STATE OF FLORIDA. In Re: Fred Shute Case No.: FEC F.O. No.: DOSFEC w CONSENT ORDER

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1 ) 03 AUG 22 AH 10:!13 STATE OF FLORIDA STATE OF FLOR!OA FLORIDA ELECTIONS COMMISSIOfN.ECTIONS COMMISSION In Re: Fred Shute Case No.: FEC F.O. No.: DOSFEC w CONSENT ORDER The Respondent, Fred Shute, and the Florida Elections Commission (Commission) agree that this Consent Order resolves all of the issues between the parties in this case. The parties jointly stipulate to the following facts, conclusions of law, and order: FINDINGS OF FACT 1. The Respondent is the President of the North Port Contractors Association. ( I \ / 2. On January 10, 2003, the staff of the Commission issued a Statement of Findings, recommending to the Commission that there was probable cause to believe that Respondent violated the following section( s) of the Florida Election Code: Section (1), Florida Statutes, failure of a person who makes independent expenditures of $100 or more to file timely periodic reports of the expenditures; Section (1), Florida Statutes, failure of a person to include the proper disclaimer in a political advertisement paid for by an independent expenditure; and Section (1)(c), Florida Statutes, prohibiting a person or organization from falsely reporting or failing to report information required by this chapter 3. On February 28, 2003, the Commission entered an Order of Probable Cause finding there was probable cause to believe that the Respondent violated Sections (1) and (1)( c ), Florida Statutes.

2 () \ 4. On March 3, 2003, the Respondent was served by certified mail with a copy of the Order of Probable Cause. 5. The Respondent requested a hearing before the Division of Administrative Hearings within 30 days ofreceiving the Order of Probable Cause. 6. The Respondent and the staff stipulate to the following facts: a. Respondent, Fred Shute, is the current president of the North Port Contractors Association (NPCA), Inc. Respondent has been NPCA's president since February 2002 and a member of the organization since b. Complainant, Alice White, is the chairperson of the North Port Citizens for Tree Protection. This group sponsored a proposed change to the North Port City Charter (Amendment 19). c. Prior to the election on November 5, 2002, Respondent paid to have 10,000 postcards printed and mailed to the residents of North Port. Respondent added the purpose of the mailing was to help defeat Amendment 19, however, by November 4, 2002, Respondent had failed to file an independent expenditure report or a treasurer's report with the filing officer. d. The day before the election, NPCA treasurer, Rose Rex, contacted the Sarasota County Supervisor of Elections to determine the requirements for reporting independent expenditures. Ms. Rex was a candidate for the City Commission in the same election. NPCA filed its first three reports with the North Port City Clerk's office on November 12, 2002, and its final report on November 26, e. NPCA made the following expenditures in opposition to Amendment 19: Date /30/02 10/03/02 10/07/02 10/18/02 10/31/02 10/31/02 11/21/02 Pavee Renorted Purnose Amount Mailine & Marketine Concepts Design, Mail, & Print Post Card $1, SignFX Yard Signs $ Berlio Si"" Comoanv Billboard Sign $ SienFX Yard Signs $ US Postal Fioishing & Mailiog Post Card Mailiog $1, Berlio Sign Comoanv Billboard Sien $ Suncoast Media Group Newspaper Ad $2, Clear Channel - Pnnta Gorda 10 Television Ads $ Total: $6, f. NPCA received the following contributions in support of its opposition to Amendment 19:

3 () Date 0 Donor Contribution Tvue Amount Richard Bosman Check $ Trans-Florida Builders Check $ Amberg Insurance Center Check $ South Florida Land Check $ Home Automation and Design Check $ Grover Brothers Construction Check $ Mavnell Builders, Inc. Check $50.00 Lvndon Reinwald Check $50.00 Bill Gardner Stucco, Inc. Check $ Smmiland Corporation Check $ American Pest Control Check $ Total: $ g. The following table details the reports filed by the NPCA, the day they were filed, and the date the reports were actually due. Sequence Time Period Covered Date Report was Due Date Report was Filed 9/14/02 through 9/27/02 October 4,.2002 November 12, 2002 through 10/11/02 October 18, 2002 November /12/02 throngh 10/31/02 November 1, 2002 November 12, /01/02 through 90 days after February 3, 2003 November 26, 2002 election h. The NPCA Tree Protection Committee failed to file any reports of expenditures with the filing officer until one week after the election and after the complaint in this matter had been received by the Commission. i. Respondent did not know why he and the NPCA failed to file the first three independent expenditure reports until November 12, Respondent stated he understood that as the president of NPCA, he is ultimately responsible for asssuring sure Florida's election laws are not violated. j. The political disclaimer on the postcard read, "Pd. Pol. Adv. Approved by NPCA Tree Protection Committee." Section (1), Florida Statutes, requires a disclaimer for an independent expenditure to prominently state it is a paid political advertisement, it is independent of any candidate or committee, and to contain the name and address of the person paying for the political advertisement. The disclaimer on the NPCA postcard did not have all the required information. 1 k. Respondent testified he did not contact anyone to determine what would be an appropriate disclaimer for the postcard. Respondent added even though he 1 While the disclaimer on the NPCA postcard did not technically comply with Fla. Stat (1), it is clear to the reader who paid for and who was responsible for the advertisement.

