Realtors PAC Probably Getting Big Break on Fines for Campaign Finance Violations

No harm, no foul.

Well, sort of.

An active Anchorage-based political action committee is most likely receiving a 99 percent reduction in potential civil fees for violations of the state’s campaign finances laws should an agreement reached between representatives of the Alaska Public Offices Commission and attorneys representing the Alaska Realtors Political Action Committee be approved.

The issue is being presented at Friday’s regular meeting of the commission.

In short, the realtors PAC might have to pay only $24,381.50 instead of the $2,438,150.00 APOC officials have found the group liable for under state law.

“Although the violations in this case are very serious and troubling, ARP (realtors PAC) has done everything in its power to remedy the violations,” APOC staff wrote in the consent agreement signed at the end of August by Heather Hobdon, APOC executive director; Mary Lynn Macsalka, APOC attorney; Ulriks Urner Johnson, chair of the Alaska Realtors Political Action Committee; and Thomas Amodio, attorney representing the realtors PAC.

The huge reduction is because according to findings by APOC’s Thomas R. Lucas, campaign disclosure coordinator, the realtors PAC self-reported its violations and the “maximum penalty is significantly out of proportion to the degree of harm to the public,” as written in a consent agreement for case No. 18-05-CD, APOC Staff, complaint vs. Alaska Realtors Political Action Committee, respondent, posted for consideration at the Sept. 14, 2018 meeting.

According to APOC records, on July 26, 2018, APOC sent Mark Masley, the most recent past president of the Alaska Assoc. of REALTORS ®, a letter via snail mail and email informing him of the alleged five violations APOC staff would be investigating.

The list of violations includes the following:

Receiving non-monetary contributions of auction items from July 25, 2013 through April 13, 2015 without preserving records of receiptFailure to report non-monetary contributions received from July 25, 2013 through April 13, 2015Failure to report non-monetary contributions received from April 14, 2015 through Dec. 7, 2016 until Aug. 8, 2017Receipt of excessive contributions received between July 25, 2013 and April 13, 2015 from individuals that the realtors PAC cannot identifyReceipt of excessive contributions received between April 14, 2015 and Dec. 7, 2016 not returned to the appropriate individuals until July 2, 2017

The excessive contributions violations resulted from individuals donating more than the state limit of $500 per person to a group that is not a political party. State law requires the excess contribution be returned by the group within ten days of receipt.

If the treasurer of a non-political party group cannot identify who the excess contribution came from, state law requires the amount be given to state government.

In self-reporting the excess contributions violations, the realtors PAC had $12,511.57 in funds for which it could not identify a source, according to APOC reports.

The realtors PAC has agreed to forfeit that amount to the state.

In reviewing its 2015 and 2016 records, representatives from the realtors PAC were able to pinpoint $16,969.00 in excessive funds for which donor identity was available. According to APOC reports, those funds have been returned to the appropriate donors.

Under state law the realtors PAC could have been fined the following:

$392,700 for failing to report the excessive donor contributions in 2015 and 2016 that the organization was able to identify$1,759,050 for failing to report the excessive donor contributions in 2013 and 2014 that the organization was not able to identify$43,950 for 879 penalty days at $50 per day of fines were not returning excess monetary donations to identifiable contributors in 2015 and 2016$151,150 for 3,022 penalty days for excessive contributions in 2013 and 2014 that were not reported to state authorities$91,300 for 1,866 days of failure to preserve records

APOC officials have said the oversight agency does not believe the maximum penalty should be upheld in this case.

“In his case, ARP self-reported its violations as soon as it learned that it should have been reporting non-monetary auction items contributions and counting those contributions toward the $500 maximum annual contribution allowed from individuals,” APOC officials wrote in the consent agreement. “ARP then went through the painstaking process of gathering the information it had from previous auctions, amending its 2015 and 2016 report and determining with new information which contributors exceeded the $500 annual limit.”

The realtors PAC is active in municipal elections across the state including Anchorage promoting candidates with platforms protecting private property rights and often lobby Juneau during the legislative session.

In other APOC business scheduled for Friday’s meeting, the complaint against Liz Vazquez, who lost the Republican primary for State House District 22 on Aug. 21, 2018, by Chaz Thomas Rivas alleging she ran her campaign under more than one name and failure to place “paid for” identifiers on social media and donation pages of her website is also up for review.

Rivas is a writer for the Alaska Landmine – an online conservative-leaning publication.

In an Aug. 18, 2018, letter written by Lucas to summarize APOC’s findings in the Vazquez case, investigators determined one day of violation for a Dec. 29, 2017 email sent without a proper identifier.

State law carries a $50 penalty.

Read more about the Alaska Realtors Political Action Committee case online at http://aws.state.ak.us/ApocReports/Paper/CommissionComplaints.aspx. Enter “18-05-CD” in the complaint number box to display all related documents.

Reach Amy Armstrong via email at: authoramyarmstrong@gmail.com.