Campaign Spending Commission

Campaign Spending Commission
Leiopapa A Kamehameha Building, Room 204
March 13, 2019
10:00 a.m.

Commissioners Present
Bryan Luke, Kenneth Goodenow, Gregory Shoda, Stanley Lum, Maryellen Markley, Ph.D.

Staff Present
Kristin Izumi-Nitao, Tony Baldomero, Yayoi Tumamao
Deputy Attorney General Valri Kunimoto

Excused
Gary Kam

Call to Order
Chair Luke called the meeting to order at 10:04 a.m.

Consideration and Approval of Minutes of Meeting on 2/20/19
Chair Luke asked for comments or changes to the minutes.  There were none.  Chair Luke called for a motion to approve the minutes.

Commissioner Shoda moved to approve the minutes of the 2/20/19 meeting.  Motion seconded by Commissioner Lum.  Motion carried (4-0) (Vice Chair Goodenow abstained because he was not present at the 2/20/19 meeting).

New Business

*Chair Luke asked if there was any objection to taking the following matter out of order because Respondent Lei Sharsh-Davis was present. There was none.

*Docket No. 19-31 – In Re the Matter of Lei Sharsh-Davis, Madeline M. Mason, and Friends of Lei Sharsh-Davis
Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Lei Sharsh-Davis, Madeline M. Mason, and Friends of Lei Sharsh-Davis for the failure to file the Supplemental Report.

Respondent Sharsh-Davis filed nomination papers to be a 2018 candidate for the Office of Hawaiian Affairs.  In the Organizational Report filed with the Commission, Respondent Sharsh-Davis is listed as the candidate and Respondent Mason as the treasurer of the candidate committee called Friends of Lei Sharsh-Davis.

Pursuant to HRS §11-334(a)(4), Respondents were required to file the Supplemental Report for the period covering 11/7/18 through 12/31/18 by 11:59 p.m. Hawaii standard time on 1/31/19.  Respondents did not file this report by the deadline.

On 2/1/19, Commission staff notified Respondents via first class mail of their failure to file this report and that a fine would be imposed.  Respondents have not filed the report.

On 2/22/19, Commission staff called Respondent Sharsh-Davis about the unfiled report and informed her that a complaint would ensue if the report was not filed.

On 2/26/19, Commission staff sent Respondents a copy of the complaint and set the matter on the 3/13/19 Commission agenda.

On 3/11/19, Respondents filed the Supplemental Report and called the Commission.  Commission staff informed her of the $500 fine.  Respondent Sharsh-Davis told Commission staff that she closed her bank account and wanted to terminate her registration as well as have her fine waived.  She was informed that she could address the Commission at the meeting.  Executive Director Izumi-Nitao stated that Respondents have violated campaign spending laws in prior campaigns (i.e., 2012 and 2014 elections).

Executive Director Izumi-Nitao recommended that the Commission make a preliminary determination, pursuant to HRS §11-405(a), that probable cause exists to believe that a violation of the campaign spending law has been committed, assess an administrative fine of $500, order that the fine be paid from the candidate’s personal funds if the committee funds are insufficient, and order that any and all administrative penalties be deposited into the general fund pursuant to HRS §11-410(e) within two (2) weeks of receipt of the order.

Respondent Sharsh-Davis was present and asked where the notices related to the violation were mailed.  Chair Luke reminded Respondent Sharsh-Davis that Committees have the obligation to keep their addresses up-to-date in their Organizational Report.  Vice Chair Goodenow asked whether Respondent Sharsh-Davis received the October 10, 2018 letter which notified Respondents that the Commission was unable to process their termination request, and that they are required to keep filing disclosure reports.  Respondent Sharsh-Davis responded that she remembered speaking to Commission staff about that.  She then acknowledged that she made a mistake and that there seemed to be a pattern of not filing reports on time.

Chair Luke asked whether Respondent Sharsh-Davis attended any Commission trainings to which she said “no”, due to time constraints and working a full-time job.  Chair Luke further commented that trainings are also accessible online on the Commission’s website.

Respondent Sharsh-Davis stated that she did not want to make excuses, that she had previously run for office, that she needed to make her campaign simpler, and that she would like a reduction of the fine or a payment plan.  She further commented that she closed her committee bank account because it had been compromised.

Commissioner Shoda asked if there was any financial reason why she was unable to pay the $500 fine.  Respondent Sharsh-Davis stated that she was in bankruptcy proceedings.

