Posted on: Friday, February 15, 2002

State campaign finance reform diluted

By Lynda Arakawa
Advertiser Capitol Bureau

Three Senate committees yesterday approved a diluted version of a campaign finance reform bill, removing a provision that would ban political contributions from government contractors.

Campaign spending reform advocates say the deleted provision would at least reduce the appearance that donating money to candidates is linked to winning government contracts.

"It's a real problem in our community, contractors or people who are in line to get a government contracts feeling like they have to make contributions," said Campaign Spending Commission executive director Bob Watada. "If you get a contract, you're getting public monies, then you don't want to be giving contributions because there is that appearance at least of a quid pro quo."

The Senate Judiciary Committee, the Transportation, Military Affairs and Government Operations Committee and the Tourism and Intergovernmental Affairs Committee passed a bill that would ban corporations and unions from contributing directly to a campaign but allow contributions through a political action committee.

But the committees deleted language in the bill that would prohibit government contractors from making political contributions.

Last year the three Senate committees stalled a similar bill, while the House approved the legislation. The House Judiciary and Hawaiian Affairs Committee this year has approved a bill to ban political contributions from corporations, unions and government contractors. Such restriction are in line with federal law.

The campaign finance reform discussion comes at a time when Honolulu Mayor Jeremy Harris' campaign contributions are under criminal investigation.

Watada has said company executives would applaud a ban on contributions from government contractors and that one executive told him "giving a contribution does not guarantee a contract, but not giving a contribution guarantees not getting a contract."

But Daniel Chun, a representative of the American Institute of Architects, opposed the ban, saying architects don't know if and when they'll bid on a government contract, so won't know when they must stop making contributions.

The proposed ban "is a serious infringement on the constitutional rights of government contractors and their families," he said. "The ever-tightening limits of the past have only served to drive contributions underground as evidenced by recent fines levied."

Senate Judiciary Committee Chairman Brian Kanno, D-20th ('Ewa Beach, Makakilo, Kapolei), said the amended bill will bring substantial changes and that restricting contributions is not the intent of campaign finance reform.

"I think the idea about reform is providing public disclosure, transparent contribution giving, accountability and greater accountability in the system using the political action committees," he said.

"Our laws are really based on a transparent system based on public reporting. ... There are some concerns about the constitutionality about limiting contributions, so I think the focus then is on reporting being made to the public."

Kanno said the move to remove the ban on government contractor contributions is not self-serving because members of the legislative branch are not involved in the awarding of government contracts and thus would not have been affected.

The Associated Press contributed to this report. You can reach Lynda Arakawa at larakawa@honoluluadvertiser.com or 525-8070.