5400-S2

AN ACT Relating to campaign contribution and spending limits; amending RCW 42.17.610, 42.17.620, 42.17.390, 42.17.395, 42.17.640, 42.17.660, 42.17.680, and 42.17.690; adding new sections to chapter 42.17 RCW; adding a new section to chapter 29.80 RCW; prescribing penalties; 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. RCW 42.17.610 and 1993 c 2 s 1 (Initiative Measure No. 134) are each amended to read as follows:

The people of the state of Washington find and declare that:

(1) The financial strength of certain individuals or organizations should not permit them to exercise a disproportionate or controlling influence on the election of candidates.

(2) Rapidly increasing political campaign costs have led many candidates to raise larger percentages of money from special interests with a specific financial stake in matters before state government. This has caused the public perception that decisions of elected officials are ((~~being improperly influenced~~)) subject to corruption by large monetary contributions from wealthy individuals or organizations with common interests.

(3) Candidates are raising less money in small contributions from individuals and more money from special interests. This has created the public perception that individuals have an insignificant role to play in the political process.

Sec. 2. RCW 42.17.620 and 1993 c 2 s 2 (Initiative Measure No. 134) are each amended to read as follows:

By limiting campaign contributions and by providing incentives for candidates to voluntarily limit their own campaign spending, the people intend to:

(1) Ensure that all individuals and interest groups have fair and equal opportunity to influence elective and governmental processes;

(2) Reduce the influence of large individual, corporate, or organizational contributors; and

(3) Restore public trust in governmental institutions and the electoral process.

NEW SECTION. Sec. 3. (1) This section applies to contributions to a candidate, state official, or political committee who has failed to file a statement of acceptance of voluntary expenditure limits within the time limits set forth in section 5 of this act.

(2) A candidate for a state office may not accept from any person contributions that in the aggregate exceed ten percent of the contribution limits as provided for in section 4 of this act.

(3) A state official against whom recall charges have been filed, and a political committee having the expectation of making expenditures in support of the recall of the state official, may not accept from any person contributions that in the aggregate exceed ten percent of the contribution limits otherwise provided for in this chapter.

NEW SECTION. Sec. 4. (1) This section applies to contributions to a candidate, state official, or political committee who has filed a statement of acceptance of voluntary expenditure limits within the time limits set forth in section 5 of this act.

(2) A candidate for a state legislative office may not accept, from any person other than a bona fide political party or caucus of the state legislature, contributions that in the aggregate exceed five hundred dollars, and a candidate for a state office other than a state legislative office may not accept, from any person other than a bona fide political party or caucus of the state legislature, contributions that in the aggregate exceed one thousand dollars, for each election in which the candidate is on the ballot or appears as a write-in candidate. Contributions made with respect to a primary may not be accepted after the date of the primary. Contributions made with respect to a general election may not be accepted after the final day of the applicable election cycle.

(3) A state official against whom recall charges have been filed, and a political committee having the expectation of making expenditures in support of the recall of the state official, may not accept, from any person other than a bona fide political party or caucus of the state legislature, contributions during a recall campaign that in the aggregate exceed five hundred dollars if the official is a state legislator or one thousand dollars if the official holds a state office other than state legislator.

(4)(a) Notwithstanding subsection (2) of this section, a candidate during an election cycle may not accept contributions from a bona fide political party or caucus of the state legislature that in the aggregate exceed: (i) Fifty cents multiplied by the number of registered voters in the jurisdiction from which the candidate is seeking election if the contributor is a caucus of the state legislature or the state governing body of a political party; or (ii) twenty-five cents multiplied by the number of registered voters in the jurisdiction from which the candidate is seeking election if the contributor is a county central committee or a legislative district committee.

(b) A candidate may not accept contributions from a county central committee or a legislative district committee during an election cycle that, when combined with contributions from other county central committees or legislative district committees, would in the aggregate exceed twenty-five cents times the number of registered voters in the jurisdiction from which the candidate is elected.

(5)(a) Notwithstanding subsection (3) of this section, a state official against whom recall charges have been filed, and a political committee having the expectation of making expenditures in support of the state official, may not accept contributions from a bona fide political party or caucus of the state legislature during a recall campaign that in the aggregate exceed: (i) Fifty cents multiplied by the number of eligible registered voters in the jurisdiction entitled to recall the state official if the contributor is a caucus of the state legislature or the governing body of a state organization; or (ii) twenty-five cents multiplied by the number of registered voters in the jurisdiction from which the candidate is seeking election if the contributor is a county central committee or a legislative district committee.

