Campaign Spending Commission

Campaign Spending Commission
Leiopapa A Kamehameha Building, Room 204
October 22, 2014
10:00 a.m.

Commissioners Present:
William Snipes, Eldon Ching, Gregory Shoda, Adrienne Yoshihara
Tina Gomes – Excused

Staff Present:
Kristin Izumi-Nitao, Tony Baldomero, Gary Kam, Ellen Kojima
Deputy Attorney General Valri Kunimoto

Call to Order:
Meeting convened at 10:10 a.m. with Chair Snipes presiding.

Consideration and Approval of Minutes of 9/10/2014 Meeting:
Commissioner Ching moved to approve the minutes of September 10, 2014.  Motion seconded by Commissioner Yoshihara.  Motion carried unanimously.

Dan Purcell, a member of the public, encouraged the Commission to support legislation that would require more frequent reporting by noncandidate committees.  Also, commented that for more transparency of the meeting, the Commission should consider other methods of making the meeting available to the public and options for providing public testimony such as video recording and conference call options.

Chair Snipes asked that anyone wishing to offer comments on any matters on the agenda should sign-in and asked that they limit comments to 5 minutes.

New Business
Commissioner Yoshihara recused herself from matters having to do with Pacific Resource Partnership and John White.  She and Mr. Leroy Colombe, attorney for Pacific Resource Partnership and John White, are partners in the law firm Chun Kerr, LLP.

Docket No. 15-15 – In Re the Matter of Pacific Resource Partnership PAC, a Noncandidate Committee, and John White, as its Treasurer and Chairperson, and in his Individual Capacity
Present – Governor Ben Cayetano, Complainant

Leroy Colombe, Attorney representing Pacific Resource Partnership and John White

General Counsel Kam reported that Governor Cayetano filed a complaint against Pacific Resource Partnership PAC (PAC) and John White alleging the PAC’s failure to report expenditures made in opposition to his 2012 mayoral candidacy and is seeking to have the complaint referred for prosecution.

General Counsel Kam stated that on June 20, 2014, an article entitled “An Inside Look at the Hawaii Super PAC That Helped Defeat Cayetano” appeared in Civil Beat.  The reporter who wrote the article sent General Counsel Kam the 488 pages of email messages between the PAC and their consultants concerning the mayoral race in 2012.  After reviewing the email messages, General Counsel Kam asked Mr. Colombe for invoices and other information concerning the consultants mentioned in the email messages who had not been reported by the PAC in its reports related to the 2012 elections.  Mr. Colombe provided invoices and vendor payment histories for three (3) vendors:  Hoakea Communications, Andrew S. Winder, AAL, and Stanford Campaigns.  After reviewing this information, staff informed Mr. Colombe that the PAC would have to amend five (5) reports related to the 2012 elections and to disclose the expenditures totaling $363,477.60 as well as pay a fine of $1,250 (or $250 for each report that needed to be amended).  On August 18, 2014, the PAC paid the fine and amended its five (5) reports on September 2nd and 3rd, 2014 to reflect the unreported expenditures.  Because the matter was resolved, staff recommended that the complaint be dismissed.

Governor Cayetano stated that the matter should be referred for prosecution because the PAC made expenditures months before filing as a noncandidate committee and intentionally failed to report expenditures it made to consultants and public relation firms.  Further, he stated that he was disappointed that staff did not look further into the intent of the PAC, that the staff did not get the full story, and that he was looking for options because he feels the public has a right to know.  Governor Cayetano distributed to the Commission the June 20, 2014 Civil Beat article entitled “An Inside Look at the Hawaii Super PAC That Helped Defeat Cayetano.”

Mr. Colombe stated that it is not their intention to fight the battle of the term “expenditures,” that this matter is a reporting issue, and that he concurred with staff’s recommendation.  The reporting issue has been addressed with the PAC amending the required 2012 reports and paying a fine.

