Commission meeting highlights: August 2024

Commission issues thousands in fines for repeat violators 

The Public Disclosure Commission fined two elected officials who failed to file their annual financial affairs statements for 2023 – both of whom also had previous missing reports.  

In the first case, the Commission fined Dustin Kraft, a fire commissioner for Clallam County Fire Protection District 01, $2,000 with $500 suspended provided he file the missing report, pay the fine and meet other conditions set by the Commission.  

Kraft did not file his 2023 financial affairs statement. The Commission also considered two previous violations, for not filing statements due in 2021 and 2022, which have $2,500 in unpaid fines. 

Sitting elected and some appointed officials in Washington are required to file annual personal financial affairs statements, also known as F-1 reports, each year by April 15 for the previous calendar year. The reports are designed to disclose potential conflicts of interest.  

In the second case, the Commission fined Christopher Moore, a city council member in the City of Orting, $2,000 with $500 suspended provided he file the missing report, pay the fine and meet other conditions set by the Commission.  

Moore did not file his 2023 financial affairs statement. He previously did not file the reports due for 2021 and 2022. He has $1,250 in unpaid fines from the two previous cases. 

Brief hearings are scheduled for Aug. 29 for current elected officials who failed to file, or filed late, their annual financial affairs statement for 2023. PDC staff sent hearing notices to 99 filers. About 30 percent of those filers have since filed their reports, signed statements of understanding acknowledging violations and paid $100 fines.  

Should the PDC make some trainings mandatory? Commission weighs pros and cons 

The Commission denied a petition from a member of the public to make some PDC campaign trainings mandatory, but had a lengthy discussion about efforts to improve and incentivize filer education.  

Petitioner Conner Edwards submitted a rulemaking petition under the Administrative Procedure Act (APA) asking the PDC to adopt a rule requiring campaign treasurers to certify completion of a PDC compliance training class or video before filing their campaign’s registration, using existing PDC trainings. 

The APA requires that the Commission either deny a petition or initiate a formal rulemaking process within 60 days.  

PDC General Counsel Sean Flynn presented the petition, and noted that in 2019 the state Legislature considered this very question. The bill was later converted into a budget proviso that provided funding to the PDC to develop training that would not be mandatory. Staff recommended denying the petition but continuing to consider training improvements as part of the agency’s strategic planning process.  

PDC staff currently conduct at least two free, virtual trainings per month, with offerings including basic training on staying in compliance with disclosure laws and filing requirements, a demonstration of the agency’s ORCA (Online Reporting of Campaign Activity) system, trainings for lobbyists and instructions on filling out the annual financial affairs statements, or F-1 reports.  

The agency also has numerous educational videos on its YouTube channel, conducts periodic in-person trainings for groups as requested, and posts step-by-step instructions online when filing systems are updated.  

Commissioners discussed the value of making training mandatory, and the implication that the agency would then need to create a new enforcement process. The Commission already plans to review mitigating and aggravating factors considered in enforcement cases, and discussed including training in that discussion.  

Flynn told Commissioners the agency has the authority to use training completion as a mitigating or aggravating factor in enforcement cases, but may need a statutory change – requiring legislation – to create a mandatory training.  

Staff report on project to send more warnings to filers for mandatory expense reports 

PDC staff reported on their efforts to improve compliance for mandatory pre- and post-election expenditure reports.  

In March, the Commission directed staff to create a system to identify filers who owed mandatory 21- and 7-day pre-election and post election reports and notify them before and after reports were due, then post the names of those with missing reports online.  

Staff originally planned to have the program in place by the November general election, but were able to deploy it for the primary election earlier this month.  

Interim Customer Service and Outreach Director Tabitha Townsend reported that about two thirds of candidates who received the notifications later filed their reports. Of the remaining 25 filers, 23 filed neither the 21- or 7-day reports, but only two of those 23 won their primary.  

Enforcement report 

The PDC had 281 active enforcement cases as of Aug. 14, with 100 cases in the initial review phase, which can take up to 90 days, per the statute, and 175 under formal investigation. Another six were scheduled for brief hearings.  

Between July 18 and Aug. 14, 32 cases were closed, including two closed for lack of evidence, one closed with a reminder, one technical correction, 27 written warnings and one statement of understanding. Of the 32 cases closed, one was a statewide candidate, one was a legislative candidate, 26 were local candidates and three were political committees.  

Staff highlighted one case that was resolved just after Aug. 14, so it wasn’t included in the numbers above.  

In that case, the complainant reported a grassroots lobbying text message that included a link to a website that had no sponsor identification. Grassroots lobbying campaigns are required to include sponsor ID.  

Grassroots lobbying, also known as indirect lobbying, is an attempt to influence legislation that focusses on influencing voters, rather than directly influencing the Legislature. 

PDC staff issued a subpoena to the vendor that created the website, based in Texas, and learned the identity of the respondent. The group, through its contract lobbyist, submitted amended reports including about $22,000 in originally unreported grassroots lobbying expenditures. The group signed a statement of understanding admitting the violation and agreed to pay a fine of $300.  

Staff acknowledged during the Aug. 22 meeting that the fine appeared low, but that it follows the PDC’s current fee schedule for compliance matters. The Commission plans to review its compliance fee schedule soon.  

PDC compliance case volume continues to be high compared to previous years. Deputy Director Kim Bradford gave a brief presentation comparing case volume in fiscal year 24, which ended June 30, with the previous fiscal year.  

There were 527 total cases closed in fiscal year 2023, including 201 complaint-generated cases and 326 staff-generated cases. In fiscal year 2024 however, there were 911 total cases, including 657 complaint-based cases and 254 staff generated cases.  

Of the complaint generated cases, 72 percent in 2024 were resolved with warnings, compared to 49 percent the previous year. The PDC received 1,570 complaints in 2024, compared to 365 the previous year.  

PDC staff are also continuing to work to resolve an investigation into PAC Let’s Go Washington. 

Last month, the Commission voted to deny a request to refer a complaint against Let’s Go Washington (sponsored by Brian Heywood), a continuing political committee supporting a number of ballot initiatives, to the state Attorney General’s Office. 

Watch the full meeting here.