SENATE BILL REPORT

SB 5426

BYSenators Kreidler, Newhouse, DeJarnatt and McCaslin

Reporting broadcast air time on ballot propositions.

Senate Committee on Governmental Operations

Senate Hearing Date(s):February 7, 1989

Senate Staff:Barbara Howard (786-7410); Sam Thompson (786-7754)

AS OF FEBRUARY 7, 1989

BACKGROUND:

During the 1988 election campaign, supporters of Alternative Measure 97B, the legislative companion on toxic waste cleanup to Initiative 97 (an initiative to the Legislature), purchased a considerable amount of television commercial time.  Counsel representing a number of broadcasters advised their clients that the federal "Fairness Doctrine" of the Federal Communications Commission requires contrasting viewpoints be presented to the public on "controversial issues of public importance." 

As a result, supporters of Initiative 97 reported to the Public Disclosure Commission (PDC) that they were granted time ranging from one minute for every four minutes purchased by their opponents to one minute for every seven minutes.  In response to a formal request, PDC issued a declaratory ruling as follows:

!ic8"We therefore hold that under the circumstances set forth above, air time provided without charge in advocacy of Initiative 97 does not constitute a contribution within the meaning of RCW 42.17.020(10) because rather than being voluntary, it is required by the Fairness Doctrine and also because even if this were not the case, federal regulations supercede state law when the two are in conflict."

It has been suggested that the donated broadcast time which is not reportable as a contribution amounts to significant support for Initiative 97.  Under the PDC ruling, the public would not necessarily be informed of the value of the donated commercials.  The Disclosure Commission reported that the supporters of Initiative 97 had agreed to report the amounts voluntarily.

SUMMARY:

Broadcast time provided without charge in a commercial announcement on behalf of or in opposition to a ballot proposition is not a "contribution" as defined in the Public Disclosure Act.  Exceptions for reporting purposes are when:  (a) a broadcaster believes in good faith that federal law, regulation, or policy requires it to provide contrasting viewpoints on a controversial issue of public importance, and (b) the broadcaster decides to present that viewpoint in such commercials.

The imputed value of donated broadcast time must be reported by a campaign treasurer as a resource available to the campaign.  Imputed value is determined by applying the rate or rate card for the time period the broadcast occurred to time purchased by the opposing political committees.  Reporting forms must clearly distinguish such resources from "contributions" as otherwise defined.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested