Campaign Spending Commission

Campaign Spending Commission
Leiopapa A Kamehameha Building, Room 204
March 11, 2015
10:00 a.m.

Commissioners Present:
William Snipes, Tina Gomes, Eldon Ching, Gregory Shoda, Adrienne Yoshihara

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

Call to Order:
Meeting convened at 10:20 a.m. with Chair Snipes presiding.

Consideration and Approval of Minutes of 12/17/14 Meeting as amended on 2/11/15:
Commissioner Ching moved to approve the minutes of December 17, 2014 as amended.  Motion seconded by Commissioner Yoshihara.  Motion carried (4-0).

Consideration and Approval of Minutes of 2/11/2015 Meeting:
Chair Snipes moved to approve the minutes of February 11, 2015.  Motion seconded by Commissioner Shoda.  Motion carried (4-0).

New Business
Docket Nos. 15-55 and 15-56
Chair Snipes announced that because documents were submitted this morning for consideration by the complainant, which have not been reviewed by the Commissioners, discussion on Docket Nos. 15-55 and 15-56 would be placed at the end of the agenda.

Docket No. 15-91 – In Re the Matter of Terez Amato and Friends of Terez Amato
Executive Director Izumi-Nitao reported that a complaint was filed alleging the late filing of the Supplemental Report and the nonpayment of the assessed fine of $50.

Respondent has been informed in a letter from Commission staff of the violation.  She has been notified of today’s meeting and has been provided a copy of the complaint.  Respondent called this morning, and informed staff that she intends to pay the fine.

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 and assess a fine of $50.

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. 15-91. Motion seconded by Commissioner Yoshihara.  Motion carried (4-0).

Executive Director Izumi-Nitao asked to update the Commission concerning a 3/10/15 Star Advertiser article which reported that the Attorney General’s Office did not have Governor Ben Cayetano’s complaint against Pacific Resource Partnership PAC and John White alleging campaign finance violations (i.e., Docket No. 15-15 which was heard at the 10/22/14 and 11/19/14 Commission meetings).  She informed the Commission that the article was wrong, that staff timely referred the complaint to the Attorney General’s Office for prosecution pursuant to the Commission’s decision, that she confirmed with the Attorney General’s Office that the matter had been referred, and that the Attorney General’s Office will be retracting their statement with the Star Advertiser.

Docket No. 15-92 – In Re the Matter of Rosebella Martinez, Kimberly Okamura, and Friends of Rose Martinez
Docket No. 15-93 – In Re the Matter of Hawaii Independent Party and JoAnn Trask
Executive Director Izumi-Nitao reported that these complaints were filed alleging the late filing of the Supplemental Report and the nonpayment of the assessed fines.

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 been provided a copy of the complaint.  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 and assess a fine as stated in each of the complaints (i.e., $21.75 in Docket No. 15-92 and $50 in Docket No. 15-93).

Chair Snipes reiterated his concerns regarding matters that result in fines of less than a certain dollar amount, and suggested these matters be deferred until the next meeting agenda.

Chair Snipes moved to defer Docket Nos. 15-92 and 15-93 until the April meeting.
No second – Chair withdrew the motion

Discussion ensued regarding how these matters should be handled.  Chair Snipes stated that these matters should be deferred until time allows and that matters of higher priority should be handled first.  Commissioner Ching stated that he did not disagree with Chair, but that he needed time to think the matter through.

Commissioner Ching moved to make a preliminary determination that probable cause exists that a violation has been committed and to accept the settlement terms and amounts stated in each of the proposed conciliation agreements.  Motion seconded by Commissioner Yoshihara.  Motion carried (3-1) with Chair Snipes opposing.

Vice-Chair Gomes arrived at 10:50 a.m.

Docket No. 15-94 – In Re the Matter of Julia Allen, Valrie Griffith, and Committee to Elect Julia Allen
Present – Michael Palcic, Chairperson
Valrie Griffith, Treasurer
Executive Director reported that a complaint was filed alleging the late filing of the Supplemental Report and the nonpayment of the assessed fine.

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 been provided a copy of the complaint.  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 and assess a fine of $200.

Mr. Palcic stated that he is the committee chairperson and approves all activity of the committee and that in 10 years of filing reports, this is the committee’s first late report.  He explained that he encountered problems with the Candidate Filing System when he tried to file the report.  Using a screenshot of the screen he had a problem with, he explained what he did.  When the fine notice was received, he asked for a fine waiver but was informed that staff can only offer a reduction in the form of a conciliation agreement.  He further stated that he does not agree on how the fine was calculated.  Citing HRS §11-337, he argued that a payment against a previous unpaid expenditure should not be included as an expenditure when a fine is calculated.

Associate Director Baldomero addressed the screenshot presented and the fine calculation.  For the screenshot he explained that the Candidate Filing System recommends a certain resolution and if a user uses a different resolution you will see what Mr. Palcic did.   When a report is filed late, the fine is calculated as follows: $50 for the first 7 days, not to exceed $200 per day thereafter; provided that the fine shall not to exceed 25% of contributions or expenditures, whichever is greater.  In response to Mr. Palcic’s claim that the payment he made in this reporting period against an unpaid expenditure incurred in a previous reporting period should not be used for computing the fine, Associate Director Baldomero cited HRS §11-302 which states that an expenditure is defined as any purchase or transfer of money or anything of value or any payment incurred or made.  Further, HRS §11-340 requires consideration of the total amount of expenditures made during the reporting period.

Executive Director Izumi-Nitao stated that a conciliation agreement was offered but that Respondents were not interested in conciliating.

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. 15-94.  Motion seconded by Commissioner Yoshihara.  Motion carried unanimously.

Rida Cabanilla asked Chair Snipes to address Docket Nos. 15-55 and 15-56 because she has witnesses present.  Chair Snipes stated that Docket Nos. 15-55 and 15-56 would therefore be decided on documents the Commission already has, and asked that the documents submitted this morning be returned to Complainant Cabanilla.

Docket No. 15-55 – In Re the Matter of Rida Cabanilla vs. Matthew LoPresti
Present – Rida Cabanilla, Complainant
Stephanie Jeremiah
Complainant Rida Cabanilla stated the complaint was filed because Respondent LoPresti violated HRS §§11-423 and 11-428 by exceeding the expenditure limit and receiving public funds which he was not entitled to receive because he exceeded the expenditure limit.  He also did not report an in-kind contribution, printing expenses, expense for an on-line ad, and expenses for other mailers.  Complainant Cabanilla is asking the complaint be referred for prosecution.

General Counsel Kam stated that Respondent LoPresti reported all of the expenditures for his campaign mailers.  There was no evidence that Respondent LoPresti paid for other mailers that were not reported.  Also, Respondent LoPresti did report the expenditures for the on-line ads.

Stephanie Jeremiah, one of Complainant Cabanilla’s witnesses who is a concerned citizen in Respondent LoPresti’s district, submitted 10 mailers that she received from the Respondent LoPresti, 4 of which were for the general election.

General Counsel Kam took the 10 mailers from Ms. Jeremiah.  After a brief review, General Counsel Kam stated that at least 4 mailers were for the General Election so would not be relevant to Complainant Cabanilla’s complaint.

Chair Snipes deferred the matter until the April meeting.

Docket No. 15-56 – In Re the Matter of Rida Cabanilla vs. Service Printers Hawaii and Matthew LoPresti
Present – Rida Cabanilla, Complainant
Randall Yamamoto
Seth Buckley, attorney representing Service Printers
Bruce Inouye, Service Printers

Complainant Rida Cabanilla stated that the complaint was filed because the Respondent LoPresti failed to report expenses for artwork and design of mailers, and that Respondent Service Printers gave Respondent LoPresti a discount which should have been reported as an in-kind contribution by Respondent LoPresti and Respondent Service Printers as a noncandidate committee.

Bruce Inouye from Service Printers stated that the mark-up for both candidates were the same and that the print job for each was not the same.

General Counsel Kam reported that after review of invoices and meetings with representatives of Service Printers, he found no evidence that any discount was given to Respondent LoPresti nor evidence that Respondent Service Printers discriminated against Complainant Cabanilla.  General Counsel Kam further stated that differences between Complainant Cabanilla’s printing job and Respondent LoPresti’s printing job resulted in the different price per piece.  Respondent LoPresti provided camera-ready artwork, Complainant Cabanilla did not; Respondent LoPresti had a change order that lowered the cost of the job; Respondent LoPresti’s run was for 28,000 pieces versus Complainant Cabanilla’s 7,000 pieces; Complainant Cabanilla ordered 100 lb. stock and drilling while Respondent LoPresti ordered 80 lb stock and no drilling; and finally, Complainant Cabanilla ordered that her mailers be boxed and delivered to her while Respondent LoPresti’s mailers were placed on pallets for pick-up.

