State of Illinois
90th General Assembly
Legislation

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[ Introduced ][ Engrossed ][ Senate Amendment 001 ]

90_HB1211enr

      225 ILCS 460/3            from Ch. 23, par. 5103
      760 ILCS 55/4             from Ch. 14, par. 54
          Amends  the  Solicitation  for  Charity   Act   and   the
      Charitable  Trust  Act.  Exempts parent-teacher organizations
      and other parent-sponsored organizations  that  are  operated
      for  the  purpose  of  providing  support  to  school-related
      activities  for  students from registering and filing reports
      with the Attorney General under the Solicitation for  Charity
      Act.   Also  provides  that the Charitable Trust Act (and its
      registration and reporting requirements) do not apply to such
      organizations.  Effective immediately.
                                                     LRB9004043THpk
HB1211 Enrolled                                LRB9004043THpk
 1        AN  ACT  relating   to   charitable   organizations   and
 2    activities, amending named Acts.
 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:
 5        Section 5.  The Solicitation for Charity Act  is  amended
 6    by  changing Sections 2, 3, 4, 5, 6, 7, 17, and 21 and adding
 7    Sections 22 and 23 as follows:
 8        (225 ILCS 460/2) (from Ch. 23, par. 5102)
 9        Sec. 2. (a)  Every  charitable  organization,  except  as
10    otherwise  provided  in Section 3 of this Act, which solicits
11    or intends to solicit  contributions  from  persons  in  this
12    State  or  which  is  located  in  this  State,  by any means
13    whatsoever shall, prior to any solicitation,  file  with  the
14    Attorney General upon forms prescribed by him, a registration
15    statement,  accompanied  by  a registration fee of $15, which
16    statement shall include the following certified information:
17             1.  The name of the organization  and  the  name  or
18        names under which it intends to solicit contributions.
19             2.    The  names  and  addresses  of  the  officers,
20        directors, trustees, and chief executive officer  of  the
21        organization.
22             3.   The  addresses  of  the  organization  and  the
23        addresses   of   any   offices  in  this  State.  If  the
24        organization does not maintain a  principal  office,  the
25        name  and  address  of  the  person having custody of its
26        financial records.
27             4.  Where and  when  the  organization  was  legally
28        established,  the  form  of  its organization and its tax
29        exempt status.
30             5.  The  purpose  for  which  the  organization   is
31        organized  and  the  purpose  or  purposes  for which the
HB1211 Enrolled            -2-                 LRB9004043THpk
 1        contributions to be solicited will be used.
 2             6.  The  date  on  which  the  fiscal  year  of  the
 3        organization ends.
 4             7.  Whether the organization is  authorized  by  any
 5        other governmental authority to solicit contributions and
 6        whether it is or has ever been enjoined by any court from
 7        soliciting contributions.
 8             8.  The names and addresses of any professional fund
 9        raisers who are acting or have agreed to act on behalf of
10        the organization.
11             9.  Methods by which solicitation will be made.
12             10.  Copies    of   contracts   between   charitable
13        organizations and professional fund raisers  relating  to
14        financial  compensation  or  profit  to be derived by the
15        professional fund raisers. Where  any  such  contract  is
16        executed  after  filing of registration statement, a copy
17        thereof shall be filed within 10  days  of  the  date  of
18        execution.
19             11.  Board,   group,   or  individual  having  final
20        discretion  as   to   the   distribution   and   use   of
21        contributions received.
22        (b)  The  registration  statement  shall be signed by the
23    president or other authorized officer and  the  chief  fiscal
24    officer of the organization.
25        (c)  Such  registration  shall remain in effect unless it
26    is either cancelled as provided in this Act or  withdrawn  by
27    the organization.
28        (d)  Every   registered  organization  shall  notify  the
29    Attorney  General  within  10  days  of  any  change  in  the
30    information required to be  furnished  by  such  organization
31    under  paragraphs  1  through  11  of subdivision (a) of this
32    Section.
33        (e)  In no event shall a  registration  of  a  charitable
34    organization  continue,  or be continued, in effect after the
HB1211 Enrolled            -3-                 LRB9004043THpk
 1    date such organization should have filed, but failed to file,
 2    an annual report  in  accordance  with  the  requirements  of
 3    Section  4  of  this  Act, and such organization shall not be
 4    eligible to file a new registration until it shall have filed
 5    the required annual report with the Attorney General. If such
 6    report is subsequently filed and  accepted  by  the  Attorney
 7    General  such  organization may file a new registration. If a
 8    person, trustee, or organization fails to timely register  or
 9    maintain  a  registration  of  a  trust  or  organization  as
10    required  by  this Act or if its registration is cancelled as
11    provided in this Act,  and  if  that  trust  or  organization
12    remains in existence and by law is required to be registered,
13    in order to re-register or file a late registration a current
14    registration statement must be filed accompanied by financial
15    reports  in  the form required herein for all past years.  In
16    all instances where re-registration and late registration are
17    allowed,  the  new  registration  materials  must  be  filed,
18    accompanied by a penalty registration fee of $200.
19        (f)  Subject to reasonable rules and regulations  adopted
20    by   the   Attorney   General,   the  register,  registration
21    statements,    annual    reports,    financial    statements,
22    professional fund raisers' contracts, bonds, applications for
23    registration  and  re-registration,   and   other   documents
24    required  to be filed with the Attorney General shall be open
25    to public inspection.
26        Every person subject to this Act shall maintain  accurate
27    and detailed books and records at the principal office of the
28    organization  to provide the information required herein. All
29    such books and records shall be open  to  inspection  at  all
30    reasonable   times  by  the  Attorney  General  or  his  duly
31    authorized representative.
32        (g)  Where any  local,  county  or  area  division  of  a
33    charitable  organization  is  supervised  and controlled by a
34    superior or parent organization, incorporated,  qualified  to
HB1211 Enrolled            -4-                 LRB9004043THpk
 1    do business, or doing business within this State, such local,
 2    county  or  area  division  shall not be required to register
 3    under this Section if the  superior  or  parent  organization
 4    files a registration statement on behalf of the local, county
 5    or  area  division  in  addition  to  or  as  part of its own
 6    registration statement. Where a  registration  statement  has
 7    been  filed  by a superior or parent organization as provided
 8    in Section 2(g) of this Act, it shall file the annual  report
 9    required  under Section 4 of this Act on behalf of the local,
10    county or area division in addition to or as part of its  own
11    report, but the accounting information required under Section
12    4  of  this  Act  shall  be  set  forth separately and not in
13    consolidated form with respect to every local, county or area
14    division which raises or expends more than $4,000.
15        (h)  The Attorney General may make rules of procedure and
16    regulations necessary for the  administration  of  this  Act.
17    Copies  of all such rules of procedure and regulations and of
18    all changes therein, duly certified by the Attorney  General,
19    shall be filed in the office of the Secretary of State.
20        (i)  If  a  person,  organization,  or  trustee  fails to
21    register  or  if  maintain  registration  of   a   trust   or
22    organization  is  cancelled  as provided in this Act Section,
23    the person, organization or trustee is subject to injunction,
24    to removal, to  account,  and  to  appropriate  other  relief
25    before the circuit court exercising chancery jurisdiction. In
26    addition  to  any  other  relief  granted under this Act, the
27    court shall impose a civil penalty of not less than $500  nor
28    more   than   $1,000   against   each   and   every  trustee,
29    organization, and person who fails to register or  who  fails
30    to  maintain  a  registration  required  under this Act.  The
31    collected penalty funds shall be used  for  charitable  trust
32    enforcement and for providing charitable trust information to
33    the public.
34    (Source: P.A. 87-755.)
HB1211 Enrolled            -5-                 LRB9004043THpk
 1        (225 ILCS 460/3) (from Ch. 23, par. 5103)
 2        Sec.  3.  (a)  Upon  initial  filing  of  a  registration
 3    statement  pursuant to Section 2 of this Act and notification
 4    by  the  Attorney  General  of  his  determination  that  the
 5    organizational purposes or circumstances  specified  in  this
 6    paragraph for exemption are actual and genuine, the following
 7    entities   shall   be  exempt  from  all  the  report  filing
 8    provisions and requirements  of  this  Act,  except  for  the
 9    requirements set forth in Section 2 of this Act:
10             1.    A   corporation   sole   or   other  religious
11        corporation,  trust  or  organization   incorporated   or
12        established  for religious purposes, nor to any agency or
13        organization incorporated or established for  charitable,
14        hospital   or   educational   purposes   and  engaged  in
15        effectuating one  or  more  of  such  purposes,  that  is
16        affiliated with, operated by, or supervised or controlled
17        by  a  corporation  sole  or other religious corporation,
18        trust or organization  incorporated  or  established  for
19        religious  purposes,  nor  to other religious agencies or
20        organizations which serve religion by the preservation of
21        religious  rights  and  freedom   from   persecution   or
22        prejudice  or  by fostering religion, including the moral
23        and ethical aspects of a particular religious faith.
24             2.  Any  charitable  organization  which  does   not
25        intend  to  solicit  and  receive  and  does not actually
26        receive contributions in excess of $15,000 $10,000 during
27        any 12 month period  ending  December  31  of  any  year,
28        provided all of its fund raising functions are carried on
29        by persons who are unpaid for such services.  However, if
30        the  gross  contributions  received  by  such  charitable
31        organization  during  any 12 month period ending December
32        31 of any year shall be in excess of $15,000 $10,000,  it
33        shall  file  reports  as  required under this Act and the
34        provisions of this Act shall apply.
HB1211 Enrolled            -6-                 LRB9004043THpk
 1        (b)  The following  persons  shall  not  be  required  to
 2    register with the Attorney General:
 3             1.  The  University  of  Illinois, Southern Illinois
 4        University, Eastern Illinois University,  Illinois  State
 5        Normal  University, Northern Illinois University, Western
 6        Illinois University, all  educational  institutions  that
 7        are  recognized  by  the State Board of Education or that
 8        are accredited by a regional accrediting  association  or
 9        by   an   organization   affiliated   with  the  National
10        Commission  on  Accrediting,  any  foundation  having  an
11        established  identity  with  any  of  the  aforementioned
12        educational   institutions,   any    other    educational
13        institution  confining  its solicitation of contributions
14        to its student body, alumni, faculty  and  trustees,  and
15        their  families,  or a library established under the laws
16        of this State, provided that the annual financial  report
17        of  such  institution  or library shall be filed with the
18        State  Board  of  Education,  Governor,  Illinois   State
19        Library,   County  Library  Board  or  County  Board,  as
20        provided by law.
21             2.  Fraternal,   patriotic,   social,   educational,
22        alumni  organizations  and  historical   societies   when
23        solicitation   of  contributions  is  confined  to  their
24        membership. This  exemption  shall  be  extended  to  any
25        subsidiary  of a parent or superior organization exempted
26        by Sub-paragraph 2 of Paragraph (b) of Section 3 of  this
27        Act where such solicitation is confined to the membership
28        of the subsidiary, parent or superior organization.
29             3.  Persons  requesting  any  contributions  for the
30        relief or benefit of any individual, specified by name at
31        the  time  of  the  solicitation,  if  the  contributions
32        collected are turned over to the named beneficiary, first
33        deducting reasonable expenses for costs of  banquets,  or
34        social  gatherings,  if  any,  provided  all fund raising
HB1211 Enrolled            -7-                 LRB9004043THpk
 1        functions are carried  on  by  persons  who  are  unpaid,
 2        directly or indirectly, for such services.
 3             4.  Any   bona   fide  union,  bona  fide  political
 4        organization or bona  fide  political  action  committee,
 5        which does not solicit funds for a charitable purpose.
 6             5.  Any   charitable   organization   receiving   an
 7        allocation from an incorporated community chest or united
 8        fund,  provided  such chest or fund is complying with the
 9        provisions of  this  Act  relating  to  registration  and
10        filing  of  annual reports with the Attorney General, and
11        provided such organization does not actually receive,  in
12        addition  to  such allocation, contributions in excess of
13        $4,000 during any 12 month period ending June 30th of any
14        year, and provided further  that  all  the  fund  raising
15        functions  of such organization are carried on by persons
16        who are unpaid for such services. However, if  the  gross
17        contributions other than such allocation received by such
18        charitable organization during any 12 month period ending
19        June  30th  of  any year shall be in excess of $4,000, it
20        shall within  30  days  after  the  date  it  shall  have
21        received  such contributions in excess of $4,000 register
22        with the Attorney General as required by Section 2.
23             6.  A bona fide organization of  volunteer  firemen,
24        or   a   bona   fide   auxiliary  or  affiliate  of  such
25        organization, provided all its  fund  raising  activities
26        are  carried  on by members of such an organization or an
27        affiliate   thereof   and   such   members   receive   no
28        compensation, directly or indirectly, therefor.
29             7.  Any charitable organization operating a  nursery
30        for infants awaiting adoption providing that all its fund
31        raising  activities  are carried on by members of such an
32        organization or an affiliate  thereof  and  such  members
33        receive no compensation, directly or indirectly therefor.
34             8.  Any   corporation  established  by  the  Federal
HB1211 Enrolled            -8-                 LRB9004043THpk
 1        Congress that is required by federal law to submit annual
 2        reports of its activities to Congress containing itemized
 3        accounts of all receipts  and  expenditures  after  being
 4        duly audited.
 5             9.  Any  boys'  club  which  is  affiliated with the
 6        Boys'  Club  of  America,  a  corporation  chartered   by
 7        Congress;  provided,  however,  that  such  an  affiliate
 8        properly  files the reports required by the Boys' Club of
 9        America and that the Boys' Club of America files with the
10        Government of the United States the reports  required  by
11        its federal charter.
12             10.  Any    veterans   organization   chartered   or
13        incorporated  under  federal   law   and   any   veterans
14        organization  which is affiliated with, and recognized in
15        the   bylaws   of,   a   congressionally   chartered   or
16        incorporated veterans  organization;  provided,  however,
17        that the affiliate properly files the reports required by
18        the  congressionally  chartered  or incorporated veterans
19        organization,  that  the  congressionally  chartered   or
20        incorporated   veterans   organization   files  with  the
21        government of the United States the reports  required  by
22        its  federal  charter,  and that copies of such federally
23        required reports are filed with the Attorney General.
24             11.  Any   parent-teacher   organization   that   is
25        controlled by teachers and parents of children  attending
26        a  particular  public  or  private  school  for which the
27        organization is named and solicits contributions for  the
28        benefit of that particular school; provided that:
29                  (i)  the  school  is  specified  by name at the
30             time the solicitation is made;
31                  (ii)  all of the contributions are turned  over
32             to  the  school,  after  first  deducting reasonable
33             expenses   for   fundraising   and    parent-teacher
34             activities;
HB1211 Enrolled            -9-                 LRB9004043THpk
 1                  (iii)  all fundraising functions are carried on
 2             by  persons  who  are  not  paid, either directly or
 3             indirectly, for their fundraising services;
 4                  (iv)  the total contributions, less  reasonable
 5             fundraising  expenses,  do not exceed $50,000 in any
 6             calendar year;
 7                  (v)  the organization provides  the  school  at
 8             least  annually  with  a  complete accounting of all
 9             contributions received; and
10                  (vi)  the  governing  board   of   the   school
11             annually  certifies to the Attorney General that the
12             parent-teacher organization has provided the  school
13             with a full accounting and that the organization has
14             provided benefits and contributions to the school.
15    (Source: P.A. 87-755.)
16        (225 ILCS 460/4) (from Ch. 23, par. 5104)
17        Sec.  4.  (a)  Every  charitable  organization registered
18    pursuant to Section 2 of this Act which shall receive in  any
19    12  month  period  ending  upon  its  established  fiscal  or
20    calendar  year  contributions in excess of $150,000 $100,000,
21    and  every  charitable  organization   whose   fund   raising
22    functions  are  not  carried  on solely by staff employees or
23    persons who are unpaid for such services, if the organization
24    shall  receive  in  any  12  month  period  ending  upon  its
25    established fiscal or calendar year contributions  in  excess
26    of  $25,000,  shall  file  a written report with the Attorney
27    General upon forms prescribed by him, on or before June 30 of
28    each year if its books are  kept  on  a  calendar  basis,  or
29    within  6  months  after  the close of its fiscal year if its
30    books are kept on a fiscal year basis, which  written  report
31    shall  include a financial statement covering the immediately
32    preceding 12  month  period  of  operation.   Such  financial
33    statement  shall  include  a  balance  sheet and statement of
HB1211 Enrolled            -10-                LRB9004043THpk
 1    income and  expense,  and  shall  be  consistent  with  forms
 2    furnished  by  the Attorney General clearly setting forth the
 3    following: gross receipts and gross income from all  sources,
 4    broken down into total receipts and income from each separate
 5    solicitation  project or source; cost of administration; cost
 6    of solicitation; cost  of  programs  designed  to  inform  or
 7    educate  the  public;  funds or properties transferred out of
 8    this State, with explanation as  to  recipient  and  purpose;
 9    cost of fundraising; compensation paid to trustees; and total
10    net  amount  disbursed  or  dedicated for each major purpose,
11    charitable or otherwise.  Such report shall  also  include  a
12    statement  of  any  changes in the information required to be
13    contained in the registration form filed on  behalf  of  such
14    organization.  The report shall be signed by the president or
15    other  authorized officer and the chief fiscal officer of the
16    organization who shall certify that  the  statements  therein
17    are  true  and  correct  to  the best of their knowledge, and
18    shall be accompanied by an opinion signed by  an  independent
19    certified  public  accountant  that  the  financial statement
20    therein fairly represents the  financial  operations  of  the
21    organization in sufficient detail to permit public evaluation
22    of  its  operations.  Said  opinion may be relied upon by the
23    Attorney General.
24        (b)  Every organization registered pursuant to Section  2
25    of this Act which shall receive in any 12 month period ending
26    upon  its  established  fiscal  or  calendar year of any year
27    contributions in excess of $15,000,  but  not  in  excess  of
28    $150,000,  if  it  is  not  required to submit a report under
29    subsection (a) of this Section, $100,000  and  all  of  whose
30    fund  raising  functions  are  carried  on by persons who are
31    unpaid for such services shall file a written report with the
32    Attorney General upon forms prescribed by him, on  or  before
33    June  30  of  each  year  if its books are kept on a calendar
34    basis, or within 6 months after the close of its fiscal  year
HB1211 Enrolled            -11-                LRB9004043THpk
 1    if  its  books  are  kept on a fiscal year basis, which shall
 2    include  a  financial  statement  covering  the   immediately
 3    preceding 12-month period of operation limited to a statement
 4    of such organization's gross receipts from contributions, the
 5    gross  amount  expended  for charitable educational programs,
 6    other  charitable  programs,  management  expense,  and  fund
 7    raising expenses including a separate statement of  the  cost
 8    of  any goods, services or admissions supplied as part of its
 9    solicitations, and the disposition of the net  proceeds  from
10    contributions,   including  compensation  paid  to  trustees,
11    consistent with forms  furnished  by  the  Attorney  General.
12    Such  report shall also include a statement of any changes in
13    the information required to be contained in the  registration
14    form  filed  on behalf of such organization. The report shall
15    be signed by the president or other  authorized  officer  and
16    the  chief  fiscal  officer  of  the  organization  who shall
17    certify that the statements therein are true and  correct  to
18    the best of their knowledge.
19        (c)  For  any fiscal or calendar year of any organization
20    registered pursuant to Section 2 of this Act  in  which  such
21    organization   would   have  been  exempt  from  registration
22    pursuant to Section 3 of this Act  if  it  had  not  been  so
23    registered,  or  in  which  it  did  not  solicit  or receive
24    contributions, such organization shall  file,  on  or  before
25    June  30  of  each  year  if its books are kept on a calendar
26    basis, or within 6 months after the close of its fiscal  year
27    if  its books are kept on a fiscal year basis, instead of the
28    reports required by subdivisions (a) or (b) of this  Section,
29    a  statement  certified under penalty of perjury by report in
30    the form of an affidavit of its president  and  chief  fiscal
31    officer  stating the exemption and the facts upon which it is
32    based or that such organization did not  solicit  or  receive
33    contributions  in  such fiscal year.  The statement affidavit
34    shall  also  include  a  statement  of  any  changes  in  the
HB1211 Enrolled            -12-                LRB9004043THpk
 1    information required to be contained in the registration form
 2    filed on behalf of such organization.
 3        (d)  As an alternative means of satisfying the duties and
 4    obligations  otherwise  imposed  by  this  Section  Act,  any
 5    veterans organization chartered or incorporated under federal
 6    law and any veterans organization which is  affiliated  with,
 7    and  recognized in the bylaws of, a congressionally chartered
 8    or incorporated organization may,  at  its  option,  annually
 9    file with the Attorney General the following documents:
10             (1)  A  copy  of  its  Form  990,  as filed with the
11        Internal Revenue Service.
12             (2)  Copies of any reports required to be  filed  by
13        the  affiliate  with  the  congressionally  chartered  or
14        incorporated  veterans organization, as well as copies of
15        any reports filed by  the  congressionally  chartered  or
16        incorporated veterans organization with the government of
17        the United States pursuant to federal law.
18             (3)  Copies  of  all  contracts  entered into by the
19        congressionally  chartered   or   incorporated   veterans
20        organization  or  its  affiliate  for purposes of raising
21        funds in this State, such copies to  be  filed  with  the
22        Attorney  General no more than 30 days after execution of
23        the contracts.
24        (e)  As an alternative means of  satisfying  all  of  the
25    duties and obligations otherwise imposed by this Section Act,
26    any   person,  pursuant  to  a  contract  with  a  charitable
27    organization,  a  veterans  organization  or   an   affiliate
28    described  or  referred  to  in subsection (d), who receives,
29    collects,  holds  or  transports  as   the   agent   of   the
30    organization  or affiliate for purposes of resale any used or
31    second hand personal property, including but not  limited  to
32    household   goods,  furniture  or  clothing  donated  to  the
33    organization or affiliate may, at its option,  annually  file
34    with   the   Attorney   General   the   following  documents,
HB1211 Enrolled            -13-                LRB9004043THpk
 1    accompanied by an annual filing fee of $15:
 2             (1)  A notarized  report  including  the  number  of
 3        donations  of personal property it has received on behalf
 4        of the charitable organization, veterans organization  or
 5        affiliate  during  the  proceeding year.  For purposes of
 6        this report, the number of donations of personal property
 7        shall refer to  the  number  of  stops  or  pickups  made
 8        regardless  of  the number of items received at each stop
 9        or pickup.  The report  may  cover  the  person's  fiscal
10        year,  in  which case it shall be filed with the Attorney
11        General no later than 90 days after  the  close  of  that
12        fiscal year.
13             (2)  All contracts with the charitable organization,
14        veterans organization or affiliate under which the person
15        has acted as an agent for the purposes listed above.
16             (3)  All contracts by which the person agreed to pay
17        the  charitable  organization,  veterans  organization or
18        affiliate a fixed amount for, or a  fixed  percentage  of
19        the  value  of,  each  donation  of  used  or second hand
20        personal property.  Copies of all such contracts shall be
21        filed no later than 30 days after they are executed.
22        (f)  The Attorney General may seek appropriate  equitable
23    relief  from  a  court  or,  in  his  discretion,  cancel the
24    registration of any organization which fails to  comply  with
25    subdivision  (a),  (b) or (c) of this Section within the time
26    therein prescribed,  or  fails  to  furnish  such  additional
27    information  as  is  requested by the Attorney General within
28    the required time; except that the time may  be  extended  by
29    the  Attorney  General  for  a period not to exceed 60 days 3
30    months upon a timely  written  request  and  for  good  cause
31    stated.  Unless otherwise stated herein, the Attorney General
32    shall,  by  rule,  set  forth the standards used to determine
33    whether a registration shall be cancelled  as  authorized  by
34    this subsection.  Such standards shall be stated as precisely
HB1211 Enrolled            -14-                LRB9004043THpk
 1    and  clearly  as  practicable,  to inform fully those persons
 2    affected.  Notice of such cancellation shall be mailed to the
 3    registrant  at  least  15  days  before  the  effective  date
 4    thereof.
 5        (g)  The Attorney General in his discretion may, pursuant
 6    to rule, accept executed copies of federal  Internal  Revenue
 7    returns  and  reports  as  a  portion of the foregoing annual
 8    reporting in the interest  of  minimizing  paperwork,  except
 9    there  shall  be  no substitute for the independent certified
10    public accountant CPA audit opinion required by this Act.
11        (h)  The   Attorney   General   after    canceling    the
12    registration  of  any  trust  or  organization which fails to
13    comply with subsections (a),  (b)  or  (c)  of  this  Section
14    within  the time therein prescribed may by court proceedings,
15    in addition to all other relief, seek to collect  the  assets
16    and   distribute   such  under  court  supervision  to  other
17    charitable purposes.
18        (i)  Every trustee, person, and organization required  to
19    file an annual report shall pay a filing fee of $15 with each
20    annual financial report filed pursuant to this Section.  If a
21    proper and complete annual report is not timely filed, a late
22    filing fee of an additional $100 is imposed and shall be paid
23    as  a  condition  of filing a late report.  Reports submitted
24    without the proper fee shall  not  be  accepted  for  filing.
25    Payment of the late filing fee and acceptance by the Attorney
26    General  shall  both  be  conditions of filing a late report.
27    All late filing fees shall  be  used  to  provide  charitable
28    trust  enforcement  and  dissemination  of  charitable  trust
29    information  to  the  public  and  shall  be  maintained in a
30    separate fund for such purpose known as the Illinois  Charity
31    Bureau Fund.
32        (j)  There  is  created hereby a separate special fund in
33    the State Treasury to be known as the Illinois Charity Bureau
34    Fund.  That Fund shall be under the control of  the  Attorney
HB1211 Enrolled            -15-                LRB9004043THpk
 1    General, and the funds, fees, and penalties deposited therein
 2    shall  be  used  by  the  Attorney  General  to  enforce  the
 3    provisions   of  this  Act  and  to  gather  and  disseminate
 4    information about charitable trustees  and  organizations  to
 5    the public.
 6    (Source: P.A. 89-626, eff. 8-9-96.)
 7        (225 ILCS 460/5) (from Ch. 23, par. 5105)
 8        Sec.  5.  Any  charitable  organization, trustee, person,
 9    professional fund raiser or professional solicitor, which  or
10    who  solicits  contributions  in  this  State,  but  does not
11    maintain an office within the  State  or  cannot  be  located
12    within  the  State shall be subject to service of process, as
13    follows:
14        (a)  By service thereof on its  registered  agent  within
15    the State, or if there be no such registered agent, then upon
16    the  person  who  has  been  designated  in  the registration
17    statement as having custody of books and records within  this
18    State;   where   service  is  effected  upon  the  person  so
19    designated in  the  registration  statement  a  copy  of  the
20    process  shall,  in  addition,  be mailed to the registrant's
21    last known address;
22        (b)  When   any   corporate    person    has    solicited
23    contributions  in  this State, but maintains no office within
24    the State, has no registered agent within the State,  and  no
25    designated  person  having  custody  of its books and records
26    within the State, or when a registered agent or person having
27    custody of its books and records within the State  cannot  be
28    found  as shown by the return of the sheriff of the county in
29    which such registered agent or person having custody of books
30    and  records  has  been   represented   by   the   charitable
31    organization  or person as maintaining an office, service may
32    be made by delivering to and leaving with  the  Secretary  of
33    State,  or  with  any  deputy  or  clerk  in  the corporation
HB1211 Enrolled            -16-                LRB9004043THpk
 1    department of his office, three copies thereof;
 2        (c)  Following service upon the Secretary  of  State  the
 3    provisions  of  law relating to service of process on foreign
 4    corporations shall thereafter govern;
 5        (d)  Long arm service in accordance with law;
 6        (e)  The solicitation of  any  contribution  within  this
 7    State  by  any charitable organization or any person shall be
 8    deemed to be their agreement that any process against  it  or
 9    him  which  is so served in accordance with the provisions of
10    this Section shall be of the same legal force and  effect  as
11    if served personally within this State and that the courts of
12    this   State  shall  have  personal  jurisdiction  over  such
13    organizations, persons and trustees;
14        (f)  Venue over persons required to be  registered  under
15    this  Act  shall  be  proper in any county where the Attorney
16    General accepts and maintains the list of registrations.   In
17    furtherance  of judicial economy, actions filed for violation
18    of  this  Act  may  name  multiple  trustees,   trusts,   and
19    organizations  in a single or joint action where those joined
20    have each engaged in similar conduct in violation of this Act
21    or where similar relief is sought  against  those  defendants
22    for violation of this Act.
