December 6, 2022 SENT VIA EMAIL AND REGISTERED MAIL Dan MeLean File No, 2021-0077 a Ena; re Dear Mr. McLean: ‘Subject: Notice of Penalty On September 20, 2022, | sent you a Notice of Preliminary Investigation Results. Request for Response (NPIR) and put you on nates of my preliminary fndings with respect othe allegation thal you have acted in a manne that has contravened ‘section 147.2(5) Limitations on contrbutions under the Local Authonties Election ‘Act (LAEAY, In my September 20, 2022, NPIR, | invited you to respond to ths allegation and provide any information you believed may be relevant. | asked you for a response by ‘October 24, 2022 | understand an attempt was made to provide you with full disclosure ofthe Investigation Report, but that this was not achieved until October 21, 2022. In ight of this, an extension was granted for you to respond by November 4, 2022 | have now had a chance to consider your November 7, 2022, Paragraphs tha follow set out my final finings and decision wi allegation, having also taken your response into consideration. Inassessing the totality ofthe information, | find, on a balance of probabil you breached sectiont47.2(5) Accepting a prohibited contribution Determination | have inferred the following information from your response of November 7, 2022: 1. You acknowledged that you gid not have anything more to say after reviewing the investigation report and disclosure package. 2. You acknowledged thatthe investigation was thorough, 3. You mentioned that you never thought of holding the Stampede breakfast for ‘monetary gain to your poitical eampaign, 4. You mentoned you thought this was an oppunty te help stugging Page 1 of 55. You mentioned that you did seek legal advice to ensure compliance with the LAEA, however, you did mention that you should have contacted Elections Alberta directly During this investigation, the folowing findings have been made and itis reasonable to believe that: 1. The business that were contacted and responded confirmed what they donated and their values, as best they could recall 2, There were no promises made and it was their understanding thatthe contributions were for a community event and Not for a contrbution toward ‘your poitical campaign. 3. Businesses also felt twas a good venue for free marketing and ‘networking opportunities. 4. There was ample evidence to suggest thatthe Stampede breakfast was a ‘campaign event, and this was also acknowledged by your campaign manager Mr. Patrick Poilievee, ‘5. You apologized to investigators and stated that you were sory if you blurred any of the lines and that you wanted to remain within the parameters of the legislation 6. You expressed your concerns with Third Party Advertisers (specifically Calgary's Future) and their attempts to “buy he election’ with their slate of candidates, 7. You acknowledged that your mistake, if any, was in good faith Based on the evidence described in the NPIR dated September 20, 2022, and after hhaving considered your email dated November 7, 2022, Ifind, on a balance of ‘probabilties that on or about July 10, 2021, you breached section 147.2(6) ofthe ‘Local Authorities Election Aci. ‘Administrative Penalty In my September 20, 2022 NPIR, | brought your attention to the range of penalties, for which | have authority to impose, the statutory factors that | must consider and the framework that | would apply to determine the appropriate administrative penalty, Many, | am guided by statue, in adstion to various Court decisions, to consider seven ‘specific factors in determining any administrative penalty. These factors can be found in section 193(4) of the LAEA. To ensure the fair, measured, and systematic application of monetary penalties, use the attached penalty framework (Appendix) to.guide my decisions. ‘The maximum penalty for commiting a violation of section 147.2(6) ofthe LAEA, is ‘$5,000, Using the penalty framework, the baseline penalty for this offence is $500, Page 2 of §| have considered the seven specific factors, as described in section 193(4) ofthe LAEA, to adust your penalty 8 follows: 1. The severty ofthe contravention: 4) You accepted prohibited contributions toward a campaign event. In ‘addition, set-promotion as a candidate during the event, including the distribution of prizes for attendance, would appear to give favor tothe candidate ) Forthese reasons, l have applied a 10% increase to your penalty amount. 