Title of Rule and Other Identifying Information: Title 390 WAC, amending WAC 390-05-400 Changes in dollar amounts, 390-16-230 Surplus campaign funds -- Use in future, 390-17-030 Sample ballots and slate cards, 390-17-060 Exempt activities -- Definitions, reporting, 390-17-065 Recordkeeping and reporting of exempt contribution accounts, 390-17-300 Contribution designation for primary and general election, 390-17-302 Contributions after the primary election, 390-17-315 Political committees -- Qualifications to contribute, 390-17-320 Contributions from corporations, businesses, unions and political committees, and 390-17-405 Volunteer services.

     Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules:

•     Amend WAC 390-05-400 to correct a statute reference in RCW 42.17.640 changed during the 2006 legislative session.

•     Amend WAC 390-16-230 to remove the reference to repealed statute RCW 42.17.630 and replace it with new reference to RCW 42.17.020(9).

•     Amend WAC 390-17-030, 390-17-060, 390-17-065, 390-17-300, 390-17-310, 390-17-315, 390-17-320 and 390-17-405 to correct a statute reference in RCW 42.17.640 changed during the 2006 legislative session.

•     Amend WAC 390-17-302 to correct a statute reference [in] RCW 42.17.640 changed during the 2006 legislative session, and to remove a reference to repealed WAC 390-16-311.

     Reasons Supporting Proposal: To conform to current statutory references in chapter 348, Laws of 2006, and remove references to repealed WAC 390-16-311 and RCW 42.17.630.

     Statutory Authority for Adoption: RCW 42.17.370.

     Statute Being Implemented: Chapter 42.17 RCW.

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

     Name of Proponent: Public disclosure commission, governmental.

     Name of Agency Personnel Responsible for Drafting and Implementation: Doug Ellis, 711 Capitol Way, Room 206, Olympia, WA 98504, (360) 664-2735; and Enforcement: Phil Stutzman, 711 Capitol Way, Room 206, Olympia, WA 98504, (360) 664-8853.

August 28, 2006

Vicki Rippie

Executive Director

OTS-9132.1

AMENDATORY SECTION(Amending WSR 06-07-001, filed 3/1/06, effective 4/1/06)

WAC 390-05-400   Changes in dollar amounts.   Pursuant to the requirement in RCW 42.17.690 that the commission biennially revise the dollar amounts found in Initiative 134 to reflect changes in economic conditions, the following revisions are made:

Code Section	Subject Matter	Amount Enacted or Last Revised		2006 Revision
.020	Definition of "Independent
	Expenditure"	$ 675		$ 700
.125	Reimbursement of candidate for loan to
	own campaign	$ 4,000		$ 4,300
.180(1)	Report --
	Applicability of provisions to
	Persons who made contributions	$ 13,500		$ 14,500
	Persons who made independent
	expenditures	$ 675		$ 700
.640(((1))) (2)	Contribution Limits--
	Candidates for state leg. office	$ 700
	Candidates for other state office	$ 1,400
.640(((2))) (3)	Contribution Limits--
	State official up for recall or pol comm.
	supporting recall--
	State Legislative Office	$ 700
	Other State Office	$ 1,400
.640(((3))) (4)	Contribution Limits--
	Contributions made by political parties
	and caucus committees
	State parties and caucus committees	.70 per voter
	County and leg. district parties	.35 per voter
	Limit for all county and leg. district
	parties to a candidate	.35 per voter
.640(((4))) (5)	Contribution Limits--
	Contributions made by pol. parties and caucus
	committees to state official up for recall or
	committee supporting recall
	State parties and caucuses	.70 per voter
	County and leg. district parties	.35 per voter
	Limit for all county and leg. district parties
	to state official up for recall or pol. comm.
	supporting recall	.35 per voter
.640(((6))) (7)	Limits on contributions to political parties
	and caucus committees
	To caucus committee	$ 700
	To political party	$ 3,500
.740	Contribution must be made by
	written instrument	$ 65		$ 70

[Statutory Authority: RCW 42.17.370 and 42.17.690. 06-07-001, § 390-05-400, filed 3/1/06, effective 4/1/06. Statutory Authority: RCW 42.17.690. 03-22-064, § 390-05-400, filed 11/4/03, effective 1/1/04. Statutory Authority: RCW 42.17.370 and 42.17.690. 01-22-050, § 390-05-400, filed 10/31/01, effective 1/1/02. Statutory Authority: RCW 42.17.370(1). 00-04-058, § 390-05-400, filed 1/28/00, effective 3/1/00. Statutory Authority: RCW 42.17.690. 98-08-069, § 390-05-400, filed 3/30/98, effective 5/1/98; 96-04-021, § 390-05-400, filed 1/30/96, effective 3/1/96.]

