Massachusetts 2025-2026 Regular Session

Massachusetts Senate Bill S1195 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1 of 1
2	2	SENATE DOCKET, NO. 1514 FILED ON: 1/16/2025
3	3	SENATE . . . . . . . . . . . . . . No. 1195
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Mark C. Montigny
8	8	_________________
9	9	To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
10	10	Court assembled:
11	11	The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
12	12	An Act relative to public charity executive and board of directors compensation.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :Mark C. MontignySecond Bristol and Plymouth 1 of 3
16	16	SENATE DOCKET, NO. 1514 FILED ON: 1/16/2025
17	17	SENATE . . . . . . . . . . . . . . No. 1195
18	18	By Mr. Montigny, a petition (accompanied by bill, Senate, No. 1195) of Mark C. Montigny for
19	19	legislation relative to public charity executive and board of directors compensation. The
20	20	Judiciary.
21	21	[SIMILAR MATTER FILED IN PREVIOUS SESSION
22	22	SEE SENATE, NO. 1067 OF 2023-2024.]
23	23	The Commonwealth of Massachusetts
24	24	_______________
25	25	In the One Hundred and Ninety-Fourth General Court
26	26	(2025-2026)
27	27	_______________
28	28	An Act relative to public charity executive and board of directors compensation.
29	29	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
30	30	of the same, as follows:
31	31	1 Chapter 180 of the General Laws, as appearing in the 2022 Official Edition, is hereby
32	32	2amended by inserting after section 29 the following sections:-
33	33	3 Section 30. Any public charity with annual gross revenues in excess of $1,000,000.00
34	34	4are subject to the following provisions:
35	35	5 (a) no officer, director acting in an executive capacity, or senior manager shall receive
36	36	6annual compensation in excess of $500,000.00;
37	37	7 (b) compensation, as defined by this section, includes salary, bonus payments, incentive
38	38	8payments, deferred compensation, severance payments, below market rate loans, and the lease or
39	39	9rental of any vehicle. 2 of 3
40	40	10 Section 31. Board of director or trustees; prohibition against compensation
41	41	11 No public charity shall provide compensation as defined in subsection b of section 30 of
42	42	12this chapter to any member of the board of directors or trustees appointed by a public charity:
43	43	13provided, however, that a member of the board of directors or trustees may receive
44	44	14reimbursement for expenses directly related to the members duties and responsibilities as a
45	45	15member of the board.
46	46	16 Section 32. Waiver Hearing
47	47	17 Any public charity as defined in section 30 of this chapter seeking to compensate an
48	48	18officer, director, trustee, or senior manager in excess of the executive compensation cap as
49	49	19defined in section 30 of this chapter or compensate a member of the board of directors or trustees
50	50	20of the public charity shall be entitled to a public hearing before a commission comprised of the
51	51	21secretary of the commonwealth, inspector general, and the attorney general (“commission”).
52	52	22 Any public charity seeking said waiver shall request a hearing in writing to the
53	53	23commission indicating good cause for any deviation from the limits set forth in section 30 or
54	54	24section 31. The commission shall commence a hearing to consider whether good cause exists to
55	55	25issue said waiver within six months of receipt of a written request. No waiver shall be granted
56	56	26unless a finding of good cause is determined by the commission following the hearing.
57	57	27 Any public charity seeking a waiver from the commission shall engage an independent
58	58	28auditor at its own expense to provide the commission with a written report at least seven days
59	59	29prior to the hearing. 3 of 3
60	60	30 The commission shall review and consider the independent auditor’s report at the waiver
61	61	31hearing. The public charity and members of the general public shall be permitted to present
62	62	32additional evidence in support or opposition to such a waiver subject to the discretion of the
63	63	33commission; all audit documents and any additional evidence submitted at a waiver hearing shall
64	64	34be deemed public records subject to section ten of chapter sixty-six of the general laws.
65	65	35 At the close of the waiver hearing, the commission shall weigh all evidence presented,
66	66	36the charitable purpose of the public charity, and the public interest of the commonwealth.
67	67	37 Any final determination as to whether a waiver shall be granted shall rest solely with the
68	68	38commission who shall make said determination in writing within thirty days of the waiver
69	69	39hearing. Such a waiver shall be granted only if deemed in the public interest of the
70	70	40commonwealth. If a waiver is granted, it shall be valid only for a period of five years from the
71	71	41date of the decision. A public charity may request a subsequent waiver hearing prior to the
72	72	42expiration of a valid waiver granted by the commission.
73	73	43 Section 33. Penalties
74	74	44 Any public charity found in violation of sections 30 or 31 and having failed to obtain a
75	75	45waiver pursuant to section 32, shall lose its status as a public charity under the laws of the
76	76	46commonwealth.