Minutes for October 16, 2024 Meeting

Posted in Main, Minutes

Campaign Spending Commission Meeting
Zoom Video Conference
October 16, 2024
10:00 a.m.

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

Commissioners Excused
Barbara Polk

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

Deputy Attorney General
Candace Park

Guests
Michael Jauch, “HRP Chair”, Dave Buehler, “Voter”, Trevor Nagamine, Paul Deslauriers, Andrew Walden, Brett Kulbis, Democratic Party of Hawaii

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

Chair Herbert 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 Barbara Polk may join the meeting later, but otherwise, she is excused. The Commissioners present stated that there was no one else with them.

Consideration and Approval of Minutes of Meeting on 9/11/24
Executive Director Izumi-Nitao stated that Chair Herbert noted a housekeeping error on page 7, 5th paragraph, 1st sentence. She stated that the word “compliance” should be “compliant.” So, the full sentence should reads: “Commissioner Wong commented that committees should be fully compliant for their name to be removed from the website, meaning fines would have to be fully paid on top of filing the required reports.”

Vice-Chair Chee moved to approve the amended minutes of the meeting held on 9/11/24. Motion seconded by Commissioner Wong. Motion carried (4-0)

New Business
*Executive Director Izumi-Nitao asked to take the matters out of order in consideration of members already present for Docket No. 25-04 – Andrew Walden v. Hawaii Republican Party; Docket No. 25-18 – In Re the Matter of Paul C. Deslauriers & Maui Pono Network; and, Proposed Conciliation Agreement No. 25-29 – In Re the Matter of Friends of Alexander Ozawa.

Vice-Chair Chee moved to accept taking the matters out of order as suggested by Executive Director Izumi-Nitao, which is to consider Proposed Conciliation Agreement No. 25-29 first, followed by the two complaints. Motion seconded by Commissioner Wong. Motion carried (4-0).

Executive Director Izumi-Nitao stated that the Conciliation Agreement(s) on the agenda were a result of investigations 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. 25-29 – In Re the Matter of Friends of Alexander Ozawa – Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the 1st Preliminary General Report and requested that they assess a reduced fine from $50 to $16.67 as it is Respondent’s first violation. Upon receiving notification of the failure to file this report, Respondents filed it. 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 (4-0).

The treasurer for Friends of Alexander Ozawa, Trevor Nagamine, was present and thanked the Commissioners for approving the Conciliation Agreement.

*Docket No. 25-04 – Andrew Walden v. Hawaii Republican Party – General Counsel Kam reported that on 8/6/24, a complaint was filed by Andrew Walden against Respondent Hawaii Republican Party for their failure to report the proceeds of the sale of its 50% undivided interest in its headquarters condominium on May 31, 2024 for $549,839.41 and concern that the money was embezzled.

He reported that in the noncandidate committee’s Organizational Report filed with the Commission, Tamara McKay is the chair of the party and Michael Jauch is the treasurer. Since late August, Michael Jauch has been replaced by Dave Buehler.

On 8/7/24, Commission staff sent the complaint to Respondents via first class mail.

On 9/3/24, Respondent filed a response to the complaint which was then transmitted to Complainant Walden.

On 9/26/24, Commission staff notified the Complainant and the Respondents that the matter would be set on the 10/16/24 Commission agenda.

Complainant Andrew Walden was present and said that he read the response provided by the Hawaii Republican Party (“HRP”) and said that they proceeded with Aristotle’s recommendation which provided no guidance on the state laws without seeking advice from Commission staff, and that the funds in HRP’s Central Pacific Bank account was never reported to the Federal Election Commission (“FEC”). He said that the information presented is unclear and requested further investigation.

HRP’s Chairperson Tamara McKay was present and said that they have been working closely with the FEC and the Campaign Spending Commission to follow guidelines. They were advised by the FEC to keep the proceeds from the selling of the headquarters condominium in a separate account, and that any usage of this fund would be documented as advised by Aristotle.

Vice-Chair Chee asked Ms. McKay if the money from the sale of the office building is just held in an account and if any has been used for campaign related expenses. She stated that it is kept separate from both their FEC and CSC accounts and the only expenses from that account was approved by Aristotle for operational expenses at the federal level.

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 Itomura. Motion carried (4-0).

*Commission went into Executive Session at 10:30 a.m.

