Campaign Spending Commission

Campaign Spending Commission Meeting
In-Person and Zoom Video Conference
December 18, 2024
10:00 a.m.

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

Staff Present
Kristin E. Izumi-Nitao, Tony Baldomero, Gary Kam, Terence Lau (Zoom), Anthony Diep

Deputy Attorney General
Candace Park (Zoom)

Guest(s)
Blaze Lovell, Tina Grandinetti (Zoom), Chad Blair (Zoom)

Call to Order
Chair Herbert called the meeting to order at 10:02 a.m.

Chair Herbert went over the procedures for the hybrid in-person and remote meeting via Zoom and introduced the Commissioners, Commission staff, and the Deputy Attorney General who were present.

Consideration and Approval of Minutes of Meeting on 11/13/24
Vice-Chair Chee moved to approve the minutes of the meeting held on 11/13/24.  Motion seconded by Commissioner Wong.  Motion carried (5-0)

New Business
*Chair Herbert asked to take the matters out of order and defer the “Consideration, Discussion, and Approval of a Change in Campaign Spending Commission Leadership” to the end of the agenda.

 Executive Director Izumi-Nitao stated that the following Conciliation Agreement on the agenda was a result of an investigation initiated by her as the Executive Director pursuant to HRS §11-314(7) to determine whether there had been a violation of the Hawaii campaign spending laws.  She stated that Respondent has been informed in a letter from Commission staff of the violation and has 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 each of the proposed agreements.

*Proposed Conciliation Agreement No. 25-31 – In Re the Matter of Friends of Betlach for House of Representative District 6 – Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Final Election Period Report and requested that the Commission assess a reduced fine from $50 to $16.67 as it is Respondent’s first violation.  Chair Herbert asked if there were any comments or questions.

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

*Docket No. 25-20 – Steve Lipscomb v. Tina Grandinetti – General Counsel Kam reported that on 11/1/24, a complaint was filed by Steve Lipscomb against Tina Grandinetti for failing to have the name and address of the candidate, candidate committee, noncandidate committee, or other person paying for the advertisement in violation of HRS §11-391(a)(1) and missing the “paid for by” notice required by HRS §11-391(a)(2)(A) on a yard sign located at 3257 Kaunaoa Street, Honolulu, Hawaii 96815.

On 11/4/24, Commission staff sent to Respondent via first class mail the complaint.

On 12/4/24, Respondent filed a response to the complaint which was then transmitted to Complainant Lipscomb.  In her response, Respondent stated that once she was made aware of the disclaimer requirement and paid the $25 fine to the Commission, she had stickers printed with the required disclaimers to attached to all of her existing signs and banners.  When she walked the district to place the stickers on the signs and banners, the homeowner at the Kaunaoa Street residence had not yet put her yard sign up in the yard.  Thus, she missed that one sign.  Respondent asked for leniency since she made a good faith effort to correct her mistake.

On 12/4/24, Commission staff notified the Complainant and Respondent that the matter would be set on the 12/18/24 Commission agenda.

Respondent Tina Grandinetti was present and said she submitted a written response to the complaints.  Regarding Docket No. 25-20, she agreed that the yard sign is missing the required disclaimers and that when she initially printed the first batch of campaign materials, she was unaware of the requirements.  After receiving a fine from the Commission, she had stickers printed of the disclaimers and applied them to all of her signs.  The sign in question was overlooked because at the time of her revisiting her signs to apply the sticker, this particular sign was not put up by the homeowner yet.  She apologized for the oversight and asked the Commission for leniency.

Vice-Chair Chee recommended for all three complaints to be heard prior to considering the outcome since the violations for all three complaints appear to be similar.

*Docket No. 25-21 – Steve Lipscomb v. Tina Grandinetti – General Counsel Kam reported that on 11/1/24, a complaint was filed by Steve Lipscomb against Tina Grandinetti who was elected to the House District 20 seat in the 2024 election for failing to have the name and address of the candidate, candidate committee, noncandidate committee, or other person paying for the advertisement in violation of HRS §11-391(a)(1), missing the “paid for by” notice required by HRS §11-391(a)(2) on a mailer received by complainant on 8/4/24 and containing false information about the time, date, place, or means of voting in violation of HRS §11-391(a)(3) (mailer instructed reader to “Postmark your ballot by ‘Aug 3.’”)

On 11/4/24, Commission staff sent the complaint to Respondent via first class mail.

On 12/4/24, Respondent filed a response to the complaint which was then transmitted to Complainant Lipscomb.  In her response, Respondent apologized for not having the disclaimer on the mailer and agreed to pay the fine.  In regard to the insertion of the August 3rd postmark date, in discussions with other candidates, she believed that if ballots were mailed out a week ahead of the election on August 10th, that would be adequate time to allow for the ballots to reach the election offices on time.  She did not intend to mislead voters or to provide false information to them.

