Download - Bill Sorrell Affidavit, Re: Little Investigation

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    Declaration of William H. Sorrell

    I, William H. Sorrell, under penalties of perjury, declare the following

    to be true and correct to the best of my knowledge and belief:

    1. I am and have been the Attorney General for the State of Vermont since 1997. My personal integrity, the integrity of the Office I hold

    and zealous adherence to my oath of office have been and remain of

    the utmost priority for me.

    2. I have not violated the law in the performance of my duties as Attorney General nor besmirched the ethical obligations attendant

    with being the states chief law enforcement officer.

    3. In this Declaration, I speak only for myself and my campaigns. To the extent Mr. Toensing makes claims against other individuals or

    organizations, I cannot and do not speak for them.

    4. In the interest of avoiding repetition in responding to the individual counts, I ask that my responses to individual counts be considered

    regarding other counts, if relevant.

    COUNT ONE

    5. Former Governor Howard Dean was a strong supporter of my candidacy in 2012. He publically endorsed my candidacy at a press

    event, attended and made remarks at two or three fundraisers and

    joined me on one occasion for the recording of one or more radio

    spots. Early in the campaign Governor Dean made one suggestion consisting of about one sentence and one sentence only regarding my campaign strategy, which I followed. I neither requested nor

    received other strategic advice from Governor Dean. He was never

    made an agent of the campaign for any purpose, nor was he asked or

    empowered to represent the campaign in interactions with any

    individual or organization, including the Democratic Attorneys

    General Association (DAGA) or the Committee for Justice and

    Fairness (CJF).

    6. During the 2012 campaign, I reported campaign expenditures to the Vermont Democratic Party (VDP) totaling $13,000, as detailed in

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    my filings of October 15 and November 13, 2012. These filings are

    attached as exhibits to this Declaration.

    7. Neither on July 25, 2012 nor on any other date did my office issue guidance to (clear) the way for theCJF expenditures made on (my) behalf during the primary.

    8. I note as background and to clarify that, until the August, 2012 date on which the first CJF television ad involving Howard Dean

    espousing my candidacy was broadcast in Vermont, I had absolutely

    no idea that DAGA or CJF had any plans or had taken any action to

    support my candidacy. I had no idea Howard Dean had even talked

    with anyone affiliated with DAGA or a DAGA-funded PAC. The

    television ads and other advertising expenditures espousing my

    candidacy were created and distributed without my knowledge. I

    first learned of the television ads existence when I received a media call asking for my reaction to its airing. I was not aware of the

    existence of the Committee for Justice and Fairness (CJF), let alone

    whether it was or is an independent-expenditures-only PAC.

    9. My Offices guidance and related press release expressing an intention not to enforce contribution limits spelled out in Vermonts campaign finance laws for independent-expenditure-only PACs

    were prompted solely by a July 18, 2012 notice to the state of the

    existence of Priorities PAC, an independent-expenditures-only PAC. We changed our guidance and decided not to enforce the

    contribution limits for independent-expenditures-only PACs in order

    to avoid potentially costly and, for the State, unsuccessful litigation,

    in light of various federal court decisions, including a decision by

    Judge William Sessions in Vermont Right to Life Committee v.

    Sorrell, 875 F.Supp.2d 376 (2012), which made clear that such

    limits were unconstitutional. I attach our press release in this regard.

    10. The television ad created by CJF was about the mortgage foreclosure crisis. The radio ads, scripted by my campaign without

    DAGA or CJF involvement, were about my work fighting Big

    Tobacco and my efforts to reduce environmental pollution. A

    transcript of all three ads is attached.

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    11. During the summer of 2012, I heard from a friend and former AG about a Vermont resident Jim Jordan, who works on national

    campaigns. Jordan supported my candidacy.

    12. At a meeting in Bennington County, Jordan indicated he could connect us with a firm that could help us with media placement.

    Ultimately, he put my campaign in touch with a man named John

    Hutchinson of Media Strategies. Discussions ensued as to our

    budget for radio spots, etc., he advised us we would need wire the

    payment to his firm and the ads would be aired. We followed his

    wiring instructions and effected payment in mid-August.

