Campaign Spending Commission

Campaign Spending Commission
Leiopapa A Kamehameha Building, Room 204
March 13, 2013
10:30 a.m.

Commissioners Present:
Michael Weaver, Tina Pedro Gomes, G. William Snipes, Eldon Ching, Gregory Shoda

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

Call to Order:
Meeting convened at 10:35 a.m. with Chair Weaver presiding.

Consideration of Minutes on 2/13/13:
Corrections – Under “Commissioners Present,” G. William Snipes should be noted as excused.

Commissioner Ching moved to approve the minutes of February 13, 2013 as amended.  Motion seconded by Commissioner Gomes.  Motion carried.  (ayes-Weaver, Gomes, Ching, Shoda / abstain-Snipes)

New Business
Executive Director Izumi-Nitao stated that the following proposed conciliation agreements are a result of investigations that she initiated in January 2013 pursuant to HRS §11-314(7) to determine whether there has been a violation of the Hawaii campaign spending laws.

Respondents have been notified in a letter of the fine that Commission staff computed as a result of their late filed report.   Further, they have been notified of today’s meeting, received a copy of the proposed conciliation agreement, and 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 the settlement amounts as stated in each of the proposed agreements.

Commissioners noted that each of the following proposed conciliation agreements had been reviewed and that they had no additional questions:

CA 13-63  In Re the Matter of Waikoloa Development Company
CA 13-65  In Re the Matter of Friends of Chelsea Yagong
CA 13-66  In Re the Matter of Friends of Daniel Holt

Vice-Chair Snipes moved that the Commission makes a preliminary determination that probable cause exists that violations have been committed and accept the settlement terms and amounts as stated in each conciliation agreement.  Motion seconded by Commissioner Gomes.  Motion carried unanimously.

Docket No. 13-22 – In Re the Matter of David Hamman and hammankauai.com
Executive Director Izumi-Nitao reported that a complaint was filed for the late filing of the Supplemental Report and failure to pay the fine.

Respondent Hamman is listed as the candidate and treasurer of this candidate committee called hammankauai.com.

On 2/1/13, staff informed Respondents by letter that the Supplemental Report was not filed.  The Supplemental Report was electronically filed on 2/7/13.  On 2/11/13, staff informed Respondents by letter of a $200 fine for the late filing of the report.  Staff received a call from Respondent Hamman that the fine was excessive.  Executive Director Izumi-Nitao informed Respondent that that the fine could not be reduced via a conciliation agreement due to two prior late reports, but that he could submit a letter to the Commission to seek a reduction which would be included in the complaint that would be set for the 3/13/13 Commission agenda.  The complaint was sent to the Respondents and they were informed that it was set to be heard at the Commission 3/13/13 meeting.  On 3/11/13, staff received Respondent Hamman’s letter seeking a fine reduction which was distributed to the Commissioners at the meeting.

Staff recommended that the Commission make a preliminary determination pursuant to HRS 
§11-405(a) that probable cause that a violation exist and assess a fine of $200.

Executive Director Izumi-Nitao reported that in speaking with Respondent Hamman he said that he could afford a lower fine and he also requested that his committee be put on inactive status.  Executive Director Izumi-Nitao informed Respondent that the campaign financing laws does not allow for inactive status.  Previous fines totaling $62.50 have been paid.

Commissioner Ching moved that the Commission make a preliminary determination that probable cause exists that a violation has been committed and assess an administrative fine of $100.  Motion seconded by Commissioner Gomes.  Motion carried unanimously.

Docket No. 13-27 – In Re the Matter of Inam Rahman and Friends of Rahman
General Counsel Kam reported that a complaint was filed for failure to file the Preliminary General-Special and Supplemental Reports and the failure to correct a substantially deficient Final Election Period Report.

Respondent Rahman was a candidate in the 2012 special election to fill a vacancy in the Honolulu City Council, District 6.  On 10/30/12, a letter was sent informing Respondent that the Preliminary General-Special Report had not been filed and that a fine would be imposed.  On 12/7/12, another letter was sent informing Respondent that the Final Election Period Report had not been filed and that a fine would be imposed.  On 12/20/12, the Respondent filed the Final Election Period Report but for the wrong reporting period.  On 1/24/13, a letter was sent reminding Respondent of his need to file the Preliminary General-Special Report and to correct the Final Election Period Report.  On 2/1/13, a Notice of Late Report was sent informing Respondent that the Supplemental Report was not timely filed and that a fine would be imposed.

Staff recommended that the Commission make a preliminary determination pursuant to HRS §11-405(a) that probable cause that violations exist, assess an administrative fine of $1,500 (i.e., $500 for each 2 unfiled report and for not correcting the Final Election Period Report ) and that the reports be filed and corrected within 2 weeks.

General Counsel Kam recently spoke with Respondent, who said that he will be filing the 2 reports and correcting the Final Election Period Report, but to date he has not filed or corrected the reports.

Commissioner Shoda moved that the Commission make a preliminary determination that probable cause exists that a violation has been committed and to assess an administrative fine of $1,500 and terms as stated in Docket No. 13-27.  Motion seconded by Commissioner Gomes.  Motion carried unanimously.

Consideration and Discussion of Commission Leadership
Chair Weaver, whose term will be expiring in June, led a discussion on when the selection of a new chair and vice chair should be done and how long they should serve in their positions.  He recommended that the leadership positions be decided at the May meeting with the new chair presiding over the June meeting.  It was expressed that the position of chair should be decided annually.  Chair Weaver stated that for consistency the person selected should serve at least 2 years because meeting business is different in an election and a non-election year.

Commissioner Gomes moved that a new chair and vice chair be selected at the May 8, 2013 meeting and that they serve for a 2-year period.  Motion seconded by Commissioner Ching.  Motion carried unanimously.

Selection of Commissioners to Attend Annual COGEL Conference
Chair Weaver led a discussion on staff and Commissioner attendance to the annual COGEL Conference.  Past practice depending on budget it has been 2 staff members – Executive Director and the Associate Director or General Counsel, and 2 Commissioners (the Chair and the next senior member).

It was expressed that it was not necessary for the Chair to attend every year and that there was value if more than 1 member or as many as possible could attend the meeting.

Commissioner Shoda moved that selection of Commissioners to attend the conference will be on rotation bases – based on seniority.  Motion seconded by Commissioner Ching.  Motion carried unanimously.

Docket No. 13-20 – In Re the Matter of Edwin Miranda, Michael John, and Friends of Edwin L.P. Miranda
Executive Director Izumi-Nitao reported that on 2/13/13 the Commission approved a Preliminary Determination of Probable Cause and assessed Respondents a fine of $1,500.  Respondents Edwin Miranda and Michael John are requesting a reconsideration of the $1,500 fine.

Commissioner Gomes moved to reconsider the fine amount assessed.  Motion seconded by Commissioner Ching.  Motion carried (aye-Weaver, Gomes, Ching, Shoda / abstain-Snipes)

Respondent Edwin Miranda contacted staff on 3/14/14 and received assistance in filing the 2 late reports.  Because Respondent only spent or received a $1,000 or less, he was required to file only the Final Election Period Report and Supplemental Report.  Based on the reports filed and if the complaint had not issued, the fine would have been $200 for each late report for a total fine of $400.

Vice-Chair Snipes moved to reduce the fine assessed in Doc 13-20 from $1,500 to $400, but if Respondents terminate their registration within 30 days, the fine would not be enforced.  Motion seconded by Commissioner Gomes.  Motion carried (aye-Weaver, Gomes, Snipes, Ching / no-Shoda)

Docket No. 13-21 – In Re the Matter of Rand T. Walls  (Baker Tom)
Executive Director Izumi-Nitao reported that on 2/13/13 the Commission approved a Preliminary Determination of Probable Cause and assessed Respondent a fine of $1,000.  Respondent Walls is requesting a reconsideration of the $1,000 fine.

