Introduced Version
HOUSE BILL No. 1068
_____
DIGEST OF INTRODUCED BILL
Citations Affected:
IC 23-17-30.
Synopsis: Donations by nonprofit corporations. Prohibits a nonprofit
corporation that donates or grants money to an individual or an entity
from imposing a condition or restriction on the donation or grant if the
condition or restriction infringes upon a right or legal status provided
by the United States Constitution or the Indiana Constitution. Allows
the secretary of state to administratively dissolve a nonprofit
corporation that imposes such a condition or restriction on a donation
or a grant.
Effective: July 1, 2002.
January 8, 2002, read first time and referred to Committee on Rules and Legislative
Procedures.
Introduced
Second Regular Session 112th General Assembly (2002)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in
this style type, and deletions will appear in
this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in
this style type. Also, the
word
NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in
this style type or
this style type reconciles conflicts
between statutes enacted by the 2001 General Assembly.
HOUSE BILL No. 1068
A BILL FOR AN ACT to amend the Indiana Code concerning
business and other associations.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 23-17-30-5; (02)IN1068.1.1. -->
SECTION 1.
IC 23-17-30-5
IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2002]: Sec. 5. (a) A corporation incorporated under this article
that donates or grants money to an individual or an entity may not
impose a condition or restriction on the donation or grant if the
condition or restriction infringes upon a right or legal status
provided by the Constitution of the United States or the
Constitution of the State of Indiana.
(b) The secretary of state shall commence a proceeding under
section 6 of this chapter to administratively dissolve a corporation
that violates this section.
SOURCE: IC 23-17-30-6; (02)IN1068.1.2. -->
SECTION 2.
IC 23-17-30-6
IS ADDED TO THE INDIANA CODE
AS A
NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2002]:
Sec. 6. (a) If the secretary of state determines that a
ground exists under section 5 of this chapter for dissolving a
corporation, the secretary of state shall serve the corporation with
written notice of the determination under
IC 23-17-6-4.
(b) If the corporation does not:
(1) correct each ground for dissolution; or
(2) demonstrate to the reasonable satisfaction of the secretary
of state that each ground determined by the secretary of state
does not exist;
not later than sixty (60) days after service of the notice is perfected
under
IC 23-17-6-4
, the secretary of state may administratively
dissolve the corporation by signing a certificate of dissolution that
recites the grounds for dissolution and the effective date of the
dissolution. The secretary of state shall file the original of the
certificate and serve a copy on the corporation under
IC 23-17-6-4.
(c) A corporation administratively dissolved continues the
corporation's corporate existence but may not carry on any
activities except those necessary to wind up and liquidate the
corporation's affairs under
IC 23-17-22-5
and notify the
corporation's claimants under
IC 23-17-22-6
and
IC 23-17-22-7.
(d) The administrative dissolution of a corporation does not
terminate the authority of the corporation's registered agent.