    13. Until the McMullen allegations/filing some months later, we had no idea that DAGA and Media Strategies were apparently located in the

    same building. Looking at Media Strategies website at present, it

    appears that that company is no longer located at that address.

    14. We have no information to establish DAGA and Media Strategies are at all affiliated and we believe they are not affiliated.

    15. Neither I nor my campaign requested that Howard Dean provide advice to DAGA and/or CJF. Similarly, neither I nor my campaign

    has any knowledge of any advice Governor Dean may have

    provided those entities, if he did.

    COUNT TWO

    16. I am not familiar with detailed facts relating to DAGA and CJFs actions and inactions in connection with their involvement in the

    2012 Attorney Generals race in Vermont. I have no authority to speak for them. Given their support of my candidacy, I could not

    ethically be involved in looking into the allegations against them.

    However, I am aware that, after the matter was referred to the

    Addison County States Attorney, that office declined to bring any charges.

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    COUNT THREE

    17. To the best of my knowledge, my campaigns have met all obligations to accurately report campaign expenditures. The amount,

    date, to whom paid and the purpose of the expenditures have been

    disclosed in public filings over my nine separate campaigns for

    Attorney General.

    18. To the extent that I used block expense claims to describe expenditures of my campaign, I did not and do not believe that such

    descriptors violate the law. I did and do believe the description

    reimbursement or other such general description is sufficient for purposes of the law. To my knowledge, this has been the custom

    and practice of numerous candidates for office over the years that I

    have been Attorney General.

    COUNT FOUR

    19. The September, 2014 press event with Dean Corren described in the Complaint highlighted an issue that has long been a priority for me

    and my Office, i.e. periodic gasoline price disparities between retail

    prices in northwestern Vermont as compared to elsewhere in the

    state. I participated in that event in my role as Attorney General. It

    was not a campaign event.

    20. During the 2013-2014 legislative session, I strongly and publically supported a House bill, sponsored by Rep. Pearson, that would have

    required gasoline distributors to provide more information on

    pricing issues to my Office and would have required advance notice

    to my Office of the planned sale of a gasoline wholesaler or retailer

    to a competitor. I testified in favor of the bill in the House

    Transportation Committee. Unfortunately, the bill did not advance.

    21. During 2014, I again observed significant price disparities in the State. As Attorney General, I questioned the reason for the high

    prices, particularly in light of the fact that stations in northwestern

    Vermont are closer to Canadian distribution points than stations in

    surrounding counties. I also noted the fact that certain parties in the

    gasoline business were litigating, allegedly for environmental

    reasons, Costcos plans to sell retail gasoline. (Costcos sale of

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    gasoline would significantly increase competition in the area.) I

    mentioned my continuing support for the bill and my hope that the

    2015 session of the legislature would again take up the bill that had

    failed to gain passage in the previous session.

    22. At Governor Shumlins re-election kickoff event in Burlington in early September, Rep. Pearson asked me if gasoline price disparities

    were still of importance to me. I indicated very much so. He said he

    was working on the Corren campaign and stated that Dean Corren

    was looking to address the pricing issue at a press event, stating his

    support for the proposed legislation. Rep. Pearson inquired whether

    I might be willing to appear at the press event and state my support not for Dean Corren, but for the proposed bill. I indicated I might be

    willing to do so.

    23. Rep. Pearson again communicated with me a week or so later and there followed some communications about scheduling. I was sent a

    draft press release that included statements critical of Senator Dick

    Mazza. I responded I would not participate in any press event that

    included criticism of the senator. The language was removed from a

    subsequent draft. I also had the opportunity to review some visual

    aids for the press event. These were, as I recall, graphs depicting

    gas price increases and disparities between prices in different parts

    of the state and at different times. I believe they were prepared by

    Senator Sanders office.

    24. I appeared at the press event on a sidewalk in front of a Burlington gas station at the North Street and North Avenue intersection. There

    were a handful of media present, one or more state legislators, Dean

    Corren and perhaps two or three of his campaign staff and myself.

