State of Illinois
90th General Assembly
Legislation

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[ Introduced ][ Engrossed ][ House Amendment 001 ]
[ Senate Amendment 001 ]

90_SB0537enr

      5 ILCS 340/2              from Ch. 15, par. 502
      5 ILCS 340/3              from Ch. 15, par. 503
          Amends the  Voluntary  Payroll  Deduction  Act  of  1983.
      Provides  that  the forms on which an employee indicates that
      the organization is one for which  the  employee  intends  to
      authorize withholding shall require the name, social security
      number,  and employing State agency and that the signed forms
      and signatures are  subject  to  verification  by  the  State
      Comptroller.  Requires  a "qualified organization" to certify
      that it maintains a  year-round  office,  phone  number,  and
      person  responsible for the operations of the organization in
      Illinois  and  provide  an  annual  audit,  Internal  Revenue
      Service Form 990 covering the same period  as  the  submitted
      audit, and an annual report of the organization's activities,
      current  to  within  12  months  of the organization's fiscal
      year. Requires each qualified organization to submit  to  the
      State Comptroller between January 1 and March 1 of each year,
      a  statement  that the organization is in compliance with the
      qualified organization requirements. Provides that failure to
      submit the statement shall result in  the  State  Comptroller
      excluding the organization from the next solicitation period.
      Effective immediately.
                                                     LRB9001407DNcc
SB537 Enrolled                                 LRB9001407DNcc
 1        AN  ACT  to  amend the Voluntary Payroll Deduction Act by
 2    changing Sections 2 and 3.
 3        Be it enacted by the People of  the  State  of  Illinois,
 4    represented in the General Assembly:
 5        Section  5.  The Voluntary Payroll Deductions Act of 1983
 6    is amended by changing Sections 2 and 3 as follows:
 7        (5 ILCS 340/2) (from Ch. 15, par. 502)
 8        Sec. 2. Public policy. It is the public  policy  of  this
 9    State  and the objective of this Act to lessen the burdens of
10    State government and of local communities in meeting needs of
11    human health and welfare; to  provide  a  convenient  channel
12    through   which State public servants may contribute to these
13    efforts;  to  minimize  or  eliminate disruption of the State
14    workplace and costs to State taxpayers that such fund-raising
15    may entail; to serve needs of human health and  welfare;  and
16    to   ensure   that   recipient   organizations  agencies  are
17    responsible in the uses of the moneys so raised.
18    (Source: P.A. 83-843.)
19        (5 ILCS 340/3) (from Ch. 15, par. 503)
20        Sec. 3. Definitions. As  used  in  this  Act  unless  the
21    context otherwise requires:
22        (a)  "Employee" means any regular officer or employee who
23    receives  salary  or  wages for personal services rendered to
24    the State of Illinois.
25        (b)  "Qualified  organization"  means   an   organization
26    representing   one   or   more   benefiting  agencies,  which
27    organization  is  designated  by  the  State  Comptroller  as
28    qualified to receive payroll deductions under this Act.    An
29    organization   desiring  to  be  designated  as  a  qualified
30    organization shall:
SB537 Enrolled             -2-                 LRB9001407DNcc
 1             (1)  Submit written designations on  forms  approved
 2        by  the  State Comptroller by 4,000 or more employees, in
 3        which such employees indicate that  the  organization  is
 4        one   for   which   the  employee  intends  to  authorize
 5        withholding. The forms shall  require  the  name,  social
 6        security  number,  and  employing  State  agency for each
 7        employee.  Upon notification by the Comptroller that such
 8        forms have been approved, the organization shall,  within
 9        30  days,  notify in writing the Governor or his designee
10        of  its  intention  to  obtain  the  required  number  of
11        designations.  Such organization  shall  have  12  months
12        from that date, to obtain the necessary designations. The
13        signed forms and signatures on the forms shall be subject
14        to verification by the State Comptroller;
15             (2)  Certify  that  all  benefiting agencies are tax
16        exempt under Section 501 (c)(3) of the  Internal  Revenue
17        Code;
18             (3)  Certify  that  all  benefiting  agencies are in
