STATE OF MINNESOTA

CAMPAIGN FINANCE AND PUBLIC DISCLOSURE BOARD

. . . . . . . . .

Wednesday, January 15, 2003

. . . . . . . . .

Blazing Star Conference Room

Ground Level, Centennial Office Building

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MINUTES

Meeting was called to order by Chair Kelley.

Members present:  Ashmore, Fluegel, Kelley, Milbert, Miller

Others present:  Olson, Sigurdson, Swanson, Drilias, staff; Huwe, counsel

Ms. Pauly informed Board staff that she would be unable to attend the meeting.

MINUTES  (November 20, 2002)

 

Mr. Fluegel's MOTION:           To approve the November 20, 2002, minutes as drafted.

 

Vote on MOTION:        Unanimously passed.

 

CHAIR'S REPORT

 

·         Board Appointments

 

Chair Kelley welcomed Terri Ashmore and Robert Milbert.  The Governor appointed Ms. Ashmore to Ms. Chambers' former position and Mr. Milbert to Mr. Spear's former position.  Both appointments were effective January 14, 2003.

 

·         Resolutions

 

Mr. Kelley's MOTION:             Resolved, that the Campaign Finance and Public Disclosure Board recognizes Allan Spear for his service from 2001 to 2003 as a member of the Board and offers this resolution in appreciation for his investment of time and energy in support of the mission and objectives of the Minnesota Campaign Finance and Public Disclosure Board; and

 

                                                Resolved, that the Campaign Finance and Public Disclosure Board recognizes Susan Stevens Chambers for her service from 2002 to 2003 as a member of the Board and offers this resolution in appreciation for her investment of time and energy in support of the mission and objectives of the Minnesota Campaign Finance and Public Disclosure Board.

 

Vote on MOTION:        Unanimously passed.

 

·         Nominating Committee

 

Chair Kelley reported that the nominating committee recommends the following slate of officers for 2003:  Clyde Miller, Chair, and Wil Fluegel, Vice Chair.

 

Mr. Milbert's MOTION: To accept the report of the nominating committee and declare the election of Mr. Miller, Chair and Mr. Fluegel, Vice Chair.

 

Vote on MOTION:        Unanimously passed.

 

Chair Miller presided over the remainder of the meeting.

 

Board Meeting Schedule

 

Next meeting is scheduled for February 24, 2003.   

 

EXECUTIVE DIRECTOR'S REPORT

 

Ms. Olson submitted the following written report:

 

·         Staff Activities

 

Mr. Kelley participated in a Continuing Legal Education seminar on January 10th entitled The Minnesota Legislative Process.  He presented information about lobbying and the gift ban.

      

Staff will hold an Informational Meeting for lobbyists on Thursday, January 16th.

 

Ms. Olson will be in Washington, D.C., on January 31st to speak to the Campaign Finance Institute Task Force on Financing Presidential Nominations.  She will present information about Minnesota's experience with public funding of political campaigns. 

 

Staff entered into a contract with Gary Goldsmith to develop new features for Finance 2002.  The contract runs through June 30th.  The Board received a supplemental appropriation in fiscal years 2002 and 2003 to maintain the application. 

 

All public subsidy agreements went out of effect on December 31, 2002.  New agreements were mailed to all candidates on December 31st.  Candidates were reminded that they may not issue receipts for 2003 contributions until the new agreement is signed.  

·         Legislation

 

Board members and Ms. Olson are meeting with key legislators to discuss the Board's legislative recommendations.  Based on meetings with Representatives Rhodes and Lipman, the Board may want to re-work the language at Minn. Stat. §10A.01, subd. 18(2), about independent expenditures.  The proposed language may be more restrictive than intended. 

 

Board members agreed by consensus that language regarding independent expenditures and expenditure limits should be written with assistance from legal counsel in the Senate and House of Representatives.

 

The Board may wish to offer an additional recommendation to provide that documents related to an investigation are nonpublic data.  Don Gemberling, Director of the Information Policy Analysis Division of the Department of Administration, offered assistance in drafting language to address the Board's concerns.

