LD 1948
pg. 2
Page 1 of 2 An Act Relating to Unfair Competition Between Nonprofit Organizations and Small... LD 1948 Title Page
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LR 2145
Item 1

 
3.__Loss of exemption; penalty.__A nonprofit organization that
violates this section may not claim an exemption from tax for any
year in which a violation occurred.__In addition, an organization
that violates this section may be assessed a civil penalty of
$5,000 per violation.__A nonprofit organization has the burden of
proving compliance with this section before claiming an exemption.

 
4.__Enforcement.__The Attorney General may prosecute
violations of this section by commencing a civil action in
Superior Court.

 
SUMMARY

 
This bill prevents nonprofit organizations from using their
nonprofit status to compete with small businesses with 25 or
fewer employees. Nonprofit organizations may not provide goods
or services to the general public at a price that is at least 15%
less than the price at which those goods or services are
available through a small business. A violation of these
provisions results in the loss of tax exemptions and may subject
the violator to a civil penalty of $5,000.


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