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                                          ENGROSSED SENATE BILL NO. 6045

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State of Washington                               51st Legislature                              1989 Regular Session

By Senators Smith, Hayner, Amondson, Rasmussen, Anderson, Nelson, Owen, Thorsness, Craswell, Metcalf, McDonald, West and Barr

Read first time 2/24/89 and referred to Committee on  Governmental Operations.

AN ACT Relating to campaign reform; amending RCW 42.17.010, 42.17.020, 42.17.095, 42.17.105, 42.17.130, 42.17.100, 42.17.125, 42.17.067, 42.17.080, 41.04.230, 44.05.020, and 44.05.090; reenacting and amending RCW 42.17.090; adding a new section to chapter 44.05 RCW; adding new sections to chapter 42.17 RCW; creating new sections; repealing RCW 42.17.135; and providing for submission of this act to a vote of the people.

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

        Sec. 1.  Section 1, chapter 1, Laws of 1973 as amended by section 1, chapter 294, Laws of 1975 1st ex. sess. and RCW 42.17.010 are each amended to read as follows:

          It is hereby declared by the sovereign people to be the public policy of the state of Washington:

          (1) That political campaign and lobbying contributions and expenditures be fully disclosed to the public and that secrecy is to be avoided.

          (2) That the people have the right to expect from their elected representatives at all levels of government the utmost of integrity, honesty, and fairness in their dealings, free from bias caused by large corporate and organizational campaign contributions.

          (3) That public perception of a state government dominated by the influence of large, moneyed organizations defeats feelings of individual voter efficacy and is thereby detrimental to the democratic form of government, and that limitations on organizational contributions to state election campaigns are necessary to reduce the ability of organizations to obtain disproportionate influence over the actions and decisions of state government officials.

(4) That the people shall be assured that the private financial dealings of their public officials, and of candidates for those offices, present no conflict of interest between the public trust and private interest.

          (((4))) (5) That our representative form of government is founded on a belief that those entrusted with the offices of government have nothing to fear from full public disclosure of their financial and business holdings, provided those officials deal honestly and fairly with the people.

          (((5))) (6) That public confidence in government at all levels is essential and must be promoted by all possible means.

          (((6))) (7) That public confidence in government at all levels can best be sustained by assuring the people of the impartiality and honesty of the officials in all public transactions and decisions.

          (((7))) (8) That the concept of attempting to increase financial participation of individual contributors in political campaigns is encouraged by the passage of the Revenue Act of 1971 by the Congress of the United States, and in consequence thereof, it is desirable to have implementing legislation at the state level.

          (((8))) (9) That the concepts of disclosure and limitation of election campaign financing are established by the passage of the Federal Election Campaign Act of 1971 by the Congress of the United States, and in consequence thereof it is desirable to have implementing legislation at the state level.

          (((9))) (10) That small contributions by individual contributors are to be encouraged((, and that not requiring the reporting of small contributions may tend to encourage such contributions)).

          (((10))) (11) That the public's right to know of the financing of political campaigns and lobbying and the financial affairs of elected officials and candidates far outweighs any right that these matters remain secret and private.

          (((11))) (12) That, mindful of the right of individuals to privacy and of the desirability of the efficient administration of government, full access to information concerning the conduct of government on every level must be assured as a fundamental and necessary precondition to the sound governance of a free society.

          The provisions of this chapter shall be liberally construed to promote complete disclosure of all information respecting the financing of political campaigns and lobbying, and the financial affairs of elected officials and candidates, and full access to public records so as to assure continuing public confidence of fairness of elections and governmental processes, and so as to assure that the public interest will be fully protected.  In promoting such complete disclosure, however, this chapter shall be enforced so as to insure that the information disclosed will not be misused for arbitrary and capricious purposes and to insure that all persons reporting under this chapter will be protected from harassment and unfounded allegations based on information they have freely disclosed.

        Sec. 2.  Section 2, chapter 1, Laws of 1973 as last amended by section 5, chapter 34, Laws of 1984 and RCW 42.17.020 are each amended to read as follows:

          (1) "Agency" includes all state agencies and all local agencies.  "State agency" includes every state office, department, division, bureau, board, commission, or other state agency.  "Local agency" includes every county, city, town, municipal corporation, quasi-municipal corporation, or special purpose district, or any office, department, division, bureau, board, commission, or agency thereof, or other local public agency.

          (2) "Ballot proposition" means any "measure" as defined by RCW 29.01.110, or any initiative, recall, or referendum proposition proposed to be submitted to the voters of the state or any municipal corporation, political subdivision, or other voting constituency from and after the time when the proposition has been  initially filed with the appropriate election officer of that constituency prior to its circulation for signatures.

          (3) "Campaign depository" means a bank designated by a candidate or political committee pursuant to RCW 42.17.050.

          (4) "Campaign treasurer" and "deputy campaign treasurer" mean the individuals appointed by a candidate or political committee, pursuant to RCW 42.17.050, to perform the duties specified in that section.

          (5) "Candidate" means any individual who seeks election to public office.  An individual shall be deemed to seek election when he first:

          (a) Receives contributions or makes expenditures or reserves space or facilities with intent to promote his candidacy for office; or

          (b) Announces publicly or files for office.

          (6) "Caucus of the state legislature" means the caucus of the members of a major political party in the state house of representatives or in the state senate.

(7) "Commercial advertiser" means any person who sells the service of communicating messages or producing printed material for broadcast or distribution to the general public or segments of the general public whether through the use of newspapers, magazines, television and radio stations, billboard companies, direct mail advertising companies, printing companies, or otherwise.

          (((7))) (8) "Commission" means the agency established under RCW 42.17.350.

          (((8))) (9) "Compensation" unless the context requires a narrower meaning, includes payment in any form for real or personal property or services of any kind:  PROVIDED, That for the purpose of compliance with RCW 42.17.241, the term "compensation" shall not include per diem allowances or other payments made by a governmental entity to reimburse a public official for expenses incurred while the official is engaged in the official business of the governmental entity.

          (((9))) (10) "Continuing political committee" means a political committee that is an organization of continuing existence not established in anticipation of any particular election campaign.

