BP BHEAD INT S [atlas:bill]

AN ACT Relating to campaign reform; amending RCW 42.17.640, 42.17.080, 42.17.065, 42.17.090, 42.17.510, 42.17.040, 42.17.105, 42.17.175, and 42.17.680; adding new sections to chapter 42.17 RCW; adding a new section to chapter 29.80 RCW; creating a new section; and repealing RCW 42.17.128.

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

NEW SECTION. Sec. 1. (1) The tremendous increases in the costs of election campaigns, when coupled with recently enacted limits on campaign contributions, creates a situation favoring the election of wealthy candidates able to spend substantial amounts of their own money for the purpose of winning elections, those candidates who receive their contributions from sources that have been able to proliferate to avoid, as a practical matter, the contribution limits, and those candidates who are supported by large independent expenditures.

(2) In order to decrease the advantage of a candidate's wealth or nimble contribution sources in election contests, the legislature enacts this law directing the adoption of voluntary campaign spending limits for state election contests and inducements to encourage acceptance of these voluntary spending limits, as follows:

(a) The amount of any individual contribution to a candidate who voluntarily agrees to the spending limits is twice that applicable to a candidate who does not agree to the spending limits.

(b) Candidates' pamphlets must prominently indicate whether a candidate has, or has not, voluntarily agreed to the spending limits.

(c) Major political advertisements relating to a candidate must prominently disclose whether the candidate has or has not voluntarily agreed to the spending limitations.

(d) Each candidate who voluntarily agrees to the spending limits, and who has an opposing candidate listed on the general election ballot, may give each individual who makes a contribution to his or her campaign a voucher of a value equal to the lesser of one-half of the contribution or twenty-five dollars that may be used by the individual to pay real property taxes, motor vehicle excise taxes, or tuition at a public institution of higher education in the state.

(3) In order to encourage more responsible political advertising and to encourage less money being spent on campaigns, the following changes are made to encourage political advertising to be made by a candidate or the authorized committee of a candidate, in lieu of political committees making political advertisements relating to a candidate as independent expenditures:

(a) Enhanced recordkeeping and reporting requirements are established for such independent expenditures;

(b) Greater restrictions are established on late contributions made for such purposes; and

(4) In order to limit the amount of money flowing to political campaigns, campaign contributions by for-profit corporations may only be made from a separate fund made up of money solicited expressly for political purposes.

PART I--VOLUNTARY SPENDING LIMITATIONS

NEW SECTION. Sec. 101. A new section is added to chapter 42.17 RCW to read as follows:

(1) The public disclosure commission shall adopt recommended spending limits for candidates for the offices of governor, lieutenant governor, secretary of state, treasurer, auditor, attorney general, commissioner of public lands, insurance commissioner, superintendent of public instruction, member of the state senate, and member of the state house of representatives. In adopting the recommended spending limits, the commission shall consider the average expenditure amounts for the candidates who received the highest and next highest number of votes in the 1996 general elections for each such office. Unless the commission finds that these amounts would be inappropriate or unrealistic or that adjustments in the amounts to reflect geographic differences in legislative districts are warranted, the commission shall base its recommended spending limits on such average expenditure amounts.

(2) Beginning in 1998, the commission shall biennially adjust the recommended spending limits adopted under subsection (1) of this section based on changes in economic conditions as reflected in the inflationary index used by the commission under RCW 42.17.370.

(3) Each candidate for an office subject to a recommended spending limit may execute and file with the commission, a promise that the candidate will stay within the limit. A candidate's promise that is executed and filed in conformance with this section and with the implementing rules adopted by the commission is binding on the candidate. A candidate who violates his or her promise to stay within the voluntary spending limit is in violation of this chapter. The commission shall remove the name of such a candidate from the list prepared under subsection (5) of this section.

(4) The commission shall prescribe the form that must be used for executing a promise under this section. The promise must be filed not later than the tenth day after the close of the filing period for the office.

(5) For each election involving an office for which voluntary expenditure limits have been established under this section, the commission shall compile a list of those candidates who filed promises in a timely manner. The commission shall promptly make the list available to the media and the public. The announcement of its availability may be made only by the executive director of the commission or an employee designated by the chair of the commission to make the announcement. During an election campaign, the commission shall periodically publish a list identifying each candidate who has executed a binding promise under this section.

NEW SECTION. Sec. 102. A new section is added to chapter 29.80 RCW to read as follows:

The secretary of state shall add to each candidates' pamphlet a list of the campaign spending limits recommended by the public disclosure commission for each of the state offices for which the statements of candidates appear in the pamphlet and a brief explanation of the effect of a promise filed with the commission under section 101 of this act.

In preparing the candidates' pamphlet for publication, the secretary of state shall obtain from the public disclosure commission its most current list of candidates who have promised to limit spending, as that list is specified in section 101 of this act. Using this list, the secretary shall add a prominent notice or symbol in the candidates' pamphlet, accompanying the statement or photograph of each candidate for a state office, that clearly indicates whether the candidate has or has not agreed to abide by the voluntary spending limit for this campaign.

For the purposes of this section, "state office" means the offices listed in section 101(1) of this act for which the public disclosure commission has adopted recommended spending limits.

