HB0925ham001 103RD GENERAL ASSEMBLY

Rep. Stephanie A. Kifowit

Filed: 3/14/2023

10300HB0925ham001 LRB103 04531 KTG 57390 a

AMENDMENT TO HOUSE BILL 925

AMENDMENT NO. ______. Amend House Bill 925 by replacing everything after the enacting clause with the following:

"Section 1. Short title. This Act may be cited as the Veteran Service Organizations State Charter Act.

Section 5. State charter. A veteran service organization shall be considered state chartered when the organization meets all of the requirements listed in this Act and the organization's application for state charter status has been approved by the Attorney General.

Section 15. Granting of state charter status. The Attorney General shall grant state charter status to any organization that has demonstrated that all requirements for obtaining state charter status have been met.

Section 20. State charter requirements. To qualify for state charter status, a veteran service organization must:

(1) Obtain a legislative endorsement for state charter status from any currently serving member of the General Assembly. Endorsements shall remain valid until there is a revocation of the endorsement or a revocation of the state charter.

(2) Possess tax-exempt status from the Internal Revenue Service either under Section 501(c)(3) or Section 501(c)(19) of the Internal Revenue Code and have the primary charitable purpose of providing service or assistance to veterans, their spouses, or their dependents.

(3) Possess a current certificate of good standing as an Illinois registered not-for-profit organization from the Secretary of State.

(4) Obtain and maintain ongoing registration and compliance under the Charitable Trust Act with the Charitable Trust Bureau of the Attorney General's Office or substantiation for an exemption.

(5) For organizations with veteran service officers, demonstrate that each veteran service officer possesses a valid U.S. Department of Veterans Affairs accreditation or that such accreditation is pending.

(6) Demonstrate completion of Open Meetings Act training in accordance with Section 1.05 of that Act by providing copies of certificates of completion to the Public Access Counselor of the Office of the Attorney General.

Section 25. Application for state charter status. A veteran service organization may submit an application for state charter status to the Attorney General. All supporting documentation demonstrating that each of the requirements listed in this Act have been met shall be provided with the application.

Section 30. Attestation of compliance. Any application for state charter shall include the following statement, on organizational letterhead and signed by all officers: "All officers for (insert lawful organizational name) do hereby attest that all requirements for a state charter have been met, that there are no past or ongoing enforcement actions or lawsuits against the organization or any of its officers for violations or suspected violations of the Consumer Fraud and Deceptive Business Practices Act, the Military Veterans Assistance Act, or the Open Meetings Act and that we will notify the Attorney General within 30 days if, at any point, the organization no longer meets one or more of the requirements for state charter status."

Section 35. Issuance of state charter status. The Attorney General shall issue a letter granting state charter status upon review of any completed application that demonstrates that all requirements for state charter status have been met.

Section 40. Denial of state charter. The Attorney General shall deny an application for state charter status to any organization that does not meet all requirements for state charter status in Section 20. Any organization whose state charter application has been denied may resubmit that application once all deficiencies have been corrected.

Section 45. Duration of state charter status. State charter status shall be valid for 5 years. A veteran service organization must reapply for state charter status prior to the expiration of its current state charter status.

Section 50. Revocation. If the Attorney General is made aware, either through notification as provided in Section 30 or through other information or evidence, that an organization that has been granted state charter status no longer meets one or more of the requirements of Section 20, the Attorney General may revoke the state charter status. Nothing in this Section is intended to take away or limit any powers of the Attorney General under common law or other statutory law, and the Attorney General may, in his or her sole discretion, request that a court revoke state charter status based on other conduct not specifically listed in this Section.

Section 55. Publication of state chartered veteran service organizations. The Attorney General shall maintain a publicly accessible list of state chartered organizations.

Section 60. Violation. It is a violation of Section 9 of the Military Veterans Assistance Act for any person, group, or entity to assert state charter status where such status has not been granted in accordance with this Act or where such status has been revoked.

Section 65. Enforcement. If the Attorney General has reasonable cause to believe that there is or has been a violation of Section 60, then the Attorney General may enforce this Act in accordance with Section 9.1 of the Military Veterans Assistance Act.

Section 70. Remedies. A court in its discretion may grant remedies in accordance with Section 9.2 of the Military Veterans Assistance Act.

Section 75. The Military Veterans Assistance Act is amended by changing Sections 9.1 and 9.2 as follows:

(330 ILCS 45/9.1)

Sec. 9.1. Violations.

