WSR 14-11-004

PROPOSED RULES

PUBLIC DISCLOSURE COMMISSION

[Filed May 7, 2014, 2:41 p.m.]

Original Notice.

Preproposal statement of inquiry was filed as WSR 13-22-053.

Title of Rule and Other Identifying Information: WAC 390-20-0101 Forms for lobbyist registration, 390-20-020 Forms for lobbyist report of expenditures, 390-20-052 Application of RCW 42.17A.635—Reports of agency lobbying, 390-20-111 Forms for lobbyist employers report of political contributions, 390-20-120 Forms for report of legislative activity by public agencies, 390-20-125 Forms for registration and reporting by sponsors of grass roots lobbying campaigns, 390-20-143 Application of lobbying provisions to organizations, 390-20-144 Registration and reporting by lobbyist organizations, and proposed new WAC 390-20-150 Changes in dollar amounts.

Hearing Location(s): Public Disclosure Commission (PDC), Evergreen Plaza Building, Room 206, 711 Capitol Way, Olympia, WA, on June 26, 2014, at 9:30 a.m.

Date of Intended Adoption: June 26, 2014.

Submit Written Comments to: Lori Anderson, P.O. Box 40908, Olympia, WA 98504-0908 (mail), 711 Capitol Way, Room 206, Olympia, WA (physical), e-mail lori.anderson@pdc.wa.gov, fax (360) 753-1112, by June 17, 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: The commission is charged with enforcing disclosure of lobbying expenditures required by RCW 42.17A.600 through 42.17A.640. In August 2013, during rule-making proceedings to amend lobbying disclosure forms, the commission received stakeholder comments related to lobbying disclosure other than the subject rule amendments. In response, the commission began rule making in November 2013 to consider addressing the other concerns raised by stakeholders.

Acting on comments received during a November 20, 2013, stakeholder meeting during which attendees expressed concern that the "more than $25" threshold triggering itemization of entertainment expenses had not been adjusted since 1978 and is too low, the commission proposes proceeding with inflationary adjustments to the lobbying expenditure disclosure thresholds. RCW 42.17A.125(2) authorizes the commission to revise, at least once every five years but no more often than every two years, the monetary reporting threshold and reporting code values of chapter 42.17A RCW. Since 2010, the law has required the commission equally adjust all dollar amounts in the (lobbying disclosure) category if/when it seeks to adjust any dollar amount. This is the first inflationary adjustment the commission has proposed since 2010, which means that the adjustment[s] to dollar amounts that have been in effect for the longest amount of time will be more drastic than those to the amounts that were adjusted more recently. The commission is proposing adjustments to only the dollar amounts that are unique to lobbying disclosure. Any lobbying disclosure dollar thresholds or code amounts derived from and aligned with disclosure thresholds or codes in other categories found in chapter 42.17A RCW, such as personal finance disclosure or campaign disclosure, are not included in this proposal.

Reasons Supporting Proposal: Stakeholders have raised valid concerns that the current disclosure thresholds for lobbying expenditures are outdated, considering that the most recent adjustment was made in 1990 and other current amounts have been in place since the 1970s. RCW 42.17A.125(1) requires the commission to consider inflationary adjustments for certain dollar amounts, including campaign contribution limits, every two years. Additionally, the commission's last inflationary adjustments to the dollar thresholds and codes in chapter 42.17A RCW, personal finance category, were made in 2008. Inflationary adjustments to the disclosure thresholds for lobbying expenditures are overdue.

Statutory Authority for Adoption: RCW 42.17A.110 and 42.17A.125.

Statute Being Implemented: RCW 42.17A.600 (1)(i), 42.17A.610(5), 42.17A.615 (2)(a), 42.17A.630 (2)(a), 42.17A.635 (5)(d)(v)(B), and 42.17A.640(1).

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: 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: Andrea Doyle, 711 Capitol Way, Room 206, Olympia, WA, (360) 664-2735.

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.

May 7, 2014

Lori Anderson

Communications and

Training Office

AMENDATORY SECTION (Amending WSR 14-01-011, filed 12/5/13, effective 1/5/14)

WAC 390-20-0101 Forms for lobbyist registration.

The official form for lobbyist registration as required by RCW 42.17A.600 is designated "L-1," revised ((1/14)) 12/14. Copies of this form are available on the commission's web site, www.pdc.wa.gov, and at the Commission Office, Room 206, Evergreen Plaza Building, Olympia, Washington 98504. Any paper attachments shall be on 8-1/2" x 11" white paper.

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AMENDATORY SECTION (Amending WSR 14-01-011, filed 12/5/13, effective 1/5/14)

WAC 390-20-020 Forms for lobbyist report of expenditures.

