STATE OF MINNESOTA
CAMPAIGN FINANCE AND PUBLIC DISCLOSURE BOARD
. . . . . . . . .
Wednesday, August 27, 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
(June 25, 2003)
Mr. Fluegel’s
MOTION: To approve the June 25, 2003, minutes as
drafted.
Vote on MOTION: Unanimously passed.
CHAIR'S
REPORT
Next meeting is scheduled
for September 17, 2003, 9:00 a.m.
Chair Miller welcomed
Hilary Caligiuri from the Attorney General’s Office to the meeting.
Ms. Olson submitted the
following written report:
Staff Activities
In June, 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, eight principal
campaign committees and five political committees have terminated. Two candidate committees and two political
committees and funds have requested a termination extension. A certified letter will be sent to the
non-responding entities.
Twenty-three principal campaign committees
were reminded that they are required to terminate their registration because
they made contributions to other principal campaign committees during
2002. As of today, six of these
candidates have terminated their registration.
Staff will review the dates of the 2002 contributions and send certified
notices when required.
On, August 7th, Ms. Olson was a
guest on a local access cable program hosted by Bob Cardinal, the mayor of
Maplewood. They discussed the Board and
its responsibilities.
On June 27th letters were sent to over 4,550 Board clients
asking for comments about the proposed fee structure. About 100 responses were received. Board members were provided a copy of the pertinent
responses.
Public meetings have been scheduled for
September 9th in the evening in Minneapolis and September 10th
in the morning in St. Paul. To date,
three individuals have requested to speak at the St. Paul meeting and no one
has requested to speak at the Minneapolis meeting.
As of yesterday, lobbyists paid total fees
of $132,350 and lobbyist principals paid fees totaling $51,200. Certified letters were mailed on August 14th
to 250 lobbyists and 444 lobbyist principals that have not paid the fee. A late payment fee of $5 a day will begin on
August 25th if the payment is not made or postmarked by that
date. The statute requires a second
notice to be sent 14 days after the first notice. If the payment is not made within seven days of the second
notice, the $1,000 civil penalty may be assessed.
Staff reviewed resumes and interviewed
several candidates for the receptionist position. The position was offered to and accepted by Christine
Eliasson. Ms. Eliasson, who was laid
off from the Department of Employee Relations, will begin her work with the
Board on September 2nd. As
is the practice, Ms. Eliasson will attend the September Board meeting as part
of her orientation. The programs
assistant position remains open.
The Department of Employee Relations has
informed staff about procedures to be followed in the event that AFSCME and/or
MAPE employees authorize a strike.
Because of the hiring freeze, $49,114 from fiscal year 2003
was carried forward to fiscal year 2004 and will be reflected in the July
financial statement.
The Board’s biennial appropriation was cut by $12,000. Staff proposes taking the full cut in fiscal
year 2004, a non-election year to ensure available funds for the 2004 election
year.
The Secretary of State’s office notified staff that
following the 2002 election, the four major parties continued their major party
status and that no party qualified for minor party status. The four major parties are the Minnesota
Democratic-Farmer-Labor Party, the Republican Party of Minnesota, the Green
Party of Minnesota, and the Independence Party of Minnesota.
The legislation establishing the Board, The Ethics in
Government Act, passed in 1974. The
Board will be 30 years old next year.
Enforcement Report
Authorization for inactive committees to
retain active status.
Steve
Preble, deputy treasurer, Council 65 Political Action Committee - Mr. Preble
stated that he recently became the director and that he intends on restoring
the committee to active status.
Paul Cassidy, treasurer, the Minnesota New Democrat
Political Action Committee - Mr. Cassidy stated that the committee intends on
accepting contributions in 2003 and making contributions in 2004.
Mr. Fluegel’s MOTION: To approve Mr. Preble’s and Mr. Cassidy’s requests to allow
Council 65 Political Action Committee and the Minnesota New Democrat Political
Action Committee to retain active status.
Vote on MOTION: Unanimously passed.
Discussion Items
Request to accept a cash balance discrepancy
Judy Gilbert, treasurer, 57th Senate District
DFL (see May 28, 2003, minutes) - The Board waived $2,000 in civil penalties
and $600 in late filing fees with the understanding that Ms. Gilbert make every
reasonable effort to reconcile a $1,606.98 cash balance discrepancy. On August 4, 2003, Board staff received
correspondence from Ms. Gilbert indicating that a cash balance discrepancy of
$338.97 continues to exist. Ms. Gilbert
stated that she cannot account for the difference, and requested that the Board
accept the discrepancy.
