SENATE BILL REPORT

SB 5167

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

Revising campaign finance reporting.

Senate Committee on Law & Justice

Senate Hearing Date(s):January 30, 1989; February 23, 1989

Majority Report:  Do pass.

      Signed by Senators Pullen, Chairman; McCaslin, Vice Chairman; Hayner, Madsen, Nelson, Newhouse, Niemi, Rasmussen, Rinehart, Talmadge, Thorsness.

Senate Staff:Jon Carlson (786-7459)

                  April 14, 1989

House Committe on State Government

AS PASSED SENATE, MARCH 15, 1989

BACKGROUND:

The Public Disclosure Commission (PDC) has identified provisions in the campaign finance reporting sections of the Public Disclosure Act that are in need of revision.  These pertain to contributor thresholds, pre-election and post-election reporting dates, fund-raising activities, earmarked contributions, and several other areas of concern.  In addition, some technical improvements to the language are suggested.

SUMMARY:

The campaign finance provisions of the Public Disclosure Act are revised in a number of areas.

Thresholds:  The threshold for campaign contributions that may be deposited without identifying the contributor is raised from $25 to $50 or $100 depending on the nature of the contribution.  The expenditure reporting threshold is increased to an amount in excess of $50, and the reporting threshold for unpaid orders and debts is increased from $50 to $250.

Reporting Dates:  The 21-day post-election report is changed to the tenth of the month after the election. The time periods for the closing of pre-election and post-election reports are included:  for the 21-day pre-election report, books are closed five days before filing; for the 7-day pre-election report, one day before filing.  The tenth of the month reports are closed the last day of the preceding month.

Fund Raising Activities:  Reporting of all fund-raising activities may be consolidated on two forms.  Included among the fund-raising activities that may be reported on the special forms are events where the ticket price is no more than $25, and auctions where no item value is more than $50.

Last Minute and Earmarked Contributions:  Last minute contributions over $500 may be initially phoned in to the PDC to satisfy the notification requirement of the special report.  A written report containing the same information must subsequently be filed with the PDC.

The special report form for earmarked contributions is eliminated.  Earmarked contributions are now identified on the regular reporting forms.  The filing of a post-election receipt and expenditure summary by intermediary committees is required.  In addition, an earmarked contribution must be spent in accordance with the wishes of the contributor.

Other Revisions:  Additional changes include deleting the special report for candidate to candidate transfers of funds; requiring a political action committee rather than the recipient to file a report of out-of-state contributions; requiring political committees formed within three weeks before an election to register within three days; and redefining "volunteer services" to mean those services for which a person is not paid and those performed outside of the person's normal work hours, if any.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested January 25, 1989

Senate Committee - Testified: Graham Johnson, Public Disclosure Commission (pro); Ruth Beck, member, Public Disclosure Commission (pro)

HOUSE AMENDMENT:

The requirement that "volunteer services" include services or labor performed outside of the person's normal employment hours is deleted.

Contributions of not more than $25 may be deposited without identifying the contributor.

The requirements for the special report pertaining to fund raisers are altered.  A candidate or committee may not knowingly accept more than $50 in payments from any one person at or for such an event without reporting the name and address of the person and the amount accepted as part of the reports filed for other campaign contributions and expenditures.

The reporting provisions for transfers of funds are changed to only require the name and address of each candidate or political committee to which any transfer of funds is made.

Each expenditure which must be reported by a candidate for state executive or legislative office falls under one of the following categories:  (a) expenditures for the election of the candidate; (b) expenditures for nonreimbursable public office related expenditures; (c) transfer of funds; and (d) expenditures of surplus funds and other expenditures.

The current requirement that the written form of the special reports (required for contributions of more than $500 made near the time of a primary or election) be promptly transmitted to the Public Disclosure Commission is reinstated.

An earmarked contribution must be included in a special report entitled "Earmarked Contributions."  The report must be transmitted to the commission and the candidate or committee within two working days of receipt of the contribution.