CSC Newsletter – January 2025, Vol. 31, No. 1

Posted in Main, Newsletter

REMINDER TO ALL COMMITTEES TO FILE THE SUPPLEMENTAL REPORT

The next report for all committees is the Supplemental Report covering the period of November 6, 2024 to December 31, 2024 (for all noncandidate committees and candidate committees whose candidates ran in the 2024 election) or July 1, 2024 to December 31, 2024 (for candidate committees whose candidates did not run in the 2024 election).  This report must be electronically filed on your respective filing systems (i.e., candidate filing system (CFS) or noncandidate committee filing system (NCFS)) no later than 11:59 p.m. Hawaiian standard time on Friday, January 31, 2025.

Failure to file this report by the deadline will result in a fine and, if you are a candidate committee or noncandidate committee, your committee’s name will be posted on the Commission website under “Candidate Committees That Failed to File or Correct a Report” or “Noncandidate Committees That Failed to File or Correct a Report.”  Moreover, if a fine is assessed against your committee and you fail to timely pay it, Commission staff will issue a complaint against your committee and set it for consideration at the next public Commission meeting.  Therefore, we encourage all committees to timely file their reports.

As a reminder, committees do not have to wait until the January 31st deadline to file the report.  The reporting period for the Supplemental Report ended on December 31st so the report can be filed as early as January 1st, but no later than January 31st.

REPORTING SCHEDULES

New reporting schedules have been posted on our website and are provided via the link below for your convenience to track upcoming reporting deadlines.  The reporting schedules are also available in the Commission’s downloadable calendar and can be downloaded to your digital calendar on your computer or mobile device.

The Commission will add the necessary reports to your reporting schedule in your respective electronic filing system (CFS and NCFS).  These reports must be electronically filed no later than 11:59 p.m. Hawaiian standard time on the day of the deadline.  You may also want to consider filing the reports early to avoid penalties because the reporting deadline is always a few days or weeks after the reporting period has closed.

Failure to file any report by the deadline will result in a fine and the name of your committee will be posted on the Commission’s website under “Candidate Committees That Failed to File or Correct a Report” or “Noncandidate Committees That Failed to File or Correct a Report.”  Further, if a fine is assessed against your committee and you fail to timely pay it, Commission staff will issue a complaint against your committee and set it for consideration at the next public Commission meeting.  Therefore, we encourage all committees to timely file their reports and pay any fines.

Lastly, please remember that when you electronically file your reports with the Commission, candidates, treasurers, and chairpersons (for noncandidate committees) are certifying that the information contained in the filed reports are true, complete, and accurate.  Therefore, it is strongly advised that you verify and validate your reports before you file them since the Commission will rely on the electronically filed information which could generate an inquiry/investigation if inaccurate.

UPDATING ORGANIZATIONAL REPORTS

As of January 1, 2025, candidate committees that login to the candidate filing system (CFS) and noncandidate committees that login to the noncandidate committee filing system (NCFS) will be presented with their Organizational Report. Please take the time to review your Organizational Report and make any needed changes.

HRS §§11-322(b) and 11-323(b) provides 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 attention of the committee chairperson or treasurer.  Failure to do so may result in a fine as well as prevent the Commission from communicating with you as well as a new statutory mandate requiring the Commission to post the candidate, candidate committee, and noncandidate committee’s name on its website if the report is not corrected within 2 weeks after the Commission provides you with a notice to correct.  Further, if you are a noncandidate committee, you may be subject to a $1,000 fine.

Also, if you are a candidate who intends to run for office in the next election and would like to carry over surplus campaign funds, you must file an amended Organizational Report on the CFS.  This applies to candidates who failed to be elected to office who will be running again and candidates who are elected to office who will be running again for a different office to which they were elected and includes term-limited candidates.

COMMISSION’S 2025 BUDGET REQUEST FOR ADDITIONAL FUNDING

The Commission’s budget which will go before the 2025 Legislature for approval is requesting to:  (1) Add 2 full-time permanent positions and general funds in the amount of $115,000 for FY 2026 and $180,000 for FY 2027-2029 and (2) Add $1 million in general funds to replace the Commission’s electronic filing systems for the committees and the public for FY 2026 and $200,000 for FY 2027-2029 for maintenance and support.

