Campaign Spending Commission

Campaign Spending Commission
Leiopapa A Kamehameha Building, Room 204
September 12, 2018
10:00 a.m.

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

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

Guests
Courtney Smith, Client Success Manager, Socrata
Jamie Schell, Developer, Socrata
Michael Otsuji, IT Service Operations Officer, ETS
Kyle Muranaka, IT Specialist, ETS
Jennifer Silva, IT Specialist, ETS

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

Consideration and Approval of Minutes of Meeting on 8/8/18
Chair Luke asked for comments or changes to the minutes.  There were none.  Chair Luke called for a motion to approve the minutes.

Commissioner Markley moved to approve the minutes of the 8/8/18 meeting.  Motion seconded by Commissioner Lum.  Motion carried (5-0).

New Business*Presentation and Discussion of the New Dashboard for the 2018 Election
Associate Director Baldomero introduced Office of Enterprise Technology guests Michael Otsuji, Kyle Muranaka, and Jennifer Silva as well as Socrata representatives, Courtney Smith (Client Success Manager) and Jamie Schell (Developer) for their assistance in developing the Commission’s new dashboard.

Jamie Schell presented the new dashboard with the various data visualizations for the 2018 election.  He then answered questions from the Commissioners and members from the audience.

Associate Director Baldomero stated that the dashboard is available and accessible on the Commission’s website.

*Chair Luke asked if there was any objection to taking Docket No. 19-06 out of order of business on the agenda.  There was none.

*Docket No. 19-06 – In Re the Matter of Alan Yim, David Liang, and Friends of Alan Yim
Executive Director Izumi-Nitao reported that a complaint had been filed against Respondents Alan Yim, David Liang, and Friends of Alan Yim for the late filing of the 2^nd Preliminary Primary Report.

Respondent Yim filed nomination papers to be a 2018 State Representative, District 17.  Pursuant to HRS §11-334, Respondents were required to file the 2^nd Preliminary Primary Report for the period covering 7/1/18 through 7/27/18 no later than 11:59 p.m. Hawaii standard time on 8/1/18.  Respondents did not file this report by the deadline.

On 8/2/18, Commission staff sent Respondents a letter via first class mail informing them that the 2^nd Preliminary Primary Report had not been filed and that a fine would be imposed.  On 8/5/18, Respondents electronically filed the 2^nd Preliminary Primary Report.

On 8/7/18, 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 8/21/18.  Respondents did not pay the fine.

On 8/7/18, Respondent Yim informed Commission staff that he would like the fine waived.  When he was informed by staff that that was not possible, he wanted to pursue the complaint process to challenge the fine.

On 8/22/18, Commission staff sent Respondents a copy of the complaint and informed them that the matter would be set on the 9/12/18 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 $300, and order that the fine be deposited into the general fund of the state pursuant to HRS §11-340(g).

Respondent Yim was present and said that this was his first time running as a candidate and that he cannot afford the fine.  He further stated that he received zero funds and did not spend any money. He admitted that he missed the reporting deadline, but filed the report as soon as he learned about it.

Executive Director Izumi-Nitao stated that Respondent Yim was informed that he was eligible for a conciliation agreement which would reduce the fine amount to $100, but that Respondent Yim declined and wanted to pursue the complaint process.

Commissioner Markley asked whether he understood what would be required from him when he filed nomination papers to run in the 2018 election.  Respondent Yim stated that he was nonchalant about the process and tried to breeze through it.  He stated that he now understands the seriousness of the violation.

Commissioner Shoda stated that the Commission is not open to forgive fines absent mitigating circumstances and that the conciliation agreement process was the best way for him to reduce his penalty.  He commented that in this case the fine of $300 is likely to be affirmed as filing of reports are necessary, and that the public deserves transparency.

Vice Chair Goodenow commented that the conciliation agreement process is to save time so that complaints do not have to be issued, but that he understand that Respondent Yim is a first time candidate.

Respondent Yim said that he would like to pursue a conciliation agreement.

Vice Chair Goodenow moved to defer this matter to the next Commission meeting to permit Respondents time to pursue a Conciliation Agreement.  Motion seconded by Commissioner Shoda.  Motion carried (5-0).

*Chair Luke returned to the order of business on the agenda.

