Bill > S1195

This bill introduces new regulations for public charities with annual gross revenues exceeding $1,000,000, focusing on executive and board compensation. It establishes strict limits on compensation for officers, directors, and senior managers, capping annual compensation at $500,000 and defining compensation broadly to include salary, bonuses, incentive payments, deferred compensation, severance payments, below-market loans, and vehicle leases. The bill also prohibits compensating board members, allowing only expense reimbursements. Charities seeking to exceed these compensation limits must request a waiver hearing before a commission comprised of the secretary of the commonwealth, inspector general, and attorney general. To obtain a waiver, the charity must demonstrate good cause through an independent auditor's report and a public hearing, with the commission having the sole discretion to grant a five-year waiver if deemed in the public interest. Failure to comply with these provisions or obtain a waiver will result in the charity losing its public charity status under state law. The bill aims to increase transparency and accountability in nonprofit executive compensation and ensure that charitable resources are primarily used for charitable purposes.

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https://malegislature.gov/Bills/194/S1195