Commissioner Ching stated that perhaps the expenditures during this period of time did not have to be reported and that the evidence presented did not show intentional or reckless disregard for the law.

Chair Snipes and Commissioner Shoda voiced concern on the amount of monies involved and the PAC’s pattern of practice.  They felt that the matter should be referred to prosecutors, who could investigate whether there is evidence to prosecute based on intent.

Chair Snipes moved to refer the matter for prosecution.  Motion seconded by Commissioner Shoda. Vote taken – 2-1 (with Commissioner Ching opposing).  Motion did not pass.

Based on legal advice, 3 votes needed to refer the matter – Chair Snipes deferred the matter until the November meeting.

Docket No. 15-48 – In Re the Matter of Pacific Resource Partnership PAC and John D. White, Jr.
Present – Leroy Colombe, Attorney representing Pacific Resource Partnership PAC and John White

General Counsel Kam reported that a complaint was filed alleging that Pacific Resource Partnership PAC (PAC) failed to report expenditures.  The expenditures were for four (4) campaign mailers in support of Carol Fukunaga, who at the time in 2012, was running in a special election to fill a vacant seat on the Honolulu City Council.  Mr. Colombe responded by informing staff that all of the expenditures for the Fukunaga mailers were contained in three (3) invoices from Mission Control, Inc. totaling $86,182.69. Staff recommended that the Commission assess the PAC a $1,000 fine for the PAC’s failure to report the expenditures.

Mr. Colombe stated that the invoices for the mailers should have been reported, and agrees that the PAC should be fined for not reporting the expenditures.  He further stated that this was an isolated incident and not connected to the previous matter.

Commissioner Shoda stated that this matter concerns over $86,000 and that both dockets before the Commission should be linked.

Chair Snipes moved to accept staff’s recommendation.  Motion seconded by Commissioner Ching. Commissioner Shoda opposed and stated that this matter should also be referred for prosecution along with Docket 15-15.  Chair Snipes withdrew motion.

Commissioner Shoda moved to defer the matter until the November meeting.  Motion seconded by Commissioner Ching.  Motion carried unanimously.

Docket No. 15-32 taken out of order –

Docket No. 15-32 – In Re the Matter of Gil Kahele, Kaiali’i Kahele, and Friends of Gil Kahele
Present – Nathan Roehrig, representing Stan Roehrig

A request was made by Nathan Roehrig, representing Stan Roehrig, attorney for Gil Kahele, to take this matter out of order on the agenda.  The request was granted.

Mr. Roehrig requested a continuance to respond to the complaint.

Executive Director Izumi-Nitao reported that a complaint was filed alleging that Respondents used campaign funds to make a donation to a community organization during a prohibited period and in excess of the permitted amount.  She further reported that staff is aware of Stan Roehrig’s request for a continuance and has no objection to permit them time to respond to the complaint.

Chair Snipes moved to continue the matter until the November meeting.  Motion seconded by Commissioner Shoda.  Motion carried unanimously.

Docket No. 15-38 – In Re the Matter of Hawaii Carpenters Market Recovery Program Fund
General Counsel Kam reported that Karen Chun, a resident of Maui, filed a complaint against Hawaii Carpenters Recovery Program Fund (Committee), a noncandidate committee that is registered with the Commission, alleging that it failed to properly identify contributors to the fund.

General Counsel Kam stated that in Advisory Opinion (AO) #06-01, the Commission held that employers who made payments to a labor management industry fund pursuant to a collective bargaining agreement, were not the contributors when the fund subsequently contributes to a noncandidate committee registered by the fund.  Rather, the contributor to the noncandidate committee was the fund itself and the payments that the employers paid into the fund pursuant to collective bargaining agreements were not contributions to the noncandidate committee.

Staff therefore recommended that the complaint be dismissed.  Mr. Colombe agreed with staff’s recommendation.

Commissioner Ching moved to dismiss the complaint.  Motion seconded by Commissioner Shoda.  Motion carried unanimously.

