TEXAS ETHICS COMMISSION MEETING MINUTES

March 24, 2006, 9:01 a.m.

Capitol Extension, Room E1.010, Austin, Texas 78701

COMMISSIONERS PRESENT: Cullen R. Looney, Chair; Raymond R. “Tripp” Davenport, III, Vice Chair; Ross Fischer; Tom Harrison; Francisco Hernandez; David Montagne; and Nicholas C. Taylor.

COMMISSIONERS ABSENT: Wales H. Madden, III.

STAFF PRESENT: Natalia L. Ashley, Joe Brocato, William Calem, Margie Castellanos, Sharon Finley, Glenn George, Jeanine C. Hudson, Jason D. King, Becky Levy, Bobby Mannas, Lowell McCormack, Robbie Miller, David A. Reisman, Nadina Rose, Chris Ruby, George Savvas, Theresa Schwindt, Amy Simms, Tim Sorrells, Ian M. Steusloff, and Mary Young.


MINUTES

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 Looney. David A. Reisman, Executive Director, called the roll. All Commissioners were present, except Commissioner Madden.

Agenda Item 2: Comments by the commissioners.

Motion by Commissioner Harrison to direct staff to draft a rule to clarify that communications transmitted by e-mail are not included in the definition of political advertising at this time; second by Vice Chair Davenport. Motion passed by a vote of seven ayes.

Agenda Item 3: Comments by the executive director.

David A. Reisman, Executive Director, made the following comments:

1. Kelly Sadler is the new Ethics Commission liaison appointed by the Governor’s Office and has visited with Ethics Commission staff regarding the budget and operations.

2. Mr. Reisman informed the Commissioners of the bill requiring open meetings training to be completed by the Commissioners by December 31, 2006, and requested they turn in their certificates upon completion. The certificates will be kept on file for public viewing.

3. Notices to file are being mailed for the May 1, 2006, personal financial statement filings. Extensions will be granted upon request.

4. Staff anticipates over 400 complaints to be filed in 2006. As of March 21, 2006, 93 sworn complaints have been filed with the commission. As a result of the increase in the number of sworn complaints filed, the Ethics Commission has posted a position for an Attorney I, that is being funded by the vacant position of the former Special Projects Director. Two staff members formerly under the Special Projects Director have been reassigned to the Computer Services Division to address the increase in the volume of work in that division.

5. Mr. Reisman is currently determining how many additional attorneys, support staff, office space, and data storage capability will be needed to meet the increased demands.

6. The Ethics Commission has received instructions for submitting the next strategic plan. Staff is currently preparing recommendations to the Governor’s Office and the Legislative Budget Board (LBB) to change some current measures.

7. The Ethics Commission has been working with the Attorney General’s Office on the legal capabilities of the warrant hold provision and is currently being trained in the process. The warrant hold process will be initiated once staff has completed training.

Agenda Item 4: Communication to the commission from the public.

None.

Agenda Item 5: Approve minutes of the January 13, 2006, meeting.

Motion by Commissioner Taylor to adopt the January 13, 2006, meeting minutes; second by Commissioner Harrison. Motion passed by a vote of seven ayes.

Agenda Item 6: Presentation of Meritorious Service Award to members of the Computer Services Division by David A. Reisman, Executive Director.

David A. Reisman, Executive Director, presented Glenn George, George Savvas, Nadina Rose, Joe Brocato, Lowell McCormack, and Chris Ruby with a Meritorious Service Award.

Agenda Item 7: Presentation and discussion regarding the financial audit of the Texas Ethics Commission by the State Auditor’s Office; William Calem, Director of Administration, Chief Fiscal Officer.

William Calem, Director of Administration, Chief Fiscal Officer, briefed the commission on this agenda item. David A. Reisman, Executive Director, provided additional comments.

Agenda Item 8: Discussion and possible action on the approval of a format for electronic filing, including signature requirements, of Form CIQ, as proposed by the Cypress-Fairbanks Independent School District, Houston, Texas.