Chair Snipes moved to dismiss the complaint.  Motion seconded by Commissioner Yoshihara.

Mr. Randall Yamamoto, Vice President for Service Printers until he was released from the job and a witness for Complainant Cabanilla, voiced concern with the difference in cost because the candidates were running for the same seat in the same district.  He then explained how the pricing was done when he was with the company.  It was pointed out that the process has since changed.

Complainant Cabanilla questioned the cost difference between what she was charged and what Respondent LoPresti was charged.  Seth Buckley responded that there were at least 6 reasons for the cost difference between the jobs.

Chair Snipes moved to accept staff’s recommendation to dismiss the complaint.  Motion seconded by Commissioner Yoshihara.

Mr. Yamamoto and Complainant Cabanilla again voiced concern over the cost difference and questioned why the difference was so much.

Chair asked for a vote on motion to dismiss – Vote taken – Motion carried unanimously.

Docket No. 15-95 – In Re the Matter of Rex Saunders and Citizens for Saunders
Executive Director Izumi-Nitao reported that a complaint was filed alleging the late filing of the Supplemental Report and nonpayment of the assessed fine of $200.

Respondent Saunders moved to Virginia 7 years ago, but he intends to run again in the State of Hawaii.  A conciliation agreement was not an option because he had prior late reports in 2004, 2005, and two in 2007.  He currently has a $7,283.87 deficit which is his own monies.

On 2/25/15, Respondent Saunders submitted a letter, Exhibit D, requesting a conciliation agreement or that the fine not be enforced.

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 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 No. 15-95.  Motion seconded by Chair Snipes.  Motion carried unanimously.

Docket No. 15-96 – In Re the Matter of Edwin Miranda, Kimo Dale Miranda, and Friends of Edwin L.P. Miranda
Executive Director reported that a complaint was filed alleging the late filing of the Supplemental Report and the nonpayment of the assessed fine of $200.

In a prior docket for not filing the Preliminary General, Final Election Period, and Supplemental Reports in the 2012 election, an administrative fine of $1,500 was assessed.  The Commission reconsidered that decision because it was determined that Respondent was a $1,000 or less candidate and therefore only needed to file the Final Election Period and Supplemental Reports.  The fine was reduced to $200 for each report, but if the Respondent terminated his registration within 30 days, the fine would not be enforced.  Respondent terminated his committee’s registration and the fine was not enforced.

On 2/23/15, Commission staff informed Respondent Miranda that a conciliation agreement could not be offered because of prior late reports.

On 3/4/15, Respondent Miranda submitted a letter requesting that the fine not be enforced or that the fine be paid pursuant to a payment plan.

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 and assess a fine of $200.

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 No. 15-96.  Motion seconded by Chair Snipes.  Motion carried unanimously.

Taken out of order –

Docket No. 15-100 – In Re the Matter of Nicole Ferguson, Julie Fox, and Friends of Nicole Ferguson
Present – Nicole Ferguson, Respondent

Executive Director reported that a complaint was filed alleging Respondents’ failure to file the Supplemental Report.

In Docket No. 15-75, a Preliminary Determination of Probable Cause was issued for not filing the Final Election Period Report and an administrative fine of $500 was assessed.  Respondent Ferguson has complied with the filing of the Final Election Report and payment of the $500 fine.

Regarding the current docket, Respondent Ferguson submitted a letter requesting that the Commission not enforce or reduce the fine.

Respondent Ferguson stated that since the end of the election, she and her treasurer had not been in communication with each other and that neither of them had checked the post office box. So, she was not aware of the notices and complaints, but when she became aware of the notices and complaints, she immediately contacted Commission staff and made every effort to promptly bring her committee into compliance including filing the outstanding reports.  The fine for the Final Election Period Report was paid with remaining campaign and personal funds.  With compliance of the previous violation and with the intent to terminate committee’s registration, she asked that the fine of $750 not be enforced.

