Judiciary I - Civil Law Committee
Adopted in House Comm. on Mar 14, 2007
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1 | AMENDMENT TO HOUSE BILL 1146
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2 | AMENDMENT NO. ______. Amend House Bill 1146 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The General Not For Profit Corporation Act of | ||||||
5 | 1986 is amended by changing Section 108.70 as follows:
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6 | (805 ILCS 105/108.70) (from Ch. 32, par. 108.70)
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7 | Sec. 108.70. Limited Liability of directors, officers , | ||||||
8 | board members,
and persons who serve without compensation.
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9 | (a) No director or officer serving without compensation, | ||||||
10 | other than
reimbursement for actual expenses, of a corporation | ||||||
11 | organized under this
Act or any predecessor Act and exempt, or | ||||||
12 | qualified for exemption, from
taxation pursuant to Section | ||||||
13 | 501(c) of the Internal Revenue Code of 1986,
as amended, shall | ||||||
14 | be liable, and no cause of action may be brought, for
damages | ||||||
15 | resulting from the exercise of judgment or discretion in | ||||||
16 | connection
with the duties or responsibilities of such director |
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1 | or officer unless the
act or omission involved willful or | ||||||
2 | wanton conduct.
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3 | (b) No director of a corporation organized under this Act
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4 | or any predecessor Act for the purposes identified in items | ||||||
5 | (14), (19),
(21) and (22) of
subsection (a) of Section 103.05 | ||||||
6 | of this Act, and exempt or qualified for
exemption from | ||||||
7 | taxation pursuant to Section 501(c) of the Internal
Revenue | ||||||
8 | Code of 1986, as amended, shall be liable, and no cause of | ||||||
9 | action
may be brought for damages resulting from the exercise | ||||||
10 | of judgment or
discretion in connection with the duties or | ||||||
11 | responsibilities of such
director, unless: (1) such director | ||||||
12 | earns in excess of $5,000 per year from
his duties as director, | ||||||
13 | other than reimbursement for actual expenses; or
(2) the act or | ||||||
14 | omission involved willful or wanton conduct.
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15 | (b-5) Except for willful and wanton conduct, no volunteer | ||||||
16 | board member serving without compensation, other than | ||||||
17 | reimbursement for actual expenses, of a corporation organized | ||||||
18 | under this Act or any predecessor Act and exempt, or qualified | ||||||
19 | for exemption, from taxation pursuant to Section 501(c)(3) of | ||||||
20 | the Internal Revenue Code of 1986, as amended, shall be liable, | ||||||
21 | and no action may be brought, for damages resulting from any | ||||||
22 | action of the executive director concerning the false reporting | ||||||
23 | of or intentional tampering with financial records of the | ||||||
24 | organization, where the actions of the executive director | ||||||
25 | result in legal action.
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26 | This subsection (b-5) shall not apply to any action taken |
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1 | by the Attorney General (i) in the exercise of his or her | ||||||
2 | common law or statutory power and duty to protect charitable | ||||||
3 | assets or (ii) in the exercise of his or her authority to | ||||||
4 | enforce the laws of this State that apply to trustees of a | ||||||
5 | charity, as that term is defined in the Charitable Trust Act | ||||||
6 | and the Solicitation for Charity Act.
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7 | (c) No person who, without compensation other than | ||||||
8 | reimbursement for
actual expenses, renders service to or for a | ||||||
9 | corporation organized under
this Act or any predecessor Act and | ||||||
10 | exempt or qualified for exemption
from taxation pursuant to
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11 | Section 501(c)(3) of the Internal Revenue Code of 1986, as | ||||||
12 | amended, shall
be liable, and no cause of action may be | ||||||
13 | brought, for damages resulting
from an act or omission in | ||||||
14 | rendering such services, unless the act or
omission involved | ||||||
15 | willful or wanton conduct.
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16 | (d) (Blank).
As used in this Section "willful or wanton | ||||||
17 | conduct" means a course
of action which shows an actual or | ||||||
18 | deliberate intention to cause harm or
which, if not | ||||||
19 | intentional, shows an utter indifference to or conscious
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20 | disregard for the safety of others or their property.
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21 | (e) Nothing in this Section is intended to bar any cause of | ||||||
22 | action
against the corporation or change the liability of the | ||||||
23 | corporation arising
out of an act or omission of any director, | ||||||
24 | officer or person exempt from
liability for negligence under | ||||||
25 | this Section.
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26 | (Source: P.A. 87-832.)".
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