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Minneapolis, MN, July 9, 2010 -- Candidate-journalist Bob Carney Jr. will hold a news conference Tuesday, July 13, 2010, to call on Minnesotans to go to a public campaign event of his opponent in this year's Minnesota Republican primary for Governor: Tom Emmer, the endorsed Republican candidate.

"Mr. Emmer's event is scheduled for Bastille Day. I'll bring some bags of Ramen Noodle Soup to the 'town hall event' -- just in case Mr. Emmer doesn't bring cake," Carney said.

Carney's Tuesday July 13th news conference is scheduled for 11:30 to 12:30 in Room 125 at the Capitol. There is another news conference scheduled for 10:00 to 11:30 -- Carney plans to start his news conference immediately after the first one is done. The Senate Sergeant at Arms office has told Carney this is permitted. If Carney's news conference does start early, he will remain until 11:30, and will substantially repeat what was said in the opening statement.

Carney plans to hold events immediately before and after the July 14th Emmer "town hall meeting" -- on an area of public land near Emmer's event. Carney also plans to cover and investigate Emmer's "town hall meeting" event as a journalist, and will seek to ask Mr. Emmer questions. Freedom of the press is both a Federal and Minnesota Constitutional right, and Carney plans to rely fully on this Constitutional right. "However, if Mr. Emmer refuses to answer my questions -- or ignores me -- I'll just videotape that, and will not be discourteous or disruptive. Mr. Emmer's Constitutional right to free speech includes his right to be silent. Maybe some of the other journalists might want to ask him why he refuses to answer my questions, as he as refused before," Carney said. Carney will include video from the July 14th Emmer and Carney events in an episode of Tom and me, Carney's video series reporting on this year's Minnesota Governor's race. That series includes specific advocacy for Carney's candidacy. Carney believes this is clearly permissible based on fast-emerging law on political campaigns and free speech rights. "My position is simple: if non-existing, non-person Corporations can do it, I -- as an existing person and a non-corporation -- can do it," Carney said.

Tom and me is on youtube.com, and can be viewed at Carney's news site, www.republicancontract.com.

Emmer responds to "Waitergate"

Emmer's web site states: "Tom Emmer announced he will hold a town meeting with servers in the hospitality industry to listen to their concerns regarding wages, tips, taxes and health care... 'This week we met with business owners and next week we will listen to the employees, especially servers concerned about the tip credit issue. I'm looking forward to a robust discussion [Emmer said].'" The Emmer web site states this is a public event. The Star Tribune reported July 8th: "[Emmer's] spokesman Chris Van Guilder says the campaign won't screen the attendees."

The "town hall meeting" is to be from 3:00 to 4:30 Wednesday, July 14th,
at the Ol' Mexico Restaurante and Cantina, 1754 Lexington Avenue North,
in Saint Paul. A Ramsey County online survey/plat map of the site of the Emmer "town hall meeting" is at the right, showing a strip of public land on which Carney's events can be held. Carney has verified in advance with the Saint Paul police department that people are free to stand on this public land.

This accords with the Federal Constitution's First Amendment, which states (emphasis added):

"Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances."

If there is an unusually large turnout, Carney will first attempt to speak with the Emmer campaign and/or the Ol' Mexico Restaurante and Cantina about use of the parking lot, but will call 911 if this appears necessary because there are too many people to be accommodated by the strip of public land Carney has identified. In the event of rain, relocation to a sheltered location will be proposed for Carney's event after the Emmer "town hall meeting."

Emmer derailment raises doubts -- can Mr. Emmer get back on track?

Emmer's planned "town hall meeting" is in response to a derailment of Mr. Emmer's Hillary-style "listening tour." The derailment occurred July 5, 2010, at the Eagle Street Grille, when Mr. Emmer called for a "server tip credit."

Carney was covering the Emmer campaign as a candidate-journalist, and witnessed the Emmer derailment. Carney has posted on www.youtube.com an unedited ten minute video, commencing with Mr. Emmer's first comments on the "server tip credit." This is believed to be the first video to have surfaced that shows the Emmer derailment in its entirety. The video may also be viewed at Carney's news web site, www.republicancontract.com (third video down on the home page).

