Secretary of State seeks clarity on charitable registration fee handling, requests suspension authority for nonresponsive charities

Deputy Secretary of State Michael Lohrey told the Economic Matters Committee that House Bill 239, substantially similar to a departmental bill considered previously, would clarify how registration fees collected from charities are handled and would permit the Secretary of State to suspend charities that are unresponsive to registration or enforcement processes.

Lohrey told lawmakers an audit raised questions about whether fees should be remitted to the central collection unit (CCU). The department wants the statute clarified so fees remain available to support outreach and compliance work with charities. He said the office prefers to work with charities to bring them into conformity rather than immediately impose fines. The bill would also allow suspension of charities that fail to respond so the public registry more reliably reflects active, compliant organizations.

Lohrey identified staff who would answer technical questions, including the charities and legal services division and the assistant attorney general. He also requested a minor conforming amendment to clarify language on page 3, line 19 of the bill. The committee had no questions at the hearing and took no formal action on the bill.