Minutes of the Meeting of the Libertarian National Committee
August 20-21 , 1994 The Crystal City Marriot Hotel Arlington, VA
1. The meeting was called to order at 9:00 am.
Visit to LPHQ headquarters scheduled for Saturday lunch break
Michael Moriority to speak to LNC at Sunday lunch break
National Committee Members in attendance:
Steve Dasbach Chair
Karen Allard Vice-Chair Bill Evers Region 2
John Famularo Secretary Thea McLean Region 2
Hugh Butler Treasurer Joe Hauptman Region 3
Sharon Ayres At Large Gary Ilardi Region 4
Tamara Clark At Large Dan Karlan Region 5
Ron Crickenberger At Large Joseph Brennan Region 6
Gary Johnson At Large Robert Franke Region 7
Don Ernsberger At Large Tom Paswater Region 8 Alternate
James Dan Region 1
Joe Barnett Region 8
Jesse Markowitz Region 5
Perry Willis National Director
Bill Winter Communications Director
4. Approval of Minutes of April 16 -17, 1993 meeting
The following corrections to the minutes were noted:
Page 11 Para 1 Line 6 The FEC fine letter is now at $50,000
Page 21 Para 1 Line 1 over one of the appointments to the
Page 26 Para 2 Line 1 explained that when
Page 26 Para 2 Lines 1,4,5 replace addenda with agenda
Page 29 Para 1 Line 1 December, 1992
Page 29 Para 10 Line 3 by 6/1/96
Corrections to the Policy Manual:
Correct Table of Contents to reflect body of manual
Correct Article V Section 2 B 4 to reflect the wording in the minutes.
4. An existing budget line may be increased by the Chair, with the consent of the Executive Committee, during the period between LNC meetings, provided there is a corresponding reduction from the contingency fund.
Motion to approve the minutes passed without objection.
5. Setting Agenda
Item Est Minutes
___1 Call to order 9:00 1
___2 Announcements 5
___3 Credentials 5
___4 Approval of Minutes 10
___5 Setting Agenda 10
___6 Check of Paperwork 10
___6a Program Committee 10
___7 Chairs report 30
___8 Exec comm minutes 10
___9 Headquarters report
A. National Director 60
B. Communications Director 30
___10 Secretary's Report 60
___11 Treasurers Report 15
___11a Audit Report 10
___12 Convention oversight committee 15
___20 Budget Amendments 30
___21 Resolutions 5
___22 Future meetings 15
6. Check of Paperwork
Agenda Packet with Checklist
Exec Comm minutes
Communications Directors Report
Convention Oversight Report
Organizing Area Update
6a. Program Committee Report Michael Tanner
Prior to the Program Committee report, Steve Dasbach presented a Plaque to the Chair of the Program Committee, Michael Tanner in recognition of the outstanding work done on Project Healthy Choice and Operation Safe Streets. "The Libertarian National Committee commends Michael Tanner for his pioneering work on the Libertarian Party's first two major public policy proposals: Project Healthy Choice and Operation Safe Streets. Thank you Michael, August 20th 1994, Washington, DC".
Don Ernsberger commended these projects as excellent and stated that they are the center of attention and interest among the media during the press conferences and interviews he has conducted as part of his campaign for the US Senate in Pennsylvania.
Mr. Ernsberger asked if these projects were considered projects under Section IX of the policy manual, and if so was a separate accounting of the costs being maintained.
Mr Dasbach said that these projects were funded from within the regular budget accounts such as Fundraising, Premiums, and Literature and were not considered special projects.
Mr. Ernsberger said that evaluation of a project is difficult without establishing initial goals and budgets that can be reviewed. He suggested that we consider doing that in the future.
Mr. Dasbach said that these were projects predominately within the Development area and budget, and their original purpose was to support revenue raising efforts.
General discussion of the value of documenting the cost in dollars and resources versus the benefits derived from projects for future analysis. Perry Willis agreed that this type of analysis would be useful.
