Campaign Spending Commission

Campaign Spending Commission
Zoom Video Conference
September 22, 2022
9:00 a.m.

Commissioners Present
Stanley Lum, Maryellen Markley, Ph.D., Bryan Luke, Neal Herbert, Vic Bonfiglio

Staff Present
Kristin Izumi-Nitao, Tony Baldomero, Gary Kam, Yayoi Tumamao, Janelle Tanna
Deputy Attorney General Candace Park

Guests
Darius K. Kila, Stacy Ellamar, Rory Parker, Dan Nakaso (Star-Advertiser), Blaze Lovell, Jill, Lferrin-Beaujon, Kristy Ringor, Janie Gueso, Ashley Siliado, Tracy Ryan, Michelle Tippens, Christopher Delaunay (Pacific Resource Partnership), KITV4 Island News, Robert M. Armstrong, Eric Weinert (joined at 10:14 a.m.)

Call to Order
Chair Lum called the meeting to order at 9:04 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 the Commissioners present stated that no one else was with them.

Consideration and Approval of Minutes of Meeting on 8/10/22
Chair Lum called for approval of the 8/10/22 meeting minutes.  Vice Chair Markley moved to approve the minutes on 8/10/22.  Motion seconded by Commissioner Bonfiglio.  Motion carried (5-0).

New Business
Chair Lum asked for a motion to take “Docket No. 23-14 – In Re the Matter of Kaialii Kahele” and “Consideration, Discussion, and/or Approval of Commission Legislation for the 2023 Legislative Session” out of order of business on the agenda.

Commissioner Luke moved to take “Docket No. 23-14 – In Re the Matter of Kaialii Kahele” and “Consideration, Discussion, and/or Approval of Commission Legislation for the 2023 Legislative Session” out of order.  Motion seconded by Commissioner Bonfiglio.  Motion carried (5-0).

*Docket No. 23-14 – In Re the Matter of Kaialii Kahele – General Counsel Kam reported that a complaint by the Executive Director had been filed against Kaialii Kahele for the prohibited use of information contained in campaign spending reports for the solicitation of contributions.

He reported that on 7/8/22, the Governor’s Office forwarded to Commission staff a complaint that that office had received from a constituent.  The constituent complained about receiving a letter from Respondent Kahele soliciting a donation to his campaign since the constituent had contributed to Governor Ige’s campaign in 2014.

Commission staff obtained a copy of Respondent Kahele’s solicitation letter from the constituent on or about 7/11/22.  Commission staff contacted a representative of David Ige for Governor and asked if Governor Ige’s campaign committee had shared 2014 contributor information with Respondent Kahele’s campaign.  The representative informed Commission staff that the Governor Ige’s campaign committee did not share contributor information with Respondent Kahele’s campaign.  However, on 10/21/14, David Ige for Governor 2014 had electronically filed a Statement of Qualifying Contributions with the Commission in which the constituent’s qualifying contribution was reported.

On 7/11/22, Commission staff sent a letter to Respondent Kahele’s committee seeking, among other things, a confirmation “that your committee obtained the 2014 contributor information from the Statement of Qualifying Contributions that was filed by David Ige for Governor 2014 on October 21, 2014.”

Respondent Kahele’s committee did not respond to the July 11th letter, so a follow-up letter was sent by Commission staff to the committee on 7/29/22.

Respondent Kahele called Commission staff and confirmed that the solicitation letter he sent to the constituent was based upon information contained in the Statement of Qualifying Contributions filed by David Ige for Governor 2014 on October 21, 2014.   Further, he informed Commission staff that he randomly selected ”100 or so” contributors from the 2014 Statement of Qualifying Contributions and sent his campaign committee’s solicitation letter to those contributors.

HRS §11-344 provides that, “No information in the reports or copies of the reports filed with the commission shall be sold or used by any person for the purpose of soliciting contributions or for any commercial purpose.”

Respondent Kahele used the information contained in the Statement of Qualifying Contributions filed on October 21, 2014, by David Ige for Governor 2014 for the purpose of soliciting contributions.

On 9/6/22, Commission staff sent Respondents a copy of the complaint and set the matter on the 9/22/22 Commission agenda.

General Counsel Kam stated that the complaint alleges a statutory violation that is being considered by the Commission for the first time, and thus, the Commission’s Schedule of Fines does not contain a fine for a violation of HRS §11-344.  He 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 $1,000 for this violation, and order that any and all administrative penalties be deposited into the general fund pursuant to HRS §11-410(e).

Commissioner Luke 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).

