PAC FACTS

Answers to Frequently Asked Questions Regarding the HBACA PAC

Why do we need Political Action Committees (PACs)?

Although an individual may personally support or oppose candidates with few restrictions other than limits on contribution amounts, state and federal laws prohibit individuals from collectively raising funds to contribute to candidates without forming a political action committee.

What is a PAC?

A PAC is simply a group of citizens sharing a common interest that have joined together to impact the political process. Most unions such as teachers, carpenters, electricians, autoworkers and flight attendants have PACs. Activist groups have PACs, including the NRA, pro-life and pro-choice groups, AARP, environmental organizations, etc. Many businesses and business associations also have PACs. The Home Builders Association of Central Arizona, chambers of commerce, and National Federation of Independent Business are all good examples of business associations with PACs. In other words, at some point in our lives, most of us either have been or will be represented in the political process by a PAC. It is the only legal way that people can pool their resources to contribute directly to candididates who support their cause.  Contrary to what we are constantly told by a few outspoken anti-PAC groups who insist on referring to PACs as “special interests,” PACs really do represent a majority of Americans.

We often hear a lot of negative things about PACs. Why?

Quite frankly, we’re not sure where the PAC bashing trend began. It most likely stems from several decades ago when PACs had very few rules to follow, and they could make unlimited contributions to candidates. Today, contributions are extremely limited, and PACs are highly regulated on both the state and federal levels. Every penny that comes into and goes out of the PAC must be reported to either the Secretary of State’s office or Federal Election Commission. Additionally, here in Arizona PACs are required to report to city and town clerks if they make any expenditures supporting or opposing city or town candidates. And, these reports are public record. Any person or group who wishes to audit a PAC report is free to do so. Individuals, on the other hand, are not required by law to report campaign contributions. The reporting of individual contributions is left solely to the candidate which makes it much more difficult to gauge where a candidate’s support is coming from. If a candidate accepts a contribution from XYZ PAC, you can be sure that the candidate is in agreement with XYZ on their issues. Although individuals do have to disclose their employer when making a contribution, they are not required to identify social or activist organizations that they may be part of. This makes it much more difficult, with individual contributions, to gauge a candidate’s base of support.

What is the HBACA PACs mission?

The HBACA PAC has been formed to support candidates who understand the benefits of economic development and are supportive of home builders and other industries involved in the construction of new homes. The HBACA PAC is non-partisan; any candidate who befriends our industry is eligible for support. The PAC also works to support or oppose legislation and/or initiatives or referendums that will have a positive or negative impact on the home building community.

I don’t work for a home builder, so why should I support the HBACA PAC?

The benefits of new home construction don’t stop with those of use who actually work for home builders. It takes people from all walks of life to put together a house. Just stop and think for a moment how many of us work for companies that make products used in new home construction? To build a home you need electricity, light fixtures, heating and cooling systems, pipes and ductwork, plumbing, water and sewer, carpet, tile, concrete, lumber, roof tiles, stucco, plants, sinks and faucets, drywall, doors and windows, cabinets, appliances, smoke detectors…the list is virtually endless when it comes to the many products needed to make a new home complete and comfortable. Home building also requires the services of many professionals and trades including architects, engineers, interior designers, landscape architects, framing contractors, pool builders, lighting designers, carpenters, plumbers, pipe fitters, electricians, painting contractors, graphic artists, attorneys, etc… And getting buyers into their new homes requires the services of realtors, bankers, mortgage lenders, credit researchers, title companies and movers. And, once people have moved into their new home they need window coverings, furniture, linens, kitchen and bath supplies, lawn and garden tools, and much, much more. In other words, it would pretty hard to find a household that doesn’t have at least one member who directly benefits from new home construction.

And think about the industries that indirectly benefit from new home construction. With new home developments come stores and shopping malls, restaurants, gas stations, golf courses, banks…well, you get the point! Everyone benefits from new home construction.

Does the PAC accept corporate contributions?

NO. 100% of the PAC’s income comes from individual contributors. Per state and federal statutes, corporations are prohibited from contributing directly to candidates. Since a PAC's mission is to provide funding to candidates, they also are prohibited from accepting corporate contributions. It is perfectly legal though to use corporate dollars for independent campaigns, issue campaigns, and to pay for a PAC’s administrative and fundraising expenses. We will gladly accept corporate contributions from HBACA member companies to help us with independent campaigns, issue campaigns and PAC administrative expenses, but these monies are deposited into a bank account entirely separate from the PAC. This account is known as our PAC Administrative Fund.

What is my contribution to the PAC used for?

The HBACA PAC uses the contributions it receives to support candidates who are friends of the home building community and share our belief that economic development is critical to a healthy economy. We support candidates by making direct contributions to their campaigns. We also promote candidates independently of their campaign committee. This type of promotion is referred to as an “independent expenditure,” and is typically used when a candidate has reached his/her limit in PAC contributions.

From time to time PAC funds are also used to support or oppose issue campaigns. One such issue campaign that we opposed was 2000’s Prop. 202, the Citizens Growth Management Initiative sponsored by the Sierra Club. Had this initiative passed, it would have proven devastating to home building and economic development in Arizona. It also would have caused jobs to disappear for many of us employed in the home building industry. Thanks to your active participation, Prop. 202 was defeated by a margin of more than two-to-one. A more recent example is Prop. 201 in 2008.  Misleadingly titled the Homeowners Bill of Rights, Prop. 201 was actually an attempt to force residential trades to unionize.  Voters defeated this one by a 3-1 margin

How much does it cost to become a PAC member?

Although there is no set contribution amount, the minimum we suggest is $10 per person per year. In order for us to maintain our status with the State as a “Super PAC” – a designation that allows us to make a contribution to candidates that is five times larger than the standard PAC – we must maintain an annual membership base of 500+ contributors giving a minimum of $10 each. We encourage you to give more if at all possible as every additional dollar received helps us further our mission. Of course, if $10 is more than your family budget can handle, we’re happy to accept less…whatever you can give.

What percentage of my contribution is used for overhead and administration of the PAC?

Less than 5%. Virtually every dollar you contribute to the PAC is used in support of our mission. From time to time the PAC does encounter expenses that we are required to pay directly out of our PAC account in order to comply with state or federal statutes, but these are few and far between.

The PAC’s overhead, administrative and fund raising expenses are covered by the Home Builders Association directly, and through our PAC Administrative Fund which receives its funding from voluntary corporate contributions made by HBACA member companies. The bank account for the Administrative Fund is entirely separate from the PAC’s bank account, and monies from these two separate accounts are never co-mingled.

Who is in charge of the PAC?

The HBACA PAC is governed by a steering committee which is comprised of both builders and associate members. Leading the steering committee each year is HBACA’s Incoming Chairman or another Board member. The HBACA PAC’s day-to-day operations are handled by our PAC administrator Scot Mussi.

Is there someone I can talk to if I have additional concerns or questions?

HBACA’s PAC Administrator Scott Mussi can be reached by phone at (602) 274-6545 or via email at mussis@hbaca.org.  You can also contact HBACA's VP of Member Services Jim Sorgatz at (602) 274-6545 or sorgatzj@hbaca.org.