BILL REQ. #:  Z-0856.1 

Prefiled 12/18/09. Read first time 01/11/10.   Referred to Committee on State Government & Tribal Affairs.

     AN ACT Relating to eliminating provisions for filings at locations other than the public disclosure commission; amending RCW 42.17.040, 42.17.050, 42.17.060, 42.17.065, 42.17.067, 42.17.080, 42.17.100, 42.17.380, and 42.17.450; and repealing RCW 42.17.375 and 42.17.550.

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

Sec. 1   RCW 42.17.040 and 2007 c 358 s 2 are each amended to read as follows:
     (1) Every political committee, within two weeks after its organization or, within two weeks after the date when it first has the expectation of receiving contributions or making expenditures in any election campaign, whichever is earlier, shall file a statement of organization with the commission ((and with the county auditor or elections officer of the county in which the candidate resides, or in the case of any other political committee, the county in which the treasurer resides)). A political committee organized within the last three weeks before an election and having the expectation of receiving contributions or making expenditures during and for that election campaign shall file a statement of organization within three business days after its organization or when it first has the expectation of receiving contributions or making expenditures in the election campaign.
     (2) The statement of organization shall include but not be limited to:
     (a) The name and address of the committee;
     (b) The names and addresses of all related or affiliated committees or other persons, and the nature of the relationship or affiliation;
     (c) The names, addresses, and titles of its officers; or if it has no officers, the names, addresses, and titles of its responsible leaders;
     (d) The name and address of its treasurer and depository;
     (e) A statement whether the committee is a continuing one;
     (f) The name, office sought, and party affiliation of each candidate whom the committee is supporting or opposing, and, if the committee is supporting the entire ticket of any party, the name of the party;
     (g) The ballot proposition concerned, if any, and whether the committee is in favor of or opposed to such proposition;
     (h) What distribution of surplus funds will be made, in accordance with RCW 42.17.095, in the event of dissolution;
     (i) The street address of the place and the hours during which the committee will make available for public inspection its books of account and all reports filed in accordance with RCW 42.17.080;
     (j) Such other information as the commission may by regulation prescribe, in keeping with the policies and purposes of this chapter;
     (k) The name, address, and title of any person who authorizes expenditures or makes decisions on behalf of the candidate or committee; and
     (l) The name, address, and title of any person who is paid by or is a volunteer for a candidate or political committee to perform ministerial functions and who performs ministerial functions on behalf of two or more candidates or committees.
     (3) Any material change in information previously submitted in a statement of organization shall be reported to the commission ((and to the appropriate county elections officer)) within the ten days following the change.

Sec. 2   RCW 42.17.050 and 1989 c 280 s 3 are each amended to read as follows:
     (1) Each candidate, within two weeks after becoming a candidate, and each political committee, at the time it is required to file a statement of organization, shall designate and file with the commission ((and the appropriate county elections officer)) the names and addresses of:
     (a) One legally competent individual, who may be the candidate, to serve as a treasurer; and
     (b) A bank, mutual savings bank, savings and loan association, or credit union doing business in this state to serve as depository and the name of the account or accounts maintained in it.
     (2) A candidate, a political committee, or a treasurer may appoint as many deputy treasurers as is considered necessary and may designate not more than one additional depository in each other county in which the campaign is conducted. The candidate or political committee shall file the names and addresses of the deputy treasurers and additional depositories with the commission ((and the appropriate county elections officer)).
     (3) A candidate may not knowingly establish, use, direct, or control more than one political committee for the purpose of supporting that candidate during a particular election campaign. This does not prohibit: (a) In addition to a candidate's having his or her own political committee, the candidate's participation in a political committee established to support a slate of candidates which includes the candidate; or (b) joint fund-raising efforts by candidates when a separate political committee is established for that purpose and all contributions are disbursed to and accounted for on a pro rata basis by the benefiting candidates.
     (4)(a) A candidate or political committee may at any time remove a treasurer or deputy treasurer or change a designated depository.
     (b) In the event of the death, resignation, removal, or change of a treasurer, deputy treasurer, or depository, the candidate or political committee shall designate and file with the commission ((and the appropriate county elections officer)) the name and address of any successor.
     (5) No treasurer, deputy treasurer, or depository may be deemed to be in compliance with the provisions of this chapter until his name and address is filed with the commission ((and the appropriate county elections officer)).