Ms. Pauly’s MOTION: To accept Ms. Gilbert’s amended report with a cash balance discrepancy of $338.97.
Vote on MOTION: Unanimously passed.
Reconsideration of a Waiver Request
·
Reports of
Receipts and Expenditures due October 28, 2002, and January 31, 2003
LaVerne Turner, candidate, (LaVerne) Turner for Senate
(see May 28, 2003, minutes) - Mr. Turner requested that the Board consider an
additional reduction of the civil penalty and late filing fee.
Vote on MOTION: Unanimously
passed.
Waiver Requests
·
Lobbyist
Disbursement Report due April 15, 2003
Mr. Fluegel’s MOTION: To: 1) deny Ms. Maher’s request to waive the $100 late filing fee; and 2) approve Ms. Maher’s request to waive the $1,000 civil penalty.
Vote on MOTION: Unanimously passed.
·
Annual
Report of Lobbyist Principal due March 17, 2003
Todd Vlatkovich, lobbyist, on behalf of Bob Erickson,
principal, $1,100 ($100 late filing fee, $1,000 civil penalty) – The Annual
Report of Lobbyist Principal was received in the Board office on June 12,
2003. The late filing fee has been
paid, however Mr. Vlatkovich is requesting that the $1,000 civil penalty be
waived. Mr. Vlatkovich stated that he
failed to timely file the report because of a fire at his home. Board staff notes that the report, and the
certified letters were sent to and received at Mr. Erickson’s office, and that
historically Mr. Erickson has signed the report.
Mr. Fluegel’s
MOTION: To: 1) deny Mr.
Vlatkovich’s request to waive the $1,000 civil penalty; and 2) reduce the civil penalty to $100.
Vote on MOTION: Unanimously passed.
Board members directed staff to provide time
at a future Board meeting for a discussion on standards for assessing civil
penalties.
·
Lobbyist
Registration
Sharon (Qui’Tam) Anderson, registered on behalf of herself and
Anderson & Advocates, Inc. - Ms. Anderson does not
respond to Board mailings, and has never filed a Lobbyist Disbursement Report.
·
Principal campaign committee
Sharon Anderson, Sharon Anderson Volunteer Committee (House
64B) - In June 2003 Board staff notified the committee that it was required to
terminate. No response was
received.
Mr.
Fluegel’s MOTION: To direct
staff to administratively terminate the registration of the Sharon Anderson
Volunteer Committee (House 64B).
Vote on MOTION: Unanimously passed.
Erin Jordahl, lobbyist, Minnesota Humane Society: $30
·
Annual Report of
Lobbyist Principal due March 17, 2003
Libertarian Party of Minnesota: $100
·
Failure to
timely amend the Report of Receipts and Expenditures due January 31, 2003
Brian Wood, treasurer, (Geoff) Michel for
Senate: $30
Return of Excess Public Subsidy
Mark Babcock, treasurer, Elect Bonnie Jean Smith: $1,538.96
Payment of Civil Fines
·
Greg Blaine, candidate, (Greg) Blaine Campaign Committee
– In calendar year 2002, the (Greg) Blaine Campaign Committee accepted
aggregate contributions in excess of the special source contribution
limit. The total amount of these
contributions exceeded by $199 the special source contribution limit. Representative Blaine
entered into a conciliation agreement on June 12, 2003, which required
him to return an amount sufficient to bring his committee into compliance, and
pay a civil fine of $199.
· James Metzen, candidate, Senator James Metzen Re-Election Committee – In calendar year 2002, the Senator James Metzen Reelection Committee accepted aggregate contributions in excess of the special source contribution limit. The total amount of these contributions exceeded by $352 the applicable contribution limit. This was the committee’s second violation of this statute. Senator Metzen entered into a conciliation agreement on June 30, 2003, which required him to return an amount sufficient to bring his committee into compliance and pay a civil fine of $704.
Financial statement and agency deposits - Mr. Sigurdson submitted a final report for fiscal year 2003
covering July 1, 2002 through June 30, 2003; and a report for fiscal year 2004
covering July 2003.
Affirmative Action Plan – Board members reviewed a draft Affirmative Action Plan for the period August 1, 2002 through July 31, 2004.
Mr. Fluegel’s MOTION: To approve the Affirmative Action Plan as drafted.
Vote on MOTION: Unanimously passed.
