SENATE BILL REPORT

SHB 657

BYHouse Committee on Constitution, Elections & Ethics (originally sponsored by Representatives Fisher, Sanders, H. Sommers, Miller, Lewis, Prince, Jacobsen, Fisch, Taylor, Jesernig, Wang, D. Sommers, Sutherland, Kremen, May, Brough, Ferguson, L. Smith, Cooper, Betrozoff, Hankins and Spanel; by request of Public Disclosure Commission)

Prohibiting false political advertising.

House Committe on Constitution, Elections & Ethics

Senate Committee on Law & Justice

Senate Hearing Date(s):February 25, 1988; February 26, 1988

Majority Report:     Do pass as amended.

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

Senate Staff:Jon Carlson (786-7459)

                February 29, 1988

AS REPORTED BY COMMITTEE ON LAW & JUSTICE, FEBRUARY 26, 1988

BACKGROUND:

A Washington statute regulating political advertising imposes civil liability upon a person who sponsors advertising containing information that the person "knows, or should reasonably be expected to know, to be false."  Since this standard would allow for penalties for negligent sponsorship of false information, it may violate freedom of speech guarantees established in case law.  Negligent misstatements in political campaigns have been held to be constitutionally protected under the First Amendment to the U.S. Constitution.  On the other hand, statements made with knowledge of their falsity or with reckless disregard to their truth or falsity are not constitutionally protected.

SUMMARY:

Persons may not sponsor, with actual malice, political advertising that contains:  a false statement of material fact; a false representation that a candidate is an incumbent; or a false claim stating or implying the endorsement of any person or organization.  Any violation must be proven by clear convincing evidence.

"Actual malice" means to act with knowledge of falsity or reckless disregard as to truth or falsity.

SUMMARY OF PROPOSED SENATE AMENDMENTS:

In addition to the sponsors of political advertising, persons who prepare, or cause to be prepared, false political advertising are also subject to civil liability.  A technical amendment is made concerning liability of broadcasting stations and other media.

A charitable organization is deemed to conduct a false political advertisement if it intends to use funds received from a solicitation as a political contribution and fails to comply with certain written disclosure and reporting requirements.

Funds solicited by a charitable organization may not be used as a contribution in support of, or opposition to, a candidate or ballot proposition unless the charitable organization using the funds: discloses to each person or organization solicited (conspicuously, in writing, and prior to receiving the contribution) that part or all of the contribution may be used in this manner; files a statement with the Secretary of State indicating that the organization expects to receive or expend funds for this purpose and identifying the maximum percentage of funds raised from solicitations that may be dedicated for this purpose; and dedicates, upon receipt, those funds to be used in this manner.  Once funds have been transferred out of the dedicated account or deposited in any other account, they may not be redirected in any manner to political contributions.

Funds dedicated for political contributions must be reported to the Public Disclosure Commission as required by the public disclosure laws for certain candidates and political committees.  The funds must be excluded from the report of solicitation activity filed with the Secretary of State unless, before the close of the accounting year, the funds are transferred into a nonpolitical account of the organization.

Charitable organizations that dedicate no more than 10 percent of funds from solicitations to political contributions must report to the Public Disclosure Commission on a quarterly basis if they have made political contributions or if political contributions of more than $500 are dedicated during that quarter or since the last report. 

Charitable organizations that dedicate more than 10 percent of funds solicited from the public to political contributions must report to the Public Disclosure Commission at the same intervals as other political action committees.

Appropriation:  none

Revenue:   none

Fiscal Note:    none requested

Senate Committee - Testified:   Graham Johnson, Public Disclosure Commission