Z-1372               _______________________________________________

                                                   SENATE BILL NO. 6451

                        _______________________________________________

State of Washington                              50th Legislature                              1988 Regular Session

By Senators Pullen and Talmadge; by request of Public Disclosure Commission

Read first time 1/21/88 and referred to Committee on Law & Justice.

AN ACT Relating to lobbying, political advertising, and public office funds; amending RCW 42.17.020, 42.17.150, 42.17.155, 42.17.160, 42.17.170, 42.17.180, 42.17.240, 42.17.530, 42.17.540, 42.17.095, and 42.17.243; and adding new sections to chapter 42.17 RCW.

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

                                                                              PART I

                                                                           LOBBYING

        Sec. 101.  Section 2, chapter 1, Laws of 1973 as last amended by section 5, chapter 34, Laws of 1984 and RCW 42.17.020 are each amended to read as follows:

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

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

          (3) "Benefit" means any commercial, proprietary, financial, economic, or monetary advantage, or the avoidance of any commercial, proprietary, financial, economic, or monetary disadvantage.

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

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

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

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

          (b) Announces publicly or files for office.

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

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

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

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

          (((10))) (11) "Contract lobbyist" means a person, other than a regular employee of a lobbyist's employer, which contracts for economic consideration for the purpose of lobbying.

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

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

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

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

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

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

          (((16))) (18) "Gift" means a rendering of money, property, services, discount, loan forgiveness, payment of indebtedness, or anything else of value in return for which legal consideration of equal of greater value is not given and received but does not include:

(a) Any contribution that is required to be either deposited in a campaign depository under RCW 42.17.060 or reported under RCW 42.17.243;

(b) Any informational material that is transferred for the purpose of informing the recipient about matters pertaining to official agency business, and that is not intended to financially benefit that recipient;

(c) Any symbolic presentation that is not intended to financially benefit the recipient;

(d) Any honorarium that is required to be reported under this chapter;

(e) Any hosting in the form of entertainment, meals, or refreshments furnished in connection with official appearances, official ceremonies, and occasions where official agency business is discussed; or

(f) Gifts that are not used and that, within thirty days after receipt, are returned to the donor or delivered to a charitable organization without being claimed as a charitable contribution for tax purposes.

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

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

          (((18))) (21) "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 acts, chapter 34.04 RCW and chapter 28B.19 RCW.

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

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

          (((21))) (24) "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.

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

          (((23))) (26) "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.

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

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

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

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

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

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

        Sec. 102.  Section 15, chapter 1, Laws of 1973 as last amended by section 1, chapter 201, Laws of 1987 and RCW 42.17.150 are each amended to read as follows:

          (1) ((Before doing any lobbying, or)) Each lobbyist employer shall, within ((thirty days)) two weeks after ((being employed as a lobbyist, whichever occurs first, a lobbyist shall)) employing or agreeing to compensate or pay other consideration to any person for lobbying, register by filing with the commission a ((lobbyist)) registration statement signed by the chief executive officer or other official with authority to sign for the employer, in such detail as the commission shall prescribe((, showing:)).

The registration shall include:

(a) The employer's name, permanent business address, and telephone number;

(b) The employer's occupation or business;

(c) The name and address of the person who will have custody of the accounts, bills, receipts, books, papers, and documents relating to expenditures for lobbying;

(d) If the lobbyist's employer is an entity (including, but not limited to, business and trade associations) which as a representative entity lobbies for individuals, businesses, groups, associations, or organizations, the name and address of each member of such entity or person represented by such entity whose fees, dues, payments, or other consideration paid to such entity during either the prior two years have exceeded five hundred dollars or who is obligated to or has agreed to pay fees, dues, payments, or other consideration exceeding five hundred dollars to such entity during the current year;

(e) The name and address of each lobbyist and contract lobbyist authorized to lobby for or on behalf of the employer, and a full and particular description of any agreement, arrangement, or understanding according to which any compensation will be contingent upon the success of any attempt to influence legislation;

(f) The general subjects of legislative interest.  If lobbying is expected to be conducted before state agencies, the name of each agency;

(g) If the employer has a connected, related, or closely affiliated political committee, the name of that committee; and

(h) Such other information as the commission shall by rule prescribe.