*Commission returned into public session at 10:55 a.m.

Vice-Chair Chee commented that the Commission has jurisdiction over state campaign spendings, and based on the facts of the complaint, no state campaign expenses have occurred using funds from the sale of the property. The only usage of the fund appeared to be toward federal activities. Therefore, he believes the Commission has no basis to regulate this transaction and recommended that the complaint be dismissed. Commissioner Wong agreed that until there is evidence of state campaign related expenses, the Commission cannot take further action.

Vice-Chair Chee moved to dismiss Docket No. 25-04 – Andrew Walden v. Hawaii Republican Party. Motion seconded by Commissioner Wong. Motion carried (4-0).

*Docket No. 25-18 – In Re the Matter of Paul C. Deslauriers & Maui Pono Network – Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Respondents for the late filing of the Final Primary Report.

She reported that in the Organizational Report filed with the Commission, Respondent Deslauriers is the chairperson and treasurer of the noncandidate committee called Maui Pono Network.

Pursuant to HRS §11-336(b), Respondents were required to file the Final Primary Report for the period covering 7/27/24 through 8/10/24 by 11:59 p.m. Hawaii standard time on 8/30/24. Respondents did not file the report by the deadline.

On 9/3/24, Commission staff notified Respondents via first class mail of their failure to file the report and that their failure to file this report would result in the Commission filing a complaint and assessing a fine. The letter was addressed to Respondents at the addresses listed on their Organizational Report.

Respondents filed the Final Primary Report on 9/13/24 (14 days late).

On 9/13/24, Commission staff notified Respondents via first class mail that a fine of $200 will be assessed against them for the late filing of the report pursuant to HRS §11-340. 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 9/27/24. The letter was addressed to Respondents at the addresses listed on their Organizational Report.

Respondents did not voluntarily pay the late report fine. Respondent Deslauriers is aware of the fine and wanted to submit a written response to the Commission. He asked that the matter be heard as soon as possible.

On 10/7/24, Commission staff sent Respondents a copy of the complaint and set the matter on the 10/16/24 Commission agenda.

On 10/13/24, Respondent Deslauriers submitted a written statement by email to request that the fine be waived.

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 of $200 for the late filing of the Final Primary Report, and order that any and all administrative penalties be deposited into the general fund pursuant to HRS §11-340(g).

Paul C. Deslauriers, Chairperson of Maui Pono Network, was present and said that he submitted a report on time but did not realize that it was the incorrect report due to his poor vision, and that there was no additional activity to report. He felt that it was excessive to be fined for a late report when he filed on time but just selected the wrong report.

Vice-Chair Chee wanted to verify his understanding that the Commission assesses fines based on a violation regardless of whether it was a mistake or not. Executive Director Izumi-Nitao responded that it is the Commissioners’ decision on whether to assess the fine and noted that this noncandidate committee has had multiple late report violations in the past.

Respondent Deslauriers stated that they are a small committee formed by volunteers and a fine of $200 would impair their ability to support their causes. Vice-Chair Chee responded that all fines are assessed using the fines schedule and that is not adjusted based on the size of the committee.

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 Wong. Motion carried (4-0).

*Chair Herbert stated that the meeting will now resume with agenda’s original order.

*Proposed Conciliation Agreement No. 25-10 – In Re the Matter of Planned Parenthood Alliance PAC, Serving WA, AK, ID, HI, IN, KY – Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the failure to file two (2) Statements of Information for Electioneering Communications and requested that they assess a reduced fine from $1,000 to $333.34 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 (4-0).

*Proposed Conciliation Agreement No. 25-11 – In Re the Matter of Big Island Motors, Inc. – Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Final 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 Wong. Motion carried (4-0).

*Proposed Conciliation Agreement No. 25-12 – In Re the Matter of Olomana Golf Links – Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Final 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 Wong. Motion carried (4-0).

*Proposed Conciliation Agreement No. 25-13 – In Re the Matter of La Hui of Kaleo Nakoa – Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Supplemental Report and requested that they assess a reduced fine from $200 to $100 as it is Respondent’s second 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 (4-0).

*Proposed Conciliation Agreement No. 25-14 – In Re the Matter of Sam for Hawaii – Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Supplemental 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 Wong. Motion carried (4-0).

