Minutes for November 14, 2018 Meeting

Posted in Minutes

Campaign Spending Commission
Leiopapa A Kamehameha Building, Room 204
November 14, 2018
10:00 a.m.

Commissioners Present
Bryan Luke, Kenneth Goodenow (arrived at 10:18 a.m.), Gregory Shoda, Stanley Lum

Staff Present
Kristin Izumi-Nitao, Tony Baldomero, Gary Kam, Yayoi Tumamao, Sandrina Lee
Deputy Attorney General Valri Kunimoto (arrived at 11:05 a.m.)

Excused
Maryellen Markley, Ph.D.

Call to Order
Chair Luke called the meeting to order at 10:05 a.m.

Consideration and Approval of Minutes of Meeting on 10/17/18
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 10/17/18 meeting.  Motion seconded by Commissioner Lum.  Motion carried (3-0).

New Business
Executive Director Izumi-Nitao stated that the eighteen (18) Conciliation Agreements 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. 19-104 – In Re the Matter of Hawaii Republican Party
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Statement of Information for Electioneering Communications and requests that they assess a reduced fine from $250 to $83.33.  Chair Luke asked if there were any comments or questions.

Commissioner Lum moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Shoda.  Motion carried (3-0).

*Proposed Conciliation Agreement No. 19-105 – In Re the Matter of Friends of Val Okimoto
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Statement of Information for Electioneering Communications and requests that they assess a reduced fine from $500 to $166.67.  Chair Luke asked if there were any comments or questions.

Commissioner Lum moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Shoda.  Motion carried (3-0).

*Proposed Conciliation Agreement No. 19-106 – In Re the Matter of Friends of Chris Lee
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Statement of Information for Electioneering Communications and requests that they assess a reduced fine from $500 to $166.67.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Commissioner Lum moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Shoda. Motion carried (3-0).

*Proposed Conciliation Agreement No. 19-107 – In Re the Matter of Ohana of Hulu Lindsey for OHA
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Statement of Information for Electioneering Communications and requests that they 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.

Commissioner Lum moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Shoda.  Motion carried (3-0).

*Proposed Conciliation Agreement No. 19-108 – In Re the Matter of Friends of Mela Kealoha-Lindsey
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Statement of Information for Electioneering Communications and requests that they assess a reduced fine from $500 to $166.67.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Commissioner Lum moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Shoda.  Motion carried (3-0).

*Proposed Conciliation Agreement No. 19-109 – In Re the Matter of ‘Ohana O Marilyn
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the failure to file and the late filing of the Statement of Information for Electioneering Communications and requests that they assess a reduced fine from $2,000 to $666.67.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Commissioner Lum moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Shoda.  Motion carried (3-0).

*Proposed Conciliation Agreement No. 19-110 – In Re the Matter of Kia’aina for OHA
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Statement of Information for Electioneering Communications and requests that they assess a reduced fine from $500 to $250.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Commissioner Lum moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Shoda.  Motion carried (3-0).

*Proposed Conciliation Agreement No. 19-111 – In Re the Matter of Friends of Riki Hokama
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Statement of Information for Electioneering Communications and requests that they assess a reduced fine from $250 to $83.33.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Commissioner Lum moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Shoda.  Motion carried (3-0).

*Proposed Conciliation Agreement No. 19-112 – In Re the Matter of Friends of Kathryn Henski
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Statement of Information for Electioneering Communications and requests that they assess a reduced fine from $500 to $166.67.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Commissioner Lum moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Shoda.  Motion carried (3-0).

*Proposed Conciliation Agreement No. 19-113 – In Re the Matter of Friends of Luke Evslin
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the failure to file and the late filing of the Statement of Information for Electioneering Communications and requests that they assess a reduced fine from $5,500 to $1,833.33.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Commissioner Lum moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Shoda.  Motion carried (3-0).

*Proposed Conciliation Agreement No. 19-114 – In Re the Matter of Friends of Ola Souza
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the failure to file the Statement of Information for Electioneering Communications and requests that they 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.

Commissioner Lum moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Shoda.  Motion carried (3-0).

