Rep. Sidney H. Mathias

Filed: 3/15/2011

 

 


 

 


 
09700HB2228ham001LRB097 08135 AJO 52567 a

1
AMENDMENT TO HOUSE BILL 2228

2    AMENDMENT NO. ______. Amend House Bill 2228 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Charitable Trust Act is amended by changing
5Section 7 as follows:
 
6    (760 ILCS 55/7)  (from Ch. 14, par. 57)
7    Sec. 7. (a) Except as otherwise provided, every trustee
8subject to this Act shall, in addition to filing copies of the
9instruments previously required, file with the Attorney
10General periodic annual written reports under oath, setting
11forth information as to the nature of the assets held for
12charitable purposes and the administration thereof by the
13trustee, in accordance with rules and regulations of the
14Attorney General.
15    (b) The Attorney General shall make rules and regulations
16as to the time for filing reports, the contents thereof, and

 

 

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1the manner of executing and filing them. These rules shall take
2account of the mandates imposed upon charitable trusts by the
3Internal Revenue Code, and shall, to the maximum extent
4possible, chronologically reconcile the filing dates of the
5periodic reporting requirements imposed upon charitable
6trustees by federal and State law. He or she may classify
7trusts and other relationships concerning property held for a
8charitable purpose as to purpose, nature of assets, duration of
9the trust or other relationship, amount of assets, amounts to
10be devoted to charitable purposes, nature of trustee, or
11otherwise, and may establish different rules for the different
12classes as to time and nature of the reports required to the
13ends (1) that he or she shall receive reasonably current,
14annual reports as to all charitable trusts or other
15relationships of a similar nature, which will enable him or her
16to ascertain whether they are being properly administered, and
17(2) that periodic reports shall not unreasonably add to the
18expense of the administration of charitable trusts and similar
19relationships. The Attorney General may suspend the filing of
20reports as to a particular charitable trust or relationship for
21a reasonable, specifically designated time upon written
22application of the trustee filed with the Attorney General and
23after the Attorney General has filed in the register of
24charitable trusts a written statement that the interests of the
25beneficiaries will not be prejudiced thereby and that periodic
26reports are not required for proper supervision by his or her

 

 

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1office.
2    (c) A copy of an account filed by the trustee in any court
3having jurisdiction of the trust or other relationship, if the
4account has been approved by the court in which it was filed
5and notice given to the Attorney General as an interested
6party, may be filed as a report required by this Section.
7    (d) The first report for a trust or similar relationship
8hereafter established, unless the filing thereof is suspended
9as herein provided, shall be filed not later than one year
10after any part of the income or principal is authorized or
11required to be applied to a charitable purpose. If any part of
12the income or principal of a trust previously established is
13authorized or required to be applied to a charitable purpose at
14the time this Act takes effect, the first report, unless the
15filing thereof is suspended, shall be filed within 6 months
16after the effective date of this Act. In addition, every
17trustee registered hereunder that received more than $25,000 in
18revenue during a trust fiscal year or has possession of more
19than $25,000 of assets at any time during a fiscal year shall
20file an annual financial report within 6 months of the close of
21the trust's or organization's fiscal year, and if a calendar
22year the report shall be due on each June 30 of the following
23year. Every trustee registered hereunder that did not receive
24more than $25,000 in revenue or hold more than $25,000 in
25assets during a fiscal year shall file only a simplified
26summary financial statement disclosing only the gross

 

 

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1receipts, total disbursements, and assets on hand at the end of
2the year, on forms prescribed by the Attorney General.
3    (e) The periodic reporting provisions of this Act do not
4apply to any trustee of a trust which is the subject matter of
5an adversary proceeding pending in the circuit court in this
6State. However, upon commencement of the proceeding the trustee
7shall file a report with the Attorney General informing him or
8her of that fact together with the title and number of the
9cause and the name of the court. Upon entry of final judgment
10in the cause the trustee shall in like manner report that fact
11to the Attorney General and fully account for all periods of
12suspension.
13    (f) The Attorney General in his or her discretion may,
14pursuant to rules and regulations promulgated by the Attorney
15General, accept executed copies of federal Internal Revenue
16returns and reports as a portion of the annual reporting. The
17report shall include a statement of any changes in purpose or
18any other information required to be contained in the
19registration form filed on behalf of the organization. The
20report shall be signed under penalty of perjury by the
21president and the chief fiscal officer of any corporate
22organization or by 2 trustees if not a corporation. One
23signature shall be accepted if there is only one officer or
24trustee.
25    (g) The Attorney General shall cancel the registration of
26any trust or organization that wilfully fails to comply with

 

 

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1subsections (a), (b), (c) or (d) of this Section within the
2time prescribed, and the assets of the organization may through
3court proceedings be collected, debts paid and proceeds
4distributed under court supervision to other charitable
5purposes upon an action filed by the Attorney General as law
6and equity allow. Upon timely written request, the due date for
7filing may be extended by the Attorney General for a period of
860 days. Notice of registration cancellation shall be mailed by
9regular mail to the registrant at the registration file address
10or to its registered agent or president 21 days before the
11effective date of the cancellation. Reports submitted after
12registration is canceled shall require reregistration.
13    (h) Every trustee registered hereunder that received in any
14fiscal year more than $25,000 in revenue or held more than
15$25,000 in assets shall pay a fee of $15 along with each annual
16financial report filed pursuant to this Act. If an annual
17report is not timely filed, a late filing fee of an additional
18$100 is imposed and shall be paid as a condition of filing a
19late report. Reports submitted without the proper fee shall not
20be accepted for filing.
21(Source: P.A. 90-469, eff. 8-17-97; 91-444, eff. 8-6-99.)".