STATE OF MINNESOTA
ETHICAL PRACTICES BOARD

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Friday, November 22, 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, Slocum, Wilson.

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

MINUTES (October 25, 1996)

Mr. Anderson's MOTION: To approve the October 25, 1996, minutes as drafted.

Vote on MOTION: Unanimously passed by five members (Slocum absent).

(Emergency meeting, October 30, 1996)

Ms. Wilson's MOTION: To approve the October 30, 1996, minutes as drafted.

Vote on MOTION: Unanimously passed by four members (Anderson, Pauly, abstained).

CHAIR'S REPORT

Board Meeting Schedule - Next Board meeting: Friday, January 24, 1997.

EXECUTIVE DIRECTOR'S REPORT

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.

Mary E. Short, (Stan) Narusiewicz Volunteer Committee, $250*

Mike Halleron, (Dean) Urdahl for 15B Volunteer Committee, $500

Patricia A. Chapek, 27th Senate District DFL, $200

Ardith J. Lussier, AFSCME Local 34 PEOPLE, $125

Roger Battreall, AFSCME Local 2938, $500

* Note: Payment of the $250 late filing fee by Ms. Short was received in the Board office prior to the mailing of the Third Official Notice of Delinquency.

Board Action: Authorization of certified letter for nonfiling of Report of Receipts and Expenditures and subsequent enforcement in the event the report is not filed. To date, the following treasurers have not submitted the pre-general Report of Receipts and Expenditures due 10/28/96. Two notices have previously been sent to each client.

Joe Block, (Kevin) Correy for Senate, $500

Connie Janssen, (Connie) Janssen Volunteer Committee, $500

Mike Schultz, (Mike) Schultz Volunteer Committee, $500

Jeanette M. Smith, 19th Senate District DFL, $500

Eugene Holderness, Dorsey Political Fund, $500

Jack Moore, Int'l Brotherhood of Electrical Workers - Committee on Education, $500*

Jeanette M. Smith, Minnesota NOW PAC, $500

Marvin J. Cole, People FPBP of the USA, $500

Edmond Hanson, Political Education Fund of Local 21, $500

William McManus, Republican National State Elections Committee-Operating, $500

Ms. Owens Hayes' MOTION: To authorize the actions specified in the consent matters.

Vote on MOTION: Unanimously passed.

* Note: The Report of Receipts and Expenditures and the payment of the $500 late filing fee by Mr. Moore was received in the Board office prior to the mailing of the Third Official Notice of Delinquency.

Discussion Items

Waiver Requests - Campaign Finance program, Report of Receipts and Expenditures reports due 9/3/96

Robert E. Hines, treasurer, 10th Senate District DFL, #2-0555, filed 10/2/96, $500, no motion was made.

Katherine S. Flom, treasurer, 43rd Senate District DFL, #2-0558, filed 10/25/96, $500, no motion was made.

Harlan Tardy, treasurer, Minnesota CAP - PAC, #3-0553, filed 10/7/96, $500. Chair Rodriguez welcomed Paul Anderson, member of Minnesota CAP - PACA who requested to appear before the Board to present information about this matter. Mr. Anderson explained a problem with the committee mailing address, which has been corrected, and the absence of the treasurer. Mr. Anderson departed. No motion was made.

Charles Slocum, treasurer, Minnesotans for Term Limits, #4-0691, filed 10/9/96, $500, no motion was made.

Waiver Requests - Campaign Finance program, Report of Receipts and Expenditures reports due 10/28/96

Sharon Young, treasurer, Committee to Elect (Carol A.) White, #1-3135 58A, filed 11/12/96, $200, no motion was made.

Steven W. Kallin, treasurer, Cottonwood County RPM, #2-0714, filed 11/7/96, $100, no motion was made.

Noel Labine, treasurer, Marshall County DFL, #4-0309, filed 11/4/96, $50, no motion was made.

Mary Ryan, treasurer, Renville County DFL, #2-0124, filed 11/8/96, $150, no motion was made.

