Minutes of the Libertarian National Committee December 10-11 , 1994
The Crystal City Marriot Hotel, Arlington, VA
1. The meeting was called to order at 9:00 am.
2. Announcements
Harry Browne campaign to host a reception Saturday evening.
Tour of potential new office site is cancelled.
3. Credentials:
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
Ron Crickenberger At Large Dan Karlan Region 5
Gary Johnson At Large Joseph Brennen Region 6
Don Ernsberger At Large Robert Franke Region 7
Tom Paswater Region 8
Absent:
James Dan Region 1
Joe Barnett Region 8
Tamara Clark At Large
Alternates
Terry Savage Region 2
Non-Voting:
Perry Willis National Director
Bill Winter Communications Director
4. Approval of minutes
Sharon Ayres that the following wording adopted at the December 1993 LNC meeting should be incorporated in Article I Section 3 Paragraph C
"The LNC adopts the Statue of Liberty as the appropriate graphic symbol to be used on Party materials."
5. Setting Agenda
___1 Call to order
___2 Announcements
___3 Credentials
___4 Approval of Minutes
___5 Setting Agenda
___6 Check of paperwork
___7 Chairs report
___8 Executive committee report
A Review of minutes
B Response to Mayberry report
___9 Headquarters report
A. National Director
B. Communications Director
C. New Membership
___10 Treasurers Report
___11 Auditors Report
___12 Convention oversight committee
___13 Program Committee
___14 Development Report
___15 Campaign Support
___16 Affiliate Support
___17 Legal Action Committee
___18 Regional Reports
___19 Budget
___20 Policy Manual Revision
___21 Resolutions ___22 Future meetings
6. Check of Paperwork
Chairs Report
Revised Budget and Financial Summary Pages
Executive Committee report
Treasurers Report
Program Committee report
Development report
Campaign Support
Affiliate Support
Region 2 reports
Region 4 report
Region 5 report
Region 6 report
Region 7 report
1995 Budget
7. Chairs Report Stephen Dasbach
Mr. Dasbach explained the 1995 budget as a new presentation and not an account code change. The Budget is broken down into two funds:
The Operating Fund which consists of:
Our stable sources of revenue offset by the expenses associated with raising that revenue.
Expenses associated with our ongoing operations
The Project Fund which consists of:
Direct Mail and Telemarketing
Large Donor Program
The Operating fund currently requires a $35,500 transfer from the Project fund to balance. The goal is to increase operating fund revenue so that this transfer is not required in the future.
The Project Fund will fund Ballot Access, Campaign Support, Affiliate support, and prospecting. The Large Donor program funds will be directed to major ballot drives in Florida, North Carolina and Oklahoma.
We have gone a long way from a year ago to improve the stability and professionalism of our headquarters operations. The unusually large amount of staff turnover was handled with the cross training of personnel and the maintenance of a documented procedure manual.
General discussion of the concept of not funding any project until the money is raised.
Mr. Dasbach said that a goal of LPHQ operations is to implement a project control and management system for all new projects that will formally document the following:
Project Manager
Goals of project
Estimated Costs
Estimated Benefits
Mechanism for evaluating results.
8A. Executive Committee Report.
Discussion of promised reimbursement of expenses for New Hampshire representatives and Ron Paul for the 1993 Salt Lake City Convention. Although it was not our responsibility we offered to reimburse them. The New Hampshire representatives accepted and Ron Paul declined the reimbursement.
8B. Richard Mayberry report (presented out of order at 4:30 pm Saturday)
Mr Mayberry said he was asked to address the issue of limiting liability of the LNC which he covered in a written report which was supplemented by private meetings with the Treasurer and the Executive committee. He said that his recommendation was that the LNC incorporate. This could be achieved at low cost, and would offer protection against tort and contract liability that might arise from normal operations. He said that he looked into the legal issues of a political committee incorporating and found no impediment. Mr Mayberry made the following points in response to questions from the committee.
