Campaign Spending Commission

Campaign Spending Commission
Leiopapa A Kamehameha Building, Room 204
June 8, 2011
10:00 a.m.

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

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

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

Consideration of Minutes:
Commissioner Gabrio moved to approve the minutes of May 11, 2011.  Motion seconded by Vice-Chair Weaver.  Motion carried unanimously.

Vice-Chair Weaver moved to amend agenda order to discuss New Business before Old Business.  Motion seconded by Commissioner Gabrio.  Motion carried unanimously.

New Business:
Executive Director Izumi-Nitao stated that the following proposed conciliation agreement is a result of an investigation that she initiated in May 2011 pursuant to HRS section 11-314(7) to determine whether there has been a violation of the Hawaii campaign spending law.

The Respondent had been notified of the meeting, had been provided a copy of the proposed conciliation agreement, and waived the opportunity to explain otherwise respond to the notice of violation.  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 amount stated in the proposed agreement.

Proposed Conciliation Agreement 11-13 – In Re the Matter of Friends of Netra Halperin
Proposed agreement is offered to settle a claim regarding the late filing of a Supplemental Report in violation of HRS sections 11-334 and 11-340.

Commissioner Gabrio moved to find probable cause exists that Respondent committed a violation and to accept proposed conciliation agreement.  Motion seconded by Vice-Chair Weaver.  Motion carried unanimously.

Docket No. 11-10 – In Re the Matter of Richard Belford and Friends of Scott Belford
Complaint for failure to file two Supplemental reports.  Respondent has moved out-of-state.  General Counsel Kam recommended that the complaint be withdrawn.

Vice-Chair Weaver moved to withdraw the complaint.  Motion seconded by Commissioner Gabrio.  Motion carried unanimously.

Docket No. 11-11 – In Re the Matter of Karen Awana and Friends of Karen Awana
Complaint for the late filing of the 1^st Preliminary Primary Report, 2^nd Preliminary Primary Report, Final Primary Report, Supplemental Report, and for the late and deficient filing of the Final Election Period Report.  All reports are in connection with the 2010 election.  General Counsel Kam recommended that the Commission make a preliminary determination of probable cause that a violation has been committed and to accept relief as stated, $500 each for the failure to file the 1^stand 2^nd Preliminary Primary and Supplemental Reports, and $200 each for the late filing of the Final Primary and Final Election Period Reports, for a total administrative fine of $1,900.

Vice-Chair Weaver moved to find probable cause exists that Respondent committed a violation and to accept relief as stated in the complaint.  Motion seconded by Commissioner Gabrio.  Motion carried unanimously.

Docket No. 11-12 – In Re the Matter of Earl Winfree and Earl Winfree Candidate Committee
Complaint for failure to file the Final Election Period and Supplemental Reports.  General Counsel Kam recommended that the Commission make a preliminary determination of probable cause that a violation has been committed and to accept relief as stated, $200 each for late filing of the Final Election Period and Supplemental Reports, for a total administrative fine of $400.

Vice-Chair Weaver moved to find probable cause exists that Respondent committed a violation and to accept relief as state in the complaint.  Motion seconded by Commissioner Gabrio.  Motion carried unanimously.

Docket No. 11-13 – In Re the Matter of Michael Molina, Friends of Mike Molina and Cielo Molina
Complaint for the failure to file two Supplemental Reports.  General Counsel Kam recommended that the Commission make a preliminary determination of probable cause that a violation has been committed and to accept relief as stated, $200 for the late filing of the first Supplemental Report and $437.71 for the second Supplemental Report, for a total administrative fine of $637.71. 

Vice-Chair Weaver moved to find probable cause exists that Respondent committed a violation and to accept relief as stated in the complaint.  Motion seconded by Commissioner Gabrio.  Motion carried unanimously.

Report from Executive Director:
Update and Report on Failure to File Reports, Unpaid Fines & Subsequent Proceedings
-To date: Failure to File – 8 / Unpaid Fines – 2 / Circuit Court Enforcement – 2

Status of Referrals of Complaints to Prosecuting Authority Offices
-Rod Tam – Attorney General’s Office charged Rod Tam with eight counts of criminal campaign spending violations on 6/7/11.  Mr. Tam pled to the charges and sentencing scheduled for 8/16/11.

CSC June 2011 Bulletin
Reviewed items that will be in the newsletter.

Update from Boards & Commissions concerning Appointment of New Commissioners
Have not yet heard on the appointment of new members.

Old Business:
Docket No. 10-06 – Democratic Party of Hawaii v. Republican Governors Association and Friends of Duke Aiona

Parties Present:  Tony Gill representing Democratic Party of Hawaii
Terry Thomason representing Friends of Duke Aiona

General Counsel Kam stated that the Democratic Party of Hawaii filed a complaint alleging that Friends of Duke Aiona (“Aiona”) and Republican Governors Association (“RGA”) improperly coordinated advertising during Aiona’s 2010 campaign for governor.  Matter was continued for further briefing and made available to commissioners.  Findings presented at the May meeting, expenditures were independent and there was no evidence of coordination with the candidate, no direct contact with the Aiona committee, and RGA did not make any contributions to the Aiona committee and did not have to register as a noncandidate committee .  Staff recommendation is that the complaint be dismissed.

Mr. Terry Thomason, representing Friends of Duke Aiona, stated that they would stand on their written submissions.

Mr. Tony Gill stated that complaint was brought before the Commission because they believed that it was a clear case of coordination, and that if the Commission accepts staff recommendation, then clear boundaries need to be set.

Commissioner Robb moved to dismiss the complaint.  Motion seconded by Vice-Chair Weaver.  Motion carried unanimously.

Corporate Reporting System
As noted at the April meeting the Corporate Reporting System was launched on March 31, 2011 and there are currently three corporations registered to file reports using the system.  Information regarding corporations now having to file reports is on the Commission’s website and there will be an article in the upcoming newsletter.

Selection of Commission Chair and Vice-Chair
Chair Kuramoto moved to elect Vice-Chair Weaver as the Chair and Commissioner Robb as the Vice-Chair.  Motion seconded by Commissioner Gabrio.  Motion carried unanimously.

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

Public session reconvened at 10:50 a.m.

Next Meeting:
Scheduled for Wednesday, July 13, 2011 at 10:00 a.m.

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

Meeting adjourned at 10:53 a.m.