(b) A state official against whom recall charges have been filed, an authorized committee of the official, and a political committee having the expectation of making expenditures in support of the recall of a state official, may not accept contributions from a county central committee or a legislative district committee during an election cycle that when combined with contributions from other county central committees or legislative district committees would in the aggregate exceed twenty-five cents multiplied by the number of registered voters in the jurisdiction from which the candidate is elected.

(6) The contributions allowed under subsection (3) of this section are in addition to those allowed under subsection (2) of this section. The contributions allowed under subsection (5) of this section are in addition to those allowed under subsection (4) of this section.

NEW SECTION. Sec. 5. Within thirty days after becoming a candidate or within three business days of filing for office, whichever is earlier, a candidate for state office shall sign and file with the commission a statement of acceptance or rejection of the voluntary expenditure limits in section 6 of this act. Within thirty days of receiving a contribution, making an expenditure, or reserving space or facilities in connection with a recall of a state official or within three business days of the certification of petitions for the recall, whichever is earlier, a state official whose recall is demanded or a political committee having the expectation of making expenditures in support of a recall shall sign and file with the commission a statement of acceptance or rejection of the voluntary expenditure limits in section 6 of this act. The commission shall provide the form of the statement and agreement by rule. The commission shall index and make available for public inspection and copying a list of the statements of acceptance or rejection filed by candidates.

NEW SECTION. Sec. 6. (1) In accordance with RCW 42.17.690, the commission shall revise expenditure limits applicable in an election cycle for a candidate who files a statement of acceptance under section 5 of this act.

(2) The initial expenditure limits shall be as follows for the following offices and classes of offices:

(a) Governor: Two million dollars;

(b) All other state executive offices: Five hundred thousand dollars;

(d) State representative: Fifty thousand dollars.

NEW SECTION. Sec. 7. (1) It is a violation of this chapter for a person to make a contribution or expenditure in support of or opposition to a candidate other than one within the limits in this chapter or an independent expenditure as defined in RCW 42.17.630.

(2) If a candidate has agreed to expenditure limits under section 5 of this act and: (a) Knowingly accepts a contribution in excess of the amounts allowed; or (b) has encouraged, approved, or collaborated in the making of an unlawful expenditure by another in connection with his or her campaign, the expenditure limit must be reduced by the amount of the unlawful contribution or expenditure.

(3) Payments of candidate filing fees, fees or assessments relating to the primary or general election candidates' pamphlet, or costs incurred in the course of defending against a challenge of a person's eligibility to become a candidate or a motion for injunction under RCW 42.17.390, do not constitute expenditures for the purpose of determining whether a candidate has exceeded an expenditure limit.

NEW SECTION. Sec. 8. (1) A for-profit corporation formed under the laws of this or another state may make a contribution or independent expenditure in support of or opposition to a candidate for state office or state ballot proposition only through a political committee established under this section.

(2) A corporation may expend corporate funds to establish and administer a political committee affiliated with the corporation for the purposes set forth in subsection (1) of this section, and for the solicitation of contributions to the committee.

(3) Contributions and independent expenditures by the political committee shall be made only from contributions solicited from the following persons or their spouses: (a) Stockholders of the corporation; (b) officers and directors of the corporation; or (c) employees of the corporation who have policy-making, managerial, professional, supervisory, or administrative, nonclerical responsibilities.

NEW SECTION. Sec. 9. A new section is added to chapter 29.80 RCW to read as follows:

The secretary of state shall add to each candidates' pamphlet a list of the campaign spending limits recommended by the public disclosure commission for each of the state offices for which the statements of candidates appear in the pamphlet and a brief explanation of the effect of a promise filed with the commission under section 5 of this act.

In preparing the candidates' pamphlet for publication, the secretary of state shall secure from the public disclosure commission its most current list of candidates who have promised to limit spending, in accordance with section 5 of this act. Using this list, the secretary shall add a prominent notice in the candidates' pamphlet which must accompany the statement or photograph of each person on the list. The notice must state: "Has promised to abide by the voluntary spending limit for this campaign." With the statement in the pamphlet of each other candidate for state office, the secretary shall add a prominent notice that states: "Has NOT promised to abide by the voluntary spending limit for this campaign." The notice must accompany the statement or photograph of each such other candidate.