Sec. 103. RCW 42.17.640 and 1995 c 397 s 20 are each amended to read as follows:

(1) No person, other than a bona fide political party or a caucus political committee, may make contributions to a candidate for a state legislative office that in the aggregate exceed ((~~five~~)) two hundred seventy-five dollars or to a candidate for a state office other than a state legislative office that in the aggregate exceed ((~~one thousand~~)) five hundred fifty dollars for each election in which the candidate is on the ballot or appears as a write-in candidate. However, if a candidate has agreed to spending limitations under section 101 of this act, the contribution limits for that candidate at each election in which the candidate is on the ballot or appears as a write-in candidate are increased to five hundred fifty dollars for a state legislative office and one thousand one hundred dollars for an office other than a state legislative office. Contributions made with respect to a primary may not be made after the date of the primary. Contributions made with respect to a general election may not be made after the final day of the applicable election cycle.

(2) No person, other than a bona fide political party or a caucus political committee, may make contributions to a state official against whom recall charges have been filed, or to a political committee having the expectation of making expenditures in support of the recall of the state official, during a recall campaign that in the aggregate exceed five hundred dollars if for a state legislative office or one thousand dollars if for a state office other than a state legislative office.

(3)(a) Notwithstanding subsection (1) of this section, no bona fide political party or caucus political committee may make contributions to a candidate during an election cycle that in the aggregate exceed (i) ((~~fifty~~)) twenty-seven and one-half cents multiplied by the number of eligible registered voters in the jurisdiction from which the candidate is elected if the contributor is a caucus political committee or the governing body of a state organization, or (ii) ((~~twenty-five~~)) thirteen and three-quarters cents multiplied by the number of registered voters in the jurisdiction from which the candidate is elected if the contributor is a county central committee or a legislative district committee. However, if a candidate has agreed to spending limitations under section 101 of this act, notwithstanding subsection (1) of this section, the contribution limits for that candidate during that election cycle are increased to fifty-five cents per registered voter from a caucus political committee or the governing body of a state organization and twenty-seven and one-half cents per registered voter from a county central committee or legislative district committee.

(b) No candidate may accept contributions from a county central committee or a legislative district committee during an election cycle that when combined with contributions from other county central committees or legislative district committees would in the aggregate exceed ((~~twenty-five~~)) thirteen and three-quarters cents times the number of registered voters in the jurisdiction from which the candidate is elected. However, if a candidate has agreed to spending limitations under section 101 of this act, the contribution limits for that candidate during that election cycle are increased to twenty-seven and one-half cents per registered voter in the candidate's jurisdiction.

(4)(a) Notwithstanding subsection (2) of this section, no bona fide political party or caucus political committee may make contributions to a state official against whom recall charges have been filed, or to a political committee having the expectation of making expenditures in support of the state official, during a recall campaign that in the aggregate exceed (i) fifty cents multiplied by the number of eligible registered voters in the jurisdiction entitled to recall the state official if the contributor is a caucus political committee or the governing body of a state organization, or (ii) twenty-five cents multiplied by the number of registered voters in the jurisdiction from which the candidate is elected if the contributor is a county central committee or a legislative district committee.

(b) No state official against whom recall charges have been filed, no authorized committee of the official, and no political committee having the expectation of making expenditures in support of the recall of a state official may accept contributions from a county central committee or a legislative district committee during an election cycle that when combined with contributions from other county central committees or legislative district committees would in the aggregate exceed twenty-five cents multiplied by the number of registered voters in the jurisdiction from which the candidate is elected.

(5) For purposes of determining contribution limits under subsections (3) and (4) of this section, the number of eligible registered voters in a jurisdiction is the number at the time of the most recent general election in the jurisdiction.

(6) Notwithstanding subsections (1) through (4) of this section, no person other than an individual, bona fide political party, or caucus political committee may make contributions reportable under this chapter to a caucus political committee that in the aggregate exceed five hundred dollars in a calendar year or to a bona fide political party that in the aggregate exceed two thousand five hundred dollars in a calendar year. This subsection does not apply to loans made in the ordinary course of business.

(7) For the purposes of RCW 42.17.640 through 42.17.790, a contribution to the authorized ((~~political~~)) committee of a candidate, or of a state official against whom recall charges have been filed, is considered to be a contribution to the candidate or state official.

(8) A contribution received within the twelve-month period after a recall election concerning a state office is considered to be a contribution during that recall campaign if the contribution is used to pay a debt or obligation incurred to influence the outcome of that recall campaign.

(9) The contributions allowed by subsection (2) of this section are in addition to those allowed by subsection (1) of this section, and the contributions allowed by subsection (4) of this section are in addition to those allowed by subsection (3) of this section.

(10) RCW 42.17.640 through 42.17.790 apply to a special election conducted to fill a vacancy in a state office. However, the contributions made to a candidate or received by a candidate for a primary or special election conducted to fill such a vacancy shall not be counted toward any of the limitations that apply to the candidate or to contributions made to the candidate for any other ((~~primary or~~)) election.

(11) Notwithstanding the other subsections of this section, no corporation or business entity not doing business in Washington state, no labor union with fewer than ten members who reside in Washington state, and no political committee that has not received contributions of ten dollars or more from at least ten persons registered to vote in Washington state during the preceding one hundred eighty days may make contributions reportable under this chapter to a candidate, to a state official against whom recall charges have been filed, or to a political committee having the expectation of making expenditures in support of the recall of the official. This subsection does not apply to loans made in the ordinary course of business.