OTS-9123.1

AMENDATORY SECTION(Amending WSR 93-22-002, filed 10/20/93, effective 11/20/93)

WAC 390-16-230   Surplus campaign funds -- Use in future.   (1) If at any time in the future or after the last day of the election cycle for candidates as defined in RCW ((42.17.630(3))) 42.17.020(9) any contribution is received or an expenditure is made from surplus funds for any purpose which would qualify the recipient or person who made the expenditure as a candidate or political committee, it will be presumed the recipient or person who made the expenditure of such funds has initiated a new candidacy or committee. Surplus funds may only be expended for a new candidacy if the candidate is seeking the same office sought at his or her last election. Within fourteen days of the day such contribution is received or expenditure is made, such candidate or political committee shall file (a) a final report for the previous campaign as provided in RCW 42.17.080 and 42.17.090 and (b) a statement of organization and initial report for the new campaign as provided by RCW 42.17.040, 42.17.080 and 42.17.090. The surplus funds may be carried forward to the new campaign, reported as one sum and listed as a contribution identified as "funds from previous campaign." All augmentations to and all expenditures made from the retained surplus funds after the last day of the election cycle shall be reported in detail as to source, recipient, purpose, amount and date of each transaction.

     (2) For candidates as defined in RCW ((42.17.630(3))) 42.17.020(9), if at any time after the last day of the election cycle, any contribution is received or expenditure is made from such surplus funds for any purpose which would qualify the recipient or person who made the expenditure as a candidate or authorized committee, it will be presumed the recipient or person who made the expenditure of such funds has initiated a new candidacy or committee. Surplus funds may only be expended for a new candidacy if the candidate is seeking the same office sought at his or her last election. Within fourteen days of the day such contribution is received or expenditure is made, such candidate or authorized committee shall file (a) a final report for the previous campaign as provided in RCW 42.17.080 and 42.17.090 and (b) a statement of organization and initial report for the new campaign as provided by RCW 42.17.040, 42.17.080 and 42.17.090. The surplus funds as of the last day of the election cycle may be carried forward to the new campaign, reported as one sum and listed as a contribution identified as "funds from previous campaign." "Funds from previous campaign" carried forward by a candidate to his or her new campaign are not subject to contribution limits set forth in RCW 42.17.640.

     (3) A political committee formed to support or oppose a particular ballot proposition or particular candidates which retains surplus funds to use in support or opposition of other candidates or of other ballot propositions has become a continuing political committee and must thereafter register and report in accordance with chapter 42.17 RCW.

[Statutory Authority: RCW 42.17.370. 93-22-002, § 390-16-230, filed 10/20/93, effective 11/20/93; 93-16-064, § 390-16-230, filed 7/30/93, effective 8/30/93. Statutory Authority: RCW 42.17.370(1). 86-04-071 (Order 86-01), § 390-16-230, filed 2/5/86; 82-14-016 (Order 82-04), § 390-16-230, filed 6/28/82; Order 70, § 390-16-230, filed 2/25/76; Order 62, § 390-16-230, filed 8/26/75.]

OTS-9124.1

AMENDATORY SECTION(Amending WSR 06-11-132, filed 5/23/06, effective 6/23/06)

WAC 390-17-030   Sample ballots and slate cards.   (1) Intent. The commission finds that, under certain conditions, expenditures for slate cards and other candidate listings fall within the scope of RCW 42.17.640 (((14)(a))) (15) and are, therefore, exempt from contribution limits and eligible for payment with a bona fide political party's exempt funds. Slate cards and other candidate listings remain reportable under chapter 42.17 RCW and subject to the political advertising provisions of the law.

