Minutes for May 17, 2023 Meeting
Posted in MinutesCampaign Spending Commission Meeting
Zoom Video Conference
May 17, 2023
10:00 a.m.
Commissioners Present
Stanley Lum, Neal Herbert, Bryan Luke, Vic Bonfiglio, David Chee
Staff Present:
Kristin E. Izumi-Nitao, Tony Baldomero, Gary Kam Deputy Attorney General Candace Park
Guests
Chase Nomura, Miranda Alea, Wayne Chen, Kaala Buenconsejo, Robert Armstrong, KITV News, Terence Lau
Call to Order
Chair Lum called the meeting to order at 10:02 a.m.
Chair Lum went over the procedures for this 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 4/12/23
Regarding Proposed Conciliation Agreement No. 23-55 – In Re the Matter of Friends of Walter Ritte, Vice Chair Herbert proposed an amendment to the first line at the top of page 2, 2nd sentence to read: “Associate Director Baldomero confirmed that it was.”
Commissioner Bonfiglio moved to approve the minutes on 4/12/23 as amended. Motion seconded by Commissioner Luke. Motion carried (5-0).
New Business
*Docket No. 23-33 – In Re the Matter of Lauahi LLC dba Kupale Technologies – General Counsel Kam reported that a complaint by the Executive Director had been filed against Respondent, a government contractor, for making prohibited contributions to candidates in violations of HRS §11-355.
Respondent Lauahi LLC is a domestic limited liability company that is registered with the Business Registration Division of the Hawaii Department of Commerce and Consumer Affairs.
On 7/28/21, the State Procurement Office (“SPO”) awarded Respondent Lauahi LLC a vendor list contract to provide professional cleaning and disinfecting services for COVID-19 for offices of state and county agencies.
The SPO vendor list contract includes a provision that states: “Campaign Contributions. The CONTRACTOR is hereby notified of the applicability of 11-355, HRS, which states that campaign contributions are prohibited from specified state or county government contractors during the terms of their contract if the contractors are paid with funds appropriated by a legislative body.”
The funding for Respondent Lauahi LLC’s contract came from the 2020 federal Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) award to the state. The state then appropriated a portion of the CARES Act award to Maui County. The county then appropriated a portion of the county’s allocation of CARES Act funds to the county’s Department of Finance, which then made payments to Respondent Lauahi LLC pursuant to the SPO vendor list contract.
On 8/10/22, the term of Respondent Lauahi LLC’s SPO vendor list contract was extended to 8/15/23.
Respondent Lauahi LLC was a state contractor from 8/16/21 through 8/15/23.
HRS §11-355(a) provides that: “It shall be unlawful for any person who enters into any contract with the State, any of the counties, or any department or agency thereof either for the rendition of personal services, the buying of property, or furnishing of any material, supplies, or equipment to the State, any of the counties, any department or agency thereof, or for selling any land or building to the State, any of the counties, or any department or agency thereof, if payment for the performance of the contract or payment for material, supplies, equipment, land, property, or building is made in whole or in part from funds appropriated by the legislative body, at any time between the execution of the contract through the completion of the contract, to:
(1) Directly or indirectly make any contribution, or promise expressly or impliedly to make any contribution to any candidate committee or noncandidate committee, or any candidate or to any person for any political purpose or use; or
(2) Knowingly solicit any contribution from any person for any purpose during any ”
Hawaii Administrative Rules (“HAR”) §3-160-37(h) provides that “’personal services,’ as used in section 11-355, HRS, means the performance of services in the field of health, law, engineering, architecture, construction, accounting, actuarial, science, performing arts, or consulting.”
Respondent Lauahi LLC’s SPO vendor list contract is a covered personal services contract in the field of health, and thus, Respondent Lauahi LLC is not permitted to make contributions to any candidate committee so long as the contract remains in effect.
