STATE OF MINNESOTA
CAMPAIGN FINANCE AND PUBLIC DISCLOSURE BOARD
. . . . . . . . .
Wednesday, May 26, 2004
. . . . . . . . .
Blazing Star Conference Room
Ground Level, Centennial Office Building
. . . . . . . . .
Meeting was called to
order by Chair Fluegel.
Ms. Boyd informed Board
members she would be unable to attend the meeting.
MINUTES (April 28, 2004)
Ms.
Bettermann’s MOTION: To approve the April 28,
2004, minutes as drafted.
Vote on MOTION: Unanimously passed by four members
(Milbert absent.)
CHAIR'S
REPORT
Chair Fluegel reported
that the Senate approved the
appointments of Ms. Bettermann and Ms. Boyd on May 15th.
·
Legislation
Legislation changing the enforcement
provisions of 211A, 211B, and 383B no longer has an impact on the Board. The Office of Administrative Hearings is
charged with the work required under the new legislation.
Next meeting is scheduled
for Tuesday, June 15, 2004, 8:30 a.m.
Ms. Olson submitted the
following written report:
·
Staff Activities
On May 18th Ms. Olson spoke at a conference of the International
Association of Business Communicators – Minnesota Chapter, about lobbyist
registration and reporting as well as campaign finance activities and the gift
ban.
Staff is offering monthly compliance and software training in the
Capitol Complex. Out-state training
will begin in June.
The 2003 Campaign Finance Summary was available for members.
Based on a 2003 law change, Lobbyist Disbursement Reports will be due
June 15th for the period January 1 through May 31st. Therefore, staff anticipates that the
Lobbyist Disbursement Summary will be issued in August instead of September.
Staff is preparing documents for the 2004 election. Candidate packets will be mailed or
delivered to filing officers prior to July 6th for distribution to
candidates who file an Affidavit of Candidacy.
Separate packets will be available for judicial candidates.
·
Legislation
Funds to pay the Office of Administrative
Hearings for complaints relating to 211A, 211B, and 383B for constitutional
office and legislative candidates and state ballot questions will be generated
from additional filing fees on candidates who file for office and appropriated
from the general account of the state elections campaign fund. If the appropriation of $65,000 per fiscal
year from the state elections campaign fund isn’t used, remaining funds will be
returned to the general account. All
partisan candidates will receive less in direct public subsidy payments under
this provision.
Senate File 931, which contained most of the
Board’s 2003 legislative recommendations, was not heard on the House
floor. Ms. Olson will combine the
Board’s 2003 and 2004 legislative recommendations for possible inclusion in
recommendations to the 2005 legislature.
The Board’s Fee Study was not included in
any legislation during the 2004 legislative session.
·
Personnel
Ms. Olson introduced Marcia Waller. Ms. Waller began work as the Board’s
receptionist on May 3rd.
Jon Peterson will begin work in the Board’s
Information Technology II position on June 2nd.
·
Miscellaneous
No legislation limiting travel was passed,
however the governor’s travel policy remains in effect. Members may wish to authorize funds for
members or staff to attend the annual Council on Governmental Ethics Laws conference,
scheduled for December 5th through 8th in San
Francisco. In past years, two Board
members and two staff members have attended.
Enforcement Report
The Schwan Political Action Committee - By letter received in the Board
office on May 5, 2004, Gordon Crow, treasurer, Schwan Political Action
Committee, requested that the committee be allowed to terminate its
registration with an ending cash balance of more than $100. The committee will remain active on the Federal
level.
Mr. Miller’s MOTION: To approve Mr. Crow’s request and direct staff to terminate the
Schwan Political Committee registration with the Board with an ending cash
balance of more than $100.
Vote on MOTION: Unanimously passed.
