STATE OF MINNESOTA
CAMPAIGN FINANCE AND PUBLIC DISCLOSURE BOARD
. . . . . . . . .
Monday, February 24, 2003
. . . . . . . . .
Blazing Star Conference Room
Ground Level, Centennial Office Building
. . . . . . . . .
Meeting was called to
order by Chair Miller.
Members present: Ashmore, Fluegel, Kelley, Milbert, Miller,
Pauly
MINUTES (January 15, 2003)
Mr.
Fluegel’s MOTION: To approve the January 15, 2003, minutes as drafted.
Vote on MOTION: Unanimously passed by five members
(Ashmore absent).
CHAIR'S REPORT
Next meeting is scheduled
for March 26, 2003.
Board members and Ms. Olson met with ten legislators
and representatives of the Governor’s office to discuss the Board’s legislative
recommendations. An amended list of
recommendations based on suggestions made by legislators and legislative staff
was available for Board review. Ms. Olson will continue to work with the Revisor’s office in drafting
another bill to incorporate the changes (see copy
of the revised list of recommendations attached).
Ms. Olson submitted the
following written report:
·
Staff Activities
About 55 individuals attended the Informational Meeting for lobbyists on Thursday, January 16th.
On January 24th, the names of 138
lobbyists who had not filed the Lobbyist Disbursement Report due January 15th
were listed on the Board’s website.
On January 31st, Ms. Olson was in
Washington, D.C. to speak to the Campaign Finance Institute’s Task Force on
Financing Presidential Nominations. She
presented information about Minnesota’s experience with public funding of
political campaigns to ten members of the Task Force and about 100 members of
the public.
About 167 candidates and 60 political party units and political
committees and funds filed year-end reports electronically. This represents a 135% increase from
election year 2000 when a total of 96 committees and funds filed
electronically.
On February 10th, the names of candidates, political
committees, political funds, and political party units that had not filed the
Report of Receipts and Expenditures due January 31st were listed on
the Board’s website. The names of 163
candidate committees and 49 political party units and political committees and
funds were listed.
On February 13th, Ms. Olson was a guest speaker at a
University of Minnesota, Graduate School of Public Health class, Legislative
Advocacy Skills. She discussed
lobbying registration and reporting requirements as well as the gift ban and
campaign finance with ten students.
On February 20th, Ms. Pauly spoke at a College of St.
Catherine Leadership Institute seminar, Making Ethical Decisions. Ms. Pauly talked about the Board and its
responsibilities as well as her experience on the House Ethics Committee.
Gary Goldsmith continues to work to remedy
some problems and develop new features for Finance 2002.
All public subsidy agreements went out of
effect on December 31, 2002. New
agreements have been signed by all but 25 legislators.
The appointments of Ms. Ashmore and Mr.
Milbert were approved on the House floor on January 27th after the
House Government Operations committee recommended the approval. The Senate Rules Subcommittee on Elections
will meet to act on the appointments, however no date has been scheduled. After that meeting, the full Rules Committee will meet to act on
the Subcommittee recommendation before the recommendation goes to the Senate
floor.
On February 4th, Ms. Olson
presented information to the House State Government Finance Committee about the
Board, staff, and the Fiscal Year 2003 and Fiscal Years 2004 and 2005 budgets.
Ms. Olson reviewed the performance of Jeff
Sigurdson and awarded him an achievement award in recognition of his work in
the distribution of 2002 public subsidy and additional time spent during Board
activities in October.
Governor Pawlenty unallotted $25,000 of the Board’s Fiscal
Year 2003 budget. The unallotted amount
must be absorbed before June 30th.
The Governor’s proposed budget for Fiscal Years 2004 and
2005 recommends user’s fees for clients to offset the Board’s general fund
appropriation. To assist the
administration and the Department of Finance, staff contracted with the
Department of Administration’s Management Analysis Division to conduct a survey
about other states’ experience with charging fees. The results will be available for Board review at the next
meeting.
Alan Weinblatt, legal counsel for the Minnesota Democratic
Farmer Labor Party (“DFL”), is requesting payment of attorney’s fees of $33,000
in the Campaign Finance Board v. DFL case.