Mr. Tanner took the floor and complimented the extra work of Sharon Ayres, Bill Evers and Bill Winter in assisting the Program Committee. He said that the charge of the Program Committee is to produce from five to ten planks that concern hot issues to be presented as transitional programs. Project Healthy Choice and Operation Safe Streets are the first two of these program planks. The additional program planks will be presented in a similar fashion as packets. They may no be presented as projects or as the center piece of a major fund raising effort, but they would look similar to the first two planks. i.e. a short explanation followed by a briefing paper with footnotes and references. The schedule for the completion of all ten planks is by the 1996 Convention. The next the scheduled planks for next spring are on the subjects of Foreign Policy, Education, and the libertarian approach to poverty. Other topics being considered are: Economy and Prosperity, Environment, "Good Government", Individual rights. When all ten are completed, the briefing papers will be bound together in a book for use by the candidates. Within the Program Committee the assignments will be:
Rick Sincere Foreign Policy(non-intervention, foreign aid )
Cecil Bohannon Education
Foreign Policy (immigration, free trade)
Mike Tanner Domestic Policy
Kathleen Richman Editing
Attention to popular appeal
Bill Winter Layout
Mr Evers suggested changing the title "Good Government" to Governmental Reform.
Mr. Tanner requested suggestions for future topics.
General Discussion on topics and approaches.
7. Chairs Report Steve Dasbach
Written report submitted.
Mr Dasbach reviewed his written report and commented on the progress on the previously adopted goals.
Goal #2 We are beginning to focus on membership growth, with major mailings going out to expired members and revision of the "Hess" letter.
Goal #3 We should have ballot access in 20 states for the next presidential election without further effort and another 10 states depending how we do in the election.
Goal #4 We are on track on office holders.
Goal #5 Over 200 candidates have received training; 125 from National (85 Salt Lake City, 40 Joe Knight). and the balance from individual state training.
Goal #6 We are behind the curve on Media Relations and Shadow Cabinet press releases.
Goal #7 We are on track on professionalism with the office procedure manual
Goal #8 We have only produced one additional issue instead of two
goal #9 We are on track for the Libertarian Volunteer and behind the curve for the organizing manual.
Mr Ernsberger suggested that we are further ahead on Media Relations and further behind on Membership growth due to the skewing effect of the January membership mailing. He also suggested that we should be more critical internally when we are evaluating progress.
Mr Dasbach said that the strategy for membership growth is:
First to reduce the rate of membership loss through non-renewal,
Second to reach out to lapsed members, and
Third to reach out to new people.
Mr Willis said that one reason we have not done better is because we have not been able to spend the necessary time due to the priority of staff training, completion of the procedure manual, and many other things. We currently have a letter returned from the printer that is being sent to 20,000 long term expireds, also a letter to people who are contributors but have no signed the certification, and a prospecting letter in the works to send to a number of lists.
Mr Karlan said that the other areas of improvement where we are ahead should be considered as prerequisites for justifying and supporting membership growth.
Mr Ernsberger questioned the low member yield from the 800 number responses. General discussion of the 800 number follow up. Mr Willis said that there has been insufficient follow up in the past and that he and Bill Winter are planning to develop a series of follow up letters and a new info pack.
8. Executive Committee Minutes
Tabled until Sunday
9. Headquarters Report
A. National Director Perry Willis
Written report submitted.
Mr Willis passed around a copy of the procedure manual and requested questions on his written report.
Mr. Ernsberger questioned the value of the Telemarketing effort.
Mr. Willis said that a number of new things are being tried:
A new mechanism for updating Alexis' list
Blitz calling the list three to four times per year rather that continuously
Developing a better pitches developed around various themes.
B. Communications Director Bill Winter
Written report submitted
Mr Winter reviewed some of the highlights
Activist directory and activist database are still under development.
The organizing manual and shadow cabinet press releases are lagging slightly due the priorities of other projects and the fact that everything can not be done at once. Steve Dasbach is taking over coordination of the organizing manual.
In the three principle areas we are seeing some positive results.
Media - radio interviews has gone from 2 to 25.
- non Howard Stern incoming calls have quadrupled.
State Party service - generally good comments on materials and service
General Image - just about all the old materials have been overhauled and the remaining are being worked on.
Bob Franke asked why the monthly state chair mailings are not sent to the LNC. He said that his state chairs ask him questions about the materials assuming he has received them.
General discussion as to the extra work load required to do the additional mailing. Bill Winter said that mailing to the LNC would require 40% more effort on his part. Perry Willis said that the office staff has little extra time, but that he would attempt to get the mailings to the LNC in the future.