·
Report of
Receipts and Expenditures due February 2, 2004
Elizabeth Wielinsk, Treasurer, 59th Senate District
DFL, $100 late filing fee, $700 in civil penalties - Report of Receipts and Expenditures was received in
the Board office on May 17,
2004. In her letter accompanying the
report Ms. Wielinsk explains that the treasurer of the committee at the time
that report was due told the central committee that the report had been filed
in January. The committee members only
became aware of the fact that the report had not been filed by visiting the
Board’s web site. After a protracted
effort to get the committee records from the former treasurer failed the
committee obtained the records for 2003 directly from the bank.
Ms.
Ashmore’s MOTION: To deny Ms. Wielinsk’s request to waive the $100
late filing fee and reduce the civil penalty to $100.
Vote on MOTION: Unanimously
passed.
·
Lobbyist
fee due January 15, 2004
Sandra Hofstetter, AT&T Corporation, $100 late fee, $200 in civil penalties
(laid over from the April 28th meeting) - The $50 lobbyist
fee was received in the Board office on March 26, 2004. At its meeting on April 28th the
Board requested that Ms. Hofstetter provide additional information regarding
the nature of her work for the AT&T Corporation. Ms. Hofstetter sent a letter stating that her “contract work for
AT&T includes lobbying activities.”
No motion was made.
Michael Yang, Urban Coalition, $100 late fee (laid over
from the April 28th meeting) - At its meeting on April 28th
the Board reviewed a request from Mr. Yang to waive the $50 lobbyist fee and
the $100 late fee for the late filing of the Lobbyist Disbursement Report both
due January 15, 2004. No motion was
made. On May 6, 2004, Mr. Yang paid the
$50 lobbyist fee and again requested that the Board waive the late fee. No motion was made.
·
Principal
fee due March 15, 2004
Midwifery NOW, $80 late fee - The $50 principal
fee was received in the Board office on April 27, 2004. Amy Miller, treasurer for Midwifery NOW,
requested by letter that the Board waive the late fee because she is a new
treasurer for the organization and was unaware of the $50 fee. No motion was made.
·
Annual
Report of Lobbyist Principal and principal fee due March 15, 2004
Let
Minnesota Vote, $200 late fees, $400 in civil penalties – Report of
Lobbyist Principal and the $50 principal fee were received in the Board office
on May 14, 2004. Steve Arlowe, Chair
for Let Minnesota Vote, requested by letter that the Board waive the late fees
and civil penalties because “the report was received by someone who didn’t
realize what to do with it and did not immediately give it to me or others who
were responsible for filing it.”
Mr.
Miller’s MOTION: To deny Mr. Arlowe’s request to waive the $200 late
filing fee and reduce the civil penalty to $200.
Vote on MOTION: Unanimously passed.
Request for an extension
to amend the Report of Receipts and Expenditures
Ray Sandborgh, treasurer, Anita Sandborgh for You - The Report of Receipts
and Expenditures for the Anita
Sandborgh for You committee covering the period January 1 through December 31, 2003, disclosed
a cash balance discrepancy. Board
staff requested that Mr. Sandborgh provide an explanation for the
discrepancy. Mr. Sandborgh is requesting
an extension to respond until June 17, 2004.
Ms. Ashmore’s MOTION: To
approve Mr. Sandborgh’s request to extend the deadline for amending the Report
of Receipts and Expenditures to June 17, 2004.
Vote on MOTION: Unanimously passed.
Payment of late filing fees
·
Report of
Receipts and Expenditures due February 2, 2004
LeAnn
Hertzog, treasurer, Will Donovan for State Senate: $20
·
Annual
Report of Lobbyist Principal due March 15, 2004
AIG, Inc.: $50
Lutheran Social Services: $50
NGP MN Biomass: $65
·
Lobbyist
principal fee due March 15, 2004
NGP MN Biomass, LLC: $5
National Solid Waste Management:
$115
DSG Strategies, Inc.: $80
Anonymous Contribution for deposit in General Fund of State Elections Campaign Fund
Justin Krych, Minnesotans for (Justin)
Krych: $36.49
Conciliation
Agreement
Roger
Moe, candidate, (Roger) Moe for Minnesota, $150 - In calendar year 2002,
the Moe for Minnesota committee accepted a $50 contribution from the campaign
committee of a candidate for local office.
