BILL REQ. #:  H-1053.1 

Read first time 01/28/11.   Referred to Committee on State Government & Tribal Affairs.

     AN ACT Relating to signature gathering; amending RCW 29A.72.010, 29A.72.110, 29A.72.120, and 29A.72.130; reenacting and amending RCW 42.17A.005; adding new sections to chapter 42.17A RCW; adding new sections to chapter 29A.72 RCW; creating a new section; prescribing penalties; and providing an effective date.

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

NEW SECTION.  Sec. 1   The legislature finds that between the years 2000 and 2005, three hundred twenty-six initiatives were filed with the secretary of state's office and twenty-one initiatives were certified to the ballot. Each initiative filed requires the state to invest, at a minimum, the time and resources to process the filed initiative in the secretary of state's office and allow the code reviser to review draft initiatives for errors, review for potential conflict with existing statutes, and prepare a certificate of review for the initiative sponsor. Additionally, the secretary of state's office assigns a serial number to all initiatives and forwards the initiative to the attorney general for formulation of the ballot title and summary. After an initiative sponsor obtains and submits signatures, the secretary of state must check the signatures to ascertain whether there are sufficient signatures to qualify the measure for the ballot. The legislature finds that the current initiative filing fee of five dollars, which was set decades ago, is insufficient to offset the administrative costs involved in the initiative process. Therefore, to more adequately provide for the administrative costs involved in the initiative process, it is the intent of the legislature to increase the initiative filing fee. The filing fee shall be refunded in part upon the initiative being certified by the secretary of state for the general election ballot.

