Minutes for January 14, 2015 Meeting

Posted in Minutes

Campaign Spending Commission
Leiopapa A Kamehameha Building, Room 204
January 14, 2015
9:00 a.m.

Commissioners Present:
William Snipes, Eldon Ching, Gregory Shoda, Adrienne Yoshihara
Tina Gomes – arrived 9:15 a.m.

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

Call to Order:
Meeting convened at 9:10 a.m. with Chair Snipes presiding.

Chair Snipes informed the public that any person wishing to make comments on any agenda needs to sign in and asked they keep their comments to no more than 5 minutes.

Consideration and Approval of Minutes of 12/17/2014 Meeting:
Commissioner Shoda moved to approve the minutes of December 17, 2014. Motion seconded by Commissioner Yoshihara. Motion carried (4-0).

New Business
Vice Chair Gomes arrived at meeting.

Docket No. 15-53 – In Re the Matter of Nancy E. McGee vs. Calvin Say and Friends of Calvin Say
Present – Lance Collins, attorney representing Complainant Nancy McGee
Nancy McGee, Complainant
Maria Wang, attorney representing Calvin Say and Friends of Calvin Say

General Counsel Kam reported that Nancy McGee filed a complaint against Calvin Say and Friends of Calvin Say alleging the improper use of campaign funds to defend a quo warranto proceeding in violation Hawaii Revised Statutes (“HRS”) §§11-381 and 11-382. Staff has submitted a memorandum recommending that the complaint be dismissed because staff believes that it is permissible to use campaign funds to legally defend a quo warranto challenge to his position as an officer holder. General Counsel Kam stated that this issue was brought to the attention of staff in May 2014. In June 2014, Staff sent Say’s attorneys a letter stating that the use of campaign funds was permissible. McGee’s complaint was then filed in October 2014.

Ms. Maria Wang, representing Respondents Calvin Say and Friends of Calvin Say, stated that Respondents submitted a response to the instant complaint on 1/13/15 and that their response was identical to what was submitted when the matter first arose in May 2014. She further stated that Respondents agree with staff’s recommendation and ask that the complaint be dismissed.

Mr. Lance Collins, representing Complainant Nancy McGee, stated that before he was retained by complainant, he requested a copy of the Commission staff’s June 2014 response to Respondents’ attorney, and was informed that the matter was being investigated and that the letter was not public information. He stated that if Commission staff is going to be resolving issues through letters, staff will need to be more forthcoming with the public, by allowing the public access to correspondence.

Chair Snipes asked if Mr. Collins asked Respondents’ attorney Maria Wang if he could get a copy of the June 2014 response, and Mr. Collins responded that he did not.

Mr. Collins then started to talk about voter registration issues he had asserted against Respondent Calvin Say and Say’s wife. He mentioned case law that suggests campaign funds could not be used to defend voter registration challenges. He further commented that he believes that there are FEC rulings that suggest an officeholder may not use campaign funds to pay for legal proceedings in a criminal case of bribery. He commented that in this matter, a usurper of office is similar to a criminal proceeding and thus campaign funds should not be used for legal representation.

Commissioner Shoda asked General Counsel Kam whether his understanding of Hawaii case law is similar to what has been stated. General Counsel Kam did not agree with Mr. Collins’ presentation of case law. He stated that the case law cited by Respondents held that the circuit court has jurisdiction to entertain a quo warranto proceeding against an elected official. Further, General Counsel Kam stated that he is not sure why Respondent Say’s wife’s case was being discussed because the complaint before the Commission is limited to the quo warranto proceeding which has nothing to do with voter registration issues nor Respondent Say’s wife, and if the complainant is attempting to amend the complaint at this time, that request needs to be rejected since no notice has been provided to any of the parties.

Mr. Collins stated that they are not attempting to amend the complaint, but if information had been provided when it was requested in June, and if staff had more carefully reviewed the issues, a different course of action would have been recommended.

Ms. Wang reiterated that the complaint is directed to the quo warranto issue and that they submitted case law that addressed the issue.

General Counsel Kam stated that until a matter is placed on a public meeting agenda, documents are not released to the public. He received several inquiries regarding Respondent Say’s use of campaign funds. When Respondent was contacted regarding the inquiries, staff was informed to contact Respondents’ attorney. Respondent’s attorney was contacted and the matter was looked into and a decision was made.

