Minutes for September 10, 2014 Meeting

Posted in Minutes

Campaign Spending Commission
Leiopapa A Kamehameha Building, Room 204
September 10, 2014
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 10:00 a.m. with Chair Snipes presiding.

Consideration and Approval of Minutes of 7/31/2014 Meeting:
Commissioner Yoshihara moved to approve the minutes of July 31, 2014. Motion seconded by Commissioner Shoda. Motion carried unanimously.

New Business
Executive Director Izumi-Nitao reported that the following proposed conciliation agreements are a result of investigations initiated in July and August 2014 pursuant to HRS §11-314(7) to determine whether there has been a violation of the campaign spending laws.

Conciliation Agreement 15-07 In Re the Matter of Hawaii House Democratic PAC
Conciliation Agreement 15-08 In Re the Matter of Joan Hood, Marian Balete-Diantonio and Friends of Joan Hood
Conciliation Agreement 15-09 In Re the Matter of Christopher Stump, Brandon Ramek, and Friends of Chris Stump
Conciliation Agreement 15-10 In Re the Matter of Kent Fonoimoana, Cindy Tutor, and Friends of Kent Fonoimoana
Conciliation Agreement 15-11 In Re the Matter of DMH Super PAC
Conciliation Agreement 15-12 In Re the Matter of Plumbers and Pipefitters Political Action Committee
Conciliation Agreement 15-13 In Re the Matter of Janet Grace, Susan Felix, and Friends of Janet Grace
Conciliation Agreement 15-14 In Re the Matter of Steven Miller, Ray Nakamoto, and Miller for District 6
Conciliation Agreement 15-15 In Re the Matter of Roofing Contractors Association of Hawaii PAC
Conciliation Agreement 15-16 In Re the Matter of Hawaii Flooring Association PAC
Conciliation Agreement 15-17 In Re the Matter of Hawaii Pest Control Association PAC
Conciliation Agreement 15-18 In Re the Matter of Ocean Tourism Coalition PAC
Conciliation Agreement 15-19 In Re the Matter of Subcontractors Association of Hawaii PAC
Conciliation Agreement 15-20 In Re the Matter of Baybee Hufana-Ablan, Laurie Ann Tadina, and Friends of Baybee Hufana-Ablan for City Council
Conciliation Agreement 15-21 In Re the Matter of Jonathan Hoomanawanui, Camri Ragudo, and Friends of Jonathan Hoomanawanui
Conciliation Agreement 15-22 In Re the Matter of Chace Shigemasa and Shigemasa for OHA
Conciliation Agreement 15-23 In Re the Matter of Syngenta Crop Protection, LLC
Conciliation Agreement 15-24 In Re the Matter of Isaiah Chong and Isaiah Chong for The Hawaii House of Representatives
Conciliation Agreement 15-25 In Re the Matter of Steven Yoder, Timothy Easley, and Friends of Steve Yoder
Conciliation Agreement 15-26 In Re the Matter of Timothy Law, Susan Law, and Friends of Tim Law

Respondents have been informed in a letter from Commission staff of the violation, and they have been notified of today’s meeting and received a copy of the proposed conciliation agreement. They have 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 settlement amounts as stated in each of the conciliation agreements.

Corrections to be made to the following agreements:

CA 15-22 Correct spelling of candidate’s first name
CA 15-25 Page 2, Part 5, paragraph 2 – correct candidate committee’s name

Chair Snipes moved to make a preliminary determination that probable cause exists that a violation has been committed and to accept the settlement terms and amount as stated in Conciliation Agreements 15-07 through 15-26. Motion seconded by Vice Chair Gomes. Motion carried unanimously.

Docket No. 15-09 – In Re the Matter of Christopher Hart, Robert Leiferman, and Friends of Chris Hart
Executive Director Izumi-Nitao reported that a complaint was filed alleging that Respondents failed to file the Supplemental Report that was due on 7/31/14. Respondent Chris Hart was not in the 2014 election and not named on the 2014 ballot.

HRS §§11-333(a) and 11-334(a) require candidates to file timely and accurate preliminary, final, and supplemental reports.

On 8/1/14, Commission staff sent a “Notice of Late Report” informing Respondents that the Supplemental Report had not been filed and the imposition of a fine. To date, Respondents have not filed the Supplemental Report.

On 8/13/14, Commission staff sent Respondents a copy of the complaint and informed Respondents that the matter would be set on the 9/10/14 Commission agenda.

