Campaign Spending Commission

Draft

Campaign Spending Commission Meeting
Zoom Video Conference
October 8, 2025
10:00 a.m.

Commissioners Present
David Chee, Danton Wong, Jon Itomura, Barbara Polk

Commissioner Excused
Neal Herbert

Staff Present
Kristin E. Izumi-Nitao, Tony Baldomero, Kristie Chang, Terence Lau, Anthony Diep

Deputy Attorney General
Candace Park

Guest
Richard Wiens

Call to Order
Chair Chee called the meeting to order at 10:01 a.m.

Chair Chee went over the procedures for the remote meeting via Zoom and introduced the Commissioners and Commission staff who were present.  He stated that Vice-Chair Herbert was excused from today’s meeting.  The Commissioners present stated that there was no one else with them.

Consideration and Approval of Minutes of Meeting on 9/10/25
Commissioner Wong moved to approve the minutes of the meeting held on 9/10/25.  Motion seconded by Commissioner Itomura.  Motion carried (4-0).

New Business
*Consideration, Discussion, and/or Approval of Commission Legislation for the 2026 Legislative Session – Executive Director Izumi-Nitao stated that six (6) bills were drafted for the Commission to consider for the 2026 Legislative Session.  Notably, four (4) of these bills were introduced in the 2025 Legislative Session, but did not pass.  The proposed bills are as follows:

• CSC-01 – Relating to Partial Public Financing of Elections
• CSC-02 – Relating to Campaign Contributions (which concerns escheat of excess contributions)
• CSC-03 – Relating to Campaign Contributions (which concerns expanding the government contractor bill to include the officers, and immediate family members of officers of state or county contractors and grantees)
• CSC-04 – Relating to Campaign Contributions (which concerns prohibiting solicitation & acceptance of contributions during legislative session)
• CSC-05 – Relating to Campaign Spending Commission (which concerns the salary structure amendment for commission staff)
• CSC-06 – Relating to Campaign Spending Commission Electronic Filing System Modernization

Chair Chee asked for a motion to enter Executive Session to consult with the Commission’s attorneys on the proposed legislative bills.

Mr. Richard Wiens asked if the merits of the proposed legislation and its chances of passage be discussed in Executive Session.  Chair Chee stated that the Commission will only consult with its attorneys on the legality and constitutionality of the proposed bills.

Commissioner Wong moved to go into Executive Session pursuant to Hawaii Revised Statutes (“HRS”) section 92-5(a)(4) – to consult with the Commission’s attorneys on questions and issues pertaining to the Commission’s powers, duties, privileges, immunities, and liabilities concerning proposed Commission legislation for the 2026 Legislative Session.  Motion seconded by Commissioner Itomura.  Motion carried (4-0).

*Commission went into Executive Session at 10:15 a.m.

*Commission returned into public session at 11:00 a.m.

Chair Chee stated that the Commission entered Executive Session for the purpose of consulting with its attorneys on questions and issues pertaining to the Commission’s powers, duties, privileges, immunities, and liabilities concerning proposed Commission legislation for the 2026 Legislative Session, and asked Commission staff to present the proposed 2026 legislation for their consideration, discussion, and approval.

General Counsel Chang stated that there are six (6) proposed bills (CSC 01-CSC 06) for the Commission’s consideration.  She stated that CSC 01-CSC 04 were previously introduced in the 2025 legislative session but did not pass.  She further explained that staff used the most recent draft that was approved by the legislators in the 2025 session as a starting point for each bill and updated them where appropriate.  She summarized the proposed bills as follows:

CSC-01 – Partial Public Financing of Elections
Increases the amount of partial public financing available for all state and county elective offices.  Amends HRS §11-425 by increasing the maximum amount of public funds available for most offices by 50%.  Increases the maximum amount of public funds available for a candidate for the Office of Hawaiian Affairs from $1,500 to 7.5% of the expenditure limit established in HRS §11-423(d) for each election.  Amends HRS §11-429(a) by increasing the amount of qualifying contributions for the Office of Hawaiian Affairs from more than $1,500 in the aggregate to more than $5,500 in the aggregate.  Provides a downward adjustment of the amounts of qualifying contributions for the Office of the Prosecuting Attorney for the City and County of Honolulu, County of Hawaii, and County of Kauai as well as for the Office of County Council member for the County of Maui.  Amends 11-423(d) by increasing the expenditure limit for all offices by 20%.  Seeks general fund appropriation of $2.4 million to fund enhanced program.  Effective date is November 4, 2026 so program goes into effect for the 2028 election since we are already in the 2026 election cycle and the computations have been executed.