Sec. 2   RCW 42.17A.005 and 2010 c 204 s 101 are each reenacted and amended to read as follows:
     The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Actual malice" means to act with knowledge of falsity or with reckless disregard as to truth or falsity.
     (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.
     (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.
     (4) "Ballot proposition" means any "measure" as defined by RCW 29A.04.091, 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 before its circulation for signatures.
     (5) "Benefit" means a commercial, proprietary, financial, economic, or monetary advantage, or the avoidance of a commercial, proprietary, financial, economic, or monetary disadvantage.
     (6) "Bona fide political party" means:
     (a) An organization that has been recognized as a minor political party by the secretary of state;
     (b) The governing body of the state organization of a major political party, as defined in RCW 29A.04.086, 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.
     (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;
     (c) Purchases commercial advertising space or broadcast time to promote his or her candidacy; or
     (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.
     (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.
     (9) "Circulator" means an individual who is a paid or volunteer signature gatherer who obtains the signatures of voters on petitions. A "circulator" does not include a person who only submits the signed petitions to the secretary of state.
     (10) "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.
     (((10))) (11) "Commission" means the agency established under RCW 42.17A.100.
     (((11))) (12) "Compensation" unless the context requires a narrower meaning, includes payment in any form for real or personal property or services of any kind. For the purpose of compliance with RCW 42.17A.710, "compensation" does 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.
     (((12))) (13) "Continuing political committee" means a political committee that is an organization of continuing existence not established in anticipation of any particular election campaign.
     (((13))) (14)(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, the person or persons named on the candidate's or committee's registration form who direct expenditures on behalf of the candidate or 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 or electioneering communication 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 subsection, 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; or
     (ix) The performance of ministerial functions by a person on behalf of two or more candidates or political committees either as volunteer services defined in (b)(vi) of this subsection or for payment by the candidate or political committee for whom the services are performed as long as:
     (A) The person performs solely ministerial functions;
     (B) A person who is paid by two or more candidates or political committees is identified by the candidates and political committees on whose behalf services are performed as part of their respective statements of organization under RCW 42.17A.205; and
     (C) The person does not disclose, except as required by law, any information regarding a candidate's or committee's plans, projects, activities, or needs, or regarding a candidate's or committee's contributions or expenditures that is not already publicly available from campaign reports filed with the commission, or otherwise engage in activity that constitutes a contribution under (a)(ii) of this subsection.
     A person who performs ministerial functions under this subsection (((13))) (14)(b)(ix) is not considered an agent of the candidate or committee as long as he or she has no authority to authorize expenditures or make decisions on behalf of the candidate or committee.
     (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))) (15) "Depository" means a bank, mutual savings bank, savings and loan association, or credit union doing business in this state.
     (((15))) (16) "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))) (17) "Election" includes any primary, general, or special election for public office and any election in which a ballot proposition is submitted to the voters. 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))) (18) "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))) (19) "Election cycle" means the period beginning on the first day of January after the date of the last previous general election for the office that the candidate seeks and ending on December 31st 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 December 31st after the special election.
     (((19))) (20) "Electioneering communication" means any broadcast, cable, or satellite television or radio transmission, United States postal service mailing, billboard, newspaper, or periodical that:
     (a) Clearly identifies a candidate for a state, local, or judicial office either by specifically naming the candidate, or identifying the candidate without using the candidate's name;
     (b) Is broadcast, transmitted, mailed, erected, distributed, or otherwise published within sixty days before any election for that office in the jurisdiction in which the candidate is seeking election; and
     (c) Either alone, or in combination with one or more communications identifying the candidate by the same sponsor during the sixty days before an election, has a fair market value of five thousand dollars or more.
     (((20))) (21) "Electioneering communication" does not include:
     (a) Usual and customary advertising of a business owned by a candidate, even if the candidate is mentioned in the advertising when the candidate has been regularly mentioned in that advertising appearing at least twelve months preceding his or her becoming a candidate;
     (b) Advertising for candidate debates or forums when the advertising is paid for by or on behalf of the debate or forum sponsor, so long as two or more candidates for the same position have been invited to participate in the debate or forum;
     (c) A news item, feature, commentary, or editorial in a regularly scheduled news medium that is:
     (i) Of primary interest to the general public;
     (ii) In a news medium controlled by a person whose business is that news medium; and
     (iii) Not a medium controlled by a candidate or a political committee;
     (d) Slate cards and sample ballots;
     (e) Advertising for books, films, dissertations, or similar works (i) written by a candidate when the candidate entered into a contract for such publications or media at least twelve months before becoming a candidate, or (ii) written about a candidate;
     (f) Public service announcements;
     (g) A mailed 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;
     (h) An expenditure by or contribution to the authorized committee of a candidate for state, local, or judicial office; or
     (i) Any other communication exempted by the commission through rule consistent with the intent of this chapter.
     (((21))) (22) "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. "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. "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.
     (((22))) (23) "Final report" means the report described as a final report in RCW 42.17A.235(2).
     (((23))) (24) "General election" for the purposes of RCW 42.17A.405 means the election that results in the election of a person to a state or local office. It does not include a primary.
     (((24))) (25) "Gift" has the definition in RCW 42.52.010.
     (((25))) (26) "Immediate family" includes the spouse or domestic partner, dependent children, and other dependent relatives, if living in the household. For the purposes of the definition of "intermediary" in this section, "immediate family" means an individual's spouse or domestic partner, and child, stepchild, grandchild, parent, stepparent, grandparent, brother, half brother, sister, or half sister of the individual and the spouse or the domestic partner of any such person and a child, stepchild, grandchild, parent, stepparent, grandparent, brother, half brother, sister, or half sister of the individual's spouse or domestic partner and the spouse or the domestic partner of any such person.
     (((26))) (27) "Incumbent" means a person who is in present possession of an elected office.
     (((27))) (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 eight hundred dollars or more. A series of expenditures, each of which is under eight hundred dollars, constitutes one independent expenditure if their cumulative value is eight hundred dollars or more.
     (((28))) (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, 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.
     (((29))) (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.
     (((30))) (31) "Legislative office" means the office of a member of the state house of representatives or the office of a member of the state senate.
     (((31))) (32) "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.
     (((32))) (33) "Lobbyist" includes any person who lobbies either in his or her own or another's behalf.
     (((33))) (34) "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.
     (((34))) (35) "Ministerial functions" means an act or duty carried out as part of the duties of an administrative office without exercise of personal judgment or discretion.
     (((35))) (36) "Paid signature gatherer" means an individual who is compensated through payments of money or other valuable consideration, by a signature gathering business, to obtain signatures on a state or local initiative, referendum, or recall petition.
     (37) "Participate" means that, with respect to a particular election, an entity:
     (a) Makes either a monetary or in-kind contribution to a candidate;
     (b) Makes an independent expenditure or electioneering communication in support of or opposition to a candidate;
     (c) Endorses a candidate before contributions are made by a subsidiary corporation or local unit with respect to that candidate or that candidate's opponent;
     (d) Makes a recommendation regarding whether a candidate should be supported or opposed before a contribution is made by a subsidiary corporation or local unit with respect to that candidate or that candidate's opponent; or
     (e) Directly or indirectly collaborates or consults with a subsidiary corporation or local unit on matters relating to the support of or opposition to a candidate, including, but not limited to, the amount of a contribution, when a contribution should be given, and what assistance, services or independent expenditures, or electioneering communications, if any, will be made or should be made in support of or opposition to a candidate.
     (((36))) (38) "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.
     (((37))) (39) "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 or opposition in any election campaign.
     (((38))) (40) "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.
     (((39))) (41) "Primary" for the purposes of RCW 42.17A.405 means the procedure for nominating a candidate to state or local office under chapter 29A.52 RCW or any other primary for an election that uses, in large measure, the procedures established in chapter 29A.52 RCW.
     (((40))) (42) "Prime sponsor or sponsors" means the registered voter or voters who complete the affidavit for proposed initiative or referendum or files a recall petition under chapter 29A.56 RCW as well as any persons who hold themselves out publicly as the sponsor of an initiative, referendum, or recall petition.
     (43) "Public office" means any federal, state, judicial, county, city, town, school district, port district, special district, or other state political subdivision elective office.
     (((41))) (44) "Public record" has the definition in RCW 42.56.010.
     (((42))) (45) "Recall campaign" means the period of time beginning on the date of the filing of recall charges under RCW 29A.56.120 and ending thirty days after the recall election.
     (((43))) (46) "Signature gathering business" means a business whose primary activity or primary source of revenue is gathering signatures for ballot measures, initiatives, or recall petitions.
     (47) "Sponsor of an electioneering communications, independent expenditures, or political advertising" means the person paying for the electioneering communication, independent expenditure, or political advertising. If a person acts as an agent for another or is reimbursed by another for the payment, the original source of the payment is the sponsor.
     (((44))) (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.
     (((45))) (49) "State official" means a person who holds a state office.
     (((46))) (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 with respect 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 42.17A.255.
     (((47))) (51) "Treasurer" and "deputy treasurer" mean the individuals appointed by a candidate or political committee, pursuant to RCW 42.17A.210, to perform the duties specified in that section.

