STATE OF MINNESOTA
CAMPAIGN FINANCE AND PUBLIC DISCLOSURE BOARD
. . . . . . . . .
Wednesday, April 28, 2004
. . . . . . . . .
Blazing Star Conference
Room
Ground Level, Centennial
Office Building
. . . . . . . . .
Meeting was called to
order by Chair Fluegel.
Members present: Ashmore, Bettermann, Boyd, Fluegel, Milbert,
Miller
MINUTES (February
25, 2004)
Mr.
Miller’s MOTION: To approve the February 25, 2004, minutes as drafted.
Vote on MOTION: Unanimously passed by five members
(Ashmore absent).
CHAIR'S
REPORT
Ms. Olson reported that the House confirmed the
appointments of Ms. Bettermann and Ms. Boyd on April 23rd. The Senate Elections Committee will schedule
a hearing for the second week in May to hear the appointments. The Senate must confirm the appointments
before adjournment sine die or the appointments will need to again go through
the Open Appointment process.
Next meeting is scheduled
for May 26, 2004.
Chair Fluegel’s MOTION: Resolved, that the Campaign Finance and Public Disclosure
Board recognizes Douglas Kelley for his service from 2000 to 2004 as a
member of the Board and offers this resolution in appreciation for his
investment of time and energy in support of the mission and objectives of the
Minnesota Campaign Finance and Public Disclosure Board.
Vote on MOTION: Unanimously
passed by five members (Ashmore absent).
Mr. Miller’s MOTION: Resolved, that the Campaign Finance
and Public Disclosure Board recognizes Sidney Pauly for her service from 1996 to 2004 as a
member of the Board and offers this resolution in appreciation for her
investment of time and energy in support of the mission and objectives of the
Minnesota Campaign Finance and Public Disclosure Board.
Vote on MOTION: Unanimously
passed by five members (Ashmore absent).
Ms. Olson submitted the
following written report:
·
Staff Activities
On March 11th Mr. Sigurdson and Ms. Olson met
with the political science club at the University of St. Thomas. They discussed the Board and its functions
and campaign finance issues.
On March 12th, Mr. Sigurdson presented
information about lobbying, the gift ban, and campaign finance to a University
of Minnesota Graduate School of Public Health class, Legislative Advocacy
Skills for Public Health.
Annual Reports of
Lobbyist Principals and principal fees were due March 15th. Lobbyist principals have paid fees totaling
$118,500. As of April 26th,
$1,150 remains to be paid.
A copy of Lobbyist
Principal Expenditures 2003, a summary of Principal’s expenditures with a
news release issued on Thursday, April 15th, was available for
members.
On March 16th Ms. Olson met with a group of
about 40 citizens in Southwest Minneapolis called “BOB” (getting to the Bottom
Of the Ballot). They discussed the
Board and its role in campaign finance.
Senator John Marty and Professor David Schultz also shared their
thoughts on Minnesota’s campaign finance provisions.
On April 2nd Ms. Olson presented information to
a Minnesota Law School class, The Legislative Process. They met at the Capitol and discussed
lobbyist registration and reporting as well as gift ban provisions. Joe O’Neill is the class professor.
On April 26th and 27th Mr. Sigurdson
was in Des Moines, IA, to attend the annual Heartland Conference of Council on
Governmental Ethics Laws (COGEL) members.
He was on a panel to present information to the group about the lawsuit
brought against the Board by the MCCL.
·
Legislation
Legislation requiring the
Board to enforce the provisions of Minn. Stat. chapter’s 211A, 211B, and 383B
is in the House Omnibus State Government Finance bill with funding as
requested. The provision is not in the
Senate Omnibus State Government Finance bill so the legislature will decide
this issue in conference committee. The
Office of Administrative Hearings has proposed to do the work required under
the new legislation and has provided the legislature with an outline of their
suggested processes and costs.
The House Omnibus State
Government Finance bill deletes the language that provides that $1,500,000 is
deposited each election year into the General Account of the State Elections
Campaign Fund from the General Fund of the State. The $1,500,000 appropriation was part of the 1993/94 campaign
finance reforms.
The House Omnibus State
Government Finance bill also requires the Board to give specific notice to a
complainant and on the Board’s website whenever a decision is made to extend a
deadline to issue findings or an advisory opinion.
