The Center for Media and Democracy

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1 The Center for Media and Democracy 520 University Avenue, Suite 260 Madison, Wisconsin Phone: Fax: June14,2012 JonathanBecker WisconsinGovernmentAccountabilityBoard 212EastWashingtonAvenue,ThirdFloor P.O.Box7984 Madison,Wisconsin53707L7984 RE:CampaignFinancecomplaintmadepursuanttoWis.Stat ,11.055,11.06,and DearMr.Becker: Enclosed,pleasefindourcomplaintallegingthattheCampaigntoDefeatBarackObamapurchasedand airedadvertisementsfora politicalpurpose specifically,urgingtheretentionofgovernorscott WalkerintheJune5,2012recallelectionLLbutdidnotregisterwiththeGovernmentAccountability Board(GAB)asapoliticalcommittee,asisrequiredbyWis.Stat ,orpayfilingfees,asrequiredby ,orreportitscontributionsandexpenditures,asrequiredby 11.06,ordesignateanagent,as requiredby Pleasecontactmeifyouneedfurtherinformationorhaveadditionalquestions. Sincerely, BrendanFischer LawFellow CenterforMediaandDemocracy

2 STATEOFWISCONSIN BEFORETHEGOVERNMENTACCOUNTABILITYBOARD TheComplaintof BrendanFischer, CenterforMediaandDemocracy, COMPLAINT Complainant against TheCampaigntoDefeatBarackObama Respondent ThiscomplaintismadepursuanttoWis.Stat ,11.055,11.06,and I,BrendanFischer,allegethat: TheCampaigntoDefeatBarackObama(CDBO)purchasedandairedadvertisementsfora politicalpurpose specifically,urgingtheretentionofgovernorscottwalkerinthejune 5,2012recallelectionSSbutdidnotregisterwiththeGovernmentAccountabilityBoard (GAB)asapoliticalcommittee,asisrequiredbyWis.Stat ,orpayfilingfees,as requiredby ,orreportitscontributionsandexpenditures,asrequiredby 11.06, ordesignateanagent,asrequiredby Introduction CDBOisaPoliticalActionCommitteeregisteredwiththeFederalElectionCommission (FEC)undercommitteeIDC CDBO saddressandtheaddressforitstreasurer arebothincalifornia.itwascreatedin2011bythe OurCountryDeservesBetter Committee, theparentorganizationofthe TeaPartyExpress. 2 InCDBO sfilingswiththefecforthemonthofapril,itreportedspending$31,634onapril 16forindependentexpendituresinWisconsinpaidtotheNewYorkfirm Political CommunicationsAdvertising,and$2,557toRussoMarshandAssociatesfortelevision 1 CDBO Report of Receipts and Disbursements, filed May 20 with the FEC (for period April 1 30) at page 1, available at Attached as Exhibit A. 2 See A Trio of Joes to Help Launch Anti-Obama Group, CNN.com (Mar. 24, 2011), available at

3 production,foratotalof$34,191ontelevisionadvertisinginwisconsinforthatmonth. (SeeExhibitA). 3 ItsAprilfilingalsoindicatedthatithadincurredadebtof$76,406toRussoMarshand AssociatesforpriorindependentexpendituresinWisconsin.(SeeExhibitA). 4 AlthoughCDBOhasnotfileditsmonthlyFECreportforMayorJune,itdidreporttothe federalgovernmentthatitpaidpoliticalcommunicationsadvertising$10,557for advertisinginwisconsinonmay17 th (SeeExhibitB). 5 CDBOdidnotreportanyofitsWisconsinspendingtostateofficials.Thetotalamountof politicalspendingbycdbotoinfluencewisconsinelectionssinceitsfoundinglastyearis notknown. AlthoughCDBOreportedinitsfederalfilingsthattheexpendituresweremadetoopposea federalcandidate(presidentbarackobama),theadswerealsoclearlymadeforthe purposeofsupportingtheretentionofgovernorwalkerinhisjune5recallelection.the contentoftheseadsisdiscussedbelow. Thesedisbursementsweremadefora politicalpurpose, asdefinedinwis.stat (16)andinterpretedbytheGovernmentAccountabilityBoard(GAB)inWis.Admin. Code GAB1.28(3).CDBO sexpendituresalsoamounttowellover$25,thethresholdfor registrationinwis.stats and CDBOthereforeshouldhaveregisteredasa nonsresidentpoliticalcommittee 6 andreporteditsspendingandallcontributionsmadefor itsindependentexpenditures. 