Secretary of State: Election Division: March 25 1998 Meeting Minutes

INDIANA ELECTION COMMISSION MINUTES

INDIANA ELECTION COMMISSION
MINUTES
MARCH 25, 1998
MEMBERS PRESENT: Dudley Cruea, Chairman of the Indiana Election Commission [IEC]; S. Anthony Long, Vice-Chairman; Michael Harmless, proxy for Butch Morgan; Barbara McClellan, proxy for Joseph M. Perkins, Jr.

MEMBERS ABSENT: Butch Morgan; Joseph M. Perkins, Jr.

STAFF ATTENDING: Laurie P. Christie, Co-Director, Election Division, Office of the Indiana Secretary of State ("Election Division"), Mary Ann Tippett, Co-Director; J. Bradley King, Co-General Counsel, IEC and Election Division; Annette Craycraft, IEC; Michelle Thompson, IEC.

ALSO ATTENDING: The Honorable Brad Bayliff of Bloomington, Indiana State Representative (retired); The Honorable Kathy Smith of Indianapolis, Indiana State Senator (retired); The Honorable John Waterman, of Shelburn, Indiana State Senator.

Mr. Adam Barrett, of Frankfort; Ms. Jan Bledsoe, of Indianapolis; Mr. David Bohall, of Indianapolis; Ms. Rebecca Bonham, of South Bend; Mr. Kevin Corcoran, of The Times of Northwest Indiana; Ms. Lesa Dietrick, of Indianapolis; Mr. Eugene P. Dooley, of Indianapolis; Ms. Doris Anne Fechtmann, of Indianapolis; Mr. John D. Fultz, of Salem; Mr. Nick Gasparovic, of Crown Point; Mr. David W. Gray, of Indianapolis; Mr. Darin Patrick Griesey, of Indianapolis; Mr. Ricky Hence, of Indianapolis; Ms. Leslie Davis Hiner, of Indianapolis; Mr. Jeffrey B. Jackson, of Seymour; Mr. Seth Lahn, of Indianapolis; Mr. Jon Madison, of New Castle; Mr. Paul E. Morgan, of Indianapolis; Ms. Sue O'Brien, of Lafayette; Mr. William T. Rosebaum, of Indianapolis; Mr. Charles Savage, of Greensburg; Mr. Edward J. Schmitt, of Alexandria; Ms. Mary Beth Schneider, of The Indianapolis Star/News; Ms. Marcy Sears, of South Bend; Mr. Douglas F. Shelby, of Veedersburg; Mr. Randy Shields, of Greenwood; Mr. Gary B. Taylor, of Indianapolis; Mr. Ross Thomas, of Indianapolis.

1. CALL TO ORDER AND OPENING REMARKS BY THE CHAIR:
The chair called the March 25, 1998 meeting of the Indiana Election Commission to order at 9:40 p.m. in Conference Center Room 1, Indiana Government Center South, 302 West Washington Street, Indianapolis, Indiana, stating that proper notice of the meeting had been given as required by state law, and that a quorum of Commission members was present. 2. RECOGNITION OF PROXY MEMBERS:
The chair noted that Mr. Morgan had filed a proxy with the Election Division earlier on this date designating Mr. Michael Harmless as his proxy for this meeting. A copy of the proxy is incorporated by reference into these minutes. [Copies of all documents incorporated by reference are available for public inspection and copying in the Election Division office.]

The chair noted that Mr. Perkins had filed a proxy with the Election Division on March 23, 1998 designating Ms. Barbara McClellan as his proxy for this meeting. A copy of the proxy is incorporated by reference into these minutes.

The chair welcomed Mr. Harmless and Ms. McClellan to the Commission meeting.

3. RECESS AND RECONVENING OF MEETING:
The chair noted that Conference Room #1 was very crowded, and requested the consent of Commission members to recess this meeting and then to reconvene the meeting in Conference Room #2. Commission members consented. Staff was directed to place a notice on the door advising the public of this change. The chair then placed the Commission in recess at 9:41 a.m.

At 9:47 a.m., the chair reconvened the Commission's meeting in Conference Room #2 of the Conference Center, and noted that the same Commission members were present.

4. APPROVAL OF MARCH 10, 1998 MINUTES:
The chair noted that copies of these minutes had been distributed to members before the meeting convened.

Mr. Long moved that the March 10, 1998 Commission minutes be approved as submitted. Mr. Cruea seconded the motion. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

5. APPROVAL OF FINAL ORDERS CONCERNING PRIMARY ELECTION CANDIDATE ELIGIBILITY:
The chair noted that copies of the final orders concerning determinations made by the Commission at its March 10, 1998 Commission meeting had been distributed to Commission members before the meeting convened. The chair stated that the following orders were prepared for Commission action:

1. ORDER 1998-07: THE DECLARATION OF CANDIDACY OF MARCUS M. BURGHER, IV, FOR PROSECUTING ATTORNEY FOR CRAWFORD COUNTY (CAUSE 98-01).

2. ORDER 1998-08: THE DECLARATION OF CANDIDACY OF SCOTT PELATH FOR INDIANA STATE REPRESENTATIVE, DISTRICT 9 (CAUSE 98-02).

3. ORDER 1998-09: THE DECLARATION OF CANDIDACY OF RICHARD ALLEN MAUGHMER FOR PROSECUTING ATTORNEY FOR CASS COUNTY (CAUSE 98-03).

4. ORDER 1998-10: THE DECLARATION OF CANDIDACY OF GWENDOLYN MARIE SPICE FOR INDIANA STATE REPRESENTATIVE, DISTRICT 60 (CAUSE 98-04).

5. ORDER 1998-11: THE DECLARATION OF CANDIDACY OF BOB KERN FOR UNITED STATES REPRESENTATIVE, DISTRICT 6 (CAUSE 98-05).

Mr. Long moved, seconded by Mr. Cruea, that Orders 1998-07, 1998-08, 1998-09, 1998-10, and 1998-11 be approved as submitted. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted. These orders are incorporated by reference in these minutes.

6. CAMPAIGN FINANCE ENFORCEMENT:

A. CHAIRMAN'S REMARKS:

The chair stated that the Commission's goal was to hear Cause 98-06 through Cause 98-56 today before breaking for lunch at 12 noon, and that the Commission would hear more causes before then if it could. He said that the Commission would reconvene for its afternoon session at 12:45 p.m. at Training Room #2, in the Training Center, Indiana Government Center South.

The chair asked those who testified to address the Commission from the witness table in the front of the room, to state their names and the committees they represented, and to limit all remarks to three minutes. He said that if Commission members had questions for a witness, they would ask the questions at that time. The chair requested that Mr. King serve as timekeeper for the Commission, and for him to advise the Commission when a witness had thirty seconds left for his or her testimony. Mr. King then administered the oath to those individuals who wished to testify before the Commission at this meeting.

B. COUNSEL'S REMARKS:
The chair recognized Mr. King to review the statutes applicable to the Commission's campaign finance enforcement proceedings at this meeting. Mr. King stated that the Commission's hearing was conducted under the provisions of Indiana Code 3-9-4-16, which specifies in part that a person who fails to file a campaign finance report or statement of organization with the Election Division in the manner prescribed by the Campaign Finance Act, is subject to the assessment of a civil penalty. Mr. King noted that the penalties prescribed by this statute are fixed at the rate of $50 per day for each day that a report or statement is late, in an amount not to exceed $1,000, plus investigative costs documented by the Election Division.

Mr. King stated that IC 3-9-4-19 provides that the Election Commission shall impose this penalty, but specifies, by unanimous vote of its entire membership, the Commission may waive or reduce the penalty if the Commission finds that the civil penalty required to be imposed would be unjust under the circumstances.

Mr. King added that the causes being heard by the Commission today come before this body under IC 3-9-5-10, which specifies that the treasurer of each committee shall file a campaign finance report each year, which is complete as of December 31 of the previous year. He noted that the report was due on the third week of January, in the case of candidate's committees and political action committees, and on March 2, 1998 in the case of regular party committees.

C. CAUSES HEARD BY THE COMMISSION:

1. Cause 98-338-06 (Indiana Friends of Rural Electrification)
The chair recognized Ms. Thompson, who stated that this committee had filed its January 1998 annual report on January 26, 1998, and had received notice of this hearing on March 20, 1998. She said that the committee's proposed fine was $252.77, being a $250 civil penalty plus $2.77 in certified mail costs. She added that she wished to introduce a letter dated March 24, 1998 from Mr. Jeffrey L. Qyle, Secretary of Indiana FORE, into the record for this cause. The Commission consented to the introduction of this letter, which is incorporated by reference in these minutes.

The chair asked if any person present wished to testify before the Commission concerning this cause. There was no response. Mr. Long moved, seconded by Mr. Harmless, that the hearing in this cause be closed. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

The chair recognized Mr. Long, who stated that there appeared to be inadvertent error in this case that is explained in the letter. He added that the Commission must now determine whether the civil penalty prescribed by the statute would be unjust in this cause. Mr. Long stated that the penalty seemed unjust in these circumstances, and that as a result, he moved that the committee's civil penalty be reduced to $150, plus certified mail costs, of $2.77. Mr. Harmless seconded the motion.

Mr. Cruea said that he would oppose this motion since the General Assembly has made it clear that the fine should be $50 a day in these cases, that the Commission had previously conducted hearings on these campaign finance filings, and since the newspapers and other media had given a large amount of publicity to the requirements for campaign finance filings.

The chair recognized Mr. Long, who asked if the Commission had conducted hearings before concerning delinquent campaign finance reports. He stated that he believed that he had only participated in enforcement hearings concerning excessive corporate contributions. The chair responded that the Commission had fined campaign committees for delinquent annual reports in the past, and that in 1997 the legislature had increased the civil penalty from $10 per day, with a maximum of $100, to a penalty of $50 per day, with a maximum of $1,000.

There being no further discussion, the chair called the question, and declared that with two members (Mr. Harmless and Mr. Long) voting "aye", and two members voting "nay" (Mr. Cruea and Ms. McClellan), the motion was not adopted since Indiana Code 3-6-4.1-7(b), the affirmative vote of at least three Commission members was required for the Commission to take official action.

Mr. Cruea moved, seconded by Ms. McClellan, that this committee be subject to a civil penalty of $250, plus $2.77 in investigative costs documented by the Election Division, for a total of $252.77. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

2. Cause 98-395-07 (United Mine Workers of America Coal Miners PAC)

The chair recognized Ms. Thompson, who stated that this committee had filed its January 1998 annual report on January 27, 1998. She said that the committee's proposed fine was $302.77, being a $300 civil penalty plus $2.77 in certified mail costs.

The chair asked if any person present wished to testify before the Commission concerning this cause. There was no response. The chair noted that no written comments had been received.

Mr. Long moved, seconded by Mr. Harmless, that the hearing in this cause be closed. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

Mr. Cruea moved, seconded by Ms. McClellan, that this committee be subject to a civil penalty of $300, plus $2.77 in investigative costs documented by the Election Division, for a total of $302.77.

The chair recognized Mr. Long, who asked whether the Campaign Finance Division had received proof that this committee had been notified of this hearing. Ms. Thompson responded that she had sent notices of this meeting by both regular and certified mail, but did not have a certified mail return card from this committee. Mr. Long stated that he would abstain on this motion, pending proof that the committee had received notice of this hearing. He added that he believed due process required this result.

Mr. Cruea stated that he agreed with Mr. Long, and withdrew his motion. Ms. McClellan withdrew her second. Mr. Cruea moved, seconded by Mr. Harmless, that this cause be continued until the next Commission meeting. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

The Commission then discussed whether to act to continue other causes en masse where the Campaign Finance Division spread sheet did not indicate that notice of this meeting had been received, but decided to proceed in numerical order on these causes.

3. Cause 98-757-08 (Indiana Oil Marketers Association PAC)

The chair recognized Ms. Thompson, who stated that this committee had filed its January 1998 annual report on January 29, 1998, and had received notice of this hearing on March 20, 1998. She said that the committee's proposed fine was $402.77, being a $400 civil penalty plus $2.77 in certified mail costs. She added that she wished to introduce an undated letter received on March 23, 1998 from Mr. C. Michael Pitts, Executive Director of IPCA, into the record for this cause. The Commission consented to the introduction of this letter, which is incorporated by reference in these minutes.

The chair asked if any person present wished to testify before the Commission concerning this cause. There was no response. Mr. Cruea moved, seconded by Mr. Long, that the hearing in this cause be closed. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

Mr. Cruea moved, seconded by Ms. McClellan, that this committee be subject to a civil penalty of $400, plus $2.77 in investigative costs documented by the Election Division, for a total of $402.77. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

4. Cause 98-776-09 (Indiana Multi-Family Housing PAC)

The chair recognized Ms. Thompson, who stated that this committee had filed its January 1998 annual report on January 22, 1998, and had received notice of this hearing on March 20, 1998. She said that the committee's proposed fine was $52.77, being a $50 civil penalty plus $2.77 in certified mail costs.

The chair asked if any person present wished to testify before the Commission concerning this cause. There was no response. The chair noted that no documents had been received regarding this cause. Mr. Long moved, seconded by Mr. Harmless, that the hearing in this cause be closed. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

Mr. Cruea moved, seconded by Mr. Long, that this committee be subject to a civil penalty of $50, plus $2.77 in investigative costs documented by the Election Division, for a total of $52.77. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

5. Cause 98-825-10 (Insurance Mens PAC)
The chair recognized Ms. Thompson, who stated that this committee had filed its January 1998 annual report on January 23, 1998. She said that the committee's proposed fine was $102.77, being a $100 civil penalty plus $2.77 in certified mail costs. She added that she wished to introduce a letter dated March 20, 1998 from Mr. Richard V. Mendez, CPA, of Mendez and Company, into the record for this cause. The Commission consented to the introduction of this letter, which is incorporated by reference in these minutes.

The chair asked if any person present wished to testify before the Commission concerning this cause. There was no response. Mr. Long moved, seconded by Mr. Cruea, that the hearing in this cause be closed. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

Mr. Cruea moved, seconded by Mr. Long, that this committee be subject to a civil penalty of $100, plus $2.77 in investigative costs documented by the Election Division, for a total of $102.77. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

6. Cause 98-840-11 (Lawyers PAC)
The chair recognized Ms. Thompson, who stated that this committee had filed its January 1998 annual report on January 21, 1998, at 3:00 p.m., and that the committee had received notice of this hearing on March 20, 1998. She said that the committee's proposed fine was $52.77, being a $50 civil penalty plus $2.77 in certified mail costs. She added that she wished to introduce a letter dated March 23, 1998 from Ms. Michealle B. Wilson, Assistant Treasurer of this committee, into the record for this cause. The Commission consented to the introduction of this letter, which is incorporated by reference in these minutes.

Mr. Cruea moved, seconded by Ms. McClellan, that this committee be subject to a civil penalty of $50, plus $2.77 in investigative costs documented by the Election Division, for a total of $52.77. Mr. Long stated that he would abstain from voting on this motion since he is a member of the Trial Lawyers' Association. There being no further discussion, the chair called the question, and declared that with three members (Mr. Cruea, Mr. Harmless, and Ms. McClellan) voting "aye", no member voting "nay", and one member (Mr. Long) abstaining, the motion was adopted.

7. Cause 98-841-12 (Indiana Business for Responsive Government)
The chair recognized Ms. Thompson, who stated that this committee had filed its January 1998 annual report on January 21, 1998, at 1:00 p.m., and that the committee had received notice of this hearing on March 23, 1998. She said that the committee's proposed fine was $52.77, being a $50 civil penalty plus $2.77 in certified mail costs.

The chair asked if any person present wished to testify before the Commission concerning this cause. The chair recognized Mr. Jeff Brantley, the chairman and treasurer of this committee, who stated that when he attempted to print out the committee's final report, the software would not permit the printing. He said that as a result, all the information needed to be retyped, and the committee's report was filed an hour late as a result. Mr. Brantley said that the committee has been a strong supporter of this penalty provision. He said that the committee did not have any other defense, and would accept the penalty.