*Consideration, Discussion, and/or Approval of Commission Legislation for the 2023 Legislative Session – General Counsel Kam reported the following 11 bills that have been drafted for the Commission’s consideration for the 2023 Legislative Session:

o    CSC-01 (23), RELATING TO VIOLATIONS OF CAMPAIGN FINANCE LAW

This measure was introduced the last 4 sessions (2022 – H.B. 1423/S.B. 2044; 2021 – H.B. 141/S.B. 401; 2020 – H.B. 1707/S.B. 2148; 2019 – H.B. 162/S.B. 137), but did not pass.  This measure amends HRS §11-410 by increasing the amount of fine from $1,000 to $5,000 that may be assessed against a noncandidate committee making only independent expenditures that has received at least one contribution of more than $10,000, or spent more than $10,000 in an election period, for campaign finance violations.  Allows the Commission to order the fine be up to three times the amount of the unlawful contribution or expenditure, and to order that the payment of the fine assessed against a noncandidate committee, or any portion thereof, be paid from the personal funds of an officer of the noncandidate committee.

o    CSC-02 (23), RELATING TO ORDERS OF THE CAMPAIGN SPENDING COMMISSION

This measure was introduced the last 3 sessions (2022 – H.B. 1426/S.B. 2041; 2021 – H.B. 139/S.B. 399; 2020 – S.D. 1; H.B. 1705/S.B. 2145), but did not pass.  This measure amends HRS §11-410 by:  (1) amending subsection (b) to provide that a person waives the right to a contested case hearing if the person fails to request a contested case hearing within twenty days of receipt of the Commission’s preliminary determination; and (2) amending subsection (d) to provide that a final order of the Commission may be filed in the First Circuit Court for confirmation as a civil judgment, enforceable and collectible as any other judgment issued in the circuit courts.  These amendments were suggested by the deputies in the Civil Recoveries Division of the Department of the Attorney General who are helping the Commission by enforcing its orders in the First Circuit Court.

o    CSC-03 (23), RELATING TO CANDIDATE COMMITTEE AND NONCANDIDATE COMMITTEE ORGANIZATIONAL REPORTS

Amends HRS §11-322 and §11-333 to require the Commission to publish on its website the names of candidate and persons who qualify as noncandidate committees who fail to register with the Commission.  Pursuant to HRS §11-321, candidates are required to file their organizational report with the Commission within ten days of the earlier of the date the candidate files nomination papers for office, or the date the candidate or candidate committee receives contributions or makes or incurs expenditures of more than $100 in the aggregate during the election period.  Further, noncandidate committees are required to file their organizational report with the Commission within ten days of receiving contributions or making or incurring expenditures of more than $1,000, in the aggregate, in a two-year election period; provided that within the thirty-day period prior to an election, a noncandidate committee must register by filing an organizational report within two days of receiving contributions or making or incurring expenditures of more than $1,000, in the aggregate, in a two-year election period.  In every election, there are candidates and persons who qualify as noncandidate committees who fail to register, and thus, the public is unable to see who is in charge of these committees as well as their disclosure reports.

o    CSC-04 (23), 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.  This practice leads to candidates building factions and buying influence.  Further, it 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.

o    CSC-05 (23), RELATING TO CANDIDATE COMMITTEE AND NONCANDIDATE COMMITTEE FUNDRAISERS

Amends HRS §11-342 to require candidate committees and noncandidate committees to file fundraiser notices regardless of the price or suggested contribution for attending the function (i.e., more than $25 per person) to increase transparency.

o    CSC-06 (23), 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.

o    CSC-07 (23), RELATING TO LIMITING CAMPAIGN SPENDING CASH CONTRIBUTIONS

Amends HRS §11-351 to limit the amount of cash contribution a candidate committee and noncandidate committee can receive to $100. It is difficult to follow the money with cash transactions and may lead to fraud and abuse.  $100 is a sufficient amount to permit the public to participate in the electoral process.  Further, it mirrors the amount permitted for calabash bowls as provided in HRS §11-353(d) and would require that receipts be given for all contributions received.

o    CSC-08 (23), RELATING TO CONTRIBUTIONS BY STATE AND COUNTY CONTRACTORS AND GRANTEES OF THE STATE

Applies the ban on contributions from state and county contractors to grantees of the state under Chapter 42F, and grantees of a county under county law, and to the owners, officers, employees and immediate family of the government contractor or state and county grantees.  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 owners, officers and employees, and their family member make contributions, including false name contributions.  This bill will prevent this problem.  Also, state and county grantees are in the same position as government contractors.  Both receive state or county funds that have been appropriated by the legislative body.  Thus, the ban should apply to state and county grantees too.

Commissioner Luke asked how this law would be enforced.  General Counsel Kam responded that he would follow a similar process as investigations for false name contributions such as looking into contributions made on the same day and matching contributors’ employers.  He also said he would look at the public database on government contractors and grantees.  Commissioner Luke asked if this ban would apply to subcontractors. General Counsel Kam responded that it would not as there is no database on subcontractors.  Executive Director Izumi-Nitao added that although the staff would like to apply this ban on subcontractors, they did not want to introduce a bill that they would not be able to enforce.

