1. Chairman Lemon called the meeting to order at approximately 10:00 a.m.
    
   
2. Approval of the June 19, 2001 minutes:

   Commissioner Detrick moved to approve the June 19, 2001 minutes, seconded by Commissioner McKay, the June 19, 2001 minutes were approved as presented. Motion carried.

3. Executive Director's Report:

   Announcements:

   The participating candidate early contribution limits for the 2002 election cycle were adjusted by the Secretary of State's Office based on legal advice from the Attorney General's Office.

   Based upon the projected number of candidates and the projected revenues made by the Commission in December, 2000 there will be enough money in the Clean Elections Fund to fund candidates in the 2002 election.

   For the Campaign Finance/Auditing position, we have received over 37 applications, and 10 of the applicants have been chosen for interviews.

   Voter Education:

   • In the first month of public relations campaigning the following was completed: Visited 16 cities (13 counties)
     16 radio interviews
     14 newspaper interviews
     4 television meetings
     10 civic group presentations
     2 chamber of commerce meetings
     2 tax preparation meetings
     
      
     
   • The State Procurement Office has received 880 requests for more information on the RFP to sponsor the candidate debates. The debate RFP application deadline is, July 26,2001.
      
     
   • Karen Osborne, Maricopa County Elections Director, is finalizing a cost analysis matrix for all counties in the State. Each county will submit a cost analysis to the Commission that will include a 200-word candidate statement in the early and sample ballots. The county representatives will have the requested information to Executive Director Connor by August 1, 2001.

   Budget and Office Operations:

   • On June 22, 2001, the Fund balance reached $10 million dollars. By June 30, 2001, the fund balance was $10,374.030.
      
     
   • Meetings are continuing with vendors to develop software databases for tax credits, enforcement matters and the data mining of campaign finance reports that will ensure contribution and expenditure limit compliance.
      
     
   • 150,000 new Qualifying Contribution forms were printed in accordance with rule changes.
      
     
   • $44,000 has been collected in lobbyist fee enforcement
      
     
   • Lavis v. Bayless stipulated to a briefing schedule
      
     
   • The COGEL conference registration form and information pamphlet has been sent. At this point the following people will be attending: Executive Director, Colleen Connor
     Deputy Director, Matt Shaffer
     Chairman, Gene Lemon
     Commissioner, Carl Lopez
     Commissioner, David McKay
     Assistant Attorney General, Todd Lang
     

   Rules:

   • For Articles 3 through 7, we received only one public comment. For the July 24, 2001 meeting, we will begin reviewing public comments received on the rule amendments to Article 1.

4. Consideration and Approval of Rules Article 3 through 7:

   Chairman Lemon directed the Commissioners attention to Articles 3 through 7 of the rules package for comment.

   The Commissioners had many questions and comments regarding, A.A.C. R-20-310, "Political and organization activity". Chairman Lemon suggested, based on Greg Jernigan's written comment, that subsection 4 be added to this rule, and this subsection would read as follows: "Commissioners shall not serve on or litigate on behalf of ballot measures or serve on committees without the express written approval of the Commission Chair."

   Commissioner Detrick commented that restricting Commissioners too much would certainly be a deterrent to eligible candidates wanting to serve on the Commission.

   Commissioner Detrick moved to accept Article 3 of the rules package as originally proposed, seconded by Commissioner McKay. Commissioner Jones voted against this motion. Motion carried.

   Commissioner Jones moved to accept Article 5 as proposed, seconded by Commissioner Detrick. Motion carried.

   Commissioner Detrick moved to accept Article 6 of the rules package as proposed, seconded by Commissioner McKay. Motion carried.

   Commissioner McKay moved to accept Article 7 of the rules package as proposed with the removal of the word calendar, seconded by Commissioner Detrick. Motion carried.

   Strategic Planning Update:

   Executive Director Connor discussed with the Commissioners the strategic planning outline for the Citizens Clean Elections Commission. This document is a timeline of what tasks have been completed and what needs to be accomplished in the future.

5. Projections for Clean Elections Fund for 2002:

   Chairman Lemon discussed A.R.S. § 16-954 (D, E, F) with the Commissioners.
   Commissioner Jones would like to further discuss this issue in a study session meeting in August. Commissioner Jones requested that Deputy Director Matt Shaffer draft additional scenarios based upon matching funds and the sufficiency of funding through the primary.

6. Legal Report (Oral Report from Assistant Attorney General Todd Lang).

   Todd Lang, Assistant Attorney General, reported in the Lavis v Bayless lawsuit that briefs are due on July 27, 2001, responses are due on August 27, 2001 and final replies are due on September 27, 2001. Oral argument will be scheduled sometime thereafter.

   Todd Lang is working on the rules regarding express advocacy and continuing to work on A.R.S. §16-956, the procedure for the printing of pamphlets, and A.R.S. §16-954, funding projections.

   The Sean Nottingham v Citizens Clean Elections Commission case was dismissed.

7. Public Comment:

   Sharlene Bozack, Executive Director, Clean Elections Institute

   Shar Bozack reminded the Commission that the Clean Elections Institute is a 501(C) (3) nonprofit organization and they are allowed to receive monetary donations. She also advised the Commission that an intern for the Institute has reviewed nonparticipating candidate campaign finance reports and found many instances of candidates exceeding contribution limits. Because no other agency monitors non-participating candidate reports, she urged the Commission to do so.

8. The next meeting is Tuesday July 24, 2001, at 9:30 a.m., Citizens Clean Elections Commission, 4001 N. 3rd Street, Suite 200, Phoenix, Arizona 85012
    
   
9. To be placed on the next agenda:
   • Update on Procedure for Disseminating Candidate Statements
   • A.R.S. §16-954, Funding Projections
   • Consideration of Debate Selection Committee
   • Consideration of Public Comments on Rules to Amend Article I
   • Consideration of Electronic Funds Transfer and Solutions to Late Contributions for Matching

10. Consideration of the Procedure for the Dissemination of Candidate Statements:

    Commissioner McKay moved to go into executive session to discuss Candidate Statements, seconded by Commissioner Jones. Motion carried.

    Commission returned to open meeting.

    Commissioner Jones moved to have the Executive Director, the Chair of the Commission and Legal Counsel further pursue the issue of Candidate Statements and develop and implement a strategy giving the Commissioners the information they need, seconded by Commissioner McKay. Commissioner Detrick voted against this motion. Motioned carried.

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

    Assignments:

    Chairman Lemon, Executive Director Connor, and Legal Counsel, Todd Lang are to meet and pursue the issues of Candidate Statements.

    The Commission has asked Deputy Director Matt Shaffer to draft additional fund projections pursuant to A.R.S. § 16-954.

    Set up a meeting sometime in August so the Commissioners can discuss in depth A.R.S. § 16-954.

11. Adjournment

Dated this 13^th day of July, 2001

Citizens Clean Elections Commission