PRESS RELEASE

April 14, 2005

House passes “emergency” amendment creating campaign finance loophole for business and labor

OLYMPIA—The House passed a substitute version of Senate Bill 5034 yesterday that opens a loophole in Washington’s campaign finance law for corporations and labor unions.

Under the current law, RCW 42.17.660, a single contribution limit is imposed on the affiliates of corporations and labor unions and the parent organization. This restriction was passed by Initiative 134 in 1992.

Last year’s Supreme Court decision Edelman v. State of Washington overturned a Public Disclosure Commission (PDC) rule that excused subsidiaries of an organization from the requirement to combine their contributions, so long as the parent organization made no contributions. The House amendment effectively overturns the Supreme Court decision and restores the PDC rule.

This change passed as an emergency clause, making the provision impervious to an attempt by the people to overturn the law through a referendum. The emergency clause applies only to this change and one other section of the bill.

“The citizens of Washington enacted Initiative 134 to ensure that large organizations do not dilute the influence of private citizens in our state elections,” said Bob Williams, president of the Evergreen Freedom Foundation. “The House amendment gives organizations a free pass to sidestep contribution limits.”

The changes to SB 5034 will require Senate concurrence.

Additional Information
House Committee Amendment H2957.1

Contact: Michael Reitz | Project Director & Legal Analyst | 360.956.3482

Evergreen Freedom Foundation P.O. Box 552, Olympia, WA 98507 Phone: (360) 956-3482, Fax: (360) 352-1874 Email: effwa@effwa.org