****Begin File******************Begin File*******************Begin File**** *************************************************************************** ISSN 1069-7799 ALAWON ALA Washington Office Newsline An electronic publication of the American Library Association Washington Office Volume 4, Number 83 September 19, 1995 In this issue: (246 lines) LIBRARY LEGISLATIVE DAY, BRIEFINGS, SET FOR MAY 6-7, 1996 HOUSE BILL RESTRICTS NONPROFIT LOBBYING -- ACTION NEEDED ON ISTOOK AMENDMENT *************************************************************************** LIBRARY LEGISLATIVE DAY, BRIEFINGS, SET FOR MAY 6-7, 1996 The 22nd annual Library Legislative Day, sponsored by the ALA Washington Office and the District of Columbia Library Association, will be held on Tuesday, May 7, 1996. The organized day of library advocacy features visits to congressional offices by several hundred library supporters from across the country. The 1996 event will be preceded by a day-long series of in-depth briefings on current legislation and policy issues as well as advocacy training designed to make congressional contacts effective and keyed to the current political climate. The timing of the 1996 Library Legislative Day and issue briefings is based on experience gained in April and May of this year when Legislative Day was changed from its traditional National Library Week timing to avoid a congressional recess period. Many library supporters appreciated being able to participate more fully in state and local NLW activities in April, and then make a trip to Capitol Hill in early May. Library advocates also gave high marks to the more detailed briefings and training provided by the Washington Office last spring. The May 6-7 two-day package will provide better preparation for participants, will be more likely to avoid congressional recess periods, and will allow library supporters to concentrate on local efforts during National Library Week. The ALA Washington Office will also hold a gala event on the evening of Monday, May 6, to celebrate the 50th anniversary of the Washington Office. This event will be planned in conjunction with ALA Chapters. Further information will be available shortly. *************************************************************************** HOUSE BILL RESTRICTS NONPROFIT LOBBYING -- ACTION NEEDED ON ISTOOK AMENDMENT The American Library Association has joined a coalition of nonprofit organizations working to defeat the so-called "Nonprofit Gag Bill" or the Istook amendment. Reps. Ernest Istook (R-OK), David McIntosh (R-IN) and Robert Ehrlich (R-MD) are its chief cosponsors. This proposed legislation raises severe threats to the ability of many local, community entities and others to participate in public policy discourse if such groups get any type of federal monies. A few weeks ago Rep. David Skaggs (D-CO) led the failed attempt to kill the provision when it was part of the House Labor and Health and Human Services FY96 appropriations bill. It is now tacked onto another Treasury bill. OMB Watch, another of the coalition organizations fighting the Istook amendment, has been conducting a series of "Road Shows" to meet with local nonprofit leaders to explain the Istook amendment and its impact, its status in Congress, and to plan outreach efforts to the state's Congressional delegation. Generating press coverage, including editorial board meetings and talk radio/appearances, are a major goal of the visits. The hearing originally scheduled for September 19 was postponed. ALAWON has not been able to confirm whether it will be scheduled in the next day or so or next week - both rumors have been cirulating. Additional updates will be posted here as soon as the information is available. There may be only short notice when it is next scheduled. Library advocates, friends-groups, and others interested in the full breadth of "public advocacy" should communicate with their representatives to ask for defeat of this legislation. Below is a lengthy analysis of the Istook provision from OMB Watch. The OMB Road Shows are being conducted in the following states: Arkansas, Colorado, Florida, Georgia, Indiana, Illinois, Kansas, Louisiana, Maine, Minnesota, Mississippi, Missouri, New Hampshire, New Mexico, New York, Ohio, Oregon, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia, Washington, Wisconsin, and West Virginia. For further information contact Patrick Lester, OMB Watch, (ombwatch@rtk.net, 202-234-8494). The following analysis was prepared by OMB Watch's Chad Nettesheim (netteshe@rtk.net, 202-234-8494): The Nonprofit Gag Bill On August 4, 1995, the House of Representatives passed a bill sponsored by Reps. Ernest Istook (R-OK), David McIntosh (R-IN), and Robert Ehrlich (R-MD) that would significantly limit the ability of nonprofit organizations to continue advocating on behalf of people and issues. [The measure is contained in the Labor, HHS Appropriations bill, H.R. 2127 (H.Rept. 104-209).] Started as an effort to "defund the left," the bill will have a devastating impact on the entire nonprofit sector--especially smaller community-based organizations. The bill is unprecedented in that it would restrict the amount of privately raised funds a federal grantee can use to do advocacy and lobbying. If a federal grantee spends more than the specified threshold, it will be barred from receiving federal grants. The Congressional Research Service pointed out that this raises "significant First Amendment difficulties." Interestingly enough, the same restrictions would not apply to federal contracts, loans, or tax subsidies. Thus, the bill is targeting nonprofit organizations. Proponents of the Nonprofit Gag Bill claim there is a need for grant reform, but really they are concerned about limiting the advocacy voice of groups they believe oppose their political agenda. Their bill incorporates five points: ~ They expand the existing prohibition on using federal funds for lobbying to include general advocacy activities -- in this way, federal funds could not be spent on advocacy activities even if permitted by statute. Advocacy includes virtually all work on public policy matters at the local, state, or federal level, including litigation involving the government. ~ They bar nonprofit organizations from federal grants if they use too much of their private funds for advocacy activities. If during any one of the previous