Campaign Spending Commission

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

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

Commissioner Excused
Jon Itomura

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

Deputy Attorney General
Candace Park

Guest(s)
Sheila Medeiros, Brandee Medeiros, Chad Blair

Call to Order
Chair Chee called the meeting to order at 10:00 a.m.

Chair Chee went over the procedures for the remote meeting via Zoom and introduced the Commissioners, Commission staff, and the Deputy Attorney General who were present.  He also mentioned that Commissioner Jon Itomura is unable to join the meeting and is excused.  The Commissioners present stated that there was no one else with them.

Consideration and Approval of Minutes of Meeting on 12/18/24
Vice-Chair Herbert moved to approve the minutes of the meeting held on 12/18/24.  Motion seconded by Commissioner Polk.  Motion carried (4-0)

New Business
Executive Director Izumi-Nitao stated that the following four Conciliation Agreements 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 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 each of the proposed agreements.

*Proposed Conciliation Agreement No. 25-32 – In Re the Matter of Kako’o Zahz HewLen – 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 Chee asked if there were any comments or questions.

Vice-Chair Herbert moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Wong.  Motion carried (4-0).

*Proposed Conciliation Agreement No. 25-33 – In Re the Matter of Friends of Domineque Bonifacio – Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Final Election Period Report and requested that they assess a reduced fine from $200 to $66.67 as it is Respondent’s first violation.  Chair Chee asked if there were any comments or questions.

Commissioner Polk moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Wong.  Motion carried (4-0).

*Proposed Conciliation Agreement No. 25-34 – In Re the Matter of Cummings for Council – Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Final Election Period Report and requested that they assess a reduced fine from $200 to $66.67 as it is Respondent’s first violation.  Chair Chee asked if there were any comments or questions.

Vice-Chair Herbert moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Wong.  Motion carried (4-0).

*Proposed Conciliation Agreement No. 25-35 – In Re the Matter of Friends of Carole K. Kaapu – Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the failure to file the Late Contributions Report and requested that they assess a reduced fine from $750 to $250 as it is Respondent’s first violation.  Upon receiving notification of the failure to file this report, Respondent filed it.  Chair Chee asked if there were any comments or questions.

Commissioner Wong moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Polk.  Motion carried (4-0).

*Docket No. 25-19 – In Re the Matter of Sheila Medeiros, Brandee Medeiros, and Friends of Sheila Medeiros – General Counsel Kam stated that this is a complaint by the Executive Director against Sheila Medeiros, Brandee Medeiros, and Friends of Sheila Medeiros for the unauthorized handling of campaign funds in violation of Hawaii Revised Statutes section 11-324(d), failure to report expenditures in violation of Hawaii Revised Statutes section 11-333(b)(3), and filing false reports in violation of Hawaii Revised Statutes sections 11-331 and 11-333 as well as Hawaii Administrative Rule section 3-160-20.

He further stated that Respondent Medeiros unsuccessfully ran for a seat in the state House of Representatives, District 43, in the 2024 election period.

In Respondents’ Organizational Report filed with the Commission, Respondent Brandee Medeiros is the treasurer of the candidate committee called Friends of Sheila Medeiros (“FOSM”).

On 7/30/24, Commission staff received an email from a person residing in House District 43 alleging, among other things, that the person had received three mailers, door flyers, and had seen banners in the district in support of the election of Respondent Medeiros.  The advertisements contained disclaimers that indicated FOSM paid for them.  Yet, at that time, Respondents had not reported any expenditures.

Commission staff also noticed that Respondents’ 2nd Preliminary Primary Report (July 1-July 26, 2024) filed on August 1, 2024 and Final Primary Report (July 27-August 10, 2024) filed on August 29, 2024, contained amounts for receipts and expenditures that were not reflected in the Schedules filed with the reports.  Commission staff thus believes that Respondents had entered into the electronic filing system receipts and expenditures in earlier reporting periods without re-filing the reports.  Thus, the identities of contributors and vendors were not disclosed to the public.

On 8/2/24, the Executive Director subpoenaed FOSM’s account at American Savings Bank (“ASB”) for the period January 1 through July 31, 2024, which would cover FOSM’s activity that should have been reflected in the 1A Preliminary Primary Report (January 1-April 25, 2024), the 1B Preliminary Primary Report (April 26-June 30, 2024), the 2nd Preliminary Primary Report (July 1-July 26, 2024), and the Final Primary Report (July 27-August 10, 2024).  On 9/3/24, Commission staff received Respondents FOSM’s bank records from ASB.

