BILL REQ. #:  H-3473.1 

Prefiled 12/21/2005. Read first time 01/09/2006.   Referred to Committee on State Government Operations & Accountability.

     AN ACT Relating to the combined fund drive; and adding new sections to chapter 41.04 RCW.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 41.04 RCW to read as follows:
     (1) The legislature finds that:
     (a) The Washington state combined fund drive is a valuable asset to the people of the state of Washington, contributing to their health, education, and well-being;
     (b) Charitable contributions by state employees and public agency retirees contribute significantly to the benefit of charities in Washington state and around the world;
     (c) There is an increasing demand to support charities in Washington state and around the world;
     (d) There are individuals and groups who desire to contribute to the continued vitality of the Washington state combined fund drive; and
     (e) Providing a tax-deductible method for individuals and groups to contribute is an effective way of increasing available funds to the charities involved in the Washington state combined fund drive.
     (2) It is in the public interest to create a nonprofit foundation to provide a method for individuals and groups to contribute to the support of the beneficiaries of the Washington state combined fund drive.
     (3) The purpose of the Washington state combined fund drive foundation is to solicit support for the combined fund drive, cooperate with other organizations, and encourage gifts to support and reduce the administrative cost of the combined fund drive.

NEW SECTION.  Sec. 2   A new section is added to chapter 41.04 RCW to read as follows:
     The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Foundation" means the Washington state combined fund drive foundation, created in section 3 of this act.
     (2) "Combined fund drive committee" means the authorized group of individuals appointed by the governor to operate the Washington state combined fund drive.
     (3) "Eligible grant recipients" includes any and all of the activities of the Washington state combined fund drive committee when operating the state combined fund drive.
     (4) "Eligible projects" means any project, action, or part of any project or action that serves to provide a benefit to the recipients of the Washington state combined fund drive.

NEW SECTION.  Sec. 3   A new section is added to chapter 41.04 RCW to read as follows:
     (1) By September 1, 2006, the combined fund drive committee shall file articles of incorporation in accordance with the Washington nonprofit corporation act, chapter 24.03 RCW, to establish the Washington state combined fund drive foundation. The foundation shall not be an agency, instrumentality, or political subdivision of the state and shall not disburse public funds.
     (2) The Washington state combined fund drive committee and the combined fund drive program manager may provide administrative support to the Washington state combined fund drive foundation.
     (3) The foundation must have a board of directors consisting of up to fifteen members. Initial members of the board shall be recommended by the director of the department of personnel and the combined fund drive committee for appointment by the governor and collectively have experience in business, charitable giving, and fund-raising. Initial appointments must be made by September 30, 2006. Subsequent board members shall be elected by the general membership of the foundation.
     (4) Members of the board serve three-year terms, except for the initial terms, which must be staggered by the governor to achieve a balanced mix of terms on the board. Members of the board may serve up to a maximum of three terms. At the end of a term, a member may continue to serve until a successor has been elected.

NEW SECTION.  Sec. 4   A new section is added to chapter 41.04 RCW to read as follows:
     (1) As soon as practicable, the board of directors shall organize themselves and the foundation suitably to carry out the duties of the foundation, including achieving federal tax status.
     (2) The foundation shall actively solicit contributions from individuals and groups for the benefit of the beneficiaries of the combined fund drive.
     (3) The foundation shall develop criteria for guiding themselves in either the creation of an endowment, or making of grants to the Washington state combined fund drive, or both.

NEW SECTION.  Sec. 5   A new section is added to chapter 41.04 RCW to read as follows:
     Money provided to the Washington state combined fund drive foundation may not be used to supplant preexisting funding sources.

NEW SECTION.  Sec. 6   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.