HOUSE DOCKET, NO. 1816        FILED ON: 1/17/2019

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 3708

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 the salaries of executives in non-profit organizations.

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PETITION OF:

HOUSE DOCKET, NO. 1816        FILED ON: 1/17/2019

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 3708

The Commonwealth of Massachusetts

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In the One Hundred and Ninety-First General Court
(2019-2020)

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An Act limiting the salaries of executives in non-profit organizations.

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 this section; provided, however that a non-profit hospital service 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 subject to this section shall be limited based on the annual budget size of the organization and executive positions as follows:

Position Budget Size (in dollars) Salary (in dollars)

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 fiscal year 2020, for any such employee subject to this 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.

(d)  Notwithstanding any general or special law to the contrary, a nonprofit corporation or public charity subject to this section shall file with the state secretary the amount of the annual compensation of its employees listed in subsection (b) for each calendar year on or before March 31 of the following year.

(e) A nonprofit corporation or public charity that violates this section shall lose its status as a nonprofit as it is organized and operates under the general laws.

SECTION 2. This act shall take effect January 1, 2020.