Full Text of HB4315 94th General Assembly
HB4315enr 94TH GENERAL ASSEMBLY
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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 | 5 |
| 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 | 8 |
| shall have the
following meanings unless a different meaning is | 9 |
| required by the context.
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| (a) "Charitable organization " means any
." Any benevolent, | 11 |
| philanthropic, patriotic,
or eleemosynary person or one | 12 |
| purporting to be such which solicits and
collects funds for | 13 |
| charitable purposes and includes each local, county, or
area | 14 |
| division within this State of such charitable organization, | 15 |
| provided
such local, county or area division has authority and | 16 |
| discretion to
disburse funds or property otherwise than by | 17 |
| transfer to any parent
organization.
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| (b) "Contribution " means the
." The promise or grant of any | 19 |
| money or property of any
kind or value, including the promise | 20 |
| to pay, except payments by union
members of an organization. | 21 |
| Reference to the dollar amount of
"contributions" in this Act | 22 |
| means in the case of promises to pay, or
payments for | 23 |
| 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 | 25 |
| merchandise or rights
and not merely that portion of the | 26 |
| purchase price to be applied to a
charitable purpose. | 27 |
| Contribution shall not include the proceeds from the
sale of | 28 |
| admission tickets by any not-for-profit music or dramatic arts
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| organization which establishes, by such proof as the Attorney | 30 |
| General may
require, that it has received an exemption under | 31 |
| Section 501(c)(3) of the
Internal Revenue Code and which is | 32 |
| organized and operated for the
presentation of live public |
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| performances of musical or theatrical works on
a regular basis. | 2 |
| For purposes of this subsection, union member dues and
donated | 3 |
| services shall not be deemed contributions.
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| (c) "Person " means any
." Any individual, organization, | 5 |
| group, association,
partnership, corporation, trust or any | 6 |
| combination of them.
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| (d) "Professional fund raiser " means any
." Any person who | 8 |
| for compensation or other
consideration, conducts, manages, or | 9 |
| carries on any solicitation or fund raising drive or
campaign | 10 |
| 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 | 12 |
| soliciting , receiving, or collecting
contributions for or on | 13 |
| behalf of any charitable organization or any other
person, or | 14 |
| 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 | 16 |
| soliciting , receiving, or collecting
contributions for such | 17 |
| purposes. A bona fide director, officer, employee or
unpaid | 18 |
| volunteer of a charitable organization shall not be deemed a
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| professional fund raiser unless the person is in a management | 20 |
| position and
the majority of the individual's salary or other | 21 |
| compensation is computed
on a percentage basis of funds to be | 22 |
| 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 | 25 |
| for a fixed fee or rate that is not
computed on a percentage of | 26 |
| funds to be raised, or actually raised, under a
written | 27 |
| agreement, to only plan, advise, consult, or prepare materials | 28 |
| for a
solicitation of contributions in this State, but who does | 29 |
| not manage,
conduct or carry on a fundraising campaign and who | 30 |
| does not solicit
contributions or employ, procure, or engage | 31 |
| any compensated person to
solicit contributions and who does | 32 |
| not at any time have custody or control
of contributions. A | 33 |
| volunteer, employee or salaried officer of a
charitable | 34 |
| organization or trustee maintaining a permanent establishment | 35 |
| or
office in this State is not a professional fundraising | 36 |
| consultant. An
attorney, investment counselor, or banker who |
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| advises an individual,
corporation or association to make a | 2 |
| charitable contribution is not a
professional fundraising | 3 |
| consultant as a result of the advice.
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| (f) "Charitable purpose " means any
." Any charitable, | 5 |
| benevolent, philanthropic,
patriotic, or eleemosynary purpose.
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| (g) "Charitable Trust" means any relationship whereby | 7 |
| property is held
by a person for a charitable purpose.
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| (h) "Education Program Service" means any activity which | 9 |
| provides
information to the public of a nature that is not | 10 |
| commonly known or facts
which are not universally regarded as | 11 |
| obvious or as established by common
understanding and which | 12 |
| informs the public of what it can or should do
about a | 13 |
| particular issue.
