Campaign Spending Commission

Campaign Spending Commission Meeting
Leiopapa A Kamehameha Building, Room 204
August 11, 2010
10:00 a.m.

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

Staff Present:
Barbara Wong, Tony Baldomero, Grant Tanimoto, Ellen Kojima
Deputy Attorney General Robyn Chun 

Call to Order:
Meeting convened at 10:00 a.m. with Chair Kuramoto presiding.

Consideration of Minutes:
Vice-Chair Olbrich moved to approve the minutes of the June 9, 2010 meeting.  Motion seconded by Commissioner Robb.  Motion carried unanimously. 

Chair Kuramoto noted the Commission would start with New Business first.

New Business:
Docket No. 10-03 Carroll Cox v. Mufi Hannemann
Docket No. 10-04 John C. McLaren v. Mufi Hanneman
Proposed CA 10-08 In Re the Matter of Mufi Hannemann, The Hannemann Committee 2010

Proposed CA 10-09   In Re the Matter of Christine Camp
Bert Kobayashi, Jr., Esq., representing Mufi Hannemann and The Hannemann Committee 2010 and Robert Klein, Esq., representing Ms. Christine Camp were present but both noted that they would not be adding anything new to what they have already submitted in writing to the Commission, unless there were any questions.

Complaints by Mr. Carroll Cox and Mr. John McLaren were filed against gubernatorial candidate Mufi Hannemann. Mr. Cox and Mr. McLaren collectively alleged the failure to file a Notice of Intent to Hold A Fundraiser prior to the fundraiser, filing a false Notice of Intent to Hold A Fundraiser, use of an unregistered person to solicit and collect campaign funds, refusal to accept contributions, failure to properly report and dispose of contributions, and an improper disclaimer on a flyer, in violation of Hawaii Revised Statutes sections 11-198, 11-203, 11-212, 11-215 and 11-229.  There were also other allegations made that are outside the jurisdiction of the Commission.

Executive Director Wong presented 15 allegations from the complaints.  She first presented 10 allegations for which she would be recommending dismissal.  The 10 allegations are as follows:

#4 refusal to accept contributions (candidate not required to accept contributions);
#6 used taxpayers’ money to offset travel to Pittsburg (not within jurisdiction of the Commission);
#8 Mr. Paul Overby privately retained as a spokeperson for Bombardier and that both parties are the main sponsors of the fundraiser.  Bombardier has apparently been actively participating in the bid solicitation process (insufficient evidence);
#9 false swearing in official matters (not within jurisdiction of the Commission);
#10 unsworn falsification to authorities (not within jurisdiction of the Commission);
#11 fundraiser flyer lists a false Federal Election Commission account number (not within jurisdiction of the commission);
#12 primary purpose of Mayor Hannemann’s trip to Washington D.C. was to attend the Overby fundraiser, and not official city business (not within the jurisdiction of the Commission);
#13 tampering with a government record; not within the jurisdiction of the Commission;
#14 violation of the Hawaii Procurement Code (not within the jurisdiction of the Commission);
#15 may have violated 18 United States Code section 666, theft or bribery concerning programs receiving federal funds (not within the jurisdiction of the Commission).

Vice-Chair Olbrich moved to dismiss allegation 4 for no violation, allegations 6, 8, 9, 10, 11, 12, 13, 14, and 15 as not being within the jurisdiction of the commission, and allegation 8 for insufficient evidence, and in part, not within the jurisdiction of the Commission.  Motion seconded by Commissioner Gabrio.  Motion carried unanimously.

Executive Director Wong presented the following three allegations which are addressed in proposed Conciliation Agreement 10-08 with Respondents Mufi Hannemann and The Hannemann Committee 2010:

#3 use of an unregistered person to solicit and collection contributions (failure to amend organizational report to add a deputy treasurer in violation of HRS section 11-196 (b));
#5 failure to properly report and dispose of money collected (failure to deposit 2 contributions within 7 days of receipt in violation of Hawaii Administrative Rules section 2-14.1-7 (a); and failure to report loan in violation of HRS section 11-205.6); and
#7 improper disclaimer on fundraiser flyer in violation of HRS section 11-215 (a).

Executive Director Wong recommends the Commission make a preliminary determination that probable cause exists that Respondents committed above violations.

Commissioner Robb moved to find probable cause exists that Respondents committed violations.  Motion seconded by Commissioner Weaver.  Motion carried unanimously.

Respondents waive findings of fact and conclusions of law and requested a contested case hearing and waive a contested case hearing.  Respondents agree to a fine of $225. 

Executive Director Wong recommends acceptance of the proposed Conciliation Agreement 10-08 and an assessment of $225 fine.

Vice-Chair Olbrich moved to accept proposed conciliation agreement 10-08.  Motion seconded by Commissioner Gabrio.  Motion carried unanimously.

Executive Director Wong presented the following two allegations which are addressed in proposed Conciliation Agreement 10-09 with Respondent Christine Camp:

#1 failure to file the Notice of Intent to Hold a Fundraiser prior to the fundraiser in violation of HRS section 11-203; and
#2 filed a false Notice of Intent to Hold A Fundraiser, by listing the wrong date, falsely reporting the suggested contribution amount, and possible false signature of Hannemann.

