STATE OF MINNESOTA
CAMPAIGN FINANCE AND PUBLIC DISCLOSURE BOARD
. . . . . . . . .
Wednesday, October 22, 2003
. . . . . . . . .
Conference Room 304
Third Floor, Centennial
Office Building
. . . . . . . . .
Meeting was called to
order by Chair Miller.
Members present: Ashmore, Fluegel, Kelley, Milbert, Miller,
Pauly
MINUTES (September
17, 2003)
Ms.
Pauly’s MOTION: To approve the September 17, 2003, minutes as drafted.
Vote on MOTION: Unanimously passed.
CHAIR'S REPORT
Next meeting is scheduled
for November 19, 2003.
Board members reviewed a
schedule of 2004 tentative meeting dates.
Nomination Committee
Chair Miller made the following appointments to the
nominating committee: Ms. Ashmore, Mr.
Fluegel, and Chair Miller. The
committee will meet and report to the Board at the November Board meeting.
Chair Miller reported
that he attended the oral arguments in the Minnesota Concerned Citizens for
Life (MCCL), et al. v. Kelley, et al. on October 21, 2003.
Mark Scipioni, Management
Consultant with the Department of Administration, Management Analysis Division
presented cost analysis information and discussed fee options with Board
members. Cost analysis information and
the process for clients to propose fee schedules for Board consideration is
outlined on the Board’s website.
Clients have until November 3rd to submit their
proposals. Further proposals will be
presented at the November Board meeting.
Ms. Olson submitted the
following written report:
On October 1st
Ms. Olson presented information at a Continuing Legal Education seminar for
public attorneys in the legislative and executive branch. Over 100 individuals attended the
seminar.
On October 8th
Ms. Olson attended a meeting for executive directors of non-cabinet agencies
hosted by the Departments of Administration, Finance, and Employee
Relations. Governor Pawlenty and the
Commissioners provided information about the administration’s vision for the
state, the possible strike by state employees, and work on collaboration and
sharing of services by state agencies, boards, and commissions.
On October 10th
staff sent letters to 27 lobbyists and 39 lobbyist principals to remind them of
the need to pay the $50 fee.
As of October 21st
lobbyists paid total fees of $136,600 and lobbyist principals paid fees
totaling $58,000.
On October 21st
Mr. Kelley presented information to the Minnesota Government Relations Council
about the fee structure process.
Senator Ranum also spoke at the event.
Following the September
Board meeting, additional comments regarding the fee study were posted on the Board’s
website and an e-mail was sent to all ‘Interested Persons’.
Copies of the Annual
Report, June 2002 – July 2003, and the Lobbyist Disbursement Summary,
July 2002 – June 2003, were available for Board members. Information
from the March 15, 2003, Annual Report of Lobbyist Principals was
included in the Lobbyist Disbursement Summary for the first time.
The terms of Sidney Pauly and Doug Kelley expire at
the end of the year.
·
Correspondence
A letter from
Senator John Marty concerning the Board’s ruling on the matter of the complaint
regarding the Minnesota Vikings was available for Board members.
·
Definition of
Lobbyist Principal
Ms. Olson told
Board members that the laws of 2003, which changed the definition of lobbyist,
inadvertently omitted a specific reference to political subdivisions and public
higher education systems. The language
omitted in the statutory change removed the basis used to exclude political
subdivisions and public higher education systems from the definition of
lobbyist principal. This change would
require those entities to file the Annual Report of Lobbyist Principal, pay the
annual lobbyist principal fee, and make them subject to the gift ban law under
Minn. Stat. §10A.071. Ms. Olson also
noted that advisory opinions 224 and 297, which advised the requesters that
political subdivisions and public higher education systems are not principals,
may need to be rescinded.
Mr. Kelley’s MOTION: To
rescind advisory opinions 224 and 297 and direct staff to send notification of
the law change, a copy of the gift ban law, and the gift ban primer to all
affected entities with copies to legislative leadership.
