STATE OF MINNESOTACAMPAIGN FINANCE AND PUBLIC DISCLOSURE BOARD.........
March 1, 2016
Room G-31
Minnesota Judicial Center.........
MINUTESThe meeting was called to order by Chair Sande.
Members present: Greenman, Leppik, Oliver (arrived during Executive Director Topics – Budget
Report), Rosen (participating by telephone), Sande
Members absent:

Flynn

Others present: Goldsmith, Sigurdson, Fisher, Pope, staff; Hartshorn, counsel (arrived during
Executive Director Topics – Review of bank reconciliation initiative)
The meeting did not strictly follow the order of business set forth in the agenda.
CHAIR’S REPORT
Introduction of new member
Chair Sande reported that Governor Dayton had appointed Emma Greenman to the Board. Members
introduced themselves to Member Greenman and welcomed her to the Board.
Board meeting schedule
The next Board meeting is scheduled for April 5, 2016.
EXECUTIVE DIRECTOR TOPICS
Status of office operations
Mr. Goldsmith told members that since the last meeting, staff had been busy with the campaign
finance, lobbyist, and economic interest reports that were all due in January or early February. Mr.
Goldsmith said that staff now was busy looking for and resolving compliance issues shown on thereports. Staff also had conducted compliance and software training since the last meeting.

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March 1, 2016
Website redevelopment update
Mr. Goldsmith told members that progress was being made on the website project. Mr. Goldsmith said
that June 1st continued to be a more realistic completion date for the project than the original target
date of April 1st.
Budget report
Mr. Goldsmith told members that the Board and its projects were on budget and that there would besome money available to carry forward to the second year of the biennium. Mr. Goldsmith told
members that money had been added to the web developer contract because the scope of that project
had increased.
Update on live streaming of Board meetings
Mr. Goldsmith told members that this was a placeholder and that this issue would be considered at the
April meeting.
Review of bank reconciliation initiative
Mr. Goldsmith presented members with a memorandum on this issue that is attached to and made apart of these minutes. Mr. Goldsmith reviewed the reconciliation initiative and reported on the number
and types of requests received. Mr. Goldsmith asked members for guidance regarding the type of
information that should be included when the requests for adjustments over $200 are presented to theBoard in April. Members discussed the information that they would like to see with these requests andalso asked staff to study whether a training component should be required for larger balanceadjustments.
Board direction on staff inquiries related to expenditures
Mr. Goldsmith presented members with a memorandum on this issue that is attached to and made apart of these minutes. Mr. Goldsmith told members that because expenditures now are entered into theBoard’s databases, staff is discovering more expenditures that could be reported incorrectly or
incompletely. Mr. Goldsmith said that staff was seeking direction regarding how to proceed when thesetypes of expenditures were discovered.
After discussion, the following motion was made:Member Rosen’s motion:

To lay this matter over to the next meeting.

Vote on motion:

A roll call vote was taken. All members voted in theaffirmative.

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Page - 3 Minutes
March 1, 2016
Board direction on 2016 EIS late filing fees
Mr. Goldsmith presented members with a memorandum on this issue that is attached to and made apart of these minutes. Mr. Goldsmith told members that some public officials did not receive formal
notice of the late fee for annual statements of economic interest. Mr. Goldsmith said that the proposed
resolution would ensure that these officials did not incur late fees until after they had received thisformal notice.
After discussion, the following motion was made:Member Leppik’s motion:

To approve the following resolution:

Resolved, that late filing fees will be imposed on late filers of the 2015 annual statement of
economic interest only after they have been sent a written notice that the statement was late
and that late filing fees would begin to accrue if the statement was not filed by the date specified
in the notice.
Vote on motion:

A roll call vote was taken. All members voted in theaffirmative.

Approval of annual report
Mr. Sigurdson presented members with a copy of the draft annual report that is attached to and made apart of these minutes. Mr. Sigurdson told members that the annual report is statutorily required andthat it included information about the 2014 elections. Members asked that the chairs of the policy
committees with jurisdiction over the Board be added to the cover letter that submits the report to thegovernor and the legislature.
After discussion, the following motion was made:Member Oliver’s motion:

To approve the annual report as drafted.

Vote on motion:

A roll call vote was taken. All members voted in theaffirmative.

Board information pamphlet
Mr. Sigurdson presented members with a Board information pamphlet that is attached to and made apart of these minutes. Mr. Sigurdson said that the pamphlet was prepared at the chair’s request andthat it was intended to be a quick reference guide for members to important Board information.

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March 1, 2016
Rules of procedure for Board meetings
Mr. Goldsmith presented members with a summary version and a complete version of the rules ofprocedure for Board meetings that are attached to and made a part of these minutes. Mr. Goldsmithstated that the Board operates under a modified version of Mason’s Manual of Legislative Procedure.
ADVISORY OPINIONS
Advisory Opinion 442 – Costs of constituent services
Mr. Sigurdson presented members with a brief memorandum on this matter that is not attached to or
made a part of these minutes because it identifies the requester. Mr. Sigurdson reviewed the questions
submitted by the requester and the proposed answers in the draft advisory opinion. Members thendiscussed the prohibition on corporate contributions and how that prohibition applies to limited liability
companies under Minnesota law.
After discussion, the following motions were made:Member Greenman’s motion:

To amend the second paragraph on page 6 of the revised
staff draft of the proposed advisory opinion 1) to strike thefirst “or” in the first sentence in the paragraph; 2) to add acomma after the word “allowed” at the end of the first
sentence; and 3) to add the following language to the endof the first sentence, “or if the use of the corporate
resources is more than minimal and infrequent.”

Vote on motion:

A roll call vote was taken. Member Rosen abstained. Allother members voted in the affirmative.

Member Sande’s motion:

To amend fact number 1 on page 1 of the revised staff
draft of the proposed advisory opinion to strike the word
“corporation” and replace it with the word “company.”

Vote on motion:

A roll call vote was taken. Member Rosen abstained. Allother members voted in the affirmative.

Member Greenman’s motion:

To amend the revised staff draft of the proposed advisory
opinion to delete the last paragraph on page 4 and the firsttwo lines on page 5.

Vote on motion:

A roll call vote was taken. Member Rosen abstained. Allother members voted in the affirmative.

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Page - 5 Minutes
March 1, 2016
Member Greenman’s motion:

To adopt the revised staff draft of the proposed advisory
opinion as amended.

Vote on motion:

A roll call vote was taken. Member Rosen voted no. Allother members voted in the affirmative.

Partial revocation of Advisory Opinion 400
Mr. Goldsmith presented members with a memorandum on this matter that is attached to and made apart of these minutes. Mr. Goldsmith told members that there was a broad statement in Advisory
Opinion 400 that went beyond the scope of the questions presented and that could mislead people into
believing that action described would always qualify for independent expenditure treatment.
After discussion, the following motion was made:Member Greenman’s motion:

To adopt the following resolution:

Resolved, that the Campaign Finance and Public Disclosure Board amends Advisory Opinion
400, issued July 22, 2008, by deleting the following statement:
Use by one of a consultant’s clients of material produced by the consultant for another client
does not result in cooperation or coordination between the clients if the material has been
published by the producer and the second client obtains the material from public sources.
Vote on motion:

A roll call vote was taken. Member Rosen voted no. Allother members voted in the affirmative.

ENFORCEMENT REPORT
A.
1.

Discussion Items
Request for balance adjustment before termination – 5th Senate District DFL (20494).

Mr. Fisher told members that due to redistricting, the 5th Senate District DFL party unit wasreconstituted as the St. Louis County DFL (St. Louis 06). The chair and treasurer of the 5th Senate
District DFL assumed those roles for the new party unit. The 5th Senate District DFL transferred all of
its funds to the St. Louis County DFL (St. Louis 06) but the amount transferred was reported differently
by the two party units on their 2012 reports. Mr. Fisher said that the chair and the treasurer initiallyworked to amend the reports on their own but were unsuccessful due to other issues with the reports,
the chair’s health problems, and the treasurer’s out-of-state employment. Staff therefore began to work
more closely with the chair and treasurer on the amended reports and these officers provided the party
units’ 2012 bank records for verification of the reported transactions.
Mr. Fisher said that the bank records revealed that the 5th Senate District DFL had approximately$3,000 more in its bank account than it had reported on its 2012 report. Examining previous records
showed that the discrepancy dated back at least until 2006 and probably was caused by a previous
treasurer’s belief that certificates of deposit purchased by the party unit were not party unit assets until
they were cashed. Mr. Fisher stated that the bank records showed that all of the money in the 5th-5-Page - 6 Minutes
March 1, 2016
Senate District DFL’s bank account was transferred to the St. Louis County DFL (St. Louis 06) and that
there was no evidence of any improper use of the party unit’s funds. Mr. Fisher said that both party
units had filed amended reports that accurately reflected the transfer and their other transactions. Mr.
Fisher said that the 5th Senate District DFL was asking the Board to adjust its 2012 beginning cash
balance from $8,221.23 to $11,523.04. Mr. Fisher stated that if the adjustment was granted, the party
unit’s 2012 ending cash balance would be zero and it would be able to terminate its registration.
After discussion, the following motion was made:2.

Member Leppik’s motion:

To approve the 5th Senate District DFL’s request to adjustits 2012 beginning cash balance from $8,221.23 to$11,523.01.

Vote on motion:

A roll call vote was taken. All members voted in theaffirmative.

Request to withdraw lobbyist registration – Benjamin Skjold.

Mr. Fisher told members that on April 15, 2015, Mr. Skjold registered on behalf of the North American
High Speed Rail Group, LLC with the belief that he would lobby on its behalf. However, Mr. Skjold
never undertook any lobbying efforts on behalf of the association, was never paid by the association,and never made any disbursements for lobbying purposes. Mr. Fisher said that because Mr. Skjold
was not required to have been registered as a lobbyist on the association’s behalf, he was asking towithdraw his lobbyist registration. Mr. Fisher stated that Mr. Skjold had yet to file a lobbyist report forthe second half of 2015 and that any late filing fee that would otherwise accrue on this report would be
waived if the request was granted.
After discussion, the following motion was made:Member Rosen’s motion:

To approve Benjamin Skjold’s request to withdraw hislobbyist registration.

Vote on motion:

A roll call vote was taken. All members voted in theaffirmative.

3.
Request to terminate with a cash balance in excess of $100 and waive late filing fees –Tom Huntley Volunteer Committee.
Mr. Fisher told members that this committee registered with the Board on November 12, 1991. After
working with Board staff to correct certain math errors on a prior report, the committee filed anamended 2014 year-end report on February 22, 2016. The report listed an ending cash balance of$427.75 as of 12/31/2014. However, at that time the committee had only $34.19 in its campaign
account. Mr. Fisher stated that the committee had forwarded its remaining $34.19 to the state and was
asking the Board to allow it to terminate with a cash balance in excess of $100 and to waive a late filingfee of $1,000 that had accrued for failure to file the amended 2014 year-end report.

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March 1, 2016
After discussion, the following motion was made:Member Rosen’s motion:

To approve the request of the Tom Huntley Volunteer
Committee to terminate with a cash balance in excess of$100 and to waive the $1,000 in late filing fees.

Vote on motion:

A roll call vote was taken. All members voted in theaffirmative.

B. Waiver requests
Roll call votes were taken on all motions. The results are listed in the “Vote on Motion” column.
Name of
Candidate orCommittee

Late
Fee &
Civil
PenaltyAmountReason for
Fine

Factors for waiver

DFL Senior
Caucus$200
LFF

2/1/2016
Year-end

Treasurer was in a health care facility at
the filing deadline.

AitkinCounty DFL
Club

$150
LFF

2/1/2016
Year-end

Treasurer had major health issues.

AbelerVolunteer
Committee

$150
1
LFF

1/5/2016
Spec. Elec.
Pre-primary

Issues with special election databasecaused data issues that had to becorrected by Board I.T. staff.
Principal association informed Board
staff in December that it would forward
notice to terminated lobbyist.
Association later informed Board staff, as
the deadline neared, that it had no recordof the notice, contrary to the previous
conversation, and therefore had not sent
it on to Ms. Mueller. Staff sent a new
copy of the notice on 1/14/2016 andreport was filed on 1/20/2016.
Treasurer stated that she attempted tofile report prior to deadline but apparently
failed to upload the file. Board logs show
activity in software on 1/29/2016.

Jan Mueller

$50
LFF

1/15/2016
Lobbyist
ReportChild
Protection
League PAC

$175
LFF

2/1/2016
Year-end

ZAP 35(Zachary
Phelps)$50
LFF

2/2/2016
Spec. Elec.
Pre-general

Report was sent via email at 12:03am on
2/3/2016.

2/1/2016
Year-end

Committee did not amend its registeredtreasurer after a new individual assumed
the role. New registration with current
treasurer was received on the filingdeadline (2/1/2016). On 2/1/2016, the
new treasurer attempted to email a55th Senate
District DFL

1

$175
LFF

Board
Member’s
MotionMotionVote on Motion

Member

To waive thePassedLeppiklate filing fee.

unanimously.

