WSR 97-21-148

PROPOSED RULES

PUBLIC DISCLOSURE COMMISSION

[Filed October 22, 1997, 10:26 a.m.]

Original Notice.

Preproposal statement of inquiry was filed as WSR 97-17-093.

Title of Rule: WAC 390-20-110 Forms for lobbyist employers report and 390-16-071 Annual report of major contributors and persons making independent expenditures.

Purpose: Adjust for inflation the dollar code values and the reporting threshold used for reporting compensation payments made by lobbyist employers on their L-3 reports and by persons required to file the C-7 form, the Annual Report of Persons Making Independent Expenditures.

Statutory Authority for Adoption: RCW 42.17.370 (1) and (11).

Statute Being Implemented: RCW 42.17.180.

Reasons Supporting Proposal: Both disclosure reports mandated by RCW 42.17.180 require the filer to report various types of political expenditures, including compensation paid (1) to state elected officials, successful candidates for state office and members of their immediate families, and (2) to a corporation or other entity in which an elected official, successful state office candidate or family member holds an office, partnership, directorship or ownership interest of 10% or more.

The commission is proposing that the threshold for reporting compensation payments be raised from $1,000 to $1,500, to conform with a comparable compensation threshold used by public officials to report the receipt of compensation on his or her F-1 statement. Also, the dollar code amounts used to show the range of compensation paid would be adjusted to match the dollar code amounts used by officials to show the range of compensation received.

Both reports also require the filer to report independent expenditures totaling $500 or more supporting or opposing state office candidates or state-wide ballot measures. Since the statutory definition of independent expenditures includes a threshold amount (which is adjusted for inflation every two years), the commission is proposing to remove the qualifier "totaling $500 or more" from the language on the forms as it is unnecessary and out-of-date.

Name of Agency Personnel Responsible for Drafting and Implementation: Vicki Rippie, 711 Capitol Way, Room 403, Olympia, (360) 586-4838; and Enforcement: Susan Harris, 711 Capitol Way, Room 403, Olympia, (360) 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 proposed changes would foster continuity in the reporting of both compensation paid (by lobbyist employers) and compensation received (by public officials).

Elimination of the reference to a threshold at which independent expenditures are to be reported will remove a source of apparent contradiction between the amount specified in the statutory definition (which is adjusted for inflation) and the amount shown on the form (which, for practical reasons, cannot be amended at the same time that the law requires the statutory threshold to be adjusted for inflation). Proposal Changes the Following Existing Rules: Both the L-3 Lobbyist Employer Reporting form and the C-7 Special Political Expenditures Reports would be changed to show the revised compensation threshold, the new dollar code values and to eliminate a threshold amount for reporting independent expenditures.

No small business economic impact statement has been prepared under chapter 19.85 RCW. The proposed rule-making activity only impacts lobbyist employers and others making a certain level of campaign expenditures who also pay compensation to public officials or their family members or to a business owned or operated by officials or their family members.

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) or section 201, and to date, JARRC 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 November 25, 1997, at 9:00 a.m.

Assistance for Persons with Disabilities: Call Public Disclosure Commission at (360) 753-1111.

Submit Written Comments to: Vicki Rippie, Assistant Director, Public Disclosure Commission, P.O. Box 40908, Olympia, WA 98504-0908, FAX (360) 753-1112, by November 14, 1997.

Date of Intended Adoption: November 25, 1997.

October 22, 1997

Melissa Warheit

Executive Director

AMENDATORY SECTION (Amending WSR 96-01-103, filed 12/19/95)

WAC 390-20-110 Forms for lobbyist employers report. The official form for statement by employers of registered lobbyists as required by RCW 42.17.180 is designated "L-3," revised ((11/95)) 1/98. Copies of this form are available at the commission office 711 Capitol Way, Room 403, Evergreen Plaza Building, PO Box 40908, Olympia, Washington, 98504-0908. Any attachments shall be on 8-1/2" x 11" white paper.

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[Statutory Authority: RCW 42.17.370(1). 96-01-103, 390-20-110, filed 12/19/95, effective 1/19/96. Statutory Authority: RCW 42.17.390. 95-01-074A, 390-20-110, filed 12/16/94, effective 1/16/95. Statutory Authority: RCW 42.17.370. 93-04-072, 390-20-110, filed 1/29/93, effective 3/1/93; 90-22-018, 390-20-110, filed 10/29/90, effective 11/29/90. Statutory Authority: RCW 42.17.370(1). 87-05-001 (Order 87-01), 390-20-110, filed 2/5/87; 85-24-020 (Order 85-05), 390-20-110, filed 11/26/85; 84-05-018 (Order 84-01), 390-20-110, filed 2/10/84; Order 62, 390-20-110, filed 8/26/75.]

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Reviser's note: Notice of Objection: The Joint Administrative Rules Review Committee finds that WAC 390-20-110 has not been modified, amended, withdrawn, or repealed by the Public Disclosure Commission so as to conform with the intent of the Legislature as expressed in RCW 42.17.170 and 42.17.180. Therefore, pursuant to its authority under RCW 34.04.240, this notice of objection is filed.

The Joint Committee finds that WAC 390-20-110 requires the disclosure of information from lobbyists' employers which RCW 42.17.170 specifically excludes from reporting by lobbyists. It is the opinion of the Joint Committee that the Commission is attempting to obtain information from lobbyists' employers which the Commission would not otherwise be able to obtain from lobbyists themselves. This would thwart the express intent of the Legislature that such information is inappropriate for reporting. WAC 390-20-110 would effectively neuter the reporting exemptions in RCW 42.17.170--the Commission would have the information. This is not what the Legislature intended. [Joint Administrative Rules Review Committee, Memorandum, August 16, 1984--Filed August 28, 1984, WSR 84-18-014.]

AMENDATORY SECTION (Amending WSR 95-01-074A, filed 12/16/94)

WAC 390-16-071 Annual report of major contributors and persons making independent expenditures. (1) Any person, other than an individual (a) who made contributions to state office candidates and statewide ballot proposition committees totaling more than $10,000 in the aggregate during the preceding calendar year, or (2)(b) who made independent expenditures regarding state office candidates and statewide ballot propositions totaling more than $500 in the aggregate during the preceding calendar year, shall file with the commission an annual report required pursuant to RCW 42.17.180. This report shall not be required of a lobbyist employer filing an annual L-3 report pursuant to RCW 42.17.180 or of a candidate's authorized committee or a political committee provided the information has been properly reported pursuant to RCW 42.17.080 and .090.

(2) The report is entitled "Special Political Expenditures" and is designated with PDC form number C-7 revised 1/98.

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[Statutory Authority: RCW 42.17.390. 95-01-074A, 390-16-071, filed 12/16/94, effective 1/16/95; 94-11-016, 390-16-071, filed 5/5/94, effective 6/5/94.]

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.

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