Mr. Long moved, seconded by Mr. Cruea, that this committee be subject to a civil penalty of $50, plus $2.77 in investigative costs documented by the Election Division, for a total of $52.77. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

8. Cause 98-862-13 (Indiana Agri Business PAC)
The chair recognized Ms. Thompson, who stated that this committee had filed its January 1998 annual report on February 27, 1998, and that the committee had received notice of this hearing on March 20, 1998. She said that the committee's proposed fine was $1,005.54, being a $1,000 civil penalty plus $5.54 in certified mail costs. She added that she wished to introduce a letter dated February 27, 1998 from Mr. Cresswell A. Hizer, Treasurer of this committee, into the record for this cause. The Commission consented to the introduction of this letter, which is incorporated by reference in these minutes.

The chair asked if any person present wished to testify before the Commission concerning this cause. The chair recognized Mr. Hizer, the treasurer of this committee, and Ms. Joy Milmick, the committee's office manager. Mr. Hizer stated that the committee's mail record shows that the committee mailed this report by regular mail on January 12, 1998, and that after discovering some deposits, sent an amendment, which led to the discovery that the original report had been lost in the mail. Mr. Hizer stated that with the letter the committee did submit copies of its mail records, and asked for the Commission's consideration in this case.

In response to a question from the chair, Mr. Hizer stated that the original report had not been sent by certified mail, and that this was the first occasion on which the committee had violated the filing requirements. In response to a question from Mr. Long, Mr. Hizer pointed out the 32 cent entry directly below "PAC" on the mail record form attached to the letter introduced in this cause. In response to a question from Mr. Harmless, Mr. Hizer stated that he believed the amendment was filed on January 27, and added that the report indicated that he had affixed his signature on January 12, 1998. Ms. Thompson stated that the Election Division's records showed that the amendment was received January 28, 1998.

Mr. Long moved, seconded by Ms. McClellan, that the hearing in this cause be closed. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

The chair recognized Mr. Long, who stated that the committee had provided evidence that the report had been mailed nine days in advance of the deadline, although the committee could have used certified mail to document this. He said that he believed the amount of the proposed penalty would be excessive and unjust in this case. Mr. Long moved that the Commission reduce this penalty to $350, but then withdrew his motion, stating that he believed the gentleman's testimony regarding the mailing of this report.

Mr. Long then moved, seconded by Mr. Harmless, that the proposed penalty be waived in this case due to the committee's presentation of evidence that they had mailed the report before the filing deadline, and that any failure here was not due to the actions of the committee. The chair stated that due to the evidence regarding this mailing, he could support a motion to reduce the penalty, but not a motion to waive the penalty entirely.

Mr. Long moved, seconded by Ms. McClellan, that this committee be subject to a reduced civil penalty of $350, plus $5.54 in investigative costs documented by the Election Division, for a total of $355.54. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

In response to a question from Mr. Long, Ms. Thompson stated that the Campaign Finance Manual indicated that a report was considered filed when received by the Election Division, not when mailed.

The chair recognized Mr. King, who said that the statutes specifying the deadline for filing reports by mail have undergone changes since the Commission last conducted enforcement hearings. He stated that formerly the pre-primary and pre-general election reports could be mailed and considered timely received if the reports had a postmark indicating that the report was mailed on time. Mr. King stated that the statute governing the filing of the annual reports in January did not contain a similar postmark provision, but instead specified that the report is considered "filed" when it is file stamped by the Election Division.

Mr. King said that in 1997, this legislation was changed and the result was confusing. He remarked that the 1997 legislation repealed the exemption for the filing of the January annual reports, and now provided under Indiana Code 3-9-5-7(b)(3) that all mailed reports "must be postmarked no later than noon seven... days after the date of the report." He stated that this leads to a confusing result, since the "date of the report" is set forth under Indiana Code 3-9-5-10, which provides that for the January 1998 report, the "date of the report" is December 31, 1997. Mr. King said that, strictly speaking, the new statute provides that the deadline for mailing an annual report would be seven days after December 31, 1997, or January 6, 1998. He remarked that the Election Division, based on the discussions of this matter conducted in the General Assembly during the 1997 session, believed that the legislature did not intend this result, which would lead to a deadline for mailed reports two weeks earlier than the deadline for hand delivered reports. Mr. King stated that as a result, the proposed penalties in the causes presented to the Commission today were calculated from the noon, January 21 filing deadline. He said that the current statute was confusing, but in the past there had never been a separate filing deadline for mailing annual reports.

Mr. Long stated that pleadings could be filed with the Indiana Supreme Court by depositing the pleadings in the U.S. mail, and that the pleadings were considered filed when deposited; he added that the 1997 legislation had created additional problems rather than solving them in this area. Mr. Long also noted that IC 3-9-5-7(b)(3) appeared to provide for five days, rather than seven. Mr. King responded that the 1997 statutory provision read "seven (5) [sic]", and that the discrepancy between the word and number had been resolved by the passage of the 1998 technical corrections bill, which amended the provision to read "seven (7)."

The chair recognized Mr. Harmless, who stated that the Federal Election Commission had a similar rule regarding the timeliness of filings mailed to the FEC, and expressed the hope that the Indiana statute on this point would be changed.

9. Cause 98-903-14 (Pearson in 92)
The chair recognized Ms. Thompson, who stated that this committee had filed its January 1998 annual report on February 5, 1998, and that the committee had received notice of this hearing on March 20, 1998. She said that the committee's proposed fine was $752.77, being a $750 civil penalty plus $2.77 in certified mail costs. She added that she wished to introduce a letter dated March 21, 1998 from Mr. Linley E. Pearson, chairman of this committee, into the record for this cause. The Commission consented to the introduction of this letter, which is incorporated by reference in these minutes.

Mr. Cruea moved, seconded by Mr. Long, that this committee be subject to a civil penalty of $750, plus $2.77 in investigative costs documented by the Election Division, for a total of $752.77. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

10. Cause 98-1051-15 (Turner for State Representative)
The chair recognized Ms. Thompson, who stated that this committee had filed its January 1998 annual report at 3:19 p.m., on January 21, 1998, and that the committee had received notice of this hearing on March 20, 1998. She said that the committee's proposed fine was $52.77, being a $50 civil penalty plus $2.77 in certified mail costs.

11. Cause 98-1238-16 (Mechanical Contractors PAC)
The chair recognized Ms. Thompson, who stated that this committee had filed its January 1998 annual report on January 23, 1998, and that the committee had received notice of this hearing on March 23, 1998. She said that the committee's proposed fine was $102.77, being a $100 civil penalty plus $2.77 in certified mail costs. She added that she wished to introduce a letter dated March 23, 1998 from Mr. John Rayburn, treasurer of this committee, into the record for this cause. The Commission consented to the introduction of this letter, which is incorporated by reference in these minutes.

Mr. Long moved, seconded by Mr. Cruea, that this committee be subject to a civil penalty of $100, plus $2.77 in investigative costs documented by the Election Division, for a total of $102.77. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

12. Cause 98-1263-17 (Association of Indiana Life Insurance Companies PAC)
The chair recognized Ms. Thompson, who stated that this committee had filed its January 1998 annual report on January 23, 1998. She said that the committee's proposed fine was $102.77, being a $100 civil penalty plus $2.77 in certified mail costs.

The chair asked if any person present wished to testify before the Commission concerning this cause. The chair recognized Mr. Gary Taylor, treasurer of this committee. Mr. Taylor acknowledged receipt of notice of this hearing by the committee. He added that the committee had no defense for its failure to file on time, and would accept the penalty proposed by the Election Division.

13. Cause 98-1496-18 (Citizens Action Coalition PAC)
The chair recognized Ms. Thompson, who stated that this committee had filed its January 1998 annual report on January 22, 1998, and received notice of this hearing on March 20, 1998. She said that the committee's proposed fine was $52.77, being a $50 civil penalty plus $2.77 in certified mail costs.

The chair asked if any person present wished to testify before the Commission concerning this cause. The chair recognized Mr. William Rosebaum, who stated that he was attorney for this committee. Mr. Rosebaum said that the committee acknowledges that the report was late, apologizes for being late, and accepts the proposed penalty.

14. Cause 98-1538-19 (International Brotherhood of Painters and Allied Trades)
The chair recognized Ms. Thompson, who stated that this committee had filed its January 1998 annual report on January 22, 1998. She said that the committee's proposed fine was $52.77, being a $50 civil penalty plus $2.77 in certified mail costs.

The chair asked if any person present wished to testify before the Commission concerning this cause. There was no response. The chair noted that according to Campaign Finance staff, there was no proof that the committee had received notice of this meeting.

15. Cause 98-1693-20 (Committee to Reelect Engle)
The chair recognized Ms. Thompson, who stated that this committee had filed its January 1998 annual report on January 23, 1998, and received notice of this hearing on March 21, 1998. She said that the committee's proposed fine was $102.77, being a $100 civil penalty plus $2.77 in certified mail costs.

The chair asked if any person present wished to testify before the Commission concerning this cause. There was no response.

16. Cause 98-1828-21 (Chiropac)
The chair recognized Ms. Thompson, who stated that this committee had filed its January 1998 annual report on January 23, 1998, and received notice of this hearing on March 20, 1998. She said that the committee's proposed fine was $102.77, being a $100 civil penalty plus $2.77 in certified mail costs.
The chair asked if any person present wished to testify before the Commission concerning this cause. There was no response.

17. Cause 98-1858-22 (Kathy Smith for State Senate)
The chair recognized Ms. Thompson, who stated that this committee had filed its January 1998 annual report on February 2, 1998. She said that the committee's proposed fine was $602.77, being a $600 civil penalty plus $2.77 in certified mail costs. Ms. Thompson added that this committee had been closed on February 2, 1998.

The chair asked if any person present wished to testify before the Commission concerning this cause. The chair recognized former State Senator Kathy Smith. Ms. Smith submitted a written statement dated March 25, 1998, and requested that the statement be entered into the record in this case. The Commission consented to the introduction of this letter, which is incorporated by reference in these minutes.

Ms. Smith stated that she was not aware that she needed to file the annual report for 1997, and that she missed the January 21, 1998 deadline for that reason. She remarked that ignorance of the law is no defense, and that she accepted her responsibility for the late filing. However, Ms. Smith asked that the Commission consider the circumstances outlined in her letter in determining the penalty.

In response to a question from Mr. Long, Ms. Smith stated that she resigned from the Indiana Senate in December 1996, and when she subsequently filed her 1996 annual report in January 1997, she believed that she no longer had a committee. Mr. Long noted that apparently a balance remained to be distributed for the committee to be closed. Ms. Smith responded that this distribution occurred in June 1997.

The chair noted that Ms. Smith had signed the January 1998 report, and had checked the "final/disbands committee" box, and asked if she had also signed the January 14, 1997 report. She responded that she had signed the 1997 report and should have seen that the "final/disbands" box on that report had not been checked, and amended the 1997 report.

Mr. Long stated that due to the mitigating circumstances in this case, and since the candidate had resigned from the State Senate, the $600 proposed penalty should be reduced to $100, plus certified mail costs.

Mr. Long stated that, in view of the candidate's resignation from the Senate, and since the committee was not active, and subsequently disbanded, that a basis existed under the statute to reduce the penalty. Mr. Long moved, seconded by Mr. Harmless, that this committee be subject to a civil penalty of $100, plus $2.77 in investigative costs documented by the Election Division, for a total of $102.77.

Mr. Harmless noted that at the federal level, the treasurer is the individual responsible for fines, and inquired whether the treasurer or the candidate would be responsible for paying any civil penalty assessed by the Commission. Mr. Long stated that he believed the committee would be responsible. In response to a question from the chair, Mr. King said that under Indiana law, the committee is liable for the payment of any fine, and that an Indiana court of appeals case held that if a committee is unable or unwilling to settle a penalty or other civil liability, then the chairman and the treasurer can be held individually liable as statutory members of the committee. Mr. Harmless asked if the candidate could be individually liable. Mr. King responded that the candidate would not be individually liable under this case unless the candidate also served as committee chairman or treasurer. Ms. Smith stated that the discussion was moot since she had conducted the campaign and would be responsible for paying the penalty regardless of who served as chairman or treasurer. In response to a question from the chair, Ms. Thompson said that the statement of organization for the committee showed that Ms. Smith was chairman of the committee and Mr. George Smith was treasurer of the committee.

The chair stated that he believed the pending motion was too lenient, particularly in the case of a former member of the general assembly who had passed the campaign finance laws, and that he could not support this motion. Mr. Long moved to amend his motion to provide that this committee be subject to a civil penalty of $200, plus $2.77 in investigative costs documented by the Election Division, for a total of $202.77. Mr. Harmless seconded the amendment. The Commission adopted the amendment by consent.

The chair stated that he would support the amended motion, with reservations. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

18. Cause 98-1871-23 (South Bend Firefighters PAC)
The chair recognized Ms. Thompson, who stated that this committee had filed its January 1998 annual report on January 28, 1998, and that the committee had received notice of this hearing on March 21, 1998. She said that the committee's proposed fine was $352.77, being a $350 civil penalty plus $2.77 in certified mail costs. She added that she wished to introduce a letter dated January 27, 1998, from Mr. Nick Kowalski, chairman and treasurer of this committee, into the record for this cause. The Commission consented to the introduction of this letter, which is incorporated by reference in these minutes.

In response to a question from Mr. Harmless and Mr. Long, Ms. Thompson stated that the letter in this case had accompanied the report when the report was filed with the Election Division. Mr. Cruea moved, seconded by Mr. Long, that this committee be subject to a civil penalty of $350, plus $2.77 in investigative costs documented by the Election Division, for a total of $352.77. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

19. Cause 98-3003-24 (Indiana CPA PAC)
The chair recognized Ms. Thompson, who stated that this committee had filed its January 1998 annual report on January 26, 1998. She said that the committee's proposed fine was $252.77, being a $250 civil penalty plus $2.77 in certified mail costs.

Mr. Long moved, seconded by Mr. Harmless, that this cause be continued until the next Commission meeting. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

20. Cause 98-3215-25 (Perry Township Firefighters PAC)
The chair recognized Ms. Thompson, who stated that this committee had filed its January 1998 annual report on February 4, 1998. She said that the committee's proposed fine was $702.77, being a $700 civil penalty plus $2.77 in certified mail costs.

Mr. Long moved, seconded by Mr. Cruea, that this cause be continued until the next Commission meeting. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

21. Cause 98-3258-26 (Primerica Financial Services Indiana PAC)
The chair recognized Ms. Craycraft, who stated that this committee had filed its January 1998 annual report on January 22, 1998. She said that the committee's proposed fine was $52.77, being a $50 civil penalty plus $2.77 in certified mail costs. She added that she wished to introduce a facsimile transmission dated March 24, 1998, from Ms. Joanne Kucirek and Mr. Steven A. Reidich, Assistant General Counsel for Primerica Financial Services, into the record for this cause. The Commission consented to the introduction of this letter, which is incorporated by reference in these minutes.

Ms. Craycraft stated that in telephone conversations with these individuals, she had been asked to call the Commission's attention to the final two pages of the facsimile transmission, which documented the committee's efforts to send this report by overnight mail.

The chair asked if any person present wished to testify before the Commission concerning this cause. There was no response. Mr. Cruea moved, seconded by Ms. McClellan, that the hearing in this cause be closed. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

Mr. Long commented that the letter indicated that the treasurer's sister had been ill, and had died on the filing deadline date. Mr. Cruea noted that the report appeared to have already been prepared before this occurred. The chair and Mr. Harmless inquired whether the mailing error had been made in this case by Airborne Express. Ms. Craycraft responded that she had been told by Ms. Kucirek that according to the documentation set forth on the final page of the letter, the firm's mail room had made an error by indicating that "Second Day Service" would be acceptable, and that the error was the firm's fault, not that of Airborne Express.

Mr. Seth Lahn then interrupted to request that the Commission take the remaining causes out of order to accommodate those present at the hearing. The Commission consented to do so by calling out cause numbers in order and recognizing those present.

22. Cause 98-3767-32 (Doug Shelby for State Senate Committee)
The chair recognized Ms. Craycraft, who stated that this committee had filed its January 1998 annual report on January 23, 1998. She said that the committee's proposed fine was $102.77, being a $100 civil penalty plus $2.77 in certified mail costs.