(2) Before doing any lobbying or within two weeks of being employed or authorized to lobby, whichever occurs first, each lobbyist shall file a registration in such detail as the commission shall prescribe.  The lobbyist's registration shall include:

          (a) ((His)) The lobbyist's name, permanent business address, and ((any temporary residential and business addresses in Thurston county during the legislative session)) telephone number;

          (b) The name((, address and occupation or business)) of the lobbyist's employer;

          (c) ((The duration of his employment;

          (d) His)) The compensation expected for lobbying; how much he is to be paid for expenses, and what expenses are to be reimbursed;

          (((e))) (d) Whether the person from whom he receives said compensation employs him solely as a lobbyist or whether he is a regular employee performing services for his employer which include but are not limited to the influencing of legislation;

          (((f) The general subject or subjects of his legislative interest;

          (g) A written authorization from each of the lobbyist's employers confirming such employment;

          (h))) (e) The name and address of the person who will have custody of the accounts, bills, receipts, books, papers, and documents required to be kept under this chapter((;

          (i) If the lobbyist's employer is an entity (including, but not limited to, business and trade associations) whose members include, or which as a representative entity undertakes lobbying activities for, businesses, groups, associations, or organizations, the name and address of each member of such entity or person represented by such entity whose fees, dues, payments, or other consideration paid to such entity during either of the prior two years have exceeded five hundred dollars or who is obligated to or has agreed to pay fees, dues, payments, or other consideration exceeding five hundred dollars to such entity during the current year)).

                                                                                    (3) Each contract lobbyist shall, before doing any lobbying or within two weeks after agreeing to lobby on behalf of an employer, whichever is first, register with the commission.  The contract lobbyist's registration shall be in such detail as the commission shall prescribe and shall include:

(a) The contract lobbyist's name, permanent business address, and telephone number;

(b) The name of the person employing or compensating the contract lobbyist for lobbying;

(c) The name of each individual who is a proprietor, officer, partner, or employee of the contract lobbyist and who is authorized to lobby on behalf of the employer;

(d) The name and address of each other lobbyist, contract lobbyist, or subcontractor the contract lobbyist expects to compensate or give other consideration for assisting with the lobbying effort;

(e) The compensation expected or agreed to be paid to the contract lobbyist and the terms of the compensation; how much is to be paid for expenses, and what expenses are to be reimbursed; and a full and particular description of any agreement, arrangement, or understanding according to which the compensation, or any portion thereof, is or will be contingent upon the success of any attempt to influence legislation;

(f) Whether the employer from whom the contract lobbyist receives compensation employs it solely as a lobbyist;

(g) The name and address of the person who will have custody of the accounts, bills, receipts, books, papers, and documents required to be kept under this chapter; and

(h) Such other information as the commission shall by rule prescribe.

          (((2))) (4) Any lobbyist or contract lobbyist who receives or is to receive compensation from more than one person for his services as a lobbyist with respect to the same legislation or type of legislation shall file a separate ((notice of representation with respect to)) registration for each such person((; except that where a lobbyist whose fee for acting as such in respect to the same legislation or type of legislation is, or is to be, paid or contributed to by more than one person then such lobbyist may file a single statement, in which he shall detail the name, business address and occupation of each person so paying or contributing, and the amount of the respective payments or contributions made by each such person)), and each such person shall file a lobbyist employer registration as required under subsection (1) of this section.

          (((3))) (5) Each person who lobbies on his or her own behalf and who is not exempt from registration by RCW 42.17.160 shall file the registration statements required by subsections (1) and (2) of this section.

(6) Whenever a change, modification, or termination of the ((lobbyist's employment)) registration occurs, the ((lobbyist)) person whose registration is affected shall, within ((one)) two weeks of such change, modification, or termination, furnish full information regarding the same ((by filing with)) to the commission ((an amended registration statement)).