Member

To waive thePassedLeppiklate filing fee.

unanimously.

Member

To waive thePassedLeppiklate filing fee.

unanimously.

Member

To waive thePassedLeppiklate filing fee.

unanimously.

Member

To waive thePassedRosenlate filing fee.

unanimously.

Member

To waive thePassedRosenlate filing fee.

unanimously.

Member

To waive thePassedLeppiklate filing fee.

unanimously.

LFF has already been paid by the Aber Volunteer Committee. The granted waiver will act as a reimbursement.
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March 1, 2016

Friends of
Todd
Mikkelson$50
LFF

2/1/2016
Year-end

WilkinCounty DFL

$25
LFF

2/1/2016
Year-end

Helm forHouse
Volunteer
Committee

$250
LFF

2/1/2016
Year-end

Matt Saam$20
LFF

2/8/2016
EIS

Minnesota
for Marriage

$150
LFF

2/1/2016
Year-end

HubbardCountyRepublicans

$200
LFF

2/1/2016
Year-end

Mary Deeg$10
LFF

2/8/2016
EIS

Mark
Giancola for
Hennepin
Judge

$300
LFF

2/1/2016
Year-endreport to cfb.reoirts@state.mn.us. The
correct address is
cfb.reports@state.mn.us. The email was
corrected and a report was received by
the Board on 2/10/2016.
Committee mistakenly filed an amended
2014 year-end report on 1/29/2016,
instead of the required 2015 year-end
report.
Treasurer faxed reconciliation worksheet
to Board on the filing deadline under the
belief that he was submitting the proper
report.
Candidate stated that he mailed a reporton 1/11/2016. No report was received at
the Board’s offices. A no-change report
was received on 2/16/2016. Candidate
plans to terminate committee.
Individual changed jobs in late 2015.
Notice was mailed on 12/29/2015 to theaddress the official listed on his EIS
statement.
Committee did not believe that it was stillregistered and therefore did not believethat a report was required. The Board
mailed the filing bulletin to the treasurer
at the registered address on 12/28/2015.
Treasurer moved out of state and theparty unit did not update its treasurer
information. The Board mailed the filingbulletin to the treasurer at the registeredaddress on 12/28/2015.
Official’s ex-employer forwarded notice
to her in January. On 1/25/2016, thedeadline for filing, individual was unable
to gain access to the filing system.
Because she attempted to file after
business hours she could not reach
Board staff by phone. Official assumed
that access to filing system was nolonger available because of deadline.
She did not try to file again until she
received an email from Board staff on
2/9/2016.
Candidate believed that staff sent reporton 1/6/16. Candidate did not receive
phone call prior to deadline that report
had not been received because he wason vacation.

Member

To waive thePassedRosenlate filing fee.

unanimously.

Member

To waive thePassedRosenlate filing fee.

unanimously.

MemberRosen

To reduce thelate filing fee to$100.

Passedunanimously.

No
motion.

MemberRosen

To reduce thelate filing fee to$46.

Passedunanimously.

No
motion.

Nomotion.

Nomotion.

Informational Items
A. Payment of a late filing fee for 2015 Special Election Pre-primary Report of Receipts andExpenditures:
Jim Abeler Volunteer Committee, $150

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Page - 9 Minutes
March 1, 2016
B. Payment of a late filing fee for 2015 Year-end Report of Receipts and Expenditures:
Byron Kuster for MN House, $25
Thomas Lofgren for MN 20A, $25
Vote for Loonan (Robert), $50
Mark Olson Volunteer Committee, $25
Sandy Pappas for Senate, $25
Friends of Lizz Paulson, $25
Steve Simon for Secretary of State, $25
C. Payment of a late filing fee for January 15, 2016, Lobbyist Disbursement Report:
Wendy Meadley, North Amer. High Speed Rail, $100
Roger Smith, American Citizen, $25
D. Payment of a civil penalty for misuse of committee funds:
Tim Manthey, $200 December payment
E. Payment of a civil penalty for failure to timely register as a lobbyist:
Michael Jerich, City of Virginia, $375
Ronald Jerich, City of Virginia, $650
Valerie Jerich, City of Virginia, $650
F. Payment of a civil penalty for exceeding the 2009 special source aggregate contribution
limit for House of Representatives:
Bev Scalze Volunteer Committee, $50
G. Deposit to the General Fund, State Elections Campaign Fund:
Volunteers for Sheldon Johnson, $100 (anonymous, couldn’t determine source)
Julie Rosen for State Senate, $300 (anonymous, couldn’t determine source)
LEGAL COUNSEL’S REPORT
Mr. Hartshorn had nothing to add to the report given to members that is attached to and made a part ofthese minutes.
MINUTES (January 15, 2016)
After discussion, the following motion was made:Member Leppik’s motion:

To approve the January 15, 2016, minutes as drafted.

Vote on motion:

A roll call vote was taken. Member Greenman abstained.
All other members voted in the affirmative.

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March 1, 2016
OTHER BUSINESSThere was no other business to report.
EXECUTIVE SESSION
The Chair recessed the regular session of the meeting and called to order the executive session. Upon
recess of the executive session, the regular session of the meeting was called back to order and the
Chair had nothing to report into regular session.
There being no other business, the meeting was adjourned by the Chair.
Respectfully submitted,

Gary Goldsmith
Executive Director
Attachments:
Memorandum regarding review of bank reconciliation initiative
Memorandum regarding Board direction on staff inquiries related to expenditures
Memorandum regarding Board direction on 2016 EIS late filing fees
Draft annual report
Board information pamphlet
Rules of procedure for Board meetings
Proposed Advisory Opinion 442 as revised by staff
Memorandum regarding partial revocation of Advisory Opinion 400
Legal report- 10 -

Minnesota

Campaign Finance andPublic Disclosure Board
Date: February 23, 2016
To:

Board Members

From: Gary Goldsmith, Executive Director
Re:

Telephone: 651-539-1190

Requests for one-time balance adjustments

In 2015, the Board began a gentle roll-out of a multi-year program aimed at getting all campaign
finance committees and funds to the point where their reported year-end cash balances
reconcile to their year-end bank statements. A bulletin on the subject and a reconciliation form
were attached to the reporting notices mailed out in December. Committees were asked toreturn the completed reconciliation form along with a copy of a year-end bank statement but
participation was voluntary. Committees with balances that did not reconcile could ask for a
one-time balance adjustment. At the December meeting, the Board authorized the executive
director to grant one-time balance adjustments of up to $200.
The response to the reconciliation request was very positive. Many treasurers expressed their
thanks for the opportunity to balance their accounts. The following table shows the requests
made and granted by type of entity.

Accounts balance - withbank statement
Accounts balance – no bankstatement
Request for adjustment of
up to $200 – all granted
Request for adjustment ofover $200 –pending
Total

Candidates
27

Committees and Funds
21

Party Units
61

Total
109

4

3

7

14

28

9

12

49

6

2

2

10

65

35

82

182

The requests for adjustment over $200 are pending while staff seeks input from the Board on
the issues listed below. Staff expects to bring the requests before the Board at the April
meeting. In doing so, staff will provide a brief evaluation of each request. To assist in its
evaluations, staff requests that the Board discuss the following factors that may arise in balanceadjustment requests.
1.
In evaluating an adjustment request, how much weight, if any, should be given to theamount of work done by the committee to determine why the accounts are off; the length of time
the committee has been in existence; and the size of the discrepancy.
2.
Typically, when a committee has more money in the bank than disclosed on its report
and the committee cannot explain where the money came from, the excess funds are deemed
to be an anonymous contribution and the committee is required to forward the excess to thestate. Some requests for an adjustment of $200 or less involved committees that could not
explain why they had more money in the bank than disclosed on their reports. Their adjustment
requests were granted under the authority delegated to the executive director. In addition, twocommittees chose to forward their excess funds to the state so that they would no longer have abalance discrepancy or so that the discrepancy would be less than $200. Some of thecommittees requesting adjustments over $200 also have more money in their bank accounts
than disclosed on their reports and have not explained where these funds came from. Should
these committees be required to forward all, some, or none of the excess funds to the state asanonymous contributions? What criteria should be used to determine the amount, if any, to be
forwarded?
3.
Are there any other factors that should be considered when evaluating the requests foradjustments of over $200?
Attached:
Balance adjustment bulletin-2-Minnesota

Campaign Finance andPublic Disclosure Board
Date: February 23, 2016
To:

Board members

From: Gary Goldsmith, Executive Director
Re:

Telephone: 651-539-1190

Review of expenditures on filed reports

Minnesota Statutes section 10A.022, subdivision 1, provides:
The executive director must inspect all material filed with the board as
promptly as necessary to comply with this chapter. . . . The executive
director must immediately notify an individual if a complaint is filed with theboard alleging, or if it otherwise appears, that a document filed with the board
is inaccurate or does not comply with this chapter, or that the individual . . .
has failed to comply with this chapter or other provisions under the board's
jurisdiction . . .
The Executive Director complies with this requirement through staff activities that include aformal computerized review of each filed report, through the development of data queries to
identify non-typical transactions, and through staff review of individual reports.
Transactions that suggest a possible violation of Chapter 10A typically fall into three broad
categories: (1) transactions that result from reporting errors or omissions that may be remediedby amending the subject report, (2) transactions that appear to be correctly reported but
represent a likely violation, and (3) transactions that fall out of the normal range of activity forsimilar committees but may be legal, depending on facts that cannot be discovered by review ofthe filed report. The purpose of this memo is to review how these three types of transactions
are addressed by staff and to seek Board guidance on handling the third type of transaction.
The Executive Director handles transactions of the first type routinely by initiating a preliminary
inquiry. A preliminary inquiry is not a form of investigation, but simply a request that the filer
review the report and file an amendment to correct any deficiencies. If the matter is resolved
through the filing of an amendment, no further action is taken and the matter never reaches theBoard for action.
The Executive Director most often handles transactions of the second type by initiating a staff
review. A staff review is an informal investigation. Because it is a form of investigation, all of
the confidentiality provisions of Chapter 10A apply. Staff reviews are presented to the Board
each month on a report of open investigations. A staff review is typically resolved by anagreement between the filer and the Board. Matters that are under staff review do not usually
involve significant questions of fact and the violation is seldom contested by the filer.

It is not unusual for a matter that begins as an preliminary inquiry to be elevated by the
Executive Director to a staff review. This occurs when information provided as a result of theinquiry suggests that a violation, rather than simply a reporting error or omission, has occurred.
When a matter under preliminary inquiry is elevated to a staff review, it becomes subject to theconfidentiality provisions of Chapter 10A. Since a preliminary inquiry is not confidential, thismay give rise to a situation where the Executive Director will be required to inform a third party
that the matter has changed in posture and that the confidentiality provisions of Chapter 10A
prohibit the Executive Director, staff, or the Board from providing further information about thematter.
The paragraphs below set forth generic examples of the types of transactions that fit into thisthird category and on which staff seeks direction. These examples are not from specific reports,
but are composites of the types of things seen on reports.
1. Mileage reimbursements. Example: the report shows a significant mileage reimbursement,
usually at the end of the year, and often in a large round number, such as $1,000, $1,500, etc.
While the reimbursement may be completely appropriate, the amount, timing, and roundnumber suggest that it was not a reimbursement made on a regular basis, such as monthly, andfurther suggest that it does not represent a calculated amount that would reimburse thecandidate at either the IRS rate or at actual costs.
2, Other reimbursements. Example: A candidate reimburses herself for various expenses, but
the reimbursements are typically in round numbers, such as $50, $100, when the expense
being reimbursed would not typically be in a round amount.
3. Noncampaign disbursements for purposes that are inconsistent with the timing of thenoncampaign disbursement. Example: Significant purchases of food for volunteers while
campaigning during a time when active campaigning would probably not be taking place.
4. Telephone expenses. Example: Telephone service expenses that are higher than a typicalindividual plan, even with data and other features.
5. Office rental. Example: Candidates occasionally rent office space for constituent services
offices or candidate offices. Since office space rental is unusual, the Board may want the
Executive Director to inquire in each such case to ensure that the use of campaign money ispermitted for the purpose and that the cost is properly reported.
Beginning with the reports for 2014, expenditures have been captured in the Board's databasesystems. This has resulted in more examination of expenditures by outside parties and also
makes examination by staff easier. After the filing of the 2015 year-end reports, staff had
several inquiries by outside parties about specific expenditures. At least two articles on thesubject have been published.
The question is: "To what extent should the Executive Director initiate preliminary inquiries when
expenditures that raise questions are encountered on reports?"
Now that expenditures are captured in the Board's databases, staff has a tool that would allow
the Board be more proactive in its examination of expenditures by registered entities. However,the Executive Director requests Board input on the subject so that staff can implement anapproach that the Board supports.

