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91_HB1180eng HB1180 Engrossed LRB9101697ACmb 1 AN ACT in relation to solicitation by certain persons. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Solicitation for Charity Act is amended 5 by changing Sections 1, 9, and 11 and adding Section 7.5 as 6 follows: 7 (225 ILCS 460/1) (from Ch. 23, par. 5101) 8 Sec. 1. The following words and phrases as used in this 9 Act shall have the following meanings unless a different 10 meaning is required by the context. 11 (a) "Charitable organization." Any benevolent, 12 philanthropic, patriotic, or eleemosynary person or one 13 purporting to be such which solicits and collects funds for 14 charitable purposes and includes each local, county, or area 15 division within this State of such charitable organization, 16 provided such local, county or area division has authority 17 and discretion to disburse funds or property otherwise than 18 by transfer to any parent organization. 19 (b) "Contribution." The promise or grant of any money or 20 property of any kind or value, including the promise to pay, 21 except payments by union members of an organization. 22 Reference to the dollar amount of "contributions" in this Act 23 means in the case of promises to pay, or payments for 24 merchandise or rights of any other description, the value of 25 the total amount promised to be paid or paid for such 26 merchandise or rights and not merely that portion of the 27 purchase price to be applied to a charitable purpose. 28 Contribution shall not include the proceeds from the sale of 29 admission tickets by any not-for-profit music or dramatic 30 arts organization which establishes, by such proof as the 31 Attorney General may require, that it has received an HB1180 Engrossed -2- LRB9101697ACmb 1 exemption under Section 501(c)(3) of the Internal Revenue 2 Code and which is organized and operated for the presentation 3 of live public performances of musical or theatrical works on 4 a regular basis. For purposes of this subsection, union 5 member dues and donated services shall not be deemed 6 contributions. 7 (c) "Person." Any individual, organization, group, 8 association, partnership, corporation, trust or any 9 combination of them. 10 (d) "Professional fund raiser." Any person who for 11 compensation or other consideration, conducts, manages, or 12 carries on any solicitation drive or campaign in this State 13 or from this State or on behalf of a charitable organization 14 residing within this State for the purpose of soliciting 15 contributions for or on behalf of any charitable organization 16 or any other person, or who engages in the business of, or 17 holds himself out to persons in this State as independently 18 engaged in the business of soliciting contributions for such 19 purposes. A bona fide director, officer, employee or unpaid 20 volunteer of a charitable organization shall not be deemed a 21 professional fund raiser unless the person is in a management 22 position and the majority of the individual's salary or other 23 compensation is computed on a percentage basis of funds to be 24 raised, or actually raised. 25 (e) "Professional fund raising consultant." Any person 26 who is retained by a charitable organization or trustee for a 27 fixed fee or rate that is not computed on a percentage of 28 funds to be raised, or actually raised, under a written 29 agreement, to only plan, advise, consult, or prepare 30 materials for a solicitation of contributions in this State, 31 but who does not manage, conduct or carry on a fundraising 32 campaign and who does not solicit contributions or employ, 33 procure, or engage any compensated person to solicit 34 contributions and who does not at any time have custody or HB1180 Engrossed -3- LRB9101697ACmb 1 control of contributions. A volunteer, employee or salaried 2 officer of a charitable organization or trustee maintaining a 3 permanent establishment or office in this State is not a 4 professional fundraising consultant. An attorney, investment 5 counselor, or banker who advises an individual, corporation 6 or association to make a charitable contribution is not a 7 professional fundraising consultant as a result of the 8 advice. 9 (f) "Charitable purpose." Any charitable, benevolent, 10 philanthropic, patriotic, or eleemosynary purpose. 11 (g) "Charitable Trust" means any relationship whereby 12 property is held by a person for a charitable purpose. 13 (h) "Education Program Service" means any activity which 14 provides information to the public of a nature that is not 15 commonly known or facts which are not universally regarded as 16 obvious or as established by common understanding and which 17 informs the public of what it can or should do about a 18 particular issue. 