OAH 16-0320-21390-CV

 

 

STATE OF MINNESOTA

OFFICE OF ADMINISTRATIVE HEARINGS

 

 

Republican Party of Minnesota,

                              Complainant,

 

vs.

 

Thomas Horner, (Thomas) Horner 2010, and Decision Resources, Ltd.,

                              Respondents.

 

 

 

ORDER DENYING MOTION

FOR RECONSIDERATION

 

 

On June 24, 2010, this matter came on for a probable cause hearing under Minn. Stat. § 211B.34, before Administrative Law Judge Manuel J. Cervantes to consider a Complaint filed by the Republican Party of Minnesota.  The Complaint alleged that the Respondents violated Minn. Stat. §§ 211B.13 and 211B.15 regarding prohibited corporate contributions. 

By Order dated July 1, 2010, Administrative Law Judge Manuel Cervantes dismissed the Complaint for lack of probable cause.  On July 6, 2010, the Complainant submitted a petition for reconsideration of Judge Cervantes’s decision.

Tony P. Trimble and Matthew Haapoja, Attorneys at Law, Trimble & Associates, Ltd, represented the Republican Party of Minnesota.  George Soule, Attorney at Law, Bowman and Brooke, LLP, represented Respondents Thomas Horner and Horner 2010.  Travis Stottler, Attorney at Law, represented Respondent Decision Resources, Ltd (DRL). 

Based on the record herein, and for the reasons stated in the following Memorandum the Chief Administrative Law Judge makes the following:

ORDER

          Complainant’s Motion for Reconsideration is DENIED.

Dated:  July 8, 2010

 

 

                                                                      s/Raymond R. Krause

RAYMOND R. KRAUSE

Chief Administrative Law Judge

 


MEMORANDUM

          On July 1, 2010, the Administrative Law Judge issued an Order dismissing the Complaint in this matter for lack of probable cause to believe that the Respondents violated Minn. Stat. §§ 211B.13 and 211B.15 as alleged.  On July 6, 2010, the Complainant requested reconsideration of the Dismissal Order.

          Minn. Stat. § 211B.34, subd. 3(b), provides that the Chief Administrative Law Judge must review the petition for reconsideration within three business days and determine whether the assigned administrative law judge made a “clear error of law.”

Minn. Stat. § 211B.15, subd. 2, prohibits corporations from contributing things of monetary value to a candidate or candidate’s committee to promote or defeat that candidate’s election to office.  Minn. Stat. § 211B.13, subd. 2, prohibits a person from knowingly soliciting, accepting or receiving anything of monetary value that is a prohibited corporate disbursement under section 211B.15. 

The Complainant alleged that Thomas Horner and Horner 2010 received prohibited corporate contributions when DRL provided polling results and data to them at no cost.  Administrative Law Judge Cervantes concluded that the Complainant failed to establish probable cause to believe DRL provided Horner and Horner 2010 with a prohibited contribution because the polling data had already been released to the St. Paul Pioneer Press, and the data was therefore public.  Judge Cervantes concluded that because the polling data was available, public and free of charge to anyone upon request, it had no monetary value and the giving and receiving of the data therefore could not form the basis of a Minn. Stat. § 211B.13 or § 211B.15 violation.

In its Petition for Reconsideration, Complainant argues that the Dismissal Order is clearly erroneous as a matter of law because Administrative Law Judge Cervantes misread Federal Election Commission (FEC) regulations and a 1986 State of California Advisory Opinion.  Complainant acknowledges that the FEC regulations and the Advisory Opinion are persuasive, non-binding, authorities.

The Chief Administrative Law Judge disagrees with Complainant’s contention that Administrative Law Judge Cervantes committed clear error in his interpretation of these sources.  The FEC regulation at issue provides that the acceptance of poll results that “have been made public” is not a contribution in-kind.[1]  Similarly, the California Advisory Opinion provides that the provision of survey results to a candidate would constitute a prohibited contribution, but that “in contrast, if [the survey corporation] instead were to make the results available to the public, such as by…providing the results to a newspaper,…[it] would not be considered a contribution.”[2] 

Judge Cervantes, relying in part on these sources, concluded that once DRL released the polling results to the newspaper reporter, the polling data became “public” and the data thereafter lacked “monetary value” and did not constitute an in-kind contribution.  That conclusion was not clearly in error.  By the time DRL provided the poll results to Respondents, the results had already been given to a newspaper and a number of hours later the newspaper published an article that included the poll results.  The information was in the public domain when it was given to Respondents. 

Complainant argues that according to the California Advisory Opinion, Respondents violated Minn. Stat. §§ 211B.13 and 211B.15 because Horner received the results before they were published in the newspaper.  The Opinion, however, does not require publication of the results.  It specifically states that the provision of the results to a candidate after the results have been “provided to” the newspaper would not constitute a prohibited contribution.  A finding of “clear error of law” is a significant burden that Complainants have not overcome.  Administrative Law Judge Cervantes did not commit clear error of law in his interpretation of the FEC regulation or the California Advisory Opinion, and he did not make a clear error of law when he dismissed the Complaint.  The motion for reconsideration is denied.

R. R. K.



[1] 11 C.F.R. § 106.4(c).

[2] California Fair Political Practices Commission Advisory Opinion, Feb. 27, 1986, (Haapoja Aff., Ex. B).