five years, you spend 5% or more of your non-federal grant expenditures on advocacy, you will be prohibited from receiving a federal grant. This will force many community-based groups to face a difficult decision: continue advocating on behalf of people they serve or take federal grants to provide services -- both activities consistent with their missions. ~ They limit any association with other entities that use 15% of their money for advocacy activities. No federal grant money can be given to such entities (e.g., rent, purchasing goods, etc.). Additionally, if you associate with such entities -- even with your private funds -- you will be engaging in advocacy yourself. This will limit the ability to create coalitions and work with other organizations. ~ They require posting on the Internet information from all federal grantees on how much of their private funds were used for advocacy activities and a description of those activities. Only federal grantees are required to provide such information; powerful business lobbyists, for example, are not required to do so. This will create a new publicly accessible database that can be used for political purposes. ~ They create new enforcement procedures, including licensing nonprofit "bounty hunters" to find groups in violation of the various provisions of the bill. Anyone can bring a lawsuit against a grantee for up to ten years after the violation. Those organizations found not in compliance with the bill may be fined $5,000 to $10,000 plus three times the value of the grant. The bounty hunter can collect up to 25% of the recovery. Since the Istook bill covers federal grants that pass through the state or local government (and may be commingled with state or local funds), many nonprofits may not even know that they receive federal grants and are covered by the Nonprofit Gag Bill. The burden of proof is not on the government to demonstrate that the grantee is not in compliance with the bill. Rather, the burden is on the federal grantee to demonstrate with "clear and convincing evidence" -- a standard not part of normal accounting terminology -- that they are in compliance with the bill. There are many other concerns about the bill, some that may result from poor drafting. For example, the definition of grant is overly broad, potentially including the beneficiaries of government programs (e.g., children receiving school lunches, families receiving WIC vouchers). This would limit their First Amendment rights also. There are also some provisions in the bill that may create similar problems for individuals who work for nonprofit organizations as well as individuals who receive federal grants. Probably one of the greatest concerns is that proponents of the Nonprofit Gag Bill have promoted a number of myths. For example, proponents, such as Rep. David McIntosh, claim they are trying "to root out one of Washington's best kept little secrets: welfare for lobbyists." Yet nonprofit organizations are prohibited by law and regulation from using federal funds to attempt to influence legislation, commonly called lobbying. They are also prohibited from using federal funds to attempt to influence the awarding of federal assistance and must disclose such attempts even when done with private funds. Nonprofit organizations must also file disclosure of lobbying expenses (with their non-federal funds) to the IRS each year. The limitations on advocacy in the Nonprofit Gag Bill and the limitations on lobbying in the tax code are very different. The Gag Bill applies to federal grantees and is more expansive than lobbying; the IRS limits apply to electing 501(c)(3) organizations. To compare the difference between the two as it applies to limits on privately raised money, the average service delivery nonprofit in Washington, D.C. spends $1,587,862 per year. Roughly one-third of the revenue comes from federal grants. According to the Gag Bill, the permissible advocacy threshold would be $53,193 (5% of expenditures, excluding federal grants). The IRS permissible lobbying threshold would be $229,393. Despite three hearings on the subject and numerous press conferences, proponents of the bill have yet to demonstrate any systemic pattern of violations of the grant rules. In fact, there has been no specific verifiable example of using federal funds for lobbying purposes. Even if there was a violation, nonprofit organizations face significant penalties, such as suspension of grants and debarment from future grants. If there is a need for greater enforcement, fine. But why create new law? ACTION NEEDED: Contact your congressional representatives to voice your concern with the "Istook amendment." The provision is a serious threat to the First Amendment rights of those who participate in public discourse on the full spectrum of nonprofit sector issues. If passed, it could directly limit the ability of and circumstances in which library advocates and many, many other groups can express their views on public policy issues, even unrelated to the scope of a group's federal funding elsewhere in their organization. There are already regulations that define appropriate "lobbying" in such circumstances and prohibit any such lobbying using federal funds. If you are in one of the states mentioned above, you can also call OMB Watch to find out when and where additional Road Show events will be held. For further information contact Patrick Lester, OMB Watch, (ombwatch@rtk.net, 202-234-8494). *************************************************************************** *************************************************************************** ALAWON (ISBN 1069-7799) is an irregular publication of the American LIBRARY Association Washington Office, 1301 Pennsylvania Ave., NW, Washington, DC 20004. Internet: alawash@alawash.org; Phone: 202-628-8410; Fax: 202-628=8419. Contributing to this issue: Mary R. Costabile, Anne H. Heanue and Carol C. Henderson; Editor: Lynne E. Bradley (leb@alawash.org). ALAWON is available free of charge and is available only in electronic form. To subscribe, send the message "subscribe ala-wo [your name]" to listserv@uicvm (Bitnet) or listserv@uicvm.uic.edu (Internet). Back issues and other documents are available from the list server. To find out what's available, send the message "send ala-wo filelist" to the listserv. 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