Bill Text: IL HB5480 | 2011-2012 | 97th General Assembly | Chaptered


Bill Title: Amends the Voluntary Payroll Deductions Act of 1983. Reduces the number of designations that must be made on behalf of an organization by employees or State annuitants in order for that organization to qualify to receive payments through payroll deductions under the Act. Authorizes the designations to be submitted electronically or in writing (now, the designations must be submitted in writing).

Spectrum: Bipartisan Bill

Status: (Passed) 2012-08-17 - Public Act . . . . . . . . . 97-1005 [HB5480 Detail]

Download: Illinois-2011-HB5480-Chaptered.html



Public Act 097-1005
HB5480 EnrolledLRB097 20382 JDS 65854 b
AN ACT concerning government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Voluntary Payroll Deductions Act of 1983 is
amended by changing Section 3 as follows:
(5 ILCS 340/3) (from Ch. 15, par. 503)
Sec. 3. Definitions. As used in this Act unless the context
otherwise requires:
(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 4,000 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 the physically handicapped; 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 Comptroller.
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 annuitants.
(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. 94-537, eff. 8-10-05.)
feedback