MD
Maryland House Bill HB239

Maryland 2025 Regular Session

Maryland House Bill HB239 Compare Versions

OldNewDifferences
1- WES MOORE, Governor Ch. 79
21
3-– 1 –
4-Chapter 79
5-(House Bill 239)
62
7-AN ACT concerning
3+EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4+ [Brackets] indicate matter deleted from existing law.
5+ Underlining indicates amendments to bill.
6+ Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7+amendment.
8+ *hb0239*
89
9-Charitable Organizations – Late Fees and Registration – Suspension and
10-Cancellation Requirements
10+HOUSE BILL 239
11+C2 5lr0166
12+ (PRE–FILED) CF SB 184
13+By: Chair, Economic Matters Committee (By Request – Departmental – Secretary
14+of State)
15+Requested: September 18, 2024
16+Introduced and read first time: January 8, 2025
17+Assigned to: Economic Matters
18+Committee Report: Favorable with amendments
19+House action: Adopted
20+Read second time: February 11, 2025
1121
12-FOR the purpose of authorizing the Secretary of State to suspend payment of certain late
13-fees assessed to certain charitable organizations under certain circumstances;
14-authorizing the Secretary of State to cancel a charitable organization’s registration
15-or reinstate a charitable organization’s canceled registration under certain
16-circumstances; and generally relating to the regulation of charitable organizations
17-by the Secretary of State.
22+CHAPTER ______
1823
19-BY repealing and reenacting, with amendments,
20- Article – Business Regulation
21- Section 6–407
22- Annotated Code of Maryland
23- (2024 Replacement Volume)
24+AN ACT concerning 1
2425
25-BY repealing and reenacting, without amendments,
26- Article – Business Regulation
27-Section 6–417
28- Annotated Code of Maryland
29- (2024 Replacement Volume)
26+Charitable Organizations – Late Fees and Registration – Suspension and 2
27+Cancellation Requirements 3
3028
31-BY adding to
32- Article – Business Regulation
33- Section 6–418
34- Annotated Code of Maryland
35- (2024 Replacement Volume)
29+FOR the purpose of authorizing the Secretary of State to suspend payment of certain late 4
30+fees assessed to certain charitable organizations under certain circumstances; 5
31+authorizing the Secretary of State to cancel a charitable organization’s registration 6
32+or reinstate a charitable organization’s canceled registration under certain 7
33+circumstances; and generally relating to the regulation of charitable organizations 8
34+by the Secretary of State. 9
3635
37- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
38-That the Laws of Maryland read as follows:
36+BY repealing and reenacting, with amendments, 10
37+ Article – Business Regulation 11
38+ Section 6–407 12
39+ Annotated Code of Maryland 13
40+ (2024 Replacement Volume) 14
3941
40-Article – Business Regulation
42+BY repealing and reenacting, without amendments, 15
43+ Article – Business Regulation 16
44+Section 6–417 17
45+ Annotated Code of Maryland 18
46+ (2024 Replacement Volume) 19
4147
42-6–407.
48+BY adding to 20 2 HOUSE BILL 239
4349
44- (a) A charitable organization that collects less than $25,000 in charitable
45-contributions from the public in a year need not pay an annual fee, except that, if the
46-charitable organization uses a professional solicitor, it shall pay an annual fee of $50.
47- Ch. 79 2025 LAWS OF MARYLAND
4850
49-– 2 –
50- (b) (1) Each charitable organization that submits a separate registration
51-statement and collects at least $25,000 in charitable contributions from the public in a year
52-shall pay an annual fee based on the charitable contributions collected.
