BILL REQ. #:  H-4122.1 

Read first time 01/23/2004.   Referred to Committee on State Government.

     AN ACT Relating to campaign finance reform; amending RCW 42.17.095, 42.17.640, and 42.17.020; adding a new section to chapter 82.24 RCW; adding new sections to chapter 42.17 RCW; creating new sections; repealing RCW 42.17.128; and prescribing penalties.

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

NEW SECTION.  Sec. 1   The purpose of this act is to create a system of clean elections for state office campaigns through public financing, thereby focusing campaigns on issues and away from the sources of campaign contributions, limit the influence of large contributors and special interests, and require contribution limits for all elective office campaigns.

NEW SECTION.  Sec. 101   VOLUNTARY LIMITATIONS ON CONTRIBUTIONS FOR POLITICAL CAMPAIGNS. Notwithstanding any law to the contrary, a participating candidate and a participating candidate's authorized committee:
     (1) Shall not accept individual contributions in excess of twenty-five dollars for each election cycle, except in the emergency situation specified in section 111(4) of this act;
     (2) Shall not accept contributions from a political committee, a continuing political committee, a bona fide political party, or a caucus political committee;
     (3) Shall not expend more than a total of five hundred dollars of the candidate's personal money;
     (4) Shall collect one hundred qualifying contributions under section 104 of this act; and
     (5) Shall comply with this chapter, including section 105 of this act regarding the authorized committee's account and section 110 of this act regarding returning unused moneys to the citizens' clean elections fund.

NEW SECTION.  Sec. 102   CERTIFICATION AS A PARTICIPATING CANDIDATE. (1) A candidate who wishes to be certified as a participating candidate shall, before the end of the qualifying period, file an application with the commission using a form specified by the commission. The application must identify the candidate, the office that the candidate plans to seek, and the candidate's party, if any, and contain the candidate's signature, under oath, certifying that:
     (a) The candidate has complied with the restrictions of section 101 of this act during the election cycle to date;
     (b) The candidate's campaign committee has filed all campaign finance reports required under this chapter during the election cycle to date that are complete and accurate; and
     (c) The candidate will comply with the requirements of section 101 of this act during the remainder of the election cycle and, specifically, will not accept individual contributions in excess of the limit established in section 101(1) of this act; and will not accept contributions from a political committee, a continuing political committee, a bona fide political party, or a caucus political committee.
     (2) The commission shall act on the application within seven days. Unless, within that time, the commission denies an application and provides written reasons that all or part of a certification in subsection (1) of this section is incomplete or untrue, the commission shall certify the candidate as a participating candidate. If the commission denies an application for failure to file all complete and accurate campaign finance reports or failure to make the certification in subsection (1)(c) of this section, the candidate may reapply within fourteen days of the commission's decision by filing complete and accurate campaign finance reports and another sworn certification.
     (3) A candidate who is certified as a participating candidate may use this designation in campaign materials and will be so designated in the state voters' pamphlet.

NEW SECTION.  Sec. 103   LIMITS ON EARLY CONTRIBUTIONS. (1) A participating candidate may accept early contributions only from individuals and only during the exploratory period and the qualifying period, subject to the following limitations: Notwithstanding any law to the contrary, a contributor may not give contributions exceeding twenty-five dollars during an election cycle and a participating candidate may not accept contributions from a contributor exceeding twenty-five dollars during an election cycle.
     (2) Early contributions specified in subsection (1) of this section and the candidate's personal moneys specified in section 101(3) of this act may be spent only during the exploratory period and the qualifying period. Any early contributions not spent by the end of the qualifying period must be paid to the citizens' clean elections fund.