Steven C. Anderson, treasurer, Citizens Lobby, #4-0707, filed 11/5/96, $50.

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

Vote on MOTION: Unanimously passed.

Angie Barretta-Herman, treasurer, Minnesota - PACE, #8-0003, filed 11/5/96, $100.

Kristal Hart, treasurer, Minnesota Politically Involved Nurses (MN PIN), #3-0245, filed 11/6/96, $100.

Ms. Pauly's MOTION: To grant Ms. Herman's and Ms. Hart's requests to waive the $100 late filing fees due to extenuating circumstances.

Vote on MOTION: Unanimously passed.

Thomas M. Rud, treasurer, Local S-6 IAFF Political Fund, #3-0024, filed 11/14/96, $350.

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

Vote on MOTION: Unanimously passed.

Waiver Request - Campaign Finance program, Report of Receipts and Expenditures reports due 9/3/96

Paul Egeland, treasurer, Sierra Club Political Committee, #3-0188, filed 9/24/96, $500. First waiver request of $50 was granted on October 4, 1988, for the late filing of the Report of Receipts and Expenditures due September 6, 1988. No motion was made.

Waiver Request - Campaign Finance program, Report of Receipts and Expenditures reports due 10/28/96

K. N. Steinbach, treasurer, Clearwater County DFL, #2-0028, filed 11/6/96, $50. First waiver request of $150 was granted on October 4, 1988, for the late filing of the Report of Receipts and Expenditures due September 6, 1988. No motion was made.

Requests to Reconsider Board Denial of Waiver Request - Campaign Finance Program, Report of Receipts and Expenditures due 9/3/96

James H. Stock, treasurer, Stevens County RPM, #2-0367, filed 9/16/96, $50 remains to be paid, original late fee: $200. The waiver request was originally denied by the Board at its September 20, 1996, meeting. No motion was made.

Andrew F. Brevig, treasurer, 13th Senate District RPM, #4-0743, filed 9/16/96, $50 remains to be paid, original late fee: $150. The waiver request was originally denied by the Board at its October 25, 1996, meeting.

Mr. Anderson's MOTION: To grant Mr. Brevig's request to waive the remaining $50 late filing fee due to the circumstances described in Mr. Brevig's letter. The Board notes that the committee has terminated it's registration with the Board.

Vote on MOTION: Unanimously passed.

Joseph Olson, treasurer, Gun Owners Political Action Committee, #4-0680, filed 10/8/96, $500. The waiver request was originally denied by the Board at its October 25, 1996, meeting.

Mr. Slocum's MOTION: To grant Mr. Olson's request to waive the $500 late filing fee due to the circumstances described in Mr. Olson's letter. The Board notes that the committee has terminated it's registration with the Board.

Vote on MOTION: Unanimously passed.

Request to Terminate Registration With Cash Balance in Excess of $100

Frank Ferlin, treasurer, Responsible Citizens Political League, (TCU), #2-0469, this committee will be involved in only federal activities and will not be making any contributions to any state candidate or to any committees covered by Chapter 10A. The committee reported an ending cash balance of $33,045.18 on the October 28, 1996, report.

Mr. Anderson's MOTION: To grant Mr. Ferlin's request to terminate the Responsible Citizens Political League (TCU) with a cash balance of more than $100.

Vote on MOTION: Unanimously passed.

Informational Items

Payment of Civil Penalty

(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. On November 1, 1996, the (Steven) Murphy for Senate Committee paid a civil fine of $50, one times the excess amount. 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.

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

Payment of late filing fees

For the late filing of the Lobbyist Disbursement Report due 4/15/96.

Ken Smith, (Fathers Who Care), $25 - Partial payment of installment payment schedule for a $100 late filing fee.

For the late filing of the Report of Receipts and Expenditures due 9/3/96.

Jeffrey J. Gubash, treasurer, 66A House District RPM, #2-0469, $250 - Final payment of installment payment schedule for a $500 late filing fee.

