STATE OF MINNESOTA
CAMPAIGN FINANCE AND PUBLIC DISCLOSURE BOARD
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Lady Slipper Room
Ground Level, Centennial Office Building
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Meeting was called to order by Chair Fluegel.
MINUTES (June 15, 2004)
Mr.
Milbert’s MOTION: To approve the June 15,
2004, minutes as drafted.
Vote on MOTION: Unanimously
passed by five members (Bettermann absent).
Next meeting is scheduled for Friday, August 27,
2004, in room G-31 of the Judicial Building.
Ms. Olson submitted the following written report:
·
Staff Activities
Staff prepared and delivered packets to the Secretary of State’s Office
and the 16 counties that have at least one legislative district entirely in the
county for candidates who filed for House of Representative or Judicial Offices
July 6th through the 20th.
On July 14th Ms. Olson met with Representatives Haas,
Rhodes, and Goodwin as well as representatives from the Department of Revenue
(DOR) and legislative staff to discuss the electronic filing of Political Contribution
Refund applications. The
representatives and caucus staff urged DOR to implement a dual system so that
contributors without Internet access could still apply for the refund by mail. On July 23rd Ms. Swanson and Ms.
Olson will meet with DOR staff to develop a single form to replace the
political contribution receipt form and the refund application form. A law change will be required for any
changes to forms or the application process.
The legislators would like the new system to be in place for
contributions made in 2005.
Training classes for compliance, reporting, and software use are
scheduled throughout the summer in various locations around the state to help
clients meet the requirements of Chapter 10A.
·
Personnel
Ms. Olson introduced Carly Homuth.
Ms. Homuth, a senior at Hamline University, began work as a Student
Worker on July 7th to assist staff with increased administrative
activities during the election year.
·
Miscellaneous
The Board’s Website Redesign and Development of Fees projects with the
Management Analysis Division of the Department of Administration are featured
on the Division’s website.
·
Delinquent
Lobbyists and Principal Fees due August 1, 2003
Board staff recommends that it is not fiscally responsible to continue
to use state resources to recover the fees from the following:
James M. Neilson,
lobbyist, Minnesota State Bar Association – Mr. Neilson terminated his lobbyist
registration on March 31, 2003, prior to enactment of the fee legislation.
Concerned River Valley Citizens, Inc., lobbyist principal - Lobbyist Carol Overland terminated her
registration in May, 2003, effective December 22, 2002. Ms. Overland reported about $1,600 in
expenditures for 2002. The association
probably did not meet the definition of principal.
Escort Service, Inc.,
lobbyist principal - Lobbyist Ray Bohn terminated his registration as of
December 31, 2002. No lobbying
disbursements were made, however Mr. Bohn was paid over $500.
Student Legislative Coalition at the U of M - SLC, lobbyist principal – Lobbyist David Boyd
terminated in November, 2002. The
lobbyist reported $10 in expenditures for 2002. Generally, student lobbyists are not paid.
Ms. Ashmore’s MOTION: To direct staff to cease attempts to collect the lobbyist
and lobbyist principal fees due August 1, 2003, from James M. Neilson,
Concerned River Valley Citizens, Inc, Escort Service, Inc, and Student
Legislative Coalition at the U of M - SLC.
Vote on MOTION: Unanimously
passed by five members (Bettermann absent).
Enforcement Report
Board Action: Authorization for referral to the Office of
the Attorney General for failure to file the Lobbyist Disbursement Report due
June 15, 2004, and imposition of a civil penalty of $100 per week to a maximum
of $1,000. Two certified letters have
been sent to each lobbyist and staff attempted to contact each lobbyist by
telephone. A late filing fee of $5 per
day began to accrue on July 6, 2004, and civil penalties will begin to be
assessed on a weekly basis on August 2, 2004.
Staff will refer nonfiling individuals on August 2, 2004.
Winston W. Borden, 180 Degrees
Alpha Human Services, Inc
Minnesota School
Counselors Association
Westfield
Concession Management, Inc.