          (((4))) (7) Each ((lobbyist)) person who has registered shall file a new registration statement, revised as appropriate, on the second Monday in January of each odd-numbered year, and failure to do so shall terminate his registration.

        Sec. 103.  Section 21, chapter 294, Laws of 1975 1st ex. sess. as last amended by section 8, chapter 367, Laws of 1985 and RCW 42.17.155 are each amended to read as follows:

(1) Each lobbyist shall at the time he registers submit to the commission a recent photograph of himself of a size and format as determined by rule of the commission, together with the name of the lobbyist's employer, the length of his employment as a lobbyist before the legislature, a brief biographical description, and any other information he may wish to submit not to exceed fifty words in length.  ((Such))

(2) Each contract lobbyist shall submit the photograph and information required under subsection (1) of this section for each individual authorized to lobby on behalf of its lobbyist employers.

(3) The photograph and information shall be published ((at least annually)) biannually in a booklet form by the commission for distribution to legislators and the public.

        Sec. 104.  Section 16, chapter 1, Laws of 1973 as last amended by section 12, chapter 147, Laws of 1982 and RCW 42.17.160 are each amended to read as follows:

          The following persons and activities shall be exempt from registration ((and reporting)) under RCW 42.17.150((, 42.17.170, and 42.17.200)):

          (1) Persons who limit their lobbying activities to appearing before public sessions of committees of the legislature, or public hearings of state agencies;

          (2) News or feature reporting activities and editorial comment by working members of the press, radio, or television and the publication or dissemination thereof by a newspaper, book publisher, regularly published periodical, radio station, or television station;

          (3) Persons ((who lobby without)) whose compensation or other consideration for acting as a lobbyist((:  PROVIDED, Such)) is only reimbursement for travel expenses, if the person ((makes no)) limits expenditures to a total of fifty dollars for or on behalf of ((any)) members of the legislature ((or)), candidates for election to the legislature, state elected officials, or ((public)) state officers or employees ((of the state of Washington)) in connection with such lobbying.  The exemption contained in this subsection is intended to permit and encourage citizens of this state to lobby any legislator, public official, or state agency without incurring any registration or reporting obligation provided they do not exceed the limits stated above.  Any person exempt under this subsection (((3))) may at his option register and report under this chapter;

          (4) Persons who limit their activities to monitoring activities of the legislature, its committees, or a state agency or to providing professional services in drafting bills or in advising an employer and in rendering opinions as to the construction and effect of proposed or pending legislation where such professional service is not otherwise connected with lobbying;

(5) Persons not otherwise exempt under subsection (3) of this section who restrict their lobbying activities to no more than four days or parts thereof during any three-month period, and whose total expenditures during such three-month period for or on behalf of any one or more members of the legislature or state elected officials or public officers or employees of the state of Washington in connection with such lobbying do not exceed ((twenty-five [dollars]:  PROVIDED, That)) fifty dollars.  However, any compensation paid to or expenditures made by or on behalf of such persons for lobbying for or on behalf of the employer of a registered lobbyist shall be reported on the expenditure report required to be filed by lobbyists and contract lobbyists.  In addition, the commission ((shall)) may promulgate regulations to require disclosure by persons exempt under this subsection or their employers or entities which sponsor or coordinate the lobbying activities of such persons if it determines that such regulations are necessary to prevent frustration of the purposes of this chapter.  Any person exempt under this subsection (((4))) may at his option register and report under this chapter;

          (((5))) (6) The governor;

          (((6))) (7) The lieutenant governor;

          (((7))) (8) Except as provided by RCW 42.17.190(1), members of the legislature;

          (((8))) (9) Except as provided by RCW 42.17.190(1), persons employed by the legislature for the purpose of aiding in the preparation or enactment of legislation or the performance of legislative duties;

          (((9))) (10) Elected officials, and officers and employees of any agency reporting under RCW 42.17.190(4) as now or hereafter amended.