o    CSC-09 (23), RELATING TO PRELIMINARY DETERMINATION OF PROBABLE CAUSE

Amends HRS §11-405 to provide for the service of the Commission’s preliminary determination of probable cause via first class mail.  Currently, the Commission is required to serve the preliminary determination of probable cause via certified mail.  The Commission has had instances where the candidate refused to claim the letter and the letter was returned to the Commission, thereby preventing the service of the document as required by law.  At the same time, the preliminary determination of probable cause and other documents have been sent to the candidate’s address via first class mail, as provided in the candidate’s organizational report, and were not returned to the Commission as undeliverable.

o    CSC-10 (23), RELATING TO COMPLAINTS ALLEGING VIOLATIONS OF CAMPAIGN SPENDING LAWS

Amends HRS §11-403 to provide for a presumption in favor of the Commission for respondents who fail to explain or otherwise respond to complaints alleging campaign spending violations.  Commission staff consists of five members and five Commissioners who are volunteers in the community who meet once a month in a Sunshine meeting.  There are over 800 candidate and noncandidate committees that the Commission regulates.  This proposal will allow the Commission to more timely and efficiently address campaign finance violations which is especially critical in an election year.

o    CSC-11 (23), RELATING TO PARTIAL PUBLIC FUNDING

Increases the amount of partial public financing available for all offices.  Amends HRS §11-423(d) by increasing the expenditure limits by 50% for all offices.  Amends HRS §11-425 by increasing the maximum amount of public funds available for all offices by 50%.  Places a candidate for the office of Hawaiian Affairs at the same level as a candidate for the office of Lieutenant Governor for the public financing of elections.  Amends HRS §11-429(a) by increasing the amount of qualifying contributions for the Office of Hawaiian Affairs from more than $1,500 in the aggregate to more than $50,000 in the aggregate.  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.

General Counsel Kam stated that Commission staff are still working on this bill, and thus, will not ask them to approve this bill at this time.

Commissioner Bonfiglio moved to approve the proposed legislations for the 2023 Legislative Session.  Motion seconded by Vice Chair Markley.  Motion carried (5-0). 

*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. 23-02 – In Re the Matter of Friends of Darius Kila – Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the 2nd Preliminary Primary Report and requests that they assess a reduced fine from $300 to $100 as it is Respondent’s first violation. Chair Lum recognized Mr. Darius Kila who was present.  Mr. Kila stated that he had issues filing the report and thus, he appreciated the reduction of the fine.

Commissioner Luke moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Herbert.  Motion carried (5-0).

*Proposed Conciliation Agreement No. 23-03 – In Re the Matter of Committee to Elect Jonathan Lee – Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the 1B Preliminary Primary Report and requests that they assess a reduced fine from $300 to $100 as it is Respondent’s first violation. Chair Lum asked if there were any comments or questions.

Commissioner Luke moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Bonfiglio.  Motion carried (5-0).

*Proposed Conciliation Agreement No. 23-04 – In Re the Matter of Rory Parker for Kauai County Council – 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 recognized Mr. Rory Parker who was present.  Mr. Parker acknowledged that he filed the report late and thanked the Commission for their consideration of the reduced assessment.

Commissioner Luke moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Bonfiglio.  Motion carried (5-0).

*Proposed Conciliation Agreement No. 23-05 – In Re the Matter of Friends of Kinsey Texeira – Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the 2nd Preliminary Primary Report and requests that they assess a reduced fine from $452.50 to $150.83 as it is Respondent’s first violation. Chair Lum asked if there were any comments or questions.

Commissioner Luke moved to approve the proposed conciliation agreement.  Motion seconded by Vice Chair Markley.

Commissioner Herbert asked if the 25% fine calculation was applied to the original fine amount.  Associate Director Baldomero responded that it was.

Motion carried (5-0).

*Proposed Conciliation Agreement No. 23-06 – In Re the Matter of Friends of Bud Stonebraker – 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 Luke moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Bonfiglio.  Motion carried (5-0).

*Proposed Conciliation Agreement No. 23-07 – In Re the Matter of Friends of Jamie Detwiler – Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the 2nd Preliminary Primary Report and requests that they assess a reduced fine from $300 to $100 as it is Respondent’s first violation.

Chair Lum recognized Ms. Jamie Detwiler who was present. Ms. Detwiler thanked the Commissioners for this opportunity and stated that she and her treasurer both acknowledge the violation.  She also recommended the Commission to allow additional email addresses to receive courtesy eBlast report reminders.  Associate Director Baldomero stated that he will look into it and thanked Ms. Detwiler for her recommendation.

Commissioner Luke moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Herbert.  Motion carried (5-0).

*Proposed Conciliation Agreement No. 23-08 – In Re the Matter of Friends of Austin Maglinti – Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the 1B Preliminary Primary Report ($200 → $100) and the 2nd Preliminary Primary Report ($300 → $150) and requests that they assess a reduced fine from $500 to $250 as it is Respondent’s second violation. Chair Lum asked if there were any comments or questions.

Vice Chair Markley moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Bonfiglio.  Motion carried (5-0).

*Proposed Conciliation Agreement No. 23-09 – In Re the Matter of Friends of Dan Wade – Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the 1B Preliminary Primary Report and requests that they assess a reduced fine from $388.96 to $129.65 as it is Respondent’s first violation. Chair Lum asked if there were any comments or questions.

