5864-S Not Adopted 3/15/91

5864-S Not Adopted 3/15/91.482

SSB 5864 - S AMD

By Senator Talmadge

Not Adopted 3/15/91 - Roll Call 22-25

On page 29, after line 11, insert the following:

"PART VII

CAMPAIGN EXPENDITURE LIMITATIONS AND MATCHING FUNDS"

"NEW SECTION. Sec. 29. DEFINITIONS. The definitions under RCW 42.17.020 apply to sections 29 through 48 of this act except as modified by this section. Unless the context clearly requires otherwise, the definitions in this section apply throughout sections 29 through 48 of this act:

(1) "Authorized committee" means the political committee authorized by a candidate, or by the state official against whom recall charges have been filed, to accept contributions or make expenditures on behalf of the candidate or state official.

(2) "Board" or "election board" means the state election board created by this chapter.

(3) "Bona fide political party" means an organization which has filed a valid certificate of nomination with the secretary of state under chapter 29.24 RCW or the governing body of the state organization of a major political party, as defined in RCW 29.01.090, which shall be the body authorized by the charter or bylaws of the party to exercise authority on behalf of the state party.

(4) "Candidate" means an individual seeking nomination for election or seeking election to a state office. Such an individual shall be deemed to be seeking nomination for election or seeking election when the individual first:

(a) Announces publicly or files for the office;

(b) Receives contributions or makes expenditures or reserves space or facilities with intent to promote his or her candidacy for the office; or

(c) Gives his or her consent to another person to take on behalf of the individual any of the actions in (b) of this subsection.

(5) "Caucus of the state legislature" means the caucus of the members of a major political party in the state house of representatives or in the state senate.

(6) "Election cycle" means the period beginning on the first day of December following the date of the last previous general election for the office which the candidate seeks and ending on November thirtieth following the next election for the office. In the case of a special election to fill a vacancy in an office, "election cycle" means the period beginning on the day the vacancy occurs and ending on November thirtieth following the special election.

(7) "Eligible candidate" means a candidate for a state office who is eligible under sections 30 and 34 of this act to receive payments under this chapter.

(8) "General election" means the election which directly results in the election of a person to a state office. It does not include a primary.

(9) "Immediate family" means a candidate's spouse, and any child, stepchild, grandchild, parent, stepparent, grandparent, brother, half-brother, sister, or half-sister of the candidate and the spouse of any such person and any child, stepchild, grandchild, parent, stepparent, grandparent, brother, half-brother, sister, or half-sister of the candidate's spouse and the spouse of any such person.

(10) "Independent expenditure" means an "expenditure" as defined in RCW 42.17.020 which has each of the following elements:

(a) It is made in support of or in opposition to a candidate for office by a person who is not (i) a candidate for that office, (ii) an authorized committee of a candidate for that office, (iii) a person who has received the candidate's encouragement or approval to make the expenditure, if the expenditure pays in whole or in part for any political advertising supporting that candidate or promoting the defeat of any other candidate or candidates for that office, or (iv) a person with whom the candidate has collaborated for the purpose of making the expenditure, if the expenditure pays in whole or in part for any political advertising supporting that candidate or promoting the defeat of any other candidate or candidates for that office;

(b) The expenditure pays in whole or in part for any political advertising which either specifically names the candidate supported or opposed, or clearly and beyond any doubt identifies such candidate without using the candidate's name; and

(c) The expenditure, alone or in conjunction with another expenditure or other expenditures of the same person in support of or opposition to that candidate, has a value of five hundred dollars or more. A sequence of expenditures each of which is under five hundred dollars shall constitute one independent expenditure as of the time that the last expenditure brings the total value of the sequence to five hundred dollars or more.

(11) "Major party" means a major political party as defined in RCW 29.01.090.

(12) "Minor party" means a minor political party as defined in RCW 29.01.100.

(13) "Multicandidate political committee" means a political committee which, during a period of three calendar years: Receives contributions of twenty-five dollars or more from each of twenty-five or more persons; and makes contributions of at least twenty-five dollars to each of five or more candidates or to the authorized committees of five or more candidates.

(14) "Primary" means the procedure for nominating a candidate to state office under chapter 29.18 or 29.21 RCW or any other primary for an election which uses, in large measure, the procedures established in chapter 29.18 or 29.21 RCW.

