STATE OF MINNESOTA
ETHICAL PRACTICES BOARD

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Friday, October 25, 1996

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Blazing Star Conference Room
Ground Floor, Centennial Office Building

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MINUTES

Meeting was called to order by Chair Rodriguez.

Members present: Anderson, Owens Hayes, Pauly, Rodriguez.

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

Mr. Slocum and Ms. Wilson previously notified staff that they would be unable to attend the Board meeting.

MINUTES (September 20, 1996)

Mr. Anderson's MOTION: To approve the draft of the September 20, 1996, minutes as amended in discussion.

Vote on MOTION: Unanimously passed.

CHAIR'S REPORT

Board Meeting Schedule - Next Board meeting: Friday, November 22, 1996. The meeting tentatively scheduled for March 28, 1997, is changed to March 21, 1997.

Council on Governmental Ethics Laws (COGEL) Conference ( see August 23rd and September 20th minutes) - Board members reviewed information from the Council on Governmental Ethics Laws (COGEL) about the December conference, a request for input on the site for the 1998 conference, and the timing of future COGEL conferences. Ms. Olson noted that a Proxy form was also included in the information for signature by Chair Rodriguez to enable Mr. Anderson to vote on all matters on her behalf at the conference. The Board agreed by consensus to vote that the 1998 conference be held in Seattle, Washington.

Administrative Procedures Policy - Zero Tolerance of Workplace Violence - The Board reviewed a draft of the Administrative Procedure for Zero Tolerance of Workplace Violence.

Mr. Anderson's MOTION: To approve the Administrative Procedure for Zero Tolerance of Workplace Violence as drafted.

Vote on MOTION: Unanimously passed.

EXECUTIVE DIRECTOR'S REPORT

Determination of local or public official status - Ms. Olson reported that staff had notified 29 metropolitan governmental units (MGU's) of the new Board rule 4501.0400 which requires MGU's to provide a list of the positions within the MGU that constitute a local official. Five MGU's have not replied as of today. Mr. Goldsmith is assisting one MGU with its compliance.

Board publications - The recently codified Minn. Stat. Ch. 10A and Minn. Rules 4500-4525 have been sent to the printer. Copies should be available at the November Board meeting.

Board office rental matters (see May 31st, June 21st, and September 20th minutes) - Renovation plans are progressing.

Staff matters - Donna Labarre, Clerk Typist 1, intermittent and Kelly Hansen, Exec I, received annual performance reviews and step increases in accordance with the AFSCME contract.

Enforcement of limits on loans to principal campaign committees - The Board reviewed a staff memo requesting direction on how to deal with loans made to principal campaign committees in excess of statutory limits according to Minn. Stat. §10A.27, subd. 8.

Mr. Anderson's MOTION: To adopt a Board policy directing staff to: 1) attempt resolution of these matters on an informal basis by contacting the committee; 2) inform the committee of the violation; and 3) determine whether the committee will agree to correct the excess loan condition within a reasonable time. If the committee is unwilling or unable to correct the violation within the prescribed time, the committee should be offered the opportunity to propose a schedule for correcting the violation. Proposals will be presented to the Board for action on a case by case basis. If a committee's proposal is not accepted, the Board could order correction of the violation on terms it finds reasonable.

Ms. Owens Hayes stated the policy should be more provisional giving the committee 60 days in which to correct the violation. Additionally, Ms. Owens Hayes stated that staff should follow up on the violation and the Board should consider the possibility of doing a rule to clarify the matter. Mr. Anderson accepted Ms. Owens Hayes' comments as an amendment to his motion.

Mr. Anderson's AMENDED MOTION: To adopt a Board policy directing staff to: 1) attempt resolution of these matters on an informal basis by contacting the committee; 2) inform the committee of the violation; and 3) determine whether the committee will agree to correct the excess loan condition within 60 days after notification of the violation. If the committee is unwilling or unable to correct the violation within the prescribed time, the committee should be offered the opportunity to propose a schedule for correcting the violation. Proposals will be presented to the Board for action on a case by case basis. If a committee's proposal is not accepted, the Board could order correction of the violation on terms it finds reasonable.

Vote on MOTION: Unanimously passed.