General Counsel Kam further stated that he did not believe the cases Mr. Collins referred to earlier were related to campaign spending, and Deputy Attorney General Kunimoto, who is familiar with these cases, confirmed that they are not related to campaign spending issues.

Chair Snipes suggesting deferring the matter until the next meeting to permit the parties to submit responses to address the issues. He also urged that responses be brief, concise, and limited to the issues contained in the original complaint.

Executive Director Izumi-Nitao stated that the Commission needs to deal with the face of the complaint, and that, if on the face of the complaint there is enough information to make a decision, she recommended that the Commission make a decision. But, if more information is needed, she recommended that the parties be given 2 weeks to respond and that the matter will be continued to the February meeting.

Chair Snipes stated that it is not the intent of the Commission to broaden the complaint.

General Counsel Kam stated his research did not locate any authorities that held that campaign funds could not be used to defend against a quo warranto proceeding. He suggested that Mr. Collins submit within 1 week from today the authorities he cited and that Respondent be given a 1 week after that to respond.

Chair Snipes moved to defer the matter until the next meeting and that complainant had a week from today to submit authorities cited with respect to the quo warranto issue only and that Respondents’ response be submitted the following week. Motion seconded by Commissioner Yoshihara. Motion carried unanimously.

Executive Director Izumi-Nitao asked that parties cooperate in exchanging documents.

Docket No. 15-63 – In Re the Matter of Faye Hanohano, Leslie Julian, and Friends of Faye Hanohano
Executive Director Izumi-Nitao reported that a complaint was filed alleging the late filing of the 2^nd Preliminary Primary Report and the failure to file the Final Election Period Report.

Respondent Hanohano filed nomination papers with the Hilo County Clerk’s Office on 3/5/14 to be a candidate for the State House of Representative, District 4. The Organizational Report lists Respondent Hanohano as the candidate and Respondent Julian as the treasurer for the candidate committee called Friends of Faye Hanohano.

HRS §§11-333(a) and 11-334(a) require candidates and treasurers of candidate committees to timely file accurate preliminary, final, and supplemental disclosure reports. On 7/31/14, Commission staff sent a “Notice of Late Report” informing Respondents that the 2^nd Preliminary Primary Report had not been filed and the imposition of a fine. On 8/6/14, Respondents electronically filed the report. On 8/7/14, Commission staff sent a “Notice of Fine” assessing a $1,170.49 fine for the late filing of the report and requiring payment by 8/14/14. The fine has not been paid.

On 12/5/14, Commission staff sent a “Notice of Late Report” informing Respondents that the Final Election Period Report had not been filed and the imposition of a fine. The report has not been filed.

On 12/24/14, Commission staff sent Respondents a copy of the complaint and informed Respondents that the matter would be set on the 1/14/15 Commission agenda.

Staff recommended that the Commission make a preliminary determination pursuant to HRS §11-405(a) that probable cause exist to believe a violation of the campaign spending law has been committed, assess fines of $1,170.49 for Count I and $500 for Count II, and order that Respondents file the Final Election Period Report within two weeks of receipt of this order.

Commissioner Yoshihara moved to make a preliminary determination that probable cause exists that a violation has been committed and to accept the fines and terms as stated in Docket No. 15-63. Motion seconded by Chair Snipes. Motion carried unanimously.

Docket No. 15-64 – In Re the Matter of James Apana, Patrick Nitta, and Friends of James “Kimo” Apana
Executive Director Izumi-Nitao reported that a complaint was filed alleging the late filing of the Final Election Period Report.

Respondent Apana filed nomination papers with the Maui County Clerk’s Office on 2/28/14 to be a candidate for the State House of Representative, District 9. The Organizational Report lists Respondent Apana as the candidate and Respondent Nitta as the treasurer of the candidate committee called Friends of James “Kimo” Apana.

HRS §§11-333(a) and 11-334(a) require candidates and treasurers of candidate committees to timely file accurate preliminary, final, and supplemental disclosure reports. On 12/5/14, Commission staff sent a “Notice of Late Report” informing Respondents that the Final Election Period Report had not been filed and the imposition of a fine. On 12/8/14, Respondents electronically filed the report. On 12/9/14, Commission staff sent a “Notice of Fine” assessing a $200 fine for the late filing of the report and requiring payment by 12/23/14. The fine has not been paid.

