HOUSE BILL REPORT

SB 5167

BYSenators Pullen, Talmadge, Rasmussen, Newhouse and Vognild; by request of Public Disclosure Commission

Revising campaign finance reporting.

House Committe on State Government

Majority Report:  Do pass with amendments.  (8)

      Signed by Representatives R. Fisher, Chair; Anderson, Vice Chair; Hankins, R. King, Morris, O'Brien, Rector and Sayan.

Minority Report:  Do not pass.  (2)

      Signed by Representatives McLean, Ranking Republican Member; and Silver.

House Staff:Kenneth Hirst (786-7105)

AS PASSED HOUSE APRIL 13, 1989

BACKGROUND:

The public disclosure laws require political committees to file statements of organization with the Public Disclosure Commission and require candidates and political committees to file reports regarding contributions received and expenditures made.  These laws identify items that are to be and are not to be considered as contributions and expenditures for the purposes of the reports.  Persons who make certain independent expenditures must also file reports with the commission.

Special reports must also be filed concerning a contribution received within seven days before a primary or within 21 days before an election if the contribution is more than $500 and is from one person or entity.  The public disclosure laws also limit the size of the contributions that may be made or received within 21 days of an election.

SUMMARY:

The definitions of "contribution" and "expenditure" are altered for the purposes of the public disclosure statutes.  The incidental expenses that may be incurred by a volunteer whose services are not considered to be a contribution are increased to $50 (from $25) and the volunteer services which are not considered to be contributions are altered.  The payment of service charges against the campaign account of a political committee is no longer exempted from being considered an expenditure.

A political committee organized within the last three weeks before a primary or election which expects to participate in the primary or election campaign must file a statement of organization with the Public Disclosure Commission within three days after its organization or when it first has the expectation of receiving contributions or making expenditures in the campaign.

A continuing political committee making a contribution concerning a candidate or ballot proposition within 60 days of the date of the primary or election involved must file on the same dates as are required for other political committees.

CANDIDATE AND COMMITTEE REPORTS.  Provisions of the public disclosure laws regarding the reports of contributions and expenditures that must be filed by candidates and political committees are altered.  The report which is currently due within 21 days after a primary or election is now due on the 10th day of the first month following the primary or election.

Rather than all reports regarding expenditures made and contributions received being current as of five days prior to the date of the report, the report filed 21 days before a primary or election must be current as of the fifth business day before the date of the report, the report due seven days before a primary or election must be current as of the end of the business day before the date of the report, and the report due on the 10th of the month following the primary or election must be current as of the last day of the month of the primary or election.

CONTRIBUTIONS.  The names and addresses of persons contributing $25 or less (rather than those contributing less than $25) need not be included in such a report.  Pledges aggregating less than $100 from any one person need not be reported.

Funds received from an otherwise "nonreporting committee" may not avoid being forfeited to the state as the result of the recipient's filing the necessary disclosure report required of such a committee.  The "nonreporting committee" must file the required report within 10 days of the date the funds are received or the funds are forfeited to the state.  The content of the report is also altered.

FUNDRAISERS.  A simplified report concerning a fundraiser is established and is to be filed at the same time other reports of candidates or committees are filed (rather than on the date receipts from the fundraiser are deposited).  To qualify as a fundraiser for these reports, the fundraising activity must consist of:  the retail sale of goods or services at a reasonable approximation of their fair market value; a gambling operation which is operated in accordance with the provisions of the state's Gambling Act; a gathering where food and beverages are purchased and the price of admission or of the food and beverages is no more than $25; a concert or other entertainment event where the price of admission is no more than $25; or an auction where the total fair market value of items donated by any person is no more than $50.  Not more than $50 may be knowingly accepted from any one person at or from such an activity unless the name and address of the person, along with the amount accepted, are reported.

EARMARKED CONTRIBUTION.  The intermediary who receives an earmarked contribution must send a special report regarding the contribution to the commission and to the person for whom it was earmarked.  The latter person is no longer required to record the receipt of such an earmarked contribution in a special category in the person's reports that are routinely filed with the commission.

EXPENDITURES.  A reportable expenditure by a candidate for state executive or state legislative office must be reported under one of the following categories in reports filed with the commission:  expenditures for the election of the candidate; expenditures for non-reimbursed public office related expenses; transfers of funds; or expenditures of surplus funds or other expenditures.

The names and addresses of persons to whom more than $50 in the aggregate was expended during the period covered by the report (rather than $50 or more in total) must be reported.  The name and address of any person to whom any debt or liability was owed in an amount of more than $250 or in an amount of more than $50 which has been outstanding for more than 30 days must be reported as must the amount of the debt or liability.

INDEPENDENT EXPENDITURES.  Reports required for independent expenditures must be filed on the same dates as required for candidates and political committees.  A report must list the name and address of each person to whom expenditures of more than $50 (rather than $25 or more) in the aggregate were made.

CONTRIBUTION LIMIT WITHIN 21 DAYS OF ELECTION.  An exemption from the provision of the public disclosure law limiting the size of contributions within 21 days of a general election which currently applies to contributions from a major political party is applied instead to contributions from a major Washington state political party.

Fiscal Note:      No Impact.

Effective Date:The bill takes effect on January 1, 1990.

House Committee ‑ Testified For:    Graham Johnson, Public Disclosure Commission.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    The striking amendment retains the concept of simplified reporting for "fun" raisers proposed by the Public Disclosure Commission.

House Committee - Testimony Against:      The commission does not believe the written "special reports" required by the current law and the striking amendment for contributions just before an election are of any value.