16-21-035

WSR 16-21-035

PROPOSED RULES

PUBLIC DISCLOSURE COMMISSION

[Filed October 11, 2016, 12:00 p.m.]

Original Notice.

Preproposal statement of inquiry was filed as WSR 16-17-030.

Title of Rule and Other Identifying Information: WAC 390-16-234 Transfers of surplus and nonsurplus candidate funds.

Hearing Location(s): Office of the Public Disclosure Commission (PDC), 711 Capitol Way, Room 206, Olympia, WA 98504, on Thursday, December 8, 2016, at 9:30 a.m.

Date of Intended Adoption: December 8, 2016.

Submit Written Comments to: Evelyn Fielding-Lopez, P.O. Box 40908, Olympia, WA 98504, e-mail [e-mail], fax [phone], by November 30, 2016.

Assistance for Persons with Disabilities: Contact Jana Greer by e-mail [e-mail] or [phone].

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: WAC 390-16-234 allows a candidate to transfer campaign funds to another candidate for the purpose of making joint campaign expenditures. The proposed amendment sets a deadline for transferring funds: Two business days from the date of the expenditure. The proposed amendment prohibits a transfer that exceeds the candidate's proportionate share of the joint expenditure and requires any funds not used for the joint expenditure to be returned within one business day of the expenditure.

Reasons Supporting Proposal: PDC proposes these amendments to accommodate candidates who are making joint campaign expenditures under circumstances that do not allow each candidate to directly pay their proportionate share. The proposal establishes deadlines so that transfers are allowed under restricted parameters, so as to prevent loans made with campaign funds or other illegal contributions, in accordance with RCW 42.17A.430(8).

Statutory Authority for Adoption: RCW 42.17A.110.

Statute Being Implemented: RCW 42.17A.240 and 42.17A.430.

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 proposed amendments allow a routine campaign practice to continue, but establish parameters so as to prevent illegal campaign contributions. No fiscal impact is expected to result from these amendments.

Name of Proponent: PDC, governmental.

Name of Agency Personnel Responsible for Drafting: Lori Anderson, 711 Capitol Way, Room 206, Olympia, WA 98504, [phone]; Implementation and Enforcement: Evelyn Lopez, 711 Capitol Way, Room 206, Olympia, WA 98504, [phone].

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 business. PDC is not subject to the requirement to prepare a school district fiscal impact statement, per RCW 28A.305.135 and 34.05.320.

A cost-benefit analysis is not required under RCW 34.05.328. PDC is not an agency listed in subsection (5)(1)(i) of RCW 34.05.328. Further, PDC does not voluntarily make that section applicable to the adoption of these rules pursuant to subjection [subsection] (5)(a)(ii), and to date, the joint administrative rules review committee has not made the section applicable to the adoption of these rules.

October 4, 2016

Lori Anderson

Communications and

Training Officer

AMENDATORY SECTION (Amending WSR 12-03-002, filed 1/4/12, effective 2/4/12)

WAC 390-16-234 Transfers of ((surplus and nonsurplus)) candidate funds.

(1) ((One candidate may reimburse another for the former's proportionate share of documented and properly reported joint campaign expenses without the transaction constituting a "transfer" within the meaning of RCW 42.17A.430.)) Candidates are encouraged to directly pay to a vendor their proportionate share of joint campaign expenses. When separate, direct payments are not possible, one candidate may transfer campaign funds to another candidate without violating RCW 42.17A.430(8): Provided, That:

(a) The transferred funds are used exclusively for the joint expenditure;

(b) The amount may not exceed the prorated share attributable to the candidate who transfers the funds;

(c) The funds are transferred within two business days of the expenditure;

(d) Any transferred funds not used for the joint expenditure are returned no later than one business day after the expenditure is made; and

(e) The purpose of the transferred funds is timely disclosed as would be required for a direct expenditure.

(2) Candidate surplus funds may be transferred without limit to a bona fide political party or to a caucus political committee.

(3) Except as provided in subsections (1) and (2) of this section, no candidate or candidate's authorized committee may transfer surplus or nonsurplus funds to any other candidate or political committee.