BILL REQ. #:  H-2104.1 

READ FIRST TIME 03/03/03.   

     AN ACT Relating to fiscal impact of initiatives; amending RCW 29.30.081, 29.79.075, 29.79.300, 29.81.250, 29.81.310, 42.17.130, 42.52.180, and 43.07.030; adding new sections to chapter 29.79 RCW; and providing a contingent effective date.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 29.79 RCW to read as follows:
     If an initiative to the legislature or an initiative to the people requires public funds to be spent for its implementation, the text of the initiative must either specify an increase in an existing state revenue source, or provide a new tax or fee, or specify a combination thereof, adequate to fully implement the measure. If an initiative to the legislature or an initiative to the people repeals or restricts the collection of an existing tax or fee, reduces the rate or amount of an existing tax or fee, or creates or extends an exemption for an existing tax or fee, the text of the initiative must specify how the reductions are to be reflected in the affected budgets.

NEW SECTION.  Sec. 2   A new section is added to chapter 29.79 RCW to read as follows:
     The secretary of state shall create an initiative fiscal review committee and, after consultation with the governor and the attorney general, appoint the members of the committee. The members must be citizens of the United States and must be actual residents of this state. The committee must be organized by the first day of January of the year that the committee will review initiatives, and shall review each initiative to the people that is certified for the ballot. The office of the secretary of state shall provide staff support to the committee. The committee shall hold meetings at such times, places, and manners as the secretary of state may designate. As the state officer with the responsibility for certifying measures to the ballot, the secretary of state should maintain a neutral and unbiased course of action throughout the appointment and assistance of the committee.

NEW SECTION.  Sec. 3   A new section is added to chapter 29.79 RCW to read as follows:
     (1) The initiative fiscal review committee may consist of the following persons as are determined to be qualified, available, and have expertise: Two persons licensed to practice law in the state of Washington, two persons experienced in analyzing fiscal impacts of legislation, two persons who are professional economists, two persons employed as professors by a recognized college or university, two persons from recognized research organizations, and two persons who are members of the public. A retired judge of a Washington superior court or court of appeals or a retired justice of the Washington supreme court may serve as an ex officio member and may cast a vote as a member of the committee only to break a tie vote. The fact that the secretary of state is unable to fill each position on the committee does not prevent the committee from performing its duty under this section so long as the secretary of state makes a good-faith effort to fill each position with a person who is qualified and available. The secretary of state shall ensure that the membership of the committee reflects a fair-minded balance of perspectives.
     (2) The committee shall determine, as well as possible, the short-term and long-term effects of each initiative to the people that is certified for the general election ballot, and issue a report detailing those effects.
     (3) The members of the committee should maintain a neutral and unbiased course of action throughout the public hearing process and throughout the fiscal review process. The committee shall not support or oppose an initiative, but shall fairly and objectively evaluate and describe the fiscal impact of the initiative. Any member of the committee who is affiliated with an initiative campaign or who is affiliated with the subject of an initiative shall recuse himself or herself from all activity and proceedings of the committee pertaining to that initiative.
     (4) Members of the committee may receive no compensation for their services, but are eligible to receive a subsistence allowance and travel expenses under RCW 43.03.050 and 43.03.060.

