or
organization that wilfully fails to comply with | ||||||
2 | subsections (a), (b), (c)
or (d) of this Section within the | ||||||
3 | time prescribed, and the assets of
the organization may through | ||||||
4 | court proceedings be collected, debts paid and
proceeds | ||||||
5 | distributed under court supervision to other charitable | ||||||
6 | purposes
upon an action filed by the Attorney General as law | ||||||
7 | and equity allow.
Upon timely written request, the due date for | ||||||
8 | filing may be extended by the
Attorney General for a period of | ||||||
9 | 60 days. Notice of registration
cancellation shall be mailed by | ||||||
10 | regular mail to the registrant at the
registration file address | ||||||
11 | or to its registered agent or president 21 days
before the | ||||||
12 | effective date of the cancellation. Reports submitted after
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13 | registration is canceled shall require reregistration.
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14 | (h) Every trustee registered hereunder that received in any | ||||||
15 | fiscal year
more than $25,000 in revenue or held more than | ||||||
16 | $25,000 in assets shall pay a
fee of $15 along with each annual | ||||||
17 | financial report filed pursuant to this Act.
If an annual | ||||||
18 | report is not timely filed, a late filing fee of an additional
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19 | $100 is imposed and shall be paid as a condition of filing a | ||||||
20 | late report.
Reports submitted without the proper fee shall not | ||||||
21 | be accepted for filing.
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22 | (Source: P.A. 90-469, eff. 8-17-97; 91-444, eff. 8-6-99.)".
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