H-4542.1  _______________________________________________

                          HOUSE BILL 3014

          _______________________________________________

State of Washington      55th Legislature     1998 Regular Session

By Representatives Chopp and Appelwick

Read first time 01/27/98.  Referred to Committee on Government Administration.

Reforming campaign financing.

    AN ACT Relating to campaign finance reform; amending RCW 42.17.020, 42.17.040, 42.17.100, 42.17.510, 42.17.680, 42.17.390, 42.17.395, 42.17.128, and 41.04.230; adding new sections to chapter 42.17 RCW; and prescribing penalties.

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

    Sec. 1.  RCW 42.17.020 and 1995 c 397 s 1 are each amended to read as follows:

    (1) "Agency" includes all state agencies and all local agencies.  "State agency" includes every state office, department, division, bureau, board, commission, or other state agency.  "Local agency" includes every county, city, town, municipal corporation, quasi-municipal corporation, or special purpose district, or any office, department, division, bureau, board, commission, or agency thereof, or other local public agency.

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

    (3) "Ballot proposition" means any "measure" as defined by RCW 29.01.110, or any initiative, recall, or referendum proposition proposed to be submitted to the voters of the state or any municipal corporation, political subdivision, or other voting constituency from and after the time when the proposition has been initially filed with the appropriate election officer of that constituency prior to its circulation for signatures.

    (4) "Benefit" means a commercial, proprietary, financial, economic, or monetary advantage, or the avoidance of a commercial, proprietary, financial, economic, or monetary disadvantage.

    (5) "Bona fide political party" means:

    (a) An organization that has filed a valid certificate of nomination with the secretary of state under chapter 29.24 RCW;

    (b) The governing body of the state organization of a major political party, as defined in RCW 29.01.090, that is the body authorized by the charter or bylaws of the party to exercise authority on behalf of the state party; or

    (c) The county central committee or legislative district committee of a major political party.  There may be only one legislative district committee for each party in each legislative district.

    (6) "Depository" means a bank designated by a candidate or political committee pursuant to RCW 42.17.050.

    (7) "Treasurer" and "deputy treasurer" mean the individuals appointed by a candidate or political committee, pursuant to RCW 42.17.050, to perform the duties specified in that section.

    (8) "Candidate" means any individual who seeks nomination for election or election to public office.  An individual seeks nomination or election when he or she first:

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

    (b) Announces publicly or files for office;

    (c) Purchases commercial advertising space or broadcast time to promote his or her candidacy; or

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

    (9) "Caucus political committee" means a political committee organized and maintained by the members of a major political party in the state senate or state house of representatives.

    (10) "Commercial advertiser" means any person who sells the service of communicating messages or producing printed material for broadcast or distribution to the general public or segments of the general public whether through the use of newspapers, magazines, television and radio stations, billboard companies, direct mail advertising companies, printing companies, or otherwise.

    (11) "Commission" means the agency established under RCW 42.17.350.

    (12) "Compensation" unless the context requires a narrower meaning, includes payment in any form for real or personal property or services of any kind:  PROVIDED, That for the purpose of compliance with RCW 42.17.241, the term "compensation" shall not include per diem allowances or other payments made by a governmental entity to reimburse a public official for expenses incurred while the official is engaged in the official business of the governmental entity.

    (13) "Continuing political committee" means a political committee that is an organization of continuing existence not established in anticipation of any particular election campaign.

    (14)(a) "Contribution" includes:

    (i) A loan, gift, deposit, subscription, forgiveness of indebtedness, donation, advance, pledge, payment, transfer of funds between political committees, or anything of value, including personal and professional services for less than full consideration;

    (ii) An expenditure made by a person in cooperation, consultation, or concert with, or at the request or suggestion of, a candidate, a political committee, or their agents;

    (iii) The financing by a person of the dissemination, distribution, or republication, in whole or in part, of broadcast, written, graphic, or other form of political advertising prepared by a candidate, a political committee, or its authorized agent;

    (iv) Sums paid for tickets to fund-raising events such as dinners and parties, except for the actual cost of the consumables furnished at the event.