David A. Reisman, Executive Director, briefed the commission on this agenda item. Motion by Commissioner Harrison to adopt staff’s recommendation of approval of Form CIQ as submitted by the Cypress-Fairbanks Independent School District; second by Vice Chair Davenport. Motion passed by a vote of seven ayes. Form CIQ is approved.

Agenda Item 9: Presentation and discussion regarding the assessment of fines by David A. Reisman, Executive Director, and Amy Simms, Program Specialist.

David A. Reisman, Executive Director, and Amy Simms, Program Specialist, briefed the commission on this agenda item.

Agenda Item 16: Public discussion and possible action regarding a petition for rulemaking regarding the description of a gift that is reportable under section 572.023(b)(7) of the Government Code.

Randall Wood, Attorney for Representative Burnam; Representative Lon Burnam; Jack Gullahorn, Professional Advocacy Association of Texas; and Craig McDonald, Director, Texans for Public Justice, spoke before the commission on this agenda item. Motion by Commissioner Taylor to propose a rule that when a person gives a monetary gift that the description include the value; second by Commissioner Harrison. Vice Chair Davenport, and Commissioners Fischer and Hernandez voted no. Chair Looney, and Commissioners Harrison, Montagne, and Taylor voted yes. Motion failed. Motion by Commissioner Taylor to revisit the request for rulemaking at the next commission meeting.

For Agenda Items 10 and 11, the following represents the actions taken by the Ethics Commission in the order they occurred during the meeting.

Agenda Item 10: 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.

16. Braynard H. “Buck” Werner, Jr., Candidate, Railroad Commissioner (00058235)

Report: 30-day pre-election report due February 6, 2006
Penalty: $500

Braynard H. “Buck” Werner spoke before the commission on Agenda Item 10, number 16. Motion by Commissioner Montagne to accept staff’s recommendation to waive the late-filing penalty for Agenda Item 10, number 16; second by Vice Chair Davenport. Motion passed by a vote of seven ayes. Staff’s recommendation to waive the late-filing penalty is adopted for Agenda Item 10, number 16.

27. Brock Gregg, Treasurer, Association of Texas Professional Educators Political Action Committee (00015915)

Report: monthly report due November 7, 2005
Penalty: $500

Jenny Simpson, Association of Texas Professional Educators, spoke before the commission on Agenda Item 10, number 27. Motion by Commissioner Taylor to waive the $500 late-filing penalty for Agenda Item 10, number 27; second by Vice Chair Davenport. Motion passed by a vote of seven ayes. The late-filing penalty is waived on Agenda Item 10, number 27.

28. Matt Hull, Lobbyist (00056681)

Report: lobby activities report due December 12, 2005
Penalty: $500

Matt Hull, Texas Association of Community Development Corporations, spoke before the commission on Agenda Item 10, number 28. Motion by Commissioner Montagne to reduce the $500 late-filing penalty to $100 on Agenda Item 10, number 28; second by Vice Chair Davenport. Motion passed by a vote of seven ayes. Reduction of the late-filing penalty to $100 is adopted on Agenda Item 10, number 28.

43. David B. Sords, Lobbyist (00043403)

Report: lobby activities report due January 10, 2006
Penalty: $500

David B. Sords spoke before the commission on Agenda Item 10, number 43. Motion by Commissioner Harrison to reduce the $500 late-filing penalty to $250 on Agenda Item 10, number 43; second by Vice Chair Davenport. Motion passed by a vote of seven ayes. Reduction of the late-filing penalty to $250 is adopted on Agenda Item 10, number 43.

50. Danny Tilley, Treasurer, Texas State Building & Construction Trades Council PAC (00051018)

Report: 30-day pre-election report due October 11, 2005
Penalty: $500

Report: 8-day pre-election report due October 31, 2005
Penalty: $7,000

Michael Cunningham, Executive Director, Texas State Building & Construction Trades Council PAC, spoke before the commission on Agenda Item 10, number 50. Motion by Commissioner Montagne to reduce the $7,500 late-filing penalties to $500 total on Agenda Item 10, number 50; second by Vice Chair Davenport. Commissioner Harrison was off the dais. Motion passed by a vote of six ayes. Reduction of the late-filing penalties to $500 total is adopted on Agenda Item 10, number 50.