ADDITIONAL PERSONNEL

The Commission has not had an increase in personnel for the past 29 years despite the number of candidate and noncandidate committees having almost doubled and the campaign finance laws increasing the volume and scale of its duties and responsibilities.

Act 10, Special Session 1995, was the single year that a sum of $70,000 was appropriated for one investigator for the Commission for FY 1995-1996 and was then sunset.  This request essentially restores this position and makes it permanent.  It is extraordinary that a Commission investigator does not exist.  Pursuant to HRS §11-314(7), one of the Commission’s duties is to investigate and hold hearings for receiving evidence of any campaign finance violations.  To this extent, the Commission has pursued enforcement actions through investigations conducted by its General Counsel as well as entered into contracts and memorandums of agreements with investigators from outside agencies because the Commission has no investigator on staff.

Currently, there are only 5 Commission staff members who oversee 700+ committees that have anywhere from 1-3 officers who contact the Commission for assistance.  Over the years, the number of candidate committees has almost doubled from 300 to over 550 and the number of noncandidate committees has grown from 200 to over 300.  These numbers continue to increase rather than decrease with each election period.  Of significance is that with each election, there are hundreds of new candidates and noncandidate committees that do not understand how to comply with the various requirements of campaign finance law (e.g., registering; filing disclosure reports, fundraiser notices, electioneering communications, etc.; having disclaimers on advertising; reporting contributions, expenditures, loans, durable assets, etc.; terminating registration) thereby generating hundreds of staff hours assisting committees over the phone, in-person, and by email as well as a number of enforcement actions for violations.  Depending on whether it is an election year (which is in every even-numbered year), these 700+ committees file anywhere from 2-8 mandatory reports with the Commission and the number of reports will increase in specific situations (i.e., public funding, late contributions/ expenditures).  Each of these reports must be reviewed and the committees must be contacted if there is a reporting problem or a violation which means the assessment and collection of a fine(s) as well as the employment of subsequent administrative proceedings/hearings for non-compliance.  Based on the current law, each candidate and/or office may have a different reporting period thereby making it even more complicated.  As such, the Commission seeks an additional assistant to address the volume and scale of committees.

BUILD NEW ELECTRONIC FILING SYSTEMS

The laws in the State of Hawaii mandate the electronic filing of disclosure reports by candidate and noncandidate committees as well as an electronic searchable database.

In consideration of updated and newer technologies including applications of artificial intelligence, the Commission is requesting a general fund of appropriation of $1 million in FY 2026 to procure an approved vendor to build and replace current electronic filing systems for the committees and the public, and $200,000 for FY 2027-2029 for maintenance and support.  The Commission believes that a new electronic filing system is necessary that will improve reporting, compliance, enforcement, user functionality and access, as well as increase transparency, accountability, and clean elections for a more sustainable future.  Notably, committees are not even able to use the current system to file reports using a mobile phone.

Currently, the Commission works closely with Enterprise Technology Services (“ETS”) in overseeing the development, management, and enhancements of the 3 filing systems (i.e., candidate committees, noncandidate committees, and public) and the searchable database.  In the recent past few years, the Commission has had to address obsolete and aging software and hardware issues with ETS requiring rewrites of the systems to keep it running – especially during the election years.  Further, with every legislative session, laws are created or amended which impact the electronic filing systems which requires modifications.

In summary, in comparison to other State and county good government groups with compliance and enforcement duties, the Commission has had the smallest budget and personnel despite a tremendous growth in committees, an expansion in duties and responsibilities, and enforcement mandates.  No additional monies have been invested in this Commission who services over 700+ committees and the public.

The Commission respectfully seeks your support in its budget request which will go before the 2025 legislative session for consideration so that the Commission may ensure that the integrity and transparency of the campaign finance process is upheld.

COMMISSION’S BILLS FOR THE 2025 LEGISLATIVE SESSION

For the 2025 legislative session, the Commission submitted four (4) bills to the House Speaker and Senate President for introduction.  Notably, all of these bills were submitted in the last session, but were not successful.