    (b) "Contribution" does not include:

    (i) Standard interest on money deposited in a political committee's account;

    (ii) Ordinary home hospitality;

    (iii) A contribution received by a candidate or political committee that is returned to the contributor within five business days of the date on which it is received by the candidate or political committee;

    (iv) A news item, feature, commentary, or editorial in a regularly scheduled news medium that is of primary interest to the general public, that is in a news medium controlled by a person whose business is that news medium, and that is not controlled by a candidate or a political committee;

    (v) An internal political communication primarily limited to the members of or contributors to a political party organization or political committee, or to the officers, management staff, or stockholders of a corporation or similar enterprise, or to the members of a labor organization or other membership organization;

    (vi) The rendering of personal services of the sort commonly performed by volunteer campaign workers, or incidental expenses personally incurred by volunteer campaign workers not in excess of fifty dollars personally paid for by the worker.  "Volunteer services," for the purposes of this section, means services or labor for which the individual is not compensated by any person;

    (vii) Messages in the form of reader boards, banners, or yard or window signs displayed on a person's own property or property occupied by a person.  However, a facility used for such political advertising for which a rental charge is normally made must be reported as an in-kind contribution and counts towards any applicable contribution limit of the person providing the facility;

    (viii) Legal or accounting services rendered to or on behalf of:

    (A) A political party or caucus political committee if the person paying for the services is the regular employer of the person rendering such services; or

    (B) A candidate or an authorized committee if the person paying for the services is the regular employer of the individual rendering the services and if the services are solely for the purpose of ensuring compliance with state election or public disclosure laws.

    (c) Contributions other than money or its equivalent are deemed to have a monetary value equivalent to the fair market value of the contribution.  Services or property or rights furnished at less than their fair market value for the purpose of assisting any candidate or political committee are deemed a contribution.  Such a contribution must be reported as an in-kind contribution at its fair market value and counts towards any applicable contribution limit of the provider.

    (15) "Elected official" means any person elected at a general or special election to any public office, and any person appointed to fill a vacancy in any such office.

    (16) "Election" includes any primary, general, or special election for public office and any election in which a ballot proposition is submitted to the voters:  PROVIDED, That an election in which the qualifications for voting include other than those requirements set forth in Article VI, section 1 (Amendment 63) of the Constitution of the state of Washington shall not be considered an election for purposes of this chapter.

    (17) "Election campaign" means any campaign in support of or in opposition to a candidate for election to public office and any campaign in support of, or in opposition to, a ballot proposition.

    (18) "Election cycle" means the period beginning on the first day of December after the date of the last previous general election for the office that the candidate seeks and ending on November 30th after 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 30th after the special election.

    (19) "Expenditure" includes a payment, contribution, subscription, distribution, loan, advance, deposit, or gift of money or anything of value, and includes a contract, promise, or agreement, whether or not legally enforceable, to make an expenditure.  The term "expenditure" also includes a promise to pay, a payment, or a transfer of anything of value in exchange for goods, services, property, facilities, or anything of value for the purpose of assisting, benefiting, or honoring any public official or candidate, or assisting in furthering or opposing any election campaign.  For the purposes of this chapter, agreements to make expenditures, contracts, and promises to pay may be reported as estimated obligations until actual payment is made.  The term "expenditure" shall not include the partial or complete repayment by a candidate or political committee of the principal of a loan, the receipt of which loan has been properly reported.

    (20) "Final report" means the report described as a final report in RCW 42.17.080(2).

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

    (22) "Gift," is as defined in RCW 42.52.010.

    (23) "Immediate family" includes the spouse, dependent children, and other dependent relatives, if living in the household.  For the purposes of RCW 42.17.640 through 42.17.790, "immediate family" means an individual's spouse, and child, stepchild, grandchild, parent, stepparent, grandparent, brother, half brother, sister, or half sister of the individual and the spouse of any such person and a child, stepchild, grandchild, parent, stepparent, grandparent, brother, half brother, sister, or half sister of the individual's spouse and the spouse of any such person.

