Campaign Spending Commission

Campaign Spending Commission Meeting
Leiopapa A Kamehameha Building, Room 204
March 12, 2008
10:00 a.m.

Members Present:
Paul Kuramoto, Steven Olbrich, Gino Gabrio
Excused – Dean Robb, Michael Weaver

Staff Present:
Barbara Wong, Tony Baldomero, Grant Tanimoto, Ellen Kojima

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

Consideration of Minutes:
Commissioner Gabrio moved to accept the minutes of February 13, 2008.  Motion seconded by Commissioner Olbrich.  Motion carried.

Old Business:
Draft Advisory Opinion 08-01 / Rescind Advisory Opinion 03-05
Draft Advisory Opinion 08-01 rescinds AO 03-05 and explains that an “ordinary and necessary” expense is one that is a usual expense, bears a direct relation to the office, and is reasonable.

Draft AO 08-01 also clarifies permissible and impermissible uses of campaign funds for “ordinary and necessary” expenses.

Discussion on whether legislative opening day expenses should be considered an “ordinary and necessary” expense. Commissioners felt opening day and inaugural expenses are similar and if an inaugural expense is not considered an “ordinary and necessary” expense than opening day expenses should also not be considered an “ordinary and necessary” expense.

Commissioner Olbrich suggested the draft should also state the criteria for what is not considered “ordinary and necessary” expenses.

Staff to make changes discussed today in the draft, with further discussion deferred until the May meeting.

New Business:
No new business

Communication to Commission:
Legislative Update
To date the following bills are still moving:
SB 2202 – Partial public financing for prosecuting attorney.  Passed by Senate Judiciary and Labor Committee and the Ways and Means Committee and transmitted to the House.

SB 2204, SD 1 – Clarifies electronic filing, “ordinary and customary”, commission shall not issue rules through the issuance of an advisory opinion, corporation or company use of funds from its own treasury for contributions, who is subject to administrative fines for violations, and doubles the amount a candidate may give to a community or charitable organization.  Passed with amendments by the Senate Judiciary and Labor Committee.

SB 2579, SD 2, H.D. 1 – Provides for increased fines for late reports, technical clean-up of County Clerk filing provisions due to electronic filing, increases the tax check-off from $2 to $3 for the Hawaii Election Campaign Fund, and provides for deposit of collected fines into the state general fund.  Passed with amendments by Senate Judiciary and Labor Committee, Ways and Means, and the House Judiciary Committee.

SB 2605 – Increases the election fund contribution amount from $2 to $3.  Bill was deferred by the House Judiciary and the text incorporated into SB 2579, S.D.2 H.D. 1.

HB 2656 – Adds reciprocal beneficiaries to the definition of “immediate family”.  Passed unamended by the House.

HB 661, HD 1 – Comprehensive public funding for elections.  Carryover bill from 2007.  Heard by the Senate Judiciary and Labor Committee on March 11, 2008.

Noncandidate Filing System Update
Tony Baldomero presented an overview of the development of the noncandidate filing system, as well as a schedule of benchmark deadlines for the project.  The training schedule was also reviewed.

Commissioner Gabrio moved to convene executive session to discuss personnel matters.  Motion seconded by Commissioner Olbrich.  Motion carried.

Public session reconvened.

Next Meeting:
Scheduled for Wednesday, April 9, 2008.

Commissioner Gabrio moved to adjourn meeting.  Motion seconded by Commissioner Olbrich.  Motion carried.

Meeting adjourned at 11:00 a.m.