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, assess a fine of $500, and order that Respondents file the Supplemental Report within two weeks of receipt of this order.

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 15-09. Motion seconded by Chair Snipes. Motion carried unanimously.

Vice-Chair Gomes remarked that she believes this candidate is deceased. Commission staff to look into matter and follow up with the Commission if necessary.

Docket 15-10 – In Re the Matter of Leslie McKeague-Gomes, Desiree McKeague, and Vote Leslie 43 Committee
Executive Director Izumi-Nitao reported that a complaint was filed alleging that Respondents failed to file the Supplemental Report that was due on 7/31/14. Respondent Leslie McKeague-Gomes was not in the 2014 election and not named on the 2014 ballot.

HRS §§11-333(a) and 11-334(a) require candidates to file timely and accurate preliminary, final, and supplemental reports.

On 8/13/14, Commission staff sent Respondents a copy of the complaint and informed Respondents that the matter would be set on the 9/10/14 Commission agenda.

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 15-10. Motion seconded by Commissioner Ching. Motion carried unanimously.

Docket 15-11 – In Re the Matter of Noralyn Pajimola, Ruday Pajimola, and Friends of Noralyn Pajimola
Executive Director Izumi-Nitao reported that a complaint was filed alleging Respondents failed to file the Supplemental Report that was due on 7/31/14. Respondent Noralyn Pajimola was not in the 2014 election and not named on the 2014 ballot.

HRS §§11-333(a) and 11-334(a) require candidates to file timely and accurate preliminary, final, and supplemental reports.

On 8/13/14, Commission staff sent Respondents a copy of the complaint and informed Respondents that the matter would be set on the 9/10/14 Commission agenda.

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 15-11. Motion seconded by Commissioner Shoda. Motion carried unanimously.

Docket 15-12 – In Re the Matter of Ellen Pohai Ryan and Committee to Elect Pohai Ryan
Executive Director Izumi-Nitao reported that a complaint was filed alleging Respondents failed to file the Supplemental Report that was due on 7/31/14. Respondent Ryan was not in the 2014 election and not named on the 2014 ballot.

HRS §§11-333(a) and 11-334(a) require candidates to file timely and accurate preliminary, final, and supplemental reports.

On 8/1/14, Commission staff sent a “Notice of Late Report” informing Respondents that the Supplemental Report had not been filed and the imposition of a fine.

On 8/13/14, Commission staff sent Respondents a copy of the complaint and informed Respondents that the matter would be set on the 9/10/14 Commission agenda.

On 8/19/14, Respondents filed the Supplemental Report but did not pay the fine.

Commissioner Ching 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 15-12. Motion seconded by Commissioner Yoshihara. Motion carried unanimously.

Docket No. 15-14 – In Re the Matter of Rose Martinez
General Counsel Gary Kam reported that a complaint was filed alleging the late filing of the 1^st Preliminary Primary Report, 2^nd Preliminary Primary Report, and the filing of an inaccurate or false report.

The 1^st Preliminary Primary Report filed by Respondent reported no expenditures, but Respondent had a fundraiser during the period. Staff subpoenaed the committee’s bank account which disclosed expenses for the fundraiser.

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 fines of $705 for Count I – Late Filing of the 1^st Preliminary Primary Report, $300 for Count II – Late Filing of the 2^nd Preliminary Primary Report, and $500 for Count III – Filing of an Inaccurate of False Report.

Commissioner Yoshihara moved to make a preliminary determination that probable cause exists that violation has been committed and to accept the fines and terms as stated in Docket 15-14. Motion seconded by Commissioner Shoda. Motion carried unanimously.

Respondent Rose Martinez showed up at the meeting after the matter had been decided and told the Commissioners that she is trying hard to comply with the reporting requirements, acknowledged her shortcomings, requested that the Commission not drown her with more fines, and asked for reconsideration. Commissioners did not reconsider their decision.

Docket No. 15-16 – In Re the Matter of Lionking II, LLC
Executive Director Izumi-Nitao reported that a complaint was filed alleging Respondent failed to timely file the Preliminary Primary Report.

Respondent is a noncandidate committee that is registered with the Commission. HRS §§11-335(a) and 11-336 require noncandidate committees to timely file preliminary, final, and supplemental reports.

