COMMISSIONERS PRESENT: Ralph Wayne, Chair; Cullen R. Looney, Vice Chair; Raymond R. “Tripp” Davenport, III; Scott W. Fisher; Tom Harrison; Francisco Hernandez; Wales H. Madden, III; and David Montagne.
COMMISSIONERS ABSENT: None.
STAFF PRESENT: Natalia L. Ashley, William Calem, Margie Castellanos, Sharon Finley, Becky Levy, Robbie Miller, David A. Reisman, Theresa Schwindt, Amy Simms, Tim Sorrells, Ian Steusloff, Sarah Woelk, and Mary Young.
This meeting was tape recorded. These minutes are a summary record of the Commission's actions at the meeting. For a detailed record of discussions and statements made by persons speaking at the meeting, please consult the audio tapes on file at the Commission's office.
Agenda Item 1: Call to order; roll call.
The meeting was called to order by Chair Wayne. David A. Reisman, Executive Director, called the roll. All Commissioners were present, except Commissioner Harrison due to traffic and Commissioner Hernandez due to a missed flight.
Agenda Item 2: Comments by the Commissioners.
Commissioner Fisher introduced his daughter Stephanie to the commission.
Agenda Item 3: Comments by the Executive Director.
David A. Reisman, Executive Director, made the following comments:
1. The Texas Ethics Commission staff is currently working on improvements to the campaign finance filing software. Staff is testing the software, and is anticipating the release date to be the end of April 2005.
2. Peggy McGee is the new Texas Ethics Commission’s human resource officer. The attorney position vacated by Christopher Burnett has been posted.
3. Staff has provided testimony before the Senate Finance Committee and the House Appropriations Committee regarding the agency’s budget. Staff continues to monitor legislative bills filed that impact the Texas Ethics Commission and to serve as a resource to the legislature. The staff will also continue to periodically advise the commissioners on new bills filed and the status of pending legislation. The commissioners received a copy of the current legislation update in their notebooks at tab 20.
Agenda Item 4: Communication to the commission from the public.
None.
Agenda Item 5: Approve minutes of the January 14, 2005, meeting.
Motion by Commissioner Madden to adopt the January 14, 2005, meeting minutes; second by Commissioner Fisher. Motion passed by a vote of six ayes.
The next commission meeting has been set for May 5 and 6, 2005, by unanimous consent.
Chair Wayne requested the record to reflect Commissioner Harrison present.
Agenda Item 6: Briefing, discussion, and possible action to waive or reduce certain penalties assessed for late filing of campaign finance reports, lobby reports, or personal financial statements.
1. Martin E. Braddy, District Attorney (00054526)
Report: semiannual report due January 18, 2005
Penalty: $500
2. Jayme Cox, Lobbyist (00055628)
Report: lobby activities report due January 10, 2005
Penalty: $500
3. Armando Garza, Treasurer, Executive Committee of the Hidalgo County Democratic Party (00028389)
Report: 8-day pre-election report due October 25, 2004
Penalty: $500
4. Gerald M. Lavey, State Office of Risk Management (00038048)
Report: personal financial statement due June 29, 2004
Penalty: $500
Motion by Vice Chair Looney to accept staff recommendation to waive the $500 late-filing penalty on Agenda Item 6, numbers 1 through 4; second by Commissioner Harrison. Motion passed by a vote of seven ayes. Late-filing penalty waived for Agenda Item 6, numbers 1 through 4.
