Effective Date of Rule: June 30, 2010.

     Purpose: Amending WAC 390-17-060 to clarify which expenditures qualify as exempt from contribution limits.

     Citation of Existing Rules Affected by this Order: Amending WAC 390-17-060.

     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: To implement section 602, chapter 204, Laws of 2010 (effective March 25, 2010). Given the rule-making instruction and timing restriction in RCW 42.17.370(1) and in order to preserve the general welfare for the 2010 election season, WAC 390-17-060 needs to be amended to clarify which expenditures are exempt from contribution limits under the newly amended statute.

     Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 1, Repealed 0.

     Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 1, Repealed 0.

     Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 1, Repealed 0.

     Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0;      Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 1, Repealed 0.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: May 27, 2010.

Lori Anderson

Communications and

Training Officer

OTS-3240.1

AMENDATORY SECTION(Amending WSR 07-07-005, filed 3/8/07, effective 4/8/07)

WAC 390-17-060   Exempt activities -- Definitions, reporting.   (1)(a) "Exempt contributions" are contributions made to a political committee which are earmarked for exempt activities as described in RCW 42.17.640. Such contributions are required to be reported under RCW 42.17.090, are subject to the restrictions in RCW 42.17.105(8), but are not subject to the contribution limits in RCW 42.17.640. Any written solicitation for exempt contributions must be so designated. Suggested designations are "not for individual candidates" or "for exempt activities."

     (b) Contributions made to a caucus political committee, to a candidate or candidate's authorized committee which are earmarked for voter registration, absentee ballot information, get-out-the-vote campaigns, sample ballots are presumed to be for the purpose of promoting individual candidates and are subject to the contribution limits in RCW 42.17.640.

     (c) Contributions made to a caucus political committee, to a candidate or candidate's authorized committee which are earmarked for internal organization expenditures or fund-raising are presumed to be with direct association with individual candidates and are subject to the contribution limits in RCW 42.17.640.

     (2) "Exempt contributions account" is the separate bank account into which only exempt contributions are deposited and out of which only expenditures for exempt activities shall be made.

     (3) "Exempt activities" are those activities referenced in RCW 42.17.640 as further clarified by subsections (4), (5), and (6)((, and (7))) of this section. Only exempt activities are eligible for payment with exempt contributions.

     (4)(a) ((Except as permitted by WAC 390-17-030, Sample ballots and slate cards, activities referenced in RCW 42.17.640 that promote or constitute political advertising for one or more clearly identified candidates do not qualify as exempt activities.

     (b) A candidate is deemed to be clearly identified if the name of the candidate is used, a photograph or likeness of the candidate appears, or the identity of the candidate is apparent by unambiguous reference.

     (5))) Activities referenced in RCW 42.17.640 (15)(a) that do not promote, or constitute political advertising for, one or more clearly identified candidates qualify as exempt activities. For example, get-out-the-vote telephone bank activity that only encourages persons called to "vote republican" or "vote democratic" in the upcoming election may be paid for with exempt contributions regardless of the number of candidates who are benefited by this message. Expenditures or contributions for electioneering communications made in cooperation, consultation, concert or collaboration with, or at the request or suggestion of a candidate, the candidate's authorized committee or agent do not qualify as exempt activities, under WAC 390-05-210.

     (b) Except as permitted under WAC 390-17-030, Sample ballots and slate cards, activities referenced in RCW 42.17.640 (15)(a) that promote or constitute political advertising for one or more clearly identified candidates do not qualify as exempt activities.

     (c) A candidate is deemed to be clearly identified if the name of the candidate is used, a photograph or likeness of the candidate appears, or the identity of the candidate is apparent by unambiguous reference.

     (((6))) (5)(a) "Internal organization expenditures" referenced in RCW 42.17.640 (15)(b) are expenditures for organization purposes, including legal and accounting services, rental and purchase of equipment and office space, utilities and telephones, postage and printing of newsletters for the organization's members or contributors or staff when engaged in organizational activities such as those previously listed, all without direct association with individual candidates.

     (b) "Fund-raising expenditures" referenced in RCW 42.17.640 (15)(b) are expenditures for fund-raising purposes, including facilities for fund-raisers, consumables furnished at the event and the cost of holding social events and party conventions, all without direct association with individual candidates.

     (c) If expenditures made pursuant to subsections (a) and (b) above are made in direct association with individual candidates, they shall not be paid with exempt contributions.

     (((7))) (6) For purposes of RCW 42.17.640 and this section, activities that oppose one or more clearly identified candidates are presumed to promote the opponent(s) of the candidate(s) opposed.

[Statutory Authority: RCW 42.17.370. 07-07-005, § 390-17-060, filed 3/8/07, effective 4/8/07. Statutory Authority: RCW 42.17.370 and 42.17.562. 06-11-132, § 390-17-060, filed 5/23/06, effective 6/23/06. Statutory Authority: RCW 42.17.370(1). 02-12-007, § 390-17-060, filed 5/23/02, effective 6/23/02; 02-03-018, § 390-17-060, filed 1/4/02, effective 2/4/02; 96-05-001, § 390-17-060, filed 2/7/96, effective 3/9/96. Statutory Authority: RCW 42.17.370. 93-24-003, § 390-17-060, filed 11/18/93, effective 12/19/93.]

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