7 Italsoshouldhavepaidafilingfeetotheboardand designatedanagentwithinthestate. 8 However,CDBOisnotlistedashavingregistered withthestate,andthewisconsincampaignfinanceinformationsystemdoesnotshowany registeredgroupwithanamesimilartocdbo sname. WerespectfullyasktheGABtorequirethatCDBOcomplywiththeelectionintegrity requirementsinchapter11ofthewisconsinstatutes,andweasktheboardtopenalize CDBOforviolatingstatelaw.SuchdeterminationsbytheGABwillhelpsendamessageto 3 CDBO Report of Receipts and Disbursements, filed May 20, at page 261, available at 4 See CDBO Report, filed May 20, at page 258. Russo Marsh is a PR firm led by Joe Wierzbicki, who is also the Executive Director of CDBO. The April filing also shows Wierzbicki receiving fundraising commissions in the amount of at least $31,634, in addition to his travel expenses and whatever his percent of profit-sharing may be from the fees paid to Russo Marsh. In April, CDBO raised $269,767 and spent $163,979, including the $34,191 on Wisconsin ads in April. See also Kenneth Vogel, GOP Operatives Crash the Tea Party, POLITICO (April 14, 2010), available at 5 CDBO 24/48 Hour Notice of Independent Expenditures, filed May 17 with the FEC, available at (attached as Exhibit B). 6 Wis. Stat (1); 11.01(7)(a); see also Wis. Admin. Code GAB Wis. Stat GAB Emergency Rule 1.91 specifies that a corporation must designate a separate account for its independent expenditures, and disclose all contributions and expenditures made for those expenditures. As noted below, CDBO raised funds for the specific purpose of running these independent expenditures and those contributions must be disclosed under Wisconsin law. 8 Wis. Stat ,

4 otherorganizationsthatengageinpoliticalspendinginwisconsinwithoutobeying Wisconsinlaw. TheCDBOAdvertisements EvidencesuggeststhatthefollowingfouradvertisementsairedinWisconsininthetwo monthsbeforethejune5recallelection. 1) AmericaNeedsMoreScottWalkerandLessBarackObama TheWisconsinDemocracyCampaignreportsthatCDBOranaTVadintheGreenBayand MilwaukeemarketsinAprilof2012titled AmericaNeedsMoreScottWalkerandLess BarackObama 9 Theadclaimsthat undergovernorscottwalker,thingsinwisconsin havebeguntoturnaround, andincludesstatementssuchas keepupthegreatwork, GovernorWalkerSSyou resavingourstate; GovernorWalkeristryingtohavefiscally responsiblepolicy[and]tryingtoholddowntaxestogiveaverageworkersabreak; Scott WalkerisdoingagreatjobinMadison; and IsupportGovernorScottWalker. Thead concludesthat AmericaneedsmoreofGovernorScottWalker sstyleofleadership. Thead alsocritiquespresidentbarackobama. 10 The AmericaNeedsMoreScottWalker adwaspostedonthecampaigntodefeatbarack Obamawebsiteoverthefollowingstatement: MakeacontributionnowtostandwithScott Walkerandhelpwinthiscritical2012battle (SeeExhibitC). 2) BarackObama:FiddlinginMadisonWhileFAILINGinWashington TheWisconsinDemocracyCampaignalsoreportsthatCDBOrananadintheGreenBay andmilwaukeemarketsinapriltitled BarackObama:FiddlinginMadisonWhileFAILING inwashington. 11 Theadallegesthattherehasbeena campaignofharassmentand intimidation inwisconsinby PresidentObama sallies, andpraisesgovernorwalkerfor standinguptothebullying. TheadalsofeaturesstatementsfrompurportedWisconsin residentssaying IsupportmyGovernor,ScottWalker and inthefaceofadversityhehas showntruecourage and wesupportscottwalker. Thead sannouncertellsviewers he deservesourgratitude. 