(12) Notwithstanding the other subsections of this section, no county central committee or legislative district committee may make contributions reportable under this chapter to a candidate, state official against whom recall charges have been filed, or political committee having the expectation of making expenditures in support of the recall of a state official if the county central committee or legislative district committee is outside of the jurisdiction entitled to elect the candidate or recall the state official.

(13) No person may accept contributions that exceed the contribution limitations provided in this section.

(14) The following contributions are exempt from the contribution limits of this section:

(a) An expenditure or contribution earmarked for voter registration, for absentee ballot information, for precinct caucuses, for get-out-the-vote campaigns, for precinct judges or inspectors, for sample ballots, or for ballot counting, all without promotion of or political advertising for individual candidates; or

(b) An expenditure by a political committee for its own internal organization or fund raising without direct association with individual candidates.

NEW SECTION. Sec. 104. A new section is added to chapter 42.17 RCW to read as follows:

(1) After meeting the eligibility requirements under subsection (2) of this section, a candidate for a state office may give a voter voucher to each registered voter who makes a contribution to the candidate's campaign. The candidate may give voter vouchers only to contributors residing in the same legislative district as the candidate if the candidate is running for a state legislative office or residing in the state of Washington if the candidate is running for any other state office. A voter voucher must be equal to the lesser of one-half the amount of the contribution or twenty-five dollars in any election cycle.

The candidate shall keep records of the name and address of each registered voter who receives a voter voucher, the amount of the contribution, and the amount of the voter voucher. A voter voucher may be used by the registered voter to pay real property taxes, motor vehicle excise taxes, or tuition at a public institution of higher education in the state, as defined under RCW 28B.10.016. The institution of higher institution, county treasurer, or public entity that would otherwise receive the payment for which the voter voucher is used may redeem the voucher from the state treasurer.

The public disclosure commission shall design the voter voucher and distribute copies to candidates who meet the eligibility requirements of subsection (2) of this section. A voter voucher must be designed so that the candidate may sign it and fill in the amount of the voter voucher.

(2) A candidate for a state office is eligible to distribute voter vouchers after a primary if the candidate meets the following requirements: (a) The name of the candidate will appear on the general election ballot for the state office or the candidate has filed a declaration of candidacy as a write-in candidate for the state office; (b) the candidate has signed the agreement for voluntary spending limits under section 101 of this act; and (c) the candidate has raised at least (i) five thousand dollars in contributions for his or her candidacy from registered voters residing in the same legislative district, other than the candidate or a member of the candidate's immediate family, within sixty days before winning the primary or filing a declaration of candidacy as a write-in candidate for a state legislative office; or (ii) ten thousand dollars in contributions for his or her candidacy from registered voters residing within the state of Washington, other than the candidate or a member of the candidate's immediate family, within sixty days before winning the primary or filing a declaration of candidacy as a write-in candidate for a state office other than a state legislative office.

(3) Any such candidate who violates the voluntary spending limit is liable to pay to the state treasurer the full value of any voter vouchers that the candidate distributed.

NEW SECTION. Sec. 105. A new section is added to chapter 42.17 RCW to read as follows:

The election equity fund is created in the state treasury. All receipts from taxes imposed under chapter 82.04 RCW on public relations or advertising services shall be deposited into the fund. The fund is not subject to allotment procedures under chapter 43.88 RCW, and no appropriation is required to transfer moneys from the fund to the public entity that otherwise would receive the payment for which the voucher is used under section 104 of this act.

PART II--POLITICAL ADVERTISING

Sec. 201. RCW 42.17.080 and 1995 c 397 s 2 are each amended to read as follows:

(1) On the day the treasurer is designated, each candidate or political committee shall file a report of all contributions received and expenditures made before that date, if any, with the commission and the appropriate county ((~~auditor or~~)) elections officer ((~~of the county in which the candidate resides, or in the case of a political committee, the county in which the treasurer resides~~)), as specified under section 204 of this act. This report is in addition to any statement of organization required under RCW 42.17.040 or 42.17.050((~~, a report of all contributions received and expenditures made prior to that date, if any~~)).

(2) At the following intervals each ((~~treasurer~~)) candidate or political committee shall file a report containing the information and requirements of RCW 42.17.090 with the commission and the appropriate county ((~~auditor or~~)) elections officer ((of the county in which the candidate resides, or in the case of a political committee, the county in which the committee maintains its office or headquarters, and if there is no office or headquarters then in the county in which the treasurer resides, a report containing the information required by RCW 42.17.090)), as specified under section 204 of this act:

(a) On the twenty-first day and the seventh day immediately preceding the date on which the election is held; and

(b) On the tenth day of the first month after the election((~~: PROVIDED, That~~)), but this report ((~~shall~~)) is not ((be)) required following a primary ((~~election~~)) from:

(i) A candidate whose name will appear on the subsequent general election ballot; or

(ii) Any continuing political committee; and

(c) On the tenth day of each month in which no other reports are required to be filed under this section((~~: PROVIDED, That such~~)).

