(Two sets of findings follows)
STATE OF MINNESOTA
CAMPAIGN FINANCE AND PUBLIC DISCLOSURE BOARD
FINDINGS IN THE MATTER OF A COMPLAINT REGARDING
THE (HUBERT) HUMPHREY FOR GOVERNOR COMMITTEE
Procedural Background
On September 3, 1998, Richard Nadler ("Complainant"), filed a complaint with the Campaign Finance and Public Disclosure Board ("Board") alleging that the (Hubert) Humphrey for Governor Committee ("Respondent") violated certain provisions of Minnesota Statutes, Chapter 10A.
The Complainant alleges that the Respondent accepted improper contributions totaling more than $23,000 from the (Hubert) Humphrey Volunteer Committee ("Volunteer Committee"), and that the contributions are prohibited under Minn. Stat. 10A.27, subd. 9(a). The Complainant further alleges that the Volunteer Committee paid some of the campaign expenses for the Respondent. It is the Complainant's position that various expenditures by the Volunteer Committee were actually for the benefit of the Respondent.
The evidence submitted in support of the complaint consisted of a list prepared by the Complainant based on expenditures reported by the Volunteer Committee for 1996 and 1997.
The Respondent was notified of the allegations. David Schultz, attorney, replied on behalf of the Respondent by letters dated October 21, November 20, and December 10, 1998.
Mr. Schultz states that the Respondent did not accept contributions from the Volunteer Committee. He further states that the Respondent paid fair market value whenever it leased or purchased equipment from the Volunteer Committee and reimbursed the Volunteer Committee for mileage expenses associated with the use of its van. The evidence submitted to support the responses consisted of copies of 1997 mileage records for the van; an equipment lease agreement including quotes from several vendors showing fair market value for the equipment, and a bill of sale for equipment and supplies purchased from the Volunteer Committee.
The matter was considered by the Board in executive sessions on September 25, October 30, December 11, 1998, and January 8, 1999. Representatives of the Respondent presented testimony. The matter was considered based on the compliant, the responses, documents provided by both parties, and testimony presented.
Based on the record before it, the Board issues the following:
STATEMENT OF THE EVIDENCE
1. The (Hubert) Humphrey for Governor Committee ("Respondent") and the (Hubert) Humphrey Volunteer Committee ("Volunteer Committee") are principal campaign committees registered with the Campaign Finance and Public Disclosure Board.
2. Reports filed by each committee disclose expenditures made by the Respondent and received by the Volunteer Committee covering reimbursements of mileage costs, and purchases or leasing of equipment.
3. Reports filed by the Volunteer Committee disclose both campaign expenditures and noncampaign disbursements made by the Volunteer Committee. The reports are certified by the Treasurer to be true and correct.
4. The Treasurer of the Volunteer Committee testified that all expenditures of the committee, which were not reimbursed by the Respondent, were in fact expenditures on behalf of the Volunteer Committee, not the Respondent.
5. There is no evidence provided by the Complainant, or disclosed in the record, that the Volunteer Committee subsidized the Respondent with unreported in kind contributions or by paying expenses that were really in support of the Respondent's campaign.
Based on the above Statement of the Evidence, the Board makes the following:
FINDING CONCERNING PROBABLE CAUSE
There is no probable cause to believe that the (Hubert) Humphrey for Governor Committee accepted prohibited contributions from the (Hubert) Humphrey Volunteer Committee.
Based on the above Finding, the Board issues the following:
ORDER
The complaint of Richard Nadler regarding the (Hubert) Humphrey for Governor 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, subd. 11.
Board staff shall provide copies of this finding to Richard Nadler and the (Hubert) Humphrey for Governor Committee.
Dated: January 8, 1999
Carolyn D. Rodriguez, chair
Campaign Finance and Public Disclosure Board
STATE OF MINNESOTA
CAMPAIGN FINANCE AND PUBLIC DISCLOSURE BOARD
FINDINGS IN THE MATTER OF A COMPLAINT REGARDING
THE (HUBERT) HUMPHREY VOLUNTEER COMMITTEE
Procedural Background
On September 3, 1998, Richard Nadler ("Complainant"), filed a complaint with the Campaign Finance and Public Disclosure Board ("Board") alleging that the (Hubert) Humphrey Volunteer Committee ("Respondent") violated certain provisions of Minnesota Statutes, Chapter 10A.
The Complainant alleges that the Respondent made improper contributions to the (Hubert) Humphrey for Governor Committee ("Governor Committee"), and that the contributions are prohibited under Minn. Stat. 10A.27, subd. 9(a). It is the Complainant's position that various expenditures made by the Respondent were actually for the benefit of the Governor Committee. The Complainant further alleges that the Respondent made excessive charitable contributions and that committee funds were converted to personal use for its candidate.
