. . . . . . . . .

Tuesday, February 20, 2001

. . . . . . . . .

Whitaker Conference Room, Office of the Legislative Auditor

First Floor, Centennial Office Building

. . . . . . . . .




Meeting was called to order by Chair Fluegel

Members present:  Chase, Fluegel, Kelley, Pauly, Roggenbauer

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

Mr. Spear informed Board members that he would be unable to attend the meeting.



MINUTES  (January 9, 2001)

Mr. Kelley’s MOTION:            To approve the January 9, 2001, minutes as drafted.

Vote on MOTION:            Unanimously passed.




Board Meeting Schedule

Next meeting is scheduled for March 27, 2001.  Ms. Chase and Ms. Pauly informed Board members that they would be unable to attend the meeting.

Meeting with Legislators


Ms. Olson, Mr. Sigurdson, and Chair Fluegel, met with Senator Cohen and Representative Krinkie separately to discuss the Board’s fiscal year 2001 budget deficiency and the 2002/2003 biennial budget.


Board Confirmation Hearings


The House of Representatives confirmed the appointments of Ms. Chase, Mr. Roggenbauer, Mr. Spear and Chair Fluegel on January 18th.


The Senate Election Laws Committee held confirmation hearings of Ms. Chase, Mr. Roggenbauer, Mr. Spear, and Chair Fluegel, on Friday, February 16th.  The Subcommittee will recommend to the full committee that the appointments be confirmed.  Following approval by the full committee, the appointments will go to the full Senate for floor action.


Legislative Recommendations Committee


Chair Fluegel announced the appointments of Mr. Spear and Ms. Pauly to the Legislative Recommendations Committee.  Chair Fluegel will serve as an ex-officio member.




Ms. Olson submitted the following written report:


Staff Activities


         Finance 2002


            Work on the Finance 2002 project continues.  Staff is in the process of testing the components programmed so far in the development on the new software. 


         Training, Education, Outreach


            Ms. Olson was on the faculty of a Minnesota State Bar Association CLE seminar entitled “The Minnesota Legislative Process”.  Mr. Sigurdson attended as a faculty guest.


            Mr. Sigurdson and Ms. Olson spoke to the freshman Republicans in the House discussing the gift ban, economic interest disclosure, and campaign finance reporting.


            Ms. Olson spoke with about 15 students in Hamline University’s Master’s of Arts in Public Administration program about lobbying and the gift ban.


            Ms. Olson was guest lecturer at a Hamline University Graduate School of Public Administration and Management Legislative Practicum class where she discussed lobbying and the gift ban.


         Legislative activity


            Mr. Sigurdson and Ms. Olson met with Senator Cohen’s fiscal analyst and legislative assistant about the “Clean Money Bill” as introduced by Senator Hottinger.


            Mr. Spear, Mr. Sigurdson, and Ms. Olson testified before with the House Committee on Governmental Operations and Veterans Affairs Policy about the Board and its responsibilities.


            Mr. Sigurdson and Ms. Olson appeared before the Senate Finance Committee and the House State Government Finance Committee to present the Board’s deficiency and biennial budget requests.


         Inter-departmental activity


Mr. Sigurdson, John Nesbitt, and Ms. Olson met with representatives of the Department of Administration’s InterTechnologies Group and a vendor about an evaluation by the vendor of the Board’s electronic security measures.  The vendor will do a Security Impact Analysis of the Board’s systems.  The project will take six to eight weeks.




Staff has begun the process to fill the Information Technology Specialist 2 position.  Applications for the position will be accepted through February 23rd.




An updated version of Chapter 10A, based on Minnesota Statutes, Laws of 2000, was available for Board members. 


Enforcement Report 


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


Consent Items


Board Action:            Authorization of a certified letter to compel the payment of 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 to each candidate and/or treasurer and staff attempted to contact each individual by telephone.


            Herminia Cardenas, treasurer, Neighbors for (Carlos) Mariani Committee:  $500


                        Jason Amundsen, treasurer, 59th Senate district DFL:  $500


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


Vote on MOTION:            Unanimously passed.


Discussion Items


Reconsideration of Waiver Request (see December 12, 2000, and January 9, 2001, minutes)


Stephen Baker, treasurer, Metropolitan Good Government Coalition, $350 – Board members reviewed a letter from Mr. Baker requesting that the Board accept a check for $25 to cover any possible costs occurred by Board staff as final and complete settlement of the matter.  Mr. Baker also enclosed a copy of the committee’s Registration and Statement of Organization filed with Hennepin County and asked that the committee be removed from any further reporting requirements with the Board.  No motion was made.  Staff was directed to return the check to Mr. Baker and refer the matter to the Office of the Attorney General for further legal action.


Waiver Request for the Pre-primary Report of Receipts and Expenditures due August 28, 2000 and the Pre-general Report of Receipts and Expenditures due October 30, 2000


Joseph Olson, interim treasurer, Gun Owners Political Action Committee, $1,000 - The Pre-primary and Pre-general reports were received in the Board office on January 18, 2001.  In a letter to the Board, Mr. Olson, who is also the chair of the committee, requests the waiver based on the fact that he became interim treasurer in November 2000 because the former treasurer failed in his obligation to file the reports.  Mr. Olson would like to terminate the committee, which has a balance of $107.22.  The committee reports disclosed that no transactions took place during the year. 