However, the report ((~~shall only be~~)) required by this subsection (2) must be filed only if the candidate or political committee has received a contribution or made an expenditure in the preceding calendar month and either the total contributions received or total expenditures made since the last such report exceed two hundred dollars.

The candidate or political committee shall file a final report with the commission and the appropriate county elections officer, as specified under section 204 of this act, when there is no outstanding debt or obligation, and all the ((~~campaign fund is~~)) candidate's or political committee's accounts are closed, and either the candidate's campaign is concluded in all respects, ((~~and~~)) or in the case of a political committee, the committee has ceased to function and has dissolved((~~, the treasurer shall file a final report~~)). Upon submitting a final report, the duties of the treasurer shall cease and there shall be no obligation to make any further reports.

The report filed twenty-one days before the election by a candidate, or by a political committee that has not made a political advertisement relating to a candidate undertaken as an independent expenditure, shall report all contributions received and expenditures made as of the end of the fifth ((~~business~~)) day before the date of the report. The report filed twenty-one days before the election by a political committee that made a political advertisement relating to a candidate undertaken as an independent expenditure shall report all contributions received and expenditures made as of the end of the day before the date of the report. The report filed seven days before the election by a candidate or political committee shall report all contributions received and expenditures made as of the end of the ((~~one business~~)) day before the date of the report. Reports filed on the tenth day of the month shall report all contributions received and expenditures made from the closing date of the last report filed through the last day of the month preceding the date of the current report.

(3) For the period beginning the first day of the fourth month preceding the date on which the ((~~special or general~~)) election is held and ending on the date of that election, each Friday the ((~~treasurer~~)) candidate or political committee shall file with the commission and the appropriate county elections officer, as specified under section 204 of this act, a report of each ((~~bank deposit made~~)) contribution received during the previous seven calendar days. ((The report shall contain the name of each person contributing the funds so deposited and the amount contributed by each person. However, contributions of no more than twenty-five dollars in the aggregate from any one person may be deposited without identifying the contributor.))

(4) A copy of ((~~the~~)) each report ((~~shall~~)) required to be filed by a candidate or political committee under this chapter must be retained by the treasurer ((~~for his or her~~)) as part of the candidate's or political committee's records. ((In the event of deposits made by a deputy treasurer, the copy shall be forwarded to the treasurer for his or her records. Each report shall be certified as correct by the treasurer or deputy treasurer making the deposit.

~~(4) The treasurer or~~)) (5) The candidate or political committee shall ((~~maintain~~)) have books of account maintained that accurately ((~~reflecting~~)) reflect all contributions and expenditures on a current basis within ((~~five business days~~)) one day of receipt or expenditure. During the eight days immediately preceding the date of the election the books of account ((~~shall~~)) for a candidate, and a political committee that has not made a political advertisement relating to a candidate as an independent expenditure, must be kept current within one ((~~business~~)) day and shall be open for public inspection for at least two consecutive hours Monday through Friday, excluding legal holidays, between 8:00 a.m. and 8:00 p.m., as specified in the committee's statement of organization filed pursuant to RCW 42.17.040, at the principal headquarters or, if there is no headquarters, at the address of the treasurer or such other place as may be authorized by the commission. During the twenty-one days immediately before the date of an election, a political committee that made a political advertisement relating to a candidate undertaken as an independent expenditure shall keep its books of account current within one day and shall keep them open for public inspection for at least two consecutive hours Monday through Friday, excluding legal holidays, between 8:00 a.m. and 8:00 p.m., as specified in the committee's statement of organization filed under RCW 42.17.040, at the principal headquarters or, if there is no headquarters, at the address of the treasurer or such other place as may be authorized by the commission.

The ((~~treasurer or~~)) candidate or political committee shall preserve books of account, bills, receipts, and all other financial records of the campaign or political committee for not less than five calendar years following the year during which the transaction occurred.

((~~(5) All reports filed pursuant to subsections (1) or (2) of this section shall be certified as correct by the candidate and the treasurer.~~))

(6) Copies of all reports filed pursuant to this section shall be readily available for public inspection for at least two consecutive hours Monday through Friday, excluding legal holidays, between 8:00 a.m. and 8:00 p.m., as specified in the committee's statement of organization filed pursuant to RCW 42.17.040, at the principal headquarters or, if there is no headquarters, at the address of the treasurer or such other place as may be authorized by the commission.

(7) The commission shall adopt administrative rules establishing requirements for filer participation in any system designed and implemented by the commission for the electronic filing of reports.

Sec. 202. RCW 42.17.065 and 1989 c 280 s 5 are each amended to read as follows:

(1) In addition to the provisions of this section, a continuing political committee shall file and report on the same conditions and at the same times as any other committee in accordance with the provisions of RCW 42.17.040, 42.17.050, and 42.17.060.

(2) A continuing political committee shall file with the commission and the ((~~auditor or~~)) appropriate county elections officer ((~~of the county in which the committee maintains its office or headquarters and if there is no such office or headquarters then in the county in which the committee treasurer resides~~)), as provided under section 204 of this act, a report on the tenth day of the month detailing its activities for the preceding calendar month in which the committee has received a contribution or made an expenditure((~~: PROVIDED, That such report shall only~~)). However, the report must be filed only if either the total contributions received or total expenditures made since the last such report exceed two hundred dollars. The report shall be on a form supplied by the commission and shall include the following information:

(a) The information and requirements required by RCW 42.17.090;

(b) Each expenditure made to retire previously accumulated debts of the committee; identified by recipient, amount, and date of payments;

(3) If a continuing political committee shall make a contribution in support of or in opposition to a candidate or ballot proposition within sixty days prior to the date on which such candidate or ballot proposition will be voted upon, such continuing political committee shall report pursuant to RCW 42.17.080.