C. Scott Cooper, OutFront Minnesota
Carl W. Ebert, Apple Tree Dental
Ray Egan, Minnesota Motorcycle Riders
Association
Jim Farrell, Minnesota Licensed Beverage
Association, Inc.
Carla Ferrucci, Minnesota Coalition Against Sexual Assault
Terence Glommer-McClosky, Special Transportation Services Association
Sharon Hahn, Associated Contract loggers and Truckers
of
Minnesota, Inc.
Ed McGaa, Caesars Entertainment, Inc
David
Nitti,
United Teachers of South Washington County
David Salene, Lake County Housing and
Redevelopment Authority
Kristina
Seppala,
Citizens for Local Phone Choice
Burl
Simmons,
Taking A Stand Kollectively – TASK
Pam Weaver, Builders Association of
Minnesota
Angela Wozniak, Edelman
Minnesota Entertainment
Development
Corporation
Safe Place for Newborns
Ms. Boyd’s MOTION: To authorize the
actions specified in the consent matters.
Vote on MOTION: Unanimously passed by five members (Bettermann absent).
Waiver Requests for Late Filing Fees and Civil Penalties
·
Lobbyist
Principal fee due March
15, 2004
John Apitz, Motorola, $100 late filing fee, $400 civil penalty - The principal fee
due March 15, 2004, was paid in the Board office on May 10, 2004. Mr. Apitz stated that there was confusion
over who would pay the principal fee, and that miscommunication between
Motorola and its local legislative counsel resulted in failure to timely remit
payment.
Mr.
Fluegel’s MOTION: To deny Mr. Apitz’s request to waive the $100 late
filing fee and to reduce the civil penalty to $100.
Vote on MOTION: Yes:
5, Ashmore, Bettermann, Fluegel, Milbert, Miller
No: 1, Boyd
Motion passed.
Andrew Bopp, Society of Glass and Ceramic Decorators,
$100 late filing fee, $800 civil penalty - The principal fee due March 15,
2004, was received in the Board office on June 25, 2004. In his waiver request Mr. Bopp stated “we
are a very small organization, and we have not conducted any lobbying efforts
in Minnesota for at least four years.”
The association’s lobbyist recently terminated his registration with the
Board.
Mr. Fluegel’s MOTION: To approve Mr. Bopp’s request to waive the $100 late
filing fee and the $800 civil penalty for the Society of Glass and Ceramic
Decorators due to the circumstances described in Mr. Bopp’s letter.
Vote on MOTION: Unanimously passed.
·
Annual
Report of Lobbyist Principal due March 15, 2004
Timothy McQueen, Virginia Firefighters IAFF Local 390, $100
late filing fee, $900 civil penalty - The Annual Report of Lobbyist Principal
due March 15, 2004, was received in the Board office on July 1, 2004. In his waiver request, Mr. McQueen stated
that because he had paid the association’s fee and terminated the association’s
lobbyist registration he believed his obligations to the Board had been
met.
Mr. Milbert’s MOTION: To deny Mr. McQueen’s request to
waive the $100 late filing fee and to reduce
the civil penalty to $100.
Vote on MOTION: Unanimously
passed.
James Johnson, Xcel Energy, on behalf of TRANSLink Development
Co., $1,000 civil penalty - The Annual Report of Lobbyist Principal due March
15, 2004, was received in the Board office on July 7, 2004. Mr. Johnson stated “the failure to file the
2003 Annual Report was unintentional, and the result of the very rapid
termination of all TRANSLink Development activities.” The two lobbyists registered for TRANSLink Development Co.
terminated their registrations in October 2003. Mr. Johnson submitted a check for the $100 late filing fee and
requested that the Board waive the $1,000 civil penalty. The association disclosed making $100,000 in
lobbying expenditures on the 2003 report.
No motion was made.