Upon review of candidate committee reports, CSC staff found that Respondent Lauahi LLC made 3 campaign contributions during this prohibited period. They are:
1 – $500 contribution on 11/29/21 to Friends of Michael Victorino;
2 – $250 contribution on 6/1/22 to Friends for John Pele; and
3 – $500 contribution on 6/22/22 to Friends for Nohelani Uu-Hodgins.
Notably, there is no evidence that these candidates and candidate committees knew that Respondent Lauahi LLC was a state contractor.
Pursuant to HRS §11-410 and the Schedule of Fines adopted by the Commission pursuant to HAR §3- 160-73(a), Commission staff recommends that the Commission assess an administrative fine in the amount of $1,000 for each of these violations for a total fine of $3,000.
On or about 5/5/23, Commission staff sent Respondent a copy of the complaint and set the matter on the 5/17/23 Commission agenda. On 5/9/23, Respondent’s member-owner (Kaala Buenconsejo) informed staff that he did not receive a complete copy of the complaint. That day, Staff emailed the notice of complaint and the complaint and exhibits to Respondent’s member-owner and mailed out the same documents to Respondent.
General Counsel Kam 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 $3,000 ($1,000 per violation), and order that any and all administrative penalties be deposited into the general fund pursuant to HRS §11-410(e).
Respondent Kaala Buenconsejo was present and stated that he had not received the complete package of the complaint, but having talked to General Counsel Kam, received the full complaint later. He stated that the candidates he made contributions to had nothing to do with his company receiving the government contract award, that he made an honest mistake, that it is only a smokescreen because he does not see a difference between a personal check of the owner of a state contractor making a candidate contribution when the money is coming from the company who pays his salary, and that he did not read the fine print in the government contract that provides that government contractors cannot make candidate contributions.
General Counsel Kam responded that Respondent Buenconsejo’s intent is not relevant to this complaint which seeks an assessment of a civil fine and that had it been an intentional act, the recommendation would be different rather than a civil penalty.
Vice Chair Herbert asked about the Commission’s Schedule of Fines and whether the candidates who received a contribution from Respondents knew that Respondent was a government contractor. General Counsel Kam replied that there was no evidence of the candidates’ knowing that Respondent was a government contractor.
Commissioner Luke commented that the Commission submitted a bill last legislative session for more transparency that would prohibit government contractor officers and immediate family members from making contributions, but that it did not pass. He further stated that the Commission does not make the law, but is required to enforce it.
Commissioner Chee moved to make a preliminary determination that probable cause exists that a violation had been committed and to accept the fine and terms stated in the complaint. Motion seconded by Vice Chair Herbert. Motion carried (5-0).
*Commissioners took the following matters out of order since Respondents were present.
*Docket No. 23-46 – In Re the Matter of Chase Nomura, Miranda Alea, and Friends of Chase Nomura – Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Respondents for failing to file the Supplemental Report.
She reported that in the Organizational Report filed with the Commission, Respondent Chase Nomura is the candidate and Respondent Miranda Alea is the treasurer of the candidate committee called Friends of Chase Nomura.
Pursuant to HRS §11-334, 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. Respondents have not filed the Supplemental Report.
On 5/8/23, Commission staff sent Respondents a copy of the complaint and set the matter on the 5/17/23 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 $500 for failing to file 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 fine; order that any and all administrative penalties be deposited into the general fund pursuant to HRS §11-410(e); and order that Respondents file the aforementioned report within 2 weeks of receipt of this order.
Respondents Chase Nomura and Miranda Alea were present. Respondent Nomura stated that he is a first time candidate, that he did the best he could to file the report on time, that he closed his bank account on 10/5/22 with an $8 deficit, that he did not receive notification that the report was not filed, and that he amended his Organizational Report.
Commissioner Luke asked whether the matter should be continued to permit Respondents to sort this matter out. Executive Director Izumi-Nitao stated that there is nothing to sort out until Respondents file the Supplemental Report and pay the $500 fine.