23    (Source: P.A. 87-755.)
24        (225 ILCS 460/6) (from Ch. 23, par. 5106)
25        Sec.  6.  (a)  No person shall act as a professional fund
26    raiser or allow a professional fund raiser  entity  he  owns,
27    manages  or  controls  to  act  for a charitable organization
28    required to register pursuant to Section 2 of  this  Act,  or
29    for  any  organization  as described in Section 3 of this Act
30    before he has registered  himself  or  the  entity  with  the
31    Attorney  General  or after the expiration or cancellation of
32    such registration or any renewal  thereof.  Applications  for
33    registration  and  re-registration shall be in writing, under
HB1211 Enrolled            -17-                LRB9004043THpk
 1    oath, in the form  prescribed  by  the  Attorney  General.  A
 2    registration fee of $100 shall be paid with each registration
 3    and    upon    each    re-registration.    Registration   and
 4    re-registration can proceed only  if  all  financial  reports
 5    have been filed in proper form and all fees have been paid in
 6    full.    If  the applicant intends to or does take control or
 7    possession of charitable funds, the applicant  shall  at  the
 8    time  of making application, file with, and have approved by,
 9    the Attorney General a bond in which the applicant  shall  be
10    the  principal  obligor,  in  the sum of $10,000, with one or
11    more corporate sureties licensed to do business in this State
12    whose liability in the aggregate will  at  least  equal  such
13    sum.  The  bond shall run to the Attorney General for the use
14    of the State and to any person who may have a cause of action
15    against the obligor  of  the  bond  for  any  malfeasance  or
16    misfeasance  in  the  conduct of such solicitation; provided,
17    that the aggregate limit of liability of the  surety  to  the
18    State  and to all such persons shall, in no event, exceed the
19    sum  of  such  bond.  Registration  or  re-registration  when
20    effected shall be for  a  period  of  one  year,  or  a  part
21    thereof, expiring on the 30th day of June, and may be renewed
22    upon  written application, under oath, in the form prescribed
23    by the Attorney General  and  the  filing  of  the  bond  for
24    additional  one  year periods. Every professional fund raiser
25    required to register pursuant  to  this  Act  shall  file  an
26    annual  written  report  with the Attorney General containing
27    such information as he may  require  by  rule.  Certification
28    shall   be   required   for   only   information  within  the
29    professional fund raiser's knowledge.
30        (b)  Upon filing a  complete  registration  statement,  a
31    professional fund raiser shall be given a registration number
32    and   shall  be  considered  registered.   If  the  materials
33    submitted are determined to be inaccurate or incomplete,  the
34    Attorney General shall notify the professional fund raiser of
HB1211 Enrolled            -18-                LRB9004043THpk
 1    his  findings  and  the  defect  and  that within 30 days his
 2    registration will be cancelled unless  the  defect  is  cured
 3    within said time.
 4        (c)  Every professional fund raiser registered under this
 5    Act  who  takes  possession  or  control  of charitable funds
 6    directly, indirectly, or through an  escrow  shall  submit  a
 7    full written accounting to the charitable organization of all
 8    funds  it or its agents collected on behalf of the charitable
 9    organization during the 6 month period ended June 30 of  each
10    year,  and  file  a  copy of the accounting with the Attorney
11    General.  The accounting shall be in writing under  oath  and
12    be  signed  and  made  on forms as prescribed by the Attorney
13    General and shall be filed by the following September  30  of
14    each year; however, within the time prescribed, and  for good
15    cause,  the  Attorney General may grant a 60 day extension of
16    the due date.
17        (d)  Every professional fund raiser  registered  pursuant
18    to  this  Act shall also file calendar year written financial
19    reports with the Attorney General containing such information
20    as he may require, on forms prescribed by  him,  as  well  as
21    separate  financial  reports  for  each separate fund raising
22    campaign conducted.  The written report shall be filed  under
23    oath on or before April 30 of the following calendar year and
24    be  signed  and  verified under penalty of perjury within the
25    time prescribed. An annual report fee of $25 shall be paid to
26    the Attorney General with the filing of that report.  If  the
27    report  is  not  timely filed, a late filing fee shall result
28    and must be paid prior to re-registration.  The  late  filing
29    fee  shall  be calculated at $200 for each and every separate
30    fundraising campaign conducted during the  report  year.  For
31    good cause, the Attorney General may grant a 30 day extension
32    of the due date, in which case a late filing fee shall not be
33    imposed until the expiration of the extension period.  A copy
34    of   the  report  shall  also  be  given  to  the  charitable
HB1211 Enrolled            -19-                LRB9004043THpk
 1    organization by the due date of filing.  A professional  fund
 2    raiser  shall only be required to verify information actually
 3    available to the professional fund raiser, but in  any  event
 4    an annual report must be timely filed.
 5        (e)  No  person  convicted  of a felony may register as a
 6    professional fund  raiser,  and  no  person  convicted  of  a
 7    misdemeanor  involving fiscal wrongdoing, breach of fiduciary
 8    duty  or  a  violation  of  this  Act  may  register   as   a
 9    professional  fund  raiser  for  a period of 5 years from the
10    date of the conviction or the  date  of  termination  of  the
11    sentence  or  probation,  if  any,  whichever  is later. This
12    subsection shall not apply to charitable  organizations  that
13    have  as their primary purpose the rehabilitation of criminal
14    offenders,  the  reintegration  of  criminal  offenders  into
15    society, the improvement of the criminal  justice  system  or
16    the improvement of conditions within penal institutions.
17        (f)  A  professional  fund  raiser may not cause or allow
18    independent contractors to act on its  behalf  in  soliciting
19    charitable  contributions  other than registered professional
20    solicitors. A professional  fund  raiser  must  maintain  the
21    names,  addresses  and  social security numbers of all of its
22    professional solicitors for a period of at least 2 years.
23        (g)  Any person who knowingly violates the provisions  of
24    subsections  (a),  (e) and (f) of this Section is guilty of a
25    Class 4 felony.  Any  person  who  fails  after  being  given
26    notice  of  delinquency  to  file  written  financial reports
27    required by subsections (c) and (d) of this Section which  is
28    more  than  2 months past its due date is guilty of a Class A
29    misdemeanor.
30        (h)  Any person who violates any  of  the  provisions  of
31    this  Section  shall  be  subject to civil penalties of up to
32    $5,000 for each violation and shall not be entitled  to  keep
33    or receive fees, salaries, commissions or any compensation as
34    a  result  or on account of the solicitations or fund raising
HB1211 Enrolled            -20-                LRB9004043THpk
 1    campaigns, and at the request of the Attorney General or  the
 2    charitable  organization,  a  court  may  order  that such be
 3    forfeited and paid toward and used for a  charitable  purpose
 4    as  the  court in its discretion determines is appropriate or
 5    placed in the Illinois Charity Bureau Fund.
