Secretary of State
Governor Signs Secretary Grimes' Nonprofit Law
Today, Secretary of State Alison Lundergan Grimes participated in a ceremony in which Governor Beshear signed a bill Grimes recommended improve the laws that govern non-profit entities in the Commonwealth. Bill sponsor Rep. Jody Richards, House Speaker pro tempore (D-Bowling Green), and representatives from the Kentucky Nonprofit Network also attended the ceremony.
“There are approximately 27,000 nonprofit entities registered to do business in Kentucky, and they benefit our communities in a variety of important ways, from creating important jobs, to combating hunger, to assisting individuals with disabilities, to supporting our youth, to promoting the arts,” said Grimes. “House Bill 440 will help them continue to serve our communities by simplifying and improving the laws that govern them, and I’m proud that our efforts to pass this legislation have paid off.”
More than 4,300 nonprofit corporations have registered with the Secretary of State’s office since Grimes took office.
House Bill 440 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.
In addition to Richards, the bipartisan legislation was 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.