A new Washington state law would penalize trade associations and other nonprofit groups that fail to disclose their donors if the groups are engaged in political campaigns.

The DISCLOSE Act was part of a package of bills signed into law Monday by Washington Gov. Jay Inslee that supporters argue will strengthen the state's voting process while bringing greater transparency to elections. The state previously required political action committees to disclose their donors but other nonprofits were exempt.

In a statement, the bill's sponsor, state Sen. Andy Billig (D-Spokane), called the legislation a "nation-leading transparency effort." The loophole for nonprofits led to a significant increase in campaign dark money flowing into the state, he said.

"Voters have the right to know who's paying for a campaign," Billig said. "Whatever you care about in your community, whether it be healthcare, education, or any other issue, it is vital to know who is paying to influence those who are making our laws." http://bit.ly/2pwh43p

Under the law, trade associations and other nonprofits may be required to register with the state as "incidental committees" and disclose the top 10 donors whose contributions aggregate to $10,000 or more in the calendar year if a group expects to make contributions or expenditures of at least $25,000 in any year in Washington state election campaigns, including ballot initiatives, according to an analysis of the legislation by The National Law Review.

Certain foundations that contract with nonprofits may be exempt from reporting requirements as long as the contract prohibits the use of funds for political activities, according to the analysis. The law goes into effect Jan. 1, 2019. http://bit.ly/2FS6jDs

Washington state hasn't hesitated in the past from pursuing organizations accused of attempting to skirt state campaign disclosure laws. A state judge fined the Grocery Manufacturers Association $18 million in 2016 for allegedly failing to disclose donors in a successful effort to defeat a state ballot initiative that would have required labels on foods containing genetically modified ingredients. The association has appealed the decision.

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