Campaign Spending Commission

Campaign Spending Commission
Leiopapa A Kamehameha Building, Room 204
June 12, 2019
10:00 a.m.

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

Staff Present
Kristin Izumi-Nitao, Tony Baldomero, Gary Kam, Yayoi Tumamao
Deputy Attorney General Valri Kunimoto (*Arrived at 10:40 a.m.)

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

Consideration and Approval of Minutes of Meeting on 5/15/19
Chair Luke asked for comments or changes to the minutes.  There were none.  Chair Luke called for a motion to approve the minutes.

Commissioner Goodenow moved to approve the minutes of the 5/15/19 meeting.  Motion seconded by Commissioner Lum.  Motion carried (5-0).

New Business
Executive Director Izumi-Nitao stated that the four (4) 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. 19-170 – In Re the Matter of Pan-Pacific Mechanical
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Preliminary Special Report and requests that they assess a reduced fine from $500 to $166.67.  Chair Luke asked if there were any comments or questions.

Commissioner Goodenow moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Lum.  Motion carried (5-0).

*Proposed Conciliation Agreement No. 19-171 – In Re the Matter of LKQ Corporation Employee Good Government Fund
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.

Vice Chair Shoda moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Markley.  Motion carried (5-0).

*Proposed Conciliation Agreement No. 19-172 – In Re the Matter of Nextera Energy, Inc.
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.

Vice Chair Shoda moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Goodenow.  Motion carried (5-0).

*Proposed Conciliation Agreement No. 19-173 – In Re the Matter of HDR, Inc. Political Action Committee
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.

Vice Chair Shoda moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Goodenow.  Motion carried (5-0).

*Docket No. 19-39 – In Re the Matter of The Alliance for Solar Choice and Erica Joy
Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against The Alliance for Solar Choice and Erica Joy for the failure to timely report a contribution to a candidate and the late filing of the Final Election Period Report.

Respondent is a noncandidate committee registered with the Commission.  In their Organizational Report Respondent Erica Joy is listed as the chairperson and treasurer.

Executive Director Izumi-Nitao stated that a fine of $250 was assessed for Respondents’ failure to report a $1,000 contribution on or about 3/7/19 to Friends of Tommy Waters. Further, a fine of $200 was assessed for Respondents’ late filing of the Final Election Period Report.  Respondents were informed of these fines as well as instructed to amend their reports to reflect the contribution to Friends of Tommy Waters, but because they failed to do so, the complaint was filed.

She reported that as of 6/12/19, Respondents have complied with paying the fines as well as amending their reports.  As such, Executive Director Izumi-Nitao withdrew the complaint.

Old Business
*Discussion and/or Update of Commission Legislation and Other Campaign Finance Related Bills/Resolutions for the 2019 Legislative Session
General Counsel Kam informed the Commission of the status of the Commission’s bills, other campaign finance related bills, and budget bills for the 2019 legislative session.

• H.B. 165 – Governor Ige signed on 4/16/19 as Act 8. This bill was introduced on behalf of the Commission.  Requires candidate committees to inform the Commission if they intend to receive or spend $1,000 or less by 6/30 of an election year and noncandidate committees to inform the Commission if they intend to receive or spend $1,000 or less by the fifth calendar day before the due date of the preliminary report.

• S.B. 138 – Pending Governor Ige’s approval or veto. This bill was introduced on behalf of the Commission.  Requires an October 1^st report for candidate committees and added another report on April 30^th for candidate committees whose candidates file nomination papers by April 25^th of the election year.  Met with Governor Ige on 6/6/19 to discuss bill and answer any questions.

• S.B. 197 – Pending Governor Ige’s approval or veto. Allows donations to charities and full-time scholarship awards if the candidate wins outright or loses in the primary election.  Donations to charities and full-time scholarship awards are currently prohibited during the period from the filing of nomination papers through the general election for charitable donations, or from the nomination paper filing deadline through the general election for full-time scholarship awards.  Met with Governor Ige on 6/6/19 to discuss bill and answer any questions.

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

• Final Election Period Report (reporting period 3/30/19 to 4/13/19 or 1/1/19 to 4/13/19) due on 5/13/19 → 5 noncandidate committees did not file

The next report due will be the Supplemental Report (reporting period 4/14/19 to 6/30/19 for Trevor Ozawa, Tommy Waters, and all noncandidate committees or 1/1/19 to 4/13/19 for all other candidate committees) due 7/31/19.

As for prior reports, there were no new updates.

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

• Kaniela Ing – Respondent has been making fine payments and amended reports are pending review
• Trinette Furtado – Parties are preparing contested case hearing proceeding. Judge Victoria Marks was procured to serve as the administrative hearings officer.  A prehearing conference is scheduled on July 1^st.

Report on Developments Concerning the Commission’s Electronic Filing Systems
Associate Director Baldomero updated the Commission concerning the rewrite of the candidate filing systems from CodeCharge to Scriptcase.  He reported that ETS is on track and will be turning over the systems for his beta testing in December 2019.  He stated that the target launch date is 3/31/2020, but that contingencies are in place in the event that there are complications during the testing process.  Lastly, he stated that ETS is also working on enhancements to the systems.

Update on the 2019 Special Election
Associate Director Baldomero reported on the 4/13/19 Special Election for Honolulu City Council District 4.  He summarized the data from the reports filed by candidates Trevor Ozawa and Tommy Waters as well as reports filed by Super PACs that supported/opposed the candidates.

EXECUTIVE SESSION
Chair Luke asked for a motion to convene Executive Session to:  1) Consider and approve Executive Session minutes from the Commission meeting on 5/14/19; 2) Pursuant to HRS §92-5(a)(4), to consult with the Commission’s attorneys on questions and issues pertaining to the Commission’s powers, duties, privileges, immunities, and liabilities regarding McGee v. Campaign Spending Commission and Friends of Calvin Say; and 3) Pursuant to HRS §92-5(a)(2), review and consider Commission staff performance and compensation.

Commissioner Goodenow moved to convene in Executive Session for the aforementioned reason(s).  Motion seconded by Commissioner Lum.  Motion carried (5-0).

*Public Session reconvened at 11:12 a.m.

Vice Chair Shoda moved to adjourn the meeting.  Motion seconded by Commissioner Goodenow.  Motion carried (5-0).

Meeting adjourned at 11:12 a.m.

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