Minutes for June 13, 2000

Campaign Spending Commission Meeting
Leiopapa A Kamehameha Building, Room 204
June 13, 2000
3:00 p.m.

Members Present:
A. Duane Black, Della Au and Clifford Muraoka

Staff Present:
Robert Watada, Jon Itomura and Ellen Kojima

Call to Order:
Meeting convened at 3:00 p.m. with Chairman Black presiding.

Consideration of Minutes:
Deferred until next meeting.

New Business:
Draft Advisory Opinion 00-06 Free Web Page Hosts
Draft advisory opinion addresses whether the use of free web page host by a candidate is a contribution to the candidate. The law defines a contribution as anything of value, but it has been interpreted that there is a value in use of a free web page host but no value in exchange, so the use of free web page need not be reported as a contribution.

Mr. Muraoka moved to adopt draft Advisory Opinion 00-06, Ms Au seconded. Motion carried.

Docket #00-01 In the Matter of Russ Francis
The complaint for preliminary determination charges that Russ Francis and his campaign committee have outstanding reports, a failure to file a supplemental report and he failed to amend his organizational report to reflect the resignation of his campaign chairperson and treasurer. Reports for the periods 10/19/98 to 11/3/98, 11/4/98 to 12/31/98 and 1/1/99 to 6/30/99 were filed, but the reports reflected identical numbers from the report that ended 10/18/98.

On June 8, received a response from Mr. Francis in regards to the complaint. In his letter he addresses the deficient reports by attaching amended reports, but the reports do not include any schedules or details to reflect amount changes. His letter further states that files were not available or had been thrown out when the campaign office was closed, and in order to do the report he had to reconstruct his contributions and expenditures from bank records.

Mr. Itomura stated that when he reviewed the bank records he could not match the figures that Mr. Francis reported. Also, that there were no details as to how a reported loan was reduced in balance. Additional information needs to be submitted to staff regarding the loan and Mr. Francis needs to address the matter of the newspaper notification regarding the 7/1/99 to 12/31/99 supplemental report and the outstanding fine of $1,450, which was not addressed in his letter.

Mr. Muraoka moved to adopt the Preliminary Determination, Findings of Fact and Conclusions of Law, Ms Au seconded. Motion carried

Mr. Muraoka further moved that the candidate Russ Francis and his campaign committee be fined $2,000, Ms Au seconded.

Mr. Russ Francis stated that he submitted what was requested and that a detail record of the fundraiser was not requested. He also felted that that matter should be further investigated before he was fined. He further stated that he has been trying to comply with what the staff has been asking, but referred to problems he had been having with the computer program.

Mr. Muraoka moved to amend his motion regarding the fine.

Ms Au moved that Russ Francis and his campaign committee file the required reports within 30 days with a minimum fine of $1,000, if reports are not filed within 30 days a fine of $2,000 is to be assessed, Mr. Muraoka seconded. Motion carried.

Communications to Commission:
Litigation Update
Christian Coalition     Court did not grant the injunction that the Coalition has requested.
KSBE                      Litigation may have been without authorization.

Next Meeting:
Scheduled for Wednesday, July 5, 2000 at 3:00 p.m.

August meeting rescheduled from August 8 to August 1

Addendum –

Mr. Paul Mattes made an appearance before the Commission and stated that he is filing with the Chairman of the Commission as to why he is the legal Governor.

No further business to discuss Chairman Black adjourned meeting.