SENATE COMMERCE COMMITTEE

STATEMENT TO

SENATE, No. 185

STATE OF NEW JERSEY

DATED: MARCH 7, 1996

      The Senate Commerce Committee reports favorably Senate Bill No. 185.

      This bill requires a nonprofit organization which receives federal, State or municipal funding to file at the close of the organization's fiscal year a financial disclosure form with the clerk of the county or municipality, or with the State agency, from which or through which the nonprofit organization receives the funding. The bill imposes this requirement upon nonprofit organizations which are determined by the federal Internal Revenue Service to be tax exempt organizations pursuant to section 501 (c)(3) or (4) of the federal Internal Revenue Code of 1986, 26 U.S.C.§501(c)(3) and (4).

      The bill requires the financial disclosure form to disclose all compensation and benefits provided by the nonprofit organization to its officers, directors, trustees and employees, and to individually disclose the compensation and benefits provided to the organization's officers, directors, trustees and to the five highest paid employees of the nonprofit organization other than the officers, directors or trustees. In lieu of this requirement the nonprofit organization may file a copy of its most recent Internal Revenue Service Form 990 and Schedule A(990), if the organization filed these forms, since the same salary information is included in the Form 990 and Schedule A(990).

      In addition to the salary information regarding officers, directors, trustees and employees provided in a financial disclosure form or in a Form 990 and Schedule A(990), a nonprofit organization is also required to disclose: whether any of the officers, directors, trustees and employees are related by blood, marriage or adoption to each other or to any officer, director, trustee or employee who receives compensation from an affiliated, parent or subsidiary nonprofit organization; and whether any of the officers, directors, trustees or employees of the nonprofit organization are officers, directors, trustees or employees of an affiliated, parent or subsidiary nonprofit organization.

      This bill was pre-filed for introduction in the 1996 session pending technical review. As reported, the bill includes the changes required by technical review which has been performed.