  • RELATING TO PARTIAL PUBLIC FINANCING OF ELECTIONS

This bill increases the amount of partial public financing available for all elected offices.  Specifically, it amends HRS §11-425 by increasing the maximum amount of public funds available for all offices by 50% and for the Office of Hawaiian Affairs from $1,500 in an election year to 10% of the expenditure limit for each election.  Amends HRS §11-429(a) by increasing the amount of qualifying contributions required to be collected for the Office of Hawaiian Affairs from more than $1,500 in the aggregate to more than $5,000 in the aggregate.  Provides for payments of $2 for each $1 of qualifying contributions in excess of the minimum qualifying contribution amounts.  Provides for an unspecified amount of appropriations for the two fiscal years of the next biennium to pay for the increase in the partial public financing program.  Lastly, it establishes two full-time equivalent (2.0 FT) positions in the Commission and appropriates funds.

  • RELATING TO CAMPAIGN CONTRIBUTIONS

This bill amends HRS §11-364 to provide that an excess contribution of more than $100 in cash, in the aggregate, from a single person during an election period to a candidate, candidate committee, or noncandidate committee shall escheat to the Hawaii election campaign fund if not returned to the contributor within 30 days.

  • RELATING TO CAMPAIGN CONTRIBUTIONS

This bill amends HRS §11-355 to expand the government contractor ban by including state and county grantees under Chapter 42F in the ban as well as the officers and their immediate family of the government contractor and government grantee.  Currently, only the entity that is the government contractor, is prohibited from making political contributions.  A contractor can easily get around the ban by having its officers, and their family member make contributions, including false name contributions.  This bill will address this problem.  Also, state grantees are in the same position as government contractors.  Both receive state funds that have been appropriated by the Legislature.  Section 2 of the bill provides that excess contributions under HRS §§11-357, 11-358, 11-359, or 11-360 shall escheat to the Hawaii Election Campaign Fund if not returned to the contributor within 30 calendar days, and any excess contribution under HRS §11-362 shall escheat to the Hawaii Election Campaign Fund if not returned to the contributor within 30 calendar days of the end of the election period.

  • RELATING TO CAMPAIGN CONTRIBUTIONS

This bill amends HRS §11-357 to prohibit elected officials from soliciting and accepting campaign contributions during any regular session or special session of the state legislature, including any extension of any regular session or special session and any legislative recess days, holidays, and weekends.

LEGISLATIVE SESSION CONSIDERATIONS – FUNDRAISER BAN FOR ELECTED OFFICIALS AND NO LOBBYIST CONTRIBUTIONS

As the 2025 Legislative session is about to begin on January 15, 2025, the Commission would like to remind you of two statutory prohibitions.

First, if you are an elected State or county official, you are prohibited from holding a fundraiser or fundraiser event to raise contributions for which any price is charged or any contribution is suggested for attendance during a regular session or special session of the state legislature.

Second, if you are a lobbyist actively registered with a State or county ethics board or commission, you are prohibited from contributing to, or promise to contribute to at a later time, an elected official, candidate, candidate committee, or any other individual required to file an Organizational Report with the Commission, or make an expenditure on behalf of these persons, during any regular or special session of the legislature, and for 5 calendar days before (i.e., January 10, 2025) and after a session (i.e., May 7, 2025).  Any prohibited contribution shall escheat to the Hawaii Election Campaign Fund.

2024 ELECTION OBSERVATIONS

In 2024, there were 259 candidates running for 103 seats up for election out of 128 elective seats in the state of Hawaii and its four counties.  The 103 seats up for election in 2024 were:  Senate (13), House (51), Honolulu Mayor (1), Hawaii Mayor (1), Honolulu Prosecuting Attorney (1), Hawaii Prosecuting Attorney (1), Kauai Prosecuting Attorney (1), Honolulu City Council (5), Hawaii County Council (9), Maui County Council (9), Kauai County Council (7), and Office of Hawaiian Affairs (4). 

