Campaign Spending Commission

Campaign Spending Commission
Leiopapa A Kamehameha Building, Room 204
February 13, 2013
10:30 a.m.

Commissioners Present:
Michael Weaver, Tina Pedro Gomes, Eldon Ching, Gregory Shoda
G. William Snipes-Excused

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

Call to Order:
Meeting convened at 10:35 a.m. with Chair Weaver presiding.

Consideration of Minutes:
Commissioner Gomes moved to approve the minutes of January 9, 2013.  Motion seconded by Commissioner Ching.  Motion carried unanimously.

New Business
Proposed Conciliation Agreement 13-59 – In Re the Matter of Friends of Martin Han
Executive Director Izumi-Nitao stated that the proposed conciliation agreement is a result of an investigation that she initiated in December 2012 pursuant to HRS §11-314(7) to determine whether there has been a violation of the Hawaii campaign spending laws.

The proposed conciliation agreement is offered to settle a claim regarding the Respondent’s late filing of the Final Election Period Report.  Respondent has been notified in a letter of the fine that Commission staff computed as a result of their late filed report.   Further, Respondent has been 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 recommended that the Commission make a preliminary determination of probable cause that a violation has been committed, waive further proceedings, and approve the settlement amount as stated in the proposed agreement.

Commissioner Ching moved to make a preliminary determination that probable cause exists that a violation has been committed and accept the settlement terms and amount as stated in the conciliation agreement.  Motion seconded by Commissioner Gomes.  Motion carried unanimously.

Consideration of Adoption of a Policy Concerning Time Limits to Receive Public Testimony at a Meeting
Chair Weaver stated that as discussed at the last meeting, the Commission desires to adopt a policy limiting public testimony to 5 minutes.  A motion is needed to adopt and once adopted the policy would be noted on future agendas.

Commissioner Ching moved to adopt a policy to limit public testimony to 5 minutes.  Motion seconded by Commissioner Gomes.  Motion carried unanimously.

Docket No. 13-20 – In Re the Matter of Edwin Miranda, Michael John, and Friends of Edwin L.P. Miranda
Executive Director reported that a complaint was filed for the failure to file 3 disclosure reports.

Respondent Edwin Miranda was a candidate in the 2012 election for the Office of Hawaiian Affairs trustee position on the Island of Hawaii.  Respondent’s Organizational Report reports Mr. Michael John as the Treasurer for the candidate’s committee, Friends of Edwin L.P. Miranda.  Staff spoke with Respondent John and informed him of the candidate’s non-compliance of campaign finance laws and that a complaint would be filed if the reports were not filed.  Respondent John informed staff that he is not really the treasurer, that he only allowed Respondent Miranda to use his name as treasurer in order to complete the Organizational Report.  Respondent John informed staff that he would try to contact Respondent Miranda and inform him of the violations.  Respondent John was also advised to send a letter informing the Commission that he is not really the treasurer for the committee.  The complaint was sent to the Respondents and they were informed that it was set to be heard at the Commission’s 2/13/13 meeting.

Staff recommended that the Commission make a preliminary determination pursuant to HRS §11-405(a) that probable cause that violations exist, assess a fine of $1,500 (i.e., $500 for each unfiled report) and that the reports be filed within 2 weeks.

To date, staff has not had any further contact with Respondents.  Commissioners discussed the merits of whether case should be referred for prosecution.

Commissioner Gomes moved that the Commission make a preliminary determination that probable cause exists that a violation has been committed and to accept the fine of $1,500 and terms as stated in Docket No. 13-20.  Motion seconded by Commissioner Ching.  Motion carried unanimously.
 

Docket No. 13-21 – In Re the Matter of Rand T. Walls  (Baker Tom)
Executive Director Izumi-Nitao reported that a complaint was filed for the failure to file the Final Election Period and Supplemental disclosure reports.

Respondent Rand T. Walls was a candidate in the 2012 election for the office of Hawaii County Mayor.  Respondent’s Organizational Report reports that he is his own Treasurer.  The phone number listed on his Organizational Report is for the restaurant where he works.  Messages have been left, but he has not returned calls.  The complaint was sent to the Respondent and he was informed that it was set to be heard at the Commission’s 2/13/13 meeting.

Staff recommended that the Commission make a preliminary determination pursuant to HRS §11-405(a) that probable cause that violations exist and to assess a fine of $1,000 (i.e., $500 for each unfiled report) and that the reports be filed within 2 weeks.

Commissioner Ching moved that the Commission make a preliminary determination that probable cause exist that violations have been committed and to accept the fine of $1,000 and terms as stated in Docket No. 13-21.  Motion seconded by Commission Gomes.  Motion carried unanimously.

Docket No. 13-23 – In Re the Matter of Glenn G. Au
General Counsel Kam reported that a complaint was filed against Respondent Glenn Au for Respondent’s failure to file the Preliminary General Report, Final Election Period Report, and Supplemental Report.

