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LD 1499

An Act To Revoke The Tax-Exempt Status Of An Organization That Fails To Report Sexual Assaults Committed By Employees, Board Members, Volunteers Or Affiliates

132nd Legislature (2025-2026) Introduced by Rafael Macias and 1 co-sponsor

Bill would revoke tax-exempt status from nonprofits that fail to report sexual assaults by employees, board members, volunteers, or affiliates. (Status: Rejected by committee)

Pursuant to Joint Rule 310.3 Placed in Legislative Files (DEAD)
#exemptions #incometax #revocation
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WeVote Research Nonpartisan
Bill Summary · LD 1499

Legislative bill overview

LD 1499 would authorize the state to revoke tax-exempt status from nonprofit organizations that fail to report sexual assaults committed by their employees, board members, volunteers, or affiliates. The bill establishes reporting requirements and creates a mechanism for enforcement through loss of tax benefits.

Why is this important

Tax-exempt status represents significant public subsidy through foregone revenue. Conditioning this benefit on mandatory reporting of sexual assault aims to incentivize institutional accountability and victim protection while leveraging financial consequences to enforce compliance with assault reporting obligations.

Potential points of contention

  • Enforcement clarity: The bill's language regarding what constitutes "failure to report" and who bears responsibility within large organizations could create ambiguity about when revocation is triggered, potentially affecting good-faith organizations with internal compliance systems
  • Due process concerns: Revocation of tax-exempt status is a severe financial penalty; stakeholders may question whether adequate procedural protections, appeal mechanisms, and evidence standards are included before such consequences apply
  • Scope and definition issues: The phrase "affiliates" is potentially broad and undefined, raising questions about whether distant organizational connections trigger reporting obligations, and whether the bill adequately distinguishes between different types of sexual assault allegations

Compiled from official sources — confirm details with the bill’s official record.

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