1. Chairperson Jones called the meeting to order at approximately 9:30 a.m.

   Chairperson Jones opened the meeting with a brief statement that the Commission is present to administer and enforce the Clean Elections Act and that the Commission is not a political body and does not get involved with a particular campaign or campaigns. It is the Commission's goal to administer and enforce the law as fairly and expeditiously as possible.

2. Consideration of Whether There Is Reason to Believe Violations Occurred in the following Enforcement Matter: MUR No. 02-0036: Matt Salmon, a candidate for Governor, allegedly violated the reporting requirements in the Act.

   Chairperson Jones introduced Ms. Debbie Tobin, Accountant and CPA to provide background information. Ms. Tobin explained that campaign finance reports require an itemized account reporting outstanding debts. When those debts are paid, then they are shown as a disbursement.

   Mr. Chas Wirken, Attorney, Gust Rosenfeld, was introduced as the Commission's counsel in this matter. Mr. Wirken opined that the accrual accounting methodology is required for reporting expenditures. In the definition of expenditure and the required contents of a campaign finance report, an expenditure includes more than payments, but also includes the obligation or contract to make a purchase.

   Executive Director Connor reviewed with the Commission the violations are believed to have occurred in the Matt Salmon enforcement matter MUR No. 02-0036. Executive Director Connor's recommendation to the Commission is that there is reason to believe that a violation has been committed of reporting all expenditures by the filing deadlines.

   Ms. Lisa Hauser, Attorney, Gammage & Burnham, Salmon For Governor addressed the Commission regarding the following:

   • The history of matching funds based on payments made, not on debts and obligations
   • Reviewing other candidate reports and indicating that cash report is the norm.
   • Candidates overwhelmingly reporting on a payments made basis

   Ms. Hauser referred to a recommendation that was made to the Commission in the August 27, 2002 meeting that asked the staff to develop a more substantive policy statement in this matter. She feels the policy needs to be tailored to the reality of statewide campaigns and the campaign finance issue.

   Ms. Hauser believes there are no facts that support a continued investigation and that staff should be directed to close the matter. Ms. Hauser feels that any finding short of closing this matter would be undermining the credibility of the Commission.

   Commissioner Lemon moved that the Commission find reason to believe that a violation has occurred in this matter, seconded by Commissioner McKay. Motion carried. Commissioner Jolley recused herself from voting in this matter.

3. Consideration of Settlement Agreement: MUR No. 02-0018: Wes Marsh, a candidate for State Senate, District 7, failed to attend a Commission sponsored debate.

   Assistant Attorney General Todd Lang reviewed this matter with the Commission.

   Attorney Lang recommends a settlement in this case, which would require Mr. Marsh to pay a $1,000 fine and provide that he is to receive only half the matching funds he is entitled to. The total penalty to Mr. Marsh would be approximately $12,000. Mr. Marsh has agreed to these terms, and has agreed to attend any future debates that are required.

   Commissioner McKay moved to accept Mr. Lang's recommendation and proposed settlement, seconded by Commissioner Detrick. Motion carried.

4. Call for Public Comment.

   Gary Carnicle announced to the Commission that he had filed a complaint against James Kraft. He also thanked the Commission for making sure the other candidates received their funding in a timely manner.

   Phil Corbell stated that he had filed a complaint against Sal DiCiccio alleging that Mr. DiCiccio had made retroactive payments, and wanted to know the status of the investigation into that complaint.

   Commissioner Lemon moved that the Commission go into an executive session in order to discus a personnel matter regarding the Deputy Director, seconded by Commissioner McKay. Motion carried with a 4 to 1 vote with Commissioner Detrick voting no.

5. Chairperson Jones called the meeting into Executive Session.

   Executive Session ended, regular session called back to order by Chairperson Jones. The Chair announced that any discipline of staff is not in the purview of the Commission's duties.

6. Agenda Items for the Next Meeting:

   Creating a workshop for reporting requirements in the General Election Campaign

7. 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.

8. Adjournment:

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

Dated this 6^th day of September, 2002

Citizens Clean Elections Commission