*Proposed Conciliation Agreement No. 25-15 – In Re the Matter of Friends of Kanoa – Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the 2nd Preliminary Primary Report and requested that they assess a reduced fine from $300 to $100 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 (4-0).

*Proposed Conciliation Agreement No. 25-16 – In Re the Matter of Friends of Gayla Haliniak – Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the 2nd Preliminary Primary Report and requested that they assess a reduced fine from $300 to $100 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 (4-0).

*Proposed Conciliation Agreement No. 25-17 – In Re the Matter of Friends of Gayla Haliniak – Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Final Primary Report and requested that they assess a reduced fine from $200 to $100 as it is Respondent’s second 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 (4-0).

*Proposed Conciliation Agreement No. 25-18 – In Re the Matter of Friends of Bud Stonebraker – Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the failure to file the Supplemental Report and requested that they assess a reduced fine from $500 to $166.67 as it is Respondent’s first violation. In this matter, a complaint had been generated (Docket No. 25-09) which prompted Respondents to file the report. 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 (4-0).

*Proposed Conciliation Agreement No. 25-19 – In Re the Matter of Friends of Chantel Perrin – 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, Respondents filed it. 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 (4-0).

*Proposed Conciliation Agreement No. 25-20 – In Re the Matter of Friends of Diamond Garcia – 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, Respondents filed it. 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 (4-0).

*Proposed Conciliation Agreement No. 25-21 – In Re the Matter of Friends for Dennis “Fresh” Onishi – 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, Respondents filed it. 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 (4-0).

*Proposed Conciliation Agreement No. 25-22 – In Re the Matter of Friends of Tina Grandinetti – 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, Respondents filed it. 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 (4-0).

*Proposed Conciliation Agreement No. 25-23 – In Re the Matter of Hawaii Civil Rights Voter Education Fund DBA Vote Yes for Marriage Equality – 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, Respondents filed it. 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 (4-0).

*Proposed Conciliation Agreement No. 25-24 – In Re the Matter of Friends of TK – Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the failure to file the Supplemental Report and requested that they assess a reduced fine from $500 to $166.67 as it is Respondent’s first violation. In this matter, a complaint had been generated (Docket No. 25-12) which prompted Respondents to file the report. 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 (4-0).

*Proposed Conciliation Agreement No. 25-25 – In Re the Matter of Friends of Reginald Garcia – Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Final Primary Report that was filed 35 days late and requested that they assess a reduced fine from $1,616.10 to $538.70 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 (4-0).

*Proposed Conciliation Agreement No. 25-26 – In Re the Matter of Friends of Luke Evslin – 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, Respondents filed it. 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 (4-0).

*Proposed Conciliation Agreement No. 25-27 – In Re the Matter of Friends of Terez Amato – 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, Respondents filed it. 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 (4-0).

*Proposed Conciliation Agreement No. 25-28 – In Re the Matter of Friends of Mark Hashem – 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, Respondents filed it. 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 (4-0).

*Commission went to recess at 11:25 a.m.

*Commission returned from recess at 11:32 a.m.

*Docket No. 25-05 – In Re the Matter of Noelani Ahia, Nadine Chase, and Vote Ahia – Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Respondents for the failure to file the Supplemental Report.

She reported that in the Organizational Report filed with the Commission, Respondent Ahia is the candidate and Respondent Chase is the treasurer of the candidate committee called Vote Ahia.

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

On 8/1/24, Commission staff notified Respondents via first class mail of their failure to file the report and that their failure to file this report would result in the Commission filing a complaint and assessing a fine. The letter was addressed to Respondents at the addresses listed on their Organizational Report.

Respondents did not file the Supplemental Report.

On 9/6/24, Commission staff sent Respondents a copy of the complaint and set the matter on the 10/16/24 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.

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 of $500 for failing to file the Supplemental Report, order that Respondents file the report, and order that any and all administrative penalties be deposited into the general fund pursuant to HRS §11-410. Chair Herbert asked if there were any comments or questions.

*Docket No. 25-06 – In Re the Matter of Robin Knox and Robin 4 Maui – Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Respondents for the failure to file the Supplemental Report.

She reported that in the Organizational Report filed with the Commission, Respondent Knox is the candidate and treasurer of the candidate committee called Robin 4 Maui.

Respondents did not file the Supplemental Report.