On 12/31/14, Commission staff sent Respondents a copy of the complaint and informed Respondents that the matter would be set on the 1/14/15 Commission agenda.

Commissioner Yoshihara moved to make a preliminary determination that probable cause exists that a violation has been committed and to accept the fine and terms as stated in Docket No. 15-64. Motion seconded by Vice Chair Gomes. Motion carried unanimously.

Docket No. 15-66 – In Re the Matter of Tercia Ku, Carol Medina, and Friends of Tercia Ku
Present – Tercia Ku

Executive Director Izumi-Nitao reported that a complaint was filed alleging the late filing of the Final Election Period Report.

Respondent Ku filed nomination papers with the State Office of Elections on 6/2/14 to be a candidate for the State Senate, District 21. The Organizational Report lists Respondent Ku as the candidate and Respondent Medina as the treasurer of the candidate committee called Friends of Tercia Ku.

HRS §§11-333(a) and 11-334(a) require candidates and treasurers of candidate committees to timely file accurate preliminary, final, and supplemental disclosure reports. On 12/5/14, Commission staff sent a “Notice of Late Report” informing Respondents that the Final Election Period Report had not been filed and the imposition of a fine. On 12/9/14, Respondents electronically filed the report. On 12/10/14, Commission staff sent a “Notice of Fine” assessing a $200 fine for the late filing of the report and requiring payment by 12/24/14. The fine has not been paid.

On 12/31/14, Commission staff sent Respondents a copy of the complaint and informed Respondents that the matter would be set on the 1/14/15 Commission agenda.

Respondent Ku admitted that the report was filed late and requested that the fine be reduced, but will comply with the Commission decision. She explained that she is presently unemployed, that the campaign bank account only has enough money to keep it open, and that the campaign is currently $16,000 in debt, which is mostly Respondent’s own money.

Executive Director Izumi-Nitao noted that the candidate committee has had a number of late reports dating back to 2008.

Chair Snipes asked if Respondent would agree to a payment plan. Respondent Ku agreed to $50 a month for the next 4 months.

Commissioner Yoshihara moved to make a preliminary determination that probable cause exists that a violation has been committed and to accept the fine and terms as stated in Docket No. 15-66. Motion seconded by Vice Chair Gomes. Motion carried unanimously.

Docket No. 15-68 – In Re the Matter of Imua Kauai and Robyn Petterson
Executive Director Izumi-Nitao reported that a complaint was filed alleging the late filing of the Final Election Period Report.

Respondent is a registered noncandidate committee. The Organizational Report lists Respondent Petterson as the treasurer of Respondent noncandidate committee.

HRS §§11-335(a) and 11-33 require treasurers of noncandidate committees to timely file accurate preliminary, final, and supplemental disclosure reports. On 12/5/14, Commission staff sent a “Notice of Late Report” informing Respondents that the Final Election Period Report had not been filed and the imposition of a fine. On 12/12/14, Respondents electronically filed the report. On 12/15/14, Commission staff sent a “Notice of Fine” assessing a $365.62 fine for the late filing of the report and requiring payment by 12/29/14. The fine has not been paid.

On 12/31/14, Commission staff sent Respondents a copy of the complaint and informed Respondents that the matter would be set on the 1/14/15 Commission agenda.

Executive Director Izumi-Nitao further reported that she received an email from Respondents on 1/14/15 requesting that the fine be reduced. Respondents also indicated that they are planning to terminate their registration. Respondents have had 2 previous late reports.

Commissioner Yoshihara moved to make a preliminary determination that probable cause exists that a violation has been committed and to accept the fine and terms as stated in Docket No. 15-68. Motion seconded by Commissioner Shoda. Motion carried unanimously.

CA No. 15-52 taken out of order –

Proposed Conciliation Agreement No. 15-52 – In Re the Matter of Hawaii Family Advocates
Present – James Hochburg – President
Alexander Meimer, Treasurer

Executive Director Izumi-Nitao reported that the proposed conciliation agreement is a result of an investigation initiated in December 2014 pursuant to HRS §11-314(7) to determine whether there has been a violation of the Hawaii campaign spending laws.

Respondent has been informed in a letter from the Commission staff of the violation, they have been notified of today’s meeting, and they have received a copy of the proposed conciliation agreement.

A review of the Final Election Period Report filed by Hawaii Family Advocates showed that they received a $1,000 contribution which required the filing of the Late Contributions Report. On 12/29/14, Commission staff informed Respondent of their failure to file the Late Contributions Report and the assessment of a $750 administrative fine. On 1/5/15, the Late Contributions Report was filed.

