Office of the City Clerk

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October 22, 2013

VIA CERTIFIED MAIL Mr. Lee Miller, Attorney at Law 1702 E. Highland Avenue Suite 204 Phoenix, AZ 85016-4665 RE: Campaign Finance Complaint Dear Mr. Miller: Thank you for your timely response to my October 14, 2013, and October 15, 2013, letters regarding campaign finance complaints filed against your clients, the Scottsdale Area Association of Realtors and the “Scottsdale’s Quality of Life Matters in Support of Questions 1, 2, 3, & 4” (Scottsdale’s Quality of Life Matters) political committee, that were filed with the City Clerk’s Office on October 11 and 15, 2013. The October 11, 2013 complaint alleges that the Scottsdale Area Association of Realtors conducted push polling in an attempt to influence the outcome of the City’s November 5, 2013 Special Election without providing the proper “paid for by” disclosure. The October 15, 2013 complaint alleges that Scottsdale’s Quality of Life Matters failed to provide 24-hour written notice of contributions totaling ten thousand dollars or more from a single source as required by A.R.S. § 16-914.01. On October 21, 2013, you filed, on behalf of your clients, a written response to the complaints indicating that: (1) Scottsdale’s Quality of Life Matters acknowledges some of the required “paid for by” disclosures were incomplete; and (2) the National Association of Realtors contributed more than $10,000 to Scottsdale’s Quality of life Matters on September 27, 2013, and the notice of the contribution was filed on October 14, 2013. A.R.S. §16-912.01(A) requires that any literature or advertisement in support of or opposition to a ballot proposition shall include (emphasis added) on the literature or advertisement the words "paid for by", followed by the name of the committee as it appears on its statement of organization. A.R.S. §16-912.01(A) further requires that the disclosure include the four largest of its major funding sources as of the time the literature or advertisement is printed, recorded or otherwise produced for dissemination. If a political committee has fewer than four major funding sources, the committee shall disclose all major funding sources.

Mr. Lee Miller, Attorney at Law October 22, 2013 Page 2 of 2

A.R.S. §16-912.01(B) defines a “major funding source” as any contributor that is not an individual person and that has made cumulative contributions of ten thousand dollars or more for an expenditure in support of or opposition to a ballot proposition of a political subdivision with a population of one hundred thousand persons or more. A.R.S. §16-914.01(B) requires a committee acting in support of or opposition to the qualification, passage or defeat of an initiative or referendum or any other ballot measure, question, or proposition to give notice to the local filing officer who is responsible for receiving campaign finance reports the first time the committee receives contributions totaling ten thousand dollars or more from a single source. A.R.S. §16-914.01(C) requires that the notices prescribed by A.R.S. §16-914.01 shall be filed within twenty-four hours, excluding Saturdays, Sundays, and other legal holidays, after the contribution threshold has been reached. Based on my review of the complaints, your response, and A.R.S. §16-912.01 and A.R.S. §16-914.01, this office has determined reasonable cause exists to believe that there have been violations of Arizona campaign finance laws. Therefore, by copy of this letter, this office is notifying the City Attorney of said violations and advising you that the City Attorney may take additional action. If you have questions concerning this matter, please feel free to contact me. Sincerely,

Carolyn Jagger, MMC City Clerk

c:

Jennifer Pollock, Assistant City Attorney Bruce Washburn, City Attorney Patrick Jones, Chairman, Scottsdale’s Quality of Life Matters Rebecca Grossman, CEO, Scottsdale Area Association of Realtors Kathy Littlefield John Washington