Alexander E. Creel Senior Vice President Chief Lobbyist Governmental Affairs California Association of REALTORS® 2009 Association Presidents Leadership Symposium September 4, 2008

IAF, PAF, CREPAC, BORPAC, IMPAC, Local IMPAC, Member Mobilization, & Legislative Process Governmental Affairs

Political Contribution (P.C.) $ vs. Dues $ P.C. $ = Voluntarily given for the purpose of candidate contributions (REALTOR® Action Fund) Dues $ = Mandatory dues paid by all members for Association programs. ( Can be used for issues/ Cannot be used for Candidates)

What is IAF? (Issue Action Fund) Established in 1994, the Issue Action Fund (IAF) is $10.00, paid by members with their annual dues. IAF was created to promote and enhance C.A.R.’s public policy agenda.

How are IAF Dollars Used? IAF pays administrative costs for CREPAC/BORPAC (California Real Estate Political Action Committee/Board of REALTORS® Political Action Committee) and IMPAC (Issues Mobilization Political Action Committee). Remaining IAF funds are allocated to IMPAC.

What is PAF? (Political Activities Fund) Established in 1999, the Political Activities Fund (PAF) is $10.00, paid by members with their annual dues. PAFs Mission: “To enhance the California Association of REALTORS® political and legislative effectiveness by evaluating proposals and allocating funds in the following areas: member education; enhancements to the Member Mobilization Program; and other political activities.”

How are PAF Dollars Used? The majority of PAF dollars are used to educate REALTORS® on C.A.R.’s Governmental Affairs program and to encourage participation in all levels of government. (PAF Funding Examples: Capitol Reception, D.C. Reception, Golden “R” Reception, C.A.R. Field Representatives, Member Mobilization Activities and Educational Materials, RAF Fundraising Contests & Materials, etc.)

CREPAC & CREIEC

What is CREPAC? The California Real Estate Political Action Committee (CREPAC) contributes to state candidates for elected offices, current legislators or other state elected officials. CREPAC DOES NOT ENDORSE CANDIDATES

What is CREIEC? The California Real Estate Independent Expenditure Committee (CREIEC) conducts independent campaigns that educate constituents on why they should or should not vote for a particular candidate. These campaigns CAN NOT be coordinated in any way with a candidates’ campaign.

How Are Decisions Made for CREPAC & CREIEC? CREPAC and CREIEC are governed by Trustees, elected by C.A.R.’s Board of Directors, to make decisions for these PAC’s.

How are CREPAC & CREIEC Funded? 45% of REALTOR® Action Fund (RAF) dollars are allocated to CREPAC 15% of RAF dollars are allocated to CREIEC (**Beginning in % of RAF dollars will be allocated to CREIEC)

CREPAC/BORPAC Funding Flow Chart (2009) REALTOR® ACTION FUND (RAF) $197 $99 CREPAC/Federal $98 Allocated to State PACs 25% CREIEC $24.50 (California Real Estate Independent Expenditure Committee) 45% CREPAC $44.10 (California Real Estate Political Action Committee) 30% BORPAC $29.40 (Board Political Action Committee) * This chart only reflects personal contributions to RAF.

CREPAC Check Distribution State candidate checks are sent to local associations: Check delivery is coordinated with other local associations and Key Contacts.

BORPAC

What is BORPAC? BORPAC is a board of REALTORS® political action committee used by local associations in support of candidates for local elected office. BORPAC funds are held in a subaccount of the CREPAC account.

How is BORPAC Funded? 30% of state RAF dollars are allocated to local BORPACs. BORPAC funds are distributed to each AOR based on their collection of state RAF dollars.

BORPAC $.30 of every state PAC $1 collected goes into a local BORPAC sub-account. Example: Local AOR X collects $10,000 in state PAC dollars. Local AOR X would receive $3,000 in their local BORPAC sub-account.

BORPAC Balances BORPAC balances can be found in the Government Affairs section of the C.A.R.’s website in the CREPAC/ BORPAC section.

How to use BORPAC BORPAC candidate funding decisions are made at the local association level. BORPACs may contribute to any local level candidate (e.g. City Council, County Supervisor, City Treasurer, etc.). Note: BORPACs are encouraged to make recommendations on state candidates to CREPAC.

BORPAC Independent Expenditures (IE) Local AORs MUST notify and coordinate with C.A.R. staff and legal counsel on local IE Activities and Expenditures. All forms, minutes, and requests must be submitted to C.A.R. in advance of an expenditure. IE’s are not permitted to have any contact with the candidate.

BORPAC Requests Use the “Local BORPAC Funding Request Form” when applying for local BORPAC funds. This form can be found in the Government Affairs section of the C.A.R.’s website.