 

The Revisor of Statutes office added the repeal of Board rules that are duplicative or obsolete to the bill that contains the Board's recommendations.  Craig Lindeke suggested the addition as the least expensive way to remove duplicative or obsolete rules.

 

·         Personnel

 

Joyce Larson, Program Administrator, returned to the office December 11th following surgery and is now working full time. 

 

Ms. Olson reviewed the performance of LuAnn Swanson, Office Manager, and awarded her an achievement award in recognition of her work in paying a record number of candidates public subsidy, budget preparation, filling in open positions, and additional time spent during Board activities in October.

 

Jeff Sigurdson reviewed the performance of John Nesbitt, Information Systems Manager, and awarded him an achievement award in recognition of his work in assisting 2002 candidates in the use of Finance 2002.  The principal campaign committees of all four candidates for governor filed reports electronically, thereby reducing many staff data entry hours.

 

Patty Klingner, Programs Assistant, resigned her part-time position with the Board.  Under current state guidelines, the position will not be filled at this time.

 

·         Miscellaneous

 

Staff was informed by the Department of Finance that we must plan for a 20% decrease in the budget for fiscal year 2004.  The Board previously approved the required 10% decrease from the fiscal year 2003 budget.  It will be difficult to manage a 20% decrease without a further reduction in staff. 

Staff was also informed that the Department of Finance is looking at a fee for service structure for lobbyist registration and reporting. 

 

A list of finance and policy committees that deal with the Board and its issues and the members on those committees were available for Board members. 

 

The confirmation of the appointments of Ms. Ashmore and Mr. Milbert will by heard in the House committee on January 21st.  The Senate will hear the confirmations some time in February.

 

Enforcement Report

 

Consent Items

 

Board Action:            Authorization of a certified letter for late filing fees, which accrued because of the late filing of the Report of Receipts and Expenditures due October 28, 2002, and subsequent legal enforcement action if the fee is not paid.   Two reminder notices have been sent to each treasurer/candidate and staff attempted to contact each individual by telephone.

 

Michelle Plummer, treasurer, Timothy A. Davis, Sr. Volunteer Committee:  $500

 

                                 Daniel Pryzblyski, treasurer, Friends of Paul Kess:  $250

                                 Jeff Scott, candidate, Residents for Jeff Scott for Senate:  $100

                                 Jonathan Bien, treasurer, 6th New Congressional District RPM:  $200

                                 Mike Fitzpatrick, treasurer, 17B House District RPM:  $250

                                 John Heinrich, treasurer, 45th New Senate District DFL:  $50

                                 Diane Krych, treasurer, Carlton County RPM:  $500

                                 Phil Moen, treasurer, Lincoln County DFL:  $50

C. Thomas Keegel, treasurer, Democratic, Republican, Independent Voter Education:  $150

 

Sander Grotjohn, treasurer, MFT-Greenway Local 1330 COPE Fund: $50

 

                                 Grant Lebens, treasurer, Minnesotans for a Republican Majority:  $500

 

Board Action:            Authorization for referral to the Office of the Attorney General for failure to file the Pre-general Report of Receipts and Expenditures due October 28, 2002, and imposition of a $1,000 civil penalty.  Two reminder notices have been sent and staff attempted to contact each individual by telephone.   The second notice informed these individuals that they were subject to a $1,000 civil fine. 

 

                                    Mark Borsheim, candidate, (Mark) Borsheim for Representative

                                    Sheree Breedlove, candidate, Sheree Breedlove Volunteer Committee

                                    Ray Egan, candidate, (Ray) Egan for Senate

                                    Michael Fedor, candidate, Mike Fedor for State Senate

                                    Kristin Fallenstein, treasurer, Haefner for Senate

                                    Tammy Hanson, treasurer, (Bill) Hamm for Senate

                                    Wendy Snyder, treasurer, Patty Lammers for State Representative

                                    Tom Porter, candidate, Tom Porter for State Legislator Committee

                                    Phil Ratte, candidate, (Phil) Ratte for State Representative

                                    Brenda Welborn, treasurer, Darryl Spence for State Representative

                                    Jason Sprague, treasurer, (James) Sprague for State Representative 8B

                                    Eleanor Frengi, treasurer, (Laverne) Turner for Senate

                                    Marinane Beck, treasurer, 43rd Senate District RPM

                                    Gary Lee, treasurer, 57th Senate District DFL

                                                Megan Heikes, treasurer, Cook County GPM

            Christopher Berg, treasurer, 4th Congressional District Republican Labor Federation