Senate File 931, which
contains most of the Board’s 2003 legislative recommendations, was amended by
the Senate and is now waiting to be heard on the House floor.
No further legislative
hearings are scheduled to discuss the Board’s Fee Study.
·
Personnel
The
Board’s receptionist, Christine Eliasson, resigned effective March 26th
to accept a position with Minnesota State Retirement System, which allows her to
work flextime. Marcia Waller will begin
employment in that position on Monday, May 3rd.
Xiaowei Cao, one of the
Board’s information systems specialists, resigned effective April 16th
to accept a higher-level position with the Department of Public Safety. Interviews are scheduled to begin Thursday,
April 28th with candidates to fill this position.
·
Miscellaneous
The annual COGEL
conference is scheduled for December 5th through 8th in
San Francisco, CA. In past years, two
Board members and two staff members have attended. Currently there is a general ban on out-state travel; however,
the Board chair, or Ms. Olson as the agency head, may determine that the state
will benefit from Board or staff member attendance at the conference. Because it is the only subject matter
training available, attendance has been approved in the past. Ms. Olson will personally pay for her
airfare to attend and, pending Board approval, will charge the state for the
registration fee, food, and lodging.
Members may wish to decide to authorize funds for additional individuals
to attend the conference. The Senate
Omnibus State Government Finance bill is proposing a stricter travel ban. If the bill passes, Ms. Olson will inform
members of the final language and how it applies to Board and staff
travel.
Chair Fluegel’s MOTION: To
authorize funding for Ms. Olson to attend the Council on Governmental Ethics
Laws annual conference December 5th – 8th subject to
legislative change on state employee travel.
Vote on MOTION: Unanimously passed.
Enforcement Report
Board Action: Authorization for referral to the Office of the
Attorney General for failure to file the Report of Receipts and Expenditures
due February 2, 2004, and imposition of a civil penalty. Two
certified letters have been sent to each individual and staff attempted to
contact each committee by telephone. A
late filing fee of $5 per business day began to accrue on February 24, 2004,
and civil penalties began to be assessed on a weekly basis on March 12,
2004,
Kerri
Allen, Neighbors for (Kerri) Allen
Maureen
Anderson, (Maureen) Anderson Volunteer Committee
Jim
Berry, Neighbors for (Jim) Berry
Brian
Biele, Elect Brian T. Biele Committee
Mark
Borsheim, (Mark) Borsheim for Representative
Sherrie Breedlove, Sherrie Breedlove Volunteer Committee
Tim Davis, Timothy A. Davis Sr. Volunteer Committee
Ray Egan,
Ray Egan for Senate
Roman Fraulini, (Roman) Fraulini Volunteer Committee
Troy Haefner, (Troy) Haefner for Senate
Chad Hobot, Friends of Chad Hobot
Joel Holstad, Committee to Elect Joel Holstad
Gary Laidig, (Gary) Laidig Volunteer Committee
Sarah Lewerenz, (Sarah) Lewerenz Volunteer Committee
Todd Lindquist, Friends of Todd Lindquist
Larry Lownie, Friends of Larry Lownie
Timothy Manthey, (Timothy) Manthey for Senate
Steven Morse, Senator (Steven) Morse Volunteer Committee
Eric Pone, Eric Pone Volunteer Committee
Phil Rattè, (Phil)
Rattè for State Representative
Darryl Spence, Darryl Spence for State Representative
Lisa Tarasar, Friends of Lisa Tarasar
Kevin Trainor, Taxpayers for (Kevin) Trainor
Ray Wheeler, Ray Wheeler Volunteer Committee
Elizabeth Wielinski, 59th Senate District DFL
Phil Moen, Lincoln County DFL
Paul Mock, Citizens for Effective Leadership
Sally Morrison, Leech Lake PAC
Matthea Little Smith, Minnesota Black Political Action Committee
Brian Biele, Working Families Coalition
Board Action: Authorization for referral to the Office of the
Attorney General for failure to pay the principal fee due March 15, 2004, and
imposition of a civil penalty. Two certified letters have
been sent to each individual. A late
filing fee of $5 per business day began to accrue on April 5, 2004, and civil penalties will begin to be assessed on a
weekly basis on May 3, 2004.