Mr. Meimer explained that the failure to file the report was an oversight on his part and asked if the agreed fine assessment fine could be reduced even more.

Commissioners were not inclined to further reduce the agreed to assessment.

Chair Snipes moved to make a preliminary determination that probable cause exists that a violation has been committed and to accept the settlement terms and amount as stated in proposed Conciliation Agreement No. 15-52. Motion seconded by Commissioner Shoda. Motion carried unanimously.

Docket Nos. 15-69, 15-70, 15-71, and 15-72
Executive Director Izumi-Nitao reported that the following complaints were filed alleging Respondents’ failure to file the Final Election Period Report.

Docket No. 15-69 – In Re the Matter of William Halversen
Docket No. 15-70 – In Re the Matter of Henry Kahula, Jr., Darnelle Kahula, and Henry Kahula for Council
Docket No. 15-71 – In Re the Matter of Curtis Hendrix Lake and C. Hendrix Lake
Docket No. 15-72 – In Re the Matter of Nelson Waikiki, Jr.

On 1/5/15, Commission staff sent Respondents a copy of the complaint and informed Respondents that the matter would be set on the 1/14/15 Commission agenda.

Staff recommended that for Docket Nos. 15-69, 15-70, 15-71, and 15-72 the Commission make a preliminary determination pursuant to HRS §11-405(a) that probable cause exist to believe a violation of the campaign spending law has been committed, assess Respondents a fine of $500, and order that Respondents file the Final Election Period Report within two weeks or receipt of this order.

Vice Chair Gomes moved to make a preliminary determination that probable cause exists that a violation has been committed and to accept the fine and terms as stated in Docket Nos. 15-69, 15-70, 15-71, and 15-72. Motion seconded by Commissioner Yoshihara. Motion carried unanimously.

Docket No. 15-73 – In Re the Matter of Joseph Kamaka, Zyris Aldin, and Friends of Joe Kamaka
Executive Director Izumi-Nitao reported that a complaint was filed alleging the failure to file the Final Election Period Report.

Respondent Kamaka filed nomination papers with the Maui County Clerk’s Office on 5/13/14 to be a candidate for the State Senate, District 5. The Organizational Report lists Respondent Kamaka as the candidate and Respondent Aldin as the treasurer of the candidate committee called Friends of Joe Kamaka.

On 1/6/15, Commission staff sent Respondents a copy of the complaint and informed Respondents that the matter would be set on the 1/14/15 Commission agenda.

On 1/8/15, Respondents filed the Final Election Period Report. On 1/12/15, Commission staff received Respondents’ $500 fine payment. Staff recommended dismissal of the complaint.

Vice Chair Gomes moved for dismissal of the complaint. Motion seconded by Chair Snipes. Motion carried unanimously.

Docket Nos. 15-74 and 15-75
Executive Director Izumi-Nitao reported that the following complaints were filed alleging Respondents’ failure to file the Final Election Period Report.

Docket No. 15-74 – In Re the Matter of Tracy Arakaki, Karen Arakaki, and Friends of Tracy Arakaki for Aiea
Docket No. 15-75 – In Re the Matter of Nicole Ferguson, Julie Fox, and Friends of Nicole Ferguson

On 1/6/15, Commission staff sent Respondents a copy of the complaint and informed Respondents that the matter would be set on the 1/14/15 Commission agenda.

Staff recommended that for Docket Nos. 15-74 and 15-75 the Commission make a preliminary determination pursuant to HRS §11-405(a) that probable cause exist to believe a violation of the campaign spending law has been committed, assess Respondents a fine of $500, and order that Respondents file the Final Election Period Report within two weeks or receipt of this order.

Chair Snipes moved to make a preliminary determination that probable cause exists that a violation has been committed and to accept the fine and terms as stated in Docket Nos. 15-74 and 15-75. Motion seconded by Vice Chair Gomes. Motion carried unanimously.

Docket No. 15-76 – In Re the Matter of Christy Ann Gusman, Aysia Valdez, and Friends of Christy Ann Gusman
Executive Director Izumi-Nitao reported that a complaint was filed alleging the failure to file the Final Election Period Report.

