(St. Paul…) Senate Republicans filed an ethics complaint questioning Deputy Majority Leader Jeff Hayden’s (DFL-Minneapolis) actions after an audit and subsequent media reports revealed he used threats of withholding state aid to bully the Minneapolis School Board, and may have used his elected office for personal financial gain.
“I am shocked that a sitting State Senator would dare to threaten his local school board and use his elected office as a vehicle for extortion. Minneapolis school kids shouldn’t have to suffer a loss of state funding because their Senator is a bully. Those allegations alone are worth an investigation,” said Republican Leader David Hann (R-Eden Prairie). “Senator Hayden must also answer serious questions about how he and his family members may have misused taxpayer money meant to help the poor by accepting all-expense-paid trips to lavish resorts and cash allowances. It’s important to taxpayers that we get to the bottom of these accusations, and I’m counting on members of Senator Hayden’s Democratic party to set aside their political alliances and work with Republicans to move this investigation forward.”
“This is another example of the arrogance of the Democrats in Minnesota, and especially Minneapolis, where one party control rules the day. They need to be held accountable,” added Senator Dan Hall (R-Burnsville).
The ethics filing is comprised of two distinct complaints. The first is that Senator Hayden used his influence as a State Senator and Deputy Majority Leader to unduly influence the Minneapolis School Board to approve a $375,000 contract to an organization that financially benefited his friends and family members. The second is that Senator Hayden participated in the misuse of federal, state, and local funding by accepting trips and other perks such a per diem as a member of the Board of Community Action of Minneapolis.
The complaint asks that the Subcommittee on Ethical Conduct investigate the financial relationship between Senator Hayden, his family and CSI, as well as the specific benefits such as per diem, lodging, golf and spa treatments Senator Hayden and his wife received from Community Action of Minneapolis. Pursuant to Senate Rule 55.4, the subcommittee must meet within 30 calendar days after receiving a complaint and either make a finding of no probable cause, vote to defer action until a certain time, or proceed with its investigation. The complaint is signed by Republican Senators Michelle Benson, Roger Chamberlain, Dan Hall, David Hann, Eric Pratt, and Dave Thompson.
The full text of the complaint follows.
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COMPLAINT
TO THE
SUBCOMMITTEE ON ETHICAL CONDUCT
REGARDING THE ACTIONS
OF
SENATOR JEFF HAYDEN
Senators David Hann, Michelle Benson, David Thompson, Eric Pratt, Roger Chamberlain and Dan Hall, each being first duly sworn, state and allege under oath the following based upon information and belief:
Complaint 1: Senator Hayden used his influence as a State Senator and Deputy Majority Leader to unduly influence the Minneapolis School Board to approve a $375,000 contract to an organization that financially benefited his friends and family members.
- On March 11, 2013, Senator Jeff Hayden authored SF 1214, a bill appropriating $350,000 for a grant to the Minneapolis School District for a community engagement and empowerment project with Community Standards Initiative (CSI) to reduce the achievement gap.
- According to a StarTribune article dated September 12, 2014 (North Side school effort called failure), Senator Hayden and Senator Bobby Jo Champion “threatened to withhold state aid if Minneapolis school officials did not approve the contract.”
- According to the StarTribune, the Minneapolis School District agreed to contract with CSI on their own, without the legislature earmarking specific funds for this purpose.
- The Minneapolis School Board subsequently entered into a $375,000 contract with CSI in May of 2014 without a competitive bid process. The District made the first payment to CSI in May for $46,875.
- Hayden’s father, Peter Hayden is known to be associated with and possibly employed by Community Standards Initiative (CSI). A StarTribune article dated August 19, 2014 (Mpls. cops fall short on diversity) quoted Peter Hayden as “part of the Community Standards Initiative, a group seeking more diversity.”
- Hayden has not denied his role in pressuring the Minneapolis School District to award a contract to a group his father is involved with and possibly receiving money from, saying only that the idea he and Champion bullied or threatened the school district is “inappropriate language to use.”
- The Minneapolis School Board recently announced CSI has yet to meet its goals and is not on track to meet its obligations. CSI will not receive additional funds if they are unable to fulfill the terms of the contract.
