Richard L. Pope, Jr.

1839 – 151^st Avenue, S.E.

Bellevue, Washington  98007

 

Tel:  (425) 747-4463

E-Mail:  RPope98155 [a*t] aol.com 

 

 March 19, 2007

                                                                                                           

 

Honorable Robert M. McKenna

Attorney General of Washington

1125 Washington Street, S.E.
Post Office Box 40100
Olympia, Washington  98504

 

Re:       Citizen Action Letter, RCW 42.17.400(4)

            King County Republican Central Committee

            Additional Matters Re: 2005-2006 Expenditure Reporting by Non-Exempt Fund

           

Dear Attorney General McKenna:

 

            This letter concerns the King County Republican Central Committee (KCRCC) and a number of matters concerning apparent violations in expenditure reporting by its Non-Exempt Fund during 2005 and 2006.  There are also some apparent excessive corporate donations over $3,500 per year.  These concerns are in addition to the concerns raised in my Citizen Action Letter of November 27, 2006 and PDC Case No. 07-054.

 

$2,100.00 Bret Olson “Independent Expenditure” on 10/20/2006

 

$2,100.00 was paid to Madison Communications on October 20, 2006, apparently for some so-called “Deb Eddy Property Tax” yard signs.[1]  These were designed to attack Deborah H. Eddy, a successful Democratic candidate for State Representative, District 48, Position 2 and benefit her Republican opponent, Bret Olson.  This was initially reported as a Last Minute Contribution to the Bret Olson on a LMC form filed on October 25, 2006, which said the in-kind contribution was made on October 24, 2006.  On October 27, 2006, the KCRCC sent an e-mail to the PDC, saying this “in-kind contribution” was really an “independent expenditure”, and that a C6 form was being filed that very day in order to report this.  However, no such C6 form has been filed by the KCRCC to date.

 

This raises several issues.  First, RCW 42.17.100(2) required that a C6 form be filed within 5 business days after making the expenditure, which was due on October 27, 2006.  This C6 report is now 113 days past due.  The e-mail of October 27, 2006 cannot take the place of the C6 report, as the C6 form requires a lot of specific information – including a description of what it being purchased with the independent expenditure, such as direct mail, newspaper advertising, or yard signs, and the date the first communication is being made with the public from the presentation of the independent expenditure.

 

Second, I have a concern that this $2,100.00 might not really be an “independent expenditure”.  It was initially called “in-kind”.  The KCRCC used the same public relations firm that the Olson campaign used – Madison Communications.  The KCRCC gave $3,600.00 directly to Olson earlier in the campaign.  This $2,100.00 would have certainly been legal to give to Olson, but there was $9,110.00 also made as “independent expenditure” related to Donna Watts, another legislative candidate, which would have exceeded the $5,000.00 (21 day pre-general) contribution limit under RCW 42.17.105(8).

 

Third, if this was an “in-kind” contribution, it was also reported late under RCW 42.17.105(3).  The deadline for reporting was 48 hours or the next business day thereafter, whichever is later.  So this should have been reported on Monday, October 23, 2006, but the initial LMC report mentioning Olson was filed on October 25, 2006, or 2 days late.

 

$9,110.00 Donna Watts “Independent Expenditure” on 10/20/2006 & 10/30/2006

 

$1,760.00 was paid to Madison Communications on October 20, 2006 for “Consulting Fees”.  Another $7,350.00 was paid to Madison Communications on October 30, 2006 for “Candidate Support”, for a grand total of $9,110.00.  On October 26, 2006, the KCRCC filed a LMC form, saying they had made a $9,110.00 in-kind contribution to Donna Watts on October 24, 2006.  On October 27, 2006, the KCRCC sent an e-mail to the PDC, saying this “in-kind contribution” was really an “independent expenditure”, and that a C6 form was being filed that very day in order to report this.  However, no such C6 form has been filed by the KCRCC to date.

 

This raises several issues.  First, RCW 42.17.100(2) required that a C6 form be filed within 5 business days after making the expenditure, which was due on October 27, 2006.  This C6 report is now 113 days past due.  The e-mail of October 27, 2006 cannot take the place of the C6 report, as the C6 form requires a lot of specific information – including a description of what it being purchased with the independent expenditure, such as direct mail, newspaper advertising, or yard signs, and the date the first communication is being made with the public from the presentation of the independent expenditure.

 

Second, I have a concern that this $9,110.00 might not really be an “independent expenditure”.  It was initially called an “in-kind” contribution.  And the $7,350.00 paid to Madison Communications on October 30, 2006 was called “Candidate Support” on the Schedule A filed on November 5, 2006.[2]  RCW 42.17.105(8) prohibited the KCRCC from giving more than $5,000.00 to a candidate in the last 21 days before the general election, this period starting on October 17, 2006.  This creates a reasonable suspicion that KCRCC made an excessive in-kind contribution, then decided it was an independent expenditure.

 

Third, if this was an “in-kind” contribution, it was also reported late under RCW 42.17.105(3).  The deadline for reporting was 48 hours or the next business day thereafter, whichever is later.  The initial $1,760.00, paid on October 20, 2006, should have been reported on October 23, 2006, but was not reported until October 26, 2006, or 3 days late.