        Sec. 105.  Section 17, chapter 1, Laws of 1973 as last amended by section 1, chapter 423, Laws of 1987 and RCW 42.17.170 are each amended to read as follows:

          (1) ((Any)) A lobbyist registered or required to be registered under RCW 42.17.150 ((and any person who lobbies)) shall file with the commission ((periodic)) a monthly report((s)) of ((his activities signed by the lobbyist)) compensation and expenditures.  The report((s)) shall be made in the form and manner prescribed by the commission.  ((They shall be due monthly)) The report shall cover a calendar month and shall be filed within fifteen days after the last day of ((the calendar)) that month ((covered by the report)).

          (2) Each ((such))  monthly ((periodic)) report shall contain:

          (a) ((The totals of all expenditures for lobbying activities made or incurred by such lobbyist or on behalf of such lobbyist by the lobbyist's employer during the period covered by the report.  As used in this section, "lobbying activities" includes, but is not limited to, the development of legislation or rules, the development of support for or opposition to legislation or rules, and attempts to influence the development of legislation or rules.  Such totals for lobbying activities shall be segregated according to financial category, including compensation; food and refreshments; living accommodations; advertising; travel;  contributions; and other expenses or services.  Each individual expenditure of more than twenty-five dollars for entertainment shall be identified by date, place, amount, and the names of all persons in the group partaking in or of such entertainment including any portion thereof attributable to the lobbyist's participation therein but without allocating any portion of such expenditure to individual participants.

          Notwithstanding the foregoing, lobbyists are not required to report the following:

          (i) Unreimbursed personal living and travel expenses not incurred directly for lobbying;

          (ii) Any expenses incurred for his or her own living accommodations;

          (iii) Any expenses incurred for his or her own travel to and from hearings of the legislature;

          (iv) Any expenses incurred for telephone, and any office expenses, including rent and salaries and wages paid for staff and secretarial assistance.

          (b) In the case of a lobbyist employed by more than one employer, the proportionate amount of such expenditures in each category incurred on behalf of each of his employers.

          (c) An itemized listing of each such expenditure in the nature of a contribution of money or of tangible or intangible personal property to any candidate, elected official, or officer or employee of any agency, or any political committee supporting or opposing any ballot proposition, or for or on behalf of any candidate, elected official, or officer or employee of any agency, or any political committee supporting or opposing any ballot proposition.  All contributions made to, or for the benefit of, any candidate, elected official, or officer or employee of any agency, or any political committee supporting or opposing any ballot proposition shall be identified by date, amount, and the name of the candidate, elected official, or officer or employee of any agency, or any political committee supporting or opposing any ballot proposition receiving, or to be benefited by each such contribution.

          (d))) The total compensation and reimbursement paid or owed to the lobbyist by the employer for lobbying services performed during the report period.  Amounts to be reported shall include those for time, services, and reimbursement of expenses in direct and indirect contacts with legislators, legislative staff, state elected officials, and state officers and employees for lobbying.  A lobbyist shall not be required to include in reported compensation the value of fringe benefits such as retirement credits, medical insurance, vacation, and similar benefits that are not paid directly to the employee.  The amounts shall also include charges for services in researching issues, developing strategy, drafting bills, or advising the employer and rendering opinions as to the construction and effect of proposed or pending legislation if such activities may reasonably be expected to result in or be an integral part of lobbying;

(b) The amount for or value of entertainment, including food and refreshments.  Each individual expenditure of fifty dollars or more shall identify the date, place, amount, and the names of each person entertained, including lobbyists and other officers, members, and employees of the lobbyist employer;

(c) The amount for or value of gifts, tickets, passes, or travel expenses, including transportation, lodging, meals, and other travel-related expenses, provided to legislators, state officials or employees, or members of their immediate families by the lobbyist or lobbyist's employer.  At any time the value of gifts or travel to one person exceeds twenty-five dollars during a calendar year, the name of the recipient, the total value of gifts to that person, and the name of the employer responsible for the gifts shall be reported;

(d) The amount or value of contributions or other campaign assistance to any candidate for state elective office, any political committee whose purpose is to support or oppose the election of one or more candidates for state elective office, the office fund account of any state elected official or state officer, any fund of a caucus of the legislature, any state or legislative district political committee, any political committee that supports or opposes a state-wide ballot measure or any person who supports or opposes a grass roots lobby campaign.  Each individual contribution of twenty-five dollars or more shall identify the date, amount, name of the recipient, and name of the employer on whose behalf the contribution was made;

(e) The amount paid or promised to be paid for lobbying to any lobbyist, expert witness, or subcontractor, not a regular employee of the lobbyist's employer.  The report shall include the recipient's name and business address, the employer on whose behalf the lobbying was done, and a brief description of the lobbying activities.

