POLI & BALL. PLLC. 2909 NORTH 44TH STREET, SUITE $00 PHOENIX, ARIZONA 85018 (602) 840-1400 Jefitey Messing, #009768 Poli 3590 ost 4th Sieet, Suite 500 Phoenix, Arizona 85018 (602) 840-1400 Special Counsel to Maricopa County Attorney's Office ARIZONA SUPERIOR COURT MARICOPA COUNTY JOEL FOX, No. 1.€2009-000431 Plaintiff, v. DEFENDANTS’ RESPONSE TO PLAINTIFF'S MOTION TO STAY MARICOPA COUNTY RECORDER’S | AGENCY DECISION OBFICE, 9 county agency, HELEN PURCELL, C her official’ ial capacity, M MARICOPA COUNTY ePMENT Ol (Assigned to the Honorable ELECTIONS, a county a ancy, KAREN | “Robert C. Houser) OSBORNE, Director, in her official capacity, Defendants Defendants hereby respond to and oppose Mr. Fox’s Motion to Stay the Maricopa County Department of Elections May 27, 2007 Decision, That Decision required Mr, Fox to pay a $450.00 fine which he has paid. It also required him to produce copies of the records A.R.S. § 16-904 required him to maintain as the Treasurer of SCA, A.RS. § 12-911(A)(1) does give the Court the power to stay an agency decision “in whole or in part pending final disposition of the case,” but only “for good cause shown.” As discussed below, Plaintiff did not and cannot establish good cause to stay the Department’s Decision in this case. Mr. Fox’s Motion should, therefore, be denied.POLI & BALL, PLC. (602) 840-1400 2999 NORTH 44TH STREET, SUITE 500 PHOENIX, ARIZONA 85018 20 21 22 23 24 25 26 Background Mr. Fox filed this action to appeal the May 27, 2009 Final Decision of the Maricopa County Elections Department. ‘The underlying administrative action grew out of Mr. Fox’s refusal to comply with the disclosure and reporting requirements of Arizona’s Campaign Contribution and Expense laws. See A.R.S. § 16-901 ef seq. The Arizona Republican Party received two checks from an entity identified only as “SCA.” One check for $80,000.00 was dated August 21, 2008, the second for $25,000.00 was dated September 10, 2008. Mr. Joel Fox signed both checks. ALJ at ql On October 14, 2001, the Arizona Democratic Party filed a Complaint with the Maricopa County Elections Department alleging that SCA’s contributions to the Republican Party violated several provisions of Arizona law. On October 30, 2008, Maricopa County Director of Elections, Karen Osborne, “in accordance with A.RS. § 16-924” found that there was reasonable cause to believe that SCA had violated ARS, §§ 16-902.01, 16-907(B) and 16-915. See Exhibit 4.? Generally, such reasonable cause findings are referred to the County Attorney’s Office. In this case, the County Attorney's Office had a conflict of interest as the Complaint included allegations relating to the then-ongoing election campaigns for Maricopa County Attorney. In order to resolve that conflict, on November 14, 2008, the County Attorney formally appointed the law firm of Poli & Ball, P.L.C., as counsel, in ! ‘The abbreviation ALJ at |____ will be used to reference paragraphs in the recommend decision. ? Exhibit cites are to the Exhibits admitted below.POLI & BALL, PLC. 2999 NORTH 44TH STREET, SUITE 500 (602) 840-1400, PHOENIX, ARIZONA 85018 28 26 his place for the County Recorder/Department of Elections in connection with The Arizona Democratic Party v. Arizona Republican Party matter. See Exhibit C3 By letter dated November 12, 2008, this office provided Mr. Fox a copy of the Complaint and the Arizona Republican Party’s previously filed response to the State Election Director, That letter asked Mr. Fox to respond to the allegations. ALJ at | 10. Mr, Fox responded to that letter and denied the allegations of the Complaint, but admitted that SCA was a group of individuals who had contributed money to a common fund over which Mr. Fox had sole discretion, Mr. Fox also admitted he sent the checks to the Arizona Republican Party, but denied it was a “contribution” or that SCA was a “Political Committee.” ALJ at ff 11-13. Ina letter dated November 24, 2008, this office informed Mr. Fox that regardless of the original intent, once Mr. Fox made the decision to donate money to the Republican Party, he transformed SCA into a Political Committee because SCA was a combination of persons conducted for the purpose of influencing the result of any election. ALI at 14. That letter also informed Mr. Fox that as SCA’s de facto treasurer, he was responsible for the recordkeeping requirements set out in A.R.S. § 16- 904, ‘The letter formally requested that Mr. Fox provide the records required to be kept under A.R.S. § 16-904(D), (F), (G) and (H). ALJ at 15. Among other things, those records would reveal the identities of the contributors and the amount(s) of their contributions. Mr. Fox refused to provide the requested records and afier several additional exchanges, this office issued a Compliance Order pursuant to A.R.S. § 12-924. See ALJ ? Maricopa County had saagoul, entered into acon tract dated June 18, 2008, with the law firm of Poli & Ball, P.L.C. for Supplemental Specialty Legal Services. See Exhibits A (Contract) and B (Certification ‘Minutes by Office of the Clerk, Board of Supervisors).