19 (i) "Primary Program Service" means the program service 20 upon which an organization spends more than 50% of its 21 program service funds or the program activity which 22 represents the largest expenditure of funds in the fiscal 23 period. 24 (j) "Professional solicitor" means any natural person 25 who is employed or retained for compensation by a 26 professional fund raiser to solicit contributions for 27 charitable purposes from persons in this State or from this 28 State or on behalf of a charitable organization residing 29 within this State. 30 (k) "Program Service Activity" means the actual 31 charitable program activities of a charitable organization 32 for which it expends its resources. 33 (l) "Program Service Expense" means the expenses of 34 charitable program activity and not management expenses or HB1180 Engrossed -4- LRB9101697ACmb 1 fund raising expenses. In determining Program Service 2 Expense, management and fund raising expenses may not be 3 included. 4 (m) "Public Safety Personnel Organization" means any 5 person who uses any of the words "officer", "police", 6 "policeman", "policemen", "troopers", "sheriff", "law 7 enforcement", "fireman",or"firemen", "paramedic", or 8 similar words in its name or in conjunction with 9 solicitations, or in the title or name ofto place ads or buy10subscriptions ina magazine, newspaper, periodical, 11 advertisementor adbook, or any other medium of electronic 12 or print publication, and is not a governmental entity. No 13 organization may be a Public Safety Personnel Organization 14 unless 80% or more of its voting members or trustees are 15 active, retired, or disabled police officers, peace officers, 16 firemen, fire fighters, emergency medical technicians - 17 ambulance, emergency medical technicians - intermediate, 18 emergency medical technicians - paramedic, ambulance drivers, 19 or other medical assistance or first aid personnel. 20 (m-5) "Public Safety Personnel" includes police 21 officers, peace officers, firemen, fire fighters, emergency 22 medical technicians - ambulance, emergency medical 23 technicians - intermediate, emergency medical technicians - 24 paramedic, ambulance drivers, and other medical assistance or 25 first aid personnel. 26 (n) "Trustee" means any person, individual, group of 27 individuals, association, corporation, not for profit 28 corporation, or other legal entity holding property for or 29 solicited for any charitable purpose; or any officer, 30 director, executive director or other controlling persons of 31 a corporation soliciting or holding property for a charitable 32 purpose. 33 (Source: P.A. 86-718; 87-755.) HB1180 Engrossed -5- LRB9101697ACmb 1 (225 ILCS 460/7.5 new) 2 Sec. 7.5. Public Safety Personnel Organization. 3 (a) Every Public Safety Personnel Organization that 4 solicits contributions from the public shall, in addition to 5 other provisions of this Act: 6 (1) Have as a condition of public solicitation a 7 provision included in every professional fund raiser 8 contract providing that the professional fund raiser 9 shall: (A) maintain and deliver to the organization a 10 list of the names and addresses of all contributors and 11 purchasers of merchandise, goods, services, memberships, 12 and advertisements; (B) deliver the list of the current 13 year semiannually of each contribution or purchase and 14 specify the amount of the contribution or purchase and 15 the date of the transaction; and (C) assign ownership of 16 the list to the Public Safety Personnel Organization. 17 The obligation required by this subdivision (1) does 18 not apply to a professional fund raiser under the 19 following conditions: 20 (i) the professional fund raiser does not have 21 access to information to create and maintain the 22 list and the Public Safety Personnel Organization 23 obtained the information to create and maintain the 24 list under the fund raising campaign by other means; 25 or 26 (ii) the Public Safety Personnel Organization 27 and the professional fund raiser agree to waive the 28 obligation required by this subdivision (1). 29 (2) Act in accordance with Section 17-2 of the 30 Criminal Code of 1961, and violation of this Section 31 shall also be subject to separate civil remedy hereunder. 32 (b) Any professional fund raiser who willfully violates 33 the provisions of this Section may in addition to other 34 remedies be subject to a fine of $2,000 for each violation, HB1180 Engrossed -6- LRB9101697ACmb 1 forfeiture of all solicitation fees, and enjoined from 2 operating and soliciting the public. 3 (c) This Section does not apply to a contract that is in 4 effect on the effective date of this amendatory Act of the 5 91st General Assembly (unless the contract is extended, 6 renewed, or revised on or after the effective date of this 7 amendatory Act of the 91st General Assembly, in which case 8 this Section applies to the contract on and after the date on 9 which the extension, renewal, or revision takes place). 