1 Incorporation does not protect individuals from tortious acts that they perform.
2. Incorporation will make it easier for the LNC to get liability insurance.
3. Incorporation will limit the liability of the LNC to the assets of the LNC.
4. Insurance and incorporation go hand in hand to give the ultimate protection to an organization.
5. Since the LNC is the operational arm of the Libertarian Party, any liability will be generated by actions of the LNC.
6. Incorporation is not shirking responsibility, it is a sound business decision.
7. No impediment has been found in state law to impede incorporation. Federal law takes precedent and case law and statutes allow a political committee to incorporate for liability purposes only.
8. The Articles of incorporation will refer to the Bylaws of the Libertarian Party which will be controlling.
9. Since 1978 the Democratic National Committee has been a corporation.
10. Since 1980 all Presidential, most Senatorial and Congressional campaigns that raised approximately one million dollars have been incorporated. Prior to 1980 the Edward Kennedy and Mondale campaigns were involved in law suits where the committee members were sued individually.
11. Incorporation should be under the Laws of the District of Columbia. Since the LNC currently operates in the corporate form as far as meeting, minutes, and Roberts Rules of Order, incorporation should not require any significant changes.
9A. Headquarters Report Perry Willis
Discussion of the future LPHQ office move. Our real estate agent has been looking for space in the $18 per square foot range with no success. In consultation with the Chair, the agent was authorized to look for space in the $20 per square foot range. The current HQ has approximately 3000 square feet of which approximately one-third is unusable due to stairs, bathrooms, and hallways.
The new computer equipment purchase is planned for early in 1995. Some of the 1994 funds were expended for the continued utilization of Stuart Reges.
Staff turn over was heavy in 1994. Our new data staff member, Tiffany Rodney has worked out very well with an increase in throughput with a significantly lower error rate. A new reconciliation system installed to reconcile the accounting system with the database system has detected only one data entry error. An additional data entry person will be hired in the near future.
A project manager will also be hired to handle the following items:
Special Projects
Ballot Access Coordination
Affiliate Support Phone Calls
General Project Management
A Project code is to be implemented into the accounting system so that we will be able to track receipts and disbursements by project.
A mechanism for issuing Membership cards to new members will be installed in January.
Special embossed plastic life membership cards will be issued to all life members.
A new procedure has been installed to return 50% of all revenue derived from the brochures purchased and distributed by Affiliate parties to the affiliate parties
Scott Kohlhaus has been hired on a commission basis to contact lapsed members by telephone. He has solicited $20,000 in renewal pledges from lapsed members, of which $7,600 has been received to date. As we go further back in the lapsed list, his commission will be raised.
There will be a room set up in the new headquarters for Telemarketing operations.
A New procedure has been set up for the regular monthly fund raising mailings. Each segment of our mailing list will be mailed each month with a separate letter for each of the following:
Current members and subscribers
Lapsed members and subscribers
Prospects
An analysis will be performed to determine how far back lapsed members and prospects are still profitable to solicit.
Discussion of "No Funds" response to lapsed member solicitation.
Discussion of "New Members" versus "Reinstated Members" as a basis of membership doubling.
Discussion of 800 number inquiry conversion rate. Plan to create source code report by origin code to better analyze conversion rate. Also plans to develop specifications for renewal analysis.
Mr Dasbach said that there is a three step process we have been trying to follow:
Increase Renewal rates
Increase Prospect conversion rates
Generate more prospects
9B. Communications Directors Report Bill Winter
Mr Franke thanked Mr Winter for getting the State Chair mailings to the LNC members.
Mr. Ernsberger thanked Mr. Winter for his help on his campaign. Mr. Franke asked about the procedure for determining when help was given to a campaign. Mr Dasbach said that the determination in this case was Ballot Access oriented.
Discussion of mailing "Pat on the Back Letter" to Elected Libertarians.
Discussion of Shadow Cabinet project priority.
Discussion of "Project Times Two" as a motivator for state activists to increase membership, and providing them with tools for generating new members. Plans for six to ten project kits for the state parties to focus their attention on membership. Only 2,000 new national members are planned from state party efforts.