Docket No. 15-41 – In Re the Matter of Forward Progress
General Counsel Kam reported that Karen Chun, a resident of Maui, filed a complaint against Forward Progress alleging Forward Progress failed to identify independent expenditures.

Forward Progress is a registered noncandidate committee with the Commission which is funded by the Hawaii Carpenters Market Recovery Program Fund.  Staff does not believe that HAR §3-160-40(e), which requires that expenditures made on behalf of more than one candidate be attributed to each candidate proportionately, has been violated.  The complaint did not show that the reported unpaid expenditures supported more than one candidate.  In fact, Forward Progress did report or identify the candidates supported by each of the unpaid expenditures in the previous report.  When Forward Progress reported the payment of the unpaid expenditures the reporting system would not allow Forward Progress to re-type the name of the candidates supported.  It is a problem that staff needs to address.  Staff therefore recommended that the complaint be dismissed.

Commissioner Shoda moved to accept staff’s recommendation of dismissal.  Motion seconded by Chair Snipes.  Motion carried unanimously.

Proposed Conciliation Agreement 15-34 taken out of order –

Proposed Conciliation Agreement 15-34 – In Re the Matter of Richard Creagan and Friends of Richard Creagan
Present – Representative Richard Creagan

A request was made by Richard Creagan who was present at the meeting to take this matter out of order on the agenda.  The request was granted.

Representative Creagan challenged the proposed conciliation agreement and was permitted to withdraw his agreement.

Representative Creagan was informed that the matter would be handled with the filing of a complaint enforcing the $750 late filing fine and that it would be set for the November meeting agenda.

Proposed Conciliation Agreement 15-35 taken out of order –

Proposed Conciliation Agreement 15-35 – In Re the Matter of William Akina, Tseng-Fan Akina, and Keli’i Akina Campaign Committee
Present – Tseng-Fan (Patty) Akina

A request was made by Patty Akina who was present at the meeting to take this matter out of order on the agenda.  The request was granted.

Ms. Akina requested whether the Commission would consider further reducing the fine.  She stated that the committee thought the report was filed by the deadline and is not sure why the report appeared blank.  Commissioner Yoshihara stated that for the fine to be reduced further, a complaint would need to be filed.

Associate Director Baldomero stated that what possibly happened is that the late contribution entries were entered after the report was filed which is why the report showed no contributions.

Commissioner Shoda moved to make a preliminary determination that probable cause exists that a violation has been committed and to accept the settlement terms and amount as stated in Conciliation Agreement 15-35.   Motion seconded by Commissioner Yoshihara.  Motion carried unanimously.

Docket No. 15-35 taken out of order –

Docket No. 15-35 – In Re the Matter of Victoria Mathieu and Friends of Victoria Mathieu
Present – Victoria Mathieu

Noting that Victoria Mathieu was present at the meeting, the Commission agreed to take her matter out of order on the agenda.

Executive Director Izumi-Nitao reported that a complaint was filed alleging that Respondents failed to file the Final Primary Report.

Respondent filed nomination papers with the Office of Elections on 6/3/14 to be a candidate for the State House of Representative, District 19.  Respondent Mathieu is also the committee’s treasurer.

HRS §§11-333(a) and 11-334(a) require candidates and treasurers of candidate committees to timely file preliminary, final, and supplemental disclosure reports.  On 9/2/14, Commission staff sent a “Notice of Late Report” informing Respondent that the Final Primary Report had not been filed and the imposition of a fine.

On 9/23/14, Commission staff sent Respondent a copy of the complaint and informed Respondent that the matter would be set on the 10/22/14 Commission agenda.  On 10/21/14, Respondent came to the Commission office and electronically filed the Final Primary Report as well as wrote a check for $500 and submitted a letter for consideration by the Commissioners at their meeting seeking a reduction of the fine.

