House Bill 1455

AN ACT TO REQUIRE THAT NOT-FOR-PROFIT CORPORATIONS AND ASSOCIATIONS THAT RECEIVE MEMBERSHIP DUES FROM STATE AGENCIES AND LOCAL GOVERNING AUTHORITIES SHALL MAKE CERTAIN FINANCIAL REPORTS SHOWING HOW FUNDS DERIVED FROM PUBLIC SOURCES WERE EXPENDED; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. (1) (a) Any corporation organized under Section 79-11-31 et seq., that receives funds from state agencies or local governing authorities in the form of membership dues shall report annually to the Secretary of State a complete accounting of all funds received from each state agency and local governing authority. Additionally, each corporation shall report the uses to which such funds were directed and shall provide an itemized statement of each person, firm, corporation or other entity to which such funds were paid. In cases where the corporation expended such funds for its own operations, the corporation shall report the use for which such funds were expended, including, but not limited to, staff salaries, travel, utilities, receptions, goods or services provided to others and other expenses.

(b) Any corporation organized under Section 79-11-31 et seq. that also receives funds from state agencies or local governing authorities in the form of membership dues, and that uses funds derived from dues for lobbying activities reported in accordance with Section 5-8-9, shall prepare a supplemental report detailing the amount of dues funds expended for each reported lobbying activity.

(2) Reports required under this section shall be filed with the Secretary of State no later then January 15 of each year and shall cover all receipts and disbursements made during the previous calendar year. Any corporation that is required to make a report under subsection (1) of this section that fails to report by January 15 shall be given notice by registered mail of the requirement to make a report. Such notice shall be mailed to any corporation not in compliance by February 1 of each year. Any firm that fails to report by March 1 shall be dissolved administratively.

(3) The Secretary of State may promulgate all necessary rules, regulations and forms necessary to accomplish the purposes of this section.

(4) The Secretary of State shall publish annually a report of corporations that have failed to comply with the provisions of this section. No state agency or local governing authority shall make any payment of membership dues to any organization that has been dissolved by authority of this section.

(5) Corporations required to report under this section shall implement all necessary changes in their accounting systems to capture all information required by subsection (1) of this section.

SECTION 2. (1) (a) Any unincorporated association that receives membership dues from any state agency or local governing authority shall prepare annually a report containing a complete accounting of all public funds received from each state agency and local governing authority. Additionally, each organization shall report the uses to which such funds were directed and shall provide an itemized statement of each person, firm, corporation or other entity to which such funds were paid. In cases where the organization expended such funds for its own operations, the association shall report the use for which such funds were expended, including, but not limited to, staff salaries, travel, utilities, receptions, goods or services provided to others and other expenses.

(b) Any association that receives funds from state agencies or local governing authorities in the form of membership dues and that uses funds derived from dues for lobbying activities reported in accordance with Section 5-8-9, shall prepare a supplemental report detailing the amount of dues funds expended for each reported lobbying activity.

(2) Reports required by this section shall be prepared no later than January 15 of each year and shall cover all receipts and disbursements made during the previous calendar year. All reports prepared under the authority of this section shall be maintained for public inspection at the offices of the association during regular business hours.

(3) Each association shall transmit a copy of its report to every state agency and local governing authority that paid dues to the association in the preceding year by February 1 of each year. No state agency or local governing authority shall pay any dues to any association that fails to provide a copy of its report by February 1 for the next twelve (12) months.

(4) Associations required to report under this section shall implement all necessary changes in their accounting systems to capture all information required by subsection (1) of this section.

(5) For purposes of this section, the term "association" means any organization that is not incorporated and is not operated for the purpose of providing profit to any person.

SECTION 3. For purposes of this act, the terms "agency" and "governing authority" shall have the meanings ascribed to them in Section 31-7-1.

SECTION 4. This act shall take effect and be in force from and after July 1, 2003.