          (((10) "Contribution" includes a loan, gift, deposit, subscription, forgiveness of indebtedness, donation, advance, pledge, payment, transfer of funds between political committees, or transfer of anything of value, including personal and professional services for less than full consideration, but does not include interest on moneys deposited in a political committee's account, ordinary home hospitality and the rendering of "part-time" personal services of the sort commonly performed by volunteer campaign workers, or incidental expenses personally incurred by volunteer campaign workers not in excess of twenty-five dollars personally paid for by the worker.  "Part-time" services, for the purposes of this chapter, means services in addition to regular full-time employment, or, in the case of an unemployed person, services not in excess of twenty hours per week, excluding weekends.  For the purposes of this chapter, contributions other than money or its equivalents shall be deemed to have a money value equivalent to the fair market value of the contribution.  Sums paid for tickets to fund-raising events such as dinners and parties are contributions; however, the amount of any such contribution may be reduced for the purpose of complying with the reporting requirements of this chapter, by the actual cost of consumables furnished in connection with the purchase of the tickets, and only the excess over the actual cost of the consumables shall be deemed a contribution.))

          (11) "Corporation" includes any private or public corporation, whether for profit or not for profit, and any partnership, joint venture, bank, trust company, savings and loan association or company, insurance company, reciprocal or interinsurance exchange, railroad company, cemetery company, government-regulated cooperative, stock company, or abstract and title company.

(12) "Earmarked" means a designation, instruction, or encumbrance, whether direct or indirect, express or implied, or oral or written, that is intended to result in or that does result in all or any part of a contribution being made to a candidate, elected official, or ballot proposition.

(13) "Elected official" means any person elected at a general or special election to any public office, and any person appointed to fill a vacancy in any such office.

          (((12))) (14) "Election" includes any primary, general, or special election for public office and any election in which a ballot proposition is submitted to the voters:  PROVIDED, That an election in which the qualifications for voting include other than those requirements set forth in Article VI, section 1 (Amendment 63) of the Constitution of the state of Washington shall not be considered an election for purposes of this chapter.

          (((13))) (15) "Election campaign" means any campaign in support of or in opposition to a candidate for election to public office and any campaign in support of, or in opposition to, a ballot proposition.

          (((14))) (16) "Election cycle" means the period beginning on the first day of December following the date of the last previous general election for the office or seat which the candidate seeks and ending on November thirtieth following the next general election for the office or seat.  In the case of a special election to fill a vacancy in an office, "election cycle" means the period beginning on the day the vacancy occurs and ending on November thirtieth following the special election.

(17) "Expenditure" includes a payment, contribution, subscription, distribution, loan, advance, deposit, or gift of money or anything of value, and includes a contract, promise, or agreement, whether or not legally enforceable, to make an expenditure.  The term "expenditure" also includes a promise to pay, a payment, or a transfer of anything of value in exchange for goods, services, property, facilities, or anything of value for the purpose of assisting, benefiting, or honoring any public official or candidate, or assisting in furthering or opposing any election campaign. For the purposes of this chapter, agreements to make expenditures, contracts, and promises to pay may be reported as estimated obligations until actual payment is made.  The term "expenditure" shall not include the partial or complete repayment by a candidate or political committee of the principal of a loan, the receipt of which loan has been properly reported, or payment of service charges against a political committee's campaign account.

          (((15))) (18) "Final report" means the report described as a final report in RCW 42.17.080(2).

          (((16))) (19) "Immediate family" includes the spouse, dependent children, and other dependent relatives, if living in the household.

          (((17))) (20) "Labor organization" means a trade association or an organization, agency, association, union, or employee committee that exists for the purpose, in whole or in part, of representing employees in dealings with employers concerning grievances, labor disputes, wages, rates of pay, hours of employment, or conditions of work.

(21) "Legislation" means bills, resolutions, motions, amendments, nominations, and other matters pending or proposed in either house of the state legislature, and includes any other matter that may be the subject of action by either house or any committee of the legislature and all bills and resolutions that, having passed both houses, are pending approval by the governor.

          (((18))) (22) "Lobby" and "lobbying" each mean attempting to influence the passage or defeat of any legislation by the legislature of the state of Washington, or the adoption or rejection of any rule, standard, rate, or other legislative enactment of any state agency under the state administrative procedure act((s)), chapter ((34.04)) 34.05 RCW ((and chapter 28B.19 RCW)).

          (((19))) (23) "Lobbyist" includes any person who lobbies either in his own or another's behalf.

          (((20))) (24) "Lobbyist's employer" means the person or persons by whom a lobbyist is employed and all persons by whom he is compensated for acting as a lobbyist.

          (((21))) (25) "Person" includes an individual, partnership, joint venture, public or private corporation, association, federal, state, or local governmental entity or agency however constituted, candidate, committee, political committee, caucus of the state legislature, political action committee, political party, executive committee thereof, or any other organization or group of persons, however organized.

          (((22))) (26) "Person in interest" means the person who is the subject of a record or any representative designated by that person, except that if that person is under a legal disability, the term "person in interest" means and includes the parent or duly appointed legal representative.

          (((23))) (27) "Political advertising" includes any advertising displays, newspaper ads, billboards, signs, brochures, articles, tabloids, flyers, letters, radio or television presentations, or other means of mass communication, used for the purpose of appealing, directly or indirectly, for votes or for financial or other support in any election campaign.

(28) "Political action committee" means any person (except any major party organization or caucus campaign committee) not running for political office having the expectation of receiving contributions and making expenditures in support of, or opposition to, any candidate or any ballot propositions.

          (((24))) (29) "Political committee" means any person (except a candidate or an individual dealing with his own funds or property) having the expectation of receiving contributions or making expenditures in support of, or opposition to, any candidate or any ballot proposition.

          (((25))) (30) "Public office" means any federal, state, county, city, town, school district, port district, special district, or other state political subdivision elective office.

          (((26))) (31) "Public record" includes any writing containing information relating to the conduct of government or the performance of any governmental or proprietary function prepared, owned, used, or retained by any state or local agency regardless of physical form or characteristics.

          (((27))) (32) "Surplus funds" mean, in the case of a political committee or candidate, the balance of contributions that remain in the possession or control of that committee or candidate subsequent to the election for which  the contributions were received, and that are in excess of the amount necessary to pay remaining debts incurred by the committee or candidate prior to that election.  In the case of a continuing political committee, "surplus funds" mean those contributions remaining in the possession or control of the committee that are in excess of the amount necessary to pay all remaining debts when it makes its final report under RCW 42.17.065.

