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Bill

SB 2792

Nonprofit corporations; clarify penalty for failure to file annual report, repeal related provision.

2025 Regular Session Introduced by Tyler McCaughn

Clarifies nonprofit annual report penalties and repeals a duplicative provision to reduce enforcement ambiguity.

Died In Committee
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Bill Summary · SB 2792

Summary — SB 2792 (2025)

Title: Nonprofit corporations; clarify penalty for failure to file annual report, repeal related provision
Classification/Subjects: Business and commerce; Judiciary, Division A
Introduced: March 14, 2025
Final status: Died in Committee

Purpose

SB 2792 was intended to revise statutory language governing penalties for nonprofit corporations that fail to file required annual reports. The bill proposed to clarify how penalties are applied and to repeal a related provision that the bill sponsor viewed as redundant, conflicting, or unclear.

Key provisions (as described in bill title and legislative summary)

  • Clarify the statutory penalty regime for nonprofit corporations that do not file their required annual reports (e.g., timing of penalty assessment and type of sanction).
  • Repeal an existing provision related to annual-report penalties that the bill considered duplicative or inconsistent with the clarified penalty language.

Note: The text of SB 2792 was not provided in the materials supplied; the description above is based on the bill title and summary language. No specific penalty amounts, criminal classifications, or procedural mechanics were available.

Who would be affected

  • Nonprofit corporations required to file annual reports with the state (including charitable organizations, trade associations, foundations, etc.).
  • State administrative offices that process nonprofit filings (commonly the Secretary of State or equivalent) — potentially altering how they assess and notify entities of penalties.
  • Attorneys, compliance officers, and persons advising nonprofits on filing obligations.
  • Courts or administrative adjudicators if the bill changed enforcement or appeal processes.

Potential impacts

  • Reduced ambiguity in enforcement: clearer statutory language may lower disputes about when and how penalties attach.
  • Administrative changes: agencies may need to update forms, notices, and internal procedures to reflect the clarified penalty framework and repeal.
  • Compliance incentives: clearer penalties could increase timely filings, or conversely, change the deterrent effect depending on the clarified sanction.
  • Fiscal impact: likely minimal unless the bill altered fine amounts or created new enforcement procedures (no fiscal details available).

Legislative timeline and procedural status

  • 2025-01-20: Referred to Judiciary, Division A (per provided actions)
  • 2025-01-30: Title sufficient — “Do Pass” recommendation
  • 2025-02-05: Passed (record shows “Passed” on this date)
  • 2025-02-06: Transmitted to House
  • 2025-02-10: Referred to Business and Commerce
  • 2025-03-04: Died In Committee (also listed as a final status)
  • 2025-03-14: Filed; Received by the Secretary of the Senate; Introduced (dates overlap)
  • 2025-04-03: Read first time; Referred to Criminal Justice

Note on records: the legislative-action list contains inconsistent and overlapping dates (e.g., actions before the listed introduction date and multiple “Died In Committee” entries). The authoritative status shown is “Died In Committee,” indicating the bill did not become law during this session.

Next steps (if reintroduced)

If reintroduced, the bill sponsor could:
- Provide full statutory text and a fiscal note clarifying enforcement mechanics and any fee changes.
- Engage with administrative agencies and nonprofit stakeholders to refine language and address concerns about enforcement and administrative burden.

Compiled from official sources — confirm details with the bill’s official record.

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