The July 5th Emmer derailment commenced when Mr. Emmer said:

"I hear a story today where you have servers, people who are working here, they've been provided a job, because they are able to collect a minimum wage, which we all want to make sure people have good living wages, but they are required by law to receive a certain wage, well guess what, with the tips that they get to take home there are some people who are earning over $100,000 a year. More than the very people who are providing the jobs and investing not only their life's savings but their family's future. That, something that has to be done about that... I didn't realize that the servers were taking home as much as six figures. I knew that there was an imbalance, but this isn't my business. I mean, I've talked to others who have been very adamant, you know, restaurant owners... I hear it mostly here in the Twin Cities, and I didn't realize that it could be that great, that somebody could be taking home well over $100,000, as a server."

Emmer went on to consider repeal of the minimum wage law, but concluded a "server tip credit" would be preferable, and that repeal of the minimum wage would raise issues of Federal law. This exchange occurred at the end of Carney's videotape of the Emmer derailment:

Question: "Would you suggest 'repeal the minimum wage law?'

Emmer: "Well, I don't know that you can do that. We talked about that before, not with you. I think you gotta look at what we're doing, you gotta talk to these... that's why it's probably more in line with the tip credit that you gotta be talking about. Plus, you know Bill, you got Federal law."

Patrick: "Any more questions."

Carney: "Question on Federal law, {crosstalk} Do you still favor, 3738?"

Emmer ignored Carney's question, which referred to House File 3738, a bill Mr. Emmer coauthored earlier this year, for a Minnesota Constitutional Amendment. According to the language of this Amendment, all Federal law would initially be void in Minnesota, subject to minimum conditions of ratification by a two-thirds vote of each House of the State Legislature, and signing by the Governor. Carney, in his capacity as journalist, attempted repeatedly to ask Emmer at the Eagle Street Grille derailment event about Emmer's current position on HF 3738. Emmer's refusals to answer Carney, and his use of "sports style blockers" to distance himself from Carney, are recorded in Tom and me -- episode two. All Tom and me episodes are posted to youtube.com, and are available at Carney's news site, www.republicancontract.com.

Excerpts from Carney's videotape of Emmer's July 5th "derailment event" at the Eagle Street Grille, selected excerpts of news coverage indicating factual discrepancies regarding servers reported to have earned $100,000 or more at the Eagle Street Grille, and the language of Emmer's HF 3738, all follow this news release.

<end>

Excerpts from Tom Emmer's 7/5/10 "Waitergate" news event at the Eagle Street Grille
 

Opening statement:
 

Emmer: "I hear a story today where you have servers, people who are working here, they've been provided a job, because they are able to collect a minimum wage, which we all want to make sure people have good living wages, but they are required by law to receive a certain wage, well guess what, with the tips that they get to take home there are some people who are earning over $100,000 a year. More than the very people who are providing the jobs and investing not only their life's savings but their family's future. That, something that has to be done about that. There's another issue that was very interesting to hear about Joe. This health issue, the health care reform bill coming out of Washington. We've heard from more business owners that they are in a holding pattern..." [with respect to hiring].

------------------------

Emmer: "This is government acting at its worst, when its telling people how to run their business and what they're going to be able to do. Government again can only, what's the word, can only inhibit business, can only keep it from growing as opposed to creating jobs. Right now we've got too much of it guys. We got to pull Government back. We got to put it in the proper perspective, to the people that are trying to create business, the entrepreneurs, like these two great raiders, Kevin and Joe..."

Ed note: "Raiders" is an apparent reference to Cretin-Derham Hall athletic teams.

------------------------

Emmer: "This is what success is all about -- allowing people to create the opportunities, for themselves, their families and the employees, the great people in Saint Paul and surrounding communities. We got to get Government back to answering, and serving you, so that you're able to do that, as opposed to Government telling you what you can't do, or create through policies, whether they be tax policies, or other employment regulations, telling you what you can't do ...

-------------------------

Emmer: "So thank you all for being here, I don't know how you want to handle this Patrick,

Patrick: "{inaudible}got time for a few questions, want to ask a couple questions?"

--------------------------

Emmer: "Because I go out on Main Street, and I talk about things like "you should be eliminating the Met Council", I give very specific things that you should be doing. People on Main Street understand it very clearly. Joe and Kevin are livin' it every day. They get it when I talk to them. But apparently I've got to do a better job of explaining it to some folks in the media, that when we talk about specifics, it's not just about raising taxes any more -- it's how you make Government better for these people, so that when they're calling up they're getting the resources that they need, as opposed to: "well, you gotta fill out a couple extra forms, you're going to have to do it at the state, county and local level all at the same time. We didn't even get into that"...