          (((28))) (33) "Writing" means handwriting, typewriting, printing, photostating, photographing, and every other means of recording any form of communication or representation, including letters, words, pictures, sounds, or symbols, or combination thereof, and all papers, maps, magnetic or paper tapes, photographic films and prints, magnetic or punched cards, discs, drums, and other documents.

          As used in this chapter, the singular shall take the plural and any gender, the other, as the context requires.

NEW SECTION. Sec. 3.     (1) "Contribution" includes a loan, gift, deposit, subscription, forgiveness of indebtedness, donation, advance, pledge, payment, transfer of funds between political committees, or transfer of anything of value, including personal and professional services for less than full consideration, but does not include interest on moneys deposited in a political committee's account, ordinary home hospitality and the rendering of volunteer services, or incidental expenses personally incurred by volunteer campaign workers not in excess of twenty-five dollars personally paid for by the worker volunteer.  "Volunteer", for the purposes of this chapter, means a person who provides services or labor for which the person is not compensated and performed outside the person's normal employment hours, if any.  For the purposes of this chapter, contributions other than money or its equivalents shall be deemed to have a money value equivalent to the fair market value of the contribution.  Sums paid for tickets to fund-raising events such as dinners and parties are contributions; however, the amount of any such contribution may be reduced for the purpose of complying with the reporting requirements of this chapter, by the actual cost of consumables furnished in connection with the purchase of the tickets, and only the excess over the actual cost of the consumables shall be deemed a contribution.

          (2) The contribution of a person controlled by any other person constitutes a contribution by the controlling person.

          (3) A contribution to a person controlled by another person constitutes a contribution to the controlling person.

          (4) In determining whether a person is controlled by any other person for the purposes of subsection (2) or (3) of this section, the following shall, if applicable, be considered:

          (a) Ownership of a controlling interest in voting shares or securities;

          (b) Provisions of bylaws, articles of incorporation, charters, constitutions, or other documents by which one person has the authority, power, or ability to direct another;

          (c) The authority, power, or ability to hire, appoint, discipline, discharge, demote, remove, or influence the decision of the officers or members of an entity;

          (d) Similar patterns or contributions; and

          (e) The extent of the transfer of funds between the persons.

          (5) A contribution received by a candidate or political committee which is returned to the contributor within five days of the date on which it is received by the candidate or committee is not a contribution for the purposes of this chapter.

          (6) Political action committees may only accept contributions from individuals.  Contributions by individuals will be subject to the same limits as contributions by individuals to other political committees.

NEW SECTION. Sec. 4.     No caucus of the state legislature shall form more than one continuing political committee.  The continuing political committee shall be designated as the official caucus campaign committee.

NEW SECTION. Sec. 5.     During the period beginning on the fifteenth day before the date a regular legislative session convenes and continuing thirty days past the date of final adjournment, and during the period beginning on the date a special legislative session convenes and continuing through the date that session adjourns, no state-wide elected official or state legislator may solicit contributions to any state or federal campaign fund or political committee other than to the campaign fund or political committee of a caucus of the state legislature.  This prohibition does not apply to extraordinary legislative sessions held after the close of a filing period for legislative office and before a general election.

NEW SECTION. Sec. 6.     During the period beginning on the fifteenth day before the date a regular legislative session convenes and continuing thirty days past the date of final adjournment, and during the period beginning on the date a special legislative session convenes and continuing through the date that session adjourns, no state-wide elected official, legislator, or political committee for such state-wide official or legislator, may knowingly accept any contribution to any state or federal campaign fund or political committee other than the campaign fund or political committee of a caucus of the legislative members of a major political party.

        Sec. 7.  Section 3, chapter 336, Laws of 1977 ex. sess. as amended by section 8, chapter 147, Laws of 1982 and RCW 42.17.095 are each amended to read as follows:

(1) No candidate or political committee shall transfer funds to any other candidate or political committee.

(2) The surplus funds of a candidate, or of a political committee supporting or opposing a candidate, may only be disposed of in any one or more of the following ways:

          (((1))) (a) Return the surplus to a contributor in an amount not to exceed that contributor's original contribution;

          (((2) Transfer the surplus to the candidate's personal account as reimbursement for lost earnings incurred as a result of that candidate's election campaign.  Such lost earnings shall be verifiable as unpaid salary or, when the candidate is not salaried, as an amount not to exceed income received by the candidate for services rendered during an appropriate, corresponding time period.  All lost earnings incurred shall be documented and a record thereof shall be maintained by the candidate or the candidate's political committee.  The committee shall include a copy of such record when its expenditure for such reimbursement is reported pursuant to RCW 42.17.090;

          (3))) (b) Transfer the surplus to ((one or more candidates or to)) a political ((committee or)) party;

          (((4))) (c) Donate the surplus to a charitable organization registered in accordance with chapter 19.09 RCW;

          (((5))) (d) Transmit the surplus to the state treasurer for deposit in the general fund; or

          (((6))) (e) Hold the surplus in the campaign depository or depositories designated in accordance with RCW 42.17.050 for possible use in a future election campaign, for ((political activity, for community activity, or for nonreimbursed public office related expenses)) the same office last sought by the candidate and report any such disposition in accordance with RCW 42.17.090:  PROVIDED, That if the candidate subsequently announces or publicly files for office, information as appropriate is reported to the commission in accordance with RCW 42.17.040 through 42.17.090.  If a subsequent office is not sought the surplus held shall be disposed of in accordance with the requirements of this section.

        Sec. 8.  Section 1, chapter 176, Laws of 1983 as last amended by section 2, chapter 228, Laws of 1986 and RCW 42.17.105 are each amended to read as follows:

          (1) Campaign treasurers shall prepare and deliver to the commission a special report regarding any contribution or expenditure which:

          (a) Exceeds five hundred dollars;

          (b) Is from a single person or entity;

          (c) Is received or made before a primary or general election; and

          (d) Is received or made:  (i) After the period covered by the last report required by RCW 42.17.080 and 42.17.090 to be filed before that primary; or (ii) within twenty-one days preceding that general election.

          (2) Any political committee making a contribution which exceeds five hundred dollars shall also prepare and deliver to the commission the special report if the contribution is made before a primary or general election and:  (a) After the period covered by the last report required by RCW 42.17.080 and 42.17.090 to be filed before that primary; or (b) within twenty-one days preceding that general election.