(15) "Recall campaign" means the period of time beginning on the date of the filing of recall charges pursuant to RCW 29.82.015 and ending thirty days after the recall election.

(16) "State campaign account" or "account" means the state election campaign account established in section 43 of this act.

(17) "State legislative office" means the office of a member of the state house of representatives and the office of a member of the state senate.

(18) "State office" means the office of a member of the state legislature or of any elective state executive officer.

(19) "State official" means a person who holds a state office."

"NEW SECTION. Sec. 30. ELIGIBILITY FOR PAYMENTS‑-EXPENDITURE LIMIT AGREEMENT‑-THRESHOLD AMOUNTS‑-USE OF LOGO. (1) To be eligible to receive payments under this chapter a candidate shall:

(a) Identify the office sought by the candidate; and

(b) Agree in writing that the candidate and the authorized committee of the candidate:

(i) Will fully comply with the fair campaign practices code adopted by the public disclosure commission as it now exists or is hereafter amended;

(ii) Have not made and will not make expenditures during the election cycle which exceed any expenditure limitation applicable to the candidate under section 31 of this act for the office sought by the candidate;

(iii) Will deposit all payments received under section 37 of this act in a separate checking account which shall contain only funds so received, and will make no expenditures of funds received under this section except by checks drawn on that account. The account shall be in a financial institution located in this state whose deposits are insured by the federal deposit insurance corporation, federal savings and loan insurance corporation, or national credit union administration;

(iv) Will furnish to the election board campaign records, evidence of contributions, and other appropriate information as may be required by the board; and

(v) Will cooperate in the case of any audit and examination by or for the board under section 44 of this act.

(2) The agreement required by subsection (1) of this section must be filed with the election board by the third business day after the candidate has first received during the election cycle contributions, less loan repayments, in an aggregate amount of:

(a) For a candidate for the office of governor, twenty-five thousand dollars;

(b) For a candidate for state executive office other than the office of governor, seven thousand five hundred dollars;

(d) For a candidate for the state house of representatives, two thousand five hundred dollars.

Such aggregate contributions include both those which satisfy and those which do not satisfy the provisions of section 38 of this act.

(3) The provisions of this section shall not be construed as preventing a candidate from filing a statement of intent with the board at any time. Such a statement shall include a promise signed by the candidate that the candidate has not and will not exceed the expenditure limitation applicable to the candidate under section 31 of this act.

(4) Nothing in this chapter requires any candidate to apply for or accept public funding under section 37 or 39 of this act.

(5) A candidate for state office who enters and abides by an agreement under subsection (1) of this section is entitled to display a good campaign practices seal in the political advertising and communications of the candidate during the election cycle to which the agreement applies. The board shall design the good campaign practices seal."

"NEW SECTION. Sec. 31. EXPENDITURE LIMITS FOR CANDIDATES UNDER AGREEMENT. (1) Except as provided in subsection (4) of this section, the expenditure limit for the election cycle for a candidate for state office who agrees to the limitations established in this chapter is the greater of: (a) The base amount established for the office sought under subsection (2) of this section; or (b) the base amount plus the amount applicable to the candidate under subsection (3) of this section regarding independent expenditures.

(2) The base amount referred to in subsection (1) of this section is:

(a) For the office of governor, two million two hundred thousand dollars;

(b) For state executive office other than the office of governor, eight hundred thousand dollars;

(d) For the office of a member of the state house of representatives, fifty-five thousand dollars.

(3) If, during the twelve months preceding the election in which the candidate is seeking office, independent expenditures by any person or persons are made in opposition to the candidate or for any other candidate for the office sought by the candidate, the expenditure limitation applicable to the candidate (not the other candidate) during the election cycle shall be increased by an amount equal to the amount of the independent expenditures under the following circumstances:

(a) The candidate is a candidate for state executive office and the aggregate of such independent expenditures exceeds an amount equal to five percent of the base amount established in subsection (2) of this section for the office sought; or

(b) The candidate is a candidate for state legislative office and the aggregate of such independent expenditures exceeds an amount equal to ten percent of the base amount established in subsection (2) of this section for the office sought.

(4) A candidate for an office is not subject to an expenditure limitation under this chapter, if during the election cycle another candidate for that office:

(a) Enters an expenditure limitation and eligibility agreement under section 30 of this act for an election cycle but expends during the election cycle more than the expenditure limit applicable to that other candidate; or

(b)(i) Receives contributions, less any loan repayments, aggregating more than the amount listed in section 30(2) of this act for that office; and

(ii) Has not filed with the board the expenditure limitation and eligibility agreement under section 30 of this act within three business days of receiving that aggregate amount in contributions."

"NEW SECTION. Sec. 32. RULES FOR COUNTING CONTRIBUTIONS AND EXPENDITURES. For the purposes of this chapter:

(1) The expenditures made by and the contributions received by a candidate and the expenditures made by and the contributions received by the authorized committee of the candidate are considered to be expenditures made by and contributions received by the candidate.

(2) Payments made by a candidate to repay loans made to the candidate shall be reported but shall not be counted when determining the total expenditures made by the candidate and the candidate's authorized committee with regard to any of the expenditure limitations provided by this chapter.

(3) A contribution received within the twelve-month period following a general election for a state office shall be considered to be a contribution during the election cycle for the state office ending with that election. This subsection only applies to the extent the contribution is used to pay any debt or obligation incurred to influence the outcome of that election or the primary conducted for that election."

"NEW SECTION. Sec. 33. ADDITIONAL RULES FOR COUNTING EXPENDITURES‑-CHAPTER APPLIES TO ELECTIONS TO FILL VACANCIES. (1) The expenditure limitations imposed by this chapter are limitations on a candidate's expenditures for the candidate's own campaign for state office.

(2) The provisions of this chapter apply to a special election conducted to fill a vacancy in a state office. However, the contributions received by a candidate and the expenditures made by a candidate for a primary or special election conducted to fill such a vacancy shall not be counted toward any of the limitations which apply to the candidate under this chapter for the election cycle for any other election.

(3) This chapter does not apply to the recall of a state official. The contributions received by a state official against whom recall charges have been filed under chapter 29.82 RCW and the expenditures made by the official, which contributions and expenditures are made with regard to the recall and during the recall campaign, shall not be counted toward any of the limitations which apply under this chapter to the official as a candidate for the election cycle for any other election.

(4) An expenditure shall be considered to be an expenditure of the candidate if it is made by (a) the candidate or an authorized committee of the candidate; (b) a person who has received, expressly or impliedly, the candidate's encouragement or approval to make the expenditure, if the expenditure pays in whole or in part for any political advertising supporting the candidate or promoting the defeat of any other candidate or candidates for that office; or (c) a person with whom the candidate has collaborated for the purpose of making the expenditure, if the expenditure pays in whole or in part for any political advertising supporting the candidate or promoting the defeat of any other candidate or candidates for that office.

(5) A contribution, donation, or gift voluntarily made by a candidate or the candidate's authorized committee to the state election board for deposit in the state election campaign account shall not be considered to be an expenditure by the candidate for the purposes of this chapter."

"NEW SECTION. Sec. 34. LIMITATIONS ON EXPENDITURES FROM PERSONAL OR FAMILY FUNDS. (1) A candidate who enters an expenditure limitation and eligibility agreement under section 30 of this act for an election cycle shall not make, during the election cycle, expenditures from the personal funds of the candidate, or the funds contributed by any member of the immediate family of the candidate, aggregating in excess of the following:

(a) For a candidate for the office of governor, thirty thousand dollars;

(b) For a candidate for state executive office other than the office of governor, ten thousand dollars;

(d) For a candidate for the office of a member of the state house of representatives, three thousand dollars.

For the purposes of this subsection, a loan by a candidate or a member of the immediate family of the candidate to the campaign of the candidate shall be considered to be a campaign expenditure by the candidate.

(2) A candidate who enters an expenditure limitation and eligibility agreement under section 30 of this act for an election cycle and the authorized committee of the candidate shall not make expenditures during the election cycle which in the aggregate exceed any expenditure limit applicable to the candidate under section 31 of this act."

"NEW SECTION. Sec. 35. LIMITATIONS ON EMPLOYERS OR LABOR ORGANIZATIONS. (1) No employer or labor organization may increase the salary of an officer or employee, or give an emolument to an officer, employee, or other person or entity, with the intention that the increase in salary, or the emolument, or a part of it, be contributed or spent to support or oppose any candidate, ballot proposition, political party, or political committee.