Commissioner Wong wanted to know the reasons for each bill’s failure to pass at the last session.  General Counsel Chang said that she does not have knowledge of why the bills did not pass beyond the testimonies and the discussion shared during the hearings.  This proposed version of the bill is the most recent draft that was approved with added adjustments based on data collected from the 2024 election.  Executive Director Izumi-Nitao added that there were a number of competing public funding bills (e.g., comprehensive public funding program) introduced last sessions as well as fiscal constraints.  She further stated that the adjustments made by staff in this bill align with what the Commission can afford based on the available trust fund monies.  Associate Director Baldomero agreed that the failure of the bill was largely due to the competing programs with each chamber of the legislature having its own preference.

With no further questions, Chair Chee asked for a motion.

Commissioner Polk moved to approve CSC-01 as part of the Commission’s legislative package.  Motion seconded by Commissioner Wong.  Motion carried (4-0).

General Counsel Chang continued her presentation of the proposed legislation.

CSC-02 – Relating to Campaign Contributions
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.  Effective upon approval.  In last session’s revision, the Senate added a savings clause, which staff found acceptable and kept in this proposal.

Commissioner Wong moved to approve CSC-02 as part of the Commission’s legislative package.  Motion seconded by Commissioner Polk.  Motion carried (4-0).

It was decided to address CSC-03 as the last bill since Chair Chee believed that there would be more discussion.

CSC-04 – Relating to Campaign Contributions
Amends HRS §11-357 to prohibit state and county elected officials as defined in HRS §11-342(d) 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 day, holiday, and weekend.  This bill is submitted as a strategy to deter public corruption.  Effective upon approval.

General Counsel Chang added that this bill was heard by the House last session and a new draft emerged that removed county elected officials from the bill due to the argument of their non-involvement in session activities.  She stated that staff does not agree with this revision because of the concern that county level officials have ties to state level officials.  Therefore, staff is reinserting the original language in this version of the bill.

Commissioner Wong asked staff why CSC-04 was not passed last session.

Executive Director Izumi-Nitao suggested that the reluctance to pass the law could be due to the recent passage of similar laws (e.g., prohibition of lobbyist contributions and having fundraisers during session), so this bill may have seemed like overregulation.

With no further questions, Chair Chee asked for a motion.

Commissioner Polk moved to approve CSC-04 as part of the Commission’s legislative package.  Motion seconded by Chair Chee.  Motion carried (4-0).

CSC-05 – Relating to Campaign Spending Commission
Executive Director Izumi-Nitao stated that this bill amends HRS §11-314(12) to provide that the Executive Director’s salary shall be the same as the salary of the director of health (and the Associate Director’s salary to be “not more than eighty-seven per cent of the salary of the director”).  This is to align the director’s salary structure with similar government offices with comparable duties and responsibilities such as the State Ethics Commission, the State Auditor’s Office, the Ombudsman’s Office, and the Legislative Reference Bureau so that it is recurring and competitive for the future.  Effective upon approval.

She added that staff also submitted a Supplemental Budget request of $138,679 for FY 2027 as another approach to bring current staff salaries in line with comparable offices in consideration of increased duties and responsibilities over time.

Chair Chee asked the reason for tying the staff salaries with that of the Department of Health.  General Counsel Chang responded that in drafting this bill, staff referenced House Bill 1528 that was enacted in 2005.  This bill essentially tied the salaries of many agencies that do not have their salaries determined by the Commission on Salaries to the Department of Health, including the State Ethics Commission, who the Commission has aligned itself with with respect to comparable duties and responsibilities and has served as a source of prior metrics for compensation.

Commissioner Wong questioned the logic of using the Department of Health as a reference instead of tying to State Ethics Commission.  Executive Director Izumi-Nitao responded that since State Ethics Commission’s salary structure is already tied to the Department of Health by law, it would be simpler for CSC to follow them.

