Original Notice.

     Preproposal statement of inquiry was filed as WSR 10-12-110.

     Title of Rule and Other Identifying Information: Amend WAC 390-16-038 Definition -- Aggregate, 390-16-309 Identification of affiliated entities, and 390-17-302 Contributions after the primary election.

     Hearing Location(s): Commission Hearing Room, 711 Capitol Way, Room 206, Olympia, WA 98504, on September 23, 2010, at 9:30 a.m.

     Date of Intended Adoption: September 23, 2010.

     Submit Written Comments to: Lori Anderson, Public Disclosure Commission, P.O. Box 40908, Olympia, WA 98504-0908, e-mail lori.anderson@pdc.wa.gov, fax (360) 753-1112, by September 21, 2010.

     Assistance for Persons with Disabilities: Contact Jana Greer by phone (360) 586-0544.

     Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: To implement SB 6344 (chapter 206, Laws of 2010), including ensuring that contribution limits are consistently applied to all affected candidates and giving guidance to candidates who, through recent legislative amendments, are now subject to contribution limits.

     Reasons Supporting Proposal: To provide guidance and clarification to candidates affected by 2010 legislation.

     Statutory Authority for Adoption: RCW 42.17.370(1).

     Statute Being Implemented: Chapter 206, Laws of 2010.

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

     Agency Comments or Recommendations, if any, as to Statutory Language, Implementation, Enforcement, and Fiscal Matters: The rule amendments are designed to clarify the contribution limits imposed by SB 6344 (chapter 206, Laws of 2010).

     Name of Proponent: Public disclosure commission (PDC), governmental.

     Name of Agency Personnel Responsible for Drafting and Implementation: Lori Anderson, 711 Capitol Way, Room 206, Olympia, WA 98504, (360) 664-2737; and Enforcement: Phil Stutzman, 711 Capitol Way, Room 206, Olympia, WA 98504, (360) 664-8853.

     No small business economic impact statement has been prepared under chapter 19.85 RCW. The implementation of these rule amendments has minimal impact on small businesses.

     A cost-benefit analysis is not required under RCW 34.05.328. The PDC is not an agency listed in subsection (5)(a)(i) of section 201. Further, the PDC does not voluntarily make section 201 applicable to the adoption of these rules pursuant to subsection (5)(a)(i) of section 201, and, to date, the joint administrative rules review committee has not made section 201 applicable to the adoption of these rules.

August 16, 2010

Lori Anderson

Communications and

Training Officer

OTS-3321.1

AMENDATORY SECTION(Amending WSR 02-03-018, filed 1/4/02, effective 2/4/02)

WAC 390-16-038   Definition -- Aggregate.   The term "aggregate" means, for purposes of:

     (1) A candidate for state or local office subject to contribution limits under RCW 42.17.640, the total amount of contributions received by the candidate, an agent of the candidate and any political committee affiliated with the candidate from the beginning of the election cycle;

     (2) A candidate for local office not subject to contribution limits under RCW 42.17.640 or judicial office, the total amount of contributions received by the candidate, an agent of the candidate and any political committee affiliated with the candidate from the beginning of the candidate's campaign;

     (3) A bona fide political party or caucus political committee, the total amount of contributions received by the committee from January 1 of the current calendar year;

     (4) A political committee, the total amount of contributions received by the committee from the date of organization;

     (5) A continuing political committee, the total amount of contributions received by the committee from January 1 of the current calendar year;

     (6) A contributor, the total amount of all contributions received from a person, and any person affiliated with the person, to any one candidate or political committee;

     (7) A person making independent expenditures with respect to a candidate and the reporting and disclosure provisions of RCW 42.17.100, (([42.17].180)) 42.17.180, (([42.17].510)) 42.17.510 and (([42.17].550)) 42.17.550, an independent expenditure made by a person in support of a candidate shall be added to any independent expenditure by the same person in opposition to one or more of the candidate's opponents; and, for purposes of a person making independent expenditures with respect to a ballot proposition, an independent expenditure made by a person in support of a ballot proposition shall be added to any independent expenditure by the same person in opposition to the ballot proposition or in support of an alternative ballot proposition;

     (8) The special reports required by RCW 42.17.105 and 42.17.175, the total amount of contributions received or expenditures made by a single person or entity during the special reporting period;

     (9) An employer of a registered lobbyist, the total amount of all contributions made to a political committee supporting or opposing a candidate for state office, or to a political committee supporting or opposing a statewide ballot proposition during the preceding calendar year;

     (10) The sponsor of a grass roots lobbying campaign, the total amount of contributions received since the beginning of the campaign and the total amount of expenditures made during the time frames specified in RCW 42.17.200(1);

     (11) RCW 42.17.245, the total amount of all time and demand deposits in each financial institution on December 31;

     (12) RCW 42.17.395(4), the total amount of monetary penalty that the commission may impose for multiple violations of the act.

