BILL REQ. #: S-4467.2
State of Washington | 59th Legislature | 2006 Regular Session |
Read first time 01/20/2006. Referred to Committee on Government Operations & Elections.
AN ACT Relating to establishing the Washington clean elections act; amending RCW 42.17.095 and 42.17.128; adding a new chapter to Title 42 RCW; and prescribing penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1 The legislature finds that our current
election financing system:
(1) Gives incumbents an unhealthy advantage over challengers;
(2) Hinders communication to voters by many qualified candidates;
(3) Undermines public confidence in the integrity of public
officials;
(4) Drives up the cost of running for state office, discouraging
otherwise qualified candidates who lack personal wealth or access to
special interest funding; and
(5) Requires that elected officials spend too much of their time
raising funds rather than representing the public.
NEW SECTION. Sec. 2 This chapter, to be known as the Washington
clean elections act, establishes an alternative campaign financing
option available to candidates running for office. The alternative
campaign financing program is funded entirely through voluntary
donations made by individuals. The commission shall administer this
chapter and the Washington clean elections account. Participating
candidates must also comply with all other applicable election and
campaign laws and rules.
NEW SECTION. Sec. 3 The definitions in this section apply
throughout this chapter unless the context clearly requires otherwise.
(1) "Account" means the Washington clean elections account
established under section 6 of this act.
(2) "Commission" means the public disclosure commission.
(3) "Exploratory period" means the period beginning on the day
after a general election and ending the day before the start of the
qualifying period.
(4) "General election period" means the period beginning upon
certification of the primary election and ending on the day of the
general election.
(5) "General election spending limit" means amounts fifty percent
greater than the primary election spending limit for that office.
(6) "Nonparticipating candidate" means a candidate who does not
become certified as a participating candidate under this chapter.
(7) "Participating candidate" means a candidate for governor,
lieutenant governor, secretary of state, attorney general, state
auditor, state treasurer, commissioner of public lands, insurance
commissioner, superintendent of public instruction, state senator, or
state representative who becomes certified as a participating candidate
under this chapter.
(8) "Primary election period" means the period starting ten days
after the close of candidate filing and ending on the day of
certification of the primary election.
(9) "Primary election spending limit" means for a candidate for
legislature, ten thousand dollars; for a candidate for secretary of
state, lieutenant governor, or attorney general, eighty thousand
dollars; for a candidate for governor, three hundred eighty thousand
dollars; and for all other candidates, forty thousand dollars.
(10) "Qualifying contribution" means a contribution that is:
(a) Made during the qualifying period by an elector who at the time
of the contribution is registered in the electoral district of the
office the candidate is seeking and who has not given another
qualifying contribution to that candidate during the 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 five dollars, exactly;
(d) If made by check or money order, made payable to the
candidate's campaign committee or, if in cash, deposited in the
candidate's campaign account; and
(e) Reported to the commission in compliance with section 4 of this
act.
(11) "Qualifying period" means the period beginning on the first
day of August in a year preceding an election and at the close of
candidate filing under chapter 29A.24 RCW.
NEW SECTION. Sec. 4 (1) A candidate who wishes to be certified
as a participating candidate shall submit to the commission by the
close of candidate filing under chapter 29A.24 RCW for that election
year:
(a) An application that identifies the candidate, the office that
the candidate plans to seek, and the candidate's political party, if
any;
(b) A report that provides the name and other information required
by the commission of all persons who have made qualifying contributions
under this chapter on behalf of the candidate and an amount equal to
the qualifying contributions collected by the candidate to be deposited
in the account;
(c) A statement signed by the candidate under oath, certifying that
the candidate:
(i) Has complied with the restrictions of this chapter during the
election cycle to date;
(ii) Agrees to comply with the requirements of this chapter during
the remainder of the election cycle and will not accept private
campaign contributions other than qualifying contributions as provided
in this chapter;
(iii) Agrees that all money received from the account will be used
exclusively for financing his or her primary or general election
campaign; and
(iv) Will comply with expenditure reporting requirements in RCW
42.17.070 and 42.17.080; and
(d) A copy of the candidate's declaration of candidacy.
(2) The commission shall act on the application within one week.
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 candidate
shall be certified 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) of this section, the candidate may reapply within two
weeks of the commission's decision by filing complete and accurate
campaign finance reports and another sworn certification.