Discussion of Constitution Party.
Discussion of Arlen Spector's meeting with the New Hampshire Libertarian Delegation.
Discussion of the value of the Activist Directory. A preliminary version for limited distribution will be produced soon and a full version will be produced this year.
Goals for next year will be a more aggressive prospecting.
9C. New Membership
Discussed within 9B above.
10. Treasurers Report Hugh Butler
Written Report submitted.
Discussion of complications of the Federal Election Commission Advisory opinion requested by Dave Walter of the 1996 Convention Organizers (FEE Enterprises Ltd.) that was construed by the FEC as a request from the LNC. Even though the LNC did not request the AO, the LNC is bound by it unless the LNC decides to challenge it and/or request another opinion. Mr Butler discussed this issue with the FEC and since the facts stated in the request for the opinion were essentially correct, there is no reason to challenge it.
FEE must report separately to the FEC as an LNC affiliated committee.
11. Auditors Report Thea McLean
Ms McLean said she got good cooperation from the Headquarters staff. Since her last report, all outstanding problems have been resolved.
12. Convention Oversight Committee
Discussion of outstanding obligations of MSG vis a vis the LNC, concerning the 1993 convention. Offsetting expenses of approximately 7,000 resulted
The official calendar 1996
1998 convention "Request for Bid " ads have been run three times in the LP News and responses have been received. The deadline for proposals is March 1, 1995. any will be reviewed in Phoenix in April.
Discussion of commercial convention organizers, absorb all functions in-house.
convention organizing committee. Budgeting considerations.
Discussion of practicality of running conventions out of headquarters.
Mr. Dasbach recognized Mr. Bergland who said that 1979 convention was contracted out by Ed Crane.
13. Program Committee Mike Tanner
The following three issue papers for the Spring:
Welfare and Opportunity
Education
Foreign Policy
Discussion of possible common cause with the Democrats since they are now in the minority.
Mr Brennen addressed the issue of the objection by the NY state committee to certain passages in the Operation Safe Streets Brochure. Mr. Brennen submitted the New York motion as follows:
"Remove from circulation all copies of the briefing package for Operation Safe Streets and delete all of section five, or at least the three paragraphs dealing with out of wedlock births"
Discussion of issues raised by the New York committee, regarding externalities and offensive phraseology such as "out of wedlock births", "single parent families" etc. Mr. Tanner said that significant thought was given to defining the effects of the welfare state without offending certain individuals.
Debate closed by a show of hands by two thirds of the committee.
Roll Call vote requested.
1 Sharon Ayres Nay
2 Karen Allard Nay
3 Joseph Brennen Aye
4 Hugh Butler Nay
5 Ron Crickenberger Nay
6 Stephen Dasbach Abs
7 Don Ernsberger Abs
8 Bill Evers Nay
9 John Famularo Nay
10 Bob Franke Abs
11 Joe Hauptman Nay
12 Gary Ilardi Aye
13 Gary Johnson Aye
14 Dan Karlan Nay
15 Thea McLean Nay
16 Tom Paswater Nay
Total -3- -10- -3-
Motion Fails 10 Nay, 3 Aye, 3 Abstentions
14. Development Report Sharon Ayres
Written report submitted
15. Campaign Support
Goals for 1995, 1996 discussed
1. Increase libertarians elected to office to 100
2. Elect a libertarian to a significant partisan office
3. Run 1000 candidates in 1996
4. 250 candidates to receive professional training in 1995, 1996
5. Devise a series of leadership development packages for visible public leaders
6. Devise generic campaign software to distribute to our candidates
7. Contact PAC's and foundations for contributions.
8. Develop demonstration campaign brochures, telephone scripts etc.
9. Expand campaign manual to 60 pages and mail out to announced candidates.
10. Identify support material for candidates committed to getting into the debates.
Negotiated a discount program with Sal Guzzetta where we can give out $100 coupon that only costs us $50.
Discussion of criteria for deciding on candidate funding and sample submissions. Discussion of procedures for candidates funding and the requirements for funded candidates to file campaign expense reports.
