Campaign Spending Commission

Campaign Spending Commission
Leiopapa A Kamehameha Building, Room 204
August 13, 2012
10:00 a.m.

Commissioners Present:
Michael Weaver, Tina Pedro Gomes, G. William Snipes

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

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

Consideration of Minutes:
Commissioner Gomes moved to approve the minutes of June 13, 2012.  Motion seconded by Commissioner Snipes.  Motion carried unanimously.

Old Business:
Legislation Update
Executive Director Izumi-Nitao reported that SB 2508, SD 2, HD 1, CD 1, was signed by the Governor and took effect on June 15, 2012 as Act 118.  Because of the date change for the primary election, Act 118 changed the 1^st Preliminary Primary Report due date from July 31^st to 30 days before the primary election or July 12^th.  Staff noticed the change of the reporting deadline via the Commission website, Facebook, Twitter, the Commission’s automated email program, the June 30^thnewsletter, and a memo that accompanied the newsletter that was mailed.

Consideration and Discussion of Strategic Planning and Online Survey
Associate Director Baldomero presented an overview of responses to the online survey that concluded on June 30, 2012.

-Using the Commission’s automated email program, 670 received a request to participate in the survey, also posted link to the survey on the Commission’s website
-Survey consisted of 5 areas – background information, communication, education & training, public funding, and independent expenditures

-Findings:  Commission’s website and email system are popular, mixed responses regarding the newsletter, not many using social media tools, reports filed are being viewed, guidebooks are being used, positive feedback with new Treasurer’s Manual, concern regarding super PAC and independent expenditure spending
-Survey results will be posted on Commission’s website

New Business
Executive Director Izumi-Nitao stated that the following proposed conciliation agreements are a result of investigations that she initiated in July and August 2012 pursuant to HRS §11-314(7) to determine whether there has been a violation of the Hawaii campaign spending laws.

Respondents were notified of today’s meeting, received a copy of the proposed conciliation agreement, and waived the opportunity to explain or otherwise respond to the notice of violation.  She went through the relevant and specific facts of the matter and the relevant laws that were allegedly violated.

Proposed Conciliation Agreement 13-01 In Re the Matter of Campaign of Clifton H. Takamura for the House of Representatives
The proposed conciliation agreement is offered to settle a claim regarding the late filing of the 1^stPreliminary Primary Report for the period January 1 – June 30, 2012, which was due on July 12, 2012, in violation of Act 118, Session Laws of Hawaii 2012.

The Respondent is a candidate committee and acknowledges that the 1^st Preliminary Primary Report was not filed on or before the July 12, 2012 due date.  Respondent’s 1^st Preliminary Primary Report was filed on July 25, 2012, and Respondent did not knowingly, intentionally, or recklessly violate Act 118, Session Laws of Hawaii 2012 and HRS §11-340(a).  She recommended that the Commission make a preliminary determination of probable cause that a violation had been committed.

Commissioner Snipes moved that the Commission make a preliminary determination that probable cause exists that a violation has been committed.  Motion seconded by Commissioner Gomes.  Motion carried unanimously.

As final settlement Respondent has agreed to an assessment of $70 pursuant to HRS §11-410(a) and Executive Director Izumi-Nitao recommended acceptance of the settlement terms.

Commissioner Snipes moved to accept the settlement of $70.  Motion seconded by Commissioner Gomes.  Motion carried unanimously.

Proposed Conciliation Agreement 13-02 In Re the Matter of Joe Pickard
The proposed conciliation agreement is offered to settle a claim regarding an excess contribution made to a candidate committee in violation of HRS §11-364.

Respondent Pickard made a $2,500 contribution on June 7, 2012 to the Friends of Romy Mindo, a candidate committee, for an excess contribution of $500 which was not returned within 30 days.

Executive Director Izumi-Nitao recommended that the Commission make a preliminary determination of probable cause that a violation had been committed.

Commissioner Gomes moved that the Commission make a preliminary determination that probable cause exists that a violation has been committed.  Motion seconded by Commissioner Snipes.  Motion carried unanimously.

As final settlement Respondent has agreed to an assessment of $70 pursuant to HRS §11-410(a) and Executive Director Izumi-Nitao recommended acceptance of the settlement terms.

Commissioner Snipes moved to accept the settlement of $70.  Motion seconded by Commissioner Gomes.  Motion carried unanimously.

Commissioners noted that each of the following proposed conciliation agreements had been reviewed and that they had no additional questions:

CA 13-03  In Re the Matter of Friends of Erin McLaughlin
CA 13-04  In Re the Matter of Gil Kahele
CA 13-05  In Re the Matter of Simon Russell
CA 13-06  In Re the Matter of Friends for Matthew LoPresti
CA 13-07  In Re the Matter of Vote Leslie 43 Committee
CA 13-08  In Re the Matter of Totten State Senate Committee
CA 13-09  In Re the Matter of Troy Trujillo
CA 13-10  In Re the Matter of Friends for Bucky Leslie
CA 13-11  In Re the Matter of Friends of Lei Sharsh
CA 13-12  In Re the Matter of Friends of Fred Blas

Commissioner Snipes moved that for the remaining conciliation agreements the Commission makes a preliminary determination that probable cause exists that a violation had been committed and accept the settlement terms as stated in each conciliation agreement.  Motion seconded by Commissioner Gomes.  Motion carried unanimously.

