Minutes for March 10, 2021 Meeting

Posted in Minutes

Campaign Spending Commission
Zoom Video Conference
March 10, 2021
10:00 a.m.

Commissioners Present
Bryan Luke, Stanley Lum, Neal Herbert, Vic Bonfiglio

Staff Present
Kristin Izumi-Nitao, Tony Baldomero, Gary Kam, Yayoi Tumamao, Ellisa Vendiola
Deputy Attorney General Candace Park

Excused
Maryellen Markley, Ph.D.

Guests
Dr. Frederick Nitta, Dianne Winter Brookins, Esq., William Kaneko, Esq., Vicki Higgins, Karl Dicks, Jack James, Sandy Ma (Common Cause), Gina Bluthard (Common Cause)

Call to Order
Chair Luke called the meeting to order at 10:02 a.m.

Chair Luke went over the rules for this video conference meeting.

Consideration and Approval of Minutes of Meeting on 2/10/21

Chair Luke asked for comments or changes to the minutes.  There were none.  Chair Luke called for a motion to approve the minutes.

Vice Chair Lum moved to approve the minutes of the 2/10/21 meeting.  Motion seconded by Commissioner Herbert.  Motion carried (4-0).

Chair Luke asked for a motion to take “Docket No. 21-25 – In Re the Matter of Dr. Frederick A. Nitta, M.D. Inc. v. HMSA” out of order of business on the agenda.

Vice Chair Lum moved to take Docket No. 21-25 out of order.  Motion seconded by Commissioner Herbert.  Motion carried (4-0).

New Business
*Docket No. 21-25 – In Re the Matter of Dr. Frederick A. Nitta, M.D. Inc. v. HMSA – Executive Director Izumi-Nitao reported that a complaint by Dr. Frederick Nitta had been filed against HMSA.  She added that all documents submitted by the parties have been provided to the Commissioners.

Complainant Dr. Frederick Nitta was present and stated that when he looked up donations from HMSA employees, it was obvious to him that the leadership donated at a set amount and that those donations came from one entity (HMSA).  He explained that while Respondent HMSA might say that those donations came from individuals, what is the likelihood that individuals from HMSA came up with the exact same numbers in terms of contribution amounts.  Dr. Nitta said Respondent HMSA violated state laws on contributions.

Dr. Nitta requested the Commission to investigate.  He asked that the Commission bring in individual contributors and ask them under oath whether Respondent HMSA told them to donate.

Ms. Dianne Winter Brookins, Esq. and Mr. William Kaneko, Esq. representing Respondent HMSA were present.  Ms. Brookins stated that Respondent HMSA has a long history with Dr. Nitta.  She stated that he is angry because of an arbitration that found he was overpaid $1.7 million as a result of improper billing.  Since then, Dr. Nitta has been filing a series of collateral attacks against HMSA.  Ms. Brookins further stated that Dr. Nitta’s complaint is lacking in both legal and factual merit.

Ms. Brookins explained the distinction between Respondent HMSA and HMSA Employee PAC.  She stated that as a state contractor, Respondent HMSA cannot donate to political campaigns and she confirmed that it has not done so.  Contributions that Dr. Nitta had identified in his complaint were contributions made to HMSA Employee PAC.  Therefore, Respondent HMSA did not violate HRS §11-355 (contributions by state and county contractors prohibited) as it did not make any contributions and Dr. Nitta had provided no evidence that it did.

With respect to the alleged violation of HRS §11-357 (contribution to candidate committees; limits), Ms. Brookins explained that Dr. Nitta asked the Commission to aggregate all the campaign contributions by HMSA’s individual employees.  However, she argued that contribution limits are set for individual donors and none of the individual employees violated this law.

Ms. Brookins stated that there is nothing that prohibits HMSA employees from donating to HMSA Employees PAC or HMSA Employee PAC to suggest individuals at a certain level to donate a specific amount. To have individual HMSA employees to come in and testify would be truly burdensome and harassing of HMSA employees because they were just doing what they were legally entitled to do.

With respect to the alleged violation of HRS §11-361 (aggregation of contributions and expenditures), Ms. Brookins stated that Respondent HMSA has made no political contributions, and thus, there was nothing to aggregate.  She said there is no legal or factual basis for this allegation.

