WSR 11-20-057

PROPOSED RULES

PUBLIC DISCLOSURE COMMISSION


[ Filed September 30, 2011, 11:09 a.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 11-13-073.

Title of Rule and Other Identifying Information: WAC 390-16-011 Forms -- Registration statement for political committees, 390-16-060 Forms for report of independent expenditures and electioneering communications, 390-17-315 Political committees -- Qualifications to contribute, 390-18-060 Electioneering communication reporting threshold and sponsors, 390-19-030 Electronic filing -- Reporting threshold, 390-37-103 Commission options following receipt of a staff report on alleged violations, and 390-16-050 Forms for contributions and expenditures of out-of-state political committees (see WSR 11-13-072).

Hearing Location(s): Commission Hearing Room, 711 Capitol Way, Room 206, Olympia, WA 98504, on December 8, 2011, at 9:30 a.m.

Date of Intended Adoption: December 8, 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 December 6, 2011.

Assistance for Persons with Disabilities: Contact Jana Greer by e-mail jana.greer@pdc.wa.gov or phone (360) 586-0544 or (360) 753-1111.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: Amendments are necessary to implement chapter 145, Laws of 2011, effective January 1, 2012. Proposed amendments to WAC 390-16-011 include new definition of sponsor, related name requirements, instructions regarding updating a sponsor's status, and notice of a new eligibility requirement a committee must meet before contributing to another political committee. Proposed amendment to WAC 390-16-060 lowers threshold for electioneering communications to $1,000. Proposed amendments to WAC 390-17-315 add a new eligibility requirement to be met before contributing to other political committees ($10 each from ten Washington registered voters) and instructs political committees to maintain a list of these contributors. Proposed amendments to WAC 390-18-060 lowers threshold for electioneering communications to $1,000 and strikes examples explaining how to report certain electioneering communications. Proposed amendments to WAC 390-19-030 lowers e-filing threshold to $5,000 and makes corresponding changes to benchmark amounts set out in the rule. Proposed amendment to WAC 390-37-103 strikes language that requires the commission to forego an enforcement hearing in cases referred to the attorney general or other enforcement agency. Proposed changes to WAC 390-16-050 adjusts the reporting threshold for major contributions disclosed by an out-of-state political committee based on change in economic conditions and notice of a new eligibility requirement to be met before contributing to other political committees. Amendments to the foregoing rules also correct statutory references to reflect the recodification of chapter 42.17 RCW to chapter 42.17A RCW in January 2012.

Reasons Supporting Proposal: To provide guidance and clarification to in-state and out-of-state political committees subject to chapter 42.17 RCW (recodified to chapter 42.17A RCW effective January 1, 2012, as amended by chapter 145, Laws of 2011, effective January 1, 2012). Additionally, the commission is required to annually modify the reporting threshold for major contributions disclosed by an out-of-state political committee based on percentage change in the implicit price deflator for personal consumption expenditures for the United States as published for the most recent twelve-month period by the Bureau of Economic Analysis of the federal Department of Commerce.

Statutory Authority for Adoption: RCW 42.17.130.

Statute Being Implemented: RCW 42.17.093, chapter 145, Laws of 2011, and 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 proposed amendments clarify new disclosure requirements, reporting thresholds, and changes to the PDC's enforcement authority imposed by chapter 145, Laws of 2011.

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 rule 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 subsection (5)(a)(i) of section 201, and, to date, the joint administrative rules review committee has not made section 201 applicable to the adoption of these rules.

September 29, 2011

Lori Anderson

Communication[s] and

Training Officer

OTS-4286.2


AMENDATORY SECTION(Amending WSR 10-20-011, filed 9/24/10, effective 10/25/10)

WAC 390-16-011   Forms -- Registration statement for political committees.   The official form for providing the statement of organization by political committees for designating a campaign treasurer and depository and for reporting information required to qualify for mini campaign finance reporting is designated "C-1pc," revised ((11/10)) 1/12. Copies of this form are available at the Commission Office, 711 Capitol Way, Room 206, P.O. Box 40908, Olympia, Washington 98504-0908. Any attachments shall be on 8-1/2" x 11" white paper.