(4) A continuing political committee shall file reports as required by this chapter until it is dissolved, at which time a final report shall be filed. Upon submitting a final report, the duties of the ((~~campaign~~)) committee treasurer shall cease and there shall be no obligation to make any further reports.

(5) The ((~~campaign~~)) committee treasurer shall maintain books of account accurately reflecting all contributions and expenditures on a current basis within ((~~five business days~~)) one day of receipt or expenditure. During the eight days immediately preceding the date of any election, for which the continuing political committee has received any contributions or made any expenditures, the books of account shall be kept current within one ((~~business~~)) day and shall be open for public inspection for at least two consecutive hours Monday through Friday, excluding legal holidays, between 8:00 a.m. and 8:00 p.m., as specified in the committee's statement of organization filed pursuant to RCW 42.17.040, at the principal campaign headquarters or, if there is no campaign headquarters, at the address of the ((~~campaign~~)) committee treasurer or such other place as may be authorized by the commission. In addition, a continuing political committee may be subject to additional requirements provided under RCW 42.17.080.

(6) All reports filed pursuant to this section shall be certified as correct by the ((~~campaign~~)) committee treasurer.

(7) The ((~~campaign~~)) committee treasurer shall preserve books of account, bills, receipts, and all other financial records of the campaign or political committee for not less than five calendar years following the year during which the transaction occurred.

Sec. 203. RCW 42.17.090 and 1993 c 256 s 6 are each amended to read as follows:

(1) Each report required under RCW 42.17.065, 42.17.080 ((~~(1) and (2) shall~~)), and 42.17.135 must disclose the following:

(a) The funds on hand at the beginning of the period;

(b) The name and address of each person who has made one or more contributions during the period, together with the money value and date of such contributions and the aggregate value of all contributions received from each such person during the campaign or in the case of a continuing political committee, the current calendar year((~~: PROVIDED, That~~)). However, (i) pledges in the aggregate of less than one hundred dollars from any one person need not be reported((~~: PROVIDED FURTHER, That the~~)); (ii) income which results from a fund-raising activity conducted in accordance with RCW 42.17.067 may be reported as one lump sum, with the exception of that portion of such income which was received from persons whose names and addresses are required to be included in the report required by RCW 42.17.067((~~: PROVIDED FURTHER, That~~)); (iii) contributions of no more than twenty-five dollars in the aggregate from any one person during the election campaign may be reported as one lump sum so long as the campaign treasurer maintains a separate and private list of the name, address, and amount of each such contributor((~~: PROVIDED FURTHER, That~~)); and (iv) the money value of contributions of postage shall be the face value of such postage;

(c) Each loan, promissory note, or security instrument to be used by or for the benefit of the candidate or political committee made by any person, together with the names and addresses of the lender and each person liable directly, indirectly, or contingently and the date and amount of each such loan, promissory note, or security instrument;

(d) All other contributions not otherwise listed or exempted;

(e) The name and address of each candidate or political committee to which any transfer of funds was made, together with the amounts and dates of such transfers;

(f) The name and address of each person to whom an expenditure was made in the aggregate amount of more than fifty dollars during the period covered by this report, and the amount, date, and purpose of each such expenditure. A candidate for state ((~~executive or state legislative~~)) office ((~~or the political committee of such a candidate~~)) shall report this information for an expenditure under one of the following categories, whichever is appropriate: (i) Expenditures for the election of the candidate; (ii) expenditures for nonreimbursed public office-related expenses; (iii) expenditures required to be reported under (e) of this subsection; or (iv) expenditures of surplus funds and other expenditures. The report of such a candidate or committee shall contain a separate total of expenditures for each category and a total sum of all expenditures. Other candidates and political committees need not report information regarding expenditures under the categories listed in (i) through (iv) of this subsection or under similar such categories unless required to do so by the commission by rule. The report of such an other candidate or committee shall also contain the total sum of all expenditures;

(g) The name and address of each person to whom any expenditure was made directly or indirectly to compensate the person for soliciting or procuring signatures on an initiative or referendum petition, the amount of such compensation to each such person, and the total of the expenditures made for this purpose. Such expenditures shall be reported under this subsection (1)(g) whether the expenditures are or are not also required to be reported under (f) of this subsection;

(h) The name and address of any person and the amount owed for any debt, obligation, note, unpaid loan, or other liability in the amount of more than two hundred fifty dollars or in the amount of more than fifty dollars that has been outstanding for over thirty days;

(i) The surplus or deficit of contributions over expenditures;

(j) The disposition made in accordance with RCW 42.17.095 of any surplus funds;

(k) Such other information as shall be required by the commission by rule in conformance with the policies and purposes of this chapter; and