Commissioner Chee asked Respondent Nomura whether he filed this report. Respondent Nomura said no.
Commissioner Herbert asked Respondent Nomura whether he had received the notice of failure to file the report. Respondent Nomura confirmed that he had received the notice.
Commissioner Chee moved to make a preliminary determination that probable cause exists that a violation had been committed and to accept the fine and terms stated in the complaint. Motion seconded by Commissioner Luke. Motion carried (5-0).
*Docket No 23-36 – In Re the Matter of Wayne Chen and Friends of Wayne Chen – Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Respondents for failing to file the Supplemental Report.
She reported that in the Organizational Report filed with the Commission, Respondent Chen is the candidate and treasurer of the candidate committee called Friends of Wayne Chen.
Pursuant to HRS §11-334, Respondents were required to file the Supplemental Report for the period covering 7/1/22 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. Respondents have not filed the Supplemental Report.
On 5/4/23, Commission staff sent Respondents a copy of the complaint and set the matter on the 5/17/23 Commission agenda.
On 5/15/23, Respondent Chen filed the Supplemental Report.
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 $500 for failing to file 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 fine; and order that any and all administrative penalties be deposited into the general fund pursuant to HRS §11-410(e).
Respondent Wayne Chen was present and stated that he holds in high regard the duties of a candidate, that he did not receive the notice of late report as well as has been experiencing problems with the Commission’s website and filing reports. He commented that he thought he filed the report. He now knows that the Commission’s website has step-by-step instructions on filing reports.
Commissioner Chee asked whether he filed the report before the deadline. Respondent Chen replied that he thought he did, but he may have been incorrect. He stated that the Commission’s website is extremely difficult to navigate. General Counsel Kam replied that this has nothing to do with Respondent Chen not filing the report on time and that Respondents have been filing reports since 2020.
Respondent Chen commented that his report has a zero balance so it is a simple report to file and that he only found out in a letter from the Commission on 5/4/23 about the unfiled report. He further stated that he is out of town a lot and that he closed his P.O. Box but forwarded the mail to the 12th Avenue address.
Executive Director Izumi-Nitao read aloud the directory information contained in Respondents’ organizational report. She stated that until a committee’s registration is terminated, a candidate needs to file all required reports.
Commissioner Bonfiglio moved to make a preliminary determination that probable cause exists that a violation had been committed and to accept the fine and terms stated in the complaint. Motion seconded by Commissioner Chee. Motion carried (5-0).
Respondent Chen asked the Commissioners to lessen the fine, but the vote had already been taken and there was no further action.
*Commissioners returned to the order of business as stated on the agenda.
*Docket No. 23-34 – In Re the Matter of Jessica Caiazzo, Ryan Luther, and Friends of Jessica Priya – Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Respondents for failing to file the Supplemental Report.
She reported that in the Organizational Report filed with the Commission, Respondent Caiazzo is the candidate and Respondent Luther is the treasurer of the candidate committee called Friends of Jessica Priya.
Pursuant to HRS §11-334, 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. Respondents have not filed the Supplemental Report.
On 5/4/23, Commission staff sent Respondents a copy of the complaint and set the matter on the 5/17/23 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 $500 for failing to file 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 fine; order that any and all administrative penalties be deposited into the general fund pursuant to HRS §11-410(e); and order that Respondents file the aforementioned report within 2 weeks of receipt of this order.
Commissioner Bonfiglio moved to make a preliminary determination that probable cause exists that a violation had been committed and to accept the fine and terms stated in the complaint. Motion seconded by Commissioner Luke. Motion carried (5-0).
*Docket No. 23-35 – In Re the Matter of Shekinah Cantere, Aureanna Greenwood, and Friends of Shekinah Cantere – Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Respondents for failing to file the Supplemental Report.
She reported that in the Organizational Report filed with the Commission, Respondent Cantere is the candidate and Respondent Greenwood is the treasurer of the candidate committee called Friends of Shekinah Cantere.
