Public Policy
Independent Sector Policy Update
April 26, 2006
Charitable Incentives and Reforms Legislation May Move Yet
As Congress returned to Washington this week, high on the list
of priorities is finishing work on the tax reconciliation bill (H.R. 4297)
for FY06. Independent Sector is hopeful that a solid package of charitable
incentives and reforms will be included in the final bill. We have reason
to believe that the changes that we have requested will be adopted resulting
in reforms that will more closely mirror the recommendations of the Panel
on the Nonprofit Sector. More
on H.R. 4297.
Congress Considers Lobbying Reform Legislation
The lobbying reform bill (H.R. 4975) introduced by the House
Republican Leadership is expected to be considered on the House floor
Thursday, April 27. The bill moved through five committees earlier this
month. During consideration in the Judiciary Committee a penalty was added
of up to five years in jail for egregious violations of the lobbying rules.
Another amendment adopted in the Judiciary Committee added a provision
from the Senate-passed bill would require lobbyists and organizations
that lobby to report contributions they make to organizations established
or controlled by Members of Congress. The Committee also voted to require
lobbyists to list the names of each Member of Congress and their staff
with whom a lobbyist met, though this provision has been dropped from
the Rules
Committee version (PDF) of the bill which
will go to the House floor.
H.R. 4975 shares some elements of the Senate bill, such as requiring
more disclosure for earmarks, and increased disclosure on the part of
lobbyists, including quarterly reports and information about campaign
contributions and gifts. Unlike the Senate bill, the House measure would
ban all privately-funded travel for the remainder of 2006. The House ethics
committee would be required to come up with a plan for pre-approving travel
by mid-December. More on lobbying
reform legislation.
House Passes Section 527 Bill
The House passed a bill (H.R. 513) on April 5th that would require Section
527 organizations to register as political committees under federal election
law. The bill also would repeal certain limits on what a political party
can spend on behalf of candidates. The measure passed by a 218 to 209
vote. Similar provisions that were included in the lobbying reform legislation
(H.R. 4975) introduced by the House Republican Leadership have now been
dropped from that bill. More on
Section 527 legislation.
Meanwhile, a federal district court ordered the Federal Election Commission
to review its decision not to issue new regulations for Section 527 organizations.
The opinion
(PDF) issued on March 29, 2006 finds that
the FEC failed to make a reasoned explanation for its decision to consider
527 activity on a case-by-case basis instead of issuing a general rule
to regulate such organizations.
House Budget Resolution Still Pending
Another matter facing Congress is the budget resolution for FY07.
House Majority Leader John Boehner (R-OH) said he hopes to get the measure
through the House in May. Consistent with the President’s request,
the resolution would cap discretionary spending at $873 billion and assume
$226 billion in tax cuts. When the bill is considered on the House floor,
moderate Republicans plan to offer an amendment, similar to one accepted
in the Senate, to add $7 billion in funding for education and health care.
Independent Sector joined a sign-on
letter (PDF) organized by the National
Human Services Assembly urging the House to restore discretionary spending
to at least FY05 levels and continue critical funding for education, child
care, health, job training and housing programs. More
on the Budget Resolution.
Senate Vote Expected on Estate Tax in May
Senate Majority Leader Bill First (R-TN) plans to bring estate tax legislation
to the Senate floor in May 2006. It is unclear, however, whether he has
the 60 votes necessary to overcome opposition to full repeal. An estate
tax vote was scheduled for September 2005, but was postponed in the aftermath
of Hurricane Katrina. More on
the estate tax.
--------------------------------------------------------------------------------
Upcoming Events
State Legislature Wrap-Up Focus of May 19 IS Call
The National Conference of State Legislatures’ director will join
the May 19 Policy Action Network call to provide a wrap-up of states’
legislative sessions and discuss significant policy actions and emerging
trends. The network is open to all IS members interested in being effectively
engaged with federal and state public policies that affect the charitable
sector. The one-hour call begins at 2:00 p.m. EDT. For more information,
email Gloria Engelke.
IRS to Hold Phone Forum on Executive Compensation
The IRS will hold a one-hour phone forum on the agency’s executive
compensation initiative on May 17th at 10:00 AM and again on May 18th
at 1:00 PM. The call will cover problems that the IRS has found in this
area and are designed for those with experience in exempt organizations
law. For more information see the Calendar
of Events on the Charities and Nonprofits section of the IRS website.
-Top of Page-
|