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Any approach that relies on staff examination of reports and that results in more inquiries will
add to the staff workload. However, the Executive Director believes that as the website project
winds down over the next several months, staff resources can be devoted to better expenditurecompliance without adversely affecting the Board's overall operations or its ability to provide
service to its customers.
One approach to this issue could be as follows:
To the extent that resources are available without adversely affecting the Board's overall
operations or its customer service, the Executive Director should examine expenditures
reported on campaign finance reports and initiate preliminary staff inquiries in cases where
expenditures are inconsistent with the Board's experience with similarly situated filers orotherwise raise a question about the propriety of the expenditure or the accuracy of its reporting.
It is the Board's intent that the Executive Director exercise his discretion to initiate preliminary
inquiries liberally in the interest of ensuring that campaign finance money is used for the
purposes permitted by law and that its use is accurately reported. In cases where appropriate,
the Executive Director should elevate preliminary inquiries to staff reviews.

-3-Minnesota

Campaign Finance andPublic Disclosure Board
Date: February 23, 2016
To:

Board members

From: Gary Goldsmith, Executive Director
Re:

Telephone: 651-539-1190

Late fees for 2015 EIS annuals

In the past, a public official was required to submit an annual statement of economic interest(EIS) only if something on the official’s previous statement had changed. Last year, thelegislature amended this provision to require all public officials to review and recertify theirstatements annually even if nothing on them had changed. The legislature also moved the due
date for the annual EIS from April 15th to the last Monday in January which this year was
January 25th.
A late filing fee of $5 per business day may be imposed beginning the 10th business day after
the statement was due. The Board's longstanding policy is that late filing fees are imposed
without individual Board action as soon as they are available under the relevant statute.
On December 28, 2015, a letter was sent to all public officials required to file the annual EIS
notifying them of the January 25, 2016, due date for this statement.
In all programs, staff attempts to contact filers with outstanding reports shortly before the filingor late fee date to ensure that they know about the deadline and the potential late fee. Thisoutreach typically is done by both telephone and email.
Due to the changes to the annual EIS requirement, staff conducted additional outreach for thisreport. Public officials who had not yet filed and who had email addresses were sent email
notices on January 19, 2016, and January 25, 2016, telling them of the due date and thepotential late fee. These officials also received a letter dated January 28, 2016, and atelephone call on February 4, 2016, telling them that the late fee would start on February 9,
2016, if they did not file.
The process used to provide heightened outreach to public officials with email addresses,
however, inadvertently resulted in the exclusion of 83 public officials who did not have email
addresses from the additional outreach by telephone and through the January 28 letter. These
officials received only the pre-filing letter dated December 28, 2015.
Staff recognized this omission on February 10, 2016, and in the process also identified another32 officials who were not provided additional outreach because they had left office in 2015.
The omitted officials were immediately sent letters notifying them that the annual EIS was past
due and that a late fee could be imposed if the statement was not filed by February 22, 2016.
The date for late filing fee accrual specified in the letter was the first business day that was 10days after the date of the letter; an approach intended to give this group notice approximately
equivalent to that given to other officials before a late filing fee was imposed. Staff also

telephoned these officials on either February 18th or 19th to remind them of the deadline and thelate fee.
Because of the irregularities in notice given to the subject 105 officials, staff recommends thatthe Board impose late filing fees for this group beginning on February 23, 2016, rather than on
the original late fee accrual date for the statement. The following resolution would effect thatapproach:Resolved, that late filing fees will be imposed on late filers of the 2015 annual statementof economic interest only after they have been sent a written notice that the statement
was late and that late filing fees would begin to accrue if the statement was not filed by
the date specified in the notice.

-2-

Report of the Minnesota Campaign
Finance and Public Disclosure Board

Covering Fiscal Year 2015
July 1, 2014 - June 30, 2015

Issued: March 1, 2016
CAMPAIGN FINANCE and PUBLIC DISCLOSURE BOARD
Suite 190, Centennial Building
658 Cedar Street
St. Paul MN 55155-1603
Telephone: 651-539-1180 or 800-657-3889
Fax: 651-539-1196 or 800-357-4114
Email: cf.board@state.mn.us
Website: http://www.cfboard.state.mn.us
This document is available in alternative formats to individuals with disabilities by calling 651-539-1180, 800-657-3889,
or through the Minnesota Relay Service at 800-627-3529.

ii

Minnesota

Campaign Finance andPublic Disclosure Board
DATE:

March 1, 2016TO:

The Honorable Mark Dayton, Governor
The Honorable Sandra Pappas, President of the Senate
The Honorable Thomas Bakk, Senate Majority Leader
The Honorable Kurt Daudt, Speaker of the House
The Honorable Joyce Peppin, House Majority Leader
The Honorable David Hann, Senate Minority Leader
The Honorable Paul Thissen, House Minority Leader

FROM:

Christian Sande, Chair
Campaign Finance and Public Disclosure Board

SUBJECT:

Report of Board activities during fiscal year 2015 (July 1, 2014, through June 30, 2015)

Pursuant to Minnesota Statutes section 10A.02, subdivision 8 (a), the Campaign Finance and Public
Disclosure Board submits this report of the Board’s activities during fiscal year 2015.
The Board, consistent with its objectives and administrative procedures, provided guidance to thethousands of individuals and associations whose disclosure of certain political, economic interest, andlobbying activities is regulated by the Campaign Finance and Public Disclosure Act, Minnesota Statutes,
Chapter 10A.
Included in this report is information about the campaign finance disclosure, the filing of lobbyist
disbursement and lobbyist principal reports, and the filing of statements of economic interest by public
officials.
Throughout its activities the Board strives to accomplish its mission; which is to promote public confidence
in state government decision-making through development, administration, and enforcement of disclosure
and public financing programs and ensure public access to and understanding of information filed with theBoard.
We recognize the importance the State of Minnesota places on public disclosure laws and the regulationof campaign finance activity and appreciate the trust placed in the Board and its staff by the Legislatureand the Office of the Governor.

iii

TABLE OF CONTENTSEXECUTIVE SUMMARY .......................................................................................................................... 1
INTRODUCTION TO THE BOARD .......................................................................................................... 2
Board Member Qualifications ....................................................................................................... 3
Board Members - July 1, 2014, through June 30, 2015 ............................................................... 3
Summary of Board Activities ........................................................................................................ 7
Education and Training Outreach ................................................................................................ 9
PROGRAM REVIEWS .............................................................................................................................. 10
CAMPAIGN FINANCE PROGRAM .......................................................................................................... 11
Program Overview ....................................................................................................................... 11
Legislative Action ......................................................................................................................... 11
Rulemaking .................................................................................................................................. 14
Campaign Finance Litigation ....................................................................................................... 14
Campaign Finance Disclosure Reports Filed............................................................................... 15
Electronic Filing of Reports .......................................................................................................... 15
Public Subsidy Payments............................................................................................................. 16
Political Contribution Refund Program ......................................................................................... 17
Political Party Payments .............................................................................................................. 17
Campaign Finance Enforcement Actions..................................................................................... 17
LOBBYIST PROGRAM ............................................................................................................................. 18
Program Overview ....................................................................................................................... 18
Legislative Action ......................................................................................................................... 18
Lobbyist Disbursement Reports ................................................................................................... 19
Principal Expenditures ................................................................................................................. 19
Lobbyist Program Enforcement Actions ....................................................................................... 19
ECONOMIC INTEREST PROGRAM ........................................................................................................ 20
Program Overview ....................................................................................................................... 20
Legislative Action ......................................................................................................................... 20
OTHER BOARD PROGRAMS .................................................................................................................. 21
Potential Conflict of Interest ......................................................................................................... 21
Advisory Opinions Issued............................................................................................................. 21
STAFF DUTIES ......................................................................................................................................... 22
Staff Salaries ................................................................................................................................ 24
BOARD FINANCIAL INFORMATION ....................................................................................................... 24
Board Operating Budget .............................................................................................................. 25
Penalties Paid for Late Filing of Disclosure Reports and Other Violations of Chapter 10A ........ 26iv

EXECUTIVE SUMMARY
The Campaign Finance and Public Disclosure Board is charged with the administration of the Campaign
Finance and Public Disclosure Act, Chapter 10A of Minnesota Statutes. During fiscal year 2015, the Board
focused on the administration and enforcement of Chapter 10A during a state election year. The Board also
positioned itself to provide better web based access to disclosure records and other information to the public
and the regulated community in the years ahead.
For the 2014 – 2015 biennium the legislature appropriated additional funds to the Board in part to support
technology projects, including a redesigned website. During fiscal year 2015 the Board surveyed clients
about the features on its website that worked, and that didn’t work, in order to identify the needs of regularusers of the site. The legislature re-appropriated $150,000 remaining at the end of fiscal year 2015 into the2016 – 2017 biennium to support the development of the new website.
The Board has long recognized that providing training to candidates and treasurers on the provisions ofcampaign finance law is a key to ensuring compliance with the requirements of Chapter 10A. To meet theneeds of individuals who cannot fit traditional classroom training into their schedules, the Board developed
five training videos on various sections of campaign finance law during fiscal year 2015. These compliance
videos are available on the Board’s website and supplement nine short “how to” videos on using theCampaign Finance Reporter software.
The Board issued $2,429,596 in public subsidy payments to eligible candidates in the 2014 state generalelection. The amount paid by office and party and other information on the public subsidy program isavailable on page 17. A summary of the Board’s legislative recommendations for the campaign financeprogram that were enacted in fiscal year 2015 starts on page 11.
About 1,450 lobbyists were registered with the Board at any one time throughout the fiscal year. The
lobbyists represented about 1,400 principals. The principals reported total expenditures of $70,406,472 incalendar year 2014. Additional information on the lobbyist program is found on page 18.
The economic interest disclosure program requires public officials in approximately 2,800 positions to fileeconomic interest statements with the Board. This number will grow significantly as legislation passed in2013 takes effect to add judges and county commissioners elected on or after January 1, 2014, to the list of
public officials who file with the Board. Details on the economic interest disclosure program are found on
page 20.
During the fiscal year, the Board held ten scheduled meetings and one special meeting. During the meetings
the Board issued one advisory opinion; reviewed and approved forty-three agreements to resolve violations of
Chapter 10A, and issued three findings to conclude investigations.
The Board looks forward to building on its accomplishments in fiscal year 2015 to further improve the services
provided to the regulated community and to the public.

1

INTRODUCTION TO THE BOARD
Authority

The Campaign Finance and Public Disclosure Board wasestablished by the state legislature in 1974 through enactment of
Chapter 10A of the Minnesota Statutes. Throughout its history the
Board has enforced the provisions of Chapter 10A, promulgated andenforced Minnesota Rules 4501 through 4525, and issued advisory
opinions to guide clients in meeting the chapter’s requirements.
New authority was given to the Board in 2013, which extended theBoard's jurisdiction to three sections of Chapter 211B. Thosesections are (1) 211B.04, which governs the “prepared and paid for”
form of disclaimer, (2) 211B.12, which specifies the purposes forwhich campaign money may be legally used, and (3) 211B.15,
which governs corporate contributions. The new authority is limited
to those individuals and associations already under the Board’s
jurisdiction under Chapter 10A. The Board’s new jurisdiction meansthat it may conduct investigations of possible violations of thesestatues and may also issue advisory opinions on these provisions.

Mission Statement

To promote public confidence in state government decision-making
through development, administration, and enforcement of disclosure
and public financing programs which will ensure public access toand understanding of information filed with the Board.

FunctionsCore functions of the Board include administration and managementof the:• registration and public disclosure by state legislative,
constitutional office, and judicial office candidates, political party
units, political committees, and political funds;• state public subsidy program that provides public funding toqualified state candidates and the state committees of politicalparties;• registration and public disclosure by lobbyists and principals
attempting to influence state legislative action, administrative
action, and the official action of metropolitan governmental units;• disclosure of economic interest, conflicts of interest, andrepresentation of a client for a fee under certain circumstances
for designated state and metropolitan governmental unit
officials.

2

Goals and Objectives•••

Board and Staff

Create better compliance with the Campaign Finance and Public
Disclosure Act by moving to an educational model in which
providing easy to access information and training reduces thenumber of violations.
Provide fair and consistent enforcement of the Act.
Help citizens become better informed about public issues
related to the Act.

•

The Board consists of six members, none of who may be an
active lobbyist, a state elected official, or an active candidate
for state office. The Board is not non-partisan; rather it is multipartisan, with no more than three of the members of the Board
supporting the same political party.

•

The Board was able to maintain eight full time and one parttime equivalent positions during the fiscal year. Additional
information about Board staff is found beginning on page 22.

Board Member Qualifications
The Board consists of six citizen members who are responsible for the administration of the Campaign
Finance and Public Disclosure Act. Members of the Board are appointed by the Governor to staggered fouryear terms. Their appointments must be confirmed by a three-fifths vote of the members of each body of thelegislature. Two members must be former members of the legislature who support different political parties;
two members must be persons who have not been public officials, held any political party office other than
precinct delegate, or been elected to public office for which party designation is required by statute in thethree years preceding the date of their appointment; and the other two members must support different
political parties. The Board holds regular monthly meetings, which are open to the public and executive
session meetings which are closed to the public.