*Docket No. 19-04 – In Re the Matter of Friends of Alika Atay, Alika Atay, and Donna Jones
General Counsel Kam reported that a complaint had been filed against Respondents Friends of Alika Atay, Alika Atay, and Donna Jones for 2 counts of unauthorized handling of campaign funds and 5 counts of filing false reports.  He stated that staff began investigating this matter when Donnie Becker called the Commission to complain that Respondents were not paying off his loan balance which was about $6,500 and told him that the campaign did not have any funds.  However, at this time, Respondents reported cash-on-hand of over $8,300.  As such, Commission staff subpoenaed Respondents’ campaign bank account records.

With respect to Count I, General Counsel Kam stated that Respondent Atay was not designated as the treasurer or deputy treasurer of the candidate committee, and thus, was not authorized to write 2 checks totaling $186.46 drawn upon the campaign bank account in violation of HRS §11-324(d).  He recommended a fine of $100.

With respect to Count II, General Counsel Kam stated that Chairperson Bardellini was not designated as the treasurer or deputy treasurer of the candidate committee, and thus, was not authorized to write 14 checks totaling $12,643 drawn upon the campaign bank account in violation of HRS §11-324(d).  He recommended an administrative fine of $100.

With respect to Count III, General Counsel Kam stated that Respondents filed a false 2^nd Preliminary Primary Report for the period covering July 1, 2016 to July 29, 2016 in violation of HRS §11-331(a) and §11-333(a).  More specifically, the subpoenaed campaign bank records show that there were $4,959.82 in deposits and $8,943.85 in withdrawals in contrast to Respondents’ filed 2^nd Preliminary Primary Report which reported $4,516 in contributions and $5,002.59 in expenditures.  He recommended an administrative fine of $500 and an order to file an amended report.

With respect to Count IV, General Counsel Kam stated that Respondents filed a false Final Primary Report for the period covering July 30, 2016 to August 13, 2016 in violation of HRS §11-331(a) and §11-333(a).  More specifically, the subpoenaed campaign bank records show that there were $2,833.96 in deposits and $3,032.31 in withdrawals in contrast to Respondents’ filed Final Primary Report which reported $4,746.85 in contributions and $3,843.03 in expenditures.  He recommended an administrative fine of $500 and an order to file an amended report.

With respect to Count V, General Counsel Kam stated that Respondents filed a false Preliminary General Report for the period covering August 14, 2016 to October 24, 2016 in violation of HRS §11-331(a) and §11-333(a).  More specifically, the subpoenaed campaign bank records show that there were $14,709.33 in deposits and $13,552.86 in withdrawals in contrast to Respondents’ filed Preliminary General Report which reported $10,787.08 in contributions and $10,064.33 in expenditures.  He recommended an administrative fine of $500 and an order to file an amended report.

With respect to Count VI, General Counsel Kam stated that Respondents filed a false Final Election Period Report for the period covering October 25, 2016 to November 8, 2016 in violation of HRS §11-331(a) and §11-333(a).  More specifically, the subpoenaed campaign bank records show that there were $4,849.65 in deposits and $4,106.45 in withdrawals in contrast to Respondents’ filed Final Election Period Report which reported $3,103 in contributions and $4,261.65 in expenditures.  He recommended an administrative fine of $500 and an order to file an amended report.

With respect to Count VII, General Counsel Kam stated that Respondents filed a false Supplemental Report for the period covering November 9, 2016 to December 31, 2016 in violation of HRS §11-331(a) and §11-333(a).  More specifically, the subpoenaed campaign bank records show that there were $5,701.94 in deposits and $8,090.56 in withdrawals in contrast to Respondents’ filed Supplemental Report which reported $3,069.96 in contributions and $4,014.37 in expenditures.  He recommended an administrative fine of $500 and an order to file an amended report.

General Counsel Kam 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 laws has been committed, assess an administrative fine of $2,700 and order Respondent Atay to use personal funds to pay the fine if Respondent Friends of Alika Atay did not have sufficient campaign funds, order that the fines be deposited into the general fund of the state pursuant to HRS §11-410(e), and order that Respondents amend six (6) reports covering the period January 1 to December 31, 2016 within 20 days of receipt of the Order.

Vice Chair Goodenow asked if Respondents offered any explanation.  General Counsel Kam reported that no written response was received.

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

Commissioner Shoda stated that it troubled him that Respondents filed 5 erroneous reports without regard to their accuracy.  He commented that a $500 fine was not high enough and that it did not encourage transparency and compliance.