     The purpose of this exemption from the contribution limits is to allow political parties and other sponsors to tell the general public which candidates they support. The exemption is not intended as a device to circumvent the contribution limits and full reporting requirements by undertaking any degree of significant campaigning on behalf of candidates.

     (2) For purposes of RCW 42.17.020(21) and 42.17.640 (((14)(a))) (15), "sample ballots" means slate cards, or other candidate listings, whether written or oral, that satisfy the qualifying criteria specified in subsection (10) of this section.

     (3) Sample ballots constitute political advertising for a slate or list of candidates and must be properly identified and otherwise in compliance with the provisions of RCW 42.17.510 through 42.17.550.

     (4)(a) A bona fide political party may use contributions it receives pursuant to RCW 42.17.640(((14))) (15) to produce and distribute sample ballots.

     (b) Expenditures for sample ballots do not count against a bona fide political party's contribution limit to the candidates listed on the sample ballot. Further, when reporting sample ballot expenditures, a bona fide political party is not required to attribute a portion of the expenditure to each of the candidates listed on the sample ballot, but the names of the candidates must be reported along with the other information required by chapter 42.17 RCW and chapter 390-17 WAC.

     (5) Any person, as defined by RCW 42.17.020, who makes an expenditure for sample ballots has made an expenditure that does not count against that person's contribution limit to the candidates listed.

     (6) An in-state political committee, when disclosing expenditures for sample ballots as part of its C-4 report, is not required to attribute a portion of the expenditure to the candidates listed on the sample ballot, but the names of the candidates and their respective party affiliations must be reported along with other information required by chapter 42.17 RCW and chapter 390-17 WAC.

     (7) An out-of-state committee, when disclosing expenditures for sample ballots on a C-5 report, is not required to allocate a portion of the expenditure to the candidates listed on the sample ballot, but must report that an expenditure for sample ballots was made, the name and address of the person to whom the expenditure was made, the full amount of the expenditure, and the name, office sought and party affiliation of each candidate listed on the sample ballot. The report is due no later than the ((20th)) 10th day of the month following the month in which the expenditure was made.

     (8) If a lobbyist or lobbyist employer makes expenditures for sample ballots, those expenditures are required to be reported in detail on the lobbyist's monthly L-2 report. Itemization of these expenditures must include the names and respective party affiliations of the candidates listed on the sample ballot, but no portion of the expenditure need be allocated to individual candidates listed on the sample ballot.

     (9) The candidates listed on a sample ballot are not required to report any portion of the expenditure as an in-kind contribution to their campaigns.

     (10) Qualifying criteria for sample ballots, slate cards and other candidate listings. In order not to count against a person's contribution limit to the candidates listed on a sample ballot and, in the case of a bona fide political party, in order to be eligible for payment with contributions received pursuant to RCW 42.17.640(((14))) (15), a sample ballot must satisfy all of the criteria in (a) through (d) of this subsection.

     (a) The sample ballot must list the names of at least three candidates for election to public office in Washington state and be distributed in a geographical area where voters are eligible to vote for at least three candidates listed. The candidate listing may include any combination of three or more candidates, whether the candidates are seeking federal, state or local office in Washington.

     (b) The sample ballot must not be distributed through public political advertising; for example, through broadcast media, newspapers, magazines, billboards or the like. The sample ballot may be distributed through direct mail, telephone, electronic mail, Web sites, electronic bulletin boards, electronic billboards or personal delivery by volunteers.

     (c) The content of a sample ballot is limited to:

     • The identification of each candidate (pictures may be used);

     • The office or position currently held;

     • The office sought;

     • Party affiliation; and

     • Information about voting hours and locations.

     Therefore, the sample ballot must exclude any additional biographical data on candidates and their positions on issues as well as statements about the sponsor's philosophy, goals or accomplishments. The list must also exclude any statements, check marks or other indications showing support of or opposition to ballot propositions.

     (d) The sample ballot is a stand-alone political advertisement. It must not be a portion of a more comprehensive message or combined in the same mailing or packet with any other information, including get-out-the-vote material, candidate brochures, or statements about the sponsor's philosophy, goals or accomplishments. On Web sites, electronic bulletin boards or electronic billboards, the sample ballot must be a separate document.