          (3) Except as provided in subsection (4), the special report required by this section shall be delivered in written form, including but not limited to mailgram, telegram, or nightletter.  The special report required by subsection (1) shall be delivered to the commission within forty-eight hours of the time, or on the first working day after, the contribution is received or the expenditure is made by the candidate or campaign treasurer.  The special report required by subsection (2) of this section and RCW 42.17.175 shall be delivered to the commission, and the candidate or political committee to whom the contribution is made, within twenty-four hours of the time, or on the first working day after, the contribution is made.

          (4) The special report may be transmitted orally by telephone to the commission to satisfy the delivery period required by subsection (3) if the written form of the report is also mailed to the commission and postmarked within the delivery period established in subsection (3).

          (5) The special report shall include at least:

          (a) The amount of the contribution or expenditure;

          (b) The date of receipt or expenditure;

          (c) The name and address of the donor;

          (d) The name and address of the recipient; and

          (e) Any other information the commission may by rule require.

          (6) Contributions and expenditures reported under this section shall also be reported as required by other provisions of this chapter.

          (7) The commission shall publish daily a summary of the special reports made under this section and RCW 42.17.175.

          (8) It is a violation of this chapter for ((any person to make, or for any candidate or political committee to accept from any one person, contributions reportable under RCW 42.17.090 in the aggregate exceeding fifty thousand dollars for any campaign for state-wide office or exceeding five thousand dollars for any other campaign subject to the provisions of this chapter within twenty-one days of a general election.  This subsection does not apply to contributions made by, or accepted from, a major political party as defined in RCW 29.01.090.)) a major political party to make, or for any candidate for state-wide office to accept from a major political party, contributions reportable under RCW 42.17.090 in the aggregate exceeding fifty thousand dollars within twenty-one days of a general election.

(9) It is a violation of this chapter for a major political party or a caucus campaign committee to make, or for any candidate for the state senate or state house of representatives to accept from a major political party or a caucus campaign committee, contributions reportable under RCW 42.17.090 in the aggregate exceeding five thousand dollars within twenty-one days of a general election.

NEW SECTION. Sec. 9.     It is a violation of this chapter for any person knowingly to accept an earmarked contribution other than an earmarked contribution from a candidate for the benefit of that candidate.

NEW SECTION. Sec. 10.    Except with respect to loans made in the ordinary course of business, no corporation or labor organization shall make a contribution reportable under RCW 42.17.090 or provide volunteer services that are excluded from the definition of a "contribution" under section 3 of this act to any person, as that term is defined in RCW 42.17.020:  PROVIDED, That nothing in this section shall prevent the establishment and utilization of a separate segregated fund established and funded in accordance with the provisions of 2 U.S.C. Sec. 441b.

        Sec. 11.  Section 13, chapter 1, Laws of 1973 as last amended by section 2, chapter 265, Laws of 1979 ex. sess. and RCW 42.17.130 are each amended to read as follows:

(1) No elective official nor any employee of his office nor any person appointed to or employed by any public office or agency may use or authorize the use of any of the facilities of a public office or agency, directly or indirectly, for the purpose of assisting a campaign for election of any person to any office or for the promotion of or opposition to any ballot proposition.  Facilities of public office or agency include, but are not limited to, use of stationery, postage, machines, and equipment, use of employees of the office or agency during working hours, vehicles, office space, publications of the office or agency, and clientele lists of persons served by the office or agency:  PROVIDED, That the foregoing provisions of this section shall not apply to the following activities:

          (((1))) (a) Action taken at an open public meeting by members of an elected legislative body to express a collective decision, or to actually vote upon a motion, proposal, resolution, order, or ordinance, or to support or oppose a ballot proposition so long as (((a))) (i) any required notice of the meeting includes the title and number of the ballot proposition, and (((b))) (ii) members of the legislative body or members of the public are afforded an approximately equal opportunity for the expression of an opposing view;

          (((2))) (b) A statement by an elected official in support of or in opposition to any ballot proposition at an open press conference or in response to a specific inquiry;

          (((3))) (c) Activities which are part of the normal and regular conduct of the office or agency.

(2) For purposes of this section, a state legislator's mailing at state expense of more than one thousand cumulative identical or nearly identical letters, brochures, or other pieces of literature in the twelve-month period preceding the expiration of his or her term, when not in response to a constituent request for a response or information, constitutes use of the facilities of a public office for the purpose of assisting a campaign.

NEW SECTION. Sec. 12.    (1)(a) Except as otherwise provided in this section or in section 9 of this act, no person shall make contributions reportable under RCW 42.17.090:

          (i) To any candidate for state office in the aggregate exceeding two thousand five hundred dollars for any campaign subject to the provisions of this chapter within a single election cycle;

          (ii) To any caucus of the state legislature or political committee in the aggregate exceeding two thousand five hundred dollars in any single calendar year; or

          (iii) To any political party in the aggregate exceeding five thousand dollars in any single calendar year.

          (b) Notwithstanding (a) of this subsection, no political party shall make contributions reportable under RCW 42.17.090:

          (i) To any candidate for state-wide office which, when combined with all other contributions from political parties to the same candidate, in the aggregate exceed two hundred fifty thousand dollars in a single election cycle;

          (ii) To any candidate for the state senate which, when combined with all other contributions from political parties to the same candidate, in the aggregate exceed twenty-five thousand dollars in a single election cycle; or

          (iii) To any candidate for the state house of representatives which, when combined with all other contributions from political parties to the same candidate, in the aggregate exceed twenty-five thousand dollars in a single election cycle.

          (c) Notwithstanding (a) of this subsection, no caucus of the state legislature shall make contributions reportable under RCW 42.17.090:

          (i) To any candidate for the state senate in the aggregate exceeding twenty-five thousand dollars in a single election cycle; or

          (ii) To any candidate for the state house of representatives in the aggregate exceeding twenty-five thousand dollars in a single election cycle.

          (d) Notwithstanding (a) of this subsection, no political action committee shall make contributions reportable under RCW 42.17.090 to any candidate, elected official, political party, caucus of the state legislature, or in the support of, or in opposition to a ballot proposition, in the aggregate exceeding one hundred dollars in any single calendar year.

