WSR 11-01-055

PROPOSED RULES

PUBLIC DISCLOSURE COMMISSION


[ Filed December 7, 2010, 2:41 p.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 10-12-110.

Title of Rule and Other Identifying Information: WAC 390-17-060 Exempt activities -- Definitions, reporting.

Hearing Location(s): Commission Hearing Room, 711 Capitol Way, Room 206, Olympia, WA 98504, on January 27, 2011, at 9:30 a.m.

Date of Intended Adoption: January 27, 2011.

Submit Written Comments to: Lori Anderson, Public Disclosure Commission (PDC), P.O. Box 40908, Olympia, WA 98504-0908, e-mail lori.anderson@pdc.wa.gov, fax (360) 753-1112, by January 25, 2011.

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

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: Amend WAC 390-17-060 to implement 2SHB 2016 (section 602, chapter 204, Laws of 2010), clarifying which activities are exempt from contribution limits.

Reasons Supporting Proposal: To provide guidance and clarification for bona fide political parties regarding use of exempt funds.

Statutory Authority for Adoption: RCW 42.17.370(1).

Statute Being Implemented: Chapter 204, Laws of 2010.

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: The rule amendments are designed to clarify requirements for political advertising imposed by 2SHB 2016 (section 602, chapter 204, Laws of 2010).

Name of Proponent: PDC, governmental.

Name of Agency Personnel Responsible for Drafting and Implementation: Lori Anderson, 711 Capitol Way, Room 206, Olympia, WA 98504, (360) 664-2737; 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 these rules amendments 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 the adoption of these rules pursuant to subjection [subsection] (5)(a)(i) of section 201, and, to date, JARRC has not made section 201 applicable to the adoption of these rules.

December 7, 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.]

Washington State Code Reviser's Office