1. Chairperson Jones called the meeting to order at approximately 9:31 a.m.
    
   
2. Meeting Minutes.

   Commissioner Detrick moved to approve the September 24, 2002 minutes, seconded by Commissioner McKay. Motion carried.

3. Executive Director's Report:

   Voter Education:

   • The 2002 General Election Statement Pamphlets were sent to the printer on September 16, 2002.
   • Write-in candidates for the primary were not included in the General Election pamphlets due to the printing deadline.
   • The General Election debates have started. The debates are sponsored by ASU and The Arizona Community Colleges Association
   • The staff is continuing to work with L3 and CPR in publicizing the debates.

   Enforcement:

   • The staff continues to review complaints and have distributed the enforcement status report.
   • Staff is continuing to review the pre-primary reports to ensure that participating candidates have spent all of their early contributions by the end of the qualifying period.
   • Staff is going to be reviewing the post-primary reports which are not due until October 10, 2002, to ensure that all money from the Primary Election Fund that was not spent by the candidate, directed to the primary, is returned to the fund.
   • There is a exit conference today with the representative from the Salmon Campaign @ 1:30 p.m. to discuss the preliminary findings in the audit. The preliminary findings were available September 30, 2002, however, the Salmon representatives were not available until today. Commissioner Lemon suggested that the Commission meet on Friday, October 11, 2002 to discuss the Preliminary Audit Report.
   • Matching funds for the Napolitano Campaign regarding the anonymous phone calls made from an automatic telephone company is being investigated for information regarding the scope and cost of the audio dialer phone calls. Staff is working with the Pima County Attorney's Office to obtain the information so we can provide matching funds.
   Budget & Office Operations:
   • The Commission has disbursed $3,215,619.00 for the 2002 General Election.
   • The total projected disbursement for the General Election was $7,750,000.
   • Fund balance at the end of September was $8.6 million dollars.
   • Matt Shaffer was terminated effective October 1, 2002.

4. Discussion of Procedure for Monitoring Independent Expenditures

   This is the procedure that the Commission adopted in the Spring of this year to ensure that the Commission would be able to monitor Independent Expenditures. Independent Expenditure are required to be voluntarily disclosed but the procedure includes additional monitoring for committees that do not file a report. The Commission staff checks daily for any Independent Expenditure filings to ensure that matching funds are disbursed promptly.

   Internal Monitoring Includes

   • CMAG monitors T.V markets and ads for Phoenix and Tucson.
   • Staff monitors newspapers
   • Billboard and Auto Dialers are based on complaint driven communication.
   • Radio advertisements also based on complaints.

5. Consideration for Matching Funds to Richard Mahoney for Advertisement Paid for by the Arizona Democratic Party.

   Mr. Mahoney addressed the Commission and expressed his reasons and beliefs on why the television advertisement paid for by the Democratic Party should be considered an Independent Expenditure in favor of Napolitano. After listening to Mr. Mahoney and after the Commission reviewed his five page letter, Commission Lemon moved, Commissioner McKay seconded the motion not to provide matching funds to Mr. Mahoney because the ad did not expressly advocate the election of Napolitano. Commissioner Jolley recused from considering this matter. Commissioner Detrick commented and voted against the motion. Motion carried.

6. Consideration of the following Enforcement Matters
   1. Probable Cause Findings
      1. MUR NO. :02-0009, Scott Steingard - Mr. Lang recommended that the Commission postpone their consideration of probable cause until the next meeting to pursue settlement negotiations. Commissioner McKay moved. Commissioner Jolley seconded that the Commission postpone consideration of the matter until the next meeting. Motion carried.
      2. MUR NO.: 02-0021, James Kraft- Commissioner Detrick moved to find probable cause and asses a civil penalty Commissioner Jolley seconded. Motion carried.
   2. Reason to Believe a Violation Occurred
      1. MUR NO.: 02-0040, Carolyn Allen- Upon a motion by Commissioner McKay, seconded by Commissioner Jolley, the Commission found reason to believe that reporting violations had occurred. Chair Jones recused herself from considering the matter. Motion carried.
      2. MUR NO.: 02-0044, Joe Hart - Upon motion by Commissioner Detrick, seconded by Commissioner Lemon, the Commission found reason to believe that reporting violations had occurred. Motion carried.
      3. MUR NO.: 02-0047, Janet Napolitano- Upon motion by Commissioner Lemon, seconded by Commissioner McKay, the Commission found reason to believe that violations occurred regarding the petty cash account, to accept acknowledgement of the violations by the committee, to wave the imposition penalties in view of the nature, size, and consequences of the violation, and that the matter be closed. Commissioner Jolley recused herself from considering this matter. Motion carried.
      4. MUR NO.: 02-0043, Robert Blendu- Upon motion by Commission Lemon, seconded by Commissioner Detrick, the Commission found reason to believe that reporting violations had occurred. Motion carried.
      5. MUR NO.: 02-0049, Gabrielle Giffords- Upon motion by Commissioner McKay, seconded by Commissioner Jolley, the Commission found reason to believe that reporting violations had occurred. Motion carried.
   3. Proposed Settlement Agreement
      1. MUR NO.: 02-0022, Carol Somers- Mr. Lang recommended that the Commission accept the settlement of $1000.00 civil penalty for late filing of reports. Commissioner Lemon moved to accept the settlement agreement, Commissioner Jolley seconded. Motion carried.

7. Legal Report from Assistant Attorney General Todd Lang
   • Filed the amicus brief regarding the 5th Circuit's ruling in Chamber of Commerce vs. Moore.
   • The staff is continuing to work on enforcement matters.

8. Discussion and Consideration of Candidate Statement Pamphlet for General Election

   The 2002 General Election pamphlet was sent to the printer on the 16th of September, 2002. Staff requested additional time, however the printer had other contracts to meet so the pamphlets were sent to ensure that the 1.4 million copies would be mailed by the start of early voting.

9. Agenda Items for the Next Meeting
   • Next Meeting: October 29, 2002, 9:30 a.m., Citizens Clean Elections Commission, 4001 N. 3rd Street, Suite 200, Phoenix, AZ 85012.

10. Call For Public Comment
    • Rev. Tillman- Maricopa County NAACP, addressed the Commission regarding the lack of an African American Commissioner or staff member
    • Matthew Shaffer-addressed the Commission regarding his termination.

    The Following write-in candidates in the primary addressed the Commission about their concerns regarding omission from the General Election pamphlet:

    • John Gilbert- Reform Party of Arizona
    • Dan Goodtencough- for Orville Weyrich
    • Mrs. Hedges- for Ed Hedges
    • Patty Kelly- District 6
    • Sharon Lindsay- Democratic Party, District 6
    • Mr. Quilici- Libertarian, District 26

11. Adjournment:

    Commissioner McKay moved to adjourn the Commission meeting, Commissioner Lemon seconded. Motion carried.

Dated this 8^th day of October, 2002

Citizens Clean Elections Commission