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90_SB0537eng
5 ILCS 340/2 from Ch. 15, par. 502
5 ILCS 340/3 from Ch. 15, par. 503
Amends the Voluntary Payroll Deduction Act of 1983.
Provides that the forms on which an employee indicates that
the organization is one for which the employee intends to
authorize withholding shall require the name, social security
number, and employing State agency and that the signed forms
and signatures are subject to verification by the State
Comptroller. Requires a "qualified organization" to certify
that it maintains a year-round office, phone number, and
person responsible for the operations of the organization in
Illinois and provide an annual audit, Internal Revenue
Service Form 990 covering the same period as the submitted
audit, and an annual report of the organization's activities,
current to within 12 months of the organization's fiscal
year. Requires each qualified organization to submit to the
State Comptroller between January 1 and March 1 of each year,
a statement that the organization is in compliance with the
qualified organization requirements. Provides that failure to
submit the statement shall result in the State Comptroller
excluding the organization from the next solicitation period.
Effective immediately.
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1 AN ACT to amend the Voluntary Payroll Deduction Act by
2 changing Sections 2 and 3.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Voluntary Payroll Deductions Act of 1983
6 is amended by changing Sections 2 and 3 as follows:
7 (5 ILCS 340/2) (from Ch. 15, par. 502)
8 Sec. 2. Public policy. It is the public policy of this
9 State and the objective of this Act to lessen the burdens of
10 State government and of local communities in meeting needs of
11 human health and welfare; to provide a convenient channel
12 through which State public servants may contribute to these
13 efforts; to minimize or eliminate disruption of the State
14 workplace and costs to State taxpayers that such fund-raising
15 may entail; to serve needs of human health and welfare; and
16 to ensure that recipient organizations agencies are
17 responsible in the uses of the moneys so raised.
18 (Source: P.A. 83-843.)
19 (5 ILCS 340/3) (from Ch. 15, par. 503)
20 Sec. 3. Definitions. As used in this Act unless the
21 context otherwise requires:
22 (a) "Employee" means any regular officer or employee who
23 receives salary or wages for personal services rendered to
24 the State of Illinois.
25 (b) "Qualified organization" means an organization
26 representing one or more benefiting agencies, which
27 organization is designated by the State Comptroller as
28 qualified to receive payroll deductions under this Act. An
29 organization desiring to be designated as a qualified
30 organization shall:
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1 (1) Submit written designations on forms approved
2 by the State Comptroller by 4,000 or more employees, in
3 which such employees indicate that the organization is
4 one for which the employee intends to authorize
5 withholding. The forms shall require the name, social
6 security number, and employing State agency for each
7 employee. Upon notification by the Comptroller that such
8 forms have been approved, the organization shall, within
9 30 days, notify in writing the Governor or his designee
10 of its intention to obtain the required number of
11 designations. Such organization shall have 12 months
12 from that date, to obtain the necessary designations. The
13 signed forms and signatures on the forms shall be subject
14 to verification by the State Comptroller;
15 (2) Certify that all benefiting agencies are tax
16 exempt under Section 501 (c)(3) of the Internal Revenue
17 Code;
18 (3) Certify that all benefiting agencies are in
19 compliance with the Illinois Human Rights Act;
20 (4) Certify that all benefiting agencies are in
21 compliance with the Charitable Trust Act and the
22 Solicitation for Charity Act;
23 (5) Certify that all benefiting agencies actively
24 conduct health or welfare programs and provide services
25 to individuals directed at one or more of the following
26 common human needs within a community: service, research,
27 and education in the health fields; family and child care
28 services; protective services for children and adults;
29 services for children and adults in foster care; services
30 related to the management and maintenance of the home;
31 day care services for adults; transportation services;
32 information, referral and counseling services; services
33 to eliminate illiteracy; the preparation and delivery of
34 meals; adoption services; emergency shelter care and
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1 relief services; disaster relief services; safety
2 services; neighborhood and community organization
3 services; recreation services; social adjustment and
4 rehabilitation services; health support services; or a
5 combination of such services designed to meet the special
6 needs of specific groups, such as children and youth, the
7 ill and infirm, and the physically handicapped; and that
8 all such benefiting agencies provide the above described
9 services to individuals and their families in the
10 community and surrounding area in which the organization
11 conducts its fund drive, or that such benefiting agencies
12 provide relief to victims of natural disasters and other
13 emergencies on a where and as needed basis;
14 (6) Certify that the organization has disclosed the
15 percentage of the organization's total collected receipts
16 from employees that are distributed to the benefiting
17 agencies and the percentage of the organization's total
18 collected receipts from employees that are expended for
19 fund-raising and overhead costs. These percentages shall
20 be the same percentage figures annually disclosed by the
21 organization to the Attorney General. The disclosure
22 shall be made to all solicited employees and shall be in
23 the form of a factual statement on all petitions and in
24 the campaign's employee brochure;
25 (7) Certify that all benefiting agencies receiving
26 funds which the employee has requested or designated for
27 distribution to a particular community and surrounding
28 area use a majority of such funds distributed for
29 services in the actual provision of services in that
30 community and surrounding area;
31 (8) Certify that neither it nor its member
32 organizations will solicit State employees for
33 contributions at their workplace, except pursuant to this
34 Act and the rules promulgated thereunder. Each qualified
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1 organization, and each participating United Fund, is
2 encouraged to cooperate with all others and with all
3 State agencies and educational institutions so as to
4 simplify procedures, to resolve differences and to
5 minimize costs; and
6 (9) Certify that it will pay its share of the
7 campaign costs and will comply with the Code of Campaign
8 Conduct as approved by the Governor or other agency as
9 designated by the Governor;.