The chair recognized Mr. Shelby, who submitted an undated written statement, and requested that the statement be entered into the record in this case. The Commission consented to the introduction of this statement, which is incorporated by reference in these minutes.

Mr. Shelby stated that on January 20, 1998, he contacted one of the clerks at the Election Division office to discuss the filing of his campaign finance report by fax machine. He said that he was told by the Election Division staff that this would be acceptable, so long as he also submitted an original copy of that report that was postmarked no later than the January 21 deadline. Mr. Shelby indicated that his statement included documentation that his one page report had been sent to the Election Division by facsimile transmission at 11:07 a.m., on January 20, 1998, and a copy of his filing with the Fountain County Election Board on January 14, 1998.

Mr. Shelby said that he made an effort to follow Indiana's campaign finance laws, exactly as they are written, and that his report was on file at the Indiana Election Division at 11:07 a.m. on January 20, 1998 for anyone who wished to see it, although the hard copy arrived later as a result of delays in the Postal Service. In response to a question from Mr. Long, Ms. Thompson stated that the Election Division did receive Mr. Shelby's report by facsimile transmission on January 20, 1998.

In response to a question from the chair, Mr. King said that the Campaign Finance Law is silent with regard to the transmission of campaign finance reports by fax, and does not either specifically authorize or specifically prohibit this practice. He indicated that the only relevant statutory provision indicates that the report must be "filed" by a specific date, but does not specify the means of transmission.

Mr. Long moved, seconded by Mr. Harmless, that the Commission adopt findings of fact in favor of the candidate, indicating that this committee had not violated the Campaign Finance Act and had filed in a timely manner accordance with state law, and further that this cause be dismissed. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

23. Cause 98-3843-39 (Committee to Elect John Waterman)
The chair recognized Ms. Thompson, who stated that this committee had filed its January 1998 annual report at 1:36 p.m. on January 21, 1998. She said that the committee's proposed fine was $52.77, being a $50 civil penalty plus $2.77 in certified mail costs.

The chair recognized Senator John Waterman, who said his committee had submitted its report about an hour and thirty minutes too late.

Mr. Cruea moved, seconded by Ms. McClellan, that the hearing in this cause be closed. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

24. Cause 98-3835-38 (Simmerman for Indiana)
The chair recognized Ms. Thompson, who stated that this committee had filed its January 1998 annual report at 12:39 p.m. on January 21, 1998. She said that the committee's proposed fine was $52.77, being a $50 civil penalty plus $2.77 in certified mail costs.

The chair recognized Mr. Gerald Simmerman, who said he had been detained in his office, and as a result filed this report about thirty minutes too late.

Mr. Long moved, seconded by Ms. McClellan, that this committee be subject to a civil penalty of $50, plus $2.77 in investigative costs documented by the Election Division, for a total of $52.77. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

25. Cause 98-3973-40 (Indiana McDonald's Operators PAC)
The chair recognized Ms. Thompson, who stated that this committee had filed its January 1998 annual report on January 22, 1998. She said that the committee's proposed fine was $52.77, being a $50 civil penalty plus $2.77 in certified mail costs.

The chair recognized Mr. Randy Shields, the treasurer of this committee. Mr. Shields apologized for taking up the Commission's time, and stated that he had just missed the filing deadline on this report by a day.

In response to a question from Mr. Shields, the chair stated that if a committee had no argument to make regarding a proposed penalty, and agreed to the amount of the fine, it was not necessary for a representative of the committee to attend the Commission's hearing. Mr. Shields stated that he knew that the current notice states that a person is not required to appear, but that he was uncertain what was meant by the notice's statement that a failure to appear could result in default. The chair suggested that staff could review the notice to see if there were any ways to make its language clearer. Mr. Long thanked Mr. Shields for his input regarding the notice.

26. Cause 98-4199-51 (Seth Lahn for Representative 96)
The chair recognized Ms. Thompson, who stated that this committee had filed its January 1998 annual report on January 27, 1998. She said that the committee's proposed fine was $302.77, being a $300 civil penalty plus $2.77 in certified mail costs.

The chair recognized Mr. Seth Lahn, the chairman of this candidate's committee. Mr. Lahn apologized for filing this report late, and stated that while he supports the campaign finance enforcement provisions, he requested that the Commission consider reducing the amount of the fine in this case. Mr. Lahn stated that the committee received no contributions and made no expenditures (other than the payment of banking account fees) during the period covered by the 1997 annual report. He added that this occasion was the first time that the committee had committed a campaign finance violation, and that the committee had a total of approximately $400 remaining at this time.

Mr. Lahn stated that at a hearing conducted by the Marion County Election Board several weeks ago concerning this report, the County Election Board voted to reduce the civil penalty against the committee to $50. He remarked that he understood that the Commission was not bound by the County Election Board's decision, but hoped that the Commission would reduce the civil penalty in this case for the same reasons. Mr. Lahn stated that he believed the legislature intended to give the Commission discretion to distinguish between a first time violation committed by a small candidate's committee and violations involving political action committees with large staffs to assist them.

In response to a question from the chair, Mr. Lahn stated that his committee was still active, but as a result of these proceedings, he intended to close the committee expeditiously. He added that this committee had been out of mind since the election, but that he and his treasurer would act expeditiously to address this issue.

Mr. Cruea moved, seconded by Ms. McClellan, that this committee be subject to a civil penalty of $300, plus $2.77 in investigative costs documented by the Election Division, for a total of $302.77. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

27. Cause 98-4240-54 (Indiana Hotel & Motel Association PAC)
The chair recognized Ms. Thompson, who stated that this committee had filed its January 1998 annual report on January 23, 1998, and that the committee had received notice of this hearing on March 20, 1998. She said that the committee's proposed fine was $102.77, being a $100 civil penalty plus $2.77 in certified mail costs.

The chair recognized Ms. Jan Bledsoe, the executive of this association. Ms. Bledsoe stated that the committee had no defense, except that the report had been prepared by an employee of the association who has since been terminated. She added that the committee had never been delinquent in the past, and will not be in the future. Ms. Bledsoe said as a representative of a first time offender, she was confused by the "default" language in the notice, and thanked the Commission for clarifying it.

Mr. Long moved, seconded by Ms. McClellan, that this committee be subject to a civil penalty of $100, plus $2.77 in investigative costs documented by the Election Division, for a total of $102.77. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

28. Cause 98-4273-56 (Ricky Hence for State Representative)
The chair recognized Ms. Thompson, who stated that this committee had filed its January 1998 annual report on February 19, 1998. She said that the committee's proposed fine was $1,002.77, being a $1,000 civil penalty plus $2.77 in certified mail costs.

The chair recognized Mr. Ricky D. Hence, who stated that he was a candidate for state representative. He said that he and his committee's treasurer thought that since he set up his committee after January 1, 1998, that no report would be required in January 1998. He stated that he was later advised by the Election Division that the committee had been organized on December 27 or 28, 1997, and that he was required to file a 1997 annual report, even though the report would show zero activity during the last few days of 1997. Mr. Hence stated that he was advised by the Election Division to file his report as soon as possible, and that he did so promptly after being advised of the situation. Mr. Hence requested leniency from the Commission as a new candidate in the political process who has since become aware of the additional filings required from a candidate for office.

In response to a question from the chair, Mr. Hence stated that he had indicated on his declaration of candidacy form that he was familiar with the requirements of the Indiana Campaign Finance laws. In response to a question from Ms. McClellan, Ms. Thompson stated that according to the CFA-1 filed with the Election Division on December 17, 1997, this committee was organized on December 12, 1997. In response to a question from the chair, Ms. Thompson said that the statement of organization had been filed within the ten day period following organization of the committee, as required by state law.

The chair recognized Mr. Long, who stated that although ignorance of the law was not an excuse, he could understand how an individual who organized a committee shortly before the end of a year might assume that no annual report would be required in the following January. He added that since the committee had received no money during the reporting period, he did not think the proposed penalty was intended by the General Assembly to be applied in this instance.

Mr. Long moved, seconded by Ms. McClellan, that this committee be subject to a civil penalty of $250, plus $2.77 in investigative costs documented by the Election Division, for a total of $252.77. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

In response to a question from the chair, Mr. King stated that staff would prepare final orders concerning these causes for the Commission to sign at its next meeting, and that these would then be mailed to the committees with a notice for payment of the civil penalty.

29. Cause 98-0390-57 (St. Joseph County PAC)
The chair recognized Ms. Craycraft, who stated that this committee had filed its January 1998 annual report on March 3, 1998, and had received notice of this hearing on March 20, 1998. She said that the committee's proposed fine was $1,005.54, being a $1,000 civil penalty plus $5.54 in certified mail costs. She added that she wished to introduce a letter dated March 24, 1998, from Ms. Rebecca J. Bonham, Executive Vice-President of the Chamber of Commerce of St. Joseph County, into the record for this cause. The Commission consented to the introduction of this letter, which is incorporated by reference in these minutes.

The chair recognized Ms. Bonham, who stated that the committee had a zero balance for several months, and she did not believe the committee needed to file. She added that she was working two jobs at the time, and this task slipped through the cracks. Ms. Bonham said she immediately sent the report in when this matter was called to her attention. She respectfully requested leniency from the Commission since the committee had no money to pay the proposed fine without a great deal of difficulty.

In response to a question from the chair, Ms. Bonham stated that the committee has not made any political activity or campaign contributions during the last ten years. She added that she now understands that she should have closed out this committee.

Mr. Long moved, seconded by Mr. Cruea, that the hearing in this cause be closed. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted. Mr. Kevin Corcoran then interrupted to ask that Commission members speak up so that those present could hear the discussion about the Commission's decision.

The chair recognized Mr. Harmless, who asked when the committee filed its most recent previous report. Ms. Craycraft stated that the committee had filed its 1996 annual report on January 8, 1997. Commission members then examined the committee's file. Mr. Long stated that based on the lack of activity by this committee during the last ten years, the proposed civil penalty required by the statute would be unreasonable.

Mr. Long moved, seconded by Ms. McClellan, that this committee be subject to a civil penalty of $100, plus $5.44 in investigative costs documented by the Election Division, for a total of $105.44. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

30. Cause 98-1884-59 (Committee to Elect Brad Bayliff)
The chair recognized Ms. Craycraft, who stated that this committee had filed its January 1998 annual report on March 6, 1998. She said that the committee's proposed fine was $1,005.54, being a $1,000 civil penalty plus $5.54 in certified mail costs.

The chair asked if anyone wished to testify regarding this cause. The chair recognized Mr. Bayliff, who stated that he had served in the legislature until 1994, and described himself as a "recovering politician." He said that he had considered running again in 1996, and had kept his committee open for that reason, but that he was currently attending law school in Bloomington.

Mr. Bayliff stated that his committee had not had any contributions or expenditures since 1994, and that the only debt owed by the committee was a $2,000 loan to himself. He added that he filed his 1997 annual report on the day that he received notice that the report was late, and that he would have closed the committee on that date, except that the Election Division staff were all attending a computer training seminar. Mr. Bayliff said that he had spoken with Ms. Christie about closing this committee by writing off the $2,000 debt, and that he intended to do so as soon as possible. He requested that the Commission waive the proposed penalty if possible.

In response to a question from the chair, Mr. Bayliff stated that he had not filed a 1996 annual report in January 1997, and had assumed that the committee was closed. The Commission examined this committee's file, and the chair noted that the last previous report had been filed on January 17, 1996. Mr. Bayliff stated that, to the best of his recollection, he had not received any notice regarding the 1996 annual report, and had not heard from the Election Division until receiving the notice at his Bloomington address concerning the 1997 annual report. In response to a question from the chair, Ms. Thompson stated that she goes through the files by hand to look for missing reports, and that she must have overlooked this committee's file in January 1997.

In response to a question from Mr. Harmless, Mr. Bayliff stated that he had been advised by Ms. Christie that he could write a letter to himself as chairman of the committee to forgive the $2,000 debt, that the Election Division would include in this committee's file, and that forgiving this debt to himself would permit the committee to be closed.

The chair stated that he felt there should be some penalty in this case since Mr. Bayliff was a former member of the legislature that enacted the campaign finance statutes, and who should be familiar with the campaign finance reporting requirements. He added that the proposed penalty should be reduced since the committee had no activity after 1994.

Mr. Long moved, seconded by Ms. McClellan, that this committee be subject to a civil penalty of $100, plus $5.44 in investigative costs documented by the Election Division, for a total of $105.44. In response to a question from Mr. Harmless, the chair indicated that $100 had previously been the maximum fine for delinquent reports, but that the legislature had increased the maximum fine to $1,000. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

31. Cause 98-3566-60 (For the People In Search of the Truth)
The chair recognized Ms. Craycraft, who stated that this committee had filed its January 1998 annual report on March 10, 1998. She said that the committee's proposed fine was $1,005.54, being a $1,000 civil penalty plus $5.54 in certified mail costs. Ms. Craycraft added that this committee was closed on March 10, 1998.

The chair asked if anyone wished to testify regarding this cause. The chair recognized Mr. Steven Savage, who said that if he didn't sign the paper, he didn't, and that he had no defense. In response to a question from Mr. Harmless, Ms. Thompson confirmed that this committee was now closed. Commission members proceeded to examine the committee's file, and noted that this committee had not received contributions or made expenditures since 1994.

Mr. Long moved, seconded by Ms. McClellan, that this committee be subject to a civil penalty of $100, plus $5.44 in investigative costs documented by the Election Division, for a total of $105.44.

The chair stated that he would support this motion since the committee had no activity since 1994. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

32. Cause 98-3595-61 (Lorenzo for Senate Campaign)
The chair recognized Mr. Jeffrey B. Jackson, of Montgomery, Elsner, & Pardieck, who noted that he had filed a motion for continuance in this matter. Mr. Jackson stated that Mr. Lorenzo did not receive notice of this hearing until March 21, 1998, and left for a family vacation in Florida beginning March 23, 1998. Staff noted that Order 1998-12 had been prepared to grant this motion, and to continue this cause until the next scheduled meeting of the Commission.

Mr. Cruea moved, seconded by Mr. Long, that Order 1998-12 be approved as presented. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted. The chair advised Mr. Jackson that the Election Division would notify this committee when the Commission's next meeting was scheduled.

33. Cause 98-3748-63 (Society Corporation PAC Indiana)
The chair recognized Mr. King, who noted that a motion for continuance had been filed in this case, and that staff had prepared Order 1998-13 to grant this motion, and to continue this cause until the next scheduled meeting of the Commission.

Mr. Cruea moved, seconded by Mr. Long, that Order 1998-13 be approved as presented. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

34. Cause 98-3962-67 (Munster Fraternal Order of Police Lodge 147 PAC)
The chair recognized Mr. King, who noted that a motion for continuance had been filed in this case, and that staff had prepared Order 1998-14 to grant this motion, and to continue this cause until the next scheduled meeting of the Commission.

Mr. Cruea moved, seconded by Mr. Long, that Order 1998-14 be approved as presented. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

35. Cause 98-4133-77 (Bohall for Lieutenant Governor)
The chair recognized Mr. King, who stated that a written motion for continuance had been filed in this case after the Commission's hearing began today. The Commission directed that the motion be included in the minutes of this meeting.

Mr. Cruea moved, seconded by Mr. Long, that a continuance be granted in this cause until the next meeting of the Commission. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

36. Cause 98-4178-79 (Committee to Elect Jason Godsey)
The chair recognized Ms. Craycraft, who stated that this committee had filed its January 1998 annual report on March 16, 1998. She said that the committee's proposed fine was $1,005.54, being a $1,000 civil penalty plus $5.54 in certified mail costs. Ms. Craycraft added that this committee was closed on March 16, 1998.

The chair recognized Mr. Godsey, who stated that he had received notices indicating that this committee had to file identical copies of this report both with the Election Division and with the Marion County Election Board. He stated that he had hand delivered this report to the Marion County Election Board several weeks ago and intended to close this committee at that time. Mr. Godsey said that he just came from the County Election Board, where he had requested a copy of his report to demonstrate that he had closed his committee then. He stated that the Election Board staff remembered him coming in to file a report, but the County Election Board could not locate his committee's file and had promised to contact him if they do locate the file.