---------------------------

Question: "What would the state have to do with tip credits?"

Emmer: "I think you've got to give these guys the opportunity. There has to be a tip credit. These guys should be getting a tip credit for the tips that their servers are collecting on a daily basis."

Question: "How would that work?"

Emmer: "Well, we'll talk about... and I think I want to hear from them, how it should work. But again, that's, ah, here's the difference: I understand that perhaps people are used to... the politicals that come down and say 'this is what we're gonna do' -- they say 'for you', but what they're really saying is 'this is what we're gonna do to you'... Why don't we start talking to the business owners on Main Street, and say 'how can Government serve you better? What should Government be doing? What's frustrating your ability to get things done and create more opportunity? You just heard one, you've got a full work week that is devoted to filling out paperwork for state, county and local officials. Clearly there's a problem there, I think... We're prepared to go look at what the problem is, and try to fix it, so that they can operate, while others would prefer just to say 'we need more revenue.'"

-----------------------

Questioner -- "What's the question?"

Emmer: "He's asking about the S-corps. Because I was asking questions about how this business is formed? You know you've got 80 percent I think of the people in Minnesota work for companies that have less than 200 employees. I think this business would fall into that category. You've got people out there that are saying 'we've got to raise taxes on the quote-unquote 'wealthy'. But they don't have any concept of what that means when you're talking about a closely held corporation. They don't understand that, you know, when you're talking about $200,000, or on some plans I've seen, as far down as $134,000 gross, suddenly qualifies you as a wealthy individual in the State of Minnesota -- well guess what, I think Kevin and Joe would tell you, you start putting taxes, you qualify this business, this closely held business, as wealthy, when they're pumping everything they've got back into the business -- when I asked Joe 'how many days do you get off, he says: "well I might get Sundays off, I might get Sundays off to spend with my family, but I'm basically the baker, the butcher, and the candlestick maker," Kevin, you and I didn't talk but I'm guessing it's the same for you. I don't think the policy makers that are proposing these things -- if they truly believe in them -- I don't think they understand the ramifications when you throw that pebble into this pond, where those ripples are going to go. Because it's not a matter of being wealthy -- it's a matter of trying to create opportunity, and yes, we're talking about businesses like this."

--------------------------

Question: "What did you learn from Joe -- what about change to state law?"

Emmer: "Well I didn't realise, Bill that's a great question, but I didn't realize that the servers were taking home as much as six figures. I knew that there was an imbalance, but this isn't my business. I mean, I've talked to others who have been very adament, you know, restaurant owners, I don't know if you call them 'restauranteurs,' but I mean, I've heard this from others that are running small businesses all around the metro area, I haven't talked to them as much outstate, maybe Duluth and Moorhead, but the smaller towns, I hear it mostly here in the Twin Cities, and I didn't realize that it could be that great, that somebody could be taking home well over $100,000, as a server."

--------------------------

Question: Isn't that just the free market working here? Being the benefits of hard work?"

Emmer: "You know Brian, the answer to that would be 'yes', if you didn't have a minimum wage law. Then you could say that it was the free market working, because then they could hire employees at a living wage -- taking into account the tips that they're taking home, but what we've done in essence is set the floor as to what they must get paid, regardless of what they get to take home in tips, and we love the people that are servin'. But you know, you could kill the goose that lays the golden egg, which is the owner of the business, they're gonna end up suffering as well. I mean, if these guys can't continue to operate, then they [the servers] can't continue to take advantage of the opportunity. So you gotta keep both in mind, and I would agree with ya, it's the free market only up until you start talking about the minimum wage law."

Question: "Would you suggest 'repeal the minimum wage law?'

Emmer: "Well, I don't know that you can do that. We talked about that before, not with you. I think you gotta look at what we're doing, you gotta talk to these... that's why it's probably more in line with the tip credit that you gotta be talking about. Plus, you know Bill, you got Federal law."

Patrick: "Any more questions."

Carney: "Question on Federal law, {crosstalk} Do you still favor, 3738?"

Emmer ignores question.
 

Ed. note: Emmer is the co-author of a proposed Minnesota Constitutional amendment, HF 3738, that would void all Federal law in Minnesota, including the Federal minimum wage law.
 

