STATE OF MINNESOTA

ETHICAL PRACTICES BOARD

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Friday, March 15, 1996

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Robert Whitaker Room, Office of the Legislative Auditor

First Floor South, Centennial Office Building

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MINUTES

Meeting was called to order by Acting Chair Rodriguez.

Members present: Anderson, Carpenter, Owens Hayes, Rodriguez, Wilson.

Others present: Olson, Goldsmith, Swanson, Maloney, staff; Eller, counsel.

Staff was notified that Ms. Pauly is out of town until March 17th.

MINUTES (February 23, 1996)

Ms. Wilson's MOTION: To approve the February 23, 1996, minutes as drafted.

Vote on MOTION: Unanimously passed by four members present (Anderson absent).

CHAIR'S REPORT

Board Appointments/Confirmation Hearings - House committee confirmation hearings for Mr. Anderson, Ms. Carpenter, Ms. Pauly, Ms. Rodriguez, and Ms. Wilson were held Friday, March 8th. The Senate committee has not held a confirmation hearing.

Next Board Meeting - Friday, April 26, 1996.

EXECUTIVE DIRECTOR'S REPORT

Legislative Report - Ms. Olson reported that it appears that the only bill affecting the Board that will pass this session will be to change the Board's name to Board of Campaign Finance and Public Disclosure.

Expenditure Limits - Ms. Olson noted that the expenditures limits for candidates for the 1996 election went up approximately 5%, the new limits are: senate candidates, $45,568, house candidates, $22,784. Staff will send notification of the new spending limits to all registered legislative candidates.

Board Decisions 1995 - Board members reviewed a memo from staff which listed the only Board decision made through December, 1995, that was not included in an advisory opinion (see memo attached).

News Release - Board members reviewed the copy of a news release sent annually alerting Minnesota tax filers about "checkoffs" to state elections campaign fund. Staff asked for the Board's direction in continuing the issuing of this publication. Ms. Carpenter stated that she does not feel it is the Board's role to promote the tax checkoff and the Board should discontinue issuing the news release. The Board did not vote to change the current policy of issuing the news release.

Board Resolution - At its meeting of February 26th, the Board directed staff to draft a resolution for Board consideration concerning the application of Minn. Stat. §10A.071. Board members reviewed and discussed the draft prepared by staff.

Mr. Anderson's MOTION: To approve the resolution as follows:

The Board receives numerous requests for advisory opinions regarding the application of Minn. Stat. §10A.071 and issues opinions consistent with the broad gift prohibition established under the statute. The Board recognizes that the definitions of "gift" and "official" and the limited exceptions to the prohibition do not permit different treatment for gifts given to officials in their official capacities and gifts given in some purely social or other non-official capacity. The absolute language of the statute results in prohibitions which may not have been contemplated by the legislature and which some persons affected by the prohibition consider an unwarranted intrusion into personal, social, and business relationships.

Vote on MOTION: Unanimously passed by four members (Carpenter abstained).

Approved Expenditures - Ms. Olson provided Board members with a copy of a letter the staff sends to committees that make approved expenditures without obtaining written authorization in advance.

Staffing Matters - Ms. Olson reported that Gary Goldsmith, Assistant Executive Director, would be receiving a 3% increase in salary available to him under the newly approved Managerial Contract.

Enforcement Report

Mr. Maloney presented the following enforcement matters for Board action:

Nonfiling of the Report of Receipts and Expenditures, due 1/31/96

This matter is before the Board for the authorization of a third certified letter to be sent on March 21, 1996, for nonfiling of the annual report of receipts and expenditures due 1/31/96. All but 21 of the 1,278 treasurers have filed the annual report of receipts and expenditures. Each treasurer listed below has been sent a compliance letter and two certified notices, including notice that the matter would be referred to the Board at its meeting of March 15, 1996. Staff has attempted telephone contact with each of these treasurers. The following treasurers are due to receive a third certified letter:

