Z-1272.1  _______________________________________________

 

                          HOUSE BILL 2495

          _______________________________________________

 

State of Washington      55th Legislature     1998 Regular Session

 

By Representatives Pennington, Appelwick, O'Brien, Poulsen, Dickerson, Constantine, Ogden, Cooper, Kessler, Gardner, Butler, Linville, Murray, Conway, Anderson and Gombosky; by request of Public Disclosure Commission

 

Read first time 01/14/98.  Referred to Committee on Government Administration.

Adjusting penalties for violations of public disclosure laws.


    AN ACT Relating to penalties for violations of public disclosure laws; amending RCW 42.17.390, 42.17.395, and 42.17.400; and prescribing penalties.

 

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

 

    Sec. 1.  RCW 42.17.390 and 1993 c 2 s 28 are each amended to read as follows:

    One or more of the following civil remedies and sanctions may be imposed by court order in addition to any other remedies provided by law:

    (1) If the court finds that the violation of any provision of this chapter by any candidate or political committee probably affected the outcome of any election, the result of said election may be held void and a special election held within sixty days of such finding.  Any action to void an election shall be commenced within one year of the date of the election in question.  It is intended that this remedy be imposed freely in all appropriate cases to protect the right of the electorate to an informed and knowledgeable vote.

    (2) If any lobbyist or sponsor of any grass roots lobbying campaign violates any of the provisions of this chapter, his registration may be revoked or suspended and he may be enjoined from receiving compensation or making expenditures for lobbying:  PROVIDED, HOWEVER, That imposition of such sanction shall not excuse said lobbyist from filing statements and reports required by this chapter.

    (3) Any person who violates any of the provisions of this chapter may be subject to a civil penalty of not more than ((ten)) forty thousand dollars for each such violation.  However, a person or entity who violates RCW 42.17.640 may be ordered to return a contribution illegally accepted and may be subject to a civil penalty of ((ten)) forty thousand dollars or three times the amount of the contribution illegally made or accepted, whichever is greater.

    (4) Any person who fails to file a properly completed statement or report within the time required by this chapter may be subject to a civil penalty of ten dollars per day for each day each such delinquency continues.

    (5) Any person who fails to report a contribution or expenditure may be subject to a civil penalty equivalent to the amount he failed to report.

    (6) If a candidate or an officer of a candidate's authorized committee or of a political committee is found to have intentionally violated this chapter, he or she may be ordered to pay any civil penalty that is imposed from personal funds. 

    (7) The court may enjoin any person to prevent the doing of any act herein prohibited, or to compel the performance of any act required herein.

 

    Sec. 2.  RCW 42.17.395 and 1989 c 175 s 91 are each amended to read as follows:

    (1) The commission may (a) determine whether an actual violation of this chapter has occurred; and (b) issue and enforce an appropriate order following such determination.

    (2) The commission, in cases where it chooses to determine whether an actual violation of this chapter has occurred, shall hold a hearing pursuant to the Administrative Procedure Act, chapter 34.05 RCW, to make such determination.  Any order that the commission issues under this section shall be pursuant to such hearing.

    (3) In lieu of holding a hearing or issuing an order under this section, the commission may refer the matter to the attorney general or other enforcement agency as provided in RCW 42.17.360.

    (4) The person against whom an order is directed under this section shall be designated as the respondent.  The order may require the respondent to cease and desist from the activity that constitutes a violation and in addition, or alternatively, may impose one or more of the remedies provided in RCW 42.17.390(((1) (b), (c), (d), or (e):  PROVIDED, That)) (2), (3), (4), (5), or (6).  However, no individual penalty assessed by the commission may exceed ((one)) four thousand dollars, and in any case where multiple violations are involved in a single complaint or hearing, the maximum aggregate penalty may not exceed ((two)) ten thousand ((five hundred)) dollars.

    (5) An order issued by the commission under this section shall be subject to judicial review under the Administrative Procedure Act, chapter 34.05 RCW.  If the commission's order is not satisfied and no petition for review is filed within thirty days as provided in RCW 34.05.542, the commission may petition a court of competent jurisdiction of any county in which a petition for review could be filed under that section, for an order of enforcement.  Proceedings in connection with the commission's petition shall be in accordance with RCW 42.17.397.

    (6) A candidate who has not complied with an order issued under RCW 42.17.390 or this section, and the remedies imposed thereunder, shall not solicit or accept contributions or make expenditures until the candidate has complied with the order and the remedies so imposed.

    (7)(a) A political committee that has not complied with an order issued under RCW 42.17.390 or this section, and the remedies imposed thereunder, shall not solicit or accept contributions or make expenditures until it has complied with the order and the remedies so imposed.  This restriction applies to the political committee against whom the order and remedies were issued as well as a political committee that has a majority of the same officers as the committee that is subject to the order.

