Campaign Spending Commission

Campaign Spending Commission
Zoom Video Conference
March 15, 2023
10:00 a.m.

Commissioners Present
Stanley Lum, Neal Herbert, Vic Bonfiglio, Bryan Luke

Staff Present
Kristin E. Izumi-Nitao, Tony Baldomero, Gary Kam, Janelle Tanna
Deputy Attorney General Reese Nakamura (standing in for Deputy Attorney General Candace Park)

Guests
Kapana Thronas-Kahoonei, Keolamau (Michael) Tengan, David Chee, Robert Armstrong

Call to Order
Chair Lum called the meeting to order at 10:00 a.m.

Chair Lum went over the procedures for the meeting via Zoom and introduced the Commissioners and Commission staff who were present.  He also asked the Commissioners if anyone else was with them.  All Commissioners present stated that no one else was with them.

Consideration and Approval of Minutes of Meeting on 2/9/23
Chair Lum called for approval of the 2/9/23 meeting minutes.  Commissioner Bonfiglio moved to approve the minutes on 2/9/23.  Motion seconded by Vice Chair Herbert.  Motion carried (4-0).

New Business
Commissioner Luke motioned to take “Docket 23-30 – In Re the Matter of Kapana Thronas-Kahoonei and Friends of Kapana” out of order.  Motioned seconded by Vice Chair Herbert.  Motion carried (4-0).

*Docket No. 23-30 – In Re the Matter of Kapana Thronas-Kahoonei and Friends of Kapana – Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Respondents for the late filing of the Supplemental Report.

She reported that in the Organizational Report filed with the Commission, Respondent Kapana Thronas-Kahoonei is the candidate and treasurer of the candidate committee called Friends of Kapana. 

Respondent Thronas-Kahoonei filed nomination papers to be a candidate in the 2022 election.  He lost in the general election.

Pursuant to HRS §11-334(a)(4)(A), Respondents were required to file the Supplemental Report for the period covering 11/9/22 through 12/31/22 by 11:59 p.m. Hawaii standard time on 1/31/23.  Respondents did not file the report by the deadline.

On 2/1/23, Commission staff notified Respondents via first class mail of their failure to file the report and that a fine would be imposed. 

On 2/7/23, Respondents electronically filed the Supplemental Report.

On 2/7/23, Commission staff notified Respondents via first class mail that a fine of $200 would be assessed against them for the late filing of the report 7 days late pursuant to HRS §11-340.  The letter informed Respondents that they could avoid the complaint process by waiving their rights to be heard at a HRS chapter 92 public meeting and a HRS chapter 91 contested case hearing, and voluntarily paying the fine amount by 2/21/23.  The letter was addressed to Respondents at the addresses listed on their current Organizational Report.

Respondents did not voluntarily pay the late report fine.

On 2/23/23, Commission staff spoke to Respondent Thronas-Kahoonei and let him know that until his registration with the Commission has been terminated, he must continue to file reports with the Commission.  Further, he was informed that a $200 fine was assessed for the late filing of his Supplemental Report and that he was eligible for a conciliation agreement; however, Respondent Thronas-Kahoonei was not interested and said that he should not have to pay the fine.

On 3/3/23, Commission staff sent Respondents a copy of the complaint and set the matter on the 3/15/23 Commission agenda.

Executive Director Izumi-Nitao recommended that the Commission make a preliminary determination, pursuant to HRS §11-405(a), that probable cause exists to believe that a violation of the campaign spending law has been committed, assess an administrative fine of $200 for the late filing of the Supplemental Report, order that the fine be paid from the candidate’s personal funds if the candidate committee’s funds are insufficient to pay the fines, and order that any and all administrative penalties be deposited into the general fund pursuant to HRS §11-340(g) within 2 weeks of receipt of this order.

Chair Lum asked Respondent Thronas-Kahoonei if he would like to respond.

Respondent Thronas-Kahoonei was present via phone.  He stated that he initially was going to file as a $1,000 or less candidate, but was encouraged not to check the box in the event that he raises money in excess of $1,000.  Respondent Thronas-Kahoonei stated that he did not open a bank account, get a single donation, or spend a single dollar to market his campaign.