On 7/31/14, Commission staff sent a “Notice of Late Report” informing Respondent that the Preliminary Primary Report had not been filed and the imposition of a fine. On 8/5/14, Respondent electronically filed the report.

On 8/5/14, Commission staff sent a “Notice of Fine” informing Respondent of a $300 fine for the late filing of the Preliminary Primary Report with a requirement to pay the fine by 8/12/14.

On 8/27/14, Commission staff sent Respondent a copy of the complaint and informed Respondent that the matter would be set on the 9/10/14 Commission agenda.

On 9/8/14, Commission staff received the $300 fine payment.

Staff recommends dismissal of the complaint due to compliance.

Commissioner Ching moved for dismissal of the complaint. Motion seconded by Commission Yoshihara. Motion carried unanimously.

Docket No. 15-17 – In Re the Matter of Hui Ulakea
Executive Director Izumi-Nitao reported that a complaint was filed alleging Respondent failed to timely file the Preliminary Primary Report.

On 8/5/14, Commission staff sent a “Notice of Fine” informing Respondent of a $300 fine for the late filing of the Preliminary Primary Report with a requirement to pay the fine by 8/12/14.

On 8/27/14, Commission staff sent Respondent a copy of the complaint and informed Respondent that the matter would be set on the 9/10/14 Commission agenda.

On 9/9/14, Commission staff received the $300 fine payment.

Staff recommends dismissal of the complaint due to compliance.

Chair Snipes moved for dismissal of the complaint. Motion seconded by Vice Chair Gomes. Motion carried unanimously.

Docket No. 15-18 – In Re the Matter of Rida Cabanilla
General Counsel Gary Kam reported that the complaint was filed because a written complaint was filed by the candidate’s opponent Matthew LoPresti. His complaint alleged six different violations, only one of which is within the Commission’s jurisdiction – failing to include the Department of Defense ad disclaimer. He also called staff and complained about two expenditures made by Respondent, one for a food and beverage at an Ewa Beach restaurant and the purchase of a golf bag.

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, assess a fine of $25 for the improper expenditure of a golf bag and a fine of $7.81 for the improper expenditure of a meal, and order that Respondent reimburse the campaign committee from personal funds of $100 for the golf bag and $31.25 for the meal.

Commissioner Shoda moved to make a preliminary determination that probable cause exists that violations have been committed and to accept the fines and terms as stated in Docket 15-18. Motion seconded by Yoshihara. Motion carried unanimously.

Docket No. 15-19 – In Re the Matter of Efrain Delacruz, Jimmy Van Bokhoven, and Delacruz for Hawaii
Executive Director Izumi-Nitao reported that a complaint was filed alleging Respondents failed to timely file the Supplemental Report that was due on 7/31/14 and Respondents’ failure to pay the fine. Respondent Delacruz was not in the 2014 election and not named on the 2014 ballot.

HRS §§11-333(a) and 11-334(a) require candidates to file timely and accurate preliminary, final, and supplemental reports.

On 8/1/14, Commission staff sent a “Notice of Late Report” informing Respondents that the Supplemental Report had not been filed and the imposition of a fine. Respondents electronically filed the report on 8/8/14.

On 8/11/14, Commission staff sent a “Notice of Fine” informing Respondents of a $200 fine for the late filing of the Supplemental Report with a requirement to pay the fine by 8/25/14. Respondents have not paid the late report fine.

On 8/28/14, Commission staff sent Respondents a copy of the complaint and informed Respondents that the matter would be set on the 9/10/14 Commission agenda.

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 15-19. Motion seconded by Commissioner Shoda. Motion carried unanimously.

Docket No. 15-20 – In Re the Matter of Pace-O-Matic, Inc.
Executive Director Izumi-Nitao reported that a complaint was filed alleging the late filing of the Preliminary Primary Report and Respondent’s failure to pay the fine.

On 7/31/14, Commission staff sent a “Notice of Late Report” informing Respondent that the Preliminary Primary Report had not been filed and the imposition of a fine. On 8/11/14, Respondent electronically filed the report.

On 8/13/14, Commission staff sent a “Notice of Fine” informing Respondent of a $300 fine for the late filing of the Preliminary Primary Report with a requirement to pay the fine by 8/20/14. Respondent has not paid the late report fine.

On 8/28/14, Commission staff sent Respondent a copy of the complaint and informed Respondent that the matter would be set on the 9/10/14 Commission agenda.

