Minutes for January 10, 2007
Campaign Spending Commission Meeting
Leiopapa A Kamehameha Building, Room 204
January 10, 2007
10:00 a.m.
Members Present:
Paul Kuramoto, Steven Olbrich, Gino Gabrio, Michael Weaver
Dean Robb-excused
Staff Present:
Barbara Wong, Grant Tanimoto, Ellen Kojima
Call to Order:
Meeting convened at 10:00 a.m. with Chairperson Kuramoto presiding.
Consideration of Minutes:
Chairperson Kuramoto noted that Gene Ward submitted 2 letters that relate to the minutes of December 13, 2006, for Commissioners consideration.
Mr. Gabrio commented that it has not been the Commission’s practice to amend minutes and noted that the letter attributes a statement of moral and ethical issues to him that he does not recall making. Chair Kuramoto noted that past practice has been for the Commission to accept the minutes as presented and any comments that were submitted, as part of the record.
Discussion on whether minutes should be amended to include certain statements and issues. Mr. Gabrio noted with regard to Docket 06-09, minutes should reflect that Mr. Halagao relied on staff interpretation of the 20% non-resident contribution limit and that he exceeded the limit prior to the staff’s receipt of the changed interpretation from the Attorney General.
Mr. Gabrio moved to accept minutes as amended;
- Docket 06-09 to reflect that Mr. Halagao relied on staff interpretation and exceeded the limit prior to the staff’s receipt of the changed interpretation from the Attorney General;
- Docket 06-10 to reflect a statement that after review of the criteria in AO 06-05 and facts and circumstances of the complaint the Commission made its decision; and
- To include Mr. Ward’s letters of 12/13/06 and 1/7/07 as part of the record.
Motion seconded by Mr. Olbrich.
Mr. Gabrio withdrew first motion and moved to accept minutes as amended;
- Docket 06-09 to reflect that Mr. Halagao relied on staff interpretation and exceeded the limit prior to the staff’s receipt of the changed interpretation from the Attorney General; and
- To include Mr. Ward’s letters of 12/13/06 and 1/7/07 as part of the record.
Motion seconded by Mr. Weaver. Motion carried.
Additionally, Ms. Wong noted that Mr. Ward asked that Agenda Item #-4’s – Docket 06-10 Gene Ward v. A.J. Halagao, reference to the Sierra Club endorsement, be deleted. Staff to handle.
Chairperson Kuramoto moved to amend the agenda to add an executive session to follow Agenda Item #6 to consult with counsel. Motion seconded by Mr. Gabrio. Motion carried.
Old Business:
Draft Conciliation Agreement 06-23 Stoebner Holdings dba Honda Windward
Stoebner Holdings dba Honda Windward made two excess contributions to its noncandidate committee. Staff recommended that the matter be held in abeyance until a complaint that has been filed with the courts regarding the interpretation of section 11-204(b) has been settled.
Mr. Gabrio moved that the draft Conciliation Agreement be held in abeyance. Motion seconded by Mr. Weaver. Motion carried.
Draft Advisory Opinion 06-10 renumbered as 06-07
Jim Brewer, a Green Party candidate requested an opinion regarding whether four television stations and the Hawaii Chapter of the Society of Professional Journalists made an in-kind contribution to the Lingle and Iwase campaigns by holding a televised debate, to which he was not invited.
Current draft for consideration addresses candidate debates, which follows federal guidelines and proposes rescinding AO 02-08, which addresses public appearances.
Mr.Gabrio asked whether bullet point 3 on page 2, which addresses pre-established objective criteria, was done and whether we have an objective criteria by which the Commission could make a conclusion on this matter. Mr. Tanimoto responded that he talked to the general manager of one television station and it seems that they generally followed what the FEC and FCC does, but did not discuss whether established criteria was followed.
Ms. Wong suggested that because Mr. Brewer now wants to file an official complaint, the advisory opinion become more general and that the complaint on the issues be investigated. Recommended approval of the advisory opinion with the following changes:
- Beginning changed to read that this advisory opinion provides guidance in response to a candidate who asked whether in-kind contributions were made; and
- To delete reference to conclusion that no contributions were made, in the 2nd to last paragraph.
Matter deferred until the next meeting.
New Business:
Docket 06-13 Alexander Achmat v. Mike Gabbard for State Senate
Alexander Achmat filed a complaint alleging that the Gabbard State Senate campaign used state campaign funds to pay old federal campaign debts, by expending campaign funds for banners from his federal campaign on the last day of the election.