Mr. Godsey said that he had filed a report with the Election Division earlier this month to close this committee, and thought that he had completed all that was necessary, but on Monday had received a notice of this hearing indicating that his report was delinquent. The chair noted that the Election Division's file indicated Mr. Godsey's 1996 general election report had also been late, but that the committee had not been closed at that time. Mr. Godsey responded that this was correct, but that he thought his committee had been closed after that election. In response to a question from the chair, Mr. Godsey stated that he had attended the Commission's meeting concerning his late 1996 report, and that he thought that since his report showed a zero balance, that the committee was closed. The chair noted that the report indicated that it was an "annual" report, and that the "final/disbands" box had not been checked. The chair added that legislative candidates were required to file copies of reports with both the Election

Division and with the county election board of the county where the candidate resides. Mr. Godsey said he had checked with the Marion County Election Board, where an identical document had been filed, and he thought that he might have filed with the Election Board twice. In response to a question from Mr. Godsey, the chair indicated that Mr. Godsey's committee had been closed and that he would not need to appear before the Election Commission again regarding this committee.

The chair suggested that if Mr. Godsey became a candidate again, he should consider submitting two copies of each report so that he could retain an original file marked copy of the document. Mr. Godsey said he had received a photocopy of the first page of this filed report from the County Election Board, but that the County Election Board staff did remember him filing the report.

The chair stated that since Mr. Godsey had attended the hearing when he was late before, he should have received plenty of information regarding filing procedures. Mr. Godsey responded that as soon as he received notice regarding this report, he acted promptly to file it.

Mr. Cruea moved, seconded by Mr. Long, that the hearing in this cause be closed. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

Mr. Cruea moved, seconded by Mr. Long, that this committee be subject to a civil penalty of $250, plus $5.44 in investigative costs documented by the Election Division, for a total of $255.44. The chair noted that on one hand this committee had been closed, but that this was the second delinquency violation for this committee. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted. The chair advised Mr. Godsey that he would receive a copy of the signed final order following the next Commission meeting.

37. Cause 98-3434-83 (Ninth District Republican Committee)
The chair recognized Ms. Craycraft, who stated that this committee had filed its March 1998 annual report with the Election Division at 2:34 p.m. on March 2, 1998. She said that the committee's proposed fine was $52.77, being a $50 civil penalty plus $2.77 in certified mail costs.

The chair recognized Mr. John D. Fultz, the treasurer of this committee, who stated that the certified mail he had received concerning this matter on March 20, 1998 was postmarked March 18, 1998. He said that he and the wife of a former state representative had carefully reviewed the committee's report on February 27, since he would be unavailable later due to the defensive driving classes that he teaches and she was attending a basketball game. Mr. Fultz stated that he did not receive anything for serving as an officer of this party committee, and that most individuals did so to help keep the parties going.

Mr. Fultz testified that he deposited this report in the mail late on February 27, 1998, and the envelope should have been stamped early February 28. He said he was advised by the postmaster that a certified letter should be received by the Election Division within two days after mailing. He noted that his wife had signed the certified letter on February 12, and that the report had been sent on February 18, 1998. Mr. Fultz said that he did not understand why with postal charges so high that there should be better service, and that he did not understand why a report mailed on February 27, 1998 took so long to travel 120 miles from Salem to Indianapolis. He said that this report should have arrived before March 2, 1998.

The chair stated that he would suggest that this committee mail its report by certified mail in the future to obtain proof of receipt. Mr. Fultz stated that since it had taken two and one half days for mail to travel from Salem to Indianapolis, he requested that the Commission waive the committee's penalty in this case. He added that although his committee's report had been late once before, but that had occurred when the Election Commission did not send notices to several committees.

The chair recognized Mr. Long, who stated that in this case, the committee had attempted to comply with the filing requirement, and had put the report in the mail on time. He said that as a result, he was opposed to levying a civil penalty in this case. The chair responded that the Commission had not considered the mailing date of other committee reports, and that the Commission should be consistent in this regard.

Mr. Cruea moved, seconded by Ms. McClellan, that this committee be subject to a civil penalty of $50, plus $2.77 in investigative costs documented by the Election Division, for a total of $52.77. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

38. Cause 98-3350-86 (Republican Sixth Congressional Committee)
The chair recognized Mr. King, who stated that a written motion for continuance had been filed in this case after the Commission's hearing began today. The Commission directed that the motion be included in the minutes of this meeting.

39. Cause 98-0363-87 (Marion County Democrat Central Committee)
The chair recognized Ms. Craycraft, who stated that this committee had filed its March 1998 annual report with the Election Division on March 24, 1998, and had received notice of this hearing on March 20, 1998. She said that the committee's proposed fine was $1,002.77, being a $1,000 civil penalty plus $2.77 in certified mail costs.

The chair recognized Mr. Paul Morgan, the treasurer of this committee, who stated that he had encountered some difficulty in preparing this report since during the past year both the county chairman and the former treasurer's husband, Mr. Wally Bruner, had passed away. He indicated that he was reluctant to rely on the treasurer for information, and had instead relied exclusively on the Campaign Finance Manual prepared by the Election Division. He testified that the chart at the front of the Manual indicates that a county political party committee only files with the county election board. Mr. Morgan stated that he filed this report in a timely manner with the Marion County Election Board on February 24, 1998. He said that when he learned that this report must also be filed with the Indiana Election Division, he immediately contacted Ms. Craycraft and filed a copy the next day. Mr. Morgan stated that if this was an error, his excuse was his reliance on the Manual. He added that the committee had filed all other required reports.

In response to a question from the chair, Mr. King noted that at the bottom of page 45 of the Manual, treasurers of regular party committees are advised that the annual report must be filed with the Election Division or the appropriate county election board by March 1 in accordance with Indiana Code 3-9-5-10. He added that under IC 3-9-5-2, the entities required to file a campaign finance report with the Election Division include "(3) other regular party committees that propose to influence the election of a candidate for state or legislative office." Mr. King noted that the filing requirement is not based on the amount of a contribution, but on an expenditure made by a regular party committee to influence a statewide race or a state legislative race.

The chair recognized Mr. Long, who stated that if a county committee sold tickets for a fundraising dinner that included the local state legislative candidate, the county party committee would be required to file a report with the Election Division. Mr. King responded that this was correct. Mr. Long responded that this should have resulted in all ninety-two county committees filing with the Election Division to report this activity. Mr. Harmless stated that many county committees may not be aware of this requirement, and asked if the Election Division would advise county committees of this requirement if the committee had not previously filed with the Election Division. Mr. King responded that while it was the responsibility of a committee involved in the political process to be aware of the requirements of the Campaign Finance Act, and that in the past, the State Election Board and Election Commission staff had rarely sent letters out advising a person that the person was required to file a campaign finance report.

Mr. Long inquired what evidence existed that this committee was required to file with the Election Division. Mr. King responded that at some previous point, the chairman or the treasurer of this committee had determined that the committee was required to file with the Election Division. Mr. Long noted that if the committee did not make an expenditure during 1997 that required this reporting, the committee could not disband to avoid the requirement to file further reports with the Election Division. Mr. King responded that Mr. Long was correct that the county central committee was established by party rules and could not disband in the manner that other committees have. He added that instead, when a committee ceases to give to statewide or state legislative candidates, the committee files a notice to the Election Division stating that this is the case. He noted that the Election Division staff then closes the file number for that committee, but the party committee continues to exist.

The chair noted that the Manual's chart indicates that only the state party committees and congressional district committees file with the Election Division. He said that the state committees should communicate the campaign finance filing requirements concerning statewide and state legislative candidates to their county committees. The chair added that if he were a member of a county committee he would not interpret this chart to require the committee to file with the Election Division.

The chair recognized Mr. King, who stated that in one previous case involving a candidate challenge, the Commission had recognized that where an individual substantially relied on incorrect information provided by an election administrator, the individual should not be penalized by the denial of ballot placement. He indicated that this Commission decision might provide precedent for Commission action taking into account the committee's reliance on the Manual chart in this case.

The chair requested that the co-general counsels prepare a joint letter to the state committees, advising them of the campaign finance filing requirements for county committees that support statewide or state legislative candidates, and to request that the state committees disseminate this information to the county committees. Mr. Long concurred with the chair's suggestion. The chair recognized Mr. Harmless, who noted that although the treasurer and chairman of a candidate's committee usually remain the same, there is significant turnover on county committees with new individuals serving as county chairman or treasurer. He urged the Election Division to educate incoming county chairs concerning campaign finance filing requirements.

Mr. Cruea moved, seconded by Mr. Long, that the Commission dismiss this cause since the county committee did file a timely report with the county election board, and due to the county committee's mistaken reliance on the Campaign Finance Manual chart. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

40. Cause 98-4351-94 (Eugene P. Dooley, State Representative District 96)

The chair recognized Ms. Craycraft, who stated that this committee had filed its statement of organization with the Election Division on March 20, 1998. She said that the committee's proposed fine was $1,002.77, being a $1,000 civil penalty plus $2.77 in certified mail costs.

The chair recognized Mr. Eugene P. Dooley, who stated that he was running for political office for the first time. He said that when he originally looked at his campaign finance information before filing his economic interest statement form, he misunderstood the exemption that provided that a candidate was not required to file a campaign finance report if the candidate sought an office with compensation of less than $5,000 per year. Mr. Dooley said he understood this to refer to committees which received less than $5,000 in contributions per year.

Mr. Dooley stated that when he received a letter concerning his committee from the Election Division on March 20, 1998, he immediately filed the statement of organization for his committee, designating himself as committee chairman and a close friend as committee treasurer. He requested that the Commission please be lenient with this committee, since it was just becoming organized, and he was simply trying to represent the people of District 96. In response to a question from the chair, Ms. Craycraft clarified that this committee was delinquent in filing its CFA-1 statement of organization, not its annual report.

In response to a question from the chair, Mr. Dooley stated that he had signed the declaration of candidacy for the primary and indicated that he was familiar with the requirements for filing campaign finance reports. He indicated that he assumed he was required to file the statement of organization within a certain number of days after filing his declaration of candidacy, and at that time he had not raised any money. Mr. Dooley said that his principal fundraiser was not scheduled until April 17, 1998.

In response to a question from Mr. Long, Mr. Dooley stated that the same penalty applied under the statute for failure to timely file a statement of committee organization ($50 per day, with a maximum fine of $1,000). He stated that now that he was familiar with the process, this mistake would never happen again.

In response to a question from Mr. Long, Mr. King stated that this was the first occasion the Commission had conducted enforcement proceedings concerning delinquent filings of statements of organization. The chair stated that since this was the first occasion for enforcing this particular provision, he believed that a $1,000 fine was a little stiff. He noted, however, that each primary candidate has signed a form stating that the candidate is familiar with the Campaign Finance Act.

41. Cause 98-4343-88 (Citizens to Elect Adam Barrett)
The chair recognized Ms. Craycraft, who stated that this committee had filed its statement of organization with the Election Division on March 2, 1998. She said that the committee's proposed fine was $202.77, being a $200 civil penalty plus $2.77 in certified mail costs.

The chair recognized Mr. Adam Barrett, who stated that he was also a first time candidate. Mr. Barrett said that after he filed his declaration of candidacy on February 19, he was told by the House Democratic caucus leader that the committee must file its CFA-1 form within ten working days after he announced his candidacy. He indicated that ten working days after February 19 would fall on March 5, 1998.

Mr. Barrett stated that he called the Election Division on March 2 to make certain that he had the correct address to send his statement of organization by overnight mail. He was then advised by the Election Division that his statement was already late, since it was due by noon, the previous Friday. Mr. Barrett said he was told by the Election Division that he could fax this form, and that he did so within a hour. He indicated that the Election Division had his statement available for inspection at noontime on that Monday. Mr. Barrett stated that he was relying on information from experienced individuals in the legislature, who had passed this legislation, and that when he signed his declaration of candidacy, he thought he did understand the filing requirements, based on his conversation with legislators familiar with the new statutes. He emphasized that as soon as he discovered his error, he immediately FAXed the statement to the Election Division. He also requested a copy of the Campaign Finance Manual, so that he would not have to rely on anyone else in the future for this information.

The chair noted that although the copy of the FAXed document in this candidate's file is marked as filed with the Election Division as of 1:44 p.m., March 2, 1998, the transmittal date on the fax is March 3, 1998, at 1:29 a.m. Mr. Barrett stated that he used a fax at a location near his office, and that his copy of the fax shows it was transmitted to the Election Division on March 2, 1998.

Mr. Long stated that for the sake of consistency with the previous case, he believed that the fine assessed in this case should equal 25% of the proposed civil penalty.

Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

42. Cause 98-4126-47 (Kern for Senate)
The chair recognized Ms. Craycraft, who stated that this committee had filed its January 1998 annual report with the Election Division on January 23, 1998, and had received notice of this hearing on March 20, 1998. She said that the committee's proposed fine was $102.77, being a $100 civil penalty plus $2.77 in certified mail costs.

The chair recognized Mr. Kenneth Kern, who stated that he was running as a Democratic candidate in Senate District 32, which he described as not really a serious activity anyway. He stated that the committee simply forgot the deadline, and had no legal reason for doing so.

Mr. Kern stated that he had already been fined $150 by the Marion County Election Board for this late report, and that this fine has already been paid. He said that he had filed his report with the Marion County Election Board on the same day that he filed with the Election Division. Mr. Kern stated that the $150 fine seemed sufficient since his committee only had $147 left, and that it seemed unfair to be penalized by two different levels of government for the same offense. In response to a question from Mr. Harmless, Mr. Kern stated that he would be closing this committee.

Mr. Cruea moved, seconded by Ms. McClellan, that this committee be subject to a civil penalty of $100, plus $2.77 in investigative costs documented by the Election Division, for a total of $102.77. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

43. Cause 98-4349-92 (Robert Breese/State Representative 36)
The chair recognized Ms. Craycraft, who stated that this committee had filed its statement of organization with the Election Division on March 20, 1998, and received notice of this hearing on the same date. She said that the committee's proposed fine was $1,002.77, being a $1,000 civil penalty plus $2.77 in certified mail costs. She added that she wished to introduce an undated letter from Mr. Robert Breese into the record for this cause. The Commission consented to the introduction of this letter, which is incorporated by reference in these minutes.

The chair recognized Mr. Robert Breese, who stated that he was a first time candidate, and had no idea before becoming a candidate what he was required to file. He said that he was not given the CFA-1 statement of organization when he filed his economic interest statement, and that as soon as he received notice of this violation, he contacted the Election Division to learn what to do. Mr. Breese stated that he was serving as his own chairman and treasurer, and did not intend to ask for any contributions for the primary election.

In response to a question from the chair, Mr. Breese said he signed the declaration of candidacy which contained a statement that he was familiar with the Campaign Finance Act filing requirements because he was asked to sign the declaration.

Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

44. Cause 98-4356-99 (John M. Prescott/ State Representative 61)
The chair recognized Ms. Craycraft, who stated that this committee had filed its statement of organization with the Election Division on March 23, 1998. She said that the committee's proposed fine was $1,002.77, being a $1,000 civil penalty plus $2.77 in certified mail costs.

The chair recognized Mr. John M. Prescott, who stated that this mistake was based on inexperience on his part. He said that
as soon as he became aware of the requirement to file the statement, he filed this document with the Election Division. Mr. Prescott stated that if he had been receiving contributions, he would have filed the statement of organization sooner since he would have been more familiar with the campaign finance forms. He added that he was a first time candidate, and this mistake was simply an oversight on his part. In response to a question from the chair, Mr. Prescott said he did sign the declaration of candidacy which contained a statement that he was familiar with the Campaign Finance Act filing requirements.

Mr. Cruea moved, seconded by Mr. Long, that this committee be subject to a civil penalty of $250, plus $2.77 in investigative costs documented by the Election Division, for a total of $252.77. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr.

Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

The chair, noting that the lunch hour had arrived, announced that the Commission's meeting would recess until 1:00 p.m., at which time the Commission would reconvene in Training Center Room #2, Indiana Government Center South. The chair then recessed the Commission meeting at 12:24 p.m.
* * *

At 1:10 p.m., the chair reconvened the Commission's meeting in Training Center Room #2, and noted that the same Commission members were present.