Advanced
Drainage Systems
Leech Lake Reservation Business Community
Let Minnesota Vote
Libertarian Party of Minnesota
Living Benefits Financial Services
Local Public Health Association of Minnesota
Lyndale West Partners, LLC
Minnesota Independent Auto Glass Association
Minnesota School Counselors Association
Motorola, Inc (LMPS/RNSG)
Multi- Gaming Management, Inc
National Benefits, Inc
Pimicikamak Cree Nation
Pleasuredome Resorts, Inc
Public Interverners Network
Society of Glass and Ceramic Decorators
Taking A Stand Kollectively – TASK
United Teachers of South Washington County
Westfield Concession Management, Inc
Board Action: Authorization for referral to the Office of the Attorney General for
failure to file the Annual Report of Lobbyist Principal due March 15, 2004, and
imposition of a civil penalty. Two
certified letters have been to each individual. A late filing fee of $5 per business day
began to accrue on April 5, 2004,
and civil penalties will begin to be assessed on a weekly basis on May 3,
2004.
Advanced Drainage Systems
American Utilities Management
Leech Lake Reservation Business Community
Let Minnesota Vote
Libertarian Party of Minnesota
Living Benefits Financial Services
Lyndale West Partners, LLC
Middle Management Association
Minnesota Aquaculture Association
Minnesota Mechanical Contractors Association
Minnesota Self-Insurers Association
Minneapolis Public Schools
Multi-Gaming Management, Inc
Pleasuredome Resorts, Inc
Public Interveners Network
Safe Place for Newborns
Taking A Stand Kollectively – TASK
Trans Link Development Co
US Link, Inc
Virginia Firefighters Local 390
Westfield Concession Management, Inc
Mr. Miller’s MOTION: To
authorize the actions specified in the consent matters.
Vote on MOTION: Unanimously passed.
Request for waiver of late filing fees, civil
penalties, and fees
·
Report of Receipts
and Expenditures due February 2, 2004
Dale Swapinski, candidate, Citizens for Dale Swapinski, $50 – Report of Receipts and
Expenditures was received in the Board office on March 9, 2004. In his waiver request, Mr. Swapinski stated
that he has been out of town for over five months in the past calendar
year. Mr. Swapinski has filed the forms
to terminate his committee. No motion
was made.
Duane Reed, candidate, Committee to Elect Duane K. Reed, $80 – Report of Receipts
and Expenditures was received in the Board office on March 17, 2004. In his waiver request, Mr. Reed stated that
he had no funds in his account on December 31, 2002, and he was unaware that he
was required to file a report for 2003.
Mr. Reed has filed the forms to terminate his committee. No motion was made.
Christopher Shoff, chair, 27th Senate District DFL, $100 – Report of Receipts
and Expenditures was received in the Board office on March 24, 2004. In his waiver request, Mr. Shoff stated that
the party unit’s records were kept with the treasurer who recently passed
away.
Ms.
Ashmore’s MOTION: To approve
Mr. Shoff’s request to waive the $100 late filing fee due to extenuating
circumstances.
Vote on MOTION: Unanimously
passed.
·
Lobbyist fee due
January 15, 2004
John Smullen, United Transportation Union, $100 late filing fee, $100 civil penalty -
The $50 lobbyist fee was received in the Board office on March 12, 2004. Henrietta Jelinek, secretary, with the
United Transportation Union, submitted a waiver request on behalf of Mr.
Smullen and stated that the fee was not timely paid due to an oversight. No motion was made.
Curtis M. Walker, Minnesota Golf Course Owners Association, $100 late filing fee -
The $50 lobbyist fee was received in the Board office on March 5, 2004. Mr. Walker stated that he has not been
active for several years, and indicated the he will be terminating his
registration as a lobbyist. No motion
was made.
Sandra Hofstetter, AT&T Corporation, $100 late
filing fee, $200 in civil penalties - The $50 lobbyist fee was received
in the Board office on March 26, 2004.