    (b) If an officer of a political committee has not complied with an order issued under RCW 42.17.390 or this section, and the remedies imposed thereunder, then the political committee shall not solicit or accept contributions or make expenditures until the officer has complied with the order and the remedies so imposed.  This restriction applies to the committee of which the individual subject to the order was an officer at the time of the violation as well as any other political committee of which the individual is an officer.

    (8) A person who has not complied with an order issued under RCW 42.17.390 or this section, and the remedies imposed thereunder, shall not register as a lobbyist, receive compensation as a lobbyist, or make expenditures for lobbying expenses until the person has complied with the order and the remedies so imposed.  If the person is presently registered as a lobbyist or a lobbyist employer, the commission may suspend or revoke the person's registration.

    (9) A sponsor of a grass roots lobbying campaign that has not complied with an order issued under RCW 42.17.390 or this section, and the remedies imposed thereunder, may not receive contributions or make expenditures for grass roots lobbying purposes until the sponsor has complied with the order and the remedies so imposed.

 

    Sec. 3.  RCW 42.17.400 and 1975 1st ex.s. c 294 s 27 are each amended to read as follows:

    (1) The attorney general and the prosecuting authorities of political subdivisions of this state may bring civil actions in the name of the state for any appropriate civil remedy, including but not limited to the special remedies provided in RCW 42.17.390.

    (2) The attorney general and the prosecuting authorities of political subdivisions of this state may investigate or cause to be investigated the activities of any person who there is reason to believe is or has been acting in violation of this chapter, and may require any such person or any other person reasonably believed to have information concerning the activities of such person to appear at a time and place designated in the county in which such person resides or is found, to give such information under oath and to produce all accounts, bills, receipts, books, papers, and documents ((which)) that may be relevant or material to any investigation authorized under this chapter.

    (3) When the attorney general or the prosecuting authority of any political subdivision of this state requires the attendance of any person to obtain such information or the production of the accounts, bills, receipts, books, papers, and documents ((which)) that may be relevant or material to any investigation authorized under this chapter, he shall issue an order setting forth the time when and the place where attendance is required and shall cause the ((same)) order to be delivered to or sent by ((registered)) certified mail to the person at least fourteen days before the date fixed for attendance.  ((Such)) The order ((shall have)) has the same force and effect as a subpoena, ((shall be)) is effective state-wide, and, upon application of the attorney general or ((said)) the prosecuting authority, obedience to the order may be enforced by any superior court judge in the county where the person receiving it resides or is found, in the same manner as though the order were a subpoena.  The court, after hearing, for good cause, and upon application of any person aggrieved by the order, ((shall have the right to)) may alter, amend, revise, suspend, or postpone all or any part of its provisions.  In any case where the order is not enforced by the court according to its terms, the reasons for the court's actions ((shall)) must be clearly stated in writing, and ((such)) the action ((shall be)) is subject to review by the appellate courts by certiorari or other appropriate proceeding.

    (4) Any person who has notified the commission, the attorney general, and the prosecuting attorney in the county in which the violation occurred in writing that there is reason to believe that some provision of this chapter is being or has been violated may himself bring in the name of the state any of the actions (hereinafter referred to as a citizen's action) authorized under this chapter.  This citizen action may be brought only if the commission has failed to bring the matter to a hearing under RCW 42.17.395 or if the attorney general and the prosecuting attorney have failed to commence ((an)) a court action ((hereunder)) under this section within ((forty-five)) one hundred twenty days after ((such)) the notice and ((such)) the person has thereafter further notified the commission, the attorney general, and the prosecuting attorney that ((said)) that person will commence a citizen's action within ten days upon their failure so to do, and the commission, the attorney general, and the prosecuting attorney have in fact failed to bring such action within ten days of receipt of ((said)) the second notice.  If the person who brings the citizen's action prevails, the judgment awarded ((shall)) escheats to the state, but ((he shall be)) the person who brought the action is entitled to be reimbursed by the ((state of Washington)) defendant for costs and attorney's fees he has incurred((:  PROVIDED, That)).  However, in the case of a citizen's action ((which)) that is dismissed and ((which)) that the court also finds was brought without reasonable cause, the court may order the person commencing the action to pay all costs of trial and reasonable attorney's fees incurred by the defendant.

    (5) In any action brought under this section, the court may award to the state all costs of investigation and trial, including a reasonable attorney's fee to be fixed by the court.  If the violation is found to have been intentional, the amount of the judgment, which shall for this purpose include the costs, may be trebled as punitive damages.  If damages or trebled damages are awarded in such an action brought against a lobbyist, the judgment may be awarded against the lobbyist, and the lobbyist's employer or employers joined as defendants, jointly, severally, or both.  If the defendant prevails, he shall be awarded all costs of trial, and may be awarded a reasonable attorney's fee to be fixed by the court to be paid by the state of Washington.

 


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