It was agreed that this matter will be reviewed by the Board following the 1997 legislative session.

Enforcement Report

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

Consent Items:

Board Action: Authorization of third certified letter for nonpayment of late filing fees and subsequent legal enforcement action in the event the fee is not paid. To date, the following treasurers have not paid the accrued late filing fees for the Report of Receipts and Expenditures due 9/3/96. Two notices have previously been sent to each client.

Steve Wright, (Connie) Janssen Volunteer Committee, $150

Tim Knoedler, (Tim) Knoedler for MN Senate, $100

Robert E. Hines, 10th Senate District DFL, $500

Andrew F. Brevig, 13th Senate District RPM, $150

Dennis Lehto, 14th Senate District DFL, $50

Thomas Paulson, 50th Senate District DFL, $50

James H. Stock, Stevens County RPM, $200

Ronald P. McLaughlin, Brotherhood of Locomotive Engineers, $250

Benny Thompson, Independent American Party of Minnesota, $150

Michael Stockstead, Minnesota Professional Fire Fighters PAC, $200

Paul M. Egeland, Sierra Club Political Committee, $500

Board Action: Authorization of third certified letter requiring filing of amendment and subsequent legal enforcement action in the event the amendment is not filed. Two notices have previously been sent to the client.

David P. Gerhardt, Isanti County RPM, for failure to amend Report of Receipts and Expenditures due 9/3/96.

Ms. Pauly's MOTION: To authorize the actions specified in the consent matters.

Vote on MOTION: Unanimously passed.

Discussion Items

Waiver Requests - Campaign Finance Program - Report of Receipts and Expenditures due 9/3/96

Harvey Guttmann, treasurer, (Harvey) Guttmann for Senate Committee, 1-2689 33, filed 10/14/96, $500. No motion was made.

Judy Rudnitski, treasurer, (Anthony) Muehlbauer Volunteer Committee, 1-3152 17B, filed 10/9/96, $500. No motion was made.

Mary E. Short, treasurer, (Stan) Narusiewicz Volunteer Committee, 1-3650 56A, filed 9/25/96, $250. No motion was made.

Steven A. Ringsmuth, treasurer, 16th Senate District RPM, 2-0305, filed 9/12/96, $50. No motion was made.

Patricia A. Chapek, treasurer, 27th Senate District DFL, 2-0324, filed 9/16/96, $200. No motion was made.

Lyle Miller, treasurer, 40th Senate District RPM, 2-0556, filed 9/19/96, $350. No motion was made.

Clifton Wasfaret, treasurer, Norman County RPM, 2-0231, $50.

Mr. Anderson's MOTION: To grant Mr. Wasfaret's request to waive the $50 late filing fee due to extenuating circumstances.

Vote on MOTION: Unanimously passed.

Frances J. Voerding, treasurer, St. Paul Ward 4 DFL, 2-0718, filed 9/27/96, $500.

Mr. Anderson's MOTION: To grant Ms. Voerding's request to waive the $500 late filing fee due to extenuating circumstances.

Vote on MOTION: Unanimously passed.

Ardith J. Lussier, treasurer, AFSCME Local 34 PEOPLE, 4-0753, filed 9/16/96, $250.

Ms. Lussier, president, AFSCME Local 34 PEOPLE, requested to appear before the Board to present information about this matter. Chair Rodriguez welcomed Ms. Lussier who informed the Board that the former treasurer resigned on August 21st. Ms. Lussier was unsure whether the by-laws of the committee would allow her as president to complete the Report of Receipts and Expenditures. After checking the bylaws and returning from a convention Ms. Lussier contacted Board staff and with their assistance completed the report.

Ms. Owens Hayes' MOTION: To grant Ms. Lussier's request to waive the $250 late filing fee due to extenuating circumstances.

Ms. Owens Hayes withdrew her MOTION.

Mr. Anderson's MOTION: To reduce the late filing fee from $250 to $125.

Vote on MOTION: Unanimously passed.

Ms. Lussier thanked the Board and departed.

Inez E. Henry, treasurer, Grant County Republican Women, 4-0309, filed 9/20/96, $350.

Mr. Anderson's MOTION: To grant Ms. Henry's request to waive the $350 late filing fee due to extenuating circumstances.