Chair Luke stated that the recommended fine was in alignment with the Commission’s Schedule of Fines.

General Counsel Kam reported that the administrative fine guideline is $500 for this kind of violation, but the Commission could go up to a maximum fine of $1,000 pursuant to the statute.

Commissioner Shoda stated that a stronger message to ensure accurate reporting is needed.  He commented that the data visualization app becomes useless if the data filed by a committee is inaccurate.

Chair Luke stated that he was inclined to go with staff’s recommendation but that maybe the Schedule of Fines should be amended.  Executive Director Izumi-Nitao commented that the Commission has used a complaint to amend the Schedule of Fines.

Commissioner Shoda stated that 5 reports are flagrant and that a stiffer fine such as $1,000 should be assessed.

Commissioner Markley agreed but said that what precipitated this complaint was that a loan had not been paid and had concerns with Respondents paying a higher fine when they had a loan to a third party that was due and owing.  General Counsel Kam reported that the loan had been repaid in full.

Vice Chair Goodenow stated that he although there were no legal problems preventing them from increasing the fine, he had a concern about consistency and not following the administrative fine guidelines.  He suggested that the better approach would be to have the Commission look at the fine schedule again.

Commissioner Shoda stated that fines are discretionary and if the violation is egregious, the Commission should be able to increase the fine amount.  He commented that Respondents filed 6 false reports.

Commissioner Shoda moved to amend the motion to increase the fine to $1,000 for each false report.  Motion was not seconded.  Motion failed (1-4) (Chair Luke, Vice Chair Goodenow, Commissioner Lum, and Commissioner Markley opposed).

Chair Luke moved to make a preliminary determination that probable cause exists that a violation had been committed and to accept the fine and terms stated in the complaint.  Motion seconded by Vice Chair Goodenow.  Motion carried (4-1) (Commissioner Shoda opposed).

Chair Luke stated that he would like to discuss the Schedule of Fines at the Commission’s next meeting for consideration and approval of possible amendments.

*Docket No. 19-05 – In Re the Matter of Nicola Perez-Garreaud, Sasha Anderson, and Friends of Nicola
Executive Director Izumi-Nitao reported that a complaint had been filed against Respondents Nicola Perez-Garreaud, Sasha Anderson, and Friends of Nicola for the late filing of the Supplemental Report.

Respondent Perez-Garreaud did not run in the 2018 election.  Pursuant to HRS §11-334, Respondents were required to file the Supplemental Report for the period covering 1/1/18 through 6/30/18 no later than 11:59 p.m. Hawaii standard time on 7/31/18.  Respondents did not file this report by the deadline.

On 8/1/18, Commission staff sent Respondents a letter via first class mail informing them that the Supplemental Report had not been filed and that a fine would be imposed.  On 8/5/18, Respondents electronically filed the Supplemental Report.

On 8/7/18, 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 8/21/18.  Respondents did not pay the fine.

On 8/13/18, Respondent Perez-Garreaud informed Commission staff that they would like to pursue the complaint process to challenge the fine.

On 8/15/18, Commission staff sent Respondents a copy of the complaint and informed them that the matter would be set on the 9/12/18 Commission Agenda.

On 8/29/18, Respondents sent a letter in response to the complaint which the Commissioners were given a copy.

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, and order that the fine be deposited into the general fund of the state pursuant to HRS §11-340(g).

Commissioner Shoda commented on the fine amount if Respondents did not receive a single contribution in 2 years.  General Counsel Kam replied that that would not make a difference in this case and that the minimum fine for not filing this report was $200.  Associate Director Baldomero further commented that if Respondents had filed within 4 days of the deadline with no activity, they would not have been fined. But, in this case, the minimum fine kicked in because Respondents did not file his report until 8/5/18.

Associate Director Baldomero also stated that Respondents had asked about the conciliation agreement process for the fine. However, Respondents were informed that because they had two prior violations, they did not qualify for a conciliation agreement.

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 Markley.  Motion carried (5-0).

*Docket No. 19-07 – In Re the Matter of P.M. Azinga and Elect P.M. Azinga
Executive Director Izumi-Nitao reported that a complaint had been filed against Respondents P.M. Azinga and Elect P.M. Azinga for the failure to file the Supplemental Report.