Pursuant to HRS §11-334, 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. Respondents have not filed the Supplemental Report.
On 5/4/23, Commission staff sent Respondents a copy of the complaint and set the matter on the 5/17/23 Commission agenda.
On 5/17/23, Respondents filed the Supplemental Report and paid the $500 fine.
Executive Director Izumi-Nitao recommended that the complaint be dismissed due to compliance.
Commissioner Bonfiglio moved to dismiss the complaint due to compliance. Motion seconded by Vice Chair Herbert. Motion carried (5-0).
*Docket No. 23-37 – In Re the Matter of Cara Flores and Friends of Cara Flores – Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Respondents for failing to file the Supplemental Report.
She reported that in the Organizational Report filed with the Commission, Respondent Flores is the candidate and treasurer of the candidate committee called Friends of Cara Flores.
Pursuant to HRS §11-334, 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. Respondents have not filed the Supplemental Report.
On 5/4/23, Commission staff sent Respondents a copy of the complaint and set the matter on the 5/17/23 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 $500 for failing to file 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 fine; order that any and all administrative penalties be deposited into the general fund pursuant to HRS §11-410(e); and order that Respondents file the aforementioned report within 2 weeks of receipt of this order.
Commissioner Bonfiglio moved to make a preliminary determination that probable cause exists that a violation had been committed and to accept the fine and terms stated in the complaint. Motion seconded by Commissioner Chee. Motion carried (5-0).
*Docket No. 23-38 – In Re the Matter of Tiare Lawrence and Tiare Lawrence for Maui – Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Respondents for failing to file the Supplemental Report.
She reported that in the Organizational Report filed with the Commission, Respondent Lawrence is the candidate and treasurer of the candidate committee called Tiare Lawrence for Maui.
Pursuant to HRS §11-334, Respondents were required to file the Supplemental Report for the period covering 7/1/22 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. Respondents have not filed the Supplemental Report.
On 5/4/23, Commission staff sent Respondents a copy of the complaint and set the matter on the 5/17/23 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 $750 for failing to file the Supplemental Report because this is Respondents’ second violation; order that the fine be paid from the candidate’s personal funds if the candidate committee’s funds are insufficient to pay the fine; order that any and all administrative penalties be deposited into the general fund pursuant to HRS §11-410(e); and order that Respondents file the aforementioned report within 2 weeks of receipt of this order.
Commissioner Bonfiglio moved to make a preliminary determination that probable cause exists that a violation had been committed and to accept the fine and terms stated in the complaint. Motion seconded by Commissioner Chee. Motion carried (5-0).
*Docket No. 23-39 – In Re the Matter of Alexander Smith and Friends of Al Smith – Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Respondents for failing to file the Supplemental Report.
She reported that in the Organizational Report filed with the Commission, Respondent Alexander Smith is the candidate and treasurer of the candidate committee called Friends of Al Smith.
Pursuant to HRS §11-334, Respondents were required to file the Supplemental Report for the period covering 7/1/22 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. Respondents have not filed the Supplemental Report.
On 5/4/23, Commission staff sent Respondents a copy of the complaint and set the matter on the 5/17/23 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 $500 for failing to file 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 fine; order that any and all administrative penalties be deposited into the general fund pursuant to HRS §11-410(e); and order that Respondents file the aforementioned report within 2 weeks of receipt of this order.
Commissioner Chee moved to make a preliminary determination that probable cause exists that a violation had been committed and to accept the fine and terms stated in the complaint. Motion seconded by Vice Chair Herbert. Motion carried (5-0).
*Docket No. 23-40 – In Re the Matter of Jonathan Kennealy, Candace Kennealy, and Kennealy for Office – Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Respondents for failing to file the Supplemental Report.
She reported that in the Organizational Report filed with the Commission, Respondent Jonathan Kennealy is the candidate and Respondent Candace Kennealy is the treasurer of the candidate committee called Kennealy for Office.
