Campaign Spending Commission

Campaign Spending Commission Meeting
Leiopapa A Kamehameha Building, Room 204
February 9, 2011
10:30 a.m.

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

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

Call to Order:
Meeting convened at 10:30 a.m. with Chair Kuramoto presiding.

Consideration of Minutes:
Under “New Business – Legislation Update,” Chair Kuramoto asked that the minutes reflect that the Commission’s Executive Director met with the legislative parties.

Commissioner Gabrio moved to approve the minutes of the January 12, 2011 as modified.  Motion seconded by Vice Chair Olbrich.  Motion carried unanimously.

New Business:
Docket No. 10-06 – Democratic Party of Hawaii v. Republican Governors Association
Present at meeting – Tony Gill, representing the Democratic Party of Hawaii, Dante Carpenter, Director of the Democratic Party, and Terry Thomason, representing the Friends of Duke Aiona committee.

Executive Director Izumi-Nitao informed commissioners that the complaint filed by The Democratic Party of Hawaii against the Republican Governors Association and the Duke Aiona campaign committee alleges excess contributions, non-resident contributions, failure to report, and improper registration.  Recommendation is that the matter be further investigated.

Chair Kuramoto commented that any comments regarding the complaint should be held until the staff presents their investigation.  Mr. Terry Thomason, representing the Duke Aiona campaign, agreed that the matter should be further investigated.  Mr. Tony Gill, representing the Democratic Party, agreed that the matter should be further investigated, and that the commission needs to take some kind of action because whatever is decided will effect future elections.

Vice-Chair Olbrich moved that the Docket 10-06 be further investigated.  Motion seconded by Commissioner Weaver.  Motion carried unanimously.

Proposed Conciliation Agreement 11-01 – In Re the Matter of Friends of Mo Radke
Proposed Conciliation Agreement is offered to settle a claim regarding the late filing of the Preliminary General Report in violation of Hawaii Revised Statutes (“HRS”) sections 11-334 and 11-340.

Respondent Friends of Mo Radke (“Respondent”) waives notice of violation of the campaign spending law and the opportunity to explain or otherwise respond to the notice of violation in a meeting conducted pursuant to HRS chapter 92.

Respondent is the candidate committee for Maurice Radke, a candidate for the State House of Representatives, a two-year office.  The Preliminary General Report was due no later than 11:59 p.m. on October 25, 2010.  Respondent’s report was filed on October 27, 2010. Respondent did not knowingly, intentionally, or recklessly violate the law. Executive Director Izumi-Nitao recommends the Commission make a preliminary determination that probable cause exists that a violation has been committed.

Commissioner Gabrio moved to find that probable cause exists that Respondent committed a violation.  Motion seconded by Commissioner Weaver.  Motion carried unanimously.

Respondent waives findings of fact, conclusions of law and requests a contested case hearing and waives a contested case hearing.  Respondent agrees to a fine of $200.  Executive Director Izumi-Nitao recommends acceptance of proposed Conciliation Agreement 11-01 with an assessed fine of $200.

Commissioner Gabrio moved to accept proposed Conciliation Agreement 11-01.  Motion seconded by Commissioner Weaver.  Motion carried unanimously.

Proposed Conciliation Agreement 11-02 – In Re the Matter of Friends of Shaun Kawakami
Proposed Conciliation Agreement is offered to settle a claim regarding the late filing of the Preliminary General Report in violation of HRS sections 11-334 and 11-340.

Respondent Friends of Shaun Kawakami (“Respondent”) waives notice of violation and the opportunity to explain or respond to the notice of violation in a meeting conducted pursuant to HRS chapter 92.

Respondent is the candidate committee for Shaun Kawakami, a candidate for the State House of Representatives, District 38, a two-year office.  The Preliminary General report was due no later than 11:59 p.m. on October 25, 2010.  Respondent’s report was filed on October 27, 2010. Respondent did not knowingly, intentionally, or recklessly violate the law.   Executive Director Izumi-Nitao recommends the Commission make a preliminary determination that probable cause exists that a violation has been committed.

Commissioner Gabrio moved to make a preliminary determination that probable cause of a violation exists.  Motion seconded by Commissioner Robb.  Motion carried unanimously.

Respondent waives findings of fact and conclusions of law and requests a contested case hearing and waives a contested case hearing.  Respondent agrees to a fine of $200.  Executive Director Izumi-Nitao recommends acceptance of proposed Conciliation Agreement 11-02 with an assessed fine of $200.