With no further questions, Chair Chee asked for a motion.

Commissioner Polk moved to approve CSC-05 as part of the Commission’s legislative package.  Motion seconded by Commissioner Itomura.  Motion carried (4-0).

CSC-06 – Relating to Campaign Spending Commission’s Electronic Filing System Modernization
To improve and enhance user experience by modernizing and streamlining the filing process with the Commission’s upgraded electronic filing system, amendments are being proposed to various sections of the campaign finance law to require electronic filing of the (1) electronic filing form for registration (HRS §11-321(b)); (2) termination of registration form (HRS §11-326(1)(A)); (3) loan documents (HRS §11-333(b)(5)); (4) fundraiser notices (HRS §11-342); and (5) public funds form(HRS §11-428(3)); and (6) statement of intent to seek qualifying contributions (HRS §11-430(a)).  Effective date is November 4, 2026 to go into effect in the 2028 election cycle and permit us to build with our vendor.

Commissioner Itomura moved to approve CSC-06 as part of the Commission’s legislative package.  Motion seconded by Commissioner Wong.  Motion carried (4-0).

General Counsel Chang then turned to the last bill reserved for the end of the presentation.

CSC-03 – Relating to Campaign Contributions
Amends HRS §11-355 by prohibiting state or county contractors and grantees, officers, and immediate family members of officers of state or county contractors and grantees, from contributing to candidates, candidate committees, or noncandidate committees for the duration of the contract or grant.  Requires candidates, candidate committees, and noncandidate committees to return any unlawful contribution to the contributor within 30 calendar days of receipt.  Provides that if any unlawful contribution is not returned to the contributor within 30 calendar days, the unlawful contribution shall escheat to the Hawaii Election Campaign Fund.  Seeks general fund appropriation of $200,000 for the Commission to build password-protected section on its website so committees can see the names of government contractor’s and grantees’ officers and their immediate family members.  Effective date is November 4, 2026 to go into effect in the 2028 election cycle.

General Counsel Chang added that this bill went through multiple drafts in both legislative chambers last session.  Some of the concerns raised in the last session included comments from the State Procurement Office about the number of contracts which would be staggering without a parameter on the dollar amount.  Some nonprofit organizations were also concerned that their volunteer members would be included since it covers recipients of grants-in-aid.  She then asked for the Commissioners’ comments regarding the concerns raised.

Chair Chee proposed to discuss each concern separately.  First, the monetary threshold to determine which contracts would trigger the contribution ban.  Executive Director Izumi-Nitao stated that according to testimony provided by the State Procurement Office last session, $250,000 contracts might be a good starting point because it eliminates “small purchase” contracts and would capture larger projects where there could be more influence.

General Counsel Chang provided the following summary on contracts available on the State Procurement Office’s website for the last five years:

• $0 contracts – 844
• $0.01 to $9,999 contracts – 1,550
• $10,000 to $49.999 contracts – 2,254
• $50,000 to $99,999 contracts – 1,189
• $100,000 to $249,999 contracts – 1,243
• >$250,000 contracts – 2,837

She said that she understands the State Procurement Office’s standpoint because if the minimal contracts that might not have much influence are included, then the total contracts in the last five years would be 9,917.  She suspects that there would be an administrative burden of applying the law to such a wide range of contracts.

Commissioner Polk suggested aligning the thresholds with the reporting compliance requirements of $100,000 for goods and services, and $250,000 for construction contracts proposed in the bill.  Chair Chee and the other Commissioners agreed noting that enforcement would be impractical without proper reporting from the contractors.

General Counsel Chang noted that the reporting compliance requirement was added by the legislators in the last session as well as having the reports be hosted on a password-protected area on the Commission’s website which is why staff has included in the bill a $200,000 budget request to build.

The Commissioners agreed to have a contract limit amount of $100,000 for goods and services or $250,000 for construction that will trigger the prohibition of officers and immediate family members of the state or county contractor from making contribution.  The amendment would apply to subsection (b) only.

Second, Chair Chee asked the Commissioners if they have a desire to set a monetary threshold for grants-in-aid.

