Minutes for February 20, 2019 Meeting

Posted in Minutes

Campaign Spending Commission
Leiopapa A Kamehameha Building, Room 204
February 20, 2019
9:00 a.m.

Commissioners Present
Bryan Luke, Gregory Shoda, Stanley Lum, Maryellen Markley, Ph.D.

Staff Present
Kristin Izumi-Nitao, Tony Baldomero, Yayoi Tumamao

Excused
Kenneth Goodenow, Gary Kam, Deputy Attorney General Valri Kunimoto

Call to Order
Chair Luke called the meeting to order at 10 a.m.

Consideration and Approval of Minutes of Meeting on 1/9/19
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 1/9/19 meeting.  Motion seconded by Commissioner Shoda.  Motion carried (4-0).

New Business
Executive Director Izumi-Nitao stated that the fifteen (15) Conciliation Agreements on the agenda 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. 19-138 – In Re the Matter of Gayla Ann M. Haliniak-Lloyd
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Final Election Period Report and requests that they assess a reduced fine from $200 to $66.67.  Chair Luke asked if there were any comments or questions.

Commissioner Markley moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Shoda.  Motion carried (4-0).

*Proposed Conciliation Agreement No. 19-139 – In Re the Matter of Friends of Ernest Z. Kanamu Balinbin
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Final Election Period Report and requests that they assess a reduced fine from $200 to $66.67.  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 Lum.  Motion carried (4-0).

*Proposed Conciliation Agreement No. 19-140 – In Re the Matter of Shirley R. Simbre-Medeiros
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Final Election Period Report and requests that they assess a reduced fine from $200 to $66.67.  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 Lum.  Motion carried (4-0).

*Proposed Conciliation Agreement No. 19-141 – In Re the Matter of Leona Mapuana Kalima
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Final Election Period Report and requests that they assess a reduced fine from $200 to $66.67.  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).

*Proposed Conciliation Agreement No. 19-142 – In Re the Matter of Good Guys for Tanabe
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Final Election Period Report and requests that they assess a reduced fine from $200 to $66.67.  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 Lum.  Motion carried (4-0).

*Proposed Conciliation Agreement No. 19-143 – In Re the Matter of Vote Shishido
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Final Election Period Report and requests that they assess a reduced fine from $200 to $66.67.  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).

*Proposed Conciliation Agreement No. 19-144 – In Re the Matter of Selina T. Blackwell
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Final Election Period Report and requests that they assess a reduced fine from $200 to $66.67.  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 Lum.  Motion carried (4-0).

*Proposed Conciliation Agreement No. 19-145 – 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 Final Election Period Report and requests that they assess a reduced fine from $200 to $100.  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).

*Proposed Conciliation Agreement No. 19-146 – In Re the Matter of Theodore Alfred Daligdig III
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Final Election Period Report and requests that they assess a reduced fine from $200 to $66.67.  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 Lum.  Motion carried (4-0).

*Proposed Conciliation Agreement No. 19-147 – In Re the Matter of Friends of Elaine Queenie Daligdig
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Final Election Period Report and requests that they assess a reduced fine from $200 to $66.67.  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 Lum.  Motion carried (4-0).

*Proposed Conciliation Agreement No. 19-148 – In Re the Matter of COPE Health Solutions Committee
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the 2nd Preliminary General Report and the Final Election Period Report and requests that they assess a reduced fine from $1,200 to $400.  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).

*Proposed Conciliation Agreement No. 19-149 – In Re the Matter of Emergent Medical Associates Committee
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the 2nd Preliminary General Report and the Final Election Period Report 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).

*Proposed Conciliation Agreement No. 19-150 – In Re the Matter of Lanai Emergency Medical Associates Committee
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the 2nd Preliminary General Report and the Final Election Period Report 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 Shoda.  Motion carried (4-0).

*Proposed Conciliation Agreement No. 19-151 – In Re the Matter of Maui Memorial Emergency Medical Associates Committee
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the 2nd Preliminary General Report and the Final Election Period Report and requests that they assess a reduced fine from $1,200 to $400.  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).

*Proposed Conciliation Agreement No. 19-152 – In Re the Matter of National Rifle Association Poltical Victory Fund
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Supplemental Report and requests that they assess a reduced fine from $200 to $66.67.  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 Lum.  Motion carried (4-0).