Respondent Mathieu addressed the Commission.  She stated that she is a first time candidate and apologized for not filing the report.  She asked the Commissioners to reduce the fine because $500 is a large chunk of her available funds.  Commissioner Yoshihara stated that the issue is that the public did not have her campaign committee information because she did not file her report when it was due.

Executive Director Izumi-Nitao stated that based on the activity in the report she filed, she would have been fined $200.

Commissioner Shoda moved to reduce the fine to $200.  Motion seconded by Chair Snipes.

General Counsel Kam noted that the Commission first needed to make a preliminary determination of probable cause.

Chair Snipes moved to make a preliminary determination that probable cause exists that a violation has been committed.  Motion seconded by Commissioner Yoshihara.  Motion carried unanimously.

Commissioner Ching moved to reduce the fine to $300 and accept the terms as stated in Docket 15-35.  Motion seconded by Commissioner Shoda.  Motion carried with Commissioner Yoshihara opposing.

Docket No. 15-34 – In Re the Matter of Maui Contractors Association Political Action Committee and Thomas Cook
Executive Director Izumi-Nitao reported that a complaint was filed alleging that Respondents failed to file the Final Primary Report.

Respondent Maui Contractors Association Political Action Committee is a noncandidate committee registered with the Commission with Respondent Cook listed as the chairperson and treasurer of the noncandidate committee.

On 9/2/14, Commission staff sent a “Notice of Late Report” informing Respondents that the Final Primary Report had not been filed and the imposition of a fine.  Respondents have not filed the report.

On 9/23/14, Commission staff sent Respondents a copy of the complaint and informed Respondents that the matter would be set on the 10/22/14 Commission agenda.

Staff recommends that the Commission make a preliminary determination pursuant to HRS §11-405(a) that probable cause exists to believe a violation of the campaign spending law has been committed, assess a fine of $500, and order that they file the Final Primary Report within two weeks of receipt of the Order.

Commissioner Yoshihara moved to make a preliminary determination that probable cause exists that a violation has been committed and accept the fine and terms as stated in Docket 15-34.  Motion seconded by Chair Snipes.  Motion carried unanimously.

Docket No. 15-36 – In Re the Matter of Gene Leslie, Laurie Aquino, and Friends of Bucky
Executive Director Izumi-Nitao reported that a complaint was filed alleging that Respondents failed to file the Final Primary Report.

Respondent filed nomination papers with the County Clerk’s office on 5/9/14 to be a candidate for the State House of Representatives, District 5.  The Organizational Report lists Respondent Leslie as the candidate and Respondent Aquino as the treasurer for the candidate committee called Friends of Bucky.

HRS §§11-333(a) and 11-334(a) require candidates and treasurers of candidate committees to timely file preliminary, final, and supplemental disclosure reports.  On 9/2/14, Commission staff sent a “Notice of Late Report” informing Respondents that the Final Primary Report had not been filed and the imposition of a fine.  Respondents have not filed the report.

On 9/23/14, Commission staff sent Respondents a copy of the complaint and informed Respondents that the matter would be set on the 10/22/14 Commission agenda.  On 10/21/14, staff received a call from Respondent Leslie saying that he has been on the mainland undergoing medical treatment.   Staff advised him to file the report and pay the fine.  On 10/22/14, right before the meeting, staff received a message from Respondent Leslie asking for a one month continuance to clear everything.

Staff recommended that the matter be continued until the next meeting to give Respondent time to resolve this matter.

Commissioner Shoda moved to continue the matter until the November meeting.  Motion seconded by Chair Snipes.  Motion carried unanimously.

Docket No. 15-42 – In Re the Matter of Cherish Almeida, China-Lyn Almeida, and T.E.A.M. Cherish – Cherish Almeida
Executive Director Izumi-Nitao reported that a complaint was filed alleging the late filing of the Final Primary Report and Respondents failure to amend the committee’s Organizational Report.