21 incumbent candidates ran unopposed, and 8 seats were open meaning there was no incumbent running in that race due to term limits or the incumbent vacating the office.  Notably, there were 97 Democratic candidates running in 62 of the 64 legislative races, 50 Republican candidates running in 44 of the 64 legislative races, 2 Green candidates running in 2 of the 64 legislative races, 2 Libertarian candidates running in 2 of the 64 legislative races, 1 We The People candidate running in 1 of the 64 legislative races, and 107 candidates running as Non-Partisan Special candidates for County and OHA races.

Some of the key points of this election include the following:

  • 85 or 89% of the 95 incumbent candidates who ran for reelection were successful.  21 of the 85 successful incumbent candidates were unopposed (Senate: Henry Aquino, Troy Hashimoto, Jarrett Keohokalole, Tim Richards; House: Della Au Belatti, Mark Hashem, Darius Kila, Sam Kong, Rachele Lamosao, Mark Nakashima, Gene Ward, Justin Woodson; Honolulu Prosecuting Attorney: Steve Alm; Hawaii Prosecuting Attorney: Kelden Waltjen; Kauai Prosecuting Attorney: Rebecca Like; Honolulu City Council: Radiant Cordero, Augie Tulba, Andria Tupola; Hawaii County Council: Ashley Kierkiewicz; Maui County Council: Gabe Johnson, Shane Sinenci).  The 10 unsuccessful incumbent candidates were Hawaii Mayor Mitch Roth (seat won by Kimo Alameda), House Speaker Scott Saiki (seat won by Kim Coco Iwamoto), Representative May Mizuno (seat won by Ikaika Hussey), Representative Ernesto Ganaden (seat won by Shirley Templo), Representative Micah Aiu (seat won by Garner Shimizu), Representative Rose Martinez (seat won by Julie Reyes Oda), Representative Natalia Hussey-Burdick (seat won by Michael Lee), Hawaii County Councilmember Cindy Evans (seat won by James Hustace), and Kauai County Councilmembers Bill DeCosta and Ross Kagawa (seats won by Fern Holland and Arryl Kaneshiro). 9 of the 10 candidates who defeated incumbents never held elected office before.  The only exception is Arryl Kaneshiro who is a former Kauai County Councilmember returning to the Council.
  • 8 candidates won open seats with 4 of those candidates never holding elected office before (Samantha DeCorte won Senate District 22, Tina Grandinetti won House District 20, Chris Muraoka won House District 45, and Ikaika Olds won House District 23).  2 candidates vacated their office or was term-limited and won open seats for a different office (Hawaii County Councilmember Sue Lee Loy was term-limited and won a seat to House District 2 vacated by Representative Richard Onishi, and Representative Scott Nishimoto vacated his seat and won a seat to Honolulu City Council District 5 vacated by Councilmember Calvin Say).  2 candidates who held elected office in the past won open seats (Former State Senator and US Congressman Kai Kahele won the Hawaii Island OHA seat vacated by Mililani Trask, and former Hawaii County Councilmember Dennis Onishi won the Hawaii County Council District 3 vacated by Sue Lee Loy allowing him to return to the Council).
  • The top 2 candidates receiving the most contributions were Honolulu Mayor Rick Blangiardi ($2,281,743.09) and House Speaker Scott Saiki ($344,989.64).
  • The top 2 candidates making the most expenditures were Honolulu Mayor Rick Blangiardi ($1,664,751.44 with a cost-per-vote for the primary election of $13.31) and Hawaii Mayor Mitch Roth ($389,797.35 with a cost-per-vote for the primary election of $21.13 and a cost-per-vote for the general election of $10.96).
  • The top 2 candidates receiving the most loans were Senate District 23 candidate Clayton Hee ($118,955.32 in personal loans) and House District 7 candidate Tim Dalhouse ($61,228.72 in personal loans).  Both candidates were unsuccessful in their elections.
  • The top 2 candidates receiving the most support from independent expenditures were Maui County Councilmember Natalie Kama ($266,025.84) and Maui County Councilmember Thomas Cook ($195,585.12).  Both candidates were successful in their elections.
  • The top 2 candidates receiving the most opposition from independent expenditures were House District 39 candidate Elijah Pierick ($2,653.91) and Senate District 22 candidate Cedric Gates ($315).  Elijah Pierick was successful in his election, whereas Cedric Gates was unsuccessful in his election.
  • 110 or 42% of the 259 candidates running in 2024 filed the Affidavit to voluntarily agree with the expenditure limit set for their office and 25 or 10% of the 259 candidates running in 2024 filed the Statement to notify the Commission of their intent to seek partial public funding.  View the list of Affidavit filers and the list of Statement filers.  10 candidates running in 2024 received a total of $52,053.09 in partial public funding with the most going to Kauai County Councilmember KipuKai Kuali’i totaling $11,508.94 followed by Kauai County Council candidate Arryl Kaneshiro totaling $9,275.  7 of the 10 candidates receiving public funds won their races (Kauai County Council candidate Fern Holland, Kauai County Council candidate Arryl Kaneshiro, Kauai County Councilmember KipuKai Kualii, Representative Mahina Poepoe, Kauai County Councilmember Melvin Rapozo, Maui County Councilmember Keani Rawlins-Fernandez, and Maui County Councilmember Yuki Lei Sugimura).
  • 254 fundraisers were held in 2024 by candidates running for office which is lower than the 358 fundraisers held in 2022, but more than the 166 fundraisers held in 2020.  View a list of fundraisers held in 2024.  2024 was the first election year that elected officials were prohibited from holding fundraising events during any regular session or special session of the state legislature, including any extension of any regular session or special session and any legislative recess days, holidays, and weekends.

