Minutes for June 13, 2007

Campaign Spending Commission Meeting
Leiopapa A Kamehameha Building, Room 204
June 13, 2007
10:00 a.m.

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

Staff Present:
Barbara Wong, Grant Tanimoto, Ellen Kojima

Call to Order:
Meeting convened at 10:05 a.m. with Chairperson Kuramoto presiding.

Consideration of Minutes:
Mr. Gabrio moved to accept the minutes of May 9, 2007.  Motion seconded by Mr. Weaver.  Motion carried.

Old Business:
Conciliation Agreement 07-13  Brian Taniguchi and Friends for Brian Taniguchi
The review of candidate disclosure reports found that the Friends for Brian Taniguchi committee and Brian Taniguchi made excess contributions of $2,945 to various community organizations.  The contributions were reported and Senator Taniguchi has taken responsibility for the oversight and has been very cooperative during the inquiry.  Staff recommended and the candidate agreed to conciliate with a fine of $750.

Discussion on whether recommended fine, which is based on what has been assessed in the past, should be accepted or whether another amount should be assessed.  There was further discussion that the fine should be at least the amount of the excess contributions made, otherwise the candidate and the community organization benefit from the goodwill.  Also, that excess community contributions do not escheat.

Issac Choy, Treasurer for Senator Taniguchi’s committee, stated that the committee reported all contributions made.  Mr. Choy also noted that the HERTS program does not flag excess community contributions and that there should be some kind of notice or schedule for candidates to be able to determine what the limits are.

Russel Yamashita, attorney for Mr. Choy, stated that the committee reported all contributions made and based upon their understanding of old and new monies thought that the contribution that was in excess was permissible.

Mr. Robb moved that there be no restitution, and that the fine be increased from $750 to $950.  Motion seconded by Mr. Gabrio.  Motion carried.

Advisory Opinion 03-01 Modification
Advisory Opinion 03-01 is modified to clarify that section 11-200 allows candidates to make contributions to political parties, but that section 11-206, does not allow candidates to use surplus funds (funds after an election) to make contributions to parties.  Staff recommended that the advisory opinion be approved as modified and suggested that the law be amended during the 2008 Legislature by collapsing sections 11-200 and 11-206 into one section.

Mr. Gabrio moved to approved Advisory Opinion 03-02 as modified.  Motion seconded by Mr. Robb. Motion carried.

New Business:
Docket 07-01 Green Party of Hawaii vs. Hawaii Chapter of Society of Prof Journalists, et al.
Mr. Gabrio recused as his firm represents a Respondent.

The Green Party of Hawaii filed a complaint against the Hawaii Chapter of Society of Professional Journalists, KGMB, KHNL, KHON, KITV, Republican Party of Hawaii, Hawaii Democratic Party, Linda Lingle Campaign Committee and Friends of Randall Iwase.  The issue is whether a debate between gubernatorial candidates Linda Lingle and Randall Iwase constituted a contribution by the Society of Professional Journalists and the broadcast stations to candidates Lingle, Iwase, and the two parties.

Advisory Opinion 06-07, which follows FEC guidelines, lays out the analysis for when broadcasted debates are not considered contributions.  Debate followed guidelines established in AO 06-07.  Staff recommended that complaint be dismissed against all parties.

Discussion on the pre-established criteria the Hawaii Chapter of Society of Professional Journalist used to determine who may participate in the debate.  Commissioners wanted to know who decided the criteria of significant public following, whether there was a number or percentage that was determined or whether it was the Society that decided what was significant? 

Mr. Jim Brewer, representing the Green Party asked that the matter be continued until September to prepare.

Terry Thomason, representing the Republican Party, stated that the broadcast of the debate, if ruled that it is a contribution, would be a contribution only to the candidates and not the party, and that the party received no benefit from the debate and asked that the complaint be dismissed against the party.

Mr. Robb moved to dismiss the complaint against the Republican Party of Hawaii and the Hawaii Democratic Party, and that there be further inquiries of the sponsor’s pre-established criteria.  Motion seconded by Mr. Weaver.  Motion carried.  (Kuramoto, Robb, Weaver / Gabrio-recused)

Draft Advisory Opinion 07-04  Application of HRS section 11-205.5 to Candidates
Issue is whether an elected official, who is also a candidate, may enter into a personal services contract with the State and, during the period between execution and completion of the contract,  solicit any contribution from any person for the elected official’s candidate committee.  The draft advisory opinion allows the candidate to solicit contributions for the elected official’s candidate committee.

Mr. Weaver moved to approved draft advisory opinion.  Motion seconded by Mr. Gabrio.  Motion carried.

Draft Advisory Opinion 07-05  Advertisements:  Endorsement v. Pro-rata expenditure
Issue is whether an advertisement run by a candidate that includes other candidates and elected officials, is an endorsement by the other candidates, which is a permissible expenditure by the candidate, or whether it advocates the election or defeat of candidates and other legislators, which means the payment needs to be pro-rated.  The draft advisory opinion responds that the ad in question is a permissible expenditure under specific circumstances as described in the draft opinion.

Mr. Gabrio moved to approved draft advisory opinion.  Motion seconded by Mr. Weaver.  Motion carried.

Communication to Commission:
Legislation Update
HB 1130 passed and has been transmitted to the Governor for her signature.

Tavares Litigation Update
Hearing on Complaint for Declaratory Judgment and Motion for Preliminary Injunction regarding 11-204(b) interpretation held on Friday, May 4 on Maui.  Still awaiting Judge’s order to determine our next step.

Next Meeting:
Scheduled for Wednesday, July 11, 2007 at 10:00 a.m.

Mr. Weaver moved to adjourn meeting.  Motion seconded by Mr. Gabrio.  Motion carried.
Meeting adjourned at 12:00 p.m.