Board Members - July 1, 2014, through June 30, 2015
Carol Flynn

Carol Flynn was appointed to the Board in Februaryof 2015 by Governor Dayton for a term ending inJanuary of 2019. She fills a Board position requiring
a former DFL legislator. Flynn served as a state
senator from 1990-2000 where she was Majority
Whip and Chaired the Judiciary and Transportation
Committees. She studied at the University of
Minnesota. A retired public employee, shevolunteers on the Minneapolis Transportation
Management Organization and as Vice President of
the Loring Green West Association Board.

3George Beck
George Beck was appointed to the Board in
February of 2012 by Governor Mark Dayton for aterm ending in January of 2016. He fills a Board
position requiring a member who has not been apublic official, held any political party office otherthan precinct delegate, or been elected to public
office for which party designation is required bystatute in the three years preceding the member's
appointment. Judge Beck is a retired administrative
law judge who served in that position for nearly 30
years. He presently works as an arbitrator with theAmerican Arbitration Association and also serves on
the Hennepin County Human Resources
Board. Judge Beck holds a BA degree from the
University of Chicago and a JD degree from the
University of Minnesota Law School.

Ed Oliver
Ed Oliver was appointed in June of 2013 by
Governor Dayton for a term ending in January of
2017. He fills a Board position that has norestrictions on previous political activities. Mr. Oliver
was a member of the Minnesota State Senate from1993 - 2002, and served as an Assistant Minority
Leader from 1998 - 2002. Mr. Oliver is an arbitrator
with FINRA Dispute Resolution, Inc., and is ownerand president of Oliver Financial. He currently
serves on the board of the Friends of the Mississippi
River, and previously served on the Minnesota
State Arts Board and as a member of the Great
Lakes Commission. Mr. Oliver is a University of
Minnesota, College of Liberal Arts graduate where
he was awarded a Bachelor of Arts degree with amajor in economics.

4

Margaret Leppik
Margaret (Peggy) Leppik was appointed to theBoard in May of 2015 by Governor Dayton for aterm ending in January of 2016. She fills a Board
position requiring a former Republican legislator.
Leppik served as a state representative from 19912003 where she chaired the Higher Education
Finance Committee. She served on the
Metropolitan Council from 2003-2011 where she
was vice chair for three years and chaired theEnvironmental Committee. A graduate of Smith
College, Leppik is an active volunteer for numerous
nonprofit organizations.

Christian Sande
Christian Sande was appointed by Governor Dayton
to the Board in October 2013, and re-appointed in
February 2015. His current term expires in January
2019. He occupies a Board position for a member
who has not been a public official, held any politicalparty office other than precinct delegate, or been
elected to public office for which party designation isrequired by statute in the three years preceding themember's appointment. Mr. Sande is an attorney inprivate practice focusing on securities fraud
litigation and antitrust and consumer fraud classactions. He is a member of the Minnesota andWashington State Bar Associations and the Public
Investors Arbitration Bar Association. He is a
graduate of Hamline University College of Liberal
Arts and William Mitchell College of Law. He
volunteers as a GED Tutor at the Open Door
Learning Center in North Minneapolis and is avolunteer judge for the Minnesota State Bar
Association's high school mock trial program.

5

Daniel N. Rosen
Daniel N. Rosen was appointed in July, 2014, byGovernor Dayton for a term ending in January of
2018. He fills a Board position requiring a member
who has not been a public official, held any politicalparty office other than precinct delegate, or been
elected to public office for which party designationis required by statute in the three years preceding
the member's appointment to the Board. A lawyer
in Minneapolis, Mr. Rosen is a graduate of the
University of Minnesota Law School and a founding
partner of the Parker Rosen law firm, where hepractices in the field of business and real estate
litigation. Prior to law school Mr. Rosen was as an
officer in the United States Navy and served in
Operations Desert Shield and Desert Storm.

Neil Peterson - - Left Board January 6, 2015
Neil Peterson was appointed in February of 2012by Governor Mark Dayton for a term ending inJanuary of 2016. He filled the position of a former
RPM legislator and served as a state
representative from 2005 - 2008. Mr. Peterson is
active in the second half of his business career incommercial/industrial real estate, client advisoryand property management. The first half of his
business career was in commercial
banking. Concurrently, he was elected to public
office in Bloomington, serving four terms on the city
council and three terms as mayor; his last term
overseeing the construction and opening of theMall of America. He was appointed to theMetropolitan Council by Governor Carlson andserved 4 years before withdrawing from public
office in 1999.

6

Deanna Wiener - - Left Board February 6, 2015
Deanna Wiener was appointed in March 2011 by
Governor Mark Dayton for a term ending in Januaryof 2015. She continued to serve until a replacement
member was appointed in March of 2015. She filled
the position of a former DFL legislator and served
as a state senator from 1993-2003. Ms. Wiener has
been a Realtor since 1977 and is currently a Broker
and Co-owner of Cardinal Realty Co. She is also apartner in land development businesses. Currently
she serves as a director to the National Associationof Realtors and is a board member of the St. Paul
Association of Realtors and serves on the board of
the Friends of Mississippi. She is a graduate of St.
Mary's Jr. College, now St. Catherine's, with anassociate degree in nursing.

Summary of Board Activities
Meetings

The Campaign Finance and Public Disclosure Board held ten scheduled
meetings and one special meeting during the fiscal year. At the special meeting
the Board’s only action item was the adoption of Advisory Opinion 439. Minutesof Board meetings are published on the Board’s web site.

7

Advisory Opinion
Procedure

The Board is authorized to issue advisory opinions on the requirements of theCampaign Finance and Public Disclosure Act (Minn. Stat. chapter 10A),
Minnesota Statutes sections 211B.04, 211B.12, and 211B.15 if the requestor isunder the jurisdiction of Chapter 10A, and the Hennepin County Disclosure
Law (Minn. Stat. §§ 383B.041 - 383B.058). Individuals or associations may ask
for advisory opinions based on real or hypothetical situations to guide theircompliance with these laws.
A request for an advisory opinion and the opinion itself are nonpublic data. The
Board provides Consent to Release Information forms to individuals requesting
opinions as part of the procedures under this law. If the requester does notconsent to the publication of the requester’s identity, the Board generally
publishes a public version of the opinion, which does not identify the requester.
A written advisory opinion issued by the Board is binding on the Board in any
subsequent Board proceeding concerning the person making or covered by therequest and is a defense in a judicial proceeding that involves the subject
matter of the opinion and is brought against the person making or covered by
the request unless: 1) the Board has amended or revoked the opinion before
the initiation of the Board or judicial proceeding, has notified the person making
or covered by the request of its action, and has allowed at least 30 days for the
person to do anything that might be necessary to comply with the amended or
revoked opinion; 2) the request has omitted or misstated material facts; or 3)
the person making or covered by the request has not acted in good faith inreliance on the opinion.
One advisory opinion was issued in fiscal year 2015. A summary of thisadvisory opinion is provided in the review of the conflict of interest program.

8

Education andTraining OutreachTo accomplish the goal of educating clients and the interested public on thecompliance and reporting requirements of Chapter 10A Board staff conducted
the following training during the fiscal year:• three compliance training sessions for candidates and treasurers andchairs of principal campaign committees, political party units, andpolitical committees and funds.
• five computer lab training classes for clients who use the Campaign
Finance Reporter software
An ongoing problem in providing compliance training to treasurers is thedifficulty in reaching St. Paul from many locations in Minnesota. Staff does try
to schedule some training classes in greater Minnesota, but training sessions
held outside of the metro area are always going to be limited in number andmay still be inconvenient to attend for some treasurers.
As an effort to provide training available at any time and at any location with
web access the Board contracted to develop five online training videos fortreasurers. The modules allow viewers to move at their own pace through the
topics covered and incorporate quizzes during the training to make themodules more interactive. The Board also maintains nine videos on specifictopics related to using Campaign Finance Reporter. The videos are available
on the Board’s web site. Based on favorable client feedback both of thesetraining tools will be used more extensively in the future.
Additionally Board staff participated in numerous panels, presented at many
continuing legal education courses, and spoke to interested groups of the
public on the requirements of Chapter 10A.

Use ofTechnology

The Board has long recognized the value of receiving disclosure reports inelectronic format. Electronic reports may be moved directly into Board
databases where the records are analyzed for compliance issues and thenexported to the Board’s website for faster disclosure to the public. Electronic
filing eliminates the cost and errors associated with data entry of paper reports.
To facilitate electronic filing the Board developed web based applications forfiling lobbyist disbursement reports, lobbyist principal reports, and the annual
certification by public officials of the economic interest statement. Use of theseweb based applications is optional, clients may still file a paper report, but all
three applications have participation rates of over 90%, which indicates thatclients also prefer electronic filing.
The Board increasingly turns to the internet to provide the point of access forclients and the general public to Board applications and information. The
Board’s website monitoring tools are by calendar year, not fiscal year.

9The Board website offers
•
•
•
•
•
•
•
•
•
•
•
•
•
•

Board meeting notices and minutes;
Board enforcement actions - findings and conciliation agreements;
Advisory Opinions;
Lists of lobbyists and associations, candidate committees, politicalcommittees, political funds, party units, and public officials;
Copies of all campaign finance and lobbyist reports;
Electronic filing for lobbyists and lobbyist principals;
Electronic filing of the Annual Statement of Economic Interest for public
officials;
All Board publications and forms;
Searchable databases of campaign finance contributions;Searchable database of independent expenditures;Campaign Finance Summaries;
Lobbyist Disbursement Summaries;
Annual Report of Lobbyist Principal Expenditures;
Training videos on the use of Campaign Finance Reporter

Separate Visits to Website
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
2010

2011

2012

2013

2014

2015

Separate Visits

PROGRAM REVIEWSThe Board administers three major and several minor programs as authorized by Minnesota Statutes Chapter
10A. The major programs are campaign finance, lobbying, and economic interest disclosure. The review of
each major program includes a general description of the program, a review of legislation passed during the
fiscal year that affects the program, a review of any Board advisory opinions issued during the time period forthe program area, and an overview of administrative activity that occurred during the fiscal year.

10

CAMPAIGN FINANCE PROGRAM

Program Overview

The Board administers the provisions of Chapter 10A of the Minnesota
Statutes that govern campaign finance laws for principal campaign
committees, political committees, political funds, political party units, andindependent expenditure committees and funds.
During a non-election year these committees and funds file one year-end
report disclosing receipts and expenditures to the Board. During 2014 theconstitutional candidates and appellate court judicial candidates on the ballot
filed six reports as did state central political party units and legislative caucus
party units. All other state level candidates on the ballot in 2014 and all otherparty units filed three reports. Political committees and funds file six reports
during an election year. Information on the number of reports filed is foundon page 15.
Each filed report is reviewed by Board staff for compliance with thedisclosure law requirements, including accurate accounting and reporting,and adherence to applicable contribution and expenditure limits. Violations ofcontribution and expenditure limits are resolved through either a conciliationagreement, or in some cases, a Board order. Information on Board
investigations and enforcement actions is found on page 17.
As a part of the campaign finance program the Board administers andregulates the distribution of payments for the state’s public subsidy program,which provides public funding to qualified state candidates and the statecommittees of political parties. Payments are made following the state
primary election to candidates and monthly to the state committees ofpolitical parties. Information on the payments is found on page 16.

Legislative Action

The Board proposed a broad package of legislative recommendations to the2015 legislature. The Board developed the recommendations based on
extensive experience with real-world campaign finance and public disclosure
issues. The recommendations were designed to provide Minnesota withdisclosure that is more rigorous, yet remains consistent with the limits that
the First Amendment places on public disclosure systems. The
recommendations also included technical and policy/administrative changes
necessary to clarify requirements in the statutes under the Board’s
jurisdiction.
Not all of the Board’s recommendations were passed into law, and someamendments were made to the Board’s recommendations. Nonetheless,many of the Board’s recommendations were passed and became Laws of2015, chapter 73, when signed by the Governor on May 22, 2015. Chapter
73 amended Minnesota Statutes Chapter 10A in the following ways:

11•

Modified investigation procedures and new penalties
The Board must decide whether a complaint states a prima facie
violation of the campaign finance laws immediately after receipt of
the complaint. The 60-day timeline for investigating complaints
involving contribution or spending limits violations does not begin to
run until after the Board has made a probable cause determination in
the matter.
The subject of an investigation must preserve evidence related tothe investigation after being notified of the investigation.
The Board may impose civil penalties for violations of the chapter
211B provisions that are under its jurisdiction. Those provisions are
the disclaimer requirement in section 211B.04, the improper use ofpolitical funds under section 211B.12, and the corporate contribution
prohibition in section 211B.15.
The Board now has jurisdiction over candidates, political committees
and funds, and party units that accept prohibited corporate
contributions. Previously, the Board only had jurisdiction over the
corporations that made these prohibited contributions.

•Campaign finance registration and reporting
A political committee or fund that reaches the registration threshold
before the end of a reporting period must register and report by thereport due date.
The late fee for campaign finance registrations is increased to $25 a
day and the grace period for these registrations is eliminated.
Candidates whose names will not be on the primary election ballot
because they did not file for office are not required to file the June
report in an election year.
Recipients must report contributors’ Board registration numbers andcontributors must report recipients’ registration numbers on theircampaign finance reports.

