Effective Date of Rule: June 30, 2009.
Purpose: Adoption of new WAC 390-16-049 to clarify when a political committee that is located out-of-state is required to file as an in-state committee under RCW 42.17.040 through 42.17.090.
Statutory Authority for Adoption: RCW 42.17.370.
Under RCW 34.05.350 the agency for good cause finds that immediate adoption, amendment, or repeal of a rule is necessary for the preservation of the public health, safety, or general welfare, and that observing the time requirements of notice and opportunity to comment upon adoption of a permanent rule would be contrary to the public interest.
Reasons for this Finding: Consistent with the people's declaration that political campaign and lobbying contributions are to be fully disclosed and secrecy is to be avoided, the sources of money used and the expenditures made to support or oppose Washington candidates for state, local or judicial office or Washington ballot propositions must be fully, timely and accurately disclosed. WAC 390-16-049 facilitates full, timely and accurate disclosure by out-of-state political committees.
To preserve the general welfare and given the timing restriction for rule making in RCW 42.17.370(1), the new rule is needed for the 2009 election season to provide guidance and clarification to out-of-state political committees who must file reports under RCW 42.17.093.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.
Number of Sections Adopted on the Agency's Own Initiative: New 1, Amended 0, Repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 1, Amended 0, Repealed 0.
Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 1, Amended 0, Repealed 0.
Date Adopted: June 16, 2009.
Douglas J. Ellis
WAC 390-16-049 Out-of-state political committees -- Implementation of RCW 42.17.093. (1) RCW 42.17.093 governs campaign reporting in Washington state by committees located outside of Washington. The statute directs that an out-of-state political committee organized for the purpose of supporting or opposing candidates or ballot propositions in another state (and that is not otherwise required to report as an in-state committee) reports the information listed in RCW 42.17.093 on a C5 form (WAC 390-16-050). The committee begins reporting on a C5 form when it makes an expenditure supporting or opposing a Washington state candidate or political committee.
(2) To file as an out-of-state political committee, all the criteria in (a) and (b) of this subsection must be satisfied:
(a) Out-of-state. First, the committee must be located out-of-state. It must be maintaining its office or headquarters in another U.S. state or the District of Columbia, and has no office, street address or corporate registered agent in Washington state. If there is no office or headquarters in another state or the District of Columbia, and no corporate registered agent in Washington state, the political committee is deemed out-of-state if its treasurer resides in another U.S. state or the District of Columbia.
(b) Organizational purpose and campaign activities. Second, the committee must also be currently organized primarily for engaging in campaign activities in another state. Therefore, to qualify as a current out-of-state committee, the committee must also:
(i) Be currently registered and actively filing campaign disclosure reports in one or more other states and has been so filing for the preceding two years; and
(ii) Have organizational documents showing it was originally formed and is currently organized for the purpose of making expenditures in another state or soliciting contributions for use in another state's election campaigns; and
(iii) Have spent less than twenty percent of its aggregate expenditures for all political campaign activity nationwide at any point in any calendar year to support and/or oppose Washington candidates for state, local and judicial office, Washington ballot measures and/or Washington political committees.
(3) A committee that does not satisfy the criteria in subsection (2) of this section shall file as an in-state committee under chapter 42.17 RCW, including RCW 42.17.040 through 42.17.090.
(4) Out-of-state political committees reporting under RCW 42.17.093 are also subject to reporting pursuant to RCW 42.17.103 (political advertising independent expenditures) and RCW 42.17.565 through 42.17.575 (electioneering communications).