 

$22,300.00 “Candidate Support” Paid to Minnick & Minnick on 10/20/2006

 

$22,300.00 was paid to Minnick & Minnick for “Candidate Support” on 10/20/2006.  The Schedule A does not provide any further details concerning this.

 

However, a search of the PDC database, with several possible variations related to the KCRCC as donor, does not show any candidates reporting any corresponding in-kind donations from the KCRCC in October 2006 – not even small portions of this amount.

 

The 21 day period before the general election started on October 17, 2006.  So if the KCRCC gave $1,000.00 or more of this “Candidate Support” on behalf of a given candidate, then RCW 42.17.105(3) required the KCRCC (and the recipient candidate) to report this within 48 hours.  The KCRCC did not file any such LMC reports whatsoever.

 

RCW 42.17.105(8) prohibited the KCRCC from giving more than $5,000.00 to a candidate in the last 21 days before the general election, this period starting on October 17, 2006.  It is possible a given candidate may have been benefited in excess of $5,000.00 by this expenditure (which has to consider all KCRCC spending in the last 21 days).

 

In any event, RCW 42.17.090 and the PDC regulations required KCRCC to state on Schedule A which candidates were being supported by this $22,300.00 paid to Minnick & Minnick, and in what amounts.  Likewise, RCW 42.17.090 would have required the recipient candidates to report these same in-kind contributions on Schedule B.

 

If this was actually an “independent expenditure”, RCW 42.17.100(2) required that a C6 form be filed within 5 business days after making the expenditure, which was due on October 27, 2006.  This C6 report is now 113 days past due. 

 

$18,763.68 “Independent Expenditure Paid to IQ Direct on 10/20/2006

 

$18,763.68 was paid to IQ Direct for “Independent Expenditure” on 10/20/2006.  The Schedule A does not provide any further details concerning this.

 

RCW 42.17.100(2) required that a C6 form be filed within 5 business days after making the “Independent Expenditure”, which was due on October 27, 2006.  No such C6 report was ever filed by the KCRCC, making this C6 report now 113 days past due. 

 

Once again, it is always possible that this “Independent Expenditure” was actually an in-kind contribution on behalf of one or more candidates.  RCW 42.17.105(8) prohibited the KCRCC from giving more than $5,000.00 to a candidate in the last 21 days before the general election, this period starting on October 17, 2006.  And 42.17.105(3) required the KCRCC to report last minute contributions of $1,000.00 or more made within 21 days before the general election within 48 hours to the PDC on a LMC form.

 

Concerns Over 2005 Payments to Minnick & Minnick and IQ Direct

 

The KCRCC paid similarly large sums of money to these same two vendors – Minnick & Minnick and IQ Direct – in 2005.  However, no C6 reports were filed for this in 2005 and no candidates reported corresponding in-kind contributions from KCRCC.

 

In 2005, substantial sums were paid to Minnick & Minnick:  "Professional services" for $1,000.00 on 06/29/2005, $2,000.00 on 09/23/2005, $3,500.00 on 09/27/2005, and $2,410.84; and "General Operation and Overhead" of $13,682.39 on 10/12/2005, $4,839.10 on 10/20/2005, $2,571.13 on 10/27/2005, and $1,573.25 on 11/11/2005; all for a grand total of $31,576.71.  Was this money actually for some sort of candidate support and/or independent expenditure?  No candidates have reported any corresponding in-kind donations from the KCRCC, nor did the KCRCC file any C6 independent expenditure forms in 2005.

 

 In 2005, substantial sums were paid to IQ Direct:  "General Operation and Overhead" of $18,130.87 on 10/12/2005, $6,676.19 on 10/20/2005, $2,571.13 on 10/27/2005, and $702.04 on 11/11/2005; all for a grand total of $25,509.10.  Was this money actually for some sort of candidate support and/or independent expenditure?  No candidates have reported any corresponding in-kind donations from the KCRCC, nor did the KCRCC file any C6 independent expenditure forms in 2005.

 

Mark Griswold Filing Fee Reimbursement for $352.54 on 08/03/2006

 

Mark Griswold was paid $352.54 on August 3, 2006 as reimbursement for a filing fee.  This happened to be the legislature filing fee amount for 2006.  However, Griswold was not a candidate for legislature – or any other elected office – in 2006. 

 

Various Unreported Money Donations to Candidates

 

Jane Hague (King County Council, District 6) reported receiving $350.00 on April 26, 2005 and another $100.00 on April 15, 2006 from the KCRCC.  There do not appear to be any corresponding expenditures by the KCRCC reported to the PDC in relation to these items.

 

Kathy Lambert (King County Council, District 3) reported receiving $350.00 on April 20, 2005 from the KCRCC.  There does not appear to be any corresponding expenditure by the KCRCC reported to the PDC in relation to this item.

 

Norm Maleng (King County Prosecuting Attorney) reported receiving $1,350.00 on January 9, 2006 from the KCRCC.  There does not appear to be any corresponding expenditure by the KCRCC reported to the PDC in relation to this item.