(f) The amount for advertising, mailings, public relations, polling, and similar lobbying activities addressed to the public or a segment of the public.  The report shall include the name of the employer on whose behalf the activity was done;

(g) The amount expended for or value of activities required to be reported by section 108 of this 1988 act.  A copy of each report of special lobbying activity shall accompany the lobbyist's monthly report;

(h) The subject matter of proposed legislation or other legislative activity or rule-making under chapter 34.04 RCW and chapter 28B.19 RCW (the state administrative procedure acts) and the state agency considering the same, which the lobbyist has been engaged in supporting or opposing during the reporting period((.)); and

          (((e))) (i) Such other information relevant to lobbying activities as the commission shall by rule prescribe.  Information supporting such activities as are required to be reported is subject to audit by the commission.

(3)(a) The compensation and expenditures to be reported under this section are those whose principal purpose is for lobbying, and those that would not have been made but for lobbying.

(b) The amounts or values required to be reported shall include cash and the value of goods, services, or tangible or intangible property.

NEW SECTION. Sec. 106.  A new section is added to chapter 42.17 RCW to read as follows:

          (1) Each contract lobbyist registered under this chapter shall file a report of compensation and expenditures with the commission.  The report shall cover a calendar month and shall be filed within fifteen days after the last day of that month.

          (2) The monthly report shall contain:

          (a) The name and address of the contract lobbyist;

          (b) The name of each employer for whom the contract lobbyist is registered to lobby;

          (c) The total compensation and reimbursement owed by each employer for lobbying services performed during the report period.  Charges to be reported shall include those for time, services, and reimbursement of expenses in direct and indirect contacts with legislators, legislative staff, elected officials, and officers and employees of the state of Washington for lobbying.  The charges shall also include charges for professional services in drafting bills, advising clients, or rendering opinions as to the construction and effect of proposed or pending legislation if such activities may reasonably be expected to result in or be an integral part of lobbying;

          (d) The names of officers or employees of the contract lobbyist who lobbied during the month, and the employer on whose behalf the person lobbied;

          (e) The amount incurred for or value of entertainment, including food and refreshments.  Each individual expenditure of fifty dollars shall identify the date, place, amount, and names of each person entertained, including the contract lobbyist, its employees and officers, members, and employees of the lobbyist's employer;

          (f) The amount incurred for or value of gifts, tickets, passes, or travel expenses, including transportation, lodging, meals, and other travel-related expenses, provided to legislators, state officials and employees, and members of their immediate families.  At any time the value of gift or travel to one person exceeds twenty-five dollars during a calendar year, the name of the recipient, the total value of gifts to that person, and the name of the employer responsible for the gifts shall be reported;

          (g) The amount incurred for or value of contributions or other campaign assistance to any candidate for state elective office, any political committee whose purpose is to support or oppose the election of one or more candidates for state elective office, the office fund account of any state elected official or state officer, any fund of a caucus of the legislature, any state or legislative district political committee, any political committee formed for the purpose of supporting or opposing a state-wide ballot measure, or any grass roots lobby campaign;

          (h) The amount paid or promised to be paid for lobbying or to assist in lobbying to any lobbyist, contract lobbyist, expert witness, or subcontractor, not a regular employee of the contract lobbyist.  The report shall include the recipient's name and address, the employer on whose behalf the lobbying was done, and a brief description of the lobbying activities;

          (i) The amount incurred for advertising, mailings, public relations, polling, and similar lobbying activities addressed to the public or a segment of the public.  The report shall include the name of the employer on whose behalf the activity was done;

          (j) The amount expended for or value of special lobbying activities required to be reported by section 108 of this act.  A copy of each report of special lobbying activity shall accompany the lobbying firm's monthly report;

          (k) The specific subject matter of proposed legislation or other legislative activity or rule-making under chapters 34.04 and 28B.19 RCW (the state administrative procedure acts) and the state agency considering the same, which the contract lobbyist has been engaged in supporting or opposing during the reporting period; and

          (l) Such other information as the commission shall by rule prescribe.