12 The FiddlinginMadison adisalsopostedonthecdbowebsiteoverthestatement Make acontributionnowtostandwithscottwalkerandhelpwinthiscritical2012battle (See ExhibitC). 3) WeApplaudGovernorWalker 9 Wisconsin Democracy Campaign, Campaign to Defeat Barack Obama PAC page, accessed June 12, 2012, available at 10 America Needs More Scott Walker and Less Barack Obama uploaded to YouTube March 29, 2012, available at 11 Wisconsin Democracy Campaign, Campaign to Defeat Barack Obama PAC page, supra note Fiddling in Madison While Failing in Washington, uploaded to YouTube April 6, 2012, available at 3

5 OnMay29,CDBOpostedalinkonitsFacebookpagetitled BREAKINGNEWS:SeeOur BrandNewTVAd Thepostingsaid bethefirsttosee&showyourfriendsourgorgeous newadtosupportscottwalker,beatbackobama sminionsanddefeattherecall. (ExhibitD).Uponclickingthelink,viewersarebroughttoawebsitewithavideotitled We ApplaudGovernorWalker atthetop.(exhibite). The WeApplaudGovernorWalker adbeginsbystating, GovernorScottWalkerhasstood byhisprinciplesandprovidedtheleadershipthatwasneededtoturnwisconsinaround. Inthead,CDBOPresidentMaryPearsonsays GovernorWalker sreformsareworking hereinwisconsin, withanarrowpointingtomadison(pearsonlivesincalifornia). PurportedWisconsinresidentspraiseGovernorWalker s leadership,integrity,and straightforwardness. Theannouncertellsviewers weapplaudgovernorscottwalkerfor creatingjobsinwisconsin,loweringpropertytaxes,erasingwisconsin sbudgetdeficit,and bringingeconomicgrowthandopportunitybacktothebadgerstate. Theadalsocritiques PresidentObamaandclaimsheis interferingwiththeprogressbeingmadeherein Wisconsin. TheadendswithCDBOPresidentPearsontellingviewers Godblessthisgreat nation,andgodblessgovernorscottwalker. 13 ThetopoftheCDBOwebpagewiththe WeApplaudGovernorWalker adsays thanksto thefinancialsupportofindividualslikeyouwearecontinuingtoexpandoureffortsin WisconsintoDEFEATtheRECALL.WeareproudtounveilyetanotherTVadthatwilljoin ourarsenalinwisconsin. (SeeExhibitE).BecauseCDBOhasnotregisteredwiththeGAB orreporteditsexpenditures,itisnotknowninwhichwisconsintelevisionmarketsthisad hasrun. ThewebsitealsomentionsotherTVadcampaignsinWisconsinandsolicitsdonationsto gettheseadsseenallacrosswisconsin. (SeeExhibitE). 4) MichaelReagan&WisconsinitesSpeakOutforScottWalker OnMay29,CDBOpostedalinktoitsFacebookpagethatsaid SeethebrandnewTVadto DEFEATtheRECALL (ExhibitF).Thelinkbringsviewerstoapagethatsays Weare pleasedtoreleaseafantasticnewtvadforourcampaigntosupportgov.scottwalkerand DEFEATtheRECALL andwe rehonroed(sic)toreportthatthistvadfeaturespresident RonaldReagan ssonmichaelreagan. (ExhibitG). Thead,titled MichaelReagan&WisconsinitesSpeakOutforScottWalker, beginsby saying GovernorScottWalkeristurningWisconsinaround,andnolessthanRonald Reagan ssonhastakennoteofhisefforts. MichaelReagantellsviewers, Weneedleaders likescottwalker.he sareminderofsomebodynamedreaganfromalongtimeago.scott Walker,becauseofwhathe sdoing,hasturnedanegativeintoapositive,bringing businessesbacktowisconsin,gettingpeoplebacktoworkinwisconsin. Hecontinues: WhyintheworldwouldthepeopleofWisconsinwanttogobacktothosedaysof yesteryearwhenthebudgetwasoutofcontrol,jobswerenotavailable,isbeyondme. A purportedwisconsinresidenttellsviewers hehassavedustaxpayersbillionsandbillions 13 We Applaud Governor Walker; uploaded to YouTube May 29, available at 4