5. Grant A. Billingsley, Lobbyist (00010769)
Report: lobby activities report due January 10, 2005
Penalty: $500
6. Oliver J. Bond, Lobbyist (00043469)
Report: lobby activities report due January 10, 2005
Penalty: $500
7. Yvonne R. Castillo, Lobbyist (00053512)
Report: lobby activities report due January 10, 2005
Penalty: $500
8. Martha Failing, Treasurer, Harris County Democratic Lawyers’ Association Inc. (00055728)
Report: 30-day pre-election report due October 4, 2004
Penalty: $500
9. Steven James Kester, Lobbyist (00043234)
Report: lobby activities report due January 10, 2005
Penalty: $500
10. Charlotte Miller, Treasurer, Walker County Republican Women (00054867)
Report: semiannual report due January 18, 2005
Penalty: $500
11. Patricia A. Shipton, Lobbyist (00013741)
Report: lobby activities report due January 10, 2005
Penalty: $500
Motion by Commissioner Davenport to accept staff recommendation to waive the $500 late-filing penalty on Agenda Item 6, numbers 5 through 11; second by Commissioner Montagne. Motion passed by a vote of seven ayes. Late-filing penalty waived for Agenda Item 6, numbers 5 through 11.
12. Gary Bushell, Lobbyist (00033950)
Report: lobby activities report due November 10, 2004
Penalty: $500
13. Richard L. Chambers, Treasurer, Morris Architects Civic Action Fund (00016043)
Report: monthly report due December 6, 2004
Penalty: $500
14. Jeffrey David Clark, Lobbyist (00039113)
Report: lobby activities report due November 10, 2004
Penalty: $500
16. Raul G. Martinez, Lobbyist (00010272)
Report: lobby activities report due November 10, 2004
Penalty: $500
17. Adam Nobles, Treasurer, Citizens Committee for Fairness (00054334)
Report: semiannual report due July 15, 2004
Penalty: $500
18. John Pena, Lobbyist (00031873)
Reports: lobby activities reports due November 10, 2004, and December 10, 2004
Penalty: $500 (each report)
19. Carolyn Merchan Saegert, Lobbyist (00053751)
Report: lobby activities report due January 10, 2005
Penalty: $500
21. Phil Strickland, Lobbyist (00013169)
Report: lobby activities report due January 10, 2005
Penalty: $500
22. Phyllis Traylor, Treasurer, Montgomery County Law Enforcement Association (00055658)
Reports: monthly reports due October 5, 2004, and November 5, 2004
Penalty: $500 (each report)
23. Jim Warren, Lobbyist (00013753)
Reports: lobby activities reports due November 10, 2004, and December 10, 2004
Penalty: $500 (each report)
24. Mike Williams, Lobbyist (00010033)
Report: lobby activities report due January 10, 2005
Penalty: $500
25. Barry A. Williamson, Treasurer, Tejas Securities PAC (00041502)
Report: semiannual report due January 18, 2005
Penalty: $500
26. Kathryn A. Wood, Lobbyist (00021030)
Report: lobby activities report due January 10, 2005
Penalty: $500
Motion by Commissioner Harrison to accept staff recommendation not to waive the $500 late-filing penalties on Agenda Item 6, numbers 12 through 14, 16 through 19, and 21 through 26; second by Commissioner Madden. Motion passed by a vote of seven ayes. Staff recommendation not to waive the late-filing penalties is adopted for Agenda Item 6, numbers 12 through 14, 16 through 19, and 21 through 26.
15. Allison Griffin, Lobbyist (00039456)
Report: lobby activities report due January 10, 2005
Penalty: $500
20. Mark A. Shilling, Lobbyist (00015284)
Report: lobby activities report due November 10, 2004
Penalty: $500
Mark Shilling spoke before the commission on Agenda Item 6, number 20. Motion by Commissioner Harrison to reduce the $500 late-filing penalty to $200 on Agenda Item 6, numbers 15 and 20; second by Commissioner Madden. Motion passed by a vote of seven ayes. Late filing penalty reduced to $200 for Agenda Item 6, numbers 15 and 20.
27. Harold V. Dutton, Jr., State Representative (00021133)
Report: 8-day pre-election report due October 25, 2004
Penalty: $7,300
Staff recommendation: reduction of the late-filing penalty to $800
Motion by Commissioner Madden to reduce the $7,300 late-filing penalty to $3,000 on Agenda Item 6, number 27; second by Commissioner Harrison. Motion passed by a vote of seven ayes. Late-filing penalty reduced to $3,000 for Agenda Item 6, number 27.
