Memo To 2022 Candidates Who Were Unsuccessful In The Primary Election

Posted in Main

August 18, 2022

MEMORANDUM

TO:     2022 Candidates Who Were Unsuccessful In The Primary Election

FROM:     Kristin E. Izumi-Nitao, Executive Director
Campaign Spending Commission

SUBJECT:     Important Information and Reminders

The Hawaii Campaign Spending Commission (“Commission”) would like to recognize your efforts in the 2022 Primary Election to serve the State of Hawaii and/or its counties.  The following guidance is to assist you with understanding what your next steps are as a candidate.

I.  REPORTING REQUIREMENTS

The next report is the Final Primary Report which is due no later than 11:59 Hawaiian standard time on Friday, September 2, 2022 covering the period from July 30, 2022 through August 13, 2022, followed by the Final Election Period Report which is due no later than 11:59 p.m. Hawaiian standard time on Thursday, December 8, 2022 covering the period from August 14, 2022 through November 8, 2022 (unless you informed the Commission that you would not spend or receive more than $1,000 for which your reporting period would then be from January 1, 2022 through November 8, 2022).  For partial public funding candidates, you must also file the Expenditures of Public Funds Report by Friday, September 2, 2022.  Failure to timely file these reports will likely result in fines.

If your committee has a surplus or deficit, you must continue to file reports on the candidate filing system until the surplus has been spent (see Part II) or the deficit has been cleared and a request to terminate has been approved by Commission staff (see Part IV).  Please contact the Commission to obtain the applicable reporting schedule or visit our website at ags.hawaii.gov/campaign after the November 8th General Election to obtain the applicable reporting schedule for reports due beyond the December 8, 2022 deadline.

If you currently have no surplus or deficit and would like to terminate your registration with the Commission, you can file the Final Election Period Report (and the Expenditures of Public Funds Report for partial public funding candidates) early and follow the steps in Part IV for terminating your registration.

II.  USE OF CAMPAIGN FUNDS IF YOU HAVE A SURPLUS

With the exception of partial public funding candidates who must return any and all unused public funds to the Commission by September 2, 2022, any surplus funds remaining in your campaign account after the August 13th Primary Election (after paying all outstanding expenditures and repaying loans) must be expended by August 13, 2023 unless a new Organizational Report is filed on or before August 13, 2023.  Filing a new Organizational Report typically means that you intend to run in the next subsequent election (see Part III for more information).  Campaign funds may also be used as provided in Hawaii Revised Statutes (“HRS”) §11-381 or returned to contributors until one (1) year from the date of the election for which the campaign funds were received.  Funds that are not used or returned to contributors shall escheat to the Hawaii Election Campaign Fund (“HECF”).  See, HRS §11-384(d).

Based upon the foregoing provisions and our administrative rules, you may therefore use your campaign funds to run in the next subsequent election or spend it on any of the following by August 13, 2023:

  1. Pay back loans or any unpaid expenditures;
  2. Return contributions to contributors (see, HRS §11-384(d));[1]
  3. Donate to any community service, educational, youth, recreational, charitable, scientific, or literary organization up to no more than twice the maximum amount that one person may contribute to your office (see, HRS §11-381(a)(3));
  4. Donate to any public school or public library up to no more than twice the maximum amount that one person may contribute to your office (see, HRS §11-381(a)(4));
  5. Award scholarships to full-time students attending an institution of higher education or a vocational education school in a program leading to a degree, certificate, or other recognized educational credential up to no more than twice the maximum amount that one person may contribute to your office (see, HRS §11-381(a)(5));
  6. Purchase two tickets for each event including a fundraiser held by another candidate or committee (see, HRS §11-381(a)(6));
  7. Contribute not more than $25,000 in aggregate to your political party so long as the contributions are not earmarked for another candidate (see, HRS §11-381(a)(7));
  8. Make reasonable expenditures for a “Mahalo Party” shortly after the election and newsletters to supporters as well as gifts “for one or more campaign employees or volunteers . . . of not more than an aggregate of $500 for a two-year office, $1,000 for a four-year non-statewide office (including State Senate seats with a two-year election period due to reapportionment), or $1,500 for a four-year statewide office” (see, HAR §3-160-43);
  9. (*Applies only if you are an officer holder) Pay for “ordinary and necessary expenses” incurred in connection with your duties as an office holder;[2]
  10. Purchase or lease consumer goods, vehicles, equipment, and services that provide a mixed benefit; however, you must reimburse your committee for the personal use of these items unless the personal use is de minimus which is defined as 5% or less of the total use of the item in a calendar month and the expenditure for the personal use of the item did not exceed a fair market value of $100 in any one calendar month (see, HRS §11-381(a)(2) & HAR §3-160-45); and/or
  11. Escheat funds to the HECF (see, HRS §11-384(d)).