Respondent Au was a candidate in the 2012 election for the Office of Hawaiian Affairs trustee position on the Island of Maui.  Respondent has also not filed his Organizational Report which was due on 9/10/12.  Executive Director Izumi-Nitao filed an administrative complaint against Respondent for his failure to file an Organizational Report.  On 10/10/12, the Commission voted to issue a Preliminary Determination of Probable Cause against Respondent and assessed a $100 fine.  The complaint for failure to file the disclosure reports was sent to the Respondent and he was informed that it was set to be heard at the Commission’s 2/13/13 meeting.

Staff recommended that the Commission make a preliminary determination that pursuant to HRS §11-405(a) probable cause exists to believe that violations have been committed and assess a fine of $1,500 (i.e., $500 for each report not filed) and that the reports be filed within 2 weeks.

Commissioners discussed process for when a matter is filed with the courts.  General Counsel Kam stated that staff has only filed 4 Applications with the courts and the 4 cases were resolved once the court document was served.

Commissioner Shoda moved that the Commission make a preliminary determination that probable cause exist that violations have been committed and to accept the fine of $1,500 and terms as stated in Docket 13-23.  Motion seconded by Commissioner Gomes.  Motion carried unanimously.

Docket No. 13-24 – In Re the Matter of Bart Mulvihill, Janet Grantham, and Friends and Supporters of Bart Mulvihill State Senate District 6
General Counsel Kam reported that a complaint was filed against Respondents for Respondents’ failure to file the Preliminary General Report, Final Election Period Report, and Supplemental Report.

Respondent Bart Mulvihill was a candidate in the 2012 election for the office of State Senate, District 6.  Respondent’s Organizational Report reports the Friends and Supporters of Bart Mulvihill State Senate District 6 as his candidate committee, and Janet Grantham as the treasurer of the candidate committee.  Executive Director Izumi-Nitao filed an administrative complaint against Respondents for the non-compliance of Conciliation Agreement No. 13-15 for the untimely filing of the Organizational Report, 1st Preliminary Primary Report, and the 2^nd Preliminary Primary Report.  On 11/1/12, the Commission voted to issue a Preliminary Determination of Probable Cause against Respondents and assessed a $550 fine.

Staff recommended that the Commission make a preliminary determination that probable cause exists that violations have been committed and assess a fine of $1,500 (i.e., $500 for each unfiled report) and that the reports be filed within 2 weeks.

Executive Director Izumi-Nitao reported that staff has spoken to Respondent Mulvilhill on several occasions, but have not been able to get him to file the disclosure reports.

Commissioner Gomes moved that the Commission make a preliminary determination that probable cause exist that violations have been committed and to accept the fine of $1,500 and terms as stated in Docket 13-24.  Motion seconded by Commissioner Shoda.  Motion carried unanimously.

Docket No. 13-25 – In Re the Matter of Erin McLaughlin and Friends of Erin McLaughlin
General Counsel Kam reported that a complaint was filed against Respondents Erin McLaughlin and Friends of Erin McLaughlin for Respondents failure to file the Final Election Period Report and Supplemental Report.

Respondent McLaughlin was a candidate in the 2012 election for the Maui County Council.  Respondent’s Organizational Report reports the Friends of Erin McLaughlin as his candidate committee.  On 10/18/12, Respondent McLaughlin informed staff that he would not be complying with Conciliation Agreement No. 13-03 (concerning the late filing of the 1st Preliminary Primary Report) because he lost the primary election.  Executive Director Izumi-Nitao filed an administrative complaint against Respondents for the Respondent’s non-compliance of Conciliation Agreement Order.  On 11/1/12, the Commission voted to issue a Preliminary Determination of Probable Cause against Respondents and assessed a fine of $200.

Staff recommended that the Commission make a preliminary determination that probable cause exists that violation have been committed and assess a fine of $1,000 (i.e., $500 for each unfiled report) and that the reports be filed within 2 weeks.

Commissioner Ching moved to refer Docket No. 13-25 for prosecution.  Motion seconded by Chair Weaver.  Motion carried.  (aye – Weaver, Ching, Gomes / no – Shoda)

Docket No. 13-26 – In Re the Matter of Adam Reeder, Melissa Reeder, and Friends of Adam Reeder
General Counsel Kam reported that a complaint was filed against Respondents for failure to file the Final Election Period Report and Supplemental Report.

Respondent Reeder was a candidate in the 2012 election for the State House of Representative, District 41 seat.  Respondent’s Organizational Report reports that the Friends of Adam Reeder as his candidate committee and Melissa Reeder as the treasurer of the candidate committee.  On 11/13/12, Executive Director Izumi-Nitao filed an administrative complaint against Respondents for their non-compliance of Conciliation Agreement No. 13-13, for the untimely filing of the 2nd Preliminary Primary Repor and Final Primary Report.  On 12/12/12, the Commission voted to issue a Preliminary Determination of Probable Cause and assessed a fine of $500, which Respondents paid on 1/16/13.

Staff recommended that the Commission make a preliminary determination that probable cause exists that violations have been committed and assess a fine of $1,000 (i.e., $500 for each unfiled report) and that the reports be filed within 2 weeks.