 

Lynn Rehn (Sammamish City Council) reports receiving $450.00 on October 21, 2005 and another $150.00 on November 11, 2005 from the KCRCC.  There do not appear to be any corresponding expenditures by the KCRCC reported to the PDC in relation to these items.

 

Excessive Corporate Contributions to KCRCC Non-Exempt in 2006

 

RCW 42.17.640(7) and WAC 390-05-400 prohibit corporations and all other entities (other than individuals or political parties) from contributing more than $3,500.00 to the KCRCC Non-Exempt Fund during the calendar year of 2006.  RCW 42.17.640(14) likewise prohibited KCRCC from accepting any such excessive contributions.

 

Bennett Homes, Inc. donated $5,000.00 to the KCRCC Non-Exempt Fund on October 16, 2006.  This exceeded the RCW 42.17.640(7) maximum limit by $1,500.00.

 

Port Blakely Tree Farms LP gave $1,000.00 to the KCRCC Non-Exempt Fund on September 25, 2006 and another $4,000.00 on October 16, 2006, for a grand total of $5,000.00.  This exceeded the RCW 42.17.640(7) maximum limit by $1,500.00.

 

My Notification to KCRCC About These PDC Reporting Problems

 

            I sent two e-mails to the KCRCC leadership and executive committee back on November 28, 2006 concerning the above PDC reporting problems (except for the excess corporate contributions, which I recently discovered).  Apparently, nothing has been done.

 

 

            My first e-mail was sent at 2:34 p.m. on November 28, 2006 to KCRCC Chair Michael Young, KCRCC Treasurer (?) Geoffrey Tamman, and KCRCC Executive Director Ross Marzolf.  Mr. Marzolf e-mailed me back at 5:01 p.m. that same day, stating my e-mail was referred to the Deputy Treasurer and to KCRCC Vice-Chair Lori Sotelo.

 

            I sent a second e-mail at 5:25 p.m. on November 28, 2006 to KCRCC Chair Michael Young and to the entire e-mail list of the KCRCC officers and executive board, as found on the KCRCC website.  Ms. Sotelo e-mailed me at 10:49 a.m. on December 4, 2006, stating that she would be forwarding these two e-mails to the PDC.

 

            However, as far as I can tell, nothing has been done by the KCRCC to correct any of the additional concerns that I reported to them in my two e-mails of November 28, 2006.  This is rather alarming, considering the prior violations that were formally reported to the Attorney General and PDC on November 27, 2006.  Apparently, KCRCC does not consider PDC reporting problems important enough to correct, absent a formal complaint.

 

Conclusion

 

            If enforcement action is not commenced by filing a civil action in court in the name of the State of Washington, within forty-five days of your receipt of this written notification, I reserve my right under RCW 42.17.400(4) to give a second written notification that I will commence citizen’s action in the name of the State of Washington over these matters if there has been further failure to so act within ten days of the receipt of such second written notification, and thereafter commence a civil action on my own initiative in the name of the State of Washington over these matters.

 

            I am also forwarding a copy of this citizen action letter to the King County Prosecuting Attorney, which covers the jurisdiction where the KCRCC is headquartered, and the Thurston County Prosecuting Attorney, where the PDC office is located.

 

            Thank you for your careful attention in this matter.

 

Very truly yours,

 

 

 

Richard L. Pope, Jr.

 

 

ATTACHMENTS

 

The following attachments (which total 21 pages) are being sent by E-Mail only:

 

1.         My E-Mail to Young, Tamman & Marzolf, 11/28/2006

2.         Ross Marzolf E-Mail to Me, 11/28/2006

3.         My E-Mail to KCRCC Executive Board, 11/28/2006

4.         Lori Sotelo E-Mail to Me, 12/04/2006

5.         List of KCRCC Non-Exempt Fund Expenditures, 01/01/2005 to 12/31/2006

6.         LMC Correction Report, Bret Olson & Donna Watts, filed 10/27/2006

7.         LMC Report, $2,100.00 to Bret Olson on 10/24/2006, filed 10/25/2006

8.         LMC Report, $9,110.00 to Donna Watts on 10/24/2006, filed 10/26/2006

9.         Candidate Reported Contributions from KCRCC, 01/01/2005 to 10/30/2006

10.       List of KCRCC Non-Exempt Fund Contributions, 01/01/2006 to 12/31/2006

 

DECLARATION

 

            I declare under penalty of perjury under the laws of the State of Washington that the above and foregoing is true and correct to the best of my knowledge and belief.

 

            Signed at Bellevue, Washington on March 19, 2007.

 

 

 

_____________________________

RICHARD L. POPE, JR.

 

 

Cc:       Vicki Rippie

Executive Director

Public Disclosure Commission

711 Capitol Way, Room 206

Post Office Box 40908

Olympia, Washington  98504-0908

 

Honorable Norman K. Maleng

King County Prosecuting Attorney

516 Third Avenue, Room W-554

Seattle, Washington  98104

 

Honorable Edward G. Holm

Thurston County Prosecuting Attorney

2000 Lakeridge Drive, S.W., # 2

Olympia, Washington  98502