19        compliance with the Illinois Human Rights Act;
20             (4)  Certify that all  benefiting  agencies  are  in
21        compliance   with   the  Charitable  Trust  Act  and  the
22        Solicitation for Charity Act;
23             (5)  Certify that all benefiting  agencies  actively
24        conduct  health  or welfare programs and provide services
25        to individuals directed at one or more of  the  following
26        common human needs within a community: service, research,
27        and education in the health fields; family and child care
28        services;  protective  services  for children and adults;
29        services for children and adults in foster care; services
30        related to the management and maintenance  of  the  home;
31        day  care  services  for adults; transportation services;
32        information, referral and counseling  services;  services
33        to  eliminate illiteracy; the preparation and delivery of
34        meals; adoption  services;  emergency  shelter  care  and
SB537 Enrolled             -3-                 LRB9001407DNcc
 1        relief   services;   disaster   relief  services;  safety
 2        services;   neighborhood   and   community   organization
 3        services;  recreation  services;  social  adjustment  and
 4        rehabilitation services; health support  services;  or  a
 5        combination of such services designed to meet the special
 6        needs of specific groups, such as children and youth, the
 7        ill  and infirm, and the physically handicapped; and that
 8        all such benefiting agencies provide the above  described
 9        services   to  individuals  and  their  families  in  the
10        community and surrounding area in which the  organization
11        conducts its fund drive, or that such benefiting agencies
12        provide  relief to victims of natural disasters and other
13        emergencies on a where and as needed basis;
14             (6)  Certify that the organization has disclosed the
15        percentage of the organization's total collected receipts
16        from employees that are  distributed  to  the  benefiting
17        agencies  and  the percentage of the organization's total
18        collected receipts from employees that are  expended  for
19        fund-raising and overhead costs.  These percentages shall
20        be  the same percentage figures annually disclosed by the
21        organization to the  Attorney  General.   The  disclosure
22        shall  be made to all solicited employees and shall be in
23        the form of a factual statement on all petitions  and  in
24        the campaign's employee brochure;
25             (7)  Certify  that all benefiting agencies receiving
26        funds which the employee has requested or designated  for
27        distribution  to  a  particular community and surrounding
28        area  use  a  majority  of  such  funds  distributed  for
29        services in the actual  provision  of  services  in  that
30        community and surrounding area;
31             (8)  Certify   that   neither   it  nor  its  member
32        organizations   will   solicit   State   employees    for
33        contributions at their workplace, except pursuant to this
34        Act and the rules promulgated thereunder.  Each qualified
SB537 Enrolled             -4-                 LRB9001407DNcc
 1        organization,  and  each  participating  United  Fund, is
 2        encouraged to cooperate with  all  others  and  with  all
 3        State  agencies  and  educational  institutions  so as to
 4        simplify  procedures,  to  resolve  differences  and   to
 5        minimize costs; and
 6             (9)  Certify  that  it  will  pay  its  share of the
 7        campaign costs and will comply with the Code of  Campaign
 8        Conduct  as  approved  by the Governor or other agency as
 9        designated by the Governor; and.
10             (10)  Certify that it maintains a year-round office,
11        the telephone number,  and  person  responsible  for  the
12        operations   of   the   organization  in  Illinois.  That
13        information shall be provided to the State Comptroller at
14        the time the organization is seeking participation  under
15        this Act.
16        Each  qualified  organization  shall  submit to the State
17    Comptroller between January 1 and March 1  of  each  year,  a
18    statement  that the organization is in compliance with all of
19    the requirements set forth in paragraphs  (2)  through  (10).
20    The  State  Comptroller  shall  exclude any organization that
21    fails to submit the  statement  from  the  next  solicitation
22    period.