•

Disclaimers
The disclaimer requirement for independent expenditurecommunications now has a financial triggering threshold thatmatches the registration and reporting threshold for independent
expenditure committees and funds.
There are exceptions to the disclaimer requirement for independent
expenditure communications where it is impracticable to include a
disclaimer.

12

The disclaimer requirement for campaign material now has afinancial triggering threshold that matches the registration andreporting thresholds in Chapter 10A.
The language of the disclaimer is less formal and the form of thedisclaimer is specified when a communication has no cost.
There are exceptions to the disclaimer requirement for material
where it is impracticable to include a disclaimer.
•

Public subsidy program
The Board may impose a civil penalty of up to $3,000 on a candidate
or treasurer who willfully issues a political contribution refund receipt
to someone who is not eligible to receive the refund or when thecandidate has not signed a public subsidy agreement.
2015 Minn. Laws, chapter 77, section 82, provides that the politicalcontribution refund does not apply to contributions made after June30, 2015, and before July 1, 2017.

•

Contribution limits and sessional prohibition on contributions
The limit on individual contributions to judicial candidates is set at$2,500 over a two-year election cycle segment regardless ofwhether the candidate is on the ballot during that segment.
The aggregate special source limit does not apply to contributions
from large donors.
The prohibition on contributions between the legislative caucus
committees and their candidates during the legislative session isremoved.
The ban on sessional contributions applies to the entire first and lastdays of the session.

•

Miscellaneous technical changes
The right to make unlimited charitable contributions upon termination
is extended to political committees and funds and party units.
The Board does not have to withhold publication of a party unit
report until the report of the corresponding party unit has been filed.
Provisions related to investigations and audits were renumbered toplace them in a new section for violations and enforcement.
A rule which might have been read to permit candidates to accept
loans in excess of the statutory limit was repealed.

13

Rulemaking

In fiscal year 2014, the legislature directed the Board to adopt expedited
rules establishing additional procedures for audits and investigations. The
Board started this rulemaking in May 2014 and held a public hearing on June
19, 2014. The Board completed the rulemaking in fiscal year 2015 and the
expedited rules were effective on December 4, 2014. The new rules
establish notice and procedural requirements for investigations and audits
and create informal methods for resolving violations of Chapter 10A.

Campaign Finance
Litigation

On April 9, 2014, a complaint was filed in US District Court against theBoard in an action titled Seaton, et. al. v. Wiener, et. al. The action was aFirst Amendment challenge to Minnesota’s “special source limit” which
provided an aggregate limit on the amount of contributions that state-levelcandidates could accept from political committees, political funds, lobbyists,
associations not registered with the board, and large contributors. See
Minn. Stat. § 10A.27, subd. 11 (2010). The plaintiffs were represented by
the Institute for Justice, and the Board was represented by the Office of the
Attorney General.
On May 19, 2014, in response to the plaintiffs’ Motion for a Temporary
Restraining Order and Preliminary Injunction, the Court enjoined the Board
from enforcing the limit as applied to large contributors (individuals who
contribute to candidates in amounts equal to more than one-half of theindividual contribution limit). In the 2015 legislative session, the legislature
amended the aggregate special source limit to remove the large contributor
component, thus making plaintiffs’ action moot. The Board maintains its
enforcement of the limit as applied to political committees, political funds,
lobbyists, and associations not registered with the Board.
In fiscal year 2015 the matter was settled and dismissed by the Court.
Attorney’s fees of $100,000 and costs of $2,436.55, to be paid from theState’s contingent account, were recommended by the Legislative Advisory
Commission and approved by the Governor.

Advisory Opinions Issued
Related to the Campaign
Finance Program

No advisory opinions related to campaign finance were issued in the fiscal
year

14

Campaign Finance
Disclosure Reports Filed

Number of Reports of Receipts and Expenditures filed by candidates,
political party units, political committees, and political funds during areporting year. Reporting years overlap multiple fiscal years.
2014 Election Year

Electronic Filing of Reports

Paper

Electronic

Total

Candidate Committee

177

516

693

Political Party Unit

105

218

323

Political Committee or
Fund

65

325

390

Calendar Year 2014
Totals

347

1,059

1,406

Principal campaign committees, political committees, political funds, andpolitical party units have been using the Campaign Finance Reporter
software since 1998. The Board provides the software to registeredcommittees without charge. The maintenance, upgrade, training, andhelpdesk support of the software is provided by Board staff.
The software provides compliance checks and warnings as records areentered, generates electronic reports for filing that reduce the data entry
demands on Board staff, and provides contact management tools for thecommittees that use the software.
Electronic filing of campaign finance reports became mandatory beginningwith the 2012 election cycle. The Board may grant a waiver from therequirement to file electronically if the total financial activity of a committee
is less than $5,000, or if there are technical or other valid reasons why theelectronic filing requirement would be an unreasonable burden to thecommittee.
The Board has developed and distributed a XML schema that is thestandard for the electronic filing of campaign finance reports using a third
party vendor’s software. A total of sixteen committees filed electronicallyusing the XML standard.

15

Number of Committees FilingElectronically (Numbers are
based on calendar year, notfiscal year)

Reportingyear

Candidate
Campaign
Committees

Political Committees,
Political Funds, andPolitical Party Units

2014
2013
2012
2011
2010
2009
2008
2007
2006
2005

516
479
581
327
376
292
278
201
228
174

543
526
594
237
174
154
135
114
126
75

Public Subsidy Payments

The Board administers the distribution of payments for the state’s public
subsidy program, which provides public funding to qualified statecandidates and the state committees of political parties. Payments toqualified candidates during the 2014 state general election were madein fiscal year 2015.

Payments Made for the 2014
State General Election

To be eligible to participate in the public subsidy program, a candidate
must sign and file a public subsidy agreement with the Board in which
the candidate agrees to abide by statutory campaign expenditure limits
and to limit contributions by the candidate to the candidate’s principal
campaign committee. A candidate must also raise a specified amountin individual contributions and file an affidavit stating that thisrequirement has been met.
Overall 276 of the 312 candidates who filed for state constitutional orstate legislative office in 2014 (or 88.5%) voluntarily signed public
subsidy agreements.
The Campaign Finance and Public Disclosure Board distributed$2,429,596 in public subsidy payments to 238 candidates in 2014 (fiscal
year 2015). The 238 candidates who received a public subsidy
payment represent 85% of the 281 candidates who were on the generalelection ballot for those offices. The state senate was not on the ballot
in 2014.
Public subsidy payments made by office and party in 2014 were as
follows:
OfficeGovernor
Attorney General
Secretary of State
State Auditor
Total

16

DFL
$541,158$90,421$51,677$51,677$1,382,110

RPM$394,233$61,035$34,878$34,878$946,019

IPMN$0$44,155$25,232$25,232$101,464

Political Contribution
Refund Program

By statute candidates who sign the public subsidy agreement andpolitical parties are allowed to give political contribution refund receipts
to individual contributors. In calendar year 2014 the Department of
Revenue issued $1,227,762 in refunds based on contributions tocandidates, and another $1,805,834 in refunds based on contributions
to political parties.

Political Party Payments

The state committees of political parties receive 10% of the tax
check-offs to the party account of the State Elections Campaign Fund.
Based on monthly certification from the Department of Revenue during
fiscal year 2015 the payments to political parties were as follows:Campaign Finance
Enforcement Actions

Party
Democratic Farmer Labor

FY 2015$42,108

Independence Party of Minnesota
Grassroots Party
Libertarian Party
Republican Party of Minnesota
Total Payments to State Party Committees:$4,828$925$1,177$20,957$ 69,995

The Board conducts investigations of possible violations of theprovisions of Chapter 10A or those sections of 211B under the Board’s
jurisdiction. An investigation is started in response to a complaint filedwith the Board or may be initiated by staff based on information
disclosed on documents filed with the Board.
Investigations of many types of violations are typically resolved byconciliation agreement. The conciliation agreement will set the terms
under which the violation is to be remedied, provide for remedial
measures to correct the offending behavior, and provide for a civil
penalty to the committee. Violations not resolved by conciliationagreement are resolved through the issuance of a Board order. The
Board may also issue an order stating that no violation occurred, if
warranted.
During fiscal year 2015 the Board issued 43 agreements to resolve
violations of Chapter 10A or those sections of Chapter 211B under the
Board’s jurisdiction. In fiscal year 2015 the Board issued three findings
to conclude investigations. During fiscal year 2015 the Board also
received 16 complaints. Four of the complaints were dismissed with afinding that a prima facie violation had not been stated. Ten of thecomplaints were dismissed with a finding that probable cause did notexist in the matter. Probable cause was found in two matters, one ofwhich was resolved through a conciliation agreement with thecommittee; the other was dismissed by Board order.
To ensure compliance with disclosure deadlines Chapter 10A provides

17

for late fees applied at the rate of $25 dollars a day for year-end
Reports of Receipts and Expenditures, and $50 a day for pre-primaryelection and pre-general-election Reports of Receipts andExpenditures. Disclosure reports that are filed after a $1,000 late fee
has accumulated may also be subject to an additional $1,000 civil
penalty.
Civil penalties and late fees collected by the Board are deposited in thestate general fund. A breakdown of late fees and civil penalties
collected through enforcement is provided on page 26.

LOBBYIST PROGRAM
Program Overview

The Board administers the provisions of Chapter 10A that govern
registration and public disclosure by lobbyists and principals attempting
to influence state legislative action, administrative action, and the official
action of metropolitan governmental units.
Lobbyists are required to report disbursements for lobbying purposes to
the Campaign Finance and Public Disclosure Board two times eachthyear (January 15 and June 15). On the June 15 report the lobbyist
must provide a general description of the subject(s) lobbied on during
the previous 12 months.
Individuals or associations that hire lobbyists or spend $50,000 or more
to influence legislative action, administrative action, or the official actionof certain metropolitan governmental units, are principals and are
required to file an annual report disclosing total expenditures on thesethefforts. The report is due March 15 , and covers the prior calendar
year.

Legislative Action

One of the Board’s recommended changes to the lobbyist program waspassed and became Laws of 2015, chapter 73, when signed by theGovernor on May 22, 2015. Chapter 73 increased the late filing fee forlobbyist registrations to $25 per day and eliminated the 10-day grace
period for these filings.

Advisory Opinions Issued
Related to the Lobbying
Program

No advisory opinions related to lobbying were issued in the fiscal year.

18

Lobbyist Disbursement
Reports

The Board has developed a web based reporting system for lobbyists.
Use of the system is voluntary, but as shown below it is used by mostlobbyists as the reporting method of choice. Lobbyist disbursement
reports are available for review on the Board web site.
Reporting year
2014
2013
2012
2011
2010
2009
2008
2007
2006

Principal Expenditures

Reports filed
4,041
3,998
3,823
3,959
3,950
4,028
4,022
3,798
3,445

Chapter 10A requires principals to file an annual report disclosing
expenditures made in Minnesota to influence legislative,administrative, or official actions by a metropolitan governmental
unit. The disclosure is a single number which may be rounded to
the nearest $20,000. Starting in 2012 principals are required tobreak out the amount spent influencing administrative action of theMinnesota Public Utilities Commission from all other lobbying.
Principal expenditures for the last four calendar years are shown
below.

2014$64,517,472

MN Public
Utilities
Commission$5,889,000

2013$69,185,283$5,568,210$74,753,493

2012$59,060,155$2,749,590$61,809,745

2011$65,241,174$65,241,174

2010$59,172,799$59,172,799

2009$62,909,757$62,909,757

All Other Lobbyingin Minnesota

Lobbyist Program
Enforcement Actions

Electronically filed
96%
97%
93%
94%
98%
93%
92%
90%
88%

Total
$70,406,472

The Board completed one investigation and issued one order regarding
the requirement to register as a lobbyist or report as a principal during
the fiscal year. This investigation was in response to a complaint filedwith the Board. In addition during the fiscal year one lobbyist was finedfor making a contribution without providing a lobbyist registration
number.
Information on late fees and civil penalties paid by lobbyist andprincipals for missing a report filing deadline is found on page 26.

19

ECONOMIC INTEREST PROGRAM

Program Overview

The Board administers the provisions of Chapter 10A of theMinnesota Statutes that govern disclosure of economic interests by
public officials and local officials in metropolitan governmental units.
There were over 2,800 public officials who filed with the Board in
fiscal year 2015. Local officials use forms developed by the Board,but file with the local government unit.
Original statements of economic interest must be filed at the time of
appointment, or for candidates, when the candidate files for office. All
incumbent candidates and appointed officials must annually review
and recertify their statements. The annual recertification is due by thelast Monday in January and covers all time served during theprevious calendar year. The Board has developed a web based
system for submitting economic interest statements.

Legislative Action

The 2015 legislative session produced the following change to theeconomic interest program:•

Advisory Opinions Issued

Annual recertification required by the last Monday inJanuary each year
Public officials must annually recertify their statements ofeconomic interest even if nothing on the statement haschanged or they left office during the year. The annual
recertification is due by the last Monday in January andcovers all time served during the previous calendar year.

