Minutes for February 9, 2005
Campaign Spending Commission Meeting
Leiopapa A Kamehameha Building, Room 204
February 9, 2005
10:00 a.m.
Members Present:
A. Duane Black, Steven Olbrich, 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:
Mr. Robb moved to accept the minutes of January 25, 2005, Mr. Kuramoto seconded. Motion carried.
Old Business:
Draft Advisory Opinion 05-01 Rescission of AO 99-07 and Reporting by Political Parties
Draft advisory opinion rescinds Advisory Opinion 99-07, which allowed party subcommittees to report separate from the state party. As requested, the draft has been revised to make it clear that not only the county committees, but also any subcommittee directly affiliated with the party must file as one with the state party. Also included federal language that would clarify how directly affiliated would be viewed by the Commission.
Mr. Olbrich moved to accept the draft advisory opinion, Mr. Kuramoto seconded. Motion carried.
New Business:
Draft Advisory Opinion 05-02 Federal PAC Registration and Reporting Requirements for Contributions to State and Local Candidates
A Federal PAC asked if they made a contribution from the PAC account to a state or local candidate would their FEC filings meet the reporting requirements of Hawaii. Draft advisory opinion sets forth the registration and reporting requirements of a noncandidate committee, which a Federal PAC would need to follow if making contributions from PAC account to a state or local candidate.
Mr. Olbrich moved to accept the advisory opinion, Mr. Kuramoto seconded. Motion carried.
Draft Advisory Opinion 05-03 Public Access Organization Costs and Expenses
A citizen has requested an opinion that says that public access organizations, such as Olelo and Hoike are required to report as contributions to candidates all programming costs of videos produced. Research found that community access organizations provide equal time to all candidates to promote their candidacy. Commission position has been that if it is available to all candidates, then it is not a contribution and draft advisory opinion follows previous statements. In addition, public access organizations generally enjoy legitimate press function as allowed by courts.
Question was raised on whether a tape of the produced program is given to the candidate, which would make that a contribution to the candidate. Staff to research this question and if it is found that they are given anything advisory will be amended or a supplemental opinion will be issued.
Mr. Gabrio moved to accept the advisory opinion, Mr. Olbrich seconded. Motion carried.
Conciliation Agreement 05-01 Paren, Inc, Larry Matsuo, et al.
Investigation found that Paren, officers, family members and friends made false name and excess contributions to Morgado, Cayetano, Harris, Hirono, Apana, Fasi and Hannemann. There was a delay in reaching an agreement as the officers each had their own attorney and at one point was planning to take legal action against each other. But after a lot of negotiating was able to workout and agreement and staff recommends a fine of $228,000.
Discussion on whether individuals should be fined and pay the fine instead of the company. Because if the individual is fined the process would probably stop fairly quickly. But it is the companies that make the contributions that get the contracts. Another item of discussion was whether the procurement office is informed of companies that are fined by the Commission. Procurement office is informed, as there is a procurement rule that if the Commission fines a company, they could face debarment. Mr. Robb stated that with future agreements he would like to see a recital within the agreement that states a company receives so much in government contracts.
Mr. Gabrio noted that on the 1st page Paren, Inc. should be named as a respondent and that the company should also be a signee of the agreement.
Approval of the agreement deferred until the next meeting to make changes and to forward to respondent's attorney for his review.
Communication to Commission:
NonMonetary Contributions
Presentation given on the staff's current approach to nonmonetary contributions. Nonmonetary contributions are subject to the contribution limits and are aggregated with monetary contributions give by same person. It is reported as a contribution at the "fair market value" and as an expenditure to avoid inflating cash on hand.
Discussion on the question of when an item valued at the maximum of the contribution limit is given as a nonmonetary contribution and is then used as silent auction fundraising item and is then purchased for more than the fair market value as reported. The question raised is whether the purchaser would be exceeding the contribution limit because the item has been reported at the maximum amount. Staff to research question and whether AO 00-08 should be amended.
Next Meeting:
Scheduled for Wednesday, March 9, 2005 at 10:00 a.m.
Mr. Olbrich moved to convene executive session to discussion personnel matters, Mr. Robb seconded. Motion carried.
Public session reconvened, no further business to discuss Chair Black adjourned meeting.
Meeting adjourned at noon.
