Minutes for November 13, 2007

Campaign Spending Commission Meeting
Leiopapa A Kamehameha Building, Room 204
November 13, 2007
10:00 a.m.

Members Present:
Paul Kuramoto, Steven Olbrich, Gino Gabrio, Dean Robb
Michael Weaver-Excused

Staff Present:
Barbara Wong, Tony Baldomero, Grant Tanimoto, Ellen Kojima

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

Consideration of Minutes:
Mr. Olbrich moved to accept the minutes as amended of October 10, 2007.  Motion seconded by Chair Kuramoto.  Motion carried.

Amendment – Communication to Commission: “Rules” changed to read “Hawaii Administrative Rules”.

Old Business:
Docket 06-08  Patricia Tummons v. Hawaii’s Concerned Fishermen and their ohana
Chair Kuramoto reviewed for members the issues of the complaint.  Ms. Tummons filed a complaint regarding an advertisement placed by Hawaii’s Concerned Fishermen and their ohana, which ran before the November 2006 election.  She is alleging that they failed to register and report as a noncandidate committee.  At the April meeting Commission members ruled that the matter be further investigated and in June the Supreme Court issued a ruling in the Wisconsin Right to Life case, which paralleled issues in the Fishermen matter.

Executive Director Wong further explained that in the April meeting, Commission members discussed whether the ad is an “advertisement” as defined in HRS, section 11-191.  Commission members preliminarily found that the ad was an advertisement, and requested that the matter be further investigated, as to who paid for the ad and to require that the party register and report.  In June 2007 in the Wisconsin Right to Life case, the Supreme Court created a test to determine whether an ad is (1) express advocacy subject to regulation or (2) an issue ad, not subject to regulation.  If an ad is susceptible to no other reasonable interpretation but as an appeal to vote for or against a candidate, it is express advocacy, but if there is any other reasonable interpretation other than to vote for or against a specific candidate, then the ad is an issue ad.

Staff recommends dismissal in light of the Wisconsin case, as there is another reasonable interpretation of the ad.  Also, the ad is not electioneering communication as defined in HRS section 11-207.6 because the ad did not clearly identify a candidate.

Ms. Keiko Bonk, requested that the matter be further investigated as it is not similar to the Wisconsin case and that the ad was directed to one administration, which was in office at the time the ad was placed.  The ad was a calculated effort on the part of the parties involved to avoid  registration with the Commission.

Commissioner Robb asked if the ad was referring to Linda Lingle or Peter Young, with the use of the term “administration.”

Commissioner Olbrich believed the Commission’s “hands were tied” by the decision in Wisconsin Right to Live.

Several fishermen offered comments.  They contributed towards the ads because they wanted to let the administration know that the former director of the Department of Land and Natural Resources was not responsive to the fishermen’s comments and concerns on various issues at numerous hearings they attended.

Mr. Obrich moved to dismiss Docket 06-08.  Motion seconded by Mr. Gabrio.  Motion carried.

Modification of Advisory Opinion 05-01
The advisory opinion is modifying the date that a political party’s central committee and county committees need to combine their disclosure reports into one report, and clarifying the federal guidelines.

Mr. Olbrich moved to approve as modified.  Motion seconded by Mr. Gabrio.  Motion carried.

New Business:
Docket 07-03  Brian Funai vs. State of Hawaii Campaign Spending Commission, Barbara Wong, Executive Director of State of Hawaii Campaign Spending Commission
Brian Funai filed a petition for declaratory ruling on whether the ads fell within the definition of an “advertisement” under HRS, section 11-191.  Staff recommended dismissal of the petition because of the Commission’s decision in the Tummons vs. Hawaii Concerned Fishermen complaint (Docket 06-08), which made the petition moot.

Mr. Gabrio moved to dismiss the petition.  Motion seconded by Mr. Olbrich.  Motion carried.

Ms. Keiko Bonk voiced concerns regarding the cost of the ad and how the public will never know who paid for the ad.

Conciliation Agreement 07-15      A. Leiomalama Solomon aka Malama Solomon and Friends of Malama Solomon
Proposed agreement is to settle the following violations: $45,000 in excess contributions, reporting loans in the name of another, and failing to document and disclose loans.  The excess contributions were from a family member.  Dr. Solomon has agreed to a fine of $12,000.  Staff recommended acceptance of the agreement.

Mr. Olbrich moved to accept Conciliation Agreement 07-15.  Motion seconded by Mr. Robb.  Motion carried.

Draft Advisory Opinion 07-07
Proposed draft advisory opinion addresses whether each partner from a limited liability partnership that is a government contractor may make contributions of personal funds, and if not, whether their spouses and other family members may contribute.  Staff has consistently interpreted HRS, section 11-205.5 that only the person whose name is on the contract may not contribute. This is in accordance with legislative history.  If the company is named on the contract, owners, officers, and employees may make personal contributions.

Mr. Robb moved to accept draft Advisory Opinion 07-07.  Motion seconded by Chair Kuramoto.  Motion carried (Aye-Kuramoto, Robb, Gabrio / Abstain-Olbrich)

Next Meeting:
Scheduled for Wednesday, December 12, 2007.

Communication to Commission:
Review of Disclosure Reports
Review of disclosure reports filed 1/30/07 and 7/31/07 is complete and 90 discrepancy letters have been sent.

Proposed Legislation
Following is legislation being considered:

- re-insert public funding for the office of the prosecuting attorney;
- clarifying noncandidate committee registration and contribution limitations;
- clarifying reimbursements – section similar to federal law; and
- collapsing sections 11-200 and 11-206 into one.

Mr. Robb moved to convene executive session to consult with counsel.  Motion seconded by Mr. Olbrich.  Motion carried.

Public session reconvened.
Mr. Robb moved to adjourn meeting.  Motion seconded by Mr. Olbrich.  Motion carried.
Meeting adjourned at 11:45 a.m.