Sec. 10. RCW 42.17.390 and 1993 c 2 s 28 (Initiative Measure No. 134) are each amended to read as follows:

One or more of the following civil remedies and sanctions may be imposed by court order in addition to any other remedies provided by law:

(1) ((~~If the court finds that the violation of any provision of this chapter by any candidate or political committee probably affected the outcome of any election, the result of said election may be held~~)) The court or the legislature, as applicable, shall presume that a material and substantial violation of this chapter has affected the outcome of the election. Unless the presumption is defeated by clear, cogent, and convincing evidence, the court or the legislature, as applicable, shall declare the election void and a special election held within sixty days of such finding. Any action to void an election shall be commenced within one year of the date of the election in question. It is intended that this remedy be imposed freely in all appropriate cases to protect the right of the electorate to an informed and knowledgeable vote.

(2) If any lobbyist or sponsor of any grass roots lobbying campaign violates any of the provisions of this chapter, his registration may be revoked or suspended and he may be enjoined from receiving compensation or making expenditures for lobbying: PROVIDED, HOWEVER, That imposition of such sanction shall not excuse said lobbyist from filing statements and reports required by this chapter.

(3) Any person who violates any of the provisions of this chapter may be subject to a civil penalty of not more than ten thousand dollars for each such violation. However, a person or entity who violates RCW 42.17.640 may be subject to a civil penalty of ten thousand dollars or three times the amount of the contribution illegally made or accepted, whichever is greater. The penalty may not be paid from campaign funds, and solicitations to political committees may not be made in connection with the penalty.

(4) Any person who fails to file a properly completed statement or report within the time required by this chapter may be subject to a civil penalty of ten dollars per day for each day each such delinquency continues.

(5) Any person who fails to report a contribution or expenditure may be subject to a civil penalty equivalent to the amount he failed to report.

(6) Any person who makes an independent expenditure that is unlawful because of the encouragement, approval, or collaboration of a candidate shall be subject to a penalty of up to three times the amount of the unlawful independent expenditure.

(7) The court may enjoin any person to prevent the doing of any act herein prohibited, or to compel the performance of any act required herein.

Sec. 11. RCW 42.17.395 and 1989 c 175 s 91 are each amended to read as follows:

(1) The commission may (a) determine whether an actual violation of this chapter has occurred; and (b) issue and enforce an appropriate order following such determination.

(2) The commission, in cases where it chooses to determine whether an actual violation of this chapter has occurred, shall hold a hearing pursuant to the Administrative Procedure Act, chapter 34.05 RCW, to make such determination. Any order that the commission issues under this section shall be pursuant to such hearing.

(3) In lieu of holding a hearing or issuing an order under this section, the commission may refer the matter to the attorney general or other enforcement agency as provided in RCW 42.17.360.

(4) The person against whom an order is directed under this section shall be designated as the respondent. The order may require the respondent to cease and desist from the activity that constitutes a violation and in addition, or alternatively, may impose one or more of the remedies provided in RCW 42.17.390((~~(1) (b), (c), (d), or (e)~~)) (2), (3), (4), or (5): PROVIDED, That no individual penalty assessed by the commission may exceed one thousand dollars, and in any case where multiple violations are involved in a single complaint or hearing, the maximum aggregate penalty may not exceed two thousand five hundred dollars.

(5) An order issued by the commission under this section shall be subject to judicial review under the Administrative Procedure Act, chapter 34.05 RCW. If the commission's order is not satisfied and no petition for review is filed within thirty days as provided in RCW 34.05.542, the commission may petition a court of competent jurisdiction of any county in which a petition for review could be filed under that section, for an order of enforcement. Proceedings in connection with the commission's petition shall be in accordance with RCW 42.17.397.

Sec. 12. RCW 42.17.640 and 1993 c 2 s 4 (Initiative Measure No. 134) are each amended to read as follows:

(1) ((No person, other than a bona fide political party or a caucus of the state legislature, may make contributions to a candidate for a state legislative office that in the aggregate exceed five hundred dollars or to a candidate for a state office other than a state legislative office that in the aggregate exceed one thousand dollars for each election in which the candidate is on the ballot or appears as a write-in candidate. Contributions made with respect to a primary may not be made after the date of the primary. Contributions made with respect to a general election may not be made after the final day of the applicable election cycle.