          (3)(a) The compensation and expenditures to be reported under this section are those whose principal purpose is for lobbying, and those that would not have been made but for lobbying.

          (b) The amounts or values required to be reported shall include cash and the value of goods, services, or tangible or intangible property.

        Sec. 107.  Section 18, chapter 1, Laws of 1973 as last amended by section 2, chapter 423, Laws of 1987 and RCW 42.17.180 are each amended to read as follows:

          ((Every employer of a lobbyist registered under this chapter during the preceding calendar year shall file with the commission on or before March 31st of each year a statement disclosing for the preceding calendar year)) Each lobbyist employer registered under RCW 42.17.150 shall file with the commission a report for each half of a calendar year during which the registration was in effect.  The report shall be filed within one month of the end of the period and shall contain the following information:

          (1) The name of each state elected official and the name of each candidate for state office who was elected to the office during the period and any member of the immediate family of those persons to whom the employer has paid any compensation in the amount of five hundred dollars or more during the preceding calendar year for personal employment or professional services, including professional services rendered by a corporation, partnership, joint venture, association, union, or other entity in which the person holds any office, directorship, or any general partnership interest, or an ownership interest of ten percent or more, the value of the compensation in accordance with the reporting provisions set out in RCW 42.17.241(2), and the consideration given or performed in exchange for the compensation.

          (2) The name of each state elected official, successful candidate for state office, or members of his immediate family to whom the lobbyist employer made expenditures, directly or indirectly, either through a lobbyist or otherwise, the amount of the expenditures and the purpose for the expenditures.  For the purposes of this subsection, the term expenditure shall not include any expenditure made by the employer in the ordinary course of business if the expenditure is not made for the purpose of influencing, honoring, or benefiting the elected official, successful candidate, or member of his immediate family, as an elected official or candidate.

          (3) The total expenditures made by the employer for lobbying purposes, whether through or on behalf of a registered lobbyist, contract lobbyist, or otherwise.  ((For the purposes of this subsection, "lobbying purposes" includes, but is not limited to, the development of legislation or rules, the development of support for or opposition to legislation or rules, and attempts to influence the development of legislation or rules.))

          (4) All contributions made to a candidate for state office, ((to)) a political committee supporting or opposing a candidate for state office, ((or to)) the office fund account of any state elected official or state officer, any fund of a caucus of the legislature, any state or legislative district political committee, a political committee supporting or opposing a state-wide ballot proposition, or any grass roots lobby campaign.  Such contributions shall be identified by the date, name, and ((the)) address of the recipient and the aggregate amount contributed to each such recipient.

          (5) The name and address of each political committee associated, affiliated, or sponsored by the employer and the total contribution made by the committee during the period.

(6) The name and address of and total compensation and reimbursement for lobbying paid to each registered lobbyist and contract lobbyist employed, hired, contracted, or retained by the employer and the total expenditures made by the employer for each such lobbyist for lobbying purposes.  ((As used in this subsection, "lobbying purposes" includes, but is not limited to, the development of legislation or rules, the development of support for or opposition to legislation or rules, and attempts to influence the development of legislation or rules.

          (6))) (7) The name and amount paid each employee or other person to or for whom fees, salary, or wages of five hundred dollars or more was expended for lobbying or professional assistance for lobbying.

(8)(a) The compensation and expenditures to be reported under this section are those whose principal purpose is for lobbying, and those that would not have been made but for lobbying.

(b) The amounts or values required to be reported shall include cash, the value of goods, services, or tangible or intangible property.

(9) Such other information as the commission prescribes by rule.

NEW SECTION. Sec. 108.  A new section is added to chapter 42.17 RCW to read as follows:

          (1) Any person who spends five hundred dollars or more to sponsor a lobbying activity other than that covered by RCW 42.17.200 shall report the information required in section 105 of this act.