BORPAC Funding Request Form

FPPC Reporting Requirements Lobbyists: Report all expenditures advancing C.A.R.’s legislative agenda ($10 per month / per reportable). Lobbyist Employer: Reports all expenditures to advance C.A.R.’s legislative agenda ($390 per year / per reportable).

FPPC Reporting Requirements All 120 local AORs and C.A.R. together cannot exceed $390 in 2008 for “gifts” to reportable persons. So, we MUST keep a running total. Lobbyists: Registered to C.A.R. Lobbyist Employer: Includes all local AORs (aggregation rule)

Local AOR Expense Report

Exchanging BORPAC & IMPAC Funds

BORPAC/ IMPAC Exchange Program Permits a dollar-for-dollar exchange from one PAC fund to another. (e.g. association X’s local IMPAC dollars for association Z’s BORPAC dollars)

BORPAC/ IMPAC Exchange Program BORPAC Dollars = Candidate Support IMPAC Dollars = Issue Advocacy Note: While AORs may exchange BORPAC funds for IMPAC funds, AOR’s cannot use IMPAC funds for candidate contributions or IE purposes.

BORPAC/ IMPAC Exchange Program AORs willing to exchange local IMPAC and BORPAC funds must appear on a C.A.R. registry -To appear on the registry Boards must: -Obtain approval from local association -Send a letter to C.A.R.’s Accounting Staff that includes the amount and type of funds requested with a copy of the minutes authorizing the exchange -Include the appropriate funding request form to release the monies that will be exchanged (i.e. Use the “BORPAC Funding Request Form” to exchange BORPAC funds for IMPAC funds.)

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State IMPAC

What is State IMPAC? IMPAC is an issues mobilization political action committee with funding to support issue advocacy and legislative/ public education efforts at state and local levels.

How Are Decisions Made for State IMPAC? State IMPAC is administered by Trustees, who are elected by C.A.R.’s Board of Directors, to make decisions for these PAC’s.

How is State IMPAC funded? 70% of IAF, after PAC administration costs, is allocated to State IMPAC. The PAF allocation to State IMPAC = 5% of the state RAF dollars collected by CREPAC.

State IMPAC Funding Flow Chart C.A.R. Annual Dues Total $135 Political Activities Fund (PAF) $10 per member PAF allocation to IMPAC: 5% to State IMPAC* Issue Action Fund (IAF) $10 per member IAF pays ALL administrative costs for IMPAC & CREPAC/BORPAC The remainder of IAF is allocated to IMPAC: 70% to State IMPAC * 5% of the state RAF dollars.

State IMPAC Requests Use the “State IMPAC Funding Request Form” when applying to IMPAC. This form can be found in the Government Affairs section of the C.A.R.’s website. All funding requests must be received by C.A.R. at least 3 weeks before a scheduled meeting of the IMPAC Trustees.

State IMPAC Funding Request Form

What is an Interboard Solicitation? An interboard solicitation allows local AORs to solicit funding from other boards for issues at the local or regional level.

State IMPAC Interboard Solicitations Local AOR’s MUST obtain the approval of the IMPAC Trustees to conduct an interboard solicitation. Use the “State IMPAC Interboard Solicitation Form” when applying for approval. This form can be found in the Government Affairs section of the C.A.R.’s website.

State IMPAC Interboard Solicitation Form

Local IMPAC

What is Local IMPAC? Local IMPAC is a subaccount of IMPAC. These local association dollars can be used to support or oppose local policy initiatives and other local government affairs activities.

How are Local IMPACs funded? 30% of IAF is allocated, after PAC administrative costs, to Local IMPACs. PAF allocation = 10% of a local association's collection of state RAF dollars.

Local IMPAC Funding Flow Chart C.A.R. Annual Dues Total $135 Political Activities Fund (PAF) $10 per member PAF allocation to IMPAC: 10% to local IMPAC* Issue Action Fund (IAF) $10 per member IAF pays ALL administrative costs for IMPAC & CREPAC/BORPAC The remainder of IAF is allocated to IMPAC: 30% to local IMPAC** * PAF dollars are allocated to local IMPAC sub- accounts in an amount equal to 10% of a local association's collection of state RAF dollars, so local AORs receive $.10 of every state RAF dollar collected; e.g. Local AOR X collects $10,000 state RAF dollars. Local AOR X’s would receive $1,000. **Assume C.A.R. collects $1,000,000 ($200,000 admin. costs). The balance of $800,000 is split 70%(state)/30%(local). Giving local AORs $240,000 dollars to split based upon their membership; e.g. Local AOR X has 10% of C.A.R.’s total membership. Local AOR X would receive 10% of the $240,000 or $24,000.

Local IMPAC Balances Local IMPAC balances can be found in the Government Affairs section of the C.A.R.’s website in the State and Local IMPAC section.