Respondent filed nomination papers with the Hilo County Clerk’s office on 6/3/14 to be a candidate for the Hawaii County Council, District 5.  The Organizational Report lists Respondent Almeida as the candidate and Respondent China-Lyn Almedia as the treasurer for the candidate committee called T.E.A.M-Cherish – Cherish Almeida.

On 7/25/14, Commission staff sent Respondents a letter informing them to amend an undeliverable address on their Organizational Report by 8/1/14 or an administrative fine may be assessed.  On 8/26/14, a reminder to amend the committee’s Organizational Report by 9/9/14 was sent to Respondents.  The Organizational Report was not amended.  HRS §11-322(b) requires that any change in information previously reported in the Organizational Report shall be electronically filed with the Commission within 10 days of the change being brought to the committee’s attention.

HRS §§11-333(a) and 11-334(a) require candidates and treasurers of candidate committees to timely file preliminary, final, and supplemental disclosure reports.  On 9/2/14, Commission staff sent a “Notice of Late Report” informing Respondents that the Final Primary Report had not been filed and the imposition of a fine.  On 9/6/14, Respondents electronically filed the report.  On 9/19/14, Commission staff sent a “Notice of Fine” assessing a fine of $200 for the late filing of the Final Primary Report and a fine of $50 for failure to amend the Organizational Report.  To date, the fines have not been paid.

On 10/8/14, Commission staff sent Respondents a copy of the complaint and informed Respondents that the matter would be set on the 10/22/14 Commission agenda.  On 10/22/14, right before the meeting, Respondent Cherish Almeida called the Commission and informed Executive Director Izumi-Nitao that she is $1,000 or less committee and that she would like to terminate her registration.  Upon reviewing the reports Respondents filed with the Commission, Executive Director Izumi-Nitao stated it does appear that this committee qualifies as a $1,000 or less committee which means that they are only required to file the Final Election Period Report.  Staff therefore recommended withdrawal of the complaint.

Chair Snipes moved to withdraw the complaint.  Motion seconded by Commissioner Shoda.  Motion carried unanimously.

Docket No. 15-43 – In Re the Matter of Change Hawaii and Eric Ryan
Executive Director Izumi-Nitao reported that a complaint was filed alleging the late filing of the Final Primary Report and the failure to pay the fine.

Respondent is a noncandidate committee that is registered with the Commission.  The Organizational Report lists Respondent Eric Ryan as the chairperson and treasurer of the noncandidate committee.

HRS §§11-335(a) and 11-336 require noncandidate committees to timely file preliminary, final, and supplemental reports.  On 9/2/14, Commission staff sent a “Notice of Late Report” informing Respondents that the Final Primary Report had not been filed and the imposition of a fine.  On 9/19/14, Respondents electronically filed the report.  On this same day, a “Notice of Fine” informing Respondents of a $200 fine was sent.  Respondents have not paid the fine.

On 10/8/14, Commission staff sent Respondents a copy of the complaint and informed Respondents that the matter would be set on the 10/22/14 Commission agenda.

Staff recommends that the Commission make a preliminary determination pursuant to HRS §11-405(a) that probable cause exists to believe a violation of the campaign spending law has been committed and assess a fine of $200.

Commissioner Ching moved to make a preliminary determination that probable cause exists that a violation has been committed and to accept the fine and terms as stated in Docket 15-43.  Motion seconded by Commissioner Yoshihara.  Motion carried unanimously.

Docket No. 15-44 – In Re the Matter of Protect Our Keiki and Eric Ryan
Executive Director Izumi-Nitao reported that a complaint was filed alleging the late filing of the Final Primary Report and the failure to pay the fine.

Respondent is a noncandidate committee that is registered with the Commission.  The Organizational Report lists Respondent Eric Ryan as the chairperson and treasurer of the noncandidate committee.