Commissioner Wong asked General Counsel Chang if she can provide data from her research on this topic.  General Counsel Chang reported that according to data published on the State legislative website, there were about 100 grants that were approved last session with the lowest being $10,000 and the highest being $800,000, with the vast majority in the $200,000 to $400,000 range.

Chair Chee asked if staff had any recommendation regarding a monetary threshold if the Commission were to consider imposing a limit.  General Counsel Chang responded that $100,000 might be a good number to be consistent with the contract threshold and it would also capture the majority of the grants.

Commissioner Polk proposed that the $100,000 threshold be the trigger for the contribution ban for grants-in-aid.  She cited that there are many nonprofit organizations receiving very small grants and for them to be restricted is ridiculous.  The Commissioners agreed and modified subsection (c) to add that the restriction only apply to grants of $100,000 or more.

Third, the Commissioners debated whether the prohibition should apply only to compensated officers or to all officers of grants-in-aid recipients.  General Counsel Chang commented that some nonprofits voiced their concern that the ban would deter people from volunteering for the organizations which is crucial especially for nonprofits.

Commissioner Polk initially supported limiting it to compensated individuals, citing fairness to volunteers.  However, Commissioner Itomura argued that officers, compensated or not, are decision-makers, and thus, capable of exerting influence.

Chair Chee reminded the Commission that since a restriction will be added to limit the ban to grants of $100,000 or more, then perhaps consideration of being a compensated individual or not would not matter that much, because most of the affected nonprofits would be large organizations.

Commissioner Wong was in favor of restricting the ban to compensated individuals; however, he expressed similar concern raised by Commissioner Itomura regarding non-compensated officers having decision-making ability.

Commissioner Polk agreed and stated that her concern regarding non-compensated individuals being banned from making political contributions was more toward smaller organizations, but since the bill will be modified to only apply to grants of $100,000 or more, then she has no problem with it applying to non-compensated individuals as well.

Chair Chee stated that he was not sure if compensation is determinative of whether or not someone would be inclined to make contributions.  He found that with the addition of the $100,000 threshold to the ban that it would be fair to apply the ban to all officers.  Commissioner Polk and Commissioner Itomura agreed; however, Commissioner Wong had concerns that the bill only provides for a ban on officers and not directors.

Chair Chee recommended a short recess since the meeting has been going on for over two hours.

*Commission entered recess at 12:11 p.m.

*Commission returned to session at 12:26 p.m.

Chair Chee asked the Commission if there was a consensus to the proposal that the prohibition ban applies to all officers regardless if they are compensated or not.  There was no objection.

Fourth, the definition of “officer” was discussed.  Chair Chee asked staff why “director” is not included in the bill as a restricted individual.  Executive Director Izumi-Nitao stated that she recalled that the definition under the Department of Commerce and Consumer Affairs’ (DCCA) business registration database for officer would cover director as well and using the term director would have much broader connotations.  Associate Director Baldomero cited Aloha United Way as an example that has its directors listed under officers on DCCA.

Executive Director Izumi-Nitao asked for the Commission’s comment on defining “officer” as “an individual who is listed as an officer on the Department of Commerce and consumer affairs business registration database.”  Discussion ensued on the distinction between officer and director, and if whether only identifying officer would be appropriate when a director might have some capacity to control.

Executive Director Izumi-Nitao proposed a functional definition for an officer that means “an individual holding a formal leadership or decision-making position within the contracting or grant entity, including those with ownership or control over the contracting or grant entity.”

Commissioner Polk found the definition acceptable since many organizations have their own definition of leadership, and some might not even have an officer or director.  Chair Chee and Commissioner Itomura agreed with the approach of defining it by the person’s capabilities rather than relying on titles listed in the DCCA database.  Commissioner Wong was not in complete agreement, but was fine with this approach.  Hearing a difference in opinions, Chair Chee proposed that staff further refine the definition and present it at the next meeting for discussion.

Fifth, The Commission discussed another possible definition for the term “immediate family members”.  General Counsel Chang shared that there were testimonies concerning the scope of the definition as it currently covers spouses or reciprocal beneficiaries, children, parents, grandparents, siblings, and the spouses or reciprocal beneficiaries of such persons.

Discussion ensued on how wide the scope would be based on the current definition, which would prevent a good number of people from directly or indirectly making any contribution for any political purpose.

