BP BHEAD INT H [atlas:bill]

AN ACT Relating to campaign reform; amending RCW 42.17.020, 34.05.310, 42.36.040, 42.17.080, 42.17.065, 42.17.090, 42.17.510, 42.17.040, 42.17.105, 42.17.175, and 42.17.680; adding new sections to chapter 42.17 RCW; creating new sections; repealing RCW 42.17.128; and prescribing penalties.

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

NEW SECTION. Sec. 1. PURPOSE. The purpose of this act is to create a system of clean elections for legislative and gubernatorial campaigns that will improve the integrity of Washington state government by diminishing the influence of special‑interest money, encourage citizen participation in the political process, promote freedom of speech under the United States and Washington constitutions, and refocus campaigns on issues and away from the sources of campaign contributions.

Further, it is the purpose of this act to alter the existing system of campaign finance for legislative and gubernatorial campaigns, which system (1) allows elected officials and challengers to accept large campaign contributions from private interests over which they have or may have governmental jurisdiction; (2) gives incumbents an unhealthy advantage over challengers; (3) hinders many qualified candidates from effectively communicating with voters; (4) effectively suppresses the voices and influence of the vast majority of Washington citizens in favor of a small number of wealthy special interests; (5) undermines public confidence in the integrity of public officials; (6) costs average taxpayers millions of dollars in the form of subsidies and special privileges often provided for large campaign contributors; (7) drives up the cost of running for state office, discouraging otherwise qualified candidates who lack personal wealth or access to special‑interest funding; and (8) requires that elected officials spend too much of their time raising funds rather than representing the public.

PART I‑-VOLUNTARY SPENDING LIMITATIONS AND

RELATED CONTRIBUTION LIMITATIONS

NEW SECTION. Sec. 101. VOLUNTARY LIMITATIONS ON SPENDING AND CONTRIBUTIONS FOR POLITICAL CAMPAIGNS. (1) Notwithstanding any law to the contrary, a participating candidate and a participating candidate's authorized committee:

(a) Shall not accept any contributions, other than a limited number of five‑dollar qualifying contributions as specified in section 104 of this act and early contributions as specified in section 103 of this act, except in the emergency situation specified in section 111(4) of this act;

(b) Shall not expend more than a total of five hundred dollars of the candidate's personal moneys for a candidate for legislature or more than one thousand dollars of the candidate's personal moneys for a candidate for governor;

(d) Shall not make expenditures in the general election period in excess of the general election spending limit; and

(e) Shall comply with section 105 of this act regarding the authorized committee's account and section 110 of this act regarding returning unused moneys to the citizens' clean elections fund.

(2) However, a participating candidate and one or more other candidates for the same office may file a written agreement with the commission agreeing to expenditure limits below those otherwise established under subsection (1) of this section. Each candidate who signs such an agreement is subject to the lower spending limitation and will receive the lower amounts of campaign funding under section 107 of this act.

(3) Any two or more nonparticipating candidates for the same office may file a written agreement with the commission establishing an expenditure limitation for their campaigns. Each candidate who signs such an agreement is subject to this spending limitation and is subject to fines, penalties, and forfeiture of office provided in this chapter for violating this limitation as if the candidate were a participating candidate.

NEW SECTION. Sec. 102. CERTIFICATION AS A PARTICIPATING CANDIDATE. (1) A candidate who wishes to be certified as a participating candidate shall, before the end of the qualifying period, file an application with the commission using a form specified by the commission. The application must identify the candidate, the office that the candidate plans to seek, and the candidate's party, if any, and contain the candidate's signature, under oath, certifying that:

(a) The candidate has complied with the restrictions of section 101(1) of this act during the election cycle to date;

(b) The candidate's campaign committee has filed all campaign finance reports required under this chapter during the election cycle to date that are complete and accurate; and

(c) The candidate will comply with the requirements of section 101(1) of this act during the remainder of the election cycle and, specifically, will not accept private contributions.

(2) The commission shall act on the application within seven days. Unless, within that time, the commission denies an application and provides written reasons that all or part of a certification in subsection (1) of this section is incomplete or untrue, the commission shall certify the candidate as a participating candidate. If the commission denies an application for failure to file all complete and accurate campaign finance reports or failure to make the certification in subsection (1)(c) of this section, the candidate may reapply within two weeks of the commission's decision by filing complete and accurate campaign finance reports and another sworn certification.

(3) A candidate who is certified as a participating candidate may use this designation in campaign materials and will be so designated in the state voters' pamphlet.

NEW SECTION. Sec. 103. LIMITS ON EARLY CONTRIBUTIONS. (1) A participating candidate may accept early contributions only from individuals and only during the exploratory period and the qualifying period, subject to the following limitations:

(a) Notwithstanding any law to the contrary, a contributor may not give contributions exceeding one hundred dollars during an election cycle and a participating candidate may not accept contributions from a contributor exceeding one hundred dollars during an election cycle;

(b) Notwithstanding any law to the contrary, early contributions to a participating candidate from all sources for an election cycle must not exceed, for a candidate for governor, forty thousand dollars or, for a legislative candidate, ten percent of the sum of the primary election spending limit and the general election spending limit; and

(c) Qualifying contributions specified under section 104 of this act will not be included in determining whether the limits in this subsection have been exceeded.

(2) Early contributions specified in subsection (1) of this section and the candidate's personal moneys specified in section 101(1)(b) of this act may be spent only during the exploratory period and the qualifying period. Any early contributions not spent by the end of the qualifying period must be paid to the citizens' clean elections fund.

NEW SECTION. Sec. 104. QUALIFYING CONTRIBUTIONS. (1) During the qualifying period, a participating candidate may collect qualifying contributions, which must be paid to the citizens' clean elections fund.

(2) To qualify as a "qualifying contribution," a contribution must be:

(a) Made by a registered voter who at the time of the contribution was registered in the electoral district of the office the candidate is seeking and who has not given another qualifying contribution to that candidate during that election cycle;

(b) Made by a person who is not given anything of value in exchange for the qualifying contribution;

(d) Received unsolicited during the qualifying period or solicited during the qualifying period by a person who is not employed or retained by the candidate and who is not compensated to collect contributions by the candidate or on behalf of the candidate;

(e) If made by check or money order, made payable to the candidate's authorized committee, or if in cash, deposited in the sole account in the candidate's authorized committee; and

(f) Accompanied by a three‑part reporting slip that includes the printed name, registration address, and signature of the contributor, the name of the candidate for whom the contribution is made, the date, and the printed name and signature of the solicitor.

(3) A copy of the reporting slip must be given as a receipt to the contributor, and another copy must be retained by the candidate's campaign committee. Delivery of the reporting slips to the commission excuses the candidate from disclosure of these contributions on campaign finance reports filed under RCW 42.17.080.

NEW SECTION. Sec. 105. CONTROLS ON A PARTICIPATING CANDIDATE'S AUTHORIZED COMMITTEE. (1) A participating candidate and the participating candidate's authorized committee shall conduct all financial activity through a single account. A participating candidate may not make any deposits into this account other than those permitted under sections 103, 104, and 107 of this act.

(2) A participating candidate and the treasurer of the participating candidate's authorized committee must sign a joint statement under oath promising to comply with the requirements of sections 101 through 117 of this act.

(3) A participating candidate or the treasurer of the participating candidate's authorized committee shall pay moneys from the authorized committee's account directly to the person providing goods or services to the campaign and shall identify, on reports filed under RCW 42.17.080 the full name and street address of the person and the nature of the goods or services and compensation for which payment has been made. However, an authorized committee may establish one or more petty cash accounts, which in aggregate must not exceed one thousand dollars at any time. A single expenditure may not be made from a petty cash account exceeding one hundred dollars. Expenditures from any petty cash accounts must also be included in reports filed under RCW 42.17.080.

(4) Moneys in the account of a participating candidate's authorized committee may not be used to pay fines or civil penalties, for costs or legal fees related to representation before the commission, or for defense of any enforcement action under this chapter. Nothing in this subsection prevents a participating candidate from having a legal defense fund.