Discussion of mechanisms to insure compliance by funded candidates.
Motion by Mr Evers to withhold $250 from candidate funding until proper reports are filed.
Discussion of adequate post-election documentation.
Motion to close debate passed on voice vote
Motion failed on voice vote.
Further discussion of candidate funding criteria and reporting mechanisms.
Mr Butler said that he was supportive of any mechanism that Mr. Crickenberger might use to improve the professional accountability of our candidates in reporting to us and the appropriate state or federal agencies.
Discussion for using the state campaign expense forms to satisfy our requirements for reporting.
Motion by Mr. Evers to escrow 10% of all funds disbursed to candidates by the Campaign Support area manager pending a receipt of an accounting from the candidate.
Motion failed on voice vote.
16. Affiliate Support Karen Allard
Ballot Access
Written report submitted.
Bill Redpath the Ballot Access Chair addressed the committee briefly. He will be assisting in choosing. training, and overseeing the in-house ballot access coordinator who will be responsible for the following:
1. Energizing volunteer efforts
2. Recruit and train petitioners.
3. Maintain relations with one or more vendors of petitioning services.
4. Coordinate payments and communications with petitioners.
Bill will concentrate on maintaining relations with the state agencies and coordinating the lobbying efforts to reduce ballot access requirements.
Money will have allocated to pay back Richard Winger.
Discussion of Arizona elections, ballot access court appeals and registration drives.
Discussion of Illinois ballot access status. Bob Franke commended Bill Redpath for rescuing the Illinois effort.
Field Organizing
Written Report submitted
Discussion of North Dakota and Idaho projects
17. Legal Action Committee Joe Hauptman
No discussion.
18. Regional Reports
Region 1 No Report
Region 2 Thea McLean
Written report submitted
Bill Evers - Hawaii
Written report submitted
Discussion of Newsletter situation and City Council Campaign.
Region 3 Joe Hauptman
Written Report submitted
Indiana achieved statewide Ballot Status. Bylaws being revised.
Ohio working on membership.
Michigan maintained ballot status but not major party status.
Kentucky growing and running candidates.
Region 4 Gary Ilardi
Written Report submitted
All states concentrating on membership
Alabama ready to start petition drive.
Arkansas has gotten a writ of certiari for the supreme court on petitioning deadlines.
DC chair has made inroads into Black and Gay communities.
Florida has a case in the state court of appeals.
Georgia has a case in the federal court of appeals.
North Carolina granted membership to all registered libertarians in an attempt to thwart the states effort to legally eliminate the party.
Tennessee attempting to get ACLU to help in ballot access suit
Mr Ilardi said we must concentrate on having our candidates become community leaders.
Region 5 Dan Karlan
Written Report Submitted
Discussion of Jon Reda race in Delaware where he was the nominee of both the Republican and Libertarian Party and only days before the election board locked him out on the Republican line.
Region 6 Joe Brennen
Written Report submitted.
Mr. Robert Shulz our Gubernatorial candidate in New York has won a petition requirements case as a pro se litigant.
Mr. Brennan said he understood that the region 6 alternate has resigned, and he asked what the procedure was for replacing an alternate. Mr. Dasbach said that barring any specific regional bylaws, a majority vote of the state chairs of the region can appoint an alternate regional representative.
Region 7 Bob Franke
Written Report submitted.
Iowa and Nebraska have not responded.
Missouri Chair has been unresponsive but the party is doing well
Illinois membership has been stalled and more activists are needed.
Region 8 Tom Paswater
Written Report submitted
Discussion of Arizona party.
19 Budget
A. Adjustments to 1994 Budget Perry Willis
Budget adjustments to the 1994 budget are required for the following items:
Libertarian Volunteer - because the size of the Activist Database is larger than originally estimated and there is another issue that must be sent out.
Local Organizing - expense items for the Joe Knight project that were authorized but not properly entered into the accounting system.
Material Sales - new items developed during 1994 plus a higher demand than expected has exhausted the supply of a number of items. These items must be restocked to meet outstanding orders and should be ordered in economic quantities,
Motion to divide the question was passed on voice vote.