No advisory opinions were issued in the economic interest
program in fiscal year 2015.

20

OTHER BOARD PROGRAMS
Potential Conflict ofInterest

A public or local official who in the discharge of the official’s duties
would be required to take an action or make a decision that would
substantially affect the official’s financial interests or those of an
associated business must under certain circumstances file a Potential
Conflict of Interest Notice, or a written statement describing thepotential conflict. If there is insufficient time to comply with the written
requirements, oral notice must be given to the official’s immediate
supervisor of the possible conflict. If the official is not permitted or isotherwise unable to abstain from action in connection with the matter,the public official must file the notice with the Board and a local official
must file with the governing body of the official’s political subdivision.
The statement must be filed within one week of the action taken.

Advisory Opinions Issued

One advisory opinion was issued in the potential conflict of interest
program in fiscal year 2015. Advisory Opinion 439 provided that
employment by a member of the legislature as the executive director ofan association that is represented by a lobbyist does not in itself create
a conflict of interest. The opinion also provided, however, that an
official action or decision by the legislator may create a conflict ofinterest under specific circumstances.

Public Employees
Retirement Association(PERA) Trustee
Candidates

Candidates for election as PERA Trustees are required to file certain
campaign finance disclosure reports with the Campaign Finance andPublic Disclosure Board under Minn. Stat. § 353.03, subd. 1.
Under this statute, the Board prescribes and furnishes to trustee
candidates the reporting form and instructions for completing the form.

Enterprise Minnesota, Inc.

The agency name was changed from Minnesota Technology, Inc (MTI)
to Enterprise Minnesota, Inc. in 2008. Minn. Stat. §§ 116O.03 and116O.04 require certain disclosure by the board of directors and thepresident of Enterprise Minnesota upon appointment and annually
thereafter during their terms in office. Under these statutes, the Board
prescribes and furnishes to the directors and president the reporting form
and instructions for completing the form.

State Board of Investment(SBI)

Minn. Stat. § 11A.075 requires certain disclosure by SBI members upon
appointment and SBI employees upon hire and by both annually until
termination of appointment or employment. Under this statute, the Board
prescribes and furnishes to the members and employees the reporting
form and instructions for completing the form.

Representation
Disclosure

A public official who represents a client for a fee before any individualboard, commission, or agency that has rule making authority in a hearing
conducted under Minnesota Statutes chapter 14, and in the cases of ratesetting, power plant and powerline siting, and granting of certificates of21

need under Minn. Stat. § 216B.243, must file a Representation
Disclosure Statement within 14 days after the appearance has takenplace, disclosing the official’s part in the action.

Legislative Action

The 2015 legislative session produced one change to therepresentation disclosure program. The late filing fee for representation
disclosures was increased to $25 per day and the grace period forthese filings was eliminatedLocal Pension Plans

Members of a governing board of a covered pension plan and the chief
administrative officer of the plan are required to file certain statementsof economic interest with the governing board under Minn. Stat.
§ 356A.06, subd. 4.
The Office of the State Auditor prescribes the statement andinstructions for completing the statement. The chief administrative
officer of each covered pension plan must submit to the Campaign
Finance and Public Disclosure Board a certified list of all pension board
members who filed statements with the pension board no later thanJanuary 15th. Approximately 755 pension plans are required to file with
the Board under this law. The Board does not have jurisdiction over
enforcement of this certification requirement.

STAFF DUTIES
Executive Director

Facilitate achievement of the Board’s goals and objectives. Set agenda
and prepare materials for Board and committee meetings. Direct allagency and staff operations. Draft advisory opinions for Board
consideration. Serve as the Board’s representative to the Legislatureand the Executive Branch. Educate and assist clients in compliancewith reporting requirements, limits, and prohibitions. Administer the
preparation of the biennial budget.

Assistant Executive
Director

Serve as advisor to the Executive Director and assist in management of
the operations for the agency. Conduct complex investigations andprepare drafts for Board consideration. Reconcile and report on the
Board’s financial systems. Supervise the agency’s compliance programs
and information resources. Administer the state public subsidy payment
program. Prepare and conduct training classes for clients on campaign
finance reporting requirements.

Legal Analyst - Management
Analyst (2 staff members
hold this position)

Perform legal analysis, make recommendations, and assist in agency
administrative rulemaking and the conduct of Board investigations anddrafting findings and orders for Board consideration. These positions
also serve as an internal management consultant providing support
and analysis to the Executive Director and Assistant Executive
Director.

22

Compliance Officer
Investigator

Review reconciliation of reported contributions; perform compliancechecks on campaign finance reports filed with the Board. Assist in the
conduct of Board audits. Monitor cases for Revenue Recapture andMinnesota Department of Revenue Collections Division. Prepare andsubmit reports to the Department of Finance regarding civil penalties.

Programs Administrator

Provide for distribution, collection, data entry, and filing of disclosure
required by Chapter 10A. Collect, store, and retrieve data for the
preparation and analysis of summaries of documents filed with theBoard. Provide database advice and guidance to Board staff andclients.

Programs Assistant

Provide assistance with data entry and initial desk review for all filed
reports. Assist with mailing, copying, and filing of all documents filedwith the Board in all agency programs. Maintain agency receipts fordeposit with the State Treasurer. Provide general administrative andprogram support.

Information Technology
Specialist III

Develop, maintain, and manage complex database applications to
support administration of all Board programs and activities.
Provide technical service, assistance and training to Board staff.
Develop, administer, and provide technical support for the Board’s
website. Provide client training and support in the use of the Campaign
Finance Reporter Software.

Information Technology
Specialist III

Ensure that the technology resources of the Board support applicablebusiness rules and statutory obligations. Provide application design
development and administration in response to management requests.
Provide high-level programming. Design and support multiple complex
relational databases.

23

Staff Salaries
Fiscal Year 2015

Position

Staff

FY 2015

Executive Director
Assistant Executive Director
Legal - Management Analyst
Legal - Management Analyst
Investigator
Information Technology Specialist 3
Information Technology Specialist 3
Office and Administrative Specialist Principal
Office and Administrative Specialist Intermediate
Office and Administrative Specialist Intermediate
Student Worker Clerical

Gary Goldsmith
Jeffrey Sigurdson
Jodi Pope
Kyle Fisher
Joyce Larson
Jon Peterson
Gary Bauer
Marcia Waller
Andrew SchonsTesia Zietlow
Daniel Hegg

$109,712$95,537$36,186$56,457$56,403$69,543$61,981$47,528$35,879$3,606$2,450$ 575,286

Total Salaries

BOARD FINANCIAL INFORMATION
Biennial Budget - Fiscal Year 2015
Income Summary

FY 2015

Appropriation
Operating budget balance forward-fiscal year 2014
Total

$1,000,000$230,591$1,230,591

Expenditure Summary
Operating budget expenditures
Cancel $150,000 in unexpended fiscal 2015 funds andappropriate the same amount in fiscal year 2016 forwebsite development
MNIT Odyssey Fund – MNGeo Services
Returned to State General Fund24($1,052,093)($150,000)($22,407)($6,091)

Board Operating Budget
The Campaign Finance and Public Disclosure Board is funded by a direct appropriation from the Minnesota
Legislature. The appropriation for fiscal 2015 was one million dollars. Funds not expended in the first year of abiennium roll forward into the next fiscal year. Over 80% of the Board’s budget is used to pay the fixed costs ofsalary and benefits, rent, and postage for required mailings.
Salary and Benefits
Full time staff (salary and fringe)
Part time staff (salary and fringe)
Other Employee Costs
Per diem for Board Members

FY 2015$700,461$47,935$672$4,400

Salary and Benefits Sub Total of Expenditures$753,468

Operating Expenses
Office rent
Postage
Photocopy machine leases
TravelPrinting
Staff development
Board Meeting Expenses
Supplies
MNIT services
Court Reporter and Subpoena Costs
Equipment
Computer Systems Development
Information technology professional services
Other purchased services
Operating Expense Sub Total of Expenditures
Board Operating Budget Total Expenditures$39,491$12,478$4,683$3,700$1,371$5,668$2,173$6,438$8,565$3,385$14,349$36,314$151,608$8,402$298,625$1,052,093

25

Penalties Paid for Late Filing of Disclosure Reports and Other Violations of Chapter 10A
The following is a listing of fees and fines paid during the fiscal year. Some fees and fines may have beenassessed prior to fiscal year 2015, and some fees and fines assessed during the fiscal year were not paid byJune 30, 2015.

Late Filing Fees
Candidate Campaign Committees
24-Hour Notice
Political Committees and Funds
Political Party Units
Economic Interest Statements
Lobbyist Disbursement Report
Lobbyist Principal Annual Report
Total Late Fees

Civil Penalties
Contribution from Unregistered association
Unregistered Association
Political Committees and Funds
Political Party Units
Candidate
Contribution limits violations
Candidates accepted in excess of limit
Special source (20%) aggregate limit
PCF Contribution exceeded limits
Excess lobbyist contributions
Excess party unit contribution
Candidate exceeded spending limit
Prohibited contributions during session
Political Committee and Funds
Lobbyist
Lobbyist failure to provide reg. number
Failure to file disclosure report
Candidate Committees
Political Committees and Funds
Political Party Units
Lobbyist
Lobbyist Principal
Failure to file amended report
Economic Interest Statement
Independent expenditure violation
Other
Total Civil Penalties

Total Late Fees and Civil Penalties
Deposited in State General Fund26

FY 2015
Dollars Paid

Number of
Violations$7,272$3,081$7,220$1,900$350$3,215$6,925$29,963

43
13
46
7
14
37
59
219

FY 2015
Dollars Paid

Number of
Violations

$887
$850
$12
$0
$25

9
7
1
0
1

$2,938$409$2,450$200$0$3,721

7
5
2
1
0
1

$0
$250
$50

0
4
1

$2,000$0$0$0$0$1,000$0$0$17$14,572

2
0
0
0
0
1
0
0
1
35

$44,535254

Staff Contact Information
Gary Goldsmith
Office 651-539-1190
Cell 612-810-3017
gary.goldsmith@state.mn.us
Jeff Sigurdson
Office 651-539-1189
Cell 952-212-4029
jeff.sigurdson@state.mn.us
General Office Line
651-539-1180
Office Fax
651-539-1196

Board Mission Statement
To promote public confidence in state
government decision making throughdevelopment, administration, and enforcementof disclosure and public financing programs
which will ensure public access to andunderstanding of information filed with theBoard.

Member Contact Information
Christian Sande, Chair
310 Clifton Ave, Suite 300
Minneapolis, MN 55403
Office: 612-387-1430
christian@christiansande.com
Daniel Rosen, Vice Chair
888 Colwell Building
123 N. 3rd St.
Minneapolis, MN 55401
Telephone: 612-767-3000
rosen@parkerrosen.com
Edward Oliver
20230 Cottagewood Rd
Deephaven, MN 55331
Office: 952-474-1399
oliveerfinancial@earthlink.net
Carol Flynn
1235 Yale Place, #1409
Minneapolis, MN 55403
Telephone: 612-332-1227
crflynn8@gmail.com
Margaret (Peggy) Leppik
7500 Western Ave
Golden Valley, MN 55427
Telephone: 763-546-3328
peggyleppik@comcast.net
Emma Greenman
Office: 612-384-0638
emmagreenman@gmail.com

Information for Board
Members2016 Meeting Schedule
Tuesday, April 5
Tuesday, May 3
Tuesday, June 7
Tuesday, July 5
Tuesday, August 2
Tuesday, September 6
Wednesday, October 5
Tuesday, November 1
Tuesday, December 6•Applicable Statutes for Board
Members
Conflict of Interest•••

Board members cannot hold a political party
office or a partisan political office.
A Board member may not be a registeredlobbyist.
A Board member must disclose to the Board
any representation of a client for a fee before
a board, commission, or agency that hasrulemaking authority.

••

A conflict of interest arises if a Board member
takes an action or makes a decision thatwould substantially affect the member’s
financial interests unless the affect is nodifferent than the affect on others in themember’s business, profession, or
occupation.
A conflict of interest is not created solely froma Board member knowing or previously
having been affiliated with a party thatappears before the Board. Board members
may recuse themselves from a vote if themember deems it necessary.

Open Meeting Law•

The open meeting law requires public noticeof the meeting and must be open to the
public.

•A meeting at which four or more members
discusses, decides, or receives information
relating to official business is covered by theopen meeting law.

Serial emails, or emails with a respond to allanswer, are considered an electronic
meeting and covered by the open meetinglaw.

•

A social gathering is not covered by theopen meeting law as long as Board
business is not discussed.

•

The Executive Session is not open to the
public, but must be recorded.

Participating by Telephone
If travel makes it difficult for a member to attend
a Board meeting it may be possible toparticipate and vote by phone. Contact staff assoon as possible if you are interested in using
this option.
Gift Prohibition•

Generally, a Board member may not accept
food or beverage from a lobbyist.

•

A Board member may accept a trinket if it’scost was no more than $5.

