Meeting was called to order by Chair Fluegel

Members present: Chase, Fluegel, Kelley, Pauly

Others present: Olson, Sigurdson, Swanson, Klingner, staff; Huwe, counsel

Mr. Roggenbauer informed Board staff that he would be unable to attend the meeting.

MINUTES (October 17, 2000)

Ms. Pauly’s MOTION: To approve the October 17, 2000, minutes as drafted.

Vote on MOTION: Unanimously passed.

Next meeting is scheduled for January 9, 2001, in room G-31 of the Judicial Building.

Ms. Olson submitted the following written report:

October 19 – Ms. Olson spoke to a group of Governor Ventura’s appointees. They discussed the requirements and provisions of Chapter 10A as they relate to appointees who are public officials or local officials in Metropolitan Governmental Units.

October 24 – Mr. Sigurdson and Ms. Olson met with Laura Sether from Minnesota Planning to discuss on-line disclosure of campaign contributions and the Governor’s 2001 campaign finance and public subsidy initiatives.

October 25 – Counsel Huwe, a representative from Shared Resource Management (SRM), a representative from the Department of Administration, Materials Management Division, and Ms. Olson signed the contract for programming services for Finance 02. Work on the project began early in November and will continue until May.

Ms. Olson met with Beth Fraser from the Minnesota Alliance for Progressive Action (MAPA). MAPA is working with Senator Hottinger on a ‘clean money’ bill for introduction during the 2001 legislative session.

November 27 - Staff processed the post general election public subsidy payments to 385 candidates.

Effective December 6 - Ms. Olson’s term on the Council of Governmental Ethics Laws Steering Committee ended. She will remain on the Past-President’s Advisory Board for four years.

Ms. Swanson reviewed the performance of Joyce Larson. Ms. Larson’s performance is satisfactory. Under the terms of the AFSCME contract Ms. Larson will receive a step increase.

Upon advice from Chair Fluegel and Ms. Chase, staff will not replace Tom Thao, Information Systems Specialist II, at this time. Other staff members are resetting priorities to ensure that the ongoing needs of Board staff and the public are met during the time we are not fully staffed. The Board’s budget request for 2001 includes a funding increase that will enable the Board to again have nine full time staff members.

Patty Klingner is expecting a baby and plans to take leave without pay from June until sometime in the fall.

Ms. Olson received a memo from the Office of the Attorney General outlining the appropriateness of making per diem payments to public employees who sit on state Boards and Commissions. The Board currently has no public employees among its members.

Ms. Klingner presented the following enforcement matters for Board action:

Board Action: Authorization of a certified letter for the late filing fee, which accrued because of the late filing of the Pre-primary Report of Receipts and Expenditures due August 28, 2000, and subsequent legal enforcement action if the fee is not paid. A reminder notice was sent to the treasurer and staff attempted to contact him by telephone.

Thomas Meyer, treasurer, St. Paul Supervisor’s Organization Political Fund: $500

Board Action: Authorization of a certified letter to compel the filing of an amendment to a Registration and Statement of Organization and subsequent legal enforcement action if the amendment is not filed. A reminder notice was sent and staff attempted to contact him by telephone.

Craig Stone, candidate, Friends of (Craig) Stone

Board Action: Authorization of a certified letter to compel the filing of the Pre-general Report of Receipts and Expenditures due October 30, 2000, collection of the $500 late filing fees, and subsequent legal enforcement action if the reports are not filed. A reminder notice was sent to each candidate and/or treasurer and staff attempted to contact each individual by telephone.

Sean Constantini, treasurer, (Dennis) Grubich for Representative

Herminia Cardenas, treasurer, Neighbors for (Carlos) Mariani Committee

Michelle West, treasurer, 59^th Senate District DFL

Claremont Anderson, treasurer, Grant County DFL

Joseph Olson, treasurer, Gun Owners Political Action Committee

Board Action: Authorization of a certified letter for late filing fees, which accrued because of the late filing of the Pre-general Report of Receipts and Expenditures due October 30, 2000, and subsequent legal enforcement action if the fees are not paid. A reminder notice was sent to each candidate and/or treasurer and staff attempted to contact each individual by telephone.

