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ENGROSSED SENATE
BILL NO. 708 By: Daniels of the Senate
and
Boatman and Phillips of the
House
An Act relating to charitable organizations; defining
term; providing exceptions; requiring notice from
charitable organization to Attorney General prior to
certain actions; requiring Attorney General to
consider certain factors when reviewing notice;
authorizing Attorney General to bring action to
enjoin transfer of assets upon certain determination;
requiring certain action to be brought with in
specified time period; authorizin g charitable
organization to proceed with certain asset transfer
after specified time period; providing for
codification; and providing an e ffective date.
BE IT ENACTED BY THE PEOPLE OF THE STAT E OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 869 of Title 18, unless there is
created a duplication in numbering, reads as follows:
A. For purposes of this section, "charitable organization"
shall have the meaning as defined in paragraph 2 of Section 552.2 of
Title 18 of the Oklahoma Statutes and shall be an organization that
is incorporated or organized in this state, has its principal place
of business in this state, or has assets located in this state with
a fair market value that exceeds Fifty Thousand Dollars
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($50,000.00). Charitable organization shall not include a churc h,
hospital, religious corporation or society or affiliate thereof.
B. A charitable organization shall give written notice to the
Attorney General at least sixty (60) days prior to any charter
revocation, dissolut ion or other action, voluntary or involuntary ,
that would result in the transfer of any assets or any interest in
or on such assets of the charitable organization with a fair market
value that exceeds Fifty Thousand Dollars ($50,000.00) to any other
person or entity including any parent, subsidiary, or affiliate
organization of the charitable organization.
C. When reviewing a written notice received from a charitable
organization pursuant to subsection B of this section, the Attorney
General shall consider among other relevant factors as determined by
the Attorney General :
1. The amount and value of the assets or interests to be
transferred;
2. The person or entity to which such transfer would be made;
3. The purpose of the transfer ;
4. The source of the assets including whether the assets
consist of donated funds or propert y;
5. The intent of donors, to the extent such intent can be
determined;
6. The purpose and activities of the charitable organization;
and
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7. Any expression of support or lack of support by the
governing board and members of the charitable organization .
D. If the Attorney General determines that a transfer of assets
or interests of a charitable organization is inconsistent with the
public interest, the intent of donors, or the purpose for which the
charitable organization was organized or operated , the Attorney
General may bring an action to enjoin the transfer of assets or
interests or seek other relief as may be necessary to protect the
assets of the charitable organization. Any such action shall be
brought within sixty (60) days after receipt of noti ce of the
transfer of assets or interest as required by subsection B of this
section. If the Attorney General takes no action to enjoin the
transfer of assets or interest within sixty (60) days of receipt of
the notice, the charitable organization may pro ceed with the
transfer of assets or interests as set forth in the notice as
required by subsection B of this section.
SECTION 2. This act shall become effective November 1, 2022.
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Passed the Senate the 21st day of March, 2022.
Presiding Officer of the Senate
Passed the House of Representatives the ____ day of ___ _______,
2022.
Presiding Officer of the House
of Representatives