Full Text of HB0135 98th General Assembly
HB0135 98TH GENERAL ASSEMBLY |
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 HB0135 Introduced 1/14/2013, by Rep. Jil Tracy SYNOPSIS AS INTRODUCED: |
| 225 ILCS 460/2 | from Ch. 23, par. 5102 | 225 ILCS 460/4 | from Ch. 23, par. 5104 |
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Amends the Solicitation for Charity Act. Reduces specified penalty registrations to $25 from $200 and a late annual report filing fee to $50 from $100.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 1 | | AN ACT concerning regulation.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Solicitation for Charity Act is amended by | 5 | | changing Sections 2, 4, and 6 as follows:
| 6 | | (225 ILCS 460/2) (from Ch. 23, par. 5102)
| 7 | | Sec. 2. Registration; rules; penalties.
| 8 | | (a) Every charitable organization, except as otherwise | 9 | | provided in
Section 3 of this Act, which solicits or intends to | 10 | | solicit contributions
from persons in this State or which is | 11 | | located in this State, by any
means whatsoever shall, prior to | 12 | | any solicitation, file with the Attorney
General upon forms | 13 | | prescribed by him, a registration statement, accompanied
by a | 14 | | registration fee of $15, which statement shall
include the | 15 | | following certified information:
| 16 | | 1. The name of the organization and the name or names | 17 | | under which it
intends to solicit contributions.
| 18 | | 2. The names and addresses of the officers, directors, | 19 | | trustees, and
chief executive officer of the organization.
| 20 | | 3. The addresses of the organization and the addresses | 21 | | of any offices in
this State. If the organization does not | 22 | | maintain a principal office, the
name and address of the | 23 | | person having custody of its financial records.
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| 1 | | 4. Where and when the organization was legally | 2 | | established, the form of
its organization and its tax | 3 | | exempt status.
| 4 | | 5. The purpose for which the organization is organized | 5 | | and the purpose
or purposes for which the contributions to | 6 | | be solicited will be used.
| 7 | | 6. The date on which the fiscal year of the | 8 | | organization ends.
| 9 | | 7. Whether the organization is authorized by any other | 10 | | governmental
authority to solicit contributions and | 11 | | whether it is or has ever been
enjoined by any court from | 12 | | soliciting contributions.
| 13 | | 8. The names and addresses of any professional fund | 14 | | raisers who are
acting or have agreed to act on behalf of | 15 | | the organization.
| 16 | | 9. Methods by which solicitation will be made.
| 17 | | 10. Copies of contracts between charitable | 18 | | organizations and
professional fund raisers relating to | 19 | | financial compensation or profit to
be derived by the | 20 | | professional fund raisers. Where any such contract is
| 21 | | executed after filing of registration statement, a copy | 22 | | thereof shall be
filed within 10 days of the date of | 23 | | execution.
| 24 | | 11. Board, group, or individual having final | 25 | | discretion as to the
distribution and use of contributions | 26 | | received.
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| 1 | | (b) The registration statement shall be signed by the | 2 | | president or other
authorized officer and the chief fiscal | 3 | | officer of the organization.
| 4 | | (c) Such registration shall remain in effect unless it is | 5 | | either
cancelled as provided in this Act or withdrawn by the | 6 | | organization.
| 7 | | (d) Every registered organization shall notify the | 8 | | Attorney General
within 10 days of any change in the | 9 | | information required to be furnished by
such organization under | 10 | | paragraphs 1 through 11 of subdivision (a) of this
Section.
| 11 | | (e) In no event shall a registration of a charitable | 12 | | organization
continue, or be continued, in effect after the | 13 | | date such organization
should have filed, but failed to file, | 14 | | an annual report in accordance with
the requirements of Section | 15 | | 4 of this Act, and such organization shall
not be eligible to | 16 | | file a new registration until it shall have filed the
required | 17 | | annual report with the Attorney General. If such report is
| 18 | | subsequently filed and accepted by the Attorney General such | 19 | | organization
may file a new registration.