--------------------------

Selected excerpts of news coverage indicating factual discrepancies regarding servers reported to have earned $100,000 or more at the Eagle Street Grille
 

by Martin Moylan, Minnesota Public Radio, July 5, 2010

Emmer said some well-tipped Eagle Street Grille employees are among those making more than $100,000 a year. But one of the grille's owners said only a "couple" of his 45 or so servers make that much in a good year.

-----------------------------------------------------------
 

by Annie Baxter, Minnesota Public Radio, July 6, 2010

Emmer said the full minimum wage is not necessary when some servers at the Eagle Street Grille are pulling in $100,000 a year. One of the owners of the restaurant later told MPR News that a few employees there earn that much.

For many, it's hard to imagine that the person waiting on your table is that well paid.

"Statewide, the current estimate of the median wage for wait staff is $9.36 an hour," says state labor market analyst Steve Hine with the Minnesota Department of Employment and Economic Development. That translates into about $19,500 a year for full-time workers.

The wage is higher in the Twin Cities, but not by much. The median hourly wage in Minneapolis and St. Paul would translate to roughly $22,000.

That means half of the roughly 29,000 Twin Cities servers make less, half make more. Could they make a lot more? It's possible, but Hine says the numbers do not suggest that many servers pull in extremely high wages.

Hine says only 10 percent of the state's servers earn more than $17.64 an hour or $37,000 a year.

"So 4,500 of them earn more than that. So that gives you a measure of the top end of the wage distribution," he says.

-----------------------------------------------------
 

From Jon Tevlin's Star Tribune Column, July 6th:

I shared my math with [Kevin] Geisen and Joe Kasel, the other owner.

At first, Kasel said Emmer's quote was "manipulated" by the media, then changed that to "misquoted."

"He didn't say anything wrong," said Kasel.

(Star Tribune reporter Jackie Crosby stands by the quote, which was recorded.)

"I don't want people thinking we have people making $100,000 a year here, because we don't," said Kasel, who had to call his 29 employees that morning to prevent a mutiny. "No way, shape or form did I [tell Emmer] anyone made $100,000."

Kasel said rather he told Emmer that a couple of his employees do well, and that "If all the pieces fell in the right place" they could make $100,000. But not a server, he said.

"But don't put any numbers in your story," said Kasel. "I don't even make that much."

The owners said they have loyal employees who earn a good living, but that the tip credit change would save them more than $30,000.

One longtime bartender familiar with Eagle Street said that based on prices and clientele, he'd be surprised if anyone who relies on tips at Eagle Street makes much more than $50,000.

----------------------------

Following is the text of HF3738:
 

H.F. No. 3738, as introduced - 86th Legislative Session (2009-2010) Posted on Mar 25, 2010
 

House Authors Drazkowski ; Anderson, B. ; Emmer
 

1.1 A bill for an act

1.2 proposing an amendment to the Minnesota Constitution; affirming the

1.3 sovereignty of Minnesota citizens.

1.4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 Section 1. CONSTITUTIONAL AMENDMENT PROPOSED.

1.6 An amendment to the Minnesota Constitution is proposed to the people. If the

1.7 amendment is adopted, a section shall be added to article I, to read:

1.8 Sec. 18. Citizens of Minnesota are sovereign individuals, subject to Minnesota law

1.9 and immune from any federal laws that exceed the federal government's enumerated

1.10 constitutional powers. A federal law does not apply in Minnesota unless that law is

1.11 approved by a two-thirds vote of the members of each house of the legislature and is

1.12 signed by the governor. Before voting to approve a federal law, each legislator must

1.13 individually affirm that the legislator has read the federal law and understands it. Citizens

1.14 of Minnesota enjoy inherent, natural, God-given rights as reflected in the Bill of Rights

1.15 of the United States Constitution and the Minnesota Constitution. Minnesota citizens

1.16 have the right to seek redress for any alleged violation of these rights committed by the

1.17 state of Minnesota exclusively through a jury trial in a Minnesota court and through

1.18 enactment of a change in Minnesota law.
 

1.19 Sec. 2. SUBMISSION TO VOTERS.

1.20 The proposed amendment must be submitted to the people at the 2010 general

1.21 election. The question submitted must be:

1.22 "Shall the Minnesota Constitution be amended to affirm the sovereignty of

1.23 Minnesota citizens by requiring two-thirds legislative approval before a federal law

2.1 becomes effective in Minnesota, and by ensuring the right of citizens to seek redress for

2.2 any alleged violation of constitutional rights?
 

2.3                                                                                                                   Yes .....

2.4                                                                                                                   No ..... "