NEW SECTION.  Sec. 104   QUALIFYING CONTRIBUTIONS. (1) During the qualifying period, a participating candidate shall collect a minimum of one hundred qualifying contributions, which must be paid to the citizens' clean elections fund.
     (2) To qualify as a "qualifying contribution," a contribution must be:
     (a) Made by a registered voter who at the time of the contribution was registered in the electoral district of the office the candidate is seeking and who has not given another qualifying contribution to that candidate during that election cycle;
     (b) Made by a person who is not given anything of value in exchange for the qualifying contribution;
     (c) In the sum of twenty-five dollars, exactly;
     (d) Received during the qualifying period by the candidate or on behalf of the candidate;
     (e) If made by check or money order, made payable to the candidate's authorized committee, or if in cash, deposited in the sole account in the candidate's authorized committee; and
     (f) Accompanied by a four-part reporting slip that includes the printed name, registration address, and signature of the contributor, the name of the candidate for whom the contribution is made, the date, and the printed name and signature of the solicitor.
     (3) A copy of the reporting slip must be given as a receipt to the contributor, and another copy must be retained by the candidate's campaign committee. The remaining copies must be forwarded to the commission. Delivery of the reporting slips to the commission excuses the candidate from disclosing the names of the contributors on campaign finance reports filed under RCW 42.17.080.

NEW SECTION.  Sec. 105   CONTROLS ON A PARTICIPATING CANDIDATE'S AUTHORIZED COMMITTEE. (1) A participating candidate and the participating candidate's authorized committee shall conduct all financial activity through a single account. A participating candidate may not make any deposits into this account other than those permitted under sections 103, 104, and 107 of this act.
     (2) A participating candidate and the treasurer of the participating candidate's authorized committee must sign a joint statement under oath promising to comply with the requirements of RCW 42.17.095 and sections 101 through 114 of this act.
     (3) A participating candidate or the treasurer of the participating candidate's authorized committee shall pay moneys from the authorized committee's account directly to the person providing goods or services to the campaign and shall identify, on reports filed under RCW 42.17.080, the full name and street address of the person and the nature of the goods or services and compensation for which payment has been made. However, an authorized committee may establish one or more petty cash accounts, that in aggregate must not exceed one thousand dollars at any time. A single expenditure may not be made from a petty cash account exceeding one hundred dollars. Expenditures from any petty cash accounts must also be included in reports filed under RCW 42.17.080.
     (4) Moneys in the account of a participating candidate's authorized committee may not be used to pay fines or civil penalties, for costs or legal fees related to representation before the commission, or for defense of an enforcement action under this chapter. Nothing in this subsection prevents a participating candidate from having a legal defense fund.

NEW SECTION.  Sec. 106   QUALIFICATION FOR CLEAN CAMPAIGN FUNDING. (1) A candidate who has applied for certification may also apply, in accordance with subsection (2) of this section, to receive funds from the citizens' clean elections fund.
     (2) To receive funding from the citizens' clean elections fund, a candidate must present to the commission no later than one week after the end of the qualifying period a list of names of persons who have made qualifying contributions under section 104 of this act on behalf of the candidate. The list must be divided by county. At the same time, the candidate must tender to the commission copies of the reporting slips identified in section 104 of this act for persons on the list and an amount equal to the sum of the qualifying contributions collected. The commission shall deposit the amount into the citizens' clean elections fund.
     (3) The commission shall forward a copy of the reporting slips to the county auditor of the counties of the addresses specified in the selected slips. Within ten days, the county auditors shall provide a report to the commission identifying as disqualified any slips that are unsigned or undated or that the auditor is unable to verify as matching a person who is registered to vote, on the date specified on the slip, inside the electoral district of the office the candidate is seeking. The commission shall approve the candidate for funds if one hundred qualifying contributions are made.
     (4) To qualify for clean campaign funding, a candidate must have been certified as a participating candidate under section 102 of this act and must have obtained a minimum of one hundred qualifying contributions.

