Minutes for June 12, 2024 Meeting

Posted in Minutes

Campaign Spending Commission Meeting
In-Person and Zoom Video Conference
June 12, 2024
10:00 a.m.

Commissioners Present
Neal Herbert, David Chee, Vic Bonfiglio, Stanley Lum

Commissioner Excused
Jon Itomura

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

Guests
Blaze Lovell (Zoom), “Guest” (Zoom)

Call to Order
Chair Herbert called the meeting to order at 10:05 a.m.

Chair Herbert went over the procedures for the hybrid in-person and remote meeting via Zoom and introduced the Commissioners and Commission staff who were present. He stated that Commissioner Itomura was not present at the time and may log in during the meeting. He also thanked Commissioner Lum and Commissioner Bonfiglio for their dedication and support to the Commission and that this will be their last meeting as their terms expire at the end of June.

Consideration and Approval of Minutes of Meeting on 5/8/24
Commissioner Lum moved to approve the amended minutes of the meeting held on 5/8/24. Motion seconded by Vice-Chair Chee. Motion carried (3-0) (Chair Herbert abstained because he was not present at the 5/8/24 meeting).

New Business
Executive Director Izumi-Nitao stated that the following Conciliation Agreement(s) on the agenda were a result of investigations initiated by Commission staff pursuant to HRS §11-314(7) to determine whether there had been a violation of the Hawaii campaign spending laws. She stated that Respondents have been informed in a letter from Commission staff of the violation and have been notified of today’s meeting as well as received a copy of the proposed conciliation agreement. She recommended that the Commission make a preliminary determination of probable cause that a violation had been committed, waive further proceedings, and approve each of the proposed agreements.

*Proposed Conciliation Agreement No. 24-13 – In Re the Matter of Bart J. Thomas – Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the 1A Preliminary Primary Report and requested that they assess a reduced fine from $200 to $66.67 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 Bonfiglio. Motion carried (4-0).

*Docket No. 24-06 – In Re the Matter of Shaena Hoohuli, Daniel Decker, and Hoohuli Headquarters – Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Respondents for the failure to file three (3) Supplemental Reports.

She reported that in the Organizational Report filed with the Commission, Respondent Hoohuli is the candidate and Respondent Decker is the treasurer of the candidate committee called Hoohuli Headquarters.

Pursuant to HRS §11-334(b), Respondents were required to file the Supplemental Report for the period covering (1) 7/1/22 through 12/31/22 by 11:59 p.m. Hawaii standard time on 1/31/23; (2) 1/1/23 through 6/30/23 by 11:59 p.m. Hawaii standard time on 7/31/23; and (3) 7/1/23 through 12/31/23 by 11:59 p.m. Hawaii standard time on 1/31/24. Respondents did not file these reports by the deadline.

Commission staff notified Respondents via first class mail of their failure to file the reports and that a fine would be imposed on 2/1/23, 8/1/23, and 2/1/24, respectively, for each report.

Respondents have not filed these Supplemental Reports.

On 4/11/24, Commission staff sent Respondents a copy of the complaint and set the matter on the 6/12/24 Commission agenda. Respondents have not responded to the complaint within 30 days from the mailing of the complaint, and therefore, pursuant to HRS §11-403(c), the Commission may treat the failure to explain or respond as a rebuttable presumption that a violation has occurred.

Vice-Chair Chee moved to make a preliminary determination that probable cause exists that a violation had been committed and to accept the fine and terms stated in the complaint. Motion seconded by Commissioner Bonfiglio. Motion carried (4-0).

*Docket No. 24-08 – In Re the Matter of Collaborative Architects, LLC – Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Respondent for the failure to register with the Commission by filing the Electronic Filing Form and the Organizational Report as well as the failure to file two Supplemental Reports.

In its 1/1/23 through 6/30/23 Supplemental Report filed on 7/31/23, Friends of Rick Blangiardi reported a contribution made by Respondent in the amount of $2,000 on 5/25/23.

Pursuant to HRS §11-321(b), before filing the Organizational Report, a noncandidate committee shall mail or deliver an Electronic Filing Form to the Commission.

Respondents were thus required to file their Organizational Report by 6/4/23 which is 10 days from the date it made a contribution to Friends of Rick Blangiardi in an amount of more than $1,000.