          (e) Notwithstanding (a) of this subsection, no person residing outside of the state of Washington shall make contributions reportable under RCW 42.17.090 to any candidate, elected official, caucus campaign committee, or in the support of, or in opposition to a ballot proposition, in the aggregate exceeding five hundred dollars in any election cycle.

          (2) It is a violation of this chapter for any person, as that term is defined in RCW 42.17.020, to contribute, or for any person to accept, amounts in excess of the limitations imposed by this section.

          (3) For purposes of the limitations provided by this section, all contributions made by political committees established, financed, maintained, or controlled by any corporation, labor organization, or any other person, including any parent, subsidiary, branch, division, department, or local unit of such corporation, labor organization, or any other person, or by any group of such persons, shall be considered to have been made by a single political committee, except that nothing in this subsection shall limit transfers between political committees of funds raised through joint fund-raising efforts.  In any case in which a corporation and any of its subsidiaries, branches, divisions, departments, or local units, or a labor organization and any of its subsidiaries, branches, divisions, departments, or local units establish, finance, maintain, or control more than one separate segregated fund, all such separate segregated funds shall be treated as a single separate segregated fund for purposes of the limitations provided by this section.

          (4) For purposes of this section:

          (a) Contributions to a named candidate made to any political committee authorized by such candidate to accept contributions on his or her behalf shall be considered to be contributions made to such candidate; and

          (b) (i) Expenditures made by any person in cooperation, consultation, or concert, with, or at the request or suggestion of, a candidate, his or her authorized political committees, or their agents, shall be considered to be a contribution to such candidate; and

          (ii) The financing by any person of the dissemination, distribution, or republication, in whole or in part, of any broadcast or any written, graphic, or other form of campaign materials prepared by the candidate, his or her campaign committees, or their authorized agents shall be considered to be a contribution.

NEW SECTION. Sec. 13.    No corporation or labor organization shall increase the salary of any officer or employee, or give an emolument to any officer, employee, or other person, with the intention that the increase in salary, or the emolument, or any part thereof, be contributed to support any candidate, ballot issue, political party, or political committee.  No corporation or labor organization shall discriminate against any officer or employee in the terms or conditions of employment for the failure to contribute to any candidate, ballot issue, political party, or political committee.  Violation of this section is  punishable as a gross  misdemeanor and by a civil penalty not to exceed five thousand dollars.

NEW SECTION. Sec. 14.    At the beginning of each even-numbered calendar year, the commission shall increase or decrease the amounts of the campaign contribution limitations established in section 11 of this act based on changes in economic conditions as reflected in the inflationary index used by the commission under RCW 42.17.370.  The limitations established by the commission pursuant to this section shall be rounded off by the commission to the nearest ten dollars.  The base year to be used for revisions made under this section is 1989.

        Sec. 15.  Section 10, chapter 1, Laws of 1973 as last amended by section 6, chapter 367, Laws of 1985 and RCW 42.17.100 are each amended to read as follows:

          (1) For the purposes of this section the term "independent campaign expenditure" means any expenditure that is made in support of or in opposition to any candidate or ballot proposition and is not otherwise required to be reported pursuant to RCW 42.17.060, 42.17.065, 42.17.080, or 42.17.090.

           (2) Within ((five days after the date of)) twenty-four hours after making an independent campaign expenditure that by itself or when added to all other such independent campaign expenditures made during the same election campaign by the same person equals one hundred dollars or more, or within ((five days)) twenty-four hours after the date of making an independent campaign expenditure for which no reasonable estimate of monetary value is practicable, whichever occurs first, the person who made the independent campaign expenditure shall file with the commission and the county auditor of the county of residence for the candidate supported or opposed by the independent campaign expenditure (or in the case of an expenditure made in support of or in opposition to a local ballot proposition, the county of residence for the person making the expenditure) an initial report of all independent campaign expenditures made during the campaign prior to and including such date.

           (3) At the following intervals each person who is required to file an initial report pursuant to subsection (2) of this section shall file with the commission and the county auditor of the county of residence for the candidate supported or opposed by the independent campaign expenditure (or in the case of an expenditure made in support of or in opposition to a ballot proposition, the county of residence for the person making the expenditure) a further report of the independent campaign expenditures made since the date of the last report:

           (a) On the twenty-first day preceding the primary and the seventh day preceding the date on which the election is held; and

           (b) Within twenty-one days after the date of the election; and

           (c) On the tenth day of each month in which no other reports are required to be filed pursuant to this section.  However, the further reports required by this subsection (3) shall only be filed if the reporting person has made an independent campaign expenditure since the date of the last previous report filed.

          The report filed pursuant to paragraph (a) of this subsection (3) shall be the final report, and upon submitting such final report the duties of the reporting person shall cease, and there shall be no obligation to make any further reports.

           (4) All reports filed pursuant to this section shall be certified as correct by the reporting person.

           (5) Each report required by subsections (2) and (3) of this section shall disclose for the period beginning at the end of the period for the last previous report filed or, in the case of an initial report, beginning at the time of the first independent campaign expenditure, and ending not more than ((five days))twenty-four hours prior to the date the report is due:

           (a) The name and address of the person filing the report;

           (b) The name and address of each person to whom an independent campaign expenditure was made in the aggregate amount of twenty-five dollars or more, and the amount, date, and purpose of each such expenditure.  If no reasonable estimate of the monetary value of a particular independent campaign expenditure is practicable, it is sufficient to report instead a precise description of services, property, or rights furnished through the expenditure and where appropriate to attach a copy of the item produced or distributed by the expenditure;

           (c) The total sum of all independent campaign expenditures made during the campaign to date; and

           (d) Such other information as shall be required by the commission by rule in conformance with the policies and purposes of this chapter.

        Sec. 16.  Section 6, chapter 336, Laws of 1977 ex. sess. as amended by section 7, chapter 367, Laws of 1985 and RCW 42.17.125 are each amended to read as follows:

(1) Contributions received and reported in accordance with RCW 42.17.060 through 42.17.090 may only be transferred to the personal account of a candidate, or of a campaign treasurer or other individual or expended for such individual's personal use under the following circumstances:

          (((1) Reimbursement for or loans to cover lost earnings incurred as a result of campaigning or services performed for the committee.  Such lost earnings shall be verifiable as unpaid salary, or when the individual is not salaried, as an amount not to exceed income received by the individual for services rendered during an appropriate, corresponding time period.  All lost earnings incurred shall be documented and a record thereof shall be maintained by the individual or the individuals's political committee.  The committee shall include a copy of such record when its expenditure for such reimbursement is reported pursuant to RCW 42.17.090.