1. Mary Sue Cleveland, Treasurer, Associated General Contractors of Jefferson County PAC (00016601)

Report: semiannual report due January 17, 2006
Penalty: $500

2. Staley W. Gray, Treasurer, Texas Parent PAC (00057682)

Report: 30-day pre-election report due February 6, 2006
Penalty: $500

3. George C. Hanks, Court of Appeals Justice (00050520)

Report: semiannual report due January 17, 2006
Penalty: $500

4. Fred Hill, State Representative (00020297)

Report: personal financial statement due February 13, 2006
Penalty: $500

5. Richard B. Lawson, Treasurer, Verizon Communications Inc. Good Government Club - Texas (00015611)

Report: monthly report due December 5, 2005
Penalty: $500

6. David E. Morris, Treasurer, Stonewall Democrats of Dallas PAC (00053855)

Report: 8-day pre-election report due October 31, 2005
Penalty: $600

7. Bruce D. Oakley, Former District Judge (00051108)

Report: semiannual report due January 17, 2006
Penalty: $500

8. Randall W. Wilson, District Judge (00053970)

Report: semiannual report due January 17, 2006
Penalty: $500

Motion by Vice Chair Davenport to accept staff’s recommendation to waive the late-filing penalties for Agenda Item 10, numbers 1 through 8; second by Commissioner Montagne. Motion passed by a vote of seven ayes. Staff’s recommendation to waive the late-filing penalties is adopted for Agenda Item 10, numbers 1 through 8.

9. Jack E. Allen, Treasurer, East Texas Democratic Caucus (00053833)

Report: semiannual report due January 17, 2006
Penalty: $500

10. Charles L. Attaway, Candidate, Court of Appeals Justice (00051466)

Report: semiannual report due January 17, 2006
Penalty: $500

11. Joe Michael Carrillo, Candidate, District Attorney (00054651)

Report: annual report of unexpended contributions due January 17, 2006
Penalty: $500

12. Steve De La Rosa, Treasurer, Waco Police Association PAC (00018824)

Report: 30-day pre-election report due February 6, 2006
Penalty: $500

13. Ronald Leverett, Treasurer, Fair Government Coalition (00055320)

Report: semiannual report due January 17, 2006
Penalty: $500

14. Frank H. Mallen, Treasurer, STP PAC (00038914)

Report: semiannual report due January 17, 2006
Penalty: $500

15. Leah Patterson, Treasurer, Corpus Christi Apartment Association Better Government Fund (00016609)

Report: monthly report due November 7, 2005
Penalty: $500

Motion by Vice Chair Davenport to accept staff’s recommendation to waive the late-filing penalties for Agenda Item 10, numbers 9 through 15; second by Commissioner Harrison. Motion passed by a vote of seven ayes. Staff’s recommendation to waive the late-filing penalties is adopted for Agenda Item 10, numbers 9 through 15.

17. Toni L. Barcellona, Lobbyist (00013825)

Report: lobby activities report due November 10, 2005
Penalty: $500

18. James M. Browning, M.D., Candidate, State Representative (00058968)

Report: personal financial statement due February 13, 2006
Penalty: $500

19. Don Canada, Treasurer, Podiatric Medical PAC (00016210)

Reports: semiannual report due January 17, 2006
Penalty: $500

20. Don Canada, Treasurer, Texas Onsite Water Association PAC (00043513)

Report: semiannual report due January 17, 2006
Penalty: $500

21. Glenn A. DaGian, Lobbyist (00030070)

Report; lobby activities report due January 10, 2006
Penalty: $500

22. Nathan A. East, Treasurer, San Patricio County Republican Party CEC (00055925)

Report: semiannual report due January 17, 2006
Penalty: $500

23. Trey Martinez Fischer, State Representative (00040542)

Report: semiannual report due January 17, 2006
Penalty: $500

24. Kristie Flippo, Lobbyist (00050739)

Report: lobby activities report due November 10, 2005
Penalty: $500

25. Craig M. Fowler, District Judge (00037488)

Report: personal financial statement due February 13, 2006
Penalty: $500

26. Bryan L. Gonterman, Lobbyist (00056218)

Reports: lobby activities reports due November 10, 2005, and December 12, 2005
Penalty: $500 (each)

29. John C. Johnson, Jr., Lobbyist (00013684)

Report: lobby activities report due January 10, 2006
Penalty: $500

30. Ronald W. Kessler, Lobbyist (00013201)

Report: lobby activities report due December 12, 2005
Penalty: $500

31. Michael Krusee, State Representative (00020407)

Report: personal financial statement due February 13, 2006
Penalty: $500

32. P. John Kuhl, Jr., Lobbyist (00013743)

Report: lobby activities report due December 12, 2005
Penalty: $500

33. John Langmore, Treasurer, SafeRail PAC (00057949)

Report: semiannual report due January 17, 2006
Penalty: $500

34. Byron L. Le Flore, Jr., Treasurer, Committee for Judicial Reform (00016240)

Report: semiannual report due July 15, 2005
Penalty: $500

35. Homero R. Lucero, Lobbyist (00010066)

Report: lobby activities report due January 10, 2006
Penalty: $500

36. James C. Morriss, III, Lobbyist (00035341)

Report: lobby activities report due January 10, 2006
Penalty: $500

37. Phillip G. Oldham, Lobbyist (00034833)

Report: lobby activities report due January 10, 2006
Penalty: $500

38. Kym Nicole Olson, Lobbyist (00053641)

Report: lobby activities report due December 12, 2005
Penalty: $500

39. Morris Lee Overstreet, Former Court of Criminal Appeals Judge (00019417)

Reports: semiannual reports due January 15, 1999, and July 15, 1999
Penalty: $100 (each – fines paid)

Reports: semiannual reports due January 18, 2000, July 17, 2000, January 16, 2001, July 16, 2001, January 15, 2002, July 15, 2002, January 15, 2003, and July 15, 2003
Penalty: $100 (each)

Reports: semiannual reports due January 15, 2004, July 15, 2004, January 18, 2005, and July 15, 2005
Penalty: $500 (each)

Total Penalties: $2,800

40. John R. Roach, Criminal District Attorney (00020643)

Report: personal financial statement due February 13, 2006
Penalty: $500

41. Edward L. Self, District Judge (00036617)

Report: semiannual report due January 17, 2006
Penalty: $500

42. Thomas E. Smith, Lobbyist (00013462)

Report: lobby activities report due January 10, 2006
Penalty: $500

44. Sylvia Spivey, Candidate, State Representative (00058020)

Report: personal financial statement due February 13, 2006
Penalty: $500

45. Donald Stevens, Lobbyist (00042907)

Report: lobby activities report due December 12, 2005
Penalty: $500

46. Greg J. Thomas, Treasurer, Committee for a Competent Judiciary (00016650)

Report: semiannual report due January 17, 2006
Penalty: $500

47. Bien C. Tran, Treasurer, Vietnamese Political Action Committee USA (00055502)

Report: monthly report due December 5, 2005
Penalty: $500

48. William Michael Wachel, Department of Information Resources (00055929)

Report: personal financial statement due May 2, 2005
Penalty: $500

49. Dick Waterfield, Lobbyist (00012149)

Report: lobby activities report due January 10, 2006
Penalty: $500

Motion by Vice Chair Davenport to accept staff’s recommendation not to waive the late-filing penalties for Agenda Item 10, numbers 17 through 49, excluding numbers 27, 28, and 43; second by Commissioner Fischer. Motion passed by a vote of seven ayes. Staff recommendation not to waive the late-filing penalties is adopted on Agenda Item 10, numbers 17 through 49, excluding numbers 27, 28, and 43.

