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House amends nonprofit-disclosure bill to align with IRS forms, then passes it
Summary
Senate Bill 2, requiring minimal public disclosure by tax-exempt organizations, was amended to require filing a photocopy of IRS Form 990 and to match IRS thresholds; the House passed the amended bill 66–2.
Lawmakers amended and passed Senate Bill 2 on Jan. 31, a bill designed to increase public transparency for tax-exempt organizations by having them file portions of their IRS filings with the state.
Purpose and sponsor comments: Sponsors described the bill as a modest disclosure requirement aimed at making public the size and assets of nonprofit organizations that currently report little local information. The sponsor said the most effective approach was to have organizations file a copy of the Form 990 they already prepare with the state so the information becomes public.
Amendments to conform to IRS practice: Floor amendments replaced any requirement to include contributor names and addresses with a simpler requirement: a photocopy of the already-filed IRS Form 990 would be filed with the state. Another amendment changed a numerical threshold from five to three to align the bill with current IRS reporting rules. The sponsor said the changes were intended to avoid imposing new burdens on nonprofit filers.
Vote and next steps: Following debate and the adoption of the amendments, the House voted to pass SB2 as amended; the chair announced 66 affirmative and 2 negative votes and the bill will be referred back to the Senate for further action.
Outstanding details: The floor discussion focused on aligning state requirements with IRS practice; implementation logistics and whether forms would be publicly indexed were not fully detailed on the floor.
