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Alexander E. Creel Senior Vice President Chief Lobbyist Governmental Affairs California Association of REALTORS® GAD Institute 2009 August 26, 2009.

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Presentation on theme: "Alexander E. Creel Senior Vice President Chief Lobbyist Governmental Affairs California Association of REALTORS® GAD Institute 2009 August 26, 2009."— Presentation transcript:

1 Alexander E. Creel Senior Vice President Chief Lobbyist Governmental Affairs California Association of REALTORS® GAD Institute 2009 August 26, 2009

2 IAF, PAF, CREPAC, LCRC, IMPAC & Local IMPAC Fundraising

3 Political Contribution (P.C.) $ vs. Dues $ P.C. $ = Voluntary: candidate contributions (REALTOR® Action Fund) Dues $ = Mandatory: association programs ( Can be used for issues/ NOT Candidates)

4 What is IAF? (Issue Action Fund) 1994, IAF = $10 paid by members with dues, created to promote and enhance C.A.R.’s public policy agenda.

5 How are IAF Dollars Used? IAF pays administrative costs for CREPAC/BORPAC and IMPAC Remaining IAF funds allocated to IMPAC

6 What is PAF? (Political Activities Fund) 1999, PAF = $10 paid by members with 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.”

7 How are PAF Dollars Used? PAF dollars primarily 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.)

8 CREPAC & CREIEC

9 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

10 What is CREIEC? The California Real Estate Independent Expenditure Committee (CREIEC) conducts independent campaigns. These campaigns CAN NOT be coordinated in any way with a candidates’ campaign.

11 How are CREPAC & CREIEC Funded? 45% of REALTOR® Action Fund (RAF) allocated to CREPAC 25% of RAF allocated to CREIEC

12 CREPAC/LCRC 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% LCRC $29.40 (Board Political Action Committee) * This chart only reflects personal contributions to RAF.

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

14 BORPAC Local Candidate Recommendation Committee (LCRC)

15 What is a LCRC? LCRC is a local AOR committee that supports candidates for local elected office and makes recommendations to CREPAC on state candidates. LCRC funds are held in a subaccount of the CREPAC account.

16 How is a LCRC Funded? 30% of state RAF dollars are allocated to LCRCs. LCRC funds are distributed to each AOR based on their collection of state RAF dollars.

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

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

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

20 LCRC 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.

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

22 LCRC Funding Request Form

23 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 ($420 per year / per reportable).

24 FPPC Reporting Requirements All 116 local AORs and C.A.R. together cannot exceed $420 in 2009 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)

25 Local AOR Expense Report

26 State IMPAC

27 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.

28 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.

29 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/LCRC 70% of remaining IAF allocated to State IMPAC * 5% of the state RAF dollars.

30 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.

31 State IMPAC Funding Request Form

32 What is an Interboard Solicitation? Local AORs solicit funding from other boards for issues at the local or regional level.

33 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.

34 State IMPAC Interboard Solicitation Form

35 Local IMPAC

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

37 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.

38 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/LCRC 30% of remaining IAF allocated 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.

39 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.

40 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.

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

42 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.

43 Local IMPAC Funding Request Form

44 PACs Re-Cap

45 CREPAC/LCRC Funding Flow Chart (2009) IAF pays ALL administrative costs for IMPAC & CREPAC/LCRC 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% LCRC $29.40 (Board Political Action Committee) NOTE: All LCRC funds are allocated based on a local association's collection of state RAF dollars. * This chart only reflects personal contributions to RAF.

46 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/LCRC The remainder of IAF is allocated: 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.

47 Legislative Challenges

48 2009 Legislative Challenges Super Agency Appraisal Mgmt. Co’s. Water Retrofit Carbon Monoxide Energy Retrofit Property Profiles 3% Witholding Title Co. Advertising Advanced Fee Clarification Buyers Choice One Sided Attorney Fees Ellis Act Repeal

49 C.A.R. 2010 Homebuyer Tax Credit – SB 206 (Dutton) Anti-Deficiency/ Refis – Pending CID Right to Rent – Pending Pre-empt Vacant Property Ordinances – Pending AMC/ Conflicts of Interest – October IBP Restrictive Covenants – October IBP

50 2010 Threats State Budget $20 Billion?? Service Tax Flat Tax Transfer Tax Split Roll 3% Witholding Other ? ? ? Real Estate Finance? Point-of-Sale Agency Etc.

51 Redistricting

52 XX O X X X O O O Drawing District Lines

53 Redistricting – District Creation XX O X X X O O O District 1District 2District 3

54 Redistricting – District Creation XXO X X X O O O District 1 District 2 District 3

55 Redistricting – District Creation XX O X X X O O O District 1 District 2 District 3

56 Proposition 11 – Redistricting Approved by 50.9% of the voters -All districts must be geographically compact -Redistricting plans will be drawn by a 14 member Citizens Commission (Congressional districts not included) -Redistricting Commission comprised of registered voters (5 Democrats, 5 Republicans and 4 unaffiliated voters) -Disqualified if: Applicant or family member was a candidate for state or federal office, a lobbyist, a political party employee or contributed over $1,999 to a candidate within the last 10 years.

57 Proposition 11 – Redistricting Approved by 50.9% of the voters -Review panel will narrow the Commission applicants to 60 -State Auditor will randomly draw first 8 commissioners who will select the last 6 -Redistricting plan certification requires 9 commission member votes and voter approval -If the commission does not approve a final map, or is rejected by the electorate: -California’s Supreme Court will adjust the redistricting plan to adhere to the district boundary requirements and the map will be certified

58 Primary

59 Current: Primary System Individuals that identify a political affiliation when registering to vote are eligible to vote in that parties primary election (i.e. democrat, republican, libertarian, etc.)

60 Open Primary – June 2010 Ballot -Requires ALL candidates to be listed on a single primary election ballot -Top 2 candidates would appear on the general election ballot -Political parties could only restrict voting on party officers and presidential nominees

61 Moderates in the Middle

62 The Mod. Dem. Project 2010 Open Seats: 32 Possible Moderates: 8 The Mod. Dem. Project 2010 Coalition CDAChevron CHACBIA CJACPIF CCCC.A.R.

63 Dues Billing & RAF

64 2009 Dues Billing Statement

65 Required PAC Disclosure Information

66 Questions?

67

68 Exchanging LCRC & IMPAC Funds

69 LCRC/ 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 LCRC dollars)

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

71 LCRC/ IMPAC Exchange Program AORs willing to exchange local IMPAC and LCRC 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 “LCRC Funding Request Form” to exchange LCRC funds for IMPAC funds.)

72

73 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.

74 Member Mobilization

75 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.

76 Legislative Liaison Benefit Liaisons recieve the Virtual Advocate and Networker

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

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

79 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

80 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

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

82 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:

83 The Field Representatives Rian Barrett Area: Central California E-mail: rianb@car.orgrianb@car.org Phone: (916) 248-0981 Laiza Garcia Area: Coastal California E-mail: liazag@car.orgliazag@car.org Phone: (916) 832-3522 Matt Garth Area: Los Angels Area E-mail: mattg@car.orgmattg@car.org Phone: (310) 809-0372 Lynn Movroydis Area: OC & San Diego E-mail: Lynnm@car.orgLynnm@car.org Phone: (919) 285-3276

84 Legislative Process

85 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

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

87 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.

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

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

90 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!

91 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

92 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.


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