With respect to noncandidate committees, there were 321 registered noncandidate committees in 2024 of which 290 were standard noncandidate committees, 24 were Super PACs, 6 were political parties, and 1 was a ballot issue committee.

  • The top 2 Super PACs receiving the most contributions were For A Better Tomorrow ($8,611,079.52) and Be Change Now ($4,993,431.76).
  • The top 2 Super PACs making the most independent expenditures were For A Better Tomorrow ($1,055,621.42) and Planned Parenthood Alliance PAC ($38,852.42).
  • The 1 ballot issue committee was Hawaii Civil Rights Voter Education Fund dba Vote Yes For Marriage Equality who received $81,972.01 in contributions and made $70,419.59 in expenditures to support the State Constitutional Amendment Concerning the Authority of the Legislature to Reserve Marriage to Opposite-Sex Couples.

TERM LIMITED CANDIDATES

If you are a candidate who is term limited for the office for which you presently occupy, contributions may be sought only if the committee has no surplus and has debt, unpaid expenses, or unpaid loans.  See, Hawaii Administrative Rules (HAR) §3-160-31(b)(2).  If this does not apply and you intend to seek contributions to run for elective office in the next subsequent election, then you must amend your Organizational Report to notify the Commission and the public of the office you intend to run for within 10 days of receiving contributions or making or incurring expenditures of more than $100 for that office.  The contribution limits of the 2026 or 2028 election period will apply to these contributors.

TERMINATION OF COMMITTEE REGISTRATION WITH THE COMMISSION

If you are a candidate who does not anticipate running in a future State or county election, or you are a noncandidate committee that does not intend to participate in future State or county elections, and your committee has no surplus or deficit in campaign funds, you may want to consider terminating your registration with the Commission.  If so, you will need to complete and submit the following documents:  (1) A “Request for Termination of Registration” form for candidate committees or “Request for Termination of Registration” form for noncandidate committees; and (2) A closing bank statement verifying that your committee’s bank account has been closed.  Further, you must not have any outstanding fines or unresolved matters with the Commission.  Assuming everything is in order, the Commission will approve your termination request and you will no longer be required to electronically file reports with the Commission.

VIOLATIONS OF THE CAMPAIGN FINANCE LAWS

The following candidate committees violated the Hawaii campaign finance laws and have failed to comply with the Commission’s orders by refusing to register with the Commission, file required disclosure reports, and/or pay assessed fines.  Pursuant to HRS §11-410(d), the Commission has been pursuing enforcement actions with the assistance from the Attorney General’s Office – Civil Recoveries Division.  Furthermore, pursuant to HRS §11-156, a candidate who has unfiled disclosure reports or unpaid fines will not receive a certificate of election should that candidate win in a subsequent election.