Respondent Azinga registered with the Commission, but did not file nomination papers to run in the 2018 election.  Pursuant to HRS §11-334, Respondents were required to file the Supplemental Report for the period covering 1/1/18 through 6/30/18 no later than 11:59 p.m. Hawaii standard time on 7/31/18.  Respondents did not file this report by the deadline.

On 8/1/18, Commission staff sent Respondents a letter via first class mail informing them that the Supplemental Report had not been filed and that a fine would be imposed.  Respondents did not file this report.

On 8/30/18, Commission staff sent Respondents a copy of the complaint and informed them that the matter would be set on the 9/12/18 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 $500, order that the fine be deposited into the general fund of the state pursuant to HRS §11-410(e), and order that Respondents file the Supplemental Report within two (2) weeks of receipt of the Order.

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

*Docket No. 19-08 – In Re the Matter of Jason Eno and Eno for State Senate
Executive Director Izumi-Nitao reported that a complaint had been filed against Respondents Jason Eno and Eno for State Senate for the failure to file the Supplemental Report.

Respondent Eno registered with the Commission, but did not file nomination papers to run in the 2018 election.  Pursuant to HRS §11-334, Respondents were required to file the Supplemental Report for the period covering 1/1/18 through 6/30/18 no later than 11:59 p.m. Hawaii standard time on 7/31/18.  Respondents did not file this report by the deadline.

On 8/1/18, Commission staff sent Respondents a letter via first class mail informing them that the Supplemental Report had not been filed and that a fine would be imposed.  Respondents did not file this report.

On 8/30/18, Commission staff sent Respondents a copy of the complaint and informed them that the matter would be set on the 9/12/18 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 $500, order that the fine be deposited into the general fund of the state pursuant to HRS §11-410(e), and order that Respondents file the Supplemental Report within two (2) weeks of receipt of the Order.

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 Markley.  Motion carried (5-0).

*Docket No. 19-09 – In Re the Matter of Stefan Rozembersky, Samantha Rozembersky, and Rozembersky HI Senate Campaign
Executive Director Izumi-Nitao reported that a complaint had been filed against Respondents Stefan Rozembersky, Samantha Rozembersky, and Rozembersky HI Senate Campaign for the failure to file the Supplemental Report.

Respondent Rozembersky registered with the Commission, but did not file nomination papers to run in the 2018 election.  Pursuant to HRS §11-334, Respondents were required to file the Supplemental Report for the period covering 1/1/18 through 6/30/18 no later than 11:59 p.m. Hawaii standard time on 7/31/18.  Respondents did not file this report by the deadline.

On 8/1/18, Commission staff sent Respondents a letter via first class mail informing them that the Supplemental Report had not been filed and that a fine would be imposed.  Respondents did not file this report.

On 8/30/18, Commission staff sent Respondents a copy of the complaint and informed them that the matter would be set on the 9/12/18 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 $500, order that the fine be deposited into the general fund of the state pursuant to HRS §11-410(e), and order that Respondents file the Supplemental Report within two (2) weeks of receipt of the Order.

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.  Motion carried (5-0).

*Docket No. 19-11 – In Re the Matter of Native Hawaiian Political Action Committee and Joseph K. Lewis
Executive Director Izumi-Nitao reported that a complaint had been filed against Respondents Native Hawaiian Political Action Committee and Joseph K. Lewis for the late filing of the Preliminary Primary Report.

Respondent is a registered noncandidate committee.  Pursuant to HRS §11-335, Respondents were required to file the Preliminary Primary Report for the period covering 1/1/18 through 7/27/18 no later than 11:59 p.m. Hawaii standard time on 8/1/18.  Respondents did not file this report by the deadline.

On 8/2/18, Commission staff sent Respondents a letter via first class mail informing them that the Preliminary Primary Report had not been filed and that a fine would be imposed.  On 8/8/18, Respondents electronically filed the Preliminary Primary Report.

On 8/13/18, Commission staff sent Respondents a letter via first class mail informing them that a fine of $1,254.74 would be assessed for the late filing of the report and that the deadline to pay the fine was 8/27/18.  Respondents did not pay the fine.

On 9/4/18, Commission staff sent Respondents a copy of the complaint and informed them that the matter would be set on the 9/12/18 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 $1,254.74, and order that the fine be deposited into the general fund of the state pursuant to HRS §11-340(g).

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 Markley.  Motion carried (5-0).