HRS §§11-335(a) and 11-336 require noncandidate committees to timely file preliminary, final, and supplemental reports.  On 9/2/14, Commission staff sent a “Notice of Late Report” informing Respondents that the Final Primary Report had not been filed and the imposition of a fine.  On 9/19/14, Respondents electronically filed the report.  On this same day, a “Notice of Fine” informing Respondents of a $200 fine was sent.  Respondents have not paid the fine.

On 10/8/14, Commission staff sent Respondents a copy of the complaint and informed Respondents that the matter would be set on the 10/22/14 Commission agenda.

Staff recommends that the Commission make a preliminary determination pursuant to HRS §11-405(a) that probable cause exists to believe a violation of the campaign spending law has been committed and assess a fine of $200.

Commissioner Ching moved to make a preliminary determination that probable cause exists that a violation has been committed and to accept the fine and terms as stated in Docket 15-44.  Motion seconded by Commissioner Yoshihara.  Motion carried unanimously.

Docket No. 15-45 – In Re the Matter of Save Ewa Beach and Eric Ryan
Executive Director Izumi-Nitao reported that a complaint was filed alleging the late filing of the Final Primary Report and the failure to pay the fine.

Respondent is a noncandidate committee that is registered with the Commission.  The Organizational Report lists Respondent Eric Ryan as the chairperson and treasurer of the noncandidate committee.

HRS §§11-335(a) and 11-336 require noncandidate committees to timely file preliminary, final, and supplemental reports.  On 9/2/14, Commission staff sent a “Notice of Late Report” informing Respondents that the Final Primary Report had not been filed and the imposition of a fine.  On 9/19/14, Respondents electronically filed the report.  On this same day, a “Notice of Fine” informing Respondents of a $200 fine was sent.  Respondents have not paid the fine.

On 10/8/14, Commission staff sent Respondents a copy of the complaint and informed Respondents that the matter would be set on the 10/22/14 Commission agenda.

Staff recommends that the Commission make a preliminary determination pursuant to HRS §11-405(a) that probable cause exists to believe a violation of the campaign spending law has been committed and assess a fine of $200.

Commissioner Shoda moved to make a preliminary determination that probable cause exists that a violation has been committed and to accept the fine and terms as stated in Docket 15-45.  Motion seconded by Chair Snipes.  Motion carried unanimously.

Docket No. 15-46 – In Re the Matter of West Oahu 2010 and Eric Ryan
Executive Director Izumi-Nitao reported that a complaint was filed alleging the late filing of the Final Primary Report and the failure to pay the fine.

Respondent is a noncandidate committee that is registered with the Commission.  The Organizational Report lists Respondent Eric Ryan as the chairperson and treasurer of the noncandidate committee.

HRS §§11-335(a) and 11-336 require noncandidate committees to timely file preliminary, final, and supplemental reports.  On 9/2/14, Commission staff sent a “Notice of Late Report” informing Respondents that the Final Primary Report had not been filed and the imposition of a fine.  On 9/19/14, Respondents electronically filed the report.  On this same day, a “Notice of Fine” informing Respondents of a $200 fine was sent.  Respondents have not paid the fine.

On 10/8/14, Commission staff sent Respondents a copy of the complaint and informed Respondents that the matter would be set on the 10/22/14 Commission agenda.

Staff recommends that the Commission make a preliminary determination pursuant to HRS §11-405(a) that probable cause exists to believe a violation of the campaign spending law has been committed and assess a fine of $200.

Commissioner Ching moved to make a preliminary determination that probable cause exists that a violation has been committed and to accept the fine and terms as stated in Docket 15-46.  Motion seconded by Commissioner Yoshihara.  Motion carried unanimously.

Docket No. 15-47 – In Re the Matter of Alex Sonson, Jimmy Van Bokhoven, and Friends of Sonson
Executive Director Izumi-Nitao reported that a complaint was filed alleging the late filing of the Final Primary Report and the failure to pay the fine.

Respondent filed nomination papers with the Office of Elections on 6/2/14 to be a candidate for the State House of Representative, District 38.  The Organizational Report lists Respondent Sonson as the candidate and Respondent Van Bokhoven as the treasurer for the candidate committee called Friends of Sonson.

