HB1309 96TH GENERAL ASSEMBLY

LRB096 09659 ASK 19820 b

96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB1309

Introduced 2/18/2009, by Rep. Chapin Rose

SYNOPSIS AS INTRODUCED:

225 ILCS 460/2

from Ch. 23, par. 5102

Amends the Solicitation for Charity Act. Provides that in all subsequent instances after the first instance where re-registration and late registration are allowed, any re-registration and late registration must require that the new registration materials be filed along with a penalty registration fee of $200 (now, penalty registration fee is required on the first instance). Provides that the court may impose a civil penalty of not less than $500 nor more than $1,000 against the organization or trust estate that, for a second or subsequent time, has failed to register or failed to maintain a registration required under this Act (now, may impose a civil penalty for first failure under the Section).

A BILL FOR

AN ACT concerning regulation.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Solicitation for Charity Act is amended by changing Section 2 as follows:

(225 ILCS 460/2) (from Ch. 23, par. 5102)

Sec. 2. Registration; rules; penalties.

(a) Every charitable organization, except as otherwise provided in Section 3 of this Act, which solicits or intends to solicit contributions from persons in this State or which is located in this State, by any means whatsoever shall, prior to any solicitation, file with the Attorney General upon forms prescribed by him, a registration statement, accompanied by a registration fee of $15, which statement shall include the following certified information:

1. The name of the organization and the name or names under which it intends to solicit contributions.

2. The names and addresses of the officers, directors, trustees, and chief executive officer of the organization.

3. The addresses of the organization and the addresses of any offices in this State. If the organization does not maintain a principal office, the name and address of the person having custody of its financial records.

4. Where and when the organization was legally established, the form of its organization and its tax exempt status.

5. The purpose for which the organization is organized and the purpose or purposes for which the contributions to be solicited will be used.

6. The date on which the fiscal year of the organization ends.

7. Whether the organization is authorized by any other governmental authority to solicit contributions and whether it is or has ever been enjoined by any court from soliciting contributions.

8. The names and addresses of any professional fund raisers who are acting or have agreed to act on behalf of the organization.

9. Methods by which solicitation will be made.

10. Copies of contracts between charitable organizations and professional fund raisers relating to financial compensation or profit to be derived by the professional fund raisers. Where any such contract is executed after filing of registration statement, a copy thereof shall be filed within 10 days of the date of execution.

11. Board, group, or individual having final discretion as to the distribution and use of contributions received.

(b) The registration statement shall be signed by the president or other authorized officer and the chief fiscal officer of the organization.

(c) Such registration shall remain in effect unless it is either cancelled as provided in this Act or withdrawn by the organization.

(d) Every registered organization shall notify the Attorney General within 10 days of any change in the information required to be furnished by such organization under paragraphs 1 through 11 of subdivision (a) of this Section.

(e) In no event shall a registration of a charitable organization continue, or be continued, in effect after the date such organization should have filed, but failed to file, an annual report in accordance with the requirements of Section 4 of this Act, and such organization shall not be eligible to file a new registration until it shall have filed the required annual report with the Attorney General. If such report is subsequently filed and accepted by the Attorney General such organization may file a new registration. If a person, trustee, or organization fails to timely register or maintain a registration of a trust or organization as required by this Act or if its registration is cancelled as provided in this Act, and if that trust or organization remains in existence and by law is required to be registered, in order to re-register or file a late registration a current registration statement must be filed accompanied by financial reports in the form required herein for all past years. In all instances where re-registration and late registration are allowed, the new registration materials must be filed. , In all subsequent instances after the first instance where re-registration and late registration are allowed, any re-registration and late registration must require that the new registration materials be filed along with accompanied by a penalty registration fee of $200.

(f) Subject to reasonable rules and regulations adopted by the Attorney General, the register, registration statements, annual reports, financial statements, professional fund raisers' contracts, bonds, applications for registration and re-registration, and other documents required to be filed with the Attorney General shall be open to public inspection.

Every person subject to this Act shall maintain accurate and detailed books and records at the principal office of the organization to provide the information required herein. All such books and records shall be open to inspection at all reasonable times by the Attorney General or his duly authorized representative.

(g) Where any local, county or area division of a charitable organization is supervised and controlled by a superior or parent organization, incorporated, qualified to do business, or doing business within this State, such local, county or area division shall not be required to register under this Section if the superior or parent organization files a registration statement on behalf of the local, county or area division in addition to or as part of its own registration statement. Where a registration statement has been filed by a superior or parent organization as provided in Section 2(g) of this Act, it shall file the annual report required under Section 4 of this Act on behalf of the local, county or area division in addition to or as part of its own report, but the accounting information required under Section 4 of this Act shall be set forth separately and not in consolidated form with respect to every local, county or area division which raises or expends more than $4,000.

(h) The Attorney General may make rules of procedure and regulations necessary for the administration of this Act. Copies of all such rules of procedure and regulations and of all changes therein, duly certified by the Attorney General, shall be filed in the office of the Secretary of State.

(i) If a person, organization, or trustee fails to register or if registration of a trust or organization is cancelled as provided in this Act, the person, organization or trustee is subject to injunction, to removal, to account, and to appropriate other relief before the circuit court exercising chancery jurisdiction. In addition to any other relief granted under this Act, the court may impose a civil penalty of not less than $500 nor more than $1,000 against the organization or trust estate that, for a second or subsequent time, has failed to register or failed to maintain a registration required under this Act. The collected penalty funds shall be used for charitable trust enforcement and for providing charitable trust information to the public.

(Source: P.A. 90-469, eff. 8-17-97; 91-444, eff. 8-6-99.)