*Docket No. 19-28 – In Re the Matter of Thomas Belekanich and Friends of Tom Belekanich
Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Thomas Belekanich and Friends of Tom Belekanich for the late filing of the Final Election Period Report.

Respondent Belekanich filed nomination papers to be a 2018 candidate for the State House of Representatives.  In the Organizational Report filed with the Commission, Respondent Belekanich is listed as the candidate and treasurer of the candidate committee called Friends of Tom Belekanich.

Pursuant to HRS §11-334(a)(3), Respondents were required to file the Final Election Period Report for the period covering 1/1/18 through 11/6/18 by 11:59 p.m. Hawaii standard time on 12/6/18.  Respondents did not file this report by the deadline.

On 12/7/18, Commission staff notified Respondents via first class mail of their failure to file this report and that a fine would be imposed.  On 12/21/18, Respondents filed the report.

On 12/24/18, Commission staff notified Respondents via first class mail that a fine of $200 would be assessed for the late filing of the report.  Respondents did not pay the fine.

On 1/10/19, Commission staff spoke with Respondent Belekanich about the fine payment and was told that he would send in the payment.  On 1/16/19, Commission staff spoke with Respondent Belekanich and was told that he put a check in the mail on 1/15/19.  On 1/23/19, Commission staff called Respondent Belekanich and informed him that his payment was never received and that a complaint would be filed.

On 1/28/19, Commission staff sent Respondents a copy of the complaint and set the matter on the 2/20/19 Commission agenda.

Executive Director Izumi-Nitao recommended that the Commission make a preliminary determination, pursuant to HRS §11-405(a), that probable cause exists to believe that a violation of the campaign spending law has been committed, assess an administrative fine of $200, order that the fine be paid from the candidate’s personal funds, if the candidate committee’s funds are insufficient to pay the fine, or if the Commission so order that the fine, or any portion, be paid from the candidate’s funds, and order that any and all administrative penalties be deposited into the general fund pursuant to HRS §11-340(g) within two (2) weeks of receipt of this order.

Commissioner Shoda moved to make a preliminary determination that probable cause exists that a violation had been committed and to accept the fine and terms stated in the complaint.  Motion seconded by Commissioner Lum.  Motion carried (4-0).

Old Business
*Consideration, Discussion, and/or Update of Commission Legislation and Other Campaign Finance Related Bills/Resolutions for the 2019 Legislative Session
Executive Director Izumi-Nitao and Associate Director Baldomero informed the Commission of the status of the Commission’s bills, other campaign finance related bills, and budget bills for the 2019 legislative session.

*Commissioner Markley left the meeting at 10:45 a.m.

Executive Director Izumi-Nitao and Associate Director Baldomero informed the Commission that they intend to provide updates at the monthly meetings.

*Docket No. 15-04 – In Re the Matter of Henry Kahula, Jr., Darnelle Kahula, and Henry Kahula for Council
Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Henry Kahula, Jr., Darnelle Kahula, and Henry Kahula for Council for the failure to file the 1st Preliminary Primary Report (January 1, 2014 through June 30, 2014) in the 2014 election.  The Commission’s order dated July 31, 2014 was referred to the Attorney General’s Office – Civil Recoveries Division due to Respondents’ noncompliance (i.e., file the report and pay $500 administrative fine).  In a letter dated 2/12/19 from the Attorney General’s Office, the Commission was informed that the matter was being closed due to Respondent Kahula passing away on 2/11/17 and Respondent Darnelle Kahula having moved to the mainland.  Executive Director Izumi-Nitao recommended that no further action be taken.

Chair Luke moved to take no further action on the complaint.  Motion seconded by Commissioner Shoda.  Motion carried (3-0).

*Docket No. 15-24 – In Re the Matter of Henry Kahula, Jr., Darnelle Kahula, and Henry Kahula for Council
Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Henry Kahula, Jr., Darnelle Kahula, and Henry Kahula for Council for the failure to file the 2nd Preliminary Primary Report (July 1, 2014 through July 25, 2014) and the Final Primary Report (July 26, 2014 through August 9, 2014) in the 2014 election.  The Commission’s order dated September 10, 2014 was referred to the Attorney General’s Office – Civil Recoveries Division due to Respondents’ noncompliance (i.e., file the reports and pay $1,000 administrative fine).  In a letter dated 2/12/19 from the Attorney General’s Office, the Commission was informed that the matter was being closed due to Respondent Kahula passing away on 2/11/17 and Respondent Darnelle Kahula having moved to the mainland.  Executive Director Izumi-Nitao recommended that no further action be taken.