    The graphs were on one or two easels and were referred to during

    the press event. Except for the possibility of a Corren button or

    sticker worn by Corren and/or his staff, I saw no campaign banners,

    signs or literature. At no time during the press event or at any time

    during the campaign was I asked to or did I endorse Correns candidacy. Correns remarks and answers to media questions, as well as my own, were, in my memory, limited to the gas pricing

    issues and the proposed legislation.

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    25. This was not a campaign rally. Indeed, it was much like other issue-focused events I participated in during 2014 as part of my job as Attorney General. State emails and other resources were

    appropriately used by my office in planning with coordinators of the

    event because a crucial part of my duties as Attorney General is to

    raise awareness about issues of concern to Vermonters and support

    legislation that I believe will address those issues.

    COUNT FIVE

    26. As Attorney General, I have a longstanding policy of accommodating the vast majority of meeting requests I receive. I

    personally participate in many such meetings. Other times, I ask one

    or more Assistant Attorneys General (AAGs) to meet with the

    individual or organization seeking the meeting. The policy remains

    the same whether one has or has not financially supported my

    candidacy.

    27. As Attorney General, I feel a responsibility to be accessible to constituents and others making reasonable requests to meet. Often,

    individuals request meetings to advocate action by my Office against

    or relating to an individual, a company or an industry. Other times

    the request comes on behalf of a potential target of some form of

    enforcement action contemplated by my Office. I have typically

    used these meetings to obtain information so that my Office might

    make more informed future decisions on taking or declining to take

    some official action.

    28. I have never once in my career insisted on or even requested any campaign support before I would meet or otherwise discuss issues

    relevant to the position I hold.

    29. The DAGA. To the best of my knowledge, DAGA operates like the Republican Attorneys General Association (RAGA) and the

    Democratic and Republican Governors Associations (DGA and

    RGA). I believe DAGA was formed two or so years after the

    creation of RAGA. In June, 2005, when I assumed the presidency of

    the National Association of Attorneys General (NAAG) at a meeting

    in Santa Monica, CA, in my speech to the AGs, I called for the

    elimination of RAGA and DAGA. I suggested they are not

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    beneficial to the collegiality that is helpful in our joint efforts. I also

    suggested it is unseemly that the organizations receive large sums

    from entities potentially subject to our enforcement efforts.

    30. During my year as NAAGs President, RAGA and DAGA continued to exist. I was told that certain Washington, DC officials connected

    to RAGA opined that my suggestion was simply a partisan attempt

    to disarm the opposition because RAGA was, and remains, much

    more successful at fundraising and spending money in AG

    campaigns than DAGA.

    31. I continue to regret the existence of RAGA and DAGA, but I do attend certain of DAGAs events.

    32. The Facebook Event. This event resulted from a Facebook presentation to a bipartisan group of Attorneys General at a

    Washington, DC NAAG meeting in late February or early March of

    2014. Facebook indicated a willingness to come to individual states

    and make a presentation on online safety for youth, particularly

    relating to social media. One of the AGs present spoke favorably

    about a Facebook presentation in his state. After my return to

    Vermont, I spoke to my consumer protection staff about their

    interest in a Facebook presentation in Vermont. They felt it a good

    idea. We reached out to Facebook and approximately two months

    later we sponsored a well-attended evening presentation at Essex

    High School for students, parents, teachers and administrators. The

    presentation was filmed by local access TV for broadcasting around

    the state and is available on our office website.

    33. The AT&T Event. Some months earlier, with Vermont highway safety personnel, I arranged for and participated in a well-received

    AT&T sponsored presentation at a Windsor County high school on

    the dangers of texting while driving.

    34. Meeting with AT&T Officials. I met with high level officials of AT&T in Washington, DC. I was concerned about cramming, the practice of unknown and unwanted charges on customers monthly cell phone bills for services supposedly provided by third parties. I

    had been crammed on my state cell phone account and my Office

    had conducted surveys indicating that cramming was a widespread

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    practice in Vermont and was costing Vermonters many, many

    thousands of dollars. I received unsatisfactory responses to my

    questions from AT&T.