 

                                                Robin Madsen, treasurer, AFSCME Council 14 PEOPLE Fund

                                                James Meffert-Nelson, treasurer, Minnesota Optometric Political Action

                                                Committee

                                   

Board Action:            Authorization for inactive committees to retain active status.

 

                                    Clement Benoit, treasurer, Don Schirrick Volunteer Committee - Mr. Benoit requested that the Board allow the committee to retain active status so that the committee can pay off a $293.82 debt.  Mr. Benoit stated that the committee intends to terminate within three months.

 

                                    Nick Petrangelo, treasurer, City of Duluth Supervisory Association PAC - Mr. Angelo requested that the Board allow the committee to retain active status due to a 2003 Mayoral election.

 

                                    Malcolm McDonald, treasurer/chair, Minnesotans for a Responsible Majority - Mr. McDonald requested that the Board allow the committee to retain active status.

 

Mr. Fluegel's MOTION:           To authorize the actions specified in the consent matters.

 

Vote on MOTION:        Unanimously passed.

 

Discussion Items

 

Waiver Requests

 

·         Pre-primary Report of Receipts and Expenditures due August 26, 2002, and the Pre-general Report of Receipts and Expenditures due October 28, 2002

 

      Bill Dahn, candidate, Bill Dahn for Governor 2002, $2,000 - The reports and a Statement of Termination were received in the Board office on December 27th.  In his waiver request, Mr. Dahn stated that he lost his campaign paperwork when he became homeless, and requested that the late filing fee be waived. 

 

Mr. Fluegel's MOTION:           To approve Mr. Dahn's request to waive the two $500 late filing fees and the $1,000 civil penalty.

 

Vote on MOTION:                    Unanimously passed. 

 

       Sheila Sudbeck, Citizens for (Sheila) Sudbeck, $2,000 – The Pre-general Report of Receipts and Expenditures, disclosing no contributions received and no expenditures made from July 7th, when the committee registered with the Board, to the time of termination and a Statement of Termination were received in the Board office on January 3rd.  In her waiver request, Ms. Sudbeck stated that she was traveling on business between June and October 2002.  Board members noted that Ms. Sudbeck would not have been required to register a committee.

 

Mr. Milbert's MOTION: To approve Ms. Sudbeck's request to waive the two $500 late filing fees and the $1,000 civil penalty.

 

Vote on MOTION:                    Unanimously passed. 

 

·          Pre-general Report of Receipts and Expenditures due October 28, 2002

 

       Michael Moore, candidate, Friends to Elect (Michael) Moore, $100 – The report was received in the Board office on November 4, 2002.  Mr. Moore indicated that he was not a candidate in the general election and that he intends to terminate his committee. 

 

Mr. Fluegel's MOTION:           To approve Mr. Moore's request to waive the $100 late filing fee.

 

Vote on MOTION:       Unanimously passed.

 

       Jay Shaw, chair, Lake County RPM, $500 – The report was received in the Board office on December 12, 2002.  Mr. Shaw indicated that treasurer of the committee quit, but did not forward the paperwork needed to complete the report until after the report was due. 

 

Mr. Kelley's MOTION:             To deny Mr. Shaw's request to waive the $500 late filing fee and reduce the late fee to $100.

 

Vote on MOTION:        Unanimously passed.

 

       Susan Rosenberg, treasurer, Richfield Democratic Farmer Labor Party, $500 – The report was received in the Board office on November 27, 2002.  Ms. Rosenberg stated that she believes the report forms sent to her committee were lost in the mail.  Ms. Rosenberg stated she was not aware that the committee was required to file a pre-general report until she received a certified notice from the Board.  The committee filed three late reports between 1993 and 1996, under a different treasurer.  No motion was made.