(2) No employer or labor organization may discriminate against an officer or employee in the terms or conditions of employment: For (a) the failure to contribute to, (b) the failure in any way to support or oppose, or (c) in any way supporting or opposing a candidate, ballot proposition, political party, or political committee.

(3) No employer or other person or entity responsible for the disbursement of funds in payment of wages or salaries may withhold or divert any portion of an employee's wages or salaries for contributions to political committees except upon the written request of the employee. The request must be made on a form prescribed by the commission informing the employee of the prohibition against employer and labor organization discrimination described in subsection (2) of this section. The request shall be valid for no more than twelve months from the date it is made by the employee.

(4) Each person or entity who withholds contributions under subsection (3) of this section shall maintain open for public inspection for a period of no less than three years, during normal business hours, documents and books of accounts that shall include a copy of each employee's request, the amounts and dates funds were actually withheld, and the amounts and dates funds were transferred to a political committee. Copies of such information shall be delivered to the commission upon request."

"NEW SECTION. Sec. 36. VARIOUS CONTRIBUTION AND EXPENDITURE AMOUNTS ADJUSTED FOR INFLATION. The threshold amounts established in section 30(2) of this act, the base amounts established in section 31(2) of this act, and the amounts in section 34(1) of this act shall be increased or decreased by the board by rule at the beginning of each odd-numbered year based on changes in economic conditions as reflected in the inflationary index used by the public disclosure commission under RCW 42.17.370. The base year to be used for revisions made under this section is 1991.

The board may also adjust the base amounts in section 34(1) of this act applicable to a particular legislative office if the board finds that, as a result of changes in population since the latest decennial census, the population in the legislative district for that office differs significantly from the average population of a legislative district in the state. In such a case, the board may adjust the base amount applicable to that office to reflect that difference in populations."

"NEW SECTION. Sec. 37. AMOUNT OF STATE FINANCIAL ASSISTANCE‑-NO ASSISTANCE IF OPPOSITION IS PARTY TO EXPENDITURE LIMIT AGREEMENT. (1) Except as provided in subsections (3) and (4) of this section, an eligible candidate is entitled to payments from the state campaign account equal to:

(a) Four dollars for each qualifying dollar received by the candidate as a contribution for the campaign of the candidate; and

(b) The aggregate total amount of independent expenditures made or obligated to be made during the twelve months preceding the election by any person or persons in opposition to the candidate or for any other candidate for the office sought by the candidate if:

(i) The candidate is a candidate for state executive office and the aggregate of such independent expenditures exceeds an amount equal to five percent of the base amount established in section 31(2) of this act for the office sought; or

(ii) The candidate is a candidate for state legislative office and the aggregate of such independent expenditures exceeds an amount equal to ten percent of the base amount established in section 31(2) of this act for the office sought.

A qualifying dollar is one which satisfies all of the provisions of section 38 of this act regarding contributions.

(2) Payments received by a candidate under this section shall be deposited as required in section 30(1)(b)(iii) of this act and shall be used to pay for goods and services furnished during the election cycle for which the payments were received. Such payments shall not be used:

(a) To make any payments, directly or indirectly, to the candidate or to any member of the immediate family of the candidate;

(b) To make any expenditure other than expenditures to further the nomination or election of the candidate; or

(c) To repay any loan to any person except to the extent the proceeds of such loan were used to further the nomination or election of the candidate.

(3) A candidate shall not be eligible to receive payments from the state campaign account for a primary or election for an office unless:

(a) At least one other candidate for the office sought by the candidate: (i) Enters an expenditure limitation and eligibility agreement under section 30 of this act for an election cycle but expends during the election cycle more than the expenditure limit applicable to that other candidate; or (ii)(A) has not filed an expenditure limitation and eligibility agreement under section 30 of this act with the board in a timely manner; and (B) has received during the election cycle contributions, less loan repayments, which, in the aggregate, exceed twice the amount listed in section 30(2) of this act for the office sought. For the purposes of (a)(ii)(B) of this subsection, "contribution" does not include a contribution made by a candidate for state office; and

(b) The candidate and the authorized committee of the candidate have received contributions, less loan repayments, in an aggregate threshold amount of at least the amount listed in section 30(2) (a), (b), or (c) of this act for the office sought and all of the contributions received for this purpose satisfy the provisions of section 38 of this act.