Pursuant to HRS §11-334, 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. Respondents have not filed the Supplemental Report.
On 5/4/23, Commission staff sent Respondents a copy of the complaint and set the matter on the 5/17/23 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 $500 for failing to file 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 fine; order that any and all administrative penalties be deposited into the general fund pursuant to HRS §11-410(e); and order that Respondents file the aforementioned report within 2 weeks of receipt of this order.
Commissioner Bonfiglio moved to make a preliminary determination that probable cause exists that a violation had been committed and to accept the fine and terms stated in the complaint. Motion seconded by Commissioner Chee. Motion carried (5-0).
*Docket No. 23-41 – In Re the Matter of Joshua Mangauil and Lanakila for OHA – Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Respondents for failing to file the Supplemental Report.
She reported that upon staff review of Respondent’s committee file, it appears that Respondents requested to terminate their committee registration and that they were eligible to terminate before this report was due. As such, she recommended that the complaint be withdrawn.
Commissioner Chee moved to withdraw the complaint. Motion seconded by Vice Chair Herbert. Motion carried (5-0).
*Docket No. 23-42 – In Re the Matter of Mitch McPeek and Mitch McPeek – Executive Director Izumi- Nitao reported that a complaint by the Executive Director had been filed against Respondents for failing to file the Supplemental Report. On 5/15/23, she spoke with Respondent McPeek who requested that the matter be continued to the 6/14/23 CSC Meeting so that he could appear. He had a work conflict for this meeting. She recommended that the matter be continued.
Commissioner Bonfiglio moved to continue the matter to the 6/14/23 CSC Meeting. Motion seconded by Vice Chair Herbert. Motion carried (5-0).
*Docket No. 23-43 – In Re the Matter of Frederick Nava, Rina Nava, and Rick Nava, Friends of Rick Nava – Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Respondents for failing to file the Supplemental Report.
She reported that in the Organizational Report filed with the Commission, Respondent Frederick Nava is the candidate and Respondent Rina Nava is the treasurer of the candidate committee called Rick Nava, Friends of Rick Nava.
Pursuant to HRS §11-334, Respondents were required to file the Supplemental Report for the period covering 7/1/22 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. Respondents have not filed the Supplemental Report.
On 5/4/23, Commission staff sent Respondents a copy of the complaint and set the matter on the 5/17/23 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 $500 for failing to file 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 fine; order that any and all administrative penalties be deposited into the general fund pursuant to HRS §11-410(e); and order that Respondents file the aforementioned report within 2 weeks of receipt of this order.
Commissioner Chee moved to make a preliminary determination that probable cause exists that a violation had been committed and to accept the fine and terms stated in the complaint. Motion seconded by Commissioner Bonfiglio. Motion carried (5-0).
*Docket No. 23-44 – In Re the Matter of Mela Kealoha-Lindsey and Friends of Mela Kealoha-Lindsey – Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Respondents for failing to file the Supplemental Report.
She reported that in the Organizational Report filed with the Commission, Respondent Mela Kealoha- Lindsey is the candidate and treasurer of the candidate committee called Friends of Mela Kealoha- Lindsey.
Pursuant to HRS §11-334, Respondents were required to file the Supplemental Report for the period covering 7/1/22 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. Respondents have not filed the Supplemental Report.
On 5/4/23, Commission staff sent Respondents a copy of the complaint and set the matter on the 5/17/23 Commission agenda.
On or about 5/12/23, Commission staff received an email from Respondent Kealoha-Lindsey which was forwarded to the Commissioners. Respondent is requesting that the complaint be dismissed and to help her close her campaign account.
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 $500 for failing to file 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 fine; order that any and all administrative penalties be deposited into the general fund pursuant to HRS §11-410(e); and order that Respondents file the aforementioned report within 2 weeks of receipt of this order.