    (24) "Independent expenditure" means an expenditure that 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 that 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 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 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 political advertising that either specifically names the candidate supported or opposed, or clearly and beyond any doubt identifies the 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 series of expenditures, each of which is under five hundred dollars, constitutes one independent expenditure if their cumulative value is five hundred dollars or more.

    (25) "Independent expenditure committee" means a political committee established for the purpose of making independent expenditures.

(26)(a) "Intermediary" means an individual who transmits a contribution to a candidate or committee from another person unless the contribution is from the individual's employer, immediate family as defined for purposes of RCW 42.17.640 through 42.17.790, or an association to which the individual belongs.

    (b) A treasurer or a candidate is not an intermediary for purposes of the committee that the treasurer or candidate serves.

    (c) A professional fund-raiser is not an intermediary if the fund-raiser is compensated for fund-raising services at the usual and customary rate.

    (d) A volunteer hosting a fund-raising event at the individual's home is not an intermediary for purposes of that event.

    (((26))) (27) "Legislation" means bills, resolutions, motions, amendments, nominations, and other matters pending or proposed in either house of the state legislature, and includes any other matter that may be the subject of action by either house or any committee of the legislature and all bills and resolutions that, having passed both houses, are pending approval by the governor.

    (((27))) (28) "Lobby" and "lobbying" each mean attempting to influence the passage or defeat of any legislation by the legislature of the state of Washington, or the adoption or rejection of any rule, standard, rate, or other legislative enactment of any state agency under the state Administrative Procedure Act, chapter 34.05 RCW.  Neither "lobby" nor "lobbying" includes an association's or other organization's act of communicating with the members of that association or organization.

    (((28))) (29) "Lobbyist" includes any person who lobbies either in his or her own or another's behalf.

    (((29))) (30) "Lobbyist's employer" means the person or persons by whom a lobbyist is employed and all persons by whom he or she is compensated for acting as a lobbyist.

    (((30))) (31) "Person" includes an individual, partnership, joint venture, public or private corporation, association, federal, state, or local governmental entity or agency however constituted, candidate, committee, political committee, political party, executive committee thereof, or any other organization or group of persons, however organized.

    (((31))) (32) "Person in interest" means the person who is the subject of a record or any representative designated by that person, except that if that person is under a legal disability, the term "person in interest" means and includes the parent or duly appointed legal representative.

    (((32))) (33) "Political advertising" includes any advertising displays, newspaper ads, billboards, signs, brochures, articles, tabloids, flyers, letters, radio or television presentations, telephone or electronic communication, or ((other)) any means of mass communication, used for the purpose of appealing, directly or indirectly, for votes or for financial or other support in any election campaign.

    (((33))) (34) "Political committee" means any person (except a candidate or an individual dealing with his or her own funds or property) having the expectation of receiving contributions or making expenditures in support of, or opposition to, any candidate or any ballot proposition.

    (((34))) (35) "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 that uses, in large measure, the procedures established in chapter 29.18 or 29.21 RCW.

    (((35))) (36) "Public office" means any federal, state, county, city, town, school district, port district, special district, or other state political subdivision elective office.

    (((36))) (37) "Public record" includes any writing containing information relating to the conduct of government or the performance of any governmental or proprietary function prepared, owned, used, or retained by any state or local agency regardless of physical form or characteristics.  For the office of the secretary of the senate and the office of the chief clerk of the house of representatives, public records means legislative records as defined in RCW 40.14.100 and also means the following:  All budget and financial records; personnel leave, travel, and payroll records; records of legislative sessions; reports submitted to the legislature; and any other record designated a public record by any official action of the senate or the house of representatives.

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

    (((38))) (39) "State legislative office" means the office of a member of the state house of representatives or the office of a member of the state senate.