Chair Luke stated that this was not Respondent Sharsh-Davis’s first time running for office and that in every election, there were late or unfiled reports.  He suggested that if she plans to run again, she should consider taking the training so that she will have a better understanding of the rules and regulations that must be followed.

Chair Luke moved to make a preliminary determination that probable cause exists that a violation had been committed and to accept the fine and terms stated in the complaint.  Motion seconded by Vice Chair Goodenow.  Motion carried (5-0).

*Executive Director Izumi-Nitao stated that attorneys from the Attorney General’s Office – Civil Recoveries Division were present and recommended to advance “Report from the Executive Director – Discussion with Attorney General’s Office – Civil Recoveries Division Regarding Referrals and Other Options to Obtain Compliance with Commission Orders.”  Chair Luke asked if there was any objection to taking this discussion out of order.  There was none.

Report from the Executive Director
Discussion with Attorney General’s Office – Civil Recoveries Division Regarding Referrals and Other Options to Obtain Compliance with Commission Orders
Executive Director Izumi-Nitao recommended that the agenda be amended to go into Executive Session pursuant to HRS section 92-5(a)(4) – To consult with the Commission’s attorney on questions and issues pertaining to the Commission’s powers, duties, privileges, immunities, and liabilities concerning Commission referrals to the Attorney General’s Office – Civil Recoveries Division.

Chair Luke asked for a motion to amend the agenda to go into Executive Session pursuant to HRS section 92-5(a)(4) – To consult with the Commission’s attorney on questions and issues pertaining to the Commission’s powers, duties, privileges, immunities, and liabilities concerning Commission referrals to the Attorney General’s Office – Civil Recoveries Division.

Vice Chair Goodenow moved to amend the agenda to go into Executive Session for the aforementioned reason.  Motion seconded by Chair Luke. Motion carried (5-0).

Vice Chair Goodenow moved to go into Executive Session for the aforementioned reason. Motion seconded by Chair Luke. Motion carried (5-0).

*There were no members of the public present who were excused.

*Public Session reconvened at 11 a.m.

*Chair Luke resumed the agenda.

New Business
Executive Director Izumi-Nitao stated that the twelve (12) Conciliation Agreements on the agenda were a result of investigations initiated by Commission staff pursuant to HRS §11-314(7) to determine whether there had been a violation of the Hawaii campaign spending laws.  She stated that Respondents have been informed in a letter from Commission staff of the violation and have been notified of today’s meeting as well as received a copy of the proposed conciliation agreement.  She recommended that the Commission make a preliminary determination of probable cause that a violation had been committed, waive further proceedings, and approve the settlement amounts stated in each of the proposed agreements.

*Proposed Conciliation Agreement No. 19-153 – In Re the Matter of Dustin Barca’s Ohana
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Supplemental Report and requests that the Commission assess a reduced fine from $200 to $100.  Chair Luke asked if there were any comments or questions.

Vice Chair Goodenow moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Shoda.  Motion carried (5-0).

*Proposed Conciliation Agreement No. 19-154 – In Re the Matter of Friends of Joy San Buenaventura
Vice Chair Goodenow disclosed that he was previously Respondent San Buenaventura’s treasurer prior to being appointed as a Commissioner.

Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Supplemental Report and requests that the Commission assess a reduced fine from $200 to $100.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Commissioner Markley moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Shoda.  Motion carried (5-0).

*Proposed Conciliation Agreement No. 19-155 – In Re the Matter of Vidinha 2018
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Supplemental Report and requests that the Commission assess a reduced fine from $200 to $100.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Commissioner Markley moved to approve the proposed conciliation agreement.  Motion seconded by Vice Chair Goodenow.  Motion carried (5-0).

*Proposed Conciliation Agreement No. 19-156 – In Re the Matter of Vote Shishido
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Supplemental Report and requests that the Commission assess a reduced fine from $200 to $100.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Vice Chair Goodenow moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Markley.  Motion carried (5-0).

*Proposed Conciliation Agreement No. 19-157 – In Re the Matter of Friends of Ernest Magaoay
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Supplemental Report and requests that the Commission assess a reduced fine from $200 to $66.67.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Commissioner Shoda moved to approve the proposed conciliation agreement.  Motion seconded by Vice Chair Goodenow.  Motion carried (5-0).

*Proposed Conciliation Agreement No. 19-158 – In Re the Matter of Team Mr. L – Laurent R.B. Zahnd (L) for Mayor
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Supplemental Report and requests that the Commission assess a reduced fine from $200 to $66.67.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Vice Chair Goodenow moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Shoda.  Motion carried (5-0).

