Minutes for July 13, 2006

Campaign Spending Commission Meeting
Leiopapa A Kamehameha Building, Room 204
July 13, 2006
10:00 a.m.

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

Staff Present:
Barbara Wong, Tony Baldomero, Grant Tanimoto, Ellen Kojima
Robyn Chun, Deputy Attorney General

Call to Order:
Meeting convened at 10:00 a.m. with Chairperson Kuramoto presiding.

Consideration of Minutes:
June 1, 2006
Darwin Ching presented the Commission pleadings regarding the minutes of June 1, 2006.  He  asks that the Commission consider his pleadings as he believes that the minutes are inaccurate.

Mr. Gabrio moved to defer approval of the minutes of June 1, 2006.  Motion seconded by Mr. Robb.  Motion carried by unanimous vote.

June 14, 2006
Mr. Gabrio moved to accept the minutes of June 14, 2006.  Motion seconded by Mr. Weaver.  Motion carried by unanimous vote.

New Business:
Draft Conciliation Agreement 06-07  Kevin’s Electric, Inc.
Kevin’s Electric made a $2,500 contribution to its noncandidate committee.  The committee subsequently made a $2,500 contribution to the Republican Party, which was $1,500 in excess of the contribution limit.  Kevin’s Electric self-reported to the Commission and the recommended fine is $500.

Mr. Chong Kee of Kevin’s Electric asked that the approval of the Agreement be deferred as he wants the Agreement reviewed by Mr. Darwin Ching, Esq.

Mr. Ching clarified that he advised Mr. Chong Kee to request that the Agreement include language not admitting any liability.

Draft Conciliation Agreement 06-08  Pacific Marine & Supply Co., Ltd.
Pacific Marine made a $4,000 excess contribution to its noncandidate committee.  When informed, Pacific Marine agreed to conciliate and agreed to, and staff recommends a fine of $750.

Mr. Gabrio moved to approve conciliation agreement as drafted.  Motion seconded by Mr. Robb.  Motion carried by unanimous vote.

Draft Advisory Opinion 06-06/Rescind Advisory Opinion 00-08
Draft advisory opinion addresses the question of whether a contribution is attributed to a donor, who makes a nonmonetary contribution to a committee, and the committee then sells the item at a fundraiser for more than its reasonable market value.

Draft advisory opinion advises that when the item is sold the buyer is making a contribution of the difference between the reasonable market value and what the buyer paid. 

Advisory Opinion 00-08 advised that what a donated item sold for more than its market value, the entire amount would be attributed to the donor.   Staff recommends that Advisory Opinion be rescinded and replaced with draft Advisory Opinion 06-06.

Mr. Olbrich moved to accept draft Advisory Opinion 06-06.  Motion seconded by Mr. Gabrio.  Motion carried by unanimous vote.

Communication to Commission:

• Full page article in the CPA magazine regarding upcoming workshops
• Candidate and committee workshops to start next week
• CSC Bulletin newsletter

Next Meeting:
Scheduled for Wednesday, August 9, 2006

Mr. Weaver moved to convene executive session.  Motion seconded by Mr. Gabrio. Motion carried by unanimous vote.

Public session reconvened – No further business to discuss, Mr. Weaver moved to adjourn meeting.  Motion seconded by Mr. Olbrich.  Motion carried by unanimous vote. 

Meeting adjourned 11:10 a.m.