 6    (Source: P.A. 87-755.)
 7        (225 ILCS 460/7) (from Ch. 23, par. 5107)
 8        Sec.  7.   (a)  All   contracts   entered   into   by   a
 9    professional  fund  raiser  to conduct a fundraising campaign
10    for a charitable purpose or charitable organization  must  be
11    in  writing  in conformity with this Act between professional
12    fund raisers and charitable trustees and organizations  shall
13    be in writing. A true and correct copy of each contract shall
14    be  filed  by the professional fund raiser and the charitable
15    trustee or organization organizations who  is  party  thereto
16    with   the  Attorney  General  prior  to  the  conduct  of  a
17    fundraising campaign under the contract and annually  by  the
18    professional  fund raiser at and with each reregistration its
19    implementation. Each professional fund raiser  shall  pay  an
20    annual filing fee of $25 for each active contract filed or on
21    file  under  this  Act.  The fee shall be paid at initial and
22    annual re-registration.  True  and  correct  copies  of  such
23    contracts  shall  be  kept  on  file  in  the  offices of the
24    charitable organization  and  the  professional  fund  raiser
25    during  the term thereof and until the expiration of a period
26    of 3  years  subsequent  to  the  date  the  solicitation  of
27    contributions  provided  for therein actually terminates. Any
28    person who violates the provisions of this Section is  guilty
29    of a Class A misdemeanor.
30        (b)  Any   contract   between   a   trust  or  charitable
31    organization and a professional fund raiser must  contain  an
32    estimated  reasonable  budget disclosing the target amount of
33    funds to be raised over the contract  period,  the  type  and
HB1211 Enrolled            -21-                LRB9004043THpk
 1    amount  of projected expenses related thereto, and the amount
 2    projected to be paid  to  the  charitable  organization.   In
 3    addition,  the  contract  shall  disclose  the  period of its
 4    duration, the geographic scope for fundraising, describe  the
 5    methods  of  fundraising to be employed and provide assurance
 6    of  record  keeping  and  accountability.   If  the  contract
 7    provides that the professional fund raiser will retain or  be
 8    paid  a  stated  percentage  of  the  gross amount raised, an
 9    estimate of the target gross amount to be raised  and  to  be
10    paid  to  charity  shall  be  stated in the contract.  If the
11    contract provides for payment on  an  hourly  rate  for  fund
12    raising,  the  total  estimated hourly amount, as well as the
13    estimated number of hours to be spent in fund raising,  shall
14    be stated.
15        (c)  All  professional  fund  raiser  contracts  shall be
16    approved  and  accepted  by  a  majority  of  the  charitable
17    organization's trustees, and in the case of a not for  profit
18    charitable  corporation,  by  its  president and at least one
19    member of its Board of  Directors,  and  the  contract  shall
20    recite  said  approval  and  acceptance by certification by a
21    trustee or the corporation's president.
22        (d)  All  professional  fund   raiser   contracts   shall
23    disclose  the  amounts  of all commissions, salaries and fees
24    charged  by  the  fund  raiser,  its  agents,  employees  and
25    solicitors and the method used for computing such.
26        (e)  If  the  professional  fund  raiser,   its   agents,
27    solicitors  or  employees  or members of the families thereof
28    own an interest in, manage or are a  supplier  or  vendor  of
29    fund  raising  goods  or  services, the relationship shall be
30    fully disclosed in the contract, as well  as  the  method  of
31    determining the related supplier's or vendor's charges.
32        (f)  If  the  professional  fund raiser, in the course of
33    raising funds, is also providing charitable education program
34    services to the public,  the  charitable  organization  shall
HB1211 Enrolled            -22-                LRB9004043THpk
 1    approve  or  provide to the fund raiser a written text of all
 2    public educational program materials to be disseminated  when
 3    fund  raising,  copies  of  which  shall be maintained by the
 4    parties.
 5        (g)  Any person who knowingly violates any  provision  of
 6    this  Section may be subject to injunctive relief and removal
 7    from  office.  Failure  to  file  a  contract  and  pay   the
 8    prescribed  annual  contract filing fee prior to conducting a
 9    fund raiser for an organization shall in  addition  to  other
10    relief  subject the professional fund raiser to a late filing
11    fee of $1,000 for each contract not timely filed.
12        (h)  A professional fund raiser or professional solicitor
13    that materially fails to comply with this Section  shall  not
14    be   entitled   to   collect   or  retain  any  compensation,
15    commission, fee or salary received in any campaign  in  which
16    the  violation  occurs.   Upon  application,  by the Attorney
17    General to a court of competent jurisdiction, the  court  may
18    apply equitable considerations in enforcing this Section.
19    (Source: P.A. 87-755.)
20        (225 ILCS 460/17) (from Ch. 23, par. 5117)
21        Sec.  17.   In  any  solicitation  to  the  public  for a
22    charitable organization by  a  professional  fund  raiser  or
23    professional solicitor:
24        (a)  The  public  member  shall  be  promptly informed by
25    statement  in  verbal  communications  and   by   clear   and
26    unambiguous   disclosure   in   written  materials  that  the
27    solicitation is being made by a paid professional fund raiser
28    or solicitor if such disclosure is requested  by  the  person
29    solicited.   The  fund  raiser, solicitor, and materials used
30    shall also provide the professional fund raiser's name and  a
31    statement  that  contracts  and reports regarding the charity
32    are  on  file  with  the  Illinois   Attorney   General   and
33    additionally,  in verbal communications, the solicitor's true
HB1211 Enrolled            -23-                LRB9004043THpk
 1    name must be provided.
 2        (b)  If the professional fund raiser employs  or  uses  a
 3    contract  which  provides  that  it  will be paid or retain a
 4    certain percentage of the gross amount of  each  contribution
 5    or  shall  be  paid  an  hourly rate for solicitation, or the
 6    contract provides the charity will receive a fixed amount  or
 7    a  fixed  percentage  of  each contribution, the professional
 8    fund raiser and person soliciting shall disclose  to  persons
 9    being solicited the percentage amount retained or hourly rate
10    paid  to  the professional fund raiser and solicitor pursuant
11    to the contract, and the  amount  or  the  percentage  to  be
12    received   by   the   charitable   organization   from   each
13    contribution,  if  such disclosure is requested by the person
14    solicited.
15        (c)  Any person or professional fund raiser, professional
16    solicitor soliciting charitable contributions from the public
17    on behalf of a public safety personnel organization shall not
18    misrepresent that they are in fact a law enforcement  person,
19    firefighter,  or  member  of  the  organization  for whom the
20    contributions are being raised and if requested by the person
21    solicited they shall promptly provide their actual name,  the
22    exact  legal  name  of  the  organization with which they are
23    employed and its correct address, as well as, the exact  name
24    of the charitable organization.
25    (Source: P.A. 87-755.)