Chair Lum asked whether Respondent Kealoha-Lindsey filed the Supplemental Report. Associate Director Baldomero responded no. Executive Director Izumi-Nitao commented that Respondents have been around since 2018 and that their committee folder shows prior conciliation agreements awarded.
Chair Lum asked whether people are having a hard time contacting the Commission. Associate Director Baldomero replied that in his experience, staff has been attentive to calls and return them on the day received.
Commissioner Chee asked for the percentage of candidate committees that file late reports. Associate Director Baldomero stated that it is around 5-7% and that it used to be more around 10%. Chair Lum inquired as to the change and Associate Director Baldomero responded that it is due to enforcement efforts.
Vice Chair Herbert moved to make a preliminary determination that probable cause exists that a violation had been committed and to accept the fine and terms stated in the complaint. Motion seconded by Commissioner Chee. Motion carried (5-0).
*Docket No. 23-45 – In Re the Matter of Jeffrey Lindner and Friends of Jeffrey Lindner – Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Respondents for failing to file the Supplemental Report.
She reported that in the Organizational Report filed with the Commission, Respondent Jeffrey Lindner is the candidate and treasurer of the candidate committee called Friends of Jeffrey Lindner.
Pursuant to HRS §11-334, 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. Respondents have not filed the Supplemental Report.
On 5/8/23, Commission staff sent Respondents a copy of the complaint and set the matter on the 5/17/23 Commission agenda.
On 5/15/23, Respondents filed the Supplemental Report and paid the $500 fine.
Executive Director Izumi-Nitao recommended that the complaint be dismissed due to compliance.
Commissioner Bonfiglio moved to dismiss the complaint due to compliance. Motion seconded by Commissioner Chee. Motion carried (5-0).
*Docket No. 23-47 – In Re the Matter of Cynthia Rezentes and Friends of Cynthia Rezentes – Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Respondents for failing to file the Supplemental Report.
She reported that in the Organizational Report filed with the Commission, Respondent Cynthia Rezentes is the candidate and treasurer of the candidate committee called Friends of Cynthia Rezentes.
Pursuant to HRS §11-334, Respondents were required to file the Supplemental Report for the period covering 7/1/22 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. Respondents have not filed the Supplemental Report.
On 5/8/23, Commission staff sent Respondents a copy of the complaint and set the matter on the 5/17/23 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 $500 for failing to file 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 fine; order that any and all administrative penalties be deposited into the general fund pursuant to HRS §11-410(e); and order that Respondents file the aforementioned report within 2 weeks of receipt of this order.
Vice Chair Herbert moved to make a preliminary determination that probable cause exists that a violation had been committed and to accept the fine and terms stated in the complaint. Motion seconded by Commissioner Bonfiglio. Motion carried (5-0).
*Docket No. 23-51 – In Re the Matter of Kukana Kama-Toth and Friends of Kukana Kama-Toth – Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Respondents for the late filing of the 2nd Preliminary General Report and failing to file the Supplemental Report.
She reported that in the Organizational Report filed with the Commission, Respondent Kukana Kama- Toth is the candidate and treasurer of the candidate committee called Friends of Kukana Kama-Toth.
Respondent Kama-Toth filed nomination papers to be a candidate in the 2022 election.
Pursuant to HRS §11-334(a), Respondents were required to file the 2nd Preliminary General Report for the period covering 9/27/22 through 10/24/22 by 11:59 p.m. Hawaii standard time on 10/31/22.
Respondents did not file the report by the deadline.
On 11/1/22, Commission staff notified Respondents via first class mail of their failure to file the report and that a fine would be imposed.
On 11/3/22, Respondents electronically filed the 2nd Preliminary General Report.
On 11/4/23, Commission staff notified Respondents via first class mail that a fine of $773.94 will be assessed against them for the late filing of the report 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 11/18/22.
