Minutes for May 12, 2004

Campaign Spending Commission Meeting
Leiopapa A Kamehameha Building, Room 204
May 12, 2004
10:00 a.m.

Members Present:
A. Duane Black, Mona Chock, Steven Olbrich, Gino Gabrio, Paul Kuramoto

Staff Present:
Robert Watada, Grant Tanimoto, Ellen Kojima

Call to Order:
Meeting convened at 10:00 a.m. with Chairman Black presiding.

Consideration of Minutes:
Deferred until next meeting.

New Business:
Conciliation Agreement 03-16 Murayama Kotake Nunokawa & Associates, Inc.
Three contributions made by Murayama Kotake Nunokawa & Associates ("MKN") were originally part of the investigation of Randolph Murayama & Associates. Edwin Murayama of MKN is the father of Randolph Murayama. This particular case was very complex because principals gave misleading information to the investigator. Mr. Kotake of MKN and who signed the checks of the three contributions in question has agreed to take responsibility for the contributions. He has signed the conciliation agreement for making a excess contribution and agreed to a $500 fine.

Ms. Chock moved to approve conciliation agreement 003-16, Mr. Kuramoto seconded. Motion carried.

Draft Advisory Opinion 04-02 Campaign Training Schools
Draft advisory opinion addresses an issue that is becoming routine during an election year. PAC's are becoming involved with candidate campaigns by providing workshops on how to run an effective campaign. Questions raised are whether the costs to have the workshops are contributions to the candidate and if the PAC receives contributions are contribution limits applicable. Following the language of the law the answer to both questions is in the affirmative.

Mr. Gabrio moved to approve draft advisory opinion 04-02, Ms. Chock seconded. Motion carried.

Communication to Commission:
Legislation
SB 3104 - Not heard in conference committee

HB 267 - Administratively attaches the commission with DAGS, but allows the commission certain independence. Bill was vetoed because the sections that sets up the election commission. Veto was overridden - Act 57.

SB 459 - Changes made include:

Prohibition of fundraising on state or county property;
Redefined a candidate's committee;
Definition to include separate segregated fund;
Waives registration requirement for incumbents;
Enumerates items considered as personal expenses;
Clarifies language for funds that escheat to the Hawaii election campaign fund;
Deletes foreign corporation bar;
Subsection added to bar certain out of state contributions;
Government contractor reporting provision amended;
Deletes provision that the treasurer has fiduciary responsibility;
Clarifies "coordinated activity";
Amended requirements on disposition of residual funds;
Qualifying contributions must come from residents of Hawaii;
Special election candidates not eligible for public funding; and
Amended penalties for violations of the campaign finance statute.

Next Meeting:
Scheduled for Wednesday, June 2, 2004 at 10:00 am.

Executive session convened to discuss item 6 on the agenda.

Public session reconvened - no further business to discuss Ms. Chock moved to adjourn meeting. Meeting adjourned at 11:30 a.m.