UniteHere Local 8 PAC: Alleged violations of Chapter 42.17A RCW for failure to register as a political committee, report expenditure activities, and disclose sponsor identification (EY 19; July 19)

Case

#55345

Respondent

UniteHere Local 8 PAC

Complainant

Tallman Trask

Description

A complaint was filed against Unite Here Local 8 PAC, a continuing political committee registered with the PDC, alleging that during the 2019 election, Unite Here Local 8 PAC may have violated: (1) RCW 42.17A.320 by failing to include the required sponsor identification on “the video portion” of a political advertisement that appeared on Facebook; (2) RCW 42.17A.235 by failing to properly disclose expenditure information or receiving an in-kind contribution on the Summary Full Campaign Contributions and Expenditures Report (C-4 report) from the national Unite Here TIP Local and State Fund for Facebook advertisements; and (3) RCW 42.17A.250 by Unite Here TIP Local and State Fund for failing to file an Out-of-state political committee report (C-5 report) making independent expenditures.

For 2019, Unite Here Local 8 PAC (Committee) was registered as a continuing political committee selecting the Full Reporting Option, and on October 4, 2019, Unite Here TIP State and Local Fund from New York City, NY filed a Registration as a continuing political committee for 2019.

On July 16, 2019, the Committee timely filed the 21-Day Pre-Primary Election C-4 report disclosing $150,588.55 in monetary contributions received, and $150,000 in expenditures made. The C-4 report disclosed one expenditure totaling $150,000 made to Print Logistics from Sacramento, CA. to design, produce and broadcast independent expenditures in support of Andrew Lewis, a 2019 candidate for Seattle City Council, Position 7, without providing any additional expenditure details or a breakdown of the sub-vendor information.

On September 18, 2019, the Committee filed an amended 21-Day Pre-Primary Election C-4 report listing the previously reported $150,588.55 in monetary contributions received and $150,000 in expenditures made. However, the amended information listed a total of seven independent expenditures made by the Committee to Print Logistics (PL), all in support of Andrew Lewis and made on July 11, 2019, that included a $108,610 independent expenditure was made to Comcast Spotlight for a primary election Cable TV ad buy, a $4,077 independent expenditure was made for Facebook Video Ads that appeared 7/12 through 7/19/2019; and (3) a $16,000 independent expenditure was made to KIRO TV for a primary election TV ad buy.

The amended information filed by the Committee on the C-4 report for the independent expenditure advertisements made in support of Andrew Lewis for City Council were disclosed 64 days late, and 43 days after the August 6, 2019 primary election was held.

On July 16, 2019, Unite Here Local 8 PAC timely filed a C-6 report checking box 2 for an Independent Expenditure of more than a $1,000 within 21 days of an election and disclosing a total of $148,299.38 in independent expenditures had been made in support of Andrew Lewis. One of the independent expenditures disclosed on the C-6 report was for a $9,299.38 expenditure made to Facebook on July 12, 2019, with the description of “Video Ads 7/12 – 8/6/2018”, and the Unite Here Local 8 Facebook ads were presented to the public on 7/12/2019.

Concerning the Facebook ads listed in the complaint, Mr. Ewan indicated in her email response that the independent expenditure advertisements had been done by PL on behalf of the Committee. She attached a Facebook billing invoice that was billed under the name Juaquin Ross, President of PL, and the invoice included ten Facebook entries disclosing a total of $4,077.13 had been spent by the Committee on Facebook advertisements covering the period of July 12 through 28, 2019.

For calendar year 2019, the Committee disclosed receiving $460,123 in total contributions from Unite Here TIP State & Local Fund out of New York, $60,000 from Unite Here Local 8, and $920.05 in Miscellaneous receipts. Information on the PDC website as part of the “Political Committee Instruction Manual” included a link for the “Committee Name”, which stated: “A sponsored committee must include its sponsor’s name in the committee’s name. A committee with multiple sponsors may include all – but must include at least one – sponsor’s name in the committee’s name. A political committee shall include a known sponsor in its name when registering. The committee must amend its registration 60 days before an election in which it participates if the sponsor has changed.”

On April 6, 2021, the PDC received a completed Statement of Understanding (SOU) from Mr. Iglitzin transmitted on behalf of his client, Unite Here Local 8, acknowledging violations of RCW 42.17A..205, and .240, and paying a $300 civil penalty in accordance with WAC 390-37-143, the Penalty Schedule adopted by the Commission to resolve this matter. The $300 penalty included: (1) a $150 penalty for the acknowledged violation of RCW 42.17A.205, for failing to timely amend the Committee Registration to include Unite Here TIP State & Local Fund as the sponsor for the 2019 election; and (2) a $150 penalty for the acknowledged violation of RCW 42.17A.240 for failing to accurately disclose the required expenditure details on the 21-Day Pre-Primary Election C-4 report for the independent expenditure or electioneering communication advertisements in support of Andrew Lewis.

Based on these findings, staff has determined that in this instance, no further investigation is warranted, or any additional enforcement action shall be taken. The PDC has dismissed the allegations listed in the complaint filed against Unite Here Local 8 PAC in accordance with RCW 42.17A.755(1) and WAC 390-37-070.

Disposition

Resolved through Statement of Understanding

Date Opened

July 29, 2019

Areas of Law

RCW 42.17A.235, RCW 42.17A.240, RCW 42.17A.255, RCW 42.17A.260, RCW 42.17A.305

Documents

Penalties

Total penalties: $300

Balance Due: $0

Unite Here Local 8 PAC

Penalty

$300 (Statement of Understanding)

Payments

$300 on 04/06/2021 (PAID - SoU)