Duane Timo, treasurer, Friends of Larry Lownie: $50

Chris Berg, treasurer, 4th Congressional District Labor Federation: $50

Jennifer Paulson, treasurer, Brooklyn Center DFL: $50

Joleen Schaefer, treasurer, Nicollet County DFL: $50

Bill Bullock, treasurer, Richfield Republicans: $150

Donna Hogan, treasurer, AFSCME Council 14 PEOPLE Fund: $50

Jennifer O’Rourke, treasurer, Minnesotans for a Democratic Majority: $50

Board Action: Authorization of a certified letter to compel the filing of an amendment to the Pre-general Report of Receipts and Expenditures due October 30, 2000, and subsequent legal enforcement action if the amended report is not filed. A reminder notice was sent to the treasurer and candidate and staff attempted to contact them by telephone.

Barbara Stevens, treasurer, Campaign for Vince Stevens

Ms. Chase‘s MOTION: To authorize the actions specified in the consent matters.

Vote on MOTION: Unanimously passed.

Vote on MOTION: Unanimously passed.

Chair Fluegel’s MOTION: To approve Mr. Hansen’s request to waive the $200 late filing fee due to extenuating circumstances.

Vote on MOTION: Unanimously passed.

Robert Ellingson, treasurer, 43^rd Senate District DFL, $50 - The Report of Receipts and Expenditures covering the period January 1 through October 23, 2000, was received in the Board office on November 3, 2000.

Chair Fluegel welcomed Mr. Ellingson to the meeting.

Mr. Ellingson explained that he volunteered to be the treasurer for the 43^rd Senate District DFL this year but that he has no authority to withdraw funds from the committee’s checking account. He states that this is an inactive committee with approximately $95 in the account and he requests the late filing fee be waived. Board members suggested that if the committee is inactive, Mr. Ellingson might want to terminate the committee.

Mr. Kelley’s MOTION: To reduce the $50 late filing fee for the 43^rd Senate District DFL to $25.

Vote on MOTION: Unanimously passed.

Roald Haugan, treasurer, Redwood County RPM, $50 - The Report of Receipts and Expenditures covering the period January 1 through October 23, 2000, was received in the Board office on November 3, 2000.

Ms. Pauly’s MOTION: To approve Mr. Haugan’s request to waive the $50 late filing fee due to extenuating circumstances.

Vote on MOTION: Unanimously passed.

Fran Voerding, treasurer, St. Paul DFL, $500 - The Report of Receipts and Expenditures covering the period January 1 through October 23, 2000, was received in the Board office on November 22, 2000.

Mr. Kelley’s MOTION: To approve Ms. Voerding’s request to waive the $500 late filing fee due to extenuating circumstances.

Vote on MOTION: Unanimously passed.

Marjorie Ebensteiner, treasurer, St. Paul Ward 6 DFL, $300 - The Report of Receipts and Expenditures covering the period January 1 through October 23, 2000, was received in the Board office on November 13, 2000.

Chair Fluegel’s MOTION: To reduce the $300 late filing fee for the St. Paul Ward 6 DFL to $150.

Vote on MOTION: Unanimously passed.

Linda Lemmer, treasurer, Wadena County DFL, $300 - The Report of Receipts and Expenditures covering the period January 1 through October 23, 2000, was received in the Board office on November 13, 2000. No motion was made.

Stephen Baker, treasurer, Metropolitan Good Government Council, $350 - The Report of Receipts and Expenditures covering the period January 1 through October 23, 2000, was received in the Board office on November 14, 2000. No motion was made.

Warren Nelson, treasurer, Minnesota Committee to Preserve the Rule of Law, $400 - The Report of Receipts and Expenditures covering the period January 1 through October 23, 2000, was received in the Board office on November 15, 2000. Mr. Nelson paid $67.65 of the late fee and requests that the remaining $332.35 be waived as the committee has a $0 bank balance and has terminated its registration with the Board. No motion was made.