NEW SECTION.  Sec. 107   CLEAN CAMPAIGN FUNDING. (1) On the first business day of each month during the primary election period up until the first business day of the month immediately after the primary election, a participating candidate shall transmit to the commission the names and addresses of each contributor and the amount each person contributed for the previous month. The candidate's committee treasurer must certify that the list is true and accurate. The commission shall check the list to verify that the candidate has not received more than twenty-five dollars in aggregate from any one individual and that no single contribution exceeds twenty-five dollars. The commission shall arrange a payment by the state treasurer from the citizens' clean elections fund to the account of the authorized committee of each candidate who qualifies for clean campaign funding, an amount that equals two hundred dollars in matching funds for every twenty-five dollars received in contributions by the participating candidate, up to an amount of forty thousand dollars, except under the conditions identified in section 108 of this act.
     (2) On the first business day of each month during the general election period up until the first business day of the month immediately after the general election, a participating candidate shall transmit to the commission the names and addresses of each contributor and the amount each person contributed for the previous month. The candidate's committee treasurer must certify that the list is true and accurate. The commission shall check the list to verify that the candidate has not received more than twenty-five dollars in aggregate from any one individual and that no single contribution exceeds twenty-five dollars. The commission shall arrange a payment by the state treasurer from the citizens' clean elections fund to the account of the authorized committee of each candidate who qualifies for clean campaign funding an amount that equals two hundred dollars in matching funds for every twenty-five dollars received in contributions by the participating candidate, up to an amount of forty thousand dollars, except under the conditions identified in section 108 of this act.

NEW SECTION.  Sec. 108   EQUAL FUNDING OF CANDIDATES. (1) Whenever during a primary or general election period a report is filed, or other information comes to the attention of the commission, indicating that a nonparticipating candidate for the same office as a participating candidate has raised fifty percent more money then a participating candidate, the commission shall authorize, so long as adequate funding is available, additional funds from the citizens' clean elections fund to the account of the authorized committee of any participating candidate seeking the same office as the nonparticipating candidate, the difference between the total amount raised by the nonparticipating candidate and the total amount raised, including matching funds, by the participating candidate.
     (2) If the adjusted spending limit reaches twice the spending limit for a particular election, then the commission shall not pay any further amounts from the citizens' clean elections fund to the campaign account of the participating candidate, and the spending limit will not be adjusted further.

NEW SECTION.  Sec. 109   LIMITATIONS ON SPENDING FROM THE CITIZENS' CLEAN ELECTIONS FUND. (1) The commission shall not spend, on all costs incurred under sections 101 through 114 of this act during a particular calendar year, more than two dollars and fifty cents times the population of the state during the previous year, as certified by the office of financial management. This amount may be adjusted by the commission as per the requirements of RCW 42.17.690. The commission may exceed this limit during a calendar year, if it is offset by an equal reduction of the limit during another calendar year during the same four-year period beginning January 1st immediately after a gubernatorial election.
     (2) The commission may use up to five percent of the amount specified in subsection (1) of this section for reasonable and necessary expenses of administration and enforcement of RCW 42.17.095 and sections 101 through 114 of this act. Any portion of the five percent not used for this purpose will remain in the fund.
     (3) The commission shall apply five percent of the amount specified in subsection (1) of this section for reasonable and necessary expenses necessary to carry out sections 101 through 114 of this act.
     (4) The state treasurer shall administer a citizens' clean elections fund from which costs incurred under sections 101 through 114 of this act will be paid.

NEW SECTION.  Sec. 110   RETURN OF MONEYS TO THE CITIZENS' CLEAN ELECTIONS FUND. (1) At the end of the primary election period, a participating candidate who has received moneys under section 107(1) of this act shall return to the citizens' clean elections fund all moneys in the account of the candidate's authorized committee above an amount sufficient to pay any unpaid bills for expenditures made during the primary election period and for goods or services directed to the primary election.
     (2) At the end of the general election period, a participating candidate shall return to the citizens' clean elections fund all moneys in the account of the candidate's authorized committee above an amount sufficient to pay any unpaid bills for expenditures made before the general election and for goods or services directed to the general election.
     (3) At the end of the general election period, a successful participating candidate may hold in surplus up to five hundred dollars for the following purposes:
     (a) Nonreimbursed public office-related expenses held in a separate account. Dispositions must be reported in accordance with RCW 42.17.090. The separate account required under this subsection may not be used for deposits of campaign funds that are not surplus;
     (b) A future election campaign for the same office last sought by the candidate. Dispositions must be reported in accordance with RCW 42.17.090. If the candidate subsequently announces or publicly files for office, information as appropriate must be reported to the commission in accordance with RCW 42.17.040 through 42.17.090. If a subsequent office is not sought the surplus held must be returned to the citizens' clean elections fund.
     (4) A participating candidate shall pay all uncontested and unpaid bills referred to in this section no later than thirty days after the primary or general election. A participating candidate shall make monthly reports to the commission concerning the status of the dispute over any contested bills. Any moneys in a candidate's campaign account after payment of bills must be returned promptly to the citizens' clean elections fund.
     (5) If a participating candidate is replaced as the result of a vacancy as provided under RCW 29A.24.210, and the replacement candidate files an oath with the commission certifying to section 102(1)(c) of this act, the campaign account of the participating candidate will be transferred to the replacement candidate and the commission shall certify the replacement candidate as a participating candidate without requiring compliance with section 106 of this act or section 102(1) (a) and (b) of this act. If the replacement candidate does not file such an oath, the account of the authorized committee of the candidate whose position is vacant will be liquidated and all remaining moneys returned to the citizens' clean elections fund.