Ms. Brookins asserted that this complaint is one in a series of complaints that lacked factual or legal basis which Dr. Nitta has put forward to various agencies in Hawaii in an attempt to punish HMSA for being required to repay the $1.7 million that he was overpaid through improper billing.  She requested the Commission to dismiss Dr. Nitta’s complaint.

General Counsel Kam asked Ms. Brookins how many people are employed with HMSA and whether that number is more than 50.  Ms. Brookins responded she did not have the exact number of HMSA employees, but affirmed that there are more than 50 employees.

General Counsel Kam asked for Respondent HMSA’s response to Dr. Nitta’s allegation that there seems to be a number of employees donating in what seems like a set amount in different categories.  Mr. Kaneko responded that it is not unusual for a political action committee to make specific requests in terms of dollar amounts.  He added that the employees were contributing in their individual capacity which is permissible.

General Counsel Kam asked if the contributions listed in the OpenSecret.org document which Dr. Nitta included in his complaint were contributions made to federal candidates or federal PACs.  Mr. Kaneko responded that OpenSecret.org tracks federal elections which are not within the Commission’s jurisdiction.

Commissioner Herbert asked for clarification on the Commission’s jurisdiction or responsibility to do an investigation on the matter.  General Counsel Kam responded that the investigation has already been done.  When the Commission received the complaint, it was provided to the Respondent for their response to the complaint.  General Counsel Kam reviewed the complaint and the response, and then conducted research to come to a conclusion which was provided to the Commissioners through a confidential attorney-client memorandum.

Chair Luke asked if the Commissioners had any more questions for the parties.  There were none.

Chair Luke asked for a motion to convene in an executive session pursuant to Hawaii Revised Statutes section 92-5(a)(4) to consult with the Commission’s attorneys on questions and issues pertaining to the Commission’s powers, duties, privileges, immunities, and liabilities regarding Docket No. 21-25 – In Re the Matter of Dr. Frederick A. Nitta, M.D. Inc. v. HMSA.

Vice Chair Lum moved to convene in Executive Session for the aforementioned reason.  Motion seconded by Commissioner Herbert.  Motion carried (4-0).

Dr. Nitta commented that he did not understand about the PAC or federal issue, however, local politicians received donations from HMSA, not just federal politicians.  He further commented that he is not doing this to attack HMSA and that he already repaid most of the money.  He said he is doing this because he believes what HMSA is doing to Hawaii is wrong and physicians are quitting because of HMSA’s policies.

Public Session reconvened at 10:37 a.m.

Commissioner Herbert moved to dismiss the matter for lack of evidence.  Motion seconded by Vice Chair Lum.

Chair Luke asked if there were any questions or comments.  There were none.

Motion carried (4-0).

Executive Director Izumi-Nitao stated that the thirteen (13) 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. 21-110 – In Re the Matter of Christy Kajiwara-Gusman – Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the failure to file 11 Statement of Information for Electioneering Communications and requests that they assess a reduced fine from $5,500 to $1,833.33 as it is Respondent’s first violation.  Chair Luke asked if there were any comments or questions.

Vice Chair Lum moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Herbert.  Motion carried (4-0).

*Proposed Conciliation Agreement No. 21-111 – In Re the Matter of Friends of Kelly Kitashima – Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the failure to file 5 Statement of Information for Electioneering Communications and requests that they assess a reduced fine from $2,500 to $833.33 as it is Respondent’s first violation.  Chair Luke asked if there were any comments or questions.

Vice Chair Lum moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Herbert.  Motion carried (4-0).

*Proposed Conciliation Agreement No. 21-112 – In Re the Matter of Friends of Mike Dandurand – 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 $66.67 as it is Respondent’s first violation.  Chair Luke asked if there were any comments or questions.

Vice Chair Lum moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Herbert.  Motion carried (4-0).

*Proposed Conciliation Agreement No. 21-113 – In Re the Matter of Friends of Anosh H. Yaqoob – Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Final Election Period Report and requests that they assess a reduced fine from $200 to $66.67 as it is Respondent’s first violation.  Chair Luke asked if there were any comments or questions.

Vice Chair Lum moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Herbert.  Motion carried (4-0).