In her waiver request Ms. Hofstetter stated that her previous employer,
AT&T, forwarded the letter from the Office of the Attorney General to her
and it was the first notice she received telling her that a fee was due. Ms. Hofstetter stated “I retired from
AT&T on December 18, 2003, and am now doing contract work for AT&T. I was unaware of the need to continue to
register and pay this fee.”
Mr.
Milbert’s MOTION: To: 1) direct
staff to request more information from Ms. Hofstetter, and 2) to lay this
matter over to the next meeting.
Vote on
MOTION: Unanimously passed.
Dan Hardy, Mortgage Bankers Association of Minnesota, $100 late filing fee, $200 in
civil penalties - The $50 lobbyist fee was received in the Board office
on March 24, 2004. In his waiver
request Mr. Hardy stated that he left employment of the Mortgage Bankers
Association of Minnesota in March 2003 and has not lobbied since.
Ms.
Ashmore’s MOTION: To approve
Mr. Hardy’s request to waive the $200 civil penalty and impose the $100 late
filing fee.
Vote on MOTION: Unanimously
passed.
·
Lobbyist Disbursement Report and lobbyist fee due January 15, 2004
Michael Yang, Urban Coalition, $100
late filing fee - Lobbyist Disbursement Report was received in the Board office
on March 8, 2004. Mr. Yang has not paid
his $50 lobbyist fee. In his request
Mr. Yang stated that his employment with the Urban Coalition was terminated on
December 17, 2003, and that all notices were sent to his former employer. Mr. Yang stated that he never received a
notice. Mr. Yang was the sole lobbyist
for the Urban Coalition and he has terminated his lobbyist registration. Mr. Yang is further requesting that the
Urban Coalition be deemed liable for his lobbyist fees. No motion was made.
Andrew Seitel, Minnesota Comprehensive
Health Association, $100 late fee, $300 in civil penalties - Lobbyist
Disbursement Report and a Statement of Termination were received in the Board
office on March 31, 2004. Mr. Seitel
did not pay his $50 lobbyist fee. In
his waiver request, Mr. Seitel stated that he has not lobbied since February
2003, when he left employment due to a disability. Mr. Seitel stated that in the summer of 2003 he verbally informed
Board staff of his desire to terminate his registration and he believed he
completed a termination statement at that time. Board records do not indicate that a termination statement was
received. Mr. Seitel has since terminated
and is requesting that the $50 fee, the late filing fees and the civil
penalties be waived.
Ms. Ashmore’s MOTION: To
approve Mr. Seitel’s request to waive the $300 civil penalty and impose the
$100 late filing fee and the $50 lobbyist fee.
Vote on MOTION: Unanimously passed.
Phil Heir, treasurer, Phil Heir
for Senate – The Report of Receipts and Expenditures for the Phil Heir
for Senate committee covering the period January 1 through December 31, 2003,
disclosed a negative ending cash balance of $1,646.55. Board staff requested that Mr. Heir
provide an explanation for the negative ending cash balance by April 2,
2004. Mr. Heir is requesting an
extension to respond until May 15, 2004, because his treasurer is unavailable
and he is familiarizing himself with the Finance 2002 software program.
Mr. Milbert’s MOTION: To
approve Mr. Heir’s request to extend the deadline for amending the Report of
Receipts and Expenditures to May 15, 2004.
Vote on MOTION: Unanimously passed.
Evan Brennan, assistant to treasurer,
Schwan’s Political Action Committee - The Report of Receipts and Expenditures
for Schwan’s Political Action Committee covering the period January 1 through
December 31, 2003, disclosed a cash balance discrepancy. Board staff requested an explanation for the
cash balance discrepancy by April 23, 2004.
Mr. Brennan is requesting an extension to respond until May 7, 2004,
because he has discovered a need to amend the committee’s 2002 report as well.
Ms. Ashmore’s MOTION: To
approve Mr. Brennan’s request to extend the deadline for amending the Report of
Receipts and Expenditures to May 7, 2004.
Vote on MOTION: Unanimously passed.
