WSR 16-17-027

PREPROPOSAL STATEMENT OF INQUIRY

[Filed August 8, 2016, 1:23 p.m.]

Subject of Possible Rule Making: Surplus funds accounts—Disclosure—Reporting deadlines, the commission intends to establish a reporting schedule that requires surplus funds account expenditures to be disclosed when more than $200 is spent in a single month or an aggregate of more than $200 is spent since the last report was filed.

Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 42.17A.110(1) and 42.17A.240(11).

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: Surplus funds are the excess campaign contributions remaining after the election that are not needed to satisfy campaign debts. Elected officials may have a bank account in which only surplus funds are deposited. This account may be used for nonreimbursed, public office-related expenses and other uses provided for in RCW 42.17A.430. The statute provides for disclosure of the surplus funds expenditures, but does not set out reporting deadlines.

The commission has received complaints that officials are spending surplus funds without reporting the activity. In some cases, nondisclosure has gone on for more than a year and thousands of dollars were spent. A reporting schedule will stop this practice and provide the public with timely information about how surplus funds are spent.

Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: None.

Process for Developing New Rule: The commission expects to review draft rule language during the regular September 22, 2016, meeting and schedule a hearing for the purpose of adopting the proposed rule during the regular December 8, 2016, meeting.

Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by submitting comments to Lori Anderson, P.O. Box 40908, Olympia, WA 98504-0908, e-mail lori.anderson@pdc.wa.gov, fax (360) 753-1112, phone (360) 664-2737. Participate in the September 22 commission meeting - exact time to be determined when agenda is published. Meeting location: 711 Capitol Way, Room 206, Olympia, WA. Contact Lori Anderson to accommodate alternatives to in-person meeting participation.

August 8, 2016

Lori Anderson

Communications and

Training Officer