STATE OF MINNESOTA

CAMPAIGN FINANCE AND PUBLIC DISCLOSURE BOARD

. . . . . . . . .

Friday July 18, 1997

. . . . . . . . .

Blazing Star Conference Room

Ground Floor, Centennial Office Building

. . . . . . . . .

MINUTES

Meeting was called to order by Chair Anderson.

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

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

Ms. Pauly previously informed the Board that she would be unable to attend the meeting.

MINUTES (June 27, 1997)

Ms. Rodriguez's MOTION: To approve the June 27, 1997, minutes as drafted.

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

CHAIR'S REPORT

Board Meeting Schedule - Next Board meeting: Friday, August 22, 1997, 8 a.m.

Board Mini-retreat - Scheduled for August 22, 1997, following the Board meeting. Board members discussed possible meeting sites and items to be placed on the agenda. Staff will arrange a meeting place. Chair Anderson asked Board members to call him or Ms. Olson with suggestions for the agenda.

Conference on Governmental Ethics Laws (COGEL) Conference - The Board reviewed a proposed amendment to the COGEL bylaws which would provide for decision making on future COGEL conferences to be made three years prior to the conference rather than two.

Ms. Wilson's MOTION: To direct Chair Anderson, Board delegate to the COGEL conference, to vote in favor of this amendment.

Vote on motion: Unanimously passed.

Chair Anderson recommended to Board members that Ms. Owens Hayes attend the 1997 COGEL conference and her expenses be reimbursed by the Board.

Ms. Wilson's MOTION: To send Ms. Owens Hayes to the COGEL conference and reimburse her expenses from the Board budget.

Vote on MOTION: Unanimously passed.

EXECUTIVE DIRECTOR'S REPORT

Resolution

A resolution granting authority to Ms. Olson, Mr. Goldsmith, and Ms. Errico to appear on behalf of the Board in all Conciliation Court proceedings was available for Chair Anderson's signature. This resolution was offered for signature at the May 23rd Board meeting and is offered again using the Board's new name.

Ms. Olson reported the following:

Staff activities

Staff met with vendors interested in bidding on the Campaign Finance Management System. Deadline for proposals was July 16th. Four proposals were timely submitted. Staff will review the proposals and advise the Board of the selected vendor.

Staff met with interested individuals about the Campaign Finance Management System and will incorporate suggestions as appropriate.

Personnel items

Counsel Gretz, Gary Goldsmith, Barb Holmes, and Ms. Olson met on July 9, 1997, with representatives from the AFSCME union to hear a step 3 grievance.

Miscellaneous items

Chair Anderson was interviewed by Channel 5 (KSTP) in the Board office about the Political Contribution Refund program. The segment will air on August 1st at 10 p.m.

Enforcement Report

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

Consent Item

Board Action: Authorization of third letter, to be sent by certified mail, to compel the filing of a required amendment to the Report of Receipts and Expenditures covering the period January 1 through December 31, 1996, and subsequent legal enforcement action if the amended report is not filed. An amendment letter and one subsequent notice have previously been sent to each client.

Paul Tocko, treasurer, Volunteers for Joe McCabe

Renee Iverson, treasurer, 6A House District RPM

Board Action: Authorization of third letter, to be sent certified mail, to compel the filing of an amendment to the Principal Campaign Committee's Registration and Statement of Organization and subsequent legal enforcement action if the report is not filed. Two letters have previously been sent to the client.

Brian L. Olson, candidate, Brian Olson for Senate Committee

Board Action: Authorization of a certified letter for nonpayment of late filing fees and subsequent legal enforcement action in the event the fee is not paid. Two notices have been previously sent to each client.

Statement of Economic Interest due April 15,1997:

David Erickson, Minnesota State Colleges & Universities: $75

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

Vote on MOTION: Unanimously passed.

Discussion Items

Waiver Request

Peter Hansen Roess, Clean Water Dream Team - $100 for the late filing of his lobbyist disbursement report due April 15, 1997. Report was received in the Board office on July 7, 1997. Mr. Roess terminated his registration as of July 7, 1997.

Ms. Rodriguez's MOTION: To grant Mr. Roess' request to waive the $100 late filing fee.

Vote on MOTION: Unanimously passed.

