Source: http://www.cfboard.state.mn.us/bdinfo/minutes/r97-08-22.html
Timestamp: 2014-07-30 15:10:39
Document Index: 419958826

Matched Legal Cases: ['§211', '§\n10', '§10', '§10', '§10', '§10', '§ 10', '§10', '§10', '§10']

Board Meeting Minutes - August 22, 1997
STATE OF MINNESOTA CAMPAIGN FINANCE AND PUBLIC DISCLOSURE BOARD . . . . . . . . . Friday August 22, 1997 . . . . . . . . . Afton Conference Room Second Floor, Centennial Office Building . . . . . . . . . MINUTES Meeting was called to order by Chair Anderson.Members present:
Anderson, Owens Hayes, Pauly, Rodriguez, Slocum, Wilson.Others
present: Olson, Goldsmith, Swanson, Perreault, staff; Raschke,
MINUTES (July 18, 1997)Ms. Wilson's MOTION: To approve
the July 18, 1997, minutes as drafted.
Vote on MOTION: Unanimously passed by four members (Pauly, Slocum
CHAIR'S REPORT Board Meeting Schedule - Next Board meeting: Friday, September
Conference on Governmental Ethics Laws (COGEL) Conference
- Chair Anderson announced that Mr. Goldsmith is unable to attend
the 1997 COGEL conference. The Board will send four people to
the conference: Mr. Anderson, Ms. Owens Hayes, Counsel Gretz,
and Ms. Olson.
EXECUTIVE DIRECTOR'S REPORT Ms. Olson reported the following:
Staff activities: McMullen Software Corporation has been selected as the vendor
to assist the Board in providing a Campaign Finance Management
System to political committees and political funds. Staff is in
the process of negotiating a contract with the vendor.
Updated copies of Minnesota Rules chapters 4501-4525 with the
July 1st changes are available for Board members.
Staff met with the Board's executive budget officer for the biennial
reconciliation of public subsidy certifications from the Department
of Revenue with the Board's records and the state accounting system.
Miscellaneous: The legislative auditor reviewed final FY 97 figures with Mr.
Goldsmith and Ms. Swanson. An exit conference will be scheduled
soon. At that conference, staff will receive the draft copy of
the legislative auditor's findings and report. A copy of the final
report should be available for members at the September Board
Gail Olson, Deputy Attorney General, notified staff that she is
changing positions in the Attorney General's office. Ms. Olson
was Susan Gretz's supervisor. Joan Peterson will fill Ms. Olson's
former position. Ms. Gretz will remain as the Board's legal counsel.
Staff, in consultation with the Board chair, requested the Attorney
General's office to provide independent counsel to assist the
Board in deliberations about certain matters. Ms. Olson met with
Deputy Attorney General Lee Sheehy, Joan Peterson and Ken Raschke
on August 21, 1997. The Attorney General's office believes they
can represent the Board in the matter in question. However, Mr.
Sheehy acquiesced to the Board's request. The Attorney General's
office will arrange for special counsel, subject to the Board's
approval. Tentatively, former Supreme Court Justice Simonette
will act as special counsel. The Board will be billed for the
cost of the independent counsel.
At the July Board meeting, Board members were reminded to include
the State of Minnesota as a source of compensation on Supplementary
Statements of Economic Interest. Blank Statements were available
for members who wish to amend at this time. Staff will remind
members of other Boards required to file Statements to include
this information on the supplementary statement.
Enforcement Report Ms. Perreault presented the following enforcement matters for
Consent Item Board Action: Authorization of third letter, to be sent by
certified mail, to compel the filing of a required amendment to
the political committee's Registration and Statement of Organization,
and subsequent legal enforcement action if the report is not filed.
An amendment letter and one subsequent notice have previously
been sent to each client.
James H Stock, treasurer, Stevens County RPM Board Action: Authorization of certified letter for nonpayment
of late filing fees and subsequent legal enforcement action in
the event the fee is not paid. Two notices have been previously
sent to each client.