On 9/9/14, Commission staff received the $300 fine payment with their request to terminate their registration.

Staff recommends dismissal of the complaint due to compliance.

Vice Chair Gomes moved for dismissal of the complaint. Motion seconded by Chair Snipes. Motion carried unanimously.

Docket No. 15-21 – In Re the Matter of Equality Hawaii Action Fund and Kory Rosette
Executive Director Izumi-Nitao reported that a complaint was filed alleging the late filing of the Preliminary Primary Report and Respondents’ failure to pay the fine.

On 7/31/14, Commission staff sent a “Notice of Late Report” informing Respondents that the Preliminary Primary Report had not been filed and the imposition of a fine. On 8/5/14, Respondents electronically filed the report.

On 8/6/14, Commission staff sent a “Notice of Fine” informing Respondents of a $1,126.75 fine for the late filing of the Preliminary Primary Report with a requirement to pay the fine by 8/13/14. Respondents have not paid the late report fine.

On 8/12/14, Todd Simmons, Executive Director of Equality Hawaii Action Fund, contacted the Commission staff to discuss a conciliation agreement. Staff informed Mr. Simmons that a conciliation agreement was not an option because of five prior late reports, and explained that a complaint would be filed and that he could address the matter before the Commissioners at their next scheduled meeting.

On 8/28/14, Commission staff sent Respondents a copy of the complaint and informed Respondents that the matter would be set on the 9/10/14 Commission agenda.

Executive Director Todd Simmons and Kory Rosette, Treasurer for Equality Hawaii Action Fund, were present at the meeting. Executive Director Simmons stated that his organization just went through a reorganization, that the Commission’s reporting deadlines fell through the cracks, and that they intend to have better compliance with campaign finance laws. He further stated that the assessed fine is a hardship for his organization and asked that Commissioners reduce the fine amount. The initial notice they received from the Commission stated that the failure to file the report would result in a complaint being filed with a recommended administrative fine of $500. They filed the report on 8/5/14 and were surprised to receive a Notice of Fine two days later for $1,126.75.

Executive Director Izumi-Nitao explained how the fine for a late report is calculated. Fines for the late filing of a report is provided by statute. For the Preliminary Primary Report or Preliminary General Report, the fine is $300 per day, provided that the fine shall not exceed 25% of the total amount of contributions or expenditures, whichever is greater, for the period covered by the report.

Commissioner Shoda moved to make a preliminary determination that probable cause exists that a violation has been committed, to accept and terms as stated in Docket 15-21, and reduce the fine to $500. Motion seconded by Chair Snipes. Motion carried unanimously.

Docket 15-22 – In Re the Matter of Sierra Club Hawaii PAC
Executive Director Izumi-Nitao reported that a complaint was filed alleging the late filing of the Preliminary Primary Report and Respondent’s failure to pay the fine.

On 8/1/14, Commission staff sent a “Notice of Late Report” informing Respondent that the Preliminary Primary Report had not been filed and the imposition of a fine. On 7/31/14, Respondent electronically filed the report.

On 8/1/14, Commission staff sent a “Notice of Fine” informing Respondent of a $300 fine for the late filing of the Preliminary Primary Report with a requirement to pay the fine by 8/8/14. Respondent did not paid the late report fine.

On 8/6/14, Joy Shih, treasurer for the Sierra Club Hawaii PAC, stopped by the Commission office and voiced concerns about the noncandidate committee electronic filing system. She informed staff that the system was not functioning and that she had problems filing the report. Staff informed her that they would look into the matter and that no other reports of similar problems were made by other noncandidate committees. Staff further told her that they did not have the authority to waive the late report fine, but that she could take the matter up with the Commissioners upon the filing of a complaint.

On 8/28/14, Commission staff sent Respondent a copy of the complaint and informed Respondent that the matter would be set on the 9/10/14 Commission agenda.

Staff recommends 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 finance law has been committed and assess a fine of $300.

Anthony Aalto, Chair for the Sierra Club Hawaii PAC, stated that this PAC supports transparency and that, at the last minute, since former chair and Executive Director Robert Harris had to step down to run for office, he and treasurer Joy Shih had to take over the committee. He further stated that their treasurer tried to file the report and was having problems with the filing system and missed the deadline by hours.