51. Mary Alice Baker, Ph.D., Teacher Retirement System of Texas (00041378)

Report: personal financial statement due July 1, 2005
Penalty: $500

Motion by Commissioner Montagne to reduce the $500 late-filing penalty to $100 on Agenda Item 10, number 51; second by Vice Chair Davenport. Motion passed by a vote of seven ayes. Reduction of the late-filing penalty to $100 is adopted on Agenda Item 10, number 51.

52. Patrick Boone, District Judge (00037227)

Report: semiannual report due July 15, 2005
Penalty: $500

Motion by Commissioner Harrison to reduce the $500 late-filing penalty to $100 on Agenda Item 10, number 52; second by Commissioner Taylor. Motion passed by a vote of seven ayes. Reduction of the late-filing penalty to $100 is adopted on Agenda Item 10, number 52.

53. Ashlea J. Quinonez, Treasurer, McKinney Area Republican Women (00054554)

Report: 30-day pre-election report due October 11, 2005
Penalty: $500

Motion by Commissioner Montagne to reduce the $500 late-filing penalty to $250 on Agenda Item 10, number 53; second by Commissioner Fischer. Motion passed by a vote of seven ayes. Reduction of the late-filing penalty to $250 is adopted on Agenda Item 10, number 53.

Agenda Item 11: 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.

17. Thomas Black, Treasurer, Texas Association of Mortgage Attorneys PAC (00042518)

Report: semiannual report due July 15, 2005
Penalty: $500

Brian Yarbrough, Attorney, spoke before the commission on Agenda Item 11, number 17. Motion by Commissioner Taylor to waive the late-filing penalty on Agenda Item 11, number 17; second by Vice Chair Davenport. Motion passed by a vote of seven ayes. Late-filing penalty waived on Agenda Item 11, number 17.

21. Donna Howard, State Representative (00042130)

Report: 30-day before primary/8-day before runoff report due February 6, 2006 (combined report)
Penalty: $500

Eleanor D’Ambrosio, Campaign Manager, Donna Howard Campaign, spoke before the commission on Agenda Item 11, number 21. Motion by Commissioner Harrison to reduce the $500 late-filing penalty to $100 on Agenda Item 11, number 21; second by Commissioner Fischer. Motion passed by a vote of seven ayes. Reduction of the late-filing penalty to $100 is adopted on Agenda Item 11, number 21.

37. Karen L. McCarter, Treasurer, Fort Bend Republican Women’s Club PAC (00015561)

Report: 30-day pre-election report due October 11, 2005
Penalty: $500

Karen L. and Richard McCarter spoke before the commission on Agenda Item 11, number 37. Motion by Commissioner Taylor to waive the late-filing penalty on Agenda Item 11, number 37; second by Commissioner Fischer. Motion passed by a vote of seven ayes. Late-filing penalty waived on Agenda Item 11, number 37.

1. Steven Bent, Treasurer, TXANS PAC (00017160)

Report: semiannual report due July 15, 2005
Penalty: $500

2. Gene Fisseler, Treasurer, Reliant Energy, Inc. Political Action Committee (00015574)

Report: monthly report due October 5, 2005
Penalty: $500

3. Nathaniel W. Parker, Candidate, State Representative (00058399)

Report: semiannual report due January 17, 2006
Penalty: $500

4. Sudie M. Sartor, Treasurer, South Texans for Good Government (00058340)

Report: 30-day pre-election report due February 6, 2006
Penalty: $500

5. Gisela Triana, District Judge (00054704)

Report: semiannual report due July 15, 2004
Penalty: $500

Motion by Commissioner Montagne to adopt staff’s recommendation on Agenda Item 11, numbers 1 through 5, that the original reports substantially complied with the applicable law; second by Vice Chair Davenport. Motion passed by a vote of seven ayes. Staff’s recommendation is adopted on Agenda Item 11, numbers 1 through 5, that the original reports substantially complied with the applicable law.