Chair Snipes moved to make a preliminary determination that probable cause exists that a violation has been committed and assess a fine of $500, subject to termination of the candidate’s committee registration.  Motion seconded by Commissioner Shoda.  Vote taken. Motion did not pass.

Commissioner Ching moved to make preliminary determination that probable cause exists that a violation has been committed and reduce the fine to $100 in consideration that her prompt actions upon learning of the committee’s noncompliance were mitigating factors, subject to termination of the candidate’s committee registration.  Motion seconded by Vice-Chair Gomes.  Vote taken (4-1) Motion carried with Commissioner Shoda opposing.

Docket No. 15-97 – In Re the Matter of Tracy Arakaki, Karen Arakaki, and Friends of Tracy Arakaki
Docket No. 15-99 – In Re the Matter of Richard Fale, Erin Fale, and Friends of Richard Fale
Docket No. 15-102 – In Re the Matter of Larry Gering and Committee to Elect Larry Gering
Docket No. 15-103 – In Re the Matter of Beau Hawkes, Vincent Armijo, and Beau E. Hawkes
Docket No. 15-104 – In Re the Matter of Henry Kahula, Jr., Darnelle Kahula, and Henry Kahula for Council
Docket No. 15-105 – In Re the Matter of Thornton Kekipi, Nicholas Francisco, and Thornton Keikialoha Kekipi
Docket No. 15-106 – In Re the Matter of Curtis Hendrix Lake and C. Hendrix Lake
Docket No. 15-107 – In Re the Matter of Christopher Stump and Friends of Chris Stump
Docket No. 15-108 – In Re the Matter of John Waihee, Francine Murray, and Kokua Waihee
Docket No. 15-109 – In Re the Matter of Nelson Waikiki, Jr.
Docket No. 15-110 – In Re the Matter of Stuart Gregory and If You Didn’t Vote for Me Then You Paid Too Much

Executive Director Izumi-Nitao reported that a complaint was filed alleging that each of the above-mentioned Respondents failed to file the Supplemental Report.

Respondents have been informed in a letter from Commission staff of the violation, they have been notified of today’s meeting, and they have been provided a copy of the complaint.  Staff recommended 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 and assess a fine as stated in each of the dockets (i.e., $750 in Docket No. 15-97, $500 in Docket No. 15-99, $750 in Docket No. 15-102, $750 in Docket No. 15-103, $750 in Docket No. 15-104, $750 in Docket No. 15-105, $750 in Docket No. 15-106, $500 in Docket No. 15-107, $500 in Docket No. 15-108, $750 in Docket No. 15-109, and $500 in Docket No. 15-110).

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 each of the dockets.  Motion seconded by Commissioner Ching.  Motion carried unanimously.

Docket 15-111 – In Re the Matter of Hanalei Aipoalani, Angelita Aipoalani, and Friends of Hanalei
Executive Director Izumi-Nitao reported that a complaint was filed alleging the Respondents’ failure to file the Supplemental Report.

Respondents have been informed in a letter from Commission staff of the violation, they have been notified of today’s meeting, and they have been provided a copy of the complaint.

Executive Director Izumi-Nitao reported that Respondents have filed the Supplemental Report, but they have not paid the fine, and they have indicated that they plan to terminate the committee’s registration.

Staff recommended 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 and assess a fine of $500.

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. 15-111.  Motion seconded by Commissioner Shoda.  Motion carried unanimously.

Docket No. 15-112 – In Re the Matter of George Fontaine, Richard Kehoe, and Friends of George Fontaine
Docket No. 15-113 – In Re the Matter of Debbie Hecht and Friends of Debbie Hecht
Docket No. 15-114 – In Re the Matter of Creighton Higa and Friends of Creighton Pono Higa
Docket No. 15-115 – In Re the Matter Noralyn Pajimola, Rudy Pajimola, and Friends of Noralyn Pajimola
Docket No. 15-116 – In Re the Matter of Adam Reeder, Melissa Reeder, and Friends of Adam Reeder
Docket No. 15-117 – In Re the Matter of Cynthia Rezentes and Friends of Cynthia Rezentes
Docket No. 15-118 – In Re the Matter of Ronald Strode, Antasia Keliikoa, and Ohana to Elect Ronald Strode

Executive Director Izumi-Nitao reported that a complaint was filed alleging that each of the above-mentioned Respondents failed to file the Supplemental Report.

