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Regular Session Minutes Tuesday, February 13, 2007

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STATE OF MINNESOTA<br />

CAMPAIGN FINANCE AND PUBLIC DISCLOSURE BOARD<br />

. . . . . . . . .<br />

<strong>Tuesday</strong>, <strong>February</strong> <strong>13</strong>, <strong>2007</strong><br />

. . . . . . . . .<br />

Room G - 31<br />

Judicial Center<br />

. . . . . . . . .<br />

Meeting was called to order by Chair Boyd.<br />

MINUTES<br />

Members present: Ashmore, Bettermann, Boyd, Heintzman, Wehrwein<br />

Others present: Olson, Sigurdson, Swanson, Goldsmith staff; Walsh, legal consultant;<br />

Huwe, counsel<br />

Mr. Milbert informed Board members he would be unable to attend the meeting.<br />

MINUTES (January 9, <strong>2007</strong>)<br />

Mr. Wehrwein’s MOTION: To approve the January 9, <strong>2007</strong>, minutes as drafted.<br />

Vote on MOTION: Unanimously passed.<br />

CHAIR'S REPORT<br />

• Board Meeting Schedule<br />

Next meeting is scheduled for <strong>Tuesday</strong>, March <strong>13</strong>, <strong>2007</strong>.<br />

EXECUTIVE DIRECTOR'S REPORT<br />

Ms. Olson submitted the following written report:<br />

• Staff Activities<br />

All but <strong>13</strong> of the Lobbyist Disbursement Reports due January 16 th have been filed. About 1,500<br />

Reports (87%) were filed electronically.<br />

Approximately 1,300 Campaign Finance Reports of Receipts and Expenditures were due January<br />

31 st . Of the filed Reports, about 375 were filed electronically; 260 of those by candidate<br />

committees. About 115 Reports have not been filed.


Page 2<br />

<strong>Minutes</strong><br />

<strong>February</strong> <strong>13</strong>, <strong>2007</strong><br />

On January 12 th Ms. Olson was on the faculty of a continuing legal education seminar “The<br />

Legislative Process”. Mr. Walsh also served on the faculty.<br />

On <strong>February</strong> 2 nd , Mr. Sigurdson was a guest lecturer for a University of Minnesota Law School<br />

class at the State Capitol.<br />

On <strong>February</strong> 9 th Ms. Olson was a guest lecturer at a University of Minnesota, Duluth, Graduate<br />

School class in the Master of Advocacy and Political Leadership program.<br />

• Personnel<br />

The Department of Employee Relations approved the request to upgrade the Board’s Information<br />

Technology position from an Information Technology Specialist 2 to an Information Technology<br />

Specialist 3.<br />

Ms. Olson reviewed the performance of Gary Goldsmith. Mr. Goldsmith’s performance meets or<br />

exceeds expectations and he will receive the MAPE Achievement Award for fiscal year <strong>2007</strong>.<br />

• Legislation<br />

Mr. Sigurdson and Ms. Olson appeared before the House State Government Finance Committee<br />

on <strong>February</strong> 6 th and the Senate State Government Budget Division on <strong>February</strong> 7 th to discuss the<br />

Board’s 2008/2009 fiscal year budget.<br />

The Senate and the House have scheduled confirmation hearings for Ms. Ashmore and Mr.<br />

Milbert on <strong>February</strong> 28 th .<br />

A bill to require 24 hour notice of large contributions in the two weeks before an election passed<br />

the Senate on <strong>February</strong> 5 th . The bill, which also requires the Board to post the notices within 24<br />

hours together with other provisions, is also moving through the House.<br />

• Miscellaneous<br />

Counsel Huwe provided the Board with a January 2, <strong>2007</strong>, update of the BOARD MEMBERS’<br />

HANDBOOK OF LEGAL ISSUES.<br />

Enforcement Report<br />

Consent Items<br />

Board Action: Authorization for referral to the Office of the Attorney General for failure to<br />

file a Lobbyist Disbursement Report due January 16, <strong>2007</strong>. Two certified<br />

letters were sent. Staff contacted or attempted to contact each lobbyist<br />

by telephone.