•

There are some situations where a meal ormore expensive gift may be accepted.
Contact staff for more information.

Confidential and Non Public Data•

A request for an advisory opinion and theopinion itself are nonpublic unless therequestor agrees to make them public. The
Board may publish the opinion, or asummary of the opinion, however it must not
identify the requestor.

•

Staff or Board members should not confirm
or deny that a complaint has been filed, orthat an investigation has been opened.

•

Board members should not discuss
investigations with anyone other than staff orother Board members prior to the issuanceof findings or the signing of a conciliationagreement.

•

Board findings and conciliation agreements
are placed on the Board website at theconclusion of an investigation. Most
documents and other information gathered
during an investigation are available forpublic inspection in the Board’s office. But,
information on how members voted in
executive session, and the recordings ofexecutive session, are never public
information.

Parking Locations
Parking lots with the P symbol accept the
parking code sent to members. The parking
code changes every month. The street levelparking between the Centennial Office Bldg. and
the Judicial Center also have meters that accept
the parking code.

Minnesota

Campaign Finance andPublic Disclosure Board
Campaign Finance and Public Disclosure Board Procedural Rules for Meetings
Summary
Rules: The Board operates under a modified version of Masons Manual of Legislative
Procedure
Quorum: A quorum is four members attending either in person or electronically under specificstatutory authority. A meeting may not be called to order unless a quorum is present and mustrecess if less than a quorum is present.
Presiding officer: The chair is typically the presiding officer, but meetings may be presided
over by the vice chair or some other member.
Direction to staff by consensus: Often staff seeks Board input or direction in a less formal
way than through motion. In these cases, the Board will discuss the matter under consideration
so that staff can hear the input from each member who speaks on the subject. In these cases a
motion is not typically made and no vote is taken.
Board decisions or direction to staff by motion: Formal action or direction to staff is bymotion. Any member may make a motion, which must be accepted by the presiding officer if inorder. The presiding officer will usually restate the motion, and must restate it if there is any
opportunity for a lack of clarity as to what is being voted on. After discussion, the presiding
officer will call for a vote. Four members must vote affirmatively to take any action.
Use of seconds: The rules do not provide for the use of seconds to any motion.
Amendments: Amendments may be proposed by any member. An amendment may be
proposed as a friendly amendment, which may be accepted by the author of the original motion,or as an amendment on which a vote will be taken. The chair may take up amendments forindividual votes, or, without objection, may incorporate amendments into the main motion andcall for a vote only on the main motion.
Motion to lay over: When the Board does not have time to act on a matter that must be
resolved by motion, or when the matter requires additional work by staff, or for any otherreason, the matter may be laid over to the next Board meeting. A motion to lay over ends
discussion of the matter at the present meeting and places it on the agenda for the next
meeting.
Executive session: Most meetings include a session that is not open to the public. Without
objection, the presiding officer will recess the regular session and call to order the executive
session. Upon completion of the business in regular session, the presiding officer may, without
objection, adjourn the executive session and call the regular session back to order.
Adjournment: Without objection, the presiding officer may adjourn the regular session of ameeting.
Objection: When the presiding officer may take an action "without objection," any member may
object, in which case the action may be taken only after an affirmative vote on a motion.

Procedural rules for meetings of the Campaign Finance and Public Disclosure Board
Introduction
The Board often acts through consensus. Direction to staff may be by informal means or byformal resolution. Any official action of the Board is taken by motion; usually to adopt a
resolution or to adopt, either as offered or as amended, draft materials provided by staff.
Historically the Board has operated under a slightly modified version the rules set forth inMason's Manual of Legislative Procedure. This document sets forth the most common
procedural rules applicable during Board meetings.
Meetings
No action of the Board may be taken other than at an official meeting. Meetings must be called
and noticed according to the requirements of the Minnesota Open Meetings law.
Chair, vice chair, acting chair
The order of precedence for presiding over a meeting is (1) chair, (2) vice chair, and (3) acting
chair. If a meeting is being presided over by a person of lower precedence and a member ofhigher precedence joins the meeting, the gavel should be turned over to the member of higher
precedence. A member of higher precedence who has the gavel may turn it over to a memberof lower precedence for any part of a meeting.
Quorum
A quorum of the Board is four members, who may be physically present or participating
electronically under the terms of the Open Meetings Law. No meeting may be called to orderunless a quorum is present.
Call to order
Once a quorum is present and the noticed time for the meeting has arrived, a properly noticed
meeting may be called to order by the presiding member. However, it is the custom andpractice of the Board to delay the call to order for a reasonable period of time if it is known that
other members are expected at the meeting. It is also the custom and practice that a lowerranked presiding member will not call a meeting to order if a higher-ranked member is expected
to arrive at the meeting within a reasonable amount of time.
RecessA recess results in a pause in a meeting; not the end of the meeting. If there is no objection, ameeting may be recessed by the presiding member without vote or motion. A recess may be toa new date and time certain or for a specific period of time. If any member objects to therecess, a vote shall be taken.
Any member may move a recess at such time as the member has the floor. A motion to recess
may not be made during the vote on a main motion.
Motions
Proposals for official Board action are made through motions. Any member may make amotion. A motion need not take a particular form as long as it is clear as to the action themoving member proposes to take. A motion is under consideration once the presiding officer
accepts the motion. It is the duty of the presiding officer to accept any properly made motionthat is in order. A resolution is usually a written statement, the adoption of which is requested
by motion to adopt the resolution.
Seconds to motions
Seconds to motions are not required or in order.
-2-

Withdrawal of motions
A member making a motion may withdraw the motion at any time before a final vote on the
motion has been taken. Withdrawal of a motion does not require a vote.
Amendment of motions
A member making a motion may amend the motion at any time before a final vote on the motion
has been taken. An amendment by the moving member does not require a vote.
Friendly amendments
When a motion is under consideration and another member has a suggested modification, themember may propose the modification as a friendly amendment. The author of the motion
under consideration may accept the amendment and the motion under consideration becomes
an amended motion including the friendly amendment. If the moving member does not accept
the amendment as friendly, the member proposing the modification may move to amend theoriginal motion.
Motions to adopt findings, agreements, statements, and similar substantive decisions;amendments
Substantive decisions are often presented in draft form by staff. To adopt any such decision, amotion is required. It is often the case that minor or major changes to draft materials are
considered before adoption of the final decision.
The presiding officer may handle amendments to written materials in several ways. It is thecustom and practice of the Board that small non-substantive amendments, such as thoseneeded to correct typographical, grammatical, or other minor errors are incorporated into themain document without separate motion. In such case, the presiding officer ascertains thatmembers and staff understand the changes and will call for a vote on the motion to adopt thewritten decision "as amended."
When there are more complex amendments, multiple amendments, or amendments that may
change the tone or substance of the draft decision, the chair may take up each amendment
separately or may group similar amendments and entertain a motion to adopt the amendments.
This form of motion does not constitute final action on the decision, but is limited to considering
the amendment(s) that are the subject of the motion.
Under the approach that considers amendments separately from the main matter, once allamendments have been considered, the presiding officer will call for a vote on the main matter,as amended.
The essential element of a motion, including a motion to amend, consists of the proposal
actually made and not of the precise words used. Therefore, if exact language cannot be
developed during a Board meeting, the presiding officer may, nevertheless, call for a vote on the
motion. In such case, the presiding officer will work with staff and, typically, with the member
whose motion was adopted to ensure that the proposal made in the motion is accurately
conveyed in the language included in the final adopted document.
If the presiding officer elects to incorporate amendments into the main motion without a vote oneach individual amendment, any member may object and a motion and vote on each individual
amendment must be taken.
Motions to lay overWhen a matter that requires a motion and vote to bring it to conclusion cannot be concluded ata meeting, a motion to lay over is in order. A motion to lay over is the same as a motion to-3-

postpone definitely, which is to defer consideration of the matter to a definite future time. It has
been the Board's custom and practice to lay matters over until the next meeting when theycannot be resolved at the present meeting either due to lack of time or because additional workneeds to be done on the matter.
Adjournment
If there is no further business to come before an executive session or a regular session of ameeting, the presiding officer may adjourn that session of the meeting.
Executive session
The executive session of a meeting is the session that is not open to the public because of theconfidentiality provisions of Chapter 10A. Typically the executive session takes place during ornear the end of the regular session of a duly called meeting.
If there is no objection, the presiding officer may recess the regular session and call the
executive session to order, either immediately or after a specific time delay. If there is objection,
the recess must be upon motion and vote. The recess of the regular session will typically bestated as lasting until adjournment or recess of the executive session.
When there is no further business to come before the executive session, the chair may adjournthe executive session. Upon adjournment of the executive session, the presiding officer will callthe regular session back to order, at which time any remaining business on the regular session
agenda may be taken up.
The executive session of a meeting may be recessed by the presiding officer without objection,or by motion and vote if there is objection.

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State of Minnesota
Campaign Finance and Public Disclosure Board
Suite 190, Centennial Building. 658 Cedar Street. St. Paul, MN 55155-1603
THIS ADVISORY OPINION IS PUBLIC DATATHE FOLLOWING PUBLICATION DOES NOT IDENTIFY
THE REQUESTER OF THE ADVISORY OPINION, WHICH IS NON PUBLIC DATA
under Minn. Stat. § 10A.02, subd. 12(b)RE:

Noncampaign Disbursement for Constituent Services
ADVISORY OPINION 442
SUMMARY

A candidate’s campaign committee may, under certain circumstances, pay for use of
office space as a constituent service. Payment to a corporation in an amount equal to
the fair market value of the goods or services provided is required to avoid a prohibited
contribution from the corporation.
FACTS
As a member of the Minnesota Legislature, you request an advisory opinion from theCampaign Finance and Public Disclosure Board based on the following facts that were
provided in the letter requesting the advisory opinion and in discussions with Board staff.
1. You are the sole owner of a professional office that is registered in Minnesota asa limited liability corporation. You are the only professional practicing in that
office.
2. You also own another business. Both the professional office and the otherbusiness are located in a leased two-room business office. The office space isrented from an unrelated third party.
3. You periodically meet with constituents in the business office. There is no
specific meeting area within the business office for meeting with constituents.
The same space and furniture used for meeting with business clients is also used
for meeting with constituents.
4. You have not kept a log of your meetings or phone calls with constituents. You
estimate that you meet with individuals in the business office on constituent
issues between one and four times a week. Additionally, you take between one
and ten phone calls a week while at your business office from constituents withissues that you may be able to address as a legislator. The number of meetingsand phone calls at your business office is significantly less during legislative
session when you spend the majority of your time in St. Paul.
5. Although infrequent, you occasionally receive a phone call or visit at the businessoffice that is related to your campaign for reelection.

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6. You are considering placing a sign on the outside of the business office thatwould serve two purposes. A portion of the sign would identify the office as alocation to meet with you, or call you, in your role as a legislator. The otherportion of the sign would identify the office as the location of your professional
office.
INTRODUCTION
The use of a candidate’s campaign committee funds is controlled by Minnesota Statutes
section 211B.12. The limitations on corporate contributions to candidates are found in
Minnesota Statutes section 211B.15. The Board was first given the authority to issueadvisory opinions on these two provisions of chapter 211B in 2014, and this is the firstadvisory opinion issued under that authority.
Minnesota Statutes section 211B.12 limits use of campaign funds to activities intended
to influence elections and to the noncampaign disbursements defined in Minnesota
Statutes section 10A.01, subdivision 26. Section 211B.12 also provides an overall
restriction on the use of campaign funds by providing in part, “Money collected forpolitical purposes and assets of a political committee or political fund may not be
converted to personal use."
Minnesota Statutes section 211B.15 limits the donation of corporate funds andresources to influence elections. Candidate committees are prohibited from accepting
corporate donations, either cash or in-kind contributions.
The noncampaign disbursements currently established by the legislature in Minnesota
Statutes section 10A.01, subdivision 26, identify permitted uses of campaign funds thatare not directly related to influencing voters at an election. Noncampaign
disbursements do not count against the spending limit applied to candidates who sign apublic subsidy agreement.
Relevant and applicable to this opinion is the noncampaign disbursement identified in
section 10A.01, subdivision 26(6), which in part provides:…services for a constituent by a member of the legislature or aconstitutional officer in the executive branch, including the costs of
preparing and distributing a suggestion or idea solicitation to constituents,…
The term “services for a constituent” is defined in Minnesota Rules 4503.0100, subpart
6, as follows:"Services for a constituent" or "constituent services" means services
performed or provided by an incumbent legislator or constitutional
officer for the benefit of one or more residents of the official's district,but does not include gifts, congratulatory advertisements, charitable
contributions, or similar expenditures.
Whether a constituent service qualifies as a noncampaign disbursement depends onwhen the service is provided. A constituent service qualifies entirely as a noncampaign
disbursement if the service occurs from the beginning of the term of office of the electedcandidate to adjournment sine die of the legislature in the election year of the office heldby the candidate. For the sixty days following adjournment sine die a constituent-2-

service is classified as 50% noncampaign disbursement and 50% campaign
expenditure. More than sixty days after adjournment sine die, the entire amount spent
on a constituent service is a campaign expenditure.
To have constituents you must be an elected official, therfore, this noncampaign
disbursement is available only to incumbents.
The Board has previously held that in order to qualify as a constituent service there must
be an actual service provided. The Board has acknowledged the cost of printing andmailing an unsolicited informational mailing to constituents, the cost of providing amailed response to a specific request from a constituent, and staff costs directly related
to providing constituent services may be paid for with campaign committee funds andreported as noncampaign disbursements, (during the appropriate time frames). 1
Also relevant to this opinion are Minnesota Rules 4503.0100, subpart 3a, and4503.0800, subpart 4, which, when read together, provide that shared office space andservices must either be paid for at fair market value, or considered to be an in-kind
contribution at fair market value. Fair market value is defined as the amount that anindividual would pay for the same or similar service or item on the open market.
ISSUE ONEMay your campaign committee pay for some portion of the rent of your business office
as a noncampaign disbursement for providing constituent services?
OPINION
The Board approaches this issue with three concerns: 1) what is the actual service
provided to constituents; 2) could the use of the business office be a prohibited
corporate contribution; and 3) is it possible that a payment with committee funds for useof the office could result in a conversion to personal use.
The service that is evaluated in this opinion is the use of the business office as a location
for interacting with constituents. The Board has previously recognized in investigative
findings that the cost of operating a constituent service office in the legislator’s district
may be paid for with committee funds and, depending on when the office was open,reported as either a campaign expenditure or a noncampaign disbursement. 2 The
Board accepted that the office was a service to constituents because it provided alocation within the district to meet with the legislator, leave phone messages, and ingeneral provide easier access to the legislator.
The use of the business office in this opinion provides the same advantages, and is aservice to constituents. Therefore, campaign committee funds may be used to pay forsome portion of the business office operating costs.