Based upon a comparison of the bank records and the reports filed by Respondents, Respondents have failed to report an expenditure in the 1A Preliminary Primary Report (January 1-April 25, 2024) and the Final Primary Report (July 27-August 10, 2024).  The 1B Preliminary Primary Report (April 26-June 30, 2024) and the 2nd Preliminary Primary Report (July 1-July 26, 2024) were not true, accurate, and complete.

Under HRS §11-333(b)(3), candidates and treasurers are required to report on schedules, among other things, “[a]ll expenditures, including the name and address of each payee and the amount, date, and purpose of each expenditure.”

• For the period April 8 to April 25, 2024, Respondents’ bank records reflect that on April 16, 2024, an expenditure in the amount of $13.50 was paid to Deluxe Check. This expenditure was not reported in Schedule B filed with Respondents’ 1A Preliminary Primary Report.  Commission staff recommends a fine in the amount of $250 against Respondents for failing to report the expenditure and order Respondents to file an amended report.
• For the period July 27 to August 10, 2024, Respondents’ bank records reflect that on July 29, 2024, an expenditure in the amount of $1,545.55 was paid to Reskyu. This expenditure was not reported in Schedule B filed with Respondents’ Final Primary Report (July 27 to August 10, 2024).  Commission staff recommends a fine in the amount of $250 against Respondents for failing to report the expenditure and order Respondents to file an amended report.

Under HRS §11-331(a), candidates and treasurers are required to certify their disclosure reports.  HRS §11-333(a) require candidates and treasurers of candidate committees to report all contributions deposited and expenditures made during a preliminary, final, or supplemental reporting period.  Under Hawaii Administrative Rules (“HAR”) §3-160-20(a), a candidate or treasurer of a committee must certify that disclosure reports are true, complete, and accurate statements of the committee’s activity during the reporting period.

• For the period April 26 to June 30, 2024, Respondents’ bank records reflect that $3,200 was deposited and $3,086.98 was withdrawn. In their 1B Preliminary Primary Report (April 26-June 30, 2024), Respondents reported zero contributions and zero expenditures during this reporting period.  Respondents’ 1B Preliminary Primary Report was therefore inconsistent with the bank records.  Commission staff recommends a fine in the amount of $500 against Respondents for filing an inaccurate 1B Preliminary Primary Report and order Respondents to file an amended report.
• For the period July 1 to July 26, 2024, Respondents’ bank records reflect that $8,778.24 was deposited and $9,116.89 was withdrawn. In their 2nd Preliminary Primary Report (July 1-July 26, 2024), Respondents reported contributions of $3,235.69 and expenditures in the amount of $1,147.35 during this reporting period.  Respondents’ 2nd Preliminary Primary Report was inconsistent with the bank records.  Commission staff recommends a fine in the amount of $500 against Respondents for filing an inaccurate 2nd Preliminary Primary Report and order Respondents to file an amended report.

Further, Respondent Medeiros wrote seven checks totaling $7,083.74 drawn upon the candidate committee’s campaign account.  At all relevant times, Respondent Medeiros was not designated as the treasurer or deputy treasurer of the candidate committee as reflected in the Organizational Report filed with the Commission.  Under HRS §11-324(d), only the treasurer and deputy treasurers are authorized to receive contributions or make or incur expenditures of campaign funds on behalf of the candidate committee.  At the time the checks were written, Respondent Medeiros was not designated as the treasurer or a deputy treasurer of Respondent FOSM.  Commission staff recommends a fine in the amount of $100 against Respondents for this violation of unauthorized handling of funds.

On 12/5/24, Commission staff sent Respondents a copy of the complaint and set the matter on the 1/8/25 Commission agenda.

Respondents did not respond to the complaint within 30 days from the mailing of the complaint but is present to respond in-person.

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 law has been committed, assess an administrative fine total of $1,600 for the violations and order that Respondent Medeiros use personal funds to pay the fine if Respondent FOSM has insufficient funds to be paid within 30 days of receipt of the order, order that any and all administrative fines be deposited into the general fund pursuant to HRS §11-410(e), and order that Respondents amend the four reports to accurately reflect the bank records within 30 days of receipt of the order.

Respondent Sheila Medeiros was present and provided her testimony stating that as a retired army veteran, she understands the importance of transparency in reporting, but is disappointed that the Commission did not give her an opportunity to correct her reports.  She further stated that the violations against her were honest mistakes and minor errors because she and her daughter/treasurer, Brandee Medeiros, who was also present, lacked election campaign experience as she is a first-time candidate.  Also, all of the expenses using campaign funds were campaign related and she had no intention of filing false reports. She admitted to the mistakes, but disagreed with the fines because the Commission did not offer any training or assistance to ensure accurate reporting.  She apologized for her lack of oversight and asked the Commission to reconsider the fines against her as her inaccurate reporting was derived from honest mistakes and were not intentional.