28. W. Robert Eissler, State Representative (00051538)
Report: 30-day pre-election report due October 4, 2004
Penalty: $500
Staff recommendation: no waiver of the late-filing penaltyReport: 8-day pre-election report due October 25, 2004
Penalty: $7,800
Staff recommendation: reduction of the late-filing penalty to $1,100
Motion by Commissioner Fisher to accept staff’s recommendation not to waive the $500 late-filing penalty for the 30-day report and to reduce the $7,800 late filing penalty to $4,500 for the 8-day report; second by Commissioner Harrison. Motion passed by a vote of seven ayes. Staff’s recommendation not to waive the late-filing penalty for the 30-day report is adopted and the $7,800 late-filing penalty for the 8-day report is reduced to $4,500 for Agenda Item 6, number 28.
29. John Hathaway, Candidate, District Judge (00054105)
Report: semiannual report due July 15, 2004
Penalty: $10,000
Staff recommendation: reduction of the late-filing penalty to $700
John Hathaway, Judge, spoke before the commission. Motion by Commissioner Montagne to adopt staff’s recommendation to reduce the $10,000 late-filing penalty to $700; second by Commissioner Harrison. Motion passed by a vote of seven ayes. Staff’s recommendation to reduce the late-filing penalty is adopted for Agenda Item 6, number 29.
30. Matthew T. Morones, Candidate, State Representative (00055028)
Report: 30-day pre-election report due October 4, 2004
Penalty: $500
Staff recommendation: no waiver of the late-filing penaltyReport: 8-day pre-election report due October 25, 2004
Penalty: $6,100
Staff recommendation: reduction of the late-filing penalty to $700
Motion by Commissioner Madden to adopt staff’s recommendation not to waive the $500 late-filing penalty for the 30-day report and to reduce the $6,100 late-filing penalty to $500 for the 8-day report; second by Commissioner Montagne. Motion passed by a vote of seven ayes. Staff’s recommendation not to waive the $500 late-filing penalty for the 30-day report is adopted and reduction of the $6,100 late-filing penalty for the 8-day report to $500 is adopted on Agenda Item 6, number 30.
Agenda Item 7: Briefing, discussion, and possible action to waive or reduce late-filing penalties in connection with certain corrected reports or to determine whether certain corrected reports as originally filed substantially complied with the applicable law.
1. Cecilia Abbott, Treasurer, Texans for Greg Abbott (00051153)
Report: semiannual report due January 15, 2004
Penalty; $500Report: semiannual report due July 15, 2004
Penalty: $10,000
2. George B. Allen, Treasurer, Texas Apartment Association PAC (00017303)
Report: monthly report due January 5, 2005
Penalty: $500
3. John Bass, Treasurer, Nucor Corporation Political Action Committee of Texas (00053011)
Report: 8-day pre-election report due October 25, 2004
Penalty: $8,900
4. Scott Campbell, State Representative (00051670)
Report: semiannual report due January 18, 2005
Penalty: $1,200
5. Brent Clum, Treasurer, XTO Energy Inc. Fed PAC (00034274)
Report: monthly report due January 5, 2005
Penalty: $500
6. Donald De Jong, Treasurer, Select Milk Southwest PAC (00052813)
Report: 8-day pre-election report due October 25, 2004
Penalty: $8,900
7. Mary Denny, State Representative (00020527)
Report: semiannual report due January 18, 2005
Penalty: $1,400
8. Gary W. Elkins, State Representative (00026729)
Report: semiannual report due January 18, 2005
Penalty: $1,600
9. William R. Goertz, Treasurer, Wells Fargo Texas State PAC (00037286)
Report: 8-day pre-election report due October 25, 2004
Penalty: $9,800
10. K. Donald Grischow, Treasurer, North American Coal Corp. PAC (00017235)
Report: monthly report due December 6, 2004
Penalty: $500
11. Linda Harper-Brown, State Representative (00051665)
Report: semiannual report due January 15, 2004
Penalty: $500
12. Abel Herrero, State Representative (00054318)
Report: semiannual report due January 18, 2005
Penalty: $500
13. Stephan L. Honore, Treasurer, Braeswood Democrats (00050394)