26        (225 ILCS 460/21) (from Ch. 23, par. 5121)
27        Sec.  21. Illinois Charity Bureau Fund.  The court in its
28    discretion may place costs, fines,  and  penalties  collected
29    pursuant  to  this  Act  into  the  Illinois  Charity  Bureau
30    Attorney  General's Charitable Trust Enforcement Fund created
31    in Section 19 of the Charitable Trust Act and such  shall  be
32    expended  by  the  Attorney  General  for the enforcement and
33    administration of this Act to protect the public interest  in
HB1211 Enrolled            -24-                LRB9004043THpk
 1    charitable  funds and subject to transfer by appropriation of
 2    said funds to  the  Attorney  General's  Grant  Fund  at  the
 3    Attorney General's direction.
 4    (Source: P.A. 87-755.)
 5        (225 ILCS 460/22 new)
 6        Sec.  22.   All  fees  and  penalties  collected  by  the
 7    Attorney  General  pursuant  to  this  Act  shall be paid and
 8    deposited into the Illinois Charity Bureau Fund in the  State
 9    Treasury.   Moneys  in  the Fund shall be appropriated to the
10    Attorney General for charitable trust enforcement purposes as
11    an addition to other appropriated funds and be  used  by  the
12    Attorney  General  to  provide  the  public  with information
13    concerning  charitable  trusts  and  organizations  and   for
14    charitable trust enforcement activities.
15        (225 ILCS 460/23 new)
16        Sec.  23.   As a part of charitable trust enforcement and
17    public disclosure, a task force composed of  citizens  chosen
18    by the Attorney General to be known as the Attorney General's
19    Charitable Advisory Council shall be and is hereby formed for
20    a 3-year period.  This Advisory Council shall study issues of
21    charitable  giving,  volunteerism,  and  fundraising  in this
22    State and specifically shall evaluate and study  the  concept
23    of  establishing a peer review rating system of the financial
24    reports and operations of charitable trusts and organizations
25    registered in Illinois.  The ratings should seek to  evaluate
26    the  performance  of  those organizations in terms of program
27    services delivered for each dollar spent.  The purpose of the
28    ratings of  a  charity's  performance  is  to  provide  those
29    performance  ratings  to  the  donating public.  The Advisory
30    Council shall consider and report as to  the  feasibility  of
31    rating   all   charitable   organizations  registered  or  of
32    establishing a system of rating  only  those  seeking  to  be
HB1211 Enrolled            -25-                LRB9004043THpk
 1    rated and allowing those rated to represent the rating during
 2    solicitations.   The  Advisory  Council  members  shall serve
 3    without compensation, and the expenses of the Council may  be
 4    paid for out of the Illinois Charity Bureau Fund in an amount
 5    not  to  exceed $10,000 per year and in the discretion of the
 6    Attorney General.
 7        Section 10.  The  Charitable  Trust  Act  is  amended  by
 8    changing Sections 2, 3, 5, 7, 12, and 19 as follows:
 9        (760 ILCS 55/2) (from Ch. 14, par. 52)
10        Sec. 2. This Act applies to any and all trustees trustee,
11    as  defined  in  Section  3,  holding  property of a value in
12    excess of $4,000.
13    (Source: Laws 1963, p. 1462.)
14        (760 ILCS 55/3) (from Ch. 14, par. 53)
15        Sec. 3. "Trustee" means any person, individual, group  of
16    individuals,    association,    corporation,   not-for-profit
17    corporation, estate representative,  or  other  legal  entity
18    holding property for or solicited for any charitable purpose;
19    or  any chief operating officer, director, executive director
20    or owner of a corporation soliciting or holding property  for
21    a charitable purpose.
22    (Source: P.A. 87-755.)
23        (760 ILCS 55/5) (from Ch. 14, par. 55)
24        Sec.  5.   (a)  The  Attorney General shall establish and
25    maintain a register of trustees subject to this  Act  and  of
26    the  particular  trust or other relationship under which they
27    hold property for charitable purposes and, to that end, shall
28    conduct whatever investigation is necessary, and shall obtain
29    from public  records,  court  officers,  taxing  authorities,
30    trustees  and  other  sources, copies of instruments, reports
HB1211 Enrolled            -26-                LRB9004043THpk
 1    and records  and  whatever  information  is  needed  for  the
 2    establishment and maintenance of the register.
 3        (b)  A   registration   statement  shall  be  signed  and
 4    verified  under  penalty  of  perjury  by  2  officers  of  a
 5    corporate charitable organization or by 2 trustees if  not  a
 6    corporate  organization.   One  signature will be accepted if
 7    there is only one officer or one trustee. A registration  fee
 8    of  $15  shall  be paid with each initial registration.  If a
 9    person,  trustee  or  organization  fails   to   maintain   a
10    registration  of  a trust or organization as required by this
11    Act, and its registration is cancelled as  provided  in  this
12    Act,  and  if that trust or organization remains in existence
13    and by  law  is  required  to  be  registered,  in  order  to
14    re-register,  a new registration must be filed accompanied by
15    required  financial  reports,  and  in  all  instances  where
16    re-registration is required, submitted, and allowed, the  new
17    re-registration  materials  must  be  filed, accompanied by a
18    re-registration fee of $200.
19        (c)  If a person or trustee fails to register or maintain
20    registration of a trust or organization as provided  in  this
21    Section,  the  person or trustee is subject to injunction, to
22    removal, to account, and to appropriate other relief before a
23    court   of   competent   jurisdiction   exercising   chancery
24    jurisdiction. In the event of such action,  the  court  shall
25    impose,  as  an  additional surcharge, a civil penalty of not
26    less that $500 nor more than $1,000 against  any  trustee  or
27    other   person  who  fails  to  register  or  to  maintain  a
28    registration required under this Act.  The collected  penalty
29    shall  be  used  for  charitable  trust  enforcement  and for
30    providing charitable trust information to the public.
31    (Source: P.A. 87-755.)
32        (760 ILCS 55/7) (from Ch. 14, par. 57)
33        Sec. 7. (a) Except as otherwise provided,  every  trustee
HB1211 Enrolled            -27-                LRB9004043THpk
 1    subject  to  this  Act shall, in addition to filing copies of
 2    the instruments previously required, file with  the  Attorney
 3    General  periodic  annual written reports under oath, setting
 4    forth information as to the nature of  the  assets  held  for
 5    charitable  purposes  and  the  administration thereof by the
 6    trustee, in accordance with  rules  and  regulations  of  the
 7    Attorney General.
 8        (b)  The   Attorney   General   shall   make   rules  and
 9    regulations as to the time for filing reports,  the  contents
10    thereof, and the manner of executing and filing them.  He may
11    classify  trusts  and other relationships concerning property
12    held for a  charitable  purpose  as  to  purpose,  nature  of
13    assets,  duration  of the trust or other relationship, amount
14    of assets, amounts to  be  devoted  to  charitable  purposes,
15    nature  of trustee, or otherwise, and may establish different
16    rules for the different classes as to time and nature of  the
17    reports  required  to  the  ends  (1)  that  he shall receive
18    reasonably current,  annual  reports  as  to  all  charitable
19    trusts or other relationships of a similar nature, which will
20    enable  him  to  ascertain  whether  they  are being properly
21    administered,  and  (2)  that  periodic  reports  shall   not
22    unreasonably  add  to  the  expense  of the administration of
23    charitable trusts and similar  relationships.   The  Attorney
24    General  may suspend the filing of reports as to a particular
25    charitable  trust   or   relationship   for   a   reasonable,
26    specifically  designated time upon written application of the
27    trustee  filed  with  the  Attorney  General  and  after  the
28    Attorney General has filed  in  the  register  of  charitable
29    trusts   a  written  statement  that  the  interests  of  the
30    beneficiaries  will  not  be  prejudiced  thereby  and   that
31    periodic  reports  are not required for proper supervision by
32    his office.