 

       Lee Carlson, chair, Watonwan County DFL, $450 – The report was received in the Board office on November 14, 2002.  In his waiver request Mr. Carlson stated that the treasurer told him that he faxed the report to an incorrect number. 

 

Mr. Milbert's MOTION:             To deny Mr. Carlson's request to waive the $450 late filing fee and reduce the late fee to $100.

 

Vote on MOTION:        Unanimously passed.

 

       Bruce Anderson, treasurer, Minnesota Retailers Association, $50 – The report was received in the Board office on November 1, 2002.  Mr. Anderson stated “with the chaos of the election season and numerous difficulties with the Finance 2002 software, we regret that the report was not filed on the exact due date."  No motion was made.

 

       Roxanne Kirk, treasurer, Bemidji Central Labor Party, $250 - The report was received in the Board office on November 8, 2002.  Ms. Kirk stated that due to the committee's small size and limited staff and budget the committee's mail is not distributed regularly and a  $250 late filing fee would cause the committee hardship. 

 

Mr. Fluegel's MOTION:           To deny Ms. Kirk's request to waive the $250 late filing fee and reduce the late fee to $100.

 

Vote on MOTION:        Unanimously passed.

 

       Robert Kudrle, treasurer, University of Minnesota Faculty Candidate Support Committee, $250 - The report was received in the Board office on November 8, 2002.  In his waiver request Mr. Kudrle stated that all previous reports, including the pre-primary report were sent to the correct address.  Mr. Kudrle stated that he did not request that Board staff change his address, but the Board database shows an incorrect address for Mr. Kudrle.  Mr. Kudrle has paid the late filing fee, but is requesting that the Board consider refunding a portion of the fee, given that the address change was not requested and the post-office box the report was sent to is rarely used.   

 

Mr. Fluegel's MOTION:           To approve Mr. Kudrle's request to waive the $250 late filing fee and direct staff to refund $250 to Mr. Kudrle.

 

Vote on MOTION:        Unanimously passed.

 

·         Reassessment of a late filing fee for failure to file the Pre-general Report of Receipts and Expenditures due October 28, 2002 (see November 20th minutes)

 

       Dale Wilkinson, treasurer, Grassroots Party, $50 – At it's meeting on November 20, 2002, the Board voted to reduce Mr. Wilkinson's late filing fee from $50 to $11, the balance remaining in the committee bank account.  Mr. Wilkinson's check for $11 was written on a closed account and returned to the Board. 

 

Mr. Milbert's MOTION:            To waive Mr. Wilkinson's $50 late filing fee.

 

Vote on MOTION:       Unanimously passed.

 

·         Pre-Primary Report of Large Pre-Election Contribution or Loan

 

       Jennifer Bjornberg, treasurer, (Nancy) Haas for House, $500 - Board staff notified Ms. Bjornberg that the Board had not received timely notice of a $3,000 loan from the candidate to the committee.  Ms. Bjornberg stated that in discussions with Board staff regarding proper reporting of the loan, she was not informed of the 48-hour notice requirement.  No other reports of large contributions were due.

 

Mr. Milbert's MOTION: To approve Ms. Bjornberg's request to waive the $500 late filing fee.

 

Vote on MOTION:        Unanimously passed.

 

       Laurie Hilty, (Bill) Hilty Volunteer Committee, $500 - Board staff notified Ms. Hilty that the Board had not received timely notice of a $500 contribution.  In her waiver request Ms. Hilty stated that she believed she sent the report via facsimile on August 26, 2002.  Ms. Hilty stated that she was rushed when she sent the facsimile, and did not confirm that the fax sent was received.  

 

Mr. Fluegel's MOTION:           To deny Ms. Hilty's request to waive the $500 late filing fee and reduce the late fee to $100.

 

Vote on MOTION:        Unanimously passed.

 

        Steve Billings, treasurer, (Steven) Novak for Senate Volunteer Committee, $500 - Board staff notified Mr. Billings that the Board had not received timely notice of a $500 contribution.  In his waiver request Mr. Billings stated that he sent the report via facsimile on August 30, 2002.  Mr. Billings did not provide a facsimile confirmation and Board facsimile records for that date do not indicate that a facsimile was received from Mr. Billings. 