10 (225 ILCS 460/9) (from Ch. 23, par. 5109) 11 Sec. 9. (a) An action for violation of this Act may be 12 prosecuted by the Attorney General in the name of the people 13 of the State, and in any such action, the Attorney General 14 shall exercise all the powers and perform all duties which 15 the State's Attorney would otherwise be authorized to 16 exercise or to perform therein. 17 (b) This Act shall not be construed to limit or restrict 18 the exercise of the powers or the performance of the duties 19 of the Attorney General which he otherwise is authorized to 20 exercise or perform under any other provision of law by 21 statute or otherwise. 22 (c) Whenever the Attorney General shall have reason to 23 believe that any charitable organization, professional fund 24 raiser, or professional solicitor is operating in violation 25 of the provisions of this Act, or if any of the principal 26 officers of any charitable organization has refused or 27 failed, after notice, to produce any records of such 28 organization or there is employed or is about to be employed 29 in any solicitation or collection of contributions for a 30 charitable organization any device, scheme, or artifice to 31 defraud or for obtaining money or property by means of any 32 false pretense, representation or promise, or any false 33 statement has been made in any application, registration or HB1180 Engrossed -7- LRB9101697ACmb 1 statement required to be filed pursuant to this Act, in 2 addition to any other action authorized by law, he may bring 3 in the circuit court an action in the name, and on behalf of 4 the people of the State of Illinois against such charitable 5 organization and any other person who has participated or is 6 about to participate in such solicitation or collection by 7 employing such device, scheme, artifice, false representation 8 or promise, to enjoin such charitable organization or other 9 person from continuing such solicitation or collection or 10 engaging therein or doing any acts in furtherance thereof, or 11 to cancel any registration statement previously filed with 12 the Attorney General. 13 In connection with such proposed action the Attorney 14 General is authorized to take proof in the manner provided in 15 Section 2-1003 of the Code of Civil Procedure. 16 (d) Upon a showing by the Attorney General in an 17 application for an injunction that any person engaged in the 18 solicitation or collection of funds for charitable purposes, 19 either as an individual or as a member of a copartnership, or 20 as an officer of a corporation or as an agent for some other 21 person, or copartnership or corporation, has been convicted 22 in this State or elsewhere of a felony or of a misdemeanor 23 where such felony or misdemeanor involved the 24 misappropriation, misapplication or misuse of the money or 25 property of another, he may enjoin such persons from engaging 26 in any solicitation or collection of funds for charitable 27 purposes. 28 (e) The Attorney General may exercise the authority 29 granted in this Section against any charitable organization 30 or person which or who operates under the guise or pretense 31 of being an organization exempted by the provisions of 32 Section 3 and is not in fact an organization entitled to such 33 an exemption. 34 (f) In any action brought under the provisions of this HB1180 Engrossed -8- LRB9101697ACmb 1 Act, the Attorney General is entitled to recover costs for 2 the use of this State. 3 (g) Any person who knowingly violates this Section may 4 be enjoined from such conduct, removed from office, enjoined 5 from acting for charity and subject to punitive damages as 6 deemed appropriate by the circuit court. 7 (h) Any person who violates this Section shall not be 8 entitled to keep or receive monies, fees, salaries, 9 commissions or any compensation, as a result of the 10 solicitations or fund raising campaigns, and at the request 11 of the Attorney General such monies, fees, salaries, 12 commissions or any compensation shall be forfeited and 13 subject to distribution to charitable use as a court of 14 equity determines. 15 (i) The Attorney General may publish an annual report of 16 all charitable organizations based on information contained 17 in reports filed hereunder stating the amount of money each 18 organization received through solicitation and the amount of 19 money which was expended on program service activity and the 20 percentage of the solicited assets that were expended on 21 charitable activity. 22 (j) The Attorney General shall cancel the registration 23 of any organization, professional fund raiser, or 24 professional solicitor who violates the provisions of this 25 Section. 