33        (c)  A copy of an account filed by  the  trustee  in  any
34    court   having   jurisdiction   of   the   trust   or   other
HB1211 Enrolled            -28-                LRB9004043THpk
 1    relationship,;  if the account has been approved by the court
 2    in which it was  filed  and  notice  given  to  the  Attorney
 3    General  as  an  interested  party,  may be filed as a report
 4    required by this Section.
 5        (d)  The first report for a trust or similar relationship
 6    hereafter established, unless the filing thereof is suspended
 7    as herein provided, shall be filed not later  than  one  year
 8    after  any  part  of the income or principal is authorized or
 9    required to be applied to a charitable purpose. If  any  part
10    of  the income or principal of a trust previously established
11    is authorized or required  to  be  applied  to  a  charitable
12    purpose  at the time this Act takes effect, the first report,
13    unless the filing thereof is suspended, shall be filed within
14    6 months after the effective date of this Act.  In  addition,
15    every  trustee  registered  hereunder that received more than
16    $15,000  in  revenue  during  a  trust  fiscal  year  or  has
17    possession of more than $15,000 of assets at any time  during
18    a  fiscal year shall file an annual financial report within 6
19    months of the close of the trust's or  organization's  fiscal
20    year,  and if a calendar year the report shall be due on each
21    June 30 of the  following  year.   Every  trustee  registered
22    hereunder  that  did not receive more than $15,000 in revenue
23    or hold more than $15,000 in  assets  during  a  fiscal  year
24    shall  file  only  a  simplified  summary financial statement
25    disclosing only the gross receipts, total disbursements,  and
26    assets on hand at the end of the year, on forms prescribed by
27    the Attorney General.
28        (e)  The periodic reporting provisions of this Act do not
29    apply  to  any trustee of a trust which is the subject matter
30    of an adversary proceeding pending in the  circuit  court  in
31    this State.  However, upon commencement of the proceeding the
32    trustee  shall  file  a  report  with  the  Attorney  General
33    informing him of that fact together with the title and number
34    of  the cause and the name of the court.  Upon entry of final
HB1211 Enrolled            -29-                LRB9004043THpk
 1    judgment in the cause the trustee shall in like manner report
 2    that fact to the Attorney General and fully account  for  all
 3    periods of suspension.
 4        (f)  The Attorney General in his discretion may, pursuant
 5    to rules and regulations promulgated by the Attorney General,
 6    accept  executed  copies  of federal Internal Revenue returns
 7    and reports as a portion of the annual reporting.  The report
 8    shall include a statement of any changes in  purpose  or  any
 9    other   information   required   to   be   contained  in  the
10    registration form filed on behalf of the  organization.   The
11    report  shall  be  signed  under  penalty  of  perjury by the
12    president and the  chief  fiscal  officer  of  any  corporate
13    organization  or  by  2  trustees  if not a corporation.  One
14    signature shall be accepted if there is only one  officer  or
15    trustee.
16        (g)  The  Attorney  General shall cancel the registration
17    of any trust or organization that wilfully  fails  to  comply
18    with  subsections (a), (b), (c) or (d) of this Section within
19    the time prescribed, and the assets of the  organization  may
20    through  court  proceedings  be  collected,  debts  paid  and
21    proceeds   distributed   under  court  supervision  to  other
22    charitable purposes upon an  action  filed  by  the  Attorney
23    General  as  law  and  equity  allow.    Upon  timely written
24    request, the due date for  filing  may  be  extended  by  the
25    Attorney  General  for  a  period  of  60  days.   Notice  of
26    registration  cancellation shall be mailed by regular mail to
27    the registrant at the registration file  address  or  to  its
28    registered  agent  or  president 21 days before the effective
29    date  of   the   cancellation.    Reports   submitted   after
30    registration is canceled shall require reregistration.
31        (h)  Every  trustee registered hereunder that received in
32    any fiscal year more than $15,000 in  revenue  or  held  more
33    than $15,000 in assets shall pay a fee of $15 along with each
34    annual  financial  report  filed pursuant to this Act.  If an
HB1211 Enrolled            -30-                LRB9004043THpk
 1    annual report is not timely filed, a late filing  fee  of  an
 2    additional  $100  is imposed and shall be paid as a condition
 3    of filing a late  report.    Reports  submitted  without  the
 4    proper fee shall not be accepted for filing.
 5    (Source: P.A. 87-755.)
 6        (760 ILCS 55/12) (from Ch. 14, par. 62)
 7        Sec.  12.  The Attorney General may institute appropriate
 8    proceedings to secure compliance with this Act and to  secure
 9    the  proper administration of any trust or other relationship
10    to which this Act applies.  Venue  shall  be  proper  in  any
11    county  where  the Attorney General accepts and maintains the
12    list of registrations.  In furtherance of  judicial  economy,
13    actions  filed  for  violation  of this Act may name multiple
14    trustees, trusts, and organizations in a joint  action  where
15    each  has engaged in similar conduct in violation of this Act
16    or where similar relief is sought  against  those  defendants
17    for violation of this Act.
18    (Source: P.A. 87-755.)
19        (760 ILCS 55/19) (from Ch. 14, par. 69)
20        Sec.  19.  There  is  created  in  the State Treasury the
21    Illinois  Charity  Bureau  Fund.   All  fees  and   penalties
22    collected  by the Attorney General pursuant to this Act shall
23    be deposited in the Illinois Charity Bureau Fund in the State
24    Treasury.  Moneys in the Fund shall be  appropriated  to  the
25    Attorney  General  for  charitable trust enforcement purposes
26    and dissemination of public information.  There is created in
27    the State Treasury the Attorney  General's  Charitable  Trust
28    Enforcement  Fund.   The  court  in  its discretion may place
29    costs, fines and penalties collected  pursuant  to  this  Act
30    into the enforcement fund and the monies shall be expended by
31    the  Attorney  General for the enforcement and administration
32    of this Act to protect  the  public  interest  in  charitable
HB1211 Enrolled            -31-                LRB9004043THpk
 1    funds  and  subject  to transfer of the funds to the Attorney
 2    General's Grant Fund at the Attorney General's direction.
 3    (Source: P.A. 87-755.)
 4        Section 15.  The State Finance Act is amended by changing
 5    Section 5.321 as follows:
 6        (30 ILCS 105/5.321) (from Ch. 127, par. 141.321)
 7        Sec.  5.321.   The  Illinois  Charity   Bureau   Attorney
 8    General's Charitable Trust Enforcement Fund.
 9    (Source: P.A. 87-755; 87-895.)
10        Section  99.  Effective date.  This Act takes effect upon
11    becoming law.

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