Vice Chair Markley moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Luke.  Motion carried (5-0).

*Proposed Conciliation Agreement No. 23-10 – In Re the Matter of Our Hawaii PAC – Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Statement of Information for Electioneering Communications and requests that they assess a reduced fine from $250 to $83.33 as it is Respondent’s first violation. Chair Lum asked if there were any comments or questions.

Commissioner Luke moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Bonfiglio.  Motion carried (5-0).

*Proposed Conciliation Agreement No. 23-11 – In Re the Matter of Friends of Jenny Boyette – 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 Luke moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Bonfiglio.  Motion carried (5-0).

*Proposed Conciliation Agreement No. 23-12 – In Re the Matter of Bob McDermott for State House – 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 $50 to $25 as it is Respondent’s second violation. Chair Lum asked if there were any comments or questions.

Commissioner Luke moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Bonfiglio.  Motion carried (5-0).

*Proposed Conciliation Agreement No. 23-13 – In Re the Matter of Megeso for Mayor – Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the 2nd Preliminary Primary Report and requests that they assess a reduced fine from $868.78 to $289.59 as it is Respondent’s first violation. Chair Lum asked if there were any comments or questions.

Commissioner Luke moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Bonfiglio.  Motion carried (5-0).

*Proposed Conciliation Agreement No. 23-14 – In Re the Matter of Friends of Chase Nomura – Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the 2nd Preliminary Primary Report and requests that they assess a reduced fine from $790.50 to $263.50 as it is Respondent’s first violation. Chair Lum asked if there were any comments or questions.

Commissioner Luke moved to approve the proposed conciliation agreement.  Motion seconded by Vice Chair Markley.  Motion carried (5-0).

*Proposed Conciliation Agreement No. 23-15 – In Re the Matter of MACK – Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the 1B Preliminary Primary Report ($1,050 → $350) and the 2nd Preliminary Primary Report ($310.50 → $103.50) and requests that they assess a reduced fine from $1,360.50 to $453.50 as it is Respondent’s first violation. Chair Lum asked if there were any comments or questions.

Commissioner Luke moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Bonfiglio.  Motion carried (5-0).

*Proposed Conciliation Agreement No. 23-16 – In Re the Matter of Right Arm Paddling, LLC – Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Preliminary Primary Report and requests that they assess a reduced fine from $1,500 to $500 as it is Respondent’s first violation. Chair Lum asked if there were any comments or questions.

Commissioner Luke moved to approve the proposed conciliation agreement.  Motion seconded by Vice Chair Markley.  Motion carried (5-0).

*Proposed Conciliation Agreement No. 23-17 – In Re the Matter of Schwartz, Jack (Jason) W. – Executive Director Izumi-Nitao explained that this proposed conciliation agreement concerns the late filing of the Final Primary 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 Luke moved to approve the proposed conciliation agreement.  Motion seconded by Commissioner Bonfiglio.  Motion carried (5-0).

*Docket No. 23-06 – In Re the Matter of Michelle Tippens, Tracy Ryan, and Libertarian Party of Hawaii – Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Michelle Tippens, Tracy Ryan, and Libertarian Party of Hawaii for the late filing of the Preliminary Primary Report.

She reported that in the Organizational Report filed with the Commission, Respondent Michelle Tippens is the chairperson and Respondent Tracy Ryan is the treasurer of the noncandidate committee called Libertarian Party of Hawaii.

Pursuant to HRS §11-336(a)(1), Respondents were required to file the Preliminary Primary Report for the period covering 2/27/22 through 7/29/22 by 11:59 p.m. Hawaii standard time on 8/3/22.  Respondents did not file the report by the deadline.

On 8/4/22, Commission staff notified Respondents via first class mail of their failure to file the report and that a fine would be imposed.

On 8/4/22, Respondents electronically filed the Preliminary Primary Report.

On 8/5/22, Commission staff sent Respondents a letter via first class mail notifying them that a fine of $300 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 8/22/22.

On 8/5/22, Commission staff returned a call to Respondent Libertarian Party of Hawaii’s then treasurer Eric Weinert concerning the late filed report.  Mr. Weinert stated that he thought he had filed the report before the deadline and was unaware that when he filed the report, some of the contributions to the committee failed to include the employer and occupation information since the contributions were over $100, and thus, the report was not able to be filed.  He stated that he would like to challenge the fine and would be submitting a response to the complaint.  Respondents are not eligible for a conciliation agreement as there have been multiple late reports.

On 8/10/22, Commission staff sent Respondents a copy of the complaint and set the matter on the 9/22/22 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 $300 for the late filing of the Preliminary Primary Report, and order that any and all administrative penalties be deposited into the general fund pursuant to HRS §11-340(g) within two (2) weeks of receipt of the order.

Respondents Michelle Tippens and Tracy Ryan were present and addressed the Commission.  Respondent Ryan asked if the former treasurer, Mr. Eric Weinert submitted a written statement.  Executive Director Izumi-Nitao responded that the Commission did not receive anything from Mr. Weinert.