Motion to increase Libertarian Volunteer line item by 1,000
passed on voice vote.
Motion to increase Local Organizing line item by 2,379
passed on voice vote.
Motion to increase Material Sales line item by 13,000
passed on voice vote.
Mr Dasbach explained that we should repay Richard Winger for funding Wyoming ballot drive out of the 1994 budget. The amount is 7,500
Motion to increase the Ballot Line item by 7,500 for the purpose of repaying Richard Winger for the 1994 Wyoming ballot access drive Passed on voice vote.
Motion to increase the Ballot access line item by 5,000 in order to allow prefunding of certain ballot access projects in Maryland or Nebraska that may be ready to start in December of 1994. Discussion as to whether any Ballot access project should be started before the new ballot access coordinator is hired. Ms Allard said that Bill Redpath is interested in this early funding and will be responsible for coordinating this effort directly until a coordinator is hired. Discussion of effect of this motion on the Ballot Access line in the 1995 budget.
Motion Passed on Voice Vote.
B. 1995 Budget Stephen Dasbach
Office move budget discussed. Enhancement of office furniture after move is a separate budget item under the project fund. Discussion of the actual location of the new office either within the DC city limits or the DC metro area. Discussion of current rental rates by area.
Discussion of Project Fund Budget.
Proposed Budget placed before the committee for discussion.
Motion by Karen Allard to reduce Ballot Access Line from $88,000 to $83,000 and to use the $5,000 to increase Campaign Support from $22,000 to $27,000.
Mr Evers made a motion to amend Ms Allard's motion to use the $5,000 to increase the Direct Mail Prospecting from $75,000 to $80,000.
Discussion on Campaign Support vs. Direct Mail Prospecting
Roll Call Vote requested on Mr. Evers amendment
Sharon Ayres Aye
Karen Allard Nay
Joseph Brennen Nay
Hugh Butler Aye
Ron Crickenberger Nay
Stephen Dasbach Abs
Don Ernsberger Aye
Bill Evers Aye
John Famularo Nay
Bob Franke Aye
Joe Hauptman Nay
Gary Ilardi Nay
Gary Johnson Aye
Dan Karlan Aye
Thea McLean Aye
Tom Paswater Nay
Total -8- -7- -1-
Motion Passes 8 to 7
Move to postpone further consideration of the budget until Sunday
Motion Passed on Voice Vote.
Richard Mayberry presented Liability report (see 8b above)
Meeting recessed at 5:30pm Saturday
Meeting reopened at 9:00 am Sunday
Mr Karlan noted December 11th, 1994 as the 23rd Birthday of the Libertarian Party
Voice vote on Ms Allards motion passed on a voice vote.
Mr. Willis indicated that there is money budgeted to retain Mr. Richard Mayberry as a political law advisor, and money for consulting from an accounting firm.
Mr. Crickenberger addressed the issue of candidate support and presented letters from Jim Mc Clarin, and Don Gorman. Terry Savage also spoke in support of candidate funding.
Mr Crickenberger made a motion to reduce the Advertising budget by $5,000 from $30,000 to $25,000 and increase the Campaign Support from $22,000 to $27,000
General Discussion on Candidate Support versus Candidate Funding versus Advertising and Prospecting.
Motion passed on show of hands 7 to 6.
Ms Allard moved to reconsider the last amendment
Ms Allard argued that we may be tampering with the work of the executive committee in modifying the budget. Mr, Willis said that Advertising will be important to get the message out that "Republicans are not Libertarians"
Motion to reconsider failed on voice vote.
Ms Allard moved to reduce Direct mail prospecting from $80,000 to $75,000 and increasing Advertising from $25,000 to $30,000.
Motion passed on show of hands 8 to 5
Vote on adopting the budget as amended.
Motion passed on voice vote
Mr. Dasbach proposed to present the following item for consideration.
Motion to recess failed on voice vote.
Motion to allow the spending authority in the Large Donor Program be equal to the revenue raised in that area. The budget indicates where the money is to be spent.
