SENATE BILL REPORT

SB 5186

BYSenators Williams, Pullen, Nelson and Moore

Requiring public disclosure by politically active nonprofit organizations.

Senate Committee on Law & Justice

Senate Hearing Date(s):January 26, 1987; January 27, 1988; January 28, 1988

Majority Report:  That Substitute Senate Bill No. 5186 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Pullen, Chairman; McCaslin, Vice Chairman; Halsan, Nelson, Niemi.

Senate Staff:Jon Carlson (786-7459)

                  January 28, 1988

AS REPORTED BY COMMITTEE ON LAW & JUSTICE, JANUARY 28, 1988

BACKGROUND:

Political committees that have the expectation of receiving contributions or making expenditures in support of, or opposition to, any candidate or ballot proposition are required to comply with the reporting requirements of the Public Disclosure Act.  A political committee may be an individual, partnership, corporation, association, government entity, political party or any other organization, however organized.

Certain organizations are established to rate the qualifications of candidates and elected officials, particularly during the election races.  Although these organizations do not receive contributions or make expenditures with respect to election campaigns, money is spent during the process of rating the candidates.  Also, it is suggested that these qualification ratings constitute political advertising, and thus the organization should be subject to the requirements of the Public Disclosure Act.

SUMMARY:

A "politically active nonprofit organization" is included within the provisions of the Public Disclosure Act.  It is a nonprofit organization which rates the qualifications of any candidate for public office.  It does not include an organization that only rates the voting record of a candidate or only engages in lobbying.

Within two weeks after its organization, a politically active nonprofit corporation is required to file a detailed statement of organization with the Public Disclosure Commission (PDC) and with the county auditor or elections officer of the county in which the treasurer of the organization resides.

In August of each year, the organization must file a report with the PDC listing all contributions of $25 or more and all expenditures of $50 or more.  The duties of the treasurer with respect to the organization's books of account are outlined.

Every employee of a politically active nonprofit organization who receives $500 or more in compensation per year from the organization must file with the PDC a statement of financial affairs for the preceding year.

EFFECT OF PROPOSED SUBSTITUTE:

A politically active nonprofit organization is a nonprofit organization that rates the qualifications of any candidate for public office or recommends support for or opposition to a ballot proposition, with the expectation that these recommendations be made known outside the membership of the organization.

The politically active nonprofit organization is required to file a report with the PDC at the same time that the organization publishes its ratings or recommendations of a candidate or ballot proposition.  The report must include:  (1)  The name and address of each person who pays any fee or due or makes any contribution in the aggregate of $100 or more during the current calendar year; (2) costs associated with the development and publication of the ratings of recommendation; and (3) the names, addresses and titles of the organization's officers or the individuals principally involved in formulating the ratings or recommendations.

Appropriation:    none

Revenue:    none

Fiscal Note:      available

Senate Committee - Testified: Senator Al Williams; Graham Johnson, Public Disclosure Commission; Karen Marchioro, Chair, Washington State Democratic Party; Walter Crowley, Seattle Municipal League