Commissioner Weaver moved to accept proposed Conciliation Agreement 11-02.  Motion seconded by Commissioner Robb.  Motion carried unanimously.

Proposed Conciliation Agreement 11-03 – In Re the Matter of Thomas W. Pollard
Proposed Conciliation Agreement is offered to settle a claim regarding the late filing of the Preliminary General report in violation of HRS sections 11-334 and 11-340.

Respondent Thomas W. Pollard (“Respondent”) waives notice of violation and the opportunity to explain or respond to the notice of violation in a meeting conducted pursuant to HRS chapter 92.

Respondent was a candidate for Governor, a four-year statewide office.  The Preliminary General report was due no later than 11:59 p.m. on October 25, 2010.  Respondent’s report was filed on October 28, 2010 with no contributions and expenditures for the report period.  Respondent did not knowingly, intentionally, or recklessly violate the law.  Executive Director Izumi-Nitao recommends that Commission make a preliminary determination that probable cause exists that a violation has been committed.

Commissioner Robb moved to make a preliminary determination that probable cause of a violation exists.  Motion seconded by Commissioner Weaver.  Motion carried unanimously.

Respondent waives findings of fact and conclusions of law and requests a contested case hearing and waives a contested case hearing.  Respondent agrees to a fine of $100.  Executive Director Izumi-Nitao recommends acceptance of proposed Conciliation Agreement 11-03 with an assessed fine of $100.

Vice Chair Olbrich asked why the difference in the amount assessed between this agreement the first two agreements.  Executive Director Izumi-Nitao explained that the lower amount is because Respondent Pollard reported no contributions and expenditures for the period.

Commissioner Gabrio moved to accept proposed Conciliation Agreement 11-03.  Motion seconded by Commissioner Robb.  Motion carried unanimously.

Proposed Conciliation Agreement 11-04 – In Re the Matter of Friends of Lisa Gapero 2010
Proposed Conciliation Agreement is offered to settle a claim regarding the late filing of the Preliminary General report in violation of HRS sections 11-334 and 11-340.

Respondent Friends of Lisa Gapero 2010 (“Respondent”) waives notice of violation and the opportunity to explain or respond to the notice of violation in a meeting conducted pursuant to HRS chapter 92.

Respondent is the candidate committee for Elisabeth Gapero, a candidate for the Maui Council County, District 8, a two-year office.  The Preliminary General report was due no later than 11:59 p.m. on October 25, 2010.  Respondent’s report was filed on October 27, 2010. Respondent did not knowingly, intentionally, or recklessly violate the law.   Executive Director Izumi-Nitao recommends the Commission make a preliminary determination that probable cause exists that a violation has been committed.

Commissioner Robb moved to make a preliminary determination that probable cause of a violation exists.  Motion seconded by Commissioner Weaver.  Motion carried unanimously.

Respondent waives findings of fact and conclusions of law and requests a contested case hearing and waives a contested case hearing.  Respondent agrees to a fine of $200.  Executive Director Izumi-Nitao recommends acceptance of proposed Conciliation Agreement 11-04 with an assessed fine of $200.

Commissioner Robb moved to accept proposed Conciliation Agreement 11-04.  Motion seconded by Commissioner Gabrio.  Motion carried unanimously.

Proposed Conciliation Agreement 11-05 – In Re the Matter of Chun Wah Kam
The proposed conciliation agreement is offered to settle a claim of an excess contribution from Respondent Chun Wah Kam (“Respondent”) to the Friends of Brian Schatz (“Friends”) campaign committee in violation of HRS section 11-357(a)(3).

Respondent waives notice of violation of the campaign spending law and the opportunity to explain or otherwise respond to the notice of violation in a meeting conducted pursuant to HRS chapter 92.

Friends filed disclosure reports receiving $7,000 from the Respondent.  On October 28, 2010, Friends self-reported receiving the $1,000 excess contribution which was returned to Respondent but not within the 30 days required by law. Respondent did not knowingly, intentionally, or recklessly violate the law.  Executive Director Izumi-Nitao recommends the Commission make a preliminary determination that probable cause exists that a violation has been committed.

Commissioner Weaver moved to find that probable cause exists that Respondnet committed a violation.  Motion seconded by Vice-Chair Olbrich.  Motion carried. (Commissioner Gabrio recused)

Respondent waives findings of fact and conclusions of law and requests a contested case haring and waives a contested case hearing.  Respondent agrees to a fine of $260.  Executive Director Izumi-Nitao recommends acceptance of proposed Conciliation Agreement 11-05 with an assessed fine of $260.