Respondent Ryan explained that Mr. Weinert filed the report two (2) days before the filing deadline without the understanding that the report can be rejected by the system.  His assumption was that when he pressed the “submit” button, everything was in order.  When Respondent Ryan did not see the report posted on the Commission’s website, she informed Mr. Weinert and the report was filed.  She asserted that the problem was not that the report was filed late, but the report was filed with some missing information and therefore, was not accepted by the filing system.

Respondent Ryan asked about the notification process when the report submission does not go through.  She reasoned that if there was a notification that informed Mr. Weinert that the report did not go through due to the missing information, he would have fixed it and filed the report before the deadline.  Respondent Ryan stated that Mr. Weinert felt that he filed on time because the system not accepting the report is not the same as being negligent and not filing on time.

Executive Director Izumi-Nitao explained that the law requires noncandidate committees to disclose employer and occupation information of contributors who donate in the aggregate of more than $100 which was not fulfilled in this case.  There are a number of validation features in the system and one of them addresses this requirement.  Associate Director Baldomero further explained that when there is an attempt to file a report that is missing the required employment and occupation information for these contributors, a validation error pops up with a list of the contributors so that the user can correct those entries to add the necessary information and refile the report.  When the validation error comes up, the report does not go through.

Respondent Ryan stated that Mr. Weinert must have skipped the validation before submitting the report and was unaware of what happened.

Respondent Ryan suggested the Commission to consider legislation to increase the $100 threshold which has been in place since the 90’s because the value of the dollar has changed.  She said there is a question of materiality and de minimus reporting that was incorporated in the law passed decades ago.  She reasoned that it is important not to spend too much time on things that are not material.

Respondent Ryan also stated that there should be a statute of limitations for prior late filings particularly for noncandidate committees that are volunteer organizations that have change-overs every 2 to 3 years.  She said a number of their past late filings happened more than a decade ago.  Respondent Tippens echoed the same concern regarding prior late filings and conciliation agreement eligibility.

Commissioner Luke 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).

*General Counsel Kam left the meeting at 10 a.m.

*Docket No. 23-07 – In Re the Matter of Janie Gueso, Ashley Siliado, and Team Gueso – Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Janie Gueso, Ashley Siliado, and Team Gueso for the late filing of the 2nd Preliminary Primary Report.

She reported that in the Organizational Report filed with the Commission, Respondent Janie Gueso is the candidate and Respondent Ashley Siliado is the treasurer of the candidate committee called Team Gueso.

Pursuant to HRS §11-334(a)(1)(C), Respondents were required to file the 2nd Preliminary Primary Report for the period covering 7/1/22 through 7/29/22 by 11:59 p.m. Hawaii standard time on 8/3/22.  Respondents did not file the report by the deadline.

On 8/4/22, Commission staff notified Respondents via first class mail of their failure to file the report and that a fine would be imposed.

On 8/8/22, Respondents electronically filed the 2nd Preliminary Primary Report.

On 8/9/22, Commission staff sent Respondents a letter via first class mail notifying them that a fine of $740.23 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 8/23/22.

On 8/11/22, Respondent Gueso called the Commission to get clarification on how the fine amount was calculated.  Commission staff informed her that it was 25% of the total amount of expenditures (i.e., $2,960.93) that were reported in her 2nd Preliminary Primary Report.  Commission staff further informed her that since this was her first late report, Respondents were eligible for a conciliation agreement which would reduce the fine by two-thirds (i.e., $246.74).  Respondent Gueso was unsure if she would be agreeable to a reduced assessment, and therefore, said that she would like to contest the fine and come before the Commission at the next Commission meeting.

On 8/12/22, Commission staff sent Respondents a copy of the complaint and set the matter on the 9/22/22 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 $740.23 for the late filing of the 2nd Preliminary Primary 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 if the Commission so orders, order that any and all administrative penalties be deposited into the general fund pursuant to HRS §11-340(g) within two (2) weeks of receipt of the order.

Respondents Janie Gueso and Ashley Siliado were present and addressed the Commission. Respondent Gueso stated that this is her first time running for office and has never been involved with public affairs.  She shared that she is running a grass roots family-style campaign to teach her children about the electoral process.  Respondent Gueso explained that she did not know that this report was due and did not see the report reminder emails because they were sent to her treasurer’s email address.  She further explained that at the time of the filing deadline, she was coming back from California and got sick with COVID-19.  Her treasurer, who is her daughter, also got sick.  Respondent Gueso stated that she has since changed the email address on record to her own and has printed her reporting schedule to put on her calendar.  She also said she has a letter from her doctor about her ordeal with COVID-19.  Respondent Gueso insisted that she will do better next time as she is being diligent about the deadlines and asked the Commission to waive the fine.

Commissioner Luke asked if Ms. Gueso or anyone from her campaign attended training.  Respondent Gueso responded that she did not because by the time she inquired about it, the training has already passed but she would like to attend the next one.