On 9/6/24, Commission staff sent Respondents a copy of the complaint and set the matter on the 10/16/24 Commission agenda.

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 of $500 for failing to file the Supplemental Report, order that Respondents file the report, and order that any and all administrative penalties be deposited into the general fund pursuant to HRS §11-410. Chair Herbert asked if there were any comments or questions.

*Docket No. 25-07 – In Re the Matter of Veamoniti Lautaha, Vika Veliongo Lautaha, and Committee to Elect Veamoniti Lautaha – Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Respondents for the failure to file the Supplemental Report.

She reported that in the Organizational Report filed with the Commission, Respondent Lautaha is the candidate and Respondent Vika Veliongo Lautaha is the treasurer of the candidate committee called Committee to Elect Veamoniti Lautaha.

Respondents did not file the Supplemental Report.

On 9/6/24, Commission staff sent Respondents a copy of the complaint and set the matter on the 10/16/24 Commission agenda.

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 of $500 for failing to file the Supplemental Report, order that Respondents file the report, and order that any and all administrative penalties be deposited into the general fund pursuant to HRS §11-410. Chair Herbert asked if there were any comments or questions.

*Docket No. 25-08 – In Re the Matter of Jonah Martin Lion and Campaign ALOHA – Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Respondents for the failure to file the Supplemental Report.

She reported that in the Organizational Report filed with the Commission, Respondent Lion is the candidate and treasurer of the candidate committee called Campaign ALOHA.

Respondents did not file the Supplemental Report.

On 9/6/24, Commission staff sent Respondents a copy of the complaint and set the matter on the 10/16/24 Commission agenda.

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 of $500 for failing to file the Supplemental Report, order that Respondents file the report, and order that any and all administrative penalties be deposited into the general fund pursuant to HRS §11-410. Chair Herbert asked if there were any comments or questions.

*Docket No. 25-09 – In Re the Matter of William Stonebraker, Melany McAngus, and Friends of Bud Stonebraker – Executive Director Izumi-Nitao recommended to dismiss this complaint as a result of the Commission approving Proposed Conciliation Agreement No. 25-18.

Vice-Chair Chee moved to dismiss the complaint. Motion seconded by Commissioner Wong. Motion carried (4-0).

*Docket No. 25-10 – In Re the Matter of Theresa Texeira and Friends of Kinsey Texeira – Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Respondents for the failure to file the Supplemental Report.

She reported that in the Organizational Report filed with the Commission, Respondent Texeira is the candidate and treasurer of the candidate committee called Friends of Kinsey Texeira.

Respondents did not file the Supplemental Report.

On 9/6/24, Commission staff sent Respondents a copy of the complaint and set the matter on the 10/16/24 Commission agenda.

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 of $500 for failing to file the Supplemental Report, order that Respondents file the report, and order that any and all administrative penalties be deposited into the general fund pursuant to HRS §11-410. Chair Herbert asked if there were any comments or questions.

*Docket No. 25-11 – In Re the Matter of Mark Varize and The Committee to Elect Mark Varize – Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Respondents for the failure to file the Supplemental Report.

She reported that in the Organizational Report filed with the Commission, Respondent Varize is the candidate and treasurer of the candidate committee called The Committee to Elect Mark Varize.

Respondents did not file the Supplemental Report.

On 9/6/24, Commission staff sent Respondents a copy of the complaint and set the matter on the 10/16/24 Commission agenda.

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 of $500 for failing to file the Supplemental Report, order that Respondents file the report, and order that any and all administrative penalties be deposited into the general fund pursuant to HRS §11-410. Chair Herbert asked if there were any comments or questions.

*Docket No. 25-12 – In Re the Matter of Timothy Wehrsig, Karen Cacho, and Friends of TK – Executive Director Izumi-Nitao recommended to dismiss this complaint as a result of the Commission approving Proposed Conciliation Agreement No. 25-24.

Vice-Chair Chee moved to dismiss the complaint. Motion seconded by Commissioner Wong. Motion carried (4-0).

*Docket No. 25-13 – In Re the Matter of Jackie Burke and Burke 4 Aloha Team – 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 reported that in the Organizational Report filed with the Commission, Respondent Burke is the candidate and treasurer of the candidate committee called Burke 4 Aloha Team.

Respondents filed the Supplemental Report on 8/19/24 (19 days late).