Respondent Gusman filed nomination papers with the Maui County Clerk’s Office on 5/13/14 to be a candidate for the State Senate, District 5. The Organizational Report lists Respondent Gusman as the candidate and Respondent Valdez as the treasurer for the candidate committee called Friends of Christy Ann Gusman.

On 1/6/15, Commission staff sent Respondents a copy of the complaint and informed Respondents that the matter would be set on the 1/14/15 Commission agenda.

On 1/9/15, Respondents electronically filed the report. On 1/12/15, Respondent Gusman informed Commission staff that the $500 fine payment had been mailed to the Commission. Because the fine payment had not yet been received, staff recommended that the Commission dismiss the complaint if/when payment received.

Commissioner Yoshihara moved to defer the matter to the February meeting. Motion seconded by Chair Snipes. Motion carried unanimously.

Docket No 15-77 – In Re the Matter of Thornton Kekipi, Nicholas Francisco, and Thornton Keikialoha Kekipi
Executive Director Izumi-Nitao reported that a complaint was filed alleging the failure to file the Final Election Period Report.

Respondent Kekipi filed nomination papers with the Hilo County Clerk’s Office on 6/3/14 to be a candidate for the Office of Hawaiian Affairs. The Organizational Report lists Respondent Kekipi as the candidate and Respondent Francisco as the treasurer for the candidate committee called Thornton Keikialoha Kekipi.

On 1/6/15, Commission staff sent Respondents a copy of the complaint and informed Respondents that the matter would be set on the 1/14/15 Commission agenda.

Staff recommended that the Commission make a preliminary determination pursuant to HRS §11-405(a) that probable cause exist to believe a violation of the campaign spending law has been committed, assess a fine of $500, and order that Respondents file the Final Election Period Report within two weeks of receipt of this order.

Chair Snipes moved to make a preliminary determination that probable cause exists that a violation has been committed and to accept the fine and terms as stated in Docket No. 15-77. Motion seconded by Vice Chair Gomes. Motion carried unanimously.

Docket No. 15-78 – In Re the Matter of Gene Leslie, Laura Aquino, and Friends of Bucky
Executive Director Izumi-Nitao reported that a complaint was filed alleging the failure to file the Final Election Period Report.

Respondent Leslie filed nomination papers with the Kona County Clerk’s Office on 5/9/14 to be a candidate for the State House of Representatives, District 5. The Organizational Report lists Respondent Leslie as the candidate and Respondent Aquino as the treasurer for the candidate committee called Friends of Bucky.

On 1/6/15, Commission staff sent Respondents a copy of the complaint and informed Respondents that the matter would be set on the 1/14/15 Commission agenda.

On 1/13/15, Respondents electronically filed the Final Election Period Report.

Commissioner Yoshihara moved to make a preliminary determination that probable cause exists that a violation has been committed and to accept the fine and terms as stated in Docket No. 15-78. Motion seconded by Commissioner Ching. Motion carried unanimously.

Docket No. 15-79 – In Re the Matter of Kerri Marks
Executive Director Izumi-Nitao reported that a complaint was filed alleging the late filing of the Final Election Period Report.

Respondent Marks filed nomination papers with the Hilo County Clerk’s Office on 5/29/14 to be a candidate for the Hawaii County Council. The Organizational Report lists Respondent Marks as the candidate and treasurer for the candidate committee called Kerri Marks.

HRS §§11-333(a) and 11-334(a) require candidates and treasurers of candidate committees to timely file accurate preliminary, final, and supplemental disclosure reports. On 12/5/14, Commission staff sent a “Notice of Late Report” informing Respondents that the Final Election Period Report had not been filed and the imposition of a fine. On 12/19/14, Respondent electronically filed the report, and on the same day Commission staff sent a “Notice of Fine” assessing a $200 fine for the late filing of the Final Election Period Report. Respondent has not paid the fine.

On 1/7/15, Commission staff sent Respondent a copy of the complaint and informed Respondent that the matter would be set on the 1/14/15 Commission agenda.

Vice Chair Gomes moved to make a preliminary determination that probable cause exists that a violation has been committed and to accept the fine and terms as stated in Docket No. 15-79. Motion seconded by Chair Snipes. Motion carried unanimously.

Docket No. 15-80 – In Re the Matter of Malama Solomon, Hulali Covington, and Friends of Malama Solomon
Executive Director Izumi-Nitao report that a complaint was filed alleging Respondents failed to file the Final Election Period Report.

