Campaign Spending Commission

Campaign Spending Commission
Leiopapa A Kamehameha Building, Room 204
August 8, 2018
12:00 p.m.

Commissioners Present
Bryan Luke, Kenneth Goodenow (late), Gregory Shoda, Stanley Lum, Maryellen Markley, Ph.D.

Staff Present
Kristin Izumi-Nitao, Tony Baldomero, Gary Kam, Yayoi Tumamao
Deputy Attorney General Valri Kunimoto

Call to Order
Chair Luke called the meeting to order at 12 p.m.

Consideration and Approval of Minutes of Meeting on 7/25/18
Chair Luke asked for comments or changes to the minutes.  There were none.  Chair Luke called for a motion to approve the minutes.

Commissioner Markley moved to approve the minutes of the 7/25/18 meeting.  Motion seconded by Commissioner Lum.  Motion carried (4-0) (Vice Chair Goodenow not present).

New Business
Commissioner Shoda moved to amend the agenda to include an 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 concerning enforcement of conciliation agreements.  Motion seconded by Commissioner Lum.  Motion carried (4-0) (Vice Chair Goodenow not present).

Chair Luke moved to go into Executive Session for the aforementioned reason.  Motion seconded by Commissioner Markley.  Motion carried (4-0) (Vice Chair Goodenow not present).

Public Session reconvened at 12:20 p.m.

Executive Director Izumi-Nitao stated that the thirty-one (31) Conciliation Agreements 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 the settlement amounts stated in each of the proposed agreements.

*Proposed Conciliation Agreement No. 19-02 – In Re the Matter of Friends of Joy San Buenaventura
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the 1^st Preliminary Primary Report and requests that they assess a reduced fine from $100 to $33.33.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Commissioner Markley moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Lum.  Motion carried (4-0) (Vice Chair Goodenow not present).

*Proposed Conciliation Agreement No. 19-03 – In Re the Matter of Friends of Jo Jordan
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the 1^st Preliminary Primary Report and requests that they assess a reduced fine from $50 to $25.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Commissioner Markley moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Shoda.  Motion carried (4-0) (Vice Chair Goodenow not present).

*Proposed Conciliation Agreement No. 19-04 – In Re the Matter of Friends of Dain Kane
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Statement of Information for Electioneering Communications and requests that they assess a reduced fine from $250 to $83.33.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Commissioner Shoda moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Markley.  Motion carried (4-0) (Vice Chair Goodenow not present).

*Proposed Conciliation Agreement No. 19-05 – In Re the Matter of Friends of Alan Arakawa
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Statement of Information for Electioneering Communications and requests that they assess a reduced fine from $500 to $166.67.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Commissioner Markley moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Shoda.  Motion carried (4-0) (Vice Chair Goodenow not present).

*Proposed Conciliation Agreement No. 19-06 – In Re the Matter of Friends of Kauanoe Batangan
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Statement of Information for Electioneering Communications and requests that they assess a reduced fine from $1,500 to $500.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Commissioner Markley moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Shoda.  Motion carried (4-0) (Vice Chair Goodenow not present).

*Proposed Conciliation Agreement No. 19-07 – In Re the Matter of Friends of Amy Perruso
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Statement of Information for Electioneering Communications and requests that they assess a reduced fine from $250 to $83.33.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Commissioner Shoda moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Markley.  Motion carried (4-0) (Vice Chair Goodenow not present).

*Proposed Conciliation Agreement No. 19-08 – In Re the Matter of Friends of Jeanne Kapela
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Statement of Information for Electioneering Communications and requests that they assess a reduced fine from $500 to $166.67.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Commissioner Markley moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Shoda.  Motion carried (4-0) (Vice Chair Goodenow not present).

*Proposed Conciliation Agreement No. 19-09 – In Re the Matter of Ford for the People
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Statement of Information for Electioneering Communications and requests that they assess a reduced fine from $750 to $250.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Commissioner Markley moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Shoda.  Motion carried (4-0) (Vice Chair Goodenow not present).

