The Disclosure Digest: March 9, 2021
 Welcome to Disclosure DigestMarch 9, 2021Explore the legislation, litigation, and advocacy surrounding nonprofit donor disclosure with The Disclosure Digest, a Ballotpedia newsletter. 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 to the public information about donors violates privacy rights and can inhibit charitable activity. 
South Dakota governor signs bill limiting disclosure of nonprofit donor informationOn March 3, South Dakota Gov. Kristi Noem (R) signed HB1079 into law, barring state executive branch officials from expanding existing nonprofit donor disclosure requirements. What the bill does HB1079 prohibits any executive branch entity (e.g., the governor, the secretary of state, etc.) from requiring "any annual filing or reporting of a nonprofit corporation or charitable trust that is more stringent, restrictive, or expansive than that required by state or federal law." It does not apply to information required "to determine eligibility for or compliance with a state grant or contract." The bill also exempts information required for, or obtained during, a state fraud investigation or enforcement action. Legislative history The House Judiciary Committee, at Noem's request, introduced the bill on Jan. 22. The House approved it 62-8 on Feb. 2. The Senate approved an amended version 32-3 on Feb. 16. In these first two votes, Republicans voted unanimously in favor of the bill, and Democrats voted unanimously against it. On Feb. 22, the House voted 59-9 to accept the Senate's amendments. In this vote, one Republican, Will Mortenson, broke ranks and voted against the bill. Two Republicans were absent from the vote. Noem signed the bill into law on March 3. Political context: South Dakota is a Republican trifecta, meaning Republicans control the governorship and both chambers of the state legislature. South Dakota has been a Republican trifecta since 1995. Arguments Mark Miller, an attorney for Noem, supported the bill: "What is this bill about? It's really about the American way of life. … It's also meant to return us to the traditional role of anonymity in support for certain causes that one believes in." Rep. Ryan Cwach (D), who voted against HB1079, said, "We expect accountability and we expect transparency from our government, and so the idea that we want to try and keep how people are influencing our government anonymous goes against the whole bedrock of our society." Also up for consideration in South Dakota SB103 would bar any public agency (including state and municipal government units and courts) from:
The legislation does not bar public agencies from furnishing personal information about a nonprofit's donors, supporters, etc., for:
Legislative status: Sens. Casey Crabtree (R) and James Bolin (R) and Reps. Kirk Chaffee (R), Tim Goodwin (R), and Tim Reed (R) introduced SB103 on Jan. 26. On Feb. 17, the state Senate voted 33-2 in favor of the bill. All Republicans and one Democrat voted in favor. Two Democrats opposed it. On March 3, the House approved an amended version of the bill 55-13. Five Republicans and the chamber's eight Democrats voted against it. All of the remaining Republicans voted in its favor. It now returns to the Senate for reconsideration in light of the House's amendments. What other states are doing: At least three other states are considering legislation similar to SB103 this year: Iowa (HF309, HSB28, and SSB1036), Nebraska (LB370), and Tennessee (HB0159 and SB1608). All three states are Republican trifectas. What we're reading
The big pictureNumber of relevant bills by state: We're currently tracking 32 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 actionsFor complete information on all of the bills we are tracking, click here.
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