New law creates optional dissolution process for candidates, committees

Campaigns that wish to take an extra step to wind down their operations can, beginning June 7, file a notice of intent to dissolve with the Public Disclosure Commission.

The new option was part of Engrossed Substitute House Bill 2938, which amends RCW 42.17A.225 and RCW 42.17A.235 to create a dissolution process for committees that have ceased operations. The dissolution process is optional and not required for a candidate or political committee to be in compliance with RCW 42.17A following the filling of the committee's final report.

If a committee chooses to dissolve after filing a final report, it can submit a notice of intent at http://bit.ly/PDCdissolution beginning June 7.
By filing a notice, the committee will attest to the following:

• The committee has concluded its activities in all respects and has ceased to function and intends to dissolve;
• The committee has no outstanding debts or obligations, will not make any expenditure other than those related to the dissolution process, and will not engage in any political activity or any other activity that generates additional reporting requirements;
• The committee has filed a final report;
• No complaint or court action under RCW 42.17A is pending against the committee and it has not been informed by the commission of any possible violations or technical corrections which remain unresolved;
• The committee has no outstanding penalties under RCW 42.17A as assessed by the commission or a court;
• The committee accepts an ongoing obligation to maintain compliance with these conditions and an affirmative duty to notify the commission of any noncompliance;
• The committee understands that the committee's bank account may not be closed before the political committee has dissolved; and
• The treasurer is obligated to preserve books of account, bills, receipts, and all other financial records for five years, or as otherwise required by 42.17A.
• The notice of intent will be posted on the PDC's website.

If, 60 days after the committee filed this notice of intent to dissolve, it remains in compliance with the above requirements and has not notified the commission in writing that it revokes its intent to dissolve, the committee shall be deemed to be dissolved. The executive director will acknowledge by electronic writing the committee's dissolution, which will also be posted on the commission's website.

If the committee has not met the requirements for dissolution, the executive director will notify the committee by electronic writing and explain the reasons it is ineligible to dissolve.

Dissolution does not relieve the candidate, elected official, or officers from any obligations to address violations that occurred before the committee was dissolved.

Questions?
This guide is intended as a resource to aid compliance with ESHB 2938, and is not intended to replace applicable RCW or WAC provisions. The PDC encourages the public to consult ESHB 2938 and the emergency rules adopted by the Commission to implement ESHB 2938, which are available at our website: www.pdc.wa.gov/ESHB_2938_news.

PDC staff are available to answer questions. Email pdc@pdc.wa.gov with your questions or suggestions for how we might continue to improve our guidance resources.