    35. During the period 2013-2015, my office took the national lead in a 50 state effort to address cramming by the nations four major wireless carriers. I reached out to federal regulators. Ultimately, the

    FTC, FCC and CFPB all engaged on the issue. During this past ten

    months, I have twice journeyed to Washington, DC to announce

    major state and federal settlements with the carriers, including

    AT&T, resulting in approximately $400M in restitution amounts for

    consumers and approximately $100M in payments primarily to the

    states with approximately $20M going to the federal treasury.

    36. Meeting with Lawyers for Five Hour Energy. During 2014, I took a meeting in Vermont relating to Five Hour Energy, at the

    request of attorneys from a DC law firm. While not relevant to my

    decision to take the meeting, I note this firm has contributed to my

    campaigns. Within a few months of the meeting, Vermont, with two

    other states, filed a consumer-protection lawsuit against Five Hour

    Energy. Some other states have subsequently filed similar litigation.

    The cases are pending.

    37. There are numerous other instances that I can provide in which contributors to my campaigns have requested that my Office do

    something or refrain from doing something, and I have taken actions

    contrary to those requests.

    38. Meeting with Representatives of Comcast. Comcast gave a presentation at a DAGA meeting, touting the advantages of a

    contemplated merger with Time Warner. Vermont was among the

    states concerned about a reduction in competition if the merger went

    forward. We engaged with the Department of Justice on the issue

    and ultimately Comcast scrapped its plans for the merger.

    39. The Patent Troll Suits. Vermont became the first state to file a state enforcement action against an alleged patent troll when we sued MPHJ Technologies in the spring of 2013. My Offices concern about patent trolls resulted not from requests or suggestions

    by national corporations or their counsel, but rather from my

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    requested attendance at a meeting in Vermont in the spring of 2012

    with representatives of several well-known Vermont companies,

    including My Web Grocer. They talked about their victimization by

    patent trolls and asked me and the Secretary of Commerce to try to

    help address the issue.

    40. With strong support from my office, a first of its kind in the nation statute prohibiting bad faith assertions of patent infringement was

    enacted by the legislature in 2013. I have spoken at NAAG

    meetings and to various groups about Vermonts efforts in this arena. Other states and the FTC have subsequently engaged with

    MPHJ and approximately 20 states now have statutes akin to our

    Vermont law. I have testified before at least one Congressional

    committee urging that state statutes, like Vermonts, not be preempted by federal law. Our litigation against MPHJ continues in

    state and federal court. Vermonts anti-patent troll efforts have pleased any number of national corporations, including clients of the

    Dickstein Shapiro law firm.

    41. My Travel. I am frequently asked to speak in different locations in Vermont and around the country on GMO labeling, patent trolls,

    campaign finance reform, consumer privacy and other issues. When

    asked to travel out of state, other than for certain NAAG functions or

    Congressional testimony, I typically only agree to do so if Vermont

    taxpayers will not need to pay my travel expenses. Consequently, in

    the past year, I have had travel expenses covered by the likes of Yale

    Law School, the American Conference Institute and the National

    Attorneys General Training & Research Institute (NAGTRI).

    42. In February of 2014, I responded to an email by an attorney, who offered me use of her ski house. I stated, Colorado skiing would be fun! In truth, I would like to ski some day in Colorado. It would be fun to do so. But I have yet to ski in Colorado.

    43. The MTBE Suit. I have never accepted $10,000 in campaign contributions (or any amount) in return for filing a lawsuit and

    retaining as counsel those making the contributions.

    44. At a dinner at a DAGA or AGs meeting in late 2013, I was joined at a table by Michael Messina and some Texas lawyers with whom he

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    indicated he is affiliated. Mike Messina is married to former New

    Mexico AG Patricia Madrid, known as Patsy. I do not specifically

    recall Patsy being at the dinner table, but it is certainly possible she

    was present.

    45. Many years ago I was part of an AGs delegation to Israel with then-General Madrid. Mike was among the spouses making the trip.