Counsel Huwe sent a letter to Judge Lindman requesting that the issue of
fees be delayed pending the Board’s discussion about appealing the decision.
Enforcement Report
Board Action: Authorization for inactive committees to retain active status.
Duane Johnson, treasurer, Dick Rainville Volunteer Committee - Mr. Johnson requested that the committee be allowed to retain active status until the adjournment of the current legislative session, so that the committee may contribute their remaining funds to another principal campaign committee.
Steven Johnson, treasurer, (Matthew) Swenson Volunteer Committee - Mr. Johnson requested that the committee be allowed to retain active status until the adjournment of the current legislative session.
Richard Peterson, candidate, (Richard) Peterson Campaign Committee - Mr. Peterson requested an extension of his active status until December 31, 2008. Board staff contacted Mr. Peterson by telephone and advised him that extensions were generally only given for one election cycle. Mr. Peterson verbally requested an extension until January 1, 2005, because he may run for election in 2004.
Ms. Pauly’s MOTION: To authorize the actions specified in the consent
matters.
Vote on MOTION: Unanimously passed.
Request for authorization to terminate with a cash balance discrepancy
Garry M. Johanson, treasurer, (Anthony) Kinkel for Senate Campaign - In his letter dated January 28, 2003, Mr. Johanson stated that since he became treasurer of the committee in 1998, the committee’s reports have reflected $238.09 more than the committee’s actual cash balance. Mr. Johanson stated that the committee’s actual cash balance is $0.
Mr. Kelley’s MOTION: To approve Mr. Johanson’s request to adjust the cash balance by $238.09 and terminate the Kinkel for Senate Campaign committee.
Vote on MOTION: Unanimously passed.
Request
for authorization of a certified letter to compel filing of the Report of
Receipts and Expenditures due October 28, 2002, and subsequent legal action to
compel the return of public subsidy funds received if expenditures are not
reported
Mark Borsheim, candidate, (Mark) Borsheim for Representative, House District 1A, DFL, public subsidy paid in 2002: $3,258.69
Sheree Breedlove, candidate, Sheree Breedlove Volunteer Committee, Senate District 58, public subsidy paid in 2002: IPM, $3,998.64
Phil Ratté, candidate, (Phil) Ratté for State Representative, House District 50A, IPM, public subsidy paid in 2002: $542.22
Ray Egan, candidate, (Ray) Egan for Senate, Senate District 47, RPM, public subsidy paid in 2002: $10,364.40
Vote on MOTION: Unanimously passed.
Marianne Stebbins
Beck, treasurer, 43rd Senate District RPM, $3,100 – The
Reports of Receipts and Expenditures for 2001 and 2002 were received on January
31, 2003, resulting in $1,100 in late filing fees, and $2,000 in civil
penalties. Alec Beck, husband of the
treasurer, stated in his waiver request that Ms. Beck did not have check
signing authority, and was “originally appointed as a ‘lame duck’ treasurer,
with the understanding that her term would last only three months, and that new
treasurer would take over once redistricting took place.” Board records reflect that Ms. Beck became
treasurer on September 5, 2001. The
committee submitted a termination statement with an ending cash balance of
$0.36.
Vote on MOTION: Unanimously passed.
Welbec (Bill) Hamm, candidate, (Bill) Hamm for Senate, $1,500 – The Report of Receipts and Expenditures was received in the Board office on January 31, 2003, resulting in a $500 late filing fee and a $1,000 civil penalty. Mr. Hamm stated that his treasurer resigned on October 12, 2002, and he was unable to retain another treasurer until November. Mr. Hamm enumerated a number of other issues that resulted in the late filing of the report, such as the inability to obtain the checkbook and financial records from the previous treasurer.
Vote on MOTION: Unanimously passed.
Dick Senese, treasurer, Minnesota Progressive Voters Alliance, $1,500 – The Report of Receipts and Expenditures was received in the Board office on January 8, 2003, resulting in a $500 late filing fee and a $1,000 civil penalty. Mr. Senese indicated that the committee had very limited activity and that committee intends to terminate. Mr. Senese also stated that he has had extenuating personal circumstances that prevented him from attending to this report. Mr. Senese resigned as treasurer on February 3, 2003.
Vote on MOTION: Unanimously passed.