51+ Article – Business Regulation 1
52+ Section 6–418 2
53+ Annotated Code of Maryland 3
54+ (2024 Replacement Volume) 4
5355
54- (2) The annual fee shall be:
56+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 5
57+That the Laws of Maryland read as follows: 6
5558
56- (i) $50, if charitable contributions from the public are at least
57-$25,000 but less than $50,001;
59+Article – Business Regulation 7
5860
59- (ii) $75, if charitable contributions from the public are at least
60-$50,001 but less than $75,001;
61+6–407. 8
6162
62- (iii) $100, if charitable contributions from the public are at least
63-$75,001 but less than $100,001;
63+ (a) A charitable organization that collects less than $25,000 in charitable 9
64+contributions from the public in a year need not pay an annual fee, except that, if the 10
65+charitable organization uses a professional solicitor, it shall pay an annual fee of $50. 11
6466
65- (iv) $200, if charitable contributions from the public are at least
66-$100,001 but less than $500,001; and
67+ (b) (1) Each charitable organization that submits a separate registration 12
68+statement and collects at least $25,000 in charitable contributions from the public in a year 13
69+shall pay an annual fee based on the charitable contributions collected. 14
6770
68- (v) $300, if charitable contributions from the public are at least
69-$500,001.
71+ (2) The annual fee shall be: 15
7072
71- (c) (1) [An] A CHARITABLE organization failing to file an annual report
72-either by the end of the 6–month period after the end of the charitable organization’s fiscal
73-year or within any period of extension granted shall pay, in addition to the annual fee, $25
74-for each month or part thereof after the date on which the annual report was due to be filed
75-or after the period of extension granted for such filing.
73+ (i) $50, if charitable contributions from the public are at least 16
74+$25,000 but less than $50,001; 17
7675
77- (2) The late fee shall be assessed 60 days after:
76+ (ii) $75, if charitable contributions from the public are at least 18
77+$50,001 but less than $75,001; 19
7878
79- (i) the end of the 6th month after the end of the fiscal year; or
79+ (iii) $100, if charitable contributions from the public are at least 20
80+$75,001 but less than $100,001; 21
8081
81- (ii) the period of extension.
82+ (iv) $200, if charitable contributions from the public are at least 22
83+$100,001 but less than $500,001; and 23
8284
83- (3) Failure to remit an assessed late fee is a violation of this title.
85+ (v) $300, if charitable contributions from the public are at least 24
86+$500,001. 25
8487
85- (4) THE SECRETARY OF STATE MAY SUSPEND OR WAIVE LATE FEES
86-IN ACCORDANCE WITH :
88+ (c) (1) [An] A CHARITABLE organization failing to file an annual report 26
89+either by the end of the 6–month period after the end of the charitable organization’s fiscal 27
90+year or within any period of extension granted shall pay, in addition to the annual fee, $25 28
91+for each month or part thereof after the date on which the annual report was due to be filed 29
92+or after the period of extension granted for such filing. 30
8793
88- (I) REGULATIONS ADOPTED UNDER SUBSECTION (F) OF THIS
89-SECTION; OR
94+ (2) The late fee shall be assessed 60 days after: 31
9095
91- (II) A SETTLEMENT AGREEME NT MADE UNDER § 6–205(B) AND
92-(C) OF THIS TITLE.
93- WES MOORE, Governor Ch. 79
96+ (i) the end of the 6th month after the end of the fiscal year; or 32
97+ HOUSE BILL 239 3
9498
95-– 3 –
96- (d) The following revenues shall be distributed to the Charitable Enforcement
97-Fund under Subtitle 2A of this title, to be used only to support the actions of the Secretary
98-of State and the Attorney General in carrying out the duties of the Secretary of State and
99-the Attorney General under this title and Title 6.5 of this article:
10099
101- (1) $100 of the annual fee paid by each charitable organization under
102-subsection (b)(2)(v) of this section; and
100+ (ii) the period of extension. 1
103101
104- (2) the late fees collected under subsection (c) of this section.
102+ (3) Failure to remit an assessed late fee is a violation of this title. 2
105103
106- (E) A LATE FEE ASSESSED UN DER THIS SECTION MAY NOT BE CONSIDERED
107-A DELINQUENT ACCOUNT OR DEBT REQUIRING RE FERRAL TO THE CENTRAL
108-COLLECTION UNIT FOR COLLECTION PURPOSES U NDER § 3–302 OF THE STATE
109-FINANCE AND PROCUREMENT ARTICLE.