    (((39))) (40) "State office" means state legislative office or the office of governor, lieutenant governor, secretary of state, attorney general, commissioner of public lands, insurance commissioner, superintendent of public instruction, state auditor, or state treasurer.

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

    (((41))) (42) "Surplus funds" mean, in the case of a political committee or candidate, the balance of contributions that remain in the possession or control of that committee or candidate subsequent to the election for which the contributions were received, and that are in excess of the amount necessary to pay remaining debts incurred by the committee or candidate prior to that election.  In the case of a continuing political committee, "surplus funds" mean those contributions remaining in the possession or control of the committee that are in excess of the amount necessary to pay all remaining debts when it makes its final report under RCW 42.17.065.

    (((42))) (43) "Writing" means handwriting, typewriting, printing, photostating, photographing, and every other means of recording any form of communication or representation, including, but not limited to, letters, words, pictures, sounds, or symbols, or combination thereof, and all papers, maps, magnetic or paper tapes, photographic films and prints, motion picture, film and video recordings, magnetic or punched cards, discs, drums, diskettes, sound recordings, and other documents including existing data compilations from which information may be obtained or translated.

    As used in this chapter, the singular shall take the plural and any gender, the other, as the context requires.

    Sec. 2.  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.  An independent expenditure committee must file a statement of organization with the commission and with the appropriate county elections officer, as specified under section 3 of this act, at least thirty days before the election regarding which it expects to receive contributions or make expenditures.  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 a noncandidate 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.

NEW SECTION. Sec. 3.  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 an independent expenditure committee must be filed with the commission and the appropriate county elections officer.  The appropriate county elections officer for an independent expenditure committee is the county auditor or other elections officer of the county in which any candidate supported or opposed resides.

    Sec. 4.  RCW 42.17.100 and 1995 c 397 s 28 are each amended to read as follows:

    (1) For the purposes of this section and RCW 42.17.550 the term "independent expenditure" means any expenditure that is made in support of or in opposition to any candidate or ballot proposition and is not otherwise required to be reported pursuant to RCW 42.17.060, 42.17.080, or 42.17.090.  "Independent expenditure" does not include:  An internal political communication primarily limited to the contributors to a political party organization or political action committee, or the officers, management staff, and stockholders of a corporation or similar enterprise, or the members of a labor organization or other membership organization; or the rendering of personal services of the sort commonly performed by volunteer campaign workers, or incidental expenses personally incurred by volunteer campaign workers not in excess of fifty dollars personally paid for by the worker.  "Volunteer services," for the purposes of this section, means services or labor for which the individual is not compensated by any person.

    (2) Within five days after the date of making an independent expenditure that by itself or when added to all other such independent expenditures made during the same election campaign by the same person equals one hundred dollars or more, ((or within five days after the date of making an independent expenditure for which no reasonable estimate of monetary value is practicable, whichever occurs first,)) the person who made the independent expenditure shall file with the commission and the county elections officer of the county of residence for the candidate supported or opposed by the independent expenditure (or in the case of an expenditure made in support of or in opposition to a local ballot proposition, the county of residence for the person making the expenditure) an initial report of all independent expenditures made during the campaign prior to and including such date.

    (3) At the following intervals each person who is required to file an initial report pursuant to subsection (2) of this section shall file with the commission and the county elections officer of the county of residence for the candidate supported or opposed by the independent expenditure (or in the case of an expenditure made in support of or in opposition to a ballot proposition, the county of residence for the person making the expenditure) a further report of the independent expenditures made since the date of the last report:

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

    (b) On the tenth day of the first month after the election; and

    (c) On the tenth day of each month in which no other reports are required to be filed pursuant to this section.  However, the further reports required by this subsection (3) shall only be filed if the reporting person has made an independent expenditure since the date of the last previous report filed.

    The report filed pursuant to paragraph (a) of this subsection (3) shall be the final report, and upon submitting such final report the duties of the reporting person shall cease, and there shall be no obligation to make any further reports.

