2.__Licensed health care organizations or institutions.__ Licensed health care organizations or institutions with clearly defined and recognized clientele;

3.__Veterans organizations.__Veterans organizations; and

4.__Churches.__Churches.

Sec. 4. Classification and registration system for nonprofit corporations. The Secretary of State shall develop a system of classification and registration for all nonprofit corporations operating within the State. As part of the registry, the Secretary of State shall develop a method to facilitate the reporting of information regarding all funds collected by nonprofit corporations, including, but not limited to:

1. The sources of funds;

2. The reasons for collections of funds;

3. How collected funds are disbursed; and

4. The specific purposes for and desired outcomes from the disbursement of funds.

The Secretary of State shall submit the proposed system, together with any necessary implementing legislation, to the Joint Standing Committee on Judiciary no later than December 3, 2003. Following its receipt and review of the report, the Joint Standing Committee on Judiciary may report out legislation to the Second Regular Session of the 121st Legislature.

SUMMARY

This bill prohibits the State, municipalities and counties from disbursing funds to certain nonprofit corporations. The bill also requires the Secretary of State to develop a system of classification and registration for all nonprofit corporations in the State and a method to facilitate reporting of information regarding the collections of funds.