    Mike and Patsy became and remain friends. They supported me

    financially in my 2012 campaign. Over the years they have invited

    me to visit them in New Mexico. I have yet to do so.

    46. Just before sitting down to dinner, Mike gave me an envelope saying that he and the attorneys from the Texas firm Barron & Budd (B&B)

    wished to contribute to my campaign for re-election. I thanked them

    and accepted the envelope. During the dinner, Mike and the B&B

    attorneys mentioned they are involved in national MTBE (a gasoline

    additive no longer in use) litigation and they suggested they would

    come to Vermont at a future date to discuss the possibility of

    Vermont suing the oil and gas industry, if I was interested. I

    indicated I was aware of the MTBE issue and would talk to some

    folks in Vermont and get back to them if a meeting made sense.

    They gave me some printed material about their firm and a memo

    they had prepared about the pending litigation which included, I

    believe, some attention to the specifics of relevant Vermont law. I

    took the folder or manila envelope but did not then or ever read its

    contents.

    47. Later that evening or the next morning I opened the contribution envelope and found $2000 checks to my campaign. Each of these

    contributions was duly reported on my next campaign finance filing.

    48. During my time as AG, there have been a number of occasions when former AGs and/or other counselsome campaign contributors, some nothave approached me about Vermont potentially retaining them for litigation relating to issues like opioid marketing practices

    by pharmaceutical companies, flame retardants in furniture and

    clothing, etc. My standard practice has been to ask them for a memo

    on the facts they have uncovered and their applicability to Vermont

    law. If they supply such information, I turn it over to AAGs

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    working in the relevant substantive area for review, response and

    recommendation.

    49. As stated, I was aware of MTBE litigation. My Office had been following the issue for a number of years. Matt Pawa, a Boston

    attorney we had worked with on other issues in the past, was

    representing one or more plaintiffs in MTBE litigation for alleged

    groundwater contamination. Attorney Pawa inquired of my

    Environmental Protection Division (EP) whether we would be

    interested in considering a lawsuit. Scot Kline is Chief of EP in my

    office. He reached out to the Agency of Natural Resources (ANR)

    during the Douglas Administration inquiring as to their interest in

    the issue. ANR support would be important since much of the

    records reviews and necessary pre-trial preparation for a lawsuit

    would fall to ANR personnel. When asked, ANR was not interested

    in the litigation.

    50. Subsequently, the PAWA firm obtained a judgment for $100s of millions against one of the major oil companies on behalf of the

    state of New Hampshire. Other MTBE cases had been consolidated

    in a multi-district litigation lawsuit (MDL) in federal court in New

    York and the trial judge had made some decisions favorable to

    plaintiffs.

    51. After returning to Vermont from the meeting at which the dinner occurred, I gave the B&B materials to Scot Kline for his review. He

    told me about the MDL and the New Hampshire case judgment. I

    asked him to check with the current ANR hierarchy to determine

    whether theyd like to discuss the possibility of suit. He did so and the state officials were most interested in talking with us. In late

    February, 2014, I met with Department of Environmental

    Conservation Commissioner David Mears, one or more of his staff,

    Scot Kline and one or two other EP AAGs at our offices. I made

    very clear that this was simply to discuss the possibility of litigation

    and to gauge their interest. I also made clear that if ANR/DEC was

    not fully supportive, we would not take any MTBE-related actions

    on behalf of the state. We discussed, among other issues, that we had

    potential statute of limitations concerns as of approximately late

    June, thus, we would need to move rather expeditiously if we

    wanted to pursue the possibility of suit. It was also made clear that

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    DEC personnel would need to be active participants in the next few

    months if we were going to engage in records reviews, etc.

    52. Commissioner Mears and his staff were most enthusiastic about pursuing a lawsuit. We indicated that in the event of suit, our Office

    would intend to be lead counsel, but we would certainly need

    outside counsel assistance if we were going to sue. I believe the

    B&B offer to come to Vermont to discuss litigation and perhaps

    review some records was mentioned in the meeting. There was

    certainly discussion that a decision on outside counsel would need to

    be a priority.