*Proposed Conciliation Agreement No. 19-115 – In Re the Matter of Friends of Kaleiaina
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Statement of Information for Electioneering Communications and requests that they assess a reduced fine from $250 to $83.33.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Commissioner Lum moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Shoda.  Motion carried (3-0).

*Proposed Conciliation Agreement No. 19-116 – In Re the Matter of KUALI’I for Kauai
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Statement of Information for Electioneering Communications and requests that they assess a reduced fine from $1,500 to $500.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Commissioner Lum moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Shoda.  Motion carried (3-0).

*Proposed Conciliation Agreement No. 19-117 – In Re the Matter of Friends of Michelle Kidani
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Statement of Information for Electioneering Communications and requests that they assess a reduced fine from $500 to $166.67.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Commissioner Lum moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Shoda.  Motion carried (3-0).

*Proposed Conciliation Agreement No. 19-118 – In Re the Matter of KAMA 4 COUNCIL
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the failure to file and the late filing of the Statement of Information for Electioneering Communications and requests that they assess a reduced fine from $3,000 to $1,000.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Commissioner Lum moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Shoda.  Motion carried (3-0).

*Proposed Conciliation Agreement No. 19-119 – In Re the Matter of The Maui Miracle
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the 2nd Preliminary General Report and requests that they assess a reduced fine from $300 to $100.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Commissioner Lum moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Shoda.  Motion carried (3-0).

*Proposed Conciliation Agreement No. 19-120 – In Re the Matter of Patsy T. Mink PAC
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Statement of Information for Electioneering Communications and requests that they assess a reduced fine from $250 to $83.33.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Commissioner Lum moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Shoda.  Motion carried (3-0).

*Proposed Conciliation Agreement No. 19-121 – In Re the Matter of Friends of Yuki Lei Sugimura
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Statement of Information for Electioneering Communications and requests that they assess a reduced fine from $250 to $83.33.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Commissioner Lum moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Shoda.  Motion carried (3-0).

* Chair Luke asked if there was any objection in taking Docket No. 19-20 and Docket No. 19-21 out of order.  There was none.

*Docket No. 19-20 – In Re the Matter of John White and Friends of John White
Executive Director Izumi-Nitao reported that a complaint had been filed against Respondents John White and Friends of John White for the late filing of the Supplemental Report and the failure to amend the Organizational Report.

Respondent White did not run in the 2018 election.  Pursuant to HRS §11-333(a) and §11-334(a), Respondents were required to file the Supplemental Report for the period covering 7/1/17 through 12/31/17 no later than 11:59 p.m. Hawaii standard time on 1/31/18.  Respondents did not file this report by the deadline.

On 2/1/18, Commission staff sent Respondents a letter via first class mail informing them that the aforementioned report had not been filed and that a fine would be imposed.  On 2/12/18, Respondents electronically filed the Supplemental Report.

On 2/12/18, Commission staff sent Respondents a letter via first class mail informing them that a fine of $200 would be assessed for the late filing of the report and that the deadline to pay the fine was 2/26/18.  Respondents did not pay the fine.

On 10/4/18, Commission staff called Respondents but could not leave a message because the phone mail box was full.  Respondent White returned Commission staff’s phone call and was informed of the outstanding $200 fine for the late filing of the Supplemental Report.  During the phone conversation, Respondent White informed Commission staff that he had moved and provided a new mailing address.  Commission staff informed Respondent White that he must amend his Organizational Report to reflect the new mailing address pursuant to HRS §11-322(b).  On 10/10/18, Commission staff sent Respondents a transmittal letter enclosing the Notice of Fine for the late filing of the Supplemental Report and a reminder to amend the Organizational Report by 10/24/18.

Respondents have not paid the late report fine and have not amended the Organizational Report.

On 11/7/18, Commission staff sent Respondents a copy of the complaint and informed them that the matter would be set on the 11/14/18 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 in Count I for the late filing of the Supplemental Report, assess an administrative fine of $50 in Count II for the failure to amend the Organizational Report, order that the fines be paid from the candidate’s personal funds if the candidate committee funds are insufficient to pay the fine, order that any and all administrative penalties be deposited into the general fund pursuant to HRS §11-340(g) and §11-410(e), and order that Respondents file an amended Organizational Report within 2 weeks of receipt of the 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.  Motion carried (3-0).

