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The Honolulu Advertiser

Posted on: Wednesday, June 12, 2002

Lobbyist spending gets mixed results

By Johnny Brannon
Advertiser Staff Writer

Advocates for retirees, unionized public-school teachers, and oil companies spent the most money lobbying state lawmakers during the second half of the legislative session, according to records filed with the state Ethics Commission.

About 140 interest groups spent a total of nearly $700,000 to promote their agendas during the reporting period that covered March and April, but some that spent the most money had limited or no success gaining legislative support.

The AARP, which backed a long-term-care plan for seniors and a state-run prescription drug discount program, topped the latest lobbying list with $40,219 spent during the period.

Lawmakers approved a limited framework for a long-term-care plan and agreed to start building the Hawai'i Rx drug program, but pushed its implementation back to 2004.

The program, opposed by pharmaceutical companies, creates a purchasing pool to negotiate discounts on medications for more than 220,000 Hawai'i residents who have no prescription drug coverage.

The Hawai'i State Teachers Association, which represents the state's roughly 13,000 public-school teachers, reported the second-highest lobbying expenditure, $33,873, but didn't get what it wanted.

The union unsuccessfully sought to convince lawmakers to allow HSTA to continue operating a union-sponsored health insurance plan rather than have it folded into a larger program for all state employees.

The Western States Petroleum Association spent $28,814 lobbying during the reporting period but lost one of the year's biggest legislative battles, over the price of gasoline.

After the state grudgingly settled for $20 million a lawsuit that alleged illegal price-fixing by oil companies, frustrated lawmakers approved a price cap on wholesale and retail gasoline based on an index of West Coast prices.

The law — criticized by some as election-year posturing — does not take effect until mid-2004 and could be watered down or overturned by then.

Backers of a controversