STATE OF MINNESOTA

CAMPAIGN FINANCE AND PUBLIC DISCLOSURE BOARD

FINDINGS IN THE MATTER OF A CONTRIBUTION MADE BY THE

(LOYAL) HYATT CAMPAIGN COMMITTEE

TO ANOTHER PRINCIPAL CAMPAIGN COMMITTEE

Procedural Background

The (Loyal) Hyatt Campaign Committee ("Committee") filed a Report of Receipts and Expenditures ("Report") for the period covering January 1, through December 31, 1998, with the Campaign Finance and Public Disclosure Board ("Board"). Review of the Report by Board staff disclosed that on October 20, 1998, the Committee made a contribution of $500 to the (Bob) Gustafson for Minnesota House Committee, a principal campaign committee registered with the Board.

Staff notified Amy Engren, treasurer, and Loyal Hyatt, candidate, of a potential violation of Minn. Stat. 10A.27, subd. 9(a), which prohibits a principal campaign committee from making a contribution to another principal campaign committee, unless the donating committee is being dissolved.

Mr. Hyatt responded by memorandum dated July 22, 1999, in which he acknowledged that the Committee made the contribution. Mr. Hyatt also stated that he was told his committee could give the contribution as long as it was being closed out. However, he said that he was not told that a time limit was involved.

The matter was considered by the Board in executive sessions on August 24, 1999. No one from the Committee asked to appear before the Board. The matter was considered based on the Report and the response provided by the Committee.

Based on the record before it, the Board issues the following:

STATEMENT OF THE EVIDENCE

1. The (Loyal) Hyatt Campaign Committee ("Committee") is a principal campaign committee registered with the Campaign Finance and Public Disclosure Board ("Board").

2. The Committee did not terminate its registration with the Board in calendar year 1998.

3. The Committee made a $500 contribution to the (Bob) Gustafson for Minnesota House Committee, another principal campaign committee registered with the Board, in calendar year 1998.

4. Minn. Stat. 10A.27, subd. 9(a), prohibits a principal campaign committee from making contributions to another principal campaign committee, unless the donating candidate's committee is being dissolved. Minn. Rules Chapter 4503.0300, subp. 2, provides that when such a contribution is made, the dissolution must be completed in the same filing period.

Based on the above Statement of the Evidence, the Board makes the following:

FINDINGS CONCERNING PROBABLE CAUSE

1. There is probable cause to believe that the (Loyal) Hyatt Campaign Committee violated Minn. Stat. 10A.27, subd. 9(a), when it made a $500 contribution to the (Bob) Gustafson for Minnesota House Committee on October 20, 1998.

2. Minnesota Statutes, Chapter 10A provides no penalty for this violation.

Based on the above Findings, the Board issues the following:

ORDER

The Board investigation of this matter is entered into the public record in accordance with Minn. Stat. 10A.02, subd. 11.

Board staff shall provide a copy to Loyal Hyatt.

Dated: _________________________________________

Sidney Pauly, chair

Campaign Finance and Public Disclosure Board