*Vice Chair Goodenow arrived at 10:18 a.m.

*Docket No. 19-21 – In Re the Matter of Keeaumoku Kapu, U’ilani Kapu, and Ke’eaumoku Kapu
Executive Director Izumi-Nitao reported that a complaint had been filed against Respondents Keeaumoku Kapu, U’ilani Kapu, and Ke’eaumoku Kapu for the late filing of the Preliminary General Report.

Respondent Kapu was a candidate in the 2018 election for the Office of Hawaiian Affairs.  Pursuant to HRS §11-333(a) and §11-334(a), Respondents were required to file the Preliminary General Report for the period covering 1/1/18 through 10/22/18 no later than 11:59 p.m. Hawaii standard time on 10/29/18.  Respondents did not file this report by the deadline.

On 10/30/18, Respondents electronically filed the Supplemental Report.

On 10/31/18, Commission staff sent Respondents a letter via first class mail informing them that a fine of $300 would be assessed for the late filing of the report and that the deadline to pay the fine was 11/14/18.  On 11/8/18, Commission staff spoke with Respondents who said that they prepared the report for filing on 10/29/18, but did not take the final step of actually filing the report.  Respondents wanted to pursue this matter, and thus, did not pay the fine.

On 11/8/18, Commission staff sent Respondents a copy of the complaint and informed them that the matter would be set on the 11/14/18 Commission Agenda.

On 11/13/18, Respondents paid the $300 fine.

Executive Director Izumi-Nitao recommended that the Commission dismiss Docket No. 19-21 due to compliance.

Commissioner Lum moved to dismiss Docket No. 19-21.  Motion seconded by Commissioner Shoda.  Motion carried (4-0).

Commissioner Shoda commented that a $200 fine was set forth in the relief section of the complaint.  Executive Director Izumi-Nitao stated that that was a typo and that all other notifications as well as discussions with Respondents concerned a $300 fine.  Associate Director Baldomero added that Respondents were informed of their options to either contest the fine through a complaint or seek a fine reduction through a conciliation agreement. Respondents chose to go through the complaint process. However, upon receiving the complaint, they decided they would rather not contest the fine and pay the $300 fine.  Vice Chair Goodenow noted that the point is moot if Respondents paid the fine.

*Docket No. 19-18 – In Re the Matter of Ray L’Heureux and Friends of Ray L’Heureux
Executive Director Izumi-Nitao reported that a complaint had been filed against Respondents 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 gubernatorial candidate.  Pursuant to HRS §11-333(a) and §11-334(a), Respondents were required to file the Final Primary Report for the period covering 7/28/18 through 8/11/18 no later than 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 sent Respondents a letter via first class mail informing them that the aforementioned report had not been filed and that a fine would be imposed.  On 9/27/18, Respondents electronically filed the Final Primary Report.

On 10/4/18, Commission staff sent Respondents a letter via first class mail informing them that a fine of $626.31 would be assessed for the late filing of the report and that the deadline to pay the fine was 10/18/18.  Respondents did not pay the fine.

On 10/25/18, Commission staff sent Respondents a copy of the complaint and informed them that the matter would be set on the 11/14/18 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 $626.31, and order that the fine be deposited into the general fund of the state pursuant to HRS §11-340(g).

Respondent L’Heureux was present and addressed the Commission.  He acknowledged that the filing system is not difficult to use and he has been able to maneuver through the system quite easily. He further noted that he has been able to successfully submit other disclosure reports. However, with regard to the Final Primary Report, he stated that he thought he filed the report on time because he completed the report before the deadline and after pushing the “Submit” button in the system, there was no indication that it did not go through.  He stated that although he did not receive a confirmation that the report had been filed, he did not see an error message either.  After being notified that the report did not get filed, he contacted the Commission to let them know he did in fact file the report.  After discussing the matter with Commission staff, he learned that the system did not allow him to submit the report because he was missing employer and occupation data for his contributors.

Respondent L’Heureux also stated that as a 30-year Marine, his integrity is everything which is why he wanted to address the Commission in person rather than just send a letter to respond to the complaint.

Chair Luke asked Respondent if he filed reports prior to this one to which he said that he had but did not recall whether he received a confirmation.  Associate Director Baldomero stated that a filing confirmation would have appeared on the screen if he had filed the report.

