1. Chair Lemon called the meeting to order at approximately 9:30 a.m.

2. Approval of Minutes of April 29, 2003 Meeting

   In MUR 02-0058, 02-0059, and 02-0060, Commissioner Detrick requested that the minutes reflect the discussion wherein she felt that she had no conflict of interest in regard to the Yuri Downing matter and that the Attorney General's office advised that Commissioner Detrick did not have a conflict of interest. Commissioner Busching noted a change to the same enforcement matters.

   Commissioner McKay moved to approve the meeting minutes with the voted changes for April 29, 2003. Commissioner Busching seconded. Motion carried.

3. Executive Director's Report
   • The U.S. General Accounting Office issued its report about the clean elections systems in Arizona and Maine.
   • L3 Creative, the primary contractor for advertising and public relations, has subcontracted with Barclay Communications to assist the Commission with public relations.
   • For the awareness tour, Autumn Southard, Voter Education Manager, continues to travel to the community colleges, senior centers, lions and rotary clubs.
   • Rebecca Hecksel, Campaign Finance Analyst, and Autumn Southard, Voter Education Manager, continue to work on the candidate handbook.
   • Paula Ortiz, Executive Assistant, and Autumn Southard, Voter Education Manager, will be working with the state procurement office to seek 2004 debate sponsors. The scope of work for the 2004 candidate debates will be presented for consideration at the June 24, 2004 Commission meeting.
   • The fund balance at the end of April 2003 was $ 8,472,225. Revenue from the $5 check-off totaled $748,1119 in April 2003. In April 2002 the $5 check-off revenue was $ 688,451.
   • The Deputy Director and Executive Director salary grades have been officially approved and reclassified by ADOA HR Classification & Compensation division.
   • Rebecca Hecksel, Campaign Finance Analyst, will be taking a 4 week vacation in June to attend classes in France in pursuit of her MBA degree.
   • Jay Zweig, from Gallagher and Kennedy, will be giving advice in executive session regarding the Salmon for Governor Committee and Matt Shaffer's notices of claim.
   • The administrative hearing requested by Matt Salmon was held on May 6, 2003. Chas Wirken, from Gust Rosenfeld, PLC, filed a response on behalf of CCEC on May 19, 2003. The hearing officer must issue a recommendation to the Commission no later than June 9, 2003. The Commission will then have 30 days to accept, reject, or modify the hearing officer's recommendation. Mr. Wirken will be present at the next Commission meeting to provide any legal advice on this matter.

4. Discussion of Advertising and Public Relations Contract

   Carlton Hawkins, L3 Creative introduced his subcontractor, Mary O'Hanlon, President and CEO of Barclay Communications. Barclay Communications' mission for the upcoming PR campaign will be to increase awareness and educate the public, potential candidates and interested parties about the Citizens Clean Elections Act. Barclay Communications is a full service public relations, promotions, special events, marketing agency with strong media relations that have been in business for the past 18 years. The Barclay Communications team includes Bill Mayhall, Senior Account Executive, Mary Ann Pocrnic, Account Executive, and Monica Apodaca, Director of Client Services. The Barclay Communications team presented their strategies, goals, and proposed upcoming PR campaign to the Commission for consideration.

5. Discussion of U.S General Accounting Office Report of Clean Elections Act in Arizona and Maine

   The GAO report concluded that it is too early to determine definitely the effects of public financing on the electoral process. Chair Lemon explained that GAO used the following performance measures to see how the act affected elections in Arizona and Maine. The performance measures were:

   • The number of statewide and legislative candidates choosing public financing
   • The number of contested races
   • The amount of money spent in the race
   • The effects of the act regarding the incumbent re-election vs. the non- incumbent victories
   • Voter participation

   The Commission then discussed the possible performance measures the Commission should use to measure the Commission's success.

   Public Comment: Barbara Lubin, Executive Director of the Clean Elections Institute, Commented on the findings in the GAO Report.

6. Consideration of Rules and Policy Statements for Proper Reporting of Expenditures and Matching Funds for Independent Expenditures

   R-2-20-113, Accounting Requirements

   Executive Director Connor reviewed the proposed rule and policy statement regarding the accounting and campaign reporting requirements with the Commission. The rule was intended to give additional guidance to committees in reporting campaign transactions.

   After discussion, the Commission decided not to adopt proposed rule R-2-20-113, Accounting Requirement. Instead, Chair Lemon directed staff to incorporate the information contained in the proposed rule into the Commissions educational programs and candidate handbook.

   R-2-20-114, Independent Expenditures

   The proposed rule addressed the adjustment to matching funds for independent expenditures against a nonparticipating candidate.

   After discussion, the Commission requested that Assistant Attorney General, Todd Lang, re-write the rule and present the changes to the Commission at the next meeting.

   Public Comment: Barb Lubin, Executive Director of the Clean Elections Institute, expressed her concerns regarding the proposed rule and did not agree with the proposed changes.

7. Consideration and Approval of July-December 2003 Meeting Schedule

   Commissioner Detrick will not be able to make the September and possibly the October Commission meeting due to elections in Tucson. Chair Lemon will not be able to attend the July Commission meeting but will be present telephonically and requested that Commissioner McKay chair the meeting. Commissioner McKay accepted. Commissioner McKay moved to accept the meeting schedule for July-December 2003. Commissioner Jolley seconded. Motion carried.

8. Legal Report from Assistant Attorney General Todd Lang

   Assistant Attorney General Todd Lang, reported that the circuit court issued a stay on its previous ruling regarding the constitutionality of the BCRA. In addition, "Arizona at it's Best" filed a lawsuit in federal court challenging the express advocacy definition.

9. Executive Session

   Chair Lemon proposed going to executive session to receive legal advice and to consider personnel matters. Commissioner Detrick moved to accept Chair Lemon's proposal. Commissioner McKay seconded. Motion carried.

10. Adjournment

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

    Next Meeting: June 24, 2003 at 9:30 a.m., Citizens Clean Elections Commission, 1616 W. Adams, Suite 110, Phoenix AZ 85007.

Dated this 23^rd day of May, 2003

Citizens Clean Elections Commission