Respondent Thronas-Kahoonei referenced the agenda stating that Friends of Keone Simon’s conciliation agreement was assessed at $20.87 and he would rather pay that amount.  Respondent Thronas-Kahoonei stated that the only money he spent was from his own personal funds for his filing fee and that if he has to pay something, he would rather pay the $20.87 that was assessed for Friends of Keone Simon.

Chair Lum asked Respondent Thronas-Kahoonei if he disputes that he filed the Supplemental Report late.  Respondent Thronas-Kahoonei stated that he believes he got a call reminding him when a report was due, but did not get a call for this report so he assumed he did not have to do anything since he lost in the general election.  When Respondent Thronas-Kahoonei found out that he still needed to file, he filed his report and terminated his registration.  Respondent Thronas-Kahoonei acknowledged that he filed the report late.

Chair Lum asked if any of the Commissioners had any questions.

Vice Chair Herbert referenced the handbook for candidates who check the $1,000 or less checkbox and commented that they only have to file the Final Election Period Report and asked for clarification with regard to the Supplemental Report.  Executive Director Izumi-Nitao explained that a candidate who checks the $1,000 or less box during an election period would only have to file the Final Election Period Report, but the Supplemental Report at issue falls outside the election period, and thus, all committees must file this report until their registration has been terminated.  Executive Director Izumi-Nitao stated that although Respondent Thronas-Kahoonei has requested termination of his committee’s registration, it cannot be terminated until all matters are resolved.

Executive Director Izumi-Nitao told Respondent Thronas-Kahoonei that the only recourse he currently has is the conciliation agreement that was offered by staff prior to the complaint being filed.  Commissioner Luke asked what Respondent Thronas-Kahoonei’s reduced fine would be through a conciliation agreement and Executive Director Izumi-Nitao responded that the $200 fine would be reduced to $66.67 because this is his first late report.

Commissioner Luke asked Respondent Thronas-Kahoonei if he had taken any training and if he would consider the conciliation agreement.  Respondent Thronas-Kahoonei responded that he took no trainings offered by CSC and would be interested in a conciliation agreement if the amount was less than the one staff had offered him.

Commissioner Luke asked General Counsel Kam if Commissioners were allowed to offer a lesser fine amount and what the process would be.  General Counsel Kam advised Commissioners to follow the fine guidelines they had approved.

Commissioner Luke moved to continue the matter.  Motion seconded by Vice Chair Herbert.  Motion carried (4-0).

Executive Director Izumi-Nitao encouraged Respondent Thronas-Kahoonei to call Commission staff to discuss his next steps because the matter remains unresolved.

*Back to the Order of Business

Executive Director Izumi-Nitao stated that the Conciliation Agreements on the agenda were a result of an investigation 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 the 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 agreements.  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 the proposed agreements.

*Proposed Conciliation Agreement No. 23-47 – In Re the Matter of Godfrey4Hawaii – Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Supplemental Report and requests that they assess a reduced fine from $200 to $100 as it is Respondent’s second violation.  Chair Lum asked if there were any comments or questions.

Commissioner Bonfiglio moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Luke.  Motion carried (4-0).

*Proposed Conciliation Agreement No. 23-48 – In Re the Matter of Friends of Keone Simon – Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Supplemental Report and requests that they assess a reduced fine from $62.62 to $20.87 as it is Respondent’s first violation.

Chair Lum asked if there were any comments or questions.

Vice Chair Herbert asked how the fine was computed and Associate Director Baldomero said it was 25% of the committee’s contributions.

Commissioner Luke moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Bonfiglio.  Motion carried (4-0).

*Proposed Conciliation Agreement No. 23-49 – In Re the Matter of Family and Friends of Mark Talaeai – Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Supplemental Report and requests that they assess a reduced fine from $200 to $66.67 as it is Respondent’s first violation.  Chair Lum asked if there were any comments or questions.

Vice Chair Herbert moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Bonfiglio.  Motion carried (4-0).

*Proposed Conciliation Agreement No. 23-50 – In Re the Matter of Friends of Dr. Helen Tupai
Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Supplemental Report and requests that they assess a reduced fine from $200 to $66.67 as it is Respondent’s first violation.  Chair Lum asked if there were any comments or questions.