Daniel Smith, treasurer, Minnesota Organization for Vocational Education, $50 - The Report of Receipts and Expenditures covering the period January 1 through October 23, 2000, was received in the Board office on November 3, 2000. No motion was made.

Harold Anderson, treasurer, Tenth Ward & Rural Ramsey DFL Donut Booth, $500 - The Report of Receipts and Expenditures covering the period January 1 through October 23, 2000, was received in the Board office on December 8, 2000.

Ms. Pauly’s MOTION: To approve Mr. Anderson’s request to waive the $500 late filing fee due to extenuating circumstances.

Vote on MOTION: Unanimously passed.

Report of Large Pre-election Contribution or Loan

JoAnn Schoen, treasurer, Frederickson (Mark) for Minnesota House, $500 - The Report of Large Pre-election Contribution or Loan report was received in the Board office on November 27, 2000.

Ms. Pauly’s MOTION: To approve Ms. Schoen’s request to waive the $500 late filing fee due to extenuating circumstances.

Vote on MOTION: Unanimously passed.

Gerry Machowicz, candidate, Gerry Machowicz Volunteer Committee - On the Pre-primary Report of Receipts and Expenditures, Ms. Machowicz reported two campaign expenditures totaling $684.99 for clothing. In response to a staff inquiry, Ms. Machowicz states that due to an illness she lost considerable weight, that she is retired and has a lifestyle that requires a minimum wardrobe. Ms. Machowicz further stated that she felt she needed to purchase new clothes and shoes for her candidacy.

Ms. Chase’s MOTION: To direct staff to send Ms. Machowicz a letter stating that: 1) the Board will take no further action because this matter is outside the jurisdiction of Minn. Stat. 10A; 2) she could be in violation of Minn. Stat. 211B; 3) if she is in violation of Minn. Stat. 211B, she could be subject to criminal penalties; and 4) a copy of Minn. Stat. 211B be included with the letter.

Vote on MOTION: Unanimously passed.

Robert Vanasek, Field Director, David Minge for Congress Committee – On November 3, 2000, staff received a notarized statement from Robert Vanasek stating that an independent expenditure was made by the David Minge for Congress Committee ("committee") on behalf of the (John) Skoog Campaign Committee. The expenditure urged people to vote for Mr. Skoog in the November 7^th general election. The cost of the expenditure was approximately $135. The committee did not file a Report of Receipts and Expenditures as required under Minn. Stat. §10A.20.

Board members agreed to accept Mr. Vanasek’s statement in lieu of a Report of Receipts and Expenditures. The Board noted that the David Minge for Congress Committee files a report with the Federal Election’s Commission and that the report is available to the public.

Kim Upsher, treasurer, 58^th Senate District DFL – On the Report of Receipts and Expenditures covering calendar year 1999, the 58^th Senate District DFL disclosed an ending cash balance of $4,228.92. The Pre-primary Report of Receipts and Expenditures covering the period January 1 through August 21, 2000, disclosed a beginning cash balance of $3,597.83. By letter dated October 17, 2000, Ms. Upsher requested more time to further investigate the discrepancy. By letter dated November 2, 2000, Ms. Upsher states that she went back through the previous treasurer’s records, as requested by staff, and got as far as 1997. She believes that in some cases revenue was counted twice and expenses were doubled. Ms. Upsher requests that the Board accept the beginning cash balance of $3,597.83.

Board members directed staff to contact and work with the previous treasurer to find the discrepancy.

