WSR 14-08-015 PROPOSED RULES PUBLIC DISCLOSURE COMMISSION [Filed March 21, 2014, 11:56 a.m.]
Original Notice.
Preproposal statement of inquiry was filed as WSR 14-04-089.
Title of Rule and Other Identifying Information: WAC 390-16-063 Additional information regarding C-6 report filing - current rule clarifies who is required to disclose independent expenditures under RCW 42.17A.255 and 42.17A.260.
Hearing Location(s): Public Disclosure Commission (PDC), Evergreen Plaza Building, Room 206, 711 Capitol Way, Olympia, WA, on May 22, 2014, at 9:30 a.m.
Date of Intended Adoption: May 22, 2014.
Submit Written Comments to: Lori Anderson, by mail at P.O. Box 40908, Olympia, WA 98504-0908, or physical address at 711 Capitol Way, Room 206, Olympia, WA, e-mail lori.anderson@pdc.wa.gov, fax (360) 753-1112, by May 12, 2014.
Assistance for Persons with Disabilities: Contact Nancy Coverdell by phone (360) 753-1980.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: Converting PDC Interpretation 07-01, Computing Thresholds for Independent Expenditures (adopted March 22, 2007) to rule. The interpretation and proposed amendments to WAC 390-16-063 explain how to prorate and attribute independent expenditures supporting or opposing more than one candidate or ballot measure for the purposes of determining when disclosure is required and whether special sponsor identification is required for independent expenditure political advertising.
Reasons Supporting Proposal: PDC Interpretation 07-01 was adopted March 22, 2007, to provide guidance to persons who make independent expenditures regarding when disclosure is required and when special sponsor identification must be included in advertising resulting from the independent expenditure. The instructions set out in the interpretation have become the accepted practice and should be converted to rule.
Statutory Authority for Adoption: RCW 42.17A.110(1).
Statute Being Implemented: RCW 42.17A.255, 42.17A.260, and 42.17A.320(2).
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: This rule will enact an interpretation that has been in place for seven years. No increased costs to the agency are expected.
Name of Proponent: PDC, governmental.
Name of Agency Personnel Responsible for Drafting and Implementation: Lori Anderson, 711 Capitol Way, Room 206, Olympia, WA, (360) 664-2737; and Enforcement: Philip Stutzman, 711 Capitol Way, Room 206, Olympia, WA, (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 business. The PDC is not subject to the requirement to prepare a school district fiscal impact statement, per RCW 28A.305.135 and 34.05.320.
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 RCW 34.05.328. Further, the PDC does not voluntarily make that section applicable to the adoption of these rules pursuant to subsection (5)(a)(ii) and to date, the joint administrative rules review committee has not made the section applicable to the adoption of these rules.
March 21, 2014
Lori Anderson
Communications
and Training Officer
AMENDATORY SECTION (Amending WSR 12-03-002, filed 1/4/12, effective 2/4/12)
WAC 390-16-063 Additional information regarding independent expenditures and C-6 report filing.
(1) RCW 42.17A.255 requires a person not otherwise subject to the disclosure requirements of Chapter 42.17A RCW to disclose an independent expenditure of one hundred dollars or more that supports or opposes a candidate or ballot measure. RCW 42.17A.260 requires the disclosure of political advertising with a fair market value of one thousand dollars or more that is presented to the public within twenty-one days of an election, that supports or opposes a candidate or ballot measure, and that qualifies as an independent expenditure.
(a) Prorating and attributing independent expenditures that support or oppose multiple candidates or ballot measures. Whether to disclose an independent expenditure that supports or opposes multiple candidates or ballot measures is determined by prorating and attributing the cost of the expenditure among all candidates or ballot measures that are the subject of the expenditure. Disclosure is required when:
(i) The pro rata cost for a single candidate or ballot measure reaches or exceeds the statutory threshold and none of the subject candidates are seeking election to the same office and none of the subject ballot measures are competing measures; or
(ii) The sum of the pro rata costs attributable to all candidates seeking election to the same office or the sum of the pro rata costs attributable to competing ballot measures reaches or exceeds the statutory threshold.
Example 1 (prorating): A mailer/postcard supports one candidate and one ballot measure at a total cost of $3,200. One side of the postcard is entirely devoted to the ballot measure. The other side is split evenly between the candidate and the ballot measure. The ballot measure's pro rata share is $2,400 (75%) and the candidate's pro rata share is $800 (25%).
Example 2 (prorating and attributing): An independent expenditure ad appears in the newspaper two weeks before the election. The ad costs $1,000; 50% of the ad supports a candidate and the other 50% opposes the candidate's opponent. The independent expenditure is disclosed under RCW 42.17A.260 because the sum of the pro rata share for the two candidates who seek the same office is $1,000.
(b) Disclosing independent expenditures that support or oppose multiple candidates or ballot measures. When a pro rata, attributable cost reaches or exceeds the statutory threshold, the entire independent expenditure must be disclosed. Include the amounts attributable to all candidates and ballot propositions supported or opposed by the expenditure.
(c) Other applications of prorating and attributing independent expenditures. Use the prorating and attribution steps explained in (a)(i) and (ii) of this section to determine when an independent expenditure as defined in RCW 42.17A.005(26) must comply with the "no candidate authorized this ad" sponsor identification and, if applicable, the "top 5" contributors required by RCW 42.17A.320(2) and WAC 390-18-010.
(2) A political committee reporting pursuant to RCW 42.17A.225, 42.17A.235 and 42.17A.240 is exempt from providing on a C-6 form itemized information concerning its sources of funds giving in excess of two hundred fifty dollars for an electioneering communication, unless the committee received funds that were requested or designated for the communication.
(((2))) (3) An out-of-state political committee shall report pursuant to RCW 42.17A.305 if it sponsors an electioneering communication defined in RCW 42.17A.005.
(((3))) (4) The sponsor of an electioneering communication shall report pursuant to RCW 42.17A.305 and commission rules regarding electioneering communications, even if the expenditure also satisfies the definition of independent expenditure in RCW 42.17A.005 or 42.17A.255. Persons in compliance with this subsection are deemed in compliance with RCW 42.17A.255 or 42.17A.260.
(((4))) (5) Any person making an expenditure that is reportable under RCW 42.17A.640, grass roots lobbying campaigns, that also satisfies the definition of electioneering communication in RCW 42.17A.005 shall file pursuant to RCW 42.17A.305 and commission rules regarding electioneering communications.
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