Minutes for March 8, 2006

Campaign Spending Commission Meeting
Leiopapa A Kamehameha Building, Room 204
March 8, 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
Gary Kam, Deputy Attorney General

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

Consideration of Minutes:
Mr. Gabrio moved to accept the minutes of February 9, 2006, Mr. Weaver seconded.  Motion carried.

Old Business:
No old business.

New Business:
Draft Conciliation Agreement 06-02  Kober/Hanssen/Mitchell Architects, Inc. and Kurt H. Mitchell
Investigation found that Kober/Hanssen/Mitchell Architects and Kurt Mitchell made false name and excess contributions to the campaigns of Arnold Morgado, Ben Cayetano, Mazie Hirono, Jeremy Harris, Fred Holschuh and Kimo Apana between 1996 and 2001.  The firm also failed to file an organizational report and disclosure and contractor reports.  Respondents have agreed to a fine of $22,500 and staff recommends acceptance of the conciliation agreement.

Mr. Gabrio moved to approve the conciliation agreement as drafted, Mr. Robb seconded.  Motion carried.

Communication to Commission:
Training Session on Neighbor Islands
Sessions which reviewed the requirements of a candidate running for office and the recent law changes were conducted on Maui, Hilo, Kauai and Honolulu.  There were about 15 attendees in Maui, 10 in Hilo, 4 in Kauai and 20 in Honolulu.  Also, 6 CPAs attended the training sessions.  Will hold another round in July when filing of nomination is closed.

Legislative Update
To date three bills have crossed – 2 House bills (HB 3101 and HB 3234) to the Senate and 1 Senate bill (SB 2922) to the House. 

HB 3101, HD 1 – Bill originally required businesses, individuals, and organizations to disclose that mailing is campaign related. HD 1 amends the bill to incorporate HB 2543, which is the commission’s bill.

HB 3234, HD 1 – Bill prohibits a candidate for public office from appearing in public service announcements from the time of filing nomination papers until the person is no longer a candidate.

SB 2922, SD 1 – Bill re-inserts exception for corporations to transfer unlimited funds from their treasuries to their noncandidate committees. 

We are currently testifying in opposition to the changes being proposed, but if the bill is passed we are asking that the changes be retroactive to January 1.

Discussion regarding the $1,000 contribution limit by corporations and unions into their own noncandidate committees.  Commissioners recommend that testimony be presented for contribution limits but without mention of a specific dollar amount.

Next Meeting:
Scheduled for Wednesday, April 12, 2006, at 10:00 a.m.

Mr. Weaver moved to convene executive session, Mr. Robb seconded.  Motion carried.

Public session reconvened –

• All candidates have been informed of audits and reviews being done of their disclosure reports;
• Investigator Dan Hanagami is currently reviewing 2004 reports and is sending out letters for reports having discrepancies; and
• Requested a formal opinion from the Attorney General regarding whether the Commission may escheat prospective campaign contributions for outstanding false name contributions.

No further business to discuss, it was moved and seconded to adjourn the meeting.
Meeting adjourned at 11:45 a.m.