Executive Director Izumi-Nitao stated that staff met with their treasurer regarding her concerns, looked into her issues, and found that they did not impede her ability to file the report. Associate Director Baldomero specifically addressed the issues of concern raised by treasurer Joy Shih:

Reporting Period – The 2009 special election created an unique reporting period which fell outside of the chronological order of election periods, but this should not have impeded the filing of a report; and

Eblast Reminders – Treasurer Joy Shih noted that the adding of reporting periods should be more descriptive. Consequently, with respect to future eblasts, staff will explain how the reporting periods are added.

Executive Director Izumi-Nitao added that it appears that their treasurer has been the treasurer since 2012 and that there have been prior late reports as well as other violations from this committee.

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 15-22. Motion seconded by Commissioner Yoshihara. Motion carried unanimously.

Docket 15-23 – In Re the Matter of William Halversen
Executive Director Izumi-Nitao reported that a complaint was filed alleging Respondent’s failure to file 2^nd Preliminary Primary Report and Final Primary Report.

Respondent filed nomination papers with the Hawaii County Clerk’s office on 6/3/14 for the Hawaii County Council, District II seat. HRS §§11-333(a) and 11-334(a) require candidates to file timely and accurate preliminary, final, and supplemental reports.

On 7/31/14, Commission staff sent a “Notice of Late Report” informing Respondent that the 2^nd Preliminary Primary Report had not been filed and the imposition of a fine. Respondent was also notified that failure to file the report would result in the Commission staff filing a complaint recommending an administrative fine of $500 and noticing the matter at the next Commission meeting. Respondent did not file the 2^nd Preliminary Primary Report.

On 9/2/14, Commission staff sent a “Notice of Late Report” informing Respondent that the Final Primary Report had not been filed and the imposition of a fine. Respondent was also notified that a failure to file the report would result in the Commission staff filing a complaint recommending an administrative fine of $500 and noticing the matter at the next Commission meeting. Respondent did not file the Final Primary Report.

On 9/2/14, Commission staff sent Respondent a copy of the complaint and informed Respondent that the matter would be set on the 9/10/14 Commission agenda.

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, assess a fines of $500 for Count I and $500 for Count II, and order that Respondent file the reports within 2 weeks of receipt of the order.

Vice Chair Gomes 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 15-23. Motion seconded by Commissioner Yoshihara. Motion carried unanimously.

Docket No. 15-24 – In Re the Matter of Henry Kahula, Jr., Darnelle Kahula and Henry Kahula for Council
Executive Director Izumi-Nitao reported that a complaint was filed alleging Respondents’ failure to file the 2^nd Preliminary Primary Report and Final Primary Report.

Respondent filed nomination papers with the Maui County Clerk’s office on 6/3/14 to be a candidate for the Maui County Council. Respondents’ Organizational Report list Darnelle Kahula as the treasurer for the candidate committee Henry Kahula for Council. HRS §§11-333(a) and 11-334(a) require candidates to file timely and accurate preliminary, final, and supplemental reports.

On 7/31/14, Commission staff sent a “Notice of Late Report” informing Respondents that the 2^nd Preliminary Primary Report had not been filed and the imposition of a fine. Respondents were also notified that failure to file the report would result in the Commission staff filing a complaint recommending an administrative fine of $500 and noticing the matter at the next Commission meeting. Respondents did not file the 2^nd Preliminary Primary Report.

On 9/2/14, Commission staff sent a “Notice of Late Report” informing Respondents that the Final Primary Report had not been filed and the imposition of a fine. Respondents were also notified that a failure to file the report would result in the Commission staff filing a complaint recommending an administrative fine of $500 and noticing the matter at the next Commission meeting. Respondents did not file the Final Primary Report.

On 9/2/14, Commission staff sent Respondents a copy of the complaint and informed Respondents that the matter would be set on the 9/10/14 Commission agenda.

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, assess a fines of $500 for Count I and $500 for Count II, and order that Respondents file the reports within 2 weeks or receipt of the order.

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 state in Docket 15-24. Motion seconded by Vice Chair Gomes. Motion carried unanimously.

Docket No. 15-25 – In Re the Matter of Curtis Lake and C. Hendrix Lake
Executive Director Izumi-Nitao reported that a complaint was filed alleging Respondents’ failure to file the 2^nd Preliminary Primary Report and Final Primary Report.

Respondent filed nomination papers with the Kauai County Clerk’s office on 5/5/14 to be a mayoral candidate for the County of Kauai. HRS §§11-333(a) and 11-334(a) require candidates to file timely and accurate preliminary, final, and supplemental reports.