6 ofdollars. Reaganconcludestheadbysaying winthisonefor TheGipper, withan imageofronaldreaganappearingtosalutewalker. 14 OntheCDBOpagethatshowsthead,belowtheembeddedvideo,thepagesays Helpusget thisadseenallacrosswisconsininthecriticalclosingdaysofthisrecallelectionby makinganonlinecontribution. Italsoinvitesvisitorsto viewtwomoreoftheadsweare running withembeddedvideoofthe AmericaNeedsMoreScottWalker and Fiddlingin MadisonWhileFailinginWashington ads.thepagealsosays: Thiselectioniscriticallyimportant.IfGov.Walkerloses,hewillnotonlybeousted,but hisrepublicanlieutenantgovernorcouldbeousted.andontopofthat4republicanstate SenatorsaresubjecttoRECALLandifwelose2ofthoseraces,thenRepublicanslose controlofthestatesenateandtheleftcancompletelyblockgov.walker'sagenda. But,evenmorethanthatSiftheRECALLsucceedsandGov.Walkerisremovedfromoffice, itwillbeahugeboosttobarackobama'seffortstostealawaywisconsin's10electoral VotesintheNovemberpresidentialelection. Wemustwin.WemustDEFEATtheRECALL. (SeeExhibitF). 5)OtherCDBOAdsinWisconsin Inadditiontothesefourads,CDBOproducedanddistributedothervideosbackingWalker, althoughtherearenotcompleterecordstoindicateiftheyairedontvorwereavailable onlyontheinternet. 15 Theseotheradsaredetailedintheappendixtothisfiling. AdsWereMadeforaPoliticalPurpose;CDBOMustRegisterandDisclose Eachoftheseadswereclearlymadefora politicalpurpose, asdefinedinwis.stat (16),sincetheyendorseWalkerinadvanceoftheJunerecallelection.. PursuanttoitsauthoritytoadministerandenforceChapter11oftheWisconsinstatutes, thegabhasprovidedadditionalclarificationaboutthemeaningof politicalpurpose in 1.28oftheadministrativecode.Alloftheadsmeetthedefinitionin11.01ofWisconsin statutesandmeetthedefinitionsetforthinsubsection(a)of1.28(3)aswellasthe definitioninsubsection(b),asdetailedbelow. UnderWisconsinlaw,anygroupmakingdisbursementsforapoliticalpurposeover$25in acalendaryearmustregisterasapoliticalcommitteeandreportitsfundingandspending. See,Wis.Stat (1),11.01(7)(a),and11.06;seealsoWis.Admin.Code GAB Michael Reagan & Wisconsinites Speak out for Scott Walker, uploaded to YouTube May 28, 2012, available at 15 See Campaign to Defeat Barack Obama YouTube account, available at 5

7 CDBO sadsmeetthedefinitionof PoliticalPurpose ingab1.28(3)(a) Wis.Admin.Code GAB1.28(3)(a)definesacommunicationbeingfora politicalpurpose ifitreferencesaclearlyidentifiedcandidate,unambiguouslyrelatestothecampaignofthat candidate,andcontainstermssuchas support or defeat (orthefunctionalequivalent). Thefirsttwoadsdescribedabove( AmericaNeedsMoreScottWalker and Fiddlingin Madison )usetheterm support withrespecttogovernorwalker,whoisclearly identified. Thethirdadwasaccompaniedbypromotionalmaterialthatexpresslyreferencedthead s usetoaidwalkerinhisrecallelection: bethefirsttosee&showyourfriendsour gorgeousnewadtosupportscottwalker,beatbackobama sminionsanddefeatthe RECALL. Thefourthad( MichaelReagan&WisconsinitesSpeakOutforScottWalker ),which appearstohaverunintheweekbeforetheelection,clearlyidentifieswalkerandtells viewersto winthisoneforthegipper. Theterm win isfunctionallyequivalenttothe termsmentionedingab1.28(3)(a)(1s6). Iftheseadsdonotmeetthedefinitionofpoliticalpurpose meaning doneforthepurpose ofinfluencingtheelection ofanindividualtostateofficessveryfewadsrunduring electionseasonwouldcount.moreover,evencdboassumedthatatleastsomeofits spendingonadsinwisconsincountedasindependentexpendituresunderfederallaw,and reportedsoonitsfederalfilings. CDBO sadsalsomeetthedefinitionof politicalpurpose ingab1.28(3)(b) UnderWis.Admin.Code GAB1.28(3)(b)anadvertisementisbydefinitiononefora politicalpurpose ifitismade60daysbeforeanelection,includesreferencetoaclearly identifiedcandidate,andissusceptibleofnoreasonableinterpretationotherthanasan appealtovotefororagainstaspecificcandidate. 