WSR 97-15-114

PREPROPOSAL STATEMENT OF INQUIRY

PUBLIC DISCLOSURE COMMISSION

[Filed July 22, 1997, 3:10 p.m.]

Subject of Possible Rule Making: Amending F-1 thresholds.

Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 42.17.370(11) and 42.17.241 (1)(n).

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: Annually, some 6,500 state and local elected officials as well as at least 1,000 candidates for elective office file personal financial affairs statements with the Public Disclosure Commission. These reports show the filer's sources of income, real estate holdings, debts, investments, business involvements and the major sources of income of those businesses.

The section of law that governs what is reported on the personal financial affairs statement, also known as the F-1 report, contains various thresholds that affect the amount of information that needs to be reported. For example, only sources of income in excess of $1,000 need to be disclosed and only real estate valued at over $5,000 is reportable.

In addition, the law requires filers to indicate, by use of a letter code, the amount received from a source of income, the value of an investment, the amount of an outstanding debt, etc. For example, the filer must show whether the amount received from a specified source of income is under $1,999 (Code A), between $2,000 and $9,999 (Code B), between $10,000 and $19,999 (Code C), between $20,000 and $49,999 (Code D) and $50,000 or more (Code E).

RCW 42.17.370(11) authorizes the commission to adjust the threshold and code amounts for inflation. These amounts were last adjusted in 1985, taking effect with F-1 reports filed in 1986. The commission believes it may again be time to adjust the reporting thresholds and amount codes to reflect inflationary changes since 1985.

In addition to examining the threshold amounts and code values, the commission may decide that Part 5 of the F-1 form needs minor revision. Question 5A of the form asks a filer whether he or she was an officer, director, etc. of any corporation, company, union, association, joint venture or other entity at any time during the reporting period. The commission may decide to pursue amending the form to say "... or other public or private entity ..." to make it clear that information about public entities of which the official is an officer must also be disclosed on the F-1 form.

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 maintains a mailing list of persons who have expressed interest in disclosure issues over the past few years. The agency will mail a copy of the proposed rule-making notice (CR-102) to these persons, including business and labor representatives as well as government officials and others who have asked to be kept informed about matters that come before the commission.

Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication. The commission will discuss whether it will move ahead with proposed rule making on the topics outlined here at its meeting on August 19, 1997. Persons wishing to submit written comments should do so by Friday, August 15, to Vicki Rippie, Assistant Director, Public Disclosure Commission, P.O. Box 40908, Olympia, WA 98504, FAX (360) 753-1112. The public is welcome to attend the meeting. Contact Vicki Rippie at (360) 586-4838 for additional information.

July 22, 1997

Melissa Warheit