*Proposed Conciliation Agreement No. 21-114 – In Re the Matter of Friends of Don Guzman – 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 $66.67 as it is Respondent’s first violation.  Chair Luke asked if there were any comments or questions.

Vice Chair Lum moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Herbert.  Motion carried (4-0).

*Proposed Conciliation Agreement No. 21-115 – In Re the Matter of Andrew – Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Final Election Period Report and the Supplemental Report and requests that they assess a reduced fine from $400 to $133.33 as it is Respondent’s first violation.  Chair Luke asked if there were any comments or questions.

Vice Chair Lum moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Herbert.  Motion carried (4-0).

*Proposed Conciliation Agreement No. 21-116 – In Re the Matter of Friends of Richard Abbett – 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 $66.67 as it is Respondent’s first violation.  Chair Luke asked if there were any comments or questions.

Vice Chair Lum moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Herbert.  Motion carried (4-0).

*Proposed Conciliation Agreement No. 21-117 – In Re the Matter of Karl Dicks for Mayor – Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the 1B Preliminary Primary Report, 2nd Preliminary Primary Report, Final Primary Report, and Final Election Period Report and requests that they assess a reduced fine from $951.14 to $317.05 as it is Respondent’s first violation.  Chair Luke asked if there were any comments or questions.

Vice Chair Lum moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Herbert.  Motion carried (4-0).

*Proposed Conciliation Agreement No. 21-118 – In Re the Matter of Friends for Ainaman – Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Final Election Period Report and requests that they assess a reduced fine from $200 to $66.67 as it is Respondent’s first violation.  Chair Luke asked if there were any comments or questions.

Vice Chair Lum moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Herbert.  Motion carried (4-0).

*Proposed Conciliation Agreement No. 21-119 – In Re the Matter of Roger G. Clemente – 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 as it is Respondent’s second violation.  Chair Luke asked if there were any comments or questions.

Vice Chair Lum moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Herbert.  Motion carried (4-0).

*Proposed Conciliation Agreement No. 21-120 – In Re the Matter of Friends of Monique Perreira – 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 as it is Respondent’s second violation.  Chair Luke asked if there were any comments or questions.

Vice Chair Lum moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Herbert.  Motion carried (4-0).

*Proposed Conciliation Agreement No. 21-121 – In Re the Matter of Friends of Austin Maglinti – 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 $72.25 to $24.08 as it is Respondent’s first violation.

Vice Chair Lum moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Herbert. Chair Luke asked if there were any comments or questions.

Commissioner Herbert asked how the fine was calculated.  Associate Director Baldomero explained that the fine amount of $72.25 was 25% of the total amount of expenditures reported in the Respondent’s Supplemental Report.

Motion carried (4-0).

*Proposed Conciliation Agreement No. 21-122 – In Re the Matter of Wilson 4 OHA – Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Final Election Period Report and requests that they assess a reduced fine from $200 to $66.67 as it is Respondent’s first violation.  Chair Luke asked if there were any comments or questions.

Vice Chair Lum moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Herbert.  Motion carried (4-0).

Chair Luke asked for a motion to take “Docket No. 21-37 – In Re the Matter of Vicki Higgins, Meg Dereign, and Friends for Vicki Higgins 2020­” out of order of business on the agenda.

Vice Chair Lum moved to take Docket No. 21-37 out of order.  Motion seconded by Commissioner Herbert.  Motion carried (4-0).

*Docket No. 21-37 – In Re the Matter of Vicki Higgins, Meg Dereign, and Friends for Vicki Higgins 2020­ Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Vicki Higgins, Meg Dereign, and Friends for Vicki Higgins 2020 for the failure to file the Final Election Period Report and the Supplemental Report.

She reported that in the Organizational Report filed with the Commission, Respondent Vicki Higgins is listed as the candidate and Respondent Meg Dereign is the treasurer of the candidate committee called Friends for Vicki Higgins 2020.

Pursuant to HRS §11-334(a), Respondents were required to file the Final Election Period Report for the period covering 8/9/20 through 11/3/20 by 11:59 p.m. Hawaii standard time on 12/3/20.  Respondents did not file the report by the deadline.