Commissioner Polk suggested narrowing the definition to include just spouses and adult children.  Chair Chee and Commissioner Itomura proposed including dependents as well regardless of age.  Commissioner Wong agreed but thought that it should also include spouses of children.

After discussion, the Commission agreed to define “immediate family members” as “spouses, children, dependents, and the reciprocal beneficiaries of those individuals.”  Executive Director Izumi-Nitao noted that this definition would apply only within the context of CSC-03 to avoid conflicts with other campaign finance definition.  Chair Chee suggested that perhaps another term could be used instead of “immediate family members.”

Sixth, the Commission discussed whether the prohibition should apply across the different levels of government.  Commissioner Polk cited the example that a county contractor would be barred from contributing to a state candidate under this bill and raised concerns about fairness.  Executive Director Izumi-Nitao stated that under the current law, candidates are allowed to carryover funds from one campaign to another on a state or county level, so it would be a complex issue to regulate if the prohibition does not apply to all levels of government.  Chair Chee also raised concerns of the fluidity of campaign funds and the potential for influence across levels of government.  After discussion, the Commission agreed to maintain the broad applicability of the prohibition.

Seventh, circling back to the password-protected database that the legislators required the Commission to host on its website to contain the information of contracting officers and their immediate family members, General Counsel Chang proposed that since a threshold will be added for grants-in-aid, then similar reporting requirements for the grantees should be added to the password-protected database. The Commission agreed.

Commissioner Polk moved to approve CSC-03 as part of the Commission’s legislative package with the following amendments:

• Change the term of “immediate family members” to mean spouses, children, dependents, and reciprocal beneficiaries of such persons, as well as the consideration of changing the term “immediate family members” to avoid conflict with this term used in other areas of campaign finance;
• Insert the monetary thresholds of the contribution ban for state or county contracts of $100,000 or more for goods or services and $250,000 or more for construction;
• Insert the monetary thresholds of the contribution ban for state or county grants-in-aid of $100,000 or more; and
• Include the reporting requirement for grants-in-aid recipients of $100,000 or more to input information of their officers and “immediate family members” in the password-protected database,

Motion seconded by Commissioner Wong.  Motion carried (4-0).

Report from Executive Director
*Report on Compliance of Filing Timely Disclosure Reports – Executive Director Izumi-Nitao reported that she has no update on this matter and that there were no further reports due this year.

*Update on Boards and Commissions on Appointment of a New Commissioner(s) – Executive Director Izumi-Nitao reported that Judicial Council sent a list of 12 nominees to the Governor on 9/29/25.

*Discussion of Proposed 2026 CSC Meeting Dates – Executive Director Izumi-Nitao stated that if the Commission does not oppose the proposed 2026 meeting dates, then it will be posted on the Commission’s website.

*Discussion of 2025 CSC Annual Online Survey – Executive Director Izumi-Nitao reported that this is the 14th year of sending out a survey to help improve and evaluate the effectiveness of Commission operations and communications as well as to provide any feedback.  The survey will launch on 10/9/25 and end on 11/4/25 whereupon the results will then be summarized, reported at the Commission’s next public meeting, and posted on the Commission’s website.  Executive Director Izumi-Nitao went over the contents of the survey.

*Discussion of FY 2027 Supplemental Budget Request – Executive Director Izumi-Nitao reported that staff submitted request for increased funding of $138,679 in FY 2027 to bring current staff salaries in line with comparable offices as well as in consideration of increased duties and responsibilities over time.

Executive Session

*Consideration and Approval of Executive Session Minutes of Meeting on 9/10/25 – Chair Chee asked if there were no corrections or amendments to the proposed executive session minutes on 9/10/25, he would ask for a motion in open session to approve them.

Commissioner Itomura moved to approve the executive session minutes on 9/10/25. Motion seconded by Commissioner Polk.  Motion carried (4-0).

There being no further business, Chair Chee stated that the Commission’s next meeting is scheduled for Wednesday, November 12, 2025 and asked for a motion to adjourn the meeting.

Commissioner Itomura moved to adjourn the meeting.  Motion seconded by Commissioner Polk.  Motion carried (4-0).

Meeting Adjourned at 1:25 p.m.