Minutes for March 9, 2005

Campaign Spending Commission Meeting
Leiopapa A Kamehameha Building, Room 204
March 9, 2005
10:00 a.m.

Members Present:
Steven Olbrich, Gino Gabrio, Paul Kuramoto, Dean Robb

Staff Present:
Robert Watada, Tony Baldomero, Grant Tanimoto, Ellen Kojima

Call to Order:
Meeting convened at 10:00 a.m. with Vice-Chair Kuramoto presiding.

Consideration of Minutes:
Mr. Gabrio moved to accept the minutes of November 12, 2004, Mr. Robb seconded. Motion carried.

Mr. Gabrio moved to accept the minutes of December 29, 2004, Mr.Robb seconded. Motion carried.

Mr. Gabrio moved to accept the minutes of February 9, 2005, Mr. Robb seconded. Motion carried.

Old Business:
Conciliation Agreement 05-01 Paren, Inc. and Larry Matsuo, et al.
At the last meeting commissioners requested some changes…page 1-the naming of Paren and Mr. Matsuo as respondents and signature page-they also sign as respondents

Mr. Matsuo is named as a respondent in the agreement, but as he is no longer an officer of the company he will not be signing the agreement. The other named respondents will be responsible for the assessed fine.

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

New Business
Conciliation Agreement 05-03 The AES Design Group, Inc. and Dexter Yee
The AES Design Group and Dexter Yee was previously fined for making an excess contribution, which Mr. Yee stated was the only contribution he made. Mr. Yee recently pleaded no contest to making false name contributions. The proposed conciliation agreement is for the false name contributions that Mr. Yee acknowledged were made by friends to the Harris campaign. Staff recommends a fine of $4,500.

Commissioners requested that the corporation also sign the agreement as a respondent.

Mr. Robb moved to accept the conciliation agreement with the noted change that the corporation also signs the conciliation agreement as a respondent, Mr. Gabrio seconded. Motion carried.

Draft Advisory Opinion 05-04 Contributions Include Sale of Advertising
Draft advisory opinion addresses a candidate's request for an advisory opinion questioning whether paid advertisements in a candidate's mailing is treated as a contribution to a candidate. Staff answers in the affirmative, as any funds raised for a candidate should be considered a contribution and reported as such by the candidate. Also that the contribution limits and registration requirements apply to the companies that advertise in the newsletter.

Mr. Gabrio moved to accept the advisory opinion as drafted, Mr. Robb seconded. Motion carried. (Ayes-Gabrio, Robb Kuramoto No-Olbrich)

Notice of Compliant
A complaint is being filed and a fine of $1,000 is being recommended because the committee for Haunani Apoliona has been notified that ad the committee placed in an issue of the MidWeek violated section 11-215, HRS. The committee refuses to pay the fine stating that the issues in which the disclaimer for the ad was inked out was not the fault of the committee but that of the publisher.

Ms. Haunani Apoliona was present and reiterated for commissioners the circumstances leading up to the filing of the complaint. When she met with MidWeek to finalize the ad to be published the proof included the disclaimer. Was later informed by MidWeek they had press problems and received a letter from MidWeek stating this fact.

Mr. Lyle Harada, representing Ms. Apoliona's committee stated that under the circumstances because of a third party's mistake the committee should not be held responsible and the complaint should be dismissed.

Because argument is that the error was not on the part of the committee but that of a third party, there was some discussion on whether MidWeek was an agent of the candidate. Commissioners are in agreement that the law does not allow for an excuse by a candidate for the mistake of another.

As a compromise, commissioners asked if she and her committee would accept a letter from the Commission acknowledging that the committee is not at fault for the inked out disclaimer, but they will pay the $25 penalty.

Matter continued until the next meeting for further discussion with parties.

Communications to Commission:
Legislation
SB 440 - Contains most changes discussed.

SB 1689/HB1713 - Comprehensive public funding bills that the staff is opposing and recommends amending the current program. The bills as written would cost more than $500,000 to administer. Mr. Robb suggested that testimony given should include the effects other states have experienced that have a similar program.

Member Handbook
Working on a handbook for Commission members. Any comments or ideas let executive director know.

Compendium Series
Staff put together a report on the public funding program from the 1980 - 2004 elections.

Mr. Gabrio moved to recess public session and convene executive session to discuss personnel matters, Mr. Olbrich seconded. Motion carried.

Public session reconvened - No further business to discuss Vice-Chair Kuramoto adjourned meeting. Meeting adjourned at 12 noon.