AN ACT Relating to campaign financing; adding new sections to chapter 42.17 RCW; providing penalties; and providing for submission of this act to a vote of the people.

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

NEW SECTION. Sec. 1. The legislature finds that:

(1) The size of contributions to candidates for state offices has skyrocketed in recent years;

(2) The perpetuation of a democracy requires the participation of its citizens; and

(3) Limitations on contributions to campaigns for state office are necessary to:

(a) Prevent the appearance of corruption;

(b) Prevent the appearance of large contributors' obtaining disproportionate influence over the decisions of elected representatives; and

NEW SECTION. Sec. 2. A contribution received by a candidate for state office, including legislative office, or the candidate's authorized committee must satisfy each of the following requirements:

(1) The contribution shall be made directly to the candidate or the candidate's authorized committee. The provisions of this subsection do not apply to bona fide joint fund-raising efforts conducted solely for the purpose of sponsorship of a fund-raising reception, dinner, or other event, under rules prescribed by the commission, by:

(a) Two or more candidates; or

(b) One or more candidates and one or more state or local committees of a political party acting on their own behalf.

(2) (a) The total amount of all contributions made by any authorized contributor to the candidate or the authorized committee of the candidate during any election cycle shall not exceed one-half of one percent of the average sum expended for a race of the same type during the last general election in which such a race was held. The public disclosure commission shall calculate and establish limits by rule prior to the period in which contributions can be made or received, but no later than twelve months prior to the date of the next general election or six months prior to the date of the next special election.

(b) All contributions by one person who is controlled by any other person shall be considered to have been made by such other person. This subsection shall not be construed to apply to an individual and the spouse of the individual.

In determining whether a person is controlled by any other person the following shall be considered:

(i) The authority, power, or ability to hire, appoint, discipline, discharge, demote, remove, or influence the decision of an individual;

(ii) Similar patterns or contributions; and

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

(3) The contribution may not be made or accepted after the date of the election for purposes of contributing to that election.

NEW SECTION. Sec. 3. It is a violation of this chapter for a candidate to accept and for an individual or organization to make any contribution if the candidate or individual or organization knows or should have known that the contribution is in violation of this chapter. A violation of any provision of sections 1 through 9 of this act is a gross misdemeanor.

NEW SECTION. Sec. 4. A contribution received by a candidate or the candidate's authorized committee that is returned to the contributor within five days of the date on which it is received by the candidate or committee is not a contribution for the purposes of this chapter.

NEW SECTION. Sec. 5. A candidate or the candidate's authorized committee shall transmit to all other candidates for the same office a copy of each report the candidate or committee must file with the commission under this chapter. If the report is mailed to the commission, a copy shall be mailed to each of the other candidates at the same time that it is mailed to the commission. If the report is delivered to the commission in any other manner, a copy shall immediately thereafter be delivered to each of the other candidates.

NEW SECTION. Sec. 6. When part-time personal services commonly performed by volunteer campaign workers and exempted from the definition of "contribution" under RCW 42.17.020 are performed in support of a candidate for state legislative office by a person who resides in a county which is not within, in whole or in part, the legislative district of the candidate, the receipt of the services shall be reported by the candidate. The name and address of the person providing the services and the number of days on which the services were provided by the person shall be reported to the commission at the same time that reports are filed with the commission by the candidate or the candidate's authorized committee under RCW 42.17.065 or 42.17.080. The information shall be reported in a form prescribed by the commission by rule.

NEW SECTION. Sec. 7. Contributions made and received prior to the effective date of this act shall not be lawfully expended by candidates for state office, including legislative office, after the effective date of this act.

NEW SECTION. Sec. 8. It shall be unlawful for any state entity to contribute or provide matching funds to any candidate for public office, and it shall be unlawful for any such candidate to accept any public campaign funds from any public entity.

NEW SECTION. Sec. 9. No state official, including legislators, may mail to any person nonsolicited material that mentions the official by name or clearly identifies the official by photograph or reference. This section does not prohibit mailing nonsolicited material that names an office but does not name or otherwise identify the individual holding the office.

NEW SECTION. Sec. 10. Sections 1 through 9 of this act are each added to chapter 42.17 RCW.

NEW SECTION. Sec. 11. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 12. This act shall be submitted to the people for their adoption and ratification, or rejection, at the next succeeding general election to be held in this state, in accordance with Article II, section 1 of the state Constitution, as amended, and the laws adopted to facilitate the operation thereof.