SENATE BILL REPORT

SB 6152

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As of January 20, 2020

Title: An act relating to certification of the level of foreign national ownership for corporations that participate in Washington state elections.

Brief Description: Concerning certification of the level of foreign national ownership for corporations that participate in Washington state elections.

Sponsors: Senators Salomon, Billig, Hunt, Nguyen, McCoy, Lovelett, Kuderer, Rolfes, Liias, Van De Wege, Das and Wilson, C.

Brief History:

Committee Activity: State Government, Tribal Relations & Elections: 1/17/20.

Brief Summary of Bill

  • Requires certain campaign finance reports to contain certifications from each corporation making a contribution that the corporation's ownership comprises less than 50 percent foreign nationals.

SENATE COMMITTEE ON STATE GOVERNMENT, TRIBAL RELATIONS & ELECTIONS

Staff: Samuel Brown (786-7470)

Background: Campaign Finance Reports. Candidates and political committees must file periodic reports with the Public Disclosure Commission detailing recent activity. Different reports may be required based on the candidate or committee's status and location. Washington candidates and political committees must file a report known as the C-4, after the form used to file the report, describing contributions of more than $25 received and expenditures made monthly, and biweekly in the month before an election. Incidental committees must file C-4 reports if campaign activity exceeds certain thresholds. Each C-4 report must include:

Political committees based outside the state must file a report known as the C-5 following every month in which the committee makes a contribution or other expenditure in Washington. Each C-5 report must include:

Independent Expenditures. Independent expenditures are made independently of a candidate or that candidate's authorized committee for political advertising which, alone or combined with other spending by the same person or committee, have a cumulative value of at least $1,000. Persons making independent expenditures must file a report, known as the C-6, monthly and biweekly in the month before an election. Each C-6 report must include:

Foreign Agents Registration Act. Foreign nationals are prohibited from contributing to federal campaigns. The federal Foreign Agents Registration Act, enacted in 1938, requires persons acting as agents of foreign entities in a political or quasi-political capacity, such as lobbying, to make periodic disclosure of their relationship with the foreign entity. Agents of foreign entities must also disclose activities conducted on behalf of the foreign entity, receipts, and disbursements in support of those activities.

Summary of Bill: Each C-4, C-5, and C-6 report must contain a certification from each corporation making a contribution to the filer that the corporation's ownership comprises less than 50 percent foreign nationals.

Foreign nationals are defined to include persons who are not United States citizens or permanent residents, foreign governments and political parties, and businesses organized under the laws or with a principal place of business in a foreign country.

Appropriation: None.

Fiscal Note: Not requested.

Creates Committee/Commission/Task Force that includes Legislative members: No.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Staff Summary of Public Testimony: PRO: We need to regulate the influence of money in our elections. A series of cases have diminished our ability to regulate money in politics, saying corporations have as much right to speak as any human person, because they are made up of citizens. If corporations are made up of primarily foreign citizens, they should not be able to donate to campaigns. This creates an enforcement mechanism that the PDC would be able to oversee. The limit is set at a percentage that is still effective, but defensible against a court challenge.

Persons Testifying: PRO: Senator Jesse Salomon, Prime Sponsor.

Persons Signed In To Testify But Not Testifying: No one.