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ENGROSSED SENATE
BILL NO. 772 By: Daniels of the Senate
and
Boatman, Lepak, and Hilbert
of the House
An Act relating to charitable organizations; stating
applicability of provisions; requiring notice from
charitable organization to Attorney General prior to
certain actions; providing exception; prohibiting
transfer of certain as sets within certain time
period; providing exceptions; requiring notice to
Attorney General of certain actions related to
federal charitable income tax exem ption; requiring
Attorney General to consider certain factors in
review of certain events; requiring writ ten notice of
Attorney General for certain objection s; authorizing
review by district court; provid ing for codification;
and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 552.24 of Title 18, unless there
is created a duplication in numbering, reads as follows:
A. The requirements of this section shall only apply to a
charitable organization that:
1. Is incorporated, organized, or ha s its principal place of
business in this state, or ha s assets located in this st ate with a
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fair market value in exc ess of Five Hundred Thousand Dollars
($500,000.00); and
2. Has engaged in solicitation of contributions in this state
for a period of one (1) year.
B. A charitable organizatio n required to register under Section
552.3 of Title 18 of the Oklahoma Statutes shall give written notice
to the Attorney General no later than forty-five (45) days before
any of the following events:
1. Dissolution of the charitable organization ;
2. Termination of the charitable organization ;
3. Disposition by the charitable organization of all or
substantially all of the charitable assets of the charitable
organization;
4. Removal of the charitable organization from the jurisdiction
of this state;
5. Removal of all or substantially all charitable assets of the
charitable organization from this state; or
6. An amendment of the governing document that describes the
charitable purposes of the charitable organization and the use and
administration of charitable assets he ld by the charitable
organization.
Such events shall not include a grant or other donation by a
charitable organization in the ordinary course of its operation and
consistent with its past practice.
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C. A charitable organization required to register under Section
552.3 of Title 18 of the Oklahoma Statutes shall give written notice
to the Attorney General n o later than forty-five (45) days before
the consummation of a merger, consolidation, or conversion of the
charitable organization .
D. A transfer of a chari table asset in connection with an event
described in subsection B or C of this section which occurs earlier
than forty-five (45) days after giving the notice required in
subsection B or C of this section shall be a violation of this
section unless before the transfer, the charitable organization
receives written consent from the Attorney General to the event or
written notice from the Attorney General that the Attorney General
will take no action re lated to the event.
E. A charitable organization required to register under Section
552.3 of Title 18 of the Oklahoma Statutes shall give written notice
to the Attorney General no later than twenty (20) days after receipt
of a notice of revocatio n, modification, or denial of its fede ral
charitable income tax exemption.
F. In reviewing any event for which notice is required under
subsection B or C of this section, the Attorney General shall
consider, among other relevant factors as determined by t he Attorney
General, the value o f the assets or interests transferred, the
person or entity to which such transfer is made, the purpose of the
transfer, the source of the assets, w hether the assets consist of
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donated funds or property, the donors ’ intent to the extent it can
be determined, and any expression of support by the board of
directors and the voting members of the charitable organization that
proposes to make the transfer .
G. If the Attorney General objects to any event for which
notice is required und er subsection B or C of this section, the
Attorney General shall give written notice to the charitable
organization of the objection. Either the Attorney General or the
charitable organization may file an action with the district court
of the county in which the charitable organization is located to
obtain a review by such district court of the objection of the
Attorney General.
SECTION 2. This act shall become effective November 1, 2023.
Passed the Senate the 9th day of March, 2023.
Presiding Officer of the Senate
Passed the House of Representatives the ____ day of __________,
2023.
Presiding Officer of the House
of Representatives