On 3/1/24, Commission staff sent Respondent a letter (Notice to Register with the Campaign Spending Commission) via first class mail informing them that their Organizational Report was due on 6/4/23, that their failure to register by filing the Electronic Filing Form and the Organizational Report violates campaign finance laws, and of the imposition of an administrative fine if they do not register by 3/15/24.

Respondent has not filed their Organizational Report nor their Electronic Filing Form.

Pursuant to HRS §11-336, Respondent was required to file the Supplemental Report for the period covering 1/1/23 through 6/30/23 by 11:59 p.m. Hawaii standard time on 7/31/23. Respondent did not file this report by the deadline.

Pursuant to HRS §11-336, Respondent was required to file the Supplemental Report for the period covering 7/1/23 through 12/31/23 by 11:59 p.m. Hawaii standard time on 1/31/24. Respondent did not file this report by the deadline.

On 5/10/24, Commission staff sent Respondent a copy of the complaint and set the matter on the 6/12/24 Commission agenda. Respondent has not responded to the complaint within 30 days from the mailing of the complaint, and therefore, pursuant to HRS §11-403(c), the Commission may treat the failure to explain or respond as a rebuttable presumption that a violation has occurred.

Executive Director Izumi-Nitao recommended that the Commission make a preliminary determination, pursuant to HRS §11-405(a), that probable cause exists to believe that a violation of the campaign spending law has been committed, assess an administrative fine in the amount of $50 in Count I for the failure to file an Electronic Filing Form, $100 in Count II for the failure to file an Organizational Report, $500 in Count III for the failure to file the July Supplemental Report, and $500 in Count IV for the failure to file the January Supplemental Report for a total fine of $1,150, order that the fine be paid from the chairperson’s and treasurer’s personal funds, if the noncandidate committee’s funds are insufficient to pay the fine, pursuant to HRS §11-410(c), order that any and all administrative penalties be paid within 30 days of receipt of the order and be deposited into the general fund pursuant to HRS §11-410, and order that Respondent file the Electronic Filing Form, the Organizational Report, and the 2 Supplemental Reports within 30 days of receipt of the order.

Commissioner Bonfiglio moved to make a preliminary determination that probable cause exists that a violation had been committed and to accept the fine and terms stated in the complaint. Motion seconded by Vice-Chair Chee. Motion carried (4-0).

*Docket No. 24-15 – In Re the Matter of KH Makaha, LLC – Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Respondent for the failure to register with the Commission by filing the Electronic Filing Form and the Organizational Report as well as the failure to file the Supplemental Report.

In its 7/1/23 through 12/31/23 Supplemental Report filed on 1/31/24, Friends of Rick Blangiardi reported a contribution made by Respondent in the amount of $4,000 on 10/10/23.

Pursuant to HRS §11-321(g), a noncandidate committee must file an Organizational Report with the Commission within 10 days of receiving contributions or making or incurring expenditures of more than $500, in the aggregate, in a two-year election period. She noted that the differences between the aggregate amount here and that of Docket No. 24-08 was due to a change in law.

Pursuant to HRS §11-321(b), before filing the Organizational Report, a noncandidate committee shall mail or deliver an Electronic Filing Form to the Commission.

Respondent was thus required to file their Organizational Report by 10/20/23 which is 10 days from the date it made a contribution to Friends of Rick Blangiardi in an amount of more than $500.

On 3/7/24, Commission staff sent Respondent a letter (Notice to Register with the Campaign Spending Commission) via first class mail informing them that their Organizational Report was due on 10/20/23, that their failure to register by filing the Electronic Filing Form and the Organizational Report violates campaign finance laws, and of the imposition of an administrative fine if they do not register by 3/21/24.

Respondent has not filed their Organizational Report nor their Electronic Filing Form.

On 5/9/24, Commission staff sent Respondent a copy of the complaint and set the matter on the 6/12/24 Commission agenda. Respondent has not responded to the complaint within 30 days from the mailing of the complaint, and therefore, pursuant to HRS §11-403(c), the Commission may treat the failure to explain or respond as a rebuttable presumption that a violation has occurred.

Executive Director Izumi-Nitao recommended that the Commission make a preliminary determination, pursuant to HRS §11-405(a), that probable cause exists to believe that a violation of the campaign spending law has been committed, assess an administrative fine in the amount of $50 in Count I for the failure to file an Electronic Filing Form, $100 in Count II for the failure to file an Organizational Report, and $500 in Count III for the failure to file the Supplemental Report for a total fine of $650, order that the fine be paid from the chairperson’s and treasurer’s personal funds, if the noncandidate committee’s funds are insufficient to pay the fine, pursuant to HRS §11-410(c), order that any and all administrative penalties be paid within 30 days of receipt of the order and be deposited into the general fund pursuant to HRS §11-410, and order that Respondent file the Electronic Filing Form, the Organizational Report, and the Supplemental Report within 30 days of receipt of the order.

