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Board of Elections and Ethics and
Citizens Committee for the DC Video Lottery Terminal Initiative
Consent Agreement
February 23, 2005

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Consent agreement Press release

DISTRICT OF COLUMBIA BOARD OF ELECTION AND ETHICS

IN RE: December 28, 2004, Submission of Supplemental Petition Sheets In Support Of The Video Lottery Terminal Initiative of 2004.

RESPONDENTS  The Citizens Committee for the D.C. Video Lottery Terminal Initiative;
Pedro Alfonso; Vickey Wilcher; Margaret Gentry; and Johnny Clinton Hyatt.

BOEE NO. 05-01

CONSENT AGREEMENT

This Consent Agreement is made and entered into this 23rd day of February, 2005, by and between the Citizens Committee for the D.C. Video Lottery Terminal Initiative ("the Committee"), Pedro Alfonso, Vickey Wilcher, Margaret Gentry and Johnny Clinton Hyatt (collectively "the Respondents") and the District of Columbia Board of Elections and Ethics ("the Board").

WITNESSETH:

WHEREAS, on August 3, 2004, the Board rejected the petition filed on July 6, 2004, in support of the Video Lottery Terminal Initiative of 2004 ("Initiative Measure No. 68") as numerically insufficient;

WHEREAS, the District of Columbia Court of Appeals affirmed the Board's rejection of Initiative Measure No. 68 on September 28, 2004, in a decision which was final and not appealable [Citizens Committee for the D.C. Video Lottery Terminal Initiative v. District of Columbia Board of Elections and Ethics, 860 A.2d 813 (D.C. App. 2004)];

WHEREAS, from December 21, 2004 through December 28, 2004, the Committee, or individuals purporting to act on behalf of the Committee, engaged in petition circulation activities, including advertising, soliciting and collecting signatures, and incurring expenditures in support of Initiative Measure No. 68;

WHEREAS, on December 28, 2004, Johnny Clinton Hyatt, purporting to be "an additional initiative proposer" for Initiative Measure No. 68, submitted 397 petition sheets in support of the Initiative and requested that the Board hold an election on the Initiative;

WHEREAS, Margaret Gentry resigned as Custodian of Records of the Committee, effective December 27, 2004; and Pedro Alfonso and Vickey Wilcher resigned as Chairperson and Treasurer, respectively, effective December 29, 2004;

WHEREAS, the Board issued an "Order to Show Cause" on January 6, 2005, because it appeared that the post-rejection petition circulation activities may have violated various provisions of the District of Columbia Election Act, the District of Columbia Campaign Finance Reform and Conflict of Interest Act, and applicable regulations, and compromised the integrity of the District of Columbia electoral process;

WHEREAS, by letter dated January 19, 2005, Johnny Clinton Hyatt and the Committee formally withdrew each of the supplemental petition sheets submitted on December 28, 2004 in support of Initiative No. 68;

WHEREAS, it appearing to the Board that the withdrawal of the supplemental petition sheets did not negate the activities that were the subject of the Board's "Order to Show Cause", the Board issued a "Supplement to Order to Show Cause" on January 26, 2005, accepting the Committee's withdrawal of the supplemental petition sheets, but ordering that the Board's "Order to Show Cause" remain in effect;

WHEREAS, the District of Columbia Initiative Statute provides for 180 days to collect signatures and submit the petition to the Board (D.C. Official Code §§1-1001.16);

WHEREAS, the Board's implementing regulations provide that, "[t]he proposer(s) of an initiative ... measure which failed to qualify for the ballot due to the numerical insufficiency of the petition must commence the respective process anew." D.C. Mun. Regs. tit. 3, §1012.3;

WHEREAS, the Respondents assert that the Initiative Statute gives a proponent a full 180 calendar days within which to submit the required number of signatures, even if the proponent submits some signatures prior to the expiration of the 180 day period;

WHEREAS, the Board maintains that the Initiative Statute and its implementing regulations preclude the filing of supplemental petition sheets once the petition has been filed with the Board, including where, as here, the initiative measure was rejected by the Board for numerical insufficiency;

WHEREAS, the District of Columbia Campaign Finance Reform and Conflict of Interest Act (D.C. Official Code §§1-1101.01 et seq.), through its implementing regulations, provides that an initiative committee must, in the absence of any debts and obligations, disburse remaining funds and file a final financial report within 60 days following the election at which qualification was sought, and that any contribution received after an election cycle, must be earmarked to indicate that the contribution is for the retirement of debt. D.C. Mun. Regs. tit. 3, §§3009.6 and 3400.4;

WHEREAS, the Respondents assert that their actions violated no provision of the District of Columbia Campaign Finance Reform and Conflict of Interest Act or any applicable implementing regulation; and

WHEREAS, the Board maintains that the Committee's receipt of in-kind contributions and expenditures to qualify Initiative Measure No. 68 for ballot access after the Board's rejection of the measure for numerical insufficiency and the affirmance of the Board's decision by the D.C. Court of Appeals violated the Campaign Finance Reform and Conflict of Interest Act and its implementing regulations.