NEW SECTION.  Sec. 3   (1) Registration with the secretary of state is required for:
     (a) All businesses operating in this state engaged in the activity of collecting signatures for state or local initiatives, referenda, or recall petitions and that are using paid signature gatherers; and
     (b) All paid signature gatherers.
     (2) Registration is valid for:
     (a) Only one state or local initiative, referendum, or recall petition in the case of a paid signature gatherer. In the event a paid signature gatherer is gathering signatures for more than one state or local initiative, referendum, or recall petition, registration and a separate registration number is required for each petition. The secretary of state shall provide each registered signature gatherer with an individual registration number for each state or local initiative, referendum, or recall petition on which signatures will be gathered; and
     (b) One calendar year in the case of a business operating in this state engaged in the activity of collecting signatures for state or local initiatives, referenda, or recall petitions and that are using paid signature gatherers. In the event that a business becomes involved with the collection of signatures for any state or local initiatives, referenda, or recall petitions that are using paid signature gatherers that were not listed on their original registration for that calendar year, the business must notify the secretary of state within five working days of becoming involved in the new petition.
     (3) To register with the secretary of state, a paid signature gatherer must provide:
     (a) His or her full name and assumed name, if any;
     (b) The street address of his or her permanent residence;
     (c) His or her signature;
     (d) A list of the state or local initiatives, referenda, or recall petitions on which the paid signature gatherer will gather signatures;
     (e) A signed statement attesting that the paid signature gatherer: (i) Has not been convicted of a criminal offense involving fraud, forgery, or identification theft within the past five years; (ii) has not been convicted of a crime under chapter 29A.84 RCW, or its equivalent in another jurisdiction, in the past five years; and (iii) has not been found in violation of elections law under chapter 29A.84 RCW, or its equivalent in another jurisdiction, in the past five years;
     (f) A signed statement acknowledging that the paid signature gatherer has read and understands Washington law applicable to the gathering of signatures on state or local initiatives, referenda, or recall petitions; and
     (g) A conventional photograph showing the paid signature gatherer's head, neck, and shoulders, and is appropriate for copying and processing by the secretary of state; and
     (h) A statement signed by the business operating in the state engaged in the activity of collecting signatures for the state or local initiative, referendum, or recall petition, which hired the paid signature gatherer to gather signatures acknowledging that the business is liable for violations of law or rule committed by the paid signature gatherer obtaining signatures as provided in RCW 29A.84.220 and 29A.84.250.
     (4) To register with the secretary of state, a business operating in this state engaged in the activity of collecting signatures for state or local initiatives, referenda, or recall petitions that is using paid signature gatherers must provide:
     (a) The name of the business as registered with the applicable state agency depending on the business structure, which may include the department of revenue or the department of licensing, as well as any other names under which the business is doing business or any trade names;
     (b) The street address of the main office in the state, the mailing address, if different, the office phone number, and the business e-mail address, if any. If the business is operated out of a residence, the residence shall be considered the main office for the purposes of this subsection;
     (c) The full name of the business owner or owners and any assumed names;
     (d) A signature of the business owner or owners;
     (e) A signed statement attesting that the business owner or owners: (i) Have not been convicted of a criminal offense involving fraud, forgery, or identification theft within the past five years; (ii) have not been convicted of a crime under chapter 29A.84 RCW, or its equivalent in another jurisdiction, in the past five years; and (iii) have not been found in violation of elections law under chapter 29A.84 RCW, or its equivalent in another jurisdiction, in the past five years;
     (f) A list of the state or local initiatives, referenda, or recall petitions on which the business will be involved with the gathering of signatures; and
     (g) A signed statement acknowledging the business owner or owners have read and understand Washington law applicable to the gathering of signatures on state or local initiatives, referenda, or recall petitions.
     (5) A person, including a business owner, is ineligible for registration under this section if he or she: (a) Has been convicted of a criminal offense involving fraud, forgery, or identification theft in any jurisdiction within the past five years; (b) has been convicted of a crime under chapter 29A.84 RCW, or its equivalent in another jurisdiction, in the past five years; or (c) has been found in violation of elections law under chapter 29A.84 RCW, or its equivalent in another jurisdiction, in the past five years.
     (6) When gathering signatures, a paid signature gatherer must carry on his or her person evidence of registration including the paid signature gatherer's photograph and registration number. If requested, the paid signature gatherer shall produce the evidence of registration.