Vice-Chair Chee asked if a committee exists since no Electronic Filing Form was completed and who would be responsible for payment of the fine. Executive Director Izumi-Nitao confirmed that currently it is just an organization that is required to register as a committee and that the organization or any individual affiliated with the organization can pay the fine.

*Docket No. 24-17 – In Re the Matter of United Group of Home Operators, Inc. – Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Respondent for the failure to register with the Commission by filing the Electronic Filing Form and the Organizational Report as well as the failure to file the Supplemental Report.

In its 7/1/23 through 12/31/23 Supplemental Report filed on 1/31/24, Friends of Lynn Decoite reported a contribution made by Respondent in the amount of $150 on 7/27/23. In its 7/1/23 through 12/31/23 Supplemental Report filed on 1/31/24, McKelvey for Senate reported a contribution made by Respondent in the amount of $150 on 8/23/23. In its 7/1/23 through 12/31/23 Supplemental Report filed on 1/31/24, Friends of Rose Martinez reported a contribution made by Respondent in the amount of $440 on 9/12/23.

Pursuant to HRS §11-321(b), before filing the Organizational Report, a noncandidate committee shall mail or deliver an Electronic Filing Form to the Commission.

Respondent was thus required to file their Organizational Report by 9/22/23 which is 10 days from the date it made a contribution to Friends of Rose Martinez and exceeded the threshold of an aggregate amount of more than $500.

On 3/5/24, Commission staff sent Respondent a letter (Notice to Register with the Campaign Spending Commission) via first class mail informing them that their Organizational Report was due on 9/22/23, that their failure to register by filing the Electronic Filing Form and the Organizational Report violates campaign finance laws, and of the imposition of an administrative fine if they do not register by 3/19/24.

Respondent has not filed their Organizational Report nor their Electronic Filing Form.

Pursuant to HRS §11-336, Respondent was required to file the Supplemental Report for the period covering 7/1/23 through12/31/23 by 11:59 p.m. Hawaii standard time on 1/31/24. Respondent did not file this report by the deadline.

Executive Director Izumi-Nitao recommended that the Commission make a preliminary determination, pursuant to HRS §11-405(a), that probable cause exists to believe that a violation of the campaign spending law has been committed, assess an administrative fine in the amount of $50 in Count I for the failure to file an Electronic Filing Form, $100 in Count II for the failure to file an Organizational Report, and $500 in Count III for the failure to file the Supplemental Report for a total fine of $650, order that the fine be paid from the chairperson’s and treasurer’s personal funds, if the noncandidate committee’s funds are insufficient to pay the fine, pursuant to HRS §11-410(c), order that any and all administrative penalties be paid within 30 days of receipt of the order and be deposited into the general fund pursuant to HRS §11-410, and order that Respondent file the Electronic Filing Form, the Organizational Report, and the Supplemental Report within 30 days of receipt of the order.

*Docket No. 24-18 – In Re the Matter of Universal Equipment Rental Hawaii, LLC – Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Respondent for the failure to register with the Commission by filing the Electronic Filing Form and the Organizational Report as well as the failure to file the Supplemental Report.

In its 7/1/23 through 12/31/23 Supplemental Report filed on 1/31/24, Friends of Rick Blangiardi reported a contribution made by Respondent in the amount of $2,000 on 9/5/23.

Pursuant to HRS §11-321(b), before filing the Organizational Report, a noncandidate committee shall mail or deliver an Electronic Filing Form to the Commission.

Respondents were thus required to file their Organizational Report by 9/15/23 which is 10 days from the date it made a contribution to Friends of Rick Blangiardi in an amount of more than $500.

On 3/7/24, Commission staff sent Respondents a letter (Notice to Register with the Campaign Spending Commission) via first class mail informing them that their Organizational Report was due on 9/15/23, that their failure to register by filing the Electronic Filing Form and the Organizational Report violates campaign finance laws, and of the imposition of an administrative fine if they do not register by 3/21/24.

Respondent has not filed their Organizational Report nor their Electronic Filing Form.