10. Secretary's Report John Famularo
Written report submitted
Mr. Famularo said that after the April meeting where the issue of liability and incorporation was discussed, he prepared a letter to Bill Hall which itemized a number of questions concerning general liability, board liability, and state and federal legal compliance. While waiting for a reply from Mr Hall, he began a personal investigation into these issues by contacting a number of knowledgeable lawyers in the area of non-profit organization liability. His conclusion that these issues should be investigated by a competent legal counsel was corroborated by Mr. Hall's recent memo to Steve Dasbach. In the course of his investigation Mr. Famularo contacted Mr. Richard Mayberry, a political law expert, who has worked for the Clark campaign and many other national candidates and parties. Mr Mayberry met with the executive committee and after further discussion within the committee it was decided to recommend that Mr Mayberry be retained to do a limited investigation into the issue of legal liability for $2,000..
Mr. Dasbach said that Mr. Hall had estimated that if his firm would undertake this investigation it would require from $5,000 to $10,000. Mr. Hall has spoken with Mr. Mayberry and is confident that he can perform this investigation. Hugh Butler said that he supports this proposal and that it is important that we make contacts in Washington, D.C. with professionals that already have experience with other political parties and figures. Mr Butler has spoken with Mr Mayberry and has requested the names of CPA firms in the DC area that may provide experienced and more practical advice.
Mr. Famularo made the following motion:
Move to engage Mr Richard Mayberry to investigate the following questions and issue an opinion for an amount of $2,000 :
1. To what degree does the Libertarian National Committee (LNC) as an unincorporated association expose the personal assets of members, officers, directors or employees to legal judgements arising from the actions of the LNC, other members, employees, agents, contractors, directors, or officers of the LNC?
2. What specific courses of action are available to the LNC and what are the associated risks and costs.
3. If individual officers or directors have varying concerns about their personal assets, what action can an individual officer or director of the LNC do to limit exposure and/or insure against loss?
4. What action can be taken to insure against the cost of legal counsel for defending the LNC and/or individual officers, directors, employees, or members arising from participation in the LNC?
Motion passed without objection.
Mr. Dasbach reported that based on Mr Hall report he was recommending certain actions to improve compliance in the areas of FEC law, Tax law, Election law, and Campaign finance.
1. MOVE that the LNC requests General Counsel William Hall to perform an audit of the LNC's FEC compliance, commencing with the filing of the LNC's 1994 year-end FEC report. Further, the National Director is directed to provide General Counsel with copies of the LNC's recent FEC reports, as well as other requested documents, and shall meet with General Counsel at LPHQ to review and discuss the LNC's reporting practices. Further, General Counsel shall provide to the LNC a written report detailing recommended changes in the preparation and filing of FEC reports and setting forth any suggestions for more sweeping changes in the structure of the LNC's fundraising and expenditure activities and recording and reporting procedures. Further, the General Counsel should consider overall structural changes in the LNC in general that may be considered by the LNC . Further, the National Director and Treasurer shall respond to the report by advising the LNC in writing of any changes made as a consequence of the audit report, and of whether they support or oppose the audit report's suggestions for more sweeping change. Further, the LNC makes this request with the understanding that General Counsel is qualified to perform this audit, and is willing to do so at no cost to the LNC, other than out-of-pocket expenses.
2. MOVE TO AMEND Article VI Section 5 A. Internal Auditor by inserting the following sentence between the second and third sentences:
"The Auditor shall pay special attention to, and report to the LNC regarding all tax compliance issues, such as the timely preparation and provision of accurate 1099 forms."
3. MOVE TO AMEND Article VI Section 7 by adding the following language at the end of the section:
"The Ballot Access Chair and Affiliate Support Area Manager are required to satisfy themselves and report to the LNC that they are complying with state election and campaign finance laws whenever they fund ballot access for non-federal candidates."
4. MOVE TO AMEND Article VI Section 8 by adding the following language at the end of the section:
"The Campaign Support Area Manager is required to satisfy himself and report to the LNC that he is complying with federal and state election and campaign finance laws whenever he provides financial support for candidates."
5. MOVE TO AMEND Article V Section 1 by adding a new part E.
"E. Independent contractors doing business with the LNC are required to sign formal contracts which clearly set forth the parties' intention that they be treated as independent contractors."