NEW SECTION.  Sec. 111   CITIZENS' CLEAN ELECTIONS FUND. (1) The citizens' clean elections fund is created in the custody of the state treasurer as a fund separate from the state general fund. All receipts from (a) beginning January 1, 2005, an additional tax on cigarettes per section 118 of this act; (b) amounts returned under section 110 of this act; and (c) amounts turned over under section 113 of this act must be deposited into the fund. Expenditures from the fund may be used only as provided by sections 107 through 109 of this act. Only the commission or its designee may authorize expenditures from the fund. The fund is not subject to allotment procedures under chapter 43.88 RCW. All interest earnings and other income obtained from investing money in the fund will remain with the fund, and no portion of these earnings may be returned to the state investment board expense account as otherwise provided under RCW 43.33A.160. An appropriation is not required for expenditures from the fund, including authorized transfers that are made from the fund to the account of the authorized committee of a participating candidate.
     (2) At least once per year, the commission shall project the amount of money that the fund will receive over each of the next four years, when this money will become available, and the required expenditures from the fund for each of the next four calendar years. Whenever the commission determines that the fund contains more money than the commission determines is required to meet current debts plus expected expenses, under the assumption that expected expenses will be at the expenditure limit in section 109(1) of this act and taking into account the projections of anticipated revenues, the commission shall designate this money as excess and so notify the state treasurer, who shall transfer the excess money to the state general fund. Whenever the commission determines that the citizens' clean elections fund will not contain sufficient money to meet its current debts plus expected expenses, under the assumption that expected expenses will be at the expenditure limit in section 109(1) of this act and taking into account the projections of anticipated revenues, the commission shall notify the legislature of this projected deficiency. The legislature shall appropriate sufficient money from the general fund into the citizens' clean elections fund necessary to meet this deficiency.
     (3) If the legislature fails to appropriate sufficient money to eliminate the projected deficiency, then the commission shall announce the deficiency. The announcement may include specifications for decreases in the following parameters, based on the commission's projections of collections and expenses for the citizens' clean elections fund, made in the following order:
     (a) First, the commission may announce a decrease in the amount of matching funds from two hundred dollars for every twenty-five dollars in private contributions to one hundred dollars for every twenty-five dollars in private contributions.
     (b) Next, the commission may announce that the fund will not provide equalization money under section 108 (1) and (2) of this act.
     (c) Finally, the commission may announce that the total amount of matching funding will be decreased.
     (4) If the commission cannot provide participating candidates with all money specified under sections 107 and 108 of this act, as decreased under any announcement under subsection (3) of this section, then the commission shall allocate any reductions in payments proportionately among candidates entitled to money and shall declare an emergency. Upon declaration of an emergency, a participating candidate may accept private contributions in excess of twenty-five dollars, but not more than that allowed under RCW 42.17.640(1) to increase the total money received by the candidate from the fund and from the private contributions to adjust for the lack of funding, as determined by the commission.

