Campaign Spending Commission

Campaign Spending Commission
Leiopapa A Kamehameha Building, Room 204
July 31, 2014
10:00 a.m.

Commissioners Present:
G. William Snipes, Gregory Shoda, Adrienne Yoshihara
Excused – Tina Gomes, Eldon Ching

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

Call to Order:
Meeting convened at 10:00 a.m. with Chair Snipes presiding.

Consideration and Approval of Minutes of 6/19/2014 Meeting:
Commissioner Yoshihara moved to approve the minutes of June 19, 2014.  Motion seconded by Commissioner Shoda.  Motion carried unanimously.

New Business
Executive Director Izumi-Nitao reported that the following conciliation agreements were initiated in July 2014 pursuant to HRS §11-314(7) to determine whether there has been a violation of the campaign spending laws.

Respondents have been informed in a letter from Commission staff of the violation, and they have been notified of today’s meeting and received a copy of the proposed conciliation agreement.  They have 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 settlement amounts as stated in each of the conciliation agreements.

Proposed Conciliation Agreement No. 15-02 – In Re the Matter of Stuart Gregory and If You Didn’t Vote for Me Then You Paid Too Much
The proposed conciliation agreement is offered to settle a claim regarding the Respondent’s late filing of the 1st Preliminary Primary Report.  Respondent is the candidate committee for Stuart Gregory, a candidate for Governor.  The 1st Preliminary Primary Report for the period covering 1/1/14 through 6/30/14 was due no later than 11:59 p.m. Hawaii standard time on 7/10/14.  Respondent’s 1st Preliminary Primary Report was filed on 7/14/14.  Respondent has agreed to a fine of $35.

Chair Snipes 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 Yoshihara.  Motion carried unanimously.

Proposed Conciliation Agreement No. 15-03 – In Re the Matter of Isaiah Chong and Isaiah Chong for Hawaii House of Representatives
The proposed conciliation agreement is offered to settle a claim regarding the Respondent’s late filing of the 1st Preliminary Primary Report.  Respondent is the candidate committee for Isaiah Chong, a candidate for the House of Representative, District 40.  The 1st Preliminary Primary Report for the period covering 1/1/14 through 6/30/14 was due no later than 11:59 p.m. Hawaii standard time on 7/10/14.  Respondent’s Supplemental Report was filed on 7/11/14.  Respondent has agreed to a fine of $17.

Commissioner Yoshihara 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 Chair Snipes.  Motion carried unanimously.

Proposed Conciliation Agreement 15-04 – In Re the Matter of Vince E. Flores
The proposed conciliation agreement is offered to settle a claim regarding the Respondent’s late filing of the 1st Preliminary Primary Report.  Respondent is a candidate committee for Vince E. Flores, a candidate for the House of Representative, District 16.  The 1st Preliminary Primary Report for the period covering 1/1/14 through 6/30/14 was due no later than 11:59 p.m. Hawaii standard time on 7/10/14.  Respondent’s 1st Preliminary Primary Report was filed on 7/14/14.  Respondent has agreed to a fine of $35.

Commissioner Yoshihara 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 Shoda.  Motion carried unanimously.

Proposed Conciliation Agreement 15-05 – In Re the Matter of Robin Knox, Mark Selders, and Friends of Robin Knox
The proposed conciliation agreement is offered to settle a claim regarding the Respondent’s late filing of the 1st Preliminary Primary Report.  Respondent is a candidate committee for Robin Knox, a candidate for Maui County Council, and Mak Selders is the committee’s treasurer.  The 1st Preliminary Primary Report for the period covering 1/1/14 through 6/30/14 was due no later than 11:59 p.m. Hawaii standard time on 7/10/14.  Respondent’s 1st Preliminary Primary Report was filed on 7/21/14.  Respondent has agreed to a fine of $70.

Commissioner Yoshihara 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 Shoda.  Motion carried unanimously.

Proposed Conciliation Agreement 15-06 – In Re the Matter of Chace Shigemasa and Shigemasa for OHA
The proposed conciliation agreement is offered to settle a claim regarding the Respondent’s late filing of the 1st Preliminary Primary Report.  Respondent is a candidate committee for Chace Shigemasa, a candidate for the Office of Hawaiian Affairs.  The 1st Preliminary Primary Report for the period covering 1/1/14 through 6/30/14 was no due no later than 11:59 p.m. Hawaii standard time on 7/10/14.  Respondent’s 1st Preliminary Primary Report was filed on 7/12/14.  Respondent has agreed to a fine of $33.

Commissioner Yoshihara 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 Shoda.  Motion carried unanimously.