Chair Chee asked staff to respond to Respondent Sheila Medeiros’ claim that no training was offered to candidate and noncandidate committees.  Associate Director Baldomero stated that there are guidebooks and manuals available on the Commission’s website, there was an in-person training offered on May 30, 2024 and that multiple emails were sent notifying registered committees of the training, and the training schedule was also posted on the Commission’s website.

Chair Chee asked the Respondents if the allegations in the complaints are correct, which Respondent Sheila Medeiros replied yes.

Chair Chee asked Commission staff if it is correct that committees can be offered Conciliation Agreement on fines.  General Counsel Kam responded that as stated on the Commission’s fine guidelines, the Conciliation Agreement only applies to certain types of violations, which he does not believe filing false report or unauthorized handling of campaign funds is included, but was less certain about the failure to report an expenditure.

Vice-Chair Herbert commented that the complaint has no allegation of the false reporting being intentional, which Chair Chee agreed and reconfirmed with the Respondents that they do not dispute the facts in the complaint, but just that they were mistakes.  Respondent Sheila Medeiros replied yes, but added that they were unfairly fined without the opportunity to correct the mistakes.

Commissioner Polk asked Respondent Sheila Medeiros that if she was running for office to be a lawmaker, then why did she not look at the laws that would apply to candidates.  Respondent Sheila Medeiros explained that it was a big learning curve for her to learn to run a campaign within a short time and apologized for not having a good understanding of it.

Executive Director Izumi-Nitao stated that Commission staff attempted to contact Respondents to amend and refile reports, but no correction was made.  Respondent  Brandee Medeiros said that she did receive emails from staff asking for their report to be corrected, but it was not related to the allegations on the complaint.  Respondent Sheila Medeiros added that there was an incident of them having filed a report, but the Commission’s filing system had an error preventing the filing and they were fined for the report being late.

Commissioner Wong 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 Vice-Chair Herbert.  Motion carried (4-0).

*Commission went into Executive Session at 10:45 a.m.

*Commission returned into public session at 11:09 a.m.

Chair Chee asked Commission staff if the fine guidelines provide guidance to staff as to what the fine should be and what violations are eligible for a Conciliation Agreement, which Executive Director Izumi-Nitao replied yes.

Chair Chee also asked if the Commission has the authority to revise the fine guidelines in relating to the types of violation that can be offered a Conciliation Agreement.  Executive Director Izumi-Nitao stated yes, but would recommend that any revision to the fine guidelines be implemented after the closing of an election period so that the fine guidelines apply fairly to all committees who ran in the election.

Commissioner Polk asked if the fine guidelines were to be modified, would it apply to this complaint.  Executive Director Izumi-Nitao stated that the guidelines apply until the Commission decides to change it.

Chair Chee asked if the Commission could vary from the fine guidelines for any particular case to which Executive Director Izumi-Nitao responded yes.

Chair Chee proposed to continue this matter for approximately 3 months to allow the Commission to review the fine guidelines.

Executive Director Izumi-Nitao recommended that the Commission handle this matter on a case-by-case basis rather than modifying the fine guidelines to apply to this complaint as it would be unfair to the other cases addressed in this election since the violations in this complaint are from the 2024 election period.

Chair Chee stated that the primary intent is to have a discussion on the current fine guidelines and does not necessarily mean that any revision will be retroactively applied to this complaint.  If the Commission decides to deviate from the fine guidelines, it will be for this case alone.

General Counsel Kam commented that the Commission can deviate from the fine guidelines, but should not apply new guidelines to previous violations.

Chair Chee understood that the Commission will not be applying new fine guidelines retroactively to violations that had previously occurred.

Chair Chee asked if a continuance of the matter is acceptable to the Respondents, which they responded yes.  In the meantime, Chair Chee and Executive Director Izumi-Nitao encouraged the Respondents to amend all incorrect reports, which the Respondents agreed to do.

Vice-Chair Herbert moved to continue the complaint and consideration of the appropriate fines and not the substantive issue of the violations set forth in Docket No. 25-19 – In Re the Matter of Sheila Medeiros, Brandee Medeiros, and Friends of Sheila Medeiros because Respondents admitted to them, to the Commission’s meeting on May 14, 2025.  Motion seconded by Commissioner Wong.  Motion carried (4-0).