Prior to purchase of signs from the federal committee, Treasurer for the Gabbard state committee called the Commission and inquired if is was permissible for the state committee to use signs and banners from the federal committee. Staff advised that the federal committee could make a non-monetary contribution up to the contribution limit to the state committee or the state committee could purchase the signs and banners from the federal committee at fair market value. The Gabbard state committee purchased banners from the federal committee at a fair market value, and in late November needed replacements and purchased several more banners from the federal committee. Staff recommended that the complaint be dismissed.
Mr. Gabrio asked why the banners were not purchased all at one time and whether there were anymore. Mr. Rock Rigg, Treasurer for the Gabbard campaign stated that the campaign purchased what was needed at the time and that the federal committee does still have assets.
Mr. Olbrich moved to dismiss Docket 06-13. Motion seconded by Mr. Weaver. Motion seconded.
Draft Conciliation Agreement 07-01 Cost Engineering of Hawaii, Inc.
Draft Conciliation Agreement 07-04 Pacific Northwest Ltd.
Staff recommended that both matters be held in abeyance until a complaint that has been filed with the courts regarding the interpretation of HRS, section 11-204(b) has been settled.
Mr. Gabrio moved that draft Conciliation Agreement 07-01 and 07-04 be held in abeyance. Motion seconded by Mr. Olbrich. Motion carried.
Draft Conciliation Agreement 07-02 Kane Hui and Ernest Hui
Kane and Ernest Hui each made an excess contribution to the Intco Ko Olina noncandidate committee in violation of section 11-204(a). Staff recommended a fine of $100 for Kane Hui and $200 for Ernest Hui.
Mr. Olbrich moved to accept conciliation agreement as amended (deletion of Tokioka contributions). Motion seconded by Mr. Weaver. Motion carried. (Mr. Gabrio-recused, firm represents Respondents)
Draft Conciliation Agreement 07-03 Hemmings Senate Committee
The Hemmings Senate committee paid for an ad in the Oahu Community News Windward, which included four other candidates. It is prohibited to use campaign funds to support the campaigns of others than the candidate for whom the funds were collected. Staff recommended a fine of $100 and reimbursement to the committee of 3/5 of the cost of the ad.
Mr. Olbrich moved to accept Conciliation Agreement 07-03. Motion seconded by Mr. Weaver. Motion carried.
Draft Conciliation Agreement 07-05 Richard Nakao
Richard Nakao made an excess contribution of $500 to the Stacy Higa campaign committee. Staff recommended a fine of $200.
Mr. Weaver moved to accept Conciliation Agreement 07-05 with a fine of $200. Motion seconded by Mr. Olbrich. Motion carried.
Communication to Commission:
Web-based Candidate Filing System
System will be ready for candidate use on 1/18/07. Next report is due on 1/30/07 from all candidates, except for BOE candidates and for those with contributions or expenditures under $5,000.
Legislation
Drafts of proposed legislation have been submitted to both the House and Senate. Staff have met with the Judiciary Chairs of both the House and Senate regarding the legislation.
Discussion on one possible change – unlimited corporate contributions to its noncandidate committee. Change limiting corporations was made last session and staff position is to oppose any amendments that will change it back to unlimited contributions. Commissioners and staff have differing opinions on matter and because of this Commissioners felt further discussion should take place when all members are present. Executive Director to testify as needed at the Legislature.
Review of 2004 to 2006 Disclosure Reports
To date 1,200 candidate disclosure report reviews have been completed.
Recodification of the Hawaii Revised Statutes
Have met with parties that have gone through the process to obtain best practices. Intent is to get out a first draft and then form a committee.
Strategic Planning
Questionnaires have been sent to candidates, noncandidate committees, and others who have an interest in campaign finance. Planning retreat scheduled for Wednesday, February 28 and Thursday, March 1, 2007 beginning at 8:30 a.m.
Next Meeting:
Scheduled for Wednesday, February 14, 2007at 10:00 a.m.
Mr. Olbrich moved to convene an executive session to consult with counsel. Motion seconded by Mr. Weaver. Motion carried.
Public session reconvened –
No further business to discuss – Mr. Olbrich moved to adjourn meeting. Motion seconded by Mr. Weaver. Motion carried.
Meeting adjourned at 12:00 p.m.