Chair Luke asked Associate Director Baldomero whether Respondent had tried to file the report on time.  Associate Director Baldomero responded that he had but that the system prevented his filing due to Respondent failing to enter complete information on two contributors (i.e., employer and occupation) who contributed $1,000 each to his campaign.

Vice Chair Goodenow asked whether there is an error notification in such situation. Associate Director Baldomero responded that there is a validation message that comes up with a link directing the user to that contributor’s name record where the user will be able to add the missing information.

Respondent L’Heureux stated that he did not see such message.

Vice Chair Goodenow asked what the consequences would have been had he submitted the report through the old system involving paper submission. Specifically, he asked what would the penalty be for submitting an inaccurate or incomplete report. Associate Director Baldomero responded that under HRS §11-333, the contribution would have had to be returned within 30 days of receipt.

Commissioner Shoda asked how the fine was calculated. Associate Director Baldomero explained the fine calculation for late reports.

Discussion ensued about whether a conciliation agreement was discussed.  Respondent stated that he did not feel that he violated the law so was not interested in a conciliation agreement.

Vice Chair Goodenow asked why Respondent did not file the report until 9/27/18 when he had been notified by the Commission on 9/4/18 that the report was not filed.  Associate Director Baldomero noted that the record shows Respondent logged into the system on 9/16/18 and made an attempt to submit the report.  Respondent L’Heureux stated that that was the date he called the Commission office to find out why the Commission did not receive his report and was told why it was not filed.

Chair Luke asked why the report was not filed on 9/16/18. Respondent L’Heureux answered that he did not know, and that perhaps there were glitches with the Safari browser while using the system.

Associate Director Baldomero commented that the system is compatible with the Safari browser.  He further commented about the validation fields.

Chair Luke asked again why the report was not filed on 9/16/18. Respondent L’Heureux answered that he had an issue logging in because his password did not work and had to call the Commission office again.

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 Shoda.

Discussion ensued whereupon Commissioner Lum moved to dismiss the complaint.  Motion was not seconded so it failed.

Chair Luke recommended that the fine be reduced to $208.77.  Vice Chair Goodenow agreed.

Discussion ensued about a conciliation agreement which would reduce the fine from $626.31 to $208.77.

Executive Director Izumi-Nitao commented that the electronic filing system is a very specific system that 600 committees file on. She further commented that while we can look at keystrokes, it was clear that the report was not filed by the deadline and that it was missing information that was required to be reported.  Whether or not the Respondent got notice from the system that the report was missing information is a feature of the program, but the report was not filed on time.

Commissioner Lum stated that considering Executive Director Izumi-Nitao’s explanation to the matter, he is in favor of the recommendation to reduce the fine to $208.77.

Respondent was informed that the conciliation agreement does not constitute an admission of liability or wrongdoing by the Respondent.  Respondent stated that he would like a conciliation agreement.

Chair Luke moved to defer the matter to the December 19, 2018 Commission meeting to permit Respondent to work with Commission staff on a proposed conciliation agreement.  Motion seconded by Vice Chair Goodenow.  Motion carried (4-0).

*Deputy Attorney General Valri Kunimoto arrived at 11:05 a.m.

*Consideration, Discussion, and Approval of Commission Legislation for 2019
General Counsel Kam presented proposed Commission legislation for the 2019 Legislative Session for consideration, discussion, and approval.

CSC-01 (19) → Amends HRS §11-341 (electioneering communications) by changing “disclosure date” to when the electioneering communication is publicly distributed rather than when the contract for the electioneering communication is executed.  Also, increases the expenditure aggregate to $3,000 and retolls the amount.  Also, this covers all mailings and not just bulk mailers.  Lastly, deletes “communications that constitute expenditures by the expending organization” from the exceptions to the definition of “electioneering communications” to make it clear that candidate and noncandidate committees are required to file statements of information.

Discussion ensued as to why the threshold changed from $2,000 to $3,000 and why the threshold would be retolled or recalculated.  General Counsel Kam responded that he looked at federal law which applies a $10,000 threshold which is retolled which he thought was too high.  He stated that $3,000 represented an amount which is typically expended by candidates for a mailer.  He further commented that the recalculation once the $3,000 is reached would cut down on the number of lower amounts the Commission saw expended for social media boosts.