Statement of Economic Interest due April 28,1997
John Nakasone, member, Urban Initiative Board: $100
Bradley Clifford (Representing Coalition for Advance of
Telecom in MN): $100
Bradley Clifford (Representing Coalition of Export Minn):
Board Action: Authorization of third letter, to sent by certified
mail, to compel the filing of a required amendment to the Report
of Receipts and Expenditures and to authorize subsequent legal
enforcement action if the report is not filed. An amendment
letter and two subsequent notices have previously been sent to
William Anderson, treasurer, Friends of Rob Hafiz Committee
Ms. Rodriguez's MOTION: To authorize the actions specified in
the consent matters.
Vote on MOTION: Unanimously passed by five members (Slocum absent).
Discussion Items Waiver Request David Erickson, Member, Minnesota State Colleges and Universities
(see July 18, 1997, Board minutes)
A $75 late filing fee accrued for the late filing of Mr. Erickson's
Supplementary Statement of Economic Interest due April 15, 1997.
The statement was filed on June 16, 1997. Mr. Erickson asked for
an opportunity to appear before the Board on this matter.
Chair Anderson welcomed Mr. Erickson to the Board meeting. Mr.
Erickson explained to the Board the set of circumstances that
he believed led to the accumulation of the late filing fee and
to request that the late filing fee be waived and that the Board
remove all references using his name from the record of the Board
meeting on July 18, 1997, or any other meeting.
Mr. Slocum's MOTION: To grant Mr. Erickson's request to waive
the $75 late filing fee.
Chair Anderson explained that the matter was discussed during
public meetings and reference to the matter would not be removed
from previous Board meeting minutes.
Marvin Cole, treasurer, People FPBP of the USA Marvin Cole failed to file his committee's pre-general election
Report of Receipts and Expenditures due October 28,1996, and accordingly
a late filing fee of $500 accrued. At its March 21,1997, meeting
the Board approved a motion to administratively terminate the
committee, and suspend enforcement activities not already in progress.
Mr. Cole had no permanent address and was receiving his mail at
general delivery in Iowa City, Iowa.
On June 9, 1997, staff mailed Mr. Cole a statutory notice informing
him of the Board's intent to place collection of the late filing
fee with the State's Revenue Re-capture program. The letter was
returned to the Board office on July 19, 1997 marked "moved-left
no address" .
The Board directed staff to continue its efforts to collect the
$500 late filing fee through revenue recapture without the notice,
if permitted by statute.
Request for an Extension of Termination of Inactive Committee
Cynthia Whiteford, treasurer, (Roger) Moe for Governor
The Moe for Governor committee received a notice from staff on
June 23, 1997, informing it that based on its filed Reports of
Receipts and Expenditures it has been identified as an "inactive"
committee. The committee was required to file a termination report
with the Board by August 23, 1997 (60 days after the notice).
On July 28, 1997, staff received a letter from the treasurer of
the Moe for Governor committee requesting that the Board extend
the requirement to terminate until December 31, 1998. The letter
stated that this would allow them to complete the election cycle
without having to register again.
Ms. Rodriguez's MOTION: To grant Ms. Whiteford's request to extend
the requirement to terminate the (Roger) Moe for Governor committee
until December 31, 1998.
Robert Nankervis, treasurer, Iron Range Gun Owners PAC, #40372
The Iron Range Gun Owners PAC received a notice from staff on
On August 20, 1997, staff received a letter from Mr. Nankervis
requesting that the Board extend the requirement to terminate
as the committee will be making expenditures during fall 1997.
Ms. Owens Hayes' MOTION: To grant Mr. Nankervis' request to extend
the requirement to terminate the Iron Range Gun Owners PAC until
Notification to County Attorney The year-end Report of Receipts and Expenditures for the Friends
of Thomas Ross Committee, filed July 16,1997, included a contribution
from the AZZONE Security /Investigations Agency-A.S.I.A. Inc.
The records at the Secretary of State's office indicate that the
contributor is a corporation. Staff requests Board direction on whether to send notification
to the County Attorney for possible violation of Minn. Stat. §211B.15.
