Enclosed, is the proposed stipulation of facts, violations and penalties for Case #09-001 for the Washington State Republican Party.
Phil Stutzman, PDC Director of Compliance, recommended that the Commission accept the proposed stipulation.
BEFORE THE PUBLIC DiSCLOSURE COMMISSION OF THE STATE OF WASHINGTON
Stipulation as to facts violations and penalty
In the Matter of Enforcement Action Case No. 09-00 1
Against Washington State Republican Party
The parties hereto, the Public Disclosure Commission Staff, by and through its Executive Director, VICKI RIPPlE, and the Respondent, WASHINGTON STATE REPUBLICAN PARTY, represented by John J. White, Jr., Attorney for the Washington State Republican Party, submit this Stipulation as to Facts, Violation and Penalty in this matter.
1. The Public Disclosure Commission has jurisdiction over this proceeding pursuant to Chapter 42.17 RCW; the Public Disclosure Act; Chapter 34.05 RCW, the Administrative Procedure Act; and Title 390 WAC.
2. This matter resulted from a PDC staff generated complaint following a citizen inquiry concerning expenditures made by the Washington State Republican Party (WSRP) during 2006 from the party’s non-exempt account. The citizen noted that the WSRP had reported several expenditures as in-kind contributions to 13 legislative candidates, that the contributions were made within 21 days of the 2006 general election, and that the candidates had not reported receiving the contributions from the WSRP.
3. On June 16, 2008, PDC staff received a further inquiry noting that the WSRP had reported two in-kind contributions to the 2004 Dino Rossi for Governor Campaign, that the contributions were made within 21 days of the 2004 general election, and that the contributions were not reported by the Rossi Campaign.
4. RCW 42.17.105(3) requires committees, during the seven days before a primary election and the 21 days before a general election, to prepare and deliver to the commission a special report regarding any contribution or aggregate of contributions which is $1,000 or more, and is from a single person or entity. The special report must be delivered to the Commission and to the candidate or political committee to whom the contribution or contributions are made, within 24 hours of the time, or on the first working day after: The contribution is made; the aggregate of contributions made first equals $1,000 or more; or the subsequent contribution that must be reported is made.
5. The Washington State Republican Party is a bona fide political party, and operates as the statewide Republican party in Washington State. Th WSRP is located in Bellevue, Washington and operates both a “non-exempt” account, subject to contribution limits, that is used for contributions to candidates, and an “Exempt” account, not subject to contribution limits, that is used for specific pwposes allowed by law, Luke Esser is the Chair of the WSR.P and Jeremy Deutsch is the Executive Director. Neither served in their respectivecapacities in 2004 or 2006.
The 2004 general election was held November 2, 2004. The special reporting period for contributions of $1,000 or more in the aggregate made within 21 days of the general election began October 12, 2004.
7. On October 12, 2004, within 21 days of the 2004 general election, the WSRP provided in-kind contributions totaling $92,522.80 in support of Dino Rossi, the Republican candidate for Governor. On a C-4 and Schedule A report filed on October 25, 2004, the WSRP reported making. two expenditures of $46,261 .40, totaling $92,522.80, to James Foster and Associates, Inc. The purpose of the expenditures was to pay for a mailing in support of R.ossi, as an in- kind contribution to the Rossi Campaign.
8. On October 12, 2004, the WSRP timely filed two special Last Minute Contribution reports disclosing the two in-kind contributions. Each report listed an in-kind contribution to the 2004 Rossi Campaign in the amount of $46,261.40, for a total of $92,522.80.
9. The WSRP did not deliver a copy of the special reports to the Rossi campaign, notifying the campaign of the in-kind contributions. The special reports were required to be delivered to the Rossi campaign within 24 hours of making the in-kind contributions, or by October 13, 2004.
10. The 2006 general election was held November 7, 2006. The special reporting period for contributions of $1,000 or more in the aggregate made within 21 days of the general election began October 17, 2006.
11. Within 21 days of the 2006 general election, the WSRP provided in-kind contributions totaling $211,574.74 in support of the following 13 legislative candidates:
a. Bob Lawrence - $27,937.48
b. Charles Ross - $4,428.87
c. Donna Watts - $1,420.00
d. Jan Shabro - $20,803.47
e. Jeffrey Possinger - $2,406.20
f. Jim Dunn-$24,992.68
h Luke Esser - $20,829.36
i. Mike Riley - $38,202.10
j. Pam Roach-$28,209.60
k. Randy Neatherlin - $7,662.01
12. The expenditures for the in-kind contributions were timely reported on the 7-day pre-general election C-4 report filed October 31, 2006, and on the post-general election C-4 report filed December 7, 2006.
13. The WSRP timely filed special Last Minute Contribution reports disclosing the in-kind contributions to the 13 candidates.
14. The WSRP did not deliver a copy of the special reports to the 13 legislative candidates, notifying the campaigns of the in-kind contributions. The special reports were required to be delivered to the campaigns within 24 hours of making the in-kind contributions.
15. The WSRP has undertaken changes in procedures for processing in-kind contributions so that candidates receive written notice of in-kind contributions, including special notices for last minute contributions.
The parties hereto stipulate that the Washington State Republican Party violated RCW 42.17 as follows:
a. By not delivering to one statewide office candidate, within 24 hours of making two in-kind contributions totaling $92,522.80, two special reports notifying the candidate of the contributions, made within 21 days of the 2004 general election.
a. By not delivering to 13 legislative candidates, within 24 hours of making in-kind contributions totaling $211,574.74, special reports notifying the candidates of the contributions, made within 21 days of the 2006 general election.
1. Based upon the stipulated facts and the agreement regarding violations set forth above, the Respondent agrees that a total civil penalty of $15,000 be assessed.
2. The Respondent agrees that the penalty shall be paid within 60 days from the date of entry of the Commission’s Final Order in this matter.
Signed by Vicki Rippie on 8/21/2008
Signed by Jeremy Deutsch, Executive Director, WSRP 8/20/2008
The stipulation is 37 pages long. You can find a complete copy here: http://www.pdc.wa.gov/archive/commissionmeetings/meetingshearings/pdfs/2008/08.28.08.09001.WSRP.pdf