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 19890H0365B2670 - 2 -
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 19890H0365B2670 - 3 -
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: 19890H0365B2670 - 4 -
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: 19890H0365B2670 - 5 -
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 19890H0365B2670 - 6 -
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. A23L10VDL/19890H0365B2670 - 7 -