6. MOVE TO AMEND Article III Section 3.A. by adding the following language to the end of part (1):
(1) To...law ", and to regularly consult with the Director on the fulfillment of tax reporting requirements."
Mr Evers moved all the pending motions
General discussion on the ability of the area managers to know and verify compliance.
Karen Allard said that as our visibility grows, the probability of closer scrutiny grows, and we should make our best efforts to assure we are in compliance with all legal requirements. Mr Karlan asked Mr Willis whether he could provide the support that will be required by Mr Hall in his FEC audit. Mr Willis said he could.
Motions were passed without objection.
Mr Willis asked to amend his headquarters report to commend Dan Karlan for his assistance at the LPHQ during the week preceding the LNC meeting, and to present a plaque to John Famularo in commendation for years of service to the LPHQ.
11. Treasurer's Report Hugh Butler
Mr. Butler has been in continuous contact with Ms Tamara Kapper of the FEC. She agreed to reduce the FEC fine earlier this year. At the direction of the chair Mr Butler is continuing to investigate the area of fund accounting. Ms Kapper has been very cooperative in supplying information concerning this area and specifically the area of building funds. In conversations with Ms Kapper and another political consultant, Mr Butler believes that the FEC are less restrictive than the LNC has believed in the pas We can and should begin to set up separate non-federal accounts so that we can reduce our FEC reporting requirements and increase our ability to solicit corporate and affiliate contributions. Mr Butler is working with Mr Willis in this area. He also said that the affiliate parties and federal candidates may be inadvertently triggering filing requirements and should be looked into.
?11a. Auditor's Report Thea McLean
Ms McLean spent two days in the LPHQ doing an audit and will be preparing a written report for the next meeting. She also said that accounting is now being done on an accrual basis.
12. Convention Oversight Committee Dan Karlan
Written report submitted.
A update to the written report comes from a report from Bob Waldrop sent to Hugh Butler and independent contact with Mr. Waldrop.
Mr Waldrop refuses to disclose any debts and liabilities and considers that to be personal information and that he intends to resolve any issues over time. Sal Guzetta has indicated that he is owed 1609.74
An announcement was placed in LP News requesting comments, complaints and suggestions concerning the 1993 Convention.
General discussion of the outstanding obligations of Morning Glory Productions.
Sharon Ayres said that she has reviewed all the video tapes available from the 1993 convention and in her opinion they are not useful.
The 1996 convention is on track, and a time line has been published.
Mr Butler asked whether the COC or FEE has looked any further into any objections to the proposed hotel site. Mr Ernsberger said that he had communicated with the individual involved and that there seemed to be no current or proposed formal opposition to the site.
The 1998 convention is on track
Carolyn Treynor has been added to the Convention Oversight Committee
The RFP will be announced in the October LP News with a deadline of March 1st, 1995 so that they can be discussed at the April meeting.
13. Legal Action Committee Joe Hauptman
Mr. Hauptman has compiled a list of 30 lawyers who have worked for the party in the past and will be contacting them. He is also drafting a letter to the State chairs requesting additional names. The exact role of these lawyers is being defined and will be documented. It is the intention that they will only represent the National party and the affiliate parties. Since being identified as chair of the legal action committee he has been getting numerous calls from individuals with real or perceived legal problems.
14. APRC Bill Evers
Mr Evers said that the APRC was dedicated to improving the turnaround. The earlier the APRC can be involved in the development of new literature, the more expeditious the review and approval process can be completed.
In order to further expedite the process, Mr. Evers made the following motions to amend
Article VI Section 5 Item D Advertising & Public Relations Committee:
Remove "renewal letters" from the pre-publication review list in paragraph 3 and add it to the post-publication review list in paragraph 2.
Change the time to object in paragraph 4 from 15 days to 10 days.
Motion passed without objection.
15. moved to 6a
16. Development Report Sharon Ayres
Written report submitted.
Ms Ayres said that she would like to consider the proposed building fund as the focus of a large donor program she is contemplating with Spear & Dean a fund raising consulting firm.
General discussion of buying, renting, or building a headquarters. Considerations of future requirements. Mr. Franke said he has commercial property financing experience and volunteered to serve on any future financing committee. Mr. Butler said that the value of the Building fund was based on the assumption that we would be getting additional funds from sources we are not currently drawing from.