NEW SECTION. Sec. 106. QUALIFICATION FOR CLEAN CAMPAIGN FUNDING. (1) A candidate who has applied for certification may also apply, in accordance with subsection (2) of this section, to receive funds from the citizens' clean elections fund, instead of receiving private contributions.

(2) To receive funding from the citizens' clean elections fund, a candidate must present to the commission no later than one week after the end of the qualifying period a list of names of persons who have made qualifying contributions under section 104 of this act on behalf of the candidate. The list must be divided by county. At the same time, the candidate must tender to the commission the original reporting slips identified in section 104 of this act for persons on the list and an amount equal to the sum of the qualifying contributions collected. The commission shall deposit the amount into the citizens' clean elections fund.

(3) The commission shall select at random a sample of five percent of the number of nonduplicative names on the list and forward facsimiles of the selected reporting slips to the county auditor of the counties of the addresses specified in the selected slips. Within ten days, the county auditors shall provide a report to the commission identifying as disqualified any slips that are unsigned or undated or that the auditor is unable to verify as matching a person who is registered to vote, on the date specified on the slip, inside the electoral district of the office the candidate is seeking. The commission shall multiply the number of slips not disqualified by twenty, and if the result is greater than one hundred ten percent of the quantity required, shall approve the candidate for funds, and if the result is less than ninety percent of the quantity required, shall deny the application for funds. Otherwise, the commission shall forward facsimiles of all of the slips to the county auditors for verification, and the county auditors shall check all slips by using the same process.

(4) To qualify for clean campaign funding, a candidate must have been certified as a participating candidate under section 102 of this act and have obtained: (a) Two hundred qualifying contributions for a candidate for the state legislature; or (b) four thousand qualifying contributions for a candidate for governor.

NEW SECTION. Sec. 107. CLEAN CAMPAIGN FUNDING. (1) At the beginning of the primary election period, the commission shall direct the state treasurer to pay from the citizens' clean elections fund to the account of the authorized committee of each candidate who qualifies for clean campaign funding an amount equal to the primary election spending limit.

(2) At any time after the first day of January of an election year and before the regular filing period specified under chapter 29.15 RCW, a candidate who has met the requirements of section 106 of this act may sign and file a declaration of candidacy and pay the filing fee as a candidate for the legislature or governor. The commission shall pay the amount specified under subsection (1) of this section immediately upon the filing of the declaration of candidacy and payment of the filing fee, rather than waiting for the beginning of the primary election period.

(3) At the beginning of the general election period, the commission shall pay from the citizens' clean elections fund to the account of the authorized committee of each candidate who qualifies for clean campaign funding for the general election, except those candidates identified in subsection (1) or (4) of this section, an amount equal to the general election spending limit.

(4) At the beginning of the general election period, the commission shall pay from the citizens' clean elections fund to the campaign account of a qualified participating candidate who has not received funds under subsection (1) of this section and who is unopposed by any other candidate an amount equal to five dollars times the number of qualifying contributions for that candidate certified by the commission.

(5) The general election spending limit, for a candidate who has received funds under subsection (1) or (4) of this section, is equal to the amount that the commission is obligated to pay to that candidate.

NEW SECTION. Sec. 108. EQUAL FUNDING OF CANDIDATES. (1) Whenever during a primary election period a report is filed, or other information comes to the attention of the commission, indicating that a nonparticipating candidate for the same office as a participating candidate has made expenditures during the election cycle to date exceeding the primary election spending limit for the participating candidate, the commission shall immediately pay from the citizens' clean elections fund to the account of the authorized committee of any participating candidate seeking the same office as the nonparticipating candidate, an amount equal to any excess of the reported amount over the primary election spending limit, and the primary election spending limit for all such participating candidates will be adjusted by increasing it by the amount that the commission is obligated to pay to a participating candidate.

(2) Whenever during a general election period a report has been filed, or other information comes to the attention of the commission, indicating that the amount a nonparticipating candidate for the same office as a participating candidate has received in contributions during the election cycle to date less the amount of expenditures the nonparticipating candidate made through the end of the primary election period exceeds the general election spending limit for a participating candidate, the commission shall immediately pay from the citizens' clean elections fund to the account of the authorized committee of any participating candidate qualified for the ballot and seeking the same office as the nonparticipating candidate, an amount equal to any excess of the reported difference over the general election spending limit, and the general election spending limit for all such participating candidates will be adjusted by increasing it by the amount that the commission is obligated to pay to a participating candidate.

(3) For purposes of subsections (1) and (2) of this section the following expenditures reported under sections 101 through 117 of this act will be treated as follows:

(a) Independent expenditures against a participating candidate will be treated as expenditures of each opposing candidate, for purposes of subsection (1) of this section, or contributions to each opposing candidate, for purposes of subsection (2) of this section.

(b) Independent expenditures in favor of one or more nonparticipating opponents of a participating candidate will be treated as expenditures of those nonparticipating candidates, for purposes of subsection (1) of this section, or contributions to those nonparticipating candidates, for purposes of subsection (2) of this section.

(c) Independent expenditures in favor of a participating candidate will be treated, for every opposing participating candidate, as though the independent expenditures were an expenditure of a nonparticipating opponent, for purposes of subsection (1) of this section, or a contribution to a nonparticipating opponent, for purposes of subsection (2) of this section.

(d) Expenditures made before the general election period that consist of a contract, promise, or agreement to make an expenditure during the general election period resulting in an extension of credit will be treated as though made during the general election period, and equalizing funds under subsection (2) of this section will be paid at the start of the general election period.

(e) The commission shall allocate expenditures for or against a participating candidate promoting or opposing more than one candidate who are not running for the same office among candidates for different offices based on the relative size or length and relative prominence of the reference to candidates for different offices.

(4) If the adjusted spending limit reaches three times the spending limit for a particular election, then the commission shall not pay any further amounts from the citizens' clean elections fund to the campaign account of the participating candidate, and the spending limit will not be adjusted further.

NEW SECTION. Sec. 109. LIMITATIONS ON SPENDING FROM THE CITIZENS' CLEAN ELECTIONS FUND. (1) The commission shall not spend, on all costs incurred under sections 101 through 117 of this act during a particular calendar year, more than two dollars and fifty cents times the population of the state during the previous year, as certified by the office of financial management. The commission may exceed this limit during a calendar year, if it is offset by an equal reduction of the limit during another calendar year during the same four‑year period beginning January 1st immediately after a gubernatorial election.

(2) The commission may use up to ten percent of the amount specified in subsection (1) of this section for reasonable and necessary expenses of administration and enforcement of sections 101 through 117 of this act, including the activities specified in section 114 of this act. Any portion of the ten percent not used for this purpose will remain in the fund.

(3) The commission shall apply ten percent of the amount specified in subsection (1) of this section for reasonable and necessary expenses associated with voter education, including the activities specified in section 113(1) of this act.

(4) The state treasurer shall administer a citizens' clean elections fund from which costs incurred under sections 101 through 117 of this act will be paid.

NEW SECTION. Sec. 110. RETURN OF MONEYS TO THE CITIZENS' CLEAN ELECTIONS FUND. (1) At the end of the primary election period, a participating candidate who has received moneys under section 107(1) of this act shall return to the citizens' clean elections fund all moneys in the account of the candidate's authorized committee above an amount sufficient to pay any unpaid bills for expenditures made during the primary election period and for goods or services directed to the primary election.

(2) At the end of the general election period, a participating candidate shall return to the citizens' clean elections fund all moneys in the account of the candidate's authorized committee above an amount sufficient to pay any unpaid bills for expenditures made before the general election and for goods or services directed to the general election.

(3) A participating candidate shall pay all uncontested and unpaid bills referred to in this section no later than thirty days after the primary or general election. A participating candidate shall make monthly reports to the commission concerning the status of the dispute over any contested bills. Any moneys in a candidate's campaign account after payment of bills must be returned promptly to the citizens' clean elections fund.

(4) If a participating candidate is replaced as the result of a vacancy as provided under RCW 29.15.230, and the replacement candidate files an oath with the commission certifying to section 102(1)(c) of this act, the campaign account of the participating candidate will be transferred to the replacement candidate and the commission shall certify the replacement candidate as a participating candidate without requiring compliance with section 106 of this act or the remainder of section 102 of this act. If the replacement candidate does not file such an oath, the account of the authorized committee of the candidate whose position is vacant will be liquidated and all remaining moneys returned to the citizens' clean elections fund.