Ms. Owens Hayes' MOTION: To direct staff to refer the matter of
the corporate contribution to the Friends of Thomas Ross Committee
to the County Attorney's office.
Address and Employment Information Disclosure Enforcement -
Final Report (See July 18, 1997, Board minutes)
Staff called the committees who did not respond to previous notices.
Certified letters were sent to three committees. Of those, one
committee responded and provided all the necessary information,
two have not responded to any of the letters. Other committees
not in full compliance have provided an explanation of what attempts
they have made to acquire the necessary information.
Fifteen committees have not supplied complete information. A report
listing those committees is available for Board review.
Ms. Rodriguez's MOTION: To direct staff to notify noncomplying
committees to: 1) continue their efforts to secure complete compliance
with address and employer disclosure requirements for all contributors;
2) submit a detailed list of the efforts the committee has made
to secure the necessary disclosure from each contributor for Board
consideration at its September 26, 1997, meeting.
Lobbyist Principal - Final Report Pursuant to Board Direction staff attempted to obtain full compliance
with the requirement that lobbyist principals' file an Annual
Report of Lobbyist Principal, due March 15, 1997. Staff sent two
notices, and a third letter was sent printed on letterhead from
the Attorney General's Office to the non-filing lobbyist principals.
A list of non-filing lobbyist principals was sent to the legislative
leadership and assistant leaders.
The following lobbyist principals failed to file the Annual Report
of Lobbyist Principal:
American Association of University Women - Minnesota Chapter
Capstone Auto Pawnbrokers
Cedar Towing Inc
Lexington Company (The)
Minnesota Pawnbrokers Association
Minnesota Technology Corridor Corporation
Petroleum Tank Group
Pro Family Television
Rick's Cabaret International, Inc
United We Stand America - Minnesota, Inc
Mr. Rodriguez's MOTION: To direct staff to: 1) discontinue further
efforts to secure compliance; and 2) make the list of delinquent
lobbyist principals public by listing those entities in the Board
minutes, on the Board website, and through a news release to the
Request to Terminate Lobbyist Robert Lee Fern, (Representing Ice Cream Bar , Inc. (the)
As a lobbyist principal, the Ice Cream Bar, Inc. is requesting
that the Board terminate the registration of Robert Lee Fern as
a lobbyist for its organization. The Ice Cream Bar, Inc. states
that it requested Mr. Fern to terminate his registration as a
Mr. Fern registered as a lobbyist for the Ice Cream Bar, Inc.
in February, 1996, and reported no disbursements. The Ice Cream
Bar, Inc. advised staff that Mr. Fern receives no compensation
from the organization nor does he meet the definition of a lobbyist.
According to the principal, Mr. Fern has not engaged in lobbying
for the Ice Cream Bar, Inc. since 1996.
Mr. Fern did not file the April 15, or July 15, 1997, Lobbyist
Disbursement Reports.
Ms. Rodriguez's MOTION: To administratively terminate Mr. Fern's
lobbyist registration for the Ice Cream Bar, Inc. effective December
Informational Items Payment of Late Filing Fees Report of Receipts and Expenditures due October 28, 1996
Donald L. Moos, treasurer, (Becky) Livermore Volunteer
Committee: $25 (partial payment on installment plan; $100
remains to be paid)
David Meier, treasurer, (David) Meier Volunteer Committee:
Shelly Martin, treasurer, Chandler (Kevin) for Senate:
$165 ($100, late fee; $65, service fee)
Jeanette M. Smith, treasurer, Committee to Elect Bonnie
Walters $130 ($100, late fee; $30, service fee)
Junita Flowers, (Representing Family and Children's Service):
William Knutson, member, Medical Services Review Board:
Statement of Economic Interest due June 20, 1997
John C. Kim, member, Board of Lola & Rudy Perpich
Minnesota Center for Arts Education: $5
Payment of Civil Fines Jon C. Saunders, treasurer, (Dean) Johnson Volunteer
Committee - During the election year 1996, the Johnson
Volunteer Committee made campaign expenditures of $46,761.03,
which exceeded the applicable expenditure limit by $1,193.03.