NEW SECTION. Sec. 5 (1) Participating candidates may not:
(a) Accept any campaign contributions other than qualifying
contributions and early contributions as specified in this chapter;
(b) Make campaign expenditures of more than a total of five hundred
dollars of the candidate's personal money for a candidate for
legislature or more than one thousand dollars for a candidate for
statewide office;
(c) Make campaign expenditures in the primary election period in
excess of the primary election spending limit; or
(d) Make campaign expenditures in the general election period in
excess of the general election spending limit.
(2) Participating candidates must comply with section 12 of this
act regarding campaign accounts and section 16 of this act regarding
returning unused money to the account.
NEW SECTION. Sec. 6 (1) The Washington clean elections account
is created in the custody of the state treasurer. All receipts from
voluntary contributions from sources listed in subsection (2) of this
section must be deposited into the account. Expenditures from the
account may be used only for distributions as authorized by this
chapter. Only the commission or the commission's designee may
authorize expenditures from the account. The account is subject to
allotment procedures under chapter 43.88 RCW, but an appropriation is
not required for expenditures.
(2) Voluntary contributions to the account may be made in the
following manner and must be deposited in the account:
(a) Qualifying contributions collected by candidates and submitted
to the commission under section 4 of this act;
(b) Contributions made to the account or the commission for the
account;
(c) Contributions made through a voluntary check off on driver's
license application and renewal forms;
(d) Contributions made through a voluntary check off on vehicle
registration and renewal forms;
(e) Contributions made through a voluntary check off on state
college and university registration forms;
(f) Contributions made through a voluntary check off on department
of fish and wildlife license and renewal forms;
(g) Contributions made through a voluntary check off on department
of natural resources license and renewal forms;
(h) Contributions made through a voluntary check off on
professional license and renewal forms; and
(i) Transfer of surplus funds under RCW 42.17.095.
NEW SECTION. Sec. 7 (1) By January 1st of each election year,
the commission shall publish an estimate of revenue in the account
available for distribution to participating candidates during the
upcoming elections.
(2) The commission may use up to ten percent of the amount in the
account for reasonable and necessary expenses of administration and
enforcement. Any portion of the ten percent not used for this purpose
must remain in the account.
(3) The commission may use up to ten percent of the amount in the
account for reasonable and necessary expenses associated with voter
education. Any portion of the ten percent not used for this purpose
must remain in the account.
NEW SECTION. Sec. 8 (1) The civil penalty for a violation of any
contribution or expenditure limit in section 5 of this act by or on
behalf of a participating candidate shall be 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 any candidate of any
reporting requirement imposed by this chapter or chapter 42.17 RCW
shall be one hundred dollars per day for candidates for the legislature
and three hundred dollars per day for candidates for statewide office.
The penalty imposed by this subsection shall be doubled if the amount
not reported for a particular election cycle exceeds ten percent of the
adjusted primary or general election spending limit. No penalty
imposed under this subsection shall exceed twice the amount of
expenditures or contributions not reported. The candidate and the
candidate's campaign account shall be jointly and severally responsible
for any penalty imposed under this subsection.
(3) Any campaign finance report filed indicating a violation of
section 5 of this act involving an amount in excess of ten percent of
the sum of the adjusted primary election spending limit and the
adjusted general election spending limit for a particular candidate
shall result in disqualification of a candidate or forfeiture of
office.
(4) Any participating candidate adjudged to have committed a
knowing violation of section 5 of this act shall repay from the
candidate's personal money to the Washington clean elections account
all money expended from the candidate's campaign account and shall turn
over the candidate's campaign account to the Washington clean elections
account.
(5) All civil penalties collected pursuant to this section shall be
deposited into the account.
NEW SECTION. Sec. 9 (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:
(a) No contributor shall give, and no participating candidate shall
accept, contributions from a contributor exceeding one hundred dollars
during an election cycle;
(b) Early contributions to a participating candidate from all
sources for an election cycle shall not exceed, for a candidate for
governor, forty thousand dollars or, for other candidates, ten percent
of the sum of the original primary election spending limit and the
original general election spending limit;
(c) Qualifying contributions shall not be included in determining
whether the limits in this subsection have been exceeded.
(2) Early contributions specified in subsection (1) of this section
and the candidate's personal money specified in section 5 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 shall be paid to the account.