On 12/4/20, Commission staff notified Respondents via first class mail of their failure to file the report and that a fine would be imposed.  Respondents did not file this report.

Pursuant to HRS §11-334(b), Respondents were required to file the Supplemental Report for the period covering 11/4/20 through 12/31/20 by 11:59 p.m. Hawaii standard time on 2/1/21.  Respondents did not file the report by the deadline.

On 2/2/21, Commission staff notified Respondents via first class mail of their failure to file the report and that a fine would be imposed.  Respondents did not file this report.

On 2/19/21, Commission staff called Respondent Higgins and left her a voicemail to follow up on the Final Election Period Report and the Supplemental Report. She was informed that if she does not file the reports, a complaint would be filed.

Respondents did not file the Final Election Period Report and the Supplemental Report.

On 3/1/21, Commission staff sent Respondents a copy of the complaint and set the matter on the 3/10/21 Commission agenda.

Subsequently, on 3/8/21, Respondents filed the Final Election Period Report and the Supplemental Report.

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 for the failure to file the Final Election Period Report and $500 for the failure to file the Supplemental Report, order that the fine be paid from the candidate’s personal funds, if the candidate committee’s funds are insufficient to pay the fines, or if the Commission so orders that the fines, or any portion, be paid from the candidate’s funds, order that any and all administrative penalties be deposited into the general fund pursuant to HRS §11-410.

Respondent Vicki Higgins was present and addressed the Commission.  She stated that she agreed with the memo and acknowledged receipt of the communications from the staff.  Respondent Higgins said she was neglectful for not responding and conceded that a fine would be appropriate, but requested a reduction.

Chair Luke asked staff if Respondent Higgins was eligible for a conciliation agreement.

Executive Director Izumi-Nitao responded that since this was her second violation, she is eligible for a half reduction of her fine through a conciliation agreement.  If approved, it would bring the fine amount down from $1,000 to $500.

Chair Luke asked Respondent Higgins if she would be agreeable to the conciliation agreement.  Respondent Higgins affirmed that she would be agreeable.

Chair Luke moved to defer the matter to the next meeting to allow Respondent Higgins to work with staff on the conciliation agreement.  Motion seconded by Vice Chair Lum.  Motion carried (4-0).

Recess (11:02 a.m. – 11:08 a.m.)

*Docket No. 21-34 – In Re the Matter of Chayne Marten, Lynette Marten, and Friends to Elect Chayne Marten State House Representative District 10 Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Chayne Marten, Lynette Marten, and Friends to Elect Chayne Marten State House Representative District 10 for the late filing of the Supplemental Report.

She reported that in the Organizational Report filed with the Commission, Respondent Chayne Marten is listed as the candidate and Respondent Lynette Marten is the chairperson and treasurer of the candidate committee called Friends to Elect Chayne Marten State House Representative District 10.  Respondents did not run in the 2020 election.

Pursuant to HRS §11-334(b), Respondents were required to file the Supplemental Report for the period covering 7/1/20 through 12/31/20 by 11:59 p.m. Hawaii standard time on 2/1/21.  Respondents did not file the report by the deadline.

On 2/2/21, Commission staff notified Respondents via first class mail of their failure to file the report and that a fine would be imposed.

On 2/8/21, Respondents filed the report.

On 2/8/21, Commission staff notified Respondents via first class mail that a fine of $200 would be assessed for the filing of the Supplemental Report 7 days late.  Respondents did not pay the late report fine.

On 2/16/21, Respondent Lynette Marten informed Commission staff that she would like to contest the fine to explain to the Commission that she is living off of Social Security and not able to pay the fine.

On 2/22/21, Commission staff sent Respondents a copy of the complaint and set the matter on the 3/10/21 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 $200 for failure to timely file the Supplemental Report, order that the fine be paid from the candidate’s personal funds, if the candidate committee’s funds are insufficient to pay the fines, or if the Commission so orders that the fines, or any portion, be paid from the candidate’s funds, order that any and all administrative penalties be deposited into the general fund pursuant to HRS §11-340(g).

Executive Director Izumi-Nitao added that Respondents submitted a written statement on 3/2/21 which was provided to the Commissioners for their consideration.

Vice Chair 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 Bonfiglio.