          (2))) (a) Reimbursement for direct out-of-pocket election campaign and postelection campaign related expenses made by the individual.  To receive reimbursement from the political committee, the individual shall provide the committee with written documentation as to the amount, date, and description of each expense, and the committee shall include a copy of such information when its expenditure for such reimbursement is reported pursuant to RCW 42.17.090.

          (((3))) (b) Repayment of loans made by the individual to political committees, which repayment shall be reported pursuant to RCW 42.17.090.

(2) Contributions may not be used to reimburse a candidate for loans totalling more than two thousand five hundred dollars made by the candidate to the candidate's own campaign.

NEW SECTION. Sec. 17.    Any contribution received after a general election shall be considered a contribution during the previous election cycle of the person accepting the contribution only to the extent that such contribution is used to pay any debt or obligation incurred to influence the outcome of that election.

        Sec. 18.  Section 9, chapter 112, Laws of 1975-'76 2nd ex. sess. as amended by section 5, chapter 147, Laws of 1982 and RCW 42.17.067 are each amended to read as follows:

          (1) Fund-raising activities which meet the standards of subsection (2) of this section may be reported in accordance with the provisions of this section in lieu of reporting in accordance with RCW 42.17.080(3) as now or hereafter amended.

          (2) A fund-raising activity which is to be reported in accordance with the provisions of this section shall conform with the following standards:

          (a) The income resulting from the conduct of the activity is derived solely from either (i) the retail sale of goods or services at prices which in no case exceed a reasonable approximation of the fair market value of each item or service sold at the activity, or (ii) a gambling operation which is licensed, conducted, or operated in accordance with the provisions of chapter 9.46 RCW and at which in no case is the monetary value of any prize exceeded by the monetary value of any single wager which may be made by a person participating in such activity;

          (b) No person responsible for receiving money at such activity may knowingly accept payment from a single person which would result in a profit to the committee of ((twenty-five)) ten dollars or more unless the name and address of the person making such payment together with the approximate amount of profit to the committee resulting from such payment are disclosed in the report filed pursuant to subsection (4) of this section; and

          (c) Such other standards as shall be established by rule and regulation of the commission to prevent frustration of the purposes of this chapter.

          (3) All funds obtained through the use of a fund-raising activity which conforms with the provisions of subsection (2) of this section shall be deposited within five business days of receipt by the campaign treasurer or deputy campaign treasurer in the same account into which contributions received by the committee are being deposited pursuant to RCW 42.17.060.

          (4) At the time such funds are deposited in accordance with subsection (3) of this section, the campaign treasurer or deputy campaign treasurer making the deposit shall file with the commission a report of the fund-raising activity which shall contain the following information:

          (a) The date on which the activity occurred;

          (b) The location at which the activity occurred;

          (c) A precise description of the fund-raising methods used in the activity;

          (d) A financial statement noting gross receipts and expenses for the activity, including an inventory list where appropriate;

          (e) The monetary value of wagers made and prizes distributed for winning wagers, where appropriate;

          (f) The name and address of each person who contributed goods or services to the committee for sale at the activity if the fair market value of the goods or services contributed equals twenty-five dollars or more in the aggregate from such person, together with a precise description of each item or service contributed and its estimated market value;

          (g) The name and address of each person whose identity can be ascertained and who makes payments to the committee at such activity which result in a profit of twenty-five dollars or more to the committee, together with the approximate amount of profit to the committee which results from such payments; and

          (h) A complete listing of the names and addresses of the persons responsible for conducting the activity.

          (5) The statement required by subsection (4) of this section shall be in duplicate upon a form prescribed by the commission, one copy to be filed by the campaign treasurer with the commission, and one copy to be retained by him for his records.  Each statement shall be certified as correct by the campaign treasurer or deputy treasurer making the deposit.

        Sec. 19.  Section 8, chapter 1, Laws of 1973 as last amended by section 1, chapter 28, Laws of 1986 and RCW 42.17.080 are each amended to read as follows:

          (1) On the day the campaign treasurer is designated, each candidate or political committee shall file with the commission and the county auditor or elections officer of the county in which the candidate resides (or in the case of a political committee supporting or opposing a ballot proposition, the county in which the campaign treasurer resides), in addition to any statement of organization required under RCW 42.17.040 or 42.17.050 as now or hereafter amended, a report of all contributions received and expenditures made prior to that date, if any.

          (2) At the following intervals each campaign treasurer shall file with the commission and the county auditor or elections officer of the county in which the candidate resides (or in the case of a political committee supporting or opposing a ballot proposition, the county in which the campaign maintains its office or headquarters and if there is no office or headquarters then in the county in which the campaign treasurer resides) a report containing the information required by RCW 42.17.090 as now or hereafter amended:

          (a) On the twenty-first day and the seventh day immediately preceding the date on which the election is held; and

          (b) Within twenty-one days after the date of the election:  PROVIDED, That this report shall not be required following a primary election from:

          (i) A candidate whose name will appear on the subsequent general election ballot; or

          (ii) Any continuing political committee; and

          (c) On the tenth day of each month in which no other reports are required to be filed under this section:  PROVIDED, That such report shall only be filed if the committee has received a contribution or made an expenditure in the preceding calendar month and either the total contributions received or total expenditures made since the last such report exceed two hundred dollars.

          When there is no outstanding debt or obligation, and the campaign fund is closed, and the campaign is concluded in all respects, and in the case of a political committee, the committee has ceased to function and has dissolved, the campaign treasurer shall file a final report.  Upon submitting a  final report, the duties of the campaign treasurer shall cease and there shall be no obligation to make any further reports.

          (3) For the period beginning the first day of the fourth month preceding the date on which the special or general election is held and ending on the date of that election, the campaign treasurer shall file with the commission and the appropriate county elections officer a report of each contribution received during that period at the time that contribution is deposited pursuant to RCW 42.17.060(1), as now or hereafter amended.  The report shall contain the name of each person contributing the funds so deposited and the amount contributed by each person:  PROVIDED, That contributions of less ((that [than] twenty-five)) than ten dollars from any one person may be deposited without identifying the contributor.  A copy of the report shall be retained by the campaign treasurer for his records.  In the event of deposits made by a deputy campaign treasurer, the copy shall be forwarded to the campaign treasurer to be retained by him for his records.  Each report shall be certified as correct by the campaign treasurer or deputy campaign treasurer making the deposit.

