SENATE BILL REPORT

SB 5166

BYSenators Pullen, Talmadge, Rasmussen, Vognild, Newhouse and Bauer; by request of Public Disclosure Commission

Regulating political gifts and public office funds.

Senate Committee on Law & Justice

Senate Hearing Date(s):January 30, 1989; February 27, 1989

Majority Report:  That Substitute Senate Bill No. 5166 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Pullen, Chairman; Hayner, Nelson, Newhouse, Niemi, Rinehart, Talmadge, Thorsness.

Senate Staff:Jon Carlson (786-7459)

                  February 27, 1989

AS REPORTED BY COMMITTEE ON LAW & JUSTICE, FEBRUARY 27, 1989

BACKGROUND:

The Public Disclosure Act requires elected and appointed officials to file a yearly report detailing contributions received for unreimbursed public office-related expenses.  Concern has been expressed to the Public Disclosure Commission (PDC) that the reporting requirements which pertain to public office fund contributions and expenditures are inadequate and infrequent.

SUMMARY:

A separate account is established from which all public office fund expenditures are made.  Registration with the PDC is required within two weeks of the day the public office fund is created.  The official named in the registration statement is required to preserve the financial records of the office fund for not less than five years following the year in which the transaction occurred.  The public office fund report is changed from an annual to a quarterly report.

Expenditures may be made from a public office fund only to pay expenses incurred by the official or members of the official's family solely because of the person holding a public office.  Public office funds may not be used to support or oppose a candidate, political party, political committee, or ballot proposition.  An official's public office fund cannot be used to reimburse that official for lost earnings resulting from holding office, nor may such funds be transferred to the public office fund of another person.

Surplus funds of a candidate may be transferred to a public office fund if the candidate becomes an elected official.

"Gift" is defined, and the statement of financial affairs is amended to require every official and officer to file a statement describing any gifts received during the preceding calendar year.  Certain gifts are not considered reportable for purposes of the act, such as intrafamily gifts and gifts not in excess of $50 in value.

EFFECT OF PROPOSED SUBSTITUTE:

Any hosting in connection with an official appearance or official agency business which does not exceed $100 in value is not a reportable gift.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested January 25, 1989

Senate Committee - Testified: Graham Johnson, PDC (pro); Ruth Beck, PDC (pro); Richard Holmquist, King County Prosecutor's Office (pro)