With respect to CA 13-07 In Re the Matter of Vote Leslie 43 Committee, candidate Leslie McKeague-Gomes was present and addressed the Commission.  Commissioner Snipes inquired whether there was any relation to Commissioner Gomes to which the response was in the negative.

Selection of New Vice-Chair
Commissioner Gomes moved to nominate Commissioner Snipes as Vice-Chair.  Motion seconded by Chair Weaver.  Motion carried unanimously.

Searchable Database and Socrata
Executive Director Izumi-Nitao reported that with the assistance of ICSD and the Office of Information Management and Technology (OIMT), we have started to build a searchable database of the information contained in the reports filed on the Commission’s electronic filing systems.  This database would allow people to search any electronically filed report by the candidates, noncandidate committees, and corporations by any identifying element in the reports.

Associate Director Baldomero reported that he is working with ICSD and OIMT with uploading and developing Socrata, the website which will host the searchable database information.  A link will be created from the Commission’s website to Socrata.  The launch of the Socrata searchable database website is set for August 29^th.

Report from Executive Director: 
Report on Compliance of Filing Timely Disclosure Reports
Executive Director Izumi-Nitao reported on the following reports due to the Commission:

1 – 1^st Preliminary Primary Report for the period 1/1/12 – 6/30/12 which was due on 7/12/12 for candidates whose names appear on the 2012 ballot:
 -244 candidates were required to file
 -24 filed late (names were posted on the Commission’s website)
-To date, 2 late filers have not paid fine and 2 have not filed

-Identified 25 new noncandidate committees and 25 new corporations that must register/report with the Commission

2 – Supplemental Report for the period 1/1/12 – 6/30/12 which was due on 7/31/12 for candidates whose names are not on the 2012 ballot:
 -119 candidates were required to file
 -13 filed late (names were posted on the Commission’s website)
 -To date, 1 late filer has not paid fine and 5 have not filed

-Identified 23 new noncandidate committees and 24 new corporations that must register/report with the Commission

3 – 2^nd Preliminary Primary Report for the period 7/1/12 – 7/27/12 which was due on 8/1/12 for candidates whose names appear on the 2012 ballot:
 -244 candidates were required to file
 -48 filed late (names were posted on the Commission’s website)
 -To date, 24 late filers have not paid fine and 8 have not filed

-Have not yet identified the new noncandidate committees and new corporations that must register/report with the Commission

4 – Preliminary Primary Report for the period 1/1/12 – 7/27/12 which was due on 8/1/12 for noncandidate committees and corporations:
 -Noncandidate Committees:
 -203 were required to file
 -25 late filers
 -To date, 9 late filers have not paid fine and 12 have not filed
 -Corporations:
 -108 were potentially required to file

5 – Late Contributions Report for the period 7/28/12 – 8/7/12 which was due on 8/8/12
 -Candidate Committees – 59 filed
 -Noncandidate Committees – 13 filed

Report on OHA Special Election in Maui
Associate Director Baldomero reported that this special election will be held concurrent with the General Election on November 6, 2012.  Deadline to file nomination papers is September 7, 2012.

Update on Public Funding Programs – HCCCPF and Partial Public Funding
Associate Director Baldomero reported that with regard to the Hawaii County Council Comprehensive Public Funding Program (HCCCPF), 8 candidates were certified and $195,428 in public funds was distributed for the primary period.  Four candidates with be receiving general base funding with at least another $20,000 in public funds being distributed.  With regard to the partial public funding program, $44,568 in public funds has been distributed to 10 candidates to date.  An additional $14,244 may be anticipated with 3 pending applications.

Update from Boards and Commissions Concerning Appointment of New Commissioners
Executive Director Izumi-Nitao reported that Boards and Commissions’ director Tony Benasbese is meeting with the Governor this week so anticipate appointments by the end of August.

Report on Training Sessions and Meeting with County Clerks
Training sessions were held as follows:  Kauai – July 17^th had 18 attendees, Maui – July 19^th had 9 attendees, Oahu – July 24^th had 40 attendees, and Hawaii – July 27^th had 15 attendees.  Classes covered campaign spending laws and rules, registration, reporting requirements, and partial public funding.  County Clerks did not request meetings.

Update and Status of the Hawaii Election Campaign Fund
Executive Director Izumi-Nitao reported the following for fiscal year 2012:

-Revenue – $73,528
     $3 Tax Check-Off – $15,817
     Interest on Principal – $21,238
     Escheat, Surplus, Anonymous – $26,375
-Expenditures – $791,879
Closing Balance – $3,401,968

With regard to the $3 tax check-off, a memo dated 8/1/12 was sent to the Department of Taxation requesting a recalculation because Commission staff verified that we did not receive a second payment for the period 12/16/11 to 6/15/12.  On 8/6/12, staff received a Journal Voucher for $125,646 representing the second payment.  This amount will show up in fiscal year 2013.

Executive Director Izumi-Nitao further reported that fines collected for fiscal year 2012 totaled $18,366 which goes to the general fund.  She also stated that it is likely that the HCCCPF program will not be available for the 2014 election with this closing balance.

Vice-Chair Snipes moved to convene executive session to consult with attorney.  Motion seconded by Commissioner Gomes.  Motion carried unanimously.

Public Session reconvened.

Next Meeting:
Scheduled for Wednesday, September 12, 2012 at 10:00 a.m.

Vice-Chair Snipes moved to adjourn meeting.  Motion seconded by Commissioner Gomes.  Motion carried unanimously.  Meeting adjourned at 1:45 p.m.