Docket No. 15-01 – In Re the Matter of William Halversen
Executive Director Izumi-Nitao reported that a complaint was filed alleging that Respondents failed to register with the Commission by filing the Organizational Report and for the failure to file the 1st Preliminary Primary Report.

Count I – Respondent filed nomination papers with the Hawaii County Clerk’s Office on 6/3/14 to be a candidate for the Hawaii County Council, District II.  On 6/6/14, Commission staff sent Respondent a “Notice to Register” informing him that his Organizational Report was due on 6/13/14, and on 6/20/14, Commission staff sent a “Notice of Fine” informing him that his failure to register by filing the Organizational Report violates the campaign finance laws and that he was being assessed a fine.  To date, Respondent has not paid the fine nor registered by filing his Organizational Report with the Commission.

Count II – On 7/12/14, Commission staff sent Respondent a “Notice of Late Report” informing him that the 1st Preliminary Primary Report for the period covering 1/1/14 through 6/30/14 was not filed and the imposition of a fine.  Respondent was further informed that if the report was not filed Commission staff would be filing a complaint and noticing the matter for the July Commission meeting.  To date, Respondent has not filed the 1st Preliminary Primary Report, and on 7/24/14, Commission staff sent Respondent a copy of the complaint and informed him that the matter has been set for the 7/31/14 Commission agenda.

Staff recommends that the Commission make a preliminary determination pursuant to HRS §11-405(a) that probable cause exists to believe a violation of the campaign spending law has been committed, assess a fine of $100-Count I and $500-Count II, and order that Respondent register with the Commission by filing the Organizational Report and file the 1st Preliminary Primary Report within two weeks of receipt of this order.

Commissioner Yoshihara moved to make a preliminary determination that probable cause exists that violations have been committed and to accept the fine and terms as stated in Docket 15-01.  Motion seconded by Commissioner Shoda.  Motion carried unanimously.

Docket 15-02 – In Re the Matter of Nelson Waikiki, Jr.
Executive Director Izumi-Nitao reported that a complaint was filed alleging that Respondent failed to register with the Commission by filing the Organizational Report.

Respondent filed nomination papers with the Maui County Clerk’s Office on 6/3/14 to be a mayoral candidate for Maui County.  On 6/6/14, Commission staff sent Respondent a “Notice to Register” informing him that his Organizational Report was due on 6/13/14, and on 6/20/14, Commission staff sent a “Notice of Fine” informing him that his failure to register by filing the Organizational Report violates the campaign finance laws and that he was being assessed a fine.  To date, Respondent has not paid the fine nor registered by filing his Organizational Report with the Commission.

On 7/10/14, Respondent contacted the Commission and staff emailed the electronic filing form with instructions to complete and return to Commission staff.  On 7/15/14, Commission staff received an incomplete form, which staff emailed to Respondent with instructions to complete form and return it by facsimile and mail.  To date, Respondent has not registered with the Commission by filing the Organizational Report.  On 7/24/14, Commission staff sent Respondent a copy of the complaint and informed him that the matter has been set for the 7/31/14 Commission agenda.

Staff recommends that the Commission make a preliminary determination pursuant to HRS §11-405(a) that probable cause exists to believe a violation of the campaign spending law has been committed, assess a fine of $100, and order that Respondent register with the Commission by filing the Organizational Report within two weeks of receipt of this order.

Chair Snipes moved t 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 15-02.  Motion seconded by Commissioner Yoshihara.  Motion carried unanimously.

Docket 15-03 – In Re the Matter of Charles Collins and Charles “Trump” Collins 4 Gov
Executive Director Izumi-Nitao reported that a complaint was filed alleging Respondent failed to file the 1st Preliminary Primary Report.

Respondent Collins filed nomination papers on 5/30/14 to be a gubernatorial candidate, and his Organizational Report lists himself as the candidate, chairperson, and treasurer of the candidate committee called Charles “Trump” Collins 4 Gov.

On 7/11/14, Commission staff sent a “Notice of Late Report” informing Respondents that the 1st Preliminary Primary Report for the period covering 1/1/14 through 6/30/14 had not been filed and the imposition of a fine.

On 7/29/14, Respondent Collins left a message with staff stating that he would not be receiving or spending more than $1,000.  When a candidate checks the $1,000 or less box, it informs staff that they will be required to file only the Final Election Period Report, unless they exceed the $1,000 in either receipts or expenses.

Staff recommends withdrawal of the complaint.

Docket 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 was filed alleging Respondents failed to file the 1st Preliminary Primary Report.