Susan Rosenberg, treasurer, Richfield DFL, $500 – The Report of Receipts and Expenditures was received in the Board office on November 27, 2002. In her second waiver request Ms. Rosenberg stated that the committee only has $200 in its account.
Vote on MOTION: Unanimously passed.
Request for authorization
to administratively terminate a lobbyist
Kenneth L. Michaelson, lobbyist, Kenneth L. Michaelson -
Mr. Michaelson registered with the
Board in 1992 as a lobbyist representing himself. The last Lobbyist Disbursement Report he filed was on January 15,
2002. Mr. Michaelson owes reports due
in April 15 and July 15, 2002, and January 15, 2003. All mail sent to Mr. Michaelson has been returned, and staff has
been unable to locate a new address for him.
Mr. Fluegel’s MOTION: Direct staff to: 1) administratively terminate the
lobbyist registration of Kenneth L. Michaelson; 2) place all correspondence in
the lobbyist files; and 3) retain the files in the active file should Mr. Michaelson
become an active lobbyist in the future.
Vote on MOTION: Unanimously
passed.
Laurie Hilty, treasurer, (Bill) Hilty Volunteer Committee: $100
Steve Billings, treasurer, Novak for Senate Volunteer Committee: $100
·
Report of Receipts and Expenditures due October 28,
2002
Daniel Przybylski, treasurer, Friends of Paul Kess: $250
Benjamin Hedberg, chair, 6th Congressional District RPM: $200
Roxanne Kirk, treasurer, Bemidji Central Labor Party: $100
Joan Molenaar, treasurer, Champlain DFLers: $50
C. Thomas Keegel, treasurer, Democrat, Republican, Independent, Voter Education, $150
Jennifer O’Rourke, treasurer, Minnesotans for a Democratic Majority: $35 (balance $315)
Grant Lebens, treasurer, Minnesotans for a Republican Majority: $500
Bruce Anderson, treasurer, Minnesota Retail Political Advocacy Fund: $50
·
Lobbyist
Disbursement Report due January 15, 2003
Richard Nelson, Red River Water Shed: $5
Robert Conner, treasurer, Connor (David) Volunteer Committee: $667.36
Richard Christianson, Russ Elmer Volunteer Committee: $135.14
Financial statement and agency deposits - Mr. Sigurdson submitted reports covering July 2002 through
January 2003.
ADVISORY
OPINION REQUEST
The Board reviewed the request for an advisory opinion from a legal representative for an association who asked if a specific video produced by the association constitutes lobbying expenditures based on its content and purpose. The association also asked how to report the cost of producing and distributing the video if the Board considers the video lobbying.
Board members viewed a copy of the video provided by the requester.
Mr.
Kelley’s MOTION: To approve Advisory Opinion 347 as drafted.
Vote on MOTION: Unanimously passed
SUMMARY: ADVISORY OPINION #347 signed by Chair Clyde Miller, February 24, 2003: The cost of producing and distributing a video that provides information about an issue before the legislature is a lobbying disbursement that must be disclosed on the Annual Report of Lobbyist Principal and on a periodic Lobbyist Disbursement 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).
Findings in the Matter of the Complaint Regarding Progressive Minnesota – The Board issued findings showing that: 1) there is no probable cause to believe that the reporting violations alleged in the complaint continue to exist because the committee amended its Report of Receipts and Expenditures for calendar year 2001 to show the required itemization of contributions received; and 2) there is probable cause to believe that the committee accepted a contribution in excess of $100 from an unregistered association. The contribution was returned to the association. The Board ordered that the findings and the record of the investigation be made a part of the public records of the Board (see copy of findings attached).
Findings in the Matter of the Complaint Regarding Mah Mah Wi No Min-I - The Board issued findings showing that there is no probable cause to believe that the reporting violations alleged in the complaint continue to exist. The committee amended its Report of Receipts and Expenditures for calendar year 2002 and provided an Affidavit of Independent Expenditures within ten days of receiving the Board’s inquiry regarding the complaint. The Board ordered that the findings and the record of the investigation be made a part of the public records of the Board (see copy of findings attached).
Meeting
adjourned.
Jeanne
Olson
Executive
Director
attachments
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