23        In   order   to   be   designated   as  a  qualified,  an
24    organization, the organization shall have existed at least  2
25    years  prior  to  submitting  the  written  designation forms
26    required in paragraph (1) and  shall  certify  to  the  State
27    Comptroller   that   such  organization  has  been  providing
28    services described in  paragraph  (5)  in  Illinois.  If  the
29    organization  seeking  designation  represents  more than one
30    benefiting agency, it need not have existed for 2  years  but
31    shall  certify  to  the  State  Comptroller  that each of its
32    benefiting agencies has existed for at least 2 years prior to
33    submitting  the  written  designation   forms   required   in
34    paragraph  (1)  and  that  each  has  been providing services
SB537 Enrolled             -5-                 LRB9001407DNcc
 1    described in paragraph (5) in Illinois.
 2        Organizations which have met the requirements of this Act
 3    shall  be  permitted  to  participate  in   the   State   and
 4    Universities  Combined  Appeal  as of January 1st of the year
 5    immediately following their approval by the Comptroller.
 6        Where the certifications described in paragraphs 2, 3, 4,
 7    5, 6, 7, 8, and 9, and 10 above are made by  an  organization
 8    representing  more  than  one benefiting agency they shall be
 9    based  upon  the  knowledge  and  belief  of  such  qualified
10    organization. Any qualified  organization  shall  immediately
11    notify  the  State  Comptroller  in  writing if the qualified
12    organization receives information or otherwise believes  that
13    a  benefiting  agency  is  no  longer  in compliance with the
14    certification of the qualified  organization.    A  qualified
15    organization  representing  more  than  one benefiting agency
16    shall thereafter withhold and refrain  from  distributing  to
17    such  benefiting agency those funds received pursuant to this
18    Act until the benefiting agency is again in  compliance  with
19    the  qualified  organization's  certification.  The qualified
20    organization shall immediately notify the  State  Comptroller
21    of  the  benefiting  agency's  resumed  compliance  with  the
22    certification,   based   upon  the  qualified  organization's
23    knowledge and belief, and shall pay over  to  the  benefiting
24    agency those funds previously withheld.
25        The  Comptroller  shall, by February 1st of each year, so
26    notify any qualified organization that failed to  receive  at
27    least  500  payroll  deduction  pledges deductions during the
28    solicitation period ending May 1, 1990, and thereafter during
29    each immediately preceding solicitation period as  set  forth
30    in  Section  6.   The  notification shall give such qualified
31    organization until March 1st to provide the Comptroller  with
32    documentation  that  the  500  deduction requirement has been
33    met.  On the basis of all the documentation, the  Comptroller
34    shall,  by March 15th of each year, submit to the Governor or
SB537 Enrolled             -6-                 LRB9001407DNcc
 1    his designee, or such other agency as may  be  determined  by
 2    the  Governor, a list of all organizations which have met the
 3    500 payroll deduction requirement.  Only those  organizations
 4    which  have  met  such  requirements,  as  well  as the other
 5    requirements of this Section, shall be permitted  to  solicit
 6    State   employees   for   voluntary   contributions  and  the
 7    Comptroller  shall  discontinue  withholding  for  any   such
 8    organization which fails to meet these requirements.
 9        (c)  "United  Fund" means the organization conducting the
10    single, annual,  consolidated  effort  to  secure  funds  for
11    distribution  to  agencies  engaged  in charitable and public
12    health, welfare and  services  purposes,  which  is  commonly
13    known as the United Fund, or the organization which serves in
14    place of the United Fund organization in communities where an
15    organization known as the United Fund is not organized.
16        (d)  "State  and  Universities Employees Combined Appeal"
17    (SECA), otherwise known as "SECA", means  the  State-directed
18    joint  effort of all of the qualified organizations, together
19    with the United Funds,  for  the  solicitation  of  voluntary
20    contributions from State and University employees.
21        In  order  for  a United Fund to participate in the State
22    and Universities Employees Combined Appeal, it  shall  comply
23    with the provisions of Section 3, paragraph (9).
24    (Source: P.A. 87-1053; 88-243.)
25        Section  99.  Effective date.  This Act takes effect upon
26    becoming law.

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