Commissioner Shoda believed increasing the threshold would reduce transparency for the public. He stated that the $2,000 threshold was sufficient and was concerned that changing the amount would be difficult and was not necessary.  The Commissioners agreed.  General Counsel Kam stated that he would submit the bill with the $2,000 threshold.

CSC-02 (19) → Amends HRS §11-334 to require candidate committees to file a 1st Preliminary General Report on October 1.

General Counsel Kam explained that upon reviewing information provided by the Office of Elections, more people are now sending in mail-in ballots and voting early rather than voting on election day. Therefore, campaign disclosure information should be made in a more timely matter so that those who are voting early can be informed of campaign activities before they vote. He further explained that noncandidate committees are already required to file this report on October 1st, and so he believes candidate committees should also be required to file this report.

CSC-03 (19) → Amends HRS §11-410 by raising the amount of fine that can be assessed against a Super PAC (that has received at least one contribution of more than $10,000 from any one person or spent more than $10,000 aggregate in an election period) from $1,000 to $5,000 and to permit the fine to be up to three times the amount of the unlawful contribution or expenditure.  Also, allows the Commission to order that the payment of the fine assessed against a noncandidate committee, or any portion, be paid from the personal funds of an officer of the noncandidate committee.

CSC-04 (19) → Amends HRS §11-339 to require candidates who do not intend to have more than $1,000 in activity to provide notice to the Commission of such intent by June 30 of an election year and to require noncandidate committees who do not intend to have more than $1,000 in activity to provide notice to the Commission of such intent by the 5th calendar day prior to the due date of the Preliminary Primary Report.  Commission staff spends a lot of time and effort pursuing committees to file preliminary, final primary, and preliminary general reports only to find out later that the committee only had to file the Final Election Period Report.

Chair Luke moved to approve the 2019 Commission legislation.  Motion seconded by Vice Chair Goodenow.  Motion carried (4-0).

Old Business
*Report on 2018 Annual Online Survey
Associate Director Baldomero reported on the results of the Commission’s 2018 Annual Online Survey results.  He stated that the purpose of the survey is to help evaluate the effectiveness of Commission operations and communications for fiscal year 2018 (i.e., July 1, 2017 through June 30, 2018) as well as provide the Commission with any feedback in areas that we administer and regulate for improvement in fiscal year 2019 and beyond.  He made the following remarks:

  • This was the 7th year of the survey
  • The survey was launched on 9/14/18 via the CSC website, Eblast, Facebook and Twitter, and closed on 10/31/18
  • The survey ran for a total of 48 days (40 days is the average over the last 7 years)
  • Total outreach via Eblast was 988 (also posted on CSC website, Facebook, and Twitter)
    • Eblast list was comprised of 437 candidate committees, 267 noncandidate committees, and 284 public subscribers
  • There were 136 total responses (125 responses were received in 2017 with the highest number of responses occurring in 2016 with 140) with an 79% survey completion rate (107 responders completed the survey to the end)
  • 7 minutes and 37 seconds was the typical time spent completing the survey (CSC estimate was 5-10 minutes)
  • Reminders were sent via Eblast on 10/3/18, 10/15/18 and 10/22/18, and via Facebook and Twitter on 9/24/18, 9/28/18, 10/3/18, 10/10/18, 10/15/18, 10/22/18 and 10/26/18. The CSC website post remained on the website for the entire 48-day duration of the survey
  • Survey comprised of 6 sections and 38 survey questions (29 multiple choice, 9 open-ended)

Associate Director Baldomero went through each of the 6 sections of the survey:

1 – Background Information Highlights (5 Questions/136 Responses)

  • Responders were mostly treasurers (56) and candidates (35) from candidate committees (81) and noncandidate committees (36) that reside on the islands of Oahu (83), Maui (21) and Hawaii (20). The responders have a wide-range of experience with more than 10 years of experience (32) with the majority (88) having 5 or less years of experience (Less than 1-year (30), 1-3 years (30), and 4-5 years (22) so this was a balanced group that represented different areas of experience
  • 113 or 83% filed CSC reports electronically, 100 or 74% have been involved in campaign activities, and 83 or 61% have made a contribution or loan to a candidate committee so this was an engaged group