[Statutory Authority: RCW 42.17.370(1). 02-03-018, § 390-16-038, filed 1/4/02, effective 2/4/02; 96-09-016, § 390-16-038, filed 4/8/96, effective 5/9/96. Statutory Authority: RCW 42.17.370. 93-22-002, § 390-16-038, filed 10/20/93, effective 11/20/93. Statutory Authority: RCW 42.17.370(1). 86-04-071 (Order 86-01), § 390-16-038, filed 2/5/86; Order 62, § 390-16-038, filed 8/26/75.]

OTS-3322.1

AMENDATORY SECTION(Amending WSR 94-11-016, filed 5/5/94, effective 6/5/94)

WAC 390-16-309   Identification of affiliated entities.   (1) Two or more entities are treated as a single person and share one contribution limit under RCW 42.17.640 and 42.17.645 if one of the entities is:

     (a) A corporation and the other is a subsidiary, branch or division of the corporation;

     (b) A national or international labor union, or state body of such national or international labor union, and the other is a local union or other subordinate organization of such national or international labor union or state body;

     (c) A trade association or state body of such trade association and the other is a branch or local unit of such trade association;

     (d) A national or state collective bargaining organization and the other is a branch or local unit of such national or state collective bargaining organization;

     (e) A national or international federation of labor unions, or a state federation of labor unions, and the other is a local body of such federation;

     (f) A membership organization and the other is a local unit or branch of such membership organization;

     (g) Any entity referenced in (a) through (f) above and a political committee established, financed, maintained or controlled by that entity.

     (2) For purposes of RCW 42.17.640 and 42.17.645, two entities shall not be treated as a single entity solely because one of the entities is a dues paying member of the other entity.

     (3) In addition to paragraph (1) above, two or more entities shall be treated as one entity and share a contribution limit under RCW 42.17.640 and 42.17.645 if one of the entities is established, financed, maintained or controlled by the other, as evidenced by any one of the following factors:

     (a) Whether one entity owns a controlling interest in the voting stock or securities of another entity; or

     (b) Whether one entity has authority or the ability to direct or participate, other than through a vote as a member, in the governance of another entity through provisions of constitution, bylaws, contract or other formal or informal procedure or has authority or the ability to hire, appoint, demote or otherwise control, other than through a vote as a member, the officers or other decision making employees or members of another entity; or

     (c) Whether (i) one entity has a common or overlapping membership with another which indicates either a formal or ongoing relationship between the two organizations or the creation of a successor entity and (ii) the entity has an active or significant role in the formation of the other entity and (iii) the entities have similar patterns of contributions or contributors which indicate a formal or ongoing relationship between the entities; or

     (d) Whether one entity provides, causes or arranges, funds, services or goods in a significant amount or on an ongoing basis, through direct or indirect means to the other entity, for less than full consideration. Full consideration includes the payment of membership dues.

[Statutory Authority: RCW 42.17.390. 94-11-016, § 390-16-309, filed 5/5/94, effective 6/5/94.]

OTS-3320.2

AMENDATORY SECTION(Amending WSR 07-07-005, filed 3/8/07, effective 4/8/07)

WAC 390-17-302   Contributions after the primary election.   (1) Pursuant to RCW 42.17.640 and 42.17.645, the date of the primary is the last day for making primary-related contributions unless a ((state office)) candidate subject to contribution limits loses in the primary, that candidate's authorized committee has insufficient funds to pay debts outstanding as of the date of the primary, and the contributions are used to satisfy this outstanding debt.

     (2) For purposes of the contribution limit in RCW 42.17.640 and 42.17.645, any contribution made up to thirty days after the primary election pursuant to RCW 42.17.640 and 42.17.645 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.

     (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 subject to contribution limits who lose in the primary election and who have outstanding primary debts.

     (4) For purposes of RCW 42.17.640 and 42.17.645, "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)) an office subject to contribution limits; 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 subject to contribution limits who lose the primary to receive, contributions that are used for a purpose not specifically authorized by RCW 42.17.640 or 42.17.645, 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. 07-07-005, § 390-17-302, filed 3/8/07, effective 4/8/07. Statutory Authority: RCW 42.17.370 and 42.17.690. 01-22-050, § 390-17-302, filed 10/31/01, effective 1/1/02.]

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