HRS §§11-333(a) and 11-334(a) require candidates and treasurers of candidate committees to timely file preliminary, final, and supplemental disclosure reports.  On 9/2/14, Commission staff sent a “Notice of Late Report” informing Respondents that the Final Primary Report had not been filed and the imposition of a fine.  On 9/10/14, Respondents electronically filed the report.  On 9/11/14, Commission staff sent a “Notice of Fine” assessing a $1,159.99 fine for the late filing of the report and requiring payment by 9/25/14.  The fine has not been paid.

On 10/13/14, Commission staff sent Respondents a copy of the complaint and informed Respondents that the matter would be set on the 10/22/14 Commission agenda.

Staff recommends that the Commission make a preliminary determination pursuant to HRS §11-405(a) that probable cause exists to believe a violation of the campaign spending law has been committed and assess a fine of $1,159.99.

Commissioner Shoda moved to make a preliminary determination that probable cause exists that a violation has been committed and to accept the fine and terms as stated in Docket 15-47.  Motion seconded by Chair Snipes.  Motion carried unanimously.

Proposed Conciliation Agreements
Executive Director Izumi-Nitao reported that the following proposed conciliation agreements are a result of investigations initiated in August and September 2014 pursuant to HRS §11-314(7) to determine whether there has been a violation of the campaign spending laws.

Conciliation Agreement 15-27  In Re the Matter of Rowena Akana, Ronald Bongiovanni, and Friends of Rowena Akana
Conciliation Agreement 15-28  In Re the Matter of Timothy Law, Susan Law, and Friends of Tim Law
Conciliation Agreement 15-29  In Re the Matter of Office and Professional Employees International Union-JB Moss Voice of the Electorate
Conciliation Agreement 15-30  In Re the Matter of Andria Tupola, Kaylani Lauaki, and Friends of Andria Tupola
Conciliation Agreement 15-31     In Re the Matter of Thornton Kekipi, Nicholas Francisco and Thornton Keikialoha Kekipi
Conciliation Agreement 15-32     In Re the Matter of Dustin Barca, Elijah Frank, and Dustin Barca’s Ohana
Conciliation Agreement 15-33     In Re the Matter of Turtle Bay Resort, LLC

Respondents have been informed in a letter from Commission staff of the violation, and they have been notified of today’s meeting and received a copy of the proposed conciliation agreement.  They have waived the opportunity to explain or otherwise respond to the notice of violation.  Executive Director Izumi-Nitao recommended that the Commission make a preliminary determination of probable cause that a violation has been committed, waive further proceedings, and approve settlement amounts as stated in each of the conciliation agreements.

Commissioner Yoshihara moved to make a preliminary determination that probable cause exists that a violation has been committed and to accept the settlement terms and amounts as stated in Conciliation Agreements 15-27 through 15-33.  Motion seconded by Commissioner Ching.  Motion carried unanimously.

Old Business
Docket No. 15-09 – In Re the Matter of Christopher Hart, Robert Leiferman, and Friends of Chris Hart

Executive Director Izumi-Nitao reported that at the 9/10/14 Commission meeting, the Commission made a preliminary determination of probable cause and assessed a fine of $500 for an unfiled report against Respondents.  At this meeting, it was suggested by Vice-Chair Gomes that Respondent Hart is deceased.

On 9/10/14, Commission staff confirmed with committee chair Jordan Hart that the candidate Christopher Hart is deceased.   Chair Hart requested termination of the committee’s registration and submitted the committee’s closing bank statement.

Staff recommended reconsideration of the preliminary determination of probable cause and, if granted, recommended dismissal of the complaint due to the candidate being deceased.

Commissioner Yoshihara moved to reconsider the preliminary determination of probable cause against Respondents.  Motion seconded by Chair Snipes.  Motion carried unanimously.