Respondent Kahula filed nomination papers at the Maui County Clerk’s office on 6/3/14 to be a candidate for the Maui County Council, and his Organizational Report lists himself as the candidate and Darnelle Kahula as the treasurer of the candidate committee Henry Kahula for Council.

On 7/11/14, Commission staff sent a “Notice of Late Report” informing them that the 1st Preliminary Primary Report has not been filed and the imposition of a fine.  To date, Respondents have not filed the 1st Preliminary Primary Report.

On 7/24/14, Commission staff sent Respondents a copy of the complaint and informed them that the matter has been set for the 7/31/14 Commission agenda.

Staff recommends that the Commission make a preliminary determination pursuant to HRS §11-405(a) that probable cause exists to believe a violation of the campaign spending law has been committed assess a fine of $500, and order that the report be filed within two weeks of receipt of this order.

Commissioner Shoda 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 15-04.  Motion seconded by Chair Snipes.  Motion carried unanimously.

Docket 15-05 – In Re the Matter of Van Tanabe and Good Guys for Tanabe
Executive Director Izumi-Nitao reported that a complaint was filed alleging Respondent failed to file the 1st Preliminary Primary Report.

Respondent Tanabe filed nomination papers on 5/30/14 with the State Office of Elections to be a gubernatorial candidate.  Respondent’s Organizational Reports lists himself as the candidate, chairperson, and treasurer of the candidate committee Good Guys for Tanabe.

On 7/11/14, Commission staff sent a “Notice of Late Report” informing Respondents that the 1st Preliminary Primary Report had not been filed and the imposition of a fine.

Executive Director Izumi-Nitao had a conversation with Respondent this morning in which he indicated that he will not be receiving or spending more than $1,000 and was of the understanding that he did not need to file until December 4th (i.e., the Final Election Period Report).  She explained to Respondent how the $1,000 or Less works, and that he will need to file the Final Election Period Report.

Staff recommends withdrawal of the complaint.

Docket 15-06 – In Re the Matter of Marie Minichino, Michael Minichino, and Dr. Marie for South Maui.com
Executive Director Izumi-Nitao reported that a complaint was filed alleging Respondents failure to timely file the 1st Preliminary Primary Report.

Respondent Minichino filed nomination papers with the Maui County Clerk’s office on 6/3/14 to be a candidate for State House of Representatives, District 11.  Respondent’s Organizational Report lists Marie Minichino as the candidate and Michael Minichino as the treasurer of the candidate committee Dr. Marie for South Maui.com.

On 7/11/14, Commission staff sent a “Notice of Late Report” informing Respondents that the 1st Preliminary Primary Report for the period covering 1/1/14 through 6/30/14 had not been filed and the imposition of a fine.  Respondent’s 1st Preliminary Primary Report was filed on 7/14/14.

On 7/14/14, Commission staff sent a “Notice of Fine for Late Report” notifying Respondents that a fine had been assessed for the late filing of the report and requiring that the fine be paid by 7/21/14.  On 7/24/14, Commission staff sent Respondents a copy of the complaint and informed them that the matter had been set for the 7/31/14 Commission agenda.

Staff recommends 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 finance law has been committed and assess a fine of $89.60.

Commissioner Shoda 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 15-06.  Motion seconded by Chair Snipes.  Motion carried unanimously.

Docket 15-07 – In Re the Matter of Cherish Almeida, China-Lyn Almeida, and T.E.A.M. Cherish-Cherish Almeida
Executive Director Izumi-Nitao reported that a complaint was filed alleging Respondents failure to timely file the 1st Preliminary Primary Report.

Respondent Almeida filed nomination papers with the Hawaii County Clerk’s office on 6/3/14 to be a candidate for the Hawaii County Council, District V.  Respondent’s Organizational Report lists Cherish Almeida as the candidate and China-Lyn Almeida as the treasurer of the candidate committee T.E.A.M. Cherish-Cherish Almeida.

On 7/11/14, Commission staff sent a “Notice of Late Report” informing Respondents that the 1st Preliminary Primary Report had not been filed and the imposition of a fine.  Respondent’s 1st Preliminary Primary Report was filed on 7/15/14.

On 7/16/14, Commission staff sent a “Notice of Fine for Late Report” notifying Respondents that a fine had been assessed for the late filing of the report and requiring payment of the fine by 7/23/14.  On 7/25/14, Commission staff sent Respondents a copy of the complaint and informed them that matter has been set for the 7/31/14 Commission agenda.

Staff recommends 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 finance law has been committed and assess a fine of $200.

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 15-07.  Motion seconded by Chair Snipes.  Motion carried unanimously.

Old Business
Docket 14-22 – In Re the Matter of Romy Cachola, Friends of Romy Cachola
Attorney Michael Green, representing Romy Cachola, was present.

