PRIOR PRINTER'S NO. 400 PRINTER'S NO. 2413
No. 365 Session of 1989
INTRODUCED BY DALEY, PETRONE, TRELLO, LESCOVITZ, COLAIZZO,
KASUNIC, ROBINSON, VEON, WOZNIAK, DeWEESE, MELIO, LAUGHLIN,
F. TAYLOR, HALUSKA, MAINE, WAMBACH, TANGRETTI, COWELL,
COLAFELLA, LaGROTTA, DeLUCA, GIGLIOTTI, OLASZ, PISTELLA,
B. D. CLARK, SALOOM, PETRARCA, VAN HORNE, MARKOSEK, MRKONIC,
MICHLOVIC, FEE, CORRIGAN, JAROLIN, GRUITZA, GEORGE,
DOMBROWSKI, STEIGHNER, CESSAR, FARMER, GAMBLE AND ITKIN,
FEBRUARY 8, 1989
AS REPORTED FROM COMMITTEE ON STATE GOVERNMENT, HOUSE OF
REPRESENTATIVES, AS AMENDED, SEPTEMBER 25, 1989
AN ACT
1 Amending the act of April 30, 1986 (P.L.107, No.36), entitled
2 "An act relating to charitable organizations; requiring the
3 registration of such organizations; and regulating the
4 solicitation of money and property by, or on behalf of,
5 charitable organizations," further providing for soliciting
6 for a named individual.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. Section 12 of the act of April 30, 1986 (P.L.107,
10 No.36), known as the Charitable Organization Reform Act, is
11 amended to read:
12 Section 12. Records to be kept by charitable organizations,
13 professional fundraising counsel and professional
14 solicitors.
15 (a) General rule.--Every charitable organization subject to
16 the provisions of this act shall, in accordance with the rules
1 and regulations prescribed by the department, keep true fiscal
2 records as to its activities in Pennsylvania as may be covered
3 by this act in such form as will enable it accurately to provide
4 the information required by this act. Upon demand, such records
5 shall be made available to the department, the bureau or the
6 Attorney General for inspection. Such records shall be retained
7 for a period of at least three years after the end of the period
8 of registration to which they relate.
9 (b) Soliciting for named individual.--A person or charitable
10 organization soliciting contributions for the benefit of a named
11 individual [who receives in excess of $5,000] shall hold the <--
12 funds collected in trust and shall be subject to the provisions
13 of 20 Pa.C.S. Ch.71 (relating to trust estates). [A person who
14 makes] THE PERSON OR CHARITABLE ORGANIZATION HOLDING SUCH FUNDS <--
15 SHALL PETITION THE COURT OF COMMON PLEAS OF THE COUNTY IN WHICH
16 THE TRUST SHALL BE ESTABLISHED FOR APPROVAL BY THE COURT OF THE
17 PROVISIONS OF THE WRITTEN TRUST INSTRUMENT BY WHICH SUCH TRUST
18 SHALL BE ESTABLISHED. THE FUNDS COLLECTED SHALL BE INVESTED
19 ACCORDING TO THE TERMS OF THE TRUST INSTRUMENT WITH A CORPORATE
20 FIDUCIARY, SUBJECT TO ITS AGREEMENT TO ACCEPT THE ACCOUNT. If
21 there is a contribution to a person or charitable organization
22 in response to a solicitation for the benefit of a named
23 individual, any contributor and the department shall have the <--
24 right to petition the court of common pleas of the county in
25 which the trust is located for an accounting on behalf of all
26 contributors. For purposes of this subsection, the trust shall
27 be deemed to be located ESTABLISHED in the county where the <--
28 principal place of business of the charitable organization is
29 located. If a charitable organization has its principal place of
30 business outside this Commonwealth, all of the following apply:
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1 (1) If a chapter, branch, area, office or similar
2 affiliate is soliciting contributions within this
3 Commonwealth, the trust shall be deemed to be located <--
4 ESTABLISHED in the county where the principal place of <--
5 business of the chapter, branch, area, office or similar
6 affiliate is located.
7 (2) If a person is soliciting contributions within this
8 Commonwealth, the trust shall be deemed to be located <--
9 ESTABLISHED in the county where the principal place of <--
10 business or the residence of the person is located.