26 (k) Any person who solicits financial contributions or 27 the sale of merchandise, goods, services, memberships, or 28 advertisements in violation of the prohibitions of subsection 29 (d-1) of Section 11 of this Act, or commits false 30 personation, use of title, or solicitation as defined by 31 Section 17-2 of the Criminal Code of 1961 shall, in addition 32 to any other penalties provided for by law, be subject to 33 civil remedy by cause of action brought by the Attorney 34 General or a Public Safety Personnel Organization affected by HB1180 Engrossed -9- LRB9101697ACmb 1 the violation. 2 In addition to equitable relief, a successful claimant or 3 the Attorney General shall recover damages of triple the 4 amount collected as a result of solicitations made in 5 violation of this Act, plus reasonable attorney's fees and 6 costs. 7 A plaintiff in any suit filed under this Section shall 8 serve a copy of all pleadings on the Attorney General and the 9 State's Attorney for the county in which the suit is filed. 10 (Source: P.A. 87-755.) 11 (225 ILCS 460/11) (from Ch. 23, par. 5111) 12 Sec. 11. (a) No person shall for the purpose of 13 soliciting contributions from persons in this State, use the 14 name of any other person, except that of an officer, director 15 or trustee of the charitable organization by or for which 16 contributions are solicited, without the written consent of 17 such other persons. 18 (b) A person shall be deemed to have used the name of 19 another person for the purpose of soliciting contributions if 20 such latter person's name is listed on any stationery, 21 advertisement, brochure or correspondence in or by which a 22 contribution is solicited by or on behalf of a charitable 23 organization or his name is listed or referred to in 24 connection with a request for a contribution as one who has 25 contributed to, sponsored or endorsed the charitable 26 organization or its activities. 27 (c) Nothing contained in this Section shall prevent the 28 publication of names of contributors without their written 29 consents, in an annual or other periodic report issued by a 30 charitable organization for the purpose of reporting on its 31 operations and affairs to its membership or for the purpose 32 of reporting contributions to contributors. 33 (d) No charitable organization or professional fund HB1180 Engrossed -10- LRB9101697ACmb 1 raiser soliciting contributions shall use a name, symbol, or 2 statement so closely related or similar to that used by 3 another charitable organization or governmental agency that 4 the use thereof would tend to confuse or mislead the public. 5 (d-1) No Public Safety Personnel Organization may by 6 words in its name or in its solicitations claim to be 7 representing, acting on behalf of, assisting, or affiliated 8 with the public safety personnel of a particular municipal, 9 regional, or other geographical area, unless: (1) 80% or more 10 of the organization's voting members and trustees are persons 11 who are actively employed or retired or disabled from 12 employment within the particular municipal, regional, or 13 other geographical area stated in the name or solicitation; 14 (2) all of these members are vested with the right to vote in 15 the election of the managing or controlling officers of the 16 organization either directly or through delegates; and (3) 17 the organization includes in any solicitation the actual 18 number of active, retired, or disabled police officers, peace 19 officers, firemen, fire fighters, emergency medical 20 technicians - ambulance, emergency medical technicians - 21 intermediate, emergency medical technicians - paramedic, 22 ambulance drivers, or other medical assistance or first aid 23 personnel who are members of the organization who are 24 actively employed, retired, or disabled from employment 25 within the particular municipal, regional, or other 26 geographical area referenced in the solicitation. 27 (d-2) No person or organization may have a name or use a 28 name using the words "officer", "police", "policeman", 29 "policemen", "trooper", "sheriff", "law enforcement officer", 30 "deputy", "chief of police", or similar words therein unless 31 80% or more of its trustees and voting members are active, 32 retired, or disabled law enforcement personnel. 33 (d-3) No person or organization may have a name or use a 34 name using the words "fireman", "firemen", "fire fighter", HB1180 Engrossed -11- LRB9101697ACmb 1 "fire chief", "paramedic", or similar words therein unless 2 80% or more of its trustees and voting members are active, 3 retired or disabled fire fighters, firemen, emergency medical 4 technicians - ambulance, emergency medical technicians - 5 intermediate, emergency medical technicians - paramedic, 6 ambulance drivers, or other medical assistance or first aid 7 personnel. 