Commissioner Gomes moved to reconsider the fine amount assessed.  Motion seconded by Chair Weaver.  Motion carried (aye-Weaver, Gomes, Shoda / no-Ching / abstain-Snipes)

Respondent Rand T. Walls contacted staff on 2/28/13 and received assistance in filing the 2 late reports.  Based on the reports filed and if the complaint had not issued, the fine would have been $200 for each late report for a total fine of $400.  Respondent has indicated that he intends to terminate his registration.

Commissioner Gomes moved to reduce the fine assessed in Doc 13-21 from $1,000 to $400, but if Respondent terminates his registration within 30 days, the fine would not be enforced.  Motion seconded by Vice-Chair Snipes.  Motion carried (aye-Weaver, Gomes, Snipes, Ching / no-Shoda)

2013 Legislation
General Counsel Kam reported that the following House bills have crossed and are awaiting Senate Judiciary hearing:

HB 201 the Commission’s omnibus bill;

HB 1147 requires noncandidate committees to identify certain top contributors for advertisements, clarifies that persons who fail to file is subject to monitoring and penalties, amends reporting, and repeals HRS §11-332; and

HB 1481 exempts the offices of governor and lieutenant governor from the partial public financing law and changes the law on qualifying contributions, voluntary expenditure limits and maximum amount available public funds for candidates for the office of state senate or state representative, and appropriates funds to the campaign spending commission to prepare for the financing of election in 2014.

The following Senate bills have crossed and are awaiting House Judiciary hearing:

SB 30 raises the expenditure limit for prosecuting attorney candidates and requires that affidavits to voluntarily limit campaign expenditure limits be file no later than the time of filing nomination papers;

SB 31 requires noncandidate committees to report contributions received and made and amends the January deadline for filing of supplemental reports for noncandidate committee; and

SB 381 changes the formula for comprehensive public funding to the average amount of money spent by winning candidates in the last two election cycles for all county district races (see, companion HB 360).

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

Report on Compliance of Filing Timely Disclosure Reports
Supplemental Report due on 1/31/13:  To date – Candidate Committees – 5 non-filers
Noncandidate Committees – 1 non-filers

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

Public session reconvened at 12:50 p.m.

Old Business:
Consideration, Discussion, and Decision Making of 2013-2018 Strategic Plan
Executive Director Izumi-Nitao introduced Director Elizabeth Kent from the Center for Alternative Dispute Resolution, State of Hawaii, who will be facilitating the discussion with the Commission in updating the Commission’s strategic plan.  Director Kent received approval from her advisory board to assist the Commission at no cost to the Commission.

Director Kent reviewed the ground rules before discussion on the strategic plan began with the most important rule being that all decisions made would be by majority rule.

Director Kent led the discussion on the Action Items for each of the Goals.  Discussion on whether the plan should be reviewed annually.  It was noted that the Executive Director does an annual review/report of the strategic plan for the Commission.

Executive Director Izumi-Nitao was to make the discussed changes to the draft after the meeting and distribute the new draft to Commissioners and staff.

The Mission Statement discussion centered on the word “integrity” and whether it should be part of the Commission’s mission.

Vice Chair Snipes commented that the word “integrity” should not be in the statement because he could not find a reference to it in our statute or rules.  It seems more of a concern for the Ethics Commission.  General Counsel Kam noted that the word “integrity” probably meant the integrity of the campaign spending process and not that of an elected official or candidate.  It was agreed to further discussion this issue at the April meeting.

Consensus of the Commissioners agreed with the plan with the discussed revisions.  Staff to draft the strategic plan with discussed revisions for further discussion at the April meeting.

Next Meeting:
Scheduled for Wednesday, April 10, 2013, at 10:30 a.m.

Commissioner Ching moved to adjourn meeting.  Motion seconded by Commissioner Gomes.  Motion carried unanimously.
Meeting adjourned at 3:30 p.m.