Campaign Spending Commission

Campaign Spending Commission Meeting
Zoom Video Conference
September 13, 2023
10:00 a.m.

Commissioners Present
Stanley Lum, Neal Herbert, Vic Bonfiglio, David Chee

Excused
Gary Kam, Tony Baldomero

Staff Present
Kristin E. Izumi-Nitao, Terence Lau
Deputy Attorney General Candace Park

Guests
David Cho, Karl Dicks

Call to Order
Chair Lum called the meeting to order at 10 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 8/16/23
Commissioner Bonfiglio moved to approve the minutes on 8/16/23.  Motion seconded by Commissioner Chee.  Motion carried (4-0).

New Business
Executive Director Izumi-Nitao stated that the following Conciliation Agreement(s) on the agenda was 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. 24-02 – In Re the Matter of Hawaii Cannabis Industry Association PAC – 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 Chee.  Motion carried (4-0).

*Proposed Conciliation Agreement No. 24-03 – In Re the Matter of Representative Rosencrans 26 – 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 Chee moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Bonfiglio.  Motion carried (4-0).

*Proposed Conciliation Agreement No. 24-04 – In Re the Matter of Ignited Windward Citizens – 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 Commissioner Chee.  Motion carried (4-0).

*Consideration, Discussion, and/or Approval of Commission Legislation for the 2024 Legislative Session – Executive Director Izumi-Nitao reported that four (4) bills that were introduced in the 2023 Legislative Session, but did not pass, are being proposed for the Commission’s consideration for the 2024 Legislative Session.  They are:

• CSC-01 (24), RELATING TO PARTIAL PUBLIC FUNDING – Increases the amount of partial public financing available for all offices. Amends HRS §11-425 by increasing the maximum amount of public funds available for all offices by 50% and for the Office of Hawaiian Affairs from $1,500 in an election year to 10% of the expenditure limit for each election.  Amends HRS §11-429(a) by increasing the amount of qualifying contributions required to be collected for the Office of Hawaiian Affairs from more than $1,500 in the aggregate to more than $5,000 in the aggregate.  Provides for payments of $2 for each $1 of qualifying contributions in excess of the minimum qualifying contribution amounts.  Provides for an unspecified amount of appropriations for the two fiscal years of the next biennium to pay for the increase in the partial public financing program.
• CSC-02 (24), RELATING TO CONTRIBUTIONS BY STATE AND COUNTY CONTRACTORS AND GRANTEES OF THE STATE – Amends HRS §11-355 by applying the ban on state and county contractors to grantees of the state under Chapter 42F and to the owners, officers, and immediate family of the government contractor or state grantee. Currently, only the entity that is the government contractor, is prohibited from making political contributions.  A contractor can easily get around the ban by having its officers, and their family member make contributions, including false name contributions.  This bill will prevent this problem.  Also, state grantees are in the same position as government contractors.  Both receive state funds that have been appropriated by the Legislature.  Thus, the ban should apply to state grantees too.
• CSC-03 (24), RELATING TO CANDIDATE COMMITTEE EXPENDITURES – Amends HRS §11-381 to eliminate the use of campaign funds to purchase up to two tickets for an event or fundraiser held by another candidate or committee. The Commission has found that this practice is inconsistent with the provisions of HRS §11-382 which prohibits the use of campaign funds to support the campaigns of other candidates or campaign against another candidate not directly opposing the candidate with which they are directly associated.  Pursuant to HRS §11-383, the only exceptions to HRS §11-382 are for political parties who may support more than one candidate as well as a candidate for the office of governor or lieutenant governor may support a co-candidate in the general election.
• CSC-04 (24), RELATING TO THE SOLICITATION AND ACCEPTANCE OF CAMPAIGN CONTRIBUTIONS BY CANDIDATE COMMITTEES – Amends HRS §11-357 to prohibit elected officials as defined in HRS §11-342(d) from soliciting and accepting campaign contributions during any regular session or special session of the state legislature, including any extension of any regular session or special session and any legislative recess days, holidays, and weekends. This bill is submitted as a strategy to deter public corruption.

Concerns were raised concerning CSC-02 (24).  Specifically, whether “owner” includes shareholders.  Executive Director Izumi-Nitao to work with Commissioner Chee in addressing the issue and to share with the Commission at the next meeting.

Discussion ensued regarding whether other measures should be considered.

Commissioner Bonfiglio moved to approve CSC-01, CSC-03, and CSC-04 proposed legislation for the 2024 Legislative Session.   Motion seconded by Commissioner Chee.  Motion carried (4-0).

Old Business – None

Report from Executive Director
*Report on Compliance of Filing Timely Disclosure Reports – Executive Director Izumi-Nitao provided an update on compliance of past disclosure reports. She stated that many of the non-filers represent the same committees that have failed to file prior reports and have been brought to the attention of the Attorney General’s Office – Civil Recoveries Division.  She further reported that the Commission’s referral of Docket No. 23-19 to the Honolulu Prosecutor’s Office in December 2022, resulted in Kaniela Ing pleading no contest to a misdemeanor charge of Failure to Timely File Supplemental Report with the Commission on 8/8/28.  The court granted Ing a 1-year deferral of his no contest plea during which time he was told that he cannot commit another crime, he cannot leave Oahu without the court’s permission, and he must make a $100 contribution to the State General Fund, make a contribution to the Criminal Injuries Compensation Fund, and pay a $75 probation services fee.  The Honolulu Prosecutor’s Office issued a press release of Kaniela Ing’s sentence on 8/8/28.

*Update on Appointment of New Commissioners – Executive Director Izumi-Nitao reported that she has been in communication with Boards & Commissions concerning the Commissioner vacancies.  She stated that this morning, Governor Green appointed Jon Itomura to the open Commission seat.  She will be in contact with him to schedule an orientation and to obtain his Oath of Office before he officially appears before the Commission.

*Report on 2024 CSC Annual Online Survey – Executive Director Izumi-Nitao reported that the CSC issues an annual survey to assess the Commission’s performance and obtain any feedback.  She stated that this represents the 12^th year of the survey which will be issued on October 2^nd and remain open until October 30^th.  Eblasts will go out informing committees, interested parties, and the public of the survey.  She stated that a full report will be given at a later Sunshine meeting and the results will be posted on the Commission’s website.  Lastly, she went over the contents of the survey.

Next Meeting:
Scheduled for Wednesday, October 11, 2023 at 10:00 a.m. via Zoom.

Chair Lum asked for a motion to adjourn the meeting.  Commissioner Chee moved to adjourn the meeting.  Motion seconded by Commissioner Bonfiglio.  Motion carried (4-0).

Meeting Adjourned at 10:42 a.m.