17. Campaign Support Ron Crickenberger
Written report submitted
533 candidates identified so far.
Additional request for funding received from a group of 15 candidates from NH totalling $4,305
Candidates manual is completed and copies should be available within 10 days.
Looking to the possibility of developing campaign support software.
Tamara Clark said she would turn over the signs she bought for her campaign to Mr Pratt
18. Affiliate Support Karen Allard
Written report submitted with agenda packet.
Updates distributed at meeting.
General Discussion of New York Ballot access situation. The $5,000 allocated to the NY petition drive had not been set because the required transmittal information had not been communicated to the national office by the NY State Chair. Joe Brennan said he was unaware of the communication problem and was trying to contact NY today. He said that the 17,500 estimated total signatures gathered to date was not confirmed. Steve Dasbach said that the money could be sent on Monday is the information was received on how it was going to be used and if was going to make a difference. Mr Brennan said that some money may have been spent by NY for petitioners and processors in anticipation of money coming from National. Ms Allard said that if NY has collected over 15,000 signatures by Monday, she would authorize the money to be sent, if they have collected fewer, she would consult with Steve Dasbach.
Maryland is the next priority state for 1994 Ballot Access.
Joseph Knight has reported that North Dakota was more difficult than expected.
General discussion on the ND organizing Ms Allard said that some time would have to elapse before an analysis of the success of the ND can be determined.
Mr Winter asked about the process for decertifying a state party. The chair of the Rhode Island party can not be contacted after three months of effort, and there is someone interested in getting the state moving. Mr. Dasbach said that decertification should not be the method used, but that we could help organize a convention to elect a new chair.
19. Regional Reports
Region 1 Tamara Clark for Nevada only
The LPNV got reduced ballot status requirements through legislation two years ago after proof of fraud in Ms Clark's race. A requirement that a candidate be registered in the party for one year remained. This year the LPNV filed candidates that did not meet this requirement and were thrown out by the Secretary of State. The LPNV is currently challenging this decision in court.
Region 2 Thea McLean
Written report submitted.
Region 2 Bill Evers
Written report submitted
Hawaii gubernatorial candidate may be disqualified due to the lack of a lieutenant Governor candidate
Mr Evers appeared on a 1/2 hour PBS show on the topic of the invasion of Haiti
Region 3 Joe Hauptman
Written Report submitted
correction to the election that Kentucky is working on is 1996 not 1994
Virginia is running two congressional candidates.
Jon Coon is running a good campaign and should maintain ballot status.
Region 4 Gary Ilardi
Written report submitted
Alabama signature requirements should be 12,000 not 20,000
Mr Ilardi said that we should look into perusing ballot access aggressively through the courts, especially in the southeast.
Region 5 Dan Karlan
Maryland convention set for October 15th
Pennsylvania convention set for April in the Pittsburgh area.
John Reda race in Delaware doing well
Talk of a regional convention
Region 6 Joe Brennan
Written report submitted
Media overflow from NH is benefiting Maine
Howard Stern has been cordial since his withdrawal and has announced locations for petition signing. Bob Schultz, the replacement gubernatorial candidate, has been successful in the past in suing the NY government to roll back certain bond issues.
Miriam Luce got press coverage in Maine and NH for expelling Maine liquor control agents from the property of the NH liquor stores where they were spying on Maine residents buying liquor in NH.
? Region 7 Bob Franke
Mr Franke wrote to all eight state chairs in the region and got no response except from Kansas. After calling the remaining chairs, he got a extensive reply from Illinois.
Illinois now has ballot status due to substantial help from National, but communications between the state and national was poor and should be improved in the future.
Convention scheduled for April 21 -23 1995.
Iowa state chair can not be contacted.
The North Dakota state chair Kristian Brekke was contacted and said he had not heard from Joe Knight.
Nebraska convention moved to September 11, 1994
Missouri has permanent ballot status and a contested primary for the state senate seat.
Mr. Dasbach said that the primary was held in the beginning of August and Bill Johnson was elected with 75% of the vote.
Wisconsin needs 1% to retain ballot status.