(4)(a) Except as provided in (b) of this subsection, the sum of all payments from the state campaign account to a candidate for an election cycle may not exceed the following amounts for the office sought:

(i) For the office of governor, two hundred twenty thousand dollars;

(ii) For state executive office other than the office of governor, eighty thousand dollars;

(iii) For the office of a member of the state senate, fifty thousand dollars; and

(iv) For the office of a member of the state house of representatives, twenty-five thousand dollars.

(b) If the expenditure limitation applicable to the candidate is increased under section 31(3) of this act as a result of independent expenditures, the amount listed for the office sought by the candidate in (a) of this subsection, as it applies to the candidate, shall be increased by an amount equal to those independent expenditures."

"NEW SECTION. Sec. 38. RULES FOR DETERMINING WHETHER CONTRIBUTIONS WILL COUNT FOR DETERMINING THRESHOLD AMOUNT AND FOR STATE MATCHING FUNDS. For a contribution received by a candidate or the candidate's authorized committee to qualify as being one which satisfies the requirements of section 37(3)(b) of this act for raising a threshold amount of contributions or to qualify to be matched by public moneys from the state campaign account under section 37 of this act, the contribution must satisfy each of the following requirements:

(1) The contribution shall be a gift of money made by a written instrument which identifies the individual making the contribution;

(2) The contribution shall be made directly to the candidate or the candidate's authorized committee. Contributions made through any other person shall not qualify. The provisions of this subsection do not disqualify money received through bona fide joint fund-raising efforts conducted solely for the purpose of sponsorship of a fund-raising reception, dinner, or other event, under rules prescribed by the board, by: (a) Two or more candidates, or (b) one or more candidates and one or more national, state, or local committees of a political party acting on their own behalf;

(3) The contribution shall have come from an individual. However, the contribution shall not have come from a candidate for any office;

(4)(a) Of the total amount of all contributions made by a person to the candidate and the authorized committee of the candidate or for the benefit of the candidate, not more than the amount listed in (b) of this subsection for the office sought may be counted toward the threshold amount or be matched by moneys from the state campaign account. The provisions of this subsection shall not be construed as limiting the total amount of contributions that may be made by a person to or for the benefit of a candidate or that may be accepted by the candidate or the candidate's authorized committee from the person;

(b) The amount referred to in (a) of this subsection is: (i) For the office of governor, one thousand dollars; (ii) for state executive office other than the office of governor, five hundred dollars; (iii) for the state senate, four hundred dollars; and (iv) for the state house of representatives, two hundred dollars;

(c) For the purposes of this subsection (4), all contributions by one person who is controlled by any other person shall be considered to have been made by such other person. The provisions of this subsection (c) shall not be construed as applying to the relationship between an individual and the spouse of the individual; and

(5) The contribution shall be received during the election cycle."

"NEW SECTION. Sec. 39. PROCEDURES FOR REQUESTING PAYMENT UNDER EXPENDITURE LIMIT AGREEMENT. A candidate desiring payments from the state campaign account shall file a request with the board which shall contain:

(1) Such information and be made in accordance with such procedures as the board may provide by rule; and

(2) A verification signed by the candidate and the treasurer of the authorized committee of the candidate stating that the information furnished in support of the request, to the best of the knowledge of each, is correct and fully satisfies the requirements of this chapter.

No later than two business days after an eligible candidate files a request with the board to receive payments under this section, the board shall determine whether the candidate is eligible to receive payments from the state campaign account and, if the candidate is eligible to receive such payments, disburse to the candidate from the account the full amount to which the candidate is entitled.

A candidate is not limited to filing only one request for payments under this section during each election cycle. After filing an original request, a candidate may file one or more supplemental requests to receive the payments to which the candidate is entitled.

The board may permit its executive director to approve requests submitted under this section and make the disbursements authorized by this chapter on behalf of the board and within guidelines adopted by the board by rule."

"NEW SECTION. Sec. 40. ELECTION BOARD CREATED. There is hereby created the state election board, which shall be composed of six members appointed by the governor. Each member shall be appointed to a permanently assigned position number on the board.