NEW SECTION.  Sec. 112   ENFORCEMENT DUTIES. (1) The commission shall:
     (a) Prescribe forms for reports, statements, notices, and other documents required by RCW 42.17.095 and sections 101 through 114 of this act;
     (b) Prepare and publish instructions setting forth methods of bookkeeping and preservation of records to facilitate compliance with RCW 42.17.095 and sections 101 through 114 of this act and explaining the duties of persons and committees under RCW 42.17.095 and sections 101 through 114 of this act;
     (c) Adopt rules to implement RCW 42.17.095 and sections 101 through 114 of this act, but the joint administrative rules review committee may not make these rules subject to RCW 34.05.328;
     (d) Enforce RCW 42.17.095 and sections 101 through 114 of this act, ensure that money from the citizens' clean elections fund that is transferred into the account of an authorized committee of a participating candidate is spent as specified in RCW 42.17.095 and sections 101 through 114 of this act and not otherwise, monitor reports filed under RCW 42.17.095 and sections 101 through 114 of this act and financial records of candidates as needed to ensure that equalization moneys are paid promptly to opposing qualified candidates under section 108 of this act.
     (2) Based on the results of the elections in the year 2004 or any subsequent presidential election, and within six months after such an election, the commission may adopt rules changing the number of qualifying contributions required for any office from those listed in section 106(4) of this act by no more than twenty percent of the number applicable for the preceding presidential election.

NEW SECTION.  Sec. 113   CIVIL PENALTIES. (1) The civil penalty for a violation of a contribution or expenditure limit established under section 101 of this act by or on behalf of a participating candidate is ten times the amount by which the expenditures or contributions exceed the applicable limit.
     (2) In addition to any other penalties imposed by law, the civil penalty for a violation by or on behalf of a participating candidate of a reporting requirement imposed by this chapter is one hundred dollars per day. A civil penalty imposed under this subsection may not exceed twice the amount of expenditures or contributions not reported in a timely manner. The candidate and the candidate's authorized committee are jointly and severally responsible for a civil penalty imposed under this subsection.
     (3) A participating candidate adjudged to have knowingly committed a violation of section 101 of this act shall repay the amount from his or her personal funds to the citizens' clean elections fund and shall turn over all money in the candidate's authorized committee account to the citizens' clean elections fund.
     (4) All civil penalties collected under subsections (1) through (3) of this section will be deposited into the citizens' clean elections fund.

NEW SECTION.  Sec. 114   INFLATION AND OTHER ADJUSTMENTS OF DOLLAR VALUES. (1) Every two years, the commission shall modify the dollar values specified in the following sections, in the manner specified by RCW 42.17.370 to account for inflation: (a) Section 101(1) of this act; (b) section 103(1) of this act; (c) section 105(3) of this act; (d) "primary election matching limits" and "general election matching limits"; (e) section 109(1) of this act; (f) section 113(2) of this act. Whenever a dollar value is so adjusted, these statutes will be interpreted to apply to the inflation-adjusted value.
     (2) Based on the results of the elections in the year 2004 or any presidential election thereafter, and within six months after the election, the commission may adopt rules reallocating funds available to all candidates between the primary and general election by selecting a fraction for primary matching limits that is between one-third and one-half of the matching limits for the election cycle. For each office, the primary election matching limit will be modified to be the sum of the primary and general matching limits times the selected fraction, and the general election matching limit will be modified to be the same sum.

