GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2011

H                                                                                                                                                   2

HOUSE BILL 572

Committee Substitute Favorable 5/16/11

Short Title:        Accountability for Publicly Funded Nonprofits.	(Public)
Sponsors:
Referred to:

March 31, 2011

A BILL TO BE ENTITLED

AN ACT to provide greater accountability for nonprofit entities that receive public funding.

The General Assembly of North Carolina enacts:

SECTION 1.  Part 2 of Article 16 of Chapter 55A of the General Statutes is amended by adding a new section to read:

"§ 55A-16-24.  Financial statements for the public.

Notwithstanding any provisions in the articles of incorporation or bylaws, a corporation that receives any public funding in the form of grants or loans from a local government, the State, or the federal government shall provide its latest annual financial statements upon written demand from any member of the public. The statements shall be substantively similar to those required under G.S. 55A-16-20 but shall contain additional details about the amount of public funds received and how those funds were used. Additionally, a corporation that receives public funding shall provide, upon written demand from any member of the public, a copy of its most recently completed and filed Internal Revenue Service Form 990, except of any information not required for public disclosure pursuant to 26 U.S.C. § 6104(d)(3). A corporation may comply with the provisions of this section by maintaining on its public Web site a financial report as described in this section and a copy of its most recent Internal Revenue Service Form 990 or by having such materials posted, as part of a database of similar documents of other tax-exempt organization, on a Web site established and maintained by another entity, provided that the entity does not charge a fee or require Web site registration to access the information."

SECTION 2.  This act becomes effective October 1, 2011, and applies to nonprofit corporations receiving public funding in the form of grants or loans on or after that date.