1. Chair Lemon called the meeting to order at approximately 9:30 a.m.
    
   
2. Approval of Minutes of January 28, 2003 Meeting

   Commissioner McKay moved to approve the meeting minutes for January 28, 2003 with changes. Commissioner Detrick seconded. Motion carried.

3. Executive Director's Report
   • The fund balance at the end of January was $7,718,846
   • The Voter Education Manager is Autumn Southard
   • Our office move date will be March 14, 2003
   • The process for hiring the position as Deputy Director will begin after the move
   • The US General Accounting Office will be sending their preliminary version of their report the first or second week in March
   • The 2002 Annual Report is complete
   • Inaugural Reports are due by March 3, 2003. Governor Napolitano and Secretary of State Brewer have filed their reports
   • Todd Lang and members of the Solicitor General's Office have filed a response to the petition for Writ of Certiorari in the May v. Bayless case
   • Staff will meet with the Secretary of State's Office to discuss the bi-annual adjustments to the contribution and spending limits for the primary and general elections

4. Consideration of the Following Enforcement Matters:
   1. Reason to Believe a Violation Occurred:
      1. MUR No.: 02-0071, Meg Burton Cahill- Chair Lemon moved to postpone consideration until the next Commission meeting. Mr. Lang has requested more time to provide legal advice in this matter.
   2. Approval of Proposed Settlement Agreements:
      1. MUR No.: 02-0072, Mark Clark- Commissioner McKay moved to find reason to believe that the candidate exceeded the personal money limit by $1250 and for Mr. Clark to pay $1250 plus a penalty fee of $1250. Commissioner Jolley seconded. Motion carried.
      2. MUR No.: 02-0021, James Kraft- Commissioner Detrick moved to find reason to believe a violation has occurred and to accept the proposed penalty fee of $4500. Commissioner Jolley seconded. Motion carried.
   3. Discussion of Possible Action

      MUR No.: 02-0036, Matt Salmon- Commissioner Detrick moved to find that campaign expenditures during the primary election period had been reported late and assess a $10,000 penalty. Commissioner McKay seconded the motion and the motion carried.

      Commissioner Jolley recused herself from consideration in this matter. Chair Lemon voted against the motion. Chair Lemon recommended a settlement agreement where no penalty would be assessed.

      Public Comment: Barbara Lubin, Executive Director of the Clean Elections Institute, addressed the Commission and requested that the Commission stay consistent in their decisions regarding fines and penalties.

5. Consideration and Approval of Adjusting Minimum Number of Qualifying Contributions

   The proposed 5% increase was determined by taking the voter registration numbers from 1996 and comparing them to the voter registration numbers in 2002. The voter registration increased by 5% during that period. Barbara Lubin, Executive Director for the Clean Elections Institute informed the Commission that the last day for people to submit their public comments on this matter is February 28, 2003. Commissioner Busching moved to postpone consideration on this matter until the March 25, 2003 Commission meeting. Commissioner Jolley seconded. Motion carried.

6. Approval of 2002 Annual Report

   
   Commissioner McKay moved to accept the 2002 Annual Report with changes.
   Commissioner Detrick seconded.
   Commissioner Busching recused herself from consideration in this matter. Motion carried.

7. Discussion Regarding Renewal of Advertising and Public Relations Contract

   The focus for the upcoming year will involve educating the public and increasing awareness of Clean Elections, touring and meeting with different editorial boards, going to different town halls, talking to local media, candidate and candidate treasurer training workshops, utilizing an interactive CD Rom for those candidates outside of the Phoenix area, and continuing the dollar-for-dollar tax donations and check the box campaign. Commissioner McKay moved to accept the Executive Directors recommendation of the one year renewal. Commissioner Detrick seconded. Motion carried.

8. Legal Report from Assistant Attorney General Todd Lang
   • Filed a response to the petition for Writ of Certiorari in the May v. Bayless case
   • Arizona Right to Life is challenging the definition of express advocacy which involves Clean Elections. The state filed a motion to dismiss the case and a response was due on February 20, 2003. No response has been received.
   • Continuing to work on enforcement matters

9. Public Comment:

   Gini McGirr, President for the League of Women's Voters of Arizona, informed the Commission that the league supports the 5% increase of the minimum number of qualifying contributions because the Clean Elections Act is based on showing grass roots support. The 2000 census reflects an increased number of voters.

10. Agenda Items for the Next Meeting:
    • MUR No.: 02-0071, Meg Burton Cahill
    • Voter Education plans
    • Consideration and Approval of Adjusting Minimum Number of Qualifying Contributions

11. Adjournment

    Commissioner McKay moved to adjourn the meeting. Commissioner Detrick seconded. Motion carried.

Next Meeting: April 29, 2003 at 9:30 a.m., Citizens Clean Elections Commission, 1616 W. Adams, Suite 110, Phoenix, AZ 85007.

Dated this 26^th day of February, 2003

Citizens Clean Elections Commission