On 12/4/24, Commission staff notified the Complainant and Respondent that the matter would be set on the 12/18/24 Commission agenda.

Respondent Grandinetti admitted that it was an oversight for missing the required disclaimers and agreed to pay the fine.  However, the “postmark by Aug. 3” statement was included based on advice received from other candidates that it was safest for voters to mail in their ballot a week prior to election day to allow adequate time for the ballot to be received and tracked, and for the voter to request a new ballot or vote in-person should they discover that their ballot was not received or was submitted incorrectly.  Respondent Grandinetti stated that there was no intention to mislead voters as she also shared two other ways to vote on the mailer.

*Docket No. 25-22 – Steve Lipscomb v. Tina Grandinetti – General Counsel Kam reported that on 11/1/24, a complaint was filed by Steve Lipscomb against Tina Grandinetti for failing to have the name and address of the candidate, candidate committee, noncandidate committee, or other person paying for the advertisement in violation of HRS §11-391(a)(1) and missing the “paid for by” notice required by HRS §11-391(a)(2) on a mailer received by complainant on October 24, 2024.

On 11/4/24, Commission staff sent to Respondent via first class mail the complaint.

On 12/4/24, Respondent filed a response to the complaint which was then transmitted to Complainant Lipscomb.  In her response, Respondent apologized for not having the disclaimer on the mailer and agreed to pay the fine.

On 12/4/24, Commission staff notified the Complainant and Respondent that the matter would be set on the 12/18/24 Commission agenda.

Respondent Grandinetti admitted that it was a careless mistake for missing the required disclaimers and agreed to pay the fine.

Vice-Chair Chee moved to go into Executive Session pursuant to HRS §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.  Motion seconded by Commissioner Wong.  Motion carried (5-0).

*Commission went into Executive Session at 10:20 a.m.

*Commission returned into public session at 10:50 a.m.

Vice-Chair Chee asked Respondent Grandinetti if she has any dispute over the facts that have been alleged aside from the claim of her providing false information about the time, date, place, or means of voting.  Respondent Grandinetti said that she does not disagree with them.

Commissioner Itomura asked Respondent Grandinetti if she is aware that this is her second violation for missing the required disclaimer on advertisements.  Respondent Grandinetti said that she is aware of it and did pay a fine for the first violation.

Vice-Chair Chee asked staff if these violations of the same HRS would all be considered second violation.  General Counsel Kam stated that the violation for not disclosing the name and address of the candidate, candidate committee, or other person paying for the advertisement would be considered as second violations, and violation on other charges would be her first.

In consideration of Docket No. 25-20, Commissioner Chee moved to make a preliminary determination that probable cause exists that a violation of HRS §11-391(a)(1) had been committed and to accept the fine and terms as recommended by staff and dismiss the other claim.  Motion seconded by Commissioner Wong.  Motion carried (5-0).

In consideration of Docket No. 25-21, Commissioner Chee moved to make a preliminary determination that probable cause exists that a violation of HRS §11-391(a)(1) had been committed and to accept the fine and terms as recommended by staff and dismiss the other claim.  Motion seconded by Commissioner Wong.  Motion carried (5-0).

In consideration of Docket No. 25-22, Commissioner Chee moved to make a preliminary determination that probable cause exists that a violation of HRS §11-391(a)(1) had been committed and to accept the fine and terms as recommended by staff and dismiss the other claim.  Motion seconded by Commissioner Wong.  Motion carried (5-0).

Old Business
*Consideration, Discussion, Approval, and/or Update of Commission Legislation and Other Related Bills/Resolutions for the 2025 Legislative Session – General Counsel Kam informed the Commission about a State Ethics bill which may be introduced to provide greater clarity on the lobbyist ban on contributions during legislative session.  Presently, this ban is provided in CSC’s and State Ethics’ statutes.  It was applied for the 2024 Legislative Session, but only CSC (with State Ethics’ concurrence) enforced the statute and found 14 violations by lobbyists.  Notably, there were 8 lobbyists who CSC later found to have not violated the statute, so CSC rescinded their administrative fine; however, CSC kept the escheated contributions from the candidate committees as they deposited the lobbyist’s contribution in a prohibited period.

The Ethics Commission’s proposal has been provided to the Commissioners in their meeting materials.  Essentially, the proposal amends HRS §11-365(a) to require Commission staff to refer a lobbyist who allegedly made a prohibited contribution to the state or county ethics board or commission that has jurisdiction over the lobbyist and amends HRS §97-5(a) to require state Ethics Commission staff to refer an elected officials or a candidate who have allegedly received a prohibited contribution to the CSC.  The bill also seeks to amend the definition of “session of the Legislature” to mean when both houses of the Legislature are in session.  Staff does not believe this latter amendment is necessary because Art. III, section 1, of the Haw. Const. already defines the “Legislature” as being comprised of both the Senate and the House of Representatives.  Thus, “session of the state Legislature” already includes both houses.