Regardless of how you choose to spend your surplus, please be mindful that any expenditure of campaign funds must be reported in the appropriate disclosure report and electronically filed with the Commission.

III.  FILING A NEW ORGANIZATIONAL REPORT

If you intend to run for office in the next election and want to carry over your campaign funds, you must file a new Organizational Report on or before August 13, 2023.  HRS §11-384(f) provides that “campaign funds may be used for the candidate’s next subsequent election as provided in section 11-381 upon registration for the election pursuant to section 11-321.”  Of course, if there are any changes at any time to your Organizational Report (e.g., new chairperson, treasurer, address, phone number, bank information, etc.), you are required under HRS §11-322 to file an amended Organizational Report within ten (10) days of the change via the candidate filing system.

IV.  TERMINATION OF REGISTRATION

Upon approval by the Commission’s staff of the “Request for Termination of Registration” form (which is available on our website by clicking “Candidate Committees” and then “Forms”), your committee will no longer have to file disclosure reports.  The following steps need to be followed:

  • File a final report showing no surplus or deficit.
  • Complete and submit your “Request for Termination of Registration” form when you do not have a surplus or deficit.[3]
  • Submit a copy of the closing bank statement for the campaign account to verify that the account has been closed.
  • If you acquired durable assets, you must dispose of the assets[4] and report the disposition in the candidate filing system.
  • All fines and penalties owed to the Commission must be paid.

If you have any questions, please do not hesitate to contact us at (808) 586-0285.  Thank you for your kokua and interest in public service.

——————————————————————-

[1] If you decide to return contributions to your contributors, it is your choice as to the order of the return of contributions (e.g., last in, last out; first in, first out; pro rata).

[2] For more examples including prohibited expenses for which your committee will be fined, go to www.ags.hawaii.gov/campaign/authorized-expenditures.

[3] Part II discusses the disposition of surplus campaign funds.  If a candidate has a deficit resulting from outstanding loans, it may be possible to terminate the committee’s registration if the loans are forgiven, but keep in mind that loans from other than the candidate which are forgiven are considered contributions subject to the candidate’s contribution limits.  Please contact the Commission for more information.

[4] You can sell the assets at the commercially reasonable rate and deposit the money with your committee, then disburse the funds as specified in Part II, or you can donate the assets to community organizations as specified in HRS §11-381, subject to the donation limits of your office.

This memo applies to the following candidates (150 total):

