Rep. Stephanie A. Kifowit

Filed: 3/14/2023





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2    AMENDMENT NO. ______. Amend House Bill 925 by replacing
3everything after the enacting clause with the following:
4    "Section 1. Short title. This Act may be cited as the
5Veteran Service Organizations State Charter Act.
6    Section 5. State charter. A veteran service organization
7shall be considered state chartered when the organization
8meets all of the requirements listed in this Act and the
9organization's application for state charter status has been
10approved by the Attorney General.
11    Section 15. Granting of state charter status. The Attorney
12General shall grant state charter status to any organization
13that has demonstrated that all requirements for obtaining
14state charter status have been met.



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1    Section 20. State charter requirements. To qualify for
2state charter status, a veteran service organization must:
3        (1) Obtain a legislative endorsement for state charter
4    status from any currently serving member of the General
5    Assembly. Endorsements shall remain valid until there is a
6    revocation of the endorsement or a revocation of the state
7    charter.
8        (2) Possess tax-exempt status from the Internal
9    Revenue Service either under Section 501(c)(3) or Section
10    501(c)(19) of the Internal Revenue Code and have the
11    primary charitable purpose of providing service or
12    assistance to veterans, their spouses, or their
13    dependents.
14        (3) Possess a current certificate of good standing as
15    an Illinois registered not-for-profit organization from
16    the Secretary of State.
17        (4) Obtain and maintain ongoing registration and
18    compliance under the Charitable Trust Act with the
19    Charitable Trust Bureau of the Attorney General's Office
20    or substantiation for an exemption.
21        (5) For organizations with veteran service officers,
22    demonstrate that each veteran service officer possesses a
23    valid U.S. Department of Veterans Affairs accreditation or
24    that such accreditation is pending.
25        (6) Demonstrate completion of Open Meetings Act
26    training in accordance with Section 1.05 of that Act by



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1    providing copies of certificates of completion to the
2    Public Access Counselor of the Office of the Attorney
3    General.
4    Section 25. Application for state charter status. A
5veteran service organization may submit an application for
6state charter status to the Attorney General. All supporting
7documentation demonstrating that each of the requirements
8listed in this Act have been met shall be provided with the
10    Section 30. Attestation of compliance. Any application for
11state charter shall include the following statement, on
12organizational letterhead and signed by all officers: "All
13officers for (insert lawful organizational name) do hereby
14attest that all requirements for a state charter have been
15met, that there are no past or ongoing enforcement actions or
16lawsuits against the organization or any of its officers for
17violations or suspected violations of the Consumer Fraud and
18Deceptive Business Practices Act, the Military Veterans
19Assistance Act, or the Open Meetings Act and that we will
20notify the Attorney General within 30 days if, at any point,
21the organization no longer meets one or more of the
22requirements for state charter status."
23    Section 35. Issuance of state charter status. The Attorney



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1General shall issue a letter granting state charter status
2upon review of any completed application that demonstrates
3that all requirements for state charter status have been met.
4    Section 40. Denial of state charter. The Attorney General
5shall deny an application for state charter status to any
6organization that does not meet all requirements for state
7charter status in Section 20. Any organization whose state
8charter application has been denied may resubmit that
9application once all deficiencies have been corrected.
10    Section 45. Duration of state charter status. State
11charter status shall be valid for 5 years. A veteran service
12organization must reapply for state charter status prior to
13the expiration of its current state charter status.
14    Section 50. Revocation. If the Attorney General is made
15aware, either through notification as provided in Section 30
16or through other information or evidence, that an organization
17that has been granted state charter status no longer meets one
18or more of the requirements of Section 20, the Attorney
19General may revoke the state charter status. Nothing in this
20Section is intended to take away or limit any powers of the
21Attorney General under common law or other statutory law, and
22the Attorney General may, in his or her sole discretion,
23request that a court revoke state charter status based on



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1other conduct not specifically listed in this Section.
2    Section 55. Publication of state chartered veteran service
3organizations. The Attorney General shall maintain a publicly
4accessible list of state chartered organizations.
5    Section 60. Violation. It is a violation of Section 9 of
6the Military Veterans Assistance Act for any person, group, or
7entity to assert state charter status where such status has
8not been granted in accordance with this Act or where such
9status has been revoked.
10    Section 65. Enforcement. If the Attorney General has
11reasonable cause to believe that there is or has been a
12violation of Section 60, then the Attorney General may enforce
13this Act in accordance with Section 9.1 of the Military
14Veterans Assistance Act.
15    Section 70. Remedies. A court in its discretion may grant
16remedies in accordance with Section 9.2 of the Military
17Veterans Assistance Act.
18    Section 75. The Military Veterans Assistance Act is
19amended by changing Sections 9.1 and 9.2 as follows:
20    (330 ILCS 45/9.1)