    (4) All reports filed pursuant to this section shall be certified as correct by the reporting person.

    (5) Each report required by subsections (2) and (3) of this section shall disclose for the period beginning at the end of the period for the last previous report filed or, in the case of an initial report, beginning at the time of the first independent expenditure, and ending not more than one business day before the date the report is due:

    (a) The name and address of the person filing the report;

    (b) The name and address of each person to whom an independent expenditure was made in the aggregate amount of more than fifty dollars, and the amount, date, and purpose of each such expenditure((.  If no reasonable estimate of the monetary value of a particular independent expenditure is practicable, it is sufficient to report instead)), including a precise description of services, property, or rights furnished through the expenditure ((and where appropriate to attach a copy of the item produced or distributed by the expenditure));

    (c) The total sum of all independent expenditures made during the campaign to date; and

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

(6) No person may make independent expenditures in support of or in opposition to a specific candidate that in the aggregate exceed five thousand dollars within twenty-one days before an election.

(7) An independent expenditure committee must file a copy of any political advertising it proposes to place or distribute with the commission and the appropriate county elections officer, as specified under section 3 of this act, at least five business days before distribution.

    Sec. 5.  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.  All telephone and electronic communications, whether relating to candidates or ballot measures, undertaken by or at the instigation of a political committee, must 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, committee president's name, employer, daytime address and telephone number, treasurer's name, employer, daytime address and telephone number)."  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 independent expenditure committee, as determined by the commission under section 6 of this act, immediately after the name of the committee; 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 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 person other than an individual making such a contribution, as determined by the commission under section 6 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;

    (c) Be set apart from any other printed matter; and

    (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. 6.  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 noncandidate political committee paying for advertisements.  This phrase must be included immediately after the name of the committee in each advertisement undertaken by that committee and candidate reports for contributions received from noncandidate political committees.

    The commission shall assign a brief descriptive phrase indicating the general nature of interests represented by each independent expenditure committee.  As provided under RCW 42.17.510, this phrase must be included immediately after the name of the committee in each advertisement relating to a candidate that the committee 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 an independent expenditure committee.  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 committee making the advertisement.

    Sec. 7.  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, 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)) 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 political committees or for use as political contributions 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.))

An employee may authorize the withholding or diversion of a portion of the employee's wages or salary for the purpose of making contributions to a political committee or for use as a political contribution.  The authorization must be in writing on a form prescribed by the commission and directed to the employer, person, or entity responsible for the disbursement of funds in payment of wages or salaries.  The form must contain a notice informing the employee of the prohibition against discrimination under subsection (2) of this section.  An authorization under this section is valid for a period of two years from the date it is made.

    (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 political committee.  Copies of such information shall be delivered to the commission upon request.

(5)(a) A for-profit corporation formed under the laws of this or another state may make a contribution or independent expenditure in support of or opposition to a candidate for state office or state ballot proposition only as authorized in (b) or (c) of this subsection.

(b) A corporation may spend corporate funds for the purposes set forth in (a) of this subsection with the approval of the majority of the corporation's stockholders.  Stockholder approval under this section is valid for a period of twelve months from the date it is given by the stockholders.  Documentation of stockholder approval must be filed with the commission.

(c) A corporation may spend corporate funds to establish and administer a political committee affiliated with the corporation for the purposes set forth in (a) of this subsection, and for the solicitation of contributions to the committee.  Contributions and independent expenditures by the political committee may be made only from contributions solicited from the following persons or their spouses:  (i) Stockholders of the corporation; (ii) officers and directors of the corporation; or (iii) employees of the corporation.

    Sec. 8.  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. 9.  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.

NEW SECTION. Sec. 10.  A new section is added to chapter 42.17 RCW to read as follows:

    (1) A county with a population of five hundred thousand or more, and a city with a population of one hundred thousand or more, may establish a program where a candidate for a county or city 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 or city that are used to assist in funding his or her campaign.