If a person, trustee, | 20 | | or organization fails to timely register or maintain a
| 21 | | registration of a trust or organization as required by this Act | 22 | | or if its
registration is cancelled as provided in this Act, | 23 | | and if that trust or
organization remains in existence and by | 24 | | law is required to be registered, in
order to re-register or | 25 | | file a late registration a current registration
statement must | 26 | | be filed accompanied by financial reports in the form required
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| 1 | | herein for all past years. In all instances where | 2 | | re-registration and late
registration are allowed, the new | 3 | | registration materials must be filed,
accompanied by a penalty | 4 | | registration fee of $25 $200 .
| 5 | | (f) Subject to reasonable rules and regulations adopted by | 6 | | the Attorney
General, the register, registration statements, | 7 | | annual reports, financial
statements, professional fund | 8 | | raisers' contracts, bonds, applications for
registration and | 9 | | re-registration, and other documents required to be filed
with | 10 | | the Attorney General shall be open to public inspection.
| 11 | | Every person subject to this Act shall maintain accurate | 12 | | and detailed
books and records at the principal office of the | 13 | | organization to provide
the information required herein. All | 14 | | such books and records shall be open
to inspection at all | 15 | | reasonable times by the Attorney General or his duly
authorized | 16 | | representative.
| 17 | | (g) Where any local, county or area division of a | 18 | | charitable
organization is supervised and controlled by a | 19 | | superior or parent
organization, incorporated, qualified to do | 20 | | business, or doing business
within this State, such local, | 21 | | county or area division shall not be
required to register under | 22 | | this Section if the superior or parent
organization files a | 23 | | registration statement on behalf of the local, county
or area | 24 | | division in addition to or as part of its own registration
| 25 | | statement. Where a registration statement has been filed by a | 26 | | superior or
parent organization as provided in Section 2(g) of |
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| 1 | | this Act, it shall
file the annual report required under | 2 | | Section 4 of this Act on behalf of
the local, county or area | 3 | | division in addition to or as part of its own
report, but the | 4 | | accounting information required under Section 4 of this Act
| 5 | | shall be set forth separately and not in consolidated form with | 6 | | respect to
every local, county or area division which raises or | 7 | | expends more than
$4,000.
| 8 | | (h) The Attorney General may make rules of procedure and | 9 | | regulations
necessary for the administration of this Act. | 10 | | Copies of all such rules of
procedure and regulations and of | 11 | | all changes therein, duly certified by the
Attorney General, | 12 | | shall be filed in the office of the Secretary of State.
| 13 | | (i) If a person, organization, or trustee fails to register | 14 | | or if
registration
of a trust or organization is cancelled as | 15 | | provided in this Act, the
person, organization or
trustee is | 16 | | subject to injunction, to removal, to account, and to
| 17 | | appropriate other relief before the circuit court exercising | 18 | | chancery
jurisdiction.
In addition to any other relief granted | 19 | | under this Act, the court may
impose a civil penalty of not | 20 | | less than $500 nor more than $1,000 against the
organization or | 21 | | trust estate that failed to
register or
failed to maintain a | 22 | | registration required under this Act. The collected
penalty | 23 | | funds shall be used for charitable trust enforcement and for | 24 | | providing
charitable trust information to the public.
| 25 | | (Source: P.A. 90-469, eff. 8-17-97; 91-444, eff. 8-6-99.)
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| 1 | | (225 ILCS 460/4) (from Ch. 23, par. 5104)
| 2 | | Sec. 4.
(a) Every charitable organization registered | 3 | | pursuant to Section 2
of this Act which shall receive in any 12 | 4 | | month period ending upon its
established fiscal or calendar | 5 | | year contributions in excess of $300,000
and every charitable | 6 | | organization whose fund raising functions are not
carried on | 7 | | solely by staff employees or persons who are unpaid for such
| 8 | | services, if the organization shall receive in any 12 month | 9 | | period ending
upon its established fiscal or calendar year | 10 | | contributions in excess of
$25,000, shall file a
written report | 11 | | with the Attorney General upon forms
prescribed by him, on or | 12 | | before June 30 of each year if its books are kept
on a calendar | 13 | | basis, or within 6 months after the close of its fiscal year
if | 14 | | its books are kept on a fiscal year basis, which written report | 15 | | shall
include a
financial statement covering the immediately | 16 | | preceding 12 month period of
operation. Such financial | 17 | | statement shall include a balance sheet and
statement of income | 18 | | and expense, and shall be consistent with forms
furnished by | 19 | | the Attorney General clearly setting forth the following:
gross | 20 | | receipts and gross income from all sources, broken down into | 21 | | total
receipts and income from each separate solicitation
| 22 | | project or source; cost of administration; cost of | 23 | | solicitation; cost of
programs designed to inform or educate | 24 | | the public; funds or properties
transferred out of this State, | 25 | | with explanation as to recipient and
purpose; cost of | 26 | | fundraising; compensation paid to trustees; and total net
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| 1 | | amount disbursed or dedicated for each major purpose,
| 2 | | charitable or otherwise. Such report shall also include a | 3 | | statement of any
changes in the information required to be | 4 | | contained in the registration
form filed on behalf of such | 5 | | organization. The report shall be signed by
the president or | 6 | | other authorized officer and the chief fiscal officer of
the | 7 | | organization who shall certify that the statements therein are | 8 | | true
and correct to the best of their knowledge, and shall be | 9 | | accompanied by
an opinion signed by an independent certified | 10 | | public accountant that the
financial statement therein fairly | 11 | | represents the financial operations of
the organization in | 12 | | sufficient detail to permit public evaluation of its
| 13 | | operations. Said opinion may be relied upon by the Attorney | 14 | | General.
