HI HR134

Urges the Department of Taxation, Department of Human Services, and United States Internal Revenue Service to enforce executive salary compensation regulations for nonprofit organizations providing services to homeless individuals under section 501(c)(3) of the Internal Revenue Code.

Cites the "private inurement prohibition" which prevents individuals with control over tax-exempt charities from receiving unfair or unreasonable benefits from the organization's income or assets.

Notes that the Legislature has appropriated approximately $63,000,000 for homeless services in previous years without reducing the number of homeless persons, with significant portions spent on executive salaries and administrative costs.

States that courts and the IRS have consistently ruled that any unreasonable benefit or inurement, however small, is impermissible under section 501(c)(3).

Requires certified copies of the resolution be transmitted to the Commissioner of the Internal Revenue Service, Director of Taxation, and Director of Human Services.