Vote on MOTION: Unanimously passed.

Joseph E. Olson, treasurer, Gun Owners Political Action Committee, 4-0680, filed 10/8/96, $500. No motion was made.

Gregg Gleichert, treasurer, Turkey Political Committee, 4-0692, filed 9/17/96, $250. No motion was made.

James C. Bernstein, treasurer, Metropolitan Good Government Coalition, 4-0594, filed 10/14/96, $500. First waiver request of $250 was granted on October 29, 1992, for the late filing of the Report of Receipts and Expenditures due September 8, 1992. No motion was made.

Proposal for Installment Payments

Gregory J. Dolce, treasurer, Campaign to Elect (Marilyn) Jackson, 1-3006 61A, $500 for the late filing of the Report of Receipts and Expenditures due 9/3/96. The report shows that the committee has a cash balance of $153.82. Mr. Dolce states neither he nor the committee, currently, has the financial ability to pay the lump sum of $500. Mr. Dolce would like to make payments of $50 per month until the $500 late filing fee is paid off. Mr. Dolce made a $50 payment on October 24, 1996.

Jeffrey J. Gubash, treasurer, 66A House District RPM, 2-0469, $500 for the late filing of the Report of Receipts and Expenditures due 9/3/96. The report shows that the committee has a cash balance of $181.70. Mr. Gubash made a $250 payment on October 16, 1996. Mr. Gubash would like to make the remaining $250 payment next month.

Ms. Owens Hayes' MOTION: To accept the payment schedules as proposed by Mr. Dolce and Mr. Gubash for the late filing fees for the Campaign to Elect (Marilyn) Jackson and the 66A House District RPM.

Vote on MOTION: Unanimously passed.

Informational Items

Payment of Civil Penalty

(Arne) Carlson/(Joanne) Benson Volunteer Committee, #1-2300 Gov - The Board investigated in executive session, on August 23, 1996, the committee's acceptance of contributions during 1995, which exceeded the applicable contribution limit. Governor Carlson entered into a conciliation agreement with the Board to remedy the matter. The agreement was signed by the Board Chair on September 10, 1996. On October 1, 1996, the (Arne) Carlson/(Joanne) Benson Volunteer Committee paid a civil fine of $6,214.

The payment of the civil fine have been deposited in the general fund of the state under Minn. Stat. §10A.28.

Conciliation Agreement

(Steven) Murphy for Senate Committee, #1-2667 29 - The Board investigated in executive session on September 20, 1996, the committee's acceptance of a contribution during 1995, which exceeded the applicable contribution limit. The contribution exceeded the statutory limit by $50. Senator Murphy entered into a conciliation agreement with the Board to remedy the matter that was signed by the Board Chair on October 5, 1996. A civil fine of $50 must be paid within 30 days of the date that the agreement was signed by the Board Chair.

Payment of late filing fees

George W. Bateman, treasurer, (George) Bateman for Representative, #1-2493 37B, $552.41 (paid through Chapter 13 bankruptcy $3,285.97 return of public financing remains to be paid for 1990). The Board is on a payment plan, valid until 1997, through the bankruptcy trustee. Partial repayment of the return of public subsidy based on the 9/19/90, Affidavit of Contributions and the 1/31/91, Report of Receipts and Expenditures

Harvey D. Linder, (Psychology Board), $5, for the late filing of the Supplementary Statement of Economic Interest due 4/15/96.

Francis X. Viggiano, (Minnesota State University Student Association), $70, for the late filing of the Lobbyist Disbursement Report due 7/15/96.