 

Mr. Milbert's MOTION:             To deny Mr. Billings' request to waive the $500 late filing fee and reduce the late fee to $100.

 

Vote on MOTION:        Unanimously passed.

 

·         Pre-General Report of Large Pre-Election Contribution or Loan

 

Barbara Bemboom, treasurer, (Dennis) Molitor for House 14A, $500 – The Report of Large Pre-Election Contribution or Loan was received on January 8, 2003.  In her waiver request Ms. Bemboom stated that she forgot to file notice of a $500 contribution due to extenuating circumstances in her personal life. 

 

Mr. Milbert's MOTION:             To approve Ms. Bemboom's request to waive the $500 late filing fee.

 

Vote on MOTION:        Unanimously passed.

 

·         Statement of Economic Interest due January 10, 2003

 

Margaret Manderfeld, Department of Economic Security, $5 – The Statement of Economic Interest was received on January 13, 2003.  In her waiver request, Ms. Manderfeld stated that she fell behind in her paperwork due to travel, illness, and the illness of a family member.  This is the first Economic Interest Statement Ms. Manderfeld has filed with the Board.

 

Mr. Fluegel's MOTION:           To approve Ms. Manderfeld's request to waive the $5 late filing fee.

 

Vote on MOTION:        Unanimously passed.

 

 

 

Request for payment plan for late filing fee (see November 20th minutes)

 

Jennifer O'Rourke, treasurer, Minnesotans for a Democratic Majority, $350 – Ms. O'Rourke has paid $150 of the $500 late filing fee.  In her request Ms. O'Rourke stated that the committee's funds are limited, and requested to pay $35 per month for the next ten months.

 

Mr. Kelley's MOTION:             To: 1) approve Ms. O'Rourke's request for a payment schedule of $35 per month; and 2) notify Ms. O'Rourke that if the payments are not made, the remainder of the late filing fee will be due immediately.

 

Vote on MOTION:        Unanimously passed.

 

Informational Items

 

Payment of late filing fees

 

·         Report of Receipts and Expenditures due January 31, 2002

 

James Meffert-Nelson, treasurer, Minnesota Optometric Political Action Committee:  $100

 

·         Report of Receipts and Expenditures due August 26, 2002

 

Jim Pearson, treasurer, Local 59 Political Fund:  $50

Tim Bonham, treasurer, Minneapolis DFL:  $50

Bob Mlynar, treasurer, Minnesota Conservation Officers Legislative Committee:  $500

Jennifer O'Rourke, treasurer, Minnesotans for a Democratic Majority:  $150 (balance $350)

Thomas Diedrich, treasurer, United Northwest Sales Representatives Association:  $500

Jeff Ross, treasurer, Zelle, Hoffman, Voelbel, Mason & Gette:  $500

 

·         Report of Receipts and Expenditures due October 28, 2002

 

Mona Carter, treasurer, Darrell Carter for Senate:  $50

Greg Hansen, candidate, Greg Hansen Volunteer Committee:  $50

Bob House, candidate, Bob House for the House Committee:  $50

Darren Knight, candidate, Darren Knight for the House of Representatives:  $200

Stephen Castner, treasurer, Steven Murphy Volunteer Committee:  $100

Cathy Wolter, treasurer, (Jim) Pithan Volunteer Committee:  $50

Richard Roche, candidate, Citizens for Richard Roche:  $100

Jennifer Benton, treasurer, (Kari Sachs) Minnesota Socialist Workers Campaign 2002:  $50

 

Eileen Weber, treasurer, 2nd Congressional District DFL:  $50

Lillian Ortendahl, treasurer, 11th Senate District DFL:  $50

Thor Carlson, treasurer, 19th Senate District DFL:  $50

Erik Dove, treasurer, 38th Senate District RPM:  $50

Jason Amundson, treasurer, 59th Senate District DFL:  $100

Tim Bonham, treasurer, 62nd Senate District DFL:  $50

Douglas Thompson, treasurer, Clearwater County DFL:  $500

Tim Bonham, treasurer, Minneapolis DFL:  $50

Bart de Malignon, treasurer, Northfield Green Party:  $100

Rory Koch, treasurer, Ramsey County Republicans:  $50

Harmon Wilts, treasurer, Swift County DFL:  $50

Greg Hansen, treasurer, Wright County DFL:  $50                                                                                                                                                                                                                                                                                                                                                                                                                       

Joan Molenaar, treasurer, Champlain DFLers:  $50 (remaining balance $50) 