At the request of the chair, Mr. King administered the oath to all individuals who had not previously testified before the Commission.

The chair announced that the Commission would hear the causes of those individuals who were present before preceding to the causes where no one had appeared.

45. Cause 98-4346-90 (Edward Schmidt for State Representative, District 32)
The chair recognized Ms. Craycraft, who stated that this committee had filed its statement of organization with the Election Division on March 9, 1998, and had received notice of this hearing on March 20, 1998. She said that the committee's proposed fine was $552.77, being a $550 civil penalty plus $2.77 in certified mail costs.

The chair recognized Mr. Edward Schmidt, who stated that he wished to introduce his statement dated March 25, 1998 into the record for this cause. The Commission consented to the introduction of this statement, which is incorporated by reference in these minutes.

Mr. Schmidt requested that the Commission not assess a civil penalty against the committee for the delinquent filing of its statement of organization. He stated that this omission was unintentional and not out of contempt for the election laws or to conceal information. Mr. Schmidt said that the delinquency was due to the recent birth of his grandson, and that in past elections his campaign finance reports have been filed in a timely manner.

Mr. Schmidt said that as soon as he received the CFA-1 form, he completed it, and sent the form by fax to the Election Division. He added that a copy of the statement of organization was hand delivered to the county election boards in Grant and Madison Counties. He stated that he was the only member of this committee, and that as of this date he has not solicited or received any special interest money for this election. Mr. Schmidt said that he would pay any fine from his personal funds, and that the proposed fine would place a hardship on his family. He apologized for any inconvenience caused to the Commission and requested the Commission's understanding and consideration.

In response to a question from the chair, Mr. Schmidt stated that he had been a candidate in the past and served on the city council and as mayor. He added that he was aware that the declaration of candidacy that he signed for this primary notified him that he was required to file a statement of organization within seven days, and that he had omitted to do so.

Mr. Long moved, seconded by Mr. Cruea, that this committee be subject to a civil penalty of $137.50, plus $2.77 in investigative costs documented by the Election Division, for a total of $140.27.
There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr.

Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

46. Cause 98-3779-65 (Hoosiers for Connie Nass)
The chair recognized Ms. Craycraft, who stated that this committee had filed its January 1998 annual report with the Election Division on March 6, 1998, and that the committee had received notice of this hearing on March 24, 1998. She said that the committee's proposed fine was $1,005.54, being a $1,000 civil penalty plus $5.54 in certified mail costs. Ms. Craycraft noted that this committee was closed on March 6, 1998. She added that she wished to introduce a letter dated March 24, 1998 from Doris Anne Fechtman into the record for this cause. The Commission consented to the introduction of this letter, which is incorporated by reference in these minutes.

The chair recognized Ms. Lesa Dietrick and Ms. Doris Anne Fechtman. Ms. Dietrick stated that she and Ms. Fechtman served as members of the executive committee for Nass for Auditor, and had also served as members of the executive committee for Hoosiers for Connie Nass. Ms. Dietrick testified that Hoosiers for Connie Nass was a candidate's committee for lieutenant governor, which was established in 1996. She said that she and Ms. Fechtman had believed that Ms. Nass signed a form in August 1997 to disband this committee and that the form had been forwarded to the Election Division. She added that this form was apparently been lost and never received by with the Election Division. She stated that when Ms. Nass signed the form to disband the committee, only $473 remained in committee assets.

Ms. Dietrick stated that in September 1997, Ms. Nass decided to run for State Auditor and established a new committee, Nass for Auditor. She noted that the statement of organization for this committee and the 1998 annual report for the new committee had been filed in a timely fashion. She testified that as soon as she became aware of the delinquent 1998 report for Hoosiers for Connie Nass, she arranged for the report to be filed, and for the Election Division to be notified that the committee has disbanded.

In response to a question from Mr. Long, Ms. Fechtman stated that when Ms. Nass signed the final report on August 1, 1997, the disbursement of the committee's remaining assets was specified in that report. Ms. Dietrick noted that these funds had been used to reimburse the candidate for expenses incurred on behalf of the committee.

Mr. Long remarked that the facts in this case were similar to Cause 22, the Kathy Smith for State Senate committee, and as a result, he believed that the Commission should reduce the civil penalty to one-third of the proposed amount.

Mr. Long moved, seconded by Mr. Harmless, that this committee be subject to a civil penalty of $333.00, plus $5.54 in investigative costs documented by the Election Division, for a total of $338.54. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

47. Cause 98-4032-70 (Friends of Dan Conway)
The chair recognized Ms. Craycraft, who stated that this committee had filed its January 1998 annual report with the Election Division on March 4, 1998. She said that the committee's proposed fine was $1,005.54, being a $1,000 civil penalty plus $5.54 in certified mail costs. Ms. Craycraft noted that this committee had disbanded on March 4, 1998.

The chair recognized Mr. Jon Madison, who served as treasurer of this committee. Mr. Madison stated that this report was late because as treasurer, he did not close out the committee correctly. He stated that the committee's January 1997 report showed zero balances, and that there was no committee activity during 1997. Mr. Madison said that he filed the proper report to close this committee as soon as he was notified that the state considered the committee to still be active and that the report was delinquent. Mr. Madison requested that the proposed penalty be reduced due to these circumstances.

Mr. Harmless stated that the facts in this case seemed similar to those in Cause 60 (For the People in Search of the Truth), and that a reduction of the proposed penalty seemed appropriate. The chair agreed, and said that Cause 57 (St. Joseph County PAC) had similar facts.

Mr. Harmless moved, seconded by Mr. Long, that this committee be subject to a civil penalty of $100.00, plus $5.54 in investigative costs documented by the Election Division, for a total of $105.54. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

48. Cause 98-4352-95 (Nicholas J. Gasparovic/ State Representative, District 19)
At the request of the chair, Mr. King administered the oath to Mr. Gasparovic and Ms. Leslie Davis Hiner.

The chair recognized Ms. Craycraft, who stated that this committee had filed its statement of organization with the Election Division on March 24, 1998, and that the committee had received notice of this hearing on that date. She said that the committee's proposed fine was $1,002.77, being a $1,000 civil penalty plus $2.77 in certified mail costs. She added that she wished to introduce a letter dated March 25, 1998 from Leslie Davis Hiner of Hiner Jinks & Abrams into the record for this cause. The Commission consented to the introduction of this letter, which is incorporated by reference in these minutes.

The chair recognized Ms. Leslie Davis Hiner, who stated that Mr. Gasparovic resides in Crown Point, is a first time candidate, and had not previously been involved in political campaigns. She added that although Mr. Gasparovic has individual supporters, he does not have a campaign organization with a formal structure.

Ms. Hiner testified that Mr. Gasparovic had attested on the declaration of candidacy form for the primary to being familiar with the campaign finance regulations. She noted that this statement indicates that a candidate "may" be required to file a campaign finance statement of organization. Ms. Hiner said that Mr. Gasparovic also read in the Campaign Finance Manual that if he did not file a statement of organization, the Election Division would file the statement for him. She added that as a first time candidate, Mr. Gasparovic had read the forms in a "common sense" way, and that since he did not have a campaign "organization", he did not understand that he was still required to file a campaign finance statement of organization.

Ms. Hiner noted that the Commission has the authority to waive or reduce penalties for campaign finance violations when the proposed penalty would be unjust. She said that the proposed penalty of $1,000 in this case would clearly be unjust, and would serve as a deterrent to discourage new or unsophisticated candidates from seeking elected office. She testified that Mr. Gasparovic attended a campaign finance seminar yesterday, and has become well schooled in the campaign finance reporting requirements for candidates.

Ms. Hiner stated that Mr. Gasparovic has subsequently filed his statement of organization. She concluded by urging that the Commission reduce the civil penalty to actual costs, meaning $2.77.

The chair recognized Mr. Gasparovic, who apologized to the Commission, and stated that he had been humbled by this experience, but since he had attended campaign finance training he would do his best to follow the requirements for filing campaign finance reports.

Mr. Cruea moved, seconded by Mr. Harmless, that this committee be subject to a civil penalty of $250.00, plus $2.77 in investigative costs documented by the Election Division, for a total of $252.77. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

49. Cause 98-4179-80 (Dillon for Governor)
The chair recognized Ms. Craycraft, who stated that this committee had filed its January 1998 annual report with the Election Division on March 4, 1998, and that the committee had received notice of this hearing on March 20, 1998. She said that the committee's proposed fine was $1,005.54, being a $1,000 civil penalty plus $5.54 in certified mail costs. Ms. Craycraft noted that this committee was closed on March 6, 1998. Ms. Christie added that Mr. Dillon had been present at the morning session of the Commission meeting, but was required to leave to attend a court proceeding.

At the request of the chair, Mr. King administered the oath to Mr. Ross Thomas, the treasurer of this committee. Mr. Thomas stated that the report was filed late, and noted that the committee had previously filed a report on January 13, 1997. He indicated that the campaign had intended to close this campaign with the January 1997 report, and that the balance of $128 remaining at that time had since been distributed. Mr. Thomas stated that he had been advised that the committee was finished as of the January 14, 1997 filing, and that a $1,000 penalty would pose a hardship to the committee. He indicated that the mistake had been made in good faith.

The chair noted that this committee has also been late when the 1997 annual report was filed, and that the Commission had conducted a previous hearing at that time. In response to a question from the chair, Mr. Thomas said that he could not answer why the committee had not been closed in 1997, and that he understood that the committee had in fact been closed. He stated that, unlike in 1997, the committee did not realize that a filing was required.

In response to a question from the chair, Mr. Thomas stated that he believed Mr. Dillon had also run on the Libertarian ticket for Secretary of State. The chair stated that Mr. Dillon should have been familiar with the campaign filing requirements due to his previous experience as a candidate. In response to a question from Mr. Long, Mr. Thomas and Ms. Craycraft stated that the committee had disbanded on March 4, 1998.

Mr. Thomas stated that the committee had previously been assessed a civil penalty of $12.52 on March 12, 1997. The chair responded that the 1997 meeting was the first occasion on which these fines were assessed, and that he was very lenient at that time as a result. He added that he announced at the 1997 meeting that he would not be lenient at future meetings, and that there has been plenty of publicity concerning campaign finance requirements since that time.

The chair said that since Mr. Dillon has been a candidate for other offices, he should know about the reporting requirements, and noted that his committee had been previously fined for another campaign finance offense. Mr. Long stated that he concurred with the chair's analysis, and would support a lesser reduction in the proposed civil penalty in this case.

Mr. Cruea moved, seconded by Mr. Long, that this committee be subject to a civil penalty of $500.00, plus $5.54 in investigative costs documented by the Election Division, for a total of $505.44.

There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

50. Cause 98-4347-91 (Darin Patrick Griesey for State Representative)
The chair recognized Ms. Craycraft, who stated that this committee had filed its statement of organization with the Election Division on March 10, 1998. She said that the committee's proposed fine was $602.77, being a $600 civil penalty plus $2.77 in certified mail costs.

The chair recognized Mr. Darin Patrick Griesey, who asked to introduce a letter dated January 21, 1998 from Clay Whitmire with two pages of attachments into the record for this cause. The Commission consented to the introduction of this letter, which is incorporated by reference in these minutes.

In response to a question from Mr. Griesey, the chair explained that the proposed fine had calculated at the rate of $50 per day, beginning at noon on the final date for filing the statement. Ms. Craycraft stated that the deadline for filing a declaration of candidacy was noon, February 20, 1998, and that, as a result, the deadline for Mr. Griesey to file his statement of organization was noon, February 27, 1998. The chair recognized Mr. King, who stated that the applicable deadline in this case was fixed at seven days following the final date for filing a declaration of candidacy, not the date on which a declaration had previously been filed.

Mr. Griesey testified that he had been in Washington, D.C. from on February 27, 1998, and had contacted the Election Division to request information regarding this matter, but that when he called shortly before leaving Indianapolis on February 24, no one could answer his questions. He stated that no one returned his call, and that he then left for Washington and did not return until March 3, 1998.

Mr. Griesey stated that he contacted the Election Division upon his return, and on the following day Ms. Craycraft returned his call. He said that he was advised by Ms. Craycraft not to worry when he asked whether he should appear in person at the Election Division to immediately file this material. He stated that Ms. Craycraft advised him that the Election Division would mail him a copy of the CFA-1, and that he should complete and return the statement of organization when he received it. Mr. Griesey said that he received the statement the following Tuesday, and immediately completed and filed the CFA-1.

He added that he only received his notice to appear in this morning's mail, and appeared at the Commission's morning session. Mr. Griesey testified that he then reviewed his declaration of candidacy form, which stated that he "may be required to file a campaign finance statement of organization not later than seven days." He noted that the form did not state "will be required."
Mr. Griesey stated that he reviewed Indiana Code 3-9-1-3, which concerns the filing of a campaign finance statement of organization, and that he understood this provision require this filing no more than ten days after the organization of his committee. He noted that he had actually formed his committee on February 28, 1998, and was under the impression from his review of the statutes and his conversation with Ms. Craycraft that his committee had not committed a violation.

Mr. Griesey said that since this matter was important, he wished that there was something in bolder print in the Indiana Candidate Guide concerning this requirement. He noted that the only information concerning this filing that he saw was in the declaration of candidacy (CAN-2) form. The chair requested that the Election Division provide Mr. Griesey with a copy of the Campaign Finance Manual. Mr. Griesey stated that he was a first time candidate, and thought he had complied with the Campaign Finance Act. He added that he was surprised and distraught when he discovered that he had not.

In response to a question from Mr. Harmless, Mr. Griesey stated that the statement of organization indicated that his committee had organized on February 28, 1998, but that this date had no particular significance, other than the first occasion when Mr. Griesey began thinking about organizing a committee. He added that while he was in Washington on that date, he began jotting down notes concerning his committee's organization and campaign strategy. Mr. Harmless said he was confused by this, since it appeared that Mr. Griesey had actually organized his committee on March 9, 1998.

The chair recognized Mr. King, who stated that Indiana Code 3-9-1-5(b), provides in part that no later than noon ten days after becoming a "candidate", which has a special definition for campaign finance purposes involving an individual raising or spending the first $100, or noon, seven days after the final date and hour for filing a declaration of candidacy, whichever occurs first, a candidate is required to file a statement of organization (CFA-1). He added that, in this case, it appeared that the applicable deadline was noon, seven days after filing the deadline for filing a declaration of candidacy, although this may not be clear from the CFA-1 which was filed.

Mr. King added that the language on the declaration of candidacy form (CAN-2) which states that a candidate "may" be required to file, is phrased in that manner because the same form is used by candidates for all levels of office, including candidates for county council, township offices, city offices, and town offices, who are not required to file campaign finance forms because the office they seek has a compensation of less than $5,000 per year.

Mr. Griesey said that the declaration of candidacy form did reference the campaign finance requirements for candidates for offices which paid less than $5,000 per year, but that candidates for these offices would probably not be reading paragraph 9 on the CAN-2 form. In response to a question from Mr. Long, Mr. King stated that anyone who wished to be on the primary ballot for an office which pays less than $5,000 per year must still file a CAN-2 form, but did not have to file a campaign finance statement of organization (CFA-1). Mr. Long stated that this was the age-old problem of having the language on one form apply to all situations.

Mr. Long moved, seconded by Mr. Cruea, that this committee be subject to a reduced civil penalty of $150.00, plus $2.77 in investigative costs documented by the Election Division, for a total of $152.77. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted. The chair advised Mr. Griesey that he would receive subsequent notice concerning the payment of the penalty in this case.

51. Cause 98-4134-78 (Lewis & Kappes PAC)
The chair recognized Ms. Craycraft, who stated that this committee had filed its January 1998 annual report with the Election Division on March 2, 1998, and that the committee had received notice of this hearing on March 20, 1998. She said that the committee's proposed fine was $1,005.54, being a $1,000 civil penalty plus $5.54 in certified mail costs. Ms. Craycraft added that she wished to introduce a letter dated March 20, 1998 from C. Duane O'Neal, Lewis & Kappes, into the record for this cause. The Commission consented to the introduction of this letter, which is incorporated by reference in these minutes.