·
Annual
Report of Lobbyist Principal and Lobbyist Principal Fee due March 15, 2004
Living Benefits Financial Services, Paul Moe, $50 principal fee, $100 late
filing fee, $1,000 civil penalty - The Annual Report of Lobbyist Principal due
March 15, 2004, was received in the Board office on July 6, 2004. In his waiver request Mr. Moe stated that
the three lobbyists who registered, and subsequently terminated, for Living
Benefits Financial Services during 2003 did so erroneously. Mr. Moe indicated that the company has no
assets.
Ms. Ashmore’s MOTION: To approve Mr. Moe’s request to waive the $100 late
filing fee, the $1,000 civil penalty, and the $50 lobbyist principal fee for
the Living Benefits Financial Services due to the circumstances described in
Mr. Moe’s letter.
Vote on MOTION: Unanimously passed.
Mr. Milbert’s MOTION: To
direct staff to determine if an association meets the definition of lobbyist
principal prior to beginning enforcement procedures.
Vote on MOTION: Unanimously passed.
·
Report of
Receipts and Expenditures due February 2, 2004
Brian Biele, Elect Brian T. Biele Committee, $100 late
filing fee, $1,000 civil penalty - The
Report of Receipts and Expenditures due February 2, 2004, was received
in the Board office on July 7, 2004.
Mr. Biele submitted two waiver requests. One request stated that the report was not timely filed due to
personal and professional difficulties.
The second request stated that the committee intends on terminating its
registration with the Board in the near future. All the committee’s previous reports were timely filed.
Brian Biele, Working Families Coalition, $100 late
filing fee, $1,000 civil penalty - The committee’s Report of Receipts and
Expenditures due February 2, 2004, was received in the Board office on July 7,
2004. Mr. Biele submitted two waiver
requests. One request stated that the
report was not timely filed due to personal and professional difficulties. The second request stated that the committee
intends on terminating its registration with the Board in the near future.
Ms. Boyd’s MOTION: To deny Mr. Biele’s request to waive
the $100 late filing fees for the Elect Brian T. Biele Committee and the
Working Families Coalition and to reduce the $1,000 civil penalties for the
Elect Brian T. Biele Committee and the Working Families Coalition to $100 each.
Vote on MOTION: Unanimously
passed.
Chad Hobot, Friends of Chad Hobot, $100 late filing
fee, $1,000 civil penalty - In his waiver request, Mr. Hobot stated that the
committee had no receipts in 2003 and that the committee’s only disbursements
were for bank charges. Mr. Hobot stated
that he would like to terminate his committee, but cannot because he has an
unpaid debt to a vendor that is less than 6 years old.
Ms. Ashmore’s MOTION: To
deny Mr. Hobot’s request to waive the $100 late filing fee and to reduce the
civil penalty to $100.
Vote on MOTION: Unanimously
passed.
Colleen Colburn, Minnesota Chiropractic Political Action
Committee, $100 late filing fee, $500 civil penalty - The Report of Receipts
and Expenditures due February 2, 2004, was received in the Board office on
April 28, 2004. In her waiver request
Ms. Colburn stated that report was not timely filed because their computer
network was attacked by a computer virus that required the committee to work
with Board staff to recover lost data.
Mr. Milbert’s MOTION: To deny Ms. Colburn’s request to
waive the $100 late filing fee and to waive the $1,000 civil penalty.
Vote on MOTION: Unanimously
passed.
Request for an extension to amend the Report of Receipts and
Expenditures for calendar year 2003 (see May 26th minutes)
Ray Sandborgh, Anita
(Sandborgh) For You - At its meeting on May 26, 2004, the Board approved Mr.
Sandborgh’s request for an extension until June 17, 2004, to amend his Report
of Receipts and Expenditures for calendar year 2003. On July 15, 2004, Mr. Sandborgh visited the Board’s office with
committee records and requested a further extension to amend until July 29,
2004. Mr. Sandborgh has a discrepancy
with his bank balance that dates back to 2002 that he is attempting to resolve.
Mr. Milbert’s MOTION: To approve
Mr. Sandborgh’s request and extend the deadline for filing the amendment for
the Anita (Sandborgh) For You committee to July 29, 2004.
Vote on MOTION: Unanimously
passed.
