Georgia Government Transparency & Campaign Finance Commission29TH BIENNIAL INSTITUTE FOR GEORGIA LEGISLATORS

TUESDAY, DECEMBER 9, 2014

Current Case Count Active Cases under Investigation by the Commission:

◦ 183 cases as of September 30, 2014◦ 193 cases as of December 01, 2014◦ An increase of 9.5% in 60 days (citizen initiated complaints only).

Cases Referred to the Attorney-General’s Office for Prosecution:◦ 30 cases as of September 30, 2014◦ 28 cases as of December 01, 2014

Grand Total of All Active Cases:◦ 221 cases as of December 01, 2014

Case Management StatisticsCASE LOAD INTAKE FROM JULY 1, 2014 TO SEPTEMBER 30, 2014:

Complaints rejected by the Commission after an initial investigation by Attorneys: 9

Complaints accepted by the Commission for further investigation / prosecution: 10

CASE LOAD INTAKE AS FROM OCTOBER 1, 2014 TO DECEMBER 01, 2014:

Complaints rejected by the Commission after an initial investigation by Attorneys: 8

Complaints accepted by the Commission for further investigation / prosecution: 8

Total Complaints filed with the Commission from July 01, 2014 to Present: 35 cases

Case Management Statistics Cont’dCASES RESOLVED BY COMMISSION FROM JULY 1, 2014 TO SEPTEMBER 30, 2014

Cases closed by Consent Order: 8

Cases closed by Administrative Dismissal: 5

Cases presented for Probable Cause: 1

CASES RESOLVED BY COMMISSION FROM OCTOBER 1, 2014 TO DECEMBER 01, 2014

Cases closed by Consent Order: 22

Cases closed by Administrative Dismissal: 11

Cases presented for Probable Cause: 7

Total Cases Resolved by the Commission from July 01, 2014 to Present: 49.

Future Case ManagementOfficials who have self-reported violations of the Campaign Finance Act: 390 since October 10, 2014

Number of audits conducted since October 10, 2014: 105.

Number of officials who have been properly noticed of outstanding late fees and penalties: 112 (29%).

Number of inquires closed after payment of fees: 46 (12%).

As of December 01, 2014, Commission staff have 101 cases under active investigation or 55 percent of open cases.

The Commission’s current case load represents a 9.5 percent increase in the number of cases under active management from September 30, 2014.

Additionally, the Commission is in the process of conducting 17 random audits of officials and candidates to ensure compliance with the Campaign Finance Act (35% Complete).

Case Management SummaryTotal Cases under Active Management: January 1, 2014 to July 1, 2014: 0 cases under active management / investigation.July 1, 2014 to September 30, 2014: 96 cases or 52% under active management / investigation.September 30, 2014 to December 1, 2014: 101 cases or 55% under active management / investigation.

Random Audits• Commencing January 1, 2015, the Commission will conduct random audits of elected officials and candidates for public office.

• The random audits will initially focus on officials and candidates with outstanding late fees, who have failed to self-report.

•Elected officials and candidates will be selected at random by a variable algorithm with an initial goal of screening five percent of all filings.

FY2015 Fee CollectionLate Fees (CCDR and PFDS):

Lobbyist Registration Fees:

Civil Penalties: $6,950.00 (All Remitted to Treasury).

Miscellaneous Retained Revenue:$346.42

Total Collected Remitted to Treasury Retained

July 1 – Sept. 30 $10,070.00 $8,170.00 $1,900.00

Oct. 1 – Dec. 30 $33,030.00 $2,6505.00 $6,525.00

Total Collected Remitted to Treasury Retained

July 1 – Sept. 30 $4,700.00 $4450.00 $250.00

Oct. – Dec. 30 $1,780.00 $1330.00 $450.00

Total Collected $56,876.42

Total Remitted $47,405.00

Total Retained $9,471.42

How is a Case Managed by the Commission’s Attorneys?

1. The Commission receives a Complaint (or Commission initiated audit) which identifies a candidate/official as having potentially violated the Georgia Government Transparency and Campaign Finance Act.

2. The Commission’s attorneys are assigned the case and a preliminary investigation is commenced.

3. During the course of the preliminary investigation, the Commission’s attorneys will identify:◦ Alleged violations of the Georgia Government Transparency and Campaign Finance Act;◦ Un-alleged violations of the Georgia Government Transparency and Campaign Finance Act; and, ◦ Technical Defects (Accounting Errors)

4. Once new violations and/or technical defects are identified, the Commission’s attorneys provide the Respondent with statutorily required notice of the new violations / technical defects.

5. Upon expiration of the statutorily imposed period to respond to new violations (14 days) or to correct technical defects (60 days), the Commission’s attorneys will attempt to resolve a case by a mutually agreed upon Consent Order.

6. If the Commission is unable to come to an agreement (after 30 to 60 days) with the Respondent, cases are referred to a Preliminary Hearing before the full Commission.

Common Issues for State-Level Filers• Declaration of Intention to Accept Contributions

◦ Accepting contributions before filing a DOI

•Exceeding Maximum Contribution Limits◦ $2,500 Primary Election/ $1,300 Primary Run-Off◦ $2,500 General Election/ $1,300 General Run-Off

• Failing to Choose Option of Separate Accounting (COOSA)

◦ Must file an Option to Choose Separate Accounting

◦ Must notate the election for which the contribution is accepted

• Improper Expenditures◦ Donations: Is the non-profit really a non-

profit?

• Anonymous Contributions

• Election Year Reporting Schedule◦ Reporting period ends October 25th not

October 30th ◦ December 31st CCDR still required in Election

Year

Common Issues for State-Level Filers• Failing to properly fill out a Personal Financial Disclosure Statement (PFDS) when there are no changes from the preceding PFDS.

• Failing to include fiduciary positions

• No grace period for PFDS• Non-Election Year: Must be filed between January 1st and July 1st

• Election Year: Must be filed within 15 days of qualifying

Late Fees◦ Untimely filing of Campaign

Contribution Disclosure Report (CCDR).

◦ Untimely filing of Personal Financial Disclosure Statement (PFDS).

◦ Untimely filing of Lobbyist Disclosure Reports.

Initial Late Fee After 15 Days After 45 Days

CCDR $125.00 $375.00 $1,375.00

Initial Late Fee After 15 Days After 45 Days

PFDS $125.00 $375.00 $1,375.00

Reports due when General Assembly is NOT in session

Initial Late Fee: $275 15th Day After Due: Additional $1,00045th Day After Due: $10,000

Reports due when General Assembly is in session

Initial Late Fee: $2757th Day After Due: Additional $1,00021st Day After Due: $10,000

Hardship Waivers• Commission has authority to waive or suspend late fees when:

1. The imposition of such fee would pose an undue hardship, or2. If there are no items to be included in the report.

• Undue Hardship:1. Filer’s current financial circumstances make paying a late fee an undue

hardship.2. Filer suffered an undue hardship at the time of the filing. Personal

circumstances are the cause of or reason for the late fee.

• Criteria will be proposed at December 10th Commission Meeting to ensure uniformity in granting waivers

Hardship Waiver Stats 213 Hardship Waivers Submitted in 2014• 108 Denied (However, many lobbyist late fees were reduced to

initial late fee.)• 16 Granted• 6 Partially Granted and Denied• 2 Unnecessary • 81 Currently Pending

Contact

Phone: 404-463-1980

Email: Robert Lane: rlane@ethics.ga.gov

Bethany Whetzel: bwhetzel@ethics.ga.gov