Minutes for November 12, 2004

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

Members Present:
A. Duane Black, Steven Olbrich, Gino Gabrio, Paul Kuramoto, Dean Robb

Staff Present:
Robert Watada, Grant Tanimoto, Ellen Kojima
Gary Kam, Deputy Attorney General

Call to Order:
Meeting convened at 10:05 a.m. with Chairman Black presiding.

Consideration of Minutes:
Deferred until next meeting.

New Business:
Docket 04-08 Save Hawaii's Children v. Hale Coalition
Save Hawaii's Children filed a complaint alleging that a mailer sent to selected apartment owner by Hale Coalition was express advocacy and that they should have registered and filed disclosure reports. Hale Coalition argued that the mailer was meant to be informational and it was not meant to influence the election. Staff informed respondent that the Commission could find that the mailer was express advocacy under the Furgatch opinion. Respondent did not want to go through with a hearing process, they registered and filed required disclosure reports. Staff recommended that since respondent filed required reports complaint should be dismissed.

Mr. Olbrich moved to dismiss complaint, Mr. Robb seconded. Motion carried.

Docket 04-10 Joshua Wisch v. Chris Halford, Barbara Marumoto and Colleen Meyer
Mr. Kuramoto recused, former treasurer for Barbara Marumoto.
Mr. Gabrio recused, former associate of Complainant, Joshua Wisch.

Complainant Joshua Wisch filed a complaint alleging that candidates Halford, Marumoto and Meyer are officers of GOP House PAC, a noncandidate committee, as well as officers of their own candidate committees. He also alleges that the noncandidate committee received excess funds. Staff has not fully investigated matter, recommendation is that matter be further investigated.

Sheldon Jim On, representing the respondents stated that the noncandidate committee followed advice received from staff.

Mr. Olbrich moved that the matter be further investigated, Mr. Robb seconded. Motion carried.

Docket 04-11 Joshua Wisch v. Julia Allen
Mr. Gabrio recused, former associate of Complainant, Joshua Wisch.

Complainant Mr. Wisch filed a complaint alleging that candidate Allen was the Chairperson of her candidate committee and a noncandidate committee that was used to divert contributions to the candidate committee, thus, circumventing the contribution limit. Staff has not fully investigated the matter, recommendation is that the matter be further investigated.

Mr. Olbrich moved that the matter be further investigated, Mr. Robb seconded. Motion carried.

Docket 04-12 Joshua Wisch v. William Stonebraker
Mr. Gabrio recused, former associate of Complainant, Joshua Wisch.

Complainant, Mr. Wisch filed a complaint alleging that candidate Stonebraker is the Chairperson of this own candidate committee and a noncandidate committee. As with the other complaints, staff has not fully investigated the matter and recommend further investigation.

Mr. Olbrich moved that the matter be further investigated, Mr. Robb seconded. Motion carried.

Conciliation Agreement 04-11 Ernest K. Hirata & Associates, Inc. and Ernest K. Hirata
As requested by Keith Kaneshiro attorney for Ernest Hirata, the revised proposed agreement presented to the Commission does not name the company only Ernest Hirata.

Investigation was started over 2 years ago and it has been a time consuming and costly investigation. The investigation found that the company and Mr. Hirata made excess and false name contributions to Anderson, Cayetano, Morgado, Harris, Apana, Hirono and Hannemann. Staff recommends a fine of $127,500.

Mr. Kuramoto stated and Commissioners agreed that the Agreement should name the company as well as the individual. It was the position of the Commissioners that the company made the contributions through officers of the company and the company benefited by receiving state contracts.

Mr. Robb moved to not accept the revised proposed Agreement that names the individual only and accept the proposed Agreement that names the company and the individual, Mr. Kuramoto seconded. Motion carried.

Communications to Commission
OIP Opinion
Opinion addresses the question raised regarding conciliation agreements being made public before commission members make a final decision. States that if an unsigned document is presented to the Commission for their consideration then the document maybe withheld until it is either approved or discussed at a public meeting.

Public Funding
Disbursed approximately $200,000 to 22 candidates. For the next legislative session considering changes to the law to basically distribute more to candidates.

Next Meeting
Scheduled for Wednesday, December 29, 2004.

No further business to discuss, Chair Black adjourned meeting.
Meeting adjourned at 10:40 am.