STATE OF MINNESOTA
CAMPAIGN FINANCE AND PUBLIC DISCLOSURE BOARD
. . . . . . . . .
Wednesday, December 17, 2003
. . . . . . . . .
Ladyslipper Conference
Room
Ground Level, Centennial
Office Building
. . . . . . . . .
Meeting was called to
order by Chair Miller.
Members present: Ashmore, Fluegel, Kelley, Milbert, Miller,
Pauly
MINUTES (November 19, 2003)
Ms.
Pauly’s MOTION: To approve the November 19, 2003, minutes as drafted.
Vote on MOTION: Unanimously passed.
CHAIR'S REPORT
Next meeting will be held
on January 28, 2004.
·
Nomination Subcommittee Report
Chair Miller reported
that the Nomination Subcommittee recommends the following slate of officers for
2004: Wil Fluegel, Chair and Teri
Ashmore, Vice Chair.
Mr. Milbert’s MOTION: To approve the subcommittee’s
recommendation and elect Wil Fluegel as Chair and Teri Ashmore as Vice Chair
for 2004.
Vote on MOTION: Unanimously passed.
Mark Scipioni, Management Analysis Division,
Department of Administration, presented the fee payment options selected by
Board members at the November 19th meeting with modifications as
directed. Board members reviewed and
selected one of the two Political Party Unit options presented.
Mr.
Fluegel’s MOTION: To adopt the
political party unit option that requires
state committees and legislative caucuses to pay an annual fee based on
the level of disbursements made by the party unit in a two-year period.
Vote on MOTION: Unanimously passed.
Board members reviewed and made language
changes to drafts of the legislative report, executive summary, and the
transmittal letter to be signed by the Board Chair.
Mr.
Kelley’s MOTION: To approve the
drafts of the legislative report,
executive summary, and the transmittal letter as amended in discussion.
Vote on MOTION: Unanimously passed.
The report will be made available to
interested parties before the January 15, 2004, deadline for delivery to the
Legislature. Board members thanked Mr.
Scipioni for his assistance with this project.
Mr. Fluegel, subcommittee
chair, presented a proposed list of legislative recommendations to the Board
and discussed changes made to the list by the subcommittee.
Mr. Fluegel’s MOTION: To approve the legislative
recommendations for 2004 as amended by the subcommittee.
Vote on MOTION: Unanimously passed (see
copy of legislative recommendations for 2004 attached).
Ms. Olson submitted the
following written report:
On
December 3rd Ms. Olson presented information about political
committees and funds, lobbying, and the gift ban to a continuing legal
education symposium for approximately 50 association managers.
On
December 12th staff sent invoices to 1,233 registered lobbyists
advising them of the lobbyist fee due January 15, 2004. Lobbyists who terminate their registration
prior to January 15th will not need to pay the fee.
Staff
completed the work necessary to enable lobbyists to file their January 15,
2004, reports electronically. Passwords
have been assigned and information about electronic filing was sent to all
reporting lobbyists. The legislature
directed the Board to have this option available for lobbyists by January 2005.
The
Department of Administration informed staff that beginning July 1, 2004, the
Board will be charged for our clients’ use of our searchable website. The costs are estimated to be between $250 and
$3,000 each month. We have purchased
our own server and are working toward maintenance of our website internally to
avoid the additional costs.
On
January 21st Ms. Olson will present information about lobbying,
campaign finance, and the gift ban at a Faegre and Benson continuing legal
education seminar.
On
January 23rd Ms. Olson will be on the faculty of a continuing legal
education seminar – The Minnesota Legislative Process. She will be discussing lobbying registration
and reporting requirements of Chapter 10A.
On
January 29th staff will present a training session for lobbyists in
the State Office Building and provide them with information about 2003 law
changes, the Board’s report to the legislature about a proposed fee schedule,
and electronic filing of Lobbyist Disbursement Reports.
·
Personnel
Ms. Olson introduced Belinda Stampley. Ms. Stampley began work on December 8th
as the Board’s Program’s Assistant.
Ms. Pauly’s and Mr. Kelley’s terms of
service on the Board expire in January 2004.
Pursuant to Minn. Stat. § 15.0575, subd. 2,
Board members may serve until their successors are appointed and qualify but in
no case later than July 1 in a year in which a term expires unless
reappointed.
