Office of Administrative Hearings 1400 Was Wasaga, Suit 10 - Ph Aim 85077 Teepaae (60) 342 928 FAX 61029827 Janice K, Brewer Cliff J. Vanell Governor Director May 26, 2008 Karen Osborne, Elections Director Maricopa County Department of Elections 111 S. 3rd Avenue, #102 Phoenix, AZ 85003 Re: 08A-0001-MCDE In the Matter oft JOEL FOX dba SCA, Petitioner. Dear Ms. Osborne: Please find the decision of the Office of Administrative Hearings for the above entitled matter. Sincerely, ’) af Clift Ih Direct ‘Mission Statemeat: We will contribute to the quality of life ia the State of Arizona by impartially hensing the contested matters of ous lellow citizens arising out of State regulation, 81/28 BON Tetepsezaa = 60:41 600z/92/501 IN THE OFFICE OF ADMINISTRATIVE HEARINGS 3||In the Matter of: No. 08A-0001-MCDE 4 || JOEL FOX dba SCA Petitioner ADMINISTRATIVE LAW JUDGE . DECISION g HEARING: March 31, 2008; record held open until May 5, 2009 iy APPEARANCES: Joel Fox on behalf of Joel Fox d.b.a. SCA; Attomey Jeffrey "')| Messing of Poli & Ball, P.L.C. for Maricopa Gounty a ADMINISTRATIVE LAW JUDGE: Thomas Shedden " The Maricopa County Department of Elections issued a Compliance Order '§]/ alleging that Mr. Joe! Fox, d.b.a. SCA, had violated the State's election laws. The "8|| County seeks civil penalties. Mr. Fox requested a hearing at which evidence and legal 7) argument were taken. a4 ‘The County met the burden of persuasion to show that Mr. Fox d.b.a. SCA "S| violated A.R.S. § 16-913(8)(2) and is subject to a $450 civil penalty for that violation, 20|/ The Gounty met the burden of persuasion to shaw that Mr. Fox d.b.a. SCA is in 211] violation A.R.S. § 16-904(\), which requires certain records to be provided to the 22|/ County. The County did not meet the burden of persuasion ta show that Mr. Fax d.b.a. 231/ SCA is subject to a $315,000 civil penalty issued pursuant to A.R.S. § 16-904(J) 241] because the Compliance Order issued in this matter did not canform to the requirement 251| in A.R.S. § 16-924 that Mr. Fox d.b.a. SCA be afforded 20 days to come into 25|| compliance. a7 Based on the evidence of record, the Administrative Law Judge makes the 28 || following Findings of Fact, Conclusions of Law and Order: = ene ee 0 oaks Arana 85007 iia at/eo Bd Tetersezes = s8:4T 60ez/9z/S0EINDINGS OF FACT 1. On December 31, 2008, the Maricopa County Department of Elections (the “County’) issued a Notice of Hearing setting the above-captioned matter for February 4, 2009, 5 2. The Notice of Hearing provided that the “issue ta be addressed at the hearing is whether Petitioner [Joel Fox d.b.a. SCA] violated the requirements of A.R.S. §§ 16-904 and 16-813(B)(2)[_] IF so, did the Compliance Order in this case properly impase clvil penatties?” 3. The matter was continued and was convened on March 31, 2009. The record was held open until May 5, 2009, to allow for submission of post-hearing legal argument. BACKGROUND 4. The Arizona Republican Party received fram an entity known as SCA a check for $80,000 dated August 21, 2008, and a check for $25,000 dated September 10, 2008. Mr. Joel Fax signed the two checks. 5. On Octaber 14, 2008, Maricopa County received a Complaint from the Arizona Democratic Party alleging that SCA and the Arizona Republican Party had violated state elections law. See Exhibit 1 (Complaint, admitted as part of the administrative record, but not for the truth of any matter asserted therein). The Complaint was also filed with the Arizona Secretary of State. 6. On October 18, 2008, the Arizona Republican Party refunded $105,000 ta SCA. 7. Ina letter dated October 20, 2008, the State Election Director, Joseph Kanefield, requested that the Republican Party file a Response to the Complaint. See Exhibit 2. * 18. On October 20, 2008, Maricopa County Director of Elections, Karen shore, “in accordance with A.R.S. § 16-924" found that there was reasonable cause to believe *"|| that SCA had violated A.R.S. §§ 16-902.01 (by failing to register as a political * |! committee); 16-907(B) (earmarking contributions); and 16-916 (failing ta file campaign finance reports). See Exhibit 4. BI/Pa avd Tetepsezas = GB:ZT 6A0z/9z/S0