Nonprofit corporations; clarify penalty for failure to file annual report, repeal related provision.
Summary
SB 2792 amends Mississippi’s nonprofit corporation reporting law to make clear that a nonprofit that fails to file its annual report on time, or fails to include required information in that report, may face the penalties of administrative dissolution or disallowance of nonprofit status, or both. The bill keeps the existing annual reporting framework in place for domestic and foreign nonprofit corporations authorized to do business in Mississippi, including required disclosures about the organization’s name, registered agent, principal office, principal officer, business purpose, and whether it received public funds from the state or a local government.
The measure also requires the Secretary of State to notify a nonprofit if its annual report is incomplete and gives the organization 30 days to correct the filing and still have it treated as timely. It excludes water associations from these requirements and repeals Section 79-11-391, which authorized a separate nonprofit status report. The act takes effect July 1, 2025.
Impact
The bill primarily affects Mississippi nonprofit corporations and the Secretary of State’s Business Services Division by strengthening enforcement of annual report requirements and clarifying the consequences for noncompliance. It does not create a new reporting regime, but it reinforces existing disclosure obligations and ties deficient or late filings more explicitly to administrative dissolution and loss of nonprofit status. It also removes a separate statutory provision for a nonprofit status report, simplifying the reporting structure in Chapter 11 of Title 79.
Sentiment
The available legislative history suggests the bill was noncontroversial and broadly accepted. It passed the Senate unanimously, 51-0, with no recorded committee transcript opposition or debate in the provided materials. The absence of dissent and the unanimous vote indicate general support for clarifying filing obligations and enforcement mechanisms for nonprofits.
Contention
No major points of contention are reflected in the provided record. The only policy-sensitive element is the requirement that nonprofits disclose whether they received public funds and identify the governmental source of those funds, along with the possibility of administrative dissolution or loss of nonprofit status for late or incomplete filings. However, there is no evidence in the supplied materials of organized opposition to those provisions or disagreement over the repeal of the status-report section.