On January 25, 2023, the Senate Judiciary Committee heard SB 278 on nonprofit corporations authored by Sen. Freeman.The bill expands the definition of “public benefit corporation” to include a domestic corporation that is supported by public funds or authorized to spend public funds in furtherance of its mission or that is a not-for-profit corporation that aims to serve a public benefit. The bill provides that a court may dissolve a corporation under certain circumstances, specifies procedural requirements that the attorney general must take before petitioning the court for dissolution for certain reasons, and provides additional remedies that the attorney general may seek for certain violations. The bill also requires the corporation to maintain certain records for three years, allows the Attorney General to inspect records that the corporation is required to maintain under certain circumstances, and prohibits a state agency from imposing a filing or recording fee that is more burdensome than Indiana law allows.
Philanthropy Alliance and the Indiana Attorney General’s Office testified in support of the bill. The bill was held for amend and vote.
On February 15, 2023, the bill was amended by consent to restrict and clarify the authority of the Attorney General and to define “charitable organization”. The amendment also replaced the term “public benefit corporation” with “charitable organization” in certain instances. The amended bill passed 11-0.
Read the bill at: https://iga.in.gov/legislative/2023/bills/senate/278