HOUSE OF REPRESENTATIVES

                      Olympia, Washington

Bill Analysis      Bill No. HB 2435

Reporting of independent campaign expenditures       Hrg Date:  1/28/98

Brief Title

Reps. Pennington/Appelwick                                Staff: Steve Lundin

Sponsor                                     Comm. on Govt. Admin.

                                           Phone: 786-7127

BACKGROUND:

Initiative 276 was approved by voters in 1972.   Among other requirements, Initiative 276 requires various reports of campaign expenditures to be filed with the Public Disclosure Commission (PDC) and county auditors.

Each candidate and political committee is required to file a report on its contributions received, and expenditures made, since filing the last report at the following intervals: (1) On the 21^st day and 7^th day immediately preceding the election; (2) on the 10^th day of the first month after the election; and (3) on the 10^th day of each month in which no other reports are required to be filed.

Each person who makes an independent expenditure of $100 or more during the same election campaign in support of or opposition to a candidate or ballot proposition, who does not otherwise have to file a report as a candidate or political committee, must file a report of the independent expenditure at the following intervals: (1) On the 21^st day and 7^th day immediately preceding the election; (2) on the 10^th day of the first month after the election; and (3) on the 10^th day of each month in which no other reports are required to be filed.

[Note: There appears to be a definition problem in the PDC laws.  The term Aindependent expenditure@ is defined as a cumulative amount of expenditures of $500 or more expended for the benefit of a candidacy.  However, substantive provisions of the PDC law refer to independent expenditures for or against a candidacy or ballot proposition and require reporting if the amount of the expenditure is $100 or more.]

                                                     Continued

HB 2435 - Page 2

SUMMARY:

1.New special reports on independent expenditures of $1,000 or more.

A person must file a special report with the PDC who makes an independent expenditure within 21 days of an election that totals $1,000 or more to support a candidate or oppose a candidate=s opponent, or to support or oppose a ballot proposition.  The special report must be filed within 24 hours or on the first working day after the political advertising is published or otherwise presented to the public.  Filing may be by facsimile or other electronic means, guaranteed overnight delivery, or by personal delivery.

Once a person is required to file such a special report, an additional special report must be filed for each subsequent independent expenditure of any size is made.

2.Notarized declarations on various reports.

A person who files any independent expenditure report, or a report as a candidate or political committee, must also file a notarized affidavit or declaration that an independent expenditure was not made in cooperation, consultation, or concert with, or at the request or suggestion of the candidate.

FISCAL NOTE:  Not requested.

EFFECTIVE DATE:  Ninety days after adjournment of session in which bill is passed.