EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0239*
HOUSE BILL 239
C2 5lr0166
(PRE–FILED) CF SB 184
By: Chair, Economic Matters Committee (By Request – Departmental – Secretary
of State)
Requested: September 18, 2024
Introduced and read first time: January 8, 2025
Assigned to: Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Charitable Organizations – Late Fees and Registration – Suspension and 2
Cancellation Requirements 3
FOR the purpose of authorizing the Secretary of State to suspend payment of certain late 4
fees assessed to certain charitable organizations under certain circumstances; 5
authorizing the Secretary of State to cancel a charitable organization’s registration 6
or reinstate a charitable organization’s canceled registration under certain 7
circumstances; and generally relating to the regulation of charitable organizations 8
by the Secretary of State. 9
BY repealing and reenacting, with amendments, 10
Article – Business Regulation 11
Section 6–407 12
Annotated Code of Maryland 13
(2024 Replacement Volume) 14
BY repealing and reenacting, without amendments, 15
Article – Business Regulation 16
Section 6–417 17
Annotated Code of Maryland 18
(2024 Replacement Volume) 19
BY adding to 20
Article – Business Regulation 21
Section 6–418 22
Annotated Code of Maryland 23
(2024 Replacement Volume) 24
2 HOUSE BILL 239
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2
Article – Business Regulation 3
6–407. 4
(a) A charitable organization that collects less than $25,000 in charitable 5
contributions from the public in a year need not pay an annual fee, except that, if the 6
charitable organization uses a professional solicitor, it shall pay an annual fee of $50. 7
(b) (1) Each charitable organization that submits a separate registration 8
statement and collects at least $25,000 in charitable contributions from the public in a year 9
shall pay an annual fee based on the charitable contributions collected. 10
(2) The annual fee shall be: 11
(i) $50, if charitable contributions from the public are at least 12
$25,000 but less than $50,001; 13
(ii) $75, if charitable contributions from the public are at least 14
$50,001 but less than $75,001; 15
(iii) $100, if charitable contributions from the public are at least 16
$75,001 but less than $100,001; 17
(iv) $200, if charitable contributions from the public are at least 18
$100,001 but less than $500,001; and 19
(v) $300, if charitable contributions from the public are at least 20
$500,001. 21
(c) (1) [An] A CHARITABLE organization failing to file an annual report 22
either by the end of the 6–month period after the end of the charitable organization’s fiscal 23
year or within any period of extension granted shall pay, in addition to the annual fee, $25 24
for each month or part thereof after the date on which the annual report was due to be filed 25
or after the period of extension granted for such filing. 26
(2) The late fee shall be assessed 60 days after: 27
(i) the end of the 6th month after the end of the fiscal year; or 28
(ii) the period of extension. 29
(3) Failure to remit an assessed late fee is a violation of this title. 30
HOUSE BILL 239 3
(4) THE SECRETARY OF STATE MAY SUSPEND OR WAIVE LATE FEES 1
IN ACCORDANCE WITH : 2
(I) REGULATIONS ADOPTED UNDER SUBSECTION (F) OF THIS 3
SECTION; OR 4
(II) A SETTLEMENT AGREEME NT MADE UNDER § 6–205(B) AND 5
(C) OF THIS TITLE. 6
(d) The following revenues shall be distributed to the Charitable Enforcement 7
Fund under Subtitle 2A of this title, to be used only to support the actions of the Secretary 8
of State and the Attorney General in carrying out the duties of the Secretary of State and 9
the Attorney General under this title and Title 6.5 of this article: 10
(1) $100 of the annual fee paid by each charitable organization under 11
subsection (b)(2)(v) of this section; and 12
(2) the late fees collected under subsection (c) of this section. 13
(E) A LATE FEE ASSESSED UN DER THIS SECTION MAY NOT BE CONSIDERED 14
A DELINQUENT ACCOUNT OR DEBT REQUIRING RE FERRAL TO THE CENTRAL 15
COLLECTION UNIT FOR COLLECTION P URPOSES UNDER § 3–302 OF THE STATE 16
FINANCE AND PROCUREMENT ARTICLE. 17
(F) THE SECRETARY OF STATE MAY ADOPT REGUL ATIONS REGARDING THE 18
SUSPENSION OR WAIVER OF THE IMPOSITION OR COLLECTION OF LATE F EES FOR 19
CHARITABLE ORGANIZAT IONS THAT FAIL TO FILE AN ANNUAL REPORT UND ER 20
SUBSECTION (C) OF THIS SECTION. 21
6–417. 22
A charitable organization that intends to end soliciting shall submit to the Secretary 23
of State: 24
(1) a statement of its intent; and 25
(2) a final annual report within 6 months after the end of its fiscal year. 26
6–418. 27
(A) THE SECRETARY OF STATE MAY CANCEL THE REGISTRATION OF A 28
CHARITABLE ORGANIZAT ION IF: 29
(1) THE ORGANIZATION FAI LED TO SUBMIT: 30
4 HOUSE BILL 239
(I) A STATEMENT OF INTEN T AND FINAL ANNUAL R EPORT 1
UNDER § 6–417 OF THIS SUBTITLE WITHIN 3 YEARS AFTER THE DATE THE 2
STATEMENT OF INTENT AND FINAL ANNUAL REP ORT WERE DUE ; OR 3
(II) ANY ANNUAL REPORT OR UPDATES REQUIRED UND ER § 4
6–408 OF THIS SUBTITLE FOR A 3–YEAR PERIOD; AND 5
(2) THE SECRETARY OF STATE SENDS A NOTICE OF CANCELLATION 6
TO THE LAST KNOWN AD DRESS AND E–MAIL ADDRESS OF THE ORGANIZATION . 7
(B) A CHARITABLE ORGANIZAT ION MAY REQUEST THAT THE SECRETARY OF 8
STATE REINSTATE A REG ISTRATION CANCELED U NDER SUBSECTION (A) OF THIS 9
SECTION IF THE ORGAN IZATION: 10
(1) SUBMITS TO THE SECRETARY OF STATE ANY OUTSTANDING OR 11
MISSING ANNUAL REPOR TS, SUPPORTING MATERIALS , AND ANNUAL FEES 12
REQUIRED UNDER THIS TITLE; 13
(2) (I) REMITS ALL UNPAID LA TE FEES; OR 14
(II) HAD LATE FEES SUSPEN DED OR WAIVED IN ACC ORDANCE 15
WITH § 6–407(C) OF THIS SUBTITLE; 16
(3) IS IN GOOD STANDING WITH THE STATE DEPARTMENT OF 17
ASSESSMENTS AND TAXATION, IF APPLICABLE; 18
(4) HAS A CURRENT TAX –EXEMPT STATUS UNDER § 501(C)(3) OF THE 19
INTERNAL REVENUE CODE, IF APPLICABLE; AND 20
(5) PROVIDES ANY OTHER I NFORMATION THAT THE SECRETARY OF 21
STATE REQUIRES . 22
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 23
1, 2025. 24