- Senate Rule 56 provides that members shall adhere to the highest standard of ethical conduct as embodied in the Minnesota Constitution, state law and these rules.
- Senate Rule 56.3 provides that improper conduct includes conduct that violates a rule of the Senate, violates accepted norms of Senate behavior, that betrays the public trust, or that tends to bring the Senate into dishonor or disrepute.
- Senate Rule 56.4 provides that “members of the Senate shall disclose potential conflicts of interest in the discharge of senatorial duties as provided in Minnesota Statutes, section 10A.07.”
- Minnesota Statutes 10A.07 provides that a public official who in the discharge of official duties would be required to take an action or make a decision that would substantially affect the official’s financial interests or those of an associated business, unless the effect on the official is no greater than on other members of the official’s business classification, profession, or occupation, must disclose that action or decision and the nature of the potential conflict of interest to the presiding officer of their respective body.
- Hayden’s Statement of Economic Interest filed with the Minnesota Campaign Finance and Public Disclosure Board lists “Non-Profit Administrator” as his profession.
- Hayden misused his influence as a State Senator and Deputy Majority Leader to unduly influence the Minneapolis School Board to approve a $375,000 contract to an organization that financially benefited his friends and family members, and possibly himself.
- There is no evidence Senator Hayden disclosed his conflict of interest in CSI to the President of the Senate or the public.
- Hayden’s conduct violates accepted norms of Senate behavior, betrays the public trust and brings the Senate into dishonor or disrepute.
- It is your complainants’ belief that based on the above information Senator Jeff Hayden violated Senate Permanent Rule 56.
Complaint 2: Senator Hayden participated in the misuse of federal, state and local funding by accepting trips and other perks such as per diem as a member of the Board of Community Action Minneapolis.
- Hayden serves as a board member for Community Action Minneapolis. Senator Hayden appointed his wife, Terri Hayden, to serve on the board in his place.
- An August 7, 2014 audit of Community Action Minneapolis by the Minnesota Department of Human Services found that board members provided inadequate oversight of operations and that board members and their spouses received undocumented or unallowable reimbursements for lodging, food, spa treatments and golf.
- The audit by Human Services also found that board members received per diem payments, which are not established as authorized or allowable payments in the board by-laws, except for reimbursement of expenses for low-income board and committee members.
- Barb Goodwin (DFL-Columbia Heights) told the StarTribune on September 23, 2014 (Leaders intensify criticism of Community Action of Minneapolis) Senator Hayden “had a fiduciary responsibility and he wasn’t watching the money. That’s a bad thing.”
- Senate Rule 56 provides that members shall adhere to the highest standard of ethical conduct.
- Senate Rule 56.3 provides that “improper conduct includes conduct that violates a rule of the Senate, violates accepted norms of Senate behavior, that betrays the public trust, or that tends to bring the Senate into dishonor or disrepute.”
- Hayden’s acceptance of perks and per diem as a member of the Community Action Minneapolis Board violates accepted norms of Senate behavior, betrays the public trust and brings the Senate into dishonor or disrepute.
- It is your complainants’ belief that based on the above information Senator Jeff Hayden violated Senate Permanent Rule 56.
Your complainants ask that the Subcommittee on Ethical Conduct investigate the details of this matter. Specifically, the Subcommittee should investigate the financial relationship between Senator Hayden, his family and CSI. The Subcommittee should also investigate the specific benefits such as per diem, lodging, golf and spa treatments Senator Hayden and his wife received from Community Action Minneapolis.
Your complainants respectfully request that all hearings on this matter be open to the public.
Your complainants ask that the Subcommittee on Ethical Conduct find that Senator Jeff Hayden violated Senate Permanent Rule 56 and Minnesota Statutes 10A.07and that it recommends such disciplinary action as the Subcommittee finds appropriate.
Date: September 24, 2014
Senator David Hann
Senator David Thompson
Senator Eric Pratt
Senator Dan Hall
Senator Michelle Benson
Senator Roger Chamberlain
Subscribed to, and sworn before me, a notary public, on September __, 2014