HOUSE DOCKET, NO. 643        FILED ON: 1/17/2017

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 3592

The Commonwealth of Massachusetts

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PRESENTED BY:

Peter J. Durant

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To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:

The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:

An Act limiting executive salaries of state funded nonprofit organizations and public charities.

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PETITION OF:

HOUSE DOCKET, NO. 643        FILED ON: 1/17/2017

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 3592

[SIMILAR MATTER FILED IN PREVIOUS SESSION
SEE HOUSE, NO. 1714 OF 2013-2014.]

The Commonwealth of Massachusetts

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In the One Hundred and Ninetieth General Court
(2017-2018)

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An Act limiting executive salaries of state funded nonprofit organizations and public charities.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
 

SECTION 1. Chapter 180 of the General Laws is hereby amended by adding the following section:

Section 30. (a) A nonprofit corporation incorporated under the laws of the commonwealth and subject to this chapter or a public charity holding funds subject to the provisions of section 8 of chapter 12 that receives any public funds from the commonwealth equal to or greater than 30 per cent of such nonprofit or public charity’s yearly budget shall be subject to the provisions of this section; provided, however that a non-profit hospital corporation organized under chapter 176A shall not be subject to this section.

(b) The annual compensation of the executive staff of a nonprofit corporation or public charity governed by this section shall be limited based on the annual budget size of the organization and executive positions as follows:

(1) Position Budget Size (dollars) Salary

Executive Director/CEO < $249,999 $49,719

250,000 – 999,999 74,859

1,000,000 - 2,499,999 95,016

2,500,000 – 9,999,999 130,679

10,000,000 – 24,999,999 138,733

25,000,000 < 213,165

Associate Director / COO < $999,999 $51,530

1,000,000 - 2,499,999 74,841

2,500,000 – 9,999,999 92,726

10,000,000 – 24,999,999 111,548

25,000,000 < 138,987

Programming Director < $999,999 $59,574

1,000,000 – 2,499,999 71,082

2,500,000 –9,999,999 89,483

10,000,000 – 24,999,999 90,655

25,000,000 < 112,700

Administrative Director < $2,499,999 $69,324

2,500,000 – 24,999,999 78,934

25,000,000 < 88,113

For the purposes of this section, compensation shall include salary, bonus and incentive pay, deferred compensation and nontaxable level benefits.

(c) Annual compensation increases, beginning in FY’14, for any such employee under this5 section shall be limited to the per cent change in inflation as measured by the annual per cent change in the consumer price index for all urban consumers for the Boston metropolitan area as determined by the Bureau of Labor Statistics of the United States Department of Labor.

SECTION 2. Notwithstanding any general or special law to the contrary, a nonprofit corporation incorporated under the laws of the commonwealth and subject to chapter 180 of the General Laws or a public charity holding funds subject to the provisions of section 8 of chapter 12 of the General Laws receiving any public funds from the commonwealth which are equal to or greater than 30 per cent of such nonprofit or public charity’s yearly budget shall file with the state secretary the amount of the annual compensation of its employees listed in sections 30 (b) for each calendar year on or before March 31, of the following year. For the purposes of this section, compensation shall include salary, bonus and incentive pay, deferred compensation and nontaxable level benefits.

SECTION 3. A nonprofit corporation incorporated under the laws of the commonwealth and subject to this chapter or a public charity holding funds subject to the provisions of section 8 of chapter 12 found in violation of Section 30 (b) of this chapter shall lose its status as a non-profit as it is organized and operates under the general laws.

SECTION 4. Subsection (b) of section 30 of chapter 180 of the General Laws shall take effect January 1, 2013.