Dean Johnson entered into a conciliation agreement, effective
July 29, 1997, to remedy the matter. On July 22, 1997, the Committee
paid a civil fine of $1,166.03, one times the amount by which
the campaign expenditures exceeded the applicable limit, excluding
the $27 billed for the miscalculated expenditure for the rental
All payments of late filing fees and civil fines have been deposited
in the general fund of the state pursuant to statute.
Return of Public Subsidy George W. Bateman, treasurer, (George) Bateman for Representative:
$205.81, partial payment through chapter 13 bankruptcy. Public
subsidy totaling $1,866.01 remains to be returned from 1990.
Financial report and agency deposits - Mr. Goldsmith submitted
a final report covering July, 1996, through June 30, 1997.
Annual Report Board members reviewed a draft of the Annual Report for fiscal
The Board agreed to certain changes in the draft.
Ms. Rodriguez's MOTION: To approve the Annual Report for fiscal
year 1997 as amended in discussion.
ADVISORY OPINION REQUEST Request for the following advisory opinion is nonpublic data.
Advisory Opinion #273 - Gift to members of a group of
conference receptions or meals The Board reviewed a draft response to an advisory opinion request
by a public official who asks if dinners and receptions paid for
in part by lobbyist principals at a conference or meeting as described
in the facts falls within an exception to the Minn. Stat. §
10A.071 prohibition on gifts from lobbyist principals to officials?
Ms. Rodriguez's MOTION: To lay over discussion of the advisory
opinion request to the September 26,1997, Board meeting.
Vote on MOTION: Unanimously passed by five members (Owens Hayes
LEGAL COUNSEL'S REPORT Board members reviewed a memo from Counsel Gretz outlining the
status of cases which have been turned over to the Attorney General's
office (see memo attached).
REPORT FROM EXECUTIVE SESSION Findings in the Matter of a Complaint Regarding the (Torrey)
Westrom for State Representative Committee The Board issued findings concerning probable cause in the matter
of a complaint regarding the (Torrey) Westrom for State Representative
Committee. The Board ordered that the findings and the record
of the investigation be made a part of the public records of the
Board (see findings attached).
Findings in the Matter of a Complaint Regarding Tim Penny
The Board issued findings concerning probable cause in the matter
of a complaint regarding Tim Penny. The Board ordered that the
findings and the record of the investigation be made a part of
the public records of the Board (see findings attached).
Findings in the Matter of an Investigation Regarding Bonnie
Walters The Board issued findings concerning probable cause in the matter
of a complaint regarding Bonnie Walters. The Board ordered that
the findings and the record of the investigation be made a part
of the public records of the Board (see findings attached).
ADJOURNMENT Meeting adjourned.
To: Jeanne Olson, Executive Director
From: Susan Gretz, Assistant Attorney General
Subject: Status Report of Campaign Finance and Public Disclosure
I. MAJOR CASES/MAJOR ISSUES: None at this time.
II. COMMERCIAL LITIGATION DIVISION: CFPDB v. Rick Stafford and the 61st Senate District DFL.
Summons and Complaint prepared for failure to file year end Report
of Receipts and Expenditures and pay $100.00 late filing fee.
Professional process server tried four times to serve Mr. Stafford
at his last known address but was advised that Mr. Stafford has
moved out of state. The process server was advised by the DFL
party that Mr. Stafford is terminally ill and in a hospital or
hospice. We will be inquiring of the Board whether they still
want to pursue this matter in light of the inability to serve
CFPDB v. George Bateman $205.81 was received from the Bankruptcy
Trustee for Bateman's repayment of public subsidy. $1,866 remains
CFPDB v. Joe Block, Kevin Correy, and the (Kevin) Correy for
Senate Committee (report and late fee). (Referred 12/11/96)
Judgment for $575 was entered May 2, 1997 in Ramsey County and
docketed in Steele County. Judgment has been referred to MCE for
CFPDB v. Kevin Correy and the (Kevin) Correy for Senate Committee
(Return of Public Subsidy). (Referred July 8, 1997). New file
to recover $12,933.30 in public subsidy due to the candidate's
failure to disclosure receipt of matching contributions. Summons
and complaint will be prepared.
