Teamsters Local 589: Alleged violations of RCW 42.17A.255 for failure to report independent expenditures in opposition to ballot propositions (EY 19; Sep 19)

Case

#56886

Respondent

Teamsters Local 589

Complainant

Freedom Foundation (Maxford Nelsen)

Description

A complaint was filed against the Teamsters Local 589, a local labor organization in Port Angeles Washington, alleging that the Teamsters Local 589 may have violated RCW 42.17A.255 by failing to timely file Independent Expenditures reports (C-6 reports) disclosing expenditures made for legal services related to City of Sequim Propositions 1 and 2. 

On September 23, 2019, Teamsters Local 589 filed a C-6 report disclosing $35,608.70 in total expenditures made to the law firm of Reid, McCarthy, Ballew & Leahy, LLP covering the period July 1 through December 31, 2014,  for legal services incurred in opposition to the City of Sequim Propositions 1 and 2 for July through December of 2014.  

Teamsters Local 589 indicated that it was not aware of a requirement to file a C-6 report with the PDC regarding “its litigation expenses” until the complaint had been filed, and noted a unions hiring of attorneys to defend its members concerning the collective bargaining agreement, or a contractual or statutory provision is typically not reportable to the PDC. 

On November 14, 2019, the PDC received a completed Statement of Understanding (SOU) that was signed by Mark Fuller, on behalf of Teamsters Local 589.  The SOU was accompanied by a $450 payment for the civil penalty that was assessed in this matter in accordance with WAC 390-37-143 (Brief Enforcement Penalty Schedule).

The $450 civil penalty paid resolves the allegations listed in the complaint against the Teamsters Local 589 for failing to timely file C-6 reports.  By completing the SOU, the Teamsters Local 589 acknowledged three violations of RCW 42.17A.255 for failing to timely file C-6 reports disclosing legal services incurred in October, November and December of 2014, that were paid in November and December of 2014, and January of 2015 in opposition to the City of Sequim Propositions 1 and 2.

Based on the resolution of this matter through a SOU, PDC staff is dismissing this matter in accordance with RCW 42.17A.755(1).

Disposition

Resolved through Statement of Understanding

Date Opened

September 03, 2019

Areas of Law

RCW 42.17A.255

Documents

• 56886 Teamsters Local 589 Complaint.pdf
• Teamsters Local 589 _ Statement of Understanding.pdf
• 56886 Teamsters Local 589 Response.pdf
• Teamsters Local 589 Complaint Return Letter with Statement of Understanding and Cover Letter (Freedom Foundation) PDC Case 56886.pdf

Penalties