Executive Director Izumi-Nitao recommended that the Commission make a preliminary determination, pursuant to HRS §11-405(a), that probable cause exists to believe that a violation of the campaign spending law has been committed, assess an administrative fine in the amount of $50 in Count I for the failure to file an Electronic Filing Form, $100 in Count II for the failure to file an Organizational Report, and $500 in Count III for the failure to file the Supplemental Report for a total fine of $650, order that the fine be paid from the chairperson’s and treasurer’s personal funds, if the noncandidate committee’s funds are insufficient to pay the fine, pursuant to HRS §11-410(c), order that any and all administrative penalties be paid within 30 days of receipt of the order and be deposited into the general fund pursuant to HRS §11-410, and order that Respondent file the Electronic Filing Form, the Organizational Report, and the Supplemental Report within 30 days of receipt of the order.

Old Business
*Consideration, Discussion, Approval, and/or Update of Commission Legislation and Other Related Bills/Resolutions for the 2024 Legislative Session – General Counsel Kam reported that he had no update from the last meeting. SB 2687 (prohibits deep fake advertising without the required disclaimer) is before the Governor for consideration which will become law by default on 7/10/24 if the Governor does not sign the bill by that date or provide notice of intent to veto the bill to the Legislature by 6/25/24.

General Counsel Kam asked if there were any questions. There were none.

*Docket No. 24-05 – In Re the Matter of Thora-Jean Cuaresma, Judy Miram, and TJ CUARESMA – CANDIDATE SD22 – Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Respondents for the late filing of the Supplemental Report. She stated that this matter was continued from the Commission’s meeting on 5/8/24.

She reported that in the Organizational Report filed with the Commission, Respondent Cuaresma is the candidate and Respondent Miram is the treasurer of the candidate committee called TJ CUARESMA – CANDIDATE SD22.

Pursuant to HRS §11-334(b), Respondents were required to file the Supplemental Report for the period covering 7/1/23 through 12/31/23 by 11:59 p.m. Hawaii standard time on 1/31/24. Respondents did not file the report by the deadline.

On 2/1/24, Commission staff notified Respondents via first class mail of their failure to file the report and that a fine would be imposed.

On 2/16/24, Respondents electronically filed the aforementioned report (16 days late).

On 2/16/24, Commission staff notified Respondents via first class mail that a fine of $200 will be assessed for the late filing of the report. The letter informed Respondents that they could avoid the complaint process by waiving their right to be heard at a HRS chapter 92 public meeting and a HRS chapter 91 contested case hearing, and voluntarily paying the fine by 3/1/24. The letter was addressed to Respondents at the addresses listed on their Organizational Report.

Respondents did not voluntarily pay the late report fine.

On 3/4/24, Commission staff phoned Respondents and left a voicemail informing them that if the fine was not paid, a complaint would be filed.

On 4/10/24, Commission staff sent Respondents a copy of the complaint and set the matter on the 5/8/24 Commission agenda which was then continued to the Commission’s meeting on 6/12/24 to permit Respondents the opportunity to respond. Respondents have not responded to the complaint within 30 days from the mailing of the complaint, and therefore, pursuant to HRS §11-403(c), the Commission may treat the failure to explain or respond as a rebuttable presumption that a violation has occurred.

Report from Executive Director
*Chair Herbert asked to take the matters out of order.

*Report on the 2024 Election – Associate Director Baldomero reported that there are 103 seats up for election out of 128 elective seats in the State of Hawaii and its four counties. Nomination paper filing deadline was 6/4/24 and there are currently 259 candidates, of which 115 are newly registered during this election period. Although 259 candidates is a lower number compared to previous elections, the number of reports that each candidate and noncandidate committee are required to file does not change. He also stated that 8 seats are open, meaning that there is no incumbent running in that race due to term limits, the incumbent seeking different office, or the incumbent deciding not to seek reelection. The Primary Election will be on 8/10/24 and ballots will be mailed prior to 7/23/24. The General Election will be on 11/5/24 and ballots will be mailed prior to 10/18/24.

As for fundraisers by candidates, 253 fundraisers have been held since the 2022 election, of which 68 were held since the end of the 2024 legislative session.

As for public funding related filings, 106 candidates filed the Affidavit to voluntarily agree with the expenditure limit set for their office, which is low in comparison to the 50% rate we normally see. So far, we have only received one application for public funding. In 2022, approximately $72,000 was disbursed to 15 candidates.