The chair recognized Mr. David Gray, who stated that he was the treasurer of this committee. He indicated that the committee made a mistake, and had no excuses. He apologized to the Commission, and said that this error was not intentional. Mr. Gray said that the person in charge of this matter was a paralegal, who had since left Lewis & Kappes and neglected to inform her successor regarding the filing requirements for the PAC. He added that the committee had not engaged in any political activity during 1997, so the filing requirement had not been on anyone's mind.

In response to a question from the chair, Mr. Gray stated that the committee had also filed its January 1997 report late, and that this was the committee's second occasion to appear before the Commission due to a late report. Mr. Gray added that the committee would remain active, but during 1997, its only activity had been the payment of approximately $80 in checking account fees. In response to a question from Mr. Harmless, Mr. Gray stated that the committee intended to remain active if it could do its paperwork. He said that it was an embarrassment for a law firm to miss a filing deadline. In response to a question from Mr. Long, Mr. Gray stated that the committee had organized in 1996.

The chair stated that this cause appeared to have facts similar to Cause #80 (Dillon for Governor), in that this was the committee's second offense.

Mr. Cruea moved, seconded by Mr. Long, that this committee be subject to a civil penalty of $500.00, plus $5.54 in investigative costs documented by the Election Division, for a total of $505.54. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

52. Cause 98-3500-27 (Friends of Pat Eddy)
The chair asked if any person present wished to testify before the Commission concerning this cause. There was no response. The chair noted that according to Campaign Finance staff, there was no proof that the committee had received notice of this meeting, and no written submission had been received from the committee.

53. Cause 98-3563-28 (John R. Holmes for State Representative)
The chair asked if any person present wished to testify before the Commission concerning this cause. There was no response. The chair noted that according to Campaign Finance staff, there was no proof that the committee had received notice of this meeting, and no written submission had been received from the committee.

Mr. Cruea moved, seconded by Mr. Long, that this cause be continued until the next Commission meeting. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted. Mr. King stated that staff would prepare an order for the Commission's signature to indicate that this cause had been continued on the Commission's own motion.

54. Cause 98-3585-29 (Henderson for State Representative)
The chair recognized Ms. Thompson, who stated that this committee had filed its January 1998 annual report with the Election Division on January 22, 1998, and that the committee had received notice of this hearing on March 21, 1998. She said that the committee's proposed fine was $52.77, being a $50 civil penalty plus $2.77 in certified mail costs. Ms. Thompson added that she wished to introduce a letter dated March 23, 1998 from former State Representative Linda Kay Henderson into the record for this cause. The Commission consented to the introduction of this letter, which is incorporated by reference in these minutes.

In response to a question from Mr. Long, Ms. Thompson stated that the Election Division does not retain the envelope when the Division receives a late campaign finance filing of an annual report. In response to a question from the chair, Ms. Thompson said that she could not confirm whether Ms. Henderson did send her report by certified mail, and that she had not received any proof from Ms. Henderson regarding this question. The chair noted that Ms. Henderson referred to the use of certified mail in her letter, and he would have thought she would have supplied a photocopy of the certified mail receipt with her correspondence to the Election Division.

Mr. Harmless asked why the Election Division does not use the date of a postmark for a campaign finance report filing, rather than the date the report is received by the Election Division, and noted that this practice is inconsistent with the federal regulations on this point. Mr. King responded that the Indiana Election Code contains a special definition of "filing", which is referenced by the statutes governing the filing of campaign finance reports. He indicated that under Indiana law, "filing" occurs when a document is received by the Election Division or a county election board, and is file stamped by that office. Mr. Harmless asked whether this was a new development in the law, and whether the Election Division and his fellow Commission members supported this approach. The chair responded that he was of the opinion that if a committee submits proof of a timely filing by certified mail or overnight mail, that a fine should not be imposed.

In response to a question from Mr. Harmless concerning whether any of the Election Division's campaign finance material contained a suggestion that reports be sent by certified mail, the chair stated that he did not think so, but that he has stressed at previous campaign finance enforcement meetings that filings should be sent by certified mail. The chair added that he believed the Commission should discuss this question with legislators to urge that this law be changed to remove the source of confusion on this point. Mr. Harmless concurred with this suggestion.

In response to a question from Mr. Long, Mr. King noted that the special filing statute he referred to is located at Indiana Code 3-5-2-24.5, which was enacted in 1988. He added that in the summer of 1997, the Census Data Advisory Committee unanimously recommended legislation to repeal the separate statutory deadline for postmarked documents, and instead to rely entirely on the date that a campaign finance document was actually received. He said that this recommendation embodied the theory that access by the public and the media to campaign finance information should not depend upon a postmark, but be based on when a document is actually available for inspection. Mr. King noted, however, that this recommendation has not yet been enacted into law. He concluded by stating that the campaign finance report computerization project conducted by the Election Division over the last several months has very tight deadlines for entering campaign finance report data, and that practical problems can result when campaign finance reports are delayed in the mail.

Mr. Harmless stated that consistency was important, and it appeared from the testimony and documents submitted today that some individuals believe that they are complying with the Campaign Finance Act by depositing documents into the mail on time.

The chair stated that he would be inclined to continue this matter until the next meeting to give the candidate an opportunity to submit proof that the report had been sent by certified mail before the filing deadline.

Mr. Cruea moved, seconded by Mr. Long, that this cause be continued until the next Commission meeting, and that staff be directed to send a letter to Ms. Henderson requesting her to produce proof of the certified mailing at the next Commission meeting. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

55. Cause 98-4068-72 (Concerned Citizens to Elect Sue O'Brien)
The chair recognized Ms. Craycraft, who stated that this committee had not yet filed its January 1998 annual report with the Election Division, as of this date. She said that the committee's proposed fine was $1,005.54, being a $1,000 civil penalty plus $5.54 in certified mail costs. Ms. Craycraft stated that the mail sent to the post office box address for this committee had been returned to the Election Division. Ms. Thompson added that she then mailed notice of this hearing to the candidate's home address.

At the request of the chair, Mr. King administered the oath to Ms. Sue O'Brien. Ms. O'Brien said there had been an error on the part of her treasurer and herself, in that she believed that her committee had been closed as part of her last previous filing. She stated that she was totally unaware that this was not the case until she received the notice of this hearing.

Ms. O'Brien testified that she then had contacted the Election Division to obtain a filed copy of the report, and had spoken with Ms. Christie concerning this matter. She stated that Ms. Christie informed her that the committee must have zero balances and check the appropriate box on the form to properly disband the committee. Ms. O'Brien said that she did not realize that she would have to write a letter to her committee to forgive a debt incurred by the committee when she lent money to her own committee. She added that this committee had not engaged in any political activity after 1995, and that she did not understand that the committee was still considered legally open.

In response to a question from the chair, Ms. O'Brien said that she was not a candidate for election this year, and that following the Commission hearing, she would file her January 1998 report and close this committee. The chair noted that the January 1997 report for this committee showed a balance of thirty cents and a debt of $1700 owed by the committee to the candidate.

In response to a question from Mr. Long, Ms. Craycraft stated that Ms. O'Brien could write a letter forgiving this debt today, she will also need to obtain her treasurer's signature to file her January 1998 report and close this committee. She added that her treasurer was available to sign the report. The chair noted that Ms. O'Brien would be required to file two reports: one covering January 1, 1997 through December 31, 1997, and one covering January 1, 1998 through the date she closes the committee.

The chair recognized Mr. Harmless, who stated that this cause seemed to have facts similar to that of Cause #59 (Committee to Elect Brad Bayliff) with regard to the committee not engaging in any political activity, and confusion resulting from an outstanding debt to the candidate. Mr. Harmless suggested that a similar civil penalty be imposed in this case.

Mr. Long said he was inclined to move to continue this cause until the next Commission meeting so that Ms. O'Brien would have a chance to file the required reports and close out her committee. He added that if Ms. O'Brien did so by then, he intended to move at the next Commission meeting that her civil penalty be reduced to $100, plus certified mail costs. The chair advised Ms. O'Brien that she would receive a notice that her cause will be heard again at the next Commission meeting, but that she is not required to attend if she was inclined to agree with the proposed penalty suggested by Mr. Long. Mr. Long added that he would make this motion if he was alive and in attendance, whether or not Ms. O'Brien attended the next Commission meeting.

56. Cause 98-3608-30 (Indiana Pharmacists Action Committee)
The chair recognized Ms. Thompson, who stated that this committee had filed its January 1998 annual report with the Election Division on January 27, 1998, and that the committee had received notice of this hearing on March 20, 1998. She said that the committee's proposed fine was $302.77, being a $300 civil penalty plus $2.77 in certified mail costs. Ms. Thompson added that she wished to introduce a letter dated March 24, 1998 from Mr. Lawrence J. Sage, the treasurer of this committee. The Commission consented to the introduction of this letter, which is incorporated by reference in these minutes.

The chair asked if any one wished to testify on behalf of this committee. There was no response. Mr. Cruea moved, seconded by Mr. Long, that the hearing in this cause be closed. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

Mr. Long moved, seconded by Mr. Cruea, that this committee be subject to a civil penalty of $300.00, plus $2.77 in investigative costs documented by the Election Division, for a total of $302.77. There being no further discussion, the chair called the question,
and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

57. Cause 98-3731-31 (Indiana Cemetery PAC)
The chair recognized Ms. Thompson, who stated that this committee had filed its January 1998 annual report with the Election Division on February 5, 1998, and that the committee had received notice of this hearing on March 20, 1998. She said that the committee's proposed fine was $752.77, being a $750 civil penalty plus $2.77 in certified mail costs. Ms. Thompson added that no documents had been submitted by this committee.

The chair asked if any one wished to testify on behalf of this committee. There was no response. Mr. Long moved, seconded by Mr. Cruea, that the hearing in this cause be closed. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

Mr. Cruea moved, seconded by Mr. Long, that this committee be subject to a civil penalty of $750.00, plus $2.77 in investigative costs documented by the Election Division, for a total of $752.77. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

58. Cause 98-3790-33 (Candy Morris for State Representative 94)
The chair recognized Ms. Thompson, who stated that this committee had filed its January 1998 annual report with the Election Division at 3:23 p.m. on January 21, 1998. She said that the committee's proposed fine was $52.77, being a $50 civil penalty plus $2.77 in certified mail costs. She added that the Election Division had already received a check for $50 in partial payment of the proposed fine. Ms. Thompson said that she wished to introduce a letter dated March 23, 1998 from the Honorable Candy Marendt (formerly Candy Morris). The Commission consented to the introduction of this letter, which is incorporated by reference in these minutes.

Mr. Long asked whether the Election Division would be required to spend time and money to send a letter to collect the remaining $2.77. Ms. Christie responded that Representative Marendt had given her report to a secretary person to bring over to the Election Division for filing on the final day, but that the secretary did not bring the report to the Election Division until after noon. She added that the secretary felt very badly, and brought over her own personal check for $50 that afternoon in the hope that Representative Marendt's committee would not be called before the Commission. Ms. Christie stated that the Election Division staff explained to the secretary that the Division could not simply cash the secretary's check in lieu of a Commission hearing. She added that Representative Marendt then wrote the letter which was entered into the record of this cause in which she assumed ultimate responsibility for the delinquency of this report. Ms. Christie noted that the statute requires the Election Division to mail notice of the penalty to the committee, so that the Division will incur some cost regardless of any further reduction of the civil penalty.

Mr. Long moved, seconded by Mr. Cruea, that this committee be subject to a civil penalty of $50.00, plus $2.77 in investigative costs documented by the Election Division, for a total of $52.77. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

59. Cause 98-3793-34 (Committee to Elect Scott Ginkins)
The chair recognized Ms. Thompson, who stated that this committee had filed its January 1998 annual report with the Election Division on January 27, 1998, and had received notice of this meeting on March 21, 1998. She said that the committee's proposed fine was $302.77, being a $300 civil penalty plus $2.77 in certified mail costs. Ms. Thompson said that she wished to introduce a letter dated March 23, 1998 from Mr. Scott Ginkins. The Commission consented to the introduction of this letter, which is incorporated by reference in these minutes.

The chair stated that there were several circumstances set forth in the letter concerning the illness of the committee's treasurer that led him to believe that imposing the proposed civil penalty would be unjust and a hardship. He noted, however, that this was the second time that this committee had filed a delinquent report. In response to a question from Mr. Long, the chair stated that the committee had previously been fined a small amount by the Commission for a late report.

Mr. Cruea moved, seconded by Mr. Long, that this committee be subject to a civil penalty of $150.00, plus $2.77 in investigative costs documented by the Election Division, for a total of $152.77. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

60. Cause 98-3797-35 (David Ford for State Senator)
The chair asked if any person present wished to testify before the Commission concerning this cause. There was no response. The chair noted that according to Campaign Finance staff, there was no proof that the committee had received notice of this meeting, and no written submission had been received from the committee.

61. Cause 98-3806-36 (Rosswurm for State Senate)
The chair recognized Ms. Thompson, who stated that this committee had filed its January 1998 annual report with the Election Division on January 22, 1998. She said that the committee's proposed fine was $52.77, being a $50 civil penalty plus $2.77 in certified mail costs. Ms. Thompson said that she wished to introduce a letter dated March 24, 1998 from Mr. Bruce E. Rosswurm. The Commission consented to the introduction of this letter, which is incorporated by reference in these minutes.

The chair noted that the committee's file indicated that the committee was disbanded on January 20, 1998, with no assets remaining. He noted that previous reports filed by the committee indicated zero balances for 1996, and a $12,000 debt owed by the committee to the candidate.

The chair asked if any one wished to testify on behalf of this committee. There was no response. Mr. Cruea moved, seconded by Mr. Harmless, that the hearing in this cause be closed. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

Mr. Long moved, seconded by Mr. Cruea, that this committee be subject to a civil penalty of $10.00, plus $2.77 in investigative costs documented by the Election Division, for a total of $12.77. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

62. Cause 98-3815-37 (Donna K. Gentry for State Representative)
The chair recognized Ms. Thompson, who stated that this committee had filed its January 1998 annual report with the Election Division on January 27, 1998. She said that the committee's proposed fine was $302.77, being a $300 civil penalty plus $2.77 in certified mail costs. Ms. Thompson said that she wished to introduce an undated letter received by the Election Division from Ms. Donna Gentry. The Commission consented to the introduction of this letter, which is incorporated by reference in these minutes.

In response to a question from the chair, Ms. Thompson stated that this committee was still active. The chair noted that the letter indicated that this committee's report had been mailed in a timely manner, and addressed to "Indiana Election Commission", but was returned to the candidate since the Commission's address was indicated as "303" rather than "302 West Washington Street." Mr. Harmless stated that he was seeing mail returned to the sender that had the recipient's correct address on the envelope. Mr. Harmless noted that the report had been mailed on January 14, 1998, which was seven days before the January 21, 1998 due date, and that the penalty should be waived in this instance. Mr. Long stated that he also believed there were mitigating circumstances in this case.

Mr. Harmless moved, seconded by Mr. Long, that the Commission waive the proposed penalty and dismiss this cause since the committee did attempt file a timely report with the Election Division, and was prevented from doing so due to the actions of the Postal Service in returning the mailing due to a minor defect in the Commission's address. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

63. Cause 98-3974-41 (Citizens for David Coperhaver)
The chair recognized Ms. Thompson, who stated that this committee had filed its January 1998 annual report with the Election Division on February 18, 1998. She said that the committee's proposed fine was $1,002.77, being a $1,000 civil penalty plus $2.77 in certified mail costs. Ms. Thompson said that she wished to introduce a letter from former State Representative David L. Coperhaver dated March 23, 1998. The Commission consented to the introduction of this letter, which is incorporated by reference in these minutes.

Mr. Long noted that the letter indicated that this committee would be disbanded following the May 1998 primary, after the candidate transferred the existing committee's funds to the candidate nominated for election to Mr. Coperhaver's former seat. The chair noted that this individual was not a first time candidate, and stated that the facts in this case appeared to be consistent with causes in which the Commission had imposed a civil penalty at the rate of one third of the proposed penalty.