10 (10) Certify that it maintains a year-round office,
11 the telephone number, and person responsible for the
12 operations of the organization in Illinois. That
13 information shall be provided to the State Comptroller at
14 the time the organization is seeking participation under
15 this Act; and
16 (11) Provide (i) an annual audit, in conformance
17 with generally accepted accounting procedures and current
18 to within 18 months of the organization's fiscal
19 year-end, (ii) Internal Revenue Service Form 990 covering
20 the same period as the submitted audit, and (iii) an
21 annual report of the organization's activities, current
22 to within 12 months of the organization's fiscal year. If
23 a qualifying organization represents more than one
24 benefiting agency, it shall also certify that the
25 documentation required by this paragraph is on file for
26 those agencies. The Comptroller is authorized to request
27 documentation of the qualifying organization for any or
28 all of the benefiting agencies upon written request. The
29 qualifying organization shall have 10 business days to
30 respond after it receives the request.
31 Each qualified organization shall submit to the State
32 Comptroller between January 1 and March 1 of each year, a
33 statement that the organization is in compliance with all of
34 the requirements set forth in paragraphs (2) through (11).
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1 The State Comptroller shall exclude any organization that
2 fails to submit the statement from the next solicitation
3 period.
4 In order to be designated as a qualified, an
5 organization, the organization shall have existed at least 2
6 years prior to submitting the written designation forms
7 required in paragraph (1) and shall certify to the State
8 Comptroller that such organization has been providing
9 services described in paragraph (5) in Illinois. If the
10 organization seeking designation represents more than one
11 benefiting agency, it need not have existed for 2 years but
12 shall certify to the State Comptroller that each of its
13 benefiting agencies has existed for at least 2 years prior to
14 submitting the written designation forms required in
15 paragraph (1) and that each has been providing services
16 described in paragraph (5) in Illinois.
17 Organizations which have met the requirements of this Act
18 shall be permitted to participate in the State and
19 Universities Combined Appeal as of January 1st of the year
20 immediately following their approval by the Comptroller.
21 Where the certifications described in paragraphs 2, 3, 4,
22 5, 6, 7, 8, and 9, 10, and 11 above are made by an
23 organization representing more than one benefiting agency
24 they shall be based upon the knowledge and belief of such
25 qualified organization. Any qualified organization shall
26 immediately notify the State Comptroller in writing if the
27 qualified organization receives information or otherwise
28 believes that a benefiting agency is no longer in compliance
29 with the certification of the qualified organization. A
30 qualified organization representing more than one benefiting
31 agency shall thereafter withhold and refrain from
32 distributing to such benefiting agency those funds received
33 pursuant to this Act until the benefiting agency is again in
34 compliance with the qualified organization's certification.
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1 The qualified organization shall immediately notify the State
2 Comptroller of the benefiting agency's resumed compliance
3 with the certification, based upon the qualified
4 organization's knowledge and belief, and shall pay over to
5 the benefiting agency those funds previously withheld.
6 The Comptroller shall, by February 1st of each year, so
7 notify any qualified organization that failed to receive at
8 least 500 payroll deduction pledges deductions during the
9 solicitation period ending May 1, 1990, and thereafter during
10 each immediately preceding solicitation period as set forth
11 in Section 6. The notification shall give such qualified
12 organization until March 1st to provide the Comptroller with
13 documentation that the 500 deduction requirement has been
14 met. On the basis of all the documentation, the Comptroller
15 shall, by March 15th of each year, submit to the Governor or
16 his designee, or such other agency as may be determined by
17 the Governor, a list of all organizations which have met the
18 500 payroll deduction requirement. Only those organizations
19 which have met such requirements, as well as the other
20 requirements of this Section, shall be permitted to solicit
21 State employees for voluntary contributions and the
22 Comptroller shall discontinue withholding for any such
23 organization which fails to meet these requirements.
24 (c) "United Fund" means the organization conducting the
25 single, annual, consolidated effort to secure funds for
26 distribution to agencies engaged in charitable and public
27 health, welfare and services purposes, which is commonly
28 known as the United Fund, or the organization which serves in
29 place of the United Fund organization in communities where an
30 organization known as the United Fund is not organized.
31 (d) "State and Universities Employees Combined Appeal"
32 (SECA), otherwise known as "SECA", means the State-directed
33 joint effort of all of the qualified organizations, together
34 with the United Funds, for the solicitation of voluntary
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1 contributions from State and University employees.
2 In order for a United Fund to participate in the State
3 and Universities Employees Combined Appeal, it shall comply
4 with the provisions of Section 3, paragraph (9).
5 (Source: P.A. 87-1053; 88-243.)
6 Section 99. Effective date. This Act takes effect upon
7 becoming law.