The evidence submitted in support of the complaint consisted of a list prepared by the Complainant based on expenditures reported by the Respondent for 1996 and 1997.
The Respondent was notified of the allegations. Charles Nauen, attorney, replied on behalf of the Respondent by letters dated October 16, December 3, December 9, December 10, and December 23, 1998.
Mr. Nauen states that the Respondent did not make contributions to, nor did it pay for any expenses for the Governor Committee. The Governor Committee paid fair market value for use of the Respondent's equipment, and reimbursed the Respondent for mileage associated with the use of its van.
Mr. Nauen takes the position that expenses alleged to be excessive charitable contributions are in fact tickets to various events attended by Attorney General Humphrey, or his designated representatives, as a cost of serving in office, and that other expenditures which are the subject of this complaint were also costs related to serving in office.
The evidence submitted to support the responses consisted of copies of 1997 mileage records for the van, pertinent pages from the 1997 Governor Committee report relating to payments made to the Respondent, and additional disclosure of expenses the Respondent reimbursed to individuals.
The matter was considered by the Board in executive sessions on September 25, October 30, December 11, 1998, and January 8, 1999. The treasurer and other representatives of the Respondent presented testimony. The matter was considered based on the compliant, the responses, documents provided by both parties, and testimony presented.
Based on the record before it, the Board issues the following:
STATEMENT OF THE EVIDENCE
1. The (Hubert) Humphrey Volunteer Committee ("Respondent") and the (Hubert) Humphrey for Governor Committee("Governor Committee") are principal campaign committees registered with the Campaign Finance and Public Disclosure Board.
2. Reports filed by each committee disclose expenditures made by the Governor Committee and received by the Respondent covering reimbursements of mileage costs, and purchases or leasing of equipment. Reports filed by the Respondent disclose both campaign expenditures and noncampaign disbursements. The reports are certified by both committee treasurers to be true and correct.
3. The treasurer for the Respondent testified that all expenditures made on behalf of the respondent, which were not reimbursed by the Governor Committee, were in fact expenditures on behalf of the Respondent, not the Governor Committee.
4. There is no evidence provided by the Complainant or disclosed in the record that the Respondent subsidized the Governor Committee with unreported in kind contributions or by paying expenses that were really in support of the Governor Committee's campaign.
5. If the Respondent made excessive charitable contributions, it would be considered a violation of Minn. Stat. 211B, and not within the Board's jurisdiction. However, the Respondent provided sufficient information to substantiate that expenses alleged to be charitable contributions were not charitable contributions, but costs associated with serving in office for attendance at certain events by Attorney General Humphrey, or his designated representatives.
6. The Respondent also provided sufficient information that expenses alleged in this complaint to be for the personal use by the candidate are costs associated with serving in office.
7. The payment to the Sharon Sayles-Belton Committee was reported as a noncampaign disbursement. The payment was for tickets to the mayor's inauguration. Respondent asserts that attendance at the Mayor's inauguration was a cost of serving in office. Nevertheless, by letter dated December 23, 1998, Charles Nauen, counsel for the Respondent, notified the Board that Attorney General Humphrey reimbursed the committee $150 for the cost of the tickets.
Based on the above Statement of the Evidence, the Board makes the following:
FINDING CONCERNING PROBABLE CAUSE
1. There is no probable cause to believe that the (Hubert) Humphrey Volunteer Committee made prohibited contributions to the (Hubert) Humphrey for Governor Committee.
2. There is no probable cause to believe that funds collected by the Humphrey Volunteer Committee were converted to personal use.
3. There is no probable cause to believe that cost of tickets to attend charitable events were not properly reported as costs of serving in office.
4. When the subject report of the Humphrey Volunteer Committee was filed on February 4, 1998, it itemized a $150 noncampaign disbursement to the Sharon Sayles-Belton Committee. Pursuant to notice from the Board that this may be prohibited as a contribution to a candidate seeking local office, Attorney General Humphrey reimbursed the committee $150 for the contribution. Based on the fact that the Humphrey Volunteer Committee was reimbursed for this disbursement, there is no probable cause to believe that any violation exists related to this payment.
Based on the above Findings, the Board issues the following:
ORDER
The matter having been resolved, the Board's investigation is concluded.
The complaint of Richard Nadler regarding the (Hubert) Humphrey Volunteer 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, subd. 11.
Board staff shall provide copies of this finding to Richard Nadler and the (Hubert) Humphrey Volunteer Committee.
Dated: January 8, 1999
Carolyn D. Rodriguez, chair
Campaign Finance and Public Disclosure Board