On 3/3/23, Respondent Kama-Toth agreed to a payment plan to pay the late report fine of $773.94 and a $25 late filing of a Notice of Fundraiser fine which was subsequently incurred. The payment plan agreed to by Respondents provided that Respondents would pay $400 immediately; $100 on 3/24/23; $100 on 4/24/23; $100 on 5/24/23; and $98.94 on 6/24/23. Respondents paid the $400 payment via Paypal on 2/24/23, but has failed to make the payment due on March 24th and April 24th, and thus, has failed to pay for the late filing of the aforementioned report. For purposes of this complaint, it is recommended that we treat the $25 fine for the late filing of a Fundraiser Notice as having been paid for by the first installment of $400 thereby leaving a balance of $398.94 for the late filing of the 2nd Preliminary General Report.
Pursuant to HRS §11-334, 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. Respondents have not filed the Supplemental Report.
On 5/8/23, Commission staff sent Respondents a copy of the complaint and set the matter on the 5/17/23 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 (1) an administrative fine of $398.94 (the balance owed for the total fine of $773.94) for failing to timely file the 2nd Preliminary General Report, and (2) an administrative fine of $500 for failing to file the Supplemental Report for a total fine of $898.94; order that the total fine of $898.94 be paid from the candidate’s personal funds if the candidate committee’s funds are insufficient to pay the fine; order that any and all administrative penalties be deposited into the general fund pursuant to HRS §§11-340(g) and 11-410(e); and order that Respondents file the Supplemental Report within 2 weeks of receipt of this order.
Commissioner Bonfiglio moved to make a preliminary determination that probable cause exists that a violation had been committed and to accept the fine and terms stated in the complaint. Motion seconded by Commissioner Chee. Motion carried (5-0).
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 related bills introduced this session. He stated that only 4 out of the 11 bills did not pass this session ( the expansion of the government contractor ban, the repeal of the provision allowing the use of campaign funds to purchase 2 tickets to another candidate’s fundraiser, the enhanced partial public funding program, and the prohibition on soliciting/accepting campaign contributions during legislative session).
Executive Director Izumi-Nitao reported that upon approval by the Governor of these bills, staff is preparing to execute the implementation of the new laws (e.g., updating the electronic filing systems, revising forms, updating guidebooks and manuals, preparing notifications to the committees and public, preparing recommendations for the Commissioner’s consideration concerning the Schedule of Fines, etc.).
She also stated that thank you letters were sent on 5/11/23 acknowledging persons who supported CSC bills for the 2023 legislative session.
Report from Executive Director
*Report on Compliance of Filing Timely Disclosure Reports – Executive Director Izumi-Nitao reported that in regard to the Supplemental Report which was due on 1/31/23, there remains 22 candidate committees that have not filed this report. In regard to the criminal referral of Kaniela Ing’s failure to timely file the Supplemental Report, Deputy Prosecuting Attorney Scott Bell is handling the misdemeanor and attorney Bill Harrison represents Kaniela Ing.
*Update on the Hiring of Commission Personnel – Executive Director Izumi-Nitao reported that conditional offers of employment have been made to applicants for the Administrative Assistant and Elections Assistant positions.
Chair Lum asked if there were any questions or comments.
EXECUTIVE SESSION
Chair Lum asked for a motion to convene in Executive Session pursuant to HRS §92-5(a)(2) to review, consider, and discuss Commission staff performance and compensation.
Commissioner Bonfiglio moved to convene in Executive Session for the aforementioned reason. Motion was seconded by Vice Chair Herbert. Motion carried (5-0).
*Commission went into Executive Session at 11:49 a.m.
*Public session reconvened at 12:14 p.m.
Next Meeting:
Scheduled for Wednesday, June 14, 2023 at 10:00 a.m. via Zoom.
Chair Lum asked for a motion to adjourn the meeting. Commissioner Bonfiglio moved to adjourn the meeting. Motion seconded by Vice Chair Herbert. Motion carried (5-0).
Meeting Adjourned at 12:15 p.m.