Minutes for August 10, 2011

Campaign Spending Commission
Leiopapa A Kamehameha Building, Room 204
August 10, 2011
10:00 a.m. 

Commissioners Present:
Chair Michael Weaver, Vice-Chair Robb, Steven Olbrich, Paul Kuramoto

Staff Present:
Kristin Izumi-Nitao, Tony Baldomero, Gary Kam, Ellen Kojima
Deputy Attorney General Robyn Chun

Call to Order:
Meeting convened at 10:00 a.m. with Chair Weaver presiding.

Vice-Chair Robb moved to convene executive session to consult with attorney regarding the Committee to Elect Steve Yamashiro et al. v. Campaign Spending Commission.  Motion seconded by Commissioner Kuramoto.  Motion carried unanimously.

Public session reconvened at 10:10 a.m.

Consideration of Minutes:
Page 2 – Docket 11-15 Motion should read – Vice-Chair Robb moved to find probable cause exists that Respondents committed a violation and to accept relief as stated in the complaint.

Commissioner Olbrich moved to approve the minutes of July 13, 2011 as amended.  Motion seconded by Vice-Chair Robb.  Motion carried unanimously.

Old Business:
Docket No. 11-14 – In Re the Matter of Peter Dudek, Friends of Peter Dudek and Heather L. Jackson
Complaint for failure to timely file the Final Election Period and Supplemental Reports.

Respondent Dudek after the July meeting filed the two late reports and the request to terminate his registration.  Notice of fine was sent assessing him $200 for each of the reports filed late and informed him that he needed to submit a copy of his closing bank statement.  General Counsel Kam requested that the complaint for failure to file the Final Election Period and Supplemental reports be withdrawn.

Vice-Chair moved to withdraw the complaint with the understanding that if the fine is not paid the complaint will be re-filed.  Motion seconded by Commissioner Olbrich.  Motion carried unanimously.

New Business:
Docket No. 12-01 – In Re the Matter of William Medeiros, Bill Medeiros for Council Committee, and Benedetta C. Medeiros
Complaint for failure to timely file 3 Supplemental reports, Preliminary General, and the Final Election Period reports.  General Counsel Kam recommended that the Commission make a preliminary determination of probable cause that violations have been committed, accept relief as stated, $2,750 administrative fine and that reports be electronically filed within two weeks of receipt of order.

Mr. Medeiros was present and stated that he has been working with staff to get this matter resolved.  Noted that his case is unique it that his campaign funds have been depleted by an unauthorized person.  A police report has been filed and have been told that there is enough evidence to pursue this matter as an identify theft and bank fraud case.  He is currently trying to find someone to work on getting the reports filed.  Filed the request to terminate registration today and will be mailing the $2,750 fine.

Commissioner Kuramoto commented that theft of funds should not have precluded Mr. Medeiros from filing reports and that the theft of campaign funds could be reported as a one time expense, assuming that the campaign could account for other contributions and expenditures.

Commissioner Kuramoto moved to defer matter until the next meeting, subject to reports being filed to current.  Motion withdrawn.

Commissioner Kuramoto moved to find that probable cause exists that violations have been committed by Respondents and accepts relief as stated in the complaint, except that paragraph E be extended to six weeks instead of two weeks as stated.  Motion seconded by Vice-Chair Robb.  Motin carried unanimously.

Docket No. 12-02 – In Re the matter of Ramon Madden, The Campaign to Elect Ramon K. Madden, and Mario Arruiza
Complaint for failure to timely file the Final Primary, Preliminary General, Final Election Period, and the Supplemental reports..  General Counsel Kam recommended that the Commission make a preliminary determination of probable cause that violations have been committed and to accept relief as stated; $2,250 administrative fine and that the reports be electronically filed within two weeks of receipt of order.

Commissioner Kuramoto moved to find probable cause exists that violation has been committed by Respondents and accepts relief as stated in the complaint.  Motion seconded by Vice-Chair Robb.  Motion carried (Olbrich – abstain)

Docket No. 12-03 – In Re the matter of Richard Fale, Friends of Richard Fale, and Victoria A. Woods
Complaint for the late filing of a Late Contributions and a Supplemental reports.  The complaint also includes the non-compliance with Conciliation Agreement 10-12.  General Counsel Kam recommended that the Commission make a preliminary determination of probable cause that violations have been committed and to accept relief as stated, an $1,050 administrative fine; $800 administrative fine as stated in CA 10-12, $50 late filing of a Late Contributions report and $200 late filing of a Supplemental report.

Mr. Richard Fale was present and made statements regarding issues related with the conciliation agreement, which is the receiving of excess non-resident contributions.  Mr. Fale, noted that the issue is the calculation of non-resident contributions in the Candidate Filing System.  He also acknowledged signing the conciliation agreement, but that the payment of the $800 fine is something that is being worked out internally. 

After some discussion regarding non-residents contributions and how it is calculated, General Counsel Kam requested that Count I of the complaint be withdrawn and the Commission make a preliminary determination and assess relief as stated in the complaint for Counts 2 and 3.

Commissioner Olbrich moved to accept the withdrawal Count 1 and finds probable cause exists that violations has been committed by Respondent in Counts 2 and 3 and accepts relief as stated in the complaint.  Motion seconded by Vice-Chair Robb.  Motion carried.

CSC Annual Report for FY 2011
Executive Director Izumi-Nitao highlighted the activities of fiscal year 2011 as documented by the strategic plan.  Some future considerations of the Commission include, appropriation of funds, technology, 2012 elections, and core business and strategic planning.

Report from Executive Director:
Update and Report on Failure to File Reports, Unpaid Fines, and Subsequent Proceedings
To date - 5 failed to file any reports, 7 unpaid fines, and 2 circuit court applications filed

Update Regarding Request to Fill Elections Assistant Position
Request to Fill has been approved.  Position offered to Sandrina Lee from the Attorney General’s office.  She will be starting on August 23.

Status and Update on Hawaii Election Campaign Fund
Fiscal Year ending June 30, 2011 - $374,051.45 in revenue, with $223,380 coming from the $3 check-off, $80,441.68 from interest, $34,067.02 from monies that escheat, surplus and anonymous contributions and $881,957.12 in expenditures for a balance of $4,141,216.20.

There is a minimum of $3,500,000 in the fund, so will be declaring that comprehensive public funding with be available for the Hawaii County Council 2012 elections.

Status of Supplemental Reports Due on 8/1/11
Candidate Committees – 83% filed on time, 9% filed late, and 8% did not file
Noncandidate Committees – 89% filed on time, 6% filed late, and 5% did not file
Corporations – 10 corporations – 6 filed a report

Commissioner Olbrich moved to convene executive session to consult with attorney.  Motion seconded by Vice-Chair Robb.  Motion carried unanimously.

Public session reconvened.

Next Meeting:
Scheduled for Wednesday, September 14, 2011 at 10:00 a.m.

Commissioner Olbrich moved to adjourn meeting.  Motion seconded by Commissioner Kuramoto.  Motion carried unanimously.  Meeting adjourned at 11:50 a.m.