8 (d-4) No person by words in a Public Safety Personnel 9 Organization name or in solicitations made therefor shall 10 state he or she or his or her organization is assisting or 11 affiliated with a local, municipal, regional, or other 12 governmental body or geographical area unless 80% of its 13 trustees and voting members are active, retired, or disabled 14 police officers, law enforcement officials, firemen, fire 15 fighters, emergency medical technicians - ambulance, 16 emergency medical technicians - intermediate, emergency 17 medical technicians - paramedic, ambulance drivers, or other 18 medical assistance or first aid personnel of the local, 19 municipal, regional, or other geographical area so named or 20 stated. Nothing in this Act shall prohibit a Public Safety 21 Personnel Organization from stating the actual number of 22 members it has in any geographical area. 23 (e) Any person or organization thatwhowillfully 24 violates the provisions of this Section is guilty of a Class 25 A misdemeanor. Any person or organization that willfully 26 violates the provisions of this Section may in addition to 27 other remedies be subject to a fine of $2,000 for each 28 violation, shall be subject to forfeiture of all solicitation 29 fees, and shall be enjoined from operating as a fund raiser 30 and soliciting the public for fundraising purposes. 31 (Source: Laws 1963, p. 2082.) 32 Section 10. The Criminal Code of 1961 is amended by 33 changing Section 17-2 as follows: HB1180 Engrossed -12- LRB9101697ACmb 1 (720 ILCS 5/17-2) (from Ch. 38, par. 17-2) 2 Sec. 17-2. False personation; use of title; 3 solicitation; certain entities.Impersonating Veteran, Member4of Police, Fraternal or Veterans' Organization, or5Representative of Charitable Organization - Use of Words6"Chicago Police" etc. - Sentence.7 (a) A person commits a false personation when he or she 8 falsely represents himself or herself to be a member or 9 representative of any veterans' or public safety personnel 10 organizationpolice, fraternal or veteran's organization,11including the Illinois Police Association,or a 12 representative of any charitable organization, or when any 13 person exhibits or uses in any manner any decal, badge or 14 insignia of any charitable, public safety personnel, or 15 veterans'policeorganization when not authorized to do so by 16 thesuchcharitable, public safety personnel, or veterans' 17policeorganization. "Public safety personnel organization" 18 has the meaning ascribed to that term in Section 1 of the 19 Solicitation for Charity Act. 20 (a-5) A person commits a false personation when he or 21 she falsely represents himself or herself to be a veteran in 22 seeking employment or public office. In this subsection, 23 "veteran" means a person who has served in the Armed Services 24 or Reserved Forces of the United States. 25 (b) No person shall use the words "Chicago Police," 26 "Chicago Police Department," "Chicago Patrolman," "Chicago 27 Sergeant," "Chicago Lieutenant," "Chicago Peace Officer" or 28 any other words to the same effect in the title of any 29 organization, magazine, or other publication without the 30 express approval of the Chicago Police Board. 31 (c) (Blank).No person may solicit advertisements to32appear in any firefighters', law enforcement or police33officers' magazine, journal or other publication without34first having obtained a current certificate of qualificationHB1180 Engrossed -13- LRB9101697ACmb 1from the Illinois Attorney General. Upon the presentation of2proof that the applicant does in fact represent a legitimate3and bona fide firefighters', law enforcement or police4officers' publication, the Attorney General may issue to the5applicant a certificate of qualification to solicit6advertisements on behalf of such publication. The Attorney7General shall prescribe forms and promulgate rules governing8the making of applications and the certification of persons9under this subsection.10 (c-1) No person may claim or represent that he or she is 11 acting on behalf of any police department, chief of a police 12 department, fire department, chief of a fire department, 13 sheriff's department, or sheriff when soliciting financial 14 contributions or selling or delivering or offering to sell or 15 deliver any merchandise, goods, services, memberships, or 16 advertisements unless the chief of the police department, 17 fire department, and the corporate or municipal authority 18 thereof, or the sheriff has first entered into a written 19 agreement with the person or with an organization with which 20 the person is affiliated and the agreement permits the 21 activity. 