Z-1478               _______________________________________________

                                                   HOUSE BILL NO. 1679

                        _______________________________________________

State of Washington                              50th Legislature                              1988 Regular Session

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 1/22/88 and referred to Committee on Constitution, Elections & Ethics.

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 as a contribution in support of, or in opposition to, any candidate or any ballot proposition unless the charitable organization:

          (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 before the receipt of the contribution by the charitable organization or the charitable organization's fundraiser or agent.

          (b) Has registered with the secretary of state that the organization expects to receive or expend funds to support or oppose any candidate or any ballot proposition.  The registration shall include a statement of 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.