(3) If a participating candidate has a debt from an election
campaign in this state during a previous election cycle in which the
candidate was not a participating candidate, then, during the
exploratory period only, the candidate may accept, in addition to early
contributions specified in subsection (1) of this section,
contributions subject to campaign contribution limitations for
nonparticipating candidates, or may exceed the limit on personal money
in section 5 of this act, if such contributions and money are used
solely to retire such debt.
NEW SECTION. Sec. 10 (1) A candidate, or any other person acting
on behalf of a candidate, who knowingly violates section 5 of this act
is guilty of a gross misdemeanor.
(2) Any person who knowingly pays any thing of value or any
compensation for a qualifying contribution is guilty of a gross
misdemeanor.
(3) Any person who knowingly provides false or incomplete
information on a report filed under section 18 of this act is guilty of
a gross misdemeanor.
NEW SECTION. Sec. 11 (1) During the qualifying period, a
participating candidate may collect qualifying contributions, which
shall be paid to the account.
(2) Qualifying contributions must be accompanied by a three-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 shall be given as a receipt to the
contributor, and another copy shall be retained by the candidate's
campaign committee. Delivery of an original reporting slip to the
commission excuses the candidate from disclosure of these contributions
on campaign finance reports filed under this chapter and chapter 42.17
RCW.
NEW SECTION. Sec. 12 (1) A participating candidate shall conduct
all financial activity through a single campaign account of the
candidate's campaign committee. A participating candidate shall not
make any deposits into the campaign account other than qualifying and
early contributions.
(2) A candidate may designate other persons with authority to
withdraw funds from the candidate's campaign account. The candidate
and any person so designated shall sign a joint statement under oath
promising to comply with the requirements of this chapter.
(3) The candidate or a person authorized under subsection (2) of
this section shall pay money from a participating candidate's campaign
account directly to the person providing goods or services to the
campaign and shall identify, on a report filed under this chapter or
chapter 42.17 RCW, the full name and street address of the person and
the nature of the goods and services and compensation for which payment
has been made. However, a campaign committee may establish one or more
petty cash accounts, which in aggregate shall not exceed one thousand
dollars at any time. No single expenditure shall be made from a petty
cash account exceeding one hundred dollars.
(4) Money in a participating candidate's campaign account shall not
be used to pay fines or civil penalties, for costs or legal fees
related to representation before the commission, or for defense of any
enforcement action under this chapter. Nothing in this subsection
prevents a participating candidate from having a legal defense fund.
NEW SECTION. Sec. 13 (1) A candidate who has made an application
for certification may also apply, in accordance with subsection (2) of
this section, to receive funds from the account instead of receiving
private contributions.
(2) To receive clean campaign funding, the candidate must present
to the commission within one week after the end of the qualifying
period a list of names of persons who have made qualifying
contributions on behalf of the candidate. The list shall be divided by
county. At the same time, the candidate must tender to the commission
the original reporting slips identified in section 11(3) 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 fund.
(3) The commission shall select at random a sample of five percent
of the number of nonduplicative names on the list and forward
facsimiles of the selected reporting slips to the secretary of state.
Within ten days, the secretary of state shall provide a report to the
commission identifying as disqualified any slips that are unsigned or
undated or that the recorder 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 multiply the number of slips not disqualified by
twenty and, if the result is greater than one hundred ten percent of
the quantity required, shall approve the candidate for funds. If the
result is less than ninety percent of the quantity required, the
commission shall deny the application for funds. Otherwise, the
commission shall forward facsimiles of all of the slips to the
secretary of state for verification to be checked in accordance with
this section.
(4) To qualify for clean campaign funding, a candidate must have
been approved as a participating candidate and have obtained the
following number of qualifying contributions:
(a) For a candidate for legislature, two hundred;
(b) For a candidate for treasurer, superintendent of public
instruction, state auditor, insurance commissioner, or commissioner of
public lands, one thousand five hundred;
(c) For a candidate for secretary of state, lieutenant governor, or
attorney general, two thousand five hundred; and
(d) For a candidate for governor, four thousand.
NEW SECTION. Sec. 14 (1) At the beginning of the primary
election period, the commission shall pay from the account to the
campaign account of each participating candidate who qualifies for
clean campaign funding:
(a) For a major party candidate who appears on a party primary
ballot, an amount equal to the original primary election spending
limit;
(b) For an independent candidate or minor party candidate who
qualifies to appear on the general election ballot, an amount equal to
seventy percent of the original primary election spending limit; and
(c) For a qualified participating candidate who is unopposed for an
office in that candidate's primary, in the primary of any other party,
by any minor party candidate, and by any opposing independent
candidate, an amount equal to five dollars times the number of
qualifying contributions for that candidate certified by the
commission.