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| (i) "Primary Program Service" means the program service | 15 |
| upon which an
organization spends more than 50% of its program | 16 |
| service funds or the
program activity which represents the | 17 |
| largest expenditure of funds in
the fiscal period.
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| (j) "Professional solicitor" means any natural person who | 19 |
| is employed or
retained for compensation by a professional fund | 20 |
| raiser to solicit , receive, or collect
contributions for | 21 |
| charitable purposes from persons in this State or from
this | 22 |
| 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 | 25 |
| program
activities of a charitable organization for which it | 26 |
| expends its resources.
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| (l) "Program Service Expense" means the expenses of | 28 |
| charitable program
activity and not management expenses or fund | 29 |
| raising expenses. In
determining Program Service Expense, | 30 |
| management and fund raising expenses
may not be included.
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| (m) "Public Safety Personnel Organization" means any | 32 |
| person who uses any
of the words "officer", "police", | 33 |
| "policeman", "policemen", "troopers",
"sheriff", "law | 34 |
| enforcement", "fireman", "firemen", "paramedic", or
similar | 35 |
| words in
its name or in conjunction with solicitations, or in | 36 |
| the title or name of a magazine, newspaper, periodical, |
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| advertisement book, or any other medium of electronic or print | 2 |
| publication, and is not
a governmental entity.
No organization | 3 |
| 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 | 5 |
| disabled
police officers, peace officers,
firemen, fire | 6 |
| fighters, emergency medical technicians - ambulance,
emergency | 7 |
| medical technicians - intermediate, emergency medical | 8 |
| technicians -
paramedic, ambulance drivers, or other medical | 9 |
| assistance or first aid
personnel.
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| (m-5) "Public Safety Personnel" includes police officers, | 11 |
| peace officers,
firemen, fire fighters, emergency medical | 12 |
| technicians - ambulance,
emergency medical technicians - | 13 |
| intermediate, emergency medical technicians -
paramedic, | 14 |
| 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 | 17 |
| individuals,
association, corporation, not for profit | 18 |
| corporation, or other legal entity
holding property for or | 19 |
| solicited for any charitable purpose; or any
officer, director, | 20 |
| executive director or other controlling persons of a
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| corporation soliciting or holding property for a charitable | 22 |
| 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, | 26 |
| professional fund
raiser or professional solicitor, which or | 27 |
| who solicits , receives, or collects contributions in
this | 28 |
| State, but does not maintain an office within the State or | 29 |
| cannot be
located within the State shall be subject to service | 30 |
| of process, as follows:
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| (a) By service thereof on its registered agent within the | 32 |
| State, or if
there be no such registered agent, then upon the | 33 |
| person who has been
designated in the registration statement as | 34 |
| having custody of books and
records within this State; where | 35 |
| service is effected upon the person so
designated in the |
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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 | 4 |
| collected contributions in this
State, but maintains no office | 5 |
| within the State, has no registered agent
within the State, and | 6 |
| no designated person having custody of its books and
records | 7 |
| 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 | 9 |
| found as shown
by the return of the sheriff of the county in | 10 |
| which such registered agent
or person having custody of books | 11 |
| and records has been represented by the
charitable organization | 12 |
| or person as maintaining an office, service may be
made by | 13 |
| delivering to and leaving with the Secretary of State, or with | 14 |
| any
deputy or clerk in the corporation department of his | 15 |
| office, three copies thereof;
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| (c) Following service upon the Secretary of State the | 17 |
| provisions of law
relating to service of process on foreign | 18 |
| 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 | 21 |
| contribution within this State by any
charitable organization | 22 |
| or any person shall be deemed to be their agreement
that any | 23 |
| 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 | 25 |
| and effect
as if served personally within this State and that | 26 |
| the courts of this State
shall have personal jurisdiction over | 27 |
| such organizations, persons and trustees;
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| (f) Venue over persons required to be registered under this | 29 |
| Act shall be
proper in any county where the Attorney General | 30 |
| accepts and maintains the list
of registrations. In furtherance | 31 |
| of judicial economy, actions filed for
violation of this Act | 32 |
| may name multiple trustees, trusts, and organizations in
a
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| single or joint action where those joined have each engaged in | 34 |
| similar conduct
in violation of this Act or where similar | 35 |
| relief is sought against those
defendants for violation of this | 36 |
| Act.
