Illinois Compiled Statutes
Information maintained by the Legislative Reference Bureau
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GENERAL PROVISIONS5 ILCS 340/1
(5 ILCS 340/) Voluntary Payroll Deductions Act of 1983.
(5 ILCS 340/1)
(from Ch. 15, par. 501)
This Act shall be known and may be cited as the "Voluntary
Payroll Deductions Act of 1983".
(Source: P.A. 83-843.)
5 ILCS 340/2
(5 ILCS 340/2)
(from Ch. 15, par. 502)
It is the public policy of this State and the
objective of this Act to lessen the burdens of State government and of local
communities in meeting needs of human health and welfare; to provide a
convenient channel through which State employees and State annuitants may
contribute to these efforts; to minimize or eliminate
disruption of the State workplace and costs to State taxpayers that such
fund-raising may entail; to serve needs of human health and welfare; and to
ensure that recipient organizations are responsible in the uses of the moneys
(Source: P.A. 90-487, eff. 8-17-97; 91-896, eff. 7-6-00.)
5 ILCS 340/3
(5 ILCS 340/3)
(from Ch. 15, par. 503)
As used in this Act unless the context otherwise
(a) "Employee" means any regular officer or employee who receives salary
or wages for personal services rendered to the State of Illinois, and
includes an individual hired as an employee by contract with that individual.
(b) "Qualified organization" means an organization representing one or
more benefiting agencies, which organization is designated by the State
Comptroller as qualified to receive payroll deductions under this Act.
An organization desiring to be designated as a qualified organization shall:
(1) Submit written or electronic designations on
forms approved by the State Comptroller by 500 or more employees or State annuitants, in which such employees or State annuitants indicate that the organization is one for which the employee or State annuitant intends to authorize withholding. The forms shall require the name, last 4 digits only of the social security number, and employing State agency for each employee. Upon notification by the Comptroller that such forms have been approved, the organization shall, within 30 days, notify in writing the Governor or his or her designee of its intention to obtain the required number of designations. Such organization shall have 12 months from that date to obtain the necessary designations and return to the State Comptroller's office the completed designations, which shall be subject to verification procedures established by the State Comptroller;
(2) Certify that all benefiting agencies are tax
exempt under Section 501(c)(3) of the Internal Revenue Code;
(3) Certify that all benefiting agencies are in
compliance with the Illinois Human Rights Act;
(4) Certify that all benefiting agencies are in
compliance with the Charitable Trust Act and the Solicitation for Charity Act;
(5) Certify that all benefiting agencies actively
conduct health or welfare programs and provide services to individuals directed at one or more of the following common human needs within a community: service, research, and education in the health fields; family and child care services; protective services for children and adults; services for children and adults in foster care; services related to the management and maintenance of the home; day care services for adults; transportation services; information, referral and counseling services; services to eliminate illiteracy; the preparation and delivery of meals; adoption services; emergency shelter care and relief services; disaster relief services; safety services; neighborhood and community organization services; recreation services; social adjustment and rehabilitation services; health support services; or a combination of such services designed to meet the special needs of specific groups, such as children and youth, the ill and infirm, and persons with physical disabilities; and that all such benefiting agencies provide the above described services to individuals and their families in the community and surrounding area in which the organization conducts its fund drive, or that such benefiting agencies provide relief to victims of natural disasters and other emergencies on a where and as needed basis;
(6) Certify that the organization has disclosed the
percentage of the organization's total collected receipts from employees or State annuitants that are distributed to the benefiting agencies and the percentage of the organization's total collected receipts from employees or State annuitants that are expended for fund-raising and overhead costs. These percentages shall be the same percentage figures annually disclosed by the organization to the Attorney General. The disclosure shall be made to all solicited employees and State annuitants and shall be in the form of a factual statement on all petitions and in the campaign's brochures for employees and State annuitants;
(7) Certify that all benefiting agencies receiving
funds which the employee or State annuitant has requested or designated for distribution to a particular community and surrounding area use a majority of such funds distributed for services in the actual provision of services in that community and surrounding area;
(8) Certify that neither it nor its member
organizations will solicit State employees for contributions at their workplace, except pursuant to this Act and the rules promulgated thereunder. Each qualified organization, and each participating United Fund, is encouraged to cooperate with all others and with all State agencies and educational institutions so as to simplify procedures, to resolve differences and to minimize costs;
(9) Certify that it will pay its share of the
campaign costs and will comply with the Code of Campaign Conduct as approved by the Governor or other agency as designated by the Governor; and
(10) Certify that it maintains a year-round office,
the telephone number, and person responsible for the operations of the organization in Illinois. That information shall be provided to the State Comptroller at the time the organization is seeking participation under this Act.