Use Local IMPAC, for: -Ballot measure campaigns -REALTOR® issue mobilization campaigns -Dues & contributions to coalitions, receptions, events & conferences -Advocacy & policy education -Policy research & consulting services -Travel, meals & receptions - associated with supporting or opposing an issue.

Local IMPAC DONT’S Local IMPAC funds can not be used: -To contribute to candidates for office -For routine local association business expenses

Local IMPAC Requests Use the “Local IMPAC Funding Request Form” when applying for reimbursement for issue related activities. This form can be found in the Government Affairs section of the C.A.R.’s website.

Local IMPAC Funding Request Form

PACs Re-Cap

CREPAC/BORPAC Funding Flow Chart (2009) IAF pays ALL administrative costs for IMPAC & CREPAC/BORPAC REALTOR® ACTION FUND (RAF) $197 $99 CREPAC/Federal $98 Allocated to State PACs 25% CREIEC $24.50 (California Real Estate Independent Expenditure Committee) 45% CREPAC $44.10 (California Real Estate Political Action Committee) 30% BORPAC $29.40 (Board Political Action Committee) NOTE: All BORPAC funds are allocated based on a local association's collection of state RAF dollars. * This chart only reflects personal contributions to RAF.

IMPAC Funding Flow Chart C.A.R. Annual Dues Total $135 Political Activities Fund (PAF) $10 per member * PAF allocation to IMPAC: 10% to local IMPAC 5% to State IMPAC Issue Action Fund (IAF) $10 per member IAF pays ALL administrative costs for IMPAC & CREPAC/BORPAC The remainder of IAF is allocated to IMPAC: 70% to State IMPAC 30% to local IMPAC (based on membership) * PAF dollars are allocated to State IMPAC based on 5% of the states collection of state RAF dollars. PAF also allocates funds to local IMPAC sub-accounts based on 10% of a local association's collection of state RAF dollars.

Member Mobilization

Legislative Liaisons: REALTOR® Volunteers who sign up to be leaders in their community. Legislative Liaisons are kept up-to-date on the latest legislative and political issues affecting So … What is a Legislative Liaison? REALTORS® and are asked to share their knowledge with their colleagues.

Legislative Liaison Benefit Liaisons recieve the Virtual Advocate and Networker

Legislative Liaison Liaisons may be requested to contact their state legislator to request action on a bill.

RED ALERT Red Alerts are requests to REALTORS® for specific action in the support of or opposition to state legislation.

What is a Key Contact? REALTOR® volunteers appointed to strengthen relationships between state legislators and C.A.R. KC’s assist in the delivery of CREPAC candidate checks to state legislators KC’s arrange local meetings with elected representatives throughout the year

Local Associations & Member Mobilization Local Associations are: -Always copied on Red Alerts -Asked to assist Key Contacts in arranging meetings with state legislators -Requested to help mobilize members -Sometimes asked to send a letter supporting C.A.R.’s position to the legislature

Government Affairs Field Program C.A.R. Field Representatives are available to visit local associations to promote REALTOR® participation at all levels of government.

Government Affairs Field Program -Encourage member participation in the Legislative Liaison Program -Promote RAF, Legislative Day and Voter Registration -Assist members responding to Red Alerts -Provide brief legislative updates -Offer general political information to encourage member participation Field Representative Outreaches:

The Field Representatives Rian Barrett Area: Central California Phone: (916) Laiza Garcia Area: Coastal California Phone: (916) Matt Garth Area: Los Angels Area Phone: (310) Lynn Movroydis Area: OC & San Diego Phone: (919)

Legislative Process

California Legislature -Approximately 3,100 Bills Are Introduced in First Year of Session -Approximately 5,500 Total Bills Are Introduced In a Two Year Session -C.A.R. Tracks Approximately 1,500 Bills

C.A.R. Policy Development - Policy Committees - Board of Directors - Leadership Team

How to Get an Issue on C.A.R.’s Policy Agenda C.A.R. Leadership (i.e. C.A.R. Officers and Policy Committee Chairs) can bring issues before the policy committees; The issue is placed on the agenda in response to a bill pending in the State Legislature; or, A local association passes a Board Resolution to bring the issue before a C.A.R. policy committee for consideration.

C.A.R. Policy Implementation -Lobbyists -Grassroots -Key Contact/ Legislative Liaisons

C.A.R. Policy Actions -Sponsor Legislation -Support or Oppose -Seek Amendments -Monitor or Watch

Advocacy - Lobbyists Make Sure That: -“Good Laws” (What C.A.R. Wants) – Get Passed! -“Bad Laws” (What C.A.R. Doesn’t Want) – Get Defeated!

The Legislative Process “ How a Bill Becomes a Law” 1 st H O U SE Policy Committee Fiscal Committee Floor 2 nd H O U SE Policy Committee Fiscal Committee Floor GOVERNORGOVERNOR UN-AMENDED AMENDED

Questions?