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2012 -- H 7716 | |
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LC01314 | |
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STATE OF RHODE ISLAND | |
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IN GENERAL ASSEMBLY | |
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JANUARY SESSION, A.D. 2012 | |
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A N A C T | |
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RELATING TO PUBLIC PROPERTY AND WORKS - STATE PURCHASES - NONPROFIT | |
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CORPORATION | |
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Introduced By: Representatives Hearn, and Nunes | |
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Date Introduced: February 16, 2012 | |
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Referred To: House Finance | |
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It is enacted by the General Assembly as follows: | |
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SECTION 1. Chapter 37-2 of the General Laws entitled "State Purchases" is hereby |
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amended by adding thereto the following section: |
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37-2-81. Restriction on nonprofit corporation receipt of state funds. – (a) The state |
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shall not enter into a contract for any reason nor provide any grants or funds to any nonprofit |
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corporation as defined in subdivision 7-6-2(9) if their yearly administrative expenses exceed |
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fifteen percent (15%) of its annual total budget expenditures. |
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(b) The department of administration shall promulgate regulations to help implement and |
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enforce this section. The regulations shall, at a minimum, require all nonprofit corporations which |
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receive any state funds, to: |
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(1) File periodic reports which contain relevant financial and program performance |
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information; |
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(2) File copies of its documents which identify all its claimed administrative costs as |
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required by the Internal Revenue Service (Form 990); and |
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(3) Annually submit a certification that administrators expenses do not exceed the fifteen |
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percent (15%) limitations imposed by this section. |
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(c) If a nonprofit corporation violates the provisions of this section the director of |
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administration shall suspend violators’ disbursement of state funds until it follows this law. |
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SECTION 2. This act shall take effect on July 1, 2012. |
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LC01314 | |
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EXPLANATION | |
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BY THE LEGISLATIVE COUNCIL | |
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OF | |
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A N A C T | |
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RELATING TO PUBLIC PROPERTY AND WORKS - STATE PURCHASES - NONPROFIT | |
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CORPORATION | |
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This act would prevent any nonprofit corporation whose administrative expenses exceed |
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fifteen percent (15%) of its annual budget, from receiving state funds for any reason. |
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This act would take effect on July 1, 2012. |
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LC01314 | |
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