The four bills propose largely similar policies. 
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[Disclosure Digest by Ballotpedia]
 

 

 

 
** WELCOME TO DISCLOSURE DIGEST
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** JANUARY 19, 2021
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Explore 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.
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** THREE STATES CONSIDER BILLS BARRING PUBLIC AGENCIES FROM DISCLOSING NONPROFIT DONOR INFORMATION
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Thus far this year, lawmakers in at least three states – Iowa, Nebraska, and Tennessee – have introduced bills that would bar public agencies from publicly disclosing identifying information about nonprofit donors.

WHAT THE BILLS PROPOSE

The four bills (HSB28 ([link removed]) and SSB1036 ([link removed]) in Iowa, LB370 ([link removed]) in Nebraska, and HB0159 ([link removed]) in Tennessee) propose largely similar policies. All four would prohibit public agencies from: 

* Requiring tax-exempt 501(c) groups to provide public agencies with personal identifying information about their donors, members, supporters or volunteers. 
* Releasing any personal identifying information public agencies might possess. 

These prohibitions would not apply to requests for personal identifying information made "pursuant to a lawful warrant issued by a court of competent jurisdiction." 

Under the Iowa bills, an individual alleging a violation of the law could bring a civil action seeking damages of at least $2,500 for each violation. For intentional violations, this amount would increase to a maximum of $7,500. The Iowa bills also define criminal penalties for knowing violations of the law: imprisonment for up to 90 days, a fine of up to $1,000, or both. 

The Nebraska and Tennessee bills do not define the associated civil and criminal penalties with comparable specificity. 

BILL STATUS AND POLITICAL CONTEXT  

IOWA: HSB28 and SSB1036 were introduced in the Iowa House and Iowa Senate, respectively, on Jan. 13. The state legislature's website does not identify sponsors for either bill. HSB28b has been assigned to the House Judiciary Committee. SSB1036 is pending before the Senate Judiciary Committee. 

_Political context_: Iowa ([link removed]) has been a Republican trifecta since 2016. That means Republicans control the governorship and majorities in both chambers of the state legislature. 

NEBRASKA: Sen. Rita Sanders ([link removed]) (R) introduced LB370 on Jan. 15. It is pending before the Judiciary Committee. 

_Political context_: Nebraska ([link removed]) has been a Republican trifecta since 1999. 

TENNESSEE: Rep. Ryan Williams ([link removed])) (R) introduced HB0159 on Jan. 13. It has not yet been assigned to committee. 

_Political context_: Tennessee ([link removed]) has been a Republican trifecta since 2011. 

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** WHAT WE'RE READING
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* National Conference of State Legislatures, "Supreme Court to Decide Case Challenging Nonprofit Donor Disclosure State Law," Jan. 12, 2021 ([link removed])
* NYN Media, "State’s donor disclosure requirements still controversial among nonprofits," Jan. 12, 2021 ([link removed])
* Provident Law, "Final rule on nonprofit donor disclosure obligations issued by IRS," Dec. 25, 2020 ([link removed])

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** THE BIG PICTURE
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_Number of relevant bills by state_: We're currently tracking 15 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 ([link removed]) 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):

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** RECENT LEGISLATIVE ACTIONS
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For complete information on all of the bills we are tracking, click here ([link removed]) . 

* NEBRASKA LB370 ([link removed]) : This bill would prohibit a public agency from disclosing identifying information about a nonprofit's donors.

* Republican sponsorship.
* Referred to Judiciary Committee Jan. 15.

* NEW YORK S01464 ([link removed]) : This bill would require that state legislators who receive contributions for the payment of legal services disclose the identities of donors.

* Democratic sponsorship.
* Introduced and referred to Senate Ethics and Internal Governance Committee Jan. 12.

* TENNESSEE HB0159 ([link removed]) : This bill would prohibit a public agency from disclosing identifying information about a nonprofit's donors.

* Republican sponsorship.
* Introduced Jan. 14.

Thank you for reading! Let us know what you think! Reply to this email with any feedback or recommendations.

 
 

 
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