(2) At the beginning of the general election period, the commission
shall pay from the account to the campaign account of each candidate
who qualifies for clean campaign funding:
(a) For a candidate who has been certified to appear on the general
election ballot, an amount equal to the original general election
spending limit; and
(b) For a candidate who is unopposed by any other candidate, an
amount equal to five dollars times the number of qualifying
contributions for that candidate certified by the commission.
NEW SECTION. Sec. 15 (1) When during a primary election period
a report is filed, or other information comes to the attention of the
commission, indicating that a nonparticipating candidate who is not
unopposed in that primary has made expenditures during the election
cycle to date exceeding the original primary election spending limit,
including any previous adjustments, the commission shall immediately
pay from the account to the campaign account of any participating
candidate in the same party primary as the nonparticipating candidate
an amount equal to any excess of the reported amount over the primary
election spending limit, as previously adjusted, and the primary
election spending limit for all such participating candidates shall be
adjusted by increasing it by the amount that the commission is
obligated to pay to a participating candidate.
(2) When during a general election period a report has been filed,
or other information comes to the attention of the commission,
indicating that the amount a nonparticipating candidate who is not
unopposed has received in contributions during the election cycle to
date less the amount of expenditures the nonparticipating candidate
made through the end of the primary election period exceeds the
original general election spending limit, including any previous
adjustments, the commission shall immediately pay from the account to
the campaign account of any participating candidate qualified for the
ballot and seeking the same office as the nonparticipating candidate an
amount equal to any excess of the reported difference over the general
election spending limit, as previously adjusted, and the general
election spending limit for all such participating candidates shall be
adjusted by increasing it by the amount that the commission is
obligated to pay to a participating candidate.
(3) For the purposes of subsections (1) and (2) of this section the
following expenditures reported under this chapter shall be treated as
follows:
(a) Independent expenditures against a participating candidate
shall be treated as expenditures of each opposing candidate, for the
purposes of subsection (1) of this section, or contributions to each
opposing candidate, for the purposes of subsection (2) of this section;
(b) Independent expenditures in favor of one or more
nonparticipating opponents of a participating candidate shall be
treated as expenditures of those nonparticipating candidates, for the
purposes of subsection (1) of this section, or contributions to those
nonparticipating candidates, for the purposes of subsection (2) of this
section;
(c) Independent expenditures in favor of a participating candidate
shall be treated, for every opposing participating candidate, as though
the independent expenditures were an expenditure of a nonparticipating
opponent, for the purposes of subsection (1) of this section, or a
contribution to a nonparticipating opponent, for the purposes of
subsection (2) of this section;
(d) Expenditures made during the primary election period, by or on
behalf of an independent candidate or a nonparticipating candidate who
is unopposed in a party primary, shall be treated as though they were
made during the general election period, and equalizing funds under
subsection (2) of this section shall be paid at the start of the
general election period;
(e) Expenditures made before the general election period that
consist of a contract, promise, or agreement to make an expenditure
during the general election period resulting in an extension of credit
shall be treated as though they were made during the general election
period, and equalizing funds under subsection (2) of this section shall
be paid at the start of the general election period; and
(f) Expenditures for or against a participating candidate promoting
or opposing more than one candidate who are not running for the same
office shall be allocated by the commission among candidates for
different offices based on the relative size or length and relative
prominence of the reference to candidates for different offices.
(4) If an adjusted spending limit reaches three times the original
spending limit for a particular election, then the commission shall not
pay any further amounts from the account to the campaign account of any
participating candidate, and the spending limit shall not be adjusted
further.
NEW SECTION. Sec. 16 (1) At the end of the primary election
period, a participating candidate shall return to the account all money
in the candidate's campaign account 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 account all money in the candidate's
campaign account 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) A participating candidate shall pay all uncontested and unpaid
bills referenced in this section within 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 money in a candidate's campaign account after
payment of bills shall be returned promptly to the account.
NEW SECTION. Sec. 17 (1) If the commission finds that there is
reason to believe that a person has violated this chapter, the
commission shall serve on that person an order stating with reasonable
particularity the nature of the violation and requiring compliance
within fourteen days. During that period, the alleged violator may
provide any explanation to the commission, comply with the order, or
enter into a public administrative settlement with the commission.