Chair Luke asked if there were any comments or questions.  There were none.

Motion carried (4-0).

*Docket No. 21-35 – In Re the Matter of Banner Fanene and Friends for Banner S. Fanene Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Banner Fanene and Friends for Banner S. Fanene for the late filing of the Final Election Period Report.

On 3/9/21, Respondent Fanene emailed Commission staff to request that the matter be heard at the next meeting because he was unable to participate in this meeting.  Executive Director Izumi-Nitao recommended that the matter be continued to the next meeting on 4/14/21 to allow Respondent Fanene the opportunity to participate.

Commissioner Herbert moved to defer the matter to the next meeting.  Motion seconded by Vice Chair Lum.

Chair Luke asked if there were any comments or questions.  There were none.

Motion carried (4-0).

*Docket No. 21-36 – In Re the Matter of Kristina Kim-Marshall and Friends of Kristina Kim-Marshall – Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Kristina Kim-Marshall and Friends of Kristina Kim-Marshall for the failure to report expenditures, failure to file the Statement of Information for Electioneering Communications (“Statement”), and the failure to file the Supplemental Report.

She reported that in the Organizational Report filed with the Commission, Respondent Kim-Marshall is listed as the candidate and Danielle Takei is the chairperson and treasurer of the candidate committee called Friends of Kristina Kim-Marshall.  Because Danielle Takei resigned as chairperson and treasurer on 9/22/20, Commission staff informed Respondent Kim-Marshall to amend her Organizational Report which she failed to do thereby resulting in Docket No. 21-29 which was heard and approved at the 2/10/21 Commission meeting.

Upon review of Respondents’ Final Election Period Report, Commission staff noticed that Respondents failed to report expenditures for a four-page mailer that was mentioned in their video advertisement entitled, “My response to my opponent’s latest mailer claiming that I made false and misleading attacks” that was broadcast on Facebook from 10/17/20 through 10/20/20.

Respondents also executed a contract(s) for electioneering communications as defined under HRS §11-341 and did not timely file the Statement of Information for Electioneering Communications within 24 hours of the disclosure date. Specifically, on 10/26/20, two contracts with Facebook for $78.53 were executed and the Statement was not filed. Respondents had exceeded the $2,000 limit prior to these expenditures and had never filed a prior Statement.

On 1/6/21, Commission staff informed Respondents in a letter sent via first class mail of their failure to report expenditures and their failure to file the Statement of Information for Electioneering Communications.  Respondents were further informed that a fine of $1,250 ($250 for failure to report an expenditure and $1,000 for failure to file the Statement of Information for Electioneering Communications) would be imposed pursuant to HRS §11-410(a).  Respondents did not voluntarily pay the fines nor amend their reports and file the Statement of Information for Electioneering Communications.

On 1/26/21, Commission staff phoned Respondent Kim-Marshall and left a voicemail message to check on the status of the outstanding matters and informed her that if there was no response, a complaint would be filed against her committee. Respondent Kim-Marshall has not returned Commission staff’s call, reported the expenditure, paid the fine, or filed a Statement of Information for Electioneering Communications.

Pursuant to HRS §11-334(b), Respondents were required to file the Supplemental Report for the period covering 11/4/20 through 12/31/20 by 11:59 p.m. Hawaii standard time on 2/1/21.  Respondents did not file the report by the deadline.

On 2/2/21, Commission staff notified Respondents via first class mail of their failure to file the report and that a fine would be imposed.

On 3/1/21, Commission staff sent Respondents a copy of the complaint and set the matter on the 3/10/21 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 $250 for failure to report expenditures, $1,000 for failure to file the Statement of Information for Electioneering Communications, and $500 for failure to file the Supplemental Report; order that the fine be paid from the candidate’s personal funds, if the candidate committee’s funds are insufficient to pay the fines, or if the Commission so orders that the fines, or any portion, be paid from the candidate’s funds; order that any and all administrative penalties be deposited into the general fund pursuant to HRS §11-410; and order that Respondents amend the report to report the aforementioned expenditures, file the Statement of Information for Electioneering Communications, and file the Supplemental Report within two (2) weeks of receipt of this order.

Vice Chair 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 Bonfiglio.