[Statutory Authority: RCW 42.17.370 and 42.17.562. 06-11-132, § 390-17-030, filed 5/23/06, effective 6/23/06. Statutory Authority: RCW 42.17.370(1). 04-12-056, § 390-17-030, filed 5/28/04, effective 6/28/04; 02-12-007, § 390-17-030, filed 5/23/02, effective 6/23/02; 99-12-066, § 390-17-030, filed 5/27/99, effective 6/27/99; 96-05-001, § 390-17-030, filed 2/7/96, effective 3/9/96. Statutory Authority: RCW 42.17.370. 93-16-064, § 390-17-030, filed 7/30/93, effective 8/30/93.]

     (b) Contributions made to a caucus political committee, to a candidate or candidate's authorized committee which are earmarked for voter registration, absentee ballot information, get-out-the-vote campaigns, sample ballots are presumed to be for the purpose of promoting individual candidates and are subject to the contribution limits in RCW 42.17.640.

     (c) Contributions made to a caucus political committee, to a candidate or candidate's authorized committee which are earmarked for internal organization expenditures or fund-raising are presumed to be with direct association with individual candidates and are subject to the contribution limits in RCW 42.17.640.

     (2) "Exempt contributions account" is the separate bank account into which only exempt contributions are deposited and out of which only expenditures for exempt activities shall be made.

     (3) "Exempt activities" are those activities referenced in RCW 42.17.640(((14))) as further clarified by subsections (4), (5), (6), and (7) of this section. Only exempt activities are eligible for payment with exempt contributions.

     (4)(a) Except as permitted by WAC 390-17-030, Sample ballots and slate cards, activities referenced in RCW 42.17.640 (((14)(a))) that promote or constitute political advertising for one or more clearly identified candidates do not qualify as exempt activities.

     (b) A candidate is deemed to be clearly identified if the name of the candidate is used, a photograph or likeness of the candidate appears, or the identity of the candidate is apparent by unambiguous reference.

     (5) Activities referenced in RCW 42.17.640 (((14)(a))) that do not promote, or constitute political advertising for, one or more clearly identified candidates qualify as exempt activities. For example, get-out-the-vote telephone bank activity that only encourages persons called to "vote republican" or "vote democratic" in the upcoming election may be paid for with exempt contributions regardless of the number of candidates who are benefited by this message.

     (6)(a) "Internal organization expenditures" referenced in RCW 42.17.640 (((14)(b))) are expenditures for organization purposes, including legal and accounting services, rental and purchase of equipment and office space, utilities and telephones, postage and printing of newsletters for the organization's members or contributors or staff when engaged in organizational activities such as those previously listed, all without direct association with individual candidates.

     (b) "Fund-raising expenditures" referenced in RCW 42.17.640 (((14)(b))) are expenditures for fund-raising purposes, including facilities for fund-raisers, consumables furnished at the event and the cost of holding social events and party conventions, all without direct association with individual candidates.

     (c) If expenditures made pursuant to subsections (a) and (b) above are made in direct association with individual candidates, they shall not be paid with exempt contributions.

     (7) For purposes of RCW 42.17.640 (((14)(a))) and this section, activities that oppose one or more clearly identified candidates are presumed to promote the opponent(s) of the candidate(s) opposed.

[Statutory Authority: RCW 42.17.370 and 42.17.562. 06-11-132, § 390-17-060, filed 5/23/06, effective 6/23/06. Statutory Authority: RCW 42.17.370(1). 02-12-007, § 390-17-060, filed 5/23/02, effective 6/23/02; 02-03-018, § 390-17-060, filed 1/4/02, effective 2/4/02; 96-05-001, § 390-17-060, filed 2/7/96, effective 3/9/96. Statutory Authority: RCW 42.17.370. 93-24-003, § 390-17-060, filed 11/18/93, effective 12/19/93.]

     (2)(a) Separate campaign disclosure reports shall be completed and filed for an exempt contributions account.

     (b) Political committees maintaining an exempt contributions account shall make known the existence of the account by filing a statement of organization for the account pursuant to RCW 42.17.040.