Vice-Chair Olbrich asked whether the $1,000 excess will be returned.  Associate Director reported that Friends returned the $1,000 to the Respondent and will escheat $1,000 to the Hawaii election campaign fund.

Commissioner Robb moved to accept proposed Conciliation Agreement 11-05.  Motion seconded by Commissioner Weaver.  Motion carried. (Commissioner Gabrio recused)

Legislation Update
Executive Director Izumi-Nitao, reported that bills relating to campaign financing have been categorized bill into 3 categories – #1 CSC bills and bills that directly impact the to campaign financing law, #2 bills that may impact campaign financing, and #3 bills that are of interest.

Brief summary of category 1 bills:

-SB 68 – Applies campaign contributions and expenditures law to candidates to the neighborhood boards
-SB 73 – Prohibits person soliciting a state contract or applicants for state grants or subsidies awarded under chapter 42 from making campaign contributions and also includes subcontractors to a state contract in the prohibition of campaign contributions to a political party, committee or candidate.
-SB 432 – Short form
-SB 988 – Commission bill (CSC-03)
-SB 989 – Commission bill (CSC-02)
-SB 990 – Commission bill (CSC-01)
-SB 1043 – Housekeeping amendment to the elections law governing disbursements for electioneering communications
-SB 1044 – Housekeeping amendment to the purpose section of the campaign finance law
-SB 1114 – Adds new requirements regarding noncandidate committee registration, requires late expenditures report under certain circumstances, and filing of additional disclosure reports.  Also repeals reporting by corporations.
-HB 257 – Commission bill (CSC-01) – Hearing held on 2/1/11, passed with amendments.
-HB 258 – Commission bill (CSC-02) – Hearing held on 2/1/11, was amended and moving forward.
-HB 259 – Commission bill (CSC-03) – Hearing held on 2/1/11, measure was deferred.
-HB 443 – Prohibits a person submitting an offer for a government contract solicitation from making campaign contributions. Includes subcontractors to a government contract in the prohibition of campaign contributions.
-HB 469 – Applies the election campaign contributions and expenditures law to candidates for the neighborhood boards.
-HB 872 – Adds new requirements regarding noncandidate committee registration, requires late expenditures report under certain circumstances, and filing of additional disclosure reports. Also repeals reporting by corporations.  Hearing held on 2/1/11, deferred for decision making until 2/15/11.
-HB 1113 – Prohibits person soliciting a state contract or applicants for or recipients of state grants or subsidies awarded under chapter 42 from making campaign contributions and also includes subcontractors to a state contract in the prohibition of campaign contributions to a political party, committee or candidate.
-HB 1575 –  Amends Hawaii comprehensive public funding project to raise program amount, to repeal the requirement of a minimum fund amount, to extend the period for signature collection, and clarity provisions of matching funds.

Corporate Reporting System
The Corporate Reporting System will be a streamlined version of the Noncandidate Filing System and the report will be similar to a Late Contribution report filed by a candidate and noncandidate committee.  Like the candidate and noncandidate filing system corporations will need to submit the Electronic Filing Form to obtain the user login and password.  For administrative purposes, the form will ask for the name, phone number and email address of a contact person which will be used only for internal purposes.  The system will launch in April and no training classes will be held, but a user guide will be available on the commission website.

Report from Executive Director

Request to Fill General Counsel Position – Executive Director Izumi-Nitao announced that Governor Abercrombie approved request to fill on January 27, 2011, and that Deputy Attorney General Gary Kam was offered and accepted the General Counsel position. He will begin on February 16, 2011.

Failure to File Reports
Executive Director Izumi-Nitao reported that to date there are 20 reports still outstanding for reports that should have been filed in August, September and December.  For the Supplemental Report that was due on January 31, 2011, there are 63 candidate committees and 24 noncandidate committees outstanding.

Upcoming meeting agendas will include conciliation agreements and complaints regarding late filings.  Staff looking at ways to improve compliance.

Commissioner Robb moved to convene executive session to consult with attorney on Yamada et al v. Kuramoto et al.  Motion seconded by Commissioner Weaver.  Motion carried unanimously.

Public session reconvened at 11:30 a.m.

Next Meeting:
Scheduled for Wednesday, March 9, 2011 at 10:30 a.m.

Chair Kuramoto asked for a motion to adjourn meeting.  Commissioner Weaver moved to adjourn meeting.  Motion seconded by Commissioner Robb.  Motion carried unanimously.

Meeting adjourned at 11:35 a.m.