The bill amends sections 117.30, 117.36, and 1715.51 of the Revised Code and enacts new sections 117.281, 1715.60 through 1715.71 to improve transparency and oversight of non-private endowment funds. It introduces definitions for key terms such as "covered organization," "non-private endowment fund," and "non-private institution." The legislation establishes a framework for civil actions to recover public money from tax-exempt organizations that do not comply with federal tax regulations, allowing state auditors and public office officers to initiate legal action within 120 days of receiving non-compliance reports. It also requires that the attorney general be notified of such findings.

Additionally, the bill outlines the responsibilities of non-private institutions managing donor-restricted endowment funds, including the preparation of annual reports on fund performance and compliance with donor restrictions, as well as sustainability reviews every five years. It allows for modifications to endowment obligations if sustainability reviews indicate unsustainability, with the attorney general involved in these proceedings. The attorney general is also empowered to investigate concerns regarding non-compliance and can issue corrective action plans, with potential legal consequences for failure to comply. The bill clarifies that it does not create or modify criminal liability and applies only to endowment funds established after its effective date, while repealing existing sections of the Revised Code related to these matters.

Statutes affected:
As Introduced: 117.30, 117.36, 1715.51