     (c) Political committees maintaining an exempt contributions account shall be subject to the provisions of chapter 42.17 RCW and file the disclosure reports required by this chapter for the account pursuant to RCW 42.17.080.

     (3) Contributors shall not use a single written instrument to make simultaneous contributions to an exempt contributions account and any other committee account; separate written instruments must be used to make contributions to an exempt contributions account.

[Statutory Authority: RCW 42.17.370(1). 96-05-001, § 390-17-065, filed 2/7/96, effective 3/9/96. Statutory Authority: RCW 42.17.370. 93-24-003, § 390-17-065, filed 11/18/93, effective 12/19/93.]

     (2) An undesignated contribution made prior to the date of a primary election shall be attributed to the contributor's limit for the primary election. Undesignated contributions made after the date of the primary shall be attributed to the contributor's limit for the general election.

     (3) Any portion of an undesignated contribution made prior to the date of the primary which exceeds the contributor's primary election contribution limit shall be attributed to the contributor's limit for the general election.

     (4) Contributions for the primary election shall be accounted for separately from those for the general election, such that campaign records reflect one aggregate contribution total for each contributor giving in the primary election as well as one aggregate contribution total for each contributor giving in the general election.

     (5) General election contributions shall not be spent for the primary election if to do so would cause the contributor of the general election contribution to exceed that contributor's contribution limit for the primary election.

     (6) If a candidate loses in the primary election, or otherwise is not a candidate in the general election, all contributions attributed to the primary election remaining after repayment of outstanding campaign obligations shall be considered surplus funds, disposal of which is governed by RCW 42.17.095. If a candidate loses in the primary election, or otherwise is not a candidate in the general election, all contributions attributed to the general election shall be returned to the contributors of the funds in an amount equal to the contributor's general election aggregate total. If a portion of a contributor's general election contribution was spent on the primary election consistent with subsection (5) of this section, the amount returned to the contributor may be reduced by the amount of the contribution spent on the primary election.

[Statutory Authority: RCW 42.17.390. 94-07-141, § 390-17-300, filed 3/23/94, effective 4/23/94. Statutory Authority: RCW 42.17.370. 93-16-064, § 390-17-300, filed 7/30/93, effective 8/30/93.]

     (2) For purposes of the contribution limit in RCW 42.17.640, any contribution made up to thirty days after the primary election pursuant to RCW 42.17.640(((1))) is aggregated with contributions made on or before the date of the primary from the same contributor and any person with whom that contributor shares a limit under RCW 42.17.660 and WAC 390-16-309 ((and 390-16-311)).

     (3) The day following the primary election is considered the first day of the thirty-day period during which contributions may be made to state office candidates who lose in the primary election and who have outstanding primary debts.

     (4) For purposes of RCW 42.17.640(((1))), "outstanding primary debts," "outstanding debts" and "debts outstanding" all mean:

     (a) Unpaid primary-election related debts incurred on or before the date of the primary by the authorized committee of a candidate who lost the primary election for a state office; and

     (b) Reasonable costs associated with activities of the losing candidate's authorized committee necessary to retire the primary-related debts it incurred on or before the date of the primary. Examples of such reasonable costs include:

     (i) Necessary administrative expenses (office space rental, staff wages, taxes, supplies, telephone and computer costs, postage, and the like) for activities actually and directly related to retiring the committee's debt; and

     (ii) Necessary expenses actually and directly related to the fund-raising activities undertaken to retire the debt, as long as all persons solicited for contributions are notified that the contributions are subject to that contributor's primary election limit for that losing candidate.

     (5) Nothing in this section is to be construed as authorizing contributors to make, or state office candidates who lose the primary to receive, contributions that are used for a purpose not specifically authorized by RCW 42.17.640(((1))), including use for some future election or as surplus funds.

     (6) All contributions received in excess of the sum needed to satisfy outstanding primary debts shall be returned to the original contributors in an amount not to exceed the amount contributed in accordance with the first in, first out accounting principle wherein the most recent contribution received is the first to be returned until all excess funds are returned to contributors.