Executive Director Izumi-Nitao stated that the forty-five (45) 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.

*Chair Luke asked if there was any objection to taking Proposed Conciliation Agreement No. 19-35 and 19-76 out of order of business on the agenda.  There was none.

*Proposed Conciliation Agreement No. 19-35 – In Re the Matter of University of Hawaii Professional Assembly 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 $2,000 to $666.67.  Chair Luke asked if there were any comments or questions.

Deborah Hartmann from University of Hawaii Professional Assembly PAC was present and stated her concern that so many committees were found to be in violation of the electioneering communication statute .  She stated that Respondents strive to be accurate, on time, and not to make a mistake.  She commented on the importance of a fine and that Respondents are in full support of revisiting this statute next legislative session.

General Counsel Kam reported that Commission staff submitted a bill last legislative session to clarify the statute concerning the date of filing the Statement as well as applying the law to all mailers (not just bulk mailers).  The Commission’s bill did not get a hearing.  Executive Director Izumi-Nitao reported that staff will submit another bill next legislative session to clarify this statute.

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

*Proposed Conciliation Agreement No. 19-76 – In Re the Matter of Hawaii Laborers-Employers Cooperation and Education Trust
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Late Contributions Report and requests that they assess a reduced fine from $500 to $250.  Chair Luke asked if there were any comments or questions.

Joy Kimura from the Hawaii Laborers-Employers Cooperation and Education Trust was present and requested that the fine be waived due to the following mitigating circumstances:  Due to personnel issues, the report was not filed.  Ms. Kimura assumed the responsibility of filing the report; Ms. Kimura was involved in an accident on 7/31/18 and was absent from work until 8/6/18; Ms. Kimura tried to file the report on 8/15/18 while she was away on a business trip, but decided that she should go to the Commission’s office for assistance; and, on the day she planned to go to the Commission’s office for assistance, the office was closed due to Hurricane Lane.  On 8/28/18, she went to the Commission’s office and received assistance in filing the report on that day. Ms. Kimura produced documents evidencing the mitigating circumstances to the Commission.

Chair Luke moved to set aside the proposed conciliation agreement, find a violation of the campaign finance laws due to Respondents’ late filing of the Late Contributions Report, and to waive the $500 fine due to mitigating circumstances.  Motion seconded by Vice Chair Goodenow.  Motion carried (5-0).

*Chair Luke returned to the order of business on the agenda.

*Proposed Conciliation Agreement No. 19-33 – In Re the Matter of Friends of Clarence Nishihara
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.

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

*Proposed Conciliation Agreement No. 19-34 – In Re the Matter of Friends of Tommy Waters
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.

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

*Proposed Conciliation Agreement No. 19-36 – In Re the Matter of Friends of Benton Rodden
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.

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

*Proposed Conciliation Agreement No. 19-37 – In Re the Matter of Friends of Cynthia Nazara
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the 1^st Preliminary Primary Report and requests that they assess a reduced fine from $200 to $66.67.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

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

*Proposed Conciliation Agreement No. 19-38 – In Re the Matter of Friends of Tim Richards
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.

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

*Proposed Conciliation Agreement No. 19-39 – In Re the Matter of Friends of Mark Nakashima
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.

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

*Proposed Conciliation Agreement No. 19-40 – In Re the Matter of Aila 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 $250 to $83.33.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

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

*Proposed Conciliation Agreement No. 19-41 – In Re the Matter of Friends of Tony Solis
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the 1^st Preliminary Primary Report and requests that they assess a reduced fine from $200 to $66.67.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

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

*Proposed Conciliation Agreement No. 19-42 – In Re the Matter of Friends of Tom Belekanich
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the 1^st Preliminary Primary Report and requests that they assess a reduced fine from $200 to $66.67.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

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

*Proposed Conciliation Agreement No. 19-43 – In Re the Matter of KAMA 4 COUNCIL
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the 2^nd Preliminary Primary 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.

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

*Proposed Conciliation Agreement No. 19-44 – In Re the Matter of California Investment Regional Center, LLC
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Preliminary Primary Report 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.