| 15 | | (b) Every organization registered pursuant to Section 2 of | 16 | | this Act
which shall receive in any 12 month period ending upon | 17 | | its established
fiscal or calendar year of any year
| 18 | | contributions:
| 19 | | (1) in excess of $15,000, but not in excess of $25,000, | 20 | | during a
fiscal
year shall file only a simplified summary | 21 | | financial statement disclosing only
the gross receipts, | 22 | | total disbursements, and assets on hand at the end of the
| 23 | | year on forms prescribed by the Attorney General; or
| 24 | | (2) in excess of $25,000, but not in excess of | 25 | | $300,000, if it is not
required to submit a report under
| 26 | | subsection (a) of this Section, shall
file a written report |
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| 1 | | with the Attorney General upon forms prescribed by
him, on | 2 | | or before June 30 of each year if its books are kept on a | 3 | | calendar
basis, or within 6 months after the close of its | 4 | | fiscal year if its books
are kept on a fiscal year basis, | 5 | | which shall include a financial statement
covering the | 6 | | immediately preceding 12-month period of operation limited | 7 | | to
a statement of such organization's gross receipts from | 8 | | contributions, the
gross amount expended for charitable | 9 | | educational programs, other charitable
programs, | 10 | | management expense, and fund
raising expenses including a | 11 | | separate statement of the cost of any goods,
services or | 12 | | admissions supplied as part of its solicitations, and the
| 13 | | disposition of the net proceeds from contributions, | 14 | | including compensation
paid to trustees, consistent with | 15 | | forms furnished by the Attorney General.
Such report shall | 16 | | also
include a statement of any changes in the information | 17 | | required to be
contained in the registration form filed on | 18 | | behalf of such organization.
The report shall be signed by | 19 | | the president or other authorized officer and
the chief | 20 | | fiscal officer of the organization who shall certify that | 21 | | the
statements therein are true and correct to the best of | 22 | | their knowledge.
| 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
| 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.
| 14 | | (d) As an alternative means of satisfying the duties and | 15 | | obligations
otherwise imposed by this Section, any veterans | 16 | | organization
chartered or incorporated under federal law and | 17 | | any veterans organization
which is affiliated with, and | 18 | | recognized in the bylaws of, a
congressionally chartered or | 19 | | incorporated organization may, at its option,
annually file | 20 | | with the Attorney General the following documents:
| 21 | | (1) A copy of its Form 990, as filed with the Internal | 22 | | Revenue Service.
| 23 | | (2) Copies of any reports required to be filed by the | 24 | | affiliate with
the congressionally chartered or | 25 | | incorporated veterans organization, as well
as copies of | 26 | | any reports filed by the congressionally chartered or
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| 1 | | incorporated veterans organization with the government of | 2 | | the United States
pursuant to federal law.
| 3 | | (3) Copies of all contracts entered into by the | 4 | | congressionally
chartered or incorporated veterans | 5 | | organization or its affiliate for
purposes of raising funds | 6 | | in this State, such copies to be filed with the
Attorney | 7 | | General no more than 30 days after execution of the | 8 | | contracts.