16 Eachofthefouradsdiscussedabovewereairedwithin60daysoftheJune5recallelection, clearlyidentifygovernorwalkerbothinnameandimage,andaresusceptibleofno reasonableinterpretationotherthananappealtovoteforhim,eveniftheywerenot consideredtohaveexpresslyurgedviewerstosupportscottwalkerintherecall. TheadsrefertoWalker spersonalqualities,character,andfitnessforoffice: the AmericaNeedsMoreScottWalker adtellswalkerto keepupthegreatwork, sayinghe isdoingagreatjob, the FiddlinginMadison adsays inthefaceofadversityhehasshowntruecourage and hedeservesourgratitude, 16 GAB 1.28(3)(b) was challenged in both state and federal court when it was published on July 31, 2010, and its enforcement was temporarily enjoined by the Wisconsin Supreme Court on August 13, The Wisconsin Supreme Court vacated that injunction on March 19, See Wisconsin Prosperity Network v. Myse, 2010AP1937-OA (Mar. 19, 2012). The GAB has stated that it will be enforcing this subsection. 6

8 the WeApplaudGovernorWalker adpraiseswalker s leadership,integrity,and straightforwardness, the MichaelReagan adtellsviewers WeneedleaderslikeScottWalker.He sa reminderofsomebodynamedreaganfromalongtimeago. Theadsalsosupporthispublicrecord: the AmericaNeedsMoreScottWalker adtellswalkerto keepupthegreatwork, sayinghe isdoingagreatjob, andpraiseshimfor tryingtohavefiscallyresponsible policy[and]tryingtoholddowntaxestogiveaverageworkersabreak the FiddlinginMadison adpraiseswalkerfor standinguptothebullying the WeApplaudGovernorWalker adpraiseswalker forcreatingjobsinwisconsin, loweringpropertytaxes,erasingwisconsin sbudgetdeficit,andbringingeconomic growthandopportunitybacktothebadgerstate the MichaelReagan adtellsviewersthatwalker hasturnedanegativeintoapositive, bringingbusinessesbacktowisconsin,gettingpeoplebacktoworkinwisconsin and hehassavedustaxpayersbillionsandbillionsofdollars CDBO sothercommunicationsshowtheadswerefora PoliticalPurpose EachcommunicationfromCDBOabouttheseads suchasfacebookandwebpostings clearlymeetthe politicalpurpose definitiondescribedin1.28(3)(a).thecommunications declaretheneedtodefeattherecalland SupportGovernorWalker. (SeeExhibitsCSG, seealsoexhibith). TheseFacebookandwebpostingsalsoaskfordonationstofundtheTVairtimefortheads. Additionally,CDBOsentan tosolicitdonationsfortheir TVAdFund. Thebannerat thetopofthis says SupportGovernorScottWalker (SeeExhibitI).The appearstohavebeenapaidadvertisementsentthroughredstate.com. CDBO spubliccommunicationsreinforcethefactthattheadsweremadeforapolitical purpose.cdboraisedmoneyfortheadswiththepromisethatputtingthecommunications ontvwouldhelp DEFEATtheRECALL and supportgovernorwalker. CDBOpromoted theadsonlinebydiscussinghowtheadswereintendedtoinfluencewisconsin srecall elections.andasdiscussedabove,theadsmetthedefinitionofcommunicationsfora politicalpurposeunderwisconsinlaw. 17 CDBOShouldBePenalizedforitsNonKCompliance DespiteCDBOspendingtensofthousandsofdollarstosupportScottWalkerinhisrecall campaignandmakingitclearthatitspurposewastoinfluencewisconsinvoters,thegroup didnotregisterasapoliticalcommitteeanddidnotdiscloseitsfundingandspendingto thestateofwisconsin. 17 All funds raised through these appeals were made for the political purpose of funding the pro-walker TV ads. These contributions and all others made for the purpose of funding CDBO s political activities must be disclosed under Wis. Admin. Code GAB