Commissioner Bonfiglio moved to approve the proposed conciliation agreement.  Motion seconded by Vice Chair Herbert.  Motion carried (4-0).

*Proposed Conciliation Agreement No. 23-51 – In Re the Matter of Friends of Becky Gardner – Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Supplemental Report and requests that they assess a reduced fine from $200 to $100 as it is Respondent’s second violation.  Chair Lum asked if there were any comments or questions.

Vice Chair Herbert moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Bonfiglio.  Motion carried (4-0).

*Proposed Conciliation Agreement No. 23-52 – In Re the Matter of Friends of Michael Tengan – Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Supplemental Report and requests that they assess a reduced fine from $200 to $66.67 as it is Respondent’s first violation.

Respondent Tengan was present and stated that this was his first offense, and he joined the meeting to see how proceedings went and thanked the Commission.

Chair Lum asked if there were any comments or questions.

Vice Chair Herbert moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Luke.  Motion carried (4-0).

*Proposed Conciliation Agreement No. 23-53 – In Re the Matter of Friends of Mokihana Maldonado – Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Supplemental Report and requests that they assess a reduced fine from $200 to $66.67 as it is Respondent’s first violation.  Chair Lum asked if there were any comments or questions.

Commissioner Bonfiglio moved to approve the proposed conciliation agreement.  Motion seconded by Vice Chair Herbert.  Motion carried (4-0).

*Proposed Conciliation Agreement No. 23-54 – In Re the Matter of Campaign Aloha – Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Final Election Period Report and the Supplemental Report and requests that they assess a reduced fine from $200 to $66.67 for each report for a total of $133.34 as it is Respondent’s first violation.  Chair Lum asked if there were any comments or questions.

Commissioner Bonfiglio moved to approve the proposed conciliation agreement.  Motion seconded by Vice Chair Herbert.  Motion carried (4-0). 

Old Business
*Consideration, Discussion, Approval, and/or Update of Commission Legislation and Other Campaign Finance Related Bills/Resolutions for the 2023 Legislative Session – Consideration, discussion, approval, and/or update of Commission legislation, Commission to Improve Standards of Conduct legislation, and other campaign finance related bills/resolutions that impact Commission operations/business for the 2023 Legislative Session.

General Counsel Kam provided an update of the status of the Commission’s 11 bills and the other campaign finance bills introduced this session.

Executive Director Izumi-Nitao stated that Commission staff would remove the deferred and dead bills from the tracking sheets moving forward.

Vice Chair Herbert asked General Counsel Kam what the companion bills mentioned in CSC’s testimonies meant and General Counsel Kam explained that a companion bill is a bill that is introduced in both the Senate and the House.

Report from Executive Director
*Report on Compliance of Filing Timely Disclosure Reports – Executive Director Izumi-Nitao reported that with respect to the Supplemental Report which was due on 1/31/23, there remains 32 candidate committees and 1 noncandidate committee that have not filed this report.

*Update on the Appointment of a New Campaign Spending Commissioner – Executive Director Izumi-Nitao stated that the Commission is in communication with Wendy Kondo (new Executive Director of Boards & Commissions) and that a new Commissioner was appointed (David Chee) yesterday (3/14/23).  Executive Director Izumi-Nitao will schedule an orientation and oath of office with the new commissioner and hopefully will have him ready for the April meeting.

*Update on the Hiring of an Administrative Assistant – Executive Director Izumi-Nitao stated that the Commission had hired someone who was supposed to start on March 1, 2023, but the applicant withdrew their acceptance.  The Commission will continue the search.

Chair Lum asked if there were any questions or comments.

Chair Lum thanked Deputy Attorney General Reese Nakamura, Bob Armstrong, and Kapana Thronas-Kahoonei for their participation in the meeting.

Chair Lum asked for a motion to adjourn this meeting.  Vice Chair Herbert moved to adjourn the meeting.  Motion seconded by Commissioner Luke.  Motion carried (4-0).

Meeting Adjourned at 11:20 a.m.

Next Meeting:
Scheduled for Wednesday, April 12, 2023 at 10:00 a.m. via Zoom