Chair Luke asked if there were any comments or questions.  There were none.

Motion carried (4-0).

*Docket No. 21-38 – In Re the Matter of Naomi Taniguchi and Naomi Julie Ann Taniguchi Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Naomi Taniguchi and Naomi Julie Ann Taniguchi for the failure to file the Final Election Period Report and the Supplemental Report.

She reported that in the Organizational Report filed with the Commission, Respondent Naomi Taniguchi is the candidate and treasurer of the candidate committee called Naomi Julie Ann Taniguchi.

Pursuant to HRS §11-334(a), as a $1,000 or less declared candidate, Respondents were required to file the Final Election Period Report for the period covering 1/1/20 through 11/3/20 by 11:59 p.m. Hawaii standard time on 12/3/20.  Respondents did not file the report by the deadline.

On 12/4/20, Commission staff notified Respondents via first class mail of their failure to file the report and that a fine would be imposed.  Respondents did not file this report.

Pursuant to HRS §11-334(b), Respondents were required to file the Supplemental Report for the period covering 11/4/20 through 12/31/20 by 11:59 p.m. Hawaii standard time on 2/1/21.  Respondents did not file the report by the deadline.

On 2/2/21, Commission staff notified Respondents via first class mail of their failure to file the report and that a fine would be imposed.  Respondents did not file this report.

On 2/19/21, Commission staff called Respondent Taniguchi to follow up on the Final Election Period Report and the Supplemental Report, but she did not answer, and her phone did not accept voicemails.

On 2/23/21, Commission staff called Respondent Taniguchi about the outstanding reports again. Respondent Taniguchi stated that she did not receive the aforementioned letters concerning the reports although she confirmed her mailing address was current. Per Respondent Taniguchi’s request, Commission staff emailed her a copy of the letters and informed her that if she does not file the reports, a complaint may get filed.

Respondents have not filed the Final Election Period Report or the Supplemental Report.

On 3/1/21, Commission staff sent Respondents a copy of the complaint and set the matter on the 3/10/21 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 for the failure to file the Final Election Period Report and $500 for the failure to file the Supplemental Report, order that the fine be paid from the candidate’s personal funds, if the candidate committee’s funds are insufficient to pay the fines, or if the Commission so orders that the fines, or any portion, be paid from the candidate’s funds, order that any and all administrative penalties be deposited into the general fund pursuant to HRS §11-410, and order that Respondents file the aforementioned reports within two (2) weeks of receipt of this order.

Vice Chair 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 Bonfiglio.

Chair Luke asked if there were any comments or questions.  There were none.

Motion carried (4-0).

*Docket No. 21-39 – In Re the Matter of Rosebella Martinez, Kimberly Okamura, and Friends of Rose Martinez Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Rosebella Martinez, Kimberly Okamura, and Friends of Rose Martinez for the failure to file the Statement of Information for Electioneering Communications (“Statement”).

She reported that in the Organizational Report filed with the Commission, Respondent Martinez is listed as the candidate and Respondent Okamura is the chairperson and treasurer of the candidate committee called Friends of Rose Martinez.

Respondents executed 6 contract(s) for electioneering communications as defined under HRS §11-341 and did not file the Statement of Information for Electioneering Communications within 24 hours of the disclosure date (i.e., a contract with Vistaprint executed on 10/6/20 for $328.36; a contract with UPS executed on 10/7/20 for $90.34; three contracts with UPS executed on 10/16/21 for $357.93, $434.72, and $133.32; and a contract with UPS executed on 10/21/20 for $262.05).

On 1/6/21, Commission staff informed Respondents in a letter sent via first class mail of their failure to file the Statement of Information for Electioneering Communications and that a fine of $3,000 would be imposed pursuant to HRS §11-410.  Respondents did not voluntarily pay the fine amount nor file the Statement of Information for Electioneering Communications.

On 1/26/21, Commission staff spoke with Respondent Martinez who stated that she filed the Statement online and would email us the copy. The Statements that were emailed were not signed by Respondent Martinez, and thus, were incomplete. Commission staff requested a copy of the email confirmation that is received when Statements are electronically filed. Commission staff has not received electronically filed Statements or an email confirmation from Respondent Martinez.