Executive Director Izumi-Nitao stated that this concerns the 2^nd Preliminary Primary Report which is a significant report that is due right before the primary election and while the circumstances Respondent Gueso had outlined are unfortunate, she did not believe they sustained any reason to waive the fine.  Executive Director Izumi-Nitao explained the importance of processing the election to ensure voters have access to the reports.  She further explained that this is a situation where the Commission has to balance its priorities and that candidates are accountable to the public, the voters, their opponents, and the State of Hawaii.  Executive Director Izumi-Nitao reminded the Commission that since this is Respondent’s first violation, she is eligible for a 2/3^rd reduction through a conciliation agreement which would bring her fine amount down to $246.74.

Commissioner Luke proposed a motion to defer the matter to the next meeting and allow Respondent Gueso to enter into a conciliation agreement if she is amenable to the reduced assessment.

Respondent Gueso asked if the Commission would consider her testimony and waive the fine.  Commissioner Luke responded that he would not vote to waive the fine because there is a clear violation.  Respondent Gueso stated that it made no sense in appearing to explain her personal situation and that it felt impersonal.  She further stated that she hopes this is not going to discourage people from running for office.  Chair Lum thanked Respondent Gueso for her statement, however, he emphasized that over 90% of people who run for office comply with these rules, so it is important for her as a community leader to also follow through.  Respondent Gueso agreed to work with the staff on a conciliation agreement.

Commissioner Bonfiglio moved to defer the matter to the next meeting to allow Respondent Gueso to work with staff on a conciliation agreement.  Vice Chair Markley seconded.  Motion carried (5-0).

*Docket No. 23-08 – In Re the Matter of Shaena Hoohuli and Hoohuli Headquarters – Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against candidate Shaena Hoohuli and her candidate committee called Hoohuli Headquarters for the failure to submit the candidate Electronic Filing Form, amend their Organizational Report, and file the Supplemental Report.

Respondent Hoohuli is not running in the 2022 election.

HRS §11-322(b) provides that any change in information previously reported in a committee’s organizational report shall be electronically filed with the Commission within ten days of the change being brought to the attention of the committee chairperson or treasurer.  Respondents’ former treasurer Samantha Watson resigned as of 2/9/22, and thus, Respondents were required to amend their Organizational Report by 2/19/22.

On 2/18/22, Commission staff sent Respondent Hoohuli a letter via first class mail informing her to submit the Candidate Electronic Filing Form and amend their Organizational Report by 3/4/22.  The letter informed Respondent Hoohuli of the imposition of an administrative fine if it was not amended.  Respondent Hoohuli did not amend her Organizational Report.

On 3/10/22, Commission staff spoke with Respondent Hoohuili who informed staff that would like to terminate her committee’s registration with the Commission.  Commission staff sent Respondent Hoohuli an email on how to terminate her candidate committee’s registration and reminded her that reports would still need to be filed until the Commission approves her termination request.

On 8/12/22, Commission staff sent Respondent Hoohuli a letter via first class mail informing her that a fine of $75 would be assessed for the failure to file the Electronic Filing Form and amending the Organizational Report. The letter informed Respondents that they could avoid the complaint process for their failure to submit the Electronic Filing Form and the Organizational Report by waiving their rights to written notice and an opportunity to be heard at a HRS chapter 92 public meeting and a HRS chapter 91 contested case hearing, and voluntarily paying the fine amount, submitting their Electronic Filing Form, and filing their amended Organizational Report by 8/26/22.

Respondents did not pay the fine or submit the Electronic Filing Form and amend the Organizational Report.

Pursuant to HRS §11-334(b), Respondents were required to file the Supplemental Report for the period covering 1/1/22 through 6/30/22 by 11:59 p.m. Hawaii standard time on 8/1/22.  Respondents did not file the report by the deadline.

On 8/2/22, 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 aforementioned report.

On 8/11/22, Respondent Hoohuli called Commission staff about the Notice of Late Report and told staff that this was not a priority to her.

On 9/6/22, Commission staff sent Respondents a copy of the complaint and set the matter on the 9/22/22 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 $25 for failing to submit the Electronic Filing Form, $50 for failing to amend the Organizational Report, and $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 if the Commission so orders, 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 form and report(s) within two (2) weeks of receipt of this order.

Commissioner Luke 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. 23-09 – In Re the Matter of Chad Owens, Rena Owens, and Friends of Chad Owens – Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Chad Owens, Rena Owens, and Friends of Chad Owens for the failure to file the 2nd Preliminary Primary Report.

Respondent Owens filed nomination papers to be a candidate in the 2022 election.

She reported that in the Organizational Report filed with the Commission, Respondent Chad Owens is the candidate and Respondent Rena Owens is the treasurer of the candidate committee called Friends of Chad Owens.

Pursuant to HRS §11-334(a)(1)(C), Respondents were required to file the 2nd Preliminary Primary Report for the period covering 7/1/22 through 7/29/22 by 11:59 p.m. Hawaii standard time on 8/3/22.  Respondents did not file the report by the deadline.

