Campaign Spending Commission

Campaign Spending Commission
Leiopapa A Kamehameha Building, Room 204
April 13, 2011
10:30 a.m.

Commissioners Present:
Chair Paul Kuramoto, Vice-Chair Michael Weaver, Steven Olbrich, Gino Gabrio, Dean Robb

Staff Present:
Kristin Izumi-Nitao, Tony Baldomero, Gary Kam, Ellen Kojima
Deputy Attorney General Robyn Chun

Call to Order:
Meeting convened at 10:30 a.m. with Chair Kuramoto presiding.

Consideration of Minutes:
Correction:  Page 4 – correct to read Commissioner Robb moved to assess the minimum fine of $200.

Vice-Chair Weaver moved to approve the minutes as corrected.  Motion seconded by Commissioner Robb.  Motion carried unanimously.

Old Business:
Corporate Reporting System
Executive Director Izumi-Nitao stated that pursuant to an unfunded legislative mandate, effective January 2011, corporations are now required to report contributions to candidates from its own treasury.  The Corporate Reporting System (CRS) was launched on March 31, 2011 with the assistance of ICSD.  She reported that she informed Comptroller Bruce Coppa of their work and help in getting the system up and running.

Associate Director Tony Baldomero also acknowledged ICSD and reported that the Corporate Reporting system is a streamlined version of the Noncandidate Committee Filing system and that the system has one registered user – Marriott International.  The first report for corporations required to file is due August 1, 2011 for the period January 1 – June 30, 2011.

New Business:
Executive Director Izumi-Nitao stated that the following proposed conciliation agreement is a result of an investigation that she initiated in March 2011 pursuant to HRS section 11-314(7) to determine whether there had been a violation of the Hawaii campaign spending law.

The Respondent had been notified of the meeting, had been provided a copy of the proposed conciliation agreement, and waived the opportunity to explain or otherwise respond to the notice of violation.  She recommended that the Commission make a preliminary determination of probable cause that a violation had been committed and approve the settlement amount as stated in the proposed agreement, which had been discussed with the Respondent who had waived findings of fact and conclusions of law as well as any further proceedings including a contested case hearing.

Proposed Conciliation Agreement 11-11 – In Re the Matter of Friends of Rose Martinez
Proposed agreement is offered to settle a claim regarding the late filing of the Final Special Election Period Report and Supplemental Report in violation of HRS section 11-334 and 11-340.  The reports were due no later than 11:59 p.m. on January 31, 2011.  Respondent filed both reports on February 11, 2011.

Commissioner Robb moved to find probable cause exists that Respondent committed a violation and to accept proposed Conciliation Agreement 11-11.  Motion seconded by Vice-Chair Weaver.  Motion carried unanimously.

General Counsel Gary Kam stated that the following complaints filed by Executive Director Izumi-Nitao against Respondents are for late filings of disclosure reports and that some involve multiple violations.  Request is that the Commission make a preliminary determination of probable cause that a violation has been committed and fines be assessed as stated in the complaints.  Fines have been calculated pursuant to HRS section 11-340.

Docket No. 11-03 – In Re the Matter of Mele Carroll and Friends of Mele Carroll
Complaint for failure to timely file the 1^st Preliminary Primary, 2^nd Preliminary Primary, Final Primary, Preliminary General, Final Election Period and a Supplemental Report.  Reports were filed between 7 to 169 days late with a calculated fine of $2,607.58.  In a letter to the Comission, Ms. Carroll requested a payment plan.  Staff to decide whether to allow a payment plan.

Commissioner Robb moved to make a preliminary determination that probable cause of a violation exists.  Motion seconded by Commissioner Weaver.  Motion carried unanimously.

Vice-Chair Weaver moved for relief as stated in the complaint.  Motion seconded by Commissioner Robb.  Motion carried unanimously.

Docket No. 11-04 – In Re the Matter of Beth Fukumoto, Shasteen R. Schwab and Friends of Beth Fukumoto
Complaint for failure to timely file the Supplemental Report filed 18 days late for a calculated fine of $200.  Respondent paid the $200 fine on April 6, 2011.

Commissioner Robb moved to waive further proceedings and dismiss the complaint.  Motion seconded by Commissioner Olbrich.  Motion carried unanimously.

Docket No. 11-05 – In Re the Matter of Philmund Lee and Friends of Philmund Lee
Complaint for failure to timely file the Final Election Period Report filed 67 days late and the Supplemental Report filed 7 days late for a calculated fine total of $400.  Prior to the meeting, Respondent Lee told staff that he did not receive any notices or the complaint and that he filed the termination to close the committee.  However, Respondent Lee confirmed the address on his organizational report and staff informed him that he has not terminated his registration for the 2010 election.

