Hardy, Karen: Alleged Violation of RCW 42.17A.235, .265, .205, .220, 320, .255 for failure to timely and accurately disclose contributions, expenditures, books of account, committee registration, and sponsor ID. (APR 2018)

Case

#34595

Respondent

Karen Hardy

Complainant

Glen Morgan

Description

The Public Disclosure Commission (PDC) has completed its review of the complaint Glen Morgan filed on April 11, 2018. The complaint alleged that Karen Hardy (Respondent), a 2017 and 2018 candidate for State Senator for Legislative District 07, may have violated RCW 42.17A.445 for unauthorized use of campaign funds; RCW 42.17A.235 and .240 for failure to timely and accurately file Monetary Contribution reports (C-3 reports) and Summary Campaign Full Contribution and Expenditure reports (C-4 reports), disclosing contributions and expenditures undertaken by the Campaign, and to have both the candidate and treasurer certify the reports as correct, and to maintain documents and books of account for five years following the year in which the transaction occurred; RCW 42.17A.205 for failure to timely file Candidate Registrations within two weeks of becoming a candidate, and to accurately and completely disclose committee officers on the Candidate Registrations; RCW 42.17A.265 for failure to timely report last minute contributions of $1,000 or more within special reporting periods before elections; RCW 42.17A.220 and .425 for allowing undisclosed committee officers to deposit contributions and authorize expenditures on behalf of the campaign; RCW 42.17A.320 for failure to accurately and completely disclose sponsor identification on digital political advertising; and RCW 42.17A.700 for failure to timely file Personal Financial Affairs Statements (F-1 reports) disclosing financial activities for twelve calendar months prior to becoming a candidate, due within two weeks of becoming a candidate.

PDC staff reviewed the allegations; the applicable statutes, rules, and reporting requirements; the response provided by the Respondent; the applicable PDC reports filed by the Respondent; and queried the Respondent’s data in the PDC contribution and expenditure database, to determine whether the record supports a finding of one or more violations.

Based on our findings staff has determined that, in this instance, failure to timely and accurately register as a candidate, report financial affairs, report contribution and expenditure activity, and use of campaign funds to file PDC complaints, do not amount to violations that warrants further investigation.

Pursuant to WAC 390-37-060(1)(d), Karen Hardy will receive a formal written warning concerning failure to timely and accurately register as a candidate and report financial affairs; failure to timely, accurately and completely report contribution and expenditure activity; and personal use of campaign funds to pay for legal services for filing PDC complaints. The formal written warning will include staff’s expectation that Karen Hardy timely, accurately, and completely files all future required reports, and abides by the restrictions on the use of campaign funds in the future. The Commission will consider the formal written warning in deciding on further Commission action if there are future violations of PDC laws or rules.

Based on this information, the PDC finds that no further action is warranted and has dismissed this matter in accordance with RCW 42.17A.755(1).

Disposition

Case Closed with Written Warning

Date Opened

April 23, 2018

Areas of Law

RCW 42.17A.205, RCW 42.17A.220, RCW 42.17A.235, RCW 42.17A.255, RCW 42.17A.265, RCW 42.17A.320, RCW 42.17A.425, RCW 42.17A.445, RCW 42.17A.700