6. Cary D. Baetz, Treasurer, Chaparral Steel Company Political Action Committee (00057948)

Report: semiannual report due January 17, 2006
Penalty: $500

7. William C. Davidson, Candidate, Court of Appeals Justice (00054740)

Report: 30-day pre-election report due February 6, 2006
Penalty: $500

8. Scott K. Halliday, Treasurer, Ernst & Young Texas Good Government Fund (00016659)

Report: monthly report due December 5, 2005
Penalty: $500

9. Fred Head, Candidate, Comptroller (00058474)

Report: personal financial statement due February 13, 2006
Penalty: $500

10. Gerard Kolodejcak, Treasurer, Padgett, Stratemann & Co., LLP Political Action Committee (00058041)

Report: monthly report due January 5, 2006
Penalty: $500

11. James A. Moseley, Court of Appeals Justice (00031146)

Report: personal financial statement due June 29, 2004
Penalty: $500

12. Vicki Pattillo, District Attorney (00054320)

Reports: personal financial statements due February 11, 2004, and May 2, 2005
Penalty: $500 (each)

13. John G. Reyes, Candidate, State Representative (00058193)

Report: semiannual report due January 17, 2006
Penalty: $500

14. David K. Stall, Candidate, State Senator (00058096)

Report: 30-day pre-election report due February 6, 2006
Penalty: $500

15. Brian Keith Walker, Candidate, State Representative (00058136)

Report: semiannual report due January 17, 2006
Penalty: $500

16. Lesley Wenger, Treasurer, Committee to Reduce Water Rates (00055990)

Report: semiannual report due July 15, 2005
Penalty: $500

Motion by Vice Chair Davenport to adopt staff’s recommendation to waive the late-filing penalties on Agenda Item 11, numbers 6 through 16; second by Commissioner Fischer. Motion passed by a vote of seven ayes. Staff recommendation to waive the late-filing penalties is adopted on Agenda Item 11, numbers 6 through 16.

18. Fred Bosse, Treasurer, American Insurance Association PAC (00016560)

Reports: semiannual reports due July 15, 2005, and January 17, 2006
Penalty: $500 (each)

19. Dianne White Delisi, State Representative (00021123)

Report: semiannual report due January 17, 2006
Penalty: $500

20. Patricia Harless, Candidate, State Representative (00037927)

Report: semiannual report due January 17, 2006
Penalty: $500

22. Jo G. Hutchinson, Treasurer, Midland County Republican Women PAC (00015778)

Report: monthly report due February 6, 2006
Penalty: $500

23. Azalia V. Martinez, Treasurer, El Paso County Medical Society PAC (00052716)

Report: monthly report due January 5, 2006
Penalty: $500

24. Postponed at filer’s request.

25. Andrew P. Mouton, Candidate, State Representative (00058434)

Report: 30-day pre-election report due February 6, 2006
Penalty: $500

26. Susan Rankin, District Judge (00035080)

Report: semiannual report due January 17, 2006
Penalty: $500

27. Rudolf S. Stahel, Treasurer, Collin County Republican Party (00053162)

Report: semiannual report due January 17, 2006
Penalty: $500

28. Kathy J. Streusand, Treasurer, Texas Tea PAC (00031996)

Report: semiannual report due January 17, 2006
Penalty: $500

29. Emily G. Tobolowsky, Candidate, District Judge (00057873)

Report: semiannual report due January 17, 2006
Penalty: $500

30. Michael U. Villarreal, State Representative (00040281)

Report: semiannual report due January 17, 2006
Penalty: $500

31. Anne M. Weiskittel, Treasurer, XTO Energy Inc. Fed PAC (00034274)

Report: monthly report due February 6, 2006
Penalty: $500

Motion by Commissioner Harrison to adopt staff’s recommendation not to waive the late-filing penalties on Agenda Item 11, numbers 18 through 31, excluding numbers 21 and 24; second by Vice Chair Davenport. Motion passed by a vote of seven ayes. Staff’s recommendation not to waive the late-filing penalties is adopted on Agenda Item 11, numbers 18 through 31, excluding numbers 21 and 24.