Jual Carlson, treasurer, The Committee to Elect (Jual) Carlson Minnesota State Auditor, Shelly Martin, treasurer, (Kevin) Chandler for Senate, Herminia Cardenas, treasurer, Neighbors for (Carlos) Mariani Committee, Paul Tocko, treasurer, Volunteers for (Joe) McCabe, Steve Sorensen, treasurer, (David) Meier Volunteer Committee, Martha Lamas, treasurer, (Bob) O'Connor's Volunteers, David Steinkamp, treasurer, (Clayton) Robinson for Judge Volunteer Committee, Grant Lebens, treasurer, (Patrick) Rosenstiel, for Legislature Committee, Laura Spillane, treasurer, (Mike) Spillane Volunteer Committee, Jeanette Smith, treasurer, Committee to Elect (Bonnie) Walters, Shelly Cash, treasurer, 2nd Congressional District RPM, Jeanette M. Smith, treasurer, 19th Senate District DFL, David Schaaf, treasurer, 56A House District DFL, Greg Dolce, treasurer, 61st Senate District RPM, Margaret Erickson, treasurer, Kandiyohi County RPM, Jerry Beedle, treasurer, Labor Solidarity Committee, James Bernstein, treasurer, Metropolitan Good Government Coalition, J. Marie Smith, treasurer, Minnesota NOW PAC, Jeri Rasmussen, treasurer, Minnesota Voters for Choice, Dale Ubelhoer, treasurer, and Paul Revere PAC, Harold Anderson, treasurer, Tenth Ward & Rural Ramsey DFL Donut Booth.

Ms. Wilson's MOTION: Move to send Third Official Notice of Delinquency to Mr. Carlson, Ms. Martin, Ms. Cardenas, Mr. Tocko, Mr. Sorensen, Ms. Lamas, Mr. Steinkamp, Mr. Lebens, Ms. Spillane, Ms. Smith, Ms. Cash, Ms. Smith, Mr. Schaaf, Mr. Dolce, Ms. Erickson, Mr. Beedle, Mr. Bernstein, Ms. Smith, Ms. Rasmussen, Mr. Ubelhoer, and Mr. Anderson.

Vote on MOTION: Unanimously passed by four members present (Mr. Anderson absent).

Nonfiling of the amended Registration and Statement of Organization

Marilyn Jackson, candidate, Campaign to Elect (Marilyn) Jackson, 1-3006 61A, this matter is before the Board for the authorization of a third certified letter to be sent for nonfiling of an amended registration and statement of organization. The former treasurer has resigned. Staff sent correspondence to the candidate requesting her to have the new treasurer amend the registration and statement of organization showing the new treasurer of this committee and having the treasurer sign the amended registration. Ms. Jackson has been sent two notices, including notice that the matter would be referred to the Board at its meeting of March 15, 1996. Staff called on February 27, 1996, and Ms. Jackson called the Board office on March 1, 1996. Ms. Jackson indicated an amended registration and statement of organization would be sent.

Ms. Owens Hayes' MOTION: Move to send Third Official Notice of Delinquency to Ms. Jackson.

Vote on MOTION: Unanimously passed by four members present (Mr. Anderson absent).

Mr. Maloney presented a report regarding payment of the following late filings fees:

George Gregorich, treasurer, (George) Gregorich Campaign Fund, #1-3213 7A, $250 for the late filing of the Pre-Primary Election Report of Receipts and Expenditures due 9/6/94. Monthly installments of $25 began October 1, 1995, to date payments totaling $150.55 have been paid.

Ciannat M. Howett, (City of Moorhead), $65; Mark Mallander, (Association of Metropolitan School Districts), $10; and Lawrence Moloney, (Western Fuels Association Incorporated), $15; all late filing fees for the late filing of the Lobbyist Disbursement Report due 1/16/96.

All payments have been deposited in the general fund of the state under Minn. Stat. §10A.34.

LEGAL COUNSEL'S REPORT

No change since last report.

STANDING COMMITTEE REPORTS

Personnel Subcommittee Report - No report.

Publications and Forms Subcommittee Report - No report.

Legislative Recommendations and Rules Subcommittee Report - The next scheduled committee meeting will be April 12,1996, at 9 a.m. in the Centennial Office Building.

OTHER BUSINESS

Subpoena - Board members reviewed a subpoena in the matter of the investigation of the grand jury of Ramsey County of the Moe Volunteer Committee requesting Ms. Olson's appearance as a witness and copies of all public documents filed on behalf of or by Roger Moe, the Moe Volunteer Committee, the Moe for Governor Committee, and the Senate Majority Caucus from January 1, 1987, to March 5, 1996. Copies of all documents were provided as requested, Ms. Olson did not have to appear.

REPORT FROM EXECUTIVE SESSION

INVESTIGATION OF GOPAC ORIGINALLY COMMENCED AS THE RESULT OF A COMPLAINT BY THE MINNESOTA DEMOCRATIC FARMER LABOR PARTY

The Board found that there was not sufficient evidence to support a finding that probable cause existed to believe that GOPAC had violated the provisions of Minn. Stat. Chapter 10A by failing to register a political committee with the Board in 1990, and that the record of the investigation be brought forward into public record (see findings attached).

ADJOURNMENT

Meeting adjourned.

Respectfully submitted,

Elsa Carpenter, Secretary

(minutes by staff)

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