Ben Thompson, chair, Independent American Party of Minnesota - $150 for the late filing of the committee's pre-primary Report of Receipts and Expenditures due September 3, 1996. Report was received in the Board office on September 13, 1996. No motion was made.

Further Enforcement Action

Compliance with Disclosure Requirements - Pursuant to Board direction, staff continues its efforts to obtain full compliance with the requirement for complete disclosure of employer, complete mailing address, and date of contribution from contributors giving more than $100 to principal campaign committees, political committees, and political funds. Staff sent two letters to committees not in compliance with this requirement on their year-end 1996 Reports of Receipts and Expenditures.

Board members reviewed a list of committees which are not in full compliance. The list showed committees who: 1) have provided additional disclosure but still have missing information; and 2) have not responded to either letter. Staff requests direction from the Board on how to proceed.

Jim DeMay, campaign manager, (Ted) Mondale for Governor committee presented information on the attempts the committee has made to contact contributors for the required information.

Ms. Wilson's MOTION: To: 1) send a letter to those committees which are not in compliance and which have not explained their inability to comply, informing them that failure to fully disclose the required information from contributors of more than $100 may result in Board issuance of findings of probable cause regarding failure to comply with statutory reporting requirements; 2) send letters to those who have responded to the initial Board inquiry by first class mail; 3) send letters to those who have not responded to the initial Board inquiry by certified mail; 4) bring the matter back to the Board for further review at the August 22nd meeting.

Vote on MOTION: Unanimously passed.

Donna Meigs, Private Detective Protective Agent Services Board - Ms. Meigs failed to file a supplemental Statement of Economic Interest due on April 15, 1996, and a late filing fee of $100 accrued. The matter was turned over to the Attorney General's Office for assistance in obtaining the missing Statement of Economic Interest and the late filing fee.

The Attorney General's Office has been trying to serve a summons and complaint. Ms. Meigs currently lives in Dallas, Texas and the cost to serve the complaint at that address would be approximately $45. Staff requests Board direction on whether to proceed with further action.

Ms. Rodriguez's MOTION: To: 1) suspend efforts to commence a legal action to obtain the termination statement or collect the late filing fee from Donna Meigs; 2) continue efforts to collect the $100 late filing fee by placing it with the state's collections program; 3) place all correspondence in Ms. Meigs' file and remove Ms. Meigs from the active public officials files section in the Board office.

Vote on MOTION: Unanimously passed.

New Cash Balance

Warren J. Ferber, treasurer, 52A House RPM - Staff notified Mr. Ferber of a discrepancy between the ending cash balance on the committee's Report of Receipts and Expenditures for 1995 and the beginning cash balance reported on the committee's 1996 year-end Report of Receipts and Expenditures.

In a letter to Board staff Mr. Ferber explained that the previous treasurer did not understand the requirements for reporting Receipts and Expenditures and only listed those donations of more than $300. Mr. Ferber worked with staff and bank records to create a corrected 1996 beginning balance. Mr. Ferber requests Board approval to use the corrected 1996 beginning balance for all subsequent reports.

Ms. Rodriguez's MOTION: To approve Mr. Ferber's request to use the corrected 1996 beginning balance for all subsequent filings with the Board.

Vote on MOTION: Unanimously passed.

Inactive Committee

William F. Brandt, William F. "Ned" Brandt - On May 24, 1993, staff sent William Brandt notification that his principal campaign committee had become inactive under Minn. Stat. §10A.242, subd. 2 (a), and must be terminated within 60 days. A follow-up letter was mailed by staff on September 29, 1993.

On October 8, 1993, staff received a letter from Mr. Brandt requesting that his committee not be terminated until he could repay the $2,032.69 loan he borrowed on June 1, 1986, from his committee to pay for medical expenses. Mr. Brandt stated that he was unable to repay the loan because of inadequate funds and limited income. He would however, be able to repay the loan within the next 6 to 12 months. The Board granted his request and Mr. Brandt's committee has remained in the active Board files.

Mr. Brandt continues to file all subsequent reports as "no change" and has not reported the repayment of the outstanding loan. Staff requests Board direction on the appropriate steps for further enforcement.

Ms. Rodriguez's MOTION: To: 1) administratively terminate the principal campaign committee registration for Mr. Brandt; 2) direct staff to notify Mr. Brandt that this action does not relieve him of the loan obligation, but that further committee reports will not be required unless payment is made toward the outstanding loan; and 3) require Mr. Brandt to report any repayment towards the loan and terminate the committee's registration at the time the loan is repaid in full.