Executive Director Wong recommends the Commission make a preliminary determination that probable cause exists that Respondent Camp failed to file the Notice of Intent to Hold A Fundraiser prior to the event in violation of HRS section 11-203 (allegation 1).  Commissioner Robb moved to find probable cause of violation in allegation 1 by Respondent Camp.  Motion seconded by Commissioner Weaver.  Motion carried unanimously.

Respondent Camp waives findings of fact and conclusions of law and requested a contested case hearing and waives a contested case hearing.  Respondent agrees to a $100 fine.  Executive Director Wong recommends acceptance of proposed Conciliation Agreement 10-09 and an assessment of a $100 fine, and to dismiss allegation 1 as to Mufi Hannemann and The Hannemann Committee 2010.  Also recommended was dismissal of allegation 2 due to insufficient evidence as to Camp, Hannemann and The Hannemann Committee 2010.

Commissioner Gabrio moved to accept proposed Conciliation Agreement 10-09 (thereby dismissing allegation 1 as to Mufi Hannemann and The Hannemann Committee 2010 and dismissing allegation 2 due to insufficient evidence as to Camp, Hannemann and The Hannemann Committee 2010).  Motion seconded by Commissioner Robb.  Motion carried unanimously.

Old Business
Proposed Conciliation Agreement 10-06   In Re the Matter of Roy Takumi
It was noted that the minutes of the July meeting showed that:

Preliminary determination of probable cause made, Respondent waived findings   of fact and conclusions of law, requested and waived a contested case hearing,and agreed to a negotiated fine of $200.  Executive Director Wong recommended acceptance of Conciliation Agreement 10-06.

Commissioners discussed the assessment of fines.  Commissioner Gabrio noted that Respondent and anyone else have the opportunity to check what the Commission has been assessing as fines and that Respondent Takumi negotiated and agreed to the fine.

Commissioner Robb moved to accept proposed Conciliation Agreement 10-06.  Motion seconded by Commissioner Weaver.  Motion carried.  (aye-Gabrio, Robb, Weaver / no-Olbrich, Kuramoto)

Proposed Conciliation Agreement 10-07  In Re the Matter of Frederick Fogel
Proposed Conciliation Agreement 10-07 is offered regarding the late filing of the Supplemental Report that was due on February 2, 2009, in violation of sections 11-212 and 11-213.  Executive Director Wong recommends the Commission make a preliminary determination that probable cause exists that Respondent committed violation.

Commissioner Robb moved to find that probable cause exists that Respondent committed violation.  Motion seconded.  Motion carried unanimously.

Respondent Fogel waives findings of fact and conclusions of law and requests a contested case hearing and waives a contested case hearing.  Respondent agrees to a $150 fine.  Executive Director Wong recommends acceptance of proposed Conciliation Agreement 10-07 with an assessed fine of $150.

Commissioner Robb moved to accept proposed Conciliation Agreement 10-07.  Motion seconded by Commissioner Weaver.  Motion carried unanimously.

Rescind below-listed Advisory Opinions
The advice in the Advisory Opinions listed below is now included in Hawaii Administrative Rules as follows:

AO 98-12 Informational ads (HAR §3-160-6)
AO 98-15 Candidates running as a team (HAR §3-160-40(e))
AO 99-01 Sale or disposition of durable assets (HAR §3-160-46)
AO 99-05 Political party coordinated expenses (HAR §3-160-4(e), Example 2)
AO 99-06 Legal defense fund (HAR §3-160-42(b)(10), (c) Example 2)
AO 00-06 Free Web Page Hosts (HAR §3-160-4(f), Example 1)
AO 00-09 Authorized Use of Public Funds (HAR §3-160-63)
AO 01-01 Officer of multiple committees (HAR §3-160-33)

General Counsel Grant Tanimoto recommends these advisory opinions be rescinded.

Vice-Chair Olbrich moved to rescind advisory opinions 98-12, 98-15, 99-01, 99-05, 99-06, 00-06, 00-09 and 01-01, as subject matter is now addressed in the Hawaii Administrative Rules.  Motion seconded by Commissioner Robb.  Motion carried unanimously.

Annual Report FY 10
Executive Director Wong highlighted accomplishments of the Commission and staff for fiscal year 2010 and major goals for fiscal year 2011.

Rule or Extension of Reporting Deadline
General Counsel Grant Tanimoto referenced his memo to the Commissioners and noted he will be drafting legislation that will give the Commission the authority to extend a filing deadline if the electronic filing systems are down for certain lengths of time prior to a reporting deadline.

Commissioner Robb moved to convene executive session to discuss personnel matters.  Motion seconded by Vice-Char Olbrich.  Motion carried unanimously.

Executive session convened at 11:25 a.m.  Public session reconvened at 11:50 a.m.

Next Meeting:
Scheduled for Tuesday, September 14, 2010 at 10:00 a.m.

Commissioner Robb moved to adjourn meeting.  Motion seconded by Vice-Chair Olbrich.  Motion carried unanimously.  Meeting adjourned at 11:51 a.m.