For the late filing of the Lobbyist Disbursement Reports due 7/15/96.

Mark J. Oyaas, (Corporation for Supportive Housing), $30;

Mark J. Oyaas, (Greater Minneapolis Convention and Visitors Association), $30;

Mark J. Oyaas, (Piper Jaffray Companies Incorporated), $30.

For the late filing of the Report of Receipts and Expenditures due 9/3/96.

Dennis Lehto, treasurer, 14th Senate District DFL, #2-0505, $50;

Lyle Miller, treasurer, 40th Senate District RPM, #2-0556, $350;

Thomas Paulson, treasurer, 50th Senate District DFL, #2-0400, $50;

James H. Stock, treasurer, Stevens County RPM, #2-0367, $150;

Andrew F. Brevig, treasurer, 13th Senate District RPM, #4-0743, $100;

Michael Stockstead, treasurer, Minnesota Professional Fire Fighters PAC, #3-0098,

$200;

Paul Egeland, treasurer, Sierra Club Political Committee, #3-0188, $500;

Gregg C. Gleichert, treasurer, Turkey Political Committee, #4-0692, $250;

Harvey Guttmann, treasurer, (Harvey) Guttmann for Senate Committee, #1-2689 33,

$500;

Mary E. Short, treasurer, (Stan) Narusiewicz Volunteer Committee, #1-3650 56A, $250.

For the late filing of the Report of Receipts and Expenditures due 10/28/96.

Jim Horwath, treasurer, (Jim) Horwath for Representative Campaign, #1-3199 64B,

$150;

Mary E. Short, treasurer, (Stan) Narusiewicz Volunteer Committee, #1-3650 56A, $50; Earl Hauge, treasurer, Pope County DFL, #2-0090, $50;

Lloyd Lanz, treasurer, Wadena County RPM, #2-0140, $50;

Allen Bernard, treasurer, Minneapolis DFL Committee, #2-0567, $50;

Bret Gageby, treasurer, International Association of Professional Firefighters-Local

#1935, #3-0209, $50;

Jack F. Moore, treasurer, International Brotherhood of Electrical Workers -

Committee on Education, #3-0331, $500;

John L. Hermann, treasurer, Minneapolis Retired Police Association Political Fund,

#3-0123, $50;

Carole Basil, treasurer, Beer PAC-Minnesota Beer Wholesalers Association, #3-0274,

$50;

Jane M. Nakken, treasurer, Minnesotans for Chemical Health and Treatment, #4-0673,

$150;

Polly Podpeskar, treasurer, School Lunch Bunch, #3-0341, $50;

Joseph Peschek, treasurer, Twin Cities Area New Party Organizing Committee,

#4-0709, $150.

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

Financial Report and Agency Deposits - Mr. Goldsmith submitted a report covering July through October, 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. (Laid over from the October 25, 1996, meeting) (See October 25th minutes)

The Board reviewed a draft response to the advisory opinion request from Andrew Weinraub.

Mr. Anderson's MOTION: To approve Advisory Opinion #249 as drafted.

Vote on MOTION: Unanimously passed by five members (Owens Hayes absent).

SUMMARY: ADVISORY OPINION #249 signed by Chair Carolyn Rodriguez, November 22, 1996:

Creation of a worldwide web internet site on which an association publishes its positions on legislative matters does not require the registration of a lobbyist with the Ethical Practices Board.

Request for the following advisory opinions are nonpublic data.

Advisory Opinion #252 - Gift of a dinner to legislators

The Board reviewed a draft response to an advisory opinion request from a lobbyist representing an association which is a lobbyist principal, who asks if the gift of a dinner is permitted under the exception to the gift prohibition of Minn. Stat. 10A.071.

Ms. Wilson's MOTION: To approve Advisory Opinion #252 drafted.

Vote on MOTION: Unanimously passed.

