State of Washington

PUBLIC DISCLOSURE COMMISSION

711 Capitol Way Rm. 206, PO Box 40908

Olympia, Washington 98504-0908

Toll Free 1-877-601-2828

(360) 753-1111

FAX (360) 753-1112

E-mail: pdc@pdc.wa.gov Website: www.pdc.wa.gov

9:30 a.m.
June 23, 2011
MINUTES REGULAR MEETING
Evergreen Plaza Bldg. Room 206
711 Capitol Way South
Olympia, Washington
COMMISSION MEMBERS PRESENT

STAFF PRESENT

Dave Seabrook, Chair

Doug Ellis, Interim Executive Director

Barry Sehlin, Vice Chair

Nancy Krier, General Counsel

Jennifer Joly, Secretary

Michael Smith, Chief Technology Officer

Jim Clements, Member

Phil Stutzman, Director of Compliance

Tony Perkins, Lead Political Finance Specialist
Kristin Murphy, Political Finance Specialist 2
Lori Anderson, Communication & Training Officer
Suemary Trobaugh, Administrative Officer
Linda Dalton, Sr. Asst. Attorney General
Jana Greer, Confidential Secretary

The regular meeting of the Public Disclosure Commission was called to order by Commission
Chair Dave Seabrook at 9:30 a.m. in the Evergreen Plaza Building, Room 206 Olympia,
Washington.
Citizen Comments/Concerns

No citizen comments or concerns were expressed.

Commissioner Comments

Chair Seabrook welcomed the PDC summer interns.

Lori Anderson introduced the summer interns, Shaul
Goldberg and Marissa Jaksich. She noted that the
internships are unpaid and that the agency is grateful to
have these individuals onboard to assist with current
projects.
Commissioner Sehlin referenced a June 10, 2011
Yakima Herald-Republican online news article (Slice of
Yakima: Street in Selah to Bear Former Lawmakers
Name.) The Selah City Council is preparing to name a
street after Jim Clements, a former state legislator.
The Commissioners congratulated Commissioner
Clements on a recognition well deserved.

Commission Meeting Minutes

June 23, 2011
Page 2 of 8
Minutes

Jana Greer noted a change to the draft minutes

submitted by Linda Dalton, found on page four of the
March 26, 2011 meeting minutes, noting that the
reference to Mr. Hills name needs to be changed to Mr.
Gutzwilers.
The correction was made and the draft minutes were
amended.

Motion 11-042

Moved by Commissioner Sehlin, seconded by

Commissioner Joly:
The Commission adopts the minutes of March 26,
2011 as amended.
The motion passed unanimously.

Projected Rulemaking Schedule

Lori Anderson discussed a projected rule making

schedule. Permanent rule making is needed to
implement ESSB 5021 in January 2012. Draft language
for possible amendments to WAC 390-16-011, 390-17315, 390-19-030, and 390-37-103 will be presented to
the Commission at a future meeting.
Ms. Anderson noted that a stakeholder meeting is
scheduled for July 13, 2011 to discuss the
implementation of ESSB 5021; additional rule making
recommendations may result from this meeting.
She also reviewed the expedited rule making to amend
the 150 PDC rules that contain references to Chapter
42.17 RCW, to change the references to 42.17A RCW.
The process was confirmed with the Code Revisers
Office.
Staff recommended the Commission approve expedited
rule making to amend all references to RCW 42.17
contained in Title 390 WAC to RCW 42.17A, effective
January 1, 2012.

Motion 11-043

Moved by Commissioner Sehlin, seconded by

Commissioner Joly:
The Commission moves to proceed with expedited
rule making to convert all references to RCW 42.17
contained in Title 390 WAC to RCW 42.17A.
The motion passed unanimously.

Budget Update

Doug Ellis discussed the 2011-2013 biennial budget.

The Governor signed the budget bill on June 13, 2011,
which becomes effective July 1st. He reviewed the
agencys appropriations for the commission noting the
additional funding to implement ESSB 5021.

Commission Meeting Minutes

June 23, 2011
Page 3 of 8
The appropriation is below what was considered the
maintenance level of 2011-2013 for this agency.
He reviewed the staff reductions and the anticipated
workload for the staff that remains. The agency is
working with minimum staff. He explained that cuts of
this magnitude will impact what the staff is able to
accomplish.
Mr. Ellis continued his discussion with the breakdown of
the 2012 and 2013 budgets, also reviewing the
reductions were taken in fiscal year 2011.
He stated he is now in the process of determining what
level of service the agency can offer, and providing
timely information and customer service will always be
the priority.
He noted that as we move into the new biennia there
may be some additional adjustments needed.
Executive Director Search

Dennis Karras provided an update of the Executive

Director recruitment.
Mr. Karras reviewed the number of applications
received to date. Targeted recruitment has begun to
approach individuals that have not yet applied.
Marissa Karras described a typical interview (screening)
panel and asked for Commission input, Commissioner
Sehlin and Commissioner Joly will participate on the
screening panel. Karras Consulting will review the
process prior to the screening panel interviews.
The Commission commenced discussion to determine
what type of panel would be used.
Nancy Krier reviewed the proposed timeline for next
steps in the search.
Karras Consulting will continue to provide a weekly
update throughout the recruitment process.
Doug Ellis discussed budget considerations the
Commission should be aware of as the Executive
Director search process proceeds. He referred to SB
5860 regarding temporary salary reductions and how
this bill will affect the Executive Directors salary.

