The Disclosure Digest: March 11, 2019
Explore the laws governing nonprofit donor disclosure with Ballotpedia. Each weekly edition of The Disclosure Digest will highlight noteworthy legislation, pending litigation, and major activities by advocacy groups.
Nonprofit organizations do not distribute surplus revenues as profits or dividends to shareholders. Instead, nonprofits use revenues for self-preservation or expansion. Tax-exempt nonprofits are regulated under Section 501 of the Internal Revenue Code. States may subject nonprofits to additional regulations beyond those imposed by the federal government. Under federal law, nonprofits are generally not required to disclose to the public information about their donors. State laws, however, may require such disclosure. Some say expanded donor disclosure provisions minimize the potential for fraud and establish public accountability. Meanwhile, others say that disclosing information about donors violates privacy rights and can inhibit charitable activity.
This week, we bring you up to speed on HR1, a federal bill that would expand donor disclosure requirements for nonprofit groups making political expenditures.
Federal update: House approves HR1, Senate not expected to pass
In a 234-193 party-line vote, the House passed HR1, a wide-ranging bill that would make changes to federal election and ethics laws, and campaign finance disclosure requirements. A total of 234 Democrats voted in favor of the bill; 193 Republicans voted against it (five members did not vote). (Sources: Congress.gov)
- What comes next? The bill now goes to the Senate. Majority Leader Mitch McConnell (R) denounced HR 1 in an op-ed for The Washington Post, saying he would not bring the bill to a vote.
- What does the bill propose? We’re focused on the bill’s campaign finance and donor disclosure requirements, which are also referred to as the DISCLOSE Act.
- The bill would establish donor disclosure requirements for covered organizations making campaign-related disbursements equaling or exceeding $10,000 total in an election cycle.
- A "campaign-related disbursement" would be defined as:
- An independent expenditure expressly advocating for the election or defeat of a candidate for federal office
- Any communication that expresses support of or opposition to a candidate without expressly advocating for or against his or her election
- An electioneering communication or covered transfer as defined by existing law
- A covered organization would be defined as:
- A corporation or limited liability corporation
- A nonprofit organized under section 501(c) of the Internal Revenue Code
- This would include 501(c)4 organizations, which are not required to disclose donors under existing law.
- A labor union
- A political group organized under section 527 of the Internal Revenue Code (also known as a super PAC)
- Such organizations are not generally required to disclose their donors under existing law.
What we're reading
- CBS News, "House passes H.R. 1, a sweeping anti-corruption and voting rights bill," March 8, 2019
- The New York Times, "Only One Roadblock on the Road to Reform: Mitch McConnell," March 8, 2019
- Salon, "Republicans freak out over HR1: They don't want America to have fair elections," March 8, 2019
- National Review, "The Democrats’ Election-Reform Bill Is an Unconstitutional, Authoritarian Power Grab," March 10, 2019
- Hot Air, "H.R.1 Passes In The House, “For The People Act” DOA In The Senate," March 9, 2019
The big picture
Number of relevant bills by state: We're currently tracking 65 pieces of legislation dealing with donor disclosure. On the map below, a darker shade of green indicates a greater number of relevant bills. Click here for a complete list of all the bills we're tracking.
Number of relevant bills by current legislative status
Number of relevant bills by partisan status of sponsor(s)
Recent legislative actions
Below is a complete list of legislative actions taken on relevant bills in the past week. Bills are listed in alphabetical order, first by state then by bill number. Know of any legislation we're missing? Please email us so we can include it on our tracking list.
- Colorado SB068: This bill would expand the definition of an electioneering communication for the purposes of campaign finance disclosure.
- Passed third reading in House March 8. Senate approved Feb. 5.
- Georgia SB213: This bill would adjust contribution thresholds triggering disclosure requirements.
- Senate approved March 8. Sent to House.
- Idaho S1113: This bill would expand existing disclosure requirements to local elections and campaigns.
- House State Affairs Committee reported favorably March 8.
- Iowa HSB223: This bill would prohibit public agencies from requiring 501(c) entities to furnish them with personal information about donors.
- Judiciary Committee reported favorably with amendment March 7.
- Maryland HB1026: This bill would require the State Department of Assessments and Taxation to transmit to the State Board of Elections the names of businesses meeting certain registration requirements. It would also require the State Board of Elections of cross-reference these business names with the names of businesses listed as contributors on campaign finance reports.
- House hearing March 5.
- Minnesota SF2105: This bill would amend the definitions of express advocacy and electioneering communication and revise attendant disclosure requirements.
- Introduced and referred to State Government Finance and Policy and Elections committees March 7.
- Minnesota HF2050: This bill would amend the definitions of express advocacy and electioneering communication and revise attendant disclosure requirements.
- House hearing March 8.
- Missouri HB913: This bill would establish disclosure requirements for the funding of inaugural activities.
- General Laws Committee hearing March 11.
- New Hampshire SB105: This bill would establish disclosure requirements for certain contributions made to inaugural committees.
- Senate approved March 7.
- New Mexico SB3: This bill would expand disclosure requirements for groups making independent expenditures for political purposes.
- House approved with amendments March 9.
- North Dakota HB1037: This bill would re-enact previously rescinded disclosure requirements for contributions made to ballot measure campaigns.
- Senate Veterans Affairs Committee hearing March 8.
- South Dakota SB114: This bill would require campaign contributions from minors be attributed to their parents for campaign finance disclosure and reporting purposes.
- Sent to governor March 6.
- Utah HB0319: This bill would establish disclosure requirements for entities spending money on ballot proposition advertisements.
- Senate Government Operations and Political Subdivisions Committee reported favorably March 7.
- Washington HB1379: This bill would amend a state law requiring that entities producing political advertisements publicly disclose their top five donors.
- Passed third reading in House March 8.
- Washington SB5221: This bill would amend a state law requiring that entities producing political advertisements publicly disclose their top five donors.
- Executive session in House State Government and Tribal relations Committee March 11.
- West Virginia SB622: This bill would make general revisions to the state's campaign finance disclosure laws.
- House and Senate approved March 9.
See also
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