*Proposed Conciliation Agreement No. 19-159 – In Re the Matter of Haupu Associates, Inc.
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Final Election Period Report and requests that the Commission assess a reduced fine from $1,000 to $333.33.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Vice Chair Goodenow moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Shoda.  Motion carried (5-0).

*Proposed Conciliation Agreement No. 19-160 – In Re the Matter of Eleele Associates, Inc.
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Supplemental Report and requests that the Commission assess a reduced fine from $1,000 to $333.33.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Vice Chair Goodenow moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Shoda.  Motion carried (5-0).

*Proposed Conciliation Agreement No. 19-161 – In Re the Matter of Kahili Development, Inc.
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Supplemental Report and requests that the Commission assess a reduced fine from $1,000 to $333.33.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Vice Chair Goodenow moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Markley.  Motion carried (5-0).

*Proposed Conciliation Agreement No. 19-162 – In Re the Matter of NF Kawakami Store, Ltd.
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Supplemental Report and requests that the Commission assess a reduced fine from $1,000 to $333.33.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Vice Chair Goodenow moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Markley.  Motion carried (5-0).

*Proposed Conciliation Agreement No. 19-163 – In Re the Matter of Friends for Billy DeCosta
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Supplemental Report and requests that the Commission assess a reduced fine from $200 to $66.67.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Commissioner Goodenow moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Shoda.  Motion carried (5-0).

*Proposed Conciliation Agreement No. 19-164 – In Re the Matter of Friends of Dylan Armstrong
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Supplemental Report and requests that they assess a reduced fine from $200 to $100.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Vice Chair Goodenow moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Shoda.  Motion carried (5-0).

*Docket No. 19-29 – In Re the Matter of Michael Juarez and Michael Jesus Juarez
Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Michael Juarez and Michael Jesus Juarez for the failure to file the Supplemental Report.

Respondent Juarez filed nomination papers to be a 2018 candidate for the State House of Representatives.  In the Organizational Report filed with the Commission, Respondent Juarez is listed as the candidate and treasurer of the candidate committee called Michael Jesus Juarez.

Pursuant to HRS §11-334(a)(4), Respondents were required to file the Supplemental Report for the period covering 11/7/18 through 12/31/18 by 11:59 p.m. Hawaii standard time on 1/31/19.  Respondents did not file this report by the deadline.

On 2/1/19, Commission staff notified Respondents via first class mail of their failure to file this report and that a fine would be imposed.  Respondents have not filed the report.

On 2/26/19, Commission staff sent Respondents a copy of the complaint and set the matter on the 3/13/19 Commission agenda.

Executive Director Izumi-Nitao recommended that the Commission make a preliminary determination, pursuant to HRS §11-405(a), that probable cause exists to believe that a violation of the campaign spending law has been committed, assess an administrative fine of $500, order that the fine be paid from the candidate’s personal funds if the committee funds are insufficient or if the Commission so orders, order that any and all administrative penalties be deposited into the general fund pursuant to HRS §11-410(e) within two (2) weeks of receipt of this order, and order that Respondents file the Supplemental Report.

Vice Chair Goodenow moved to make a preliminary determination that probable cause exists that a violation had been committed and to accept the fine and terms stated in the complaint.  Motion seconded by Commissioner Lum.

Chair Luke asked whether Respondents were contacted.  Executive Director Izumi-Nitao stated that Respondents were contacted by staff twice before the complaint was filed.

Motion carried (5-0).

*Docket No. 19-30 – In Re the Matter of Grace Manipol-Larson and Friends of Grace Manipol-Larson
Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Grace Manipol-Larson and Friends of Grace Manipol-Larson for the failure to file the Supplemental Report.

Respondent Manipol-Larson filed nomination papers to be a 2018 candidate for the State House of Representatives.  In the Organizational Report filed with the Commission, Respondent Manipol-Larson is listed as the candidate and treasurer of the candidate committee called Friends of Grace Manipol-Larson.

Pursuant to HRS §11-334(a)(4), Respondents were required to file the Supplemental Report for the period covering 11/7/18 through 12/31/18 by 11:59 p.m. Hawaii standard time on 1/31/19.  Respondents did not file this report by the deadline.

On 2/1/19, Commission staff notified Respondents via first class mail of their failure to file this report and that a fine would be imposed.  Respondents have not filed the report.

On 2/26/19, Commission staff sent Respondents a copy of the complaint and set the matter on the 3/13/19 Commission agenda.

