Original Notice.

     Preproposal statement of inquiry was filed as WSR 07-22-046.

     Title of Rule and Other Identifying Information: Amendment to WAC 390-16-206 Ratings and endorsements.

     Hearing Location(s): Commission Hearing Room, 711 Capitol Way, Room 206, Olympia, WA 98504, on February 28, 2008, at 9:30 a.m.

     Date of Intended Adoption: February 28, 2008.

     Submit Written Comments to: Doug Ellis, Public Disclosure Commission, P.O. Box 40908, Olympia, WA 98504-0908, e-mail dellis@pdc.wa.gov, fax (360) 753-1112, by February 25, 2008.

     Assistance for Persons with Disabilities: Contact Kami Madsen by phone (360) 586-0544.

     Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: To update WAC 390-16-206 following the State Supreme Court ruling in San Juan County v. No New Gas Tax et al (2007). The amended administrative code will clarify that ratings and endorsements may qualify for reporting exemptions found in chapter 42.17 RCW.

     Reasons Supporting Proposal: To provide guidance and clarification on ratings and endorsements so that persons engaging in this activity know when they are subject to the disclosure law.

     Statutory Authority for Adoption: RCW 42.17.370(1).

     Statute Being Implemented: RCW 42.17.020.

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

     Name of Proponent: Public disclosure commission, governmental.

     Name of Agency Personnel Responsible for Drafting and Implementation: Doug Ellis, 711 Capitol Way, Room 206, Olympia, WA 98504, (360) 664-2735; 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 these rule amendments has minimal impact on small businesses.

     A cost-benefit analysis is not required under RCW 34.05.328. The public disclosure commission (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 the adoption of these rules pursuant to subsection (5)(a)(i) of section 201, and, to date, JARRC has not made section 201 application [applicable] to the adoption of these rules.

December 24, 2007

Vicki Rippie

Executive Director

OTS-1264.1

AMENDATORY SECTION(Amending Order 86-02, filed 3/26/86)

WAC 390-16-206   Ratings and endorsements.   (1) Any person making a measurable expenditure of funds to communicate a rating, evaluation, endorsement or recommendation for or against a candidate or ballot proposition (((other than news, feature, or editorial comment in a regularly scheduled issue of a printed periodical or broadcast media program))) shall report such expenditure including all costs of preparation and distribution in accordance with chapter 42.17 RCW ((42.17.030 through 42.17.100)). However, rating, endorsement or recommendation expenditures governed by the following provisions are not reportable: The news media exemptions provided in RCW 42.17.020 (15)(b)(iv) and (21)(c), and WAC 390-16-313 (2)(b), and the political advertising exemption in WAC 390-05-290.

     (2) A candidate or sponsor of a ballot proposition who, or a political committee which, is the subject of the rating, evaluation, endorsement or recommendation shall not be required to report such expenditure as a contribution unless the candidate, sponsor, committee or an agent thereof advises, counsels or otherwise encourages the person ((or committee)) to make the expenditure.

     (((3) A candidate who is an officer, director, employee or owner of 10 percent or more in any entity which owns or controls any newspaper, magazine, printed periodical, radio station, television station or other medium of mass communication, and who is provided feature, editorial or advertising space or broadcast time at less than fair market value by the medium with the intent to personally advocate support for his candidacy or to oppose the candidacy of his opponents, must report the fair market value of that space or time as a contribution from the medium. The fair market value shall be the same as that charged for an equal amount of advertising space or time or, if there is no similar space or time, the most expensive advertising space or time sold by the organization.))

[Statutory Authority: RCW 42.17.370(1). 86-08-030 (Order 86-02), § 390-16-206, filed 3/26/86; Order 84, § 390-16-206, filed 8/18/76.]

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