Commissioner Robb moved to make a preliminary determination that probable cause of a violation exists.  Motion seconded by Commissioner Olbrich.  Motion carried unanimously.

Vice-Chair Weaver moved for relief as stated in the complaint.  Motion seconded by Commissioner Olbrich.  Motion carried unanimously.

Docket No. 11-06 – In Re the Matter of Emily Naeole-Beason, Gwendolyn L. Kupahu, and Friends of Emily I. Naeole-Beason
Complaint for failure to timely file the Supplemental Report filed 11 days late for a calculated fine of $200.

Vice-Chair Weaver moved to make preliminary determination that probable cause of that a violation exists.  Motion seconded by Commissioner Robb.  Motion carried unanimously.

Commissioner Robb moved for relief as stated in the complaint.  Motion seconded by Commissioner Olbrich.  Motion carried unanimously.

Docket No. 11-07 – In Re the Matter of Richard Eric Seibert, Eugene F. Simon and Campaign to Elect Eric Seibert
Complaint for failure to timely file the Supplemental Report filed 9 days late for a calculated fine of $200.

Commissioner Robb moved to make a preliminary determination that probable cause of a violation exists.  Motion seconded by Vice-Chair Weaver.  Motion carried unanimously.

Commissioner Robb moved for relief as stated in the complaint.  Motion seconded by Commissioner Olbrich.  Motion carried unanimously.

Docket No. 11-08 – In Re the Matter of Dawn K. Wasson and Friends for Dawn K. Wasson
Complaint for failure to timely file the 2^nd Preliminary Primary, Final Primary, Final Election Period, and a Supplemental Report.  Reports were filed between 22 and 167 days late for a calculated fine total of $900.  Respondent requested an appearance before the Commission to explain why the reports were late and why she is unable to pay the fine, but she did not appear at the meeting.

Commissioner Olbrich moved to make a preliminary determination that probable cause that a violation exists.  Motion seconded by Commissioner Robb.  Motion carried unanimously.

Commissioner Olbrich moved for relief as stated in the complaint.  Motion seconded by Commissioner Robb.  Motion carried unanimously.

Docket No. 11-09 – In Re the Matter of John White, Stacey Katakura and Friends of John White
Complaint for failure to timely file the Late Contributions (Primary) Report filed 1 day late and the Supplemental Report filed 10 days late for a calculated fine total of $250.  Respondent White paid the $250 fine on April 6, 2011.

Commissioner Robb moved to waive further proceedings and dismiss the complaint.  Motion seconded by Commissioner Gabrio.  Motion carried unanimously.

Legislation Update
HB 257, HD 2, SD1 passed 3^rd reading and has been transmitted back to the House.  Letter to be sent to Judiciary Chair Keith-Agaran regarding concerns in the senate draft: elimination of supplemental report for new candidates, addition of September 30 report (taken from HB 258), fundraiser ticket amount, and changing the effective date from January 2059 to upon approval.

Kory Payne of Voter Owed Hawaii, in anticipation of McComish asked our assistance into asserting language repealing “equalizing funds” in Act 244 – declined because did not want to jeopardize our bill.

Report from Executive Director:
Update & Report – Failure to File Reports, Unpaid Fines and Subsequent Proceedings
Executive Director Izumi-Nitao and General Counsel Kam to meet with Attorney General David Louie regarding assistance with filings with the circuit court and process serving for complaints that have not complied with relief as ordered by the Commission.

Upcoming meeting – complaints against candidates who have not filed any reports.

McComish v. Bennett
Oral argument heard 3/28/11, 5 justices in the majority in Citizens United appear to be prepared to strike down the “matching funds” provision in the Arizona law on the ground that it forces nonparticipating candidates to limit their spending so that they won’t trigger the matching fund provision of the law.  The focus of arguments was whether the government can give additional funds to publicly financed candidates as a result of a privately financed candidate exceeding a spending limit.  Decision expected in summer 2011.

CSC Furloughs
Executive Order signed by the Governor declaring furloughs between April 1 and June 30, 2011 have been discontinued.

Consideration of Scheduling Commissioners’ Review and Assessment of CSC 2008-2012 Strategic Plan
Discussion regarding the review and assessment of the present strategic plan scheduled for the May and June meetings.

Commissioner Robb moved to convene executive session to consult with attorney on Yamada et al v. Kuramoto et al.  Motion seconded by Vice-Chair Weaver.  Motion carried unanimously.

Public session reconvened at 11:45 a.m. 

Next Meeting:
Scheduled for Wednesday, May 11, 2011 at 10:30 a.m.

Chair Kuramoto asked for a motion to adjourn meeting.  Vice-Chair Weaver moved to adjourn meeting.  Motion seconded by Commissioner Robb.  Motion carried unanimously.

Meeting adjourned at 11:47 a.m.