| 9 | | (e) As an alternative means of satisfying all of the duties | 10 | | and
obligations otherwise imposed by this Section, any person, | 11 | | pursuant
to a
contract with a charitable organization, a | 12 | | veterans organization or an
affiliate described or referred to | 13 | | in subsection (d), who receives,
collects, holds or transports | 14 | | as the agent of the organization or affiliate
for purposes of | 15 | | resale any used or second hand personal property, including
but | 16 | | not limited to household goods, furniture or clothing donated | 17 | | to the
organization or affiliate may, at its option, annually | 18 | | file with the
Attorney General the following documents, | 19 | | accompanied by an annual filing fee
of $15:
| 20 | | (1) A notarized report including the number of | 21 | | donations of personal
property it has received on behalf of | 22 | | the charitable organization, veterans
organization or | 23 | | affiliate during the proceeding year. For purposes of this
| 24 | | report, the number of donations of personal property shall | 25 | | refer to the
number of stops or pickups made regardless of | 26 | | the number of items received
at each stop or pickup. The |
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| 1 | | report may cover the person's fiscal year, in
which case it | 2 | | shall be filed with the Attorney General no later than 90
| 3 | | days after the close of that fiscal year.
| 4 | | (2) All contracts with the charitable organization, | 5 | | veterans
organization or affiliate under which the person | 6 | | has acted as an agent for
the purposes listed above.
| 7 | | (3) All contracts by which the person agreed to pay the | 8 | | charitable
organization, veterans organization or | 9 | | affiliate a fixed amount for, or a
fixed percentage of the | 10 | | value of, each donation of used or second hand
personal | 11 | | property. Copies of all such contracts shall be filed no | 12 | | later
than 30 days after they are executed.
| 13 | | (f) The Attorney General may seek appropriate equitable | 14 | | relief from a
court or, in his discretion, cancel the | 15 | | registration
of any organization which fails to comply with | 16 | | subdivision (a), (b) or (c) of
this Section within the time | 17 | | therein prescribed, or fails to furnish such
additional | 18 | | information as is requested by the Attorney General within the
| 19 | | required time; except that the time may be extended by the | 20 | | Attorney General
for a period not to exceed 60 days upon a | 21 | | timely written
request and for
good cause stated. Unless | 22 | | otherwise stated herein, the Attorney General
shall, by
rule, | 23 | | set forth the standards used to determine whether a | 24 | | registration
shall be cancelled as authorized by this | 25 | | subsection. Such standards shall
be stated as precisely and | 26 | | clearly as practicable, to inform fully those
persons affected. |
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| 1 | | Notice of such cancellation shall be mailed to the
registrant | 2 | | at least 15 days before the effective date thereof.
| 3 | | (g) The Attorney General in his discretion may, pursuant to | 4 | | rule,
accept executed copies of federal Internal Revenue | 5 | | returns and reports as a
portion of the foregoing
annual | 6 | | reporting in the interest of minimizing paperwork, except there
| 7 | | shall be no substitute for the independent certified public | 8 | | accountant
audit opinion required by this Act.
| 9 | | (h) The Attorney General after canceling the registration | 10 | | of any trust
or organization which fails to comply with
this
| 11 | | Section within the time therein prescribed may by court | 12 | | proceedings, in
addition to all other relief, seek to
collect | 13 | | the assets and distribute such under court supervision to other
| 14 | | charitable purposes.
| 15 | | (i) Every trustee, person, and organization required to | 16 | | file an annual
report shall pay a filing fee of $15 with each | 17 | | annual financial report filed
pursuant to this Section. If a | 18 | | proper and complete annual report is not timely
filed, a late | 19 | | filing fee of an additional $50 $100 is imposed and shall be | 20 | | paid
as a condition of filing a late report. Reports submitted | 21 | | without the proper
fee shall not be accepted for filing. | 22 | | Payment of the late filing fee and
acceptance by the Attorney | 23 | | General shall both be conditions of filing a late
report. All | 24 | | late filing fees shall be used to provide charitable trust
| 25 | | enforcement and dissemination of charitable trust information | 26 | | to the public and
shall be maintained in a separate fund for |
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| 1 | | such purpose known as the Illinois
Charity Bureau Fund.
| 2 | | (j) There is created hereby a separate special fund in the | 3 | | State Treasury to
be known as the Illinois Charity Bureau Fund. | 4 | | That Fund shall be under the
control of the Attorney General, | 5 | | and the funds, fees, and penalties deposited
therein shall be | 6 | | used by the Attorney General to enforce the provisions of this
| 7 | | Act and to gather and disseminate information about charitable | 8 | | trustees and
organizations to the public.
| 9 | | (Source: P.A. 96-488, eff. 1-1-10.)
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