Payment of late filing
fees
·
Report of Receipts and Expenditures due January 31, 2001
Lisa Tarasar, candidate, Friends of Lisa Tarasar: $100 (Revenue Recapture)
·
Report of Receipts and Expenditures due October 21, 2002
Sheree Breedlove, candidate, Sheree Breedlove Volunteer
Committee: $22
(Revenue Recapture,
Balance = $0 for this fee, Ms. Breedlove has other fees and penalties that
remain outstanding)
Mike Fitzpatrick, treasurer, 17B House District RPM
(Benton County RPM): $210
·
Report of Receipts and Expenditures due February 2, 2004
Eric Dammer, candidate,
Citizens to Elect Eric Dammer: $25
Ron Dicklich, candidate,
(Ronald) Dicklich for Senate: $80
Jan Carroll, treasurer,
(Mark) Gleason for State Auditor: $20
Andrew Koebrick,
candidate, Andrew S. Koebrick for Secretary of State: $20
John Krenik, candidate,
John Krenik Volunteer Committee: $10
Tom Menke, candidate,
Friends of Thomas Menke: $5
Darrell Mosel, candidate,
Darrell Mosel Volunteer Committee: $30
Mark Babcock, treasurer,
Elect Bonnie Jean Smith: $45
Donald Waller, candidate,
Donald D. Waller Election Committee:
$15
Dale Wilkinson, candidate, (Dale Wilkinson) Guarding Rights
Auditing State Systems: $10
Donald Halverson,
treasurer, Clearwater County RPM: $65
Dale Wilkinson, chair,
Grassroots Party: $10
William McDonald, treasurer, Hennepin County Probation and
Parole Officers Union: $10
Kaye Rakow, treasurer,
NAIOP Economic Growth Fund: $30
William Babekuhl,
treasurer, St. Paul Firefighters Local 21:
$95
·
Lobbyist Disbursement Report due January 15, 2003
Edwin Cain, City of
Stillwater: $10
Edwin Cain, IndiVisual
Learning Center: $10
Edwin Cain, Middle St.
Croix Watershed Organization: $10
Edwin Cain, Short,
Elliot, Hendrickson: $10
·
Lobbyist Disbursement Report due January 15, 2004
Edwin Cain, Middle St.
Croix Watershed Organization: $35
Mary Crozier-Sauer,
Children’s Home Society of Minnesota:
$30
Diane Jensen, The
Minnesota Project: $5
Robert
Ryan, PrimeWest Joint Powers Board: $15
·
Lobbyist fee due January 15, 2004
Jill Kielblock, AFSCME
14: $45
Nola Lynch, AFSCME
14: $45
Robert Siegal, AFSCME
14: $55
John Benske, AstraZeneca
Pharmaceuticals: $65
Peter Bachman, Minnesota
Center for Environmental Advocacy: $60
Sarah Eppard, North Metro
Mayors Association: $100
Curt Milburn, Phalen
Corridor: $60
Mark Andrews, UTSWC: $100
Patti Diamond,
UTSWC: $100
·
Annual Report of Lobbyist Principal due March 15, 2004
Anderson
Corporation: $30
Association of Minnesota
Counties: $70
Comcast: $15
Eden Prairie Education
Association: $20
Fish and Wildlife
Legislative Alliance: $30
Minnesota Chiefs of
Police Association: $35
Minnesota Craft Brewers
Guild: $20
Minnesota Dental
Association: $40
Minnesota Transmission
Owners: $15
NBI/OHS, Inc.: $20
Parents United — Public
School Advocacy Network: $70
Women’s Health Center of
Duluth: $20
·
Lobbyist principal fee due March 15, 2004
Anderson
Corporation: $30
Artspace Projects,
Inc.: $20
Association
of Minnesota Counties: $70
Berkley Risk
Administrators: $25
Comcast: $5
Communication Workers of
America 7214: $20
Eastside Neighborhood
Development Company: $40
Minnesota Association for
Children’s Mental Health: $30
Minnesota Chiefs of
Police Association: $35
Minnesota Council on
Crime and Justice: $15
Minnesota Craft Brewers
Guild: $20
Minnesota Dental
Association: $40
Minnesota Psychiatric
Society: $25
North Memorial: $25
Save Our Schools: $70
Robert Eleff, House
Research: $20
Keith Payden, Department
of Administration: $100
Michael Rainville,
Metropolitan Parks and Open Space Commission:
$70
Payment
of service of process fees
Sheree Breedlove,
candidate, Sheree Breedlove Volunteer Committee: $33
(Revenue Recapture,
Balance=$0 for this fee, Ms. Breedlove has other fees and penalties outstanding.)
