Legislators eye crackdown on PACs

A legislative proposal in response to a recent campaign-finance scandal in a state senate primary race would impose criminal penalties for the first time and would require that the intent of political-action committees be shown in their names.

At a Senate hearing on Thursday, Sen. Craig Pridemore, the sponsor of the proposal, SB 5021, said the Legislature must respond to the scandal to preserve the state's reputation as one of the nation's most transparent on campaign finance.

"We rarely have debates in this state about disclosure, and knowing the source of funds," said Pridemore, D-Vancouver, chair of the Senate Government Operations, Tribal Relations and Elections committee. "This is an attempt to just ensure the citizens of the state know who is speaking when they hear a message delivered."

The bill, which Pridemore acknowledged likely would be altered, bans contributions among political-action committees (PACs) and imposes a "rebuttal presumption" that anyone creating more than one PAC was trying to hide the true source of financing.

Those elements are in response to allegations to a high-profile case that arose in the August primary. The Seattle consulting group Moxie Media is accused of concealing funding from progressive groups for an faux-conservative attack on former state Sen. Jean Berkey, D-Everett, by creating several layers of PACs.

Berkey lost in the primary, and a progressive favored by Moxie Media, Sen. Nick Harper, won the seat. The Attorney General's Office is prosecuting Moxie Media for allegedly violating disclosure laws, a case that could result in fines and potentially a new election.

Moxie Media was hired by unions and trial lawyers to defeat moderate or conservative Democrats and replace them with liberals.

The bill was met with mixed reaction during the hearing. Initiative sponsor Tim Eyman noted that the bill exempts the state parties from the ban on PAC-to-PAC transfers.

"If it's so good, why are you exempting so much political activity in it?" Eyman asked.

He also questioned the constitutionality of a provision requiring that the names of PACs reflect their intent.

The state Public Disclosure Commission, which supports the bill, would gain power to pursue misdemeanor charges against violators, and its fining authority would rise from $1,700 to $10,000 per violation.

The bill would make it a criminal misdemeanor for one violation, a gross misdemeanor for several and a felony for people who file false documents.

Jonathan Martin: 206-464-2605 or jmartin@seattletimes.com