32. Jeff Anthony, Treasurer, HCA Texas Good Government Fund (00031590)

Report: 8-day pre-election report due March 1, 2004
Penalty: $10,000

Report: semiannual report due July 15, 2004
Penalty: $10,000

Report: semiannual report due January 18, 2005
Penalty: $500

Report: semiannual report due July 15, 2005
Penalty: $500

Report: 8-day pre-election report due September 2, 2005
Penalty: $10,000

Total Penalties: $31,000

Motion by Commissioner Taylor to reduce the $31,000 late-filing penalties to $5,000 total on Agenda Item 11, number 32; second by Commissioner Harrison. Motion passed by a vote of seven ayes. Reduction of the late-filing penalties to $5,000 total is adopted on Agenda Item 11, number 32.

33. Larry Henry, Treasurer, Halliburton Energy Services, Inc. PAC (00015523)

Reports: monthly reports due February 7, 2005, March 7, 2005, April 5, 2005, May 5, 2005, July 5, 2005, August 5, 2005, September 6, 2005, November 7, 2005, December 5, 2005, January 5, 2006, and February 6, 2006
Penalty: $500 (each)

Total Penalties: $5,500

Agenda Item 11, number 33, is postponed at the filer’s request.

34. Felix Chevalier, Treasurer, P.O.W.E.R. PAC (00057773)

Report: 30-day pre-election report due October 11, 2005 (original filed late)
Penalty: $500

Report: 8-day pre-election report due October 31, 2005 (original filed late)
Penalty: $8,300

Total Penalties: $8,800

Motion by Commissioner Montagne to reduce the $8,800 late-filing penalties to $500 total on Agenda Item 11, number 34; second by Vice Chair Davenport. Motion passed by a vote of seven ayes. Reduction of the late-filing penalties to $500 total is adopted on Agenda Item 11, number 34.

35. Dee J. Kelly, Treasurer, Good Government Fund (Fort Worth) (00015585)

Reports: monthly reports due September 5, 2003, October 6, 2003, November 5, 2003, December 5, 2003, December 5, 2005, and January 5, 2006
Penalty: $500 (each)

Total Penalties: $3,000

Motion by Commissioner Fischer to adopt staff’s recommendation to reduce the $3,000 late-filing penalties to $2,000 total on Agenda Item 11, number 35; second by Commissioner Montagne. Motion passed by a vote of seven ayes. Staff’s recommendation of reduction of the late-filing penalties to $2,000 total is adopted on Agenda Item 11, number 35.

36. Louis Malfaro, Treasurer, Education Austin Political Action Committee (00031918)

Report: semiannual report due January 17, 2006
Penalty: $500

Report: 8-day before runoff report due February 6, 2006
Penalty: $1,200

Total Penalties: $1,700

Motion by Vice Chair Davenport to reduce the $1,700 late-filing penalties to $500 total on Agenda Item 11, number 36; second by Commissioner Fischer. Motion passed by a vote of seven ayes. Reduction of the late-filing penalties to $500 total is adopted on Agenda Item 11, number 36.

Agenda Item 12: Discussion and possible action regarding the termination of campaign treasurer appointments of inactive candidates.

1. Julie Iris Oldham (00054913)

2. Michelle A. Fling (00055024)

Natalia L. Ashley, General Counsel, briefed the commission on this agenda item. Motion by Commissioner Taylor to adopt staff’s recommendation on Agenda Item 12, numbers 1 and 2; second by Vice Chair Davenport. Motion passed by a vote of seven ayes. Staff’s recommendation is adopted on Agenda Item 12, numbers 1 and 2, to terminate the campaign treasurer appointments of inactive candidates.

Agenda Item 13: Public discussion and possible action on the Code of Conduct for the Texas Ethics Commission members.

Natalia L. Ashley, General Counsel, briefed the commission on this agenda item. Agenda Item discussed, but the commission took no action at this time.

Agenda Item 14: AOR 531: Whether corporate expenditures “for minimal time spent by a corporate employee to deliver a committee check in person at a local campaign event held in the same locale as the employee lives and during normal working hours” are permissible.