Initially, the legislative leader of each of the two largest political parties in each house of the state legislature shall submit a list of three nominees for appointment to the board. The governor shall appoint one member of the board from each of the four lists submitted by the four legislative leaders. These shall be positions one through four. Appointment of a successor for a full term for any one of these four positions or for filling a vacancy in any one of these four positions shall be made from a list of three persons nominated by the legislative leader of the same political party in the legislature which nominated the person first appointed to the position.

Positions five and six shall be appointed by the governor to represent the public interest generally. Any person or organization may submit recommendations to the governor, which may be considered by the governor in making the appointments to these two positions. A person appointed to position five or six shall not also be an elected public official nor may the person have held the office of an elected public official in any of the six years prior to his or her appointment.

The term of office of each member of the board is four years, except that the term of office of one of the initial members shall be one year, the term of two initial members shall be two years, and the term of one other initial member shall be three years as designated by the governor. The board shall notify the governor and any appropriate nominating legislative leader regarding a vacancy created on the board or the impending conclusion of a member's full term of office. The governor shall make appointments to fill vacancies within thirty days of their being created and shall make appointments to fill full terms within thirty days of the expiration of a member's term.

Four members constitute a quorum for conducting the business of the board.

The board is a class four group under the provisions of RCW 43.03.250 and members shall be compensated accordingly. In addition, the members shall be reimbursed for travel expenses incurred while engaged in the business of the board as provided in RCW 43.03.050 and 43.03.060."

"NEW SECTION. Sec. 41. ELECTION BOARD DUTIES. The state election board shall:

(1) Administer this chapter and adopt such rules and make such orders as it finds appropriate for such administration;

(2) Enforce the provisions of this chapter and the rules adopted by the board under this chapter, and administer oaths and affirmations, issue subpoenas, and compel attendance, take evidence and require the production of any books, papers, correspondence, memorandums, or other records relevant or material for the purpose of any investigation under this chapter;

(3) Develop and provide forms for the applications and reports filed with the board under this chapter;

(4) Prepare and publish, jointly with the public disclosure commission, a manual setting forth uniform methods of bookkeeping by candidates who have accepted public funding;

(5) Compile and maintain a current list of all filed reports and statements filed under this chapter;

(6) Upon complaint or upon its own motion, investigate possible violations of this chapter and of rules adopted under this chapter;

(7) Employ staff, including an executive director who shall perform such duties and have such powers as the board may prescribe. However, the board may not delegate its authority to adopt, amend, or rescind rules or to determine whether a violation of this chapter has occurred or to assess penalties for such violation; and

(8) Prepare and publish such reports and technical studies as in its judgment will tend to promote the purposes of this chapter.

The board may accept contributions, donations, or gifts from any person or entity on behalf of the state election campaign account. The money value of any such contribution, donation, or gift received by the board shall be promptly deposited in the account."

"NEW SECTION. Sec. 42. ELECTION BOARD PROVIDES CAMPAIGN FINANCING PAYMENTS‑-APPEAL FROM ADVERSE BOARD DECISION. (1) The board shall decide all applications for payment from the state campaign account. Each application shall be decided in accordance with rules adopted by the board, and the board's decision on the application shall be final unless appealed as provided in subsection (2) of this section. The board's review of applications, and all actions taken by the board on applications, shall be exempt from chapter 34.05 RCW.

(2) Any person adversely affected by the board's decision and who believes the decision to be unlawful may appeal to the superior court of Thurston county by petition setting forth his or her reasons why the decision is unlawful. A copy of the petition on appeal together with a notice that an appeal has been taken shall be served upon the board, upon the attorney general, and upon each candidate for the office sought by the applicant. The decision of the superior court shall be final. Such appeal shall be heard without costs to either party."

"NEW SECTION. Sec. 43. CREATION OF STATE ELECTION CAMPAIGN ACCOUNT. The state election campaign account is hereby created in the custody of the state treasurer. All moneys appropriated to the board for deposit in the account, all moneys received under RCW 29.15.050 or 29.18.050, and all earnings of investments of balances in the account shall be credited to the account. Moneys may be disbursed from the account only in the form of payments to eligible candidates as authorized by this chapter. Only the board, or the board's executive director if permitted to do so by rules adopted by the board, may authorize disbursements from the account. The account is subject to allotment procedures under chapter 43.88 RCW, but no appropriation is required for disbursements."