Steven C. Anderson, treasurer, (Steve) Anderson for Senate, #1-3630 62, $100; Linda G. Axelrod, treasurer, (Leonard) Axelrod for Senate, #1-3372 38, $50; Harvey Kranzler, treasurer, (Bev) Bales Campaign Committee, #1-3545 10B, $50; Emanuel Davis, treasurer, Volunteers for (Kari) Davis, #1-3582 36, $100; Julie Tierney, treasurer, Committee to Elect (Bob) Dickie District Judge, #1-3654 DC10-1, $50; Jim Bennett, treasurer, Volunteers for (Mel) Eichstadt, #1-3574 27, $50; Scott Schmeling, treasurer, Senator (Dennis) Frederickson Volunteer Committee, #1-1028 23, $150; Reginald N. Birts, treasurer, Friends of (Thomas) Ross, #1-3476 61B, $200; Brian Slowinski, treasurer, (Brian) Slowinski for Senate, #1-3407 27, $150; Steven A. Ringsmuth, treasurer, 16th Senate District RPM, #2-0305, $50; Rodney Weber, treasurer, Lac qui Parle DFL, #2-0168, $50; John Christensen, treasurer, Redwood County DFL, #2-0142, $50; RaNae Nelson, treasurer, Traverse County DFL, #2-0316, $50; Thomas R. Schulz, treasurer, Wadena County DFL, #2-0109, $50; Patrick V. Leinen, treasurer, Wilkin County DFL, #2-0056, $100; Tom Walters, treasurer, AFSCME Council 14 PEOPLE Fund, #3-0210, $150; Patricia A. Moe, treasurer, Best and Flanagan Political Fund, #3-0313, $100; Steven Anderson, treasurer, Citizens Lobby, #4-0707, $100; Greg Shafranski, treasurer, IBEW Local 292 Political Education Fund, #3-0119, $150; Jack Moore, treasurer, Int'l Brotherhood of Electrical Workers - Committee on Education, #3-0331, $200; Donald Potter, treasurer, Local #771 Political Action Committee, #4-0588, $50; Margaret Perryman, treasurer, Minnesota Health PAC, #4-0714, $150; Carol J. Carlson, treasurer, Minnesota State Council of H.E.R.E. Unions, #3-0060, $100; Edmond Hanson, treasurer, Political Education Fund of Local 21, #3-0154, $500; Kyle Nordine, treasurer, SPIRIT Fund, #4-0723, $100; Ronald M. Ryan, treasurer, St. Paul Police Relief Association Political Fund, #3-0075, $150; and Jeanette Marlow, treasurer, Upper Sioux Community Voter Election Fund, #4-0757, $50; all for the late filing of the Report of Receipts and Expenditures due 9/3/96.

Gregory J. Dolce, treasurer, Campaign to Elect (Marilyn) Jackson, #1-3006 61A, $50 and Jeffrey J. Gubash, treasurer, 66A House District RPM, #2-0469, $250, both partial payments of proposed installment payment schedules for the late filing of the Report of Receipts and Expenditures due 9/3/96.

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

Anonymous Contribution

Republican Party of Minnesota, #2-0008, received an anonymous contribution of $50. The committee forwarded the contribution to the Board on October 22, 1996. The $50 has been deposited in the General Account of the State Elections Campaign Fund, under Minn. Stat. §10A.15, subd. 1 and Minn. Rule 4503.0100, subd. 3.

Financial Report and Agency Deposits - Mr. Goldsmith submitted a report covering July through September, 1996.

ADVISORY OPINION REQUESTS

Request for the following advisory opinion is public data.

Advisory Opinion #249 - Application of lobbying statutes to internet worldwide web site advocating association's position on legislative matters.

The Board reviewed a draft response to the advisory opinion request from Andrew Weinraub, representing a client, who asks if the creation of a worldwide web site where the client would advocate its positions on legislative issues would require the registration of a lobbyist with the Ethical Practices Board.

Mr. Anderson's MOTION: To lay over discussion of the matter to the November 22, 1996, meeting.

Vote on MOTION: Unanimously passed.

Request for the following advisory opinion is nonpublic data.

Advisory Opinion #250 - Gift prohibition applied to legislative day activities.

The Board reviewed a draft response to an advisory opinion request from the representative of a professional association, who asks if professional consultation services in connection with a Legislative Day is a gift to legislators or other officials and thereby prohibited under Minn. Stat. § 10A.071?

Ms. Pauly's MOTION: To approve Advisory Opinion #250 drafted.

Vote on MOTION: Unanimously passed.

SUMMARY: ADVISORY OPINION #250 signed by Chair Carolyn Rodriguez, October 25, 1996: Provision of complementary professional services to public officials at the request of a lobbyist principal is prohibited by Minn. Stat. § 10A.071.

LEGAL COUNSEL'S REPORT

Board members reviewed a memo from Counsel Gretz outlining the status of cases which have been turned over to the Attorney General's office. (See memo attached).

