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Minutes for December 2, 2002

Campaign Spending Commission Meeting
Leiopapa A Kamehameha Building, Room 204
December 2, 2002
3:00 p.m.

Members Present:
Duane Black, Mona Chock, Richard Choy

Staff Present:
Robert Watada, Jon Itomura, Ellen Kojima
Gary Kam, Deputy Attorney General

Call to Order:
Meeting convened at 3:00 p.m. with Chairman Black presiding.

Consideration of Minutes:
Deferred until next meeting.

Old Business:
Docket 02-08 Norma Jean Nicholls vs. Casey Choi
Complaint alleges that senate candidate Casey Choi failed to file the required disclosure reports and used campaign funds for personal expenses, mainly food expenses. Candidate Choi filed the necessary disclosure reports and paid late filing penalty. Mr. Choi explained expenses as campaign related, in that he would invite campaign workers to breakfast or dinner after a sign waving session. Mr. Choi amended reports to include detail of expenses and provided a list of names and phone numbers of those he had meals with. Staff recommends that the complaint be dismissed.

Ms. Chock moved to dismiss the complaint, Mr. Choy seconded. Motion carried.

Docket 02-09 Thomas Berg vs. Certified Management
Complaint alleges that Certified Management failed to file the required disclosure reports for expenses made on behalf of candidate Tesha Malama. Certified has submitted the necessary disclosure reports and paid the late filing penalty.

Mr. Berg, further alleged that Certified acquired a mailing list and produced mailing labels, which the cost has not been disclosed.

Ms. Chock moved that the matter be further investigated, Mr. Choy seconded. Motion carried.

New Business:
Conciliation Agreement 02-31 PSC Associates, Inc. & Peter S.C. Chan
Investigation found that excess contributions was made to the Harris campaign committee. The company has agreed to a fine of $500.

Ms. Chock moved to approve Conciliation Agreement 02-31, Mr. Choy seconded. Motion carried.

Conciliation Agreement 02-35 Leung & Pang Associates, Inc. & Clayton Pang
Investigation found that contributions were made to the Harris campaign committee by employees and then reimbursed by Mr. Pang for the contribution. Mr. Pang has agreed to a fine of $2,000 for the false name contributions and failure to file disclosure reports.

Ms. Chock moved to approve Conciliation Agreement 02-35, Mr. Choy seconded. Motion carried.

Docket 02-10 Regan Hatch vs. Friends of Pam Witty-Oakland
Complaint alleges that candidate Witty-Oakland failed to report in-kind and excess contributions as a result of having her internet advertisements appear on three separate sites. The advertisements were a shortcut to the candidate's website. Also alleged that the candidate did not electronically file the 2nd Preliminary Primary report, which was due on 9/11/02. Ms. Witty-Oakland responded that the cost for hosting here website was $3.95 and not $115 as alleged, and has amended her reports to reflect the in-kind contributions. Regarding the electronic filing of her report, she did submit a disk on 9/11/02. Staff recommends that the complaint be dismissed.

Ms. Chock moved to dismiss the complaint, Mr. Choy seconded. Motion carried.

Docket 02-11 Ethan Gabriel vs. Friends of John S. Kaopua
Complaint alleges that candidate Kaopua's disclosure report for the period January 1 through June 30, 2002, failed to disclosure expenditures for campaign signs that appeared in May and June. Mr. Charlie Rodgers, Treasurer for candidate Kaopua responded that the campaign did not receive the signs until June 26, 2002 and paid for them July 2002. Mr. John Kaopua and Mr. Charlie Rodgers were present at the meeting. Complainant Ethan Gabriel was not present and provided no further information to support allegation. Staff recommends that the complaint be dismissed on the basis that the complaint fails to provide sufficient evidence to support a claim that a law or rule has been violated.

Ms. Chock moved to dismiss the complaint, Mr. Choy seconded. Motion carried.

Docket 02-12 Michael Golojuch vs. Friends of Mike Gabbard
Complaint alleges that candidate Mike Gabbard failed to accurately report expenditures for automobile decals, failed to disclose information for two campaign loans, failed to disclose the payee or recipient of campaign funds for providing services or goods, failed to disclose accurate expenditures for banners and signs and failed to sufficiently describe expenditures made by the candidate. Mr. Randal Yoshida, counsel for candidate Gabbard filed a written response explaining the allegations in detail.

Mr. Devin Bull, explained and demonstrated how the campaigns, Mike and Tulsi Gabbard's, were able to create signs and banners at a low cost to the committees.

Complainant Michael Golojuch reiterated his allegations and both he and Holly Cooper expressed concern over the fact that the filed reports do not accurately reflect all expenditures and payees in detail.

Ms. Chock moved that the matter be further investigated, Mr. Choy seconded. Motion carried.

Docket 02-13 Michael Golojuch vs. Friends of Tulsi Gabbard Tamayo
Complaint alleges that candidate Tulsi Gabbard Tamayo failed to disclose the payee or receipent of campaign funds for providing services or goods, failed to disclose information for campaign loans and failed to accurately disclose expenditures for banners and signs. Mr. Randal Yoshida, counsel for Tulsi Gabbard Tamayo filed a written response explaining the allegations in detail.

Complainant Michael Golojuch reiterated his allegations and both he and Holly Cooper expressed concern over the fact that the filed reports do not accurately reflect all expenditures and payees in detail.

Ms. Chock moved that the matter be further investigated, Mr. Choy seconded. Motion carried.

Draft Advisory Opinion 02-10 Electioneering Communications
The Hawaii Right to Life filed suit in federal court challeging the constitutionality of the statue regarding the reporting of electioneering communication. The court agreed that using the Furgatch case as a test the Hawaii Right to Life "Voter Guide" was electioneering communication and that the statute was constitituional. Draft advisory opinion is to clarify that the Furgatch test will be applied in enforcing the statute regarding reporting of "electioneering communication".

Ms Chock moved to approve draft Advisory Opinion 02-10, Mr. Choy seconded. Motion carried.

Communications to Commission:
HERTS
Presently have about 120 candidates using the HERTS program and about 80 are filing directly on-line. Currently working on a program for noncandidate committees.

Next Meeting:
Scheduled for Monday, December 23, 2002 at 10:30 p.m.

No further business to discuss, Chair Black adjourned meeting.
Meeting adjourned at 4:30 p.m.

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