(l) Funds received from a political committee not otherwise required to report under this chapter (a "nonreporting committee"). Such funds shall be forfeited to the state of Washington unless the nonreporting committee has filed or within ten days following such receipt files with the commission a statement disclosing: (i) Its name and address; (ii) the purposes of the nonreporting committee; (iii) the names, addresses, and titles of its officers or if it has no officers, the names, addresses, and titles of its responsible leaders; (iv) the name, office sought, and party affiliation of each candidate in the state of Washington whom the nonreporting committee is supporting, and, if such committee is supporting the entire ticket of any party, the name of the party; (v) the ballot proposition supported or opposed in the state of Washington, if any, and whether such committee is in favor of or opposed to such proposition; (vi) the name and address of each person residing in the state of Washington or corporation which has a place of business in the state of Washington who has made one or more contributions in the aggregate of more than twenty-five dollars to the nonreporting committee during the current calendar year, together with the money value and date of such contributions; (vii) the name and address of each person in the state of Washington to whom an expenditure was made by the nonreporting committee on behalf of a candidate or political committee in the aggregate amount of more than fifty dollars, the amount, date, and purpose of such expenditure, and the total sum of such expenditures; (viii) such other information as the commission may prescribe by rule, in keeping with the policies and purposes of this chapter. A nonreporting committee incurring an obligation to file additional reports in a calendar year may satisfy the obligation by filing with the commission a letter providing updating or amending information.

(2) Both the treasurer and the candidate, or the chief officer or leader for a political committee, shall certify the correctness of each report.

NEW SECTION. Sec. 204. A new section is added to chapter 42.17 RCW to read as follows:

Every statement of organization, report, or other filing required by this chapter to be filed by a candidate or political committee must be filed with the commission and the appropriate county elections officer. The appropriate county elections officer for a candidate is the county auditor or other elections officer of the county in which the candidate resides. The appropriate county elections officer for a political committee is the county auditor or other elections officer of the county in which the committee maintains its office or headquarters, and if there is no office or headquarters, then in the county in which the treasurer resides.

Sec. 205. RCW 42.17.510 and 1995 c 397 s 19 are each amended to read as follows:

(1) All written political advertising, whether relating to candidates or ballot propositions, shall include the sponsor's name and address. All radio and television political advertising, whether relating to candidates or ballot propositions, shall include the sponsor's name. The use of an assumed name shall be unlawful. The party with which a candidate files shall be clearly identified in political advertising for partisan office.

(2) In addition ((~~to the materials required by subsection (1) of this section~~)), all political advertising relating to a candidate undertaken as an independent expenditure ((~~by a person or entity other than a party organization~~)) must include the following statement on the communication "NOTICE TO VOTERS (Required by law): This advertisement is an independent expenditure of funds not authorized or approved by any candidate. There are no limits on the amount of independent expenditures that may be made or on the amount of any contribution for an independent expenditure. It is paid for by (name, address, city, state)." If ((~~the~~)) an advertisement relating to a candidate undertaken as an independent expenditure is undertaken by a nonindividual ((~~other than a party organization~~)), then the notice must (a) disclose the general nature of the interests represented by the nonindividual, as determined by the commission under section 206 of this act, immediately after the name of the nonindividual; and (b) include the following notation ((~~must also be included~~)): "Top Five Contributors," followed by a listing of the name((s)) of each of the five ((~~persons~~)) individuals or entities making the largest contributions reportable under this chapter during the twelve-month period before the date of the advertisement. The nature of interests represented by each entity making such a contribution, as determined by the commission under section 206 of this act, must be disclosed immediately after the name of the entity.

(3) The statements and listings of contributors required by ((~~subsections (1) and (2) of~~)) this section shall:

(a) Appear on the first page or fold of the written communication in at least ten-point type, or in type at least ten percent of the largest size type used in a written communication directed at more than one voter, such as a billboard or poster, whichever is larger;

(b) Not be subject to the half-tone or screening process;

(d) Be clearly spoken on any broadcast advertisement.

(4) Political yard signs are exempt from the requirement of ((~~subsections (1) and (2) of~~)) this section that the name and address of the sponsor of political advertising be listed on the advertising. In addition, the ((~~public disclosure~~)) commission shall, by rule, exempt from the identification requirements of ((~~subsections (1) and (2) of~~)) this section forms of political advertising such as campaign buttons, balloons, pens, pencils, sky-writing, inscriptions, and other forms of advertising where identification is impractical.

((~~(5)~~)) For the purposes of this section, "yard sign" means any outdoor sign with dimensions no greater than eight feet by four feet.

NEW SECTION. Sec. 206. A new section is added to chapter 42.17 RCW to read as follows:

The commission shall assign a brief descriptive phrase indicating the general nature of interests represented by each nonindividual paying for advertisements relating to a candidate undertaken as independent expenditures. As provided under RCW 42.17.510, this phrase must be included immediately after the name of the nonindividual in each advertisement relating to a candidate that the nonindividual undertakes as an independent contribution.

The commission shall assign a brief descriptive phrase indicating the general nature of interests represented by each entity making a contribution to a nonindividual for advertisements relating to a candidate that are undertaken as independent expenditures. As provided under RCW 42.17.510, this phrase must be included immediately after the name of each entity listed as one of the top five contributors to the nonindividual making the advertisement.