Report: 30-day pre-election report due October 4, 2004
Penalty: $500
14. D. Bryan Hughes, State Representative (00051630)
Report: 30-day pre-election report due October 4, 2004
Penalty: $500
15. Frederick Jones, Candidate, State Representative (00055022)
Report: 30-day pre-election report due October 4, 2004
Penalty: $500
16. Terry Keel, Treasurer, Stars Over Texas PAC (00054641)
Report: semiannual report due July 15, 2004
Penalty: $500Report: 30-day pre-election report due October 4, 2004
Penalty: $500Report: 8-day pre-election report due October 25, 2004
Penalty: $6,000
17. Kelly Keith, Treasurer, Texas Dental Association PAC (00015960)
Report: monthly report due July 6, 2004
Penalty: $500
18. H. W. Koenig, Jr., Treasurer, Austin County Republican Party (00055976)
Report: semiannual report due January 18, 2005
Penalty: $2,900
19. John Kormylo, Treasurer, Harris County Libertarian Party (00050303)
Report: 30-day pre-election report due October 4, 2004
Penalty: $500Report: 8-day pre-election report due October 25, 2004
Penalty: $8,900
20. Mark Lyle, Treasurer, Citizens and Labor for Good Government (00054454)
Report: 8-day pre-election report due October 25, 2004
Penalty: $600
21. Thomas C. Merritt, State Representative (00023181)
Report: semiannual report due January 18, 2005
Penalty: $2,800
22. Karen Petty, Treasurer, Rockwall County Republican Women (00055004)
Report: semiannual report due January 18, 2005
Penalty: $500
23. Texas Legislative Black Caucus (00034396)
Report: LEG report due January 18, 2005
Penalty: $500
24. Tommy N. Thomas, Treasurer, Republican Party of Gregg County (00052869)
Report: 8-day pre-election report due October 25, 2004
Penalty: $8,300
25. Yvonne Gonzalez Toureilles, State Representative (00054587)
Report: semiannual report due January 18, 2005
Penalty: $1,200
26. Robert K. Yass, Lobbyist (00034181)
Report: lobby activities report due January 12, 2004
Penalty: $500
Motion by Vice Chair Looney to adopt staff’s recommendation on Agenda Item 7, numbers 1 through 26, that the original reports substantially complied with the applicable law; second by Commissioner Fisher. Motion passed by a vote of seven ayes. Staff’s recommendation is adopted on Agenda Item 7, numbers 1 through 26, that the original reports substantially complied with the applicable law.
Chair Wayne requested the record to reflect Commissioner Hernandez present.
27. James R. Dunnam, State Representative (00019900)
Report: semiannual report due January 15, 2004
Penalty: $500Report: 8-day pre-election report due October 25, 2004
Penalty: $10,000
28. Robert Gilbert, Lobbyist (00039340)
Report: lobby activities report due December 10, 2004
Penalty: $500
29. Mary Lou Keel, District Judge (00026741)
Report: semiannual report due July 15, 2004
Penalty: $500
30. Andrea McWilliams, Lobbyist (00033593)
Report: lobby registration filed January 12, 2004
Penalty: $500
31. Michele Navratil, Treasurer, Southwest Bank of Texas PAC (00024835)
Report: semiannual report due January 18, 2005
Penalty: $500
32. Lawrence M. Olsen, Treasurer, Texas Good Roads, Transportation Association PAC (00015558)
Report: monthly report due January 5, 2005
Penalty: $500
33. Linda S. Sickels, Lobbyist (00010027)
Report: lobby activities report due January 10, 2005
Penalty: $500
34. Lynda Smith, Treasurer, Potter-Randall Democratic Club (00052979)
Report: 30-day pre-election report due October 4, 2004
Penalty: $500
35. Sylvester Turner, State Representative (00020872)
Report: semiannual report due January 18, 2005
Penalty: $500
36. Glenn Yanis, Treasurer, MAXIMUS Inc., Political Action Committee (00043036)
Reports: semiannual reports due July 15, 2004, and January 18, 2005
Penalty: $500 (each report)
Motion by Vice Chair Looney to accept staff’s recommendation to waive the late-filing penalties on Agenda Item 7, numbers 27 through 36; second by Commissioner Fisher. Motion passed by a vote of eight ayes. Staff’s recommendation to waive the late-filing penalties is adopted on Agenda Item 7, numbers 27 through 36.