With regards to noncandidate committees, there are 282 registered noncandidate committees of which 19 are Super PACs and there are 8 qualified political parties.

*Report on Compliance of Filing Timely Disclosure Reports – Executive Director Izumi-Nitao reported that she had no update on prior reports; however, there are 4 deadlines coming up in July that candidate and noncandidate committees are required to file campaign finance reports based on the committees’ status for this election period.

*Update on CSC Committee Training – Associate Director Baldomero reported that 4 training dates were scheduled this year and registration was opened on 3/6/24. He stated that the trainings on Hilo and Kauai did not receive the required number of registration and were cancelled. There were 7 attendees on Maui, 17 attendees for the Candidate Committee training on Oahu, and 10 attendees for the Noncandidate Committee training.

He added that Commission staff will incorporate the presentations used at the training sessions with AI voice overlay and post it on the Commission’s website, as well as cyber learning videos to go along with the guidebooks and manuals that are already on the website.

Executive Director Izumi-Nitao stated that it is unfortunate for us to have to cancel the trainings, but due to the Commission being a small office, it would not be a good use of limited resources to host an in-person training with only a few attendees, and that transitioning to a remote model for future trainings is being considered.

Chair Herbert added that it is regrettable candidate and noncandidate committees are not taking advantage of the assistance offered. He agreed a consolidation of trainings would be more efficient.

Vice-Chair Chee asked if the resources being readily available on Commission’s website is the reason for the low turnout in training attendees and whether staff monitors traffic on the website (i.e., hits on the training materials on the Commission’s website). Associate Director Baldomero stated that it could be due to training sessions being held during work hours and that the number of visits to Commission’s resources on the website are tracked.

*Update on Boards and Commissions on New Commissioners and Consideration of Approval of a Letter to Governor Green – Executive Director Izumi-Nitao reported that she and Chair Herbert have been in communication with the Judicial Council, Boards of Commissions, and Chief of Staff Blake Oshiro regarding the upcoming vacancies on the Commission’s Board, and a letter was drafted to be approved by the Commission for Governor Green which requests the appointment of 2 new Commissioners sooner rather than later. She added that parties involved in the selection process are aware of the Commission’s urgency and hope for new appointments to the Commission by the end of June.

Chair Herbert commented that he is disappointed that the incoming Commissioners will not have an opportunity to sit and observe at least one meeting before officially joining the Commission and was worried that further delay might hurt the efficiency of the Commission, but does understand that it is a complicated process.

*Discussion of July 2024 CSC Newsletter – Executive Director Izumi-Nitao reported on the contents of the newsletter to be posted on 7/1/24 which include the following:

Wrap-up of the 2024 Legislative Session
Reporting Schedules
$1,000 or Less Aggregate Contributions and Expenditures for the 2024 Election
New Noncandidate Committee Requirements
Considerations If You Are a Candidate Running in the 2024 Election
New – Standard Fine Guidelines
Violations of the Campaign Finance Laws
Reminder to Check Off the $3 Box on Your 2024 Tax Return
2024 Meeting Schedule, Meeting Agendas and Board Packets
Downloadable Calendar Available on the Commission’s Website
2024 Amended Standard Mileage Rate Announced by the Internal Revenue Service (IRS)
Mahalo to Commissioners Stanley Lum and Victor Bonfiglio

Chair Herbert commented that he is sad that the Commission was not able to obtain additional staff during the 2024 legislative session, and hopes that if there is a surplus in the state’s funds next year that the legislature would reconsider the Commission’s request. He also understands that it was bad timing due to the Lahaina disaster and thanked Commission staff for their efforts. Executive Director Izumi-Nitao stated that the Commission will resubmit its request for additional resources at the next budget cycle.

Vice-Chair Chee moved to adjourn the open session of the meeting and go into executive session to: (1) Consider and Approve the Executive Session Minutes on 5/8/24; (2) 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 regarding HRS §11-352 concerning straw donors and §11-355 concerning government contractors; and, (3) pursuant to HRS §92-5(a)(2), to review, consider, and discuss Commission staff performance and compensation. Motion seconded by Commissioner Bonfiglio. Motion carried (4-0).

Next Meeting:
Scheduled for Wednesday, July 10, 2024.

Meeting Adjourned at 11:18 a.m.

Campaign Spending Commission

Minutes for June 12, 2024 Meeting

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