Each qualified organization shall submit to the State Comptroller between
January 1 and March 1 of each year, a statement that the organization is in
compliance with all of the requirements set forth in paragraphs (2) through
(10). The State Comptroller shall exclude any organization that fails to
submit the statement from the next solicitation period.
In order to be designated as a qualified organization, the organization shall
have existed at least 2 years prior to submitting the written or electronic designation forms
required in paragraph (1) and shall certify to the State Comptroller that such
organization has been providing services described in paragraph (5) in
Illinois. If the organization seeking designation represents more than one
benefiting agency, it need not have existed for 2 years but shall certify to
the State Comptroller that each of its benefiting agencies has existed for at
least 2 years prior to submitting the written or electronic designation forms required in
paragraph (1) and that each has been providing services described in paragraph
(5) in Illinois.
Organizations which have met the requirements of this Act shall be
permitted to participate in the State and Universities Combined Appeal as
of January 1st of the year immediately following their approval by the
Where the certifications described in paragraphs (2), (3), (4),
(5), (6), (7), (8), (9), and (10) above are made by an organization
representing more than
one benefiting agency they shall be based upon the knowledge and belief of
such qualified organization. Any qualified organization shall immediately
notify the State Comptroller in writing if the qualified organization
receives information or otherwise believes that a benefiting agency is no
longer in compliance with the certification of the qualified organization.
A qualified organization representing more than one benefiting agency shall
thereafter withhold and refrain from distributing to such benefiting agency
those funds received pursuant to this Act until the benefiting agency is
again in compliance with the qualified organization's certification. The
qualified organization shall immediately notify the State Comptroller of
the benefiting agency's resumed compliance with the certification, based
upon the qualified organization's knowledge and belief, and shall pay over
to the benefiting agency those funds previously withheld.
In order to qualify, a qualified organization must receive 250 deduction pledges from the immediately preceding solicitation period as set forth in Section 6. The Comptroller shall, by February 1st of each year, so notify any
qualified organization that failed to receive the minimum deduction requirement. The notification shall give such qualified
organization until March 1st to provide the Comptroller with documentation
that the minimum deduction requirement has been met. On the basis of all the
documentation, the Comptroller shall, by March 15th of each year, submit to
the Governor or his or her designee, or such other agency as may be
determined by the Governor, a list of all organizations which have met the minimum
payroll deduction requirement. Only those organizations which have met such
requirements, as well as the other requirements of this Section, shall be
permitted to solicit State employees or State annuitants for voluntary
contributions, and the Comptroller shall discontinue withholding for any
such organization which fails to meet these requirements, except qualified organizations that received deduction pledges during the 2004 solicitation period are deemed to be qualified for the 2005 solicitation period.
(c) "United Fund" means the organization conducting the single, annual,
consolidated effort to secure funds for distribution to agencies engaged
in charitable and public health, welfare and services purposes, which is
commonly known as the United Fund, or the organization which serves in place
of the United Fund organization in communities where an organization known
as the United Fund is not organized.
In order for a United Fund to participate in the State and Universities
Employees Combined Appeal, it shall comply with the provisions of paragraph (9)
of subsection (b).
(d) "State and Universities Employees Combined Appeal",
otherwise known as "SECA", means the State-directed joint effort of all of the
qualified organizations, together with the United Funds, for the solicitation
of voluntary contributions from State and University employees and State
(e) "Retirement system" means any or all of the following: the General
Assembly Retirement System, the State Employees' Retirement System of Illinois,
the State Universities Retirement System, the Teachers' Retirement System of
the State of Illinois, and the Judges Retirement System.