          (4) The campaign treasurer or candidate shall maintain books of account accurately reflecting all contributions and expenditures on a current basis within five business days of receipt or expenditure.  During the eight days immediately preceding the date of the election the books of account shall be kept current within one business day and shall be open for public inspection for at least two consecutive hours Monday through Friday, excluding legal holidays, between 8:00 a.m. and 8:00 p.m., as specified in the committee's statement of organization filed pursuant to RCW 42.17.040 as now or hereafter amended, at the principal campaign headquarters or, if there is no campaign headquarters, at the address of the campaign treasurer or such other place as may be authorized by the commission.  The campaign treasurer or candidate shall preserve books of account, bills, receipts, and all other financial records of the campaign or political committee for not less than five calendar years following the year during which the transaction occurred.

          (5) All reports filed pursuant to subsections (1) or (2) of this section shall be certified as correct by the candidate and the campaign treasurer.

          (6) Copies of all reports filed pursuant to this section shall be readily available for public inspection for at least two consecutive hours Monday through Friday, excluding legal holidays, between 8:00 a.m. and 8:00 p.m., as specified in the committee's statement of organization filed pursuant to RCW 42.17.040 as now or hereafter amended, at the principal campaign headquarters or, if there is no campaign headquarters, at the address of the campaign treasurer or such other place as may be authorized by the commission.

        Sec. 20.  Section 9, chapter 1, Laws of 1973 as last amended by section 2, chapter 12, Laws of 1986 and by section 1, chapter 228, Laws of 1986 and RCW 42.17.090 are each reenacted and amended to read as follows:

          (1) Each report required under RCW 42.17.080 (1) and (2), as now or hereafter amended, shall disclose for the period beginning at the end of the period for the last report or, in the case of an initial report, at the time of the first contribution or expenditure, and ending not more than five days prior to the date the report is due:

          (a) The funds on hand at the beginning of the period;

          (b) The name and address of each person who has made one or more contributions during the period, together with the money value and date of such contributions and the aggregate value of all contributions received from each such person during the campaign or in the case of a continuing political committee, the current calendar year:  PROVIDED, That the income which results from the conducting of a fund-raising activity which has previously been reported in accordance with RCW 42.17.067 may be reported as one lump sum, with the exception of that portion of such income which was received from persons whose names and addresses are required to be included in the report required by RCW 42.17.067:  PROVIDED FURTHER, That contributions of less than ((twenty-five)) ten dollars in the aggregate from any one person during the election campaign may be reported as one lump sum so long as the campaign treasurer maintains a separate and private list of the names, addresses, and amounts of each such contributor:  PROVIDED FURTHER, That the money value of contributions of postage shall be the face value of such postage;

          (c) Each loan, promissory note, or security instrument to be used by or for the benefit of the candidate or political committee made by any person, together with the names and addresses of the lender and each person liable directly, indirectly or contingently and the date and amount of each such loan, promissory note, or security instrument;

          (d) The name and address of each political committee from which the reporting committee or candidate received, or to which that committee or candidate made, any transfer of funds, together with the amounts, dates, and purpose of all such transfers.  Information regarding the following shall be contained in a separate category of the report bearing the title "Transfer of funds":  Contributions made from the campaign depository of one candidate to the campaign of another candidate; and contributions received by a candidate, or for the campaign of the candidate, from the campaign depository of another candidate;

          (e) All other contributions not otherwise listed or exempted;

          (f) The name and address of each person to whom an expenditure was made in the aggregate amount of fifty dollars or more, and the amount, date, and purpose of each such expenditure;

          (g) The total sum of expenditures;

          (h) The surplus or deficit of contributions over expenditures;

          (i) The disposition made in accordance with RCW 42.17.095 of any surplus funds;

          (j) Such other information as shall be required by the commission by regulation in conformance with the policies and purposes of this chapter; and

          (k) Funds received from a political committee not domiciled in Washington state or not otherwise required to report under this chapter (a "nonreporting committee").  Such funds shall be forfeited to the state of Washington unless the nonreporting committee or the recipient of such funds has filed or within ten days following such receipt shall file with the commission a statement disclosing:  (i) its name and address; (ii) the purposes of the nonreporting committee; (iii) the names, addresses, and titles of its officers or if it has no officers, the names, addresses, and titles of its responsible leaders; (iv) a statement whether the nonreporting committee is a continuing one; (v) the name, office sought, and party affiliation of each candidate in the state of Washington whom the nonreporting committee is supporting, and, if such committee is supporting the entire ticket of any party, the name of the party; (vi) the ballot proposition supported or opposed in the state of Washington, if any, and whether such committee is in favor of or opposed to such proposition; (vii) the name and address of each person residing in the state of Washington or corporation which has a place of business in the state of Washington who has made one or more contributions in the aggregate of ((twenty-five)) ten dollars or more to the nonreporting committee during the current calendar year, together with the money value and date of such contributions; (viii) the name and address of each person in the state of Washington to whom an expenditure was made by the nonreporting committee on behalf of a candidate or political committee in the aggregate amount of ((twenty-five)) ten dollars or more, the amount, date, and purpose of such expenditure, and the total sum of such expenditures; (ix) such other information as the commission may by regulation prescribe, in keeping with the policies and purposes of this chapter.  A nonreporting committee incurring an obligation to file additional reports in a calendar year may satisfy the obligation by filing with the commission a letter providing updating or amending information.

          (2) The campaign treasurer and the candidate shall certify the correctness of each report.

        Sec. 21.  Section 5, chapter 59, Laws of 1969 as last amended by section 19, chapter 107, Laws of 1988 and RCW 41.04.230 are each amended to read as follows:

          Any official of the state authorized to disburse funds in payment of salaries and wages of public officers or employees is authorized, upon written request of the officer or employee, to deduct from the salaries or wages of the officers or employees, the amount or amounts of subscription payments, premiums, contributions, or continuation thereof, for payment of the following:

          (1) Credit union deductions:  PROVIDED, That the credit union is organized solely for public employees:  AND PROVIDED FURTHER, That twenty-five or more employees of a single state agency or a total of one hundred or more state employees of several agencies have authorized such a deduction for payment to the same credit union.

