On April 21, the Tennessee House of Representatives passed SB1005, a bill creating additional disclosure requirements for 501(c)(4) organizations and candidate committees. The Tennessee Senate passed the bill on April 14, and the legislation now heads to Gov. Bill Lee (R).
What the bill would do
Current state law requires all candidate committees to report individual contributions if the group’s total contributions or expenditures exceed $1,000 during a filing period. If a committee’s contributions or expenditures total more than $1,000, the law requires the committee to disclose the identity of each person contributing more than $100. Under SB1005, state candidate committees would have to report each contribution and expenditure regardless of the amount, and the current regulations would only apply to local candidate committees. If a local candidate’s contributions or expenditures exceed the $1,000 limit, the candidate must report each contribution and expenditure, regardless of the amount. The bill requires political groups to report all in-kind contributions, amending the present law which only requires these contributions to be reported if they exceed $100.
The bill would also amend the reporting requirements for the period 10 days before an election. Currently, candidate committees must report contributions, loans, or transfers of more than $5,000 for state offices and $2,500 for local offices. The bill would change applicable contributions to “each one that, in the aggregate, equals or exceeds the following amounts: $5,000 for a committee participating in the election of a candidate for any statewide office; $3,000 for a committee participating in the election of a candidate for senate; and $1,000 for a committee participating in the election of any other state or local public office.” Candidates and elected officials must disclose all sources of income of more than $5,000 in a 12-month period.
Organizations with 501(c)(4) status would be considered political committees under the bill if they spend more than $5,000 on communications containing the name or a visual depiction of a state or local candidate within 60 days of an election.
Legislative actions
Sen. Randy McNally (R), who also serves as the lieutenant governor of Tennessee, introduced SB1005 on Feb. 10, 2021. Senate Speaker Pro Tem Ferrell Haile (R) also sponsored the bill. The bill remained in the Senate State and Local Government Committee until April 5, when the committee voted unanimously to advance it. The Senate passed the bill 25-3 on April 14. The House voted 87-3 in favor of the bill on April 21.
The Tennessean’s Adam Friedman said legislative action on the bill “closely follows increased scrutiny on activities by former Rep. Robin Smith, R-Hixson, Rep. Glen Casada, R-Franklin, and Casada’s former top aide Cade Cothren” as part of a three-year FBI investigation. Smith pleaded guilty to federal wire fraud in March, and several other lawmakers were served with federal grand jury subpoenas.
Rep. Cameron Sexton (R) introduced a companion bill, HB1201, on Feb. 11, 2021. Eleven other representatives, three Democrats and eight Republicans, sponsored the bill. After the Senate passed SB1005, the legislature substituted the Senate bill for the House companion bill.
Tennessee has a Republican trifecta, meaning Republicans control the governorship and both chambers of the state legislature. Republicans hold a 27-6 Senate majority and a 73-25 majority in the House. This means Republicans have veto-proof majorities in both chambers.
Reactions
Sen. Haile said the bill will prevent 501(c)(4) groups from shielding their donors’ identities. “If you’re going to be a player in the process, people need to know who you are and what you’re doing,” Haile said.
Lt. Gov. McNally said, “While no new legislation can prevent a bad actor from being deceitful or dishonest, I believe this bill will increase openness and accountability where it is badly needed. Voters deserve to know who is pushing the messaging they receive and whose money is behind it. This bill seeks to open up the political process and ensure voters have the information they need to make informed decisions.”
In a statement opposing the bill, the National Rifle Association said, “Disclosure of this type of information potentially can subject donors to unwarranted harassment,” and, “[if] it is enacted, this legislation will be a mess for the Registry of Election Finance, the courts, and the regulated community, including NRA and countless other advocacy groups. Its final effects could be significantly different than what was intended.”
Tennessee Stands, a conservative 501(c)(4) group, said, “Republican leadership is running a bill that would in effect censor small conservative groups across the state 60 days prior to every election. Are we living in China?”
What we’ve been reading
- TNJ: On the Hill, “NRA opposes bill requiring more campaign spending disclosures,” April 19, 2022
- New Hampshire Bulletin, “Lawmakers look to address AG’s concerns about ‘personal privacy’ bill,” April 19, 2022
- St. Louis Post-Dispatch, “State senators chop away at Sunshine Law, donor disclosure,” April 21, 2022
The big picture
Number of relevant bills by state: We’re currently tracking 141 pieces of legislation dealing with donor disclosure and privacy. Of these bills, 114 are primarily focused on disclosure, and 27 are primarily focused on privacy. To reflect this distinction, the charts in this section and the recent legislative actions below are divided between disclosure legislation and privacy legislation. On the maps 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.
Donor disclosure legislation
Number of relevant bills by current legislative status:
Number of relevant bills by partisan status of sponsor(s):
Donor privacy legislation
Number of relevant bills by current legislative status:
Number of relevant bills by partisan status of sponsor(s):
Recent legislative actions
For complete information on all of the bills we are tracking, click here.
Donor disclosure legislation
-
California AB2528: This bill would require elected officials to file campaign finance reports electronically with the secretary of state, and these reports would be available for public inspection.
- Republican sponsorship
- This bill was referred to committee on April 20.
-
Louisiana SB473: This bill would require postsecondary education institutions to disclose the source of any foreign gifts.
- Republican sponsorship
- This bill was referred to committee on April 20.
-
Michigan SB0788: This bill requires campaign committees to report contributions received by an individual acting on behalf of a committee no later than five days before the closing date of any campaign statement required to be filed by the committee. An independent committee or political committee must include in the name of the committee the name of the person or persons that sponsor the committee, if any, or with whom the committee is affiliated.
- Republican sponsorship
- This bill was referred to committee on April 21.
-
Tennessee SB1005: This bill would require candidate committees to disclose the source of their contributions. It would also require 501(c)(4) groups to disclose any expenses of more than $5,000 in the 60 days leading up to an election.
- Bipartisan sponsorship
- This bill passed both chambers on April 21.
-
Tennessee HB1201: This bill would require candidate committees to disclose the source of their contributions. It would also require 501(c)(4) groups to disclose any expenses of more than $5,000 in the 60 days leading up to an election.
- Bipartisan sponsorship
- This bill was referred to committee on April 21.
Donor privacy legislation
No actions were taken on donor privacy legislation this week.
Thank you for reading! Let us know what you think! Reply to this email with any feedback or recommendations.
Learn More
