Washington State Republican Party: Alleged violation of RCW 42.17A.320 for failure to include sponsor ID; .235 & .240 for late & inaccurate reports of contributions & expenditures; & .405 for a prohibited contribution using exempt funds (OCT23, EY23)

Case

#146593

Respondent

Washington State Republican Party

Complainant

Stacey Valenzuela, Ron Critchfield, Jacki Bricker, Heidi Schauble

Description

This matter was heard by the Washington State Public Disclosure Commission (PDC, Commission) on October 24, 2024, by in-person, telephonic, and online streaming access. The hearing was held in accordance with Chapters 34.05 and 42.17A RCW, and Chapter 390-37 WAC.

II. CONCLUSIONS OF LAW

1. The Commission has jurisdiction over this proceeding pursuant to Chapter 42.17A. RCW, the State campaign finance and disclosure law; Chapter 34.05 RCW, the Administrative Procedure Act; and Title 390 WAC.

2. The text message WSRP sent to voters was political advertising, as defined in RCW 42.17A.005(40). It asked voters to “REJECT Han Tran Northshore school board candidate who calls for Israel’s destruction and elimination of Jews! VOTE by 11/7, protect kids.” The message directly opposed a candidate and included a statement encouraging recipients to “VOTE by 11/7.” The political advertisements were sent without including the sponsor’s name and address in violation of RCW 42.17A.320(1).

3. WSRP did not timely disclose its expenditures on its Summary Full Campaign Contribution and Expenditure report (C-4 reports). Under the full reporting option, until five months before the general election, C-4 reports are required monthly when contributions or expenditures exceed $200 since the last report and on the twenty-first day and seventh day immediately preceding the date on which the election is held. On January 26, 2024, WSRP amended its C-4 report from October 17-30, 2023, and disclosed a $159.22 debt owed to Prompt.io for the GOTV text messages. The disclosure was disclosed 87 days late and after the 2023 election.

4. WSRP made a $100,000 contribution to Let’s Go Washington in December, 2023. The expenditure was made from its exempt funds and was not earmarked for exempt activities. The expenditure generally supported Let’s Go Washington’s initiatives and was not limited as required by RCW 42.17A.405(15) and WAC 390-17-060 to only allowable expenditures. Appropriate uses of exempt funds are listed in RCW 42.17A.405(15)(a-c) and include funds earmarked for voter registration, absentee ballot information, and precinct caucuses, all without promotion of or political advertising for individual candidates. They also include internal organizational expenses and independent or electioneering communications. WSRP’s use of exempt funds for the general use of a ballot measure committee without earmarking for an allowable expense did not meet these criteria and violated RCW 42.17A.405 and WAC 390-17-060.

5. WSRP submitted a C-3 report disclosing anonymous contributions totaling $106,500 that were deposited on September 17, 2024. RCW 42.17.A.220(4) states: “[A]ccumulated unidentified contributions…in excess of one percent of the total accumulated contributions received in the current calendar year, or three hundred dollars, whichever is more, may not be deposited, used, or expended, but shall be returned to the donor if his or her identity can be ascertained.” The aggregate funds deposited by WSRP were more than one percent of the total accumulated contributions in that calendar year and were not returned to the donors.

III. ORDER

This Order will be the Final Order. After consideration of the mitigating and aggravating factors, arguments of counsel, the exhibits and witness testimony, the Findings of Fact, and the Conclusions of Law, the Commission unanimously finds four violations. Respondent failed to 1) include sponsor identification on political advertising in violation of RCW 42.17A.320; 2) failed to timely disclose expenditures on C-4 reports in violation of RCW 42.17A. 235 and .240; 3) did not earmark exempt funds for allowable expenditures in violation of RCW 42.17A.405 and WAC 390-17-060; and 4) did not timely and accurately disclose the source of monetary contributions on C-3 reports and deposited overlimit anonymous contributions in violation of RCW 42.17A.235, RCW 42.17A.240 and RCW 42.17A.220.

An aggregate civil penalty is imposed of $5,000 for all the violations combined, with $1,000 suspended on the following conditions:

1. a. The non-suspended portion ($4,000) of the $5,000 total civil penalty for the four violations is paid by the Respondent within 30 days of the date of this Final Order.
b. The Respondent transfers the $100,000 improperly expended from the exempt account back to the exempt account within 30 days of the date of this final order.
c. The Respondent remains in full compliance with all PDC reporting requirements and is not found to have committed any further violations of Chapter 42.17A RCW or Title 390 WAC within four years of the date of this Final Order. The suspended penalty shall not be assessed based solely upon any remediable violation, minor violation, or error classified by the Commission as appropriate to address by a technical correction.

2. If the Respondent fails to meet the conditions in Section III(1) of this order within 30 days of the date of this order, the suspended portion of the penalty shall immediately become due and the matter may be sent to collection or brought to Superior Court as allowed by law without further action by the Commission.

Disposition

Violation Found by Commission

Date Opened

December 29, 2023

Areas of Law

RCW 42.17A.220, RCW 42.17A.240, RCW 42.17A.270, RCW 42.17A.320, RCW 42.17A.405, WAC 390-17-060