NEW SECTION.  Sec. 4   A new section is added to chapter 29.79 RCW to read as follows:
     (1) The initiative fiscal review committee shall examine any projected increase or decrease in revenues, costs, expenditures, or indebtedness that state or local governments will experience if an initiative to the people is approved. The committee shall consider any disproportionate impacts that an initiative to the people will have on public and private entities, the fiscal and economic costs of the initiative, the costs of compliance for public and private entities, whether the initiative affects the collection of a tax or fee used to fund general government, and the rate or amount of a tax or fee impacted by the initiative.
     (2)(a) No later than August 31st, the committee shall issue a final report for each certified initiative to the people. The report must reflect the findings, conclusions, and opinions of a majority of the members of the committee. The final report must include a brief summary, not to exceed thirty-five words for printing on the ballot, an extended summary, not to exceed one hundred words for printing in the voters' pamphlet, and may include any other information that the committee considers relevant and appropriate. The members of the committee who do not agree with the findings, conclusions, and opinions contained in the majority report may issue a minority report, to be published as an addendum to the majority full report. The final report is advisory only, and copies must be made available to members of the public upon request.
     (b) The report of the committee must be analytical, factual, objective, impartial, and written in clear and concise language. The information, findings, conclusions, and opinions regarding the fiscal and economic costs and effects of the initiative must be supported with specificity. The committee may consider the contents of fiscal impact statements prepared by the office of financial management under RCW 29.79.075, as well as any other material provided by private or public agencies, entities, persons, or other sources. Where appropriate, a final report may include both estimated dollar amounts and a description placing the estimated dollar amounts into context.

Sec. 5   RCW 29.30.081 and 1990 c 59 s 13 are each amended to read as follows:
     (1) On the top of each ballot there shall be printed instructions directing the voters how to mark the ballot, including write-in votes. After the instructions and before the offices shall be placed the questions of adopting constitutional amendments or any other state measure authorized by law to be submitted to the voters at that election. A brief summary of the report of the initiative fiscal review committee, not to exceed thirty-five words, must be placed on the ballot beneath the ballot title.
     (2) The candidate or candidates of the major political party which received the highest number of votes from the electors of this state for the office of president of the United States at the last presidential election shall appear first following the appropriate office heading, the candidate or candidates of the other major political parties shall follow according to the votes cast for their nominees for president at the last presidential election, and independent candidates and the candidate or candidates of all other parties shall follow in the order of their qualification with the secretary of state.
     (3) The names of candidates for president and vice-president for each political party shall be grouped together with a single response position for a voter to indicate his or her choice.
     (4) All paper ballots and ballot cards shall be sequentially numbered in such a way to permit removal of such numbers without leaving any identifying marks on the ballot.

Sec. 6   RCW 29.79.075 and 2002 c 139 s 1 are each amended to read as follows:
     The office of financial management, in consultation with the secretary of state, the attorney general, and any other appropriate state or local agency, shall prepare a fiscal impact statement for each of the following state ballot measures: (1) An initiative to the people that is certified to the ballot; (2) an initiative to the legislature that will appear on the ballot; (3) an alternative measure appearing on the ballot that the legislature proposes to an initiative to the legislature; (4) a referendum bill referred to voters by the legislature; and (5) a referendum measure appearing on the ballot. Fiscal impact statements must be written in clear and concise language and avoid legal and technical terms when possible, and may include easily understood graphics.
     A fiscal impact statement must describe any projected increase or decrease in revenues, costs, expenditures, or indebtedness that the state or local governments will experience if the ballot measure ((were)) is approved by state voters. Where appropriate, a fiscal impact statement may include both estimated dollar amounts and a description placing the estimated dollar amounts into context. A fiscal impact statement must include both a summary of not to exceed one hundred words and a more detailed statement that includes the assumptions that were made to develop the fiscal impacts.
     Fiscal impact statements must be available online from the secretary of state's web site ((and included in the state voters' pamphlet)).

Sec. 7   RCW 29.79.300 and 1965 c 9 s 29.79.300 are each amended to read as follows:
     The county auditor of each county shall cause to be printed on the official ballots for the election at which initiative and referendum measures are to be submitted to the people for their approval or rejection the serial numbers and ballot titles, certified by the secretary of state, and the brief summary of the report of the initiative fiscal review committee, not to exceed thirty-five words. They shall appear under separate headings in the order of the serial numbers as follows:
     (1) Measures proposed for submission to the people by initiative petition shall be under the heading, "Proposed by Initiative Petition";
     (2) Bills passed by the legislature and ordered referred to the people by referendum petition shall be under the heading, "Passed by the Legislature and Ordered Referred by Petition";
     (3) Bills passed and referred to the people by the legislature shall be under the heading, "Proposed to the People by the Legislature";
     (4) Measures proposed to the legislature and rejected or not acted upon shall be under the heading, "Proposed to the Legislature and Referred to the People";
     (5) Measures proposed to the legislature and alternative measures passed by the legislature in lieu thereof shall be under the heading, "Initiated by Petition and Alternative by Legislature."