2 – Communication/Access Highlights (5 Questions/120 Responses)

  • 106 or 88% responded that the CSC website was the #1 source for obtaining information followed by phone calls or office visits (97 or 81%), Guidebooks/Manuals (78 or 65%) and Eblasts (72 or 60%)
  • eSign was mostly used to file the Electronic Filing Form (100 or 83%) followed by Fundraiser Notices (29 or 24%) and then Electioneering Communication Statements (28 or 23%)
  • Social media engagement was still lacking with only 15 or 13% following us on Facebook and 12 or 10% following us on Twitter. More people downloaded our Downloadable Calendar (27 or 23%) then Facebook and Twitter. Despite that, 106 or 88% were email subscribers who received Eblasts (i.e., so most of the responders came from Eblast outreach and the CSC website versus Facebook and Twitter posts)

3 – Education/Training Highlights (11 Questions/112 Responses)

  • 63 or 56% never attended CSC training classes so perhaps this was not a favorable method or classes were not at a convenient time/location. The candidate committee class was the most attended with 31 or 28% attending
  • For those who attended training, most of them said that it had been more than 3 years since their last class (19 or 17%)
  • 70 or 63% have viewed the Candidate Committee Guidebook, 55% or 62% of the Candidate Filing System Manual, and 50 or 45% the Treasurer’s Guidebook.
  • Electronically filing disclosure reports (92 or 82%) followed by viewing candidate committee disclosure reports (86 or 77%) and reporting schedules (71 or 63%) drove people to the CSC website. This has been consistent for every survey we have published. Overall, it seems that responders are really looking for information to help them comply.
  • Of the 80 or 71% who said that they use the searchable database, 75 or 93% said it was a helpful tool that was mainly used to search contributor names and how much money they gave to candidates (48 or 83%)
  • The candidate and noncandidate committee data visualization apps were not as popular as the searchable database with 45 or 40% who said they had used it

Chair Luke commented that perhaps candidates who do not attend the training should not receive a conciliation agreement or a reduction to their fines.

4 – Compliance/Enforcement Highlights (5 Questions/110 Responses)

  • Majority was a compliant group having always filed their reports on time (62 or 56%), never entered into a Conciliation Agreement (69 or 63%), and never had a complaint filed against them (87 or 79%). Of those that have filed reports late (38 or 35%), they have typically filed late 1-2 times (35 or 90%)

5 – Public Funding Highlights (5 Questions/109 Responses)

  • Only a small number (12 or 11%) have qualified for and received public funding versus 65 or 60% who have not. Of the 12 receiving public funds, 9 or 19% received the maximum amount
  • 75 or 69% supported public funding versus 34 or 31% who did not

6 – Other Highlights (7 Questions/107 Responses)

  • 47 or 44% have been checking off the $3 tax check-off versus 60 or 56% who did not. 77 or 72% knew that the $3 check-off did not affect their tax liability versus 30 or 28% who did not, with 80 or 75% responding that they would help us and remember to check the $3 check-off on their next state income tax form
  • 65 or 61% said they would support a general fund appropriation to see public funding continue versus 42 or 39% who said they would not
  • 65 or 61% responded that Super PACs were a concern versus 42 or 39% who said they were not a concern

Associate Director Baldomero asked if there were any questions.  There were none.  Executive Director Izumi-Nitao stated that the survey results will be posted on the Commission’s website.

Report from the Executive Director
Report on Compliance of Filing Timely Disclosure Reports
Executive Director Izumi-Nitao reported that five (5) referrals to the Attorney General – Civil Recoveries Division remain.  She added that staff recently referred Alika Atay as a result of non-compliance with the Commission’s order.

As for the reports that were due since the last meeting, Executive Director Izumi-Nitao reported the following:

  • Preliminary General Report (reporting period 8/12/18 to 10/22/18 or 1/1/18 to 10/22/18) due on 10/29/18
    • 102 candidate committees were expected to file
    • 93 (91%) filed on time
    • 4 (4%) did not file
    • 5 (5%) filed late
    • As of today, 2 did not file

Chair Luke asked which two candidates  did not file reports. Executive Director Izumi-Nitao responded that they were candidates Tom Belekanich and Shaylene Iseri.