22 (c-2) No person, when soliciting financial contributions 23 or selling or delivering or offering to sell or deliver any 24 merchandise, goods, services, memberships, or advertisements 25 may claim or represent that he or she is representing or 26 acting on behalf of any nongovernmental organization by any 27 name which includes "officer", "peace officer", "police", 28 "law enforcement", "trooper", "sheriff", "deputy", "deputy 29 sheriff", "State police", or any other word or words which 30 would reasonably be understood to imply that the organization 31 is composed of law enforcement personnel unless the person is 32 actually representing or acting on behalf of the 33 nongovernmental organization, and the nongovernmental 34 organization is controlled by and governed by a membership of HB1180 Engrossed -14- LRB9101697ACmb 1 and represents a group or association of active duty peace 2 officers, retired peace officers, or injured peace officers 3 and before commencing the solicitation or the sale or the 4 offers to sell any merchandise, goods, services, memberships, 5 or advertisements, a written contract between the soliciting 6 or selling person and the nongovernmental organization has 7 been entered into. 8 (c-3) No person may solicit financial contributions or 9 sell or deliver or offer to sell or deliver any merchandise, 10 goods, services, memberships, or advertisements on behalf of 11 a police, sheriff, or other law enforcement department unless 12 that person is actually representing or acting on behalf of 13 the department or governmental organization and has entered 14 into a written contract with the police chief, or head of the 15 law enforcement department, and the corporate or municipal 16 authority thereof, or the sheriff, which specifies and states 17 clearly and fully the purposes for which the proceeds of the 18 solicitation, contribution, or sale will be used. 19 (c-4) No person, when soliciting financial contributions 20 or selling or delivering or offering to sell or deliver any 21 merchandise, goods, services, memberships, or advertisements, 22 may claim or represent that he or she is representing or 23 acting on behalf of any nongovernmental organization by any 24 name which includes the term "fireman", "fire fighter", 25 "paramedic", or any other word or words which would 26 reasonably be understood to imply that the organization is 27 composed of fire fighter or paramedic personnel unless the 28 person is actually representing or acting on behalf of the 29 nongovernmental organization, and the nongovernmental 30 organization is controlled by and governed by a membership of 31 and represents a group or association of active duty, 32 retired, or injured fire fighters (for the purposes of this 33 Section, "fire fighter" has the meaning ascribed to that term 34 in Section 2 of the Illinois Fire Protection Training Act) or HB1180 Engrossed -15- LRB9101697ACmb 1 active duty, retired, or injured emergency medical 2 technicians - ambulance, emergency medical technicians - 3 intermediate, emergency medical technicians - paramedic, 4 ambulance drivers, or other medical assistance or first aid 5 personnel, and before commencing the solicitation or the sale 6 or delivery or the offers to sell or deliver any merchandise, 7 goods, services, memberships, or advertisements, a written 8 contract between the soliciting or selling person and the 9 nongovernmental organization has been entered into. 10 (c-5) No person may solicit financial contributions or 11 sell or deliver or offer to sell or deliver any merchandise, 12 goods, services, memberships, or advertisements on behalf of 13 a department or departments of fire fighters unless that 14 person is actually representing or acting on behalf of the 15 department or departments and has entered into a written 16 contract with the department chief and corporate or municipal 17 authority thereof which specifies and states clearly and 18 fully the purposes for which the proceeds of the 19 solicitation, contribution, or sale will be used. 20 (d) Sentence. False personation, unapproved use of a 21 name or title, or solicitation in violation of subsections 22 (a),and(b), and (b-1) of this Section is a Class C 23 misdemeanor. False personation in violation of subsection 24 (a-5) is a Class A misdemeanor. Engaging in any activity in 25 violation of subsection (c-1), (c-2), (c-3), (c-4), or (c-5) 26 of this Section is a Class 4 felony.Solicitation in27violation of subsection (c) of this Section is a Class A28misdemeanor. A second or subsequent conviction for a29violation of subsection (c) of this Section committed after30the first conviction is a Class 4 felony.31 (Source: P.A. 89-324, eff. 8-13-95.) 32 Section 95. Severability. The provisions of this Act 33 are severable under Section 1.31 of the Statute on Statutes. HB1180 Engrossed -16- LRB9101697ACmb 1 Section 99. Effective date. This Act takes effect upon 2 becoming law.