PRIOR PRINTER'S NOS. 400, 2413 PRINTER'S NO. 2670
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 AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
OCTOBER 23, 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 (B) SOLICITING FOR NAMED INDIVIDUAL.-- <--
11 (1) A PERSON OR CHARITABLE organization soliciting
12 contributions for the benefit of a named individual who
13 receives in excess of $5,000 shall hold the funds collected
14 in trust and shall be subject to the provisions of 20 Pa.C.S.
15 Ch.71 (relating to trust estates). [A person who makes] The <--
16 person or charitable organization holding such funds shall
17 petition the court of common pleas of the county in which the
18 trust shall be established for approval by the court of the
19 provisions of the written trust instrument by which such
20 trust shall be established. The funds collected shall be
21 invested according to the terms of the trust instrument with
22 a corporate fiduciary, subject to its agreement to accept the
23 account. If there is a contribution to a person or charitable
24 organization THE FUNDS COLLECTED SHALL BE INVESTED ACCORDING <--
25 TO THE TERMS OF THE TRUST INSTRUMENT WITH AN INDIVIDUAL OR
26 CORPORATE FIDUCIARY, SUBJECT TO ITS AGREEMENT TO ACCEPT THE
27 ACCOUNT.
28 (2) A PERSON OR CHARITABLE ORGANIZATION SOLICITING
29 CONTRIBUTIONS FOR THE BENEFIT OF A NAMED INDIVIDUAL WHO
30 RECEIVES IN EXCESS OF $10,000 SHALL PETITION THE COURT OF
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1 COMMON PLEAS OF THE COUNTY IN WHICH THE TRUST SHALL BE
2 ESTABLISHED FOR APPROVAL BY THE COURT OF THE PROVISIONS OF
3 THE WRITTEN TRUST INSTRUMENT BY WHICH SUCH TRUST SHALL BE
4 ESTABLISHED, AND FOR APPROVAL OF THE TRUSTEE THEREOF. THE
5 FUNDS COLLECTED SHALL BE INVESTED ACCORDING TO THE TERMS OF
6 THE TRUST INSTRUMENT WITH AN INDIVIDUAL OR CORPORATE
7 FIDUCIARY, SUBJECT TO ITS AGREEMENT TO ACCEPT THE ACCOUNT.
8 (3) IF THERE IS A CONTRIBUTION TO A PERSON OR CHARITABLE
9 ORGANIZATION in response to a solicitation for the benefit of
10 a named individual, the department shall have the right to
11 petition the court of common pleas of the county in which the
12 trust is located for an accounting on behalf of all
13 contributors. For purposes of this subsection, the trust
14 shall be established in the county where the principal place
15 of business of the charitable organization is located. If a
16 charitable organization has its principal place of business
17 outside this Commonwealth, all of the following apply:
18 (1) (I) If a chapter, branch, area, office or <--
19 similar affiliate is soliciting contributions within this
20 Commonwealth, the trust shall be established in the
21 county where the principal place of business of the
22 chapter, branch, area, office or similar affiliate is
23 located.
24 (2) (II) If a person is soliciting contributions <--
25 within this Commonwealth, the trust shall be established
26 in the county where the principal place of business or
27 the residence of the person is located.
28 Section 2. The act is amended by adding a section to read:
29 Section 14.1. Named individual receiving health care.
30 (a) General rule.--If services which, in the estimation of a
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1 health care provider, are valued in excess of $5,000 are
2 requested for a named individual from a health care provider in
3 this Commonwealth and if contributions are being, have been or
4 will be solicited for the benefit of the individual which either
5 expressly or implicitly are intended in whole or in part to pay
6 for the services to be provided by the health care provider,
7 then, prior to the commencement of services by the health care
8 provider or any other time requested by the health care
9 provider, the individual or the individual's legal
10 representative shall do all of the following:
11 (1) Provide written verification to the health care
12 provider that funds collected for the benefit of the
13 individual are being, have been, or will be collected,
14 handled and dispersed in accordance with the applicable
15 Federal or state law.
16 (2) Provide to the health care provider the identity and
17 location of all funds and trusts established for the benefit
18 of the individual and the names, addresses and telephone
19 numbers of all trustees or holders of such funds.
20 (3) As collected funds are or become available for the
21 benefit of the individual, do all of the following:
22 (i) Authorize payment to the health care provider
23 from collected funds reasonable deposits or advanced
24 payments required to cover all or part of the estimated
25 cost of the services.
26 (ii) Deposit with the corporate fiduciary in this
27 Commonwealth an amount of the collected funds necessary
28 to cover estimated potential costs for the services. The
29 amount under this subparagraph shall be determined by the
30 health care provider to be the greater of the following:
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1 (A) The maximum charges that have been accrued
2 by patients undergoing the same or similar procedures
3 or treatment by the health care provider.
4 (B) The actual costs for the particular services
5 estimated to be necessary for the care and treatment
6 of the individual.
7 (b) Trust.--
8 (1) The trustee has the power and duty to release money
9 to the health care provider on a periodic basis for services
10 rendered or goods supplied, upon billing by the health care
11 provider, if any of the following applies:
12 (i) The named individual or the individual's legal
13 representative approves the bill.
14 (ii) The bill is submitted to the named individual
15 and the individual's legal representative, if there is
16 one; and no written objection is given to the trustee
17 within 30 days of submission.
18 (2) The trustee may not transfer, distribute or pay
19 funds, except in the manner set forth in paragraph (1), until
20 the named individual or the individual's legal representative
21 has provided to the trustee written verification from each
22 health care provider that payment has been made for all goods
23 and services provided to or for the benefit of the
24 individual.
25 (c) Insurance.--
26 (1) A patient to whom services are rendered in this
27 Commonwealth by a health care provider under this section
28 shall be deemed to authorize the health care provider to
29 reveal to an insurance company or a governmental agency all
30 of the following:
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1 (i) The estimated cost of the services or goods to
2 be provided for the patient.
3 (ii) The actual cost incurred to date for services
4 or goods provided to the patient.
5 (iii) The amounts of the cost covered by health or
6 other insurance.
7 (iv) The amounts of the cost already paid by
8 insurance or other sources.
9 (v) The existence of any other source of funds for
10 the payment of the cost services, including all
11 charitable funds.
12 (vi) The names and addresses of all banks, trustees
13 or other persons holding funds for the benefit of the
14 patient.
15 (vii) The estimated length of time the patient will
16 be in need of services or goods from the particular
17 health care provider.
18 (2) If the patient has health or other insurance with an
19 insurance company licensed to do business in this
20 Commonwealth, and that insurance covers part or all of the
21 services provided, then, upon written verification to the
22 health care provider from the insurer of the existence of the
23 insurance and the scope of coverage, the health care provider
24 shall reduce the estimated potential costs under subsection
25 (a)(3)(ii) by the amount of the cost covered by the
26 insurance.
27 (d) Other payment.--If the patient has paid to the health
28 care provider a deposit or advance payment or if other payments
29 have been made to the health care provider specifically for the
30 benefit of the patient, the health care provider shall reduce
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1 the estimated potential costs under subsection (a)(3)(ii) by the
2 amount of the payments.
3 (e) Deposits.--Nothing in this section shall prohibit a <--
4 health care provider from requiring a patient to provide a
5 deposit or advance payment for services or goods prior to
6 providing services or goods under any circumstances, whether or
7 not the patient has funds available to pay for all or any part
8 of the services or goods.
9 (f) (E) Other remedies.--Nothing in this section shall limit <--
10 a health care provider or patient from pursuing any other remedy
11 available at law or in equity.
12 Section 3. This act shall take effect in 60 days.
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