ADVISORY
OPINION REQUESTS
Board members reviewed a letter from the member of a firm that may communicate with state employees and elected officials who asked if services described constitute lobbying under Minnesota Statutes or Administrative Rules and if the firm may be compensated for the services described on a contingency basis.
Mr. Sigurdson noted a language change made to the original draft opinion.
Mr. Fluegel’s MOTION: To approve Advisory Opinion 349 as amended.
Vote on MOTION: Unanimously passed.
SUMMARY: ADVISORY OPINION #349 signed by
Chair Clyde Miler, August 27, 2003:
An individual who communicates with state employees, public officials, and elected officials, to sell goods or services is not required to register as a lobbyist.
Board members reviewed a letter from a member
of a law firm that represents registered lobbyists who asked if Minnesota Statutes Chapter 10A prohibits a lobbyist from
accepting compensation dependent in the clients being awarded a state
procurement contract to sell goods and services to the state and if lobbyists may accept a contingent
fee under certain circumstances.
Mr. Kelley’s MOTION: To
approve Advisory Opinion 350 as drafted.
Vote on MOTION: Unanimously passed.
SUMMARY: ADVISORY OPINION #350 signed by Chair
Clyde Miller, August 27, 2003:
Lobbyists may not provide services on a contingency fee basis to a client for which they are registered to lobby.
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).
Fee Schedule Internal Guidelines – Board members reviewed and made certain language
changes to a working draft of the guidelines for the development of a fee
schedule as presented by Mark Scipioni, Management Consultant with the Department of Administration,
Management Analysis Division (see
copy of approved scheduled attached).
Executive Session Board Meeting – As of the September 17, 2003, meeting the
executive session will no longer be taped recorded.
Findings in the Matter of the Complaint Regarding Tim Pawlenty - The Board issued findings showing that there is probable cause to believe that candidate Tim Pawlenty: 1) was required to disclose the compensation received from BAMCO, and thus no probable cause to believe that any reporting violation ever existed; 2) knowingly filed a false report with the Board; and that 3) no payments from Elam Baer and Access Anywhere to BAMCO were used to make contributions to the Pawlenty Committee. Because the Board does not have the authority to make a determination if a violation of Minn. Stat. §211B.15 occurred, the Board directs the Executive Director to refer this matter to the Dakota County Attorney for review. 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 Ellen Anderson – The Board issued findings showing that there is: 1) no probable cause to believe that Ellen Anderson has, or was required to disclose, any interest in the property located at 767 University Avenue in St. Paul, Minnesota; 2) probable cause to believe that Senator Anderson inadvertently violated Minn. Stat. §10A.09, subd. 5, when she failed to disclose securities purchased in September, 2000, on her supplementary statements of economic interest filed in April 2001 and April 2002 and her original statement of economic interest filed in July 2002; 3) insufficient evidence to determine whether Senator Anderson violated Minn. Stat. §10A.025, subd. 2, by knowingly omitting required information. 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 the Corporate Commission of the Mille Lacs Band of Ojibwe Indians and H. Theodore Grindal - The Board issued findings showing that there is no probable cause to believe that the reporting violations alleged in the complaint continue to exist. Mr. Grindal amended his Lobbyist Disbursement Reports for the periods covering January 1, 2003, through March 31, 2003, and April 1, 2003, through June 30, 2003, within ten days of receiving the Board’s inquiry regarding the complaint. The Board directs that in the future the Mille Lacs Band of Ojibwe Indians Corporate Commission provide information on all lobbying disbursements to their designated lobbyist at least five days prior to the prescribed filing date of a Lobbyist Disbursement Report. 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 Investigation of the Working Families Coalition - The Board issued findings showing that there is probable cause to believe that the Working Families Coalition violated Minn. Stat. §10A.27, subd. 13, when it accepted excess contributions from three unregistered associations in calendar year 2002. 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 Investigation of the People for (Mari) Pokornowski Committee – The Board issued findings showing that there is probable cause to believe that the People for (Mari) Pokornowski Committee violated Minn. Stat. §10A.27, subd. 11, when it accepted $744.27 in excess contributions from special sources. 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).
Mr. Kelley’s MOTION: To direct staff to add the possibility of revising the definitions in Minn. Stat. Chapter 10A.01, sub. 6, to the Board’s legislative recommendations for 2004.
Vote on MOTION: Unanimously passed by five members (Milbert absent).
Meeting
adjourned.
Jeanne
Olson
Executive
Director
attachments
(7)