*Proposed Conciliation Agreement No. 19-10 – In Re the Matter of Friends of Tarnas for State House
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Statement of Information for Electioneering Communications and requests that they assess a reduced fine from $250 to $83.33.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Commissioner Markley moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Shoda.  Motion carried (4-0) (Vice Chair Goodenow not present).

*Proposed Conciliation Agreement No. 19-11 – In Re the Matter of Friends of Robert Bunda
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Statement of Information for Electioneering Communications and requests that they assess a reduced fine from $500 to $166.67.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Commissioner Shoda moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Markley.  Motion carried (4-0) (Vice Chair Goodenow not present).

*Proposed Conciliation Agreement No. 19-12 – In Re the Matter of Friends of D. Morikawa
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Statement of Information for Electioneering Communications and requests that they assess a reduced fine from $250 to $83.33.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Commissioner Shoda moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Markley.  Motion carried (4-0) (Vice Chair Goodenow not present).

*Proposed Conciliation Agreement No. 19-13 – In Re the Matter of Friends of Tina Wildberger
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Statement of Information for Electioneering Communications and requests that they assess a reduced fine from $2,000 to $666.67.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Commissioner Shoda moved to approve proposed conciliation agreement.  Motion seconded by Commissioner Markley.  Motion carried (4-0) (Vice Chair Goodenow not present).

*Proposed Conciliation Agreement No. 19-14 – In Re the Matter of Friends of Heather Kimball
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Statement of Information for Electioneering Communications and requests that they assess a reduced fine from $2,250 to $750.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Commissioner Shoda moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Markley.  Motion carried (4-0) (Vice Chair Goodenow not present).

*Proposed Conciliation Agreement No. 19-15 – In Re the Matter of Hawaii Building and Construction Trades Council
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Statement of Information for Electioneering Communications and requests that they assess a reduced fine from $250 to $83.33.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Commissioner Shoda moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Markley.  Motion carried (4-0) (Vice Chair Goodenow not present).

*Proposed Conciliation Agreement No. 19-16– In Re the Matter of Natalia for Hawaii
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Statement of Information for Electioneering Communications and requests that they assess a reduced fine from $1,250 to $416.67.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Commissioner Lum moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Markley.  Motion carried (4-0) (Vice Chair Goodenow not present).

*Proposed Conciliation Agreement No. 19-17 – In Re the Matter of Friends of Andrew Garrett
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Statement of Information for Electioneering Communications and requests that they assess a reduced fine from $250 to $83.33.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Commissioner Markley moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Lum.  Motion carried (4-0) (Vice Chair Goodenow not present).

*Proposed Conciliation Agreement No. 19-18 – In Re the Matter of Friends of Randy Gonce
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Statement of Information for Electioneering Communications and requests that they assess a reduced fine from $250 to $83.33.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Commissioner Lum moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Markley.  Motion carried (4-0) (Vice Chair Goodenow not present).

*Proposed Conciliation Agreement No. 19-19 – In Re the Matter of Friends of Cedric A. Gates
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Statement of Information for Electioneering Communications and requests that they assess a reduced fine from $1,000 to $333.33.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Commissioner Markley moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Lum.  Motion carried (4-0) (Vice Chair Goodenow not present).

*Proposed Conciliation Agreement No. 19-20 – In Re the Matter of Friends of Scott Saiki
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Statement of Information for Electioneering Communications and requests that they assess a reduced fine from $250 to $83.33.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Commissioner Lum moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Markley.  Motion carried (4-0) (Vice Chair Goodenow not present).

*Proposed Conciliation Agreement No. 19-21 – In Re the Matter of Friends of Justin for Education
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Statement of Information for Electioneering Communications and requests that they assess a reduced fine from $500 to $166.67.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Commissioner Shoda moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Markley.  Motion carried (4-0) (Vice Chair Goodenow not present).

*Proposed Conciliation Agreement No. 19-22 – In Re the Matter of David Ige for Governor
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Statement of Information for Electioneering Communications and requests that they assess a reduced fine from $250 to $83.33.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Commissioner Shoda moved to not approve the proposed conciliation agreement.  Motion seconded by Commissioner Lum.  Motion carried (4-0) (Vice Chair Goodenow not present).