Lisa Tarasar, candidate,
Friends of Lisa Tarasar: $44 (Revenue
Recapture)
Payment of civil penalties
·
Report of Receipts and Expenditures due October 21, 2002
Sheree
Breedlove, candidate, Sheree Breedlove Volunteer Committee, $547 (Revenue
Recapture, Balance=$453 for this fee, Ms. Breedlove has other fees and
penalties outstanding.)
·
Lobbyist fee due January 15, 2004
Sarah
Eppard, North Metro Mayors Association:
$200
Torrey
Westrom,
candidate, (Torrey) Westrom for State Representative, $4 – During calendar year
2003, the Westrom for State Representative committee accepted contributions
from special source contributors totaling $1,200. The total amount of these contributions exceeded by $4 the
applicable non-election year limit. Mr.
Westrom returned $4 to contributors and entered into a conciliation agreement
on March 5, 2004, and paid a civil fine of $4.
Satveer Chaudhary, candidate, (Satveer) Chaudhary
for Senate, $250 – During calendar year 2002, the Chaudhary for Senate
Committee accepted two contributions from a political committee, which in
aggregate totaled $750. The total
amount of these contributions exceeded by $250 the applicable election year
limit. Mr. Chaudhary returned $250 to
the contributor and entered into a conciliation agreement on January 29, 2004,
and paid a civil fine of $250.
Execution of Conciliation Agreement
Carla Nelson, (Carla) Nelson Volunteer Committee - During 2003, the Nelson Volunteer Committee accepted contributions from special source contributors totaling $1,101. The total amount of these contributions exceeded by $5 the applicable non-election year limit on aggregate contributions from special sources. Ms. Nelson returned $5 to a contributor and entered into a conciliation agreement on March 7, 2004, and will forward a copy of the accompanying letter returning the excess contribution.
David Bishop, candidate, Dave Bishop Volunteer Committee: $1,200
Financial statement and agency deposits - Mr. Sigurdson submitted a report covering July 1, 2003, through
March 31, 2004.
Board members reviewed a
draft advisory opinion in response to a letter from a representative of a
political party unit who would like to establish a fundraising effort to
support the recruiting, training, and election of women to the House of
Representatives and asked several questions about establishing a committee,
fundraising, and reporting.
Ms. Boyd’s MOTION: To
approve Advisory Opinion 356 as drafted.
Vote on MOTION: Unanimously passed.
SUMMARY: ADVISORY OPINION
#356 signed by Chair Wil Fluegel, April 29, 2004: A political party unit may raise and spend
funds for women candidates as a group providing the fundraising does not refer
to a specific candidate and the contributions and expenditures are properly
reported to the Board.
Advisory Opinion Request #357 – Compensation for Staff Services – In Kind Donation to Pay for Living Expenses of Staff
Board members reviewed a
letter from a candidate for state office who asked for guidance on the proper
procedures to pay staff members who are also employed by a political party
unit.
Mr. Miller’s MOTION: To
lay the matter over to the next Board meeting.
Vote on MOTION: Unanimously passed.
Counsel Huwe presented the
legal counsel report outlining the status of cases that have been turned over
to the Attorney General’s office.
Findings in the Matter of the Complaint Regarding St. Paul Mayor Randy Kelly, St. Paul City Council Members Lee Helgen and Debbie Montgomery, and the Minnesota Wild - The Board issued findings to show that there is no probable cause to believe that either Rose-Wild or Minnesota Hockey Ventures Group were lobbyist principals in 2004 when an offer to facilitate the purchase of tickets to a hockey game was made. Because Rose-Wild and Minnesota Hockey Ventures Group were not lobbyist principals there is no probable cause to believe Mayor Kelly or Council members Helgen or Montgomery violated Minn. Stat. §10A.071 by accepting the offer. 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 Citizens Against Gambling Expansion - The Board issued findings to show that advocating for a position for a party platform is not a form of lobbying as defined by Minnesota Rules 4511.0100, subp. 3, and thus there is no probable cause to believe that Citizens Against Gambling Expansion meets the definition of 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
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