    53. It was only at this point that my staff communicated with B&B and agreed to a Vermont meeting. B&B attorneys and Mike Messina

    journeyed to Vermont for a meeting I did not attend. Matt Pawa

    (never, to my knowledge, a contributor to any of my campaigns) was

    invited to come to Vermont to discuss the possibility of a Vermont

    MTBE lawsuit. I sat in a portion of that meeting. At no time did I

    speak to Scot Kline or anyone else about what firm or firms we

    should retain to assist our office in an MTBE case. At no time

    during this decision-making process, did I inform my staff of what

    firms or entities had contributed to my campaign. I was unaware

    that a NY law firm was co-counseling with B&B in the MDL case.

    Ultimately, after interviews by Scot and others from EP and DEC

    staff, Scot informed me that their joint recommendation was for us

    to retain B&B, the NY firm, Mike Messina and the PAWA firm. I

    indicated I was fine with that and we should move ahead.

    54. We thereafter engaged in discussions/negotiations primarily with B&B for a contingency fee arrangement binding the four firms. We

    pushed back on the initial suggested retention agreements and

    ultimately agreed on terms significantly more favorable to Vermont

    in the event of a recovery, than those initially suggested. The firms

    will cover the vast majority of pre-trial expenses and will not receive

    any reimbursement of expenses or a percentage of recovery unless

    there is a judgment or settlement in favor of the state.

    55. There was absolutely no violation of state or federal law on my part in conjunction with the MTBE lawsuit or retention of outside

    counsel.

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    COUNT SIX

    56. I was successfully represented by Richard Cassidy when I was sued by Jack McMullen in connection with the DAGA/CJF allegations

    back in late 2012.

    57. Richard Cassidy and his wife are close personal friends of mine and my siblings. They have frequently attended gatherings at my home.

    I have dined and socialized at their residence.

    58. The complaint alleges that the states settlement of a matter involving two clients represented by Attorney Cassidy two days

    after a decision by the Chittenden Superior Court in my favor in the

    McMullen case constituted an indisputable conflict of interest.

    59. As of January 30, 2013, the date of the settlement, I was unaware that Richard Cassidy was representing any client in a matter in

    conflict with my Office. Richard Cassidy never, during our

    discussions prior to that date, mentioned he represented a party in a

    dispute with the Office, let alone the substance of any settlement

    discussions.

    60. I have approximately 80 AAGs in my Office. I have active involvement in discussions and certain decisions relating to major

    civil and criminal cases, but there are numerous lawsuits and

    disputes involving my Office of which I am unaware and/or play no

    part in case decisions.

    61. I was never, prior to the settlement, aware of the case or the substance of any settlement discussions at issue, even without

    knowing of Attorney Cassidys involvement. I do not believe I took any action contrary to the best interests of the State of Vermont in

    the case in question.

  • Transcripts of Ads

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    Transcripts of Ads

    1. Democratic Attorneys General Association TV Spot

    Governor Dean (30 seconds)

    They sold dishonest mortgages and illegally foreclosed on peoples homes.

    But when the big banks tried to get away with it, one man in Vermont held them

    accountable.

    Attorney General Bill Sorrell cracked down on deceptive bankers and won

    millions in relief for homeowners.

    Hes fought to stop predatory lenders and protected seniors from scams.

    Im proud to call Bill Sorrell my friend, but more proud to call him Vermonts Attorney General.

    2. Re-Elect Attorney General Bill Sorrell Radio Spots

    Radio Script #1 for Gov. Dean Radio Spot 60 second spot

    Governor Dean (45 seconds)

    This is Governor Howard Dean. Im supporting Attorney General Bill Sorrell in the democratic primary on August 28.

    Like me, Bill Sorrell is willing to take on the tough fights without regard to

    political consequence.

    Bill Sorrell successfully fought Big Tobacco and secured Vermont over $300

    million dollars.

    Bill Sorrell successfully fought the auto industry to make Vermont a national

    leader in the effort to reverse global climate change.

    And Bill Sorrell successfully fought the Bush Administration over the EPAs environmental regulations.