CFPDB v. Michael Brabay. The missing information regarding
an amended report is now included in the file and the judgment
now satisfied in full. Case may now be closed.
CFPDB v. Amy des Parois and the People for (Michael) des Parois
Committee. Summons and Complaint were served June 26, 1997
for failure to file year end Report of Receipts and Expenditures
and pay $100.00 late filing fee. On July 25, 1997, the missing
report was filed, but the late fee not received.
CFPDB v. Michael Forbes and the Olmstead County DFL Women's
Club. Summons and Complaint for failure to file year end Report
of Receipts and Expenditures and pay $100.00 late filing fee were
served on June 19, 1997. Papers for default judgment are being
CFPDB v. Jill Henderson and the Stebbens for State Senate Committee.
Summons and Complaint for failure to file year end Report of Receipts
and Expenditures and pay $100.00 late filing fee were sent to
Metro Legal on June 24, 1997, but they are having trouble locating
CFPDB v. Jill Henderson and the Stebbens for State Representative
Committee. Same as above.
CFPDB v. Connie Janssen. (Referred 12/11/96) Still trying
to locate Janssen for service of the Summons and Complaints for
multiple missing reports (pre-primary, pre-general and year end
report) plus late filing fees. Past attempts at service have been
CFPDB v. Grant Lebens and the Rosenstiel for Legislature Committee.
Unsuccessful service of summons and complaint for failure to file
year end Report of Receipts and Expenditures and pay $100.00 late
filing fee. Found different address for Rosensteil so service
was sent out again July 16, 1997.
CFPDB v. Shelly Martin and the (Kevin) Chandler for Senate
Committee. Summons and Complaint for failure to file
filing fee were served on June 26, 1997. Report and late fee for
$165 were received. File will now be closed.
CFPDB v. Donna Meigs. Board decided on July 18, 1997 to
take no further action in this matter as Meigs has relocated to
Dallas, Texas. We are closing our file.
CFPDB v. Mark Nygaard, R-Kids (Remember Kids in Divorce Settlements).
Summons and Complaint for failure to file a Lobbyist Disbursement
Report and pay a $100.00 late filing fee were served June 4, 1997.
No answer, so court papers for default judgment are being prepared.
CFPDB v. Michael Schultz and the Schultz Volunteer Committee.
and Expenditures and pay $100.00 late filing fee was sent out
for service. Although neighbors report Schultz lives out of state,
the process server did serve Schultz' mother. We are researching
whether this is a viable service.
CFPDB v. Jeanette Smith and the Committee to Elect Bonnie Walters.
After our Summons and Complaint for failure to file year end Report
of Receipts and Expenditures and pay $100.00 late filing fee was
served, report was received, and Bonnie Walters paid the $130
late fee. This matter may now be closed.
CFPDB v. Jeanette Smith and the 19th Senate District DFL.
After Summons and Complaint were served, report was received,
but not late fee.
CFPDB v. Jeanette Smith and the Minnesota NOW PAC. Summons
and Complaint were served, however, unlike above two, this report
has not been received, nor late fee.
19. CFPDB v. Connie Heisenfelt. New action for civil fine
of $360 for exceeding contribution limit.
III. ACTIONS FOR INJUNCTIVE RELIEF: 1. CFPDB v. Phil Ratte: Bench warrant still outstanding
for Ratte.
cc: Christie Eller
STATE OF MINNESOTA CAMPAIGN FINANCE AND PUBLIC DISCLOSURE BOARD (formerly Ethical Practices Board) FINDINGS IN THE MATTER OF A COMPLAINT REGARDING THE (TORREY) WESTROM FOR STATE REPRESENTATIVE COMMITTEE Procedural Background On May 9, 1997, Todd Nelson, treasurer for the (Clair) Nelson
Volunteer Committee, ("Complainant") filed a Complaint
with the Campaign Finance and Public Disclosure Board ("Board")
alleging that the (Torrey) Westrom for State Representative Committee
("Respondent") violated Certain provisions of Minnesota
Statutes, chapter 10A.