38. Peter C. Havel, Treasurer, Associated Builders and Contractors of North Texas PAC (00015532)
Report: semiannual report due January 15, 2004
Penalty: $500
Staff recommendation: reduction of the late-filing penalty to $250Report: 8-day pre-election report due March 1, 2004
Penalty: $10,000
Staff recommendation: reduction of the late-filing penalty to $100Report: semiannual report due January 15, 2004
Penalty: $10,000
Staff recommendation: reduction of the late-filing penalty to $100
Agenda Item 7, number 38 is postponed.
37. James C. Grimm, Treasurer, Texas Poultry PAC (00032898)
Report: 8-day pre-election report due October 25, 2004
Penalty: $9,100
Staff recommendation: reduction of the late-filing penalty to $200
James Grimm spoke before the commission on Agenda Item 7, number 37. Motion by Commissioner Madden to waive the $9,100 late-filing penalty on Agenda Item 7, number 37; second by Commissioner Davenport. Motion passed by a vote of eight ayes. Late-filing penalty waived for Agenda Item 7, number 37.
39. Cynthia S. Mechler, Treasurer, Bentwood Republican Women PAC (00016081)
Report: semiannual report due January 18, 2005
Penalty: $700
Staff recommendation: reduction of late-filing penalty to $100
Motion by Commissioner Fisher to waive the $700 late-filing penalty on Agenda Item 7, number 39; second by Commissioner Davenport. Motion passed by a vote of eight ayes. Late-filing penalty waived for Agenda Item 7, number 39.
40. John Ward, Treasurer, BG Distribution Partners Political Action Committee (00055117)
Report: monthly report due November 5, 2004
Penalty; $500
Staff recommendation: original report substantially complied with the lawReport: monthly report due December 6, 2004
Penalty: $500
Staff recommendation: no waiver of the late-filing penalty
Motion by Commissioner Madden to adopt staff’s recommendation on Agenda Item 7, number 40, that the original November 5, 2004, report substantially complied with the applicable law and not to waive the December 6, 2004, $500 late-filing penalty; second by Commissioner Harrison. Motion passed by a vote of eight ayes. Motion is adopted on Agenda Item 7, number 40, that the original November 2004 report substantially complied with the applicable law and not to waive the $500 late-filing penalty for the December 2004 report.
41. Charles “Doc” Anderson, State Representative (00051449)
Report: 8-day pre-election report due March 4, 2002
Penalty: $10,000Report: semiannual report due January 15, 2004
Penalty: $500Report: 30-day pre-election report due February 9, 2004
Penalty: $500Report: 8-day pre-election report due March 1, 2004
Penalty: $10,000Report: semiannual report due July 15, 2004
Penalty; $10,000
Motion by Commissioner Harrison to reduce each $10,000 late-filing penalty to $500 and to reduce each $500 late-filing penalty to $100; second by Commissioner Madden. Motion passed by a vote of eight ayes. Late-filing penalty of $1,700 is adopted for Agenda Item 7, number 41.
42. Chris Harris, State Senator (00020421)
Report: semiannual report due July 15, 2004
Penalty: $10,000
Motion by Commissioner Hernandez to waive the late-filing penalty; second by Chair Wayne. Motion passed by a vote of five ayes. Vice Chair Looney and Commissioners Harrison and Madden voted no. Late-filing penalty waived for Agenda Item 7, number 42.