"NEW SECTION. Sec. 44. EXAMINATION AND AUDITS‑-RETURN OF UNSPENT MATCHING FUNDS. (1) The public disclosure commission and the board shall jointly develop and approve a program for auditing the campaign accounts of candidates who accept public funding under this chapter.

(2) After each general election, the public disclosure commission shall conduct, on behalf of the board, such examinations and audits of the campaign accounts of eligible candidates and of authorized committees as are sufficient to determine, among other things, whether candidates have complied with the expenditure limits and other conditions of eligibility and requirements of this chapter.

(3) The board shall review the examinations and audits conducted by the commission on its behalf and may conduct any additional investigations it believes to be warranted. The board shall require candidates to return to the board any unexpended funds received by the candidates under this chapter. The board may adopt exceptions to this requirement for instances where debts are in dispute.

(4) Examinations and audits shall not be made by the commission under this section with respect to an election cycle more than three years after the cycle."

"NEW SECTION. Sec. 45. VIOLATIONS. (1) It is a violation of this chapter for any candidate to accept public payments under this chapter which are in excess of the aggregate payments to which the candidate is entitled.

(2) It is a violation of this chapter for any candidate or for any officer, member, employee, or agent of a political committee for the candidate:

(a) To use or transfer funds for any purpose prohibited by section 37(2) of this act;

(b) To make expenditures which he or she knows exceed any expenditure limitation applicable under section 31 of this act;

(d) To violate the agreement under section 30(1)(b) of this act.

(3) It is a violation of this chapter for any person:

(a) To furnish to the board or to the public disclosure commission under this chapter any evidence, books, or information (including any certification, verification, notice, or report), which is false, fictitious, or fraudulent, or to include in any evidence, books, or information so furnished any misrepresentation of a material fact, or to falsify or conceal any evidence, books, or information relevant to a payment by the board or an examination or audit by the board or the commission under this chapter; or

(b) To fail to furnish to the board or the commission any records, books, or information requested by it for purposes of this chapter.

(4) It is a violation of this chapter for any person to accept any payment if the person knows, or has reason to know, that the payment is in violation of section 37(2) of this act."

"NEW SECTION. Sec. 46. BOARD TO REPORT TO GOVERNOR AND LEGISLATURE‑-RULE-MAKING POWERS. (1) The board shall, as soon as practicable after each election, submit a full report to the governor and the legislature setting forth:

(a) The expenditures shown in such detail as the board determines appropriate made by each eligible candidate and the authorized committee of each candidate;

(b) The amounts paid by the board under section 39 of this act to each eligible candidate;

(d) The balance in the state campaign account.

(2) The board is authorized to prescribe such rules in accordance with chapter 34.05 RCW, to conduct such examinations and investigations, and to require the keeping and submission of such books, records, and information, as it deems necessary to carry out the functions and duties imposed on it by this chapter."

"NEW SECTION. Sec. 47. PENALTIES FOR VIOLATION OF EXPENDITURE LIMIT CHAPTER. The board may impose a civil fine on any person who violates any provision of this chapter or any rule adopted under this chapter. The fine shall not exceed ten thousand dollars, except for the following violations for which the penalty shall be as follows:

(1) For violations of section 45(1) of this act, up to the greater of ten thousand dollars or the amount in excess of the aggregate payments to which the candidate is entitled;

(2) For violations of section 45(2)(a) of this act, up to the greater of ten thousand dollars or the amount used or transferred for a prohibited purpose;

(3) For violations of section 45(2)(b) of this act, up to the greater of ten thousand dollars or the amount of the expenditures in excess of the applicable expenditure limitation; and

(4) For violations of section 45(4) of this act, up to the greater of ten thousand dollars or the amount of the payment in violation of section 37(2) of this act."

"NEW SECTION. Sec. 48. BOARD TO ESTIMATE PUBLIC FUNDS NEEDED FOR MATCHING FUNDS. The state election board shall, on an annual basis, estimate the funding needed to provide public matching moneys for election campaigns under this chapter. Each annual estimate shall identify funding needs for each of the successive four years. The board shall transmit its estimate to the legislature on December 20th of each year."

"NEW SECTION. Sec. 49. CODIFICATION DIRECTIONS. Sections 29 through 48 of this act shall constitute a new chapter in Title 42 RCW."

Renumber the remaining sections and part headings consecutively and correct any internal references accordingly.