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Minutes for December 21, 2005

Campaign Spending Commission Meeting
Leiopapa A Kamehameha Building, Room 204
December 21, 2005
10:00 a.m.

Members Present:
Paul Kuramoto, Steven Olbrich, Gino Gabrio

Staff Present:
Barbara Wong, Tony Baldomero, Grant Tanimoto, Ellen Kojima
Gary Kam, Deputy Attorney General

Call to Order:
Meeting convened at 10:00 a.m. with Chairman Kuramoto presiding.

Consideration of Minutes:
Mr. Gabrio moved to accept the minutes of September 13, 2005, October 13, 2005, November 9 and 10, 2005, Mr. Olbrich seconded.  Motion carried.

New Business:
Draft Advisory Opinion 05-07
An elected official who also maintains a second job is contemplating running for a different office in 2006.  The elected official believes that to have time to run for the new office he would need to quit one of his jobs.  His question is if a family member pays his utilities, mortgage and insurance while he campaigns, would this be considered a contribution. 

Draft advisory opinion affirms that such payments would be a contribution, because this would allow the candidate time to run and it is not income that he would have received irrespective of his candidacy. 

Commissioners would like to see “personal funds” defined and clearly stated that if funds are received irrespective of candidacy then it is not a contribution. 

Staff to take into consideration commissioners comments and finalize advisory opinion for signature.

Shepardization of Advisory Opinions and Advisory Letters/Rescind Advisory Letter 96-04
Currently in the process of identifying advisory opinions and advisory letters that have become obsolete, which means that they have been superseded by a later advisory opinion, advisory letter or statutory amendment, void, or rescinded.  Website will note advisory opinions and letters that have become obsolete.

Staff is requesting that Advisory Letter 96-04, which advised that fundraising expenditures did not count toward the expenditure limit is no longer valid, as the statute has been amended to now include fundraising expenditures as expenditures counted toward the expenditure limit.

Mr. Olbrich moved to rescind Advisory Letter 96-04, Mr. Gabrio seconded.  Motion carried.

Executive Session
Deferred until January

Communication to Commission:
2006 Legislation
Power point presentation on changes being proposed for the 2006 legislative session.  Summary of changes include:

· Created new section for procedural matters regarding deficient reports,

· Changed references from multiple candidate committees to one candidate committee,

· Added language that lawyers and accountants are not considered volunteers for contribution purposes except   campaign treasurers and deputy treasurers,

· Reinstating sections - that contribution by two or more corporations treated as one under specified circumstances and that an individual with a controlling interest in a corporation shall be treated as one person,

· Clarify that loans from family members, a financial institution or candidate not subject to the contribution limits of 11-204(a),

· Reinstating expenditure limit for the office of Prosecutor,

· Clarifying when residual funds are returned to contributors, and

· Clarifying that the Commission can proceed administratively, even if a matter has been referred for prosecution.

2006 Commission Meeting Schedule
Commissioners presented with proposed dates of commission meetings for the coming year.  At present no major conflicts.

Next meeting scheduled for Wednesday, January 11, 2006 at 10:00 a.m.

Website
New additions to the website include:

   Notice of Intent to Hold a Fundraiser
   Act 203 FAQs

Web-Based Filing
Noncandidate committee beta test group for web-base filing included committees that are currently using the HERTS program for noncandidate committees, parties and unions.  Testing is nearing completion and will meet with ICSD to go over comments of the test group. 

Mr. Olbrich moved to adjourn meeting, Mr. Gabrio seconded.  Motion carried.
Meeting adjourned at 11:35 p.m.

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