1

See Advisory Opinions 248, 275, 294, 307, 313, and 378. Opinions are available online atwww.cfboard.state.mn.us/ao/index.html.

2

See Findings regarding a complaint against Representative Greg Davids, October 15, 2004.
The finding is available online at www.cfboard.state.mn.us/bdinfo/investigation/101504Davids.pdf-3-The constituent service office examined in the investigation referenced above was notshared with any other entity or business. This made it easy to determine the costs
associated with operating the office and, by extension, the amount to be reported as anoncampaign disbursement. The single purpose use of the constituent office alsomeant there was no danger of a prohibited contribution from any other entity that shared
the office.
In the facts of this opinion the business office space is not exclusively, or even primarily,
used as a service to constituents. Further, as provided in the facts of this advisory
opinion, there are no discrete additional costs associated with assisting constituents atthe business office. The same office space and furniture used to run the businesses
housed at the office are used when meeting with a constituent. Similarly, no additional
staff or office equipment has been added to the business office to accommodate
constituents who come to the office.
Payments from the campaign committee to the business must reflect actual use to avoid
an inadvertent corporate contribution that might occur if the amount paid is not fairmarket value for the services received.
As stated in the facts the requester has not kept a log of constituent visits or phone calls,
and acknowledges that the number of calls and visits can vary dramatically week toweek. For a payment to be accurate it must be based on a record that can justify thepayment. The payment cannot be based on an approximation of actual use. Therefore,a log of constituent meetings will need to be kept. A log of the number, dates, andduration of visits is also needed to meet the record keeping requirements of Minnesota
Statutes section 10A.13, which requires the campaign committee treasurer to obtain areceipted bill, stating the particulars, for every committee expenditure in excess of $100.
Finally, the Board is concerned that payments from the campaign committee for use of
the business office could result in a conversion of committee funds to personal use.
Because there are no additional identifiable costs to the business to support theconstituent meetings, the payments received from the campaign committee will in effectpartially pay the business operating costs, and therefore increase the profitability, of abusiness owned by the legislator. To avoid this, committee payment must again reflect
the fair market value of the actual use of the office, not an approximation.
Paying the fair market value of an item like office space requires keeping an accurate logof the amount of time the office is used for constituent services, and then using that
information to calculate what percentage of time the office is used for constituent
services. The percentage of time the office is used for constituent services is used todetermine the percentage of the lease costs that should be paid by the committee.
Any additional identifiable office costs, for example the use of a copier or a dedicatedphone line, must be added to the fair market value of the space provided.
This opinion should not be interpreted as an expansion of constituent services to include
payment for the use of any space where the legislator meets with constituents.
Specifically, this opinion should not be read to suggest the Board's approval of a
campaign committee's payment for use of space in a legislator’s home for either
constituent services or campaign purposes. It is the Board's opinion that such a-4-

payment could result in a conversion to personal use prohibited in Minnesota Statutes
section 211B.12.
ISSUE TWO
During an election year may your campaign committee pay your business for some
portion of the rent of the business office as a campaign expenditure?
OPINION
As noted in the introduction section of this opinion, the noncampaign disbursement for
constituent services is available in full only during a certain time frame. In a year inwhich the legislator’s office is on the ballot the adjournment of the legislature sine die
starts a sixty-day period when the cost of the use of the business office is classified as
50% noncampaign disbursement, and 50% campaign expenditure. More than sixty days
after adjournment sine die the entire amount spent on the use of the business office is a
campaign expenditure.
Because all campaign expenditures count against the spending limit for a candidate thatsigned the public subsidy agreement, the campaign committee will need to monitor thepayments to the business office carefully through the end of the election year.
To the extent that payments for constituent services as a noncampaign disbursement
are approved in Issue One, payment for the campaign expenditure portion of thoseservices is also approved.
ISSUE THREE
Should your campaign committee reimburse your business if you receive a call related toyour election campaign at work?
OPINION
While this opinion is safe harbor only to the requester under the specific facts in therequest, the Board believes that this question reflects a common quandary faced by bothchallengers and incumbent candidates. Namely, is a payment from the campaign
committee to the candidate’s employer or business required if the candidate takes any
action related to the election while at work? While acknowledging that candidates
should always be aware that corporate contributions to their campaigns are prohibited,
the Board finds it unrealistic to expect that a candidate will never have a conversation orphone call related to the campaign during working hours. Such a standard would be
both unreasonable and, as a practical matter, unenforceable.
Employers recognize that employees will need to make or receive the occasional
personal phone call or visitor while at work. Allowing an employee to accept a personalphone call or visitor is a benefit given to the employee by the employer. If, as an
example, the employee decides to use a personal phone call to order more lawn signs
for the campaign, that phone call does not become a corporate contribution to thecandidate’s committee. Instead, the personal call made while at work is from theemployee who made the call, not the employer that allows the call to occur.

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Typically the employer expects that personal phone calls or visits will be short induration, limited in number, and that they will not significantly interfere with theemployee's work. The value of a personal phone call or meeting, treated as acontribution from the employee, is unlikely to reach the threshold where in-kind
contributions must be recorded and reported by the campaign committee. 3
It is important to note that a corporate contribution to a campaign committee may occur if
the employee’s activity causes an actual increase in the corporation’s operating costs, orif the employee is given greater latitude to make personal phone calls or visits related
the campaign compared to the number of personal calls or visits other employees areallowed. As examples, the use of an employer’s photocopier or a phone bank to support
the campaign must be paid for with committee funds to avoid a prohibited corporate
contribution.
ISSUE FOUR
Is the cost of preparing and displaying a sign advertising your location and phone
number as a member of the legislature a constituent service that may be paid for by thecommittee and reported as a noncampaign disbursement?
OPINION
The Board addressed a very similar set of facts regarding a sign providing contact
information for a member of the legislature in Advisory Opinion 275. In that opinion the
Board concluded that the definition of constituent services “…is to be interpreted
narrowly, the Board concludes that advertising your availability to answer questions is
not the provision of a constituent service.” This opinion also provided that the requester
could pay for the cost of the sign with the legislator’s campaign committee funds if theexpense was reported as a campaign expenditure. The Board concludes that the result
reached in Advisory Opinion 275 is equally applicable to the facts now before it.
If a sign is divided and used for more than one purpose, as described in the facts of thisopinion, the committee should pay only for that portion of the sign used to advertise
information on contacting the legislator.

Issued: March 1, 2016
Christian Sande, Chair
Campaign Finance and Public Disclosure Board

3

Minnesota Statutes section 10A.13, subdivision 1, provides that a campaign committee does not need tokeep an account of in-kind contributions valued at $20 or less.

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Campaign Finance andPublic Disclosure Board
Date: January 8, 2016
To:

Board members

From: Gary Goldsmith, Executive Director
Re:

Telephone: 651-539-1190

Amendment of Advisory Opinion 400

Advisory Opinion 400 was issued on July 22, 2008. It responded to a requester's series ofquestions about a political consultant's work for both for a candidate and an association thatwould make independent expenditures affecting that candidate's election. The requester
wanted guidance concerning how the consultant's work for the candidate and the association
should be separated in order to avoid destroying the independence of the association's
independent expenditures.
The Board approved a series of policies and procedures that would protect the independence ofthe subject independent expenditures. The Board concluded that the consultant would have tomaintain essentially separate divisions that could not communicate with each other.
For your information, I attach a copy of the public version of the opinion to this memo. The
public version is identical to the nonpublic version except that the requester is not identified.
The requester’s identity is not relevant to the issue discussed in this memo.
In the opinion, the Board addressed the time period in which the consultant would be required tomaintain two separate operating divisions, as follows:
The period of time within which to examine whether there is sufficientisolation between the work being done for two clients begins when the workfor the first client commences and ends at the later of (1) the date that theconsultant’s work for both clients ends or (2) the end date of the election
cycle.
This makes sense because if separation is maintained during that time period, there can be nocooperation or implied consent. However, the Board went further than the request asked,
making the following additional statement:
Use by one of a consultant’s clients of material produced by the consultant foranother client does not result in cooperation or coordination between theclients if the material has been published by the producer and the second
client obtains the material from public sources.
This statement was not required to answer the questions posed and, based on more recent
examination of independent expenditures by the Board and by the Federal Election
Commission, may not accurately reflect the law regarding re-use of candidate materials.

While the Board has implicitly approved the re-use of photos published on a candidate's website
and has declined to find cooperation when a party unit used a few seconds of a candidate's
published video segment, the Board has limited its approval of re-use of candidate materials tothese two situations. In considering the matter of re-use of video footage in a gubernatorial
election, the Board specifically limited its conclusion to the use of only 3-5 seconds of video outof a much larger segment. The language of Advisory Opinion 400 could be read to suggest thatonce a candidate publishes campaign material, others can re-publish it in full and still treat thecosts as independent expenditures. The Board has not reached such a conclusion except assuggested in Advisory Opinion 400.
Staff brings this matter to the Board's attention so that the Board has the option of amending
Advisory Opinion 400 to remove the subject statement. Authority to amend advisory opinions isprovided in section 10A.02, subdivision 12(b)(1). Amendment of this opinion by removing the
subject statement would not establish any new policy with respect to re-use, but would eliminate
the suggestion that wholesale re-use of a candidate’s complete publications or other campaign
materials would necessarily qualify for independent expenditure treatment.
Should the Board wish to amend this section, the following motion would be in order:
Resolved,That the Campaign Finance and Public Disclosure Board amends Advisory
Opinion 400, issued July 22, 2008, by deleting the following statement:
Use by one of a consultant’s clients of material produced by
the consultant for another client does not result in cooperationor coordination between the clients if the material has been
published by the producer and the second client obtains thematerial from public sources.

Attachment
Advisory Opinion 400-2-Revised: 2/23/16

CAMPAIGN FINANCE AND PUBLIC DISCLOSURE BOARD
March, 2016
ACTIVE FILES
Candidate/Treasurer/
Lobbyist

Committee

Derrick Lehrke

Derrick Lehrke for House

North East Social

Evan Rapp

Evan Rapp Volunteer
Committee

Report Missing/
Violation

Late Fee/
Civil Penalty

Referred
to AGO

Date S&C
Servedby Mail

Principal Campaign
Committee Amended 2014
Year-End Report ofReceipts and Expenditures$1,0008/3/2015

9/ 21/2015
10/6/2015

Late Filing Fee for latefiling of the Principal
Campaign Committee 2013
Year-End Report$1252013 Lobbyist Principal
Report2014 Lobbyist Principal
Report-Late filing$1,000/$1,000

Fund reimbursement$928.50/$928.50

Default
Hearing
Date

Date
Judgment
EnteredCase Status

A Motion for Summary
Judgment Hearing isscheduled for March
31, 2016 at 1:30
$125 received

10/13/2015

12/31/2015

Personal service
placed on hold by
the Board$475/$100
10/13/2015

Placed on hold by theBoard

CLOSED FILES
Candidate/Treasurer/
Lobbyist

Committee

Report Missing/
Violation

Late Fee/
Penalty

Referred
to AGO

Date S&C
Servedby Mail

Default
Hearing
Date

Date
Judgment
EnteredCase Status

Cedar Towing & Auction

2014 Lobbyist Principal
Report-Late filing
2014Amended Principal
Report$1,000/$1,000

10/13/2015

12/31/2015

Closed