  • Henry Cho
  • Thora-Jean Cuaresma, TJ CUARESMA – CANDIDATE SD22
  • Shaena Hoohuli, Hoohuli Headquarters
  • Kukana Kama-Toth, Friends of Kukana Kama-Toth
  • Robin Knox, Robin 4 Maui
  • Candace Linton
  • Jonah Lion, Campaign ALOHA
  • Lono Mack, MACK
  • Ryan Malish, 808Ryan4Senate
  • Devin McMackin, Friends of Big Mac
  • Chris Toafili, Chris Toafili
  • Wayne Chen, Friends of Wayne Chen
  • Mitch McPeek, Mitch McPeek
  • Feki Pouha, Friends of Feki Pouha
  • Brendan Schultz, Schultz for District 5
  • Christian Ulufanua, Christian Ulufanua

The following noncandidate committees violated the Hawaii campaign finance laws and have failed to register, file required disclosure reports, and/or pay assessed fines. 

  • Pono Life Sciences, LLC
  • United Group of Home Operators, Inc.
  • Universal Equipment Rental Hawaii, LLC
  • Collaborative7 Architects LLC
  • KH Makaha LLC

NEW – CYBER-LEARNING VIDEOS

We have posted 29 new cyber-learning videos on the Commission’s website for your viewing to assist you with the various functions associated with filing your reports on the Candidate Filing System and the Noncandidate Committee Filing System.  These videos are available 24/7 on our website and are bite-size training modules ranging from 5-7 minutes so you can obtain instructions based on your needs.

RESULTS OF THE COMMISSION’S 2024 ONLINE SURVEY

Mahalo to everyone who responded to our 2024 online survey.  View the 2024 Survey Results and the Report on 2024 Annual Online Survey in the minutes of the Commission’s
monthly meeting held on November 13, 2024.

REMINDER TO CHECK OFF THE $3 BOX ON YOUR 2025 TAX RETURN

The Commission continues to urge you to check off the $3 “yes” box on your 2025 tax return which permits $3 from state funds (or $6 if married and filing a joint return) to be allocated to the Hawaii Election Campaign Fund.  The health and sustainability of public funding depends on greater participation of Hawaii taxpayers in checking off the $3 box.  Checking off this box does not increase your tax or reduce your refund.

2025 MEETING SCHEDULE, MEETING AGENDAS AND BOARD PACKETS

Commission meetings for 2025 are generally scheduled for the 2nd Wednesday of each month at 10:00 a.m. via remote Zoom video conferencing and/or in-person in Conference Room 204, Leiopapa A Kamehameha Building, 235 S. Beretania Street, Honolulu, Hawaii 96813.  View the 2025 Meeting Schedule, Meeting Agendas and Board Packets.  Meeting location, dates and times are subject to change so please check the website prior to attending a meeting.

DOWNLOADABLE CALENDAR AVAILABLE ON THE COMMISSION’S WEBSITE

An updated and downloadable calendar of events including (but not limited to) the candidate committee and noncandidate committee reporting schedules, the Commission’s monthly meeting schedule, and the State holidays can be downloaded by individuals into their Apple, Google, Microsoft Outlook, and Yahoo calendars as well as many other calendar programs that use the standard iCal format, from the Commission’s website.  View the Commission’s Downloadable Calendar.

STANDARD FINE GUIDELINES

The Commission has adopted a Schedule of Fines pursuant to Hawaii Administrative Rules (HAR) §3-160-73(a).  Before the commencement of the 2026 election, the Commission will consider revising its fine schedule at a publicly noticed meeting.  View the Schedule of Fines.

2025 FEDERAL STANDARD MILEAGE RATE ANNOUNCED BY THE INTERNAL REVENUE SERVICE (IRS)

Effective January 1, 2025, for those committees that seek reimbursement from campaign funds for the campaign related use of a personal vehicle, the federal standard mileage rate is 70 cents per mile as announced in IRS Notice 2025-5 (an increase of 3 cents from 2024).  The Commission reminds these committees that a daily mileage log noting the campaign use and personal use of the personal vehicle satisfies recordkeeping requirements of HAR §3-160-23.  See, HAR §3-160-45(b)(2).