9 Additionally,CDBOchairperson,LloydMarcus,boastedonhiswebsitethatCDBO purchasedover$100,000intvadsinwisconsintohelpinfluencethewisconsinstate senaterecallelectionslastsummer.(seeexhibitj).itdoesnotappearthatthegroup registeredasapoliticalcommitteeforthoseexpenditures,either. WerespectfullyrequestthattheGABinvestigatetheactionsofthisgroupandsanctionthe organizationforanyandallviolations,includinganyciviland/orcriminalpenaltiesit deemsappropriate.wisconsinlawstatesthatanyperson,includinganycommitteeor group,whoviolateschapter11ofthewisconsinstatutesmayberequiredtoforfeitnot morethan$500foreachviolation (1).Additionally whoeverintentionally violatess.11.05(1),(2),(2g)or(2r),11.07(1)or(5)...isguiltyofaclassifelony (1)(a).Furthermore,Sub.(1)(a)doesnotrequirethestatetoprovethatthedefendanthad actualknowledgeoftheviolatedstatute.statev.dreske,88wis.2d60,276n.w.2d324(ct. App.1979). WiththeNovemberstateandfederalelectionslessthanfivemonthsaway,wewouldask theboardtoexpediteitsinvestigationofcdboinordertohelpensuretheintegrityof Wisconsin selectoralprocess. Date:June14,2012 BrendanFischer CenterforMediaandDemocracy 520UniversityAveSuite260 Madison,Wisconsin53703 I,BrendanFischer,beingfirstdulyswornonoathstatethatIpersonallyreadtheabove complaint,andthattheaboveallegationsaretruebasedonmypersonalknowledgeand,as tothosestatedoninformationandbelief,ibelievethemtobetrue. (complainant ssignature) STATEOFWISCONSIN ) CountyofDane ), )ss. Sworntobeforemethisdayof dayofjune,2012.,notarypublic Mycommissionexpires,orispermanent. 8

10 Appendix ThefollowingareadsproducedbytheCampaigntoDefeatBarackObamaandpostedon theirwebsiteandyoutubeaccount.itisnotknownwhethertheseadsairedonwisconsin televisionorwereavailableonlyviatheinternet. ConservativeLeadersUnitetoSupportScottWalker 18 o This4minute,15secondwebadfeaturesavarietyofTeaPartyand conservativeleadersspeakinginsupportofwalkerandhispolicies.dick MorristellsviewersthevideowassponsoredbyCDBO,andnotesthegroup israisingmoneyto fightthewisconsinrecallelections. CDBOchairperson LloydMarcussays ThankyouScottWalkerforhavingbackbonetodowhat yousaidyouweregoingtodo...scottwalkerhasstoodonprincipleand donetherightthing. Marcusalsoserenadesviewerswithaversionof God BlessAmerica. MichaelReagannotesthathewouldliketokidnapWalker andbringhimtocalifornia.theadalsoincludesstatementsinsupportof WalkerfromJuddPhillipsofTeaPartyNationandAmyKremerofTeaParty Express. WeAppreciateGov.Walker&RejectObama'sIntervention 19 o Thisadbeginsbysaying ThepeopleofWisconsinhaveamessagefor GovernorScottWalker ThankYou andshowsfootageof StandWith Walker signsandgovernorwalker.itcontinueswithcommentary supportingwalkerfromindividualsportrayedaswisconsincitizens. Obama:StoptryingtoHarmWisconsin'sProgress 20 o Thisadsays GovernorScottWalkershowedstrongleadershipandmade toughdecisionstohelpturnwisconsinaround, andshowsfootageof Walker.ItcontinueswithcommentarysupportingWalkerfromindividuals portrayedaswisconsincitizens. BarackObama:StopInterferingwithGov.Walker 21 o ThisadshowsmorecommentarysupportiveofWalkerfromindividuals portrayedaswisconsincitizens.theadstatesthat thepeopleofwisconsin arefightingback,standingwithgovernorwalker. 18 Conservative Leaders Unite to Support Scott Walker, uploaded to YouTube June 2, 2012, available at 19 We Appreciate Gov. Walker & Reject Obama's Intervention, uploaded to YouTube May 29, 2012, available at 20 Obama: Stop trying to Harm Wisconsin's Progress (TV Ad), uploaded to YouTube May 28, 2012, available at 21 Barack Obama: Stop Interfering with Gov. Walker, uploaded to YouTube May 28, 2012, available at 9