Page 3<br />

<strong>Minutes</strong><br />

<strong>February</strong> <strong>13</strong>, <strong>2007</strong><br />

Guy Gambill, Minnesota Council on Crime and Justice, dba Council on<br />

Crime and Justice<br />

Lee J. Graczyk, Minnesota Senior Federation<br />

Peter H. Grills, Rock Tenn Company<br />

Susan L. Johnson, Minnesota Senior Federation<br />

Curt Milburn, East Side Neighborhood Development Company<br />

Pam Weaver, Builders Association of Minnesota<br />

Board Action: Confirmation of the administrative termination for the following lobbyists at<br />

the request of the lobbyist’s association.<br />

Ed Schones, Minnesota State College Faculty, registered on May 5,<br />

2002, and authorized another lobbyist to report disbursements on his<br />

behalf. Termination effective July 1, 2004.<br />

Jean Woorster, Minnesota Association of Townships, registered on<br />

November 14, 1990, and authorized another lobbyist to report<br />

disbursements on her behalf on April 15, 2002. Termination effective<br />

November 1, 2006.<br />

Ms. Ashmore’s MOTION: To authorize the actions specified in the consent matters.<br />

Vote on MOTION: Unanimously passed.<br />

Discussion Items<br />

Request to waive late filing fees and civil penalties<br />

• Pre-primary Report of Receipts and Expenditures due August 28, 2006<br />

Diana Moran, Rochester Area Chamber of Commerce Political Action Committee, $500 late<br />

filing fee, $200 civil penalty - The Report of Receipts and Expenditures was received in the<br />

Board office on September 22, 2006. By letter dated January 8, <strong>2007</strong>, Ms. Moran stated that<br />

the committee was inactive for over a year, committee funds of $3,866.39 were transferred to<br />

the Minnesota Chamber Leadership Fund in 2006, and that the Rochester Area Chamber of<br />

Commerce Political Action Committee no longer exists. A termination report was filed on<br />

October 6, 2006. No motion was made.<br />

• 48 Hour Notice of Large Pre-election Contribution or Loan


Page 4<br />

<strong>Minutes</strong><br />

<strong>February</strong> <strong>13</strong>, <strong>2007</strong><br />

Julie Risser, Julie Risser for Senate 41, $500 late filing fee - On October 25, 2006, Ms. Risser<br />

loaned the committee $2,000. The loan was not reported until the year end Report of Receipts<br />

and Expenditures was received in the Board office on January 29, <strong>2007</strong>. By letter dated<br />

January 31, <strong>2007</strong>, Ms. Risser stated that she and her treasurer realized as they were preparing<br />

the year end report that the $2,000 should have been reported within 48 hours. Ms. Risser<br />

further stated that campaigning in Senate District 41 became very active for her when a<br />

candidate dropped out of the race and her treasurer was traveling to Duluth for a family health<br />

issue during this time.<br />

Mr. Wehrwein’s MOTION: To: 1) deny Ms. Risser’s request to waive the $500 late filing fee;<br />

and 2) reduce the late filing fee to $100.<br />

Vote on MOTION: Unanimously passed.<br />

Susan Starr, treasurer, Mike Starr for State Senator, $500 late filing fee – The 48 th Senate<br />

District DFL placed an ad for the candidate on October 27, 2006. This in-kind contribution was<br />

not reported to the Board until the year end Report of Receipts and Expenditures was received<br />

in the Board office on January 25, <strong>2007</strong>. By letter dated January 29, <strong>2007</strong>, Ms. Starr stated that<br />

she knew of the requirement for 48-hour notice but did not realize that in-kind contributions<br />

needed to be reported, too.<br />

Mr. Wehrwein’s MOTION: To: 1) deny Ms. Starr’s request to waive the $500 late filing fee;<br />

and 2) reduce the late filing fee to $100.<br />

Vote on MOTION: Unanimously passed.<br />

• Reports of Receipts and Expenditures due <strong>February</strong> 2 and August 30, 2004, and<br />