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[Statutory Authority: RCW 42.17.370(1). 10-20-011, 390-16-011, filed 9/24/10, effective 10/25/10; 08-01-069, 390-16-011, filed 12/14/07, effective 1/14/08. Statutory Authority: RCW 42.17.370. 06-08-039, 390-16-011, filed 3/29/06, effective 4/29/06; 05-06-070, 390-16-011, filed 3/1/05, effective 4/1/05; 01-10-049, 390-16-011, filed 4/26/01, effective 6/1/01. Statutory Authority: RCW 42.17.370(1). 00-22-050, 390-16-011, filed 10/27/00, effective 11/27/00; 99-22-083, 390-16-011, filed 11/2/99, effective 12/3/99. Statutory Authority: RCW 42.17.390. 94-05-011, 390-16-011, filed 2/3/94, effective 3/6/94. Statutory Authority: RCW 42.17.370. 93-15-004, 390-16-011, filed 7/7/93, effective 8/7/93; 92-18-002, 390-16-011, filed 8/20/92, effective 9/20/92; 91-22-033, 390-16-011, filed 10/30/91, effective 11/30/91; 89-20-068, 390-16-011, filed 10/4/89, effective 11/4/89. Statutory Authority: RCW 42.17.370(1). 86-04-071 (Order 86-01), 390-16-011, filed 2/5/86; 82-11-026 (Order 82-03), 390-16-011, filed 5/10/82; 82-02-007 (Order 81-04), 390-16-011, filed 12/28/81; Order 91, 390-16-011, filed 7/22/77; Order 62, 390-16-011, filed 8/26/75; Order 60, 390-16-011, filed 7/16/75.]

OTS-4279.2


AMENDATORY SECTION(Amending WSR 09-19-004 and 09-19-103, filed 9/2/09 and 9/21/09, effective 10/3/09 and 11/4/09)

WAC 390-16-050   Forms for contributions and expenditures of out-of-state political committees.   The official form for the report required by RCW ((42.17.093)) 42.17A.250 of contributions and expenditures of an out-of-state political committee organized for the purpose of supporting or opposing candidates or ballot propositions in another state that is not otherwise required to report under RCW ((42.17.040)) 42.17A.250 through ((42.17.090)) 42.17A.240 is designated "C-5," revised ((11/09)) 1/12. Copies of this form are available at the Commission Office, Room 206, Evergreen Plaza Building, Olympia, Washington 98504-0908. Any paper attachments shall be on 8 1/2" x 11" white paper.

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[Statutory Authority: RCW 42.17.370(1) and 42.17.093 (1)(g). 09-19-004 and 09-19-103, 390-16-050, filed 9/2/09 and 9/21/09, effective 10/3/09 and 11/4/09. Statutory Authority: RCW 42.17.370. 08-01-059, 390-16-050, filed 12/14/07, effective 1/14/08. Statutory Authority: RCW 42.17.370 and 42.17.093 (1)(i). 06-18-035, 390-16-050, filed 8/28/06, effective 9/28/06. Statutory Authority: RCW 42.17.370(1). 04-01-131, 390-16-050, filed 12/18/03, effective 1/18/04; 02-12-007, 390-16-050, filed 5/23/02, effective 6/23/02; 02-03-018, 390-16-050, filed 1/4/02, effective 2/4/02. Statutory Authority: RCW 42.17.390. 94-05-011, 390-16-050, filed 2/3/94 effective 3/6/94. Statutory Authority: RCW 42.17.370. 89-20-068, 390-16-050, filed 10/4/89, effective 11/4/89. Statutory Authority: RCW 42.17.370(1). 86-04-071 (Order 86-01), 390-16-050, filed 2/5/86; 82-11-026 (Order 82-03), 390-16-050, filed 5/10/82; Order 77, 390-16-050, filed 6/2/76; Order 62, 390-16-050, filed 8/26/75; Order 6, 390-16-050, filed 3/23/73.]