          (2) For purposes of this section:  (a) "Special lobbying activities" includes but is not limited to receptions, rallies, demonstrations, transportation of members or supporters to facilitate individual or group lobbying, dinners, conventions, mass gatherings, parades, and mailings; and (b) "sponsor" means the person or entity who pays for, organizes, coordinates, or directs a lobbying activity.

          (3) Within two weeks after the lobbying activity, the sponsor shall file with the commission a report including the following:

          (a) The name and address of the sponsor;

          (b) The name and address of the principal officers of the sponsor;

          (c) A description of the activity and the place and date on which it was conducted;

          (d) The name, address, and amount contributed by each person who contributed money, goods, or services with a value of one hundred dollars or more;

          (e) The total of all expenditures made to sponsor or support the activity.   Expenditures shall be listed in the following categories:

          (i) Salaries or compensation of persons paid to plan, coordinate, operate, or participate in the event;

          (ii) Advertising and printing;

          (iii) Transportation;

          (iv) Food, beverages, and catering;

          (v) Lodging;

          (vi) Rent of buildings or equipment; and

          (vii) Other expenditures; and

          (g) Such other information as the commission may require by rule.

NEW SECTION. Sec. 109.  A new section is added to chapter 42.17 RCW to read as follows:

          (1) Each item of legislative information shall include the name and address of the lobbyist employer, lobbyist, contract lobbyist, or other person or persons paying for its preparation, printing, publication, or distribution.

          (2) "Legislative information," as used in this section, means advertising, books, pamphlets, reports, flyers, and other materials prepared, printed, published, or distributed for the principal purpose of attempting to influence the passage or defeat of any legislation by the state legislature, or the adoption or rejection of any rule, standard, rate, or other legislative enactment by any state agency.

        Sec. 110.  Section 19, chapter 295, Laws of 1987 and RCW 42.17.240 are each amended to read as follows:

          (1) Every elected official and every executive state officer shall after January 1st and before April 15th of each year file with the commission a statement of financial affairs for the preceding calendar year.  However, any local elected official whose term of office expires immediately after December 31st shall file the statement required to be filed by this section for the year that ended on that December 31st.  In addition to and in conjunction with the statement of financial affairs, every official and officer shall file a statement describing any gifts received during the preceding calendar year.  The statement may exclude intrafamily gifts and gifts that do not exceed fifty dollars in value.

          (2) Every candidate shall within two weeks of becoming a candidate file with the commission a statement of financial affairs for the preceding twelve months.

          (3) Every person appointed to a vacancy in an elective office or executive state officer position shall within two weeks of being so appointed file with the commission a statement of financial affairs for the preceding twelve months.

          (4) A statement of a candidate or appointee filed during the period from January 1st to April 15th shall cover the period from January 1st of the preceding calendar year to the time of candidacy or appointment if the filing of the statement would relieve the individual of a prior obligation to file a statement covering the entire preceding calendar year.

          (5) No individual may be required to file more than once in any calendar year.

          (6) Each statement of financial affairs filed under this section shall be sworn as to its truth and accuracy.

          (7) For the purposes of this section, the term "executive state officer" includes those listed in RCW 43.17.020 and those listed in RCW 42.17.2401.

          (8) This section does not apply to incumbents or candidates for a federal office or the office of precinct committee officer.

                                                                             PART II

                                                               POLITICAL ADVERTISING

NEW SECTION. Sec. 201.  A new section is added to chapter 42.17 RCW to read as follows:

          The definitions in this section apply throughout RCW 42.17.510 through 42.17.540.

          (1) "Actual malice" means to act with knowledge of falsity or with reckless disregard as to truth or falsity.

          (2) "Sponsor" means the candidate, political committee, or person paying for the advertisement.  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.

          (3) "Incumbent" means a person who is in present possession of an elected office.

