Minutes for February 9, 2006

Campaign Spending Commission Meeting
Leiopapa A Kamehameha Building, Room 204
February 9, 2006
10:00 a.m.

Members Present:
Paul Kuramoto, Steven Olbrich, Gino Gabrio, Michael Weaver

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 Chairperson Kuramoto presiding.
Excused – Dean Robb

Consideration of Minutes:
Mr. Gabrio moved to accept the minutes of January 11, 2006, Mr. Weaver seconded.  Motion carried.

New Business:
Conciliation Agreement 06-01      In Re the Matter of the Hawaii State Teacher’s Association PAC
A member of the Hawaii State Teacher’s Association (“HSTA”) used the Department of Education (“DOE”) computer system to email Leeward faculty representatives advising of canvassing and sign holding activities.  Because of the nature of the emails, use of the computer should have been reported by HSTA PAC as expenditures.  When HSTA PAC was informed of the improper use of the computer system, they as well as the DOE issued notices to members and teachers of the improper use and that all such activity was to cease.  They have also agreed to an administrative fine of $500.

Mr. Gabrio moved to accept the conciliation agreement, Mr. Olbrich seconded.  Motion carried.

Mr. Gabrio expressed concern at the length of the agreement, for something that was not a major violation.  Ms. Wong stated she is looking into simplifying the process for lessor violations.

Rescind and Modify Advisory Opinions and Letters
The following advisory opinions and letters have been reviewed by Director Wong, Mr. Tanimoto, Esq. and Mr. Baldomero and identified as obsolete:

Advisory Opinion 97-04, 98-13, 99-07, 00-05
These have been superseded by later advisory opinions directly or implicitly.

Rescind Advisory Letter 95-02
Section 11-203(b), HRS has been amended.  Reference to one fundraiser changed to two and holding another fundraiser six months after an election was repealed.

Rescind Advisory Letter 95-04
Advisory Letter allowed use of campaign funds for travel expenses of an aide of an elected official.  Rule adopted on 1/3/98 prohibits the use of campaign funds for travel expenses of an elected official, which applies to an elected official’s aide.

Rescind Advisory Letter 96-01
Advisory letter still provides guidance, but statutes cited in reference to a noncandidate committee being in existence for 12 months or longer have been amended or repealed.

Rescind Advisory Letter 96-06
Letter advised that a candidate’s contribution to his campaign would be aggregated with loans from the candidate’s immediate family and could not exceed $50,000.  Section referenced in the letter was amended in 1999, which excluded candidates from the contribution limit to their own campaigns.

Rescind Advisory Letter 97-01
Letter advised that a corporation was permitted to put unlimited funds from its treasury into its noncandidate committee.  Section referenced was amended in Act 203 in 2005.

Rescind Advisory Letter 98-03
For purposes of qualifying for public funding, letter allowed drafter of a check to designate part of a contribution for the primary and part for the general election.  Act 203 amendment requires candidates to qualify for public funding only once.

Modify Advisory Opinion 96-03
Opinion allows for the use of campaign funds for travel to a function or activity directly related to an official’s responsibility. 

Rescind Advisory Opinion 01-03
Opinion allowed a candidate under certain circumstances to contribute campaign funds to a trust established by the candidate.  Rule adopted on 1/25/02 prohibited contributions to a trust established by a candidate.

 Mr. Gabrio moved to rescind and modify the discussed advisory letters and opinions, Mr. Weaver seconded.  Motion carried.

Communication to Commission:
Budget
Testified at three budget hearings and have been asked, whether additional positions are needed.  Responded that time is needed to assess needs and if a position is requested it will be a position that will most benefit the commission.

Training – Neighbor Islands
Training sessions for candidates, CPAs and noncandidate committees have been scheduled for the neighbor islands as well as Oahu.  Mr. Baldomero to do individual follow-up sessions with anyone interested on electronic filing and any questions they may have from earlier training session.

Advertising - $2 Check-Off
Advertising campaign to start – there will be radio ads as well print ads

Legislative Update
Commissioners given chart of new and carryover bills.   Some bills of interest:

            HB 2542, SB 2589, HB 2543 and SB 2590 – Commission bills
            HB 2922 – Introduced by Senator Hanabusa, which reverses limitations set in Act 203
            HB 1713 – carryover bill, relating to comprehensive public financing program

For Information

• Hawaii Administrative Rules – should be getting it back from the AG’s office. We will then request Governor’s approval to proceed with public hearings.

• Investigator – Have contracted with Daniel Hanagami.

Next Meeting:
Scheduled for Wednesday, March 8, 2006 at 10:00 a.m.

Commissioners requested an update on pending investigative matters. 

Concern expressed by some members that action taken so far has only been against contributors, would also like to see candidate committees be held responsible for contributions received in violation of the law.

Mr. Olbrich moved to adjourn meeting, Mr. Weaver seconded.  Motion carried.
Meeting adjourned at 10:45 a.m.