Complainant alleges that the Respondent violated the campaign
spending limits applicable for the 1996 election year based on
Complainant alleges that campaign advertising and literature
pieces supporting the Respondent, which were paid for by other
entities, resulted in unreported in kind contributions and expenditures
Complainant alleges that the Respondent did not report all
of its campaign expenditures for newspaper advertising during
the 1996 election year.
Complainant alleges that the Respondent reported less expenditures
paid to Mail Stations, Inc. on its January 31, 1997, report than
it reported paid to the same vendor on its October 28, 1996, report.
Complainant alleges that in 1995 the Respondent prepaid for
election year radio advertising, and that the transaction should
have been reported as a 1996 campaign expenditure.
The evidence submitted in support of the complaint consists of
copies of Agreement Forms for Political Broadcasts between Torrey
Westrom and radio stations KMRS/KKOK; various receipts and invoices;
Agreement Forms for Political Broadcasts between radio stations
KMRS/KKOK and Americans for Limited Terms and Jobs Creation Coalition,
The Respondent addressed the issues raised by the Complainant
in a letter dated July 4, 1997.
Regarding issue #1, the Respondent replies that there was no contact
with other groups who spent money on its behalf, except for two
in kind contributions which were disclosed by the Westrom for
State Representative Committee on the January 31, 1997, Report
In addition, representatives of other entities that Complainant
alleges made expenditures on behalf of the Respondent provided
responses to the Board's inquiries.
Regarding issue #2, the Respondent replies that its receipts for
purchases made at the Grant County Herald agree with the list
supplied by Complainant, with one exception. An issue oriented
advertisement paid for by the Grant County Republicans was incorrectly
included on the listing of advertisements paid for by the Respondent.
Regarding issue # 3, the Respondent replies that the discrepancy
between the $8,012.91 paid to Mail Stations, Inc. and reported
on the October 28, 1996, Report of Receipts and Expenditures and
the $6,286.80 paid to the same vendor and reported on the January
31, 1997, Report of Receipts and Expenditures is based on two
1. the Vendor issued a refund of $483.13 for cancellation of services
previously ordered and paid for, but not received by the Respondent
2. $1,242.98 of the amount reported paid to this vendor on the
October, 28, 1996, report was actually paid for by Ryan Bronson.
The reimbursement to Mr. Bronson was reported separately on the
January 31, 1997, report for better clarification.
Regarding issue #4, the Respondent replies that conversations
with a sales representative from KMRS/KKOK radio stations during
1995 resulted in an agreement to purchase 400 prepaid radio ads,
and that the ads would be aired during the 1996 election year.
The cost to run each ad on both stations was $7.50 per 30 seconds.
The Respondent reported this expenditure on its report covering
calendar year 1995 as a campaign expenditure.
The matter was considered by the Board in executive session on
June 27, 1997. The Board further considered the matter in executive
session on July 18, 1997, and August 22, 1997. Neither the Respondent
nor Complainant testified. The matter was considered based on
the compliant, the Respondent's reply, the supporting documents
submitted by Complainant and the Respondent, and the submissions
by representatives of other entities.
STATEMENT OF THE EVIDENCE 1. The (Torrey) Westrom for State Representative Committee (the
"Committee") is a principal campaign committee registered
with the Campaign Finance and Public Disclosure Board ("Board").
2. The Committee was required to limit its campaign expenditures
during the 1996 election year by virtue of a public subsidy agreement
signed by the candidate, Torrey Westrom.
3. The campaign expenditure limit applicable to the Committee
for 1996 was $25,063. On its Report of Receipts and Expenditures,
the Committee disclosed campaign expenditures of $25,041.19 for
election year 1996.
4. The Committee reported receiving in kind contributions from
the Committee for State Prolife Candidates ("MCCL")
and NFIB, political committees and funds registered with the Board.