Sec. 207. RCW 42.17.040 and 1989 c 280 s 2 are each amended to read as follows:

(1) Every political committee, within two weeks after its organization or, within two weeks after the date when it first has the expectation of receiving contributions or making expenditures in any election campaign, whichever is earlier, shall file a statement of organization with the commission and with the county auditor or elections officer of the county in which the candidate resides, or in the case of any other political committee, the county in which the treasurer resides. A political committee organized within the last three weeks before an election and having the expectation of receiving contributions or making expenditures during and for that election campaign shall file a statement of organization within three ((~~business~~)) days after its organization or when it first has the expectation of receiving contributions or making expenditures in the election campaign.

(2) The statement of organization shall include but not be limited to:

(a) The name and address of the committee;

(b) The names and addresses of all related or affiliated committees or other persons, and the nature of the relationship or affiliation;

(c) The names, addresses, and titles of its officers; or if it has no officers, the names, addresses, and titles of its responsible leaders;

(d) The name and address of its treasurer and depository;

(e) A statement whether the committee is a continuing one;

(f) The name, office sought, and party affiliation of each candidate whom the committee is supporting or opposing, and, if the committee is supporting the entire ticket of any party, the name of the party;

(g) The ballot proposition concerned, if any, and whether the committee is in favor of or opposed to such proposition;

(h) The general nature of the interest or interests represented by the political committee;

(i) What distribution of surplus funds will be made, in accordance with RCW 42.17.095, in the event of dissolution;

((~~(i)~~)) (j) The street address of the place and the hours during which the committee will make available for public inspection its books of account and all reports filed in accordance with RCW 42.17.080; and

((~~(j)~~)) (k) Such other information as the commission may ((~~by regulation~~)) prescribe by rule, in keeping with the policies and purposes of this chapter.

(3) Any material change in information previously submitted in a statement of organization shall be reported to the commission and to the appropriate county elections officer within the ten days following the change.

Sec. 208. RCW 42.17.105 and 1995 c 397 s 4 are each amended to read as follows:

(1) ((~~Campaign treasurers~~)) During the special reporting period for a candidate, a candidate shall prepare and deliver to the commission and the appropriate county elections officer, as specified under section 204 of this act, a special report regarding any contribution or an aggregate of contributions ((~~which:~~)) that is received from a single person if the contribution or aggregate of contributions exceeds five hundred dollars((~~; is from a single person or entity; and is received during a special reporting period~~)).

((~~Any~~)) During the special reporting period for a political committee, a political committee ((~~making~~)) shall prepare and deliver to the commission and the appropriate county elections officer, as specified under section 204 of this act, a special report regarding a contribution or an aggregate of contributions it makes to a single ((~~entity which~~)) candidate or political committee if the contribution or an aggregate of contributions exceeds five hundred dollars ((~~shall also prepare and deliver to the commission the special report if the contribution or aggregate of contributions is made during a special reporting period~~)). During the special reporting period for a political committee, a candidate or political committee that receives a contribution or an aggregate of contributions from a single person that exceeds five hundred dollars, shall prepare and deliver a special report on the contribution or contributions to the commission and the appropriate county elections officer, as specified under section 204 of this act.

For the purposes of subsections (1) through (7) of this section:

(a) Each of the following intervals is a special reporting period for a candidate or an authorized committee: (i) The interval beginning after the period covered by the last report required by RCW 42.17.080 and 42.17.090 to be filed before a primary and concluding on the end of the day before that primary; and (ii) the interval composed of the twenty-one days preceding a general election and concluding on the end of the day before that general election; ((~~and~~))

(b) Each of the following intervals is a special reporting period for any other political committee: (i) The interval composed of forty days before a primary and the end of the day before that primary; and (ii) the interval composed of forty days before a general election and the end of the day before that general election; and

(c) An aggregate of contributions includes only those contributions received from a single ((~~entity~~)) person during any one special reporting period or made by the contributing political committee to a single ((~~entity~~)) person during any one special reporting period.

(2) If a ((~~campaign treasurer~~)) candidate or political committee files a special report under this section for one or more contributions received from a single ((~~entity~~)) person during a special reporting period, the ((~~treasurer~~)) candidate or political committee shall also file a special report under this section for each subsequent contribution of any size ((~~which~~)) that is received from ((~~that entity~~)) the same person during the special reporting period. If a political committee files a special report under this section for a contribution or contributions made to a single ((~~entity~~)) candidate or political committee during a special reporting period, the political committee shall also file a special report for each subsequent contribution of any size ((~~which~~)) that is made to ((~~that entity~~)) the same candidate or political committee during the special reporting period.

(3) Except as provided in subsection (4) of this section, the special report required by this section shall be delivered to the commission electronically or in written form((~~, including but not limited to mailgram, telegram, or nightletter~~)). The special report required of a contribution recipient by subsection (1) of this section shall be delivered to the commission and the appropriate county elections officer within forty-eight hours of the time, or on the first working day after: The contribution exceeding five hundred dollars is received by the candidate or ((~~treasurer~~)) political committee; the aggregate received by the candidate or ((~~treasurer~~)) political committee first exceeds five hundred dollars; or the subsequent contribution that must be reported under subsection (2) of this section is received by the candidate or ((~~treasurer~~)) political committee. The special report required of a contributor by subsection (1) of this section or RCW 42.17.175 shall be delivered to the commission, the appropriate county elections officer, and the candidate or political committee to whom the contribution or contributions ((~~are~~)) were made, within twenty-four hours of the time, or on the first working day after: The contribution is made; the aggregate of contributions made first exceeds five hundred dollars; or the subsequent contribution that must be reported under subsection (2) of this section is made.

