WSR 05-04-039

PERMANENT RULES

PUBLIC DISCLOSURE COMMISSION


[ Filed January 27, 2005, 1:33 p.m. , effective February 27, 2005 ]


Purpose: 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.

Citation of Existing Rules Affected by this Order: Amending WAC 390-17-310.

Statutory Authority for Adoption: RCW 42.17.370.

Adopted under notice filed as WSR 04-22-057 on October 29, 2004.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 1, Repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 1, Repealed 0.

Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 1, Repealed 0.

Date Adopted: January 25, 2005.

Vicki Rippie

Executive 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.]

Washington State Code Reviser's Office