104+ (4) THE SECRETARY OF STATE MAY SUSPEND OR WAIVE LATE FEES 3
105+IN ACCORDANCE WITH : 4
110106
111- (F) THE SECRETARY OF STATE MAY ADOPT REGUL ATIONS REGARDING THE
112-SUSPENSION OR WAIVER OF THE IMPOSITION OR COLLECTION OF LATE FEES FOR
113-CHARITABLE ORGANIZAT IONS THAT FAIL TO FI LE AN ANNUAL REPORT UND ER
114-SUBSECTION (C) OF THIS SECTION.
107+ (I) REGULATIONS ADOPTED UNDER SUBSECTION (F) OF THIS 5
108+SECTION; OR 6
115109
116-6–417.
110+ (II) A SETTLEMENT AGREEME NT MADE UNDER § 6–205(B) AND 7
111+(C) OF THIS TITLE. 8
117112
118- A charitable organization that intends to end soliciting shall submit to the Secretary
119-of State:
113+ (d) The following revenues shall be distributed to the Charitable Enforcement 9
114+Fund under Subtitle 2A of this title, to be used only to support the actions of the Secretary 10
115+of State and the Attorney General in carrying out the duties of the Secretary of State and 11
116+the Attorney General under this title and Title 6.5 of this article: 12
120117
121- (1) a statement of its intent; and
118+ (1) $100 of the annual fee paid by each charitable organization under 13
119+subsection (b)(2)(v) of this section; and 14
122120
123- (2) a final annual report within 6 months after the end of its fiscal year.
121+ (2) the late fees collected under subsection (c) of this section. 15
124122
125-6–418.
123+ (E) A LATE FEE ASSESSED UN DER THIS SECTION MAY NOT BE CONSIDERED 16
124+A DELINQUENT ACCOUNT OR DEBT REQU IRING REFERRAL TO TH E CENTRAL 17
125+COLLECTION UNIT FOR COLLECTION P URPOSES UNDER § 3–302 OF THE STATE 18
126+FINANCE AND PROCUREMENT ARTICLE. 19
126127
127- (A) THE SECRETARY OF STATE MAY CANCEL THE REGISTRATION OF A
128-CHARITABLE ORGANIZAT ION IF:
128+ (F) THE SECRETARY OF STATE MAY ADOPT REGUL ATIONS REGARDING THE 20
129+SUSPENSION OR WAIVER OF THE IMPOSITION O R COLLECTION OF LATE FEES FOR 21
130+CHARITABLE ORGANIZAT IONS THAT FAIL TO FI LE AN ANNUAL REPORT UNDER 22
131+SUBSECTION (C) OF THIS SECTION. 23
129132
130- (1) THE ORGANIZATION FAI LED TO SUBMIT:
133+6–417. 24
131134
132- (I) A STATEMENT OF INTEN T AND FINAL ANNUAL R EPORT
133-UNDER § 6–417 OF THIS SUBTITLE WIT HIN 3 YEARS AFTER THE DATE THE
134-STATEMENT OF INTENT AND FINAL ANNUAL REP ORT WERE DUE ; OR
135+ A charitable organization that intends to end soliciting shall submit to the Secretary 25
136+of State: 26
135137
136- (II) ANY ANNUAL REPORT OR UPDATES REQUIRED UND ER §
137-6–408 OF THIS SUBTITLE FOR A 3–YEAR PERIOD; AND
138+ (1) a statement of its intent; and 27
138139
139- (2) THE SECRETARY OF STATE SENDS A NOTICE OF CANCELLATION
140-TO THE LAST KNOWN ADDRESS A ND E–MAIL ADDRESS OF THE ORGANIZATION . Ch. 79 2025 LAWS OF MARYLAND