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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 | 5 |
| allow
a professional fund raiser entity he owns, manages or | 6 |
| controls to act for a
charitable organization required to | 7 |
| register pursuant to Section 2 of this
Act, or for any | 8 |
| organization as described in Section 3 of
this Act before he | 9 |
| has registered himself or the entity with the
Attorney General | 10 |
| or after the expiration or cancellation of such
registration or | 11 |
| any renewal thereof. Applications for registration and
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| re-registration shall be in writing, under oath, in the form | 13 |
| prescribed by
the Attorney General.
A registration fee of $100 | 14 |
| shall be paid with each registration and upon
each | 15 |
| re-registration.
Registration and re-registration can proceed | 16 |
| only if all financial
reports have been filed in proper form | 17 |
| and all fees have been paid in full.
If the applicant intends | 18 |
| to or
does take control or possession of charitable funds, the | 19 |
| applicant shall at
the time of making application, file with, | 20 |
| and have approved by, the
Attorney General a bond in which the | 21 |
| applicant shall be the principal
obligor, in the sum of | 22 |
| $10,000, with one or more corporate sureties licensed
to do | 23 |
| business in this State whose liability in the aggregate will at | 24 |
| least
equal such sum. The bond shall run to the Attorney | 25 |
| General for the use of
the State and to any person who may have | 26 |
| a cause of action against the
obligor of the bond for any | 27 |
| malfeasance or misfeasance in the conduct of
such solicitation; | 28 |
| provided, that the aggregate limit of liability of the
surety | 29 |
| to the State and to all such persons shall, in no event, exceed | 30 |
| the
sum of such bond. Registration or re-registration when | 31 |
| effected shall be
for a period of one year, or a part thereof, | 32 |
| expiring on the 30th day of
June, and may be renewed upon | 33 |
| written application, under oath, in the form
prescribed by the | 34 |
| Attorney General and the filing of the bond for
additional one | 35 |
| year periods. Every professional fund raiser required to
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| register pursuant to this Act shall file an annual written | 2 |
| report with the
Attorney General containing such information as | 3 |
| he may require by rule.
Certification shall be required for | 4 |
| only information within the
professional fund raiser's | 5 |
| 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 | 8 |
| and shall be
considered registered. If the materials submitted | 9 |
| are determined to be
inaccurate or incomplete, the Attorney | 10 |
| General shall notify the
professional fund raiser of his | 11 |
| findings and the defect and that within 30
days his | 12 |
| registration will be cancelled unless the defect is cured | 13 |
| within
said time.
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| (c) Every professional fund raiser registered under this | 15 |
| Act who takes
possession or control of charitable funds | 16 |
| directly, indirectly, or through an
escrow shall submit a full | 17 |
| written
accounting to the charitable organization of all funds | 18 |
| it or its agents
collected on behalf of the charitable | 19 |
| organization during the 6 month
period ended June 30 of each | 20 |
| year, and file a copy of the accounting with
the Attorney | 21 |
| 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 | 23 |
| and shall be
filed by the following September 30 of each year; | 24 |
| however, within the time
prescribed, and for good cause, the | 25 |
| Attorney General may grant a 60 day
extension of the due date.
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| (d) Every professional fund raiser registered pursuant to | 27 |
| this Act shall
also file calendar year written financial | 28 |
| reports with the
Attorney General containing such information | 29 |
| as he may require, on forms
prescribed by him, as well as | 30 |
| separate financial reports for each separate
fund raising | 31 |
| campaign conducted. The written report , including all required | 32 |
| schedules, shall be filed under
oath on or before April 30 of | 33 |
| the following calendar year and be signed and
verified under | 34 |
| penalty of perjury within the time prescribed.
An annual report | 35 |
| 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 | 2 |
| re-registration. The late filing fee
shall be calculated at | 3 |
| $200 for each and every separate fundraising
campaign conducted | 4 |
| during the report year.
For good
cause, the Attorney General | 5 |
| may grant a 30 day extension of the due date, in
which case a | 6 |
| late filing fee shall not be imposed until the expiration of | 7 |
| the
extension period.
