Bill
SD 233
Overview: Bill SD 233, "An Act relative to property sales by nonprofit organizations", has passed the House and is awaiting final approval. It was introduced on February 27, 2025.P
Overview: Bill SD 233, "An Act relative to property sales by nonprofit organizations", has passed the House and is awaiting final approval. It was introduced on February 27, 2025.
Purpose and Intent: The primary goal of this legislation is to provide greater transparency and oversight for property sales conducted by nonprofit organizations. The bill aims to ensure that these transactions are carried out in a manner that protects the public interest and the organization's charitable mission.
Key Provisions:
- Requires nonprofit organizations to obtain independent appraisals for any real estate transactions valued at $500,000 or more
- Mandates that nonprofit organizations sell properties at or above the appraised fair market value, unless granted an exemption by the state Attorney General
- Establishes a review process for the Attorney General to approve or deny proposed property sales that do not meet the fair market value requirement
- Imposes financial penalties for nonprofit organizations that fail to comply with the new property sale regulations
Affected Parties and Impacts: This bill would primarily impact nonprofit organizations that own real estate and engage in property transactions. The new requirements would provide greater transparency and accountability for these sales, which could affect the organizations' financial operations and ability to achieve their charitable objectives. The public may also benefit from the increased oversight, as it could help prevent the undervaluing of properties sold by nonprofits.
Procedural and Timeline Considerations: The bill has passed the state Senate and is currently under consideration in the House. If approved by the House, it will move to the Governor's desk for final signature. If enacted, the new property sale regulations would take effect at the start of the next fiscal year.
Compiled from official sources — confirm details with the bill’s official record.
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