August 28, 2006<br />

Lowell Nelson, treasurer, Lincoln County DFL, $1,000 civil penalty, Report due <strong>February</strong> 2,<br />

2004; $500 late fee, $1,000 civil penalty, Report due August 30, 2004; and $500 late fee, $700<br />

civil penalty, Report due August 28, 2006 - On March 8, 2000, the treasurer of Lincoln County<br />

DFL resigned and Phil Moen, committee chair, was responsible for filing the committee reports<br />

until October 2006 when Mr. Nelson became treasurer. Staff spoke to Mr. Nelson by phone and<br />

discussed the late filing fees and civil penalties that have accrued on previous Reports that<br />

were filed late. Reports disclose that the ending cash balance of the committee has been<br />

$99.33 since 1999. Mr. Nelson filed a termination report and forwarded the $99.33 left in the<br />

account to apply to the outstanding penalties.<br />

Mr. Wehrwein’s MOTION: To: 1) approve Mr. Nelson’s request to waive the $2,700 in civil<br />

penalties; 2) accept the $99.33 in payment toward the late filing<br />

fees; and 3) waive the remaining $900.67 in late filing fees.<br />

Vote on MOTION: Unanimously passed.


Page 5<br />

<strong>Minutes</strong><br />

<strong>February</strong> <strong>13</strong>, <strong>2007</strong><br />

• Reports of Receipts and Expenditures due <strong>February</strong> 2, 2004, and January 31, 2005<br />

Kevin Trainor, Taxpayers for (Kevin) Trainor, $100 late filing fee, $1,000 civil penalty, Report<br />

due <strong>February</strong> 2, 2004; $100 late filing fee, $1,000 civil penalty, Report due January 31, 2005 -<br />

Mr. Trainor filed a Statement of Termination for the Taxpayers for Trainor (Committee) on July<br />

22, 2004. The termination was not accepted because: 1) the Committee had not filed the 2003<br />

Year End Report of Receipts and Expenditures; and 2) the termination statement indicated no<br />

outstanding debts and no committee assets. The last report filed with the Board covering the<br />

period January 1 through December 31, 2002, disclosed an ending cash balance of $732.63<br />

and an outstanding debt of $150. The Committee was referred to the Office of the Attorney<br />

General in April of 2004 and <strong>February</strong> of 2005.<br />

By letter dated July 14, 2006, Mr. Trainor stated that the computer used to file Committee<br />

reports had malfunctioned and that the paper records of the committee were lost during a move<br />

in 2003. A waiver request at the August 15, 2006, meeting was tabled and the Board directed<br />

staff to contact Mr. Trainor and direct him to obtain copies of the committee bank records, and<br />

determine the cause of the discrepancy in the cash balance of the committee. Staff contacted<br />

Mr. Trainor by e-mail on October 16 and November 15, 2006, at which time Mr. Trainor stated<br />

that he was still waiting for bank records. In a letter dated January 4, <strong>2007</strong>, Mr. Trainor stated<br />

that he had been unsuccessful in obtaining bank records. Mr. Trainor provided a copy of a<br />

check carbon dated March 4, 2003, payable in the amount of $150 that he stated was used to<br />

pay the outstanding debt shown on the 2002 Report of Receipts and Expenditures. Mr. Trainor<br />

renews his request for a waiver of the outstanding late fees and civil penalties and for the Board<br />

to accept his termination without accounting for $582.63 in funds or filing a Report of Receipts<br />

and Expenditures for 2003.<br />

Ms. Bettermann’s MOTION: To: 1) deny Mr. Trainor’s request to waive the $100 late<br />

filing fee and $1,000 civil penalty for the late filing of the<br />

Report of Receipts and Expenditures due <strong>February</strong> 2,<br />

2004; 2) accept Mr. Trainor’s request to waive the $100<br />

late filing fee and $1,000 civil penalty for the late filing of<br />

the Report of Receipts and Expenditures due January 31,<br />

2005; and 3) direct staff to accept the Statement of<br />

Termination for the Taxpayers for Trainor committee when<br />

the late filing fee and civil penalty have been paid.<br />

Vote on MOTION: Unanimously passed.<br />

• Report of Receipts and Expenditures due <strong>February</strong> 2, 2004<br />