Sec. 3   RCW 42.17.060 and 1989 c 280 s 4 are each amended to read as follows:
     (1) All monetary contributions received by a candidate or political committee shall be deposited by the treasurer or deputy treasurer in a depository in an account established and designated for that purpose. Such deposits shall be made within five business days of receipt of the contribution.
     (2) Political committees which support or oppose more than one candidate or ballot proposition, or exist for more than one purpose, may maintain multiple separate bank accounts within the same designated depository for such purpose: PROVIDED, That each such account shall bear the same name followed by an appropriate designation which accurately identifies its separate purpose: AND PROVIDED FURTHER, That transfers of funds which must be reported under RCW 42.17.090(1)(((d))) (e) may not be made from more than one such account.
     (3) Nothing in this section prohibits a candidate or political committee from investing funds on hand in a depository in bonds, certificates, tax-exempt securities, or savings accounts or other similar instruments in financial institutions or mutual funds other than the depository: PROVIDED, That the commission ((and the appropriate county elections officer)) is notified in writing of the initiation and the termination of the investment: PROVIDED FURTHER, That the principal of such investment when terminated together with all interest, dividends, and income derived from the investment are deposited in the depository in the account from which the investment was made and properly reported to the commission ((and the appropriate county elections officer)) prior to any further disposition or expenditure thereof.
     (4) Accumulated unidentified contributions, other than those made by persons whose names must be maintained on a separate and private list by a political committee's treasurer pursuant to RCW 42.17.090(1)(b), which total in excess of one percent of the total accumulated contributions received in the current calendar year or three hundred dollars (whichever is more), may not be deposited, used, or expended, but shall be returned to the donor, if his identity can be ascertained. If the donor cannot be ascertained, the contribution shall escheat to the state, and shall be paid to the state treasurer for deposit in the state general fund.
     (5) A contribution of more than fifty dollars in currency may not be accepted unless a receipt, signed by the contributor and by the candidate, treasurer, or deputy treasurer, is prepared and made a part of the campaign's or political committee's financial records.

Sec. 4   RCW 42.17.065 and 2000 c 237 s 1 are each amended to read as follows:
     (1) In addition to the provisions of this section, a continuing political committee shall file and report on the same conditions and at the same times as any other committee in accordance with the provisions of RCW 42.17.040, 42.17.050, and 42.17.060.
     (2) A continuing political committee shall file with the commission ((and the auditor or elections officer of the county in which the committee maintains its office or headquarters and if there is no such office or headquarters then in the county in which the committee treasurer resides)) a report on the tenth day of the month detailing its activities for the preceding calendar month in which the committee has received a contribution or made an expenditure((: PROVIDED, That)). However, such report shall only be filed if either the total contributions received or total expenditures made since the last such report exceed two hundred dollars((: PROVIDED FURTHER, That after January 1, 2002, if the committee files with the commission electronically, it need not also file with the county auditor or elections officer)). The report shall be on a form supplied by the commission and shall include the following information:
     (a) The information required by RCW 42.17.090;
     (b) Each expenditure made to retire previously accumulated debts of the committee; identified by recipient, amount, and date of payments;
     (c) Such other information as the commission shall by rule prescribe.
     (3) If a continuing political committee shall make a contribution in support of or in opposition to a candidate or ballot proposition within sixty days prior to the date on which such candidate or ballot proposition will be voted upon, such continuing political committee shall report pursuant to RCW 42.17.080.
     (4) A continuing political committee shall file reports as required by this chapter until it is dissolved, at which time a final report shall be filed. Upon submitting a final report, the duties of the ((campaign)) treasurer shall cease and there shall be no obligation to make any further reports.
     (5) The ((campaign)) treasurer shall maintain books of account accurately reflecting all contributions and expenditures on a current basis within five business days of receipt or expenditure. During the eight days immediately preceding the date of any election, for which the committee has received any contributions or made any expenditures, the books of account shall be kept current within one business day and shall be open for public inspection in the same manner as provided for candidates and other political committees in RCW 42.17.080(5).
     (6) All reports filed pursuant to this section shall be certified as correct by the ((campaign)) treasurer.
     (7) The ((campaign)) treasurer shall preserve books of account, bills, receipts, and all other financial records of the campaign or political committee for not less than five calendar years following the year during which the transaction occurred.

