Date Adopted: December 10, 2003.

     Purpose: The proposed rule amendment references WAC 390-16-037 and provides examples of how to itemize expenditures by agents and employees.

     Citation of Existing Rules Affected by this Order: Amending 1, WAC 390-16-205 Expenditures by agents, employees -- Reporting.

     Statutory Authority for Adoption: RCW 42.17.370(1).

      Adopted under notice filed as WSR 03-22-066 on November 4, 2003.

     Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 1, Repealed 0.

     Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 1, Repealed 0.

     Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0;      Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 1, Repealed 0.

     Effective Date of Rule: Thirty-one days after filing.

December 18, 2003

Vicki Rippie

Executive Director

OTS-6781.2

AMENDATORY SECTION(Amending Order 74, filed 4/26/76)

WAC 390-16-205   Expenditures by agents, employees -- Reporting.   Expenditures made on behalf of a candidate or political committee by any person, agency, firm, organization, etc. employed or retained for the purpose of organizing, directing, managing or assisting the candidate's or committee's efforts shall be deemed expenditures by the candidate or committee. In accordance with WAC 390-16-037, such expenditures shall be reported by the candidate or committee as if made or incurred by the candidate or committee directly.

     Example A: If a campaign committee pays a consultant $5,000 to prepare and mail a political advertising brochure, all costs associated with the project shall be itemized by identifying each service provided, vendor utilized and amount attributable to each:

Vendor Name	Purpose		Amount
Jones Consulting			$5,000
	ABC Graphics	$1,200
	XYZ Printing Co. (5,000 pieces)	$3,000
	Your Mailhouse	$800

     Or, if Jones Consulting completes the project through a combination of services provided by its principals or employees and subcontractors:

Vendor Name	Purpose		Amount
Jones Consulting			$5,000
	Graphic design	$1,200
	XYZ Printing Co. (5,000 pieces)	$3,000
	Your Mailhouse	$800

     Example B: If a campaign committee pays a consultant to perform tasks such as fund-raising, survey design or campaign plan development, and the consultant does not subcontract with other vendors, the expense shall be reported as follows:

Vendor Name	Purpose	Amount
Jones Consulting	Fund-raising, survey design campaign plan development	$5,000

[Order 74, § 390-16-205, filed 4/26/76.]