November 24, 1998
VIA FACSIMILE AND FIRST-CLASS MAIL
James P. Hoffa
November 24, 1998
Page 1
James P. Hoffa
2593 Hounds Chase
Troy, MI 48098
Hoffa Unity Slate
c/o Patrick J. Szymanski, Esq.
Baptiste & Wilder
1150 Connecticut Avenue NW, Suite 500
Washington, DC 20036
Louis Lacroix Team Canada Slate
c/o Ron Douglas
Teamsters Canada
#204-1867 W. Broadway
Vancouver, BC V6J 4W1
CANADA
Joe McLean
46 Emmett Street
Fonthill, ON L0S 1E0
CANADA
Larry McDonald
11712 Bishops Content
Mitchellville, MD 20721
Bradley T. Raymond, Esq.
Finkel, Whitefield, Selik,
Raymond, Ferrara & Feldman
32300 Northwestern Highway, Suite 200
Farmington Hills, MI 48334
James P. Hoffa
November 24, 1998
Page 1
Re: Election Office Case No. PR-231-LLS-EOH
Gentlemen:
James P. Hoffa, a candidate for general president, and the Hoffa Unity Slate filed a pre-election protest pursuant to Article XIV, Section 2(b) of the Rules for the 1995-1996 IBT International Union Delegate and Officer Election (“Rules”) against the Louis Lacroix Team Canada Slate (“Team Canada”). The protester alleged multiple campaign finance reporting violations. The allegations are discussed separately below.
This protest was investigated by Director of Campaign Finance Leslie Deak.
I. Allegations Regarding Team Canada’s Bank Account
The protester alleged that Team Canada used the same bank account as it used in the initial election in violation of the Rules. Team Canada admitted that it had not opened a new bank account for the rerun election and that $270.72 remained in the bank account from the previous election.
James P. Hoffa
November 24, 1998
Page 1
Under the Advisory on Campaign Contributions and Disclosure (Revised November, 1998) (“Advisory”), contributions received by campaigns for the initial election can not be used directly or indirectly by candidates or slates in the rerun election. Advisory, III. In keeping with the prohibition of use of funds from the initial election, the funds from the initial election must be segregated from funds for the rerun election in separate bank accounts. Candidates and slates were to open new bank accounts and file affidavits attesting to the opening of the new bank account, including the name and location of the bank and the new account number. Id.
Team Canada opened a new bank account for the rerun election contributions on October 9, 1998, and sent in an affidavit attesting to their compliance with the Advisory.
Accordingly, this portion of the protest is hereby RESOLVED.
II. Allegations That Expenditures from Campaign Events Were Not Properly Reported
The protester alleged that Team Canada failed to report expenditures in the Slate’s Campaign Contribution and Expenditure Report (“CCER”) from three different rallies held in June, 1998: in Vancouver, British Columbia, in Edmonton, Alberta, and in Missassauga, Ontario. The Team Canada Slate denied the allegation.
In Vancouver on June 5 and 6, Team Canada held several events at the Biltmore Hotel. They reported an expenditure in their CCER No. 8 to the Biltmore Hotel for the amount of $1,208.31, which was paid on June 10, 1998, for meetings. The amount of money paid to the Biltmore Hotel appears reasonable based on the description of the events.
In Edmonton on June 20, 1998, Team Canada held an event at the Mayfield Inn. Mr. McDonald paid for the room rental and expenses with a personal credit card, intending to submit the expenses to the Slate for reimbursement. He did not submit the expense to the Slate until the beginning of November, 1998; therefore, the expense was not paid nor reported by the Slate. The Team Canada Slate stated that they will report the expenditure on their next CCER.
Any loan made by candidates to their campaign counts toward candidates’ contribution limits until the loan is repaid. Advisory, at 9. The Election Office has previously held that bills and obligations do not need to be reported as debt until the bills are more than 30 days old. Hoffa Slate, Post-45-EOH (August 21, 1997), citing Steger, P-827-IBT-EOH (September 3, 1996); Moriarty, PR-058-JHS-EOH (April 8, 1998). Mr. McDonald held a debt owed to him by the Slate for more than 30 days. As such, the debt incurred by the Slate for the June 20 Edmonton event should have been reported on their CCER No. 11 and been counted against Mr. McDonald’s contribution limit.
James P. Hoffa
November 24, 1998
Page 1
In Missassauga, Team Canada held an event at the Sheraton Four Points Hotel in late June, 1998. They reported two expenditures to Randy Doner, a supporter of the Team Canada Slate: $768.54 on June 22, 1998, and $133.45 on June 28, 1998. Mr. Doner lives near Missassauga and organized the event. The expenditures by the Team Canada Slate were reimbursements to Mr. Doner for the costs of the event.
Accordingly, this portion of the protest is hereby GRANTED in part; and DENIED in part. The Team Canada Slate is ordered to file amendments in their CCERs Nos. 11, 12 and 13 to reflect the debt owed by the Slate to Larry McDonald.