NOW, THEREFORE, the parties, desiring to address the issues raised in the Board's January 6, 2005 "Order to Show Cause" and the January 26, 2005 Supplement thereto, without resort to formal administrative proceedings, hereby agree as follows:

The Respondents shall be jointly and severally liable to pay the sum of one . hundred thousand dollars ($100,000.00) by certified check, made payable to the District of Columbia Treasurer and delivered to the Executive Director of the District of Columbia Board of Elections and Ethics, no later than 5:00 p.m. EST on Wednesday, March 2, 2005;

The Respondents represent that, on Thursday, February 24, 2005, the Board will receive a certified check in the amount of $100,000.00 from Sidley Austin Brown & Wood LLP, 1501 K Street, N.W., Washington, D.C., 20005, counsel for Johnny Clinton Hyatt and the Citizens Committee for the D.C. Video Lottery Terminal Initiative;

The Respondents shall not circulate any additional petition sheets for signature in support of Initiative Measure No. 68;

The Respondents shall not receive any contributions, in-kind or otherwise, or make any expenditures in support of Initiative Measure No. 68, other than those associated with the payment of debt incurred in connection with that Initiative;

The Respondents shall not undertake any effort to revive any initiative dealing with the Video Lottery Terminal Initiative of 2004 or similar gaming initiatives without commencing the initiative process anew; and

Prior to the commencement of an initiative process concerning any measure relating to video lottery terminals or other gaming activity in the District of Columbia with which the Respondents are associated, the Respondents shall consult with both the General Counsel of the Board and the General Counsel of the Office of Campaign Finance concerning the laws and regulations applicable to the requirements for ballot access and campaign operations in the District of Columbia.

BY ENTERING INTO THIS CONSENT AGREEMENT, the Respondents do not admit that they violated any provision of the District of Columbia Election Act (D.C. Official Code § § 1-1001 et seq.) or the District of Columbia Campaign Finance Reform and Conflict of Interest Act (D.C. Official Code §§l-1101 et seq.).

THIS CONSENT AGREEMENT constitutes the entire agreement among the parties as it relates to the resolution of the issues raised by the Board's "Order to Show Cause", dated January 6, 2005, and the "Supplement to Order to Show Cause", dated January 26, 2005.

AGREED TO BY THE RESPONDENTS:

The Citizens Committee for the D.C. Video Lottery Terminal

By: Johnny Clinton Hyatt, Treasurer
George Jones, Esq., Counsel for Respondents Committee and Hyatt
Pedro Alfonso
Margaret Gentry
Vickey Wilcher
Francis D. Carter, Esq., Counsel for Respondents Alfonso, Gentry and Wilcher

AGREED TO BY THE BOARD:

Wilma A. Lewis, Esq. Chairman
Board of Elections and Ethics
Lenora Cole, Ph.D. Member
Charles R. Lowery, Jr., Esq., Member

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News Release from D.C. Board of Elections and Ethics

February 23, 2005
Contact: Bill O'Field, 727-2525

D. C. Board of Elections and Ethics Announces a Consent Agreement Regarding the Submission of Supplemental Petition Sheets in Support of the "Video Lottery Terminal Initiative of 2004"

District of Columbia Board of Elections and Ethics Chairman Wilma A. Lewis today announced that a consent agreement has been reached regarding the submission of supplemental petition sheets in support of Initiative Measure No. 68, the "Video Lottery Terminal Initiative of 2004", after the petition had been rejected by the Board and affirmed by the District of Columbia Court of Appeals.

On August 3, 2004, the Board rejected Initiative Measure No. 68 for containing a numerically insufficient number of signatures. The District of Columbia Court of Appeals affirmed the Board's rejection on September 28, 2004. However, on December 28, 2004, the Citizens Committee for Initiative Measure No. 68 filed a supplemental submission of 397 petition sheets in support of the Measure.

Based on the advertisement, solicitation, and collection of signatures, incurring of expenditures, and submission of supplemental petition sheets to the Board after the petition was rejected and the Board's ruling was affirmed by the District of Columbia Court of Appeals, the Board issued an Order to Show Cause on January 6, 2005, as to why the Board should not find that the Committee and/or individual respondents have violated the election and campaign finance laws of the District of Columbia.

The Board has entered into a consent agreement on this matter with the former and current members of the Citizens Committee for Initiative Measure No. 68 which will result in the payment of $100,000.00 to the District of Columbia. The consent agreement also provides that the current and former members of the Committee shall not circulate additional petitions sheets for signature in support of Initiative Measure No. 68; shall not receive any contributions or make any expenditures in support of the Initiative other than those associated with the payment of debt; shall not undertake any effort to revive the Initiative without commencing the process anew; and shall consult with both the General Counsel of the Board and the General Counsel of the Office of Campaign Finance concerning applicable laws and regulations should they commence another initiative process relating to video lottery terminals or other gaming activity in the District of Columbia.

"By entering into this agreement, the activities that were the subject of the Order to Show Cause will cease and desist," Chairman Lewis stated. "By this action, the Board believes that it has appropriately addressed the issues surrounding this matter. The actions taken by the Board emphasizes its commitment to enforce the District of Columbia election and campaign finance laws and maintain the integrity of the electoral process in the District of Columbia."

The consent agreement is attached.

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