Respondents have been informed in a letter from Commission staff of the violation, they have been notified of today’s meeting, and they have been provided a copy of the complaint.  Staff recommended 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 and assess a fine as stated in each of the dockets (i.e., $500 in Docket No. 15-112, $500 in Docket No. 15-113, $500 in Docket No. 15-114, $1,000 in Docket No. 15-115, $750 in Docket No. 15-116, $500 in Docket No. 15-117, and $500 in Docket No. 15-118).

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 each of the dockets.  Motion seconded by Vice-Chair Gomes.  Motion carried unanimously.

Docket No. 15-119 – 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 Supplemental Report and the nonpayment of the assessed fine of $200.

Respondents have been informed in a letter from Commission staff of the violation, they have been notified of today’s meeting, and they have been provided a copy of the complaint.   Staff recommended 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 and assess a fine of $200.

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 No. 15-119.  Motion seconded by Chair Snipes.  Motion carried unanimously.

Docket No. 15-120 – In Re the Matter of Chelsea Yagong, Kamlin Pung, and Friends of Chelsea Yagong
Executive Director Izumi-Nitao reported that a complaint was filed alleging the Respondents’ failure to file the Supplemental Report.

Respondents have been informed in a letter from Commission staff of the violation, they have been notified of today’s meeting, and they have been provided a copy of the complaint.  On 3/6/15, Respondent filed the Supplemental Report and staff received a letter from Respondent Yagong asking that the fine be reduced, an extension of time to pay the fine, or waiver of the fine. Respondent indicated that they are planning to terminate their registration.

Staff recommended 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 and assess a fine of $500.

Commissioner Shoda moved to make a preliminary determination that probable cause exists that a violation has been committed and reduce the fine to $100 and accept terms as stated in Docket No. 15-120.  Motion seconded by Commissioner Ching.  Motion carried unanimously.

Docket No. 15-121 – In Re the Matter of Kanohowailuku Helm, Lindy Helm, and Kanohowailuku Helm State Senate
Executive Director Izumi-Nitao reported that a complaint was filed alleging the late filing of the Supplemental Report and the nonpayment of the assessed fine of $200.

Respondents have been informed in a letter from Commission staff of the violation, they have been notified of today’s meeting, and they have been provided a copy of the complaint.   Staff recommended 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 and assess a fine of $200.

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. 15-121.  Motion seconded by Commissioner Yoshihara.  Motion carried unanimously.

Docket No. 15-122 – In Re the Matter of Shaylene Iseri-Carvalho, Kerrileen Lizama, and Friends of Shaylene Iseri-Carvalho
Executive Director Izumi-Nitao reported that a complaint was filed alleging the late filing of the Supplemental Report and the nonpayment of the assessed fine of $200.

Respondents have been informed in a letter from Commission staff of the violation, they have been notified to today’s meeting, and they have been provided a copy of the complaint.   Payment of the fine was received on 3/9/15.  Staff recommended that the complaint be dismissed due to compliance.

Vice-Chair Gomes to dismiss the complaint. Motion seconded by Chair Snipes.  Motion carried unanimously.

Docket No. 15-123 – In Re the Matter of Rebecca Leau, Arlene Larrna, and Friends of Becky Leau
Executive Director Izumi-Nitao reported that a complaint was filed alleging the late filing of the Supplemental Report and the nonpayment of the assessed fine of $200.

Respondents have been informed in a letter from Commission staff of the violation, they have been notified of today’s meeting, and they have been provided a copy of the complaint.   Staff recommended 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 and assess a fine of $200.

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 No. 15-123.  Motion seconded by Commissioner Yoshihara.  Motion carried unanimously.

Docket No. 15-124 – In Re the Matter of Maui Contractors Association Political Action Committee and Thomas Cook
Executive Director Izumi-Nitao reported that a complaint was filed alleging the late filing of the Supplemental Report and the nonpayment of the assessed fine of $200.

Respondents have been informed in a letter from Commission staff of the violation, they have been notified of today’s meeting, and they have been provided a copy of the complaint.  On 3/11/15, Respondent Cook submitted a letter asking the Commission for lenience.  Respondents have had 9 prior late reports resulting in 2 complaints.  Staff recommended 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 and assess a fine of $200.