The official form for the lobbyist report of expenditures is designated "L-2," revised ((1/14)) 12/14 which includes the L-2 Memo Report, dated 1/02. Copies of this form are available on the commission's web site, www.pdc.wa.gov, and at the Commission Office, Room 206, Evergreen Plaza Building, Olympia, Washington 98504. Any attachments shall be on 8-1/2" x 11" white paper.

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AMENDATORY SECTION (Amending WSR 12-03-002, filed 1/4/12, effective 2/4/12)

WAC 390-20-052 Application of RCW 42.17A.635—Reports of agency lobbying.

Pursuant to the authority granted in RCW 42.17A.635(8), the commission adopts the following interpretations regarding the reporting of lobbying by public agencies pursuant to RCW 42.17A.635:

(1) The phrase "in-person lobbying" contained in RCW 42.17A.635 (5)(d)(v)(B) includes activity which is intended to influence the passage or defeat of legislation, such as testifying at public hearings, but does not include activity which is not intended to influence legislation, such as attending a hearing merely to monitor or observe testimony and debate.

(2) The phrase "a legislative request" contained in RCW 42.17A.635 (5)(d)(ii) includes an oral request from a member of the legislature or its staff.

(3)(a) When any subagency (i.e., department, bureau, board, commission or agency) within a state agency, county, city, town, municipal corporation, quasi-municipal corporation or special purpose district (i.e., primary agency) has independent authority to expend public funds for lobbying, that subagency may file a separate L-5 reporting the information required by RCW 42.17A.635(5).

(b) When a subagency elects to file its own, separate L-5, it shall notify the commission and the administrative head of the primary agency of its intentions in writing. The primary agency shall not thereafter include information for the subagency in its L-5, and shall have no legal obligation for the filings of the subagency.

(4) Pursuant to RCW 42.17A.635(6), certain local agencies may elect to have lobbying activity on their behalf reported by their elected officials, officers and employees in the same manner as lobbyists who register and report under RCW 42.17A.600 and 42.17A.615:

(a) Whenever such a local agency makes such an election, it shall provide the commission with a written notice.

(b) After such an election, those who lobby on behalf of such local agency shall register and report all lobbying activity reportable under RCW 42.17A.635(5) in the same manner as lobbyists who are required to register and report under RCW 42.17A.600 and 42.17A.615. Such a local agency shall report pursuant to RCW 42.17A.630.

(c) In order to terminate such an election, such a local agency shall provide the commission with a written notice and it shall report pursuant to RCW 42.17A.635(5) thereafter.

(d) The exemptions from reportable lobbying activity contained in RCW 42.17A.635 (5)(d) apply to all agencies, whether or not they have exercised the election to report in the same manner as lobbyists who report under RCW 42.17A.600, 42.17A.615, and 42.17A.630. The exemptions contained in RCW 42.17A.610 (1), (4) and (5) do not apply to any agency.

(5) Unless an agency has elected to report its lobbying pursuant to RCW 42.17A.635(6) and subsection (3) of this section, an agency shall include the reportable lobbying activity on its behalf by an elected official in its quarterly report. Such an elected official does not file any separate report of that activity.

(6) Reportable in-person lobbying by elected officials, officers and employees:

(a) An elected official does not engage in reportable in-person lobbying on behalf of ((this)) an agency unless and until that elected official has expended in excess of ((fifteen)) twenty-five dollars of nonpublic funds in connection with such lobbying for or on behalf of any one or more members of the legislature or state elected officials or public officers or employees of the state of Washington during any three-month period as provided in RCW 42.17A.635 (5)(d)(v)(B).

(b) Other officers and employees do not engage in reportable in-person lobbying on behalf of their agency unless and until they have, in the aggregate, expended in excess of ((fifteen)) twenty-five dollars of nonpublic funds in connection with such lobbying for or on behalf of any one or more members of the legislature or state elected officials or public officers or employees of the state of Washington or they have, in the aggregate, engaged in such lobbying for more than four days or parts thereof during any three month period as provided in RCW 42.17A.635 (5)(d)(v)(B).

(c) When limits in (a) or (b) of this subsection have been exceeded, the agency shall report such elected official, officer, or employee as a "person who lobbied this quarter" on the front of PDC Form L-5 and include a listing of those excess expenditures as noted on that form.

AMENDATORY SECTION (Amending WSR 12-03-002, filed 1/4/12, effective 2/4/12)

WAC 390-20-111 Form for lobbyist employers report of political contributions.

The official form entitled "Employer of Lobbyist Monthly Political Contribution Report" as required by RCW 42.17A.630 (2)(a) is designated "L-3c" revised ((1/02)) 12/14. Copies of this form are available on the commission's web site, www.pdc.wa.gov, and at the Commission Office, Room 206, Evergreen Plaza Building, Olympia, Washington, 98504-0908. Any attachments must be on 8-1/2" x 11" white paper.

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AMENDATORY SECTION (Amending WSR 12-01-031, filed 12/13/11, effective 1/13/12)

WAC 390-20-120 Forms for report of legislative activity by public agencies.

