Minutes for March 10, 2004

Campaign Spending Commission Meeting
Leiopapa A Kamehameha Building, Room 204
March 10, 2004
10:00 a.m.

Members Present:
Mona Chock, Steven Olbrich, Gino Gabrio, Paul Kuramoto

Staff Present:
Robert Watada, Tony Baldomero, Ellen Kojima
Grant Tanimoto, incoming General Counsel for CSC staff

Call to Order:
Meeting convened at 10:05 a.m. with Commissioner Chock presiding.

Mr. Olbrich moved to correct agenda item #5, to reflect correct date of the next meeting - April 14, 2004.

Consideration of Minutes:
Mr. Kuramoto moved to accept the minutes of December 10, 2003, Mr. Gabrio seconded. Motion carried.

Mr. Olbrich moved to accept the minutes of January 14, 2004, Mr. Kuramoto seconded. Motion carried.

Mr. Gabrio moved to accept the minutes of February 11, 2004, Mr. Kuramoto seconded. Motion carried.

New Business:
Conciliation Agreement 04-02 Sam Hyun and MCE International, Inc.
This is the second conciliation agreement with Mr. Hyun of MCE International. Mr. Hyun and MCE International (formerly W.A. Hirai) was assessed a fine of $19,000 in 2003 for false name and excess contributions. In an investigation of another company additional contributions made by Mr. Hyun were found. During the initial investigation parties did not provide more information than what was asked. Procedure is now to ask if the party had made any other contributions.

Mr. Gabrio moved to place matter on the table for discussion, Mr. Olbrich seconded.

Mr. Gabrio asked whether the false name contributions are reimbursed, as it is not mentioned in the agreements. Mr. Watada explained that the parties willing to agree to pay a fine, but ask not to admit to any wrongdoing on their part.

Mr. Olbrich moved to accept conciliation agreement 04-02, Mr. Kuramoto seconded. Motion carried.

Conciliation Agreement 04-03 Russell Oda & Oda/McCarty Architects
This is also the second agreement with Mr. Oda and Oda/McCarty Architects. In 2003 they were fined $3,000 for false name contributions. As with the previous agreement a number of additional contributions were found. Mr. Oda admitted to the additional contributions as well as several contributions to the Morgado campaign. Mr. Oda has agreed to a fine of $11,500.

Mr. Gabrio moved to accept conciliation agreement 04-03, Mr. Kuramoto seconded. Motion carried.

Communication to Commission:
Legislation

SB 3104 - Bill proposes to add a second public funding program to the campaign finance laws that is similar to the existing program. Have testified against the bill for the following reasons: it's a complicated program, not enough money to fund and there may be a constitutional problem, as the program is only for candidates that run for a seat in the state house of representatives.

SB 3030 - Bill addresses some of the major issues and concerns of the commission, mainly corporate and contractor contributions.

HB 267 - Bill moves the commission from DAGS to the Judiciary. Attorney General has testified that there might be constitutional problems with this move.

Commissioner Gabrio inquired as to how commissioners are informed as to the progress of a bill's status. Discussion held as to how commissioners could be kept informed of a bill's progress.

For the present, Mr. Watada will be sending a memo to commissioners on the progress of current bills.

• R M Towill trial to begin the week of April 12.
• Next meeting to include an Executive Session to update commissioners of ongoing investigations.
• Mr. Watada, introduced Grant Tanimoto as the commission's new General Counsel. He will be starting April 1, 2004.

No further business to discuss, meeting adjourned at 11:15 a.m.