The Disclosure Digest: March 4, 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.
On Feb. 26, the House Administration Committee voted 6-3 in favor of HR1, a wide-ranging bill that would make changes to federal election and ethics laws, and campaign finance disclosure requirements. The vote broke along party lines. Democrats Zoe Lofgren, Jamie Raskin, Susan Davis, G.K. Butterfield, Marcia L. Fudge, and Pete Aguilar voted in favor of the bill. Republicans Rodney Davis, Mark Walker, and Barry Loudermilk voted against it. (Sources: Congress.gov, Committee on House Administration)
- What comes next? According to Politico, HR1 is expected to hit the House floor within the next few weeks. Although Democrats control the House, Republicans control both the United States Senate and the presidency, making it unlikely that HR1 would be enacted into law.
- What happened at the committee hearing?
- Committee chair Lofgren said, "HR1 makes it easier, not harder, to vote. It ends the dominance of big money in our politics. It ensures public officials work in the public interest."
- Ranking member Davis criticized the process producing the legislation: "This bill is being rushed to the floor of the House for political reasons instead of good policy. I'm for open processes."
- During the course of the hearing, Republicans proposed 28 amendments to the bill, all of which were defeated on party-line votes.
- 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 organized 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
- Real Vail, "(Colorado) House gives nod to dark money campaign disclosure bill debated in local races," March 3, 2019
- Charleston Gazette-Mail, "Senate passes bill lifting caps on campaign contributions," Feb. 26, 2019
- The Philadelphia Tribune, "N.J. weighs requiring donor disclosure for independent groups," Feb. 25, 2019
The big picture
Number of relevant bills by state: So far this year, we're tracking 61 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.
- Idaho S1113: This bill would expand existing disclosure requirements to local elections and campaigns.
- Introduced in the House and referred to State Affairs Committee Feb. 27. Senate approved Feb. 26.
- Illinois HB2608: This bill would adjust a variety of contribution and expenditure thresholds triggering disclosure requirements.
- Referred to Executive Committee Feb. 26.
- Iowa HSB223: This bill would prohibit public agencies from requiring 501(c) entities to furnish them with personal information about donors.
- Introduced Feb. 28.
- Maryland SB1020: This bill would alter disclosure requirements for out-of-state political committees.
- Introduced Feb. 28.
- Mississippi HB1205: This bill would prohibit public agencies from requiring or releasing certain personal information from entities organized under Section 501(c) of the Internal Revenue Code.
- Referred to Senate Accountability, Efficiency, Transparency Committee Feb. 26. House approved Jan. 31.
- Montana HB605: This bill would expand disclosure requirements for entities making political expenditures.
- Tabled in State Administration Committee Feb. 27.
- Montana SB134: This bill would revise the definitions of contributions, expenditures, and independent expenditures as they apply to electioneering communications.
- Referred to House State Administration Committee Feb. 28. Senate approved Feb. 26.
- New Mexico SB3: This bill would expand disclosure requirements for groups making independent expenditures for political purposes.
- House Judiciary Committee hearing March 2. Senate approved Feb. 13.
- South Dakota SB114: This bill would require campaign contributions from minors be attributed to their parents for campaign finance disclosure and reporting purposes.
- House approved Feb. 28. Senate approved Feb. 12.
- Utah HB0131: This bill would require political issues committees to disclose certain contributions within three days of receipt.
- Senate approved March. House approved Feb. 14.
- Utah HB0319: This bill would establish disclosure requirements for entities spending money on ballot proposition advertisements.
- Introduced in the Senate and referred to Senate Rules Committee March 1. House approved Feb. 28.
- Washington HB1375: This bill would extend the state's campaign contribution regulations to candidates for port districts.
- Placed on second reading by Rules Committee Feb. 28.
- West Virginia SB622: This bill would make general revisions to the state's campaign finance disclosure laws.
- Introduced in the House and referred to House Judiciary Committee Feb. 27. Senate approved Feb. 26.
See also
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