Minutes for November 21, 2001
Campaign Spending Commission Meeting
Leiopapa A Kamehameha Building, Room 204
November 21, 2001
3:45 p.m.
Members Present:
A. Duane Black, Della Au Belatti, Clifford Muraoka, Mona Chock, Richard Choy
Staff Present:
Robert Watada, Jon Itomura, Ellen Kojima
Call to Order:
Meeting convened at 3:45 p.m. with Chairman Black presiding.
Chairman Black called for a motion to amend the agenda.
Mr. Muraoka moved to amend the agenda to add Drafts AO 01-10 and AO 01-11 for Discussion and Consideration, Ms Belatti seconded. Motion carried.
Consideration of Minutes:
Deferred until next meeting.
New Business:
Draft AO 01-09 Use of Campaign Fund for Banquets, Golf Tournament & Testimonials
Its been revealed that candidates were using campaign funds to pay for entry fees and dinners for which the candidate benefited. Draft advisory opinion advises candidates that it is not permissible to use campaign funds for personal benefit.
Ms. Chock moved to approve draft AO 01-09, Mr. Muraoka seconded. Motion carried.
Draft AO 01-10 Contribution Limits special election to Fill a Vacated City Council Seat
Draft advisory opinion advises that the contribution limit for the special election to fill a vacated council seat will be $4,000, and the election period will be from November 3, 1998 to the date of the special election.
Ms. Chock moved to approve draft AO 01-10, Mr. Choy seconded. Motion carried.
Draft AO 01-11 Contribution & Fundraising Limits When Changing Campaigns Within An Election Period
Draft advisory opinion addresses the contribution and fundraising limits when a candidate changes campaigns within an election period. The law does not address either situation, so the draft advisory opinion advises candidates who received the maximum for a statewide office, then switched to a non-statewide office must return to donors any excess received, and may have the two fundraisers allowed under the law.
Ms. Belatti moved to approve draft AO 01-11, Mr. Muraoka seconded. Motion carried.
Conciliation Agreement #01-02 In Re the Matter of Pam Lee Smith
Pam Lee Smith was an unsuccessful candidate for the House of Representatives in the 2000 election. She applied for and received $6,072 in public funds. In one of her mailings she included a brochure for Hank Makini, a senate candidate. The law prohibits the use of public funds to be used to benefit another candidate. Staff investigation found that it was not an intentional violation and recommends a fine of $1,500, which would cover the cost of the mailing.
Ms. Smith stated that she received inaccurate advice regarding the mailing and accepted responsibility for the mistake, and because limited finances she asked that the Commission not fine her.
Mr. Muraoka moved that a letter or reprimand be issued to Ms. Smith and that there be no monetary fine, Mr. Choy seconded.
Aye: Belatti, Choy, Muraoka No: Black, Chock
Conciliation Agreement #01-03 In Re the Matter of AES Design Group
Investigation found that AES Design Group made an excess contribution of $2,000 to the Harris 2000 campaign committee. Dexter Yee, president of AES acknowledged the excess, and explained that the Harris committee solicited contributions under two different names and assumed that it was two different accounts. The excess contribution was not intentional and a fine of $750 is recommended.
In answer to commissioner's questions - it was determined that a fine of $500 for each violation and $250 for not filing would be fair, and that candidate's would be informed of the excess contributions and that it would need to escheat to the Hawaii election campaign fund.
Commissioners also voiced concern that on the part of the candidates; excess contributions are not being caught.
Ms. Chock moved to accept the conciliation agreement with Respondent AES Design Group, Mr. Muraoka seconded. Motion carried.
Conciliation Agreement #01-04 In Re the Matter of Hawaii Design Associates, Inc.
Investigation found that Hawaii Design made an excess contribution of $1,000 and that it was not intentional. The death of a bookkeeper led to the oversight. Hawaii Design has been filing disclosure reports, a fine of $500 is recommended.
Mr. Muraoka moved to accept the conciliation agreement with Respondent Hawaii Design Associates, Ms. Chock seconded. Motion carried.
Conciliation Agreement #01-05 In Re the Matter of A J Construction
A J Construction has not returned their agreement as yet. Matter deferred.
Conciliation Agreement #01-06 In Re the Matter of Community Planning
Investigation found that Community Planning made an excess contribution of $2,000 and that it was not intentional. A bookkeeping error led to the excess contribution. Community Planning has been filing disclosure reports; a fine of $500 is suggested.
Ms Chock moved to accept the conciliation agreement with Respondent Community Planning, Mr. Muraoka seconded. Motion carried.
Conciliation Agreement #01-07 In Re the Matter of John Farias, Jr.
Investigation found that Mr. Farias made an excess contribution of $1,000 and that it was not intentional. On his part Mr. Farias did not keep track of how much he already contributed.
A fine of $500 is recommended.
Ms. Chock moved to accept the conciliation agreement with Respondent John Farias, Jr., Mr. Choy seconded. Motion carried.
Conciliation Agreement #01-08 In Re the Matter of Alan Ho, et al.
Investigation found that Alan Ho and several organizations that he exercises control over made excess contributions to the Harris campaigns during the 1996 and 2000 election periods. During an interview with Mr. Ho he stated that it was his understanding that he and each of the organizations could make a $4,000 contributions. Since Mr. Ho provided information without being subpoenaed or a contested case hearing, and his attorney has agreed to an administrative fine of $5,500, staff recommends that the Commission accept the agreement.
Ms Belatti expressed concern that it does not appear that the Harris is flagging excess contributions. Further stated that she didn't want other organizations to get the message that if they do something wrong all they have to do is admit their mistake and pay a fine.
Chairman Black stated that this is just the beginning of the investigation, and that with these cases the Commission is putting other organizations on notice that we are looking into this matter and there will be consequences if any violations are found.
Ms Belatti moved to accept the conciliation agreement with Respondent Alan Ho, et al., Ms. Chock seconded.
Aye: Black, Belatti, Chock Abstain: Muraoka
Next Meeting:
Scheduled for Tuesday, December 18, 2001 at 3:00 p.m.
Mr. Muraoka moved to recess public session and convene executive session to confer with counsel, Ms. Belatti seconded. Motion carried.
Public session reconvened:
No further business to discuss, Chairman Black adjourned meeting.
Meeting adjourned at 5:25 p.m.