Motion passes on voice vote.
20 Policy Manual Revisions Dan Karlan
Motion to approve the following housekeeping amendments to the Policy Manual:
1) Page 2, Article I, section 2, paragraph G, last sentence: remove the (redundant) word "Libertarian" before the abbreviation LNC.
2) Page 2, Article I, Section 4, first sentence change the word "Pledge" to "Certification".
3) Page 3, Article III, section 3, paragraph A: Remove the ( ) around the sub-paragraph designations.
4) Page 4, Article IV, Section 1: Designate all paragraphs with upper-case, rather than lower-case, letters.
5) Page 5, Article V, section 1, paragraph D: Change "Article X, Section 1" to "Article IX, section 1".
6) Page 5, Article V, Section 4, paragraph B, last-sentence: clarify the intention by inserting the words "the travel reimbursement" after the word "refund" .
7) Page 6, Article VI, Section 5, paragraph A, second sentence: insert a comma (",") after the word "regarding".
8) Page 7, Article VI, Sections 6 and 7: designate all paragraphs with upper-case, rather than lower letters.
9) Page 7-8, Article VII, Section 1, paragraphs A, B, and C: Remove the () around the sub-paragraph designations.
10) page 8, Article VII, Section 1, paragraph B, sub-paragraph 3: change the word "their" to "there" in the fragment "on which there is no libertarian consensus".
11) Page 8, Article VII, Section 1, paragraph B, sub-paragraph 5, first sentence: pluralize the word "article".
12) Page 8, Article VIII, Section 3: insert "Election Bill" after the word "Fair".
Motion passed on voice vote.
21 Resolutions
Mr. Crickenberger announced that Mr Cal Warburton is in the hospital in a coma. A "Get well" card from the LNC was suggested.
22 Future meetings
Proposals for August 19 - 20, 1995 Meeting.
Motion to table consideration of proposals failed on voice vote.
Mr. Franke presented the proposal for Chicago..
Mr. Karlan presented the proposal for Baltimore.
Mr. Hauptman moved that we accept the Chicago Site.
General Discussion on sites.
Motion passed on voice vote.
23 New Business
A. Campaign funding reports Ron Crickenberger
Review of campaign expense reports from Tamara Clark.
Discussion of a Letter from Ms. Clark to the LNC and letters from Paul Pratt to Ms Clark and LNC Chairman Mr. Dasbach.
General review of candidate reporting requirements and Area managers requirement to verify reports.
B. Review of Mayberry recommendation to Incorporate.
Mr. Ilardi made a motion to incorporate the LNC as the Libertarian National Committee Inc.
Motion passed on voice vote.
C. Reports for Next Meeting.
Ms Allard said that reports for the next meeting are due on April 14th. Please forward reports to the Secretary.
D. Illinois Ballot access lawsuit
Mr. Michael Ginsberg addressed the LNC regarding the status of their suit. Ms Allard said that some money has been budgeted and may be available in 1995. Mr Dasbach said that their lawyer Andy Spiegel contact Ms Allard,
E. Cal Warburton get well wishes.
Mr Crickenberger offered the following resolution:
Dear Cal,
We are very saddened to learn of your hospital stay, our thoughts and prayers are with you. We wish you the speediest of recoveries.
The Libertarian National Committee also expresses great thanks for all your work for the Libertarian Party and for having the courage to be the first seated New Hampshire legislator to switch to the Libertarian Party and for all your work in the cause of freedom.
Get well Soon, we are going to need your help.
Your Friends on the LNC.
Resolution passed on voice vote.
F. Friday night reception for LNC meetings.
Mr. Butler proposed that we investigate the possibility of a scheduled meeting place for LNC members arriving on Friday night.
G. December, 1995 LNC Meeting
Mr. Paswater moved that the December, 1995 Meeting be held in the Washington DC area on December 9th and 10th, 1995.
Motion passed on voice vote
Motion to adjourn.
Motion passed on voice vote.
Appendix A 1995 Budget