1. Chairman Lemon called the meeting to order at approximately 9:35 a.m.
    
   
2. Approval of the May 31, 2001 minutes:

   Commissioner McKay moved to approve the May 31, 2001 minutes with one correction, seconded by Commissioner Detrick, the May 31, 2001 minutes were approved. Motion carried.

3. Consideration and Approval of the Office of the Attorney General's involvement in the 2002 Elections Matters.

   Terri Skladany presented a plan of action to the Commissioners on behalf of the Attorney General's Office.

   A three-part plan of action has been developed to address any election matters that involve the election for Attorney General or any race in which the Attorney General, Janet Napolitano, might decide to run.

   1. Any allegations concerning violations of the Clean Election Act will be referred to the Deputy County Attorney in Pima County, Paula Wilk.
       
      
   2. Non-enforcement matters will be referred to outside counsel. The Attorney General's Office will be recused in these matters.
       
      
   3. General questions regarding 2002 election cycle will be handled by the Assistant Attorney General that is assigned to handle Commission matters. Any issues regarding an appearance of impropriety, a potential conflict or a Commission request, could be referred to an outside counsel for legal services.

   Commissioner Detrick moved to approve the Attorney General's plan for providing advice and counsel to the Commission for the 2002 election cycle, seconded by Commissioner McKay. Motion carried.

4. Executive Director's Report:

   Announcements:

   • Solicitor General Scott Bales will be leaving the Attorney General's Office and return to private practice. Patrick Irvin Chief Counsel for the Tax Section, will be taking his place.
   • Executive Director Connor attended the Economic Forum in Flagstaff where Clean Elections was a major topic.
   • On Sunday, June 24, 2001, 5:00 p.m., Executive Director Colleen Connor and Sharlene Bozack, Executive Director, for the Clean Elections Institute will appear on KUSK TV, channel 13 in Prescott, on the talk show "Think Twice" co-hosted by Representative Henry Camarot
   • Director Connor will be in Chicago, August 4th and 5th for a Center for Government Studies electronic campaign finance report filing conference.

   Auditor General Report:

   It is anticipated that the preliminary audit report, will be received in the early part of July. It will be forwarded to the Commissioners to make comments regarding any findings or suggestions made in the report.

   Public Relations and Voter Education:

   Debates:

   The following issues will be discussed in this meeting:

   1. Debate RFP.
   2. The committee who will review RFP's for debate sponsorship.
   3. The public relations campaign icon "Five Dollar Bill".

   Candidate Statements:

   Executive Director Connor, Todd Lang, Assistant Attorney General, and Jill Collins,

   Public Relations and Education Manager, met with the 15 county recorders and election officers to discuss procedures for distributing candidate statements. The county representatives indicated the following:

   1. It would be very costly to mail the statements with the early and sample ballots for the primary and general elections.
   2. There may be an increase in the postage.
   3. The effort is labor intensive and more workers would be needed to complete the job.
   4. Larger envelopes would also be needed to hold the voter literature.

   Director Connor has asked each county to submit a cost analysis to the Commission and she will consult with Assistant Attorney General, Todd Lang for legal advice.

   Budget:

   • Responses to the lobbyist fee enforcement letter are still being received by the office. To date, the Commission has received approximately $42,000 from this effort.
   • As of May 31, 2001, the balance of the Fund was over $9 million dollars.
   • CCEC will start advertising for the auditing position
   • The Governor's Office has been contacted regarding the next Commissioner appointment.

   Rules:

   • Articles 3 through 7, will be scheduled for the Commission's final approval at its next meeting. These articles, to date, have not receive any public comment.

5. Approval of Voter Education Matters:

   Debate RFP

   Commissioner Detrick moved to accept the Debate RFP with one minor change, seconded by Commissioner McKay. Motion carried.

   Debate Sponsor Committee

   Chairman Lemon would like to have Commissioner Jones serve on this committee. If Commissioner Jones is unable to do so, Chairman Lemon will serve on the committee.

   A decision will be made at a future Commission meeting.

   Public Relations Campaign

   Commissioner Lopez moved to adopt the icon "Five Dollar Bill", seconded by Commissioner McKay. Motion carried.

   Dissemination of Candidate Statements

   Assistant Attorney General, Todd Lang, will be consulting with Executive Director, Connor, and the Attorney General's Office. He is doing research on this matter and he will report to the Commissioners at a future Commission meeting.

6. Legal Report

   Todd Lang, Assistant Attorney General, reported he has been communicating in the Lavis v Bayless lawsuit with plantiff's counsel and is working to stipulate the facts of the case and a briefing schedule. The opening brief is due in mid July.

   Rules have been drafted regarding express advocacy. Attorney Chris Baker who represents special-interest groups who do issue advocacy has offered suggestions on case law.

   He is working on A.R.S. §16-956, the procedure for the printing of pamphlets, and A.R.S. §16-954, funding projections.

7. Public Comment:

   Sharlene Bozack, Executive Director, Clean Elections Institute

   Director Bozack spoke on two issues, the voters guide and newspaper endorsements. Regarding the voters guide she believes that a solution can be worked out that will be beneficial to everyone concerned. In regards to newspaper endorsements Ms. Bozack believes that there is a difference between newspaper endorsement and does not want that to fall under independent expenditures.

8. The next meeting is Tuesday July 10, 2001, at 10:00 a.m., Little America Hotel, 2515 E. Butler Avenue, Rouge Room, Flagstaff, Arizona 86001.
    
   
9. To be placed on the next agenda:
   • Proposed Rules Article 3, 4, 5, 6 & 7
   • Update on Procedure for Disseminating Candidate Statements
   • 2002 Election Enforcement Actions
   • A.R.S. §16-954, Funding Projections

10. Discussion and Consideration of Personnel Matter

    Commissioner Lopez moved to go into executive session to discuss Personnel issues, seconded by Commissioner McKay. Motion carried.

    Commissioner McKay moved to adjourn both the executive session and the Commission meeting, seconded by Commissioner Lopez. Motion carried.

11. Adjournment

Dated this 20^th day of June, 2001

Citizens Clean Elections Commission