Sec. 115   RCW 42.17.095 and 1995 c 397 s 31 are each amended to read as follows:
     The surplus funds of a candidate, or of a political committee supporting or opposing a candidate, may only be disposed of in any one or more of the following ways:
     (1) Return the surplus to a contributor in an amount not to exceed that contributor's original contribution;
     (2) Transfer the surplus to the candidate's personal account as reimbursement for lost earnings incurred as a result of that candidate's election campaign. Such lost earnings shall be verifiable as unpaid salary or, when the candidate is not salaried, as an amount not to exceed income received by the candidate for services rendered during an appropriate, corresponding time period. All lost earnings incurred shall be documented and a record thereof shall be maintained by the candidate or the candidate's political committee. The committee shall include a copy of such record when its expenditure for such reimbursement is reported pursuant to RCW 42.17.090;
     (3) Transfer the surplus without limit to a political party or to a caucus political committee;
     (4) Donate the surplus to a charitable organization registered in accordance with chapter 19.09 RCW;
     (5) Transmit the surplus to the state treasurer for deposit in the general fund; ((or))
     (6) Hold the surplus in the campaign depository or depositories designated in accordance with RCW 42.17.050 for possible use in a future election campaign for the same office last sought by the candidate and report any such disposition in accordance with RCW 42.17.090: PROVIDED, That if the candidate subsequently announces or publicly files for office, information as appropriate is reported to the commission in accordance with RCW 42.17.040 through 42.17.090. If a subsequent office is not sought the surplus held shall be disposed of in accordance with the requirements of this section((.));
     (7) Hold the surplus campaign funds in a separate account for nonreimbursed public office-related expenses or as provided in this section, and report any such disposition in accordance with RCW 42.17.090. The separate account required under this subsection shall not be used for deposits of campaign funds that are not surplus((.));
     (8) Notwithstanding subsections (1) through (7) of this section, for those candidates certified for clean election funding, all surplus campaign funds must be transferred to the citizens' clean elections fund;
     (9) No candidate or authorized committee may transfer funds to any other candidate or other political committee.
     The disposal of surplus funds under this section shall not be considered a contribution for purposes of this chapter.

Sec. 116   RCW 42.17.640 and 2001 c 208 s 1 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)) public office that in the aggregate exceed ((five)) one hundred dollars ((or to a candidate for a state office other than a state legislative office that in the aggregate exceed one thousand dollars)) for each election in which the candidate is on the ballot or appears as a write-in candidate. Contributions made with respect to a primary may not be made after the date of the primary. However, contributions to a candidate or a candidate's authorized committee may be made with respect to a primary until thirty days after the primary, subject to the following limitations: (a) The candidate lost the primary; (b) the candidate's authorized committee has insufficient funds to pay debts outstanding as of the date of the primary; and (c) the contributions may only be raised and spent to satisfy the outstanding debt. 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)) public 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)) public official, during a recall campaign that in the aggregate exceed ((five)) one hundred dollars ((if)) for ((a state legislative office or one thousand dollars if for a state office other than a state legislative)) an elected 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-five 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)) fifteen 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 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)) fifteen cents times the number of registered voters in the jurisdiction from which the candidate is elected.
     (4)(a) Notwithstanding subsection (2) of this section, no bona fide political party or caucus political committee may make contributions to ((a state)) an elected official against whom recall charges have been filed, or to a political committee having the expectation of making expenditures in support of the ((state)) elected official, during a recall campaign that in the aggregate exceed (i) ((fifty)) twenty-five cents multiplied by the number of eligible registered voters in the jurisdiction entitled to recall the ((state)) elected official if the contributor is a caucus political committee or the governing body of a state organization, or (ii) ((twenty-five)) fifteen 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)) elected 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)) an elected 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)) fifteen 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)) one 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)) an elected 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)) an elected 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)) an elected 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)) an elected 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)) an elected official against whom recall charges have been filed, or a political committee having the expectation of making expenditures in support of the recall of ((a state)) an elected 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.

