1. Chair Lemon called the meeting to order at approximately 9:30 am.
    
   
2. Approval of Minutes of July 22, 2003 Meeting

   Commissioner McKay moved to approve the July 22, 2003 minutes. Commissioner Jolley seconded. Motion carried.

3. Executive Director’s Report
   • The fund balance for the end of July was $12.4 million.
   • Staff has completed and updated the Act, Rules and Policy Manual and has delivered 100 copies to the Secretary of State’s Office.
   • Staff has completed a draft of the Candidate Guide.
   • Executive Director Connor will be attending the COGEL meeting September 21 – 24, 2003. Executive Director Connor will be a member of the panel for the seminar related to Clean Elections. The other panelist includes Mike Sullivan, from Massachusetts and Nancy Kawahara, U.S. General Accounting Office.
   • The three Libertarian candidates from District 17 who were ordered to repay their clean elections funding requested an appeal. The administrative hearings will be held August 22, 2003, at the Office of Administrative Hearings.
   • Staff continues to work with Sarvas, King & Coleman to finalize the random audits from the post-general report.
   • Rebecca Hecksel, Campaign Finance Analyst, is assisting Autumn Southard, Voter Education Manager, in public relations and speaking engagements at civic organizations.
   • State Procurement Office has advised the Commission that we do not need to go through the request for proposal process due to the experience encountered in the last two election cycles. The application for sponsors will be distributed and posted on the web site for organizations interested in sponsoring debates.
   • The telephone survey results were mailed. 60% were familiar with CCEC, 63% were in favor of CCEC, 22% were unfavorable of CCEC, and 22% were neutral. 70% of voters believe that Clean Elections is very important to voters.
   • Congressman Jeff Flake announced that he would not lead the initiative to repeal the Clean Elections Act.

4. Discussion and Consideration of Scope of Work for Auditing Contract and Budget for 2004

   Executive Director Connor explained to the Commission the additions that were made to the request for proposal for an auditing contract. Specifically, the timeline for completing an audit shall be within four months of the request and the Commission would have the preliminary audit. Also, the contract awarded will include the following information:

   • Auditing standards prescribed in Appendix I, which are the general standards, standards of fieldwork, and standards of reporting
   • Preliminary and fieldwork procedures prescribed in Appendix II, which is a work program for reviewing reports and conducting fieldwork
   • Charge per audit based on an hourly basis for technical assistance and a per audit or hourly basis for the audits performed

   Commissioner Busching suggested including the dates to be considered for the 2004 election cycle. After discussion, Commissioner Jolley moved to accept the scope of work for auditing contract and budget for 2004 with the changes and additions. Commissioner Detrick seconded. Motion carried.

5. Discussion Contents of Candidate Statement Pamphlet for 2004 Primary and General Elections

   Executive Director Connor presented to the Commission the suggested changes for the 2004 Candidate Statement Pamphlet:

   • Increase the maximum word statement length from 100 to 200 words
   • Include write-in candidates in the primary election who will appear on the General Election ballot.
   • Statements must be submitted via the Internet only. If a candidate does not have access to the Internet, a computer with Internet access, will be available at the CCEC office

   Commissioner Detrick and Commissioner McKay expressed that they believe write-in candidates should have to follow the same guidelines and deadlines as any other candidates with regards to filing statements. Commissioner Busching suggested including photographs of the candidates. The photographs would appear next to their statement. The Commission also suggested allowing candidates to submit two statements, one for the Primary and one for the General election pamphlet. The Commission postponed making a decision until staff adopts procedures to incorporate their suggested changes.

6. Consideration and Approval of 2003-2004 Candidate Guide

   Executive Director Connor presented the 2003-2004 Candidate Guide to the Commission for feedback and to discuss issues or matters that have not been addressed. Executive Director Connor explained that the candidate guide has more information about issues that have come up in the past year and that the contents arranged in an easier order for candidates to follow. Commissioner Busching suggested putting the guide on a CD Rom so that candidates would be able to do searches and retrieve information much faster and easier. The Commission decided to review the guide in more detail and to discuss the 2003-2004 guide at a future Commission meeting.

7. Consideration of Modified Qualifying Contribution Form

   The Commission then addressed the question of whether three candidates who are seeking election may use a single qualifying contribution form to be signed by a single contributor, but to benefit all 3 candidates.

   Chair Lemon suggested that the structure of this matter should not be adopted but the concept should be pursued and requested Jessica Funkhouser from the Attorney General’s Office to see if there would be a way to fashion a form and still meet the requirements of the statute as well as meet the needs of the Secretary of State.

   Public Comment: Barbara Lubin, Executive Director of the Clean Elections Institute pointed out that the Institute believes that if all three candidates are listed on the same form there are possibilities of fraud, someone wanting to contribute to one of two of the candidates and contribution shortage, and the possibility of riding on another candidates “coat tail.”

   Tim LaSota, from Miller LaSota & Peters, expressed to the Commission the proposed form could save time by allowing candidates to fill out just one form instead of three.

8. Consideration of Amendments to Enforcement and Audit Rules

   The Commission decided to postpone consideration of the enforcement and audit rules for a future meeting so that Diana Varela, Assistant Attorney General, and Jessica Funkhouser, Attorney General’s Office, could review the proposed rule changes.

9. Legal Report from Assistant Attorney General Diana Varela

   Diana Varela, Assistant Attorney General, reported that the three Libertarian candidates from District 17 have a hearing at the Office of Administrative Hearings on August 22, 2003. Also, the Trevor Clevenger matter issued subpoenas for the Commissioners and Executive Director Connor to appear at the hearing, give testimony, and provide documentation. Assistant Attorney General Varela filed a motion to quash those subpoenas of the Commissioners and the motion was granted in its entirety. At this point, Executive Director Connor will be testifying in a limited fashion.

   Jessica Funkhouser from the Attorney General’s Office reported that the Arizona Right to Life political committee filed a lawsuit challenging the definition of express advocacy. Specifically, the lawsuit challenges the portion of the definition related to any mention of a candidate in the sixteen-week period immediately preceding General election.

   Arizona at it’s Best, a political committee, filed a separate lawsuit challenging the definition of express advocacy. The group has mailed information during the last election, which was expressly advocating the election or defeat of a candidate, but had not filed the paperwork as a political committee. The Attorney General’s Office has requested both matters be held in abeyance until the U.S Supreme Court rules on the constitutionality of BCRA.

   Call for Public Comment

   There was no public comment

   Discussion and Consideration of Personnel Matter:

   Commissioner McKay moved to go into Executive Session. Commissioner Detrick seconded. Motion carried.

   Adjournment

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

   Next Meeting: September 16, 2003 at 9:30 a.m.
   Citizens Clean Elections Commission
   1616 W. Adams, Suite 110, Phoenix AZ 85007.

Dated this 4^th day of September, 2003

Citizens Clean Elections Commission