1. Chair Lemon called the meeting to order at approximately 9:34 a.m.
    
   
2. Call for Public Comment for matters on Agenda:
   • Chair Lemon, on behalf of the State of Arizona and the Commission, thanked Commissioner Jones for her leadership and dedicated service and presented her with a plaque.
      
     
   • Barbara Lubin, on behalf of the Clean Elections Institute, thanked Commissioner Jones for her dedicated service and also presented her with a plaque and a poster.
      
     
   • Brett Scott, complainant on MUR No. 002-0071, addressed the Commission regarding the legal prepared response from Meg Burton Cahill to be incomplete.
      
     
   • Doug Martin, State Mine Inspector, addressed the Commission regarding MUR No. 002-0057. Mr. Martin felt that the two alleged violations are inaccurate and resubmitted his mileage report for further consideration.
      
     
   • Ralph Hughes, treasurer for Meg Burton Cahill, informed the Commission that Ms. Burton Cahill was not aware of the independent expenditure (commercial) supporting her and Harry Mitchell until a reporter contacted her. The commercial was created and produced by David Bolger, of LLC, and paid for by Arizona Human Rights Fund. Mr. Hughes is also a consultant for LLC. As soon as Mr. Hughes was informed that the commercial supported both Ms. Burton Cahill and Mr. Mitchell, LLC pulled the commercial and Mr. Hughes informed CCEC staff of the situation.
      
     
   • Lisa Hauser, on behalf of the Salmon for Governor Committee, addressed the Commission regarding her response, concerns and clarification involving references made by auditors concerning particular documentation and language in the final audit report that might suggest lack of cooperation with the investigation.

3. Approval of Minutes of December 10, 2002 Meeting

   Commissioner Jones moved to approve the meeting minutes for December 10, 2002.
   Commissioner Jolley seconded. Motion carried.

4. Chair Lemon introduced the newly appointed Commissioner, Marcia J. Busching.
   Governor Janet Napolitano appointed Ms. Busching to the Commission on January 24, 2003, for a term beginning February 1, 2003 and ending January 31, 2008.
    
   
5. Executive Director's Report
   • The Institute for Justice has filed a petition for Writ of Certiorari in the U.S. Supreme Court in the May v. Bayless case, challenging the 10% surcharge to fund the Clean Elections Act. Todd Lang, Assistant Attorney General, will be working on the response that is due February 14, 2003.
   • Congressman Jeff Flake has filed a Statement of Organization forming a ballot measure committee called "Stop Taxpayer Money for Politicians," to place a repeal of Clean Elections on the 2004 ballot. Also, HCR 2005 has been filed to repeal Clean Elections on the 2004 ballot. To date, the bill has not been assigned a committee.
   • The Fund balance at the end of December 2002 was $7,180,000.
   • Staff has continued to advertise and start the interview process for the Deputy Director and Voter Education positions.
   • The new Commissioner, Marcia J. Busching, will begin her term on February 1, 2003 and will serve on the Commission for the next five years.
   • The funding projections, revenues and expenditures reviewed at the December 10, 2002 meeting have been revised to put in the actual figures from 2002.
   • Staff has started working on gathering information for the 2002 Annual Report and will have the report ready for approval at the next Commission meeting.
   • The office move date is March 14, 2003.
   • Dottie Eggleston will be retiring on February 28, 2003. Colleen McGee will be taking over her responsibilities.
   • Jessica Funkhouser, former State Elections Director at the Secretary of State's Office, is now working at the Attorney General's Office on election and public record matters. Mary Jo Kief is the new State Elections Director.
   • Senator Waring has opened a folder at the Legislative Council to sponsor a bill for proposed changes from the working group formed by Secretary of State Betsey Bayless to discuss various changes to the Citizens Clean Elections Act. All Senate bills must be introduced by February 3, 2003. Chair Lemon and Executive Director Connor will be working on proposed legislative changes.
   • On the matter of adjusting the number of qualifying contributions, a request for public comment was sent to all candidates, political parties and other stakeholders for their comment. Interested parties have until the end of February 2003 to submit public comment.
   • For the voluntary tax credit donations, the Fund received $108,470 in 2002, compared to $127,518 in 2001.
   • CPR is working on a "My Turn" article to highlight the Commission's accomplishments in the last year.
   • The staff is near completion of all enforcement matters. Of the 75 matters under review there were only 31 investigations. Of the 54 complaints filed, 39 complaints were closed and 15 complaints proceeded to investigation. There may be a few more enforcement matters dealing with unreturned funds from the General Election. A reminder letter notifying the candidate of the requirements to return any unused funding will be sent.
   • Staff sent a notice to all 7 participating statewide candidates notifying them that they are required to file an inaugural report due March 3, 2003.
   • The 12 random audits from the post-general report were forwarded to the accounting firm Sarvas, King & Coleman.

