Minutes for December 29, 2004

Campaign Spending Commission Meeting
Leiopapa A Kamehameha Building, Room 204
December 29, 2004
10:00 a.m.

Members Present:
A. Duane Black, Gino Gabrio, Paul Kuramoto, Dean Robb

Staff Present:
Robert Watada, Tony Baldomero, Grant Tanimoto, Ellen Kojima
Gary Kam, Deputy Attorney General

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

Consideration of Minutes:
Deferred until next meeting

Old Business:
Docket 04-10 Joshua Wisch v. Chris Halford, Barbara Marumoto & Colleen Meyer
Mr. Gabrio recused, former associate of Complainant, Joshua Wisch.
Mr. Kuramoto, who had recused at the last meeting, withdrew his recusal declaring he could make an impartial decision.

Complainant Wisch filed a complaint alleging that respondents Halford, Marumoto and Meyer violated the law by being officers of a noncandidate committee in addition to being anofficer of their candidate committees. He also alleged that as candidates they received contributions from the noncandidate committee. Staff review found that there may be problems in the issue with regard to provisions of sections 11-200 and 11-204, HRS. Discussed possible problems with respondents and respondents agreed to close noncandidate committee. As of this date, the noncandidate committee has terminated and staff recommends that the complaint be dismissed.

Mr. Robb moved to dismiss the complaint, Mr. Kuramoto seconded. Motion carried.

Docket 04-11 Joshua Wisch v. Julia Allen
Mr. Gabrio recused, former associate of Complainant Joshua Wisch.

Complainant Wisch filed a complaint alleging that candidate Allen was the chairperson of her candidate committee and a noncandidate committee that was used to divert contributions to the candidate committee. During the 2004 elections some first time Republican candidates registered district PACs to support their candidacy. Staff has advised party leaders that such subcommittees places a candidate at risk of being in violation of the statute, which reads that a person can be an officer of only one committee. The party has taken steps to terminate all the district noncandidate committees and the District 20 Republicans noncandidate committee, which was the Allen noncandidate committee terminated in September. Staff recommends that the complaint be dismissed.

Mr. Robb moved to dismiss the complaint, Mr. Kuramoto seconded. Motion carried.

Docket 04-12 Joshua Wisch v. William Stonebraker
Mr. Gabrio recused, former associate of Complainant Joshua Wisch.

Complainant Wisch filed a complaint alleging that candidate Stonebraker is the chairperson of his own candidate committee and his noncandidate committee. As with the other complaints, staff found a possible violation of sections 11-200 and 11-204 and discussed the problem with respondent Stonebraker who has agreed to terminate the noncandidate committee. Staff recommends that the complaint be dismissed.

Mr. Robb moved that the complaint be dismissed, Mr. Kuramoto seconded. Motion carried.

Walter Heen, representing the Complainant suggested regulations for a mediation procedure.

New Business:
Conciliation Agreement 04-18 Pacific Architects, Inc. and Dwight Mitsunaga
Investigation found that contributions were made through officers, family members and friends to Morgado, Cayetano, Hirono, Harris and Apana. The campaign committees of Cayetano, Harris and Apana also received excess contributions. Staff recommends a fine of $39,000

Mr. Gabrio moved to accept conciliation agreement as written, Mr. Kuramoto seconded. Motion carried.

Communications to Commission:
Haunani Apoliona
The Haunani Apoliona campaign committee was assessed a fine of $25 for failure to have a proper disclaimer for an ad that was in the MidWeek. Ms. Apoliona is asking for a reconsideration of the fine because she said it was the newspaper's fault that the ad staff saw did not have the disclaimer. Staff investigation found that a draft of the ad did include the disclaimer and in discussions with MidWeek they stated that in some editions the ad did not show the disclaimer because of the printing problem. There is no provision in the law that allows for the Commission to excuse someone because they feel that they have valid reason.

Brian Kang, representing Haunani Apoliona and her committee is asking for a reconsideration of the $25 fine because the ad she placed did have the disclaimer and that the newspaper is at fault for some of the editions did not have the disclaimer. Further stated that he did not feel that the statute was being interpreted the way that it was intended.

Hawaii Clean Elections
Jessica Wisneski and Laura Dillon representing Hawaii Clean Elections made a presentation of their proposal for an alternate model of public funding of campaigns. They are proposing a full public funding program for candidates that qualify for a program similar to what is being used in Arizona and Maine. They also presented a video that represented the type of pubic funding program they would like to see implemented here in Hawaii.

Act 234
For commissioners information, Act 234 amended the attendance requirement for members of state boards and commissions by incorporating into section 92-15.5, HRS language that says that a board members term shall expire for failure to attend three consecutive duly noticed meetings, without a valid excuse, and that the chair shall determine if the absence of the member is excusable.

Presentation also made by Mr. Baldomero on how the current public funding program works, the current status of the Hawaii Election Campaign Fund and an analysis of the 2004 election.

11:00 a.m. Meeting recessed for lunch

12:30 p.m. Meeting reconvened

Legislation
Discussion on proposed legislation for the upcoming legislative session. Proposed amendments include:

• cap on contributions from nonresident invididuals;
• ban on contributions from corporations, union and banks;
• allow contributions from a separate segregated fund;
• prohibit contributions being used for community and charitable organizations;
• ban contributions from government contractors;
• reporting of coordinated activities;
• prohibit contributions received for one office being used for another office;
• increase funds available for OHA candidates;
• require qualifying contributions be from residents of Hawaii;
• clarify that candidates in a special election not eligible for public funds;
• increase criminal penalty to Class C felony for certain campaign law violations; and
• technical amendments for clarity.

No further business to discuss, Chairman Black adjourned meeting.
Meeting adjourned at 2:30 p.m.