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FAQ current as of Sept. 10, 2010
1. What is the new political assessment and when will it become effective?
It’s a $49 assessment that will go into effect with the 2011 dues billing cycle.
2. Is this assessment mandatory?
Yes. A member may decide to satisfy the assessment in one of two ways: (1) By either making a
voluntary contribution to C.A.R.’s political action committees [California Real Estate Political Action
Committee (CREPAC) and/or the California Real Estate Independent Expenditures Committee
(CREIEC)], or used for other political activities, or (2) by opting to send the funds to the C.A.R.
general fund for political purposes.
3. Why was the political assessment needed?
Whether it’s the legislature looking to tap REALTORS®, the transaction, or our industry for additional sources of funding, placing restrictions on private property rights or on our right to conduct business, organized real estate must be continually vigilant in Sacramento to ensure that our interests are fairly represented.
This is even more true in today’s fiscal environment, with politicians searching for every
available means to cut the state’s ballooning deficits and produce a balanced budget. C.A.R.’s
opponents -- the trial lawyers, for example -- spend millions of dollars every year to fund
candidates and legislators who support legislation creating additional liability for our members,
increasing the likelihood of litigation and making it more difficult and more costly to be in
business.
C.A.R.’s California Real Estate Political Action Committee (CREPAC) used to be one of the top
10 political action committees (PACs) in California. It now ranks 37th, according to a recent
study of PAC spending in California. Special interest groups, including many supported by
public finances, routinely outspend CREPAC on a regular basis. The political assessment
adopted by the C.A.R. board of directors will help rectify this growing imbalance.
4. Are C.A.R.’s PACs bipartisan?
Yes. Monies are used to support candidates and elected officials who are advocates for the real estate industry, regardless of political affiliation. Like all of C.A.R.’s various PACs, the California Real Estate Political Action Committee (CREPAC) is neither Democrat nor Republican – we like to think of CREPAC as supporting the “REALTOR® party.” CREPAC is one of the most respected, bipartisan, business interest PACs in the state, and supports candidates and incumbents who understand and are sympathetic to issues that are important to REALTORS® and their industry. The California Real Estate Independent Expenditures Committee (CREIEC) also is neither Democrat nor Republican, but makes independent expenditures on campaigns and issues which are of interest to C.A.R. and its members.
5. How have C.A.R.’s PACs helped REALTORS® and their businesses?
Despite the downturn in funding, C.A.R.’s advocacy in the political arena this year:
C.A.R.’s PACs also have an outstanding success rate. For example, in the 2008 primary election, 98 percent of the supported candidates were elected.
6. How are decisions about allocating political contributions made?
All decisions concerning PAC monies are made by REALTORS® who are annually elected to be PAC Trustees by C.A.R.’s board of directors. The CREPAC trustees meet throughout the year to evaluate and decide which candidates and incumbent legislators should receive C.A.R.’s financial support. Local REALTOR® input always is sought and is a major factor in determining which candidates receive funding.
7. What if a member does not want to make a contribution to CREPAC/CREIEC?
A member may have his/her assessment go to C.A.R.’s general fund for political purposes, which goes to education and mobilizing members on issues of importance to the real estate industry and not to specific candidates.
8. When will the revised dues billing statement and legal verbiage be ready? How will it appear on the dues billing statement?
C.A.R. is working on the format of the revised dues billing statement for 2011. We expect that these forms will be ready in October/November, as is customary. All associations must include this detailed explanation on their dues billing statements. If an association uses electronic billing, the information also must appear.
9. What happens if a member does not pay the assessment?
As with all assessments and dues, failure to pay will result in termination of membership.
10. Can a member choose to pay only the local portion of the dues?
Practically speaking, no. The local association is responsible for the state and national portion of the dues and assessments even if it only collects the local portion. We are unaware of any local association that elects to pay state and national membership dues for members when it has not collected them from the member. In virtually all cases, the member would be terminated and then the local dues would be returned to the member.
11. Can a local association pay the political assessment on a member’s behalf?
If the local association fails to collect the assessment from the member, the local association still will be required to pay the assessment amount to the C.A.R. general fund to be used for political purposes. However, CREPAC and CREIEC will not accept PAC contributions from an association itself due to numerous legal issues.
12. What about members who join in the middle of the year?
The political assessment will be prorated for those members who join in the middle of the year. As other dues amounts are prorated monthly, the political assessment also will be prorated on a monthly basis.
13. How will the political assessment apply to a Designated REALTOR® (DR)?
The DR has responsibility for all licensees under the DR’s license. The DR pays for licensed agents (and appraisers) having a license with the DR under the variable dues formula. As a result, the DR will pay all dues and assessments (including the new REALTOR® Action Assessment) for all of his/her licensees listed under the non-member count. (For more information about the variable dues formula, see the Q&A by C.A.R. “Variable Dues Formula” on the Web site at www.car.org.) Brokers whose agents are members are not assessed under the variable dues formula.
14. How will the CREPAC contributions be reported?
As with all political contributions, these must be remitted within 30 days and deposited into the PAC. Associations must provide a printout of the members who paid at the time of each transmission. This is critical for political reporting. If it is the entire membership list, then the association should send the remittance with a statement to the effect that the entire membership is the contributor list after verifying contributions have been received from each member. To help avoid incorrect filings, it’s critical that local associations check their respective lists and make certain that either all members on that list have paid, or that those who have not paid have been removed.
15. How will assessments to the C.A.R. general fund for political purposes be reported?
This will be allocated to the political assessment fund and will be treated similar to a dues payment. As this is not a political contribution into a PAC, the names of these individuals will not be reported to the state political authorities as a contributor. Members who opt to pay the political assessment to the C.A.R. general fund for political purposes must have their names removed from the contributor list provided by the local association detailing CREPAC contributors or separated from the list and designated as opting into the assessment for political purposes. These assessments can be called “opt-over” assessments.
16. Will Affiliate members and Allied Industry members be required to pay the state political assessment?
Affiliate members and Allied Industry members will not be assessed. This includes both State Affiliates and State Allied Industry members, as well as Local Affiliates and Local Allied Industry members. However, contributions from them still will be welcome.
17. Will Honorary members be required to pay the state political assessment?
No. C.A.R. bylaws exempt state Honorary members (members for life) from assessments. However, they still may be encouraged to contribute to the State REALTOR® Action Fund (CREPAC and CREIEC).
