Minutes for June 14, 2006
Campaign Spending Commission Meeting
Leiopapa A Kamehameha Building, Room 204
June 14 2006
10:00 a.m.
Members Present:
Paul Kuramoto, Gino Gabrio, Michael Weaver
Excused: Dean Robb and Steven Olbrich
Staff Present:
Barbara Wong, Tony Baldomero, Grant Tanimoto, Ellen Kojima
Call to Order:
Meeting convened at 10:00 a.m. with Chairperson Kuramoto presiding.
Consideration of Minutes:
Mr. Weaver moved to accept the minutes of May 18, 2006, Mr. Gabrio seconded. Motion carried by unanimous vote.
New Business:
Draft Conciliation Agreement 05-02 Stringer Tusher Architects, A.I.A., Inc., STS Properties, Inc., David Stringer and Terry Tusher
Phil Li present, representing Stringer Tusher Architects.
Draft conciliation agreement is offered to settle claims of false name contributions totaling $24,000, and excess contributions being made during the period of 7/1/97 to 12/31/97. Staff recommended and respondents have agreed to a fine of $15,000.
Mr. Weaver moved to accept conciliation agreement. Motion seconded by Mr. Gabrio. Motion carried by unanimous vote.
Amend Conciliation Agreement 02-24 MGD Technologies, Inc.
A respondent, an agent for MGD Technologies, Inc., who has since left the company has requested that his name be removed from the Agreement and the minutes of 2/13/03. Although the agent was named as a respondent, he did not sign the Agreement. It was signed by the president of the company for the company only.
Staff recommends that the Conciliation Agreement be amended as of 6/14/06 and that the minutes of 2/13/03 be amended.
Mr. Gabrio moved to accept recommendations that the Conciliation Agreement and Minutes of 2/13/03 be amended. Motion seconded by Mr. Weaver. Motion carried by unanimous vote.
Draft Advisory Opinion 06-02
Draft advisory opinion addresses the questions of whether the purchase by a candidate of advertising space in a non-profit organization’s newsletter, is making a donation to the non-profit, and whether there is a contribution to a candidate when a ticket is given to a candidate, without cost, to attend a non-profit event.
Draft advisory opinion advises that the payment by a candidate of a commercially reasonable rate would be an expenditure and anything over the rate would be a contribution to the non-profit. For the second issue, the cost of the meal is a contribution if the ticket was provided to influence the nomination or election of the candidate.
Commissioners felt that the two issues should be addressed as two separate advisory opinions.
Mr. Gabrio moved to approve the draft as two separate opinions. Motion seconded by Mr. Weaver. Motion carried by unanimous vote.
Draft Advisory Opinion 06-03
Draft advisory opinion addresses whether funds raised from a charitable event sponsored or held by a candidate is a contribution and whether the sponsorship of a 501(c)(3) or 501(c)(4) for charitable community purposes could trigger contributions.
Draft advisory opinion advises that charitable fundraisers should be held as separate events from any campaign fundraisers and any funds raised at a charitable fundraiser should not be considered contributions to a campaign, and draft also establishes a list of factors for candidates to follow to avoid having donations to a 501(c)(3) organization being considered a campaign contribution.
Commissioners felt that the two issues should be addressed as two separate advisory opinions.
Mr. Gabrio moved to recommend that two separate opinions be issued. Motion seconded by Mr. Weaver. Motion carried by unanimous vote.
Draft Advisory Opinion 06-04
Draft advisory opinion addresses the issue of when the law requires registration of a ballot issue committee.
Mr. Gabrio noted that draft opinion seems to be guidance as opposed to a request for an interpretation of an issue, and therefore should be addressed as a memo or pamphlet, etc., and not as an advisory opinion.
Rescind Advisory Opinion 95-02
Staff recommends that the advisory opinion be rescinded because it discusses only single events held as both charitable and campaign fundraisers. Additionally, laws cited in it have been amended.
Mr. Gabrio moved to rescind Advisory Opinion 95-02. Motion seconded by Mr. Weaver. Motion carried by unanimous vote.
Rescind Advisory Opinion 96-02
Advisory opinion addresses how to properly report expenditures. Staff recommends that the opinion be rescinded because the applicable law has been amend by Act 203 and requires that expenditures be itemized.
Mr. Weaver moved to rescind Advisory Opinion 96-02. Motion seconded by Mr. Gabrio. Motion carried by unanimous vote.
Rescind Advisory Opinion 96-03
Advisory opinion states that pursuant to Hawaii Administrative Rule 2-14.1-12, surplus funds may be contributed to “any party, charity, non-profit organization”. Staff recommends that this rule be rescinded because when the rule was amended in 1998 the wording “any party, charity, non-profit organization” was deleted.
Mr. Gabrio moved to rescind Advisory Opinion 96-03. Motion seconded by Mr. Weaver. Motion carried by unanimous vote.
Communication to Commission:
A summary of the Code of Federal Regulations on Internet Communications, was presented to the Commissioners.
Next Meeting:
Scheduled for Thursday, July 13, 2006
Mr. Weaver moved to adjourn meeting. Motion seconded by Mr. Gabrio. Motion carried by unanimous vote.
Meeting adjourned at 10:40 a.m.
