Citizens for Spokane Schools PAC: Alleged violation of RCW 42.17A.235, .240 & .445 for failure to timely report contributions and expenditures and personal use of contributions (EY '18-'22, AUG '23)

Case

#141989

Respondent

Citizens for Spokane Schools PAC

Complainant

Glen Morgan

Description

The complaint alleged that Citizens for Spokane Schools PAC violated RCW 42.17A.235 and .240 by failing to timely report contributions and expenditures and RCW 42.17A.445 for possible personal use of contributions based on reports that include discrepancies in balances carried from one report to the next report.

The PDC dismissed this matter in accordance with RCW 42.17A.755(1) and will not be conducting a more formal investigation into these allegations or taking further enforcement action in this matter.

However, Citizens for Spokane Schools PAC completed a Statement of Understanding (SOU) and paid a $300 civil penalty in accordance with WAC 390-37-143 (Brief Enforcement Penalty Schedule), acknowledging violations of RCW 42.17A.235 and 42.17A.240 by failing to timely report contributions totaling $2,297.93 on PDC Form C-3 (Cash Receipts Monetary Contributions) and contributions totaling $71,441.33 and expenditures totaling $75,752.08 on PDC Form C-4 (Summary, Full Report Receipts and Expenditures).

Payment of the $300 penalty resolves the allegations listed in the complaint and the additional areas investigated by PDC staff. Relevant findings include:

• Citizens for Spokane Schools PAC stated they are a group of parents and volunteers formed to support the passage of Spokane Public Schools (District 81) levies and bonds. The Committee stated they are supported by Spokane citizens, teachers, administrators, businesses, parents, and local organizations.
• The 2018 records for Citizens for Spokane Schools PAC were incomplete and unreported due to the illness and subsequent death of the PAC treasurer, Ellen Robey, on May 12, 2020. Even though Ms. Robey failed to file several C-4 reports in a timely manner during her illness, the campaign timely filed all but four C-3 reports during the preceding five years.
• Once the campaign records were obtained from the estate of Ms. Robey, the Committee located a new treasurer (Barbara Marney) who assumed her duties in November 2020. Ms. Marney completed the 2018 reports and brought the 2021 records up to date by January 2021.
• The PAC filed four C-3 Reports between 58 and 364 days late. The C-3 reports totaled $2,297.93 and were due between 12/10/2019 and 8/10/2021.
• The Committee filed 15 C-4 Reports between 7 and 549 days late. The C-4 reports totaled $71,441.33 in contributions and $75,752.08 in expenditures and were due between 6/10/2019 and 3/10/2022.
• Of the $71,441.33 in total late-filed C-4 Report contributions, all but $2,297.93 were timely reported on C-3 Reports.
• Of the $75,752.08 in total late-filed expenditures, all but $914.82 were filed 7 days late.
• The largest late-filed C-4 Report was filed 7 days late and included $39,410 in contributions and $74,837.26 in expenditures. The contributions were timely reported on C-3 Reports.
• The Committee denied that the PAC absconded with $27.10 over the course of its formation, stating that this amount was attributed to a simple bookkeeping oversight while reconciling bank fees and fee refunds.
• The alleged unexplained starting balance of $1,896.79 on the first C-4 report for the 2024 campaign, covering the period 4/1/2021 to 4/30/2021, was a carry forward to the 2024 campaign from the 2021 campaign. It is identified on the final 2021 C-4 Report, covering the period 3/1/2021 to 3/31/2021, as an expenditure on 3/31/2021 to the 2024 campaign, described as “carry forward cash to 2024 election.” The report was timely filed on 4/5/2021.

Disposition

Resolved through Statement of Understanding

Date Opened

September 07, 2023

Areas of Law

RCW 42.17A.235, RCW 42.17A.240, RCW 42.17A.435

Documents

• 141989 Response to Complaint.pdf
• 141989 Initial Hearing Results - Respondent.pdf
• 141989 Initial Hearing Results - Complainant.pdf
• 141989 Citizens for Spokane Schools PAC Complaint.pdf
• 141989 Combined Case Closure Letter.pdf
• 141989 - Signed SOU Citizens for Spokane Schools 7.10.24.pdf

Penalties