140+ (2) a final annual report within 6 months after the end of its fiscal year. 28
141141
142-– 4 –
142+6–418. 29
143143
144- (B) A CHARITABLE ORGANIZAT ION MAY REQUEST THAT THE SECRETARY OF
145-STATE REINSTATE A REG ISTRATION CANCELED U NDER SUBSECTION (A) OF THIS
146-SECTION IF THE ORGAN IZATION:
144+ (A) THE SECRETARY OF STATE MAY CANCEL THE REGISTRATION OF A 30
145+CHARITABLE ORGANIZAT ION IF: 31 4 HOUSE BILL 239
147146
148- (1) SUBMITS TO THE SECRETARY O F STATE ANY OUTSTANDING OR
149-MISSING ANNUAL REPOR TS, SUPPORTING MATERIALS , AND ANNUAL FEES
150-REQUIRED UNDER THIS TITLE;
151147
152- (2) (I) REMITS ALL UNPAID LA TE FEES; OR
153148
154- (II) HAD LATE FEES SUSPEN DED OR WAIVED IN ACC ORDANCE
155-WITH § 6–407(C) OF THIS SUBTITLE;
149+ (1) THE ORGANIZATION FAI LED TO SUBMIT: 1
156150
157- (3) IS IN GOOD STANDING WITH THE STATE DEPARTMENT OF
158-ASSESSMENTS AND TAXATION, IF APPLICABLE;
151+ (I) A STATEMENT OF INTENT AND FINAL ANNUAL REPORT 2
152+UNDER § 6–417 OF THIS SUBTITLE WIT HIN 3 YEARS AFTER THE DATE THE 3
153+STATEMENT OF INTENT AND FINAL ANNUAL REP ORT WERE DUE ; OR 4
159154
160- (4) HAS A CURRENT TAX –EXEMPT STATUS UNDER § 501(C)(3) OF THE
161-INTERNAL REVENUE CODE, IF APPLICABLE; AND
155+ (II) ANY ANNUAL REPORT OR UPDATES REQUIRED UND ER § 5
156+6–408 OF THIS SUBTITLE FOR A 3–YEAR PERIOD; AND 6
162157
163- (5) PROVIDES ANY OTHER I NFORMATION THAT THE SECRETARY OF
164-STATE REQUIRES .
158+ (2) THE SECRETARY OF STATE SENDS A NOTICE OF CANCELLATION 7
159+TO THE LAST KNOWN AD DRESS AND E–MAIL ADDRESS OF THE ORGANIZATION . 8
165160
166- SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July
167-1, 2025.
161+ (B) A CHARITABLE ORGANIZAT ION MAY REQUEST THAT THE SECRETARY OF 9
162+STATE REINSTATE A REG ISTRATION CANCELED U NDER SUBSECTION (A) OF THIS 10
163+SECTION IF THE ORGAN IZATION: 11
168164
169-Approved by the Governor, April 8, 2025.
165+ (1) SUBMITS TO THE SECRETARY OF STATE ANY OUTSTANDING OR 12
166+MISSING ANNUAL REPOR TS, SUPPORTING MATERIALS , AND ANNUAL FEES 13
167+REQUIRED UNDER THIS TITLE; 14
168+
169+ (2) (I) REMITS ALL UNPAID LA TE FEES; OR 15
170+
171+ (II) HAD LATE FEES SUSPENDED OR WAIVED IN ACCORDANCE 16
172+WITH § 6–407(C) OF THIS SUBTITLE; 17
173+
174+ (3) IS IN GOOD STANDING WITH THE STATE DEPARTMENT OF 18
175+ASSESSMENTS AND TAXATION, IF APPLICABLE; 19
176+
177+ (4) HAS A CURRENT TAX –EXEMPT STATUS UNDER § 501(C)(3) OF THE 20
178+INTERNAL REVENUE CODE, IF APPLICABLE; AND 21
179+
180+ (5) PROVIDES ANY OTHER I NFORMATION THAT THE SECRETARY OF 22
181+STATE REQUIRES . 23
182+
183+ SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 24
184+1, 2025. 25
185+