PDC levies fine against Joshua Freed for violation of campaign loan rules 

The Public Disclosure Commission voted unanimously to fine former Bothell Mayor Joshua Freed $50,000 – with half the penalty suspended – for campaign violations related to personal loans to his unsuccessful 2020 campaign for governor. 

Freed acknowledged in a stipulation negotiated with PDC staff that he exceeded the $6,000 limit on repayment of a personal loan to his campaign. The campaign repaid him at least $450,000 of a $500,000 loan —  later characterized as a contribution – he made at the start of his campaign. He also acknowledged that the campaign filed incorrect reports concerning the contribution and/or loan. 

A new PDC tool helps the public visualize candidate campaign reports by mapping the sources of their campaign cash and showing how their financial support has changed over time.  

You’ll find the “Show me the money” application via a link on each candidate’s campaign overview page. (The exception is some small-dollar campaigns that don’t have to report contributions.) 

Use this link to browse 2020 candidates. Enter the candidate name in the search box at the top of the page, and you’ll find the candidate overview page. Clicking the map image will take you to the visualization dashboard.  

The five-member Public Disclosure Commission voted unanimously Thursday to refer two 2019 complaints against Google to the state attorney general’s office.  

The complaints (PDC case documents here and here) allege that Google violated state campaign finance laws that require commercial advertisers to maintain records known as “books of account” for political advertising. Those records are to be made available to members of the public upon request, so that they can see who is paying for political ads. 

The complaints against Google have been under review by PDC staff. Executive Director Peter Lavallee brought the cases to the Commission for review due to his assessment that “continued investigation of this matter will involve the expenditure of substantial resources by the PDC.” 

Commission fines former Olympia city manager 

In a 4-1 vote, the Commission levied a $10,000 fine – with half suspended – against former Olympia City Manager Steve Hall. The fine was the result of a 2019 mailer the city created and sent urging voters to reject Initiative 976, following a City Council vote opposing it.  State law prohibits the use of public resources to support or oppose a ballot measure. 

Hall accepted responsibility for the mailer as the ultimate decision-maker, and entered into a stipulated agreement with the PDC over the fine. Commission members debated whether responsibility for the campaign finance violation was more widespread. 

Financial affairs statements back online

After a temporary pause, the Commission voted to restore online access to Personal Financial Affairs (F-1) reports filed by elected and appointed officials. The reports went back online June 26.

Online access to F-1 reports was initially suspended May 24, following concerns expressed by state officials from Washington Technology Solutions (WaTech) and members of the Legislature. They had questioned whether F-1 records could be a contributing factor in future fraudulent unemployment insurance claims. Commission Chair David Ammons authorized the temporary suspension after hearing those concerns.

A majority of Commission members had voted May 28 to lift it, following a consultation with technology experts at their June 25 meeting.

The Public Disclosure Commission has temporarily suspended online access to Financial Affairs Disclosure (F-1) reports until June 26.

After officials from Washington Technology Solutions (WaTech) and members of the Legislature raised concerns about whether the records could be a source of information for fraudulent unemployment claims, Chair David Ammons authorized PDC staff to remove the reports from the PDC website on May 24. Two days later, WaTech requested the PDC maintain the suspension until more was known. 

PDC staff did an initial analysis of traffic to the data to see if it could identify suspicious activity and did not find anything extraordinary.

Campaign finance disclosure scored a major victory Thursday with the state Supreme Court’s decision to uphold an $18 million penalty imposed against the Grocery Manufacturers Association for concealing the source of funds fueling its successful 2013 effort to defeat a citizen initiative to require labeling of genetically modified foods.

PDC Chair David Ammons welcomed the news that the Court upheld a trial court finding that the industry group intentionally violated the law in trying to evade public knowledge of its members’ spending against Initiative 522.

“The court’s decision sends a ringing message to any group that might try to circumvent Washington’s campaign finance laws,” Ammons said. “Voters have a right to know who the players are in a campaign – whether they support or oppose a ballot measure. And this case demonstrates the Commission’s crucial role in ensuring transparency on the part of those who spend money to influence voters.