PUBLIC DISCLOSURE COMMISSION

[Filed December 28, 2018, 2:20 p.m.]

Preproposal statement of inquiry was filed as WSR 18-10-069.

Title of Rule and Other Identifying Information: To update rules for the Disclose Act of 2018. The 2018 legislature passed SSB 5991, chapter 111, Laws of 2018, pertaining to campaign finance disclosure.

Hearing Location(s): On February 28, 2019, at 9:45 a.m., at the Public Disclosure Commission, 711 Capitol Way South, Suite 206, Olympia, WA 98504.

Date of Intended Adoption: March 28, 2019.

Submit Written Comments to: Barbara Sandahl, 711 Capitol Way South, Suite 206, Olympia, WA, email pdc@pdc.wa.gov, by February 27, 2019.

Assistance for Persons with Disabilities: Contact Jana Greer, phone 360-753-1111, email pdc@pdc.wa.gov, by February 26, 2019.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: To update rules for the Disclose Act of 2018. The 2018 legislature passed SSB 5991, chapter 111, Laws of 2018, pertaining to campaign finance disclosure. New rules will need to be added to the WAC to reflect the changes.

Reasons Supporting Proposal: To fulfill the intent of the Disclosure [Disclose] Act of 2018.

Statutory Authority for Adoption: RCW 42.17A.110(1) and chapter 111, Laws of 2018.

Statute Being Implemented: Chapter 111, Laws of 2018.

Rule is not necessitated by federal law, federal or state court decision.

Name of Agency Personnel Responsible for Drafting: Sean Flynn, public disclosure commission, 360-753-1111; Implementation and Enforcement: Barbara Sandahl, public disclosure commission, 360-753-1111.

A school district fiscal impact statement is not required under RCW 28A.305.135.

A cost-benefit analysis is not required under RCW 34.05.328.

This rule proposal, or portions of the proposal, is exempt from requirements of the Regulatory Fairness Act because the proposal:

Is exempt under RCW 19.85.025(3) as the rule content is explicitly and specifically dictated by statute.

WAC 390-05-521Definition—Payments received by incidental committees.

For purpose of reporting the top ten largest sources of payments to an incidental committee, pursuant to RCW 42.17A.235, a "payment" means any monetary transfers or in-kind value accepted by the incidental committee, regardless of the donative intent or benefit received by the person making the transfer.

WAC 390-05-535Definition—Nonprofit organization within the meaning of incidental committee.

A "nonprofit organization," as the term is used in the definition of incidental committee in RCW 42.17A.005, means an entity that meets one or more of the following criteria:

(1) An entity that is eligible for an exemption from income tax under section 501(c) of the federal Internal Revenue Code;

(2) An organization, association or corporation whose income is not paid directly or indirectly to its members, stockholders, officers, directors or trustees except in the form of services rendered by the organization, association, or corporation in accordance with its purposes and bylaws and the salary or compensation paid to officers of such organization, association or corporation is for actual services rendered and compares to the salary or compensation of like positions within the public services of the state; or

(3) A limited partnership or limited liability company where an entity described in subsection (1) or (2) of this section is a general partner or managing member, respectively.

WAC 390-16-013Incidental committees—Registration and reporting for incidental committees.

(1) The official form for providing the statement of organization by incidental committees is designated the incidental committee registration "C-1-IC."

(2) The official form for reporting top ten payments and expenditures by incidental committees as required under RCW 42.17A.240 is designated "C-8." Reports must be filed electronically where the commission has provided an electronic option.

(3) For purposes of reporting the sources of the top ten largest cumulative payments of ten thousand dollars or greater, and payments received by an incidental committee, as required under RCW 42.17A.240, the C-8 report must include:

(a) The top ten sources of payments within the current calendar year through the applicable reporting period, including any changes to the top ten sources from the previous reporting period; and

(b) The total cumulative payment value, within the current calendar year through the applicable reporting period, made from a person who is reported on the current report as a source of a top ten payment.

(4) An incidental committee may request a modification or suspension of reporting requirements in cases of manifestly unreasonable hardship pursuant to RCW 42.17A.120, as set forth in these rules under chapter 390-28 WAC.

(5) Each incidental committee is automatically dissolved at the end of the calendar year in which it was registered, or upon completion of all reporting requirements for that year, whichever is later. Dissolution does not absolve the nonprofit organization that registered as an incidental committee from responsibility for any obligations resulting from the finding before or after dissolution of a violation committed prior to dissolution.

WAC 390-16-013AIncidental committees—Filing reports for incidental committees.

All incidental committees required to file reports under chapter 42.17A RCW must file them electronically where the commission has provided an electronic option. The executive director may make exceptions on a case-by-case basis for an incidental committee that lacks the technological ability to file reports electronically. To the extent an electronic option is not provided, copies of this form are available on the PDC's web site, www.pdc.wa.gov, and at the PDC office, Olympia, Washington.