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

*Proposed Conciliation Agreement No. 19-45 – In Re the Matter of Friends of Deb Kaiwi
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the 1^st Preliminary Primary Report and requests that they assess a reduced fine from $200 to $66.67.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

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

*Proposed Conciliation Agreement No. 19-46 – In Re the Matter of Friends of Deb Kaiwi
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the 2^nd Preliminary Primary Report and requests that they assess a reduced fine from $300 to $150.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

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

*Proposed Conciliation Agreement No. 19-47 – In Re the Matter of Friends of Scot Matayoshi
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.

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

*Proposed Conciliation Agreement No. 19-48 – In Re the Matter of Tiare Lawrence for Maui
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 $750 to $250.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

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

*Proposed Conciliation Agreement No. 19-49 – In Re the Matter of Friends of Lorraine R. Inouye
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 $10,000 to $3,333.33.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Chair Luke asked why the fine was so much higher than others. Executive Director Izumi-Nitao responded that this case involved a great number of ads, including Facebook ads that required extensive review.

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

*Proposed Conciliation Agreement No. 19-50 – In Re the Matter of Fukunaga For Council
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.

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

*Proposed Conciliation Agreement No. 19-51 – In Re the Matter of Maui Tropical Plantation
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Preliminary Primary 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.

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

*Proposed Conciliation Agreement No. 19-52 – In Re the Matter of Joann Yukimura’s Many Friends
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 $1,750 to $583.33.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

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

*Proposed Conciliation Agreement No. 19-53 – In Re the Matter of Friends of Karlen Ross District 17
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.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

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

*Proposed Conciliation Agreement No. 19-54 – In Re the Matter of Friends of Cory Chun
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 $100 to $50.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

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

*Proposed Conciliation Agreement No. 19-55 – In Re the Matter of Friends of Elle Cochran
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 $750 to $250.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

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

*Proposed Conciliation Agreement No. 19-56 – In Re the Matter of Friends of Dean Hazama
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the 2^nd Preliminary Primary Report and requests that they assess a reduced fine from $1,454.89 to $484.96.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

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

*Proposed Conciliation Agreement No. 19-57 – In Re the Matter of Defend Hawaii Now
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 $3,000 to $1,000.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

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

*Proposed Conciliation Agreement No. 19-58 – In Re the Matter of Friends of Eileen Ohara
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.

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

*Proposed Conciliation Agreement No. 19-59 – In Re the Matter of Friends of Milo Spindt
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the 2^nd Preliminary Primary 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.

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

*Proposed Conciliation Agreement No. 19-60 – In Re the Matter of Friends of Milo Spindt
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Late Contributions Report 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.

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

*Proposed Conciliation Agreement No. 19-61 – In Re the Matter of Friends of Heidi Tsuneyoshi
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 $750.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

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

*Proposed Conciliation Agreement No. 19-62 – In Re the Matter of David Ige for Governor
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.

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

*Proposed Conciliation Agreement No. 19-63 – In Re the Matter of Friends of Terez Amato
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.

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

*Proposed Conciliation Agreement No. 19-64 – In Re the Matter of Friends of Dylan Armstrong
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the 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.

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

*Proposed Conciliation Agreement No. 19-65 – In Re the Matter of Friends of Lynn DeCoite
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.

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

*Proposed Conciliation Agreement No. 19-66 – In Re the Matter of Friends for Richard Onishi
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 $1,750 to $583.33.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

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

*Proposed Conciliation Agreement No. 19-67– In Re the Matter of Friends of Rosalyn Baker
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.

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

*Proposed Conciliation Agreement No. 19-68 – In Re the Matter of Friends of Will Espero
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.

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

*Proposed Conciliation Agreement No. 19-69 – In Re the Matter of Friends of Dru Mamo Kanuha
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 $1,250 to $416.66.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

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

*Proposed Conciliation Agreement No. 19-70 – In Re the Matter of Akaka 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 $250 to $83.33.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

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

*Proposed Conciliation Agreement No. 19-71 – In Re the Matter of Friends of Andria Tupola
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.

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

*Proposed Conciliation Agreement No. 19-73 – In Re the Matter of Friends of Sam King
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.

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

*Proposed Conciliation Agreement No. 19-74 – In Re the Matter of Friends of Kim Coco
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.

