Bill > HB514

This bill, the "Keeping Charities Nonpartisan Act of 2026," aims to prevent certain charitable organizations from engaging in political campaign activities by prohibiting them from participating in or intervening in political campaigns on behalf of or in opposition to any candidate for public office, mirroring the federal "Johnson Amendment" as it was interpreted on January 19, 2025. If a charitable organization, defined as an entity recognized by the IRS to receive tax-deductible donations and that solicits contributions from the public, violates this prohibition, the Secretary of State and the Attorney General, acting jointly, can order a two-year revocation of the organization's tax-exempt status, which would then require the Comptroller and the Director of the State Department of Assessments and Taxation to revoke various state tax exemptions, including income, sales and use, and property taxes. This bill also includes provisions for civil penalties of up to $5,000 per violation and allows organizations to avoid penalties if they can demonstrate the conduct was not authorized by their leadership and they publicly disclaim the conduct within seven days of notice. The bill's effectiveness is contingent on federal actions that might weaken or nullify the Johnson Amendment, with the Attorney General tasked with monitoring such developments and notifying the Department of Legislative Services, which would then trigger the bill's implementation.