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1    Sec. 9.1. Violations.
2    (a) If the Attorney General has reasonable cause to
3believe that there is or has been a violation of Section 8 or 9
4or subsection (a), (b), or (c) of Section 10 of this Act or
5Section 60 of the Service Organizations State Charter Act,
6then the Attorney General may commence a civil action in the
7name of the People of the State to enforce the provisions of
8this Act in any appropriate circuit court. The court, in its
9discretion, may exercise all powers necessary, including, but
10not limited to: injunction; mandamus; revocation; forfeiture
11or suspension of any funding, rights, privileges,
12responsibilities, or support, as deemed necessary to ensure
13compliance; and any other action the court may deem
15    (b) Prior to initiating a civil action, the Attorney
16General shall conduct a preliminary investigation to determine
17whether there is reasonable cause to believe that a violation
18is being or has been committed and whether the dispute can be
19resolved without litigation. In conducting this investigation,
20the Attorney General may:
21        (1) require the individual, group, or entity to file a
22    statement or report in writing under oath or otherwise, as
23    to all information the Attorney General may consider
24    necessary;
25        (2) examine under oath any person alleged to have
26    participated in or with knowledge of the alleged



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1    violation;
2        (3) issue subpoenas or conduct hearings in aid of any
3    investigation; or
4        (4) examine any record, book, document, account, or
5    paper as the Attorney General may consider necessary.
6    (c) Service by the Attorney General of any notice
7requiring a person to file a statement or report, or of a
8subpoena upon any person, shall be made:
9        (1) personally by delivery of a duly executed copy
10    thereof to the person to be served or, if a person is not a
11    natural person, in the manner provided by the Code of
12    Civil Procedure when a complaint is filed; or
13        (2) by mailing by certified mail a duly executed copy
14    thereof to the person to be served at the person's last
15    known abode or principal place of business within this
16    State.
17    (d) Whenever any person fails to comply with any subpoena
18issued under this Section or whenever satisfactory copying or
19reproduction of any material requested in an investigation
20cannot be done and the person refuses to surrender the
21material, the Attorney General may file in any appropriate
22circuit court, and serve upon the person, a petition for a
23court order for the enforcement of the subpoena or other
25    Any person who has received a subpoena issued under
26subsection (b) may file in the appropriate circuit court, and



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1serve upon the Attorney General, a petition for a court order
2to modify or set aside the subpoena or other request. The
3petition must be filed either: (1) within 20 days after the
4date of service of the subpoena or at any time before the
5return date specified in the subpoena, whichever date is
6earlier, or (2) within a longer period as may be prescribed in
7writing by the Attorney General.
8    The petition shall specify each ground upon which the
9petitioner relies in seeking relief under this subsection and
10may be based upon any failure of the subpoena to comply with
11the provisions of this Section or upon any constitutional or
12other legal right or privilege of the petitioner. During the
13pendency of the petition in the court, the court may stay, as
14it deems proper, the running of the time allowed for
15compliance with the subpoena or other request, in whole or in
16part, except that the petitioner shall comply with any portion
17of the subpoena or other request not sought to be modified or
18set aside.
19    (e) In the administration of this Act, the Attorney
20General may accept an Assurance of Voluntary Compliance with
21respect to any violation of the Act from any person or entity
22who has engaged in, is engaging in, or was about to engage in
23such violation. Evidence of a violation of an Assurance of
24Voluntary Compliance shall be prima facie evidence of a
25violation of this Act in any subsequent proceeding brought by
26the Attorney General against the alleged violator.



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1(Source: P.A. 102-1132, eff. 2-10-23.)
2    (330 ILCS 45/9.2)
3    Sec. 9.2. Remedies.
4    (a) Whenever the Attorney General has reason to believe
5that any person, group, or entity is violating, has violated,
6or is about to violate Section 8 or 9 or subsection (a), (b),
7or (c) of Section 10 of this Act or any provision of the
8Service Organizations State Charter Act, the Attorney General
9may bring an action in the name of the People of the State
10against the person, group, or entity to restrain by
11preliminary or permanent injunction the use of any practice
12that violates Section 8 or 9 or subsection (a), (b), or (c) of
13Section 10 of this Act or any provision of the Service
14Organizations State Charter Act. In such an action, the court
15may award restitution to recoup the loss of moneys set aside to
16provide services to veterans or any other relief that the
17court deems proper.
18    (b) In addition, the court may assess a civil penalty not
19to exceed $5,000 for each violation of Section 8 or 9 or
20subsection (a), (b), or (c) of Section 10 of this Act or for
21each violation of the Service Organizations State Charter Act.
22    (c) In any action brought under the provisions of Section
238 or 9 or subsection (a), (b), or (c) of Section 10 of this Act
24or under the Service Organizations State Charter Act, the
25Attorney General is entitled to recover costs.



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1    (d) If a court orders a party to make payments to the
2Attorney General and the payments are to be used for the
3operations of the Office of the Attorney General or a party
4agrees, in an out-of-court settlement, to make payment to the
5Attorney General for the operations of the Office of the
6Attorney General, then moneys shall be deposited into the
7Attorney General Court Ordered and Voluntary Compliance
8Payment Projects Fund. Moneys in the Fund shall be used,
9subject to appropriation, for the performance of any function
10pertaining to the exercise of the duties of the Attorney
11General, including, but not limited to, enforcement of any law
12of this State and conducting public education programs.
13However, any moneys in the Fund that are required by the court
14or by an agreement to be used for a particular purpose shall be
15used for that purpose.
16(Source: P.A. 102-1132, eff. 2-10-23.)".