These contributions were $160.96 and $84 respectively, for a total
of $244.96. These contributions were also reported as in kind
campaign expenditures by the Committee.
5. Responses received from representatives of other entities and
documentary evidence submitted do not provide evidence that expenditures
by these entities resulted in contributions to the Committee,
other than the in kind contributions which were reported.
6. An issue oriented advertisement paid for by the Grant County
Republicans was incorrectly included on the listing of advertisements
7. The discrepancy of $1,726.11 between amounts reported paid
to Mail Stations, Inc. on October 28, 1996, and January 31, 1997,
results from a refund in the amount of $483.13 made to the Committee
by the vendor and the reporting of $1,242.98 as a third party
reimbursement to Ryan Bronson on the January report.
8. During 1995 the Committee made a transfer of $3,000 to KMRS/KKOK
radio stations, which Torrey Westrom and the stations' representative
understood and agreed was to purchase 400 advertisements, at the
cost of $7.50 per 30 seconds each, to be run during the 1996 election.
The transfer was accompanied by an agreement signed by Torrey
Westrom and a station sales representative, and a receipt for
9. The transaction was reported by the Committee on its Report
of Receipts and Expenditures covering calendar year 1995 as a
Based on the above Statement of the Evidence, the Board makes
the following: FINDINGS CONCERNING PROBABLE CAUSE 1. The Committee received in kind contributions from MCCL and
NFIB, and these contributions were properly reported by the Committee
as in kind contributions received and as in kind campaign expenditures.
2. There is no probable cause to believe that expenditures by
other entities resulted in contributions to the Committee, other
than the in kind contributions which were reported.
3. There is no probable cause to believe that the Committee failed
to report any expenditures to the Grant County Herald.
4. There is no probable cause to believe that the Committee failed
to report any expenditures to Mail Stations, Inc.
5. The $3,000 payment to radio stations KMRS/KKOK in 1995 for
purchase of 400 radio advertisements, of 30 seconds each, to be
run in 1996 was a result of a verbal agreement between the candidate,
Torrey Westrom, and the station's sales representative. This verbal
agreement was accompanied by a written agreement signed by the
candidate and the sales representative, and a receipt for the
transfer of funds in payment of the agreement. This transaction
constitutes a "purchase" within the meaning of Minn.
Stat. §10A.01, subd. 10, which provides that an expenditure
is considered to be made in the year in which the candidate made
the purchase of goods or services or incurred an obligation to
6. There is no probable cause to believe that the Committee exceeded
its 1996 spending limit as a result of its 1995 purchase of radio
advertising to be used in 1996.
ORDER The complaint of Todd Nelson regarding the (Torrey) Westrom for
State Representative Committee is dismissed in all respects. The
Board investigation of this matter is hereby made a part of the
public records of the Board pursuant to Minn. Stat. §10A.02,
Copies of this document shall be provided to the complainant and
STATE OF MINNESOTA CAMPAIGN FINANCE AND PUBLIC DISCLOSURE BOARD (formerly ETHICAL PRACTICES BOARD) FINDINGS IN THE MATTER OF A COMPLAINT REGARDING TIM PENNY
Procedural Background On June 27, 1997, the Minnesota Senior Federation ("Complainant")
filed a complaint with the Campaign Finance and Public Disclosure
Board ("Board") alleging that Tim Penny ("Respondent")
violated certain provisions of Minnesota Statutes, Chapter 10A,
including Minn. Stat. §10A.03, by failing to register as
The Complainant alleges that the Respondent attempted to influence
legislative action in regard to opposing SF 1008 and HF 1087.
The Complainant further alleges that the Respondent is affiliated
with the firm Himle and Horner, and is paid by them to send letters
urging Minnesota citizens to write to public officials or sign
petitions opposing the legislation cited above.
The evidence submitted by the Complainant consists of copies of
a letter dated March 5, 1997, which the Complainant alleges was
sent by the Respondent to Minnesota citizens; a memorandum dated
March 26, 1997, from the Respondent to Minnesota citizens; and
an article that appeared in the July 1996 issue of the Twin
Cities Reader.