Vote on MOTION: Unanimously
passed.
[Editor’s
note: Following the Board meeting,
staff determined that the reference to political subdivisions and public higher
education systems was included in another statutory provision. Therefore, political subdivisions and public
higher education systems continue to be excluded from the definition of
lobbyist principal. The affected
entities have been notified.]
Enforcement Report
Consent Agenda
Board Action: Authorization for referral to the Office of the
Attorney General and imposition of a $1,000 civil penalty for failure to file
an Original Statement of Economic Interest.
Reminder notices have been sent and staff attempted to contact Mr.
Williams by telephone.
Michael Williams, Public Member,
Minnesota Sentencing Guidelines Commission, $100
Ms. Pauly’s MOTION: To
authorize the actions specified in the consent matter.
Board members discussed
the automatic imposition of the $1,000 civil penalty.
Ms. Pauly’s AMENDED
MOTION: To remove Michael
Williams from the consent item agenda and
direct staff to refer Mr. Williams to the Office of the Attorney General
and direct Counsel Huwe to notify Mr. Williams of the possibility of a
potential $1,000 civil penalty for failure to file the statement.
Vote on MOTION: Unanimously passed.
Amended Consent Agenda
Board Action: Authorization of a certified letter to compel the termination
of inactive committees and subsequent legal enforcement action if the
committees fail to terminate. Two
notices, including one certified notice, have been sent to each committee
treasurer or candidate, and staff attempted to contact each individual by
telephone. Staff recommends that these
individuals be referred to the Office of the Attorney General if they fail to
terminate.
Bradley Bennett, candidate, (Bradley)
Bennett Volunteer Committee
James Berg, candidate, Jim Berg
Volunteer Committee
Ryan Engel, treasurer, AFSCME
Council 14 Local 1076
Sander
Grotjohn,
treasurer, MFT-Local 1330 COPE Fund
Caroll Holstrom, candidate, Caroll
Holstrom Campaign Fund
Jose Luciano, candidate, (Jose)
Luciano Volunteer Committee
James Mangan, candidate, James A.
Mangan Campaign Committee (Senate)
Bill
Neuman,
candidate, Volunteers for Bill Neuman
Thomas
Ross,
candidate, Friends of Thomas Ross
Scott Van Binsbergen, candidate, Scott Van
Binsbergen for Minnesota State Representative
Eldon Warkentin, candidate, Volunteers
for (Eldon) Warkentin
Mr. Milbert’s MOTION: To authorize the actions specified
in the consent matter.
Vote on MOTION: Unanimously passed.
Failure to pay the annual
lobbyist and principal fee due August 1, 2003
Four letters, including
two certified letters, have been mailed to each lobbyist and principal that has
not paid the fee.
Ms. Ashmore’s MOTION: To: 1) direct staff to publish on
the Board’s website a list of lobbyists and principals who have not paid the
fee; and 2) refer lobbyists and principals who have not paid the fee to the
Office of the Attorney General for legal action.
Vote
on MOTION: Unanimously
passed.
Authorization to subpoena
records from individuals who received public subsidy funds and failed to file
the required Reports of Receipts and Expenditures
Mark Borsheim, (Mark) Borsheim for
Representative - Mr. Borsheim received two public subsidy payments totaling
$3,550.59. Mr. Borsheim has not filed
the Reports of Receipts and Expenditures due August 26, 2002, October 28, 2002,
and January 31, 2003. Two judgments
totaling $1,530 have been obtained for the failure to file the August 26, 2002,
and October 28, 2002, reports. No
judgment has been obtained for the failure to file the year-end report.
Sheree Breedlove, Sheree Breedlove
Volunteer Committee - Ms. Breedlove received two public subsidy payments
totaling $4,158.36. Ms. Breedlove has
not filed the Reports of Receipts and Expenditures due October 28, 2002, and
January 31, 2003. A judgment of $1,540
has been obtained for the failure to file the October 28, 2002, report. No judgment has been obtained for the
failure to file the year-end report.
