Minutes for November 9, 2005

Campaign Spending Commission Meeting
Leiopapa A Kamehameha Building, Room 501
November 9, 2005
10:00 a.m.

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

Staff Present:
Barbara Wong, Tony Baldomero, Grant Tanimoto, Ellen Kojima
Holly Shikada, Deputy Attorney General

Call to Order:
Meeting convened at 10:05 a.m. with Chairperson Kuramoto presiding.

Consideration of Minutes:
Deferred until next meeting.

Deferred to end of agenda:
            Docket 04-05     Professional Results v. Miles Furutani
            Docket 04-06     Professional Results v. Dalton for Hawaii
            Docket 05-03     In Re the Matter of Dalton Tanonaka, et al.

Old Business:
Docket 05-04 David Kimo Frankel v. James Y. Arakaki
Compliant filed alleging that funds received for a legal defense fund should have been reported as campaign contributions.

After meeting with Brian DeLima, attorney for James Arakaki, and Mr. Arakaki, Respondent Arakaki will return funds to donors, with a notation that if they would like they may make a contribution to his campaign fund within the contribution limits for the prior election period.  Staff recommends that the matter be dismissed, as the defense fund donations were not made as campaign contributions.

Mr. Robb moved to dismiss the complaint, Mr. Gabrio seconded.   Motion carried.

New Business:
Draft Conciliation Agreement 05-11 In Re the Matter of Thomas I. Nakama
Investigation found several contributions to the Linda Lingle campaign from various people employed by Cutter businesses.  Mr. Nakama, an employee, exceeded the $6,000 contribution limit and admits providing funds to each of his daughters to make contributions to the Lingle campaign.  Staff recommends acceptance of the conciliation agreement and an administrative fine of $1,000, which Mr. Nakama has also agreed too.
(Note:  Revised copy- deleted #s 5, 6, 7 and 8)

Mr. Olbrich moved to accept revised draft conciliation agreement 05-06, Mr. Gabrio seconded.  Motion carried.

Draft Advisory Opinion 05-06
A Hawaii county councilmember asked whether use of a personal cell phone used primarily for county business, which is used for express advocacy would be a contribution on the government’s part if the councilmember is reimbursed by the government.  Draft advisory opinion states that if the phone is used for express advocacy the government’s reimbursement would be a contribution to the candidate.

Discussion regarding whether draft should state a minimum amount, but it was felt that the opinion states that the use would constitute a contribution.

Mr. Gabrio moved to approve draft advisory opinion 05-06, Mr. Robb seconded.  Motion carried.
(Olbrich-abstain)

Deferred Matters-
Docket 04-05 Professional Results v. Miles Furutani
Complaint alleges that services Mr. Furutani provided the Tanonaka campaign should have been reported as in-kind contributions.
Docket 04-06 Professional Results v. Dalton for Hawaii
Complaint alleges that Mr. Tanonaka and his campaign committee received illegal loans and did not report all expenditures.
Docket 05-03 In Re the Matter of Dalton Tanonaka, et al.
Commplaint alleges that Mr. Tanonaka received illegal loans that should have been reported as contributions to his campaign.

Complaints have been conciliated and staff recommends that Dockets 04-05 and 04-06 be dismissed.  Docket 05-03 an administrative fine of $7,500 be assessed for 4 instances of unreported contributions, disclosure reports be amended and claims against Hata, Tsai, Furutani and Masatsugu be dismissed.

Pam Tamashiro, representing Mr. Tanonaka stated the Mr. Tanonaka takes full responsibility for the situation and would like to resolve the matter.  Agrees with the conciliation agreement and the amount of the fine and would like to negotiate an installment plan to begin when released from prison.

Mr. Tanonaka, reiterated that he takes full responsibility for the matter and would like to resolve the matter.

Mr. Olbrich stated that he was not comfortable with being presented with the agreement today to make a decision, and asked for time to read the agreement before making a decision.  Mr. Gabrio shared Mr. Olbrich’s view.  Matter continued until Thursday, December 10 at 1:00 p.m. to give commissioners time to review agreement.

Communication to Commission:

• Hawaii’s website has been rated #4 in the nation.
• NC Web Base Filing – Beta testing to begin January 1
• HSCPA’s Magazine – Submitted an article on the $2.00 check-off for the December issue.  Looking into doing talks with other groups on the check-off and working on a $2.00 check-off ad campaign.
• County visits – Each county expressed their appreciation for the staff’s help.
• Goals and Objectives for 2006 – Focus will be technology
• Act 203 – FAQ on website
• Legislation – Proposed legislation for the December meeting
• COGEL Lifetime Award – Bob Watada will be presented the award at the awards banquet at the conference.
• COGEL Travel – For reimbursement original receipts needed and will get advance per diem

Next Meeting:
Scheduled for Wednesday, December 21, 2005 at 10:00 a.m.

Meeting continued until Thursday, December 10, 2005 at 1:00 p.m.

Thursday, November 10, 2005
Leiopapa A Kamehameha Building, Room 203

Meeting reconvened at 1:05 p.m. with Chairperson Kuramoto presiding.

Docket 04-05     Professional Results v. Miles Furutani
Docket 04-06     Professional Results v. Dalton for Hawaii
Docket 05-03     In Re the matter of Dalton Tanonaka, et al.

Agreement has been revised, changes are as follows:

Page 3, reference to past director has been taken out, as he was the director at the time.
Page 9 Part VII, changed conciliation agreement to docket, as it is Docket 05-03 that is being conciliated.
Last page, Part X, deleted Hata, Tsai, Furutani and Masatsugu, as agreement is with Dalton Tanonaka and recommend that complaint against individuals be dismissed.

Ms. Tamashiro, attorney for Mr. Tanonaka, has reviewed the revised agreement of 11/10/05 and agrees with changes.  Staff recommends that the agreement of 11/10/05 be approved.

Mr. Gabrio moved to approve the agreement as revised with a fine of $7,500, Mr. Olbrich seconded.  Motion carried. (Robb-recused)

Mr. Gabrio moved to dismiss the Dockets 04-05 and 04-06 and Docket 05-03 against individuals Hata, Tsai, Furutani and Masatsugu, Mr. Olbrich seconded.  Motion carried.  (Robb-recused)

Discussion clarifying that information received from the individuals was that the loans made to Mr. Tanonaka were personal loans and clarified that legal services that Mr. Furutani provided were voluntary and not considered a contribution to the campaign.

Mr. Gabrio moved to adjourn the meeting of 11/9/05, Mr. Robb seconded.  Motion carried.
Meeting adjourned at 1:15 p.m.