Minutes for August 7, 2003

Campaign Spending Commission Meeting
Leiopapa A Kamehameha Building, Room 204
August 7, 2003
3:00 p.m.

Members Present:
A. Duane Black, Clifford Muraoka, Mona Chock, Richard Choy

Staff Present:
Robert Watada, Tony Baldomero, Jon Itomura, Ellen Kojima

Gary Kam, Deputy Attorney General

Call to Order:
Meeting convened at 3:01 p.m. with Chairman Black presiding.

Mr. Watada informed members that Ms. Belatti has submitted her resignation, which is effective August 18, 2003. The Chief Justice has informed staff that he has reopened the recruitment process for interested parties to apply

Consideration of Minutes:
Ms. Chock moved to accept the minutes of December 18, 2001, Mr. Choy seconded. Motion carried.

New Business:
Conciliation Agreement 03-09 Edward Noda & Associates, Inc. and Edward Noda
The investigation of Edward Noda & Associates found that Mr. Noda would withdraw monies from the company and within days cash deposits would be made into the accounts of parents and employees of the company, who would then make contributions to candidates.

Because during the investigation Mr. Noda and those involved were less than candid and provided the Commission misinformation, it is recommended that the Commission accept the agreement that assesses a fine of $2,000 for each occurrence of a false name contribution and $500 for each occurrence of excess contribution.

Ms. Muraoka moved to accept the conciliation agreement with Edward Noda & Associates, Inc., Ms. Chock seconded. Motion carried.

Conciliation Agreement 03-15 Randolph H. Murayama
Like the investigation of Edward Noda & Associates, because the Commission received misformation from Mr. Murayama and family members investigators needed to subpoenas records and obtain testimony. As with the Noda conciliation agreement the fine assessment of $2,000 for each false name contribution and $500 for excess contribution is recommended.

Ms. Chock moved to accept the conciliation agreement with Randolph Murayama, Mr. Muraoka seconded. Motion carried.

Conciliation Agreement 03-23 Grant Thornton, LLP
Grant Thornton is the first accounting firm to work out an agreement with the Commission. They are also the first to come forward even before they were investigated and admitted to having made contributions in error. Fine is for violations that occurred in 1997 to 1998 period.

Ms. Chock moved to accept the conciliation agreement with Grant Thornton, Mr. Muraoka seconded. Motion carried.

Conciliation Agreement 03-27 R.T. Tanaka Engineers, Inc. and Kirk T. Tanaka
Investigation found that the company and officers with controlling interest made contributions to Cayetano, which exceeded the contribution limit of $6,000. They have agreed to a fine of $1,000.

Mr. Muraoka moved to accept the conciliation agreement with R.T. Tanaka Engineers, Ms. Chock seconded. Motion carried.

Communications to Commission:
Amicus Curiae Brief Senator Mitch McConnell, et al v. FEC, et al
Iowa, Vermont and Connecticut have filed objections to Senator McConnell, et al, who oppose the Bipartisan Campaign Reform Act that was signed into law by the President. They have asked whether the state of Hawaii would also like to join in their appeal. Staff asked that the Commission go on record as supporting the appeal. Staff counsel to draft a letter, which is to be signed by the executive director, to the attorney general expressing the wishes of the commission.

Next Meeting:
Scheduled for Thursday, September 11, 2003 at 3:00 p.m.

No further business to discuss, Chairman Black adjourned meeting.
Meeting adjourned at 3:20 p.m.