*Docket No. 25-23 – In Re the Matter of Joel Borgquist and Red Dirt Campaigns, LLC v. Blake Boyd and Friends of Blake Boyd – General Counsel Kam stated that this is a complaint by Joel Borgquist and Red Dirt Campaigns, LLC against Blake Boyd and Friends of Blake Boyd for the failure to report an unpaid expenditure in violation of Hawaii Revised Statutes sections 11-333(b) and 11-340(d).  The Commission to conduct an initial determination of the complaint in accordance with Hawaii Revised Statutes section 11-404 – i.e., summarily dismiss the complaint, investigate further, make a preliminary determination of the existence of probable cause to believe a violation of law has been committed, or refer the complaint to an appropriate prosecuting attorney for prosecution.

General Counsel Kam reported that the unreported unpaid expenditure stated in this complaint concerns an alleged contract for political consulting services in the 2024 election that was entered into between the Complainant Borgquist and Respondent Boyd on 9/4/23.  An invoice for $4,119.60 was issued by the Complainant on 12/1/23, and the amount has not been paid by the Respondents.  On 11/6/24, the Complainant filed this complaint against the Respondent.

He reported that in the Organizational Report filed with the Commission, Respondent Boyd is the candidate and treasurer of the candidate committee called Friends of Blake Boyd.  Respondent Boyd ran unsuccessfully in the 2022 elections for the office of state Senate District 12.  The following year, in Respondents’ Supplemental Report for the reporting period 7/1/23 to 12/31/23, Respondents reported having no expenditures or unpaid expenditures for Complainant’s political consulting services contract.  Notably, Respondent Boyd did not file nomination papers to run for office in the 2024 election.

On 11/6/24, Commission staff sent the Complaint to Respondents at the address provided in their Organizational Report.  Staff requested a response within thirty days of the mailing of the Complaint (i.e., 12/6/24).  The letter was returned to the Commission as “NOT DELIVERABLE AS ADDRESSED, UNABLE TO FORWARD.”  Commission staff did an internet search for other addresses associated with Respondents.  Staff discovered that Respondent Boyd was a real estate agent and examined his license to practice on the Board of Real Estate’s website.  Respondent Boyd’s license to practice was current and listed the name and address of his employer.  On 11/27/24, staff sent the Complaint to Respondents at the address provided on the license to practice.  Staff requested a response within thirty days of the mailing of the Complaint (i.e., 12/27/24).  The letter was returned to the Commission as “NOT DELIVERABLE AS ADDRESSED, UNABLE TO FORWARD.”  He added that Respondent Boyd’s registration with the Commission was terminated on 3/6/24, which was prior to the complaint being filed against him on 11/6/24.

On 12/27/24, Commission staff notified the Complainant that the matter would be set on the 1/8/25 Commission agenda.

Staff has attempted to serve the Complaint upon Respondents via first class mail twice.  On both occasions, service was not effectuated.  HRS §11-403(a) requires the Commission to give notice of the Complaint to Respondents.  Without the service of the Complaint upon Respondents, the Complainant cannot proceed against them.  Also, in light of the fact that Respondents’ registration with the Commission was already terminated when the Complaint was filed, staff does not believe it would be a good use of Commission funds to hire an investigator or process server to locate Respondents.  Commission staff recommended that the Commission summarily dismiss the Complaint.

Vice-Chair Herbert asked if the Commission is obligated by law to investigate.  General Counsel Kam responded that the Commission is obligated to investigate all complaints that are filed, but it may not be good use of Commission funding to locate the Respondent who is no longer registered with the Commission for an allegation that may or may not be true.

Chair Chee asked if this complaint were to be dismissed then will Commission staff continue to track it in the event that Respondent Boyd resurfaces and place the complaint back on an agenda.  Executive Director Izumi-Nitao responded that this is not a complaint filed by Commission staff and that staff do not know if the allegation did indeed occur so it would not be a good use of resources to track it.

Vice-Chair Herbert moved to accept Commission staff’s recommendation to dismiss the Complaint.  Motion seconded by Commissioner Wong.  Motion carried (4-0).

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 that its 4 bills were submitted to Senate President Ron Kouchi and House Speaker Nadine Nakamura on 12/17/24.

General Counsel Kam reported on Commission’s staff’s meeting with legislative leaderships.