Payment of late filing fees
·
Annual
Report of Lobbyist Principal due March 15, 2004
Lyndale West Partners: $100
TRANSLink Development, Inc.: $100
·
Principal Fee due March 15, 2004
Lyndale West Partners: $100
·
Original Statement of Economic Interest
·
Lobbyist
Disbursement Report due January 15, 1997
Mark Nygaard: $100
·
Lobbyist
Disbursement Report due June 15, 2004
Gary Laidig, Ramsey County Sheriff’s
Office: $15
Kingsley Wilson, Allied Charities of Minnesota: $10
·
Report of
Receipts and Expenditures due February 2, 2004
Elizabeth Wielinski, 59th Senate
District DFL: $100
Payment of civil penalty
·
Report of
Receipts and Expenditures due February 2, 2004
Elizabeth Wielinski, 59th Senate
District DFL: $100
Payment of service of process fee
Mark Nygaard: $25
Conciliation Agreements
Ellen Anderson,
Ellen Anderson for Senate Volunteer Committee, $100 - During calendar year
2003, the Ellen Anderson for Senate Volunteer Committee accepted cumulatively
excessive contributions from a political committee totaling $200. The total amount of these contributions
facially exceeded by $100 the applicable non-election year limit for
contributions from political committees.
Senator Anderson returned $100 to the contributor, entered into a
conciliation agreement on June 23, 2004, and paid a civil fine of $100.
Jerry Dempsey,
Volunteers for Jerry Dempsey, $400 - During calendar year 2003, the Volunteers
for Jerry Dempsey committee accepted a $400 contribution from a couple, which
facially exceeded by $200, the applicable non-election year limit from two
individuals. Representative Dempsey
returned $200 to the contributors, entered into a conciliation agreement on
June 23, 2004, and paid a civil fine of $400.
Dan Dorman,
Volunteers for Dan Dorman, $100 - During calendar year 2003, the Volunteers for
Dan Dorman committee accepted a $250 from a couple, which facially exceeded by
$50, the applicable non-election year limit from two individuals. Representative Dorman returned $50 to the
contributors, entered into a conciliation agreement on June 23, 2004, and paid
a civil fine of $100.
Bill Kuisle,
Committee to Elect Bill Kuisle, $100 - During calendar year 2003, the Committee
to Elect Bill Kuisle accepted cumulatively excessive contributions totaling
$200 from a political committee. The total amount of these contributions
facially exceeded by $100 the applicable non-election year limit for
contributions from political committees.
Representative Kuisle returned $100 to the contributor, entered into a
conciliation agreement on June 23, 2004, and paid a civil fine of $100.
Julie Rosen, Julie
Rosen for State Senate, $800 - During calendar year 2003, the Julie Rosen for
State Senate committee accepted six facially excessive contributions totaling
$1,000 from individuals. The total amount
of these contributions facially exceeded by $400 the applicable non-election
year limit from individuals. Senator
Rosen returned $400 to contributors, entered into a conciliation agreement on
July 7, 2004, and paid a civil fine of $800.
Steven Murphy,
(Steven) Murphy for Senate, $300 - During calendar year 2003, the Murphy for
Senate committee accepted two facially excessive contributions, one from an
individual and one from a political committee, totaling $350. The total amount of these contributions
facially exceeded by $150 the applicable non-election year contribution limit
from individuals and political committees.
Senator Murphy returned $300 to contributors, entered into a
conciliation agreement on July 7, 2004, and paid a civil fine of $300.
Steven Murphy,
(Steven) Murphy for Senate, $44.04 - During calendar year 2003, the Murphy for
Senate committee accepted contributions from political party units, totaling
$1,044.04. The total amount of these
contributions exceeded by $44.04 the applicable non-election year limit for
aggregate party unit contributions.
Senator Murphy returned $44.04 to contributors, entered into a
conciliation agreement on July 7, 2004, and paid a civil fine of $44.04.
