Minutes for October 9, 2003

Campaign Spending Commission Meeting
Leiopapa A Kamehameha Building, Room 204
October 9, 2003
3:00 p.m.

Members Present:
A. Duane Black, Mona Chock, Richard Choy

Staff Present:
Robert Watada, Tony Baldomero, Ellen Kojima

Call to Order:
Meeting convened at 3:00 p.m. with Chairman Black presiding.

Consideration of Minutes:
Ms. Chock moved to accept the minutes of September 11, 2003, Mr. Choy seconded. Motion carried.

New Business:
Conciliation Agreement 03-25 Michael P. Matsumoto
Mr. Michael Matsumoto, President of SSFM International, Inc., has agreed to and taken responsibility for payment of a fine of $303,000 for illegal contributions given during the period of 1996 - 2001. Investigation found that false name contributions totaling $428,800 were given to Harris, Cayetano, Apana, Fasi, Morgado, Hirono and several other candidate campaigns, which Mr. Matsumoto has admitted too.

False name contributions given to Harris, Cayetano and Apana campaigns were assessed a fine of $2,000 for each occurrence. Because of the many subpoenas issued and other investigative costs, the fine was more than the normal $1,000 for false name contributions. Mr. Matsumoto pleaded no contest to a felony money laundering charge. For other false name contributions a fine of $1,000 was assessed for each contribution. Contributions in excess of the contribution limits were assessed a $500 fine.

Ms. Chock moved to accept Conciliation Agreement 03-25, Mr. Choy seconded. Motion carried.

Conciliation Agreement 03-30 Edward Y.C. Chun
Mr. Edward Chun an attorney representing Food Pantry admitted to advising employees of Food Pantry to make campaign contributions and then have Food Pantry reimburse the employees. Mr. Chun has taken responsibility for the advice given and has agreed to a fine of $3,500.

Ms. Chock moved to accept Conciliation Agreement 03-30, Mr. Choy seconded. Motion carried.

Conciliation Agreement 03-31 Gary T. and Lori T. Okamoto
Mr. Gary Okamoto, President of Wilson Okamoto and Associates, has agreed to a fine of $44,500 for making false name contributions totaling $80,000 to the Morgado, Cayetano, Harris, Apana and Hirono campaigns.

Ms. Chock moved to accept Conciliation Agreement 03-31, Mr. Choy seconded. Motion carried.

Draft Advisory Opinion 03-04 Discount Ticket Sales to Candidate Committees
Question was asked as to whether the sale of a block of theatre tickets to a candidate, who in turn will sell them to supporters would require the vendor to file any reports. Draft advisory opinion clarifies that as a vendor Kamu Kahua Theatre is not required to report the sale of tickets to a candidate

Communication to Commission
Legislation
Primary issues for the upcoming session will be:

• A direct bar on unions and corporate contributions unless from a separate segregated fund;
• Bar government contractors from making contributions during a window period; and
• Requiring electronic filing for all candidates.

Next Meeting
Scheduled for Monday, November 10, 2003 at 3:00 p.m.

No further business to discuss, Chairman Black adjourned meeting.
Meeting adjourned at 3:20 p.m.