On 2/5/21, Commission staff phoned Respondent Martinez and left a voicemail message to check on the status of the fine payment, inform Respondent Martinez that the Statements she emailed were not properly filed electronically, and that a complaint would be filed if these matters were unresolved.  Respondents have not returned Commission staff’s call nor complied.

On 3/1/21, Commission staff sent Respondents a copy of the complaint and set the matter on the 3/10/21 Commission agenda.  An amended complaint was sent on 3/2/21.

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 $3,000 for failure to file the Statement of Information for Electioneering Communications, order that the fine be paid from the candidate’s personal funds, if the candidate committee’s funds are insufficient to pay the fines, or if the Commission so orders that the fines, or any portion, be paid from the candidate’s funds, order that any and all administrative penalties be deposited into the general fund pursuant to HRS §11-410, and order that Respondents file the Statement of Information for Electioneering Communications within two (2) weeks of receipt of this order.

Vice Chair 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 Bonfiglio.

Chair Luke asked if there were any comments or questions.  There were none.

Motion carried (4-0).

Old Business
*Docket No. 21-32 – In Re the Matter of Karl Dicks, Shirley Castillo, and Karl Dicks for Mayor – Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Karl Dicks, Shirley Castillo, and Karl Dicks for Mayor for the late filing of the 1B Preliminary Primary Report, 2nd Preliminary Primary Report, Final Primary Report, and the Final Election Period Report.  This matter was heard at the Commission’s meeting on 2/10/21, but was deferred to permit Respondent Dicks to consider a conciliation agreement.

In consideration that Respondents were granted a conciliation agreement at this meeting (i.e., Conciliation Agreement No. 21-117), she recommended that the aforementioned matter be dismissed.

Vice Chair Lum moved to dismiss the matter.  Motion seconded by Commissioner Herbert.

Respondent Dicks was present and thanked the Commission.

Motion carried (4-0).

*Consideration, Discussion, and/or Update of Commission Legislation and Other Campaign Finance Related Bills/Resolutions for the 2021 Legislative Session
General Counsel Kam reported about the status of the Commission’s eight (8) bills as well as other bills impacting Commission operations/business for the 2021 Legislative Session.  Three (3) House bills and fourteen (14) Senate bills related to Commission operation/business crossed over.

Chair Luke asked if there were any comments or questions.  There were none.

Report from the Executive Director
Executive Director Izumi-Nitao reported the following:

  • Supplemental Report was due on 2/1/21:
    • 20 candidate committees still have not filed.
  • Final Election Period Report was due on 12/3/20:
    • 5 candidate committees still have not filed.

With respect to prior reports, there are 1-5 candidate committees that have not filed their reports.  They have been referred to the Attorney General – Civil Recoveries Division (“AG-CRD”).   Executive Director Izumi-Nitao reported that 11 candidates have been referred to AG-CRD.  The case against 4 noncandidate committees that was referred to the Attorney General’s office was dismissed with prejudice and the committees’ registration with the Commission have been terminated.  With respect to compliance of prior matters, Kaniela Ing continues to make fine payments.

EXECUTIVE SESSION
Chair Luke asked for a motion to convene in Executive Session to: (1) Consider and approve Executive Session minutes from the Commission meeting on 2/10/21; (2) Pursuant to HRS §92-5(a)(4), to consult with the Commission’s attorneys on questions and issues pertaining to the Commission’s powers, duties, privileges, immunities, and liabilities regarding McGee v. Campaign Spending Commission and Friends of Calvin Say; and (3) Pursuant to HRS §92-5(a)(4), to consult with the Commission’s attorneys on questions and issues pertaining to the Commission’s powers, duties, privileges, immunities, and liabilities regarding the imposition of fines and clarification of fine guidelines.

Vice Chair Lum moved to convene in Executive Session for the aforementioned reasons.  Motion seconded by Commissioner Herbert.  Motion carried (4-0).

Public Session reconvened at 12:15 p.m.

Commissioner Bonfiglio moved to adjourn the meeting.  Motion seconded by Commissioner Herbert.  Motion carried (4-0).  Meeting adjourned at 12:17 p.m.

Next Meeting:
Scheduled for Wednesday, April 14, 2021 at 10 a.m.