Minutes for October 11, 2006

Campaign Spending Commission Meeting
Leiopapa A Kamehameha Building, Room 204
October 11, 2006
10:00 a.m.

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

Staff Present:
Barbara Wong, Grant Tanimoto, Ellen Kojima

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

Consideration of Minutes:
Mr. Gabrio moved to approve the minutes of September 13, 2006.  Motion seconded by Mr. Weaver.  Motion carried.

(Mr. Olbrich and Mr. Robb did not vote – did not attend 9/13/06 meeting)

New Business:
Docket 06-04  Richard Harrington v. Jeffrey K. Alameida
Mr. Harrington filed a complaint alleging that candidate Jeffrey Alameida used candidate Carol Philips disclosure reports to obtain his name and address to solicit a contribution, in violation of section 11-193(a)(4), Hawaii Revised Statutes.  Mr. Harrington is the father of candidate Carol Philips and resides on the mainland and would not be listed anywhere except as a contributor to Carol Philips.

Mr. Alameida has admitted to getting Mr. Harrington’s name from Carol Philips’s disclosure report.  Staff recommends and Mr. Alameida has agreed to a fine of $100.

Commissioners Gabrio and Weaver did not feel that a $100 fine is enough if Mr. Alameida solicited others from the candidate’s disclosure report.

Mr. Robb moved that the matter be deferred until the next meeting for further investigation.  Motion seconded by Mr. Gabrio.  Motion carried.

Chairperson Kuramoto requested that the discussion of the conciliation agreements be taken out of order – discussed Conciliation Agreements 06-11 and 06-12 before Conciliation Agreements 06-09 and 06-10.  Reason for request – Conciliation Agreements 06-11 and 06-12 showed how much was given and how much would need to escheat.

Conciliation Agreement 06-11  Credit Associates of Maui, Ltd
Credit Associates self reported having made four excess contributions totaling $2,725 to its noncandidate committee in 2006. Staff recommends and Credit Associates have agreed to a fine of $750 and $1,175 would escheat to the Hawaii election campaign fund.

Mr. Robb moved to accept Conciliation Agreement 06-11.  Motion seconded by Mr. Olbrich.  Motion carried.

Conciliation Agreement 06-12  Kaneohe Ranch Management, Ltd.
Kaneohe Ranch Management made three excess contributions totaling $1,150 to its noncandidate committee.  Excess was found after a review of disclosure reports filed.  Staff recommends and Kaneohe Ranch has agreed to a fine of $350 and $650 would escheat to the Hawaii election campaign fund.

Mr. Gabrio moved to accept Conciliation Agreement 06-12.  Mr. Weaver seconded the motion.  Motion carried.

Conciliation Agreement 06-09  KRS Development, Inc.
KRS Development self reported having made eight excess contributions totaling $2,050 to its noncandiate committee.  Staff recommends and KRS has agreed to a fine of $750.

Mr. Olbrich moved to accept Conciliation Agreement 06-09.  Motion seconded by Mr. Robb. Motion carried.

Conciliation Agreement 06-10  D.R. Horton – Schuler Homes, LLC
D.R. Horton made one excess contribution of $1,300 to its noncandidate committee.  Excess contribution was found after a review of disclosure reports filed.  Staff recommends and D.R. Horton has agreed to a fine of $500. 

Mr. Weaver moved to accept Conciliation Agreement 06-10.  Motion seconded by Mr. Olbrich.  Motion carried.

Draft Advisory Opinion 06-09/Rescind Advisory Opinion 97-3, 97-3 Amended
Draft Advisory Opinion to be renumbered to 06-07.

Draft advisory opinion clarifies that if the partnership makes a contribution and the contribution is attributed to one partner, then that contribution will not be attributed to all the partners.  It also updates language in AO 97-03, which attributes a partnership’s contribution to all partners.

Commissioners felt this draft advisory opinion may be beyond the scope and guidance of the Commission and questioned whether it should be done by rulemaking.

Mr. Olbrich moved to defer pending further research.  Motion seconded by Mr. Gabrio.  Motion carried.

Modify Advisory Opinion 98-05
Advisory Opinion references HAR section 2-14.1-16(a)(5), which was amended to 2-14.1-16(a)(4) effective 1/25/02, and caps on gifts were amended.

Mr. Olbrich moved to accept AO 98-05 as modified.  Motion seconded by Mr. Gabrio.  Motion carried.

Modify Advisory Opinion 98-06
Act 203 amended HRS section 11-204(b), repealing the ability of companies and corporations to contribute unlimited funds from their treasury to their noncandidate committee.  Advisory opinion has been updated to reflect amendments.

Mr. Olbirch moved accept AO 98-06 as modified.  Motion seconded by Mr. Weaver.  Motion carried.

Communication to Commission:

• Development of Strategic Plan

In the process of developing a 5-year Strategic Plan and have hired Ms. Norma Wong to assist.  Currently building a list of internal and external customers and will work with Ms. Wong to develop a questionnaire for these customers.

Next Meeting:
Scheduled for Thursday, November 9, 2006

Mr. Olbrich moved to convene executive session to discuss personnel matters.  Motion seconded by Mr. Robb.  Motion carried.

Public session reconvened – No further business to discuss - Mr. Olbrich moved to adjourn meeting.  Motion seconded by Mr. Weaver.  Motion carried.

Meeting adjourned at 11:20 a.m.