Minutes for February 13, 2002

Campaign Spending Commission Meeting
Leiopapa A Kamehameha Building, Room 204
February 13, 2002
3:00 p.m.

Members Present:
A. Duane Black, Della Au Belatti, 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.

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

Mr. Muraoka moved to accept the minutes of January 15, 2002, Ms. Chock seconded. Motion carried.

New Business:
Conciliation Agreement #02-02 Thermal Engineering Corporation
The investigation of Thermal Engineering, a registered noncandidate committee covered the period from January 1, 1996 through June 30, 2001. It was found that employees of the company made contributions to the Harris, Cayetano, Apana and Lingle campaigns were later reimbursed by the company for their political contribution.

Staff considers the $39,000 in contributions made to Harris, Cayetano, Apana and Lingle in violation of section 11-202, HRS, and recommends a fine of $31,000.

Thermal Engineering has agreed to the agreement and staff recommends that the commission accept the agreement.

Ms. Chock moved to accept the conciliation agreement with Thermal Engineering, Mr. Choy seconded. Motion carried.

Docket #02-02 In Re the Matter of Jeremy Harris, The Harris 2002 Campaign and Roger Liu
Mr. Itomura summarized the complaint for commissioners. In a review of the Harris campaign reports for the period covering 1996-2000, questions arose concerning expenditures made by the committee.

Expenditures in questions were payments for parking fines, court fines air travel and activities not related to his campaign for mayor. Additional information was requested and received, also met with a representative of the committee. Information received allowed for the release of several questioned expenditures.

An advisory opinion in 1998 discussed use of campaign funds for national conventions. It stated that unless it could be shown that the funds were being used to support a campaign for local office the expenditure would not be allowed.

Amended reports provided additional descriptions of expenditures, but it did not clarify as to exactly what the expenditure was.

Listed expenditures included contributions to unions or individuals for the democratic convention, expenditures that are not allowed under the campaign finance law. Executive director also received information regarding a contribution of over $100,000 from Harris or the Harris campaign contributed to the Democratic National Committee, raising questions whether travel expenses to meet with Democratic National Committee is related to running for mayor.

Staff asks that the commission consider fines in an amount no less that the amount provided in the complaint and request further investigation into the issues regarding the contribution to the Democratic National Committee.

Ms Belatti moved to return the complaint to staff for a period of one month to further determine the legal issues and that the Harris campaign is given a month to respond to the complaint, Ms. Chock seconded. Motion carried

(Aye: Belatti, Chock, Choy No: Black, Muraoka )

Mr. William McCorriston, representing Mayor Harris testified against the complaint. He questioned the legal completeness of the complaint and the significant constitutional questions that are involved. Further stated that instead of prolonging the matter would prefer that it be decided today, because of past experiences with the commission believes that these matter should be determined in court.

In an exchange with Commissioner Belatti over the commission's advisory opinion 97-01 and the interpretation of the statute, Mr. McCorriston, stated that the commission's interpretation violates the lst Amendment right to the freedom of association. Continued with that he disagreed with this proceeding and the actions of the commission's staff and wants to have this matter decided today.

Mr. Chris Parsons, representing the Harris campaign stated that the campaign has cooperated with the requests of the staff, but feels that they have been treated with a lack of fairness and due process. Noted that their response to the complaint does not ask for more time, but that if the campaign is given sufficient time all questioned expenditures will be found to be allowable. Continued with his opinions on the actions of the commission's staff and concurred with Mr. McCorriston in that he would like to see the matter decided today.

Before the vote on the motion made by Ms. Belatti, Mr. Itomura clarified that it is the executive director bringing this complaint before the commission and not the commissioners.

Next Meeting:
Scheduled for Wednesday, March 13, 2002 at 3:00 p.m.

Chairman Black, will be convening executive session to consult with counsel, will recess for 15 minutes and convene at 3:45 p.m.

Public session reconvened -

No further business to discuss, Mr. Muraoka moved to adjourn meeting, Ms. Chock seconded. Motion carried.

Meeting adjourned at 4:16 p.m.