43. Ann E. Kitchen, Former State Representative (00041450)
Report: 8-day pre-election report due October 28, 2002
Penalty: $10,000
Ann E. Kitchen spoke before the commission. Vice Chair Looney chaired the commission meeting on Agenda Item 7, number 43. Motion by Commissioner Madden to impose a $500 late-filing penalty; second by Commissioner Harrison. Vice Chair Looney and Commissioners Davenport, Fisher, and Hernandez voted no. Chair Wayne abstained. Motion failed. Motion by Commissioner Fisher to impose a $2,500 late-filing penalty; second by Commissioner Madden. Commissioner Harrison voted no and Chair Wayne abstained. Motion passed by a vote of six ayes. Late-filing penalty of $2,500 is adopted for Agenda Item 7, number 43.
At Commissioner Madden’s request, at each commission meeting staff will provide the commissioners with a list of filers with outstanding penalties.
Agenda Item 8: AOR 521: Application of the contingent fee prohibition in section 305.022 of the Government Code.
Sarah Woelk briefed the commission on this agenda item. Larry York, attorney, spoke before the commission. Motion by Commissioner Madden to have Sarah Woelk and Larry York work on the language of AOR 521; second by Commissioner Harrison. Commissioner Madden withdrew his motion. Motion by Vice Chair Looney to postpone the advisory opinion and direct staff to clarify that there is no compensation to the lobbyist for lobbying efforts. The advisory opinion will be brought back before the commission at the next meeting; second by Commissioner Madden. Motion passed by a vote of five ayes. Commissioners Davenport, Fisher, and Hernandez voted no. AOR 521 is postponed.
Agenda Item 9: AOR 522: Whether a legislator who is a lawyer may be employed by a law firm that represents clients before a state agency.
Sarah Woelk briefed the commission on this agenda item. Motion by Vice Chair Looney to adopt staff’s recommendation; second by Commissioner Harrison. Motion passed by a vote of seven ayes. Commissioner Hernandez was off the dais. AOR 522 is adopted.
Agenda Item 10: Public discussion and possible action on the adoption and publication in the Texas Register of a rule relating to reporting requirements for candidates for county chair in certain counties under section 257.005 of the Election Code.
Natalia Ashley briefed the commission on this agenda item. Motion by Vice Chair Looney to adopt and publish the rule; second by Commissioner Madden. Motion passed by a vote of eight ayes. Ethics Commission Rule § 20.579 is adopted and is approved for publication in the Texas Register.
Agenda Item 11: Public discussion and possible action on the adoption and publication in the Texas Register of a rule relating to information about referrals required to be reported on the personal financial statement by a state officer who is an attorney under section 572.0252 of the Government Code.
Natalia Ashley briefed the commission on this agenda item. Motion by Chair Wayne to have staff along with Vice Chair Looney and Commissioners Davenport and Hernandez work on the rule’s language; second by Commissioner Harrison. Motion passed by a vote of eight ayes. The rule is postponed.
Agenda Item 12: Public discussion and possible action on the proposal and publication in the Texas Register of a rule relating to the termination of a campaign treasurer appointment by the Ethics Commission in accordance with section 252.0131 of the Election Code.
Natalia Ashley briefed the commission on this agenda item. Commissioner Harrison moved to amend § 20.35(b) from a “10 business day” notification to a “30 day” notification; second by Commissioner Fisher. Motion passed by a vote of eight ayes. Motion by Commissioner Harrison to adopt the rule as amended; second by Vice Chair Looney. Motion passed by a vote of eight ayes. The rule is proposed as amended and is approved to be published in the Texas Register.
Agenda Item 13: Public discussion and possible action on the proposal and publication in the Texas Register of a rule relating to the description of a political expenditure for travel on reports filed under title 15 of the Election Code.
Agenda Item 14: Public discussion and possible action on the proposal and publication in the Texas Register of a rule relating to the description of an in-kind political contribution for travel on reports filed under title 15 of the Election Code.
Natalia Ashley briefed the commission on Agenda items 13 and 14. These agenda items were postponed until the next public meeting. Postponed until the next public meeting.
Agenda Item 18: Adjourn.
Motion by Commissioner Madden to adjourn; second by Vice Chair Looney. Motion passed by a vote of eight ayes.
The next commission meeting is scheduled for May 5th and 6th, 2005.