OTS-4332.1


AMENDATORY SECTION(Amending WSR 06-11-132, filed 5/23/06, effective 6/23/06)

WAC 390-16-060   Forms for report of independent expenditures and electioneering communications.   (1) The official form for reports of independent expenditures and electioneering communications as required by RCW ((42.17.100)) 42.17A.255, ((42.17.103)) 42.17A.260 and ((42.17.565)) 42.17A.305 is designated "C-6," revised ((5/06)) 1/12. Copies of this form are available at the Commission Office, Room 206, Evergreen Plaza Building, Olympia, Washington 98504 and on-line at www.pdc.wa.gov. Any paper attachments shall be on 8 1/2" x 11" white paper.

(2) The C-6 report may be filed electronically consistent with WAC 390-19-040 by using an electronic filing alternative provided or approved by the commission. C-6 reports of electioneering communications shall be filed electronically as provided in RCW ((42.17.565)) 42.17A.305.



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[Statutory Authority: RCW 42.17.370 and 42.17.562. 06-11-132, 390-16-060, filed 5/23/06, effective 6/23/06. Statutory Authority: RCW 42.17.370(1). 02-12-007, 390-16-060, filed 5/23/02, effective 6/23/02; 02-03-018, 390-16-060, filed 1/4/02, effective 2/4/02. Statutory Authority: RCW 42.17.370. 89-20-068, 390-16-060, filed 10/4/89, effective 11/4/89. Statutory Authority: RCW 42.17.370(1). 86-04-071 (Order 86-01), 390-16-060, filed 2/5/86; 82-11-026 (Order 82-03), 390-16-060, filed 5/10/82; Order 77, 390-16-060, filed 6/2/76; Order 62, 390-16-060, filed 8/26/75; Order 6, 390-16-060, filed 3/23/73.]

OTS-4287.1


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

WAC 390-17-315   Political committees--Qualifications to contribute.   ((In order to make contributions as permitted by RCW 42.17.640, a political committee shall,)) (1) Within ((180)) one hundred eighty days ((prior to)) of making ((the)) a contribution((,)) to a state office candidate, to a state official against whom recall charges have been filed, or to a political committee having the expectation of making expenditures in support of the recall of the official, a political committee shall have received contributions of $10 or more each from at least ten individuals registered to vote in Washington state ((at the time they contributed to the political committee)).

(2) A political committee shall have received contributions of $10 or more each from at least ten individuals registered to vote in Washington state before contributing to a Washington state political committee.

(3) A political committee shall maintain a list of the names and addresses of these registered voters from whom contributions are received, the amount of each contribution, and the date each contribution is received. Upon written request of the commission or other person seeking this information, the political committee shall provide the list within ((14)) fourteen days ((a list of these ten individuals, identified by name, address, amount of contribution and date contribution was received)).

[Statutory Authority: RCW 42.17.370. 07-07-005, 390-17-315, filed 3/8/07, effective 4/8/07. Statutory Authority: RCW 42.17.370(1). 02-03-018, 390-17-315, filed 1/4/02, effective 2/4/02; 96-05-001, 390-17-315, filed 2/7/96, effective 3/9/96. Statutory Authority: RCW 42.17.390. 94-07-141, 390-17-315, filed 3/23/94, effective 4/23/94. Statutory Authority: RCW 42.17.370. 93-16-064, 390-17-315, filed 7/30/93, effective 8/30/93.]

OTS-4288.1


AMENDATORY SECTION(Amending WSR 06-11-132, filed 5/23/06, effective 6/23/06)

WAC 390-18-060   Electioneering communication reporting threshold and sponsors.   (1) A "sponsor of an electioneering communication" is defined in RCW ((42.17.020)) 42.17A.005(43).