SUMMARY: ADVISORY OPINION #252 signed by Chair Carolyn Rodriguez, November 22, 1996:

Informal statements and conversation at tables prior to a dinner with legislators do not trigger an exception to the gift prohibition even if event programs and invitations indicate that participants are expected to engage in this interaction.

Advisory Opinion #253 - Noncampaign disbursements

The Board reviewed a draft response to an advisory opinion request from a non-incumbent elected to the state legislature in the last general election, who asks if a candidate's principal campaign committee can use campaign funds for expenses of the candidate directly related to serving in office, but incurred before the candidate actually begins the term of service.

Ms. Owens Hayes' MOTION: To approve Advisory Opinion #253 as drafted.

Vote on MOTION: Unanimously passed.

SUMMARY: ADVISORY OPINION #253 signed by Chair Carolyn Rodriguez, November 22, 1996:

Principal campaign committee may use campaign funds to pay newly elected candidate's expenses directly related to serving in the new office even if those expenses are incurred before the candidate is sworn in. Such payments must be reported as noncampaign disbursements.

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. Gretz reported that Bruce Leier, lobbyist, Minnesota Senior Federation, has filed the required amendment to the July, 1996, Lobbyist Disbursement Report.

LEGISLATIVE RECOMMENDATIONS AND RULES COMMITTEE REPORT (see September 20th and October 25th minutes)

Board members reviewed a preliminary list of subject areas which might be included in the Board's 1997 legislative proposals (see list attached). Committee Chair Owens Hayes reported that the committee met on November 11th. Meetings are scheduled for November 22nd, at 1:00 p.m.; December 6th, 8:30 a.m.; and December 20th, at a time to be announced.

PUBLIC SUBSIDY CERTIFICATION

The Board reviewed preliminary data related to public subsidy payments to be made in December.

Mr. Anderson's MOTION: To instruct and authorize the Executive Director to calculate and distribute party account and general account public subsidy payments to all eligible candidates and to pay the appropriate parties the unopposed candidates' shares of party account money.

Vote on MOTION: Unanimously passed (see memo attached).

MATTERS BROUGHT FORWARD FROM EXECUTIVE SESSION

Fund raising during legislative session

The Board discussed the appropriateness of principal campaign committees accepting contributions the day the legislative session begins, but before the legislature is convened.

Mr. Anderson's MOTION: To direct staff to draft a letter to be distributed to all candidates and to the political committees of the legislative caucuses notifying them that the Board will consider only the day of receipt, not the particular time of day when a contribution is received. A contribution received at any time on the first or last day of a legislative session will be considered received during the session.

Vote on MOTION: Unanimously passed (see copy of letter attached).

Findings in the Matter of a Complaint Against Don Betzold

The Board found that there is no probable cause to believe that in-kind contributions of more than $20 were received by the Don Betzold for Senate Committee as the result of use of a fax machine owned by Don Betzold's law firm or from services performed by the Firm's secretary. There is no probable cause to believe that a reporting violation occurred by the Don Betzold for Senate Committee on its report filed September 3, 1996. The complaint of Darlene Clemenson regarding Senator Don Betzold 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 Minneapolis Municipal Retirement Association

The Board found that there is no probable cause to believe that a reporting violation exists on the Minneapolis Municipal Retirement Association's report covering the year 1994. The complaint of Mel Duncan regarding the Minneapolis Municipal Retirement Association 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 Minneapolis Police Relief Association

The Board found that there is no probable cause to believe that a reporting violation exists on the Minneapolis Police Relief Association's report covering the year 1994. The complaint of Mel Duncan regarding the Minneapolis Police Relief Association 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 Police Officers Federation

There is no probable cause to believe that a reporting violation exists on the Police Officers Federation of Minneapolis Contingency Fund's report covering the year 1994. The complaint of Mel Duncan regarding the Police Officers Federation of Minneapolis Contingency Fund is dismissed in all respects. The record of the investigation is brought forward into public record (see findings attached).

ADJOURNMENT

Meeting adjourned.

Respectfully submitted,

Nancy Wilson, Secretary

(Minutes by staff)

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