The committee heard testimony on House Bill 4745, sponsored by Representative Wolford, which would add an exemption to Michigan's charitable organizations and solicitations framework for small nonprofits that primarily collect, transport and distribute donated food and do not pay solicitors.

Representative Wolford framed the bill as targeting an enforcement outcome that treated small volunteer-run food-distribution groups the same as large professional fundraisers. He described a local nonprofit, Torch 180, which was told it had to register and comply with paperwork that could include an audit costing as much as $20,000. "This law was designed to regulate large professional fundraisers. However, it ended up treating Torch 180 the same way," the sponsor said.

Rhonda Callahan, founder and executive director of Torch 180, described the group's food-distribution partnership with Trader Joe's and other donors. She said the value of in-kind grocery donations reported to her organization pushed the group's Form 990 reporting above $500,000 in in-kind donations for a year and triggered audit requirements in Michigan. Callahan said Torch 180 is largely volunteer-run, raises roughly $30,000 in cash a year, and that an audit costing $18,000–$20,000 would threaten the organization's ability to operate.

Callahan told the committee the organization distributes hundreds of pounds of groceries weekly and serves "200 to 250 families" locally and "over 500 families" in a separate California operation. Representative Nyer asked about the $25,000 threshold referenced in the statute; Wolford and supporters pointed to Michigan Compiled Laws language and said the bill's intent is to exempt organizations that do not solicit or receive more than $25,000 in monetary contributions during a 12-month period while clarifying treatment of pass-through donated food.

Committee members raised questions about the scale of affected organizations and whether some groups were limiting operations to avoid thresholds that trigger audits. Representative Regus asked whether organizations might keep operations small to avoid audit costs; witnesses said that was possible and that some groups might curtail or stop service rather than endure audit costs. No committee vote on HB4745 was recorded in the transcript excerpt.

Support and opposition cards were submitted and read into the record; according to the transcript, Paige Fultz from LARA filed a card supporting prior bills earlier in the hearing and the clerk also read additional cards later in the session noting both support and opposition from various institutions (cards are on file).