WSR 97-19-051

PROPOSED RULES

PUBLIC DISCLOSURE COMMISSION

[Filed September 12, 1997, 2:12 p.m.]

Original Notice.

Preproposal statement of inquiry was filed as WSR 97-15-114.

Title of Rule: WAC 390-24-300 Changes in dollar amounts of reporting thresholds and code values, 390-24-010 Forms for statement of financial affairs, and 390-24-020 Forms for amending statement of financial affairs.

Purpose: Adjust for inflation the reporting thresholds and dollar code values in RCW 42.17.241 and amend the disclosure forms affected by these adjustments.

Statutory Authority for Adoption: RCW 42.17.370(11).

Statute Being Implemented: RCW 42.17.240, 42.17.241, and 42.17.370(11).

Summary: Public officials and candidates who file personal financial affairs statements must disclose their personal and business sources of income, bank accounts, investments, indebtedness and the like if the income, bank account, etc., is over a certain threshold specified in law. In most cases, the filer does not put actual monetary amounts on the form, however, but rather uses dollar codes giving a range in which the actual value falls. For instance, Code A currently means between $1 and $1,999. The commission has decided to exercise its legal authority to adjust these reporting thresholds and dollar code values for inflation.

Reasons Supporting Proposal: The adoption of the new proposed rule and the amendments to the existing reporting forms will result in more meaningful disclosure because insubstantial financial information will no longer be required to be reported.

Name of Agency Personnel Responsible for Drafting and Implementation: Vicki Rippie, Public Disclosure Commission, Olympia, 586-4838; and Enforcement: Susan Harris, Public Disclosure Commission, Olympia, 753-1981.

Name of Proponent: Public Disclosure Commission, governmental.

Rule is not necessitated by federal law, federal or state court decision.

Explanation of Rule, its Purpose, and Anticipated Effects: The original 1972 thresholds and code values were amended in 1985 when the inflation index employed allowed for the statutory amounts to be doubled. Adjusting for inflation at this time would permit these original thresholds and code values to be tripled. It is reasonable to adjust amounts when the adjustment results in a number that filers and regulators alike can more readily remember and adapt to.

Proposal Changes the Following Existing Rules: The F-1, F-1 Supplement and F-1A reporting forms are adopted as administrative rules. If threshold amounts and code values are adjusted for inflation, the forms will have to be changed accordingly.

No small business economic impact statement has been prepared under chapter 19.85 RCW. The proposed rule-making activity only impacts public officials and candidates, not small businesses.

Section 201, chapter 403, Laws of 1995, does not apply to this rule adoption. The Public Disclosure Commission is not an agency listed in subsection (5)(a)(i) of section 201. Further, the Public Disclosure Commission does not voluntarily make section 201 applicable to this rule adoption pursuant to subsection (5)(a)(ii) of section 201, and to date, the Joint Administrative Rules Review Committee has not made section 201 applicable to this rule adoption.

Hearing Location: Evergreen Plaza Building, 2nd Floor Conference Room, 711 Capitol Way, Olympia, WA 98501, on October 28, 1997, at 9:00 a.m.

Submit Written Comments to: Vicki Rippie, Assistant Director, Public Disclosure Commission, P.O. Box 40908, Olympia, WA 98504-0908, FAX (360) 753-1112, by October 17, 1997.

Date of Intended Adoption: October 28, 1997.

September 12, 1997

Melissa Warheit

Executive Director

NEW SECTION

WAC 390-24-300 Changes in dollar amounts of reporting thresholds and code values. Pursuant to the Commission's authority in RCW 42.17.370(11) to revise the monetary reporting thresholds and code values found in 42.17 RCW to reflect changes in economic conditions, the following revisions are made:

Statutory Amount Enacted Revision Effective

Section Subject Matter or Last Revised January 1, 1998

.241(1)(b) Bank Accounts $10,000 $15,000

.241(1)(b) Other Intangibles $1,000 $1,500

.241(1)(c) Creditors $1,000 $1,500

.241(1)(f) Compensation $1,000 $1,500

.241(1)(g)(ii) Compensation to

Business Entity $5,000 $7,500

.241(1)(g) Bank Interest Paid $1,200 $1,800

.241(1)(h) Real Property--

Acquired $5,000 $7,500

.241(1)(i) Real Property--

Divested $5,000 $7,500

.241(1)(j) Real Property--

Held $5,000 $7,500

.241(1)(k) Real Property--

Business $10,000 $15,000

.241(1)(l) Food and Beverages $50 $50

.241(2) Dollar Code A Up to $1,999 Up to $2,999

Dollar Code B $2,000--$9,999 $3,000--$14,999

Dollar Code C $10,000--$19,999 $15,000--$29,999

Dollar Code D $20,000--$49,999 $30,000--$74,999

Dollar Code E $50,000 and up $75,000 and up

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AMENDATORY SECTION (Amending WSR 96-09-017, filed 4/8/96)

WAC 390-24-010 Forms for statement of financial affairs. The official form for statements of financial affairs as required by RCW 42.17.240 is designated "F-1", revised ((11/95)) 11/97. Copies of this form are available at the commission office, Room 403, Evergreen Plaza Building, Olympia, Washington 98504. Any attachments must be on 8-1/2" x 11" white paper.

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[Statutory Authority: RCW 42.17.370(1). 96-09-017, 390-24-010, filed 4/8/96, effective 5/9/96. Statutory Authority: RCW 42.17.370. 91-24-011, 390-24-010, filed 11/22/91, effective 12/23/91. Statutory Authority: RCW 42.17.370(1). 88-20-029 (Order 88-04), 390-24-010, filed 9/29/88; 86-19-039 (Order 86-06), 390-24-010, filed 9/12/86; 86-08-030 (Order 86-02), 390-24-010, filed 3/26/86; 85-24-020 (Order 85-05), 390-24-010, filed 11/26/85; 84-01-017 (Order 83-03), 390-24-010, filed 12/9/83; 80-18-028 (Order 80-07), 390-24-010, filed 12/1/80; 80-02-055 (Order 80-01), 390-24-010, filed 1/17/80; Order 94, 390-24-010, filed 10/31/77; Order 87, 390-24-010, filed 11/19/76; Order 62, 390-24-010, filed 8/26/75; Order 48, 390-24-010, filed 3/3/75; Order 44, 390-24-010, filed 9/26/74; Order 6, 390-24-010, filed 3/23/73.]

Reviser's note: RCW 34.05.395 requires the use of underlining and deletion marks to indicate amendments to existing rules. The rule published above varies from its predecessor in certain respects not indicated by the use of these markings.

AMENDATORY SECTION (Amending WSR 96-09-017, filed 4/8/96)

WAC 390-24-020 Forms for amending statement of financial affairs. (1) The official form for amending statements of financial affairs as required by RCW 42.17.240 for all persons who have previously filed the form F-1 is designated form "F-1A," revised ((11/95)) 11/97.

(2) No more than three F-1A forms may be filed to amend a previously submitted statement of financial affairs (form F-1). The form can be used only to update information required on an F-1.

(3) The commission reserves the right to reject amendatory forms and require a new statement of financial affairs (form F-1) at any time the amendments are confusing or create misunderstandings. Authority is delegated to the commission's executive director to make this determination.

(4) Copies of Form F-1A are available at the commission office, Room 403, Evergreen Plaza Building, Olympia, Washington 98504. Any attachments must be on 8-1/2" x 11" white paper.

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