Campaign funds/ethics compl.

AN ACT Relating to the use of campaign and surplus funds in 1
responding to ethics complaints; and amending RCW 29B.40.090 and 2
29B.40.130. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
Sec. 1. RCW 29B.40.090 and 2024 c 164 s 451 are each amended to 5
read as follows: 6
(1) The surplus funds of a candidate or a candidate's authorized 7
committee may only be disposed of in any one or more of the following 8
ways: 9
(((1))) (a) Return the surplus to a contributor in an amount not 10
to exceed that contributor's original contribution;11
(((2))) (b) Using surplus, reimburse the candidate for lost 12
earnings incurred as a result of that candidate's election campaign. 13
Lost earnings shall be verifiable as unpaid salary or, when the 14
candidate is not salaried, as an amount not to exceed income received 15
by the candidate for services rendered during an appropriate, 16
corresponding time period. All lost earnings incurred shall be 17
documented and a record thereof shall be maintained by the candidate 18
or the candidate's authorized committee. The committee shall maintain 19
a copy of this record in accordance with RCW 29B.25.090(6);20
H-3222.1
HOUSE BILL 2705
State of Washington 69th Legislature 2026 Regular Session
By Representatives Berry, Valdez, Simmons, Morgan, and Pollet
Read first time 01/29/26. Referred to Committee on State Government
& Tribal Relations.
p. 1 HB 2705
(((3))) (c) Transfer the surplus without limit to a political 1
party or to a caucus political committee; 2
(((4))) (d) Donate the surplus to a charitable organization 3
registered in accordance with chapter 19.09 RCW; 4
(((5))) (e) Transmit the surplus to the state treasurer for 5
deposit in the general fund, the Washington state legacy project, 6
state library, and archives account under RCW 43.07.380, or the 7
legislative international trade account under RCW 43.15.050, as 8
specified by the candidate or political committee; ((or9
(6))) (f) Hold the surplus in the depository or depositories 10
designated in accordance with RCW 29B.25.050 for possible use in a 11
future election campaign for the same office last sought by the 12
candidate and report any such disposition in accordance with RCW 13
29B.25.100. If the candidate subsequently announces or publicly files 14
for office, the appropriate information must be reported to the 15
commission in accordance with RCW 29B.25.020 through 29B.25.100. If a 16
subsequent office is not sought the surplus held shall be disposed of 17
in accordance with the requirements of this section((.)); or18
(((7))) (g)(i) Hold the surplus campaign funds in a separate 19
account for nonreimbursed public office-related expenses or as 20
provided in this section, and report any such disposition in 21
accordance with RCW 29B.25.100. The separate account required under 22
this subsection shall not be used for deposits of campaign funds that 23
are not surplus. 24
(ii) For purposes of this subsection (1)(g), a public office-25
related expense includes, but is not limited to, direct out-of-pocket 26
expenses made by the candidate or elected official for legal expenses 27
incurred in responding to a citizen action or ethics complaint, 28
investigation, or hearing, commenced under chapter 42.52 RCW or the 29
applicable local ethics code, that concerns the candidate or elected 30
official in his or her capacity as a candidate or elected official. 31
Legal expenses eligible for disposition also include those incurred 32
in petitioning for a protection order that relates to the citizen 33
action or ethics complaint. Disposition may occur for any of the 34
legal fees described in this subsection incurred after January 1, 35
2025.36
(((8))) (2) No candidate or authorized committee may transfer 37
funds to any other candidate or other political committee.38
(3) The disposal of surplus funds under this section shall not be 39
considered a contribution for purposes of this title.40
p. 2 HB 2705
Sec. 2. RCW 29B.40.130 and 2024 c 164 s 455 are each amended to 1
read as follows: 2
Contributions received and reported in accordance with RCW 3
29B.25.060 through 29B.25.100 and 29B.40.080 may only be paid to a 4
candidate, or a treasurer or other individual or expended for such 5
individual's personal use under the following circumstances:6
(1) Reimbursement for or payments to cover lost earnings incurred 7
as a result of campaigning or services performed for the political 8
committee. Lost earnings shall be verifiable as unpaid salary, or 9
when the individual is not salaried, as an amount not to exceed 10
income received by the individual for services rendered during an 11
appropriate, corresponding time period. All lost earnings incurred 12
shall be documented and a record shall be maintained by the candidate 13
or the candidate's authorized committee in accordance with RCW 14
29B.25.090. 15
(2) Reimbursement for direct out-of-pocket election campaign and 16
postelection campaign related expenses made by the individual. For 17
example, expenses for child care or other direct caregiving 18
responsibilities may be reimbursed if they are incurred directly as a 19
result of the candidate's campaign activities. To receive 20
reimbursement from the political committee, the individual shall 21
provide the political committee with written documentation as to the 22
amount, date, and description of each expense, and the political 23
committee shall include a copy of such information when its 24
expenditure for such reimbursement is reported pursuant to RCW 25
29B.25.100. 26
(3) Repayment of loans made by the individual to political 27
committees shall be reported pursuant to RCW 29B.25.100. However, 28
contributions may not be used to reimburse a candidate for loans 29
totaling more than four thousand seven hundred dollars made by the 30
candidate to the candidate's own authorized committee.31
(4) Reimbursement for direct out-of-pocket expenses made by a 32
candidate or elected official for legal expenses incurred in 33
responding to a citizen action or ethics complaint, investigation, or 34
hearing, commenced under chapter 42.52 RCW or the applicable local 35
ethics code, that concerns the candidate or elected official in his 36
or her capacity as a candidate or elected official. Reimbursable 37
legal expenses also include those incurred in petitioning for a 38
protection order that relates to the citizen action or ethics 39
complaint. Reimbursement may occur for any legal fees described in 40
p. 3 HB 2705
this subsection incurred after January 1, 2025. To receive 1
reimbursement from the political committee, the individual shall 2
provide the political committee with written documentation as to the 3
amount, date, and description of each expense, and the political 4
committee shall include a copy of such information when its 5
expenditure for such reimbursement is reported pursuant to RCW 6
29B.25.100. 7
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p. 4 HB 2705