(2) No person, other than a bona fide political party or a caucus of the state legislature, may make contributions to a state official against whom recall charges have been filed, or to a political committee having the expectation of making expenditures in support of the recall of the state official, during a recall campaign that in the aggregate exceed five hundred dollars if for a state legislative office or one thousand dollars if for a state office other than a state legislative office.

(3)(a) Notwithstanding subsection (1) of this section, no bona fide political party or caucus of the state legislature may make contributions to a candidate during an election cycle that in the aggregate exceed (i) fifty cents multiplied by the number of eligible registered voters in the jurisdiction from which the candidate is elected if the contributor is a caucus of the state legislature or the governing body of a state organization, or (ii) twenty-five cents multiplied by the number of registered voters in the jurisdiction from which the candidate is elected if the contributor is a county central committee or a legislative district committee.

(b) No candidate may accept contributions from a county central committee or a legislative district committee during an election cycle that when combined with contributions from other county central committees or legislative district committees would in the aggregate exceed twenty-five cents times the number of registered voters in the jurisdiction from which the candidate is elected.

(4)(a) Notwithstanding subsection (2) of this section, no bona fide political party or caucus of the state legislature may make contributions to a state official against whom recall charges have been filed, or to a political committee having the expectation of making expenditures in support of the state official, during a recall campaign that in the aggregate exceed (i) fifty cents multiplied by the number of eligible registered voters in the jurisdiction entitled to recall the state official if the contributor is a caucus of the state legislature of [or] the governing body of a state organization, or (ii) twenty-five cents multiplied by the number of registered voters in the jurisdiction from which the candidate is elected if the contributor is a county central committee or a legislative district committee.

(b) No state official against whom recall charges have been filed, no authorized committee of the official, and no political committee having the expectation of making expenditures in support of the recall of a state official may accept contributions from a county central committee or a legislative district committee during an election cycle that when combined with contributions from other county central committees or legislative district committees would in the aggregate exceed twenty-five cents multiplied by the number of registered voters in the jurisdiction from which the candidate is elected.

~~(5) Notwithstanding subsections (1) through (4) of this section, no person other than an individual, bona fide political party, or~~)) Notwithstanding sections 3 and 4 of this act, a caucus of the state legislature may ((~~make~~)) not accept contributions reportable under this chapter ((~~to a~~)) from any person other than a bona fide political party or a caucus of the state legislature that in the aggregate exceed five hundred dollars in a calendar year ((~~or to~~)). A bona fide political party may not accept contributions reportable under this chapter from any person other than a bona fide political party or a caucus of the state legislature that in the aggregate exceed two thousand five hundred dollars in a calendar year. This subsection does not apply to loans made in the ordinary course of business.

((~~(6)~~)) (2) For the purposes of ((~~RCW 42.17.640 through 42.17.790~~)) this chapter, a contribution to the authorized political committee of a candidate, or of a state official against whom recall charges have been filed, is considered to be a contribution to the candidate or state official.

((~~(7)~~)) (3) A contribution received within the twelve-month period after a recall election concerning a state office is considered to be a contribution during that recall campaign if the contribution is used to pay a debt or obligation incurred to influence the outcome of that recall campaign.

(((8) The contributions allowed by subsection (2) of this section are in addition to those allowed by subsection (1) of this section, and the contributions allowed by subsection (4) of this section are in addition to those allowed by subsection (3) of this section.

~~(9) RCW 42.17.640 through 42.17.790 apply~~)) (4) This chapter applies to a special election conducted to fill a vacancy in a state office. However, the contributions made to a candidate or received by a candidate for a primary or special election conducted to fill such a vacancy shall not be counted toward any of the limitations that apply to the candidate or to contributions made to the candidate for any other primary or election.