Respondent Solomon filed nomination papers with the Hilo County Clerk’s Office on 5/7/14 to be a candidate for the State Senate, District 4. The Organizational Report lists Respondent Solomon as the candidate and Respondent Covington as the treasurer of the candidate committee called Friends of Malama Solomon.

On 1/7/15, Commission staff sent Respondents a copy of the complaint and informed Respondents that the matter would be set on the 1/14/15 Commission agenda.

On 1/13/15, Respondents filed the Final Election Period Report and Commission staff received the $500 fine payment. Staff recommended dismissal of the complaint.

Vice Chair Gomes moved for dismissal of the complaint. Motion seconded by Commissioner Yoshihara. Motion carried unanimously.

Docket No. 15-81 – In Re the Matter of Wesley Yoon, Travis Kikuchi, and Wesley Kaiwi Nui Yoon
Executive Director Izumi-Nitao reported that a complaint was filed alleging the failure to file the Final Election Period Report.

Respondent Yoon filed nomination papers with the State Office of Elections on 5/6/14 to be a candidate for the Office of Hawaiian Affairs. The Organizational Report lists Respondent Yoon as the candidate and Respondent Kikuchi as the treasurer for the candidate committee called Wesley Kaiwi Nui Yoon.

On 1/7/15, Commission staff sent Respondent a copy of the complaint and informed Respondent that the matter would be set on the 1/14/15 Commission agenda.

Staff recommended that the Commission make a preliminary determination pursuant to HRS §11-405(a) that probable cause exist to believe a violation of the campaign spending law has been committed, assess a fine of $500, and order Respondents to file the Final Election Period Report within two weeks of receipt of this order.

Chair Snipes moved to make a preliminary determination that probable cause exists that a violation has been committed and to accept the fine and terms as stated in Docket No. 15-81. Motion seconded by Vice Chair Gomes. Motion carried unanimously.

Docket No. 15-82 – In Re the Matter of Julia Peleiholani, Dale Kaawaloa, and Friends of Julia Peleiholani
Executive Director Izumi-Nitao report that a complaint was filed alleging Respondents failed to file the Final Election Period Report.

Respondent Peleiholani filed nomination papers with the Hilo County Clerk’s Office on 5/23/14 to be a candidate for the State House of Representative, District 4. The Organizational Report lists Respondent Peleiholani as the candidate and Respondent Kaawaloa as the treasurer of the candidate committee called Friends of Julia Peleiholani.

On 1/7/15, Commission staff sent Respondents a copy of the complaint and informed Respondents that the matter would be set on the 1/14/15 Commission agenda.

On 1/12/15, Respondents filed the Final Election Period Report. On 1/13/15, Commission staff received the $500 fine payment. Staff recommended dismissal of the complaint.

Vice Chair Gomes moved for dismissal of the complaint. Motion seconded by Commissioner Yoshihara. Motion carried unanimously.

Docket Nos. 15-83, 15-84, and 15-85
Executive Director Izumi-Nitao reported that the following complaints were filed alleging Respondents’ failure to file the Final Election Period Report and failure to amend the Organizational Report in Docket No. 15-85.

Docket No. 15-83 – In Re the Matter of Larry Gering and Committee to Elect Larry Gering
Docket No. 15-84 – In Re the Matter of Beau Hawkes, Vincent Armijo, and Beau E. Hawkes
Docket No. 15-85 – In Re the Matter of Eleanor Sharsh, Samena Nordkvist and Friends of Lei Sharsh

On 1/7/15, Commission staff sent Respondents a copy of the complaint and informed Respondents that the matter would be set on the 1/14/15 Commission agenda.

Staff recommended that for Docket Nos. 15-83, 15-84, and 15-85 the Commission make a preliminary determination pursuant to HRS §11-405(a) that probable cause exist to believe a violation of the campaign spending law has been committed, assess Respondents a fine of $500, and order that Respondents file the Final Election Period Report within two weeks of receipt of this order. Further, in Docket No. 15-85, that Respondents amend the Organizational Report within two weeks of receipt of this order and be assessed an additional fine of $50.

Vice Chair Gomes moved to make a preliminary determination that probable cause exists that a violation has been committed and to accept the fine and terms as stated in Docket Nos. 15-83, 15-84, and 15-85. Motion seconded by Commissioner Yoshihara. Motion carried unanimously.