Roman Fraulini, (Roman) Fraulini Volunteer Committee, $100 late fee, $1,000 civil penalty -<br />

The Fraulini Volunteer Committee was referred to the Attorney General’s office for failure to file.<br />

When notice reached Mr. Fraulini that the Report had not been filed, he contacted staff by


Page 6<br />

<strong>Minutes</strong><br />

<strong>February</strong> <strong>13</strong>, <strong>2007</strong><br />

phone. Records show that staff faxed a memo and a Statement of Termination form to Mr.<br />

Fraulini on June 28, 2004. Staff received a letter dated March <strong>13</strong>, 2005, from Mr. Fraulini with a<br />

copy of the Statement of Termination enclosed after receiving a summons from the Attorney<br />

General’s office. By letter dated <strong>February</strong> 2, <strong>2007</strong>, Mr. Fraulini stated that he sent a Statement<br />

of Termination in January 2004 and moved to Illinois in the spring of 2004.<br />

Ms. Ashmore’s MOTION: To: 1) deny Mr. Fraulini’s request to waive the $100 late filing fee;<br />

and 2) approve the request to waive the $1,000 civil penalty.<br />

Vote on MOTION: Unanimously passed.<br />

• Lobbyist Disbursement Reports due January 15 and June 15, 2004<br />

David Salene, Lake County Housing and Redevelopment Authority, $100 late filing fee, $1,000<br />

civil penalty, Report due January 15, 2004; $100 late filing fee, $1,000 civil penalty Report due<br />

June 15, 2004; $41.20 service of process fee - Staff referred Mr. Salene to the Attorney<br />

General’s office for failure to file two Lobbyist Disbursement Reports and failure to pay a<br />

lobbyist fee for 2003 and 2004. Mr. Salene responded in writing August 28, 2004, to the<br />

Attorney General’s office stating the reports would be filed and the fees would be paid. The<br />

reports and fees were not received. The Attorney General’s office initiated action again on<br />

January 3, <strong>2007</strong>. The reports were received in the Board office on January 20, <strong>2007</strong>, indicating<br />

no lobbying disbursements and that Mr. Salene was not paid for lobbying. Mr. Salene requests<br />

a waiver of the late fees and civil penalties based on the lack of lobbying activity.<br />

Mr. Wehrwein’s MOTION: To: 1) deny Mr. Salene’s request to waive the two $100 late filing<br />

fees and the two $1,000 civil penalties; and 2) stay the $200 in<br />

late filing fees and the $2,000 in civil penalties pending prompt<br />

filing of further reports.<br />

Vote on MOTION: Unanimously passed.<br />

Request for Reconsideration of Waiver of Late Fee and Civil Penalty<br />

• Pre-general Report of Receipts and Expenditures due October 30, 2006<br />

David Hallman, chair, Clay County Republicans, $500 late filing fee, $100 civil penalty – The<br />

Report of Receipts and Expenditures was received in the Board office on November 21, 2006.<br />

Board members considered a waiver request at the January 9, <strong>2007</strong>, meeting. No motion was<br />

made. By letter dated January 26, <strong>2007</strong>, Mr. Hallman said he would like the Board to<br />

reconsider his request to waive the late fee and civil penalty as the treasurer who took the<br />

position in January 2006 is a 78 year old gentleman with little experience. The treasurer<br />

assumed he would receive report forms before the due date. Because the committee filed the<br />

August report using the Campaign Reporter software, only a letter was mailed informing the