Commissioner Gomes moved that the Commission make a preliminary determination that probable cause exist that violations have been committed and to accept the fine of $1,000 and terms as stated in Docket 13-26.  Motion seconded by Commissioner Ching.  Motion carried unanimously.

Old Business:
Draft Advisory Opinion 13-02 – Government Contractor’s Association
Glenn Nohara and Gladys Hagemann present for the Government Contractor’s Association

General Counsel Kam stated that the draft advisory opinion is in response to the Government Contractor’s Association’s request for an advisory opinion on the formation of a noncandidate committee and potential implications of HRS §11-355.  After further review by the Attorney General’s office, the following changes were suggested:

Page 1, Question 2 – Add that sole proprietors who are government contractors cannot make contributions as GCA members.

Page 2, Question 3 – Add that dues received from state and county contractors must be segregated and that those funds cannot be used for contributions to a candidate or noncandidate committee.

Commissioner Ching moved to approve draft advisory opinion.  Motion seconded by Commissioner Gomes.  Motion carried unanimously.

2013 Legislation
General Counsel Kam reported on the following legislation:

HB 201and SB 555 are the Commission’s bills;

SB 30 raises the expenditure limit for prosecuting attorney candidates and requires that affidavits to voluntarily limit campaign expenditure limits be file no later than the time of filing nomination papers;

SB 31 requires noncandidate committees to report contributions received and made and amends the January deadline for filing of supplemental reports;

SB 381 changes the formula for comprehensive public funding to average the amount of money used by winning candidates in the last two election cycles for all county district races (see, companion HB 360);

HB 1147 requires noncandidate committees to identify certain top contributors for advertisements, clarifies that persons who fail to file is subject to monitoring and penalties, amends reporting, and repeals HRS §11-332;

HB 1481 exempts the offices of governor and lieutenant governor from the partial public financing law and changes the law on qualifying contributions, voluntary expenditure limits and maximum amount available public funds for candidates for the office of state senate or state representative, and appropriates funds to the campaign spending commission to prepare for the financing of election in 2014; and

HB 443 prohibits a lobbyist from making contributions to member of the legislature, the governor, and the lieutenant governor while the legislature is in session.

Report from Executive Director:
Executive Director Izumi-Nitao reported on the following items:

Report on Compliance of Filing Timely Disclosure Reports
Supplemental Report due on 1/31/13:  To date – Candidate Committees – 14 non-filers, Noncandidate Committees – 7 non-filers

Report on 2012 Election Summary for IE Committees
Associate Director Baldomero submitted for Commissioners’ review a report on the 2012 campaign activity of 16 registered independent committees (Super PACs).  The report is posted on the Commission’s website and has been presented to the Senate Majority Caucus.  There is interest at the legislature regarding Super PACs.

Commissioner Gomes moved to convene executive session to consult with attorney.  Motion seconded by Commissioner Ching.  Motion carried unanimously.

Public Session reconvened at 11:48 a.m.

Old Business:
Consideration and Discussion of Strategic Planning
Executive Director Izumi-Nitao introduced guests Director Elizabeth Kent and Research Analyst Dr. JoanMarie Yamasaki from the Center for Alternative Dispute Resolution, State of Hawaii, to facilitate a discussion with the Commission in updating the Commission’s strategic plan.  Director Kent received approval from her advisory board to assist the Commission at no cost to the Commission.  Executive Director Izumi-Nitao met with them on 1/22/13 to discuss the project.

Director Kent led the discussion on what level of Commissioner engagement with the strategic planning was sought, whether there should be a new plan or the current plan tweaked, whether goals and action items are still valid, whether a vision statement is needed, and the duration of the plan.

Consensus of the Commissioners agreed that the current plan was still valid, that it should be tweaked, and that any changes should be finalized by May 2013.  They also agreed that the 6 goals are still valid, that the action items needed to be reviewed and changed, that a vision statement was not necessary, and that plan should be for 5 years (i.e., 2013-2018).  They also decided that staff would draft the strategic plan with suggested modifications to the action items from both staff and Commissioners, and that whatever is suggested will be included in the draft.

Commissioners agreed to the following timeline:

– Suggested modifications to the action items to be sent to Executive Director Izumi-Nitao by the close of business on 2/22/13;
– Draft of strategic plan to be sent to Commissioners, staff, Director Kent, and Research Analyst Yamasaki by Executive Director Izumi-Nitao by the close of business on 3/1/13;

– Discussion of draft of strategic plan at the 3/13/13 Commission meeting including the need for an additional meeting – agreement to set aside 3 hours for discussion;

– Finalize the strategic plan by May 2013.

Ground rules were also discussed such as “once a decision is made, it won’t be reopened” and “no one dominates and everyone participates in the discussion.”

Next Meeting:
Scheduled for Wednesday, March 13, 2013 at 10:30 a.m.

Commissioner Ching moved to adjourn meeting.  Motion seconded by Commissioner Gomes.  Motion carried unanimously.  Meeting adjourned at 12:35 p.m.