Sec. 8   RCW 29.81.250 and 2002 c 139 s 2 are each amended to read as follows:
     The secretary of state shall determine the format and layout of the voters' pamphlet. The secretary of state shall print the pamphlet in clear, readable type on a size, quality, and weight of paper that in the judgment of the secretary of state best serves the voters. The pamphlet must contain a table of contents. Federal and state offices must appear in the pamphlet in the same sequence as they appear on the ballot. Measures and arguments must be printed in the order specified by RCW 29.79.300.
     The voters' pamphlet must provide the following information for each statewide issue on the ballot:
     (1) The legal identification of the measure by serial designation or number;
     (2) The official ballot title of the measure;
     (3) A statement prepared by the attorney general explaining the law as it presently exists;
     (4) A statement prepared by the attorney general explaining the effect of the proposed measure if it becomes law;
     (5) The ((fiscal impact statement prepared under RCW 29.79.075)) extended summary of the report of the initiative fiscal review committee, not to exceed one hundred words;
     (6) The total number of votes cast for and against the measure in the senate and house of representatives, if the measure has been passed by the legislature;
     (7) An argument advocating the voters' approval of the measure together with any statement in rebuttal of the opposing argument;
     (8) An argument advocating the voters' rejection of the measure together with any statement in rebuttal of the opposing argument;
     (9) Each argument or rebuttal statement must be followed by the names of the committee members who submitted them, and may be followed by a telephone number that citizens may call to obtain information on the ballot measure;
     (10) The full text of each measure.

Sec. 9   RCW 29.81.310 and 1999 c 260 s 11 are each amended to read as follows:
     (1) The maximum number of words for statements submitted by candidates is as follows: State representative, one hundred words; state senator, judge of the superior court, judge of the court of appeals, justice of the supreme court, and all state offices voted upon throughout the state, except that of governor, two hundred words; president and vice-president, United States senator, United States representative, and governor, three hundred words.
     (2) Arguments written by committees under RCW ((29.81.230)) 29.81.240 may not exceed two hundred fifty words in length.
     (3) Rebuttal arguments written by committees may not exceed seventy-five words in length.
     (4) The extended summary of the report of the initiative fiscal review committee may not exceed one hundred words.
     (5) The secretary of state shall allocate space in the pamphlet based on the number of candidates or nominees for each office.

Sec. 10   RCW 42.17.130 and 1979 ex.s. c 265 s 2 are each amended to read as follows:
     No elective official nor any employee of his office nor any person appointed to or employed by any public office or agency may use or authorize the use of any of the facilities of a public office or agency, directly or indirectly, for the purpose of assisting a campaign for election of any person to any office or for the promotion of or opposition to any ballot proposition. Facilities of public office or agency include, but are not limited to, use of stationery, postage, machines, and equipment, use of employees of the office or agency during working hours, vehicles, office space, publications of the office or agency, and clientele lists of persons served by the office or agency: PROVIDED, That the foregoing provisions of this section shall not apply to the following activities:
     (1) Action taken at an open public meeting by members of an elected legislative body to express a collective decision, or to actually vote upon a motion, proposal, resolution, order, or ordinance, or to support or oppose a ballot proposition so long as (a) any required notice of the meeting includes the title and number of the ballot proposition, and (b) members of the legislative body or members of the public are afforded an approximately equal opportunity for the expression of an opposing view;
     (2) A statement by an elected official in support of or in opposition to any ballot proposition at an open press conference or in response to a specific inquiry;
     (3) Activities ((which)) that are part of the normal and regular conduct of the office or agency, including making an objective and fair presentation of facts relevant to the impact a ballot proposition may have on the office or agency.