Chair Luke moved to take no further action on the complaint.  Motion seconded by Commissioner Shoda.  Motion carried (3-0).

*Docket No. 15-70 – In Re the Matter of Henry Kahula, Jr., Darnelle Kahula, and Henry Kahula for Council
Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Henry Kahula, Jr., Darnelle Kahula, and Henry Kahula for Council for the failure to file the Final Election Period Report (August 10, 2014 through November 4, 2014) in the 2014 election.  The Commission’s order dated January 14, 2015 was referred to the Attorney General’s Office – Civil Recoveries Division due to Respondents’ noncompliance (i.e., file the report and pay $500 administrative fine).  In a letter dated 2/12/19 from the Attorney General’s Office, the Commission was informed that the matter was being closed due to Respondent Kahula passing away on 2/11/17 and Respondent Darnelle Kahula having moved to the mainland.  Executive Director Izumi-Nitao recommended that no further action be taken.

Chair Luke moved to take no further action on the complaint.  Motion seconded by Commissioner Shoda.  Motion carried (3-0).

*Docket No. 15-104 – In Re the Matter of Henry Kahula, Jr., Darnelle Kahula, and Henry Kahula for Council
Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Henry Kahula, Jr., Darnelle Kahula, and Henry Kahula for Council for the failure to file the Supplemental Report (November 5, 2014 through December 31, 2014).  The Commission’s order dated March 11, 2015 was referred to the Attorney General’s Office – Civil Recoveries Division due to Respondents’ noncompliance (i.e., file the report and pay $750 administrative fine).  In a letter dated 2/12/19 from the Attorney General’s Office, the Commission was informed that the matter was being closed due to Respondent Kahula passing away on 2/11/17 and Respondent Darnelle Kahula having moved to the mainland.  Executive Director Izumi-Nitao recommended that no further action be taken.

Chair Luke moved to take no further action on the complaint.  Motion seconded by Commissioner Shoda.  Motion carried (3-0).

*Docket No. 16-05 – In Re the Matter of Henry Kahula, Jr., Darnelle Kahula, and Henry Kahula for Council
Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Henry Kahula, Jr., Darnelle Kahula, and Henry Kahula for Council for the failure to file the Supplemental Report (January 1, 2015 through June 30, 2015).  The Commission’s order dated September 10, 2015 was referred to the Attorney General’s Office – Civil Recoveries Division due to Respondents’ noncompliance (i.e., file the report and pay $1,000 administrative fine).  In a letter dated 2/12/19 from the Attorney General’s Office, the Commission was informed that the matter was being closed due to Respondent Kahula passing away on 2/11/17 and Respondent Darnelle Kahula having moved to the mainland.  Executive Director Izumi-Nitao recommended that no further action be taken.

Chair Luke moved to take no further action on the complaint.  Motion seconded by Commissioner Shoda.  Motion carried (3-0).

*Docket No. 16-24 – In Re the Matter of Henry Kahula, Jr., Darnelle Kahula, and Henry Kahula for Council
Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Henry Kahula, Jr., Darnelle Kahula, and Henry Kahula for Council for the failure to file the Supplemental Report (July 1, 2015 through December 31, 2015).  The Commission’s order dated March 9, 2016 was referred to the Attorney General’s Office – Civil Recoveries Division due to Respondents’ noncompliance (i.e., file the report and pay $1,000 administrative fine).  In a letter dated 2/12/19 from the Attorney General’s Office, the Commission was informed that the matter was being closed due to Respondent Kahula passing away on 2/11/17 and Respondent Darnelle Kahula having moved to the mainland.  Executive Director Izumi-Nitao recommended that no further action be taken.

Chair Luke moved to take no further action on the complaint.  Motion seconded by Commissioner Shoda. Motion carried (3-0).