Sec. 117   RCW 42.17.020 and 2002 c 75 s 1 are each amended to read as follows:
     (1) "Adjusted spending limit" means a spending limit as further adjusted to account for reported overages under section 108 of this act.
     (2) "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))) (3) "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))) (4) "Ballot proposition" means any "measure" as defined by RCW ((29.01.110)) 29A.04.091, 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))) (5) "Benefit" means a commercial, proprietary, financial, economic, or monetary advantage, or the avoidance of a commercial, proprietary, financial, economic, or monetary disadvantage.
     (((5))) (6) "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)) 29A.20 RCW;
     (b) The governing body of the state organization of a major political party, as defined in RCW ((29.01.090)) 29A.04.085, 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))) (7) "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))) (8) "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))) (9) "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))) (10) "Commission" means the agency established under RCW 42.17.350.
     (((12))) (11) "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))) (12) "Continuing political committee" means a political committee that is an organization of continuing existence not established in anticipation of any particular election campaign.
     (((14))) (13)(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.
     (14) "Depository" means a bank designated by a candidate or political committee under RCW 42.17.050.
     (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) "Exploratory period" means the period beginning on the day after the previous general election for the office being sought and ending the day before the start of the qualifying period for that office.
     (21) "Final report" means the report described as a final report in RCW 42.17.080(2).
     (((21))) (22) "General election" for the purposes of RCW 42.17.640 means the election that results in the election of a person to a state office. It does not include a primary.
     (((22))) (23) "General election period" means the period beginning on the day after the primary election and ending on the day of the general election. For a recall election, the "general election period" extends from the day after the end of the qualifying period to the day of the recall election.
     (24) "General election matching limits" means forty thousand dollars.
     (25) "Gift," is as defined in RCW 42.52.010.
     (((23))) (26) "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))) (27) "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))) (28)(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))) (29) "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))) (30) "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))) (31) "Lobbyist" includes any person who lobbies either in his or her own or another's behalf.
     (((29))) (32) "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))) (33) "Nonparticipating candidate" means a candidate who does not become certified as a participating candidate under section 102 of this act and the authorized committee of the candidate.
     (34) "Participating candidate" means a candidate who becomes certified as a participating candidate under section 102 of this act and the authorized committee of the candidate.
     (35) "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))) (36) "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))) (37) "Political advertising" includes any advertising displays, newspaper ads, billboards, signs, brochures, articles, tabloids, flyers, letters, radio or television presentations, or other 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))) (38) "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))) (39) "Primary" for the purposes of RCW 42.17.640 means the procedure for nominating a candidate to state office under chapter ((29.18 or 29.21)) 29A.52 RCW or any other primary for an election that uses, in large measure, the procedures established in chapter ((29.18 or 29.21)) 29A.52 RCW.
     (((35))) (40) "Primary election matching limits" means forty thousand dollars.
     (41) "Primary period" means the nine-week period ending on the day of the primary election. There is no primary period for a recall election.
     (42) "Public office" means any federal, state, judicial, county, city, town, school district, port district, special district, or other state political subdivision elective office.
     (((36))) (43) "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))) (44) "Qualifying period" means the period beginning on the first day of August in the year before an election, for an election for state office other than legislative, or on the first day of January of an election year, for an election for state legislative office and ending on the close of the regular filing period for the office. For a recall election, the qualifying period begins when the election is called and lasts for thirty days.
     (45) "Recall campaign" means the period of time beginning on the date of the filing of recall charges under RCW ((29.82.015)) 29A.56.120 and ending thirty days after the recall election.
     (((38))) (46) "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))) (47) "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))) (48) "State official" means a person who holds a state office.
     (((41))) (49) "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))) (50) "Treasurer" and "deputy treasurer" mean the individuals appointed by a candidate or political committee, under RCW 42.17.050, to perform the duties specified in that section.
     (51) "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.

NEW SECTION.  Sec. 118   A new section is added to chapter 82.24 RCW to read as follows:
     In addition to the tax imposed upon the sale, use, consumption, handling, possession, or distribution of cigarettes set forth in RCW 82.24.020, there is imposed a tax in an amount equal to the rate of five mills per cigarette effective January 1, 2005. All revenues collected during any month from this additional tax must be deposited in the citizens' clean elections fund created under section 111 of this act by the twenty-fifth day of the following month.

NEW SECTION.  Sec. 119   RCW 42.17.128 (Use of public funds for political purposes) and 1993 c 2 s 24 are each repealed.

NEW SECTION.  Sec. 120   Sections 101 through 116 of this act may be known as the Citizens' Clean Elections Act.

NEW SECTION.  Sec. 121   Sections 101 through 114 of this act are each added to chapter 42.17 RCW.

NEW SECTION.  Sec. 122   Captions and part headings used in this act are not part of the law.

NEW SECTION.  Sec. 123   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.