STATE OF MINNESOTA
CAMPAIGN FINANCE AND PUBLIC DISCLOSURE BOARD
. . . . . . . . .
Wednesday, June 25, 2003
. . . . . . . . .
Ladyslipper Conference Room
Ground Level, Centennial Office Building
. . . . . . . . .
Meeting was called to order
by Chair Miller.
Members present: Ashmore, Fluegel, Kelley, Miller, Pauly
Mr. Milbert informed
Board members he would be unable to attend the meeting.
MINUTES (May 28, 2003)
Mr.
Fluegel’s MOTION: To approve the May 28,
2003, minutes as drafted.
Vote on MOTION: Unanimously passed by four members
(Kelley absent).
CHAIR'S
REPORT
Next meeting is scheduled
for August 27, 2003.
Ms. Olson submitted the
following written report:
Staff Activities
Letters were sent to 38 principal campaign
committees and 11 political committees and funds informing them of their
‘inactive’ status and the requirement for them to pay debts, dispose of assets,
and terminate their registration with the Board within 60 days of the
letter. As of today, one principal
campaign committee and one political committee have terminated.
Letters were sent to 25 principal campaign
committees that made contributions to other principal campaign committees
during 2002. The letter reminded the
candidates that they must terminate their registration within one year after
the first contribution was made. As of
today, one candidate terminated their registration and two candidates notified
us that the letter was sent to them in error.
Ms. Olson has been invited to appear on a
local access cable program hosted by Bob Cardinal, the mayor of Maplewood, on
August 7th. Mr. Cardinal
wants to discuss campaign finance regulations and the gift ban.
The Board’s legislative recommendations were
not heard by the full House. The bill
may still be passed during the 2004 legislative session.
Staff has begun work with the consultant
from Management Analysis on the fee schedule due to the legislature by January
15, 2004.
Staff will send a letter on June 30th
to each lobbyist and lobbyist principal informing them that, based on new
legislation, they need to pay a $50 fee to the Board by August 1st. Any lobbyist who was registered on January
15, 2003, must pay the fee even if they have subsequently terminated as a
lobbyist. Any principal who had a
registered lobbyist during 2002 is required to pay the fee even if they no
longer have a lobbyist registered in Minnesota. Staff is reviewing methods for the collection, receipting, and
deposit of the fees.
A total of 207 lobbyist registrations have
been terminated since January 16, 2003.
As stated above, those lobbyists who terminated their registrations
after January 15th are still required to pay the $50 on August 1st. Late payment or failure to pay the fee
carries the same penalties as late filing or failure to file a periodic report
- $5 a day late filing fee beginning eleven days after a first certified notice
is mailed and $1,000 civil penalty on the seventh day after a second certified
notice is mailed.
Three changes were made during the 2003
session that impact the Economic Interest Program:
Jeff Sigurdson reviewed the performance of
Xiaowei Cao for the past year. Ms.
Cao’s performance is above average and she will receive a step increase under
the terms of the MAPE contract.
The hiring freeze will not be in effect
after July 1. Staff has begun the
process to fill the receptionist position.
State agencies are able to carry unexpended funds from
FY2003 into FY2004. Because of our two
open positions for all or part of the last fiscal year, some funds will carry
forward to the next fiscal year. This
carry forward will be reflected on the July financial statement.
The Department of Finance informed staff that the Board’s
budget may be decreased due to additional cuts to executive branch state
agencies of $15,081,000. We will be
notified later what the cut will be, if any.
The Office of the Legislative Auditor (OLA)
notified staff that they will not audit the Board’s financial transactions this
year. In the past, the OLA audited the
Board every two years to ensure that public subsidy payments were correctly
made and other payments met state guidelines.
However, due to OLA budget cuts the Board will be audited every three
years (like all other state agencies).
Staff notified individuals who previously
requested copies of the annual Campaign Finance Summary by mail that it is
available on the web and that the Summary, Annual Report, and Lobbyist
Disbursement Summary will no longer be mailed.
Ms. Olson has received no additional information about the
continuation of the travel ban. If the
travel ban continues after July 1st, transportation and lodging for
the annual Council on Governmental Ethics Laws Conference will need to be paid
by any attendees. However, the
registration fee may be paid from the Board’s training budget. Ms. Olson plans to attend the conference.