General Counsel Kam noted that Vice-Chair Chee raised a concern regarding how the county ethics commissions can enforce this law due to the lack of resources and structure.  Therefore, there is currently a discussion between the State Ethics Commission and the Legislative Judiciary chair that CSC will only be making referrals to the State Ethics Commission since most county lobbyists are also registered with the state.

Executive Director Izumi-Nitao added that this bill from the State Ethics Commission will essentially allow them to retain jurisdiction over lobbyists to avoid any occurrences that a lobbyist could be fined twice by both the CSC and the Ethics Commission for the same violation.  Regarding the handling of county lobbyists, another proposal would be for CSC to retain jurisdiction on assessing fines for this group.

Discussion ensued on whether it would be more beneficial for either CSC or the State Ethics Commission to remove the statute in its law to alleviate the confusion.

Vice-Chair Chee recommended that Commission staff conveys its concern to the State Ethics Commission over the unclear application of the amendments on county lobbyists.

General Counsel Kam then informed Commissioners of notable dates for the 2025 Legislative Session Calendar:

Jan. 15 – Opening Day
Jan. 23 – Last Day to Introduce Bills
Feb. 13 – First Lateral Filing (single referral)
Feb. 14 – First Lateral Filing (multiple referrals; bills move to final committee)
Feb. 28 – First Decking (deadline for bills to move out of final committee)
Mar. 6 – First Crossover (deadline to pass 3rd reading in originating chamber)
Mar. 10 – Budget Bill Decking
Mar. 12 – Budget Bill Crossover
Mar. 20 – Second Lateral Filing (single referral)
Mar. 21 – Second Lateral Filing (multiple referrals; bills move to final committee)
Apr. 4 – Second Decking (deadline for bills to emerge from all committees in non-originating chamber)
Apr. 10 – Second Crossover (deadline to pass 3rd reading in non-originating chamber)
Apr. 24 – Final Decking nonfiscal bills (deadline to pass final reading in both chambers)
Apr. 25 – Final Decking fiscal bills
May 1 – Adjournment Sine Die

Report from Executive Director
*Report on Compliance of Filing Timely Disclosure Reports – Executive Director Izumi-Nitao noted that the next report due is for every committee that is registered with the Commission.

• Supplemental Report (due 1/31/25) – 731 committees
  • 240 candidate committees ran in the 2024 election
  • 233 candidate committees did not run in 2024 election
  • 258 noncandidate committees

As for reports that were due since the Commission’s last meeting in November, she stated that they included:

• Final Election Period Report (due 11/27/24) (covering 8/11/24 or 10/22/24 to 11/5/24 for County of Kauai & Hawaii)
  • 18 candidates committees
    • Filed on time – 18 (100%)
  • Final Election Period Report (due 12/5/24) (covering 1/1/24 or 8/11/24 or 10/22/24 to 11/5/24)
    • 227 candidates committees
      • Filed on time – 181 (80%)
      • Failed to file – 41
      • Filed late – 5
      • Today – 8
      • $1,000 or less committees – 32
        • Failed to file – 3
      • 261 noncandidates committees
        • Filed on time – 246 (91%)
        • Failed to file – 13
        • Filed late – 2
        • Today – 2
        • $1,000 or less committees – 30

She mentioned that there would be complaints issued for any $1,000 or less committees who exceeded the amount.

• Expenditure of Public Funds Report (due 12/5/24) (covering 1/1/24 to 11/5/24 for candidates receiving public funds)
  • 7 candidates committees
    • Filed on time – 7 (100%)

Update on past reports:

• 2nd Preliminary General Report (due 10/28/24) (covering 9/27/24 to 10/21/24)
  • 1 noncandidate committee has not filed
• Late Contributions/Expenditures Report (due 11/4/24) (covering 10/22/24 to 11/1/24)
• Candidate committees
  • Filed on time – 67 (96%)
  • Failed to file – 3
  • Filed late – 3
• Noncandidate committees
  • Filed on time – 68 (99%)
  • Failed to file – 0
  • Failed late – 1

*Report and Update on the Certification of Elections Procedure – She stated that winning candidates need to be certified by the Commission that they have paid all fines issued to them and file all required reports before they can be sworn into office by the Office of Elections or the county clerks.