Ms. Breedlove’s 2002 public subsidy payment was reduced by $1,863.72
because she failed to return public subsidy funds received in 2000 that were in
excess of her campaign expenditures.
Ray Egan, (Ray) Egan for Senate -
Mr. Egan received two public subsidy payments totaling $10,797.82. Mr. Egan has not filed the Reports of
Receipts and Expenditures due October 28, 2002, and January 31, 2003. A judgment of $1,566 has been obtained for
the failure to file the October 28, 2002, report. Mr. Egan has also been referred to the Office of the Attorney
General for failure to file his Lobbyist Disbursement Report for ABATE
Minnesota due January 15, 2003, and ABATE’s Annual Report of Lobbyist Principal
due March 17, 2003. Mr. Egan also owes
$170 in late filing fees for the late filing of Lobbyist Disbursement Reports due
January 15, 2002, for ABATE Minnesota and Minnesota Motorcycle Riders
Association and service of process fees totaling $235 for other cases pending
against him. In addition, Mr. Egan has
not paid $100 in lobbyist fees due August 1, 2003.
Phil
Ratté, (Phil) Ratté for State Representative - Mr. Ratté received two public
subsidy payments totaling $568. Mr.
Ratté has not filed the Reports of Receipts and Expenditures due October 28,
2002, or January 31, 2003. A judgment
of $1,540 has been obtained for failure to file the Report of Receipts and Expenditures
due October 28, 2002. No judgment has
been obtained for failure to file the year-end report. In addition, a judgment of $138 has been
obtained for failure to file the report due January 31, 2001, and a $133
judgment has been obtained for failure to file the report due January 31,
2002. Mr. Ratté also owes service of
process fees totaling $170.
Waiver requests
·
Annual Lobbyist Fee due August 1, 2003
James M. Neilson, Minnesota Bar Association, $50 – In his waiver request
Mr. Neilson states that he registered as a lobbyist in 1975, was never
paid to lobby, and never had to register as a lobbyist. He terminated his registration on May 28,
2003. No motion was made.
·
Reports of Receipts and Expenditures due January 31, 2001, January 31,
2002, August 26, 2002, October 28, 2002, and January 31, 2003
Christopher Berg, treasurer, 4th
Congressional District Labor Federation, $4,527 ($1,300 late filing fees,
$3,000 civil penalties, $257 court and service of process fees) - The five
reports were received in the Board office on September 25, 2003. Judgments have been obtained for four of the
reports. Mr. Berg understands that he is
responsible for all court and service of process fees. In his waiver request Mr. Berg stated that
the committee has not been active since December 2000. Mr. Berg has terminated the committee.
Mr. Fluegel’s MOTION: To: 1) deny Mr. Berg’s request to
waive the $1,300 in late filing fees; and 2) to approve Mr. Berg’s request to
waive the $3,000 in civil penalties.
Vote on MOTION: Unanimously
passed.
·
Reports of Receipts and Expenditures due January 31, 2001, January 31,
2002, and January 31, 2003
Christopher Berg, candidate, Chris Berg
for State Senate, $1,300 ($300 late filing fees, $1,000 civil penalty, $122
court and service of process fees) - The three reports were received in the Board office on
September 25, 2003. Judgments have been
obtained for two of the reports. Mr.
Berg understands that he is responsible for all court and service of process
fees. In his waiver request Mr. Berg
stated that the committee has not been active since December 2000. Mr. Berg has terminated the committee.
Mr. Fluegel’s MOTION: To: 1) deny Mr. Berg’s request to
waive the $300 in late filing fees; and 2) to approve Mr. Berg’s request to
waive the $1,000 civil penalty.
Vote on MOTION: Unanimously
passed.