Chair Luke stated a concern for abuse if a committee member moves to the mainland, absconds with campaign funds which were never reported, and the State is unable to pursue enforcement.  Executive Director Izumi-Nitao reported that the Attorney General’s Office – Civil Recoveries Division has various methods of collection.  Discussion ensued to invite the Attorney General’s Office – Civil Recoveries Division to the next Commission meeting to discuss if there are other viable options for the Commission to obtain enforcement and deter noncompliance of campaign finance laws.

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

  • Supplemental Report due on 1/31/19
    • Candidate Committees (who did not run in the 2018 election)
      • 138 candidates were expected to file
      • 105 (76%) filed on time
      • 1 (1%) filed late
      • 32 (23%) did not file
      • To date, 6 have not filed
    • Candidate Committees (who ran in the 2018 election)
      • 255 candidates were expected to file
      • 216 (85%) filed on time
      • 3 (1%) filed late
      • 36 (14%) did not file
      • To date, 8 have not filed
    • Noncandidate Committees
      • 254 were expected to file
      • 235 (93%) filed on time
      • 2 (1%) filed late
      • 17 (7%) did not file
      • To date, 6 (3%) have not filed (4 have Attorney General referrals)
  • Final Election Period Report → 1 candidate committee (referred to the Attorney General’s Office) & 5 noncandidate committees have not filed (4 have Attorney General referrals)
  • Preliminary General Report → 1 candidate committee has not filed
  • 2nd Preliminary General Report → 5 noncandidate committees have not filed (4 have Attorney General referrals)
  • 1st Preliminary General Report → 4 noncandidate committees have not filed (4 have Attorney General referrals)
  • Final Primary Report → 4 noncandidate committees have not filed (4 have Attorney General referrals)
  • Supplemental Report → 4 candidate committees have not filed (4 have Attorney General referrals)
  • Preliminary Primary Report → 4 noncandidate committees have not filed (4 have Attorney General referrals)

The next report due will be the Preliminary Special Report (reporting period 1/1/19 to 3/29/19) due on 4/3/19 for two candidate committees (Trevor Ozawa and Tommy Waters) and all noncandidate committees that have not indicated to the Commission that they will not be exceeding $1,000 aggregate in contributions and expenditures during the 2019 election period that runs from November 7, 2018 through April 13, 2019.

With respect to updates on the Commission’s referrals to the Attorney General’s Office – Civil Recoveries Division, Executive Director Izumi-Nitao reported the following:

  • Creighton Higa → payment plan
  • Raymond Banda → tax intercept
  • Junior Mataafa → trying to locate him
  • Jason Eno → trying to locate him
  • Alika Atay → unknown
  • Debra Kekaulua → unknown

With respect to compliance on prior matters before the Commission, Executive Director Izumi-Nitao reported the following:

  • Eric Ching – Pled to criminal charges and received a deferral and fine
  • Alan Arakawa – Respondent has signed the settlement agreement, complied with the terms, and terminated his committee registration
  • Kaniela Ing – Respondent has not made his payments
  • Trinette Furtado – Respondent has requested a HRS chapter 91 contested case hearing. The Commission expressed interest in hiring a hearings officer. Commission staff will inquire with the Respondent again on what she did with the $1,900 in question as she has not provided any documentation explaining what she did with the money.

Report on 2019 Special Election – Honolulu County Council District 4
Executive Director Izumi-Nitao reported that a memorandum dated 2/6/19 was sent to the two candidate committees running in the Special Election (i.e., Trevor Ozawa and Tommy Waters) and all noncandidate committees to provide guidance in the areas of committee contribution limits, loans, reporting schedules, and electioneering communications.

Executive Director Izumi-Nitao stated that this election is unprecedented and acknowledged the efforts of Associate Director Baldomero and the Office of Enterprise Technology in modifying the electronic filing systems, forms, and website to accommodate the new election period.

EXECUTIVE SESSION
Chair Luke asked for a motion to convene Executive Session to consider and approve Executive Session minutes from the Commission meeting on 1/9/19.

Commissioner Shoda moved to convene in Executive Session for the aforementioned reason(s).  Motion seconded by Commissioner Lum.  Motion carried (3-0).

Public Session reconvened at 11:51 a.m.

Commissioner Shoda moved to adjourn the meeting.  Motion seconded by Commissioner Lum.  Motion carried (3-0).  Meeting adjourned at 11:52 a.m.

Next Meeting:
Scheduled for Wednesday, March 13, 2019 at 10 a.m.