Mitchell, Kristina: Alleged Violations of RCW 42.17A.220, .235, and .240 for failure to timely and accurately disclose contribution and expenditure information on reports and for accepting contributions over the $500 anonymous limits. (EY23, June23)

Case

#139348

Respondent

Kristina Mitchell

Complainant

Paula Townsell

Description

A complaint was filed against Kristina Mitchell, a candidate seeking the office of Snohomish County Council, Position #2 in 2023, alleging that the 2023 Kristina Mitchell Campaign violated: (1) RCW 42.17.220 by receiving, depositing, and reporting anonymous contributions that exceeded the statutory allowable limits; and (2) RCW 42.17A.235 and .240 for failure to timely and accurately file contribution and expenditure reports for the 2023 Campaign.

On May 21, 2023, Kristina Mitchell filed a Candidate Registration with the PDC declaring her candidacy for election to the office of Snohomish County Council, Position #2, selecting the Full Reporting option, and listing herself as Campaign Treasurer. Ms. Mitchell is a first-time candidate seeking public office in 2023.

Specifically, the complaint alleged that the that the 2023 Kristina Michell for County Council Campaign (Campaign) disclosed receiving $4,169 in total anonymous contributions, that amount significantly exceeded the anonymous contribution limits, and represented almost 25% of the total contributions initially disclosed by the Campaign. In addition, you alleged the Campaign failed to provide the addresses for several contributors and Campaign vendors disclosed on the C-3 and C-4 reports.

In her response, Ms. Mitchell stated that the allegation in the complaint concerning exceeding the anonymous contribution limits were incorrect and her Campaign did not really receive or deposit that amount, and they were instead pledges that had been made by individuals to her Campaign. She confirmed her Campaign did not receive or deposit that large number of anonymous contributions, and that most of the funds initially disclosed as anonymous, had been incorrectly entered by her into the Online Report of Campaign Activities (ORCA) program and were actually pledges received by her Campaign.

Ms. Mitchell stated that the pledges from contributors came with the caveat or contingency that the pledges would be paid or otherwise redeemed only if the Campaign met the goal of making it onto the general election ballot.

The Campaign incorrectly filed a June 2023 C-4 report early on June 11, 2023, despite being under the accelerated reporting requirement and required to file a 21-day and 7-day Pre-Primary C-4 reports. The C-4 report that was filed by the Campaign contained several errors and disclosed a total of $16, 2145 in total contributions received that included $9,300 in new monetary contributions received, $1,200 in in-kind contributions received, and $11,165 in total expenditures that included $5,875 in new expenditures and a cash on hand balance of $5,049.

Ms. Mitchell stated she believed she went through and fixed the errors that occurred when she was re-entering the contribution and expenditure information into the ORCA program. The Campaign filed the June amended C-4 and the amended C-3 reports on July 5th, 7th, 8th, 9th, and the 20th, attempting to correct the incorrect information disclosed on the prior reports.

Ms. Mitchell acknowledged that she had no experience with ORCA or the candidate reporting requirements as a first-time candidate and treasurer. She confirmed the issues she had in using ORCA were with the “Pledges, In-kind, and Non-monetary donations” screen, and that when she attempted to enter the pledged information into the program, not knowing what she was doing she somehow entered the pledges information as anonymous contributions and filed the reports.

Ms. Mitchell thought she followed the prompts to enter the information, but noted the ORCA “software does not allow you to move to the next step if you are in the wrong tab.” She stated ORCA allowed her to leave “detailed notes” on the C-4 reports, which PDC’s review confirmed that she did do to clarify that the reports contained errors.

Ms. Mitchell stated that in addition to the anonymous contribution issues she had, other information she entered into ORCA incorrectly, ended up disclosing those activities as “in kind donations” and as such they were automatically included as an expenditure. She “was confused why it did that in ORCA program rather than entering the information into the pledges tab.” And what was really confused to her was when she saw the complaint was alleging report discrepancies for the total contributions received which was “something like 17k dollars.”

Ms. Mitchell stated that there was “no way have I been that lucky to have raised hat much money. But what was a concern to me is the amount the report said I had spent. There was no way I had spent 14k dollars either.” She stated that none of the pledges that were incorrectly reported by her as anonymous contributions “have been collected” and that she incorrectly reported that “all wrong” when they were listed as anonymous contributions.

Ms. Mitchell stated she “made a mistake, and the system (sic meaning ORCA) did its own thing” and she reiterated that she included the notes at the bottom of the C-4 reports acknowledging that she was aware the information being disclosed was not accurate. She stated that she added the notes listed on the reports so that the public would have record of it in her reports, and that her “intent was not to mislead.”

The final amended C-3 and C-4 reports that were filed by the Campaign on July 20, 2023, 10 days prior to the August 1, 2023 primary election being held, disclosed the Campaign raised $4,394.99 in total contributions received and $2,607 in total expenditures made.

Those contribution and expenditure totals filed on the amended reports are almost four times less than the total contributions and expenditures initially reported in June of 2023, so the public was likely confused by the discrepancies in the totals…(Peter not sure if this is needed, and if yes how we wanted to word this since it ties in with the WAC 390-37-143 which I cite below).

Based on these findings, PDC staff found no evidence of a violation that would require conducting a more formal investigation into the complaint or pursuing further enforcement action in this instance. As noted above, Ms. Mitchell is a first-time candidate for public office, served as her own Treasurer, and acknowledged that the $4,169 in total anonymous contributions initially disclosed by the Campaign were listed in error. She stated that those contributions were never received but were instead verbal pledges that she received from contributors to the Campaign and were below the $200 disclosure threshold for pledges.

After being informed of the complaint, the anonymous contributions limits and that it appeared there were discrepancies and incorrect information included on the C-3 and C-4 reports filed by the Campaign, Ms. Mitchell’s Campaign filed amended C-3 reports correcting the previously disclosed anonymous and monetary contribution totals and the C-4 reports for the proper contribution and expenditure totals.

WAC 390-37-143(2)(d) states that aggravating or mitigating factors can be analyzed to assist in determining the resolution of a particular matter, include the following: “The impact on the public, including whether the noncompliance deprived the public of timely or accurate information during a time sensitive period, or otherwise had a significant or material impact on the public.”

In accordance with WAC 390-37-060(1)(d) and the rule referenced above, PDC staff is issuing a formal written warning to Kristina Mitchell concerning the requirement to timely and accurately file C-3 and C-4 reports, properly enter the contribution and expenditure information into the ORCA program, and to adhere to the anonymous contribution limits, in all future Campaigns. The Commission will consider the formal written warning in deciding on further Commission action if there are future violations of PDC laws and rules.

PDC staff is dismissing this matter in accordance with RCW 42.17A.755(1).

Disposition

Case Closed with Written Warning

Date Opened

July 07, 2023

Areas of Law

RCW 42.17A.220, RCW 42.17A.235, RCW 42.17A.240