11 Section 2. The act is amended by adding a section to read:
12 Section 14.1. Named individual receiving health care.
13 (a) General rule.--If services which, in the estimation of a
14 health care provider, are valued in excess of $5,000 are
15 requested for a named individual from a health care provider in
16 this Commonwealth and if contributions are being, have been or
17 will be solicited for the benefit of the individual which either
18 expressly or implicitly are intended in whole or in part to pay
19 for the services to be provided by the health care provider,
20 then, prior to the commencement of services by the health care
21 provider or any other time requested by the health care
22 provider, the individual, OR the individual's legal <--
23 representative or the trustee of funds collected for the benefit <--
24 of the individual shall do all of the following:
25 (1) Provide written verification to the health care
26 provider that funds collected for the benefit of the
27 individual are being, have been, or will be collected,
28 handled and dispersed in accordance with the applicable
29 Federal or state law.
30 (2) Provide to the health care provider the identity and
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1 location of all funds and trusts established for the benefit
2 of the individual and the names, addresses and telephone
3 numbers of all trustees or holders of such funds.
4 (3) As collected funds are or become available for the
5 benefit of the individual, do all of the following:
6 (i) Pay AUTHORIZE PAYMENT to the health care <--
7 provider from collected funds reasonable deposits or
8 advanced payments required to cover all or part of the
9 estimated cost of the services.
10 (ii) Deposit in a financial institution WITH THE <--
11 CORPORATE FIDUCIARY in this Commonwealth an amount of the
12 collected funds necessary to cover estimated potential
13 costs for the services. The amount under this
14 subparagraph shall be determined by the health care
15 provider to be the greater of the following:
16 (A) The maximum charges that have been accrued
17 by patients undergoing the same or similar procedures
18 or treatment by the health care provider.
19 (B) The actual costs for the particular services
20 estimated to be necessary for the care and treatment
21 of the individual.
22 (b) Trust.--The money deposited under subsection (a)(2)(ii) <--
23 shall be administered by the financial institution as a trustee.
24 (1) The trustee has the power and duty to release money
25 to the health care provider on a periodic basis for services
26 rendered or goods supplied, upon billing by the health care
27 provider, if any of the following applies:
28 (i) The named individual or the individual's legal
29 representative approves the bill.
30 (ii) The bill is submitted to the named individual
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1 and the individual's legal representative, if there is
2 one; and no written objection is given to the trustee
3 within ten 30 days of submission. <--
4 (2) The trustee may not transfer, distribute or pay
5 funds, except in the manner set forth in paragraph (1), until
6 the named individual or the individual's legal representative
7 has provided to the trustee written verification from each
8 health care provider that payment has been made for all goods
9 and services provided to or for the benefit of the
10 individual.
11 (c) Insurance.--
12 (1) A patient to whom services are rendered in this
13 Commonwealth by a health care provider under this section
14 shall be deemed to authorize the health care provider to
15 reveal to an insurance company, OR a governmental agency, or <--
16 a person who has contributed to a fund for the benefit of the
17 patient all of the following:
18 (i) The estimated cost of the services or goods to
19 be provided for the patient.
20 (ii) The actual cost incurred to date for services
21 or goods provided to the patient.
22 (iii) The amounts of the cost covered by health or
23 other insurance.
24 (iv) The amounts of the cost already paid by
25 insurance or other sources.
26 (v) The existence of any other source of funds for
27 the payment of the cost services, including all
28 charitable funds.
29 (vi) The names and addresses of all banks, trustees
30 or other persons holding funds for the benefit of the
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1 patient.
2 (vii) The estimated length of time the patient will
3 be in need of services or goods from the particular
4 health care provider.
5 (2) If the patient has health or other insurance with an
6 insurance company licensed to do business in this
7 Commonwealth, and that insurance covers part or all of the
8 services provided, then, upon written verification to the
9 health care provider from the insurer of the existence of the
10 insurance and the scope of coverage, the health care provider
11 shall reduce the estimated potential costs under subsection
12 (a)(3)(ii) by the amount of the cost covered by the
13 insurance.
14 (d) Other payment.--If the patient has paid to the health
15 care provider a deposit or advance payment or if other payments
16 have been made to the health care provider specifically for the
17 benefit of the patient, the health care provider shall reduce
18 the estimated potential costs under subsection (a)(3)(ii) by the
19 amount of the payments.
20 (e) Deposits.--Nothing in this section shall prohibit a
21 health care provider from requiring a patient to provide a
22 deposit or advance payment for services or goods prior to
23 providing services or goods under any circumstances, whether or
24 not the patient has funds available to pay for all or any part
25 of the services or goods.
26 (f) Other remedies.--Nothing in this section shall limit a
27 health care provider or patient from pursuing any other remedy
28 available at law or in equity.
29 Section 3. This act shall take effect in 60 days.
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