Docket No. 15-86 – In Re the Matter of Richard Fale, Erin Fale, and Friends of Richard Fale
Executive Director Izumi-Nitao report that a complaint was filed alleging the late filing of the Late Contributions Report.

Respondent Fale filed nomination papers with the State Office of Elections on 5/30/14 to be a candidate for the State Senate, District 23. The Organizational Report lists Respondent Fale as the candidate and Respondent Erin Fale as the treasurer of the candidate committee called Friends of Richard Fale.

HRS §§11-333(c) and 11-338 require candidates and treasurers of candidate committees to file a late contribution report if the committee receives contributions from any person aggregating more than $500 within fourteen days through four calendar days prior to any election on or before the third calendar day prior to the election. The Late Contributions Report for the general election period was due on 11/3/14 and Respondents filed the report on 12/4/14.

On 12/22/14, Commission staff sent a “Notice of Fine” assessing a fine of $200 for the late filing of the report and requiring payment by 1/5/15. Respondents had not paid the fine.

On 1/7/15, Commission staff sent Respondents a copy of the complaint and informed Respondents that the matter would be set on the 1/14/15 Commission agenda.

On 1/8/15, Commission staff received the $500 fine payment. Staff recommended dismissal of the complaint.

Vice Chair Gomes moved for dismissal of the complaint. Motion seconded by Chair Snipes. Motion carried unanimously.

Docket No. 15-87 – In Re the Matter of Learning Matters, Kristopher Coffield, and Christopher Mikesell
Executive Director Izumi-Nitao reported that a complaint was filed alleging the late filing of the Final Election Period Report.

Respondents is a registered noncandidate ballot issue committee. The Organizational Report lists Respondent Coffield as the chairperson and Respondent Mikesell as the treasurer of noncandidate ballot issue committee called Learning Matters.

HRS §§11-335(a) and 11-336 require the treasurers of noncandidate committees to timely file accurate preliminary, final, and supplemental disclosure reports. On 12/5/14, Commission staff sent a “Notice of Late Report” informing Respondents that the Final Election Period Report had not been filed and the imposition of a fine. On 12/16/14, Respondents electronically filed the report. On 12/18/14, Commission staff sent a “Notice of Fine” assessing a fine of $200 for the late filing of the report and requiring payment by 1/2/15. Respondents had not paid fine.

On 1/7/15, Commission staff sent Respondent a copy of the complaint and informed Respondent that the matter would be set on the 1/14/15 Commission agenda.

Vice Chair Gomes moved to make a preliminary determination that probable cause exists that a violation has been committed and to accept the fine and terms as stated in Docket No. 15-87. Motion seconded by Chair Snipes. Motion carried unanimously.

Proposed Conciliation Agreements
Executive Director Izumi-Nitao reported that the following proposed conciliation agreements are a result of investigations initiated in December 2014 pursuant to HRS §11-314(7) to determine whether there has been a violation of the Hawaii campaign spending laws.

Proposed Conciliation Agreement 15-41 – Re the Matter of Jackie Kahookele Burke for OHA Ohana
Proposed Conciliation Agreement 15-42 – In Re the Matter of Carl Strouble
Proposed Conciliation Agreement 15-43 – In Re the Matter of Committee on Political Education-General Fund & Political Contributions
Proposed Conciliation Agreement 15-44 – In Re the Matter of Friends of Dave Bateman
Proposed Conciliation Agreement 15-45 – In Re the Matter of Friends of Stacy Helm Crivello
Proposed Conciliation Agreement 15-46 – In Re the Matter of Friends of Chris Stump
Proposed Conciliation Agreement 15-47 – In Re the Matter of Friends of Jaci Agustin
Proposed Conciliation Agreement 15-48 – In Re the Matter of Friends of Joe Pontanilla
Proposed Conciliation Agreement 15-49 – In Re the Matter of Team Baisa
Proposed Conciliation Agreement 15-50 – In Re the Matter of electjerrymetalfe.org
Proposed Conciliation Agreement 15-51 – In Re the Matter of Hawaii Financial Services Association PAC
Proposed Conciliation Agreement 15-53 – In Re the Matter of Hawaii Dental Political Action Committee
Proposed Conciliation Agreement 15-54 – In Re the Matter of Fire Fighters Interested in Registration and Education PAC

Respondents have been informed in a letter from the Commission staff of the violation, they have been notified of today’s meeting, and they have received a copy of the proposed conciliation agreement. Executive Director Izumi-Nitao recommended that the Commission make a preliminary determination of probable cause that a violation has been committed, waive further proceedings, and approve the settlement amounts as stated in each of the proposed conciliation agreements.

