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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 ifmaintainregistration of a trust or 22 organization is cancelled as provided in this ActSection, 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 provisionsand requirementsof 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$10,000during 27 any 12 month period ending December 31 of any year,28provided all of its fund raising functions are carried on29by 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 whose30fund raising functions are carried on by persons who are31unpaid for such servicesshall 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 byreport in30the form of an affidavit ofits 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 statementaffidavit34 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 SectionAct, 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 SectionAct, 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 days330monthsupon 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 accountantCPAaudit 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 withsubsections (a), (b) or (c) ofthis 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 ofup to32 $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 Actbetween professional12fund raisers and charitable trustees and organizations shall13be 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 organizationorganizationswho 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 reregistrationits19implementation. 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 28or solicitor if such disclosure is requested by the person29solicited. 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 30Attorney General's Charitable Trust EnforcementFund 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 trusteestrustee, 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 in27the State Treasury the Attorney General's Charitable Trust28Enforcement Fund. The court in its discretion may place29costs, fines and penalties collected pursuant to this Act30into the enforcement fund and the monies shall be expended by31the Attorney General for the enforcement and administration32of this Act to protect the public interest in charitableHB1211 Enrolled -31- LRB9004043THpk 1funds and subject to transfer of the funds to the Attorney2General'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 BureauAttorney8General's Charitable Trust EnforcementFund. 9 (Source: P.A. 87-755; 87-895.) 10 Section 99. Effective date. This Act takes effect upon 11 becoming law.