A copy of the report shall also be given | 8 |
| to the charitable organization by
the due date of filing. A | 9 |
| professional fund raiser shall only be required
to verify | 10 |
| information actually available to the professional fund | 11 |
| 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 | 13 |
| professional fund raiser who conducts, manages, or carries on a | 14 |
| fund raising campaign involving the collection or resale of any | 15 |
| automobiles, motorcycles, other motor vehicles, boats, yachts, | 16 |
| or other water craft collected in Illinois during the report | 17 |
| year, and the distribution of funds from the collection or | 18 |
| resale of such motor vehicles and water crafts to the | 19 |
| charitable organization, must include a schedule detailing the | 20 |
| following information for each motor vehicle and water craft | 21 |
| collected or resold: | 22 |
| (1) The vehicle or hull identification number. | 23 |
| (2) The gross resale amount of the vehicle. | 24 |
| (3) The total amount distributed to the charitable | 25 |
| organization from the collection or resale of the motor | 26 |
| vehicle or water craft. | 27 |
| (4) Any and all fees, compensation, or other | 28 |
| consideration paid to or retained by the professional fund | 29 |
| raiser from the collection or resale of the motor vehicle | 30 |
| or water craft. | 31 |
| (5) The identity of any other professional fund raiser | 32 |
| that participated in the collection or resale of the | 33 |
| vehicle and any fees, compensation, or other consideration | 34 |
| paid to or retained by that other professional fund raiser | 35 |
| from the collection or resale of the motor vehicle or water | 36 |
| craft.
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| The calendar year written financial report of every | 2 |
| professional fund raiser who conducts, manages, or carries on a | 3 |
| fund raising campaign involving the collection or resale of any | 4 |
| automobile, motorcycle, other motor vehicle, boat, yacht, or | 5 |
| other water craft collected in Illinois during the report year, | 6 |
| but who does not distribute funds from such collection or | 7 |
| resale to the charitable organization, must include a schedule | 8 |
| detailing the following information for each motor vehicle and | 9 |
| water craft collected or resold: | 10 |
| (1) The vehicle or hull identification number. | 11 |
| (2) Any and all fees, compensation, or other | 12 |
| consideration paid to or retained by the professional fund | 13 |
| raiser from the collection or resale of the motor vehicle | 14 |
| or water craft. | 15 |
| (3) The identity of the person or entity involved in | 16 |
| the fund raising campaign who does distribute funds from | 17 |
| the collection or resale of the vehicle to the charitable | 18 |
| organization.
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| (e) No person convicted of a felony may register as a | 20 |
| professional fund
raiser, and no person convicted of a | 21 |
| misdemeanor involving fiscal
wrongdoing, breach of fiduciary | 22 |
| duty or a violation of this Act may
register as a professional | 23 |
| fund raiser for a period of 5 years from the
date of the | 24 |
| conviction or the date of termination of the sentence or
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| probation, if any, whichever is later. This subsection shall | 26 |
| not apply to
charitable organizations that have as their | 27 |
| primary purpose the
rehabilitation of criminal offenders, the | 28 |
| reintegration of criminal
offenders into society, the | 29 |
| improvement of the criminal justice system or
the improvement | 30 |
| of conditions within penal institutions.
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| (f) A professional fund raiser may not cause or allow | 32 |
| independent
contractors to act on its behalf in soliciting | 33 |
| charitable contributions
other than registered professional | 34 |
| solicitors.
A professional fund raiser must maintain
the names, | 35 |
| addresses and social security numbers of all of its | 36 |
| professional
solicitors for a period of at least 2 years.
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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 | 3 |
| Class 4 felony. Any person who
fails after being given notice | 4 |
| of delinquency to file written financial
reports required by | 5 |
| 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 | 7 |
| 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, | 11 |
| salaries,
commissions or any compensation as a result or on | 12 |
| account of the
solicitations or fund raising campaigns, and at | 13 |
| the request of the Attorney
General or the charitable | 14 |
| organization, a court may order that such
be forfeited and paid | 15 |
| toward and used for a charitable purpose as the court
in its | 16 |
| discretion determines is appropriate or placed in the Illinois | 17 |
| 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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