Region 8 Tom Paswater
New Chairs in Mississippi and Louisiana
Arizona 5 partisan candidates, 4 non partisan candidates
20. Budget Amendments Steve Dasbach
After an initial review by the executive committee and final review by Steve Dasbach, Perry Willis and Hugh Butler, the following budget amendments are recommended:
The Material sales budget is over by $2000 and needs to be increased to cover the overage and new brochure revisions and printings that will be needed before the end of the year:
LP represents you
Increase Material Sales budget by 5000
The Legal budget needs to be increased by 2000 for the legal research approved by a previous action of the LNC above, and certain pending requests that may require funds
Increase Legal by 3000
These increases will be offset by reductions in the following Development items where we are spending significantly under budget and have no expectation of increases before the end of the year:
Database Maintenance (Address Correction requests every other month)
Budgeted at 4000 and spent 422 thru June 30th
Reduce by 3000
Incoming Mail (BRE account)
Budgeted at 7000 and spent 2600 thru June 30th
Reduce by 2000
Budgeted at 75000 and spent 36000 thru June 30th
Reduce by 3000
The Contingency fund as of July 31st showed 17,500 which was reduced to 12.500 due to the 5000 for New York, but due to an error in recording the FEC fine, the Contingency Fund should show zero and not 12,500.
Reduce Contingency fund to zero.
Motion passed without objection
22. Future Meetings Sharon Ayres
The Arizona Party has their convention scheduled for April 28 -30, 1995, and has proposed to host the spring 1995 LNC meeting .
Ms Ayres moved that the LNC schedule the April 1995 meeting to coincide with the dates and location of the Arizona convention.
Motion passed on voice vote
Discussion of possible future meeting in New Hampshire.
Thea McLean moved that an airline ticket be provided for Kianna Delmare for the Arizona meeting in recognition of her volunteer efforts at the LPHQ.
Hugh Butler requested that anyone proposing a location for the August 1995 LNC meeting other than Washington, DC to please consider scheduling it for the last weekend because due to his business schedule, it is the only weekend available.
The December 10-11, 1994 meeting will be held in Washington, DC at the Marriot Crystal City Hotel.
23. Policy manual corrections Steve Dasbach
Mr Dasbach moved to Delete Article V section 6 "Auditor"
This section is redundant and has been superseded by Article VI Section 5 A.
Motion passed without objection.
Meeting recessed at 5:30pm Saturday and reconvened at 9:20 am Sunday, August 21
?24. Convention Oversight Committee Update Dan Karlan
Bob Waldrop's report absolves the LNC of any liability for the 1993 Convention, while he maintains that there was a substantial breach of contract on the part of the LNC.
Mr. Famularo said that while FEE was investigating its FEC filing requirements, a public FEC memo was found that indicated that the FEC was aware that the 1987 LP convention arrangements were not in compliance with their rules but that within their prosecutorial discretion they decided to take no action. Ms Allard said that the 1987 convention organizing committee had received a notice to that effect from the FEC.
Mr. Franke asked to whom he should direct complaints about MGP non performance.
Discussion as to how to gather and identify complaints without implying or accepting liability.
25. Executive Committee Minutes
Available copies of the executive committee minutes were distributed.
Mr. Johnson was commended on the quick turn around of the minutes on electronic mail
26. Campaigns Report Update Ron Crickenberger
Mr. Crickenberger said that with the same information available he would make the same decision concerning the early funding of the Tamara Clark campaign. He said it was clear that the LPNV party went back on an agreement to file her candidacy early . There had been a tacit agreement between the LPNV and the Republican party that they would not oppose Ms. Clark if the LPNV did not run candidates in other races;, however, the new state chair did no follow through. The difference being that she is now in a three way race and could have been in a two way race.
Mr. Butler raised the question of accountability of the funds given to candidates. Mr. Crickenberger said that this has not been done in the past. Mr Butler said that the use of theses funds should be accounted for just as they are in other areas of the budget. Ms McLean said that we need documentation on expenditures so that we can pass an external audit.
Ms. Allard said that she would like a detailed accounting of the use of the money sent to Tamara Clark. Ms. Clark said she give that accounting to Ron Crickenberger on Monday.
Mr, Crickenberger said that he considers Ms. Clark one of our best performer as far a vote getting ability at the state house level.
Meeting Adjourned at 10:00am