        Sec. 202.  Section 3, chapter 216, Laws of 1984 and RCW 42.17.530 are each amended to read as follows:

          ((A person shall not sponsor political advertising which contains information that the person knows, or should reasonably be expected to know, to be false.  No political advertising may falsely represent that a candidate is an incumbent for the office sought.  A person or candidate shall not make, either directly or indirectly, a false claim stating or implying the support or endorsement of any person or organization.)) (1) It is a violation of this chapter for a person to sponsor, prepare, or cause to be prepared with actual malice:

(a) Political advertising that contains a false statement of material fact;

(b) Political advertising that falsely represents that a candidate is the incumbent for the office sought when in fact the candidate is not the incumbent; or

(c) Political advertising that makes either directly or indirectly, a false claim stating or implying the support or endorsement of any person or organization when in fact the candidate does not have such support or endorsement.

(2) Any violation of this section shall be proven by clear and convincing evidence.

        Sec. 203.  Section 4, chapter 216, Laws of 1984 and RCW 42.17.540 are each amended to read as follows:

          (1) Except as provided in subsection (2) of this section, the responsibility for compliance with RCW 42.17.510 through 42.17.530 shall rest with the ((sponsor of)) person who sponsors, prepares, or causes to be prepared the political advertising and not with the broadcasting station or other medium.

          (2) If a broadcasting station or other medium changes the content of a political advertisement, the station or medium shall be responsible for any failure of the advertisement to comply with RCW 42.17.510 through 42.17.530 that results from that change.

                                                                            PART III

                                                                 PUBLIC OFFICE FUNDS

        Sec. 301.  Section 3, chapter 336, Laws of 1977 ex. sess. as amended by section 8, chapter 147, Laws of 1982 and RCW 42.17.095 are each amended to read as follows:

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

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

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

          (3) If the candidate becomes an elected official, transfer all or part of the surplus to a public office fund established in accordance with RCW 42.17.243;

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

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

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

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

        Sec. 302.  Section 5, chapter 336, Laws of 1977 ex. sess. and RCW 42.17.243 are each amended to read as follows:

          (1) Elected and appointed officials required to report under RCW 42.17.240((,)) shall report for themselves and for members of their immediate family to the commission any contributions received during the preceding calendar year for the officials' use in defraying nonreimbursed public office related expenses.  Contributions reported under this section shall be referred to as a "public office fund" and shall not be transferred to a political committee nor used to promote or oppose a candidate or ballot proposition, other than as provided by subsection (((3) (a))) (5)(a) of this section.  For the purposes of this section, contributions shall include reimbursements from or payments by persons, other than the state of Washington or any agency, for travel expenses.

(2) Within two weeks of the day the public office fund is established, the official for whom it is established shall file with the commission a statement of organization to include:

(a) The name of the official;

(b) The name and business address of the person who will be maintaining all financial records of the fund; and

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

(3) A report shall be filed within one month after the end of each calendar quarter during ((the month of January of any year following a year in)) which such ((contributions were received for or expenditures made from a)) public office fund existed.  The report shall include:

          (a) The name and address of each contributor;

          (b) A description of each contribution, including the date on which it was received and its amount or, if its dollar value is unascertainable, an estimate of its fair market value; ((and))

          (c) A description of each expenditure made from a public office fund, including the name and address of the recipient, the amount, and the date of each such expenditure; and

(d) Such other information as the commission may by rule require, in keeping with the policies and purposes of this chapter.

          (((2))) (4) No report under subsection (1) or (2) of this section shall be required if((:

          (a) The receipt of the contribution has been reported pursuant to RCW 42.17.065 (continuing political committee reports) or RCW 42.17.090 (political committee reports); or

          (b))) the contribution is in the form of meals, refreshments, or entertainment given in connection with official appearances or occasions where public business was discussed.

          (((3))) (5) Any funds which remain in a public office fund after all permissible public office related expenses have been paid may only be disposed of in one or more of the following ways:

          (a) Returned to a contributor in an amount not to exceed that contributor's original contribution; or

          (b) Donated to a charitable organization registered in accordance with chapter 19.09 RCW; or

          (c) Transferred to the state treasurer for deposit in the general fund.

NEW SECTION. Sec. 303.              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.