(f) "State annuitant" means a person receiving an annuity or disability
benefit under Article 2, 14, 15, 16, or 18 of the Illinois Pension Code.
(Source: P.A. 99-143, eff. 7-27-15.)
5 ILCS 340/4
(5 ILCS 340/4)
(from Ch. 15, par. 504)
An employee may authorize the withholding
of a portion of his or her salary or wages for contribution to a maximum
number of 4 organizations described in paragraphs (b) and (c) of Section 3 of
this Act. A department, board, body, agency or commission may direct the State
Comptroller to deduct, and the University of Illinois, Southern Illinois
University, Chicago State University, Eastern Illinois University, Governors
State University, Illinois State University, Northeastern Illinois University,
Northern Illinois University, and Western Illinois University may deduct, upon
written request of a State employee, for each regular payroll period, from the
salary or wages of the employee the amount specified in the written request for
payment to the organization designated by the employee. The moneys so deducted
shall be paid over promptly to the organizations designated by the employee by
means of warrants drawn by the State Comptroller, the University of Illinois,
Southern Illinois University, Chicago State University, Eastern Illinois
University, Governors State University, Illinois State University, Northeastern
Illinois University, Northern Illinois University, and Western Illinois
University, against the appropriation for personal services of the department,
board, body, agency or commission by which such employee is employed.
Such deductions may be made notwithstanding that the compensation paid
in cash to such employee is thereby reduced below the minimum prescribed
by law. Payment to such employee of compensation less such deduction shall
constitute a full and complete discharge and acquittance of all claims and
demands whatsoever for the services rendered by such employee during the
period covered by such payment.
Such request for deduction may be withdrawn at any time by filing a
written notification of withdrawal with the department, board, body, agency
the University of Illinois,
Southern Illinois University,
Chicago State University,
Eastern Illinois University,
Governors State University,
Illinois State University,
Northeastern Illinois University,
Northern Illinois University,
or Western Illinois University,
by which such employee is employed.
(Source: P.A. 91-896, eff. 7-6-00.)
5 ILCS 340/4.5
(5 ILCS 340/4.5)
State annuitant withholding.
A State annuitant may authorize
the withholding of a portion of his or her annuity or disability benefit for
contribution to a maximum of 4 organizations described in paragraphs (b) and
(c) of Section 3 of this Act. Upon written request of a State annuitant, a
retirement system may deduct or direct the State Comptroller to deduct from
the annuity or disability benefit of the State annuitant the amount specified
in the written request for payment to the organization designated by the State
annuitant. The retirement system may determine the timing for the deductions
based on the retirement system's benefit processing schedule. The moneys so
deducted shall be paid over promptly to the organizations designated by the
State annuitant by means of warrants drawn by the retirement system or the
State Comptroller against the fund from which the State annuitant is receiving
his or her annuity or disability benefit.
Withholding under this Section may be terminated by the State annuitant
at any time by filing a written direction with the retirement system.
Each retirement system may promulgate rules regarding the administration of
this Section with respect to persons receiving an annuity or disability benefit
from the retirement system.
(Source: P.A. 91-896, eff. 7-6-00.)
5 ILCS 340/5
(5 ILCS 340/5)
(from Ch. 15, par. 505)
Rules; Advisory Committee.
The State Comptroller shall
promulgate and issue reasonable rules and regulations as deemed necessary for
the administration of this Act.
However, all solicitations of State employees for contributions at their
workplace and all solicitations of State annuitants for contributions
shall be in accordance with rules promulgated by the Governor or his
or her designee or other agency as may be designated by the Governor.
All solicitations of State annuitants for contributions shall also be in
accordance with the rules promulgated by the applicable retirement system.
The rules promulgated by the Governor or his or her designee or other
agency as designated by the Governor shall include a Code of Campaign Conduct
that all qualified organizations and United Funds shall subscribe to in
writing, sanctions for violations of the Code of Campaign Conduct,
provision for the handling of cash contributions, provision for an Advisory
Committee, provisions for the allocation of expenses among the participating
organizations, an organizational plan and structure whereby responsibilities
are set forth for the appropriate State employees or State annuitants and
the participating organizations, and any other matters that are necessary to
accomplish the purposes of this Act.