Mr. Cruea moved, seconded by Mr. Long, that this committee be subject to a civil penalty of $333.00, plus $2.77 in investigative costs documented by the Election Division, for a total of $335.77. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

64. Cause 98-4008-42 (Friends of Sue Errington)
The chair asked if any person present wished to testify before the Commission concerning this cause. There was no response. The chair noted that according to Campaign Finance staff, there was no proof that the committee had received notice of this meeting, and no written submission had been received from the committee.

65. Cause 98-4059-43 (Clapper for State Representative)
The chair recognized Ms. Thompson, who stated that this committee had filed its January 1998 annual report with the Election Division on January 22, 1998, and received notice of this hearing on March 21, 1998. She said that the committee's proposed fine was $52.77, being a $50 civil penalty plus $2.77 in certified mail costs. Ms. Thompson added that no written response had been received from the committee, but that the candidate had submitted a check in the amount of $50.00 to the Election Division on March 23, 1998 in partial payment of the proposed civil penalty.

In response to a question from Mr. Long, Mr. King indicated that the Election Division would be required to send a notice to this committee in any event to notify the committee of the results of this hearing. Ms. Christie added that if the committee were to submit $2.77 as a result of this notice, the funds would be processed in the same manner as the $50 check already received. In response to a question from Mr. Long, Ms. Christie stated that she did not believe that the Attorney General's office would act to collect an outstanding balance of $2.77 on a civil penalty imposed by the Commission in this case.

66. Cause 98-4062-44 (Rod Sniadecki for State Senate)
The chair recognized Ms. Thompson, who stated that this committee had filed its January 1998 annual report with the Election Division on January 22, 1998, and received notice of this hearing on March 21, 1998. She said that the committee's proposed fine was $52.77, being a $50 civil penalty plus $2.77 in certified mail costs. Ms. Thompson added that no written response had been received from the committee.

Mr. Cruea moved, seconded by Mr. Harmless, that this committee be subject to a civil penalty of $50.00, plus $2.77 in investigative costs documented by the Election Division, for a total of $52.77. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

67. Cause 98-4080-45 (Johnson for State Representative)
The chair recognized Ms. Thompson, who stated that this committee had filed its January 1998 annual report with the Election Division on January 29, 1998. She said that the committee's proposed fine was $402.77, being a $400 civil penalty plus $2.77 in certified mail costs. Ms. Thompson added that the committee had closed on January 29, 1998, and that the candidate had already submitted a check for $400 to pay the proposed fine.

The chair asked if any one wished to testify on behalf of this committee. There was no response. Mr. Cruea moved, seconded by Ms. McClellan, that the hearing in this cause be closed. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

Mr. Cruea moved, seconded by Mr. Long, that this committee be subject to a civil penalty of $400.00, plus $2.77 in investigative costs documented by the Election Division, for a total of $402.77. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

68. Cause 98-4093-46 (The Carey Election Committee)
The chair recognized Ms. Thompson, who stated that this committee had filed its January 1998 annual report with the Election Division on January 22, 1998, and received notice of this hearing on March 21, 1998. She said that the committee's proposed fine was $52.77, being a $50 civil penalty plus $2.77 in certified mail costs. Ms. Thompson added that no written response had been received from the committee.

Mr. Cruea moved, seconded by Mr. Long, that this committee be subject to a civil penalty of $50.00, plus $2.77 in investigative costs documented by the Election Division, for a total of $52.77. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

69. Cause 98-4139-48 (England for Excellence in Education)
The chair recognized Ms. Thompson, who stated that this committee had filed its January 1998 annual report with the Election Division on January 28, 1998, and received notice of this hearing on March 21, 1998. She said that the committee's proposed fine was $352.77, being a $350 civil penalty plus $2.77 in certified mail costs. Ms. Thompson added that no written response had been received from the committee.

Mr. Cruea moved, seconded by Mr. Long, that this committee be subject to a civil penalty of $350.00, plus $2.77 in investigative costs documented by the Election Division, for a total of $352.77. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

70. Cause 98-4160-49 (Citizens for Satterthwaite)
The chair asked if any person present wished to testify before the Commission concerning this cause. There was no response. The chair noted that according to Campaign Finance staff, there was no proof that the committee had received notice of this meeting. Ms. Thompson stated she wished to introduce a letter from Mr. Tony Satterthwaite dated February 23, 1998. The Commission consented to the introduction of this letter, which is incorporated by reference in these minutes.

In response to a question from the chair, Ms. Thompson stated that this committee had not yet been closed, although the letter indicated that Mr. Satterthwaite intended to do so.

Mr. Cruea moved that this committee be subject to a civil penalty of $350.00, plus $2.77 in investigative costs documented by the Election Division, for a total of $352.77. Mr. Long stated that this case appeared to be similar to that of the Sue O'Brien Committee heard earlier today by the Commission. In response to a question from Mr. Long, Ms. Thompson stated that the Election Division had not sent the form requested by Mr. Satterthwaite in his letter to close this committee. Mr. Cruea noted that the reports of this committee showed a zero balance for the last several years, and that he would be inclined to support the reduction of the proposed penalty to $100 if the committee is closed. Mr. Cruea thereupon withdrew his motion.

71. Cause 98-4162-50 (Baker 96)
The chair recognized Ms. Thompson, who stated that this committee had filed its January 1998 annual report with the Election Division on January 30, 1998, and received notice of this hearing on March 20, 1998. She said that the committee's proposed fine was $452.77, being a $450 civil penalty plus $2.77 in certified mail costs. Ms. Thompson added that no written response had been received from the committee.

Mr. Cruea moved, seconded by Mr. Long, that this committee be subject to a civil penalty of $450.00, plus $2.77 in investigative costs documented by the Election Division, for a total of $452.77. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

72. Cause 98-4229-52 (Political Action Committee to Keep Agriculture Engaged)
The chair recognized Ms. Thompson, who stated that this committee had filed its January 1998 annual report with the Election Division on January 22, 1998, and received notice of this hearing on March 23, 1998. She said that the committee's proposed fine was $52.77, being a $50 civil penalty plus $2.77 in certified mail costs. Ms.

Thompson stated she wished to introduce a letter from Mr. Jeffrey Quyle, treasurer of this committee, dated March 24, 1998. The Commission consented to the introduction of this letter, which is incorporated by reference in these minutes.

73. Cause 98-4231-53 (Indiana Family and Freedom Committee)
The chair recognized Ms. Thompson, who stated that this committee had filed its January 1998 annual report with the Election Division at 1:25 p.m. on January 21, 1998, and received notice of this hearing on March 21, 1998. She said that the committee's proposed fine was $52.77, being a $50 civil penalty plus $2.77 in certified mail costs. Ms. Thompson stated that no written communication had been received from this committee.

74. Cause 98-4243-55 (Jeb Bardon for Indiana)
The chair asked if any person present wished to testify before the Commission concerning this cause. There was no response. The chair noted that according to Campaign Finance staff, there was no proof that the committee had received notice of this meeting, and no written submission had been received from the committee.

Mr. Harmless moved, seconded by Mr. Long, that this cause be continued until the next Commission meeting. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

75. Cause 98-1547-58 (Ironworkers Local 103 Political Action Committee)
The chair recognized Ms. Thompson, who stated that this committee had filed its January 1998 annual report with the Election Division on March 2, 1998. She said that the committee's proposed fine was $1,005.54, being a $1,000 civil penalty plus $5.54 in certified mail costs. Ms. Thompson stated she wished to introduce a letter from Mr. William P. Garrett of this committee, dated March 24, 1998. The Commission consented to the introduction of this letter, which is incorporated by reference in these minutes.

In response to a question from the chair, Ms. Thompson confirmed that this committee was also delinquent for two previous reports that were due on January 17, 1996 and April 26, 1996. In response to a question from Mr. Long, Ms. Thompson stated that the Election Division campaign finance staff sends out campaign finance forms to all committees which are required to file, and that these forms are sent by regular mail before the filing deadline. In response to a question from Mr. Harmless, the previous maximum fine imposed by the Commission was $100.

Mr. Cruea moved, seconded by Ms. McClellan, that this committee be subject to a civil penalty of $1,000.00, plus $5.54 in investigative costs documented by the Election Division, for a total of $1,005.54. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

76. Cause 98-3696-62 (Medlance PAC)
The chair recognized Ms. Craycraft, who stated that this committee had not yet filed its January 1998 annual report with the Election Division. She said that the committee's proposed fine was $1,005.54, being a $1,000 civil penalty plus $5.54 in certified mail costs. Ms. Craycraft stated she wished to introduce a letter from Mr. David T. Reed, Assistant General Counsel of the P.I.E. Mutual Insurance Company, dated March 5, 1998. The Commission consented to the introduction of this letter, which is incorporated by reference in these minutes.

The chair asked if any person present wished to testify before the Commission concerning this cause. There was no response. The chair recognized Ms. Craycraft, who stated that she had been advised that this committee is based in Illinois, and could not attend the Commission meeting today. She said that she had been advised by a representative of P.I.E. Insurance that the company was having some difficulties with the insurance company oversight agency in Illinois, and that at this point the company does not have custody of its records or control over their funds so that permit this committee to complete the campaign finance report. Ms. Craycraft added that she understood that the insurance company, not the political action committee, is having a problem with the state regulatory agency. Commission members examined the documentation submitted by Mr. Reed.

The chair noted that this committee had $17,000 in expenditures during 1996 to candidates in Ohio and Pennsylvania. Mr. Long stated that the documents indicated that the company had been placed in "rehabilitatorship", which seemed to be some sort of receivership. The chair noted that another report showed that the committee had made contributions exclusively to Ohio, Kentucky, and West Virginia candidates. In response to a question from the chair, Ms. Craycraft said she had no information indicating that the committee had not been late before. In response to a question from Mr. Long, Ms. Craycraft stated that she did not understand whether the ongoing investigation or receivership of P.I.E. insurance would necessarily prevent the treasurer of this committee from filing the campaign finance report.

Mr. Long requested that Election Division staff contact this committee before the next Commission meeting to obtained a more detailed explanation as to why the P.I.E. receivership would prevent this committee from filing a report. He added that it would not be out of line to contact the receiver directly regarding this matter. The chair concurred with Mr. Long, and asked staff to send a letter to this committee immediately requesting additional information regarding this matter.

The chair announced that the Commission's meeting would recess until 3:00 p.m., at which time the Commission would reconvene in Training Center Room #2, Indiana Government Center South. The chair then recessed the Commission meeting at 2:56 p.m.

* * *

At 3:02 p.m., the chair reconvened the Commission's meeting in Training Center Room #2, and noted that the same Commission members were present.

77. Cause 98-3752-64 (Committee to Elect John Conti)
The chair recognized Ms. Craycraft, who stated that this committee had not yet filed its January 1998 annual report with the Election Division. She said that the committee's proposed fine was $1,005.54, being a $1,000 civil penalty plus $5.54 in certified mail costs. Ms. Craycraft stated she wished to introduce a letter from Mr. John Conti, dated March 12, 1998. The Commission consented to the introduction of this letter, which is incorporated by reference in these minutes.

The chair noted that Mr. Conti was now residing in Kennesaw, Georgia, and also served as treasurer of this committee until January 14, 1997. He added that this committee was an exploratory committee, and that the office sought by Mr. Conti was not indicated. Mr. Long noted that Mr. Conti had been a candidate at one time for Indiana State Senate, District 29.

In response to a question from Mr. Long, Ms. Thompson stated that she had spoken on several occasions with Mr. Conti, and believed that he had never appeared on the ballot as a candidate although he had considered running for state level office. She said that when she spoke with Mr. Conti about one year ago, he was in the process of moving to Georgia and was uncertain about disbanding his committee and disbursing his funds. She added that she advised him to leave this committee open since he intended to explore his options in Georgia, and to close his committee in Indiana after he made a decision about his future residence.

In response to a question from Mr. Long, Ms. Thompson stated that this committee did file a report in January 1997. She added that Mr. Conti moved to Georgia after that date and has not closed this committee as of today. She stated that the Election Division has changed its records after receiving Mr. Conti's January 1998 annual report so that future correspondence concerning this committee will be sent to Mr. Conti at his address in Georgia. Mr. Harmless noted that the letter introduced in this cause had been sent by fax from American Transair at a Georgia telephone area code.

Mr. Cruea moved, seconded by Mr. Long, that this committee be subject to a civil penalty of $333, plus $5.54 in investigative costs documented by the Election Division, for a total of $338.54. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

78. Cause 98-3893-66 (Williams for State Representative)
The chair recognized Ms. Craycraft, who stated that this committee had not yet filed its January 1998 annual report with the Election Division, and that mail sent to this committee had been returned. She said that the committee's proposed fine was $1,005.54, being a $1,000 civil penalty plus $5.54 in certified mail costs. She noted that no other documentation had been submitted by this committee.

Mr. Cruea moved to continue this cause until the next meeting, but subsequently withdrew his motion.

Ms. Craycraft stated that the Election Division had attempted to find a current mailing address for this candidate, but could not do so even after checking voter registration records. The chair noted that the Election Division had mailed correspondence and reports to this candidate in January 1997, February 1997, and March 1997, which had also been returned. He added that the previously filed reports indicated that the committee had zero balances.

In response to a question from Mr. Long and the chair, Mr. King stated that under current law there was no authority for the Election Commission to administratively disband a committee. He added that each committee is required by state law to file an amendment to the committee's statement of organization within ten days after any change occurs in this information, such as a change of address. He said it appeared in this case that the committee's chairman and treasurer have not followed through with their statutory duty to do so. Mr. Long noted that Mr. Williams serves as both chairman and treasurer of this committee, and said that the Commission could then enter a fine on this cause.

The chair noted that the last report filed by this committee was in January 12, 1995. He added that this report showed zero balances, with $38.50 in debts owed by the committee, and $37 in debts owed to the committee. Mr. Long stated that the Election Division had given satisfactory notice, and that the Election Commission should act on this cause today. He added that the candidate could contest this point later if he chose to do so.

Mr. Long stated that the Commission needed to recommend to the General Assembly at some point that the Commission receive the authority to administratively dissolve committees (in the same manner that corporations may be administratively dissolved), or to transfer them to some kind of inactive status where Commission monitoring would not be necessary.

Mr. Long moved, seconded by Mr. Cruea, that this committee be subject to a civil penalty of $1,000, plus $5.54 in investigative costs documented by the Election Division, for a total of $1,005.54. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

79. Cause 98-4001-68 (Barnard for State Representative)
The chair recognized Ms. Craycraft, who stated that this committee had not yet filed its January 1998 annual report with the Election Division, and that this committee had received notice of this hearing on March 21, 1998. She said that the committee's proposed fine was $1,005.54, being a $1,000 civil penalty plus $5.54 in certified mail costs.

The chair asked if any one wished to testify on behalf of this committee. There was no response. Mr. Long moved that the hearing in this cause be closed. However, Mr. Long noted that many previous mailings to this committee had been returned, and asked if the Election Division had attempted to contact the treasurer, Ms. Rebecca Stutzman. Ms. Thompson stated that the Election Division had attempted to contact the candidate, but had not sent a notice to Ms. Stutzman. Mr. Long thereupon withdrew his motion.

80. Cause 98-4018-69 (Maintaining Our Neighborhoods)
The chair recognized Ms. Craycraft, who stated that this committee had not yet filed its January 1998 annual report with the Election Division, and that there was no evidence that this committee had received notice of this hearing. She said that the committee's proposed fine was $1,005.54, being a $1,000 civil penalty plus $5.54 in certified mail costs.

The chair noted that many previous mailings to Mr. Willard Ford, the treasurer of this committee, had been returned, and asked if the Election Division had attempted to contact the chairman, Ms. Pamela Richardson. Ms. Thompson stated that the Election Division had not sent a notice to Ms. Richardson.

81. Cause 98-4035-71 (Pieratt for Indiana Committee)
The chair recognized Ms. Craycraft, who stated that this committee had not yet filed its January 1998 annual report with the Election Division, and that there was no evidence that this committee had received notice of this hearing. She said that the committee's proposed fine was $1,005.54, being a $1,000 civil penalty plus $5.54 in certified mail costs.

82. Cause 98-4075-73 (Ethics in Government)
The chair recognized Ms. Craycraft, who stated that this committee had not yet filed its January 1998 annual report with the Election Division, and that there was no evidence that this committee had received notice of this hearing since all mail sent to this committee had been returned. She said that the committee's proposed fine was $1,005.54, being a $1,000 civil penalty plus $5.54 in certified mail costs.