NEW SECTION. Sec. 111. CITIZENS' CLEAN ELECTIONS FUND. (1) The citizens' clean elections fund is created in the custody of the state treasurer as a fund separate from the state general fund. All receipts from (a) taxes imposed under chapter 82.04 RCW on public relations or advertising services; (b) beginning January 1, 2001, a ten percent surcharge, hereby imposed, on all civil and criminal fines and penalties collected under this chapter; (c) fees imposed on lobbyists under section 112 of this act; (d) amounts returned under section 110 of this act; and (e) amounts turned over under section 115(4) of this act must be deposited into the fund. Expenditures from the fund may be used only as provided by sections 107 through 109 of this act. Only the commission or its designee may authorize expenditures from the fund. The fund is not subject to allotment procedures under chapter 43.88 RCW. All interest earnings and other income obtained from investing money in the fund will remain with the fund, and no portion of these earnings may be returned to the state investment board expense account as otherwise provided under RCW 43.33A.160. An appropriation is not required for expenditures from the fund, including authorized transfers that are made from the fund to the account of the authorized committee of a participating candidate.

(2) At least once per year, the commission shall project the amount of money that the fund will receive over each of the next four years, when this money will become available, and the required expenditures from the fund for each of the next four calendar years. Whenever the commission determines that the fund contains more money than the commission determines is required to meet current debts plus expected expenses, under the assumption that expected expenses will be at the expenditure limit in section 109(1) of this act and taking into account the projections of anticipated revenues, the commission shall designate this money as excess and so notify the state treasurer, who shall transfer the excess money to the state general fund. Whenever the commission determines that the citizens' clean elections fund will not contain sufficient money to meet its current debts plus expected expenses, under the assumption that expected expenses will be at the expenditure limit in section 109(1) of this act and taking into account the projections of anticipated revenues, the commission shall notify the legislature of this projected deficiency. The legislature shall appropriate sufficient money from the general fund into the citizens' clean elections fund necessary to meet this deficiency.

(3) If the legislature fails to appropriate sufficient money to eliminate the projected deficiency, then the commission shall announce the deficiency. The announcement may include specifications for decreases in the following parameters, based on the commission's projections of collections and expenses for the citizens' clean elections fund, made in the following order:

(a) First, the commission may announce a decrease in the adjusted spending limit under section 108(4) of this act from three times to an amount between three and one times.

(b) Next, the commission may announce that the fund will provide equalization money under section 108 (1) and (2) of this act as a fraction of the amounts there specified.

(c) Finally, the commission may announce that the fund will provide money under section 107 of this act as a fraction of the amounts there specified.

(4) If the commission cannot provide participating candidates with all money specified under sections 107 and 108 of this act, as decreased by any announcement under subsection (3) of this section, then the commission shall allocate any reductions in payments proportionately among candidates entitled to money and shall declare an emergency. Upon declaration of an emergency, a participating candidate may accept private contributions to bring the total money received by the candidate from the fund and from such private contributions up to the adjusted spending limits, as decreased by any announcement made under subsection (3) of this section.

NEW SECTION. Sec. 112. LOBBYIST FEES. Beginning on January 1, 2001, an annual fee of one hundred dollars is imposed on each registered lobbyist who represents: (1) One or more persons in connection with a commercial or for‑profit activity except public bodies; or (2) a nonprofit entity predominately composed of or acting on behalf of a trade association or other grouping of commercial or for‑profit entities. The commission shall collect the fee and transmit it to the state treasurer for deposit into the citizens' clean elections fund.

NEW SECTION. Sec. 113. VOTER EDUCATION AND ENFORCEMENT DUTIES. (1) The commission shall sponsor debates among candidates for the legislature and for governor, in such a format, manner, and times as the commission determines. Participating candidates must attend and participate in debates, and the commission may specify by rule penalties for a participating candidate failing to participate in a debate. The commission shall invite nonparticipating candidates to participate in the debates.

(2) The commission shall:

(a) Prescribe forms for reports, statements, notices, and other documents required by sections 101 through 117 of this act;

(b) Prepare and publish instructions setting forth methods of bookkeeping and preservation of records to facilitate compliance with sections 101 through 117 of this act and explaining the duties of persons and committees under sections 101 through 117 of this act;

(c) Adopt rules to implement sections 101 through 117 of this act, but these rules are not subject to the requirements of RCW 34.05.310, and the joint administrative rules review committee may not make these rules subject to RCW 34.05.328;

(d) Enforce sections 101 through 117 of this act, ensure that money from the citizens' clean elections fund that is transferred into the account of an authorized committee of a participating candidate is spent as specified in sections 101 through 117 of this act and not otherwise, monitor reports filed under sections 101 through 117 of this act and financial records of candidates as needed to ensure that equalization moneys are paid promptly to opposing qualified candidates under section 108 of this act.

(3) Based on the results of the elections in the year 2002 or any subsequent presidential election, and within six months after such an election, the commission may adopt rules changing the number of qualifying contributions required for any office from those listed in section 106(4) of this act by no more than twenty percent of the number applicable for the preceding presidential election.

NEW SECTION. Sec. 114. ENFORCEMENT PROCEDURE. (1) If the commission finds that there is reason to believe that a person has violated any provision of sections 101 through 117 of this act, the commission shall serve on that person an order stating with reasonable particularity the nature of the violation and requiring compliance within fourteen days. During that period, the alleged violator may provide any explanation to the commission, comply with the order, or enter into a public administrative settlement with the commission.

(2) Upon expiration of the fourteen days, if the commission finds that the alleged violator remains out of compliance, the commission shall make a public finding to that effect and issue an order assessing a civil penalty in accordance with section 115 of this act, unless the commission publishes findings of fact and conclusions of law expressing good cause for reducing or excusing the penalty. The violator has fourteen days from the date of issuance of the order assessing the penalty to appeal to the superior court of Thurston County.

(3) A candidate in a particular election contest who believes that an opposing candidate has violated sections 101 through 117 of this act for that election may file a complaint with the commission requesting that action be taken under this section. If the commission fails to make a finding under subsection (1) of this section within thirty days after the filing of the complaint, the candidate may bring a civil action in the superior court of Thurston County to impose the civil penalties prescribed in this section.

NEW SECTION. Sec. 115. CIVIL PENALTIES AND FORFEITURE OF OFFICE. (1) The civil penalty for a violation of a contribution or expenditure limit established under section 101 of this act by or on behalf of a participating candidate is ten times the amount by which the expenditures or contributions exceed the applicable limit.

(2) In addition to any other penalties imposed by law, the civil penalty for a violation by or on behalf of a participating candidate of a reporting requirement imposed by this chapter is one hundred dollars per day for candidates for the legislature and three hundred dollars per day for candidates for governor. The civil penalty imposed under this subsection is doubled if the amount not reported for a particular election cycle exceeds ten percent of the primary or general election spending limit. A civil penalty imposed under this subsection may not exceed twice the amount of expenditures or contributions not reported. The candidate and the candidate's authorized committee are jointly and severally responsible for a civil penalty imposed under this subsection.

(3) A campaign finance report filed indicating a violation of section 101 (1), (2), or (3) of this act involving an amount in excess of ten percent of the sum of the primary election spending limit and the general election spending limit for a particular candidate disqualifies the candidate and causes forfeiture of the office. The commission or a citizen of this state may petition the superior court of Thurston County for an order to disqualify the candidate and forfeit his or her office.

(4) A participating candidate adjudged to have committed a knowing violation of section 101 of this act shall repay the amount from his or her personal funds to the citizens' clean elections fund and shall turn over all money in the candidate's authorized committee account to the citizens' clean elections fund.

(5) All civil penalties collected under this section will be deposited into the citizens' clean elections fund.

NEW SECTION. Sec. 116. CRIMINAL VIOLATIONS AND PENALTIES. (1) A candidate, or any other person acting on behalf of a candidate, who knowingly violates section 101 of this act is guilty of a gross misdemeanor.