6. Consideration of the Following Fiscal Matters:
    
   
   1. Reason to Believe a Violation has Occurred:
      1. MUR No.: 02-0056, Kenneth Hallock - Commissioner Detrick moved to find reason to believe that the candidate exceeded the personal money limit by $5602. Commissioner McKay seconded. Motion carried.
      2. MUR No.: 02-0057, Doug Martin - Commissioner Jones moved to postpone the consideration until the next Commission meeting. Commissioner Detrick seconded. Motion carried.
      3. MUR No.: 02-0046, Ed Farnsworth - Commissioner McKay moved to accept the Executive Director's recommendation that a violation has occurred with regard to a 15 day delay of reporting, which consequently resulted in a delay towards matching funds. Commissioner Jones seconded. Motion carried.
      4. MUR No.: 02-0071, Meg Burton Cahill - Commissioner Jones moved to postpone consideration until the next Commission meeting. The Commission would like to obtain legal advice from Mr. Lang before making a recommendation. Commissioner McKay seconded. Commissioner Detrick recused herself from consideration in this matter. Motion carried.
      5. MUR NO.: 02-0073, Lee Fabrizio - Commissioner Jones moved to find reason to believe that a violation has occurred. Commissioner Jolley seconded. Motion carried.
      6. MUR No.: 02-0074, Thom Strawn - Commissioner Jones moved to postpone consideration until the next Commission meeting. Commissioner McKay seconded. Motion carried.
      7. MUR No.: 02-0075, Ted Murphree - Commissioner Jones found reason to believe that a violation has occurred. Commissioner McKay seconded. Motion carried.

   2. Approval of Proposed Settlement Agreements:
      1. MUR No.: 02-0030, Rodney Rich - Commissioner Mckay moved to approve the proposed settlement of $2500. Commissioner Jolley seconded. Motion carried.
      2. MUR No.: 02-0029, Sharon Collins - Commissioner Detrick moved to accept Mr. Lang's recommendation of an $1875 penalty. Commissioner McKay seconded. Motion carried.
      3. MUR No.: 02-0044, Joe Hart - Commissioner McKay moved to approve the proposed settlement of $2000 or $1500 if paid by February 7, 2003. Commissioner Jones seconded. Motion carried.
      4. MUR No.: 02-0062, Debra Brimhall - Commissioner Detrick moved to accept Mr. Lang's recommendation of the $2500 settlement. Commissioner McKay seconded. Motion carried.

   3. Approval of Final Audit Reports.
      1. MUR No.: 02-0036, Matt Salmon - Commissioner McKay moved to approve the final audit report from Sarvas, King & Coleman. Commissioner Jones seconded. Commissioner Jolley recused herself from consideration in this matter. Motion carried.
      2. Random Audits of June 30th Campaign Finance Reports - Commissioner Detrick moved to accept the final audit reports. Seconded by Commissioner Jones. Motion carried.
   
    
   
7. Consideration and Approval of Fund Revenue Projections for Next Four Years.

   Commissioner Jolley moved to approve the projected revenues as submitted. Commissioner McKay seconded. Commissioner Jones abstained. Motion carried.

8. Discussion and Consideration of Proposed Legislative Changes

   The Commission and Executive Director Connor discussed the proposed legislative changes. Executive Director Connor answered questions and provided the Commission with clarification regarding the proposed changes. Chair Lemon feels that the committee Secretary of State Bayless appointed has done solid work at proposing legislative changes.

9. Legal Report from Assistant Attorney General Todd Lang
   • Mr. Lang is currently working on and settling a number of enforcement cases to be reviewed at the next Commission meeting.
   • The Arizona Right to Life vs. Brewer is challenging the definition of express advocacy. The Attorney General's Office filed a motion to dismiss the case based on the ripeness, standing and no chance of enforcement due to the Commission rule.
   • The response to the petition for Writ of Certiorari is due on February 14, 2003.
   • Meg Burton Cahill spoke to Mr. Lang and informed him that she is taking her matter seriously and believes she has done nothing wrong. Ms. Burton Cahill is currently at a conference in Wisconsin speaking on Clean Elections in Arizona.

10. Agenda Items for the Next Meeting:
    • Consideration of adjusting number of qualifying contributions
    • 2002 Annual Report
    • Enforcement matters

11. Adjournment

    Commissioner Jones moved to adjourn the meeting. Commissioner McKay seconded. Motion Carried.

    Next Meeting: February 25, 2003 at 9:30 a.m., Citizens Clean Elections Commission, 4001 N. 3rd Street, Suite 200, Phoenix, AZ 85012.

Next Meeting: January 28, 2002 at 9:30 a.m., Citizens Clean Elections Commission, 4001 N. 3rd Street, Suite 200, Phoenix, AZ 85012.

Dated this 29^th day of January, 2003

Citizens Clean Elections Commission