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Bill

Bill

S 6968

Relates to the tax exempt status of not-for-profit corporations or members convicted of criminal facilitation

2025 Regular Session Introduced by Andrew Lanza

Gives tax authorities power to deny, suspend, or revoke tax-exempt status for nonprofits or members convicted of criminal facilitation, with grounds and hearings.

REFERRED TO BUDGET AND REVENUE
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Bill Summary · S 6968

Summary of Bill S 6968

Basic Information

  • Bill Number: S 6968
  • Title: Relates to the tax exempt status of not-for-profit corporations or members convicted of criminal facilitation
  • Sponsor: Andrew J. Lanza (primary)
  • Introduced: March 27, 2025
  • Status: Referred to Budget and Revenue (listed twice in the record)
  • Legislative Actions: On March 27, 2025, the bill was referred to the Budget and Revenue committee.

Purpose and Intent

  • The bill appears to address the eligibility and status of tax-exempt designation for not-for-profit corporations and possibly for individuals (members) associated with those entities who have been convicted of criminal facilitation.
  • Based on the title, the core intent is to modify how criminal conviction related to “criminal facilitation” impacts tax-exempt status, potentially enabling denial, suspension, or revocation of tax-exempt status for such entities or individuals.

Key Provisions (What the bill would address)

  • While the exact text of the measure is not provided here, the bill is expected to include:
    • A definition of “criminal facilitation” within the context of not-for-profit organizations.
    • Grounds for altering, denying, suspending, or revoking tax-exempt status for not-for-profit corporations.
    • Possible penalties or corrective actions for members within these organizations who are convicted of criminal facilitation.
    • Procedures for determining eligibility changes, including notices, hearings, and appeals.
    • Transitional provisions and effective dates for any changes in tax-exempt status rules.
  • Note: The precise language, thresholds, and procedural steps would be defined in the bill’s text. The summary above reflects likely areas typical of tax-exemption-related measures tied to criminal conduct.

Impact and Affected Parties

  • Affected Entities: Not-for-profit corporations seeking or currently holding tax-exempt status; and potentially individual members or officers of those organizations.
  • Tax Authority: State or applicable tax agency responsible for administering tax-exempt status may implement new processes and criteria.
  • Donors and Beneficiaries: Potential changes to the status of a donor-recipient entity could affect donor tax considerations and the availability of tax benefits.
  • Public Policy Considerations: The bill signals a policy objective to deter criminal activity within not-for-profit organizations and to ensure tax-exempt status is aligned with lawful and ethical conduct.

Procedural and Timeline Aspects

  • Referral: The bill was referred to the Budget and Revenue committee on March 27, 2025, indicating consideration of potential fiscal impacts alongside policy changes.
  • Next Steps: After referral, the bill would typically move through committee hearings, potential amendments, and floor consideration in the respective chamber. Tracking the bill’s text and committee reports will clarify the exact provisions and effective dates.

Notes

  • The summary reflects the bill’s stated purpose in its title and the available procedural information. The precise provisions, definitions, and timelines will be determined by the bill’s full text and any subsequent amendments.

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

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