On 8/21/24, Commission staff notified Respondents via first class mail that a fine of $200 will be assessed against them for the late filing of the report pursuant to HRS §11-340. 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 9/4/24. The letter was addressed to Respondents at the addresses listed on their Organizational Report.

Respondents did not voluntarily pay the late report fine.

On 9/10/24, Commission staff sent Respondents a copy of the complaint and set the matter on the 10/16/24 Commission agenda.

On 10/14/24, Respondent Burke submitted a written statement by email to request that the fine be waived or reduced due to medical circumstances.

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 of $200 for the late filing of the Supplemental Report, and order that any and all administrative penalties be deposited into the general fund pursuant to HRS §11-340(g). Chair Herbert asked if there were any comments or questions.

*Docket No. 25-15 – In Re the Matter of Tercia Ku, Carol Medina, and Friends of Tercia Ku – 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 reported that in the Organizational Report filed with the Commission, Respondent Ku is the candidate and Respondent Medina is the treasurer of the candidate committee called Friends of Tercia Ku.

Respondents filed the Supplemental Report on 8/13/24 (13 days late).

On 8/13/24, Commission staff notified Respondents via first class mail that a fine of $200 will be assessed against them for the late filing of the report pursuant to HRS §11-340. 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 8/27/24. The letter was addressed to Respondents at the addresses listed on their Organizational Report.

Respondents did not voluntarily pay the late report fine.

On 8/22/24, Respondent Ku submitted a written statement by email to request that the fine be waived or reduced due to her committee not having raised any funds and because she is unemployed.

On 9/10/24, Commission staff sent Respondents a copy of the complaint and set the matter on the 10/16/24 Commission agenda.

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 of $200 for the late filing of the Supplemental Report, and order that any and all administrative penalties be deposited into the general fund pursuant to HRS §11-340(g). Chair Herbert asked if there were any comments or questions.

Old Business
*Discussion of Publishing the Names of Candidate and Noncandidate Committees that Have Failed to Pay Fines as a Result of a Failure to File a Report on the Commission’s Website – General Counsel Kam reported that at the 9/11/24 Commission Meeting, the Commissioners inquired as to whether the Commission could publish the names of committees that have filed their late report (financial disclosure or organizational) but have not paid their fine(s).

A review of HRS §§11-322(c), 11-323(d), and 11-340(g) provides a requirement that the Commission publish the names of the committees that have failed to “file” a report. Therefore, staff does not recommend posting the committee names if they have filed their report(s), but not paid their fine(s), and thus, continue present practice of removing the committee names once they have filed their report(s).

Chair Herbert asked if a law change would be required for the Commission to post the names of committees that have not paid their fine on its website and does the number of committees in this group justify that change. General Counsel Kam responded that a law change is required, and that staff would not recommend it due to the low number of committees that fall in this group.

Report from Executive Director
*Report on Compliance of Filing Timely Disclosure Reports – Executive Director Izumi-Nitao noted that there are a number of reporting deadlines coming up. They include:

2^nd Preliminary General Report (due 10/28/24) (covering 9/27/24 to 10/21/24)
Late Contributions/Expenditures Report (due 11/4/24) (covering 10/22/24 to 11/1/24)
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 winning candidates)
Final Election Period Report (due 12/5/24) (covering 1/1/24 or 8/11/24 or 10/22/24 to 11/5/24)
Expenditure of Public Funds Report (due 12/5/24) (covering 1/1/24 to 11/5/24 for candidates receiving public funds)
- 6 applicants so far totaling $21,400

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

1^st Preliminary General Report (due 10/1/24) (covering 1/1/24 or 8/11/24 to 9/26/24)
- 117 candidate committees needed to file
  - Filed on time – 109 (93%)
  - Failed to file – 5
  - Filed late – 3
  - Today – 0
- 229 noncandidate committees needed to file
  - Filed on time – 218 (95%)
  - Failed to file – 11
  - Today – 1

Executive Director Izumi-Nitao noted that the December meeting will be on the 18^th rather than the usual Commission meeting time of the second Wednesday of the month because some of the Commissioners will be attending the COGEL Conference in Los Angeles.

Next Meeting:
Scheduled for Wednesday, November 13, 2024.

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

Meeting Adjourned at 12:03 p.m.

Campaign Spending Commission

Minutes for October 16, 2024 Meeting

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