Natalia L. Ashley, General Counsel, briefed the commission on this agenda item. Jack Gullahorn, Professional Advocacy Association of Texas, spoke before the commission on Agenda Item 14. Motion by Commissioner Montagne to adopt staff’s attachment B, AOR–531–Yes–Texas draft of the advisory opinion; second by Vice Chair Davenport. Motion passed by a vote of seven ayes. AOR 531 is adopted as Ethics Advisory Opinion No. 468.

Agenda Item 15: AOR 532: Whether a former state employee who, while an employee of a state agency testified as an expert on the agency’s rules in a lawsuit to which the state was not a party, may represent a litigant in that lawsuit.

Natalia L. Ashley, General Counsel, briefed the commission on this agenda item. Ed Shack, attorney, spoke before the commission on Agenda Item 15. Motion by Commissioner Fisher to adopt staff’s recommendation; second by Commissioner Montagne. Motion passed by a vote of seven ayes. AOR 532 is adopted as Ethics Advisory Opinion No. 469.

Agenda Item 17: Public discussion and possible action on the adoption and publication in the Texas Register of an amendment to Ethics Commission Rule § 50.1 (Legislative Per Diem) relating to the legislative per diem required to be set under Article III, Section 24a, of the Texas Constitution.

Agenda Item 18: Public discussion and possible action on the adoption and publication in the Texas Register of the repeal of Ethics Commission Rule § 18.11 (Substantial Compliance), that defines substantial compliance regarding corrected reports.

Agenda Item 19: Public discussion and possible action on the adoption and publication in the Texas Register of the repeal of Ethics Commission Rule § 24.13(d) (Expenditures for a General-Purpose Committee), that excludes from reporting certain corporate expenditures.

Natalia L. Ashley, General Counsel, briefed the commission on these agenda items. Motion by Commissioner Fischer to adopt the proposed Ethics Commission Rules; second by Commissioner Montagne. Vice Chair Davenport voted no. Motion passed by a vote of six ayes on Agenda Item 17 with Vice Chair Davenport voting no and by a vote of seven ayes on Agenda Items 18 and 19. Ethics Commission Rules § 50.1, 18.11, and 24.13(d) are adopted.

Agenda Item 20: Public discussion and possible action on the proposal and publication in the Texas Register of an amendment to Ethics Commission Rule § 18.9 (Corrected Reports), which relates to corrected reports.

Natalia L. Ashley, General Counsel, briefed the commission on this agenda item. Motion by Commissioner Taylor to republish with change in the Texas Register Ethics Commission Rule §18.9; second by Commissioner Harrison. Motion passed by a vote of seven ayes. Ethics Commission Rule § 18.9 to be republished with change in the Texas Register for comments.

Agenda Item 21: Public discussion and possible action on the proposal and publication in the Texas Register of Ethics Commission Rule § 12.27 (Deadline Extension), the authority of the executive director to extend certain deadlines relating to a sworn complaint.

Natalia L. Ashley, General Counsel, briefed the commission on this agenda item. Motion by Commissioner Taylor to publish in the Texas Register Ethics Commission Rule § 12.27; second by Commissioner Fischer. Motion passed by a vote of seven ayes. Ethics Commission Rule § 12.27 to be published in the Texas Register for comments.

Agenda Item 22: Public discussion and possible action on the proposal and publication in the Texas Register of Ethics Commission Rule § 12.117 (Formal Hearing: Venue), regarding the proper venue for a formal hearing held under the sworn complaint process in chapter 571 of the Government Code.

Natalia L. Ashley, General Counsel, briefed the commission on this agenda item. Motion by Commissioner Harrison to publish in the Texas Register Ethics Commission Rule § 12.117; second by Commissioner Taylor. Motion passed by a vote of seven ayes. Ethics Commission Rule § 12.117 to be published in the Texas Register for comments.

The next Ethics Commission meeting is scheduled for May 11 and 12, 2006.

Agenda Item 23: Adjourn.

Motion by Vice Chair Davenport to adjourn; second by Commissioner Hernandez. Motion passed by a vote of seven ayes.