Sec. 5   RCW 42.17.067 and 1989 c 280 s 6 are each amended to read as follows:
     (1) Fund-raising activities which meet the standards of subsection (2) of this section may be reported in accordance with the provisions of this section in lieu of reporting in accordance with RCW 42.17.080.
     (2) Standards:
     (a) The activity consists of one or more of the following:
     (i) The retail sale of goods or services at a reasonable approximation of the fair market value of each item or service sold at the activity; or
     (ii) A gambling operation which is licensed, conducted, or operated in accordance with the provisions of chapter 9.46 RCW; or
     (iii) A gathering where food and beverages are purchased, where the price of admission or the food and beverages is no more than twenty-five dollars; or
     (iv) A concert, dance, theater performance, or similar entertainment event where the price of admission is no more than twenty-five dollars; or
     (v) An auction or similar sale where the total fair market value of items donated by any person for sale is no more than fifty dollars; and
     (b) No person responsible for receiving money at such activity knowingly accepts payments from a single person at or from such an activity to the candidate or committee aggregating more than fifty dollars unless the name and address of the person making such payment together with the amount paid to the candidate or committee are disclosed in the report filed pursuant to subsection (6) of this section; and
     (c) Such other standards as shall be established by rule of the commission to prevent frustration of the purposes of this chapter.
     (3) All funds received from a fund-raising activity which conforms with subsection (2) of this section shall be deposited within five business days of receipt by the treasurer or deputy treasurer in the depository.
     (4) At the time reports are required under RCW 42.17.080, the treasurer or deputy treasurer making the deposit shall file with the commission ((and the appropriate county elections officer)) a report of the fund-raising activity which shall contain the following information:
     (a) The date of the activity;
     (b) A precise description of the fund-raising methods used in the activity; and
     (c) The total amount of cash receipts from persons, each of whom paid no more than fifty dollars.
     (5) The treasurer or deputy treasurer shall certify the report is correct.
     (6) The treasurer shall report pursuant to RCW 42.17.080 and 42.17.090: (a) The name and address and the amount contributed of each person who contributes goods or services with a fair market value of more than fifty dollars to a fund-raising activity reported under subsection (4) of this section, and (b) the name and address of each person whose identity can be ascertained, and the amount paid, from whom were knowingly received payments to the candidate or committee aggregating more than fifty dollars at or from such a fund-raising activity.