Page 7<br />

<strong>Minutes</strong><br />

<strong>February</strong> <strong>13</strong>, <strong>2007</strong><br />

treasurer of the need to file. Staff confirms that the committee had timely filed all previous<br />

reports. No motion was made.<br />

Chair Boyd’s MOTION: To reconsider David Hallman’s request for reconsideration of the<br />

waiver of late fee and civil penalty for the Clay County<br />

Republicans.<br />

Vote on MOTION: Unanimously passed.<br />

Ms. Ashmore’s MOTION: To: 1) deny Mr. Hallman’s request to waive the $500 late filing fee<br />

and the $100 civil penalty; and 2) reduce the late filing fee to<br />

$100.<br />

Vote on MOTION: Unanimously passed.<br />

Requests for Refunds of Late Filing Fees<br />

• Pre-general Report of Receipts and Expenditures due October 30, 2006<br />

Margie Hoyt, (Margie) Hoyt for People, $50 late filing fee received in the Board office on<br />

November 3, 2006 – By letter dated January 24 th Ms. Hoyt stated that she became her own<br />

treasurer on August 24, 2006, and had difficulty in getting the Campaign Reporter software to<br />

work properly. The report was submitted electronically at 1:20 a.m., November 3, 2006.<br />

Mr. Wehrwein’s MOTION: To approve Ms. Hoyt’s request and direct staff to refund the $50<br />

late filing fee.<br />

Vote on MOTION: Unanimously passed.<br />

• Large Pre-election Contribution or Loan<br />

Carolyn Laine, (Carolyn) Laine for State Representative, $500 late filing fee – By letter dated<br />

January 23, <strong>2007</strong>, Representative Laine stated that her committee received a second payment<br />

of a contribution from the 50 th Senate District after the cutoff for the October reporting period.<br />

Her treasurer used the campaign software to report and wondered if they needed to submit a<br />

report of the contribution. The treasurer said the software did not alert him so he didn’t think it<br />

was necessary. A compliance check was done in December and the treasurer submitted the 48<br />

Hour Notice on December 21, 2006. No motion was made.


Page 8<br />

<strong>Minutes</strong><br />

<strong>February</strong> <strong>13</strong>, <strong>2007</strong><br />

Payment of Late Filing Fees<br />

Informational Items<br />

• Pre-primary Report of Receipts and Expenditures due August 28, 2006<br />

Minnesotans for a Single House: $82.41<br />

• Pre-general Report of Receipts and Expenditures due October 30, 2006<br />

Friends of Kyla Baldwin-Zingler: $250<br />

Volunteers for Mark Buesgens: $500<br />

Margie Hoyt for People: $50<br />

Matt Kruse for State Senate: $50<br />

Chisago County RPM: $250<br />

Minnesota Women’s Political Caucus: $100<br />

• 2004 Pre-primary Report of Receipts and Expenditures<br />

Lincoln County DFL: $99.33<br />

• Candidate Economic Interest Statement<br />

Kathie Roberts: $45<br />

• Lobbyist Disbursement Report due June 15, 2006<br />

David Kunz, Minnesota Academy of Ophthalmology: $10<br />

• Notice of Pre-election Large Contribution or Loan:<br />

Michael Jungbauer Volunteer Committee: $200<br />

Carolyn Laine for State Representative: $500<br />

Payment of Civil Penalties<br />

• Pre-general Report of Receipts and Expenditures due October 30, 2006<br />

Volunteers for Mark Buesgens: $200


Page 9<br />

<strong>Minutes</strong><br />

<strong>February</strong> <strong>13</strong>, <strong>2007</strong><br />

• Lobbyist contributions made to candidate committee during the 2006 Legislative<br />

<strong>Session</strong><br />

Eugene Martinez: $100<br />

Todd Otis: $100<br />

Carole Specktor: $50<br />

• Contribution from an unregistered association<br />

38 th Senate District RPM: $1,648.82<br />

Payment of Late Filing Fee, Civil Penalty, and Service of Process fee for 2005 Report of<br />

Receipts and Expenditures<br />

Committee to Elect Joel Holstad: $100 late fee, $1,000 civil penalty, $62 service of process fee<br />

Conciliation Agreement<br />

Paul Koering, Paul Koering for State Senate - During 2006, the Paul Koering for Senate<br />

Volunteer Committee accepted a $1,000 contribution from an individual. The contribution facially<br />

exceeded by $500 the applicable election year limit on contributions from individuals, set out in<br />

