AN ACT Relating to campaign financing limitations; adding new sections to chapter 42.17 RCW; creating a new section; prescribing penalties; providing an effective date; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. The campaign contribution limitation provisions of section 3 of this act apply only to the financing of election campaigns in primary, general, special, or recall elections for state executive office and state legislative office. The campaign contribution limitation provisions of section 3 of this act do not apply to any political committee established for the exclusive purpose of receiving contributions and making expenditures in support of or in opposition to a ballot proposition campaign, other than the recall of a state executive or state legislator.

NEW SECTION. Sec. 2. Unless the context clearly requires otherwise, the definitions in this section apply throughout sections 1 through 3 of this act.

(1) A "campaign" begins on the day a person becomes a candidate or when a recall charge is filed pursuant to RCW 29.82.015, and ends when the final report is filed pursuant to RCW 42.17.080(2)(c).

(2) "Candidate" means a person who seeks election or who is the subject of a recall and any political committee under the direction or control of a candidate or any agent thereof.

(3) "Candidate committee" means a political committee that receives contributions and makes expenditures for a candidate, under the direction or control of a candidate or the candidate's agent.

(4) "State executive office" means an office for which all electors in the state are eligible to vote. These include governor, lieutenant governor, attorney general, state auditor, state treasurer, secretary of state, commissioner of public lands, insurance commissioner, and superintendent of public instruction.

(5) "State legislative office" is the office of state senator or state representative.

(6) "Tangible property" is equipment, furniture, vehicles, computers and computer software, telephones, office supplies, and all other similar items contributed to or acquired with contributed funds by a candidate or a candidate committee.

NEW SECTION. Sec. 3. (1) A candidate may not accept from any person during a campaign contributions which in the aggregate exceed (a) three percent of the total contributions received, exclusive of the candidate's personal resources and funds carried forward from a previous campaign, or (b) one thousand dollars, whichever is greater.

(2) The portion of any contribution that exceeds the limit in this section must be returned to the contributor or shall escheat to the state general fund.

(3) If a political committee becomes a candidate committee, the limits imposed by subsection (1) of this section shall thereafter apply. Contributions made to that political committee during the twelve months before the change shall count toward the applicable limits.

(4) (a) A candidate who has surplus funds (including tangible property) after the general or special election must file a final report by December 31 of that same calendar year. The report shall state how, in accordance with RCW 42.17.095, the surplus funds are being disposed of.

(b) A candidate who has a deficit or outstanding obligations must file a final report by June 30 of the next calendar year.

(5) Contributions and expenditures by a person controlled by another person are regarded as contributions and expenditures by the latter. A corporation is controlled by another person when the latter owns, directly or indirectly, more than fifty percent of the common stock of the corporation.

(6) Contributions made by political committees established, financed, maintained, or controlled by any corporation, organization, or any other person, including any parent, subsidiary, branch, division, department, or local unit of that person, shall be considered to have been made by a single political committee.

(7) A contribution to a political committee shall not be earmarked or designated, formally or informally, for a particular candidate. No committee may solicit or accept any such contribution.

(8) The limits in this section do not apply to contributions of a candidate's own personal or community property resources to the candidate's own campaign.

(9) Nothing in this section limits transfers between candidates or political committees of funds raised through joint fund-raising efforts.

NEW SECTION. Sec. 4. A candidate who accepts a contribution in excess of the limit established in section 3(1) of this act and who does not, or is unable to, return or let escheat to the state general fund the excess amount at or before the time of filing the final report required in section 3(4) (a) or (b) of this section, shall be assessed a penalty by the commission of one thousand dollars plus triple the amount of the excess.

NEW SECTION. Sec. 5. Sections 1 through 3 of this act are intended to be remedial and shall be liberally construed to effect the purposes described in RCW 42.17.010.

NEW SECTION. Sec. 6. Sections 1 through 5 of this act are each added to chapter 42.17 RCW.

NEW SECTION. Sec. 7. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 8. This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect July 1, 1985.