(2) For the purposes of RCW ((42.17.020 (20))) 42.17A.005 (19)(c), an electioneering communication is reportable by the sponsor to the commission when the communication, alone or in combination:

(a) Identifies the same candidate in one or more communications satisfying RCW ((42.17.020 (20))) 42.17A.005 (19)(a) and (b) or commission rules;

(b) Is made by the same sponsor of one or more of the communications;

(c) When it, either alone, or in combination with one or more communications identifying the candidate by the same sponsor during the sixty days before an election, has a fair market or aggregate value of $((5,000)) 1,000 or more; and

(d) Is not a communication exempted from reporting under RCW ((42.17.020(21))) 42.17A.005(20) or commission rule.

(3) When the electioneering communication or communications - including radio or television transmissions, mailings, billboards, newspapers and/or periodicals - reach the $((5,000)) 1,000 threshold, the sponsor shall electronically report to the commission as required by RCW ((42.17.565)) 42.17A.305 within twenty-four hours of, or on the first working day after, the date the electioneering communication is first broadcast, transmitted, erected, distributed, or otherwise published.

(4) Once the $((5,000)) 1,000 threshold is reached, all subsequent electioneering communications by the sponsor identifying the same candidate are reportable as provided in RCW ((42.17.565)) 42.17A.305 and this rule.

(5) When more than one sponsor pays for the electioneering communication, the entire fair market value of the communication is attributable to all sponsors. All sponsors of the same communication are responsible for reporting once the $((5,000)) 1,000 threshold is met. A failure to report by one joint sponsor is not attributable to all joint sponsors of a specific communication or communications if the remaining sponsors have reported properly.

(6) Consistent with WAC 390-16-060 and the requirements of PDC Form C-6, a prorated portion of independent expenditure and electioneering communications expenditures shall be attributed to each candidate or ballot proposition identified in the advertisement or communication. That proration shall be based on a reasonable, good faith estimate of the value of the portion of the advertisement or communication relating to each candidate or proposition identified.

(((7) Examples. The following is a nonexclusive list of examples of reportable activities for electioneering communications:

(a) Single sponsor, single ad. Sponsor A pays for an electioneering communication identifying Candidate 1 and the communication has a fair market value of $5,000 or more. The electioneering communication is reportable by Sponsor A.

(b) Single sponsor, multiple ads. Sponsor A pays for three electioneering communications identifying Candidate 1, and the communications have an aggregate fair market value of $5,000 ($1,000 for the first, $2,000 for the second, and $2,000 for the third). All three communications are reportable within twenty-four hours of the third communication being first broadcast, transmitted, erected, distributed or otherwise published. All subsequent electioneering communications by Sponsor A identifying Candidate 1 are reportable.

(c) Multiple sponsors, multiple ads. Sponsors A and B jointly agree to pay for three electioneering communications identifying Candidate 1, and the communications have a total fair market value of $5,000 ($1,000 for the first, $2,000 for the second, and $2,000 for the third). All three communications become reportable when the third communication is sponsored. All subsequent electioneering communications by Sponsors A and/or B identifying Candidate 1 are reportable.

(d) Multiple sponsors, multiple ads. Sponsors A and B have separately paid for an electioneering communication identifying Candidate 1, and each communication has a fair market value of $4,000. Those communications are not reportable because they have not yet reached the $5,000 threshold. However, Sponsors A and B then jointly agree to pay for another electioneering communication identifying Candidate 1, and the communication has a fair market value of $1,000. Now the $5,000 reporting threshold has been reached and within twenty-four hours of the jointly sponsored communication being published, that communication and prior separately sponsored communications identifying Candidate 1 are reportable by Sponsors A and B. All subsequent electioneering communications by Sponsors A and/or B identifying Candidate 1 are reportable.

(e) Multiple sponsors, multiple ads. Sponsors A, B and C jointly plan and agree to pay for a series of electioneering communications identifying Candidate 1. They decide that Sponsor A will pay for the first ad, Sponsor B will pay for the second ad, and Sponsor C will pay for the third ad. Each ad has a fair market value of $4,999. Because A, B and C are acting in concert as one sponsoring entity for the electioneering communications, upon the publishing of the second ad the $5,000 threshold is met and A, B and C have an obligation to report the electioneering communications within 24 hours. Likewise, A, B and C have an obligation to report the third electioneering communication within twenty-four hours of its publication. All subsequent electioneering communications by Sponsors A, B and/or C identifying Candidate 1 are reportable.