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. 15-124.  Motion seconded by Vice-Chair Gomes.  Motion carried unanimously.

Proposed Conciliation Agreements
Executive Director Izumi-Nitao reported that the following proposed conciliation agreement are a result of investigations initiated in January and February 2015 pursuant to HRS §11-314(7) to determine whether there has been a violation of the Hawaii campaign spending laws.

Proposed Conciliation Agreement No. 15-55 – In Re the Matter of Friends of Natalie Iwasa
Proposed Conciliation Agreement No. 15-56 – In Re the Matter of Friends of May Mizuno
Proposed Conciliation Agreement No. 15-57 – In Re the Matter of Friends of Suzanne Chun Oakland
Proposed Conciliation Agreement No. 15-58 – In Re the Matter of Friends of Luella Costales
Proposed Conciliation Agreement No. 15-59 – In Re the Matter of Friends of Kalei Akaka
Proposed Conciliation Agreement No. 15-60 – In Re the Matter of Friends for Menor
Proposed Conciliation Agreement No. 15-61 – In Re the Matter of Friends for Lahilahi
Proposed Conciliation Agreement No. 15-62 – In Re the Matter of Friends for Dudley
Proposed Conciliation Agreement No. 15-63 – In Re the Matter of Friends of Clayton Hee
Proposed Conciliation Agreement No. 15-64 – In Re the Matter of Friends of Clift Tsuji
Proposed Conciliation Agreement No. 15-65 – In Re the Matter of Friends of Tiffany Edwards Hunt
Proposed Conciliation Agreement No. 15-66 – In Re the Matter of Carl Strouble

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

Executive Director Izumi-Nitao stated that Respondent Iwasa (Proposed CA No. 15-55) submitted a letter thanking the Commission for their consideration concerning the conciliation agreement.

Commissioner Shoda 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 Commissioner Yoshihara.  Motion carried unanimously.

Old Business
Docket No. 15-01, Docket No. 15-23, and Docket No. 15-69 – In Re the Matter of William Halversen
Executive Director Izumi-Nitao reported that a preliminary determination of probable cause was issued and fines were assessed as follows:

• Docket No. 15-01 – Failure to Register and File the Organizational Report ($100 fine) and Failure to File 1^st Preliminary Primary Report ($500 fine) at the 7/31/14 Commission meeting
• Docket No. 15-23 – Failure to File 2^nd Preliminary Primary ($500 fine) and Final Primary Report ($500 fine) at the 9/10/14 Commission meeting
• Docket No. 15-69 – Failure to File Final Election Period Report ($500 fine) at the 1/14/15 Commission meeting

Staff has since learned and obtained confirmation from Respondent that he was a $1,000 or less candidate for the 2014 election.  As such, by law, Respondent need only file the Final Election Period Report.  Staff recommended the Commission reconsider its prior orders and recommended dismissal of Docket No. 15-01, Count II – Failure to File the 1^st Preliminary Primary Report (only) and Docket No. 15-23 – Failure to File the 2^nd Preliminary Primary Report and Final Primary Report.

Chair Snipes moved to accept staff’s recommendation to reconsider and dismiss Docket No. 15-01, Count II – Failure to File the 1^st Preliminary Primary Report and Docket No. 15-23 – Failure to File the 2^nd Preliminary Primary Report and Final Primary Report. Motion seconded by Commissioner Yoshihara.  Motion carried unanimously.

Based on discussion during Executive Session on 2/11/15, staff recommended that with respect to the remaining charges, no further action be taken regarding Respondent’s failure to register and file the Organizational Report in Docket No. 15-01, Respondent’s failure to file the Final Election Period Report in Docket No. 15-69, and putting Respondent’s file on inactive status.

Chair Snipes moved to accept staff’s recommendation that no further action be taken regarding Respondent’s failure to register in Docket No. 15-01 and Respondent’s failure to file the Final Election Period Report in Docket No. 15-69 and putting Respondent’s file on inactive status.  Motion seconded by Commissioner Ching.  Motion carried with Vice-Chair Gomes abstaining.