(2) A person who knowingly pays any thing of value or any compensation for a qualifying contribution as specified under section 104 of this act is guilty of a gross misdemeanor.

(3) A person who distributes, broadcasts, or otherwise indicates that a candidate is certified as a participating candidate, with knowledge that this certification has not been made or if made has been rescinded, is guilty of a gross misdemeanor.

NEW SECTION. Sec. 117. INFLATION AND OTHER ADJUSTMENTS OF DOLLAR VALUES. (1) Every two years, the commission shall modify the dollar values specified in the following sections, in the manner specified by RCW 42.17.370 to account for inflation: (a) Section 101(1)(b) of this act; (b) section 103(1) (a) and (b) of this act; (c) section 105(3) of this act; (d) "primary election spending limits" and "general election spending limits"; (e) section 109(1) of this act; (f) section 112 of this act; and (g) section 115(2) of this act. Whenever a dollar value is so adjusted, these statutes will be interpreted to apply to the inflation-adjusted value.

(2) Based on the results of the elections in the year 2002 or any presidential election thereafter, and within six months after the election, the commission may adopt rules reallocating funds available to all candidates between the primary and general election by selecting a fraction for primary spending limits that is between one-third and one-half of the spending limits for the election cycle. For each office, the primary election spending limit will be modified to be the sum of the primary and general spending limits times the selected fraction, and the general election spending limit will be modified to be the same sum times one less the selected fraction.

Sec. 118. RCW 42.17.020 and 1995 c 397 s 1 are each amended to read as follows:

(1) "Adjusted spending limit" means a spending limit as further adjusted to account for reported overages under section 108 of this act.

(2) "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)~~)) (3) "Authorized committee" means the political committee authorized by a candidate, or by the public official against whom recall charges have been filed, to accept contributions or make expenditures on behalf of the candidate or public official.

((~~(3)~~)) (4) "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.

((~~(4)~~)) (5) "Benefit" means a commercial, proprietary, financial, economic, or monetary advantage, or the avoidance of a commercial, proprietary, financial, economic, or monetary disadvantage.

((~~(5)~~)) (6) "Bona fide political party" means:

(a) An organization that has filed a valid certificate of nomination with the secretary of state under chapter 29.24 RCW;

(b) The governing body of the state organization of a major political party, as defined in RCW 29.01.090, that is the body authorized by the charter or bylaws of the party to exercise authority on behalf of the state party; or

(c) The county central committee or legislative district committee of a major political party. There may be only one legislative district committee for each party in each legislative district.

((~~(6) "Depository" means a bank designated by a candidate or political committee pursuant to RCW 42.17.050.~~

~~(7) "Treasurer" and "deputy 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.~~

~~(8)~~)) (7) "Candidate" means any individual who seeks nomination for election or election to public office. An individual seeks nomination or election when he or she first:

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

(b) Announces publicly or files for office;

(d) Gives his or her consent to another person to take on behalf of the individual any of the actions in (a) or (c) of this subsection.

((~~(9)~~)) (8) "Caucus political committee" means a political committee organized and maintained by the members of a major political party in the state senate or state house of representatives.

((~~(10)~~)) (9) "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.

((~~(11)~~)) (10) "Commission" means the agency established under RCW 42.17.350.

((~~(12)~~)) (11) "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.

((~~(13)~~)) (12) "Continuing political committee" means a political committee that is an organization of continuing existence not established in anticipation of any particular election campaign.

((~~(14)~~)) (13)(a) "Contribution" includes:

(i) A loan, gift, deposit, subscription, forgiveness of indebtedness, donation, advance, pledge, payment, transfer of funds between political committees, or anything of value, including personal and professional services for less than full consideration;

(ii) An expenditure made by a person in cooperation, consultation, or concert with, or at the request or suggestion of, a candidate, a political committee, or their agents;

(iii) The financing by a person of the dissemination, distribution, or republication, in whole or in part, of broadcast, written, graphic, or other form of political advertising prepared by a candidate, a political committee, or its authorized agent;

(iv) Sums paid for tickets to fund-raising events such as dinners and parties, except for the actual cost of the consumables furnished at the event.

(b) "Contribution" does not include:

(i) Standard interest on money deposited in a political committee's account;

(ii) Ordinary home hospitality;

(iii) A contribution received by a candidate or political committee that is returned to the contributor within five business days of the date on which it is received by the candidate or political committee;

(iv) A news item, feature, commentary, or editorial in a regularly scheduled news medium that is of primary interest to the general public, that is in a news medium controlled by a person whose business is that news medium, and that is not controlled by a candidate or a political committee;

(v) An internal political communication primarily limited to the members of or contributors to a political party organization or political committee, or to the officers, management staff, or stockholders of a corporation or similar enterprise, or to the members of a labor organization or other membership organization;

(vi) The rendering of personal services of the sort commonly performed by volunteer campaign workers, or incidental expenses personally incurred by volunteer campaign workers not in excess of fifty dollars personally paid for by the worker. "Volunteer services," for the purposes of this section, means services or labor for which the individual is not compensated by any person;

(vii) Messages in the form of reader boards, banners, or yard or window signs displayed on a person's own property or property occupied by a person. However, a facility used for such political advertising for which a rental charge is normally made must be reported as an in-kind contribution and counts towards any applicable contribution limit of the person providing the facility;

(viii) Legal or accounting services rendered to or on behalf of:

(A) A political party or caucus political committee if the person paying for the services is the regular employer of the person rendering such services; or

(B) A candidate or an authorized committee if the person paying for the services is the regular employer of the individual rendering the services and if the services are solely for the purpose of ensuring compliance with state election or public disclosure laws.

(c) Contributions other than money or its equivalent are deemed to have a monetary value equivalent to the fair market value of the contribution. Services or property or rights furnished at less than their fair market value for the purpose of assisting any candidate or political committee are deemed a contribution. Such a contribution must be reported as an in-kind contribution at its fair market value and counts towards any applicable contribution limit of the provider.

(14) "Depository" means a bank designated by a candidate or political committee under RCW 42.17.050.

(15) "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.

(16) "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.

(17) "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.

(18) "Election cycle" means the period beginning on the first day of December after the date of the last previous general election for the office that the candidate seeks and ending on November 30th after the next election for the office. 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 30th after the special election.

(19) "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.

(20) "Exploratory period" means the period beginning on the day after a general election and ending the day before the start of the qualifying period.

(21) "Expressly advocates" means: (a) Conveying a communication containing a phrase such as "vote for," "elect," "reelect," "support," "endorse," "cast your ballot for," "(name of candidate) in (year)," "(name of candidate) for (office)," "vote against," "defeat," "reject," or a campaign slogan or words that in context can have no reasonable meaning other than to advocate the election or defeat of one or more clearly identified candidates; or (b) making a general public communication, such as in a broadcast medium, newspaper, magazine, billboard, or direct mailer referring to one or more clearly identified candidates and targeted to the electorate of that candidate(s): (i) That in context can have no reasonable meaning other than to advocate the election or defeat of the candidate(s), as evidenced by factors such as the presentation of the candidate(s) in a favorable or unfavorable light, the targeting, placement, or timing of the communication, or the inclusion of statements of the candidate(s) or opponents, or (ii) in the sixteen‑week period immediately before a general election. A communication will not be considered as one that "expressly advocates" merely because it presents information about the voting record or position on a campaign issue of three or more candidates, so long as it is not made in coordination with a candidate, political party, agent of the candidate or party, or a person who is coordinating with a candidate or candidate's agent.

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

((~~(21)~~)) (23) "General election" means the election that results in the election of a person to a state office. It does not include a primary.

((~~(22)~~)) (24) "General election period" means the period beginning on the day after the primary election and ending on the day of the general election. For a recall election, the "general election period" extends from the day after the end of the qualifying period to the day of the recall election.

(25) "General election spending limits" means amounts fifty percent greater than the amounts specified as the primary election spending limits.

(26) "Gift," is as defined in RCW 42.52.010.

((~~(23)~~)) (27) "Immediate family" includes the spouse, dependent children, and other dependent relatives, if living in the household. For the purposes of RCW 42.17.640 through 42.17.790, "immediate family" means an individual's spouse, and child, stepchild, grandchild, parent, stepparent, grandparent, brother, half brother, sister, or half sister of the individual and the spouse of any such person and a child, stepchild, grandchild, parent, stepparent, grandparent, brother, half brother, sister, or half sister of the individual's spouse and the spouse of any such person.

