Bill > S875

This bill proposes new regulations for public charities in Massachusetts that have annual gross revenues exceeding $1,000,000. It establishes a cap of $500,000 in annual compensation for officers, directors acting in an executive capacity, and senior managers, defining compensation broadly to include salary, bonuses, deferred pay, severance, below-market loans, and vehicle leases. Crucially, it prohibits any compensation for members of the board of directors or trustees, though they can be reimbursed for expenses related to their duties. If a public charity wishes to exceed these compensation limits or pay board members, they must undergo a public hearing before a commission composed of the Secretary of the Commonwealth, the Inspector General, and the Attorney General. To seek this waiver, the charity must demonstrate good cause in writing, have the hearing within six months, and hire an independent auditor whose competence and impartiality are certified by the Auditor of the Commonwealth. The auditor's report must be submitted to the commission before the hearing, and all evidence presented becomes public record. The commission will then decide whether to grant the waiver, which would be valid for two years, based on the charity's purpose and the public interest. Failure to comply with these provisions or obtain a waiver will result in the loss of the organization's status as a public charity.