On 8/4/22, Commission staff notified Respondents via first class mail of their failure to file the report and that a fine would be imposed.

On 8/18/22, Commission staff phoned Respondents and left a voicemail informing them that if the report was not filed, a complaint would be filed.  Respondents did not file the report.

On 9/6/22, Commission staff sent Respondents a copy of the complaint and set the matter on the 9/22/22 Commission agenda.  After the complaint was filed and sent to the Respondents, they filed the 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 the failure to file the 2nd Preliminary Primary 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 if the Commission so orders, order that any and all administrative penalties be deposited into the general fund pursuant to HRS §11-410(e) within two (2) weeks of receipt of this order.

Commissioner Luke 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. 23-10 – In Re the Matter of Banner Fanene and Friends for Banner S. Fanene – Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Banner Fanene and Friends for Banner S. Fanene for the failure to file the Supplemental Report.

Respondent Fanene did not run as a candidate in the 2022 election.

She reported that in the Organizational Report filed with the Commission, Respondent Banner Fanene is the candidate and treasurer of the candidate committee called Friends for Banner S. Fanene.

Pursuant to HRS §11-334(b), Respondents were required to file the Supplemental Report for the period covering 1/1/22 through 6/30/22 by 11:59 p.m. Hawaii standard time on 8/1/22.  Respondents did not file the report by the deadline.

On 8/2/22, Commission staff notified Respondents via first class mail of their failure to file the report and that a fine would be imposed.

On 8/15/22, Commission staff phoned Respondent Fanene and left a voicemail informing them that if the report was not filed, a complaint would be filed.  Respondents did not file the report.

On 9/6/22, Commission staff sent Respondents a copy of the complaint and set the matter on the 9/22/22 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 the failure 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 if the Commission so orders, 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 report within two (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 Herbert.  Motion carried (5-0).

*Docket No. 23-11 – In Re the Matter of Travis Gyldstrand and Committee to Elect Travis Gyldstrand – Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Travis Gyldstrand and Committee to Elect Travis Gyldstrand for the failure to file the Supplemental Report.

Respondent Gyldstrand did not run as a candidate in the 2022 election.

She reported that in the Organizational Report filed with the Commission, Respondent Travis Gyldstrand is the candidate and treasurer of the candidate committee called Committee to Elect Travis Gyldstrand.

Pursuant to HRS §11-334(b), Respondents were required to file the Supplemental Report for the period covering 1/1/22 through 6/30/22 by 11:59 p.m. Hawaii standard time on 8/1/22.  Respondents did not file the report by the deadline.

On 8/2/22, Commission staff notified Respondents via first class mail of their failure to file the report and that a fine would be imposed.

On 8/15/22, Commission staff phoned Respondent Gyldstrand and left a voicemail informing them that if the report was not filed, a complaint would be filed.  Respondents did not file the report.

On 9/6/22, Commission staff sent Respondents a copy of the complaint and set the matter on the 9/22/22 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 the failure 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 if the Commission so orders, 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 report within two (2) weeks of receipt of this order.

Commissioner Luke 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. 23-13 – In Re the Matter of Mark Ing and Friends of Kaniela Ing – A complaint by the Executive Director against Mark Ing and Friends of Kaniela Ing for the failure to file the Supplemental Report in violation of Hawaii Revised Statutes sections 11-334 and 11-410.  The Commission to conduct an initial determination of the complaint in accordance with Hawaii Revised Statutes section 11-404 – i.e., summarily dismiss the complaint, investigate further, make a preliminary determination of the existence of probable cause to believe a violation of law has been committed, or refer the complaint to an appropriate prosecuting attorney for prosecution.

Executive Director Izumi-Nitao reported that a complaint by the Executive Director had been filed against Mark Ing and Friends of Kaniela Ing for the failure to file the Supplemental Report.

Respondent Ing did not run as a candidate in the 2022 election.

She reported that in the Organizational Report filed with the Commission, Respondent Mark Ing is the candidate and treasurer of the candidate committee called Friends of Kaniela Ing.

Pursuant to HRS §11-334(b), Respondents were required to file the Supplemental Report for the period covering 1/1/22 through 6/30/22 by 11:59 p.m. Hawaii standard time on 8/1/22.  Respondents did not file the report by the deadline.

On 8/2/22, Commission staff notified Respondents via first class mail of their failure to file the report and that a fine would be imposed.

On 8/29/22, Commission staff phoned Respondent Ing and left a voicemail informing them that if the report was not filed, a complaint would be filed.  Respondents did not file the report.

On 9/6/22, Commission staff sent Respondents a copy of the complaint and set the matter on the 9/22/22 Commission agenda.  However, the complaint was returned as undeliverable and needed to be re-sent to a new address.

Executive Director Izumi-Nitao recommended that the Commission defer the complaint to the next meeting because the Respondents did not receive the complaint on time.

Vice Chair Markley moved to defer the matter to the next meeting.  Motion seconded by Commissioner Luke.  Motion carried (5-0).