On 3/1/19, Respondents filed the Supplemental Report and called the Commission.  Commission staff informed her of the $500 fine.  Respondent Manipol-Larson told Commission staff that she filed nomination papers but did not campaign after finding out she was pregnant.  In a letter dated 3/8/19, Respondent Manipol-Larson explained why she did not file the Supplemental Report and requested that the Commission understand her situation.

Executive Director Izumi-Nitao recommended that the Commission make a preliminary determination, pursuant to HRS §11-405(a), that probable cause exists to believe that a violation of the campaign spending law has been committed, assess an administrative fine of $500, order that the fine be paid from the candidate’s personal funds if the committee funds are insufficient, and order that any and all administrative penalties be deposited into the general fund pursuant to HRS §11-410(e) within two (2) weeks of receipt of this order.

Commissioner Shoda moved to make a preliminary determination that probable cause exists that a violation had been committed and to accept the fine and terms stated in the complaint.  Motion seconded by Commissioner Lum.

Discussion ensued regarding Respondents’ history of noncompliance with campaign finance laws in this election.

Motion carried (5-0).

*Docket No. 19-32 – In Re the Matter of Ray L’Heureux and Friends of Ray L’Heureux
Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Ray L’Heureux and Friends of Ray L’Heureux for the late filing of the Final Primary Report.

Respondent L’Heureux filed nomination papers to be a 2018 candidate for the Office of Governor.  In the Organizational Report filed with the Commission, Respondent L’Heureux is listed as the candidate and treasurer of the candidate committee called Friends of Ray L’Heureux.

Pursuant to HRS §11-334(a)(2), Respondents were required to file the Final Primary Report for the period covering 7/28/18 through 8/11/18 by 11:59 p.m. Hawaii standard time on 8/31/18.  Respondents did not file this report by the deadline.

On 9/4/18, Commission staff notified Respondents via first class mail of their failure to file this report and that a fine would be imposed.  Respondents filed the report on 9/27/18.

On 10/4/18, Commission staff notified Respondents via first class mail that a fine of $626.31 was assessed for the late filing of the report.  Respondents did not pay the fine.

On 10/25/18, Commission staff sent Respondents a copy of the complaint (Docket No. 19-18) and set the matter on the 11/14/18 Commission agenda.  At this 11/14/18 meeting, the Commission agreed to permit Respondent L’Heureux to pursue a conciliation agreement.

On 11/19/18, Commission staff mailed a Proposed Conciliation Agreement No. 19-127 via first class mail which reduced the late report fine from $626.31 to $208.77.  Respondents were further informed that the matter was set on the 12/19/18 Commission agenda.  Commission staff further called Respondent L’Heureux and left a message describing the conciliation agreement process.

At the 12/19/18 Commission meeting, Proposed Conciliation Agreement No. 19-127 was approved and Docket No. 19-18 was dismissed.  Commission staff informed Respondents that the Proposed Conciliation Agreement was approved in a letter dated 12/19/18 and instructed Respondents to sign the agreement and forward the fine assessment of $208.77 by 1/2/19.

Conciliation Agreement No. 19-127 provides that “[i]f this assessment is not paid by the deadline [(i.e., January 2, 2019)], the Commission will consider Respondent to be in breach of this Agreement and will then assess Respondent the original amount of the fine pursuant to appropriate proceedings.”

Respondent L’Heureux did not comply with the terms of Conciliation Agreement No. 19-127 by the deadline.  On 1/7/19, Commission staff contacted Respondent L’Heureux and was informed that he did not receive the Conciliation Agreement, that his building had issues with homeless people breaking into his mailbox, that he would e-sign the Conciliation Agreement, and that he was unable to pay the fine.  A payment plan was discussed and agreed to whereby Respondent L’Heureux agreed to pay $58.77 immediately, $50 on 2/20/19, $50 on 3/20/19, and $50 on 4/20/19.  The payment plan was memorialized in a letter dated 1/10/19.

Respondent L’Heureux did not pay the $58.77 initial installment.

On 1/30/19, Respondent L’Heureux called the Commission to make sure that his Supplemental Report had been filed and he asked about terminating his registration.  Commission staff assisted him and reminded him of the fine.  Respondent L’Heureux responded that due to the government shut down, he was having a hard time, but should be making payment shortly.

Respondent L’Heureux had not made any fine payment.  On 2/26/19, Commission staff left a message with Respondent L’Heureux that the Commission had not received the $58.77 which was due in January 2019 nor the $50 which was due on 2/20/19, and that a complaint would be filed if payment was not received by 3/1/19.