In letters dated July 10, and July 31, 1997, the Respondent states
that he does not meet the definition of lobbyist . He further
states that he spent less than one hour reviewing the contents
of the two letters referenced in the complaint. The Respondent
also states that the total expenses for the letters mailed was
less than $100, and that this was the only activity of this nature
in which he was engaged.
July 18, 1997. The Board further considered the matter in executive
session on August 22, 1997. Neither the Respondent nor the Complainant
testified. The matter was considered based on the Complaint and
the Respondent's reply.
STATEMENT OF THE EVIDENCE Tim Penny acknowledges that the two letters submitted by the
complainant were sent out with his signature, and that he serves
as a consultant to Himle Horner, a communications firm.
Tim Penny did not spend more than $250 in any calendar year
nor more than five hours in any month to influence or attempt
to influence legislative action by opposing the issues cited in
Tim Penny did not engage in any other activity, either on
his own or as a consultant to Himle Horner, that communicated
with, or urged others to communicate with, public or local officials
for the purpose of attempting to influence legislative or administrative
action, or the official actions of a metropolitan governmental
the following: FINDINGS CONCERNING PROBABLE CAUSE The Respondent's activities and spending, as described in
the complaint, were not sufficient to bring him within the definition
of lobbyist under Minn. Stat. §10A.01, subd. 11 (a)(1).
There is no probable cause to believe that the Respondent
violated the Ethics in Government Act, Minnesota Statutes Chapter
10A by failing to register as a lobbyist.
ORDER The complaint of the Minnesota Senior Federation regarding Tim
Penny is dismissed in all respects. The Board investigation of
this matter is hereby made a part of the public records of the
Board pursuant to Minn. Stat. § 10A.02, subd. 11.
STATE OF MINNESOTA CAMPAIGN FINANCE AND PUBLIC DISCLOSURE BOARD (formerly Ethical Practices Board) FINDINGS IN THE MATTER OF A CONTRIBUTION MADE BY THE COMMITTEE TO ELECT BONNIE WALTERS TO A CANDIDATE SEEKING
A POLITICAL SUBDIVISION OFFICE Procedural Background The Committee to Elect Bonnie Walters (The "Committee")
filed a Report of Receipts and Expenditures (the "Report")
for calendar year 1996, with the Campaign Finance and Public Disclosure
Board (the "Board"). Review of the Report by staff disclosed
that on October 10, 1996, the Committee made a contribution of
$200 to Mary Williamson, a candidate for Wright County Commissioner,
District 1, a political subdivision office.
Staff notified Bonnie Walters, a candidate for the Committee,
of a potential violation of Minn. Stat. §10A.27, subd. 9(c),
which prohibits a principal campaign committee from making a contribution
to a candidate seeking a political subdivision office.
Ms. Walters responded by letter dated July 24, 1997, in which
she acknowledged that the committee made the contribution. Ms.
Walters stated that she believed the donation was appropriate
and in compliance with Board's procedures.
This matter was considered by the Board in executive session on
August 22, 1997. No one from the Committee asked to appear before
STATEMENT OF THE EVIDENCE 1. The Committee to elect Bonnie Walters (the "Committee")
was a principal campaign committee registered with the Campaign
Finance and Public Disclosure Board (the "Board").
2. The Committee terminated its registration with the Board as
of October 10, 1996.
3. The Committee made a $200 contribution to Mary Williamson,
a candidate for a political subdivision office in Wright County.
4. Minn. Stat. §10A.27, subd. 9(c), prohibits principal campaign
committees from making contributions to candidates seeking a political
subdivision office.
Based on the Statement of the Evidence, the Board makes the
following: FINDINGS CONCERNING PROBABLE CAUSE 1. Minnesota Statutes, chapter 10A provides no penalty for this
2. The Board investigation of this matter is entered into the
public record in accordance with Minn. Stat. §10A.02, subd.
A copy of this document shall be provided to Bonnie Walters.