(a) If the Attorney General has reasonable cause to believe that there is or has been a violation of Section 8 or 9 or subsection (a), (b), or (c) of Section 10 of this Act or Section 60 of the Service Organizations State Charter Act, then the Attorney General may commence a civil action in the name of the People of the State to enforce the provisions of this Act in any appropriate circuit court. The court, in its discretion, may exercise all powers necessary, including, but not limited to: injunction; mandamus; revocation; forfeiture or suspension of any funding, rights, privileges, responsibilities, or support, as deemed necessary to ensure compliance; and any other action the court may deem appropriate.

(b) Prior to initiating a civil action, the Attorney General shall conduct a preliminary investigation to determine whether there is reasonable cause to believe that a violation is being or has been committed and whether the dispute can be resolved without litigation. In conducting this investigation, the Attorney General may:

(1) require the individual, group, or entity to file a statement or report in writing under oath or otherwise, as to all information the Attorney General may consider necessary;

(2) examine under oath any person alleged to have participated in or with knowledge of the alleged violation;

(3) issue subpoenas or conduct hearings in aid of any investigation; or

(4) examine any record, book, document, account, or paper as the Attorney General may consider necessary.

(c) Service by the Attorney General of any notice requiring a person to file a statement or report, or of a subpoena upon any person, shall be made:

(1) personally by delivery of a duly executed copy thereof to the person to be served or, if a person is not a natural person, in the manner provided by the Code of Civil Procedure when a complaint is filed; or

(2) by mailing by certified mail a duly executed copy thereof to the person to be served at the person's last known abode or principal place of business within this State.

(d) Whenever any person fails to comply with any subpoena issued under this Section or whenever satisfactory copying or reproduction of any material requested in an investigation cannot be done and the person refuses to surrender the material, the Attorney General may file in any appropriate circuit court, and serve upon the person, a petition for a court order for the enforcement of the subpoena or other request.

Any person who has received a subpoena issued under subsection (b) may file in the appropriate circuit court, and serve upon the Attorney General, a petition for a court order to modify or set aside the subpoena or other request. The petition must be filed either: (1) within 20 days after the date of service of the subpoena or at any time before the return date specified in the subpoena, whichever date is earlier, or (2) within a longer period as may be prescribed in writing by the Attorney General.

The petition shall specify each ground upon which the petitioner relies in seeking relief under this subsection and may be based upon any failure of the subpoena to comply with the provisions of this Section or upon any constitutional or other legal right or privilege of the petitioner. During the pendency of the petition in the court, the court may stay, as it deems proper, the running of the time allowed for compliance with the subpoena or other request, in whole or in part, except that the petitioner shall comply with any portion of the subpoena or other request not sought to be modified or set aside.

(e) In the administration of this Act, the Attorney General may accept an Assurance of Voluntary Compliance with respect to any violation of the Act from any person or entity who has engaged in, is engaging in, or was about to engage in such violation. Evidence of a violation of an Assurance of Voluntary Compliance shall be prima facie evidence of a violation of this Act in any subsequent proceeding brought by the Attorney General against the alleged violator.

(Source: P.A. 102-1132, eff. 2-10-23.)

(330 ILCS 45/9.2)

Sec. 9.2. Remedies.

(a) Whenever the Attorney General has reason to believe that any person, group, or entity is violating, has violated, or is about to violate Section 8 or 9 or subsection (a), (b), or (c) of Section 10 of this Act or any provision of the Service Organizations State Charter Act, the Attorney General may bring an action in the name of the People of the State against the person, group, or entity to restrain by preliminary or permanent injunction the use of any practice that violates Section 8 or 9 or subsection (a), (b), or (c) of Section 10 of this Act or any provision of the Service Organizations State Charter Act. In such an action, the court may award restitution to recoup the loss of moneys set aside to provide services to veterans or any other relief that the court deems proper.

(b) In addition, the court may assess a civil penalty not to exceed $5,000 for each violation of Section 8 or 9 or subsection (a), (b), or (c) of Section 10 of this Act or for each violation of the Service Organizations State Charter Act.

(c) In any action brought under the provisions of Section 8 or 9 or subsection (a), (b), or (c) of Section 10 of this Act or under the Service Organizations State Charter Act, the Attorney General is entitled to recover costs.

(d) If a court orders a party to make payments to the Attorney General and the payments are to be used for the operations of the Office of the Attorney General or a party agrees, in an out-of-court settlement, to make payment to the Attorney General for the operations of the Office of the Attorney General, then moneys shall be deposited into the Attorney General Court Ordered and Voluntary Compliance Payment Projects Fund. Moneys in the Fund shall be used, subject to appropriation, for the performance of any function pertaining to the exercise of the duties of the Attorney General, including, but not limited to, enforcement of any law of this State and conducting public education programs. However, any moneys in the Fund that are required by the court or by an agreement to be used for a particular purpose shall be used for that purpose.

(Source: P.A. 102-1132, eff. 2-10-23.)".