((~~(24)~~)) (28) "Independent expenditure" means an expenditure that has each of the following elements:

(a) It is made in support of or in opposition to a candidate for office by a person who is not (i) a candidate for that office, (ii) an authorized committee of that candidate for that office, (iii) a person who has received the candidate's encouragement or approval to make the expenditure, if the expenditure pays in whole or in part for political advertising supporting that candidate or promoting the defeat of any other candidate or candidates for that office, or (iv) a person with whom the candidate has collaborated for the purpose of making the expenditure, if the expenditure pays in whole or in part for political advertising supporting that candidate or promoting the defeat of any other candidate or candidates for that office;

(b) The expenditure pays in whole or in part for political advertising that either specifically names the candidate supported or opposed, or clearly and beyond any doubt identifies the candidate without using the candidate's name; and

(c) The expenditure, alone or in conjunction with another expenditure or other expenditures of the same person in support of or opposition to that candidate, has a value of five hundred dollars or more. A series of expenditures, each of which is under five hundred dollars, constitutes one independent expenditure if their cumulative value is five hundred dollars or more.

((~~(25)~~)) (29)(a) "Intermediary" means an individual who transmits a contribution to a candidate or committee from another person unless the contribution is from the individual's employer, immediate family as defined for purposes of RCW 42.17.640 through 42.17.790, or an association to which the individual belongs.

(b) A treasurer or a candidate is not an intermediary for purposes of the committee that the treasurer or candidate serves.

(c) A professional fund-raiser is not an intermediary if the fund-raiser is compensated for fund-raising services at the usual and customary rate.

(d) A volunteer hosting a fund-raising event at the individual's home is not an intermediary for purposes of that event.

((~~(26)~~)) (30) "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.

((~~(27)~~)) (31) "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, chapter 34.05 RCW. Neither "lobby" nor "lobbying" includes an association's or other organization's act of communicating with the members of that association or organization.

((~~(28)~~)) (32) "Lobbyist" includes any person who lobbies either in his or her own or another's behalf.

((~~(29)~~)) (33) "Lobbyist's employer" means the person or persons by whom a lobbyist is employed and all persons by whom he or she is compensated for acting as a lobbyist.

((~~(30)~~)) (34) "Nonparticipating candidate" means a candidate who does not become certified as a participating candidate under section 102 of this act and the authorized committee of the candidate.

(35) "Participating candidate" means a candidate who becomes certified as a participating candidate under section 102 of this act and the authorized committee of the candidate.

(36) "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, political party, executive committee thereof, or any other organization or group of persons, however organized.

((~~(31)~~)) (37) "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.

((~~(32)~~)) (38) "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.

((~~(33)~~)) (39) "Political committee" means any person (except a candidate or an individual dealing with his or her 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.

((~~(34)~~)) (40) "Primary" means the procedure for nominating a candidate to state office under chapter 29.18 or 29.21 RCW or any other primary for an election that uses, in large measure, the procedures established in chapter 29.18 or 29.21 RCW.

((~~(35)~~)) (41) "Primary election spending limits" means: (a) For a candidate for the legislature, ten thousand dollars; and (b) for a candidate for governor, three hundred eighty thousand dollars.

(42) "Primary period" means the nine‑week period ending on the day of the primary election. There is no "primary period" for a recall election.

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

((~~(36)~~)) (44) "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. For the office of the secretary of the senate and the office of the chief clerk of the house of representatives, public records means legislative records as defined in RCW 40.14.100 and also means the following: All budget and financial records; personnel leave, travel, and payroll records; records of legislative sessions; reports submitted to the legislature; and any other record designated a public record by any official action of the senate or the house of representatives.

((~~(37)~~)) (45) "Qualifying period" means the period beginning on the first day of August in the year before an election, for an election for governor, or on the first day of January of an election year, for an election for legislator, and ending on the close of the regular filing period for the office. For a recall election, the "qualifying period" begins when the election is called and lasts for thirty days.

(46) "Recall campaign" means the period of time beginning on the date of the filing of recall charges under RCW 29.82.015 and ending thirty days after the recall election.

((~~(38)~~)) (47) "State legislative office" means the office of a member of the state house of representatives or the office of a member of the state senate.

((~~(39)~~)) (48) "State office" means state legislative office or the office of governor, lieutenant governor, secretary of state, attorney general, commissioner of public lands, insurance commissioner, superintendent of public instruction, state auditor, or state treasurer.

((~~(40)~~)) (49) "State official" means a person who holds a state office.

((~~(41)~~)) (50) "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.

((~~(42)~~)) (51) "Treasurer" and "deputy treasurer" mean the individuals appointed by a candidate or political committee, under RCW 42.17.050, to perform the duties specified in that section.

(52) "Writing" means handwriting, typewriting, printing, photostating, photographing, and every other means of recording any form of communication or representation, including, but not limited to, letters, words, pictures, sounds, or symbols, or combination thereof, and all papers, maps, magnetic or paper tapes, photographic films and prints, motion picture, film and video recordings, magnetic or punched cards, discs, drums, diskettes, sound recordings, and other documents including existing data compilations from which information may be obtained or translated.

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

Sec. 119. RCW 34.05.310 and 1995 c 403 s 301 are each amended to read as follows:

(1) To meet the intent of providing greater public access to administrative rule making and to promote consensus among interested parties, agencies shall solicit comments from the public on a subject of possible rule making before filing with the code reviser a notice of proposed rule making under RCW 34.05.320. The agency shall prepare a statement of inquiry that:

(a) Identifies the specific statute or statutes authorizing the agency to adopt rules on this subject;

(b) Discusses why rules on this subject may be needed and what they might accomplish;

(c) Identifies other federal and state agencies that regulate this subject, and describes the process whereby the agency would coordinate the contemplated rule with these agencies;

(d) Discusses the process by which the rule might be developed, including, but not limited to, negotiated rule making, pilot rule making, or agency study;

(e) Specifies the process by which interested parties can effectively participate in the decision to adopt a new rule and formulation of a proposed rule before its publication.

The statement of inquiry shall be filed with the code reviser for publication in the state register at least thirty days before the date the agency files notice of proposed rule making under RCW 34.05.320 and shall be sent to any party that has requested receipt of the agency's statements of inquiry.

(2) Agencies are encouraged to develop and use new procedures for reaching agreement among interested parties before publication of notice and the adoption hearing on a proposed rule. Examples of new procedures include, but are not limited to:

(a) Negotiated rule making by which representatives of an agency and of the interests that are affected by a subject of rule making, including, where appropriate, county and city representatives, seek to reach consensus on the terms of the proposed rule and on the process by which it is negotiated; and

(b) Pilot rule making which includes testing the feasibility of complying with or administering draft new rules or draft amendments to existing rules through the use of volunteer pilot groups in various areas and circumstances, as provided in RCW 34.05.313 or as otherwise provided by the agency.

(3)(a) An agency must make a determination whether negotiated rule making, pilot rule making, or another process for generating participation from interested parties prior to development of the rule is appropriate.

(b) An agency must include a written justification in the rule-making file if an opportunity for interested parties to participate in the rule-making process prior to publication of the proposed rule has not been provided.

(4) This section does not apply to:

(a) Emergency rules adopted under RCW 34.05.350;

(b) Rules relating only to internal governmental operations that are not subject to violation by a nongovernment party;

(c) Rules adopting or incorporating by reference without material change federal statutes or regulations, Washington state statutes, rules of other Washington state agencies, shoreline master programs other than those programs governing shorelines of state-wide significance, or, as referenced by Washington state law, national consensus codes that generally establish industry standards, if the material adopted or incorporated regulates the same subject matter and conduct as the adopting or incorporating rule;

(d) Rules that only correct typographical errors, make address or name changes, or clarify language of a rule without changing its effect;

(e) Rules the content of which is explicitly and specifically dictated by statute;

(f) Rules that set or adjust fees or rates pursuant to legislative standards; ((or))

(g) Rules that adopt, amend, or repeal:

(i) A procedure, practice, or requirement relating to agency hearings; or

(ii) A filing or related process requirement for applying to an agency for a license or permit; or

(h) Rules adopted under section 113 of this act.