Steven Strachan,
Steven Strachan Volunteer Committee, $50 - During calendar year 2003, the
Steven Strachan Volunteer Committee, accepted contributions from an individual
totaling $150. The total amount of
these contributions cumulatively exceeded by $50 the applicable $100
non-election year limit from individuals.
Because the contributor is now deceased, Representative Strachan
returned the contribution to the State Elections Fund, entered into a
conciliation agreement on June 22, 2004, and paid a civil fine of $50.
Kelly Guncheon, Minnesota Funeral Services PAC, $400 -
During calendar year 2003, the Minnesota Funeral Services PAC made four
cumulatively excessive contributions to four legislative candidates. Each contribution exceeded by $100 the
applicable $100 non-election year limit for political committee contributions
to a legislative candidate. Mr.
Guncheon entered into a conciliation agreement on June 15, 2004, provided the
Board with copies of the checks from the four legislative candidates returning
the contributions to the committee, and paid a civil fine of $400.
Financial statement and agency deposits - Mr. Sigurdson submitted a report covering July 1, 2003, through
June 30, 2004.
Advisory Opinion Request #359 – Registration and Reporting
Requirements for Political Committees and Political Funds
Board members reviewed a
draft opinion.
Mr. Miller’s MOTION: To
approve advisory opinion #359 as drafted.
Vote on MOTION: Unanimously passed.
SUMMARY: ADVISORY OPINION
#359 signed by Chair Wil Fluegel, July 22, 2004: An association that endorses candidates is conducting an activity to
influence the nomination or election of one or more candidates. The association must register as a political
committee or political fund if it raises or spends more than $100 on the
endorsement process.
Advisory Opinion Request #360 – Use of party
unit web site to collect contributions for specific candidates.
Board members reviewed a letter from the Chair of a major political
party unit (Party Unit), registered with the Campaign Finance and Public
Disclosure Board (Board) who asked if the Party Unit provides a method for
donors to contribute a certain amount to candidates or the Party Unit on a
weekly or monthly basis on their website: 1) may the Party Unit issue Political
Contribution Receipts for the aggregate amount of those contributions to the
Party Unit; 2) is there a specific time frame in which contributions received
over the Internet must be transferred from the Party Unit’s PayPal/credit card
account to the Party Unit’s bank account; and 3) may the Party Unit collect and
forward on-line donations to candidates as described in the facts of the
advisory opinion request.
Board members reviewed and made certain language
changes to a draft opinion.
Mr. Mibert’s MOTION: To
approve advisory opinion #360 as amended in discussion.
Vote on MOTION: Unanimously passed.
SUMMARY: ADVISORY OPINION #360 signed by Chair Wil
Fluegel, July 22, 2004: Political
party units may provide donors with a Political Contribution Refund receipt for
the aggregate amount of contributions received. Political party units may have more than one depository for
receiving funds. Political party units
may provide candidates with a web page and administrative overhead needed for a
candidate to receive Internet contributions directly into the candidate’s
principal campaign committee’s account.
Advisory Opinion Request #361 - Membership in a Group as an Exception
to the Gift Prohibition
Board members reviewed a letter from
John A. Knapp, an attorney representing a corporation that employs
lobbyists who are registered with the Campaign Finance and Public Disclosure
Board who asked if the corporation, as a lobbyist principal, may provide a gift
at an event to officials under the exception for members of a group.
Board members reviewed a draft opinion.
Mr. Milbert’s MOTION: To approve advisory opinion #361 as
drafted.
Vote on MOTION: Unanimously passed.
SUMMARY: ADVISORY OPINION #361 signed by Chair Wil
Fluegel, July 22, 2004: A lobbyist principal may partially fund an
event at which a gift is provided to officials if the officials are members of
a group, the majority of the members of the group are not officials, and an
equivalent gift is given to all members of the group.
Board members reviewed the legal counsel report
provided by Counsel Huwe outlining the status of cases that have been turned
over to the Attorney General’s office (see copy of memo attached.)
Board members and staff discussed a matter previously
considered in executive session. The
Board directed staff to contact the client and to resolve the issue.
Meeting
adjourned.
Jeanne Olson
Executive Director
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