SENATE BILL REPORT

                            SB 6329

                    AS OF JANUARY 28, 1994

Brief Description:  Avoiding the appearance of favoritism in the state's selection of service providers or underwriters.

SPONSORS: Senators West, Snyder, Moore and Sellar

SENATE COMMITTEE ON GOVERNMENT OPERATIONS

Staff:  Rod McAulay (786‑7754)

Hearing Dates: January 31, 1994

BACKGROUND:

Contributions from individuals, partnerships, corporations and other organizations to political campaigns have been limited by the passage of Initiative 134 in November, 1992. These limits are $500 in an election cycle to any candidate for an office other than a statewide office, and $1,000 in an election cycle to any candidate for statewide office.  There is no legal restriction on the granting of contracts for the sale of bonds to an underwriter, or for financial or legal services to an individual or firm, which has made, or may make, campaign contributions to an individual involved in the decision to grant the contract.

Current requirements for executive state officers to file financial disclosure statements with the Public Disclosure Commission do not expressly name the various officers within the office of the State Treasurer.

SUMMARY:

The State Treasurer may not contract with an underwriter or provider of legal or financial services if the underwriter or service provider made a contribution which is reportable under the campaign finance disclosure laws to him or her during the current or preceding campaign cycle.  An underwriter or service provider must certify in any contract with the State Treasurer that they will not make any reportable campaign contribution during the life of the contract.  The same prohibitions and requirements apply to members of the State Finance Committee, members of the State  Investment Board, and to any elected official of a county, city, town or political subdivision authorized to issue revenue bonds.

In the office of the State Treasurer, the assistant treasurer, deputy treasurer, legal counsel, and investment officer are all expressly required to comply with the disclosure requirements of the Public Disclosure Commission.

Appropriation: none 

Revenue:  none

Fiscal Note:  none requested

Effective Date:  July 1, 1994