H-4909              _______________________________________________

                                          SUBSTITUTE HOUSE BILL NO. 1679

                        _______________________________________________

State of Washington                              50th Legislature                              1988 Regular Session

By House Committee on Constitution, Elections & Ethics (originally sponsored by Representatives Locke, Patrick, Belcher, Miller, Rust, Armstrong, Barnes, Brough, Zellinsky, Sanders, O'Brien, May, Valle, Betrozoff, Wineberry, Ferguson, Hankins, Ballard, Cantwell, Silver, D. Sommers, Taylor, Amondson, Padden, H. Sommers, Fuhrman, Lux, Pruitt, P. King, Walker, Fisher, Anderson, Todd, Crane, Unsoeld, Cooper, Rayburn and Brekke;by request of Secretary of State)

Read first time 2/5/88.

AN ACT Relating to political contributions by charitable organizations; and adding a new section to chapter 19.09 RCW.

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

NEW SECTION. Sec. 1.  A new section is added to chapter 19.09 RCW to read as follows:

          (1) No funds solicited by a charitable organization may be used by a charitable organization as a contribution in support of, or in opposition to, any candidate or any ballot proposition unless the charitable organization using the funds for such support or opposition:

          (a) First discloses to the donor that part or all of the contribution may be used in such manner.  The disclosure required by this section shall be conspicuously made in writing to each person or organization solicited before the receipt of the contribution by the charitable organization or the charitable organization's fundraiser or agent.

          (b) Has filed with the secretary of state a statement indicating that the organization expects to receive or expend funds to support or oppose a candidate or a ballot proposition.  The statement shall identify  the maximum percentage of funds raised from solicitations that may be dedicated for use as contributions in support of, or in opposition to, any candidate or ballot proposition.

          (c) Segregates from all other funds raised by solicitations those funds that may be used as a contribution in support of, or in opposition to, any candidate or ballot proposition.  Funds shall be segregated upon receipt, and only upon receipt.  Once deposited to any other account or transferred out of the segregated account, funds shall not be transferred or otherwise redirected in any manner to political contributions.

          (2) Funds segregated to the political account, as provided in subsection (1)(c) of this section, shall be reported to the public disclosure commission, as provided in RCW 42.17.090, and excluded from the report of solicitation activity for the charitable organization, as required under RCW 19.09.075(7), unless, before the close of the organization's accounting year, the funds are transferred from the political account into the general operations or other nonpolitical accounts of the charitable organization.