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Committee rejects nonprofit exemption to unclaimed‑property rules after heated debate
Summary
A proposal to exempt nonprofits with annual revenue under $5 million from state unclaimed‑property remittance requirements failed on a 3–3 roll call. Supporters said the measure would help smaller nonprofits keep funds they hold temporarily; opponents said the auditor’s office is better equipped to reunite money with rightful owners.
A Senate committee on Monday voted down Senate Bill 283, a measure that would have created a limited exemption allowing nonprofit organizations with annual revenue below $5 million to retain unclaimed property on their books rather than remit it to the state auditor.
Sponsor testimony described the bill as a carve‑out for small nonprofits that hold funds payable to others — for example, refundable initiation deposits or small payroll checks that the nonprofit is unable to deliver. Steve Lux, testifying as a nonprofit treasurer, told the committee an illustrative liability for one club exceeded $1 million in refundable deposits and said many nonprofit treasurers and local churches were unaware of unclaimed‑property duties.
Why it matters: Committee witnesses said Arkansas…
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