1. Chairperson Jones called the meeting to order at approximately 9:40 a.m.
    
   
2. Approval of the August 13, 2002 minutes:

   Commissioner McKay moved to approve the August 13, 2002 minutes as presented, seconded by Commissioner Detrick. Motion carried.

   Announcement(s):

   • The total number of candidates is 257, which includes 8 write-in-candidates.
   • There are 149 participating candidates.
   • To date, the Commission has distributed $ 6.2 million dollars to 22 Statewide and 88 Legislative Candidates.
   • August 22, 2002 marked the end of the Qualifying period for all participating candidates.
   • August 29, 2002 is last day that a participating candidate can apply for funding.

   Executive Director's Report:

   Voter Education:

   Candidate Debates: Staff is in the process of planning the general election debates.

   Enforcement:

   • 37 complaints have been filed
   • 14 complaints have been closed
   • 3 proposed settlements are on today's agenda for consideration

   Budget & Office Operations:

   • The fund has approximately $12.56 million.

3. Consideration of Ruth Solomon's Request for Exemption from Participating in the Primary Election Debate for State Treasurer.

   Commissioner Lemon moved to excuse Senator Solomon from attending the debate on August 30, 2002 in Bullhead City, Arizona, seconded by Commissioner Jolley. Motion carried with a vote of 3 to 2, with Commissioner Lemon, Jolley and Detrick in favor and Commissioner McKay and Chairperson Jones voting against.

4. Discussion and Consideration of General Election Candidate Statement Pamphlet. Deputy Director Schaffer reviewed the timelines for the production of the 2002 General Election Candidates Statement pamphlet. The staff recommends only that the following changes be made for the 2002 General Election Candidates Statement pamphlet.
   • Remove candidates who fail to make the general election ballot
   • Put a disclaimer in the pamphlet to say that the candidates included were those available to be in the pamphlet at the time of publication
   • Update the campaign funding date of candidates, as necessary
   • Update County Recorder information, as necessary
   • Include a schedule of debates, if possible

   Commissioner Detrick moved to accept staff recommendations regarding the production of the 2002 General Election Candidate Statement Pamphlet, seconded by Commissioner Lemon. Motion carried.

5. Consideration of Proposed Settlement agreement with the Commissioners.

   Executive Director Colleen Connor reviewed each proposed settlement agreement with the Commissioners.

   1. MUR#02-0008-John Greene, a candidate for Attorney General, had a reason to believe finding concerning the violation of reporting requirements in the Citizens Clean Elections Act (Act).

      Mr. Greene made a brief statement to the Commission prior to the Commission's motion.

      Commissioner Lemon moved to accept Executive Director Connor's recommendation that a settlement approved, seconded by Commissioner McKay Jolley. Motion carried with Commissioner Jolley McKay voting against.

   2. MUR#02-0015-Ken Miller, a candidate for State Legislature-District 7, had a reason to believe finding concern on the violation of reporting requirements in the Act.

      Commissioner Lemon moved to accept Executive Director Connor's recommendation that the proposed settlement be approved with the modification of paragraph 4 as suggested, seconded by Commissioner Detrick. Motion carried.

   3. MUR# 02-0007-Karen Johnson, a candidate for State Legislature-District 18, had reason to believe finding concerning the violation of early contributions limit in the Act as reported in her July 1, 2002 campaign report.

      Commissioner Jolley moved to accept the recommendation of Executive Director Connor that a settlement be approved, seconded by Commissioner Lemon. Motion carried.

6. Consideration of whether there is reason to believe violation occurred in the following enforcement matters.
   1. MUR#02-0028-Debra Brimhall, a candidate for State Legislature-District 5, failed to participate in the August 12, 2002 Commission-sponsored candidate debate held at the Northland Pioneer College. Due to miscommunication to Ms. Brimhall regarding the start time of the debate, Director Connor recommended that Ms. Brimhall be provided primary election funding.

      Commissioner Lemon moved to accept the recommendation of Executive Director Connor that there is no reason to believe a violation occurred, seconded by Commissioner Jolley. Motion carried. Commissioner McKay recused himself from this motion.

   2. MUR#02-0027-Debra Gullett, a candidate for State Senate-District 11, allegedly violated the reporting requirements in the Act.

      Commissioner McKay recused himself from the discussion and participation in this matter.

      Commissioner Lemon moved to accept the recommendation of Executive Director Connor that there is reason to believe a violation has occurred seconded by Commissioner Jolley McKay. Motion carried. .

   3. MUR#02-0022-Carol Somers, a candidate for State Legislature-District 26, allegedly violated the reporting requirements in Act.

      Commissioner Lemon moved to accept the recommendation of Executive Director Connor that there is reason to believe a violation had occurred seconded by Commissioner McKay. Motion carried.

   4. MUR#02-0021-James Kraft, a candidate for State Legislature-District 10, allegedly violated reporting requirements in the Act.

      Commissioner Detrick moved to accept the recommendation of Executive Director Connor that there is reason to believe a violation has occurred seconded by Commissioner Jolley. Motion carried.

   5. MUR#02-0035-Matt Salmon, a candidate for Governor, allegedly violated reporting requirements in the Act.

      Commissioner Lemon moved that the Commission find reason to believe that the Salmon for Governor Campaign did not report all expenditures made through August 12, 2002 by August 13, 2002 deadline, seconded Commissioner McKay. Motion carried.

      Commissioner Lemon further moved to assess no civil penalty for the late filing, seconded by Commissioner McKay. Motion carried.

      Based upon the Deputy Director's conclusion, Commissioner Lemon moved to accept his recommendation that there is no reason to believe a violation occurred when the committee amended its report on August 21 to provide specific expenditure amounts, seconded by Commissioner Jolley. Motion carried.

7. Consideration of Accounting for Primary Election Funds disbursed to opposed candidate, and later became unopposed: Karen Johnson and Russell Pearce.

   Director Connor reviewed the settlement agreements with the Commissioners.

   Commissioner Lemon moved to accept Executive Director Connor's recommendations to accept the settlement agreement in the matter of Karen Johnson, seconded by Commissioner McKay. Motion carried.

8. Legal report from Assistant Attorney General Todd Lang.

   Assistant Attorney General Todd Lang reported there is no decision at this time on the May v. Bayless case. He is working on a response to the complaint filed in Maricopa County Superior Court by Ken Cheuvront, a candidate for State Senate-District 15.

9. Call for Public Comment:

   No Public Comment was given.

10. Agenda Items for the Next Meeting:

    The formulation of a substantive policy statement towards clarification of accounting standards.

11. The next meeting:

    Thursday, September 12, 2002, at 9:30 a.m., Citizens Clean Elections Commission, 4001 N. 3rd Street, Suite 200, Phoenix, Arizona 85012.

12. Adjournment:

    Commissioner McKay to adjourn the Commission meeting, seconded by Commissioner Jolley. Motion carried.

Dated this 29^th day of August, 2002

Citizens Clean Elections Commission