Sec. 120. RCW 42.36.040 and 1982 c 229 s 4 are each amended to read as follows:

Prior to declaring as a candidate for public office or while campaigning for public office as defined by RCW 42.17.020 ((~~(5) and (25)~~)) no public discussion or expression of an opinion by a person subsequently elected to a public office, on any pending or proposed quasi-judicial actions, shall be a violation of the appearance of fairness doctrine.

PART II--POLITICAL ADVERTISING

Sec. 201. RCW 42.17.080 and 1999 c 401 s 13 are each amended to read as follows:

(1) On the day the treasurer is designated, each candidate or political committee shall file a report of all contributions received and expenditures made before that date, if any, with the commission and the appropriate county ((~~auditor or~~)) elections officer ((~~of the county in which the candidate resides, or in the case of a political committee, the county in which the treasurer resides~~)), as specified under section 204 of this act. This report is in addition to any statement of organization required under RCW 42.17.040 or 42.17.050((~~, a report of all contributions received and expenditures made prior to that date, if any~~)).

(2) At the following intervals each ((~~treasurer~~)) candidate or political committee shall file a report containing the information and requirements of RCW 42.17.090 with the commission and the appropriate county ((~~auditor or~~)) elections officer ((of the county in which the candidate resides, or in the case of a political committee, the county in which the committee maintains its office or headquarters, and if there is no office or headquarters then in the county in which the treasurer resides, a report containing the information required by RCW 42.17.090)), as specified under section 204 of this act:

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

(b) On the tenth day of the first month after the election((~~: PROVIDED, That~~)), but this report ((~~shall~~)) is 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~~)).

However, the report ((~~shall only~~)) required by this subsection (2) must be filed only if the candidate or political 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.

The candidate or political committee shall file a final report with the commission and the appropriate county elections officer, as specified under section 204 of this act, when there is no outstanding debt or obligation, and all the ((~~campaign fund is~~)) candidate's or political committee's accounts are closed, and either the candidate's campaign is concluded in all respects, ((~~and~~)) or in the case of a political committee, the committee has ceased to function and has dissolved((~~, the treasurer shall file a final report~~)). Upon submitting a final report, the duties of the treasurer shall cease and there shall be no obligation to make any further reports.

The report filed twenty-one days before the election ((~~shall~~)) by a candidate, or by a political committee that has not made a political advertisement relating to a candidate undertaken as an independent expenditure, must report all contributions received and expenditures made as of the end of the fifth ((~~business~~)) day before the date of the report. The report filed twenty-one days before the election by a political committee that made a political advertisement relating to a candidate undertaken as an independent expenditure must report all contributions received and expenditures made as of the end of the last business day before the date of the report. The report filed seven days before the election ((~~shall~~)) by a candidate or political committee must report all contributions received and expenditures made as of the end of the ((~~one business~~)) day before the date of the report. Reports filed on the tenth day of the month shall report all contributions received and expenditures made from the closing date of the last report filed through the last day of the month preceding the date of the current report.

(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, each Friday the ((~~treasurer~~)) candidate or political committee shall file with the commission and the appropriate county elections officer, as specified under section 204 of this act, a report of each ((~~bank deposit made~~)) contribution received during the previous seven calendar days. ((The report shall contain the name of each person contributing the funds so deposited and the amount contributed by each person. However, contributions of no more than twenty-five dollars in the aggregate from any one person may be deposited without identifying the contributor.))

(4) A copy of ((~~the~~)) each report ((~~shall~~)) required to be filed by a candidate or political committee under this chapter must be retained by the treasurer ((~~for his or her~~)) as part of the candidate's or political committee's records. ((In the event of deposits made by a deputy treasurer, the copy shall be forwarded to the treasurer for his or her records. Each report shall be certified as correct by the treasurer or deputy treasurer making the deposit.

~~(4) The treasurer or~~))

(5) The candidate or political committee shall ((~~maintain~~)) have books of account maintained that accurately ((~~reflecting~~)) reflect all contributions and expenditures on a current basis within ((~~five business days~~)) one day of receipt or expenditure. During the eight days immediately preceding the date of the election the books of account ((~~shall~~)) for a candidate, and a political committee that has not made a political advertisement relating to a candidate as an independent expenditure, must be kept current within one ((~~business~~)) day. As specified in the committee's statement of organization filed under RCW 42.17.040, the books of account must be open for public inspection as follows:

(a) For at least two consecutive hours on the eighth day immediately before the election, 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, at the principal headquarters or, if there is no headquarters, at the address of the treasurer or such other place as may be authorized by the commission; and

(b) By appointment for inspections to be conducted at the designated place for inspections between 8:00 a.m. and 8:00 p.m. on any other day from the seventh day through the day immediately before the election, other than Saturday, Sunday, or a legal holiday. It is a violation of this chapter for a candidate or political committee to refuse to allow and keep an appointment for an inspection to be conducted during these authorized times and days in the week prior to the election. The appointment must be allowed at an authorized time and day for such inspections that is within twenty-four hours of the time and day that is requested for the inspection.

((~~(5)~~)) (6) During the twenty-one days immediately before the date of an election, a political committee that made a political advertisement relating to a candidate undertaken as an independent expenditure shall keep its books of account current within one business day and shall keep them 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 under RCW 42.17.040, at the principal headquarters or, if there is no headquarters, at the address of the treasurer or such other place as may be authorized by the commission.

(7) The ((~~treasurer or~~)) candidate or political committee 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.

((~~(6) All reports filed pursuant to subsections (1) or (2) of this section shall be certified as correct by the candidate and the treasurer.~~

~~(7)~~)) (8) 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, at the principal headquarters or, if there is no headquarters, at the address of the treasurer or such other place as may be authorized by the commission.

((~~(8)~~)) (9) The commission shall adopt administrative rules establishing requirements for filer participation in any system designed and implemented by the commission for the electronic filing of reports.

Sec. 202. RCW 42.17.065 and 1989 c 280 s 5 are each amended to read as follows:

(1) In addition to the provisions of this section, a continuing political committee shall file and report on the same conditions and at the same times as any other committee in accordance with the provisions of RCW 42.17.040, 42.17.050, and 42.17.060.

(2) A continuing political committee shall file with the commission and the ((~~auditor or~~)) appropriate county elections officer ((~~of the county in which the committee maintains its office or headquarters and if there is no such office or headquarters then in the county in which the committee treasurer resides~~)), as provided under section 204 of this act, a report on the tenth day of the month detailing its activities for the preceding calendar month in which the committee has received a contribution or made an expenditure((~~: PROVIDED, That such report shall only~~)). However, the report must be filed only if either the total contributions received or total expenditures made since the last such report exceed two hundred dollars. The report shall be on a form supplied by the commission and shall include the following information:

(a) The information and requirements required by RCW 42.17.090;

(b) Each expenditure made to retire previously accumulated debts of the committee; identified by recipient, amount, and date of payments;

(3) If a continuing political committee shall make a contribution in support of or in opposition to a candidate or ballot proposition within sixty days prior to the date on which such candidate or ballot proposition will be voted upon, such continuing political committee shall report pursuant to RCW 42.17.080.

(4) A continuing political committee shall file reports as required by this chapter until it is dissolved, at which time a final report shall be filed. Upon submitting a final report, the duties of the ((~~campaign~~)) committee treasurer shall cease and there shall be no obligation to make any further reports.

(5) The ((~~campaign~~)) committee treasurer shall maintain books of account accurately reflecting all contributions and expenditures on a current basis within ((~~five business days~~)) one day of receipt or expenditure. During the eight days immediately preceding the date of any election, for which the continuing political committee has received any contributions or made any expenditures, 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, at the principal campaign headquarters or, if there is no campaign headquarters, at the address of the ((~~campaign~~)) committee treasurer or such other place as may be authorized by the commission. In addition, a continuing political committee may be subject to additional requirements provided under RCW 42.17.080.

(6) All reports filed pursuant to this section shall be certified as correct by the ((~~campaign~~)) committee treasurer.

