1. Chairman Lemon called the meeting to order at approximately 5:35p.m.
    
   
2. Approval of the April 10, 2001 meeting minutes:

   Commissioner Jones moved to approve the April 10, 2001 minutes, seconded by Commissioner Detrick, the April 10, 2001 minutes were approved with changes. Motion carried.

   Chairman Lemon welcomed everyone to the very first evening meeting of the Citizens Clean Elections Commission.

3. Director's Report:

   Announcements:

   • On April 12, 2001 Director Connor, Commissioner Jones and Sharlene Bozack, Clean Elections Institute attended a Public Financing Workshop hosted by the Brennan Center for Justice. A report regarding that meeting will be forthcoming.
   • CCEC has a new candidate, Sharon Collins. Ms. Collins is seeking the office of Secretary of State in the 2002 election.
   • A national campaign training seminar will be held in Washington, D.C., on June 1 - 3, 2001. Jill Collins will be attending this seminar.
   • The Commission staff will have a new intern starting in May 2001. His name is Noah Kroloff.

   Budget Matters:

   • The Secretary of State released new expenditure limits and other inflationary adjustments to CEA dollar amounts.
      
     
   • The Auditor General's Office has completed their audit of CCEC. They are processing their preliminary report and will be in touch with CCEC. CCEC will have the opportunity to meet with the auditors and respond to their preliminary report.

   Enforcement:

   • Enforcement of the lobbyist fee will begin at the end of the Legislative session.
   • Complaints received during the 2000 election cycle will be reviewed under the new enforcement rules. This practice will allow everyone to see how the new rules will work.
   • A new lawsuit has been filed in state court; Lavis v. Bayless.

   Voter Education:

   • Jill Collins has been working with the advertising and PR firms to plan the Commission's education effort. The benefits that will be recognized from this effort are:
     1. Ongoing public awareness about campaign finance reform.
     2. Strong grassroots network and relationships with statewide media.
     3. More $5 contributions on state income tax return forms.

   Joe Jacober, L3 Creative and Robert Johnson, CPR (Critical Public Relations), were introduced to the Commissioners. Mr. Jacober and Mr. Johnson also addressed the Commissioners regarding their plan to implement the effort to help the CCEC during the 2002 election cycle.

   • The application form and scope of work for the 2002 debates, approved at the last meeting, has been modified to reflect the Commissioners' changes.

   Rules:

   • The following rules have been finalized for Commission approval: Article 3: Standard of conduct for Commissioners and staff.
     Article 5: Rulemaking
     Article 6: Ex Parte Communications
     Article 7: Audits
     
   • Dottie Eggleston is exploring the process for the electronic transfer of funds and will present this material at the next Commission meeting.
   • The third and final set of rules will be addressed at the next Commission meeting.
   • The handling of enforcement matters will also be addressed at the next Commission meeting.

4. Proposed Audit Procedures and Scope of Work for Audit RFP:
   • The Commission has approved the direction staff will take on performing the initial desk reviews.

   Three CCEC reports are required. They are the end of qualifying period report, primary election recap report and the general election recap report. These reports would be reviewed to determine compliance with A.R.S. §16-953 (A) (B) and A.A.C. R2-20-109. Additionally, the three reports would also be compared to the six period reports required for all Candidates.

   Deputy Director Matthew Shaffer explained the procedure and asked if the procedure was satisfactory to the Commissioners as a method to proceed. Chairman Lemon said it was satisfactory and liked the way it was structured.

   Commissioner Jones requested that the phrase concerning "14 business days" be consistent on all pages of the scope of work presented to them.

   Chairman Lemon moved that the staff be authorized to solicit bids using the scope of work and materials furnished to the Commissioners by Deputy Director Shaffer in the April 24, 2000 meeting, seconded by Commissioner Detrick. Motion carried.

5. Consideration of Rules:

   The Commission reviewed the following rules for final approval:

   • Article 3. Standard of Conduct for Commissioners and Employees
   • Article 5. Rule Making
   • Article 6. Ex Parte Communications
   • Article 7. Audits and Repayments

   The Commission made modifications to the rules. Commissioner Detrick specifically requested that the "calendar days" and "business days" be defined in the rules so there would be no confusion.

   Commissioner Lopez moved to accept proposed rules 3, 5, 6 and 7 as modified, seconded by Commissioner McKay. Motion carried.

6. Consideration and Approval of Marketing Plan:

   Jill Collins at this point allowed Joe Jacober, L3 Creative to speak to the Commissioners about his company and his plans for marketing CCEC. Mr. Jacober started by thanking the Commissioners and staff for having him at the meeting. He said it has been a pleasure to work with the staff. Mr. Jacober asked Mr. Robert Johnson, of CPR, to address the Commissioners regarding his role in the marketing plan. Both gentlemen feel positive that they can accomplish all of the CCEC marketing goals. Mr. Jacober and Mr. Johnson have excellent references and have worked for numerous entities throughout the Valley helping them achieve their marketing objectives.

   Director Connor asked the Commission if they liked the proposed marketing plan and if they felt the staff and marketing firms were moving in the right direction.

   Commissioner Jones asked that the minutes reflect the Commission is endorsing the general concept laid out by L3 Creative and CPR, they are excited about it, but most importantly the Commission would like to be kept informed as the plans evolve.

   Jill Collins asked if a vote was necessary to proceed with the marketing campaign. Chairman Lemon indicated that since the budget already has been approved a vote on the direction of the marketing plan was not necessary.

7. Legal Report

   Todd Lang, Assistant Attorney General reported that he will be working on the new lawsuit filed in state court by Representative Steve May and Lobbyist Rick Lavis; Lavis v.Bayless. A response to the initial filing is due next week and the Attorney General's office will proceed from there.

8. Public Comment:

   Jim Mathews, President - Board of Directors of the Clean Elections Institute
   Mr. Mathews thanked the Commission for having an evening meeting. He is a state employee and finds it very hard to leave work during the morning hours. Mr. Matthews feels that if the Commission continues to incorporate evening meetings on the schedule more citizens will attend.

   Marge Mead - League of Women Voters and Clean Elections Institute
   Ms. Mead expressed to the Commission that its move towards public relations is a very important step in getting public awareness and support.

9. The next meeting is Tuesday, May 15, 2001, 9:30 a.m., Citizens Clean Elections Commissions, 4001 N. 3rd Street, Suite 200, Phoenix, Arizona
    
   
10. To be placed on the next agenda:
    • Strategic Planning
    • Procedure for Electronic Transfer of Funds
    • Final Consideration of Articles 1 & 2 and Public Comments
    • Enforcement Procedures

    Assignments:

    Deputy Director Shaffer will submit a scope of work for audits to the State Procurement Office.

    Jill Collins, Public Relations and Education Manager, will continue to work with L3 Creative and CPR, and will report progress to the Commissioners.

    Director Connor has been asked by Chairman Lemon to adjust the meeting schedule to accommodate the needs of Commissioner Lopez and Commissioner Detrick.

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

11. Adjournment

Dated this 1^st day of May, 2001

Citizens Clean Elections Commission