·
Lobbyist Disbursement Reports due January 15 and April 15, 2003
Bridget Cronin Sutton, Families for Effective
Autism Treatment (“F.E.A.T.), $2,200 ($200 late filing fees, $2,000 civil
penalties) - Both reports were received in the Board office on October 17,
2003. In her waiver request Ms. Sutton
stated that she left the F.E.A.T. office on January 19, 2003. She further stated that in April 2003, she
faxed a Statement of Termination and a Lobbyist Disbursement Report from the
F.E.A.T. office. She was never informed
by F.E.A.T. that her fax was not successfully sent nor was she informed of
subsequent attempts by staff to contact her by telephone and mail. Ms. Sutton stated she was not aware of her
failure to file until October 2003.
Mr. Milbert’s MOTION: To approve Ms. Sutton’s request to
waive the $200 in late filing fees and $2,000 in civil penalties due to
extenuating circumstances.
Vote on MOTION: Unanimously passed.
·
Original Statement of Economic Interest due September 8, 2003
Mae Beecham, Member, Board of
Marriage and Family Therapy, $70 – The Original Statement of Economic Interest
was received in the Board office on October 16, 2003. In her waiver request Ms. Beecham stated that she was out of town
between July and September 2003, and was not aware that she was required to
file a Statement of Economic Interest.
Mr. Milbert’s MOTION: To approve Ms. Beecham’s request to
waive the $70 late filing fee.
Vote on MOTION: Unanimously
passed.
Payment of late filing fees
Allied Waste/Browning-Ferris Industries: $100
·
Report of Receipts
and Expenditures due September 3, 1996
Connie Janssen, (Connie) Janssen Volunteer Committee: $4 ($96 previously obtained through the
Revenue Recapture program)
·
Report of Receipts
and Expenditures due October 28, 1996
Connie Janssen, (Connie) Janssen Volunteer Committee: $500
·
Report of Receipts
and Expenditures due January 31, 1997
Connie Janssen, (Connie) Janssen Volunteer Committee: $100
·
Original Statement
of Economic Interest
Roslyn Wade, Assistant Commissioner, Labor and Industry Department: $100
·
Report of Receipts
and Expenditures due October 21, 2002
Laverne Turner, (Laverne) Turner for Senate: $30 (Balance due $270)
Payment of interest on judgments
·
Reports of Receipts
and Expenditures due September 3, 1996, October 28, 1996, and January 31, 1997
Connie Janssen, (Connie) Janssen Volunteer Committee: $104.30
Payment of service of process fees
·
Reports of Receipts
and Expenditures due September 3, 1996, October 28, 1996, and January 31, 1997
Connie Janssen, (Connie) Janssen Volunteer Committee: $78
Civil penalty
·
Conciliation
Agreement
Dick Borrell, (Dick) Borrell for 19B - In calendar year 2003,
the (Dick) Borrell for 19B committee accepted a facially excessive contribution
that exceeded the applicable contribution limit by $50. The amount of the excess contribution was
returned by the committee, but not within 60 days as required by Minn. Stat.
§10A.15, subd. 3. On September 8, 2003,
Mr. Borrell entered into a conciliation agreement and paid a civil fine of $100.
Anonymous contribution
Susan Olson, treasurer, Volunteers for (Patricia) Sundberg: $38.46
Gift to State General Fund upon termination of a committee
James Gilbert, candidate, Citizens for Justice Gilbert: $6,235.12
Financial statement and agency deposits - Mr. Sigurdson submitted a report covering July 1 through
September 2003.
Board members reviewed a
list of possible legislative recommendations for 2004 (see
list of recommendations attached). Chair
Miller made the following appointments
to the legislative recommendations committee:
Chair Fluegel, Ms. Ashmore, Mr. Milbert, and Chair Miller, ex officio.
The committee will meet and report to the Board no later than the January
Board meeting.