2. The degree of wilfuiness or negligence inthe contravention: a [ind that your conduct was unintentional, you were entirely forthcoming during your interview and your response to the NPIR, b Itis my determination that a factor inthis violation was your Imsinterpretation of the relevant section of the LAEA. ©) You stated that you acted in good faith in accepting contributions ‘rom businesses. 4) For these reasons, ! have not made any adjustment to your Penalty amount. 3, Whether or not there were any mitigating factors relating tothe contravention: 2) You were cooperative and forthcoming during the investigation. ») You indicated that, in hindsight, you should have contacted Elections: Alberta directly for advice. (©) For these reasons, | have applied a 10% decrease to your penalty amount. ‘4. Whether or not steps have been taken to prevent reoccurrence of the contravention: 4) Lam unaware of any steps you may have taken to prevent this ‘occurrence from reoccurring, ') Fortis reason, have not made any adjustment to your penalty amount ‘5. Whether or not the individual has a history of non-compliance: 4) There is no information before me to suggest you have commited a similar violation in the past Page 3 of 52) For this reason, | have not made any adjustment to your penalty amount. 6. Whether or not the individual reported the contravention on discovery ofthe comtravention 4) You did not report this contravention to my Offic, ) For tis reason, | have not made any adjustment to your penalty amount, 7. Any other factors that, in the opinion of the Election Commissioner, are relevant: 2) | acknowledge that you take full esponsibility fr the violation ») also note that you were fully cooperative during the investigation, ©) For these reasons, | have not made any adjustment to your penalty amount. Penalty Summary [Administrative Penalty Calcuato Baselire calculation 4. Severity of contravention 2 Degree of wilfulness or negligence 3. Mitgating factors 4, Steps taken to prevent reoccurrence 5 History of non-compliance 6. Contravention reported on discovery 7. Otter relevant factors (+/ Total: Administrative Penalty Applying the above baseline calculations and applicable adjustments, for ‘contravening section 147-26) of the LAEA, | assess you, Dan McLean, an administrative penalty of $500, Pursuant to section 193 of the LAEA, | require you, Dan McLean to pay $500 on, or before, January 20, 2023. Payment must be made by cheque or money order, payable to the "Government of Alberta’, and submitted directly to my Office You have the right to appeal this administrative penalty, or the amount of the penalty, ‘to the Court of King's Bench, as outlined in section 195 ofthe LAFA An application ‘for appeal of this decision must be fled with the Court of King’s Bench within 30 days from the date this Notice of Penalty was served. A copy of the application must be served an the Election Commissioner nat less than 30 days before the appeal is to be hear, Page 4 of §‘The outcome ofthis investigation willbe published on the Elections Alberta website. It you require darifcation or assistance, please, conta Director of Compliance and Enforcement STD © 2 Sincerely, Me Gale Glen Rester Chief Electoral Officer and Elecon Commissioner as Enclosures: Appendix Page 5 of 5‘Appendix A Penalty Calculation Framework stage istrative Pana elses Fone Base 7 Comupt Practices 10% 7 Financial Reporting 10% 3 Exceeding contin oF expenee Us 10% 1 Faire To Register 10% 5 Erection Advertsing 1% Stage 2 at nisea Panal Ad Adjusted according 1 statutory facts contsned in ‘8. 51.01(4) EFCDA, s.153.1(3)(a}(g) Election Act, or 1984) ofthe AEA 3: The svar fia conraventon Ww BR B Tether ay dogroo of witness or negigence the | (SRT contravention? & ra rare ay nigtng Tacos relating oo ORB contravention? Ware lps Takeo prevent eocturence ofthe RUBE contravention Dos the Subject ave astro ran-conplance? | 0) STO 2B Did ha Sibjet report the cntravenon on isovary othe | (5% to 2H contravention? Any other factors CRs Commissioner are relevant Sppropt, pending on arvestgetve nfomaon ond ony miiaing oe dograv8ingcrmetances Revised date Oct 6, 2020,