E- Filing

Suemary Troubaugh presented an overview of the efiling rate and the customer volumes the agency is
experiencing.

Social Media Update

Lori Anderson provided an update on the agency

Facebook page which was launched in February 2011.

Commission Meeting Minutes

June 23, 2011
Page 4 of 8
Ms. Anderson provided the usage reports and the
growth of the PDC agency page.
She stated that the agency would like to continue to use
the Facebook page and also consider branching into
other social media options.
Nancy Krier discussed other types of social media the
agency would like to consider using such as YouTube.
Staff recommended posting the instructional training
videos on YouTube for a trial period.
Ms. Krier will also explore the use of Twitter and
suggests that agency hold on using this social media
outlet at this time. She will report back to the
Commission with research.
The Commission approved the continued use of
Facebook for another six months and to move forward
in posting training videos on YouTube for a trial period
of 6 months.
Executive Session/Working Lunch

The Commission went into executive session at 11:57

a.m. to discuss pending and potential litigation with legal
counsel.
The Commission returned to public session at 1:00 p.m.

Enforcement
House Republican
Organizational Committee,
PDC Case No. 11-025, alleged
violations of RCW 42.17.080
and .090e.

Phil Stutzman reviewed the allegations and proposed

Stipulation as to Facts and Violations for Commission
consideration.
Kevin Carnes, political director for the House
Republican Organizational Committee was present at
the hearing.
The House Republican Organization Committee
stipulated to committing violations of RCW 42.17.080
and, 090, by failing to timely report making a $120,000
contribution to the non exempt account of the
Washington State Republican Party on October 10,
2010.
Mr. Carnes stated that a system has been put into place
to prevent this from occurring in the future.
Staff recommended that the Commission accept the
proposed stipulation and determine an appropriate
penalty for a single violation of RCW 42.17.080 and,
090.

Commission Meeting Minutes

June 23, 2011
Page 5 of 8
Motion 11-044

Moved by Commissioner Sehlin seconded by

Commissioner Joly:
The Commission accepts the proposed Stipulation.
The motion passed unanimously.

Motion 11-045

Aaron Reardon, PDC Case No.

11-041, alleged violations of
RCW 42.17.241.

Motion 11-046

Motion 11-047

Moved by Commissioner Sehlin seconded by

Commissioner Clements:
The Commission assesses a penalty of $1700 with
$500 suspended under the conditions specified in
the Stipulation.
The motion passed unanimously.
Phil Stutzman reviewed the allegations and proposed
Stipulation as to Facts and Violations for Commission
consideration.
Aaron Reardon, Snohomish County Executive, was
present at the hearing.
A citizen action letter (45-day letter) was submitted to
the Attorney Generals office alleging that Mr. Reardon
violated RCW 42.17.241 by falling to disclose
entertainment and travel expenses that were paid for by
a source other than Snohomish County on his personal
financial affairs statement (F1) from 2005 through 2009.
Mr. Stutzman stated that the proposed Stipulation refers
to those expenses not disclosed by Mr. Reardon for
entertainment and travel in 2009.
Staff recommended that the Commission accept the
proposed Stipulation and assess an appropriate penalty.
Regarding the remaining allegations in the citizen action
letter staff recommended that the Commission dismiss
the remaining alleged violations of RCW 42.17.241,
RCW 42.17.242, and recommended that the Attorney
General take no further action.
Moved by Commissioner Sehlin seconded by
Commissioner Joly:
The Commission accepts the proposed Stipulation.
The motion passed unanimously.
Moved by Commissioner Sehlin seconded by
Commissioner Joly:
The Commission supports the staff
recommendation to dismiss the remaining
allegations in the citizens action letter concerning
the years for 2005, 2006, 2007, 2008, and concerning
alleged concealment.
The motion passed unanimously.

Commission Meeting Minutes

June 23, 2011
Page 6 of 8
Motion 11-048

Moved by Commissioner Sehlin seconded by

Commissioner Joly:
The Commission assesses a penalty of $1000 with
$500 suspended based upon no further violations
within four years.
The motion was withdrawn.

