Bill
H 1742
The bill caps tort liability at $20,000 for charities that directly advance charitable purposes and derive over 50% of income from donations.
Status and basics
- Bill: H 1742
- Title: An Act to clarify the charitable purposes of certain organizations
- Introduced: February 27, 2025
- Presented by: Representative Christopher Hendricks (11th Bristol)
- Current status: Hearing scheduled for July 29, 2025, from 1:00 PM to 5:10 PM in Hearing Room A-2 (with virtual option; end time updated on several dates)
- Committee reference: The Judiciary
- Related actions: Similar matter previously filed as H.1544 in 2023-2024; referred to Judiciary; Senate concurrence noted in legislative actions
Purpose and intent
- The bill aims to clarify and modify the liability framework for charitable organizations in Massachusetts, specifically addressing tort actions and carving out a defined liability regime when charities are involved in activities that directly accomplish charitable purposes.
Key provisions (substantive change)
- Section 85K of Chapter 231 of the General Laws is amended as follows:
- The current defense that a corporation, trustees of a trust, or members of an association may invoke regarding tort claims based on whether the entity is a charity is to be replaced with a new standard.
- New standard: It shall not constitute a defense to a tort action brought against a charity, provided that:
- The tort was committed in the course of an activity carried on to accomplish directly the charitable purposes of the organization.
- The organization derives more than 50% of its income from charitable gifts or donations.
- If the above conditions are met, liability for the tort shall not exceed $20,000, exclusive of interest and costs.
- Practical effect: Charities operating primarily on charitable gifts/donations and engaging in directly charitable activities could face a liability cap of $20,000 for tort claims arising in the course of those charitable activities. The cap applies to the liability amount; interest and costs are excluded from the cap.
Who would be affected
- Affected entities:
- Corporations, trustees of trusts, and members of associations that operate as or as part of a charitable organization
- Charitable organizations that derive more than 50% of their income from charitable gifts or donations
- Potentially affected stakeholders:
- Judgment creditors and tort plaintiffs pursuing claims against charitable organizations
- Charities engaged in direct charitable activities and funded predominantly by donations
- Individuals or groups seeking damages where the activity is directly tied to the organization’s charitable mission
- Those not affected or less affected: Charities with less than 50% of income from charitable gifts/donations or activities not directly tied to charitable purposes
Procedural and timeline notes
- Introduction and referral: February 27, 2025; referred to The Judiciary
- Hearings: Scheduled for July 29, 2025 (1:00 PM – 5:10 PM in A-2; virtual option available; several updates tightening end time)
- Legislative actions: Includes hearing schedules and notes on related Senate concurrence; cross-filed with related measures in earlier sessions (e.g., H.1544 in 2023-2024)
- Related bill: HD 1674 (replaces)
Context and potential impact
- The bill shifts some risk liability from charities by imposing a monetary cap in specific tort scenarios, potentially encouraging direct charitable activities while providing a measure of protection against unlimited liability. The threshold and cap are tied to the charity’s reliance on charitable gifts/donations and the nature of the activity as directly charitable.
Compiled from official sources — confirm details with the bill’s official record.
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