NEW SECTION.  Sec. 4   The secretary of state shall adopt rules necessary to implement sections 3 and 6 of this act, including rules establishing procedures for registering persons for obtaining signatures of electors on state or local initiatives, referenda, or recall petitions.

NEW SECTION.  Sec. 5   If a person obtains signatures of electors on a state or local initiative, referendum, or recall petition, and the paid signature gatherer was not registered as required by section 3 of this act at the time the signatures were obtained, the signatures shall not be invalidated because of the failure of the signature gatherer. Any petition with an unsigned declaration or declaration that is circulated by an unregistered signature gatherer is subject to a full signature check by the secretary of state. Paid signature gatherers found to have not registered with the secretary of state within seventy-two hours of collecting their first signature shall be subject to a fine in an amount not to exceed five hundred dollars. Fines collected are expressly designated for deposit in the secretary of state's revolving fund.

NEW SECTION.  Sec. 6   (1) A registered paid signature gatherer who knowingly submits an invalid signature will have his or her registration number revoked and he or she is prohibited from registering for five years from the date of the secretary of state's revocation order. This subsection applies when:
     (a) The paid signature gatherer provides a petition that contains an invalid signature as determined by the secretary of state; and
     (b) The secretary of state determines that the signature was obtained by that paid signature gatherer and the paid signature gatherer knew or should have known the signature was invalid. However, this subsection does not apply when the paid signature gatherer had no knowledge or reason to know that the signature was invalid including, but not limited to, the paid signature gatherer did not know and had no reason to know the signature was a duplicate, that the person's signature had changed over time and no longer matched the signature on file with the relevant election official, that the person had moved to a new residence but failed to update his or her voter registration form before signing the petition, and the signature did not match a valid registered voter in Washington.
     (2) When the secretary of state is informed that a registered paid signature gatherer has been convicted of any of the crimes described in (a) through (d) of this subsection, or the secretary of state makes a finding under (e) of this subsection, the paid signature gatherer will have his or her registration number revoked and he or she is prohibited from applying for future registrations for five years from the date of the secretary of state's revocation order. This subsection applies to a paid signature gatherer who:
     (a) Has been convicted of violating RCW 9.44.080 or 9A.46.020;
     (b) Has been convicted of violating a provision of chapter 29A.84 RCW or the felonies or misdemeanors referenced therein;
     (c) Has been convicted of any other election-related crime in any state or federal court;
     (d) Has been convicted in any state or federal court of a criminal offense involving fraud, forgery, or identification theft; or
     (e) Has been determined by the secretary of state to have submitted false information on his or her registration application.