Chair Snipes commented that staff needs to find a way to handle matters that result in fines of less than a certain dollar amount. These matters should not have to come before the Commissioners.

Chair Snipes moved to make a preliminary determination that probable cause exists that a violation has been committed and to accept the settlement terms and amounts as stated in each of the proposed conciliation agreements. Motion seconded by Vice Chair Gomes. Motion carried unanimously.

Executive Director Izumi-Nitao suggested further discussion on how to handle the issue of fines less than a certain dollar amount in another meeting.

Old Business:
Consideration and Discussion of Commission Legislation and/or Other Campaign Finance Related Bills/Resolutions for the 2015 Legislative Session
General Counsel Kam reported that bill introduction would be done through the Senate President’s office. The Commission’s bill proposal has been submitted for introduction. Meetings have scheduled with both the Senate and House leaders regarding the Commission’s bill.

He further noted that the Honolulu City Council passed Resolution No. 14-268 which urges the State to enact a comprehensive public financing for all state and county election campaigns. The resolution has been sent to the Legislature.

Report from Executive Director
Report on Compliance of Filing Timely Disclosure Reports
No new updates on prior reports.

Report on Late Contributions Report (due 11/3/14)
-50 candidate committees filed the report
-8 did not file by 11/3/14
-As of today, 1 paid fine, 6 conciliation agreements, and 1 complaint filed for non-payment of the late filing fine

-36 noncandidate committees filed the report
-4 did not file by 11/3/14
-As of today, 4 conciliation agreements

Report on Final Election Period Report (due on 12/4/14)
-280 candidate committees to file
-38 candidate committees did not file by 12/4/14
-As of today, 17 complaints filed for not filing the report and 3 complaints filed for non-payment of the late filing fine

-247 noncandidate committees to file
-19 committees did not file by 12/4/14
-As of today, 4 complaints filed for not filing the report and 2 complaints filed for non-payment of the late filing fine

Report on Expenditures of Public Funds Report (due on 12/4/14)
-17 candidate committees filed the report

Supplemental Report (due on 2/2/15)
-About 600 committees expected to file with 2 different reporting periods:

11/5/15 – 12/31/14 Candidates that were in the 2014 election
7/1/14 – 12/31/14 Candidates that did not run in the 2014 election

Update on 2014 Election
Associate Director Baldomero reported that the 2014 Election Summary has been uploaded to Google Drive and attached to that were 19 separate reports. Reports include breakdowns of total receipts and disbursements, cost per vote by each office, contributions received, loans, and surplus/deficit.

There were 298 candidates in the 2014 election. The 2014 Election Summary is a snapshot of the extensive reports posted on-line. Items addressed include:

-Total receipts – $21 million

Receipts include contributions received, other receipts, and loans

-Total disbursements – $20 million

Disbursements include expenditures, paid unpaid expenditures, & repaid loans

-Top 10 receipts

Abercrombie received 25% of total receipts for the 2014 election

-Contributions by contributor type

70% of contributions received came from individuals

-Top 10 loans

David Ige – $70,000 in loans
Most of loans are from the candidate
No financial institution loans

-Authorized Use category

90% of expenditures directly related to candidate’s campaign

-Expenditures by category

For expenditures were for advertising and professional services

For the election summary, a bar or pie chart for each chart has been created.

Chair Snipes moved to convene executive session to consult with attorney pursuant to HRS 92-5(a)(4) and to investigate proceedings regarding criminal misconduct pursuant to HRS 92-5(a)(5). Motion seconded by Vice Chair Gomes. Motion carried unanimously.

Public Session reconvened – 11:05 a.m.

Next Meeting:
Scheduled for Wednesday, February 11, 2015 at 10:00 a.m.

Brief discussion on setting the meeting for the following week. Commissioners and staff will need to check schedules before confirming date. Will confirm with Commissioners and staff when the date and time has been set.

Commissioner Yoshihara moved to adjourn meeting. Motion seconded by Chair Snipes. Motion carried unanimously. Meeting adjourned at 11:15 a.m.

Campaign Spending Commission

Minutes for January 14, 2015 Meeting

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