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
following the oral arguments in the Minnesota Concerned Citizens for Life
(MCCL), et al. v. Kelley, et al. on October 21st, the judge has 30
days to make a decision, but may postpone a decision pending a ruling in the
McCain/Feingold case in federal court.
Amended
Findings in the Matter of the Complaint Regarding the Corporate Commission
of the Mille Lacs Band of Ojibwe Indians and H. Theodore Grindal
At its meeting of August
27, 2003, the Board approved findings in the matter of a complaint filed by
David Hoch against the Corporate Commission of the Mille Lacs Band of Ojibwe
Indians and H. Theodore Grindal. Staff
was contacted by Mr. Hoch, who noted that #3 in the evidentiary finding stated
that Mr. Grindal amended his Lobbyist Disbursement Report to disclose an
additional $179,735.58 in media advertisements. However, Mr. Grindal’s amended Lobbyist Disbursement Report
disclosed the additional $179,735.58 in multiple lobbying disbursement
categories.
Mr.
Fluegel’s MOTION: To direct
staff to amend the draft to exclude a note on further amendments made by Mr.
Grindal and approve the amended findings.
Vote on MOTION:
Unanimously passed .
Findings
in the Matter of the Complaint Regarding (Dave) Engstrom for Senate Committee - The Board issued findings showing that there is probable cause to believe
that the (Dave) Engstrom for Senate committee used a fax machine, office phone,
office e-mail address in the office of Minnesota Housing Resources, Inc.for
campaign-related communications and failed to disclose the fair market costs
on his Report of Receipts and Expenditures. 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 Richard Cohen
– The Board issued findings showing that there is no probable cause to believe
that Senator Cohen was required to disclose compensation received for his
work as a self-employed attorney on his Statements of Economic Interest, under
Minn. Stat. §10A.09. 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 Mee Moua
– The Board issued findings to
show that there is probable cause to believe that Senator Moua inadvertently
violated Minn. Stat. §10A.09, when she failed to disclose the compensation
received from Leonard, Street and Deinard in April, 2002, on her Supplemental
Statement of Economic Interest originally filed on July 25, 2002.
Because Senator Moua amended her Supplemental Statement of Economic
Interest originally filed on July 25, 2002, there is no probable cause to
believe a reporting violation continues to exist.
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 John Marty
– The Board issued findings to show that there is no probable cause to believe
that Senator Marty was required to disclose any compensation received for
his work as a writer on his Statements of Economic Interest, under Minn. Stat.
§10A.09. 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 John Hottinger
– The Board issued findings to show that there is no probable cause to believe
that Senator Hottinger was required to disclose compensation received for
his work as a contract attorney for McKenzie and Gustafson on his Statements
of Economic Interest, under Minn. Stat. §10A.09.
The Board ordered that the findings and the record of the investigation
be made a part of the public records of the Board
Findings in the Matter
of the Complaint Regarding Dallas Sams
– The Board issued findings showing
that there is probable cause to believe that Senator Sams inadvertently violated
Minn. Stat. §10A.09, when he failed to disclose his interest in Sams Farms,
Inc. on his previously filed Statements of Economic Interest.
Because Senator Sams has amended all previously filed Statements of
Economic Interest, there is no reason to believe a reporting violation
continues to exist. The Board
ordered that the findings and the record of the investigation be made a part
of the public records of the Board
Findings
in the Matter of the Complaint Regarding Prairie Island Dakota Community
Prairie Island and John Knapp
– 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. Knapp amended his Lobbyist Disbursement Reports for the periods
covering January 1 through March 31, 2002, January 1 through March 31, 2003,
and April 1 through June 30, 2003, to include all lobbying disbursements made
by the Prairie Island Dakota Community within ten days of receiving the Board’s
inquiry regarding the complaint. Minnesota Statutes, Chapter 10A provides no penalty for this violation.
The Board ordered that the findings and the record of the investigation
be made a part of the public records of the Board
Meeting
adjourned.
Jeanne
Olson
Executive
Director
attachments
(10)