4 did not contact anybody to verify the correct wording, he knew some sort of disclaimer was required, so he used "Pd. Pol. Adv. Approved By NPCA Tree Protection Committee."!. NPCA accepted 11 contributions totaling $1,400. Respondent eventually reported that all 11 contributions were received on September 28, The aggregate amount of the contributions received by Respondent exceeded $500. Therefore, Respondent was required to register the NPCA as a political committee 2 because Section (1 ), Florida Statutes, provides that an organization must register as a political committee within ten days of meeting the requirements listed in the definition of political committee. m. Respondent failed to register NPCA as a political committee within ten days of reaching the $500 threshold. CONCLUSIONS OF LAW 7. The Commission has jurisdiction over the parties to and subject matter of this cause, pursuant to Section , Florida Statutes. 8. The Commission staff and the Respondent stipulate that the facts set forth in paragraph six of this Consent order constitute willful violations of Sections (1) and (1)(d), Florida Statutes. 9. Respondent was aware there are laws and regulations regarding the way elections run. Respondent admitted to Commission staff he knew a disclaimer was required but he made no efforts to inquire about the requirements of a proper disclaimer. NPCA displayed sophistication in its fundraising and spending activities. ORDER 2 In Florida Right to Life v. Lamar, 273 F.3d 1318 (!Ith Cir. 2001), the United States Eleventh Circuit Court of Appeals affirmed the District Court's striking Florida's definition of a "Political Connnittee" as unconstitutional. As a result of District Court's ruling, political connnittees (as defmed by the old definition) were not required to register. In 2002, the Florida Legislature redefmed the term "Political Connnittee" which is codified in Fla. Stat (1). The new statutory defmition became effective July 1, 2002, and, thereafter, anyone who meets the criteria in the new defmition of a "Political Connnittee" must register with the appropriate filing officer.

5 \ \. I 10. The Respondent and the staff of the Commission have entered into this Consent Order voluntarily and upon advice of counsel. 11. The Respondent shall bear his own attorney fees and costs that are in any way associated with this case. 12. The Respondent understands that before the Consent Order is final agency action the Commission must approve it at a public meeting. After approval, the Consent Order is final agency action of the Commission on the violations listed in the Order of Probable Cause. 13. The Respondent voluntarily waives the right to any further proceedings under Chapters 104, 106, and 120, Florida Statutes, and the right to appeal the Consent Order. 14. The Respondent and the staff of the Commission agree that this Consent Order and the terms contained herein shall not constitute an admission against interest or ( \ acknowledgement of guilt as to any criminal charge that might arise from the allegations that \. / form the basis of the complaint filed on November 1, 2002, against Respondent and this Consent Order. 15. This Consent Order is enforceable under Sections and , Florida Statutes. The Respondent expressly waives any venue privileges and agrees that if enforcement of this Consent Order is necessary, venue shall be in Leon County, Florida, and Respondent shall be responsible for all fees and costs associated with enforcement. 16. If the Commission does not receive the sigued Consent Order and the fine by the close of business on July 18, 2003, the staff withdraws this offer of settlement and will proceed with the case. 17. The Respondent shall remit to the Commission a civil penalty in the amount of $11000 for violating Sections (1) and (1)(c), Florida Statutes. The civil penalty

6 shall be paid to the Florida Elections Commission, 107 W. Gaines Street, Collins Building, Suite 224, Tallahassee, Florida, , as a condition precedent to the Commission's execution of this Consent Order.The Respondent hereby agrees and consents to the terms of this Consent 7J Order on ~(..' ~, ~ce,~ Doug Grissinger Mellor and Grissinger Tamiami Trail, Suite D North Port, Florida The Commission staff hereby agrees and consents to the terms of this Consent Order on Eric M. Lipman Assistant General Counsel Florida Elections Commission 107 W. Gaines Streets Collins Building, Suite 224 Tallahassee, FL Approved by the Florida Elections Commission at its regularly scheduled meeting held on August 13 IHl:d tzr, 2003 at Tallahassee, Florida and filed with the Clerk of the Commission on _CW,,,_,,_"'"r=-F"..._.,;;)."----"J_,"------' 2003, in Tallahassee, Florida. Chance Irvine, Chairman

7 / \ ) Florida Elections Commission 107 W. Gaines Streets Collins Building, Suite 224 Tallahassee, FL Copies furnished to: Eric M. Lipman, Assistant General Counsel Fred Shute, Respondent Douglas W. Grissinger, Attorney for Respondent Alice White, Complainant Helen Raimbeau, Filing Officer

8 / \ \ First National Bani< NORTH PORT CONTRACTORS ASSN REMITTER PAY EXACTLY **11000 AND 00/100 DOLLARS TO THE ORDER OF ****FLORIDA ELECTIONS COMMISSION**** CASHIERS CHECK Date: 7/16/03 Branch: 0507 $11, U.S. FUNDS ) -- -

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'I - STATE OF FLORIDA FLORIDA ELECTIONS COMMISSION,..J I J -..._ FLORIDA ELECTIONS COMMISSION, PETITIONER, v. PRIYANSHU ADATHAKKAR, RESPONDENT. ------------------------------~/ AGENCY CASE No.: FEC 05-282