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90_SB1739
760 ILCS 55/5 from Ch. 14, par. 55
760 ILCS 55/17 from Ch. 14, par. 67
Amends the Charitable Trust Act. Provides that a person
or trustee required to register or maintain registration
shall also submit, by sworn affidavit, a statement that he or
she has never been convicted of a felony. Provides that all
donated funds shall be deposited in Illinois regulated
financial institutions, if not invested in securities and
other earning bearing instruments or investments. Provides
that donations for a vulnerable person's benefit shall be
managed by trustees under this Act without personal benefit.
LRB9008388RCmbA
LRB9008388RCmbA
1 AN ACT to amend the Charitable Trust Act by changing
2 Sections 5 and 17.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Charitable Trust Act is amended by
6 changing Sections 5 and 17 as follows:
7 (760 ILCS 55/5) (from Ch. 14, par. 55)
8 Sec. 5. Registration of trustees.
9 (a) The Attorney General shall establish and maintain a
10 register of trustees subject to this Act and of the
11 particular trust or other relationship under which they hold
12 property for charitable purposes and, to that end, shall
13 conduct whatever investigation is necessary, and shall obtain
14 from public records, court officers, taxing authorities,
15 trustees and other sources, copies of instruments, reports
16 and records and whatever information is needed for the
17 establishment and maintenance of the register.
18 (b) A registration statement shall be signed and
19 verified under penalty of perjury by 2 officers of a
20 corporate charitable organization or by 2 trustees if not a
21 corporate organization. One signature will be accepted if
22 there is only one officer or one trustee. A registration fee
23 of $15 shall be paid with each initial registration. If a
24 person, trustee or organization fails to maintain a
25 registration of a trust or organization as required by this
26 Act, and its registration is cancelled as provided in this
27 Act, and if that trust or organization remains in existence
28 and by law is required to be registered, in order to
29 re-register, a new registration must be filed accompanied by
30 required financial reports, and in all instances where
31 re-registration is required, submitted, and allowed, the new
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1 re-registration materials must be filed, accompanied by a
2 re-registration fee of $200.
3 (c) If a person or trustee fails to register or maintain
4 registration of a trust or organization as provided in this
5 Section, the person or trustee is subject to injunction, to
6 removal, to account, and to appropriate other relief before a
7 court of competent jurisdiction exercising chancery
8 jurisdiction. In the event of such action, the court shall
9 impose, as an additional surcharge, a civil penalty of not
10 less that $500 nor more than $1,000 against any trustee or
11 other person who fails to register or to maintain a
12 registration required under this Act. The collected penalty
13 shall be used for charitable trust enforcement and for
14 providing charitable trust information to the public.
15 (d) Any person or trustee required to register or
16 maintain registration shall also submit, by sworn affidavit,
17 a statement that he or she has never been convicted of a
18 felony.
19 (Source: P.A. 90-469, eff. 8-17-97.)
20 (760 ILCS 55/17) (from Ch. 14, par. 67)
21 Sec. 17. Fiduciary duties of trustees.
22 (a) All donated funds shall be deposited in accounts of
23 Illinois regulated financial institutions, if not invested in
24 securities and other earning bearing instruments or
25 investments. Donation accounts for the benefit of
26 distressed, ill, band trips or similar vulnerable
27 individuals, groups, or families shall be managed by trustees
28 under this Act without personal benefit or use by the
29 trustee.
30 (b) Any trustee who with malice and without lawful
31 authority, in violation of the trust purposes or by
32 intentional breach of fiduciary duty, intentionally disburses
33 or causes charitable trust funds to be used for his personal
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1 benefit or personal use in an amount in excess of $1,000
2 within a 5 year period is guilty of a Class 2 felony and is
3 subject to punitive damages up to or equal to the amount
4 misused and is subject to a civil penalty of up to $50,000
5 for each intentional knowing violation.
6 (Source: P.A. 87-755.)