Commission staff was instructed to reissue a fine letter which sets forth the proper fine assessment as well as permit a proposed conciliation agreement of the new amount.

*Proposed Conciliation Agreement No. 19-23 – In Re the Matter of Friends of Koohan Paik-Mander
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Statement of Information for Electioneering Communications and requests that they assess a reduced fine from $2,750 to $916.67.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Commissioner Shoda publicly commended candidates for self-reporting violations.  He asked the other Commissioners about whether there was a concern that the $250 late report fine was too much when the expenditure is smaller.

Chair Luke stated that a Schedule of Fines has been approved by the Commission and that fines are enforced not to make money but to ensure compliance with the campaign finance laws and rules.  He recommended following the fine guidelines rather than being concerned about the amount expended.

Commissioner Markley inquired about leniency.

Commissioner Lum asked if there was a proposal or recommendation from Commissioner Shoda.  Commissioner Shoda stated that he brought this up because he wanted to know what the other Commissioners thought about this issue.

Chair Luke stated that there was a case before them that the fine was so small, the candidate felt that it was easier to just pay the fine rather than comply with the law.  He argued to follow the fine guidelines and not veer off to lessen the guidelines.

Commissioner Markey stated that candidates are working hard to get public donations to win their campaigns rather than to pay high fines for honest mistakes.  Chair Luke asked what she would recommend to be the threshold for fining (or not fining) and what would be an honest mistake.  Commissioner Markley commented that if the Commissioners are always following the fine guidelines, what would be the need for them.

Executive Director Izumi-Nitao commented that staff informs candidates that they have the opportunity to assert their position and challenge fines before the Commission in person or in writing through the complaint process, that the fine guidelines can always be amended by the Commissioners, and that bills can be submitted to change the law.

Chair Luke moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Shoda.  Motion carried (4-0) (Vice Chair Goodenow not present).

*Proposed Conciliation Agreement No. 19-24 – In Re the Matter of Friends of Lynn DeCoite
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Statement of Information for Electioneering Communications and requests that they assess a reduced fine from $250 to $83.33.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Commissioner Shoda moved to not approve the proposed conciliation agreement.  Motion seconded by Commissioner Lum.  Motion carried (4-0) (Vice Chair Goodenow not present).

Commission staff was instructed to reissue a fine letter which sets forth the proper fine assessment as well as permit a proposed conciliation agreement of the new amount.

*Proposed Conciliation Agreement No. 19-25 – In Re the Matter of Friends of Rosalyn Baker
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Statement of Information for Electioneering Communications and requests that they assess a reduced fine from $250 to $83.33.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Commissioner Shoda moved to not approve the proposed conciliation agreement.  Motion seconded by Commissioner Lum.  Motion carried (4-0) (Vice Chair Goodenow not present).

Commission staff was instructed to reissue a fine letter which sets forth the proper fine assessment as well as permit a proposed conciliation agreement of the new amount.

*Proposed Conciliation Agreement No. 19-26 – In Re the Matter of Good Friends of Kyle Yamashita
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Statement of Information for Electioneering Communications and requests that they assess a reduced fine from $1,500 to $500.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Commissioner Shoda moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Lum.  Motion carried (4-0) (Vice Chair Goodenow not present).

*Proposed Conciliation Agreement No. 19-27 – In Re the Matter of Friends of Will Espero
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the failure to file the Statement of Information for Electioneering Communications and requests that they assess a reduced fine from $500 to $166.67.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Commissioner Shoda moved to not approve the proposed conciliation agreement.  Motion seconded by Commissioner Lum.  Motion carried (4-0) (Vice Chair Goodenow not present).

Commission staff was instructed to reissue a fine letter which sets forth the proper fine assessment as well as permit a proposed conciliation agreement of the new amount.

*Proposed Conciliation Agreement No. 19-28 – In Re the Matter of Friends of Lorraine R. Inouye
Executive Director Izumi-Nitao explained staff will be withdrawing this agreement due to new information brought to staff’s attention which requires another review of the filing of the Statement of Information for Electioneering Communications.  She stated that Respondents have been informed of staff’s position.