Motion 11-049

Moved by Commissioner Sehlin seconded by

Commissioner Joly.
The Commission assesses a penalty of $750 with
$500 suspended.
The motion passed unanimously.

One America Votes, PDC Case

No. 11-035, alleged violations
of: (1) RCW 42.17.040; (2)
RCW 42.17.080 and .090; and
(3) RCW 42.17.105(1).

Phil Stutzman reviewed the allegations and proposed

Stipulation as to Facts and Violations for Commission
consideration.
Pramilia Jayapal, Executive Director of One America
Votes and James Oswald, legal counsel were present at
the hearing.
Mr. Stutzman stated that One America Votes stipulated
to violating RCW 42.17.040; RCW 42.17.080 and .090,
and RCW 42.17.105(1). Mr. Stutzman reviewed the
mitigating factors. He noted that once the complaint was
filed, One America Votes complied and Mr. Oswald
assisted in making the corrections.
Staff recommended the Commission accept the
Stipulation and assess an appropriate penalty. Mr.
Oswald addressed the Commission.
Ms. Jayapal also provided testimony to the Commission
concerning the organization.

Motion 11-050

Moved by Commissioner Joly seconded by

Commissioner Sehlin:
The Commission accepts the proposed Stipulation.
The motion passed unanimously.

Motion 11-051

Moved by Commissioner Joly seconded by

Commissioner Sehlin:
The Commission assesses a penalty of $3000 with
$1500 suspended under the conditions specified in
the Stipulation.
The motion passed unanimously.

Commission Meeting Minutes

June 23, 2011
Page 7 of 8
Reporting Modifications Renewals
(with change)
Palmer Robinson, Superior
Court Judge, King County

Motion 11-052

Kristin Murphy presented Judge Robinsons request for

renewal of her reporting modification with change.
Judge Robinson participated via conference call.
Judge Robinsons spouse, Steven Hopp, is the CFO,
Senior Vice President, and a 10% owner of K&H
Printers. K&H provides printing, binding, and election
services for business and government customers.
Judge Robinson stated she does not hold a position
with, or have access to the customer lists of K&H.
Judge Robinson has reported all of the governmental
entities and business customers of K&H which she is
aware.
Judge Robinson stated she will recuse herself in the
event a case involves K&H, its customers or any of their
business interests that she is aware of.
Staff recommends approving the request for a reporting
modification with change in accordance with PDC
Interpretation #02-06.
Moved by Commissioner Clements seconded by
Commissioner Sehlin:
The Commission grants the partial reporting
modification as requested.
The Commission finds that literal application would
cause a manifestly unreasonable hardship on the
applicant and that a limited modification would not
frustrate the purposes of the act.
The motion passed unanimously.

Reporting Modifications Renewals

(with no change)
William H. Chapman,
Commission Member,
Recreation & Conservation
Funding Board
Elizabeth Cowles, Regent,
Washington State University
Brenda Grassel, City Council,
Spokane Valley
David B. Johnston, School
Board Member, Snohomish
School District
Elizabeth P. Martin, Superior
Court Judge, Pierce County

Kristin Murphy presented requests for reporting

modification renewals with no change from Mr.
Chapman, Ms. Cowles, Ms. Grassel, Mr. Johnston, and
Ms. Martin.
Staff recommended approval of the requests for renewal
of these reporting modifications.

Commission Meeting Minutes

June 23, 2011
Page 8 of 8
Motion 11-053

Moved by Commissioner Sehlin seconded by

Commissioner Clements:
The Commission grants the partial reporting
modifications as requested.
The Commission finds that literal application would
cause a manifestly unreasonable hardship on the
applicants and that a limited modification would not
frustrate the purposes of the act.
The motion passed unanimously.

Staff Reports
Interim Executive Director

Doug Ellis reported on the 2011 candidate registrations.

He discussed the new electronic applications and
described that it is making it more efficient to getting the
information into the PDC systems and to the public.
Mr. Ellis recognized the great work the AGO has
performed in getting recovery from cases and the
recovery of legal fees. He also discussed savings
received by using the agencys separation policy. These
savings were used to help offset furlough days imposed
by the Governor and to help the agency prepare for the
more frugal budget necessary in the next biennia.

Chief Information Officer

Michael Smith stated that he has no additional

information to supplement his monthly report.

General Counsel

Nancy Krier stated that she has no additional

information to supplement her report.

Elections

Commissioner Clements nominated the following offices

for the 2011-2012 term:
Chair:
Vice Chair:

Motion 11-054

Commissioner Barry Sehlin

Commissioner Jennifer Joly

Moved by Commissioner Clements, seconded by

Commissioner Seabrook:
The Commission voted to approve the 2011-2012
officers as nominated.
The motion passed unanimously.

Adjournment

Chair Seabrook adjourned the meeting at 2:56 p.m.

Approved by the Commission on July 28, 2011.