The Governor or the Governor's designee shall promulgate rules to establish
the composition and the duties of the Advisory Committee. The Governor or the
Governor's designee shall make appointments to the Advisory Committee. The
powers of the Advisory Committee shall include, at a minimum, the ability to
impose the sanctions authorized by rule. Each State agency and each
retirement system shall file an annual report that sets
forth, for the prior calendar year, (i) the total amount of money
contributed to each qualified organization and united fund through both
payroll deductions and cash contributions, (ii) the number of employees or
State annuitants who have contributed to each qualified organization and
united fund, and (iii) any other information required by the rules. The report
shall not include the names of any contributing or non-contributing employees
or State annuitants. The report shall be filed with the
Advisory Committee no later than March 15. The report shall be available for
Other constitutional officers, retirement systems, the University of
Illinois, Southern Illinois University, Chicago State University, Eastern
Illinois University, Governors State University, Illinois State University,
Northeastern Illinois University, Northern Illinois University, and Western
Illinois University shall be governed by the rules promulgated pursuant to this
Section, unless such entities adopt their own rules governing solicitation of
contributions at the workplace.
All rules promulgated pursuant to this Section shall not discriminate
against one or more qualified organizations or United Funds.
(Source: P.A. 90-799, eff. 6-1-99; 91-896, eff. 7-6-00.)
5 ILCS 340/6
(5 ILCS 340/6)
(from Ch. 15, par. 506)
Pursuant to the provision of Section 5, rules shall be promulgated
which establish a period between September 1 and November 30 during which all
qualified organizations and United Funds shall be permitted to solicit State
employees for voluntary contributions at their places of work. However, State
and university employees hired at any time after the official 8-week campaign
period may make voluntary contributions through payroll withholding. The
informational materials from the immediately prior SECA campaign period may be
provided to each such employee. No organization shall solicit State employees
for contributions at their places of work, except pursuant to the provisions of
this Act and the rules promulgated thereunder.
(Source: P.A. 93-238, eff. 7-22-03.)
5 ILCS 340/7
(5 ILCS 340/7)
(from Ch. 15, par. 507)
Notwithstanding any other provision of this Act, a
participating organization or a United Fund may be denied participation in
SECA for willful failure to comply with the provisions of paragraph (9) of
subsection (b) of Section 3 of this Act. The agency designated by the
Governor under paragraph (9) of subsection (b) of Section 3 of this Act
shall adopt rules
providing for procedures for review by the agency of alleged violations of that
paragraph and appropriate remedial sanctions for noncompliance. The rules
shall include an appeal procedure for any affected participating organization
or United Fund. The agency designated by the Governor shall notify the
Comptroller immediately of any final decision to remove a qualified
organization or United Fund from participation in SECA.
(Source: P.A. 91-357, eff. 7-29-99.)
5 ILCS 340/8
(5 ILCS 340/8)
(a) The Comptroller shall annually prepare a report on the number of
State and university employees and State annuitants who have contributed to
qualified organizations and united funds under this Act during the prior
calendar year. The report shall set forth (i) the number of payroll
deductions received by each qualified organization and united fund, (ii) the
total amount of the contributions received by each qualified organization and
united fund, and (iii) the State agencies, universities, and
retirement systems from which the contributions were received. The report
shall be prepared no later than April 1 of each year and shall be available to
the public upon request.
(b) By March 1 of each year, each university shall submit to the
Comptroller a report containing the information required for the preparation
of the Comptroller's report under subsection (a) with respect to that
university and its employees.
(c) By March 1 of each year, each retirement system shall submit to the
Comptroller a report containing the information required for the preparation of
the Comptroller's report under subsection (a) with respect to that retirement
system and its participating State annuitants. The Comptroller may waive this
reporting requirement for any retirement system if the Comptroller performs the
retirement processing for the retirement system.
(Source: P.A. 90-799, eff. 6-1-99; 91-896, eff. 7-6-00.)