Julie Howell, lobbyist, Minnesota Youth Soccer Association: $100

Richard Nelson, lobbyist, Northwest Airlines Inc: $100

David Strom, lobbyist, Taxpayers League of Minnesota: $100

Sandra Hunz, candidate, People for (Sandra) Hunz: $100

Carlos Mariani, candidate, Neighbors for (Carlos) Mariani Committee: $50

Thomas Weisbecker, candidate, Weisbecker (Thomas) for House Seat 38A: $500

Robert Butterbrodt, treasurer, 64A House District RPM: $50

Ana Micka, treasurer, 67^th Senate District DFL: $50

Merle Pettersen, treasurer, Hennepin County DFL: $10 (owes $80)

Cynthia Jaksa, treasurer, Koochiching County DFL: $50

Nyle Zikmund, treasurer, Volunteer Fire Fighter Political Committee: $50

Barbara Winfield, candidate, People for (Barbara) Winfield: $50

During a routine reconciliation of contributions reported as received by principal campaign committees and political party units in 1999 and the Minnesota Department of Revenue’s report of political contribution refunds made for 1999, staff found discrepancies regarding contributions received by three political parties and four principal campaign committees. Five of these discrepancies have been resolved. Two discrepancies are pending.

Financial statement and agency deposits - Mr. Sigurdson submitted reports covering July 1, through October 31, 2000.

Council on Governmental Ethics Laws (COGEL) Conference (see August 8, September 21, and October 17, minutes) – Ms. Pauly, Mr. Kelley, Ms. Olson, and Mr. Sigurdson attended the conference. The attendees agreed that it was a good conference with timely topics.

The following request and advisory opinion is nonpublic data.

Advisory Opinion Request #324 - Limits for candidates who register a principal campaign committee after a state general election

The Board reviewed a draft response to an advisory opinion request from a potential candidate for the state senate, who asks: (1) if election year contribution limits for an office expire on general election day or if the limits are in place for an entire calendar year; (2) what the aggregate election year contribution limit is for a candidate who registers a principal campaign committee after the state general election; (3) if a principal campaign committee that registers with the Board after the state general election can participate in the Political Contribution Refund (PCR) program; and (4) when an Affidavit of Contributions may be filed with the Board.

Ms. Chase’s MOTION: To approve advisory opinion #324 as drafted.

Vote on MOTION: Unanimously passed.

SUMMARY: ADVISORY OPINION #324 signed by Chair Wil Fluegel, December 12, 2000: A candidate who registers with the Board during an election year for the office the candidate is seeking is entitled to the election year contribution limits for the entire election year. A candidate who signs and files a Public Subsidy Agreement with the Board is entitled to the expenditure limit for that year and the office sought regardless if the candidate’s name appears on the primary or general election ballots. A candidate may issue Political Contribution Refund receipts only for contributions received after the candidate signs and files a Public Subsidy Agreement. An Affidavit of Contributions must be submitted in the year that a candidate appears on the ballot.

Counsel Huwe introduced Wanda Cannon, paralegal in the Office of the Attorney General, who will be working on Board matters. Counsel Huwe presented the legal counsel report outlining the status of cases which have been turned over to the Attorney General’s office (see copy of memo attached).

Failure by the Minnesota DFL State Central Committee to amend the 1998 Report of Receipts and Expenditures (see October 17, minutes)

On October 2, 2000, the Board issued a finding showing that there was probable cause to believe that the Minnesota DFL State Central Committee ("DFL") incorrectly reported some costs associated with the preparation and mailing of certain literature on behalf of Gail Skare as a multi-candidate expenditure and violated Minn. State. §10A.17, subd. 2, when it did not obtain written authorization prior to making expenditures on behalf of the Gail Skare Campaign Committee. The DFL was ordered to amend the 1998 year end Report of Receipts and Expenditures within 10 days of notification of the finding to include the in-kind contributions to the Gail Skare Campaign Committee. To date the DFL has failed to amend the report. Alan Weinblatt, attorney for the DFL, advised staff during a telephone conversation that the DFL does not intend to amend the report.

Chair Fluegel’s MOTION: To direct staff to refer the matter to the Ramsey County Attorney’s office for further legal action.

Vote on MOTION: Unanimously passed.

Meeting adjourned.

Respectfully submitted,

Jeanne Olson

Executive Director

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