[Statutory Authority: RCW 42.17.370 and 42.17.690. 01-22-050, § 390-17-302, filed 10/31/01, effective 1/1/02.]

[Statutory Authority: RCW 42.17.370(1). 02-03-018, § 390-17-315, filed 1/4/02, effective 2/4/02; 96-05-001, § 390-17-315, filed 2/7/96, effective 3/9/96. Statutory Authority: RCW 42.17.390. 94-07-141, § 390-17-315, filed 3/23/94, effective 4/23/94. Statutory Authority: RCW 42.17.370. 93-16-064, § 390-17-315, filed 7/30/93, effective 8/30/93.]

[Statutory Authority: RCW 42.17.370(1). 96-05-001, § 390-17-320, filed 2/7/96, effective 3/9/96. Statutory Authority: RCW 42.17.390. 94-11-016, § 390-17-320, filed 5/5/94, effective 6/5/94.]

     (a) Office staffing;

     (b) Doorbelling or leaflet drops;

     (c) Mail handling (folding, stuffing, sorting and postal preparation);

     (d) Political or fund raising event staffing;

     (e) Telephone bank activity (conducting voter identification, surveys or polling, and get-out-the-vote campaigns);

     (f) Construction and placement of yard signs, hand-held signs or in-door signs;

     (g) Acting as a driver for candidate or candidate or committee staff;

     (h) Scheduling of campaign appointments and events;

     (i) Transporting voters to polling places on election day;

     (j) Except as provided in subsection (2), preparing campaign disclosure reports required by chapter 42.17 RCW and otherwise helping to ensure compliance with state election or public disclosure laws;

     (k) Campaign consulting and management services, polling and survey design, public relations and advertising, or fund-raising performed by any individual, so long as the individual does not ordinarily charge a fee or receive compensation for providing the service; and

     (l) All similar activities as determined by the commission.

     (2) An attorney or accountant may donate his or her professional services to a candidate, a candidate's authorized committee, a political party or a caucus political committee, without making a contribution in accordance with RCW 42.17.020 (((14))) (15)(b)(viii), if the attorney or accountant is:

     (a) Employed and his or her employer is paying for the services rendered;

     (b) Self-employed; or

     (c) Performing services for which no compensation is paid by any person. However, neither RCW 42.17.020 (((14))) (15)(b)(viii) nor this section authorizes the services of an attorney or an accountant to be provided to a political committee without a contribution ensuing, unless the political committee is a candidate's authorized committee, political party or caucus political committee and the conditions of RCW 42.17.020 (((14))) (15)(b)(viii) and (a), (b) or (c) of this subsection are satisfied, or unless the political committee pays the fair market value of the services rendered.

[Statutory Authority: RCW 42.17.370(1). 98-12-037, § 390-17-405, filed 5/28/98, effective 6/28/98. Statutory Authority: RCW 42.17.390. 94-11-017, § 390-17-405, filed 5/5/94, effective 6/5/94.]

OTS-9133.1

AMENDATORY SECTION(Amending WSR 05-04-039, filed 1/27/05, effective 2/27/05)

WAC 390-17-310   Doing business in Washington.   A corporation or business entity is "doing business in Washington state" for purposes of RCW 42.17.640(((11))) if it conducts continuous or substantial activities in Washington state of such character as to give rise to a legal obligation.

     In determining whether a corporation or business entity is doing business in Washington state, the commission will take into consideration the following nonexclusive list of indicators:

     • Purposefully availing itself of the privilege of conducting business in the state by invoking both benefits and protections of state law.

     • Appointing an agent for service of process in Washington state.

     • Registering as a corporation in Washington.

     • Operating business locations in Washington.

     • Hiring employees to work in Washington.

     • Purchasing or selling goods or services in Washington.

     • Operating an interactive internet web site for the purpose of conducting business.

[Statutory Authority: RCW 42.17.370. 05-04-039, § 390-17-310, filed 1/27/05, effective 2/27/05. Statutory Authority: RCW 42.17.370(1). 96-05-001, § 390-17-310, filed 2/7/96, effective 3/9/96. Statutory Authority: RCW 42.17.370. 93-16-064, § 390-17-310, filed 7/30/93, effective 8/30/93.]

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