III. Allegations Regarding the Failure to Report Campaign Expenditures
The protester alleged that the Team Canada Slate failed to list any expenditures related to the production of the Slate materials published in the Teamster magazine or the production of campaign materials. The protester also alleged that the Slate failed to report expenditures related to the travel and lodging of Joe McLean, a candidate for regional vice-president on the Team Canada Slate, and Larry McDonald, a candidate for regional vice-president on the Team Canada Slate, during June, 1998. The Slate denied the allegations.
In CCER No. 10, Team Canada reported that an expenditure of $327.82 was made on August 16, 1998, to Access Editique for advertising in the International Teamster magazine. Robert Bouvier, the treasurer of Team Canada, said that the expenditure to Access Editique was for the production of materials for Team Canada for the special election issue of the Teamster magazine. No evidence was presented to indicate that this expenditure was improperly reported.
On its CCER No. 9, Team Canada reported an expenditure of $4,140 to Dinosaur Desktop Printing for printing services made on July 27, 1998. Mr. Bouvier stated that the payment to Dinosaur Desktop Printing was for the printing of flyers and other campaign literature. No evidence was presented to indicate that this expenditure was improperly reported.
On its CCER No. 9, Team Canada reported payments made to Messrs. McDonald and McLean for travel. The CCER lists two payments made to Mr. McDonald for travel purposes, one on July 25, 1998, and one on August 4, 1998, for a total of $2,246.68. It also lists a payment to Mr. McLean on July 27, 1998, for $1,943.21 for travel. Those expenditures appear to be reasonable based on the evidence of campaign events introduced by the protester. The protester made no allegations that the expenditure was unreasonable.
Accordingly, this portion of the protest is hereby DENIED.
James P. Hoffa
November 24, 1998
Page 1
IV. Allegations Regarding the Use of Teamster Canada Pins
The protester alleged that Team Canada distributed Teamsters Canada pins at its rallies and, because Teamsters Canada is an IBT affiliate and the pins are not generally available, the distributions of pins is an improper use of union resources, in violation of the Rules.
Team Canada denied violating the Rules. Mr. Bouvier stated that the Teamsters Canada buttons are available from Teamsters Canada for purchase by any Teamster member. His assertions were confirmed by Danny Slemko, an organizer for Teamsters Canada, and Mr. McDonald. He explained that Michael Crawford, the Director of Organizing for Teamsters Canada, and Mr. McDonald, a slate member and candidate for regional vice-president, purchased the Teamster Canada buttons using personal funds and distributed the buttons at campaign events. The Team Canada Slate has reimbursed both Mr. Crawford and Mr. McDonald for the payment for the pins and reported the reimbursement in their CCER No. 12. Mr. McDonald provided the Election Officer with copies of the invoices he received from Teamsters Canada and the check he sent to Teamsters Canada.
Under the Rules, union entities cannot make contributions to election campaigns. Article XII, Section 1(b). In the instant case, however, Teamsters Canada made no contribution to the Team Canada Slate. Teamsters Canada sold the pins to the Team Canada Slate for fair market value. It is common knowledge Teamsters Canada sells the pins to any IBT member for the fair market value. Therefore, Teamsters Canada did not make a campaign contribution in the sale of the pins to the Team Canada Slate and did not violate the Rules.
Accordingly, this portion of the protest is hereby DENIED.
When the Election Officer determines that the Rules have been violated, he “may take whatever remedial action is appropriate.” Article XIV, Section 4. In fashioning the appropriate remedy, the Election Officer views the nature and seriousness of the violation, as well as its potential for interfering with the election process.
The Election Officer orders the Team Canada Slate to file amendments to their CCERs Nos. 11, 12 and 13 reflecting the debt owed by the Slate to Mr. McDonald and to properly serve the other slates and independent candidates by November 30, 1998.
An order of the Election Officer, unless otherwise stayed, takes immediate effect against a party found to be in violation of the Rules. In re Lopez, 96 - Elec. App. - 73 (KC) (February 13, 1996).
James P. Hoffa
November 24, 1998
Page 1
Any interested party not satisfied with this determination may request a hearing before the Election Appeals Master within one (1) day of receipt of this letter. The parties are reminded that, absent extraordinary circumstances, no party may rely upon evidence that was not presented to the Office of the Election Officer in any such appeal. Requests for a hearing shall be made in writing and shall be served on:
Kenneth Conboy, Esq.
Latham & Watkins
885 Third Avenue, Suite 1000
New York, NY 10022
Fax: (212) 751-4864
Copies of the request for hearing must be served on the parties listed above as well as upon the Election Officer, 444 North Capitol Street, NW, Suite 445, Washington, DC 20001, Facsimile (202) 624-3525. A copy of the protest must accompany the request for a hearing.
Sincerely,
Michael G. Cherkasky
Election Officer
cc: Kenneth Conboy, Election Appeals Master