The chair noted that the chairman and treasurer of this committee appeared to be either related or marries, since they had the same surname.

Mr. Cruea moved, seconded by Mr. Long, that this committee be subject to a civil penalty of $1,000, plus $5.54 in investigative costs documented by the Election Division, for a total of $1,005.54. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

83. Cause 98-4105-74 (Citizens for Chochos)
The chair recognized Ms. Craycraft, who stated that this committee had filed its January 1998 annual report with the Election Division on March 16, 1998, but there was no evidence that this committee had received notice of this hearing. She said that the committee's proposed fine was $1,005.54, being a $1,000 civil penalty plus $5.54 in certified mail costs. She added that the committee was closed on March 16, 1998. In response to a question from the chair, Ms. Thompson stated that this committee had submitted its final report before receiving notice of this Commission meeting.

84. Cause 98-4106-75 (Ortiz for State Representative)
The chair recognized Ms. Craycraft, who stated that this committee had filed its January 1998 annual report with the Election Division on March 16, 1998, and that this committee had received notice of this hearing on March 23, 1998. She said that the committee's proposed fine was $1,005.54, being a $1,000 civil penalty plus $5.54 in certified mail costs. The chair noted that this committee disbanded on March 16, 1998.

The chair noted that this committee had been fined before for a delinquent annual report for 1996, but that the Attorney General could not locate the members of the committee. Mr. Long stated that he believed that $500 was the threshold for the Attorney General to pursue cases of this kind. He added that a $500 fine in this cause, plus the previous $100 fine might make it cost effective for the Attorney General's office to collect both civil penalties.

Mr. Long moved, seconded by Mr. Harmless, that this committee be subject to a civil penalty of $500, plus $5.54 in investigative costs documented by the Election Division, for a total of $505.54. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

85. Cause 98-4123-76 (Daniels for State Senate)
The chair recognized Ms. Craycraft, who stated that this committee had filed its January 1998 annual report with the Election Division on March 24, 1998. She said that the committee's proposed fine was $1,005.54, being a $1,000 civil penalty plus $5.54 in certified mail costs. The chair noted that this committee disbanded on March 24, 1998. Ms. Craycraft stated she wished to introduce an undated letter from Mr. Michael Daniels, received on March 24, 1998. The Commission consented to the introduction of this letter, which is incorporated by reference in these minutes.

The chair noted that this committee had previously been fined $105.54 for its delinquent 1996 annual report, but that the Attorney General's office had determined that it was not cost effective to undertake collection efforts for the $105 fine.

Mr. Cruea moved, seconded by Mr. Harmless, that the hearing in this cause be closed. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

Mr. Cruea moved, seconded by Mr. Long, that this committee be subject to a civil penalty of $500, plus $5.54 in investigative costs documented by the Election Division, for a total of $505.54. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

86. Cause 98-4224-81 (Citizens Coalition for Responsible Government)
The chair recognized Ms. Craycraft, who stated that this committee had filed its January 1998 annual report with the Election Division on March 6, 1998, and had received notice of this hearing on March 23, 1998. She said that the committee's proposed fine was $1,005.54, being a $1,000 civil penalty plus $5.54 in certified mail costs. Ms. Craycraft stated she wished to introduce a letter dated March 24, 1998 from Ms. Mary Dufour, treasurer of this committee. The Commission consented to the introduction of this letter, which is incorporated by reference in these minutes.

The chair noted that the committee had been organized on January 24, 1997. Mr. Long noted that the letter referred to the "cordial and copious help" provided to the committee by Ms. Robertson, Ms. Craycraft, Ms. Christie, and other staff members.

Mr. Long and Mr. Harmless noted that the committee's report indicated that the committee had made several expenditures during 1997. In response to a question from Mr. Long, the chair noted that the January 1998 was the first report this committee was required to file. Mr. Long noted that the inexperience of this committee made a reduction of the proposed penalty just in these circumstances.

Mr. Long moved, seconded by Mr. Harmless, that this committee be subject to a civil penalty of $250, plus $5.54 in investigative costs documented by the Election Division, for a total of $255.54. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

87. Cause 98-4265-82 (Evans for House District 94)
The chair recognized Ms. Craycraft, who stated that this committee had not yet filed its January 1998 annual report with the Election Division, and had received notice of this hearing on March 21, 1998. She said that the committee's proposed fine was $1,005.54, being a $1,000 civil penalty plus $5.54 in certified mail costs. Ms. Thompson stated that no subsequent documentation had been received from this committee.

The chair noted that the committee had been organized on November 7, 1997, and noted that the Commission had reduced the proposed fine for two previous committees with similar histories.

Mr. Cruea, seconded by Mr. Long, that this committee be subject to a civil penalty of $250, plus $5.54 in investigative costs documented by the Election Division, for a total of $255.54. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

88. Cause 98-1782-84 (Indiana 8th District Democrat Committee)
The chair recognized Ms. Craycraft, who stated that this committee filed its March 1998 annual report with the Election Division on March 25, 1998, and had received notice of this hearing on March 20, 1998. She said that the committee's proposed fine was $1,002.77, being a $1,000 civil penalty plus $2.77 in certified mail costs.

The chair recognized Mr. Long, who requested that the record reflect his abstention from any participation in this cause due to his service as chair of this committee. He expressed his embarrassment that the report was not filed, and indicating his willingness to leave the room while the Commission considered this cause. Mr. Long urged the Commission to act in the manner that they believed appropriate in this case.

The chair noted that Mr. Nicholson had served as treasurer of this committee in previous years, and that this committee had previously filed delinquent reports in 1994, 1995, and 1996.

Mr. Cruea moved, seconded by Mr. Harmless, that the hearing in this cause be closed. There being no further discussion, the chair called the question, and declared that with three members (Mr. Cruea, Mr. Harmless, and Ms. McClellan) voting "aye", no member voting "nay", and one member (Mr. Long) abstaining, the motion was adopted.

Mr. Cruea moved, seconded by Mr. Harmless, that this committee be subject to a civil penalty of $1,000, plus $2.77 in investigative costs documented by the Election Division, for a total of $1,002.77. There being no further discussion, the chair called the question, and declared that with three members (Mr. Cruea, Mr. Harmless, and Ms. McClellan) voting "aye", no member voting "nay", and one member (Mr. Long) abstaining, the motion was adopted.

89. Cause 98-3257-85 (Seventh District Democrat Committee)
The chair recognized Ms. Craycraft, who stated that this committee had not yet filed its March 1998 annual report with the Election Division, and had received notice of this hearing on March 20, 1998. She said that the committee's proposed fine was $1,002.77, being a $1,000 civil penalty plus $2.77 in certified mail costs. Ms. Craycraft stated she wished to introduce a letter dated March 23, 1998 from Mr. Laverl Nicholson, treasurer of this committee. The Commission consented to the introduction of this letter, which is incorporated by reference in these minutes.

The chair noted that the committee had corrected errors in several reports before, but that the committee had not previously been fined. Mr. Harmless noted that Mr. Nicholson had served as treasurer of this committee for many years.

90. Cause 98-4355-98 (Peter Katic/ State Representative 001)
The chair recognized Ms. Craycraft, who stated that this committee had filed its statement of organization with the Election Division on March 23, 1998, and received notice of this hearing on March 23, 1998. She said that the committee's proposed fine was $1,005.54, being a $1,000 civil penalty plus $5.54 in certified mail costs.

Ms. Craycraft stated that she wished to introduce a letter dated March 23, 1998 from Mr. Peter Katic, chairman of this committee. The Commission consented to the introduction of this letter, which is incorporated by reference in these minutes. Mr. Long noted that the letter included a request for a continuance of this cause.

91. Cause 98-4344-89 (Billy J. Brogdon Committee)
The chair recognized Ms. Craycraft, who stated that this committee had filed its statement of organization with the Election Division on March 2, 1998, and received notice of this hearing on March 20, 1998. She said that the committee's proposed fine was $202.77, being a $200 civil penalty plus $2.27 in certified mail costs.

Ms. Craycraft stated that no additional documentation had been received from this committee.

92. Cause 98-4344-93 (Patricia Jackson Ceperich/ State Representative 001)
The chair recognized Ms. Craycraft, who stated that this committee had filed its statement of organization with the Election Division on March 23, 1998, and received notice of this hearing on March 23, 1998. She said that the committee's proposed fine was $1,002.77, being a $1,000 civil penalty plus $2.77 in certified mail costs.

Ms. Craycraft stated that she wished to introduce a letter dated March 23, 1998 from Ms. Patricia Jackson Ceperich, chairman of this committee. The Commission consented to the introduction of this letter, which is incorporated by reference in these minutes.

93. Cause 98-4353-96 (Michael Goering/ State Senator 45)
The chair recognized Ms. Craycraft, who stated that this committee had filed its statement of organization with the Election Division on March 20, 1998. She said that the committee's proposed fine was $1,002.77, being a $1,000 civil penalty plus $2.77 in certified mail costs. Ms. Craycraft stated that she wished to introduce a letter dated March 21, 1998 from Mr. Michael Goering, chairman of this committee. The Commission consented to the introduction of this letter, which is incorporated by reference in these minutes.

94. Cause 98-4354-97 (Joseph M. Hilger/ State Senator 17)
The chair recognized Ms. Craycraft, who stated that this committee had not yet filed its statement of organization with the Election Division. She said that the committee's proposed fine was $1,002.77, being a $1,000 civil penalty plus $2.27 in certified mail costs. Ms. Craycraft stated that she wished to introduce a letter dated March 20, 1998 from Mr. Joseph M. Hilger, chairman of this committee. The Commission consented to the introduction of this letter, which is incorporated by reference in these minutes.

95. Cause 98-4357-100 (Ronald Ray Wilson/ State Representative 93)
The chair recognized Ms. Craycraft, who stated that this committee had not yet filed its statement of organization with the Election Division, and there was no evidence that the committee had received notice of this hearing. She said that the committee's proposed fine was $1,002.77, being a $1,000 civil penalty plus $2.77 in certified mail costs.

D. ADVISORY OPINION 1998-01:
The chair recognized Mr. King, who stated that Commission members had received two documents in their packets: (1) a summary entitled "Legislation Enacted in the 1998 Regular Session of the Indiana General Assembly"; and (2) a draft of Advisory Opinion 1998-01, which concerns the filing requirements for the large campaign finance contribution reports under Indiana Code 3-9-5-20. These documents are incorporated by reference in these minutes.

Mr. King noted that most legislation concerning elections did not pass in the 1998 legislative session, and that Advisory Opinion 1998-01 addressed one ambiguity in campaign finance not resolved by the General Assembly. He stated that in 1997, the General Assembly passed legislation requiring a new type of report from candidate's committees, to be filed shortly before both the primary election and general election, indicating whether the candidate's committee had received "large contributions" of $1,000 or more after the close of the pre-primary or pre-general election reporting period and until shortly before the election.

Mr. King said that the Advisory Opinion had been drafted to resolve a serious ambiguity in the 1997 statute that the Election Division and county election boards are encountering for the first time this year. He indicated that Indiana Code 3-9-5-20 provides that the "large contribution report" (CFA-11) must be filed by all candidates, whether or not the candidate received a large contribution, no later than noon on the Thursday before the primary. He noted that a problem results since the reporting period for large contributions runs for another twelve hours after the filing deadline, meaning the start of Friday. He indicated that legislative candidates were particularly concerned since they were required to file copies of the CFA-11 shortly before election day with both the Election Division and the county election board of the county where they reside. Mr. King stated that during the legislative interim, the Census Data Advisory Committee had recommended by unanimous vote that the statute be amended to specify that the filing deadline for the CFA-11 be set at noon, Friday, before the election. He noted that this legislation was not enacted.

Mr. King stated that Advisory Opinion 1998-01 would provide that the Commission would take the enforcement position that CFA-11 large contribution reports could be filed as late as noon Friday before the election, without being subject to delinquency proceedings. He added that this recommendation would be forwarded to county election boards, since many candidates for local office would be required to file these reports. In response to a question from the chair, Mr. King indicated that political action committees and regular party committees are not required to file CFA-11 reports. In response to a question from Mr. Long, Mr. King indicated that the Commission could accept these reports by facsimile transmission.

Mr. Long moved, seconded by Mr. Cruea, that Advisory Opinion 1998-01 be adopted as presented. There being no further discussion, the chair called the question, and declared that with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay", the motion was adopted.

IThe chair recognized Ms. Christie, who provided Commission members with copies of a memorandum dated March 23, 1998, and entitled "1998 Pre-Primary Report." She noted that this document had been mailed to all candidate's committees, legislative caucus committees, regular party committees, and political action committees, and that another Commission meeting would be necessary soon to deal with enforcement actions concerning the pre-primary reports. A copy of this document is incorporated by reference in these minutes.

7. LITIGATION REPORT:

A. Anderson v. Long
The chair recognized Mr. King, who noted that Commission members had been provided with a copy of the denial of the motion in this case for the disqualification of plaintiff's counsel, and that this ruling had been discussed at the March 10, 1998 Commission meeting. A copy of this document is incorporated by reference in these minutes. B. Brownsburg Area Patrons Affecting Change [BAPAC] v. Baldwin
Mr. King stated that there is no new information concerning this case, which is currently pending before the Indiana Supreme Court.

8. VOTING SYSTEM CERTIFICATION:

A. GOVERNMENTAL BUSINESS SYSTEMS (GBS) ACCU-TAB
The chair recognized Mr. King, who stated that he had met with representative of Information Services Division to review the documentation submitted by GBS concerning this system's compliance with Indiana Code 3-11-15, and that further meetings would be scheduled before the next Commission meeting. He provided Commission members with a copy of the initial ISD evaluation of this voting system. A copy of this document is incorporated by reference in these minutes.

Mr. King noted that GBS had submitted a letter of introduction, dated March 19, 1998, for Mr. Steve M. Corey, the company's new Indiana account representative. A copy of this letter is incorporated by reference in these minutes. B. ELECTION SERVICES AND SYSTEMS (ES&S) PC-BT VOTING SYSTEM
Mr. King stated that there was no additional information to report regarding this system. 9. CO-DIRECTORS' REPORT:

The chair recognized Ms. Tippett, who stated that Election Division staff members had participated in a campaign finance seminar on March 24, 1998, sponsored jointly by Farm Bureau, Indiana Building Trades Council, and the Realtors Association. She indicated that the purpose of the seminar was to educate individuals concerning how to fill out campaign finance forms. She stated that Ms. Craycraft, Ms. Thompson, and Mr. King had done the bulk of the work for this event, and had done a nice job.

In response to a question from Mr. Long, Ms. Christie stated that the Election Division had obtained a list of those individuals who attended, and would be mailing them a list of campaign software vendors.

10. OTHER BUSINESS:

A. CORRECTION TO STATE CONVENTION DELEGATE LIST
The chair recognized Mr. King, who stated that the Commission had received a letter from Ms. McClellan, dated January 22, 1998, which corrected information submitted previously regarding Republican Party state convention delegates in Hamilton County. A copy of this letter is incorporated by reference in these minutes. Mr. King noted that the Election Division will be undertaking a new statutory responsibility this year by generating elected state convention delegate lists as soon as possible after the primary for certification to the state committees.

B. ELECTRONIC DATA INTERCHANGE FOR CAMPAIGN FINANCE REPORTING
Mr. King noted that Commission members had received copies of the final, corrected version of a document entitled "Electronic Data Interchange for Campaign Finance Reporting" that had been approved at the March 10, 1998 Commission meeting. A copy of this document is incorporated by reference in these minutes.

11. ADJOURNMENT:
There being no further business to come before the Commission, Mr. Long moved, seconded by Mr. Cruea, that the Commission do now adjourn. The chair called the question and declared the motion adopted with four members (Mr. Cruea, Mr. Harmless, Mr. Long, and Ms. McClellan) voting "aye", and no member voting "nay." The Commission then adjourned at 4:16 p.m.
________________________  ___________________________
Laurie P. Christie                    Mary Ann Tippett
Co-Director                             Co-Director

APPROVED:

__________________________
Dudley Cruea,
Chairman