Bill > HB239

This bill modifies Maryland's regulations for charitable organizations, addressing late fees, registration suspension, and reinstatement. Currently, charitable organizations must pay an annual fee based on their total charitable contributions, with organizations collecting less than $25,000 generally exempt from fees. The bill gives the Secretary of State more flexibility in handling late fees by allowing them to suspend or waive fees under specific circumstances, such as through regulations or settlement agreements. Additionally, the bill establishes a new process for canceling a charitable organization's registration if they fail to submit required annual reports or statements of intent for three consecutive years. If canceled, an organization can request reinstatement by submitting outstanding reports, paying any required fees, maintaining good standing with state agencies, preserving tax-exempt status, and providing requested information. Importantly, the bill clarifies that late fees will not be considered delinquent accounts or debts requiring referral to a central collection unit. These changes aim to provide more administrative flexibility and clearer guidelines for charitable organizations while maintaining accountability in their reporting requirements. The bill is set to take effect on July 1, 2025.

Business and Industry, Justice

Economic Matters (H)

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0239?ys=2025RS