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

*Proposed Conciliation Agreement No. 19-75 – In Re the Matter of Friends of Mark Nakashima
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 $125.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

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

*Proposed Conciliation Agreement No. 19-77 – In Re the Matter of Friends of Ashley Kierkiewicz
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 $1,250 to $416.67.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

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

*Proposed Conciliation Agreement No. 19-78 – 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 Statement of Information for Electioneering Communications and requests that they assess a reduced fine from $2,750 to $916.67.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

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

*Report and Discussion on Ballot Questions for the 2018 General Election
Associate Director Baldomero reported that there are fourteen (14) ballot questions for the 2018 General Election (i.e., 2 from State of Hawaii, 2 County of Hawaii, 3 County of Maui, 6 County of Kauai, and 1 City & County of Honolulu).  He stated that there are 3 ballot issue committees registered with the Commission to address the surcharge on investment real property to support public education (i.e., HSTA for Schools Our Keiki Deserve, Affordable Hawaii Coalition PAC, and Watumull Properties Corporation).  He discussed the proposed amendments and asked if there were any questions.

Chair Luke stated that Affordable Hawaii Coalition PAC is housed at the Chamber of Commerce of which he is a current board member.  He stated that he has recused himself from Chamber of Commerce business that may concern this ballot issue.

General Counsel Kam stated that in their lawsuit challenging the ballot question regarding surcharge on investment real property to support public education, the four counties’ motion for preliminary injunction was denied by the Circuit Court.  Deputy Attorney General Kunimoto confirmed that the ballot issue will proceed and that the ballot issue question was found not to be defective. 

Old Business – None

Report from the Executive Director
Report on Compliance of Filing Timely Disclosure Reports
Executive Director Izumi-Nitao reported that 4 referrals to the Attorney General – Civil Recoveries Division remain.

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

• Final Primary Report (reporting period 7/28/18 to 8/11/18) due on 8/31/18
  • 233 candidate committees were expected to file
    • 214 (92%) filed on time
    • 8 (3%) filed late
    • 11 (5%) did not file (names posted on the Commission’s website)
    • As of today, 6 have not filed
  • 253 noncandidate committees were expected to file
    • 226 (89%) filed on time
    • 1 (1%) filed late
    • 28 (10%) did not file (names posted on the Commission’s website)
    • As of today, 13 have not filed
• Expenditures of Public Funds Report (reporting period 1/1/18 to 8/11/18) due on 8/31/18
  • 10 candidate committees were expected to file
  • 10 (100%) filed on time

• Upcoming Reports
  • (NCC) 1^st Preliminary General Report (reporting period 8/12/18 to 9/26/18) due on 10/1/18
  • (CC) 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
  • (NCC) 2^nd Preliminary General Report (reporting period 9/27/18 to 10/22/18) due on 10/29/18

• Update on Compliance of Prior Matters
  • Kaniela Ing – General Counsel Kam reported that Mr. Ing was late paying his first fine payment which is due the first of every month, but that he paid it for the month of September. As for amending the 23 reports, nothing has been submitted but he has until 10/27/18.  Failure to comply with these outstanding items may result in a referral to the Attorney General’s Office to obtain a court order to enforce the Commission’s order.
  • Eric Ching – General Counsel Kam reported that Defendants’ motion to dismiss was continued to 12/10/18.

Discussion on Topics for 2018 Annual Online Survey
Associate Director Baldomero reported that this is the 7^th year of the survey and that it is a 5-10 min web-based survey to help the Commission improve and evaluate the effectiveness of Commission operations and communications for fiscal year 2018 (i.e., 7/1/17 to 6/30/18) as well as provide feedback.  He stated that it covers 6 areas:  Background Information (to understand the evaluator’s relationship to the Commission); Communication/Access to the Commission; Education/Training provided by the Commission; Compliance and Enforcement Information; Public Funding; and Other General Matters.  The survey will go out on 9/14/18 and close on 10/31/18.  He stated that the Commission’s direct outreach is to 1,900 people via email and social media.  Last year, 125 responses were received, and the most responses was 140 in 2016.

Executive Director Izumi-Nitao stated that staff will report its findings and comments at the November Commission meeting.

EXECUTIVE SESSION
Chair Luke asked for a motion to convene Executive Session to consider and approve Executive Session minutes from the Commission meeting on 8/8/18.

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

Public Session reconvened at 12:13 p.m.

Vice Chair Goodenow moved to adjourn the meeting.  Motion seconded by Chair Luke.  Motion carried (5-0).  Meeting adjourned at 12:13 p.m.

Next Meeting:
Scheduled for Wednesday, October 17, 2018, at 10 a.m.