On 3/4/19, Commission staff sent Respondents a copy of the Complaint and set the matter on the 3/13/19 Commission agenda.

On 3/13/19, Respondent L’Heureux stopped by the Commission’s office with a letter and submitted a $208.77 payment.

Executive Director Izumi-Nitao recommended that the Commission make a preliminary determination, pursuant to HRS §11-405(a), that probable cause exists to believe that a violation of the campaign spending law has been committed, assess an administrative fine of $626.31, order that the fine be paid from the candidate’s personal funds if the committee funds are insufficient, and order that any and all administrative penalties be deposited into the general fund pursuant to HRS §11-410(e) within two (2) weeks of receipt of this order.

Commissioner Lum moved to make a preliminary determination that probable cause exists that a violation had been committed and to accept the fine and terms stated in the complaint.  Motion seconded by Commissioner Shoda.

Discussion ensued regarding the fine payment.  Because of the federal government shut down and since Respondent L’Heureux made full payment of the reduced fine (which did not need to be paid in full until 4/20/19 pursuant to the payment plan), Vice Chair Goodenow moved to amend the motion to reduce the fine from $626.31 to $208.77.  Motion seconded by Commissioner Markley.  Motion carried (5-0).

Old Business
*Consideration, Discussion, and/or Update of Commission Legislation and Other Campaign Finance Related Bills/Resolutions for the 2019 Legislative Session
Executive Director Izumi-Nitao and Associate Director Baldomero informed the Commission of the status of the Commission’s bills, other campaign finance related bills, and budget bills for the 2019 legislative session.

Report from the Executive Director
Report on Compliance of Filing Timely Disclosure Reports
Executive Director Izumi-Nitao reported the following:

• Supplemental Report → 7 candidate committees have not filed & 5 noncandidate committees have not filed (8 have Attorney General referrals)
• Final Election Period Report → 1 candidate committee (referred to the Attorney General’s Office) & 5 noncandidate committees have not filed (4 have Attorney General referrals)
• Preliminary General Report → 1 candidate committee has not filed (referred to the Attorney General’s Office)
• 2^nd Preliminary General Report → 5 noncandidate committees have not filed (4 have Attorney General referrals)
• 1^st Preliminary General Report → 4 noncandidate committees have not filed (4 have Attorney General referrals)
• Final Primary Report → 4 noncandidate committees have not filed (4 have Attorney General referrals)
• Supplemental Report → 3 candidate committees have not filed (3 have Attorney General referrals)
• Preliminary Primary Report → 4 noncandidate committees have not filed (4 have Attorney General referrals)

The next report due will be the Preliminary Special Report (reporting period 1/1/19 to 3/29/19) due on 4/3/19 for two candidate committees (Trevor Ozawa and Tommy Waters) and all noncandidate committees.

With respect to compliance on prior matters before the Commission, Executive Director Izumi-Nitao reported the following:

• Kaniela Ing – Respondent has been making fine payments
• Trinette Furtado – Commission staff is trying to contact her

Report on Developments Concerning the Commission’s Electronic Filing Systems
Associate Director Baldomero reported that Office of Enterprise Technology Services (“ETS”) is working on a rewrite of the Commission’s electronic filing systems using a new code generator software called ScriptCase which is a replacement to CodeCharge currently being used by ETS.  This new software allows ETS to rewrite the filing systems in the most current version of the PHP language and enhance some of the system’s features such as consolidating schedules, auto populating reporting schedules, and auto filling names.  He stated that the target date for the rewrite and enhancements would be the end of 2019 with an implementation date to be determined.

Update on the Elections Assistant Position
Executive Director Izumi-Nitao reported that Elections Assistant Sandrina Lee will be leaving the Commission to work for the Children’s Justice Center in the Judiciary.  Her last day at the Commission will be March 18, 2019.

EXECUTIVE SESSION
Chair Luke asked for a motion to convene Executive Session to consider and approve Executive Session minutes from the Commission meeting on 2/20/19.

Vice Chair Goodenow moved to convene in Executive Session for the aforementioned reason(s).  Motion seconded by Commissioner Markley.  Motion carried (5-0).

Public Session reconvened at 11:55 a.m.

Commissioner Markley moved to adjourn the meeting.  Motion seconded by Vice Chair Goodenow.  Motion carried (5-0).  Meeting adjourned at 11:56 a.m.

Next Meeting:
Scheduled for Wednesday, April 10, 2019 at 10 a.m.