Sec. 6   RCW 42.17.080 and 2008 c 73 s 1 are each amended to read as follows:
     (1) On the day the treasurer is designated, each candidate or political committee shall file with the commission ((and the county auditor or elections officer of the county in which the candidate resides, or in the case of a political committee, the county in which the treasurer resides)), in addition to any statement of organization required under RCW 42.17.040 or 42.17.050, a report of all contributions received and expenditures made prior to that date, if any.
     (2) At the following intervals each treasurer shall file with the commission ((and the county auditor or elections officer of the county in which the candidate resides, or in the case of a political committee, the county in which the committee maintains its office or headquarters, and if there is no office or headquarters then in the county in which the treasurer resides,)) a report containing the information required by RCW 42.17.090:
     (a) On the twenty-first day and the seventh day immediately preceding the date on which the election is held; and
     (b) On the tenth day of the first month after the election; and
     (c) On the tenth day of each month in which no other reports are required to be filed under this section((: PROVIDED, That)). However, such report shall only be filed if the committee has received a contribution or made an expenditure in the preceding calendar month and either the total contributions received or total expenditures made since the last such report exceed two hundred dollars.
     When there is no outstanding debt or obligation, and the campaign fund is closed, and the campaign is concluded in all respects, and in the case of a political committee, the committee has ceased to function and has dissolved, the treasurer shall file a final report. Upon submitting a final report, the duties of the treasurer shall cease and there shall be no obligation to make any further reports.
     The report filed twenty-one days before the election shall report all contributions received and expenditures made as of the end of ((the)) one business day before the date of the report. The report filed seven days before the election shall report all contributions received and expenditures made as of the end of ((the)) one business day before the date of the report. Reports filed on the tenth day of the month shall report all contributions received and expenditures made from the closing date of the last report filed through the last day of the month preceding the date of the current report.
     (3) For the period beginning the first day of the fourth month preceding the date on which the special election is held, or for the period beginning the first day of the fifth month before the date on which the general election is held, and ending on the date of that special or general election, each Monday the treasurer shall file with the commission ((and the appropriate county elections officer)) a report of each bank deposit made during the previous seven calendar days. The report shall contain the name of each person contributing the funds so deposited and the amount contributed by each person. However, contributions of no more than twenty-five dollars in the aggregate from any one person may be deposited without identifying the contributor. A copy of the report shall be retained by the treasurer for his or her records. In the event of deposits made by a deputy treasurer, the copy shall be forwarded to the treasurer for his or her records. Each report shall be certified as correct by the treasurer or deputy treasurer making the deposit.
     (4) ((If a city requires that candidates or committees for city offices file reports with a city agency, the candidate or treasurer so filing need not also file the report with the county auditor or elections officer.
     (5))) The treasurer or candidate shall maintain books of account accurately reflecting all contributions and expenditures on a current basis within five business days of receipt or expenditure. During the eight days immediately preceding the date of the election the books of account shall be kept current within one business day. As specified in the committee's statement of organization filed under RCW 42.17.040, the books of account must be open for public inspection by appointment at the designated place for inspections between 8:00 a.m. and 8:00 p.m. on any day from the eighth day immediately before the election through the day immediately before the election, other than Saturday, Sunday, or a legal holiday. It is a violation of this chapter for a candidate or political committee to refuse to allow and keep an appointment for an inspection to be conducted during these authorized times and days. The appointment must be allowed at an authorized time and day for such inspections that is within twenty-four hours of the time and day that is requested for the inspection.
     (((6))) (5) The treasurer or candidate shall preserve books of account, bills, receipts, and all other financial records of the campaign or political committee for not less than five calendar years following the year during which the transaction occurred.
     (((7))) (6) All reports filed pursuant to subsection (1) or (2) of this section shall be certified as correct by the candidate and the treasurer.
     (((8))) (7) Copies of all reports filed pursuant to this section shall be readily available for public inspection for at least two consecutive hours Monday through Friday, excluding legal holidays, between 8:00 a.m. and 8:00 p.m., as specified in the committee's statement of organization filed pursuant to RCW 42.17.040, at the principal headquarters or, if there is no headquarters, at the address of the treasurer or such other place as may be authorized by the commission.
     (((9) After January 1, 2002, a report that is filed with the commission electronically need not also be filed with the county auditor or elections officer.
     (10))) (8) The commission shall adopt administrative rules establishing requirements for filer participation in any system designed and implemented by the commission for the electronic filing of reports.