Associate Director Baldomero provided an update since the Commission’s last meeting in November, he stated the following certifications have been issued as of today:

• Certification #1 (10/24/24) – 7 candidates (Honolulu Mayor, Honolulu Prosecuting Attorney, Honolulu City Council)
• Certification #2 (11/29/24) – 5 candidates (4 OHA, 1 Hawaii County Council)
• Certification #3 (12/6/24) – 18 candidates (Hawaii Mayor, Hawaii Prosecuting Attorney, Hawaii County Council, Kauai Prosecuting Attorney, Kauai County Council)
• Certification #4 (12/13/24) – 22 candidates (Maui County Council, Senate)
• 51 House of Representatives still yet to be certified
• 5 legal challenges
  • Filed by Mayoral candidate Karl Dicks
  • Filed by House District 39 candidate Corey Rosenlee
  • Filed by Maui Council candidate Kelly King
  • Filed by House District 17 candidate Michael Jauch
  • Filed by Election Commissioner Ralph Cushnie

He mentioned that the challenges may result in a special election.

*Update on FY 2025-2027 Budget – Executive Director Izumi-Nitao reported that Budget & Finance and Governor Green has approved our budget request of $200K for 2 new FTE as well as a $1 million general fund appropriation for a new electronic filing system, and that staff submitted an appeal for the additional $1 million but was denied.  She added that there will be legislative briefings with WAM and FIN on 1/7/25.

*Report on the 2025 January CSC Newsletter – Executive Director Izumi-Nitao reported on the contents of the newsletter to be posted on 1/2/25 which include the following:

• Reminder To All Committees to File the Supplemental Report
• Reporting Schedules
• Updating Organizational Reports
• Commission’s 2025 Budget Request for Additional Funding
• Commission’s Bills for the 2025 Legislative Session
• Legislative Session Considerations – Fundraiser Ban for Elected Officials and No Lobbyist Contributions
• 2024 Election Observations
• Term Limited Candidates
• Termination Of Committee Registration with The Commission
• Violations of the Campaign Finance Laws
• New – Cyber-Learning Videos
• Results of The Commission’s 2024 Online Survey
• Reminder to Check Off The $3 Box on Your 2025 Tax Return
• 2025 Meeting Schedule, Meeting Agendas and Board Packets
• Downloadable Calendar Available on The Commission’s Website
• Standard Fine Guidelines
• 2025 Amended Standard Mileage Rate Announced by The Internal Revenue Service (IRS)

*Report on the 2024 COGEL Conference – Executive Director Izumi-Nitao reported that Vice-Chair Chee, Commissioner Itomura, and Commissioner Wong attended this year’s COGEL Conference in Los Angeles, California.

Executive Director Izumi-Nitao stated that she co-chaired the conference with Darrin Lim and 18 Program Committee members representing various jurisdictions and disciplines in Campaign Finance, Ethics, Elections, Freedom of Information, and Lobbying.  She noted that there were 540 attendees this year, which was a record, of which 225 (43%) were first time attendees and 39 were new memberships of individuals and organizations.  She stated that her highlights from the conference were participating in the first ever Public Financing Roundtable amongst administrators on Sunday, receiving the 2024 COGEL Outstanding Service Award, hosting a dinner of CSC, State Ethics, HNL Ethics, Guam, & South Africa, and the Fireside chat with Los Angeles Mayor Karen Bass.  She further stated that the next conference will be in Atlanta, Georgia on December 7-10, 2025 and that she will be assisting the Program Committee chairs with the transition.

Vice-Chair Chee commented that he enjoyed the sessions and meeting the other attendees from Hawaii.  He added that CSC staff does a good job as he learned about issues that other organizations face that CSC has addressed.

Commissioner Itomura agreed with Vice-Chair Chee and added that he thought the conference was subject-oriented and enjoyed the opportunity to meet others in the industry, and found it interesting that in some jurisdictions, campaign finance, elections, and ethics personnel are all under one agency.

Commissioner Wong commented that the conference was informative, and it was an eye-opening experience to see the challenges that other Commissioners face.  He added that he especially enjoyed the plenary session with Secretary of State Shirley Webber.

*Meeting returned to deferred agenda.

*Consideration, Discussion, and Approval of a Change in Campaign Spending Commission Leadership
Chair Herbert moved for Vice-Chair David Chee to be Chair and Chair Neal Herbert to be Vice-Chair of the Commission to commence at the next Commission meeting on January 8, 2025.  Motion seconded by Commissioner Wong.  Motion carried (5-0).

Chair Herbert congratulated Vice-Chair Chee and expressed his appreciation for the support during his tenure as the Commission Chair.

Next Meeting:
Scheduled for Wednesday, January 8, 2025.

Vice-Chair Chee moved to adjourn the meeting.  Motion seconded by Commissioner Wong.  Motion carried (5-0).

Meeting Adjourned at 11:57 a.m.