Enforcement Report
Waiver Requests
Annual Report of Lobbyist Principal due March 17, 2003
Jill Wilkinson, treasurer, Libertarian Party of Minnesota, $1,100 ($100 late filing fee, $1,000 civil penalty) – The annual Report of Lobbyist Principal was received in the Board office on May 16, 2003. In her waiver request, Ms. Wilkinson stated that the report was not timely filed due to a change in the association’s leadership.
Mr.
Fluegel’s MOTION: To: 1) deny Ms. Wilkinson’s request to waive
the $100 late filing fee; and 2) approve Ms. Wilkinson’s request to waive the
$1,000 civil penalty.
Vote on MOTION: Unanimously passed.
·
Report of Receipts and Expenditures due January 31,
2003
Larry McKenzie, candidate, Larry McKenzie Committee, $1,100 ($100 late filing fee, $1,000 civil penalty) – The Report of Receipts and Expenditures was received in the Board office on June 17, 2003. In his waiver request, Mr. McKenzie stated that he has not been an active candidate since 1996 and that his treasurer has moved out of state. Mr. McKenzie has completed the forms necessary to terminate his committee.
Ms.
Pauly’s MOTION: To: 1) deny Mr. McKenzie’s request to waive
the $100 late filing fee; and 2) approve Mr. McKenzie’s request to waive the
$1,000 civil penalty.
Vote on MOTION: Unanimously passed.
·
Lobbyist Disbursement Report due January 15, 2003
Erin Jordahl, lobbyist, Minnesota Humane Society, $30 – The Lobbyist Disbursement Report was received in the Board office on February 24, 2003. No motion was made.
Loyal Hyatt, (Loyal) Hyatt Campaign Committee: $100
Ray Wheeler, candidate, Ray Wheeler Volunteer Committee: $100 (through Revenue Recapture, balance $0)
·
Report of Receipts and Expenditures due August 26,
2002
Jennifer O’Rourke, treasurer, Minnesotans for Democratic Majority: $35 (Payment schedule balance due, $175)
·
Reports of Receipts and Expenditures due October 28,
2002, and January 31, 2003
·
Annual Report of Lobbyist Principal due March 17,
2003
Advocates for Marketplace Options for Mainstreet: $10
American Massage Therapy Association: $20
Bob Erickson: $100
Clear Channel Outdoor, Inc.: $10
Minnesota Alliance for Arts in Education: $5
Minnesota Association of Charter Schools: $5
Minnesota Interfaith Council on Affordable Housing: $20
Northwest Corridor Partnership: $10
Outfront Minnesota: $20
Pure Choice: $25
·
Lobbyist Disbursement Report due January 15, 2003
C. Scott Cooper, lobbyist, Outfront Minnesota: $55
Lyall Delaney, candidate, Lyall Delaney Volunteer Committee: $500
· Conciliation Agreement
Brett Smith, candidate, Brett Smith Supporters, $616.10 – In calendar year 2002, the Brett Smith Supporters committee accepted aggregate contributions in excess of the special source contribution limit. The total amount of these contributions exceeded by $217.24 the applicable contribution limit. The Brett Smith Supporters committee also exceeded the applicable campaign expenditure limit by $199.43. Mr. Smith returned to contributors an amount sufficient to bring the committee in compliance with Minn. Stat. §10A.27, sub 11, and on May 20, 2003, entered into a conciliation agreement and paid a civil fine of $616.10.
Gift
to State General Fund upon termination of a committee
Return of Excess Public Subsidy
Rory Koch, candidate, Citizens for Rory Koch: $150.78
Fee Schedule Process
Board members reviewed a draft letter to be sent to all lobbyists,
lobbyist principals, treasurers of political committees, political funds,
political party units, and candidates and treasurers of principal campaign
committees notifying them of the legislation directing the Board to consult
with clients to develop an equitable schedule of fees to recover costs of
regulating entities. The letter was approved
by Board consensus.
Financial statement and agency deposits - Mr. Sigurdson submitted reports covering July 2002 through May
2003.
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 Carol Overland - The Board issued findings showing that there is probable cause to believe that Carol Overland, lobbyist for Public Intervenors Network, Inc., failed to disclose funds obtained from the McKnight Foundation to influence administrative action. 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 Randy Kelly – The Board issued findings showing that there is probable cause to believe that Randy Kelly, Mayor, City of St. Paul, violated Minn. Stat. §10A.071, subd. 2, when he accepted a gift from a lobbyist principal. 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