• On 1/3/25, met with Rep. David Tarnas (JUD) & Speaker Nadine Nakamura
• On 1/6/25, met with Senator Karl Rhoads (JUD)
• On 1/7/25, participated in DAGS Info Briefings – WAM & FIN
• On 1/9/25, will meet with Senator Donovan Dela Cruz’s staff (WAM)
• Meeting with Representative Kyle Yamashita (FIN) is TBD
• Meeting with President Ron Kouchi is TBD

Report from Executive Director
*Report on Compliance of Filing Timely Disclosure Reports – Executive Director Izumi-Nitao noted that the next report is the Supplemental Report due on 1/31/25 for 731 committees registered with the Commission, but have different reporting periods depending on whether they ran in the 2024 election.  She stated that there are 240 candidate committees with a reporting period of 11/6/24 to 12/31/24 for candidates who ran in the 2024 election, 233 candidate committees with a reporting period of 7/1/24 to 12/31/24 for candidates who did not run in the 2024 election, and 258 noncandidate committees with the reporting period of 11/6/24 to 12/31/24.

As for an update on the Final Election Period Report that was due on 12/5/24; specifically, the $1,000 or less committees and ballot issue committees, Associate Director Baldomero reported that:

• 259 candidates ran in the 2024 election
  • 39 were $1,000 or less candidates
  • All 39 candidates filed this report and none exceeded the threshold
• 260 noncandidates committees in the 2024 election
  • 30 were $1,000 or less noncandidates committees
  • All 30 noncandidates committees filed this report and none exceeded the threshold
• 1 ballot issue committee in the 2024 election
  • Filed this report and ready to be terminated pending submission of their closing bank statement and termination request form

*Report and Update on the Certification of Elections Procedure – Associate Director Baldomero provided a final update on the certification process that declared all winning candidates of having filed all required reports and paid all fines.  Therefore, all 103 winning candidates have been certified.  Further, he stated that there were 5 legal challenges that could result in a special election.  To date, 3 have been dismissed and 2 are pending (i.e., House District 17 and House District 39).

*Report on the 2024 Election – Associate Director Baldomero provided on update on observation of the 2024 election.

• 259 candidates ran in the 2024 election for 103 seats
  • 21 incumbent candidates ran unopposed, representing 20% of all races
  • 8 open seats due to the incumbent retiring or vacating their seat to run for another office
  • 95 incumbent candidates; 85 successful; 90% of incumbents won their races
    • Incumbent candidates who were unsuccessful
      • Mitch Roth, Scott Saiki, May Mizuno, Ernesto Ganaden, Micah Aiu, Rose Martinez, Natalia Hussey-Burdick, Cindy Evans, Bill DeCosta and Ross Kagawa
    • Top candidates with the most contributions received
      • Rick Blangiardi ($2,281,743.09)
      • Scott Saiki ($344,989.64)
    • Top candidates with the most expenditures
      • Rick Blangiardi ($1,664,751.44)
      • Mitch Roth ($389,797.35)
    • Top candidates with the most loans
      • Clayton Hee ($118,955.32 in personal loans)
      • Tim Dalhouse ($61,228.72 in personal loans)
    • Top candidates with the most supporting independent expenditures
      • Natalie Kama ($266,025.84)
      • Thomas Cook ($195,585.12)
    • Top candidates with the most opposing independent expenditures
      • Elijah Pierick ($2,653.91)
      • Cedric Gates ($315)
    • Candidates who filed the Affidavit to voluntarily agree with the expenditure limit are eligible for a discounted fee when filing nomination paper and become eligible for public funding
      • 110 candidates filed, representing 42% of all candidates in the 2024 election
      • 25 candidates filed the statement to seek public funding, representing 10% of all candidates in the 2024 election
      • 10 candidates received public funding totaling $52,053.09
      • 7 candidates were successful
    • Top Super PACs with the most contributions
      • For A Better Tomorrow ($8,611,079.52)
      • Be Change Now ($4,993,431.76)
    • 1 ballot issue committee supporting the State Constitutional Amendment Concerning the Authority of the Legislature to Reserve Marriage to Opposite-Sex Couples.
      • Raised $81,972.01 and spent $70,419.59

Executive Session
*Consideration and Approval of Executive Session Minutes of Meeting on 12/18/24 – Chair Chee asked if there were no corrections or amendments to the proposed executive session minutes on 12/18/24, he would ask for a motion in open session.

Vice-Chair Herbert moved to approve the executive session minutes on 12/18/24. Motion seconded by Commissioner Wong. Motion carried (4-0)

Next Meeting:
Scheduled for Wednesday, February 5, 2025.

Vice-Chair Herbert moved to adjourn the meeting.  Motion seconded by Commissioner Wong.  Motion carried (4-0).

Meeting Adjourned at 12:01 p.m.