Minn. Stat. §10A.27, subd. 1, clause 4(a). Senator Koering entered into a conciliation agreement<br />

on January 9, <strong>2007</strong>, paid a civil penalty of $1,000 and returned $500 to the contributor.<br />

Deposits into the State Elections Campaign fund<br />

• Anonymous contributions<br />

Volunteers for Cassandra Holmstrom: $<strong>13</strong>8.47<br />

Melissa Hortman Campaign Committee: $100<br />

Bev Scalze Volunteer Committee: $469.35<br />

IBEW Local 292: $1,193.80<br />

• Terminating Principal Campaign Committees<br />

George Marin for Senate: $100 (forwarded contribution committee could not keep)<br />

Citizens for Paul Rosenthal: $25 (forwarded contribution committee could not keep)


Page 10<br />

<strong>Minutes</strong><br />

<strong>February</strong> <strong>13</strong>, <strong>2007</strong><br />

Deposits into State General Fund<br />

• Gifts to State<br />

Ron Abrams Volunteer Committee: $17,918.73<br />

David Salene, lobbyist: $100<br />

Follow-up from previous Board meeting<br />

Swede Hollow Democratic Club filed a Statement of Termination report.<br />

Financial statement and agency deposits<br />

Mr. Sigurdson submitted reports covering July 2006 through January <strong>2007</strong>.<br />

Customer Survey (see January 9 th minutes)<br />

Board members reviewed and made minor language changes to sample layouts of Internet<br />

surveys for clients who use the Campaign Finance Reporter software, campaign finance clients<br />

that do not use the software, and clients involved with lobbying. Surveys will be available to the<br />

public next week on the Board’s website and e-mails will be sent to the Board’s list serve<br />

clients.<br />

Video Conference<br />

The Office of the Attorney General has issued an updated copy of the Board Members’ Handbook<br />

of Legal Issues which states that meetings may not be conducted by telephone and there must be<br />

a video hook-up if a member wants to attend from a remote location.<br />

Board members reviewed video conferencing options made available by the Office of Enterprise<br />

Technology and questioned if a computer could be used. Counsel Huwe will find out if using a<br />

computer for video is acceptable.<br />

LEGAL COUNSEL’S REPORT<br />

Board members reviewed a memo from Counsel Huwe outlining the status of cases that have<br />

been turned over to the Attorney General’s office (see copy of memo attached).<br />

REPORT FROM EXECUTIVE SESSION<br />

In the matter of the investigation regarding the Wilkin County RPM - The Board issued<br />

Findings showing that there is probable cause to believe that the: 1) Wilkin County Republicans<br />

and the Wilkin County RPM are the same association, but that the Wilkin County Republicans did<br />

not need to separately register and report to the Board; 2) Wilkin County RPM and the (Paul) Holle


Page 11<br />

<strong>Minutes</strong><br />

<strong>February</strong> <strong>13</strong>, <strong>2007</strong><br />

for Senate Committee failed to disclose the cost of the newspaper advertisements on their pregeneral<br />

Report of Receipts and Expenditures; and 3) Wilkin County RPM did not secure written<br />

permission to make in-kind donations from the Holle for Senate Committee; the Board also found<br />

that there is no probable cause to believe that costs associated with the publication of the<br />

newspaper advertisements referenced in the complaint were independent expenditures on behalf<br />

of the Holle for Senate Committee. The Board ordered that the Findings and the record of the<br />

investigation be made a part of the public records of the Board (see copy of Findings attached).<br />

In the matter of the investigation regarding the Anoka Air Charter, Inc. - The Board issued<br />

Findings showing that there is probable cause to believe that Anoka Air Charter, Inc. inadvertently<br />

violated Minn. Stat. §10A.27, subd. <strong>13</strong>, when it made a contribution in excess of $100 to the<br />

(Michael) Jungbauer Volunteer Committee without providing the required disclosure. The Board<br />

ordered that the Findings and the record of the investigation be made a part of the public<br />

records of the Board (see copy of Findings attached).<br />

Respectfully submitted,<br />

Jeanne Olson<br />

Executive Director<br />

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