(f) Prorating an ad. If 80% of one or more electioneering communications with a fair market value of $7,000 relates to a message or messages about Candidate 1, and the remaining 20% relates equally to two ballot propositions, the communication is reportable by the sponsor or sponsors because the $5,000 threshold has been met. All subsequent electioneering communications identifying Candidate 1 are reportable.))

[Statutory Authority: RCW 42.17.370 and 42.17.562. 06-11-132, 390-18-060, filed 5/23/06, effective 6/23/06.]

OTS-4333.1


AMENDATORY SECTION(Amending WSR 10-20-011, filed 9/24/10, effective 10/25/10)

WAC 390-19-030   Electronic filing -- Reporting threshold.   (1) The "electronic reporting threshold" that requires electronic filing of all contribution and expenditure reports is met when a candidate or political committee has expended $((10,000)) 5,000 or more in the preceding calendar year or expects to expend $((10,000)) 5,000 or more in the current calendar year.

(2) It is presumed that a filer "expects to expend" $((10,000)) 5,000 or more when any one of the following first occurs:

(a) A filer spends at least $((10,000)) 5,000;

(b) A filer is a candidate for the same office last sought, the filer's election is in the current calendar year, and his or her campaign expenditures in the previous election for the same office were $((10,000)) 5,000 or more;

(c) A filer's expenditures meet or exceed $((2,500)) 1,250 on or before March 31 of the current calendar year;

(d) A filer's expenditures meet or exceed $((5,000)) 2,500 on or before June 30 of the current calendar year;

(e) A filer's expenditures meet or exceed $((7,500)) 3,750 on or before September 30 of the current calendar year; or

(f) A filer otherwise projects that $((10,000)) 5,000 or more will be spent during the current calendar year.

(3) The following expenditures or transactions are excluded from the electronic reporting threshold calculation:

(a) Expenditures made to pay outstanding debts carried forward from a previous election;

(b) Surplus funds disposed of in accordance with RCW ((42.17.095)) 42.17A.430; and

(c) The value of in-kind contributions pledged or received within eight days of a special or general election.

(4) Candidate committees or political committees supporting or opposing ballot propositions that meet, exceed or expect to meet or exceed the electronic reporting threshold shall report electronically for the duration of the campaign.

[Statutory Authority: RCW 42.17.370(1). 10-20-011, 390-19-030, filed 9/24/10, effective 10/25/10. Statutory Authority: RCW 42.17.370. 05-11-001, 390-19-030, filed 5/4/05, effective 6/4/05. Statutory Authority: RCW 42.17.370(1). 04-01-130, 390-19-030, filed 12/18/03, effective 1/18/04. Statutory Authority: RCW 42.17.370. 01-22-052, 390-19-030, filed 10/31/01, effective 1/1/02.]

OTS-4334.1


AMENDATORY SECTION(Amending WSR 03-22-065, filed 11/4/03, effective 12/5/03)

WAC 390-37-103   Commission options following receipt of a staff report on alleged violations.   Upon receipt of a staff report concerning alleged violations of those sections of chapter 42.17A RCW that the commission enforces, the commission may:

(1) Schedule the matter for a hearing (adjudicative proceeding); or

(2) Issue an order; or

(3) ((In lieu of holding an enforcement hearing (adjudicative proceeding), or issuing an order,)) Refer the matter or apparent violations to the attorney general or other enforcement agency pursuant to RCW ((42.17.360(5))) 42.17A.105(5) and ((42.17.395)) 42.17A.750.

[Statutory Authority: RCW 42.17.370. 03-22-065, 390-37-103, filed 11/4/03, effective 12/5/03.]