    For fifteen years Attorney General Bill Sorrell has been fighting to make Vermont

    cleaner safer and healthier. Now it is time for us to fight for him.

    Join me and vote to re-elect Attorney General Bill Sorrell in the democratic

    primary on August 28th

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    AG Sorrell (12 seconds):

    This is Attorney General Bill Sorrell. I am honored to have the support of Howard

    Dean and I would be honored to have your vote in the democratic primary on

    August 28.

    Please visit BillSorrell.com learn more about my campaign.

    Public Announcer (03 seconds):

    Paid for by the Sorrell Campaign Committee, P.O. Box 809 Montpelier, Vermont.

    Radio Script #2 for Gov. Dean Radio Spot 30 second spot

    Governor Dean (26):

    This is Governor Howard Dean.

    For fifteen years Attorney General Bill Sorrell has fought to make Vermont

    cleaner, safer and healthier

    Bill Sorrell has fought to secure hundreds of millions of dollars for Vermont

    taxpayers;

    And Bill Sorrell has fought to make Vermont a national leader in the effort to

    reverse global climate change.

    For fifteen years Bill has fought for us, now its time we fight for him.

    Join me and vote to re-elect Attorney General Bill Sorrell in the democratic

    primary on August 28th

    .

    AG Sorrell (03 seconds):

    Paid for by the Sorrell Campaign Committee, P.O. Box 809 Montpelier, Vermont

  • Sorrell Campaign Finance Disclosure FormOctober 15, 2012

  • Sorrell Campaign Finance Disclosure FormNovember 13, 2012

  • ATTORNEY GENERAL'S GUIDANCEREGARDING INDEPENDENT

    EXPENDITURE COMMITTEES

  • ATTORNEY GENERAL'S GUIDANCE REGARDING INDEPENDENT EXPENDITURE COMMITTEES

    Under Vermont's campaign finance laws, a "political committee" or "PAC" is any entity or group of individuals that receives and spends more than $500 in a calendar year for the purpose of supporting or opposing a candidate in a Vermont election. Vermont's statutes do not distinguish between a PAC that makes contributions to or coordinates with a candidate and one that conducts its activities entirely independent of any candidates. Thus, Vermont's requirements regarding registration, reporting and contribution limits for P ACs apply equally to all entities or groups that attain PAC status. In other words, all Vermont P ACs must complete the registration process, file appropriate disclosure reports with the Secretary of State's Office, and comply with statutory contribution limits.

    Since the Supreme Court's decision in Citizens United v. Federal Election Commission, 130 S. Ct. 876 (2010), a number of federal appellate courts have held that limiting contributions to P ACs that make only independent expenditures is not constitutionally permissible. Consistent with these decisions, Judge Sessions of the federal district court of Vermont expressed a similar view in his recent opinion issued in Vermont Right to L~re Committee v. Sorrell, Docket No. 2: 1 0-cv-188, on pages 59-63 and 78. VRLC has appealed Judge Sessions's decision to the Second Circuit Court of Appeals.

    While the VRLC case is pending on appeal and until further guidance is received from the Second Circuit or Vermont courts, the Attorney General's Office will follow Judge Sessions's opinion regarding contribution limits for independent expenditure PACs. Accordingly, the Office will not enforce the $2000 contribution limit for those P ACs that demonstrate they make only independent expenditures. Of course, such groups must continue to comply with Vermont's registration and reporting requirements. Further, to be clear, if investigation reveals, as Judge Sessions found in the VRLC case, that a PAC's political activities are not conducted entirely independently of candidates, the PAC will continue to be subject to Vermont's contribution limits.

    Dated: July 25,2012

    Declaration of General Sorrell FINAL 13 page.pdfSorrell Signature PageTranscripts of Ads coverDAGA TV Spot Sorrell Radio Spot1Sorrell Campaign Finance Disclosure FormOctober 15Oct 13 2012 CF DisclosureSorrell Campaign Finance Disclosure FormNov 13Nov 13 2012 CF DisclosureAG's guidanceIndependent Expenditure Guidance- 07-25-12 - HKT2L87