Z-0426.2  _______________________________________________

                          HOUSE BILL 1353

          _______________________________________________

State of Washington      57th Legislature     2001 Regular Session

By Representatives McDermott, Haigh, D. Schmidt and Miloscia; by request of Public Disclosure Commission

Read first time 01/24/2001.  Referred to Committee on State Government.

Regarding penalties for violations of the public disclosure act.

    AN ACT Relating to penalties for violation of the campaign finance and contribution limits, lobbying, political advertising, and public officials' financial affairs reporting subdivisions of the public disclosure act; amending RCW 42.17.390 and 42.17.395; adding a new section to chapter 42.17 RCW; and prescribing penalties.

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

NEW SECTION. Sec. 1.  A new section is added to chapter 42.17 RCW to read as follows:

    It is the intent of the legislature to increase the authority of the public disclosure commission and the courts to more effectively foster compliance with our state's requirements regarding campaign finance and contribution limits, lobbying, political advertising, and reporting of public officials' financial affairs.  It is the intent of the legislature to make the agency's penalty authority for violations of the campaign, lobbying, political advertising, and public officials' financial affairs provisions in RCW 42.17.010 through 42.17.245 and 42.17.350 through 42.17.790 more consistent with other agencies that enforce state ethics laws.

    Sec. 2.  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 or her registration may be revoked or suspended and he or she 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)) RCW 42.17.010 through 42.17.245 and 42.17.350 through 42.17.790 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 as required by this chapter may be subject to a civil penalty equivalent to the amount ((he failed to report)) not reported as required.

    (6) Any person found to have violated RCW 42.17.130 or 42.17.190 may be ordered to pay restitution in addition to paying any penalties imposed.

(7) Any person found to have violated RCW 42.17.130 or 42.17.190 may be ordered to pay any civil penalty and any restitution with funds that are not public funds as defined in RCW 43.88.020 or as derived through taxes, fees, penalties, or other similar sources.

(8) Any person subject to RCW 42.17.010 through 42.17.245 or 42.17.350 through 42.17.790 may be ordered to take all actions necessary to comply with those sections and Title 390 WAC, including but not limited to the returning of contributions made or received in violation of RCW 42.17.105(8) or 42.17.640.

(9) 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.  The court may also enjoin:

(a) Any lobbyist, lobbyist employer, or sponsor of a grass roots lobbying campaign who has not paid penalties imposed by the court or the commission from registering as a lobbyist, receiving compensation as a lobbyist, or making expenditures for lobbying purposes until the lobbyist, lobbyist employer, or sponsor pays such fines in full;

(b) Any candidate, authorized committee, political committee, or the officers or employees thereof who have not paid penalties imposed by the court or the commission from soliciting, raising, accepting, or spending campaign funds or contributions until the time such fines are paid in full.  This restriction applies to the political committee against which an order and remedies were issued as well as to a political committee that has a majority of the same persons serving as committee officers as the committee that is subject to the order.

    Sec. 3.  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)) RCW 42.17.010 through 42.17.245 or 42.17.350 through 42.17.790 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))) (2) through (8):  PROVIDED, That no ((individual)) penalty assessed by the commission may exceed ((one)) five 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 thousand five hundred dollars)) per violation.

    (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.

NEW SECTION. Sec. 4.  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.

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