A new law signed by Gov. Mike Parson last week will shield nonprofits from being forced to disclose their donors to government agencies and allow for certain limited liability companies to contribute to candidates.
Included in modifying various tax credits ,鈥� which would bar public agencies from requiring nonprofits to share the identities of donors, volunteers or supporters.
It also closes any records or lists in the possession of public agencies that contain the identity of supporters under Missouri鈥檚 open records law and under court rules. The provision goes into effect Aug. 28.
Violations could be met with lawsuits and a class B misdemeanor. Exceptions would be allowed for the Missouri Ethics Commission to subpoena the info during an investigation, and for it to be produced in litigation if a 鈥渃ompelling need鈥� is demonstrated and the info won鈥檛 be disclosed outside of those named in the lawsuit.
The proposal had received support this legislative session from groups like the ACLU of Missouri, Americans for Prosperity, People United for Privacy 鈥� all of which have 501(c)(4) arms, an Internal Revenue designation that allows them to participate in political activity without having to disclose their donors.
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Lawmakers that the bill was necessary to protect people鈥檚 privacy to donate to causes and ensure laws 鈥� like one in California that 鈥� don鈥檛 mandate otherwise.
Lawmakers are 鈥渢rying to protect an individual鈥檚 right or ability to donate to a cause that they believe in,鈥� Rep. Jered Taylor, R-Republic and sponsor of a House version of the bill, previously said.
Versions of the bill have been proposed across the country. In Florida, critics that came to light in that is the subject of a criminal probe and state investigation.
The new provisions may also cause issues for state agencies.
According , officials from the Department of Revenue warned the agency may be hindered in determining whether organizations owe state tax if they can鈥檛 request personal information.
Department of Labor and Industrial Relations officials said that if it鈥檚 interpreted that the agency can鈥檛 collect wage records under the law, the department may be out of compliance with federal requirements if a nonprofit stops submitting quarterly wage reports.
That could result in certification of Missouri鈥檚 unemployment insurance program being put in jeopardy, costing the state approximately $60.1 million annually in federal funds. An additional $989 million may have to be paid by employers for a 6% payroll tax if Missouri鈥檚 program is out of compliance, officials noted.
Officials with the Office of Administration said they would need to individually go through over 200,000 public bid and contract documents in its online database to ensure 鈥減ersonal information鈥� of nonprofits is not disclosed.
鈥淭he Division of Purchasing would be forced to take down this website to avoid exposing a member鈥檚 name,鈥� the fiscal analysis read. 鈥淭his would also increase the number of Sunshine Law requests for records that are currently available online.鈥�
A also stipulates that except when authorized by federal law, state agencies cannot impose additional filing or reporting requirements on charitable organizations than . State grants or contracts, labor unions and investigations by the attorney general into charitable organizations would be exempt.
The provision was added to the larger bill by Sen. Eric Burlison, R-Battlefield. It , arguing that requiring donor information could create a chilling effect.
Other senators critical of the proposal at the time raised concerns it may stymie efforts to investigate nonprofits, pointing to the allegations against former Gov. Eric Greitens鈥� that he stole a donor list from a veteran鈥檚 charity he founded, .
Greitens鈥� campaign for governor also included allegations .
A added by Sen. Andrew Koenig, R-Manchester, would allow limited liability companies to donate to campaign committees if the company is at least a year old and specifies with the Missouri Ethics Commission that it 鈥渋s a legitimate business with a legitimate business interest and is not created for the sole purpose of making campaign contributions.鈥�
All information submitted to the commission under the provision will be made public on the Missouri Ethics Commission鈥檚 website.
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