((~~(10) Notwithstanding the other subsections of this section, no~~)) (5) A candidate, state official against whom recall charges have been filed, or political committee having the expectation of making expenditures in support of the recall of the official may not accept contributions reportable under this chapter from any corporation or business entity not doing business in Washington state, ((no)) labor union with fewer than ten members who reside in Washington state, ((~~and no~~)) or political committee that has not received contributions of ten dollars or more from at least ten persons registered to vote in Washington state during the preceding one hundred eighty days ((may make contributions reportable under this chapter to a candidate, to a state official against whom recall charges have been filed, or to a political committee having the expectation of making expenditures in support of the recall of the official)). This subsection does not apply to loans made in the ordinary course of business.

((~~(11) Notwithstanding the other subsections of this section, no county central committee or legislative district committee may make contributions reportable under this chapter to~~)) (6) A candidate, state official against whom recall charges have been filed, or political committee having the expectation of making expenditures in support of the recall of a state official may not accept contributions reportable under this chapter from a county central committee or legislative district committee if the county central committee or legislative district committee is outside ((of)) the jurisdiction entitled to elect the candidate or recall the state official.

((~~(12) No person may accept contributions that exceed the contribution limitations provided in this section.~~))

Sec. 13. RCW 42.17.660 and 1993 c 2 s 6 (Initiative Measure No. 134) are each amended to read as follows:

For purposes of this chapter((:

~~(1)~~)), a contribution by a political committee with funds that have all been contributed by one person who exercises exclusive control over the distribution of the funds of the political committee is a contribution by the controlling person.

(((2) Two or more entities are treated as a single entity if one of the two or more entities is a subsidiary, branch, or department of a corporation or a local unit, branch, or affiliate of a trade association, labor union, or collective bargaining association. All contributions made by a person or political committee whose contribution or expenditure activity is financed, maintained, or controlled by a trade association, labor union, collective bargaining organization, or the local unit of a trade association, labor union, or collective bargaining organization are considered made by the same person or entity.))

Sec. 14. RCW 42.17.680 and 1993 c 2 s 8 (Initiative Measure No. 134) are each amended to read as follows:

(1) No employer or labor organization may increase the salary of an officer or employee, or give an emolument to an officer, employee, or other person or entity, with the intention that the increase in salary, or the emolument, or a part of it, be contributed or spent to support or oppose a candidate, state official against whom recall charges have been filed, political party, or political committee.

(2) No employer or labor organization may discriminate against an officer or employee in the terms or conditions of employment for (a) the failure to contribute to, (b) the failure in any way to support or oppose, or (c) in any way supporting or opposing a candidate, ballot proposition, political party, or political committee.

(3) No employer or other person or entity responsible for the disbursement of funds in payment of wages or salaries may withhold or divert a portion of an employee's wages or salaries for contributions to political committees or for use as political contributions except upon the written request of the employee. The request must be made on a form prescribed by the commission informing the employee of the prohibition against employer and labor organization discrimination described in subsection (2) of this section. ((~~The request is valid for no more than twelve months from the date it is made by the employee.~~))

(4) Each person or entity who withholds contributions under subsection (3) of this section shall maintain open for public inspection for a period of no less than three years, during normal business hours, documents and books of accounts that shall include a copy of each employee's request, the amounts and dates funds were actually withheld, and the amounts and dates funds were transferred to a political committee. Copies of such information shall be delivered to the commission upon request.

Sec. 15. RCW 42.17.690 and 1993 c 2 s 9 (Initiative Measure No. 134) are each amended to read as follows:

((At the beginning of each even-numbered calendar year, the commission shall increase or decrease all dollar amounts in this chapter based on changes in economic conditions as reflected in the inflationary index used by the commission under RCW 42.17.370.)) The commission shall, by January 1, 1996, and by January 1st of each even-numbered year thereafter, adopt revisions in the existing contribution and expenditure limits. Revisions must be for the purpose of recognizing: (1) Changes in the number of registered voters state-wide; and (2) economic changes as reflected by an inflationary index recommended by the office of financial management. The revisions must be guided by the change in the index for the two-year period before the date the revision is to be adopted. The new dollar amounts established by the commission under this section shall be rounded off by the commission to amounts as judged most convenient for public understanding and so as to be within ten percent of the target amount equal to the base amount provided in this chapter multiplied by the increase in the inflationary index since December 3, 1992.

NEW SECTION. Sec. 16. Sections 3 through 8 of this act are each added to chapter 42.17 RCW.

NEW SECTION. Sec. 17. 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. 18. If required under section 13, chapter 2, Laws of 1994, 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.