In addition, the committee accepted three contributions from an
individual totaling $2,100. The total amount of the three contributions exceeded
by $100 the applicable election year limit.
Mr. Moe returned $150 to contributors, entered into a conciliation
agreement on May 3, 2004, and paid a civil fine of $150.
Financial statement and agency deposits - Mr. Sigurdson submitted a report covering July 1, 2003, through
April 30, 2004.
Board members reviewed a
draft spending plan for fiscal year 2005.
Ms. Ashmore’s MOTION: To approve the spending plan for fiscal
year 2005 as drafted.
Vote on MOTION: Unanimously passed.
Advisory Opinion Request
#357 –
Compensation for Staff
Services, In-kind Donation to Pay for Living Expenses of Staff
Board members reviewed
and made certain language changes to a draft opinion.
Ms. Bettermann’s MOTION: To approve advisory opinion #357 as amended
in discussion.
Vote on MOTION: Unanimously passed.
SUMMARY: ADVISORY OPINION #357 signed by Chair Wil Fluegel, May 26, 2004: Political party units and candidates may jointly hire and compensate staff to work on campaigns and develop assets. The staff’s time must be closely tracked and projects between the party units and candidates segregated in order to prevent unauthorized in-kind donations. An association that provides compensation to campaign staff is making an in-kind donation to the principal campaign committee that benefits from the staff’s work.
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 David Dill - The Board issued findings to show that there is probable cause to believe that the David Dill for Minnesota District 6A committee: 1) underreported the fair market value of the use of the Mr. Dill’s personal aircraft and did not properly disclose the expense on the 2002 pre-primary Report of Receipts and Expenditures; 2) improperly and inadvertently classified a campaign expenditure as a noncampaign disbursement; 3) improperly allocated a pre-primary expenditure as a post-primary expense; 4) exceeded the expenditure limits for first time candidate and for a first time candidate in a contested primary; and 5) made an inappropriate expenditure when he used campaign funds to purchase his own food while campaigning. The finding also found that there was no probable cause to believe that: 1) an inappropriate in-kind contribution was made to the committee; 2) the committee benefited from an employee discount for aviation fuel; and 3) the committee paid two individuals for web site services. 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 Minnesota DFL State Central Committee, the DFL House Caucus and the DFL House Caucus Federal PAC - The Board issued findings to show that there is no probable cause to believe that the
DFL House Caucus Federal PAC, the DFL House Caucus or the Minnesota DFL State Central Committee attempted to circumvent any of the provisions in Minn. Stat. §§10A.14, 10A.27, or 10A.20 by redirecting a contribution through, or making a contribution to a Chapter 10A candidate on behalf of another individual or association, by failing to file a Statement of Organization, by transferring funds from one committee to another, or by failing to provide the necessary disclosure for the source of the funds used to support Chapter 10A candidates. 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 Mille Lacs Band of Ojibwe Indians - The Board issued findings to show that there is probable cause to believe that the Mille Lacs Band of Ojibwe inadvertently violated Minn. Stat. §10A.27, subd. 13, when it made a contribution to the Crow Wing County DFL and did not provide the required
disclosure. 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 Regarding the Duluth Building Trades Volunteer Party Fund - The Board issued findings to show that there is probable cause to believe that the Duluth Building Trades Council: 1) ran a radio advertisement on behalf of a candidate without the required independent expenditure disclaimer; and 2) deposited a contribution intended for the Association’s political fund into the account of the general fund of the Association. The finding also found that there is no probable cause to believe that the treasurer of the fund knowingly omitted the independent expenditure disclaimer. 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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