Ms. Olson reported that she and Mr. Goldsmith will meet with Counsel Gretz and other representatives from the Attorney General's office about the possibility of independent legal counsel as needed to avoid the possibility of a conflict of interest.

LEGISLATIVE RECOMMENDATIONS AND RULES COMMITTEE REPORT (see September 20th minutes)

Committee Chair Owens Hayes reported that the committee met on October 18th. A memo outlining the committee's conclusions on what the Board's statement to the legislature should include was provided to Board members. (See memo attached). Additional committee meetings are scheduled for: Friday, November 1st, 1 p.m.; Friday, November 22nd, 1 p.m.; and Friday, December 6th, 8:30 a.m.

OTHER BUSINESS

Correspondence - Mr. Anderson withdrew from discussion a letter he sent to Chair Rodriguez on October 22, 1996, about the complexity of Minn. Stat. Ch. 10A and the possibility of a Board resolution to the legislative leadership.

Board findings - Board members reviewed a memo from Mr. Goldsmith concerning the format for Board findings. The Board's statutory charge is to make findings concerning probable cause, not findings of ultimate fact. Staff has begun drafting findings using a "statement of the evidence" rather than "finding of fact" and findings "concerning probable cause" rather than "conclusions of law". Mr. Goldsmith requested direction on future findings and corresponding modifications to conciliation agreements. The Board agreed by consensus to continue with the new format.

REPORT FROM EXECUTIVE SESSION

FINDINGS IN THE MATTER OF A COMPLAINT AGAINST LYLE J CLEMENSON

The Board found that there is no probable cause to believe that Lyle Clemenson had violated the contribution provisions of Minn. Stat. Chapter 10A with the use of automobiles owned by Brookdale Pontiac-GMC during parades. There is probable cause to believe that a reporting violation occurred when the (Lyle) Clemenson Volunteer Committee agreed to rent vehicles from Brookdale Pontiac-GMC for parade use in 1996, and did not disclose these unpaid expenditures on the report filed September 4, 1996. There is no probable cause to believe that a contribution or reporting violation occurred with regard to the (Lyle) Clemenson Volunteer Committee's expenditures for printing business cards. There is no probable cause to believe that a contribution or reporting violation occurred as a result of use by the (Lyle) Clemenson Volunteer Committee of Clemenson Enterprises, Inc. office equipment and facilities during the period covering January 1 through August 27, 1996. Pursuant to Minn. Stat. §10A.02, subd. 11, the Executive Director shall report the finding of probable cause to the appropriate law enforcement authority. The complaint of John Hall regarding Lyle J. Clemenson is dismissed in all respects. The record of the investigation is brought forward into public record (see findings attached).

FINDINGS IN THE MATTER OF A COMPLAINT AGAINST JULIE GLANZ

The Board found that there is no probable cause to believe that Julie Glanz's principal campaign committee for House District 67A accepted an illegal in-kind contribution from her school board campaign. The complaint of Ken Strasma regarding Julie Glanz is dismissed in all respects. The record of the investigation is brought forward into public record (see findings attached).

FINDINGS IN THE MATTER OF A COMPLAINT AGAINST BETTY FOLLIARD

Having filed an amendment to her Public Subsidy Agreement, the Board found that there is no probable cause to believe that Betty Folliard signed her original Public Subsidy Agreement with the knowledge that it was incorrect as to her first time candidacy status. The complaint of Representative Steven Sviggum regarding Betty Folliard is dismissed in all respects. The record of the investigation is brought forward into public record (see findings attached).

FINDINGS IN THE MATTER OF A COMPLAINT AGAINST THE FRIENDS OF GREG MILLER COMMITTEE

The Board found that there is no probable cause to believe that Greg Miller contributed or loaned more than the statutory limit a candidate may contribute or lend to the candidate's own principal campaign committee during 1994. The complaint of Terance Smith regarding Greg Miller is dismissed in all respects. The record of the investigation is brought forward into public record (see findings attached).

ADJOURNMENT

Meeting adjourned.

Respectfully submitted,

Barry Anderson, Vice Chair

In the absence of Nancy Wilson, Secretary

(Minutes by staff)

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