Sec. 7   RCW 42.17.100 and 1995 c 397 s 28 are each amended to read as follows:
     (1) For the purposes of this section ((and RCW 42.17.550)) the term "independent expenditure" means any expenditure that is made in support of or in opposition to any candidate or ballot proposition and is not otherwise required to be reported pursuant to RCW 42.17.060, 42.17.080, or 42.17.090. "Independent expenditure" does not include: An internal political communication primarily limited to the contributors to a political party organization or political action committee, or the officers, management staff, and stockholders of a corporation or similar enterprise, or the members of a labor organization or other membership organization; or 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.
     (2) Within five days after the date of making an independent expenditure that by itself or when added to all other such independent expenditures made during the same election campaign by the same person equals one hundred dollars or more, or within five days after the date of making an independent expenditure for which no reasonable estimate of monetary value is practicable, whichever occurs first, the person who made the independent expenditure shall file with the commission ((and the county elections officer of the county of residence for the candidate supported or opposed by the independent expenditure (or in the case of an expenditure made in support of or in opposition to a local ballot proposition, the county of residence for the person making the expenditure))) an initial report of all independent expenditures made during the campaign prior to and including such date.
     (3) At the following intervals each person who is required to file an initial report pursuant to subsection (2) of this section shall file with the commission ((and the county elections officer of the county of residence for the candidate supported or opposed by the independent expenditure (or in the case of an expenditure made in support of or in opposition to a ballot proposition, the county of residence for the person making the expenditure))) a further report of the independent expenditures made since the date of the last report:
     (a) On the twenty-first day and the seventh day preceding the date on which the election is held; and
     (b) On the tenth day of the first month after the election; and
     (c) On the tenth day of each month in which no other reports are required to be filed pursuant to this section. However, the further reports required by this subsection (3) shall only be filed if the reporting person has made an independent expenditure since the date of the last previous report filed.
     The report filed pursuant to paragraph (a) of this subsection (3) shall be the final report, and upon submitting such final report the duties of the reporting person shall cease, and there shall be no obligation to make any further reports.
     (4) All reports filed pursuant to this section shall be certified as correct by the reporting person.
     (5) Each report required by subsections (2) and (3) of this section shall disclose for the period beginning at the end of the period for the last previous report filed or, in the case of an initial report, beginning at the time of the first independent expenditure, and ending not more than one business day before the date the report is due:
     (a) The name and address of the person filing the report;
     (b) The name and address of each person to whom an independent expenditure was made in the aggregate amount of more than fifty dollars, and the amount, date, and purpose of each such expenditure. If no reasonable estimate of the monetary value of a particular independent expenditure is practicable, it is sufficient to report instead a precise description of services, property, or rights furnished through the expenditure and where appropriate to attach a copy of the item produced or distributed by the expenditure;
     (c) The total sum of all independent expenditures made during the campaign to date; and
     (d) Such other information as shall be required by the commission by rule in conformance with the policies and purposes of this chapter.

Sec. 8   RCW 42.17.380 and 1982 c 35 s 196 are each amended to read as follows:
     (((1) The office of the secretary of state shall be designated as a place where the public may file papers or correspond with the commission and receive any form or instruction from the commission.
     (2))) The attorney general, through his office, shall supply such assistance as the commission may require in order to carry out its responsibilities under this chapter. The commission may employ attorneys who are neither the attorney general nor an assistant attorney general to carry out any function of the attorney general prescribed in this chapter.

Sec. 9   RCW 42.17.450 and 1973 c 1 s 45 are each amended to read as follows:
     ((Persons with whom statements or reports or copies of statements or reports are required to be filed under this chapter shall preserve them for not less than six years.)) The commission((, however, shall)) must preserve ((such)) statements or reports required to be filed under this chapter for not less than ten years.

NEW SECTION.  Sec. 10   The following acts or parts of acts are each repealed:
     (1) RCW 42.17.375 (Reports filed with county elections official--Rules governing) and 1983 c 294 s 1; and
     (2) RCW 42.17.550 (Independent expenditure disclosure) and 1993 c 2 s 23.