since ian ATTORNEYB GENERAL People not Politics October 4,2018 ‘The Honorable Jerry L. Fielding Chairman ‘Alabama Ethies Commission P.O, Box 4840 ‘Montgomery, AL 36104-4840 Re: July 9, 2018 Ethics Complaint by Troy King ear Chairman ing: I write you today as both a candidate for Attorney General and a puzzled citizen of Alabama. Attomey Genera Steve Marshal, appointed by former Governor Robert Bentley, appears to have violated the Fair Campaign Practices Act (FCPA) yet, ina matter of weeks, could be elected toa fall term of office as the State's chief law enforcement officer. The Ethies ‘Commission met on October 3, but, to my knowledge, no action was taken to address this appacent serious violation of Alabama law and public trust Marshall received $735,000 in contributions ftom the Republican Attorneys General Association (RAGA) Action Fund, RAGA’ politcal action committee (PAC) which isa $27 ‘organization! The RAGA Action Fund receives its contributions from RAGA, also a 527 ‘organization, seemingly in violation of Ala, Code § 17-5-15(b), known as Alabama's PAC-t0- PAC ban. Furthermore, RAGA itself received contributions from various PACS, “Alabama's law bemning PAC-10-PAC transfers isthe only legal protection standing Between slabama voters and the reality or appearance of quid pro quo corruption.” ~ Steve Marshall (March 1, 2017) Last year, Marshall acknowledged in briefing to the U.S. Supreme Cour that, under ‘Alabama la, no PAC has “any right 9 recelve PAC-transferred funds for making candidate contributions.” ADC v. Ar'y Gen. of Ala, No, 16-832 (U.S. Mar. 1,2017). Today, Marshall * Political commits that regiser ad le repors withthe FEC, suchas the RAGA Acton Fund, are 527 organizations See “What sa 527 Oreanizatton, Quick Answers to General Queton, Feral Elion Commission, ps: ranston gov anfanswes_ general sh. VoteJoe2018.com =The Honorable Jerry L. Fielding ‘Alabama Ethies Commission October 4, 2018 Page 2 aims that an exception exists for federal PACs or 527 organizations even though the FCPAs PAC-to-PAC ban explicitly includes 527 organizations ‘Marshall has asset that guidance iscued by the Secretary of Stat which reade “Federal PACS are not subject to the Pair Campaign Practices Act” provides the eontolling law. Motion to Dismiss, King ». Marshal, et a., CV-2018-394 (Montg, Cir. Ct). This guidance, however, refers only o decades-old reporting requirements for PACS. Full context underscores the statement’s limited scope: “Federal PACs are not subject tothe Fair Campaign Practices Act. Each federal PAC is required to comply with federal campaign finance law by submiting any required reports to the Federal Election Commission (FEC).” See Secretary of State PAC Filing Guidelines. Moreover, the guidelines acknowledge it “is not a substitute forthe Code of Alabama, This document is provided as a guide and isnot intended to be an authoritative statement of law.” Id. at 2 As the Attorney General and chief law enforcement officer forthe State of Alabama, Marshall cannot rely on a poorly worded statement in nonbinding guidelines ‘unrelated to the State's bar on PAC-to-PAC transfers, Ultimately, Marshall concedes that the RAGA contributions may violate the FCPA but denies liability extends to him Yet, the FCPA provides: [Notwithstanding ary other provision of law, a principal campaign committee shall promptly retin or refund, in full, any unlawful contribution... . Iisa efense to prosecution thatthe unlawful contribution was eturned or refunded in full within 10 days ofthe date the contribution was made. ‘Ala. Code § 17-5-7.1(6). Zo date, and long since 10 days had passed, Marshall's principal ‘campaign committee has not retuned any of RAGA’s contributions. In 2014, then-Atomey General Luther Strange returned a contribution from RAGA suspected to violate Alabama's ban on PAC-to-PAC transfers. RAGA had given the funds to RAGA Alabama PAC, which then contributed to Stange. After questions of legality were raised, Strange promplly rtumed the contebution, ‘The following chart summarizes the state ofthe law: 1 shal be nla for any pial action commitee or tax exempr political onaniation undo 26 USC $327 tomakes conbution, expenditure oF any ter tener of funds any he political tection commit or 327 orgontaton” Al. Code § 17-150) (emphasis ae), "lle ope sonalabana gov site! dfanl files lection 2018201 8P420PACN2OGaitines pa «See Capt Journal PBS brosdeas July 20,2018), ayaabie a wow ps.ongvideouly-20-201 8-3) CTO the estou tha there ia wo, not inthe asepance of mone).‘The Honorable Jerry L. Fielding ‘Alabama Ethics Commission October 4,2018 Page 3 PACS > PAC > Candidate Tilegal ‘ADC v. Strange (11th Cir. 2016) 527 PAC > Candidate Presumed ilegal | Strange retumed the contribution PAC > 527 > 527 -> Candidate | Marshall says legal_| Issue now before Ethies Comm. For the purposes ofthe PAC-to-PAC ban, Alabama law deems PACs and S27 indistinguishable. See Ala. Code § 17-5-15(b). As I seek swift action by this Commission, I have enclosed my own analysis for your reference to the extent it may hasten your review. In ess than 3 years, Alabama has lost the highest officeholder in every branch of its ‘government due to unethical or illegal conduct. Now we may lose our Attorney General simply ‘over greed for special-interest, dark money. We face not only losing another high officeholder to illegality, but we face a crossroads of whether we are capable and willing to hold the chef law «enforcement officer of the State accountable, or allow him to reside above the law. ‘Thank you for your consideration ofthis mater and for your service to our State. ‘Toseph “Toe” Siegelman ‘Candidate for Attorney General Enclosure ‘The Honorable Frank C, Ellis, J ‘The Honorable Charles Price The Honorable Beverlye Brady The Honorable John Plunk The Honorable Thomas B. Albritton ‘The Honorable Steve Marshall "he Honorable Troy King The Honorable John Merrill The Honorable Daryl Bailey PACs can be instate rourofstte. Al, Code § 17-52