THE TWO KEY FACTS
(click links below to see source documents)

FACT ONE: From March 7 through July 10, 2007, the BIAW¹ conducted an illegal fundraising campaign to build a “war chest” to support Dino Rossi’s 2008 governor’s race.

• BIAW officers “personally approached each of BIAW’s 15 local builder associations and requested they contribute some or all of their excess unanticipated retro funds” to a war chest for the 2008 governor’s race (Source: AG Complaint ¶ 3.5. [EX A]; PDC Executive Summary p. 3 and Investigative Report at ¶¶ 3.3, 3.4, 3.9–3.11 [EX B]² )
• The funds were solicited for assisting Dino Rossi’s run for governor. Master Builders Association (MBA) Executive Director Sam Anderson described that “BIAW had made a decision in early ’07 that they were going to support Dino Rossi if he ran” and approached local groups, including MBA, asking for contributions to a “Fund for Rossi.” Anderson Interview with PDC [EX C]. One local association President, in describing his Board’s decision to give a $10,000 donation, stated “The enthusiasm over another shot at the governor’s office by Dino was unanimously welcomed.” Email from Bill Quehrn to Tom Kwieciak, July 11, 2007 (Source: PDC investigative files. [EX D]).
• This fundraising campaign netted $584,527.53. (Source: Washington State AG Complaint ¶ 3.8 [EX A]).
• On September 15, 2008, the bi-partisan PDC adopted concluded that the fundraising campaign was illegal and committed “multiple apparent violations” of campaign finance laws.
• The PDC Staff Report, adopted by the PDC, focused on solicitations made to the Master Builders Association of King and Snohomish Counties (“MBA”) and three other local homebuilders associations. PDC Report of Investigation, at p. 6 [EX B]. The PDC referred the matter to the Attorney General.
• The Chair of the PDC concluded that the participants in this illegal activity reached a “meeting of the minds” and demonstrated an “egregious lack of judgment” that violated the spirit and the letter of the law.³
• On September 19, 2008, Attorney General Rob McKenna sued BIAW for its illegal fundraising campaign. The AG Complaint reflects the fact that in Washington State it is illegal for an organization to raise funds for electoral activities if it is not registered as a political committee and reporting its financial affairs. AG Complaint ¶¶ 4.1, 4.2 [EX A]. The AG Complaint claims that BIAW violated campaign laws “by concealing its solicitation and receipt of $584,527.53 in campaign contributions”. (Source: Washington State AG Complaint ¶ 4.3 [EX A]).

FACT TWO: Dino Rossi was a knowing and active participant in the illegal fundraising campaign.

April 30, 2007

• BIAW President Daimon Doyle attends MBA Board meeting and asks for a major donation to the BIAW war chest for the governor’s race. He explains that “senior officers introduced a resolution asking each of the 15 locals to donate excess retro funds beyond what they budgeted to gubernatorial fund.” Daimon asks for this donation from MBA. (Source: MBA Chair Officers and Board Minutes, April 30, 2007 [EX E] [EX F]).
• MBA Executive Director Sam Anderson testified to the PDC that the requested funds would go to a “Fund for Rossi.” PDC Interview with Sam Anderson, approximately minute 35:29. (Source: PDC investigative files [EX C])
• The amount requested was $576,682.22, based upon the excess retro funds beyond what was budgeted. (Source: Declaration of Sou Chiam submitted to PDC.)⁴
• Comments on the request included the fact that the MBA had a couple of major expenditures coming up, including building repairs, totaling several million dollars, and a question over whether the contribution would be “advertised” “inflaming the other party.” (Source: MBA Chair Officers and Board Minutes, April 30, 2007 [EX E] [EX F]).
• Board told Daimon that request would be taken up at next MBA board meeting. (Source: MBA Board Minutes, April 30, 2007 [EX F]).

May 21, 2007

• MBA “chair officers meeting” turns to “discussion regarding the request by BIAW to use excess money from the ROII refund to fund the BIAW’s war chest.” MBA’s three top officers Doug Barnes (then-President), Joe Schwab (then First VP), and John Day (then Second VP) “reported that they had received a call from Dino Rossi.” “John stated that he reiterated the Board’s sentiment to Rossi, stating that it was too early, and the Association had building issues that needed to be resolved.” (Source: MBA Board Minutes, May 31, 2007 [EX G]).

¹The term “BIAW” is used herein to refer to BIAW and/or its subsidiary BIAW Member Services Corp., which is consistent with these organizations’ use of the term.
²The full PDC report and exhibits are located at http://www.pdc.wa.gov
³The hearing is available from TVW at http://www.tvw.org
⁴PDC report and exhibits: http://www.pdc.wa.gov