On 9/2/14, Commission staff sent Respondents a copy of the complaint and informed Respondents that the matter would be set on the 9/10/14 Commission agenda.

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, assess a fines of $500 for Count I and $500 for Count II, and order that Respondents file the reports within 2 weeks or receipt of the order.

Vice Chair Gomes 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 15-25. Motion seconded by Commissioner Shoda. Motion carried unanimously.

Docket No. 15-26 – In Re the Matter of Eleanor Sharsh, Samena Nordkvist, and Friends of Lei Sharsh
Executive Director Izumi-Nitao reported that a complaint was filed alleging Respondents’ failure to file the 2^nd Preliminary Primary Report and Final Primary Report.

Respondent filed nomination papers with the State Office of Elections on 5/30/14 to be a candidate for the State House of Representatives, District 31. Respondents’ Organizational Report lists Samena Nordkvist as the treasurer for the candidate committee Friends of Lei Sharsh. HRS §§11-333(a) and 11-334(a) require candidates to file timely and accurate preliminary, final, and supplemental reports.

On 9/2/14, Commission staff sent Respondents a copy of the complaint and informed Respondents that the matter would be set on the 9/10/14 Commission agenda.

On 9/8/14, Respondents filed the 2^nd Preliminary Primary Report and Final Primary Report, but did not pay the assessed fines.

Executive Director Izumi-Nitao spoke with Respondent Lei Sharsh who indicated that she will not be receiving or spending more than $1,000. Executive Director Izumi-Nitao instructed Respondent to check off the $1,000 or less box which will then require Respondents to file only the Final Election Period Report. Respondents have checked the $1,000 or less box off, and therefore, staff recommends withdrawal of the complaint.

Chair Snipes moved to accept staff recommendation that the complaint be withdrawn. Motion seconded by Commissioner Yoshihara. Motion carried unanimously.

Docket No. 15-27 – In Re the Matter of Poverty Free Hawaii
Executive Director Izumi-Nitao reported that a complaint was filed alleging Respondent’s failure to file the Preliminary Primary Report and Final Primary Report.

Respondent is a noncandidate committee that is registered with the Commission. HRS §§11-335(a) and 11-336 require noncandidate committees to file timely and accurate preliminary, final, and supplemental reports.

On 7/31/14, Commission staff sent a “Notice of Late Report” informing Respondent that the Preliminary Primary Report had not been filed and the imposition of a fine. Respondent was also notified that failure to file the report would result in the Commission staff filing a complaint recommending an administrative fine of $500 and noticing the matter at the next Commission meeting. Respondent did not file the Preliminary Primary Report.

On 9/2/14, Commission staff sent Respondent a copy of the complaint and informed Respondent that the matter would be set on the 9/10/14 Commission agenda.

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, assess fines of $500 for Count I and $500 for Count II, and order that Respondent file the reports within 2 weeks or receipt of the order.

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 15-27. Motion seconded by Vice Chair Gomes. Motion carried unanimously.

Docket No. 15-28 – In Re the Matter of Save Our Aloha State and Susan Kunz
Executive Director Izumi-Nitao reported that a complaint was filed alleging Respondents’ failure to file the Preliminary Primary Report and Final Primary Report.

On 7/31/14, Commission staff sent a “Notice of Late Report” informing Respondents that the Preliminary Primary Report had not been filed and the imposition of a fine. Respondents were also notified that failure to file the report would result in the Commission staff filing a complaint recommending an administrative fine of $500 and noticing the matter at the next Commission meeting. Respondents did not file the Preliminary Primary Report.

On 9/2/14, Commission staff sent Respondents a copy of the complaint and informed Respondents that the matter would be set on the 9/10/14 Commission agenda.

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, assess fines of $500 for Count I and $500 for Count II, and order that Respondents file the reports within 2 weeks or receipt of the order.

Susan Kunz, Treasurer for Save Our Aloha State, addressed the Commission and apologized for this situation. She informed the Commissioners that she resigned in June due to family issues, that she thought the committee chair would handle matters for the committee, that the chair has since moved to the mainland, that there is no one running this committee, and that she intends to file the reports as well as terminate the committee’s registration and close the bank account.

Chair Snipes moved to dismiss the complaint, pending the filing of the Preliminary Primary Report and Final Primary Report, termination of the committee’s registration, and payment of a fine which will be the balance ($125.69) of the committee’s bank account. Motion seconded by Commissioner Shoda. Motion carried unanimously.