    (2) A program of public campaign financing under subsection (1) of this section may only be established if voters approve a ballot proposition authorizing the program.  The ballot measure may be placed on the ballot by resolution of the county or city governing body or by initiative action of the voters, if the county or city voters possess the powers of initiative on county or city matters.

    Sec. 11.  RCW 42.17.128 and 1993 c 2 s 24 are each amended to read as follows:

    Public funds, whether derived through taxes, fees, penalties, or any other sources, shall not be used to finance political campaigns for state or local office, unless a program of public campaign financing is approved by voters under section 10 of this act.

    Sec. 12.  RCW 41.04.230 and 1995 1st sp.s. c 6 s 21 are each amended to read as follows:

    Any official of the state authorized to disburse funds in payment of salaries and wages of public officers or employees is authorized, upon written request of the officer or employee, to deduct from the salaries or wages of the officers or employees, the amount or amounts of subscription payments, premiums, contributions, or continuation thereof, for payment of the following:

    (1) Credit union deductions:  PROVIDED, That twenty-five or more employees of a single state agency or a total of one hundred or more state employees of several agencies have authorized such a deduction for payment to the same credit union.  An agency may, in its own discretion, establish a minimum participation requirement of fewer than twenty-five employees.

    (2) Parking fee deductions:  PROVIDED, That payment is made for parking facilities furnished by the agency or by the department of general administration.

    (3) U.S. savings bond deductions:  PROVIDED, That a person within the particular agency shall be appointed to act as trustee.  The trustee will receive all contributions; purchase and deliver all bond certificates; and keep such records and furnish such bond or security as will render full accountability for all bond contributions.

    (4) Board, lodging or uniform deductions when such board, lodging and uniforms are furnished by the state, or deductions for academic tuitions or fees or scholarship contributions payable to the employing institution.

    (5) Dues and other fees deductions:  PROVIDED, That the deduction is for payment of membership dues to any professional organization formed primarily for public employees or college and university professors:  AND PROVIDED, FURTHER, That twenty-five or more employees of a single state agency, or a total of one hundred or more state employees of several agencies have authorized such a deduction for payment to the same professional organization.

    (6) Labor or employee organization dues may be deducted in the event that a payroll deduction is not provided under a collective bargaining agreement under the provisions of RCW 41.06.150:  PROVIDED, That twenty-five or more officers or employees of a single agency, or a total of one hundred or more officers or employees of several agencies have authorized such a deduction for payment to the same labor or employee organization:  PROVIDED, FURTHER, That labor or employee organizations with five hundred or more members in state government may have payroll deduction for employee benefit programs.

    (7) Insurance contributions to the authority for payment of premiums under contracts authorized by the state health care authority.  However, enrollment or assignment by the state health care authority to participate in a health care benefit plan, as required by RCW 41.05.065(5), shall authorize a payroll deduction of premium contributions without a written consent under the terms and conditions established by the public employees' benefits board.

    (8) Deductions to a bank, savings bank, or savings and loan association if (a) the bank, savings bank, or savings and loan association is authorized to do business in this state; and (b) twenty-five or more employees of a single agency, or fewer, if a lesser number is established by such agency, or a total of one hundred or more state employees of several agencies have authorized a deduction for payment to the same bank, savings bank, or savings and loan association.

(9) Political participation deductions:  Deductions to a political committee if the committee is registered with the public disclosure commission.

    Deductions from salaries and wages of public officers and employees other than those enumerated in this section or by other law, may be authorized by the director of financial management for purposes clearly related to state employment or goals and objectives of the agency and for plans authorized by the state health care authority.

    The authority to make deductions from the salaries and wages of public officers and employees as provided for in this section shall be in addition to such other authority as may be provided by law:  PROVIDED, That the state or any department, division, or separate agency of the state shall not be liable to any insurance carrier or contractor for the failure to make or transmit any such deduction.

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