International Association of Machinists Lodge W38: Alleged violations of RCW 42.17A.255 for failure to report independent expenditures in opposition to ballot propositions (EY 19; Sep 19)

Case

#56888

Respondent

International Association of Machinists Lodge W38

Complainant

Freedom Foundation (Maxford Nelsen)

Description

A complaint was filed against the International Association of Machinists Lodge W38 (IAM W38), a local labor organization in Washington State, alleging that IAM W38 may have violated RCW 42.17A.255 by failing to timely file Independent Expenditures report (C-6 report) disclosing expenditures made for legal services related to City of Shelton Propositions 1 and 2.

On October 8, 2019, IAM Lodge W38 and the International Association of Machinists Lodge W 24 (IAM W24) filed one C-6 report disclosing expenditures totaling $10,535.95 made to the law firm of Reid, McCarthy, Ballew & Leahy, LLP for legal services incurred in opposition to the City of Shelton Propositions 1 and 2 during November and December 2014 and January 2015.

IAM W38 indicated they were not aware of the C-6 reporting requirement regarding “its litigation expenses” until the complaint was received from PDC staff, and noted that by the time IAM W38 became involved in the litigation, the City of Shelton had already voted not to place either Proposition 1 or 2 on the ballot or to adopt the measures, and the city had already been sued by Diane Good with assistance from the Freedom Foundation. The response went on to state:

"IAMW 38 incurred the attorneys' fees and costs and was the represented party in the 2014 litigation related to this complaint. IAM District Lodge 24, the parent organization to IAN'1-W38, paid the attorneys' fees and costs for IAM-W38. This is why both IAM District Lodge 24 and IAM Local Lodge 38 are on the C6 PDC form. IAM District Lodge 24 files a LM-2 report (which would include the litigation expenses related to the 2014 litigation) and IAM Local Lodge 38 files a LM-3 report. Other than not being a direct party to the litigation, the same basic arguments for IAMW 38 (from my' recent submission) would also apply to IAM District Lodge 24.”

On November 12, 2019, the PDC received a completed Statement of Understanding (SOU) that was signed by Rick Simpson, President of IAM W38, and Wayne Thompson on behalf of IAM W24. 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 assessed resolves the allegations listed in your complaint against IAM W38, and against IAM W24 as the entity paying for the legal services on behalf of IAM W38 for failing to timely file the C-6 report. By completing the SOU, both IAM W38 and IAM W24 are acknowledging three violations of RCW 42.17A.255 for failing to timely file C-6 reports disclosing legal services incurred in opposition to the City of Shelton Propositions 1 and 2.

Based on the resolution of this matter through an 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

Penalties

Total penalties: $450

Balance Due: $0

International Association of Machinists Lodge W38 and W24

Penalty

$450 (Statement of Understanding)

Payments

$450 on 11/12/2019 (Paid)