Enforcement Report
Correspondence
·
Kristine
Madson, Minnesota Housing Resources, Inc., regarding the complaint against the
(Dave) Engstrom for Senate committee - At its meeting of Oct
·
ober 22nd
the Board issued findings regarding a complaint filed by Ms. Madson against the
(Dave) Engstrom for Senate committee.
The findings directed Mr. Engstrom to determine the fair market value of
the committees use of Minnesota Housing Resources, Inc.’s (MHRI) fax, phone and
email address, and to reimburse MHRI for the use of these resources. On November 20th Mr. Engstrom’s
attorney provided the Board with a copy of a check from Mr. Engstrom to MHRI
for $28.50.
On December 4th Ms. Madson
submitted a letter and supporting documents to Board staff stating that Mr.
Engstrom sent 2,389 e-mails from his MHRI e-mail account regarding his
campaign. Ms. Madson requested the
Board to instruct Mr. Engstrom to review his files and “fairly and accurately
reimburse MHRI for the use of its resources.”
Board members directed staff to draft a letter to Ms. Madson stating the Board declines to take further action in connection with the complaint, given the nature of the activity and the difficulty inherent in determining the economic value, if any, of the e-mails sent.
· Former Representative Betty Folliard regarding the Volunteers for Betty Folliard committee - On May 3, 2003, former Representative Betty Folliard entered into a conciliation agreement with the Board agreeing to return to contributors an amount sufficient to bring the committee into compliance with Minn. Stat. §10A.27, sub 11, and paid a civil fine of $338, two times the amount the special source aggregate contributions exceeded the limit.
In response to a routine reconciliation
memo sent by Board staff in October, 2003, Representative Folliard responded
saying that her committee incorrectly reported a transaction with Clean Water
Action as an in-kind contribution. The
committee contracted with and paid Clean Water Action for the services.
Representative Folliard amended the Report of Receipts and Expenditures to disclose the transaction with Clean Water Action as a campaign expenditure not an in-kind contribution and is requesting that the conciliation agreement be rescinded and that the civil fine of $338 be returned to the committee.
Ms.
Ashmore’s MOTION: To approve
Representative Folliard’s request and rescind the conciliation agreement and
direct staff to return the $338 civil fine to the Volunteers for Betty Folliard
committee.
Vote on MOTION: Unanimously passed.
·
Report of
Receipts and Expenditures due October 28, 2002
LaVerne Turner, (LaVerne)
Turner for Senate: $30 (Balance, $240)
·
Report of
Receipts and Expenditures due January 31, 2003
Larry McKenzie, Larry McKenzie Committee: $100 (Revenue Recapture)
Service of Process Fees
Larry McKenzie: $38 (Revenue Recapture)
Payment of Civil Fines
· Lynne Osterman, Lynne Osterman Campaign Committee - In calendar year 2002, the Lynne Osterman Campaign Committee accepted aggregate contributions in excess of the applicable election year contribution limit from political party units and terminating principal campaign committees. The total amount of these contributions exceeded by $400 the aggregate contribution limit. Representative Osterman entered into a conciliation agreement on November 17, 2003, which required her to return an amount sufficient to bring her committee into compliance, and pay a civil fine of $800, two times the amount by which the contributions exceeded the limit.
·
Melissa
Hortman, Melissa Hortman
Campaign Committee - In calendar year 2002, the Melissa Hortman Campaign
Committee accepted contributions from the candidate, Melissa Hortman, in excess
of the applicable election year contribution limit from candidates. The total amount of these contributions
exceeded by $460.91 the applicable contribution limit. Melissa Hortman entered into a conciliation
agreement on November 11, 2003, which required her to return $460.91 to the
candidate and pay a civil fine of $460.91, one times the amount by which the
contributions exceeded the limit.
Financial statement and agency deposits - Mr. Sigurdson submitted a report covering July 1 through
November 2003.
Board members reviewed a
draft proposal for assessing the $1,000 civil fine. The draft proposes weekly increments to the maximum of $1,000,
rather than imposing the full civil fine as a beginning point and also
considers the number of times the committee, association, or individual has
filed required documents or paid fees late and escalates the rate at which the
civil fine is assessed for repeat offenders.
Board members approved the policy as drafted.
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 reported
that the Court of Appeals affirmed the decision of the trial court in all
respects, including the award of attorney’s fees, in the matter of the Campaign
Finance and Public Disclosure Board vs. Minnesota DFL State Central
Committee. Board members agreed that
there should be no further appeal and directed staff to pay the attorney’s
fees.
Meeting
adjourned.
Jeanne
Olson
Executive
Director