(2) Upon expiration of the fourteen days, if the commission finds
that the alleged violator remains out of compliance, the commission
shall make a public finding to that effect and issue an order assessing
a civil penalty in accordance with section 8 of this act, unless the
commission publishes findings of fact and conclusions of law expressing
good cause for reducing or excusing the penalty. The violator has
fourteen days from the date of issuance of the order assessing the
penalty to appeal to the superior court.
(3) Any candidate in a particular election contest who believes
that any opposing participating candidate has violated this article for
that election may file a complaint with the commission requesting that
action be taken under this section. If the commission fails to make a
finding under subsection (1) of this section within thirty days after
the filing of the complaint, the candidate may bring a civil action in
the superior court to impose the civil penalties prescribed in this
section.
NEW SECTION. Sec. 18 (1) Any filing under this chapter on behalf
of a candidate may be made by the candidate's campaign committee. All
candidates shall deposit any check received by and intended for the
campaign and made payable to the candidate or the candidate's campaign
committee, and all cash received by and intended for the campaign, in
the candidate's campaign account.
(2) Any report filed under this section shall be filed in
electronic format.
(3) During the primary election period and the general election
period, all candidates shall make available for public inspection all
bank accounts, campaign finance reports, and financial records relating
to the candidate's campaign, either by immediate disclosure through
electronic means or at the candidate's campaign headquarters, in
accordance with rules adopted by the commission.
NEW SECTION. Sec. 19 Every two years, the commission shall
modify the primary election spending limit and the dollar values
specified in sections 5(1)(b), 9, and 12(3) of this act to account for
inflation.
NEW SECTION. Sec. 20 A participating candidate shall use funds
in the candidate's campaign account to pay for goods and services for
direct campaign purposes only. A participating candidate's payment
from a campaign account to a political committee or civic organization
is not a contribution if the payment is reasonable in relation to the
value received. Payment of customary charges for services rendered,
such as for printing voter or telephone lists, and payment of not more
than one hundred fifty dollars per person to attend a political event
open to the public or to party members shall be considered reasonable
in relation to the value received.
(2) A participating candidate shall not use funds in the
candidate's campaign account for:
(a) Costs of legal defense in any campaign law enforcement
proceeding;
(b) Personal use, which includes household food items or supplies;
clothing other than items of de minimis value that are used in the
campaign; tuition payments other than those associated with training
campaign staff; mortgage, loan, rent, lease, or utility payments for
any part of any personal residence of the candidate or a member of the
candidate's family except for fair market value payments for real or
personal property owned or leased by the candidate or a member of the
candidate's family that is used for campaign purposes; admission to a
sporting event, concert, theater, or other form of entertainment,
unless part of a specific campaign activity; dues, fees, or gratuities
at a country club, health club, recreational facility, or other
nonpolitical organization, unless they are part of the costs of a
specific fund-raising event that takes place on the organization's
premises; and gifts or donations;
(c) Fixed assets with a value in excess of six hundred dollars.
NEW SECTION. Sec. 21 When any person is found, in any superior
or district court, liable for a civil penalty or guilty of having
committed a crime, there shall be imposed upon that person a penalty
assessment. The assessment shall be in addition to any other penalty
or fine imposed by law and shall be ten percent of the penalty or fine.
The assessment must be paid into the account.
NEW SECTION. Sec. 22 The commission shall adopt rules to
implement this chapter.
Sec. 23 RCW 42.17.095 and 2005 c 467 s 1 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, the oral history, state library, and archives account
under RCW 43.07.380, or the legislative international trade account
under RCW 44.04.270, as specified by the candidate or political
committee; ((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) No candidate or authorized committee may transfer funds to any
other candidate or other political committee; or
(9) Transfer the surplus to the Washington clean elections account.
The disposal of surplus funds under this section shall not be
considered a contribution for purposes of this chapter.
Sec. 24 RCW 42.17.128 and 1993 c 2 s 24 are each amended to read
as follows:
Except as provided in chapter 42.-- RCW (sections 1 through 22 of
this act), public funds, whether derived through taxes, fees,
penalties, or any other sources, shall not be used to finance political
campaigns for state or local office.
NEW SECTION. Sec. 25 Sections 1 through 22 of this act
constitute a new chapter in Title