Ms. Pauly’s MOTION:            To reduce the $1,000 late filing fee for the Gun Owners Political Action Committee to $100 and advise Mr. Olson to terminate the committee registration. 


Vote on MOTION:            Unanimously passed.


Request for acceptance of a change in beginning cash balance (see December 12, 2000, minutes)


Kim Upsher, treasurer, 58th Senate District DFL – As directed by the Board, staff contacted Ms. Upsher and requested that she attempt to resolve the cash balance discrepancy with the help of the former treasurer.   By letter dated February 10th Nancy Beals, former treasurer, stated that little information was available prior to October 1996, when the committee opened a new bank account.  The previous bank account was closed and frozen and the checkbook was never recovered from the treasurer who served prior to Ms. Beals. 


Chair Fluegel welcomed Ms. Upsher and Ms. Beals to the meeting.  Ms. Beals stated that they had nothing new to add to their letter to the Board but were available to answer questions.





Ms. Chase’s MOTION:            To accept the Pre-primary Report of Receipts and Expenditures from the 58th Senate District DFL with a beginning cash balance of $3,597.83.


Vote on MOTION:            Unanimously passed.


Informational Items


Payment of Late Filing Fees


         Report of Receipts and Expenditures due August 28, 2000


Greg Dolce, treasurer, 61st Senate Dist RPM:  $50

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


         Report of Receipts and Expenditures due October 30, 2000


Sheree Breedlove, candidate, Sheree Breedlove Volunteer Committee:  $500

Robert Ellingson, treasurer, 43rd Senate District DFL:  $25

Marjorie Ebensteiner, treasurer, St. Paul Ward 6 DFL:  $150

Linda Lemmer, treasurer, Wadena County DFL:  $50

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


         Original Statement of Economic Interest for Appointed Public Official


Lani Kawamura, member, Perpich Center for Arts Education:  $100


Return of Public Subsidy for calendar year 2000


         Expenditures did not equal public subsidy received


Shawn Bramanti, treasurer, (Todd) Anderson for State Representative Committee:  $492.28


Sharon Coop, treasurer, Gary Coop Campaign Committee:  $2,957.60

Laurie Eibensteiner, candidate, (Laurie) Eibensteiner for State House:  $3,060.77

Pauline Roehl, treasurer, (Dennis) Janssen for Senate Committee:  $128.86

Andrew Lamotte, candidate, Citizens for Andy Lamotte:  $598.04

Bill Lawrence, candidate, Bill Lawrence Senate Volunteer Committee:  $1,372.12

Cheryl Lewis, candidate, (Cheryl) Lewis for State Senate Committee:  $7,947.95

Jeff Scott, candidate, Jeff Scott for Legislature:  $1,131.56

James Tilsen, treasurer, Gary Moore for Representative:  $318.00

Carol Mortenson, treasurer, Phil Mortenson for State Senate:  $10,203.15

Edward Oliver, candidate, (Edward) Oliver for Senate Committee:  $730.80

Greg Korstad, treasurer, Citizens for (Martha) Robertson:  $1,272.19


         Carry Forward


Judy Arzdorf, treasurer, John Dorn Campaign Committee:  $4,573.71

Rick Johnston, treasurer, (Timothy) Pawlenty Volunteer Committee:  $1,126.22


Request for Board direction regarding late filing of the Pre-general Report of Receipts and Expenditures


Phil Moen, chair, Lincoln County DFL, $500 - The Pre-general Report of Receipts and Expenditures due October 30th was received in the Board office on December 7, 2000.  The former treasurer resigned March 8, 2000.  Mr. Moen filed a no change report, disclosing a cash balance of $99.33. 


Counsel Huwe noted that under Minn. Stat. 10A the chair is not responsible for the late filing fee.  Staff was directed to continue efforts to secure an amendment to the committee registration naming a new treasurer. 


Financial statement and agency deposits - Mr. Sigurdson submitted reports covering July 1, through January 31, 2001.  Mr. Sigurdson reported that staff anticipates a budget shortfall for fiscal year 2001 at approximately $34,000.




The following request and advisory opinion are nonpublic data.


Advisory Opinion Request #325 – Potential conflict of interest for legislator


The Board reviewed a draft response to an advisory opinion request from a legislator who asks if the potential conflict of interest provision in Minn. Stat. 10A.07 prevents a public employee from serving in the state legislature.


Board members discussed language changes to the draft opinion.


Ms. Pauly’s MOTION:                     To approve advisory opinion #325 as amended in discussion.


Vote on MOTION:            Unanimously passed.



SUMMARY: ADVISORY OPINION #325 signed by Chair Wil Fluegel, February 20, 2001:

A specific vote, action, or decision by a legislator may create a conflict of interest under Minn. Stat. 10A.07.  The occupation or profession of a legislator does not in itself create a conflict of interest.




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, December 12, 2000, and January 9, 2001, minutes)


A copy of a memo sent by Counsel Huwe to Alan Weinblatt, counsel for Minnesota DFL State Central Committee, requesting an amendment to the Report of Receipts and Expenditures for the period January 1 through December 31, 1998, was available for Board members.   Counsel Huwe reported that in a telephone conversation with Mr. Weinblatt, Mr. Weinblatt stated that the committee would not be filing an amended report.  The Board will seek injunctive relief to force compliance with its order, and will send a finding of probable cause to the Ramsey County Attorney’s Office, 




Meeting adjourned.


Respectfully submitted,




Jeanne Olson

Executive Director









attachment (1)