Commissioner Shoda moved to withdraw the proposed conciliation agreement.  Motion seconded by Commissioner Lum.  Motion carried (4-0) (Vice Chair Goodenow not present).

*Proposed Conciliation Agreement No. 19-29– In Re the Matter of Friends for Brickwood
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Statement of Information for Electioneering Communications and requests that they assess a reduced fine from $500 to $166.67.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Commissioner Lum moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Shoda.  Motion carried (4-0) (Vice Chair Goodenow not present.

*Proposed Conciliation Agreement No. 19-30 – In Re the Matter of Friends of Heidi Tsuneyoshi
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Statement of Information for Electioneering Communications and requests that they assess a reduced fine from $1,000 to $333.33.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Commissioner Markley moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Lum.  Motion carried (4-0) (Vice Chair Goodenow not present).

*Proposed Conciliation Agreement No. 19-31 – In Re the Matter of Friends of Jarrett Keohokalole
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Statement of Information for Electioneering Communications and requests that they assess a reduced fine from $500 to $166.67.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Commissioner Markley moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Shoda.  Motion carried (4-0) (Vice Chair Goodenow not present).

*Proposed Conciliation Agreement No. 19-32 – In Re the Matter of Many Friends of Lenny Rapozo
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Statement of Information for Electioneering Communications and requests that they assess a reduced fine from $500 to $166.67.  Chair Luke asked if there were any comments or questions.  There were none.  Chair Luke called for a vote.

Commissioner Shoda moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Markley.  Motion carried (4-0) (Vice Chair Goodenow not present).

*Presentation and Discussion of New 2018 Election Tool Sets
Associate Director Baldomero reported that he is working with Socrata to develop a dashboard for the 2018 Primary Election that will permit viewers to see candidate and Super PAC data all together rather than in a silo.  He stated that the soft launch date is 8/10/18 and a hard launch will occur in September.

Old Business – None

Report from the Executive Director
Report on Compliance of Filing Timely Disclosure Reports
Executive Director Izumi-Nitao reported that 4 referrals to the Attorney General – Civil Recoveries Division remain.

As for the reports that were due since the last meeting, Executive Director Izumi-Nitao reported the following:

• Supplemental Report (reporting period 1/1/18 to 6/30/18) due on 7/31/18
  • 148 committees were expected to file
    • 115 (78%) filed on time
    • 8 (5%) filed late
    • 25 (17%) did not file (names posted on the Commission’s website)
    • As of today, 9 have not filed

• 2^nd Preliminary Primary Report (reporting period 7/1/18 to 7/27/18) due on 8/1/18
  • 233 committees were expected to file
    • 219 (94%) filed on time
    • 3 (1%) filed late
    • 11 (5%) did not file (names posted on the Commission’s website)
    • As of today, all committees have filed

• Preliminary Primary Report (reporting period 1/1/18 to 7/27/18) due on 8/1/18
  • 258 committees were expected to file
    • 235 (91%) filed on time
    • 4 (2%) filed late
    • 19 (7%) did not file (names posted on the Commission’s website)
    • As of today, 9 have not filed

EXECUTIVE SESSION
Chair Luke asked for a motion to convene Executive Session to consider and approve Executive Session minutes from the Commission meeting on 7/25/18, and to consult with the Commission’s attorneys on questions and issues pertaining to the Commission’s powers, duties, privileges, immunities, and liabilities regarding the Hawaii Intermediate Court of Appeals decision in McGee v. Campaign Spending Commission and Friends of Calvin Say.

Commissioner Shoda moved to convene in Executive Session for the aforementioned reason(s).  Motion seconded by Commissioner Markley.  Motion carried (4-0) (Vice Chair Goodenow not present).

Public Session reconvened at 1:43 p.m.

Vice Chair Goodenow moved to adjourn the meeting.  Motion seconded by Commissioner Markley.  Motion carried (5-0).  Meeting adjourned at 1:44 p.m.

Next Meeting:
Scheduled for Wednesday, September 12, 2018, at 10 a.m.