Minutes for August 1, 2000
Campaign Spending Commission Meeting
Leiopapa A Kamehameha Building, Room 204
August 1, 2000
3:00 p.m.
Members Present:
A. Duane Black, Della Au, Clifford Muraoka and Andrea Low
Staff Present:
Robert Watada, Jon Itomura and Ellen Kojima
Russell Suzuki, Deputy Attorney General
Call to Order:
Meeting convened at 3:00 p.m. with Chairman Black presiding.
Consideration of Minutes:
Mr. Muraoka moved to accept the minutes of July 5, 2000, Ms Au seconded. Motion carried.
Old Business
Final Determination Docket #00-01 In Re the Matter of Russ Francis
At the June 13 meeting the Commission made a preliminary determination that Russ Francis failed to file satisfactory reports, and was given 30 days to amend and file the necessary reports. The Commission also assessed Mr. Francis an administrative fine of $1,000, and an additional $1,000 fine if he did not file all required reports within 30 days.
He has complied with the order in that he has filed the required reports within 30 days, but he has not as yet paid the administrative fine of a $1,000.
Ms Low moved to make a Final Determination that all reports have been amended and filed in compliance with the Order and that the administrative fine is a $1,000,
Ms Au seconded. Motion carried.
Order for Dismissal Docket #98-06 POC v. Christian Coalition
Protect Our Constitution filed a complaint against the Hawaii Christian Coalition and Christian Coalition contesting their failure to file as ballot issue committees. The Hawaii Christian Coalition subsequently filed, and the case against them was dismissed. The Christian Coalition filed suit against the Commission arguing that the statute was unconstitutional.
Because of the suit no further action was taken until the court issue was resolved. However, the Commission did ask that the staff further investigate the matter. Staff investigation found that it was not able to determine if any of the contributions that the Christian Coalition received over their website resulted in any expenditures for the ballot issue in Hawaii. Also, staff found no other evidence of contributions or expenditures toward the ballot issue. Staff recommends dismissing the complaint.
Mr. Muraoka moved to dismiss the complaint filed by Protect Our Constitution against Christian Coalition, Ms Low seconded. Motion carried.
New Business:
Draft AO #00-08 Sale of Nonmonetary Contributions
Draft advisory opinion addresses questions on recordkeeping and reporting of goods that candidates receive and is later sold for cash. Anything of value that is received by the campaign must be recorded as a nonmonetary contribution and nonmonetary expenditure. If the item is later sold, the sale is treated as a separate transaction and cash received is reported as "other receipt".
Ms Low moved to adopt draft Advisory Opinion #00-8, Mr. Muraoka seconded. Motion carried.
Communications to Commission:
It was reported that to date there are 268 candidates not including OHA and special BOE candidates.
The IRS has a new law, which became effective immediately, that creates new and expanded reporting requirements for certain section 527 organizations. Staff is advising organizations with questions regarding the new law to consult with their tax accountants or legal counsel.
Next Meeting:
Scheduled for Tuesday, September 5, 2000 at 3:00 p.m.
No further business to discussion Chairman Black adjourned meeting.





