Secretary of State
Secretary Grimes' Nonprofit Law Passed by General Assembly
Yesterday, the Kentucky Senate unanimously passed House Bill 440, legislation recommended by Secretary of State Alison Lundergan Grimes to make important substantive changes to laws governing non-profit entities in the Commonwealth. The House of Representatives also unanimously approved the bill, which will now be sent to Governor Beshear for his signature.
“Kentucky’s non-profit entities perform vital functions in our communities, and I am proud that the General Assembly has acted to implement these significant reforms,” Grimes said. “I’m grateful to the Kentucky Nonprofit Network for its support and to the nonprofit task force I created in 2012 for its hard work. I’m excited to see our efforts pay off.”
More than 4,300 nonprofit corporations have registered with the Secretary of State since Grimes took office.
The legislation will bring Kentucky law in line with more than 15 other states by adopting the Uniform Unincorporated Non-profit Association Act, providing default rules for organizing informal non-profit entities such as little league teams and local fundraising efforts. Additionally, the legislation will allow these non-profits to make a filing with the Secretary of State, affording participants limited liability from debts and obligations of the organization.
House Bill 440 will also bring much-needed updates to the state's non-profit corporation laws, accounting for advances in technology and spelling out how non-profits can utilize technology such as email and conference calling.
The bill is sponsored by Rep. Jody Richards, House Speaker pro tempore (D-Bowling Green), and co-sponsored by Reps. Thomas Kerr (R-Taylor Mill) and Chris Harris (D-Forest Hills). “Secretary Grimes and I both agreed that it was past time to update the antiquated Kentucky statutes governing non-profits, so I was proud to carry this important legislation, and I’m excited it was passed by the General Assembly,” said Richards.
Danielle Clore, Executive Director of the Kentucky Nonprofit Network, said, “Kentucky Nonprofit Network is pleased the General Assembly made House Bill 440 a priority during this short session and appreciate Secretary Grimes’ advocacy on the long overdue modernization of these laws impacting the state’s third largest industry. This guidance will allow nonprofit organizations to take advantage of technology to become more effective and efficient in serving the citizens of the Commonwealth.”
For more information, the text of the bill is located on the Legislative Research Commission's website.