Candidate Office District County
Acasio, Laura Senate 1
Achiu, Racquel Honolulu Council 2 Honolulu
Aki, Z. Kaapana OHA At-Large
Ako, Julian OHA At-Large
Alameda, Darcy Hawaii Council 3 Hawaii
Aldeguer, Maysana* House 45
Amemiya, Keith Lt. Governor
Anderson, Consuelo House 20
Anderson, Ikaika Lt. Governor
Arakaki, Tracy House 33
Armstrong, Aram Maui Council Makawao Maui
Armstrong, Robert House 28
Balinbin, Ernest House 14
Barannikov, Ilya House 6
Bell, Cullan Mayor Maui
Bondera, Colehour Hawaii Council 6 Hawaii
Bourgoin, Duke Governor
Brown, Kimberly Mayor Maui
Burke, Jackie OHA Oahu
Burns, Rob Lt. Governor
Cachola, Romy House 30
Caires, Leo Senate 7
Cayetano, Vicky Governor
CHO, Henry Hawaii Council 6 Hawaii
Clark, Linda House 13
Clemente, Roger Senate 19
Coakley, Jeffrey Hawaii Council 9 Hawaii
Cordery, Gary Governor
Crabbe, Cross House 46
Cruz, Renee Maui Council Upcountry Maui
Cullen, Jamaica House 39
Cunningham, Daniel Lt. Governor
Deleon, Dave Maui Council Makawao Maui
Denis, Megeso-William Mayor Kauai
Dicks, Karl Senate 17
Difante, Toni House 50
Doran, Charmaine Honolulu Council 8 Honolulu
Farm, Kendrick House 28
Feldman, Kathy House 19
Flores, Cara Maui Council Kahului Maui
Forsyth, Shaina Senate 6
Freitas, Makai House 8
Funaki, Lupe Honolulu Council 2 Honolulu
Garidan Prieto, Jolyn House 35
Gill, Gary House 27
Goeas, Lori House 42
Goebbert, Tamara Senate 6
Goulding, Maurice Hawaii Council 2 Hawaii
Halperin, Susan House 11
Halversen, William Hawaii Council 2 Hawaii
Hannemann, Arthur Senate 23
Haumea, Desmon Hawaii Council 5 Hawaii
Hawat, George “Big Al” Governor
Heely, Lee-Ann Hawaii Council 8 Hawaii
Hensley, Dianne Senate 2
Hussey, Ikaika Honolulu Council 6 Honolulu
Iwamoto, Kim Coco House 25
Jauch, Rosemarie Kauai Council At-Large Kauai
Jenkins, Nalani Honolulu Council 6 Honolulu
Jordan, Jo House 45
Kahau, Keline-Kameyo Governor
Kahele, Kaialii Governor
Kahue-Cabanting, U’i* OHA At-Large
Kamekona, Carol Maui Council Kahului Maui
Kaululaau, Wayne House 40
Kay, Alana Mayor Maui
Keoho, Charles Lt. Governor Hawaii
Kim, Richard Governor
Kim, Tae Lt. Governor
King, Kelly Mayor Maui
Kobayashi, Dale House 22
Kwan, Kaleo House 51
Lam, Adriel Senate 24
Langtad, James Kauai Council At-Large Kauai
Lee, Brendon OHA Oahu
Lee, Jonathan House 44
Lee, Michael House 50
Lewman, Clyde Governor
Lindner, Jeffrey Kauai Council At-Large Kauai
Lion, Jonah Martin Mayor Maui
Logue, James House 20
Lum Ho, Gregory Hawaii Council 4 Hawaii
Mack, Lono House 6
Maglinti, Austin House 39
Mahiai, Randal House 11
Makekau, Kealii OHA At-Large
Malish, Ryan Senate 9
Mariano, Lynn Governor
Martinez, Troy Hawaii Council 1 Hawaii
Matson, Shannon House 3
McPeek, Mitch Mayor Kauai
Menor-McNamara, Sherry Lt. Governor
Mesta, Dion Honolulu Council 8 Honolulu
Misalucha, Bennette Senate 16
Molina, Michael Mayor Maui
Morgan, Paul Governor
Morita, Maurice House 36 Hawaii
Naauao-Ota, Chance Honolulu Council 6 Honolulu
Naipo, Blayne House 49
Nakasato, Dennis Honolulu Council 6 Honolulu
Nara, Kanzo House 26
Nazara, Caleb Governor
Nelson, Jacquelyn Kauai Council At-Large Kauai
Nomura, Chase House 13
Odom, Anna House 43
Okabe, Wilfred Senate 1 Hawaii
Olds, Ikaika House 24
Oquendo, Cherie House 45
O’Shea, Dennis Maui Council South Maui Maui
Paik, William OHA At-Large
Palacat-Nelsen, Shane Hawaii Council 6 Hawaii
Paris, Anthony House 42
Paskowitz, Moses Governor
Pedro, Tina Maui Council Kahului Maui
Penn, Jay Dee Governor
Peralta, Samuel House 9
Peters, Robert OHA Oahu
Puletasi, Palasi Lt. Governor
Rahman, Inam House 35
Raya Jr., Philip Senate 6
Reyes Oda, Julie House 40
Richey, Shawn House 49
Ritte, Walter Senate 7
Ross, Ian Senate 11
Sarrafian, Eric House 37
Schwartz, Jack Maui Council Kahului Maui
Seashell, Joelle House 21
Simon, Keone Honolulu Council 8 Honolulu
Smith, Daniel Maui Council Makawao Maui
St. Thomas, True Senate 10
Starr, Michael House 40
Svrcina, Emil* Senate 18
Takeuchi, Nathan House 35
Takumi, Roy House 35
Tanabe, Van Governor
TAYLOR, Keleionalani Governor
Templo, Shirley House 30
Toafili, Chris Hawaii Council 9 Hawaii
Tsuneyoshi, Chad Honolulu Council 2 Honolulu
Tsuneyoshi, Heidi Governor
Vegas, Esera House 50
Wade, Daniel House 41
Wang, Valerie House 26
Watanabe, Keoni Maui Council Kahului Maui
Wehrsig, Timothy Hawaii Council 2 Hawaii
Wilson, Kevin House 39
Wolke, Chad Honolulu Council 6 Honolulu
Woods, Walter Governor
Yago, Clint Kauai Council At-Large Kauai
Young, Angela Senate 14