(7) The ((~~campaign~~)) committee treasurer 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.

Sec. 203. RCW 42.17.090 and 1993 c 256 s 6 are each amended to read as follows:

(1) Each report required under RCW 42.17.065, 42.17.080 ((~~(1) and (2) shall~~)), and 42.17.135 must disclose the following:

(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~~)). However, (i) pledges in the aggregate of less than one hundred dollars from any one person need not be reported((~~: PROVIDED FURTHER, That the~~)); (ii) income which results from a fund-raising activity conducted 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~~)); (iii) contributions of no more than twenty-five 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 name, address, and amount of each such contributor((~~: PROVIDED FURTHER, That~~)); and (iv) 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) All other contributions not otherwise listed or exempted;

(e) The name and address of each candidate or political committee to which any transfer of funds was made, together with the amounts and dates of such transfers;

(f) The name and address of each person to whom an expenditure was made in the aggregate amount of more than fifty dollars during the period covered by this report, and the amount, date, and purpose of each such expenditure. A candidate for state ((~~executive or state legislative~~)) office ((~~or the political committee of such a candidate~~)) shall report this information for an expenditure under one of the following categories, whichever is appropriate: (i) Expenditures for the election of the candidate; (ii) expenditures for nonreimbursed public office-related expenses; (iii) expenditures required to be reported under (e) of this subsection; or (iv) expenditures of surplus funds and other expenditures. The report of such a candidate or committee shall contain a separate total of expenditures for each category and a total sum of all expenditures. Other candidates and political committees need not report information regarding expenditures under the categories listed in (i) through (iv) of this subsection or under similar such categories unless required to do so by the commission by rule. The report of such an other candidate or committee shall also contain the total sum of all expenditures;

(g) The name and address of each person to whom any expenditure was made directly or indirectly to compensate the person for soliciting or procuring signatures on an initiative or referendum petition, the amount of such compensation to each such person, and the total of the expenditures made for this purpose. Such expenditures shall be reported under this subsection (1)(g) whether the expenditures are or are not also required to be reported under (f) of this subsection;

(h) The name and address of any person and the amount owed for any debt, obligation, note, unpaid loan, or other liability in the amount of more than two hundred fifty dollars or in the amount of more than fifty dollars that has been outstanding for over thirty days;

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

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

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

(l) Funds received from a political committee 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 has filed or within ten days following such receipt files 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) 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; (v) 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; (vi) 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 more than twenty-five dollars to the nonreporting committee during the current calendar year, together with the money value and date of such contributions; (vii) 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 more than fifty dollars, the amount, date, and purpose of such expenditure, and the total sum of such expenditures; (viii) such other information as the commission may prescribe by rule, 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) Both the treasurer and the candidate, or the chief officer or leader for a political committee, shall certify the correctness of each report.

NEW SECTION. Sec. 204. A new section is added to chapter 42.17 RCW to read as follows:

Every statement of organization, report, or other filing required by this chapter to be filed by a candidate or political committee must be filed with the commission and the appropriate county elections officer. The appropriate county elections officer for a candidate is the county auditor or other elections officer of the county in which the candidate resides. The appropriate county elections officer for a political committee is the county auditor or other elections officer of the county in which the committee maintains its office or headquarters, and if there is no office or headquarters, then in the county in which the treasurer resides.

Sec. 205. RCW 42.17.510 and 1995 c 397 s 19 are each amended to read as follows:

(1) All written political advertising, whether relating to candidates or ballot propositions, shall include the sponsor's name and address. All radio and television political advertising, whether relating to candidates or ballot propositions, shall include the sponsor's name. The use of an assumed name shall be unlawful. The party with which a candidate files shall be clearly identified in political advertising for partisan office.

(2) In addition ((~~to the materials required by subsection (1) of this section~~)), all political advertising relating to a candidate undertaken as an independent expenditure ((~~by a person or entity other than a party organization~~)) must include the following statement on the communication "NOTICE TO VOTERS (Required by law): This advertisement is an independent expenditure of funds not authorized or approved by any candidate. There are no limits on the amount of independent expenditures that may be made or on the amount of any contribution for an independent expenditure. It is paid for by (name, address, city, state)." If ((~~the~~)) an advertisement relating to a candidate undertaken as an independent expenditure is undertaken by a nonindividual ((~~other than a party organization~~)), then the notice must (a) disclose the general nature of the interests represented by the nonindividual, as determined by the commission under section 206 of this act, immediately after the name of the nonindividual; and (b) include the following notation ((~~must also be included~~)): "Top Five Contributors," followed by a listing of the name((s)) of each of the five ((~~persons~~)) individuals or entities making the largest contributions reportable under this chapter during the twelve-month period before the date of the advertisement. The nature of interests represented by each entity making such a contribution, as determined by the commission under section 206 of this act, must be disclosed immediately after the name of the entity.

(3) The statements and listings of contributors required by ((~~subsections (1) and (2) of~~)) this section shall:

(a) Appear on the first page or fold of the written communication in at least ten-point type, or in type at least ten percent of the largest size type used in a written communication directed at more than one voter, such as a billboard or poster, whichever is larger;

(b) Not be subject to the half-tone or screening process;

(d) Be clearly spoken on any broadcast advertisement.

(4) Political yard signs are exempt from the requirement of ((~~subsections (1) and (2) of~~)) this section that the name and address of the sponsor of political advertising be listed on the advertising. In addition, the ((~~public disclosure~~)) commission shall, by rule, exempt from the identification requirements of ((~~subsections (1) and (2) of~~)) this section forms of political advertising such as campaign buttons, balloons, pens, pencils, sky-writing, inscriptions, and other forms of advertising where identification is impractical.

((~~(5)~~)) For the purposes of this section, "yard sign" means any outdoor sign with dimensions no greater than eight feet by four feet.

NEW SECTION. Sec. 206. A new section is added to chapter 42.17 RCW to read as follows:

The commission shall assign a brief descriptive phrase indicating the general nature of interests represented by each nonindividual paying for advertisements relating to a candidate undertaken as independent expenditures. As provided under RCW 42.17.510, this phrase must be included immediately after the name of the nonindividual in each advertisement relating to a candidate that the nonindividual undertakes as an independent contribution.

The commission shall assign a brief descriptive phrase indicating the general nature of interests represented by each entity making a contribution to a nonindividual for advertisements relating to a candidate that are undertaken as independent expenditures. As provided under RCW 42.17.510, this phrase must be included immediately after the name of each entity listed as one of the top five contributors to the nonindividual making the advertisement.

Sec. 207. RCW 42.17.040 and 1989 c 280 s 2 are each amended to read as follows:

(1) Every political committee, within two weeks after its organization or, within two weeks after the date when it first has the expectation of receiving contributions or making expenditures in any election campaign, whichever is earlier, shall file a statement of organization with the commission and with the county auditor or elections officer of the county in which the candidate resides, or in the case of any other political committee, the county in which the treasurer resides. A political committee organized within the last three weeks before an election and having the expectation of receiving contributions or making expenditures during and for that election campaign shall file a statement of organization within three ((~~business~~)) days after its organization or when it first has the expectation of receiving contributions or making expenditures in the election campaign.

(2) The statement of organization shall include but not be limited to:

(a) The name and address of the committee;

(b) The names and addresses of all related or affiliated committees or other persons, and the nature of the relationship or affiliation;

(c) The names, addresses, and titles of its officers; or if it has no officers, the names, addresses, and titles of its responsible leaders;

(d) The name and address of its treasurer and depository;

(e) A statement whether the committee is a continuing one;

(f) The name, office sought, and party affiliation of each candidate whom the committee is supporting or opposing, and, if the committee is supporting the entire ticket of any party, the name of the party;

(g) The ballot proposition concerned, if any, and whether the committee is in favor of or opposed to such proposition;

(h) The general nature of the interest or interests represented by the political committee;

(i) What distribution of surplus funds will be made, in accordance with RCW 42.17.095, in the event of dissolution;

((~~(i)~~)) (j) The street address of the place and the hours during which the committee will make available for public inspection its books of account and all reports filed in accordance with RCW 42.17.080; and

((~~(j)~~)) (k) Such other information as the commission may ((~~by regulation~~)) prescribe by rule, in keeping with the policies and purposes of this chapter.

