Georgia Realtors to pay record ethics fine
$80,000 penalty: Group did not disclose more than $585,000 in political spending in '06, and memo says it has agreed to settle.


The Atlanta Journal-Constitution
Published on: 05/22/08

The Georgia Association of Realtors is expected to pay the largest fine in State Ethics Commission history today for failing to disclose more than $585,000 in campaign contributions and other expenditures in 2006.

Among the contributions not disclosed was more than $200,000 that went to an "independent committee" that ran media advertising in support of Lt. Gov. Casey Cagle, according to campaign reports. Cagle's campaign has denied any direct connection with the group, known as Realtors for Cagle.

A memo from the association obtained Wednesday by The Atlanta Journal-Constitution said the group has agreed to a fine of $80,000. The State Ethics Commission is expected to approve the consent order at its meeting today.

The Realtors are listed on the commission's agenda as having a consent agreement up for consideration.

Rick Thompson, executive secretary of the Ethics Commission, declined to comment on the case Wednesday.

When asked for comment, Keith Hatcher, the Realtors' chief lobbyist, noted the group would be issuing a news release today.

The AJC obtained the news release Wednesday. In it, association CEO Robert T. Hamilton said the group has settled the matter and is ready to put it behind it.

"At the Georgia Association of Realtors, we are committed to participating in the political process in full compliance with all disclosure laws. The employee responsible was terminated and we immediately moved to implement additional systems to ensure this situation does not occur again.

The association —- traditionally among the biggest donors in Georgia political races —- acknowledged last year that it didn't file campaign disclosures for much of 2006.

The group fired the comptroller who failed to file the forms, and the Ethics Commission received the reports —- some of which were more than a year overdue —- in August of 2007, according to commission records.

In its memo, the association calls the $80,000 fine the largest in commission history. In 2003 tobacco giant Philip Morris agreed to pay $50,000 for failing to disclose more than $450,000 in contributions to state politicians. At the time it was described as the largest fine ever.

Later, Anheuser-Busch was fined $52,820 for failing to disclose nearly $390,000 in contributions.

A large chunk of the Realtors' money went to support Cagle in his successful campaign for lieutenant governor in 2006.

Cagle defeated onetime Christian conservative Ralph Reed in the GOP primary and then beat Democrat Jim Martin in the general election.

State law allows groups to set up independent committees to promote candidates and causes. Realtors for Cagle collected $216,000 from the association in 2006, then spent $208,000 on advertising, according to campaign disclosure reports.

Such groups can claim independence as long as they don't coordinate their efforts with a candidate. It allows them to get around contribution limits. The law has been heavily criticized by the watchdog group Common Cause Georgia.

Bill Bozarth, executive director of Common Cause Georgia, said, "It's good the commission is levying the fine, but it just points out how much money can be put into a political race like that without restrictions.

"The fact that they [the Realtors] didn't report and got caught is good, but the fact that they can do it at all should be of major concern to all of us."

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