Commissioner Yoshihara moved to dismiss the complaint.  Motion seconded by Chair Snipes.  Motion carried unanimously.

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

Report on Compliance of Filing Timely Disclosure Reports

Update of the Supplemental Report which was due on July 31, 2013

-Nora Pajimola – Staff will be seeking contempt of court order

-Adam Reeder – Court order requiring compliance obtained, but parties refused to accept service so the Commission will need to secure a process server to serve the court documents on Adam Reeder

Update of the 1^st Preliminary Primary Report which was due on July 10, 2014

-262 candidates required to file this report
-28 committees did not file on deadline
-3 possible First Circuit Court Applications

Update of the 2^nd Preliminary Primary Report which was due on July 30, 2014

-257 candidates were required to file this report
-22 committees did not file on the deadline
-3 possible First Circuit Court Applications

Update of the Preliminary Primary Report which was due on July 30, 2014

-225 noncandidate committees were required to file this report
-25 committees did not file on the deadline
-1 possible First Circuit Court Application

Update of the Supplemental Report which was due on July 31, 2014

-136 candidate committees were required to file this report (candidates whose names did not appear on the 2014 ballot)
-19 committees did not file on the deadline
-3 possible First Circuit Court Applications

Update of the Late Contributions Report which was due on August 6, 2014

-11 candidate committees did not file this report
-9 filed report and paid fines
-2 did not need to file the Late Contribution Report

Update of the Final Primary Report which was due on August 29, 2014

-251 candidates were required to file this report
-23 committees did not file on the deadline
-3 possible First Circuit Court Applications
-217 noncandidate committees were required to file this report
-22 committees did not file on the deadline
-1 possible First Circuit Court Application

Update of the Expenditure of Public Funds Report which was due on August 29, 2014

-1 candidate committee did not file on the deadline but later filed the report and paid fine

Update on the Preliminary General Report due on October 27, 2014 – not occur yet

Report on Timeline for Repeal of Corporate Filing System
On 11/5/14, the Corporate Filing System (CFS) will be repealed pursuant to Act 112, §11, SLH 2013, which means that any corporation receiving contributions or making expenditures that exceed $1,000 in the aggregate must register as a noncandidate committee.  Following is the scheduled timeline:

10/15/14  Post “Notice to Corporation” on CSC homepage
Facebook and Tweet “Notice to Corporations”
E-blast everyone “Notice to Corporations”

10/22/14  Repeat Facebook and Tweet

10/29/14  Repeat Facebook and Tweet

11/3/14  Repeat E-blast notice

11/5/14  Post on CSC homepage – “Repealed-Corporate Filing System”
Facebook and Tweet – Repeal notice
E-blast everyone – Repeal notice

Dan Purcell, member of the public, asked to comment.  He commended the Commission regarding its proceedings and professional conduct during this meeting.

Update of 2014 Election
Associate Director Baldomero highlighted the following election activity:

-3 candidates have exceeded the expenditure limits
-23 candidates have won outright
-276 fundraisers held this year and since the primary election, David Ige has held 15
-To date, $78,196 in public funds have been disbursed
-Pending public funding requests total $116,612, which includes an application for David Ige for $100,489
-26 Independent Expenditure Committees (Super PACs) registered
-11 Ballot Issue Committees registered

Discussion of November and December Commission Meeting Dates
The Commission’s meetings for November and December 2014 are scheduled for November 12th and December 17th.  Discussion ensued and agreement was reached to set the meetings for November 19th and December 17th.

Commissioner Yoshihara moved to convene executive session to consult with attorney.  Motion seconded by Commissioner Ching.  Motion carried unanimously.

Public Session reconvened – 1:15 p.m.

Regarding matters discussed in executive session
-Docket 15-29 has been deferred until the November meeting.

Chair Snipes moved to adjourn meeting.  Motion seconded by Commissioner Ching. Motion carried unanimously.  Meeting adjourned at 1:20 p.m.