(4) The special report may be transmitted orally by telephone to the commission to satisfy the delivery period required by subsection (3) of this section if the written form of the report is also mailed to the commission and postmarked within the delivery period established in subsection (3) of this section or the file transfer date of the electronic filing is within the delivery period established in subsection (3) of this section.

(5) The special report shall include at least:

(a) The amount of the contribution or contributions;

(b) The date or dates of receipt;

(d) The name and address of the recipient; ((~~and~~))

(e) The nature of the political committee, as determined under section 206 of this act; and

(f) Any other information the commission may by rule require.

(6) Contributions reported under this section shall also be reported as required by other provisions of this chapter.

(7) The commission shall prepare daily a summary of the special reports made under this section and RCW 42.17.175.

(8) It is a violation of this chapter for any person to make, or for any candidate ((~~or political committee~~)) to accept from any one person, contributions reportable under RCW 42.17.090 in the aggregate exceeding fifty thousand dollars for any ((~~campaign~~)) candidate for state-wide office or exceeding five thousand dollars for any other campaign subject to the provisions of this chapter within twenty-one days of ((~~a general~~)) an election. ((This subsection does not apply to contributions made by, or accepted from, a bona fide political party as defined in this chapter, excluding the county central committee or legislative district committee.))

(9) It is a violation of this chapter for a person to make, or for any political committee that undertakes political advertising relating to a candidate undertaken as an independent expenditure to accept from any one person, contributions reportable under RCW 42.17.090 in the aggregate exceeding twenty-five thousand dollars for a state-wide office or exceeding two thousand five hundred dollars for any other campaign subject to this chapter within forty days of an election.

(10) Contributions governed by this section include, but are not limited to, contributions made or received indirectly through a third party or entity whether the contributions are or are not reported to the commission as earmarked contributions under RCW 42.17.135.

Sec. 209. RCW 42.17.175 and 1991 c 157 s 2 are each amended to read as follows:

(1) Any lobbyist registered under RCW 42.17.150, any person who lobbies, and any lobbyist's employer making a contribution or an aggregate of contributions to a single ((~~entity~~)) candidate, political committee, or bona fide political party that exceeds five hundred dollars during a special reporting period before a primary or general election, as such period is specified in RCW 42.17.105(1), shall file one or more special reports for the contribution or aggregate of contributions and for subsequent contributions made during that period under the same circumstances and to the same extent that a contributing political committee must file such a report or reports under RCW 42.17.105.

A person, other than a political committee, who makes a contribution or aggregate of contributions to a single candidate, political committee, or bona fide political party that exceeds five thousand dollars during a special reporting period before a general election, as that period is specified in RCW 42.17.105(1), shall file one or more special reports for the contribution or aggregate of contributions and for subsequent contributions made during that period under the same circumstances and to the same extent that a contributing political committee must file such a report or reports under RCW 42.17.105.

(2) Such a special report shall be filed in the same manner provided under RCW 42.17.105 for a special report of a contributing political committee.

NEW SECTION. Sec. 210. A new section is added to chapter 42.17 RCW to read as follows:

A copy of all political advertising relating to candidates that is undertaken as an independent expenditure, and the amount that has been spent to date and is proposed to be spent on this independent expenditure, must be delivered to the commission at least five days before the advertising is distributed or aired.

NEW SECTION. Sec. 211. A new section is added to chapter 42.17 RCW to read as follows:

A county, city, or town may establish a program where a candidate for a local elected office voluntarily agrees to abide by limitations on the amount of money the candidate, or the candidate's authorized committee, spends to campaign for the office in return for receiving public matching funds from the county, city, or town that are used to assist in funding his or her campaign.

PART III--CONTRIBUTIONS

Sec. 301. RCW 42.17.680 and 1993 c 2 s 8 are each amended to read as follows:

(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 a candidate, ((~~state~~)) elected official against whom recall charges have been filed, political party, or political committee.

(2) No employer or labor organization may discriminate for or against an officer or employee in the terms or conditions of employment for (a) ((~~the failure~~)) contributing or failing to contribute to, (b) ((~~the failure~~)) in any way failing to support or oppose, or (c) in any way supporting or opposing, a candidate, elected official against whom recall charges have been filed, 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 a portion of an employee's wages or salaries for contributions to a candidate, elected official against whom recall charges have been filed, ballot proposition, political party, or political ((~~committees or for use as political contributions~~)) committee, 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 is valid for no more than twelve months from the date it is made by the employee.

(4) Each employer or other 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 candidate, political party, or political committee. Copies of such information shall be delivered to the commission upon request.

(5) A for-profit corporation may not make contributions, directly or indirectly, to a candidate, political party, or political committee, except through a separate fund made up of money solicited expressly for political purposes.

PART IV--MISCELLANEOUS

NEW SECTION. Sec. 401. RCW 42.17.128 and 1993 c 2 s 24 are each repealed.

NEW SECTION. Sec. 402. 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.