Vote on MOTION: Unanimously passed.

Informational Items

Payment of Late Filing Fees

Junita Flowers, (Representing Family and Children Services): $30

Scott K. Goldsmith, (Representing Farmers Insurance Group): $45

Lisa M. Peterson, (Representing Minnesota Trucking Association): $5

Louis Smith (Representing Minnehaha Creek Watershed District): $25

David L. Beaulieu, former Commissioner, Department of Human Rights: $35

Clinton Collins, Office of Administrative Hearings: $50

Dawn Marie Hulmer, Public Employees Retirement Association (PERA): $15

Donald Cheatham, candidate, (Donald) Cheatham for State Representative: $30

Payment of Civil Fines

Volunteers for (Bob) Petrich - During the period of January 1 through December 31, 1996, the Volunteers for Petrich accepted aggregate contributions totaling $5,400 from committees of the Republican Party of Minnesota. The total amount of these contributions exceeded by $400 the applicable $5,000 limit on aggregate contributions from political parties. Bob Petrich entered into a conciliation agreement, effective May 31, 1997, to remedy this matter. On June 26, 1997, the committee paid a civil fine of $400, one times the amount by which the contributions exceeded the applicable contribution limit.

Don Kramer for State Senate Committee - During the election year 1996, the Don Kramer for Senate committee made campaign expenditures which were $912.29 in excess of the applicable expenditure limit. During the period of January 1 through December 31, 1996, the Don Kramer for Senate committee accepted aggregate contributions totaling $5,051.70 from committees of the Republican Party of Minnesota political party. The total amount of contributions exceeded by $51.70 the applicable $5,000 limit on aggregate contributions from political parties. Don Kramer entered into a conciliation agreement , effective June 9, 1997, to remedy these matters. On July 3, 1997, the committee paid a civil fine of $912.29, one times the amount by which the campaign expenditures exceeded the applicable expenditure limit and $51.70, one times the amount by which the contributions exceeded the applicable limit, for a total civil fine of $963.99.

(Clair) Nelson Volunteer Committee - During the election year 1996, the Nelson Volunteer Committee made campaign expenditures which were $1,894 in excess of the applicable expenditure limit. Clair Nelson entered into a conciliation agreement, effective June 13, 1997, to remedy this matter. On July 10, 1997, the committee paid a civil fine of $5,682, three times the amount by which the campaign expenditures exceeded the applicable expenditure limit.

All payments of late filing fees and civil fines have been deposited in the general fund of the state pursuant to statute.

Return of Public Subsidy - Public Subsidy Received was Greater Than Campaign Expenditures

Volunteers for (Julie) Glanz (House 67A) $1330.84

(Steve) Thibault for State Representative (House 66B) $199.60

(Jess) Lehman for Representative (House 45A) $559.50

APPROVAL OF REVISED ORIGINAL STATEMENT OF ECONOMIC INTEREST

Board members reviewed a draft Original Statement of Economic Interest which was updated to conform with the requirements of Minn. Stat. §10A.09 and Minn. Rules pts. 4501 and 4505.

Ms. Owens Hayes' MOTION: To approve the revised Original Statement of Economic Interest as drafted.

Vote on MOTION: Unanimously passed.

GUIDELINE FOR POLITICAL CONTRIBUTION REFUNDS RECONCILIATION

Ms. Rodriguez's MOTION: Direct staff to initiate an investigation of candidate committee political contribution refunds reported by the Department of Revenue for calendar year 1996, in cases where the candidate committee reported total individual contributions eligible for a refund of at least $500 less than that reported by the Department of Revenue.

Vote on MOTION: Unanimously passed.

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). Counsel Gretz noted that the matter of the Campaign Finance & Public Disclosure Board v. Donna Meigs will be removed from the Attorney General's files per Board action taken today.

OLD BUSINESS

Chair Anderson noted that Ms. Wilson has been reappointed to the Board by the Governor for another four year term. Confirmation hearings will be held.

ADJOURNMENT

Meeting adjourned.

Respectfully submitted,

Jeanne Olson, in the absence of

Sidney Pauly, Secretary

(Minutes by staff)

If you would like to receive any attachment referred to in these minutes please contact the board office