          (2) Parking fee deductions:  PROVIDED, That payment is made for parking facilities furnished by the agency or by the department of general administration.

          (3) U.S. savings bond deductions:  PROVIDED, That a person within the particular agency shall be appointed to act as trustee.  The trustee will receive all contributions; purchase and deliver all bond certificates; and keep such records and furnish such bond or security as will render full accountability for all bond contributions.

          (4) Board, lodging or uniform deductions when such board, lodging and uniforms are furnished by the state, or deductions for academic tuitions or fees or scholarship contributions payable to the employing institution.

          (5) Dues and other fees deductions:  PROVIDED, That the deduction is for payment of membership dues to any professional organization formed primarily for public employees or college and university professors:  AND PROVIDED, FURTHER, That twenty-five or more employees of a single state agency, or a total of one hundred or more state employees of several agencies have authorized such a deduction for payment to the same professional organization.

          (6) Labor or employee organization dues may be deducted in the event that a payroll deduction is not provided under a collective bargaining agreement under the provisions of RCW 41.06.150:  PROVIDED, That twenty-five or more officers or employees of a single agency, or a total of one hundred or more officers or employees of several agencies have authorized such a deduction for payment to the same labor or employee organization:  PROVIDED, FURTHER, That labor or employee organizations with five hundred or more members in state government may have payroll deduction for employee benefit programs.

          (7) ((Voluntary deductions for political committees duly registered with the public disclosure commission and/or the federal election commission:  PROVIDED, That twenty-five or more officers or employees of a single agency or a total of one hundred or more officers or employees of several agencies have authorized such a deduction for payment to the same political committee.

          (8))) Insurance contributions to the authority for payment of premiums under contracts authorized by the state health care authority.

          Deductions from salaries and wages of public officers and employees other than those enumerated in this section or by other law, may be authorized by the director of financial management for purposes clearly related to state employment or goals and objectives of the agency and for plans authorized by the state health care  authority.

          The authority to make deductions from the salaries and wages of public officers and employees as provided for in this section shall be in addition to such other authority as may be provided by law:  PROVIDED, That the state or any department, division, or separate agency of the state shall not be liable to any insurance carrier or contractor for the failure to make or transmit any such deduction.

NEW SECTION. Sec. 22.  A new section is added to chapter 44.05 RCW to read as follows:

          For the purpose of encouraging electoral competition, reducing the financial burden of seeking office in the house of representatives, and preserving the opportunity for community interests, the redistricting commission shall establish single member representative districts.

        Sec. 23.  Section 2, chapter 16, Laws of 1983 and RCW 44.05.020 are each amended to read as follows:

          The definitions set forth in this section apply throughout this chapter, unless the context requires otherwise.

          (1) "Chief election officer" means the secretary of state.

          (2) "Federal decennial census" means the decennial census required by federal law to be prepared by the United States bureau of the census in each year ending in zero.

          (3) "Lobbyist" means an individual required to register with the Washington public disclosure commission pursuant to RCW 42.17.150.

          (4) "Plan" means a plan for legislative and congressional redistricting mandated by Article II, section 43 of the state Constitution.

(5) "Legislative district" means a district from which  either a member of the state senate or state house of representatives is elected.

(6) "District" means a district from which a member of congress, the state senate, or the state house of representatives is elected.

(7) "Senatorial district" means a district established for the purpose of electing a state senator.

(8) "Representative district" means a district established for the purpose of electing a state representative.

(9) "Commission" means the redistricting commission.

        Sec. 24.  Section 9, chapter 16, Laws of 1983 and RCW 44.05.090 are each amended to read as follows:

          In the redistricting plan:

          (1) Districts shall have a population as nearly equal as is practicable, excluding nonresident military personnel, based on the population reported in the federal decennial census.

          (2) To the extent consistent with subsection (1) of this section the commission plan should, insofar as practical, accomplish the following:

          (a) District lines should be drawn so as to coincide with the boundaries of local political subdivisions and areas recognized as communities of interest.  The number of counties and municipalities divided among more than one district should be as small as possible;

          (b) Districts should be composed of convenient, contiguous, and compact territory.  Land areas may be deemed contiguous if they share a common land border or are connected by a ferry, highway, bridge, or tunnel.  Areas separated by geographical boundaries or artificial barriers that prevent transportation within a district should not be deemed contiguous; and

          (c) Whenever practicable, a precinct shall be wholly within a single legislative district.

          (3) In accordance with the provisions of Article II, section 6 of the state Constitution, representative districts shall be uniformly established so that if a senatorial district is divided in the formation of representative districts, all senatorial districts shall be so divided.

          (4) The commission's plan shall not provide for a number of legislative districts different than that established by the legislature.

          (5) The commission shall exercise its powers to provide fair and effective representation and to encourage electoral competition.  The commission's plan shall not be drawn purposely to favor or discriminate against any political party or group.

(6) The commission shall draw two single member representative districts within each senatorial district:  PROVIDED, That

(a) The districts shall be divided according to subsections (1) and (2) of this section;

(b) No representative district shall be drawn which has the effect of diluting the voting strength of any particular community interest.  For the purposes of this chapter, "community interest" may include, but shall not be limited to, the following:

(i) The existence of Indian reservations;

(ii) The concentration of minority populations of either ethnic, racial, or economic origin;

(iii) A specific territory comprised of a disproportionately low population, as compared to a more populous territory within the same legislative district; and

(iv) A rural territory;

(c) All legislative districts shall have two single member representative districts, the senatorial district being denoted by a number and the representative district being denoted by a number and the letter "A" or "B".

NEW SECTION. Sec. 25.    This act shall be submitted to the people for their adoption and ratification, or rejection, at the next succeeding general election to be held in this state, in accordance with Article II, section 1 of the state Constitution, as amended, and the laws adopted to facilitate the operation thereof.

NEW SECTION. Sec. 26.    Sections 3, 4, 5, 6, 9, 10, 12 through 14, 17, 22, and 28 of this act are each added to chapter 42.17 RCW.

NEW SECTION. Sec. 27.    If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 28.    This act may be known and cited as the fair campaign practices act.

NEW SECTION. Sec. 29.  Section 3, chapter 228, Laws of 1986 and RCW 42.17.135 are each repealed.