WSR 04-22-057

PROPOSED RULES

PUBLIC DISCLOSURE COMMISSION


[ Filed October 29, 2004, 2:32 p.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 04-18-042.

Title of Rule and Other Identifying Information: WAC 390-17-310 Doing business in Washington, defines "doing business in Washington state" for the purposes of RCW 42.17.640(11).

Hearing Location(s): Public Disclosure Commission, 711 Capitol Way, Room 206, Olympia, WA 98504, on January 25, 2005, at 9:00 a.m.

Date of Intended Adoption: January 25, 2005.

Submit Written Comments to: Doug Ellis, Director of Public Outreach, 711 Capitol Way, Room 206, Olympia, WA 98504, e-mail dellis@pdc.wa.gov, fax (206) 753-1112, by January 21, 2005, at 5 p.m.

Assistance for Persons with Disabilities: Contact Ruthann Bryant, phone (360) 586-0544.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: To clarify the meaning of "doing business in Washington" under RCW 42.17.640(11) by amending WAC 390-17-310 Doing business in Washington. The rule amendment conforms to current practice and includes a list of nonexclusive indicators for determining whether a corporation or business entity is doing business in Washington state.

Reasons Supporting Proposal: To clarify the meaning of "doing business in Washington state" and provide guidance to businesses and other entities who anticipate contributing to state office candidates under RCW 42.17.640.

Statutory Authority for Adoption: RCW 42.17.370.

Statute Being Implemented: RCW 42.17.640(11).

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

Agency Comments or Recommendations, if any, as to Statutory Language, Implementation, Enforcement, and Fiscal Matters: This rule amendment is needed to provide clarity, guidance and to conform to current business practices.

Name of Proponent: Public Disclosure Commission (PDC), governmental.

Name of Agency Personnel Responsible for Drafting: Doug Ellis, 711 Capitol Way, Room 206, Olympia, WA 98504, (360) 664-2735; Implementation: Susan Harris, 711 Capitol Way, Room 206, Olympia, WA 98504, (360) 753-1981; and Enforcement: Phil Stutzman, 711 Capitol Way, Room 206, Olympia, WA 98504, (360) 664-8853.

No small business economic impact statement has been prepared under chapter 19.85 RCW. The implementation of this rule amendment has minimal impact on small businesses.

A cost-benefit analysis is not required under RCW 34.05.328. The PDC is not an agency listed in subsection (5)(a)(i) of section 201. Further, the PDC does not voluntarily make section 201 applicable to this rule adoption pursuant to subsection (5)(a)(i) of section 201, and, to date, the Joint Administrative Rules Review Committee has not made section 201 application [applicable] to this rule adoption.

October 29, 2004

Susan Harris

Assistant Director

OTS-7606.2


AMENDATORY SECTION(Amending WSR 96-05-001, filed 2/7/96, effective 3/9/96)

WAC 390-17-310   Doing business in Washington.   (((1))) A corporation or business entity is "doing business in Washington state" for purposes of RCW 42.17.640(11) if it conducts continuous ((and)) or substantial activities in Washington state of such character as to give rise to a legal obligation. ((Such things as registering as a foreign corporation in Washington, operating business locations in Washington, hiring employees to work in Washington or purchasing supplies or services from other businesses in Washington may be considered in determining whether a corporation or business entity is doing business in Washington state.

(2) Prior to making contributions reportable under chapter 42.17 RCW, a corporation or business entity shall appoint an agent for service of process in Washington state.))

In determining whether a corporation or business entity is doing business in Washington state, the commission will take into consideration the following nonexclusive list of indicators:

Purposefully availing itself of the privilege of conducting business in the state by invoking both benefits and protections of state law.

Appointing an agent for service of process in Washington state.

Registering as a corporation in Washington.

Operating business locations in Washington.

Hiring employees to work in Washington.

Purchasing or selling goods or services in Washington.

Operating an interactive internet website for the purpose of conducting business.

[Statutory Authority: RCW 42.17.370(1). 96-05-001, 390-17-310, filed 2/7/96, effective 3/9/96. Statutory Authority: RCW 42.17.370. 93-16-064, 390-17-310, filed 7/30/93, effective 8/30/93.]

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