  • 2nd Preliminary General Report (reporting period 9/27/18 to 10/22/18) due on 10/29/18
    • 259 noncandidate committees were expected to file
    • 240 (93%) filed on time
    • 15 (7%) did not file
    • 4 (1%) filed late
    • As of today, 8 did not file
  • Late Contributions Report (reporting period 10/23/18 to 11/2/18) due on 11/5/18. This report is still being processed.
  • Upcoming Reports
    • Final Election Period Report (reporting period 10/23/18 to 11/6/18 or 8/12/18 to 11/6/18 or 1/1/18 to 11/6/18) due on 12/6/18 for candidate committees running in the 2018 election
      • For Governor, Lt. Governor, Kauai, & Big Island, this report is due on 11/28/18
    • Expenditure of Public Funds Report (reporting period 1/1/8 to 11/6/18)
    • Supplemental Report (reporting period 7/1/18 to 12/31/18 or 11/7/18 to 12/31/18) due on 1/31/19

Report on Certification Procedures with Office of Elections and County Clerks
Executive Director Izumi-Nitao reported that Commission staff is in communication with the Office of Elections and the county clerks concerning certification of elected officials.  Beginning the week of 11/20/18, CSC staff will send weekly memos to the Office of Elections and the county clerks certifying which elected officials have turned in their campaign spending reports and paid their fines (if any).  By law, certification is necessary if the elected official is to be sworn into office.

Report on Memorandums to Successful and Unsuccessful Candidates in the General Election, $1,000 or Less Candidates, and Termination of Ballot Issue Committees
Executive Director Izumi-Nitao reported that Commission staff issued 4 memos which were mailed on 11/13/18 to guide committees as to their next steps to comply with campaign finance laws and rules.

She reported that the Memorandum to Successful Candidates in the General Election was sent to 55 candidate committees, the Memorandum to Unsuccessful Candidates in the General Election was sent to 60 candidate committees, the Memorandum to $1,000 or Less Candidate and Noncandidate Committees was sent to 42 candidate committees and 14 noncandidate committees, and the Memorandum to Ballot Issue Committees to Terminate was sent to 6 committees. She stated that this effort is in the area of guidance for purposes of compliance rather than enforcement.

Update on the 2018 COGEL Conference
Executive Director Izumi-Nitao reported that she will be attending the December 9-12, 2018 COGEL Conference in Philadelphia, Pennsylvania along with General Counsel Kam, Commissioner Lum, and Commissioner Markley. at.  She stated that they will report back to the Commission at the 12/19/18 meeting as to their observations and findings concerning the conference.  Lastly, she commented that 5 members from the Hawaii State Ethics Commission will also be traveling to the conference.

Discussion and Approval of 2019 CSC Meeting Dates
Executive Director Izumi-Nitao stated that absent any problems with the proposed 2019 Commission meeting dates, the dates will be posted to the Commission’s website.  If, however, at any point in time, if a conflict arises with future and unanticipated events, they may be changed and the correction will be duly noted on the Commission’s website.

Chair Luke requested that Boards and Commissions be notified that two Commissioners’ terms (i.e., Chair Luke and Vice Chair Goodenow) expire in June 2019 and that he would like to know whether they will be reappointed or replaced with new Commissioners.  He urged that the extended holdover periods that  occurred with Commissioner Eldon Ching, Commissioner Greg Shoda, and Commissioner Adrienne Yoshihara not be repeated.

EXECUTIVE SESSION
Chair Luke asked for a motion to convene Executive Session to consider and approve Executive Session minutes from the Commission meeting on 10/17/18, and to consult with the Commission’s attorneys on questions and issues pertaining to the Commission’s powers, duties, privileges, immunities, and liabilities regarding the Petitioner’s Application for Writ of Certiorari in McGee v. Campaign Spending Commission and Friends of Calvin Say.

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

Public Session reconvened at 12:00 p.m.

Vice Chair Goodenow moved to adjourn the meeting.  Motion seconded by Commissioner Lum.  Motion carried (4-0).  Meeting adjourned at 12:00 p.m.

Next Meeting:
Scheduled for Wednesday, December 19, 2018, at 10 a.m.