Sec. 11   RCW 42.52.180 and 1995 c 397 s 30 are each amended to read as follows:
     (1) No state officer or state employee may use or authorize the use of facilities of an agency, directly or indirectly, for the purpose of assisting a campaign for election of a person to an office or for the promotion of or opposition to a ballot proposition. Knowing acquiescence by a person with authority to direct, control, or influence the actions of the state officer or state employee using public resources in violation of this section constitutes a violation of this section. Facilities of an agency include, but are not limited to, use of stationery, postage, machines, and equipment, use of state employees of the agency during working hours, vehicles, office space, publications of the agency, and clientele lists of persons served by the agency.
     (2) This section shall not apply to the following activities:
     (a) Action taken at an open public meeting by members of an elected legislative body to express a collective decision, or to actually vote upon a motion, proposal, resolution, order, or ordinance, or to support or oppose a ballot proposition as long as (i) required notice of the meeting includes the title and number of the ballot proposition, and (ii) members of the legislative body or members of the public are afforded an approximately equal opportunity for the expression of an opposing view;
     (b) Use of public facilities by state officers for the preparation or delivery of objective and neutral written or verbal communications initiated by them consisting of explanatory information on the impact of any ballot proposition that foreseeably may affect a matter that falls within their constitutional or statutory responsibilities;
     (c) A statement by an elected official in support of or in opposition to any ballot proposition at an open press conference or in response to a specific inquiry. For the purposes of this subsection, it is not a violation of this section for an elected official to respond to an inquiry regarding a ballot proposition, to make incidental remarks concerning a ballot proposition in an official communication, or otherwise comment on a ballot proposition without an actual, measurable expenditure of public funds. The ethics boards shall adopt by rule a definition of measurable expenditure;
     (((c))) (d) Activities that are part of the normal and regular conduct of the office or agency; and
     (((d))) (e) De minimis use of public facilities by statewide elected officials and legislators incidental to the preparation or delivery of permissible communications((, including written and verbal communications initiated by them of their views on ballot propositions that foreseeably may affect a matter that falls within their constitutional or statutory responsibilities)).
     (3) As to state officers and employees, this section operates to the exclusion of RCW 42.17.130.

Sec. 12   RCW 43.07.030 and 1982 c 35 s 186 are each amended to read as follows:
     The secretary of state shall:
     (1) Keep a register of and attest the official acts of the governor;
     (2) Affix the state seal, with his attestation, to commissions, pardons, and other public instruments to which the signature of the governor is required, and also attestations and authentications of certificates and other documents properly issued by the secretary;
     (3) Record all articles of incorporation, deeds, or other papers filed in the secretary of state's office;
     (4) Receive and file all the official bonds of officers required to be filed with the secretary of state;
     (5) Take and file in the secretary of state's office receipts for all books distributed by him;
     (6) Create and assist the initiative fiscal review committee;
     (7) Certify to the legislature the election returns for all officers required by the Constitution to be so certified, and certify to the governor the names of all other persons who have received at any election the highest number of votes for any office the incumbent of which is to be commissioned by the governor;
     (((7))) (8) Furnish, on demand, to any person paying the fees therefor, a certified copy of all or any part of any law, record, or other instrument filed, deposited, or recorded in the secretary of state's office;
     (((8))) (9) Present to the speaker of the house of representatives, at the beginning of each regular session of the legislature during an odd-numbered year, a full account of all purchases made and expenses incurred by the secretary of state on account of the state;
     (((9))) (10) File in his office an impression of each and every seal in use by any state officer;
     (([(10)])) (11) Keep a record of all fees charged or received by the secretary of state.

NEW SECTION.  Sec. 13   Section 1 of this act takes effect January 1, 2004, if the proposed amendment to Article II, section 1 of the state Constitution (HJR --) is validly submitted to and is approved and ratified by the voters at a general election held in November 2003. If the proposed amendment is not approved and ratified, section 1 of this act is void in its entirety.