The official form for the report of legislative activity by public agencies as required by RCW 42.17A.635 is designated "L-5," revised ((1/12)) 12/14. Copies of this form are available on the commission's web site, www.pdc.wa.gov, and at the Commission Office, Room 206, Evergreen Plaza Building, Olympia, Washington 98504-0908. Any attachments shall be on 8-1/2" x 11" white paper.

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AMENDATORY SECTION (Amending WSR 12-03-002, filed 1/4/12, effective 2/4/12)

WAC 390-20-125 Forms for registration and reporting by sponsors of grass roots lobbying campaigns.

The official form for registration and reporting by sponsors of grass roots lobbying campaigns as required by RCW 42.17A.640 is designated "L-6," revised ((1/02)) 12/14. Copies of this form are available on the commission's web site, pdc.wa.gov, and at the Commission Office, Room 206, Evergreen Plaza Building, Olympia, Washington 98504-0908. Any attachments shall be on 8-1/2" x 11" white paper.

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AMENDATORY SECTION (Amending WSR 12-03-002, filed 1/4/12, effective 2/4/12)

WAC 390-20-143 Application of lobbying provisions to organizations.

(1) A lobbyist other than a natural person shall be deemed to have properly restricted its lobbying activities and is eligible for the RCW 42.17A.610(5) "casual lobbying" exemption during any three-month period in which its agents or employees do not make an expenditure of more than ((twenty-five)) thirty-five dollars for or on behalf of legislators, state elected officials, public officers or employees of the state of Washington.

(2) A lobbyist other than a natural person which does sponsor or coordinate or directly make unreported expenditures exceeding ((twenty-five)) thirty-five dollars during a three-month period, as fully described in subsection (1) of this section, must register and report as required by RCW 42.17A.600 and 42.17A.615: Provided, That it can satisfy these requirements by having an individual agent (a) register and reports as a lobbyist, and (b) include as part of Form L-2 a report of these and all other lobbying expenditures made on behalf of the nonnatural person during that three-month period.

(3) An entity, including but not limited to a law firm, consulting firm, advertising agency, or other similar organization, which receives or expects to receive compensation for lobbying from any person, must register and report as a lobbyist pursuant to RCW 42.17A.600 and 42.17A.615: Provided, That membership dues or contributions to a nonprofit organization made for the purpose of promoting a general interest and not in return for lobbying on behalf of any specific member or contributor shall not be regarded as compensation for this purpose. Registration statements and reports shall list as the lobbyists both the firm or organization and each individual acting on its behalf. The person paying the compensation shall report under RCW 42.17A.630 as a lobbyist's employer.

AMENDATORY SECTION (Amending WSR 12-03-002, filed 1/4/12, effective 2/4/12)

WAC 390-20-144 Registration and reporting by lobbyist organizations.

(1) Any firm, company, association or similar organization required to register as a lobbyist shall file one registration statement (PDC Form L-1) for each employer for whom the organization will lobby.

(a) The lobbying organization will attach to the registration statement a photo and the biographical information required by RCW 42.17A.605 (page 3 of the L-1 Form) for each individual agent of the organization who is authorized to lobby for that particular employer.

(b) If the agent is authorized to lobby for several employers, only one photo and biographical sheet need be submitted.

(c) The organization will notify the commission in writing when there is any change in the employment or assignment of agents who lobby.

(2) One monthly expenditure report (PDC Form L-2) shall be submitted showing all expenditures made by the organization and its agents. It is unnecessary to prorate or attribute expenditures to individual agents of the organization. However, expenditures for entertainment exceeding (($25)) fifty dollars per occasion shall identify the individual agent(s) who were present at the occasion. The L-2 report shall be signed by the president or chief executive officer of the lobbying organization.

(3) If any individual agent of the organization ceases to lobby or the organization terminates that agent's authority to lobby, the organization shall notify PDC in writing or by notation on the L-2 report of the termination.

NEW SECTION

WAC 390-20-150 Changes in dollar amounts.

Pursuant to the commission's authority in RCW 42.17A.125(2) to revise the monetary reporting thresholds found in chapter 42.17A RCW to reflect changes in economic conditions, the following revisions are made:


Statutory Section	Subject Matter	Amount and Date Enacted or Last Revised	Revision Effective December 1, 2014
.600 (1)(i)	Lobbyist employer's members or funders	$500 (1973)	$1,450
.610(5)	Casual lobbying threshold	$25 (1982)	$35
.615 (2)(a)	Itemize entertainment expenditures	$25 (1978)	$50
.630 (2)(a)	Contributions disclosed by lobbyist employer on monthly report (L-3c)	$100 (1990)	$110
.635 (5)(d)(v)	Nonpublic funds spent on gifts provided by public agency	$15 (1979)	$25
.640(1)	Grass roots lobbying	$500/ $1,000 (1985)	$700/ $1,400