At the 6/19/14 Commission meeting, the Commission granted Respondents’ verbal request to continue the matter to pursue resolution of the complaint.

General Counsel Kam refreshed the Commissioners’ recollection of the three count complaint against Respondent Romy Cachola.  Count I of the complaint alleged that Respondent Cachola failed to reimburse his candidate committee for the personal use of the campaign committee vehicle and Counts II & III alleged improper public relations and food & beverage expenditures.

He further reported that the parties have agreed to settle the complaint with the terms set forth in the proposed conciliation agreement which is before the Commission for their approval.  He summarized the proposed agreement as follows:

-Respondent is to reimburse his campaign 50% of expenses in Counts I, II, & III; and
-Respondent agrees to these fines – Count I – $1,000 for failure to keep records; and Counts II and III – 25% of the prohibited expenses.

Attorney Michael Green stated his support for the proposed agreement and acknowledged Commission staff’s professionalism in the handling the matter.

Staff recommends that the Commission find probable cause that the campaign spending laws have been violated, waive further proceedings and approve the proposed conciliation agreement.

Chair Snipes moved to make a preliminary determination that probable cause exists that violations have been committed and accepts the settlement terms and amounts as stated in the conciliation agreement.  Motion seconded by Commission Yoshihara.  Motion carried unanimously.

Discussion and Update of Commission Related Legislation for 2014 Legislative Session

General Counsel Kam reported that of the four Commission bills introduced this legislation session, three have been signed into law.

– Act 48 (SB 2120) – Immediate family members not subject to candidate contribution limits
– Act 139 (HB 1604) – Requires the filing of CSC disclosure reports and payment of all outstanding fines to obtain elections certification
– Act 140 (SB 2118) – If a candidate exceeds the expenditure limit, he/she must notify the Office of Elections, instead of the Chief Election Officer

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

Report on Compliance of Filing Timely Disclosure Reports
Update of the Supplemental Report which was due on July 31, 2013

-Nora Pajimola – On 7/10/14, Judge Sakamoto granted the Commission’s Motion for an Order Requiring Defendants to Comply with Commission’s Final Order
-Adam Reeder – A hearing is scheduled for 8/13/14 before Judge Nishimura where the Commission will request an order requiring compliance

Update of the 1st Preliminary Primary Report which was due on July 10, 2014
-262 candidates required to file this report
-28 did not file on the deadline
-4 candidates were disqualified
-4 did not file the report and 2 did not register and file the report (Complaints filed)
-7 candidates checked the $1,000 or Less box

-After review of this report, 18 to 20 fines letters were sent for prohibited expenditures, excess contributions, and prohibited period contributions

-This was the first report that required the selection of “Authorized Use” category.

Update of the 2nd Preliminary Primary Report which was due on July 30, 3014
-256 candidates required to file this report
-22 did not file on the deadline
-Minimum fine for not filing this report is $300

Update of the Preliminary Primary which was due on July 30, 2014
-225 noncandidate committees required to file this report
-25 committees did not file on the deadline

Update of the Supplemental Report which was due on July 31, 2014
-136 candidate committees required to file this report (candidates whose names did not appear on the 2014 ballot)

Update on 2014 Committee Training Schedule
Training sessions were held on Kauai on 6/24/14 with 16 attendees, on Oahu on 6/25/14 with about 60 attendees, and on Maui on 7/2/14 with 20 attendees.  Due to an insufficient number of registrants, the session on the Big Island was cancelled.

The evaluations regarding the sessions have been positive, but note a general request that the trainings be held earlier in the election cycle which staff will take into consideration.

Update on Data Visualizations
Executive Director Izumi-Nitao reported that the Commission paid $5,300 for the immediate development of the noncandidate committee data visualization app and acknowledged OIMT in absorbing the cost of hosting the app.  The anticipated launch date for this new app is August 1, 2014.

Report on CSC July 2014 Newsletter
The Commission’s biannual newsletter was published on the website on 7/22/14.  Eblasts and tweets went out to notify interested parties.

Discussion of Scheduling the August 2014 CSC Meeting
The Commission’s next meeting is scheduled for August 13, 2014.  After discussion and consensus of Commissioners, the August 13th meeting was cancelled and the next meeting was set for September 10, 2014.

Chair Snipes moved to convene executive session to consult with attorney.  Motion seconded by Commissioner Yoshihara.  Motion carried unanimously.

Public Session reconvened – 10:50 a.m.

Chair Snipes moved to adjourn meeting.  Motion seconded by Commissioner Yoshihara. Motion carried unanimously.  Meeting adjourned at 10:50 a.m.