Senate approves bill allowing local governments to provide limited assistance to nonprofits; questions about limits remain

Sen. Butters’ first substitute to Senate Bill 39, which inserts statutory language permitting counties and cities to assist charitable organizations with resources — such as staff time, equipment use or fee waivers — passed to the third reading calendar by voice and recorded roll call.

Butters, the bill’s sponsor, described long-standing informal practices where local governments support nonprofits and said a court challenge had ruled such assistance required explicit statutory authority. He framed the bill as a narrowly tailored fix to allow, not require, municipalities to offer in-kind help: “This bill puts in the statute…language to allow, if they desire, cities and towns to assist with their resources, 501(c)(3) charities,” he said.

Several senators pressed the sponsor about safeguards. Sen. Hilliard warned the provision could become a “slippery slope” if left broad and asked how officials could limit disparate giveaways; Sen. Valentine asked whether the bill contains any dollar limits or percentage-of-budget caps. Butters said committee deliberations had removed direct spending language and that in practice assistance tends to be small amounts; he offered to consult further about statutory caps.

After discussion senators called the question and recorded a roll call: the first substitute SB 39 passed to third reading with 27 ayes and 2 nays. The bill will return to the third reading calendar for final consideration.

Senators and advocates asked staff to consider whether a clear statutory limitation — a dollar threshold or percentage cap — should be added before final passage; no specific cap was adopted on the floor.