NEW SECTION.  Sec. 7   The failure to register under section 3 of this act by a business operating in this state engaged in the activity of collecting signatures for state or local initiatives, referenda, or recall petitions using paid signature gatherers does not invalidate any signatures gathered by the business and its paid signature gatherers. Any business that fails to register under section 3 of this act and submits petitions will be subject to a full signature check on all submitted petitions by the secretary of state. Additionally, any business operating in this state engaged in the activity of collecting signatures for state or local initiatives, referenda, or recall petitions found to have not registered within seventy-two hours of collecting their first signatures shall be subject to a fine of not less than ten thousand dollars or the cost of conducting a full signature check, whichever is greater, as determined by the secretary of state. Fines collected are expressly designated for deposit into the secretary of state's revolving fund.

NEW SECTION.  Sec. 8   The definitions in this section apply to sections 5 and 7 of this act:
     (1) "Circulator" means an individual who is a paid or volunteer signature gatherer who obtains the signatures of voters on petitions. A "circulator" does not include a person who only submits the signed petitions to the secretary of state.
     (2) "Paid signature gatherer" means an individual who is compensated through payments of money or other valuable consideration, by a signature gathering business, to obtain signatures on a state or local initiative, referendum, or recall petition.
     (3) "Prime sponsor or sponsors" means the registered voter or voters who complete the affidavit for proposed initiative or referendum or files a recall petition under chapter 29A.56 RCW as well as any persons who hold themselves out publicly as the sponsor of an initiative, referendum, or recall petition.
     (4) "Signature gathering business" means a business whose primary activity or primary source of revenue is gathering signatures for ballot measures, initiatives, or recall petitions.
     (5) "Volunteer signature gatherer" means an individual who is not compensated through payments of money to obtain signatures on a state or local initiative, referendum, or recall petition and is not required to register under sections 3 through 7 of this act.

NEW SECTION.  Sec. 9   (1) The secretary of state, by rule, may collect a fee for businesses operating in the state engaged in the activity of paid signature gathering to cover the costs of registration incurred by the secretary of state, and to cover the costs associated with conducting a full signature check on any petition that is not signed by a signature gatherer. Additionally, a signature gathering business is responsible for paying the costs of a full signature check when that business fails to register within seventy-two hours of collecting the first signature. Otherwise, a political committee of a ballot measure, initiative, or recall petition is responsible for covering the costs of a full signature check on petitions with unsigned declarations.
     (2) The fees collected under this section must be deposited into the secretary of state's revolving fund established under RCW 43.07.130.

NEW SECTION.  Sec. 10   Sections 3 through 7 of this act do not apply to individuals who volunteer to engage in the activity of collecting signatures for state or local initiatives, referenda, or recall petitions.

Sec. 11   RCW 29A.72.010 and 2003 c 111 s 1802 are each amended to read as follows:
     If any legal voter of the state, either individually or on behalf of an organization, desires to petition the legislature to enact a proposed measure, or submit a proposed initiative measure to the people, or order that a referendum of all or part of any act, bill, or law, passed by the legislature be submitted to the people, he or she shall file with the secretary of state a legible copy of the measure proposed, or the act or part of such act on which a referendum is desired, accompanied by an affidavit that the sponsor is a legal voter and a filing fee ((prescribed under RCW 43.07.120)) of five hundred dollars. If the measure is certified by the secretary of state for the general election ballot, the sponsor shall receive a refund of four hundred fifty dollars. Any sponsor who lacks sufficient assets or income at the time of filing to pay the filing fee required by this section shall submit at least one thousand valid signatures of registered voters in order to be exempt from the filing fee.

Sec. 12   RCW 29A.72.110 and 2005 c 239 s 1 are each amended to read as follows:
     Petitions for proposing measures for submission to the legislature at its next regular session must be substantially in the following form:

     The warning prescribed by RCW 29A.72.140; followed by: