Full Text of HB4329 100th General Assembly
HB4329 100TH GENERAL ASSEMBLY |
| | 100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018 HB4329 Introduced , by Rep. Lawrence Walsh, Jr. SYNOPSIS AS INTRODUCED: |
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805 ILCS 105/103.05 | from Ch. 32, par. 103.05 |
805 ILCS 105/108.70 | from Ch. 32, par. 108.70 |
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Amends the General Not For Profit Corporation Act of 1986. Includes the purpose of ownership and operation of a public wastewater service or system on a mutual or cooperative basis to the list of purposes for which a not-for-profit corporation may be organized under the Act. Exempts any director of a corporation that is organized for the purpose of (i) operating water supply facilities for
drinking and general domestic use on a mutual or cooperative basis or (ii) ownership and operation of a public wastewater service or system on a mutual or cooperative basis from liability for damages resulting from the exercise of judgment or
discretion in connection with his or her duties or responsibilities, with certain exceptions.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 1 | | AN ACT concerning business.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The General Not For Profit Corporation Act of | 5 | | 1986 is amended by changing Sections 103.05 and 108.70 as | 6 | | follows:
| 7 | | (805 ILCS 105/103.05) (from Ch. 32, par. 103.05)
| 8 | | Sec. 103.05. Purposes and authority of corporations;
| 9 | | particular purposes; exemptions.
| 10 | | (a) Not-for-profit corporations may be organized under | 11 | | this Act for any
one or more of the following or similar | 12 | | purposes:
| 13 | | (1) Charitable.
| 14 | | (2) Benevolent.
| 15 | | (3) Eleemosynary.
| 16 | | (4) Educational.
| 17 | | (5) Civic.
| 18 | | (6) Patriotic.
| 19 | | (7) Political.
| 20 | | (8) Religious.
| 21 | | (9) Social.
| 22 | | (10) Literary.
| 23 | | (11) Athletic.
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| 1 | | (12) Scientific.
| 2 | | (13) Research.
| 3 | | (14) Agricultural.
| 4 | | (15) Horticultural.
| 5 | | (16) Soil improvement.
| 6 | | (17) Crop improvement.
| 7 | | (18) Livestock or poultry improvement.
| 8 | | (19) Professional, commercial, industrial, or trade | 9 | | association.
| 10 | | (20) Promoting the development, establishment, or | 11 | | expansion
of industries.
| 12 | | (21) Electrification on a cooperative basis.
| 13 | | (22) Telephone service on a mutual or cooperative | 14 | | basis.
| 15 | | (23) Ownership and operation of water supply | 16 | | facilities for
drinking and general domestic use on a | 17 | | mutual or cooperative basis.
| 18 | | (24) Ownership or administration of residential | 19 | | property on a
cooperative basis.
| 20 | | (25) Administration and operation of property owned on | 21 | | a
condominium basis or by a homeowner association.
| 22 | | (26) Administration and operation of an organization | 23 | | on a
cooperative basis producing or furnishing goods, | 24 | | services,
or facilities primarily for the benefit of its | 25 | | members who
are consumers of those goods, services, or | 26 | | facilities.
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| 1 | | (27) Operation of a community mental health board or | 2 | | center
organized pursuant to the Community Mental Health | 3 | | Act for the purpose of
providing direct patient services.
| 4 | | (28) Provision of debt management services as | 5 | | authorized by the Debt
Management Service Act.
| 6 | | (29) Promotion, operation, and administration of a
| 7 | | ridesharing arrangement as defined in Section 1-176.1 of
| 8 | | the Illinois Vehicle Code.
| 9 | | (30) The administration and operation of an | 10 | | organization for the
purpose of assisting low-income | 11 | | consumers in the acquisition of utility and
telephone | 12 | | services.
| 13 | | (31) Any purpose permitted to be exempt from taxation | 14 | | under
Sections 501(c) or 501(d)
of the United States | 15 | | Internal Revenue Code,
as now in
or hereafter amended.
| 16 | | (32) Any purpose that would qualify for tax-deductible | 17 | | gifts under the
Section 170(c) of the United States | 18 | | Internal Revenue Code, as now
or hereafter amended. Any | 19 | | such purpose is deemed to be charitable
under subsection | 20 | | (a)(1) of this Section.
| 21 | | (33) Furnishing of natural gas on a cooperative basis.
| 22 | | (34) Ownership and operation of agriculture-based | 23 | | biogas (anaerobic digester) systems on a cooperative basis | 24 | | including the marketing and sale of products produced from | 25 | | these, including but not limited to methane gas, | 26 | | electricity, and compost. |
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| 1 | | (35) Ownership and operation of a public wastewater | 2 | | service or system on a mutual or cooperative basis. | 3 | | (b) A corporation may be organized hereunder to serve in an
| 4 | | area that adjoins or borders (except for any intervening
| 5 | | natural watercourse) an area located in an adjoining state
| 6 | | intended to be similarly served, and the corporation may
join | 7 | | any corporation created by the adjoining state having
an | 8 | | identical purpose and organized as a not-for-profit
| 9 | | corporation. Whenever any corporation organized under this
Act | 10 | | so joins with a foreign corporation having an identical
| 11 | | purpose, the corporation shall be permitted to do business
in | 12 | | Illinois as one corporation; provided (1) that the name,
bylaw | 13 | | provisions, officers, and directors of each
corporation are | 14 | | identical, (2) that the foreign corporation
complies with the | 15 | | provisions of this Act relating to the
admission of foreign | 16 | | corporation, and (3) that the Illinois
corporation files a | 17 | | statement with the Secretary of State
indicating that it has | 18 | | joined with a foreign corporation
setting forth the name | 19 | | thereof and the state of its incorporation.
| 20 | | (Source: P.A. 98-317, eff. 8-12-13.)
| 21 | | (805 ILCS 105/108.70) (from Ch. 32, par. 108.70)
| 22 | | Sec. 108.70. Limited Liability of directors, officers, | 23 | | board members,
and persons who serve without compensation. | 24 | | (a) No director or officer serving without compensation, | 25 | | other than
reimbursement for actual expenses, of a corporation |
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| 1 | | organized under this
Act or any predecessor Act and exempt, or | 2 | | qualified for exemption, from
taxation pursuant to Section | 3 | | 501(c) of the Internal Revenue Code of 1986,
as amended, shall | 4 | | be liable, and no cause of action may be brought, for
damages | 5 | | resulting from the exercise of judgment or discretion in | 6 | | connection
with the duties or responsibilities of such director | 7 | | or officer unless the
act or omission involved willful or | 8 | | wanton conduct.
| 9 | | (b) No director of a corporation organized under this Act
| 10 | | or any predecessor Act for the purposes identified in items | 11 | | (14), (19),
(21) , and (22) , (23), and (35) of
subsection (a) of | 12 | | Section 103.05 of this Act, and exempt or qualified for
| 13 | | exemption from taxation pursuant to Section 501(c) of the | 14 | | Internal
Revenue Code of 1986, as amended, shall be liable, and | 15 | | no cause of action
may be brought for damages resulting from | 16 | | the exercise of judgment or
discretion in connection with the | 17 | | duties or responsibilities of such
director, unless: (1) such | 18 | | director earns in excess of $25,000 per year from
his duties as | 19 | | director, other than reimbursement for actual expenses; or
(2) | 20 | | the act or omission involved willful or wanton conduct.
| 21 | | (b-5) Except for willful and wanton conduct, no volunteer | 22 | | board member serving without compensation, other than | 23 | | reimbursement for actual expenses, of a corporation organized | 24 | | under this Act or any predecessor Act and exempt, or qualified | 25 | | for exemption, from taxation pursuant to Section 501(c)(3) of | 26 | | the Internal Revenue Code of 1986, as amended, shall be liable, |
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| 1 | | and no action may be brought, for damages resulting from any | 2 | | action of the executive director concerning the false reporting | 3 | | of or intentional tampering with financial records of the | 4 | | organization, where the actions of the executive director | 5 | | result in legal action.
| 6 | | This subsection (b-5) shall not apply to any action taken | 7 | | by the Attorney General (i) in the exercise of his or her | 8 | | common law or statutory power and duty to protect charitable | 9 | | assets or (ii) in the exercise of his or her authority to | 10 | | enforce the laws of this State that apply to trustees of a | 11 | | charity, as that term is defined in the Charitable Trust Act | 12 | | and the Solicitation for Charity Act.
| 13 | | (c) No person who, without compensation other than | 14 | | reimbursement for
actual expenses, renders service to or for a | 15 | | corporation organized under
this Act or any predecessor Act and | 16 | | exempt or qualified for exemption
from taxation pursuant to
| 17 | | Section 501(c)(3) of the Internal Revenue Code of 1986, as | 18 | | amended, shall
be liable, and no cause of action may be | 19 | | brought, for damages resulting
from an act or omission in | 20 | | rendering such services, unless the act or
omission involved | 21 | | willful or wanton conduct.
| 22 | | (d) (Blank).
| 23 | | (e) Nothing in this Section is intended to bar any cause of | 24 | | action
against the corporation or change the liability of the | 25 | | corporation arising
out of an act or omission of any director, | 26 | | officer or person exempt from
liability for negligence under |
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| 1 | | this Section.
| 2 | | (Source: P.A. 95-342, eff. 1-1-08; 96-649, eff. 1-1-10.)
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