SENATE BILL REPORT

SB 5627

BYSenator Kreidler

Revising regulation of financial solicitations, expenditures, and disclosures by nonprofit organizations.

Senate Committee on Law & Justice

Senate Hearing Date(s):February 22, 1989

Senate Staff:Jon Carlson (786-7459)

AS OF FEBRUARY 21, 1989

BACKGROUND:

There is concern that certain nonprofit organizations, whose original objectives focused on research and policy development, have become increasingly involved in political campaigns without reporting under the provisions of the Public Disclosure Act.

In addition, these organizations often solicit the public for contributions to support their activities.  It is alleged that, on occasion, portions of these contributions are subsequently directed to organizations other than the original recipients.  Such contributions were made expressly to assist a political campaign and should be reportable under the Public Disclosure Act.

SUMMARY:

"Continuing political committee" is defined according to certain objective standards. 

An "expenditure" includes the costs of any discreet activity, including paid presentations intended to influence a campaign in support of, or in opposition to, a candidate or ballot proposition.

Independent campaign expenditures are reportable under the Public Disclosure Act when made by a nonprofit organization for a financial solicitation to benefit a campaign for, or in opposition to, a candidate for public office or a ballot proposition.

Political committees or continuing political committees have limitations placed on activities that solicit charitable contributions from students at state colleges or universities.

Persons or organizations soliciting charitable contributions must disclose whether they are employed by an entity or person other than the organization in whose name the solicitation is being made.  Additional disclosure is also required, including whether the funds solicited may be used in support of, or opposition to, a candidacy, ballot proposition, or legislation.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested February 21, 1989