Docket No. 15-30 – In Re the Matter of Greggor Ilagan and Friends of Greggor Ilagan
General Counsel Gary Kam reported that a complaint was filed for the prohibited use of campaign funds. Respondent is a 2014 candidate for the Hawaii County Council.

Respondent used campaign funds to purchase a Costco membership which is considered a personal expense. A letter was sent to Respondents informing them of a fine and the need to reimburse his campaign committee from personal funds.

On 9/4/14, Commission staff sent Respondents a copy of the complaint and informed Respondents that the matter would be set on the 9/10/14 Commission agenda.

On 9/9/14, Respondent faxed a letter of apology to the Commission.

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, assess a fine of $14.32, and order that Respondents reimburse the campaign committee in the amount of $57.29 from personal funds.

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 15-30. Motion seconded by Commissioner Shoda. Motion carried unanimously.

Old Business
None

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

Report on Compliance of Filing Timely Disclosure Reports
Update of the Supplemental Report which was due on July 31, 2013

-Nora Pajimola – Staff will be seeking contempt of court order
-Adam Reeder – Court order requiring compliance obtained but parties refused to accept service so will need to secure a process server to serve the court documents on Adam Reeder

Update of the 1^st Preliminary Primary Report which was due on July 10, 2014

-262 candidates were required to file this report
-28 committees did not file on the deadline
-Complaints Filed – 4 did not file report, 2 did not pay fine, 1 did not register with the Commission and file an Organizational Report
-4 possible First Circuit Court Applications (but will wait to see their Final Election Report to see if $1,000 or less)

Update of the 2^nd Preliminary Primary Report which was due on July 30, 3014

-257 candidates were required to file this report
-22 committees did not file on the deadline
-Complaints Filed – 4 did not file report

Update of the Preliminary Primary which was due on July 30, 2014

-225 noncandidate committees were required to file this report
-25 committees did not file on the deadline
-Complaints Filed – 2 did not file, 5 did not pay fine

Update of the Supplemental Report which was due on July 31, 2014

-136 candidate committees were required to file this report (candidates whose names did not appear on the 2014 ballot)
-19 committees did not file on the deadline
-Complaint Filed – 4 did not file, 1 did not pay fine

Update of the Late Contributions Report which was due on August 6, 2014

-11 candidate committees did not file this report

Update of the Final Primary Report which was due on August 29, 2014

-251 candidates were required to file this report
-23 committees did not file on the deadline
-Complaints Filed – 4 did not file
-217 noncandidate committees were required to file this report
-22 committees did not file on the deadline
-Complaint Filed – 2 did not file

Update of the Expenditure of Public Funds Report which was due on August 29, 2014

-1 candidate did not file on the deadline

Preliminary General Report due on October 27, 2014 – not occur yet

Update of 2014 Election
Associate Director Baldomero highlighted the following election activity:

-23 candidates have won outright
-105 candidates were unsuccessful
-170 candidates will be on the general ballot
-To date, $40,473 in public funds have been disbursed
-183 fundraisers this year
-Governor Abercrombie has held 25 fundraisers
-David Ige has held 4 fundraisers
-24 Independent Expenditure Committees
-9 Ballot Issue Committees

Report on 2014 CSC Annual Online Survey
Survey topics to include: background information, communications/access, education/training, data visualization and searchable database, Super PACs and independent expenditure committees, compliance/enforcement, public funding, and other information. Anticipated launch in mid-September with a 1 month deadline to submit response.

Discussion of 2014 COGEL Conference
Scheduled to attend this conference is Executive Director Izumi-Nitao, General Counsel Kam, and Vice Chair Gomes.

Discussion of Scheduling the October 2014 CSC Meeting
The Commission’s next meeting is scheduled for October 8, 2014. However, discussion ensued regarding other possible dates of 10/15, 10/22, 10/23, or 10/29. Commissioners and staff to check schedules and Executive Director Izumi-Nitao will inform everyone of the selected date.

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

Public Session reconvened – 12:45 p.m.

Chair Snipes moved to adjourn meeting. Motion seconded by Commissioner Yoshihara. Motion carried unanimously. Meeting adjourned at 12:45 p.m.

Campaign Spending Commission

Minutes for September 10, 2014 Meeting

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