Commissioner Luke asked for an update regarding Mark Ing’s amended reports from a prior matter.  Executive Director Izumi-Nitao reported that General Counsel Kam is in communication with Mr. Ing’s attorney about the reports.

Old Business – None

Report from the Executive Director
*Report on Compliance of Filing Timely Disclosure Reports – Executive Director Izumi-Nitao reported the following:

• Late Contributions Report for candidate committees and Late Contributions/Expenditures Report for noncandidate committees for the period of 7/30/22 to 8/9/22 was due on 8/10/22.
  • 119 candidate committees filed on time.
  • 5 candidate committees did not file.
  • 49 noncandidate committees filed on time.
  • 3 noncandidate committees did not file.
• Final Primary Report for the reporting period of 7/30/22 to 8/13/22 was due on 9/2/22.
  • 312 candidate committees were expected to file this report.
  • 278 (89%) candidate committees filed on time.
  • 31 (10%) candidate committees did not file.
  • 3 (1%) candidate committees filed late.
  • As of today, 9 candidate committees have not filed yet.
  • 248 noncandidate committees were expected to file this report.
  • 231 (93%) noncandidate committees filed on time.
  • 16 (6%) noncandidate committee did not file.
  • 1 (1%) noncandidate committee (1%) filed late.
  • As of today, all noncandidate committees filed.
• Expenditures of Public Funds Report for the reporting period of 1/1/22 to 8/13/22 was due on 9/2/22.
  • Candidates who received public funds were required to file this report and they all filed on time.

With regard to the committees that have not filed prior election reports, Executive Director Izumi-Nitao reported that Commission staff continues to work with AG-CRD to obtain full compliance.

Chair Lum asked if there were any questions or comments.  There were none.

*Report on Commission to Improve Standards of Conduct (CISC) – Executive Director Izumi-Nitao reported that the CISC held a meeting on Legislative Process on 8/17/22 and regrouped on 8/24/22.  She further reported that CISC is not meeting in September so they can work on draft bills.

*Update on 2022 Election – Executive Director Izumi-Nitao reported that as a result of the primary election, there were 22 candidates who won the election outright and 150 candidates who did not make it to the general election.  They were sent a memorandum about their next steps.  Executive Director Izumi-Nitao further reported that upon review, disclosure reports filed by the candidates revealed 47 new noncandidate committees that needed to register with the Commission.

Associate Director Baldomero also reported the following:

• 368 candidates running in the 2022 election.
• 353 candidates were on the primary election ballot.
• 14 candidates did not appear on the primary election but will be on the general election ballot.
• 1 candidate (Carmen Lindsey for OHA Maui seat) was declared an outright winner without being on the ballots since she did not have an opponent.
• Total contributions received by candidates in the primary election: $15.37 million.
  • Highest contributions received: Josh Green ($3.41 million)
  • Second highest contributions received: Sylvia Luke ($934,000)
• Total loans received by candidates in the primary election: $3.51 million.
  • Highest loans: Vicky Cayetano ($2.35 million)
  • Second highest loans: Keith Amemiya ($310,000)
• 172 candidates filed the Affidavit to voluntarily agree to an expenditure limit.
  • 2 candidates who filed the Affidavit exceeded their expenditure limits in the primary.
• 40 candidates filed the Statement of Intent to Seek Public Funds.
  • So far, 10 candidates received public funds (total amount of $45,335.05).
  • 5 out of the 10 candidates won the primary election.
• Candidates that received the most independent spending in support:
  • Ikaika Anderson ($2.89 million).
  • Josh Green ($410,434).
• Candidates that received the most independent spending in opposition:
  • Sylvia Luke ($1.16 million).
  • Josh Green ($230,083).
• 274 noncandidate committees currently registered with the Commission.
  • 26 are Super PACs.
• Total contributions received by noncandidate committees in the primary election: $7.01 million.
• Total contributions made to candidates by noncandidate committees: $4.15 million.
• Total expenditures made by noncandidate committees: $8.41 million (of which $4.68 million was by Be Change Now)
• 12 electioneering communication statements filed in the primary election.

Chair Lum asked if there were any questions or comments.  There were none.

*Report on Ballot Measures and Ballot Issue Committees for the 2022 Election – Associate Director Baldomero reported that there are no state constitutional amendments this year but there are 24 county charter amendment questions on the general election ballot (4 questions for Honolulu, 3 questions for Hawaii island, 13 questions for Maui, and 4 questions for Kauai).  He further reported that there is one ballot issue committee that is currently registered with the Commission and another one is in the process of registering.

Chair Lum asked if there were any questions or comments.  There were none.

Chair Lum asked for a motion to adjourn this meeting.  Commissioner Bonfiglio moved to adjourn.  Motion seconded by Vice Chair Markley.  Motion carried (5-0).  Meeting adjourned at 11:01 a.m.

Next Meeting:
Scheduled for Wednesday, October 12, 2022, at 10 a.m. (May be postponed to a later date).