(3) Any material change in information previously submitted in a statement of organization shall be reported to the commission and to the appropriate county elections officer within the ten days following the change.

Sec. 208. RCW 42.17.105 and 1995 c 397 s 4 are each amended to read as follows:

(1) ((~~Campaign treasurers~~)) During the special reporting period for a candidate, a candidate shall prepare and deliver to the commission and the appropriate county elections officer, as specified under section 204 of this act, a special report regarding any contribution or an aggregate of contributions ((~~which:~~)) that is received from a single person if the contribution or aggregate of contributions exceeds five hundred dollars((~~; is from a single person or entity; and is received during a special reporting period~~)).

((~~Any~~)) During the special reporting period for a political committee, a political committee ((~~making~~)) shall prepare and deliver to the commission and the appropriate county elections officer, as specified under section 204 of this act, a special report regarding a contribution or an aggregate of contributions it makes to a single ((~~entity which~~)) candidate or political committee if the contribution or an aggregate of contributions exceeds five hundred dollars ((~~shall also prepare and deliver to the commission the special report if the contribution or aggregate of contributions is made during a special reporting period~~)). During the special reporting period for a political committee, a candidate or political committee that receives a contribution or an aggregate of contributions from a single person that exceeds five hundred dollars, shall prepare and deliver a special report on the contribution or contributions to the commission and the appropriate county elections officer, as specified under section 204 of this act.

For the purposes of subsections (1) through (7) of this section:

(a) Each of the following intervals is a special reporting period for a candidate or an authorized committee: (i) The interval beginning after the period covered by the last report required by RCW 42.17.080 and 42.17.090 to be filed before a primary and concluding on the end of the day before that primary; and (ii) the interval composed of the twenty-one days preceding a general election and concluding on the end of the day before that general election; ((~~and~~))

(b) Each of the following intervals is a special reporting period for any other political committee: (i) The interval composed of forty days before a primary and the end of the day before that primary; and (ii) the interval composed of forty days before a general election and the end of the day before that general election; and

(c) An aggregate of contributions includes only those contributions received from a single ((~~entity~~)) person during any one special reporting period or made by the contributing political committee to a single ((~~entity~~)) person during any one special reporting period.

(2) If a ((~~campaign treasurer~~)) candidate or political committee files a special report under this section for one or more contributions received from a single ((~~entity~~)) person during a special reporting period, the ((~~treasurer~~)) candidate or political committee shall also file a special report under this section for each subsequent contribution of any size ((~~which~~)) that is received from ((~~that entity~~)) the same person during the special reporting period. If a political committee files a special report under this section for a contribution or contributions made to a single ((~~entity~~)) candidate or political committee during a special reporting period, the political committee shall also file a special report for each subsequent contribution of any size ((~~which~~)) that is made to ((~~that entity~~)) the same candidate or political committee during the special reporting period.

(3) Except as provided in subsection (4) of this section, the special report required by this section shall be delivered to the commission electronically or in written form((~~, including but not limited to mailgram, telegram, or nightletter~~)). The special report required of a contribution recipient by subsection (1) of this section shall be delivered to the commission and the appropriate county elections officer within forty-eight hours of the time, or on the first working day after: The contribution exceeding five hundred dollars is received by the candidate or ((~~treasurer~~)) political committee; the aggregate received by the candidate or ((~~treasurer~~)) political committee first exceeds five hundred dollars; or the subsequent contribution that must be reported under subsection (2) of this section is received by the candidate or ((~~treasurer~~)) political committee. The special report required of a contributor by subsection (1) of this section or RCW 42.17.175 shall be delivered to the commission, the appropriate county elections officer, and the candidate or political committee to whom the contribution or contributions ((~~are~~)) were made, within twenty-four hours of the time, or on the first working day after: The contribution is made; the aggregate of contributions made first exceeds five hundred dollars; or the subsequent contribution that must be reported under subsection (2) of this section is made.

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

(5) The special report shall include at least:

(a) The amount of the contribution or contributions;

(b) The date or dates of receipt;

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

(e) The nature of the political committee, as determined under section 206 of this act; and

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

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

(7) The commission shall prepare 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~~)) candidate 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~~)) an election. ((This subsection does not apply to contributions made by, or accepted from, a bona fide political party as defined in this chapter, excluding the county central committee or legislative district committee.))

(9) It is a violation of this chapter for a person to make, or for any political committee that undertakes political advertising relating to a candidate undertaken as an independent expenditure to accept from any one person, contributions reportable under RCW 42.17.090 in the aggregate exceeding twenty-five thousand dollars for a state-wide office or exceeding two thousand five hundred dollars for any other campaign subject to this chapter within forty days of an election.

(10) Contributions governed by this section include, but are not limited to, contributions made or received indirectly through a third party or entity whether the contributions are or are not reported to the commission as earmarked contributions under RCW 42.17.135.

Sec. 209. RCW 42.17.175 and 1991 c 157 s 2 are each amended to read as follows:

(1) Any lobbyist registered under RCW 42.17.150, any person who lobbies, and any lobbyist's employer making a contribution or an aggregate of contributions to a single ((~~entity~~)) candidate, political committee, or bona fide political party that exceeds five hundred dollars during a special reporting period before a primary or general election, as such period is specified in RCW 42.17.105(1), shall file one or more special reports for the contribution or aggregate of contributions and for subsequent contributions made during that period under the same circumstances and to the same extent that a contributing political committee must file such a report or reports under RCW 42.17.105.

A person, other than a political committee, who makes a contribution or aggregate of contributions to a single candidate, political committee, or bona fide political party that exceeds five thousand dollars during a special reporting period before a general election, as that period is specified in RCW 42.17.105(1), shall file one or more special reports for the contribution or aggregate of contributions and for subsequent contributions made during that period under the same circumstances and to the same extent that a contributing political committee must file such a report or reports under RCW 42.17.105.

(2) Such a special report shall be filed in the same manner provided under RCW 42.17.105 for a special report of a contributing political committee.

NEW SECTION. Sec. 210. A new section is added to chapter 42.17 RCW to read as follows:

A copy of all political advertising relating to candidates that is undertaken as an independent expenditure, and the amount that has been spent to date and is proposed to be spent on this independent expenditure, must be delivered to the commission at least five days before the advertising is distributed or aired.

NEW SECTION. Sec. 211. A new section is added to chapter 42.17 RCW to read as follows:

A county, city, or town may establish a program where a candidate for a local elected office voluntarily agrees to abide by limitations on the amount of money the candidate, or the candidate's authorized committee, spends to campaign for the office in return for receiving public matching funds from the county, city, or town that are used to assist in funding his or her campaign.

PART III--CONTRIBUTIONS

Sec. 301. RCW 42.17.680 and 1993 c 2 s 8 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~~)) elected official against whom recall charges have been filed, political party, or political committee.

(2) No employer or labor organization may discriminate for or against an officer or employee in the terms or conditions of employment for (a) ((~~the failure~~)) contributing or failing to contribute to, (b) ((~~the failure~~)) in any way failing to support or oppose, or (c) in any way supporting or opposing, a candidate, elected official against whom recall charges have been filed, 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 a candidate, elected official against whom recall charges have been filed, ballot proposition, political party, or political ((~~committees or for use as political contributions~~)) committee, 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 employer or other 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 candidate, political party, or political committee. Copies of such information shall be delivered to the commission upon request.

(5) A for-profit corporation may not make contributions, directly or indirectly, to a candidate, political party, or political committee, except through a separate fund made up of money solicited expressly for political purposes.

PART IV--MISCELLANEOUS

NEW SECTION. Sec. 401. RCW 42.17.128 and 1993 c 2 s 24 are each repealed.

NEW SECTION. Sec. 402. Sections 101 through 117 of this act shall be known as the Citizens' Clean Elections Act.

NEW SECTION. Sec. 403. Sections 101 through 117 of this act are each added to chapter 42.17 RCW.

NEW SECTION. Sec. 404. Captions and part headings used in this act are not part of the law.

NEW SECTION. Sec. 405. 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.