Consideration and Discussion of Commission Legislation and/or Other Campaign Finance Related Bills/Resolutions for the 2015 Legislative Session
General Counsel Kam reported that the following bills are still moving:

SB No. 452, SD 1
The Commission’s bill amends HRS §11-334(a)(4) to require candidate committees to file the January 31 supplemental report regardless of whether it is after an election year.

3/5/15 Bill transmitted to House

SB No. 202, SD 1
Amends HRS §11-335 to require noncandidate committees to include identification of a ballot issue being advocated for or against.  Commission staff supported the intent of this bill but questioned whether it was necessary because present laws require ballot issue committees to state in their organizational report if they were formed to support or oppose a specific ballot question and to describe the question.

3/10/15 Bill transmitted to House

SB No. 508, SD 1
Amends HRS §11-336(a) to require noncandidate committees to file preliminary reports on October 1^st of a general election year, rather than 10 days prior to a general election.  Commission staff noted that the impact of this bill is that there is earlier disclosure but less disclosure as the general election approaches.

The Senate Judiciary and Labor Committee heard the bill on 2/6/15 and recommended that the measure pass with amendments.  Specifically, the bill was amended to add another report for better disclosure (i.e., a report due on October 1^st and a report due 10 days prior to a general election).

3/10/15 Bill transmitted to House

SB No. 577, SD 2
Amends HRS chapter 11 to have fines be deposited into the Hawaii Election Campaign Fund, adds a new subsection (b) to HRS §11-314 to have the general fund pay the Commission’s operating expenses including staff salaries and fringe benefits, and amends HRS §11-421(c) to authorize use of Hawaii Election Campaign Fund moneys for investigation expenses.  Commission staff supported the intent of this bill.

Senate Ways and Means Committee took out the funding of Commission’s operating expenses.  They replaced the funding with requiring the Commission to do a sustainability study.

3/10/15 Bill transmitted to House

SB No. 654, SD 1
Amends HRS §11-353(d) relating to anonymous contributions to reduce the threshold at which the provisions would not apply from $500 to $100 received from 10 or more persons at the same political function.  Commission staff supported this bill.

The Senate Judiciary and Labor Committee heard the bill on 2/6/15 and recommended that the measure pass with amendments.

3/10/15 Bill transmitted to House

SB No. 657, SD 1
Adds a new section to HRS chapter 11 to require legislators to file a supplemental report within 10 days of the conclusion of a special session of the legislature that covers the period from the last required reporting date to the conclusion of the special session.

3/10/15 Bill transmitted to House

SB No. 1344, SD 1
Amends HRS §11-323(a) to require noncandidate committees making only independent expenditures to disclose the true source of funding of its contributions that are more than $10,000.  In the alternative, the committee could acknowledge that its contributor is not subject to any state or federal disclosure reporting requirements regarding the source of the contributor’s funding.

Commission staff supported the intent of this bill.  Executive Director Izumi-Nitao noted that this bill addresses the political spending of dark money groups which include 501(c)(4) and 501(c)(6) non-profit organizations and asked Commissioner Yoshihara to look at these organizations given her expertise.

3/10/15 Bill transmitted to House

HB No. 1491, HD 2
Amends HRS §11-323(a) to require noncandidate committees making only independent expenditures to report whether its contributors are subject to disclosure reporting requirements and provide a website for access to the contributors’ and recipients’ information.

3/10/15 Bill transmitted to Senate

Report from Executive Director
Report on Compliance of Filing Timely Disclosure Reports
Executive Director Izumi-Nitao reported that there were no new updates on prior reports and that staff is in discussion with the Attorney General’s Office in pursuing First Circuit Court applications for those committees that are noncompliant with Commission orders.

Supplemental Report (due on 2/2/15)
-376 total candidate committees were required to file this report

• As of 3/11/15, 20 did not file

-238 total noncandidate committees were required to file this report

• As of 3/11/15, 4 did not file

Vice-Chair Gomes 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 Chair Snipes.  Motion carried unanimously.

Public Session reconvened – 1:10 p.m.

Next Meeting:
Scheduled for Wednesday, April 15, 2015 at 10:00 a.m.

Chair Snipes moved to adjourn meeting.  Motion seconded by Vice-Chair Gomes.  Motion carried unanimously.  Meeting adjourned at 1:10 p.m.