Ann Marie Habershaw, treasurer, Democratic Congressional Campaign Committee:  $150

Steve Palkovich, treasurer, Iron Range Labor Assembly:  $150

John Choi, member, K&G/JWB PAC:  $50

Wyman Spano, treasurer, Minnesota Milk PAC:  $100

David Knutson, treasurer, Minnesota Public Defender PAC:  $50

Patricia Ford, treasurer, Service Employees International Union:  $50

Robert Kudrle, treasurer, University of Minnesota Faculty Candidate Support Committee: 

   $250 (see page 8)

 

Nyle Zikumund, treasurer, Volunteer Fire Fighter Political Committee:  $200

 

Payment of fee for failure to timely Pre-primary Notice of a Large Contribution between August 2002, and September 10, 2002

 

    Sonia Feder-Lewis, treasurer, Neighbors for Matt Entenza:  $500

 

Payment of Civil Fines

 

·         Sonia Feder-Lewis, treasurer, Neighbors for Matt Entenza:  $419 - During calendar year 2002, the Neighbors for Matt Entenza committee accepted excess contributions from special sources, which exceeded the applicable limit.  Matt Entenza entered into a conciliation agreement on December 4, 2002, and paid a civil fine of $419.

 

·         Ron Carey, treasurer, Republican Party of Minnesota (RPM):  $4,000 – Following an investigation the Board issued findings showing that there was probable cause to believe that the RPM violated: 1) Minn. Stat. §10A.17, subd. 2, by making expenditures on behalf of a candidate without obtaining written authorization and imposed a $1,000 civil penalty; and 2) Minn. Stat. §10A.17, subd. 4, by falsely claiming that an expenditure was an independent expenditure and imposed a $3,000 civil penalty. 

 

Contributions Deposited in the State Elections Campaign Fund

 

·         Gift to State Elections Campaign Fund upon termination of principal campaign committee

 

            Jennifer Gallagher, candidate, Scott County Citizens for (Jennifer) Gallagher:  $2,275.39

            Deborah Olson, treasurer, (Hubert) Humphrey for Governor Committee:  $1,450

 

·            Returned Contributions from Terminated Committee

 

    Russ Goudge, candidate, Russ Goudge for State Representative:  $200

    Gerry Werven, candidate, Gerry Werven for Senate:  $28.53

 

Lobbyist registration and reporting activity resulting from notification by Board staff regarding involvement in certificate of need hearings (see November 20th minutes)

 

Kevin Walli, Rural Minnesota Energy Task Force, registered with the Board

 

Lisa Agrimonti, Xcel Energy, registered with the Board and reported for the period covering April 1, 2002, through June 30, 2002

 

Kerry Koep, Xcel Energy, registered with the Board and reported for the period covering November 1, 2001, through May 22, 2002

 

Lobbyist Disbursement Report filed at Board direction (see November 20th minutes)

 

   Carol Overland filed a Lobbyist Disbursement Report for Public Intervenors Network, Inc. for the period of January 1, 2002, through June 30, 2002.  Ms. Overland reported $20,175.50 in disbursements.

 

Financial statement and agency deposits - Mr. Sigurdson submitted reports covering July through December 2002. 

 

 

LEGAL COUNSEL'S REPORT

 

Counsel Huwe presented the legal counsel report outlining the status of cases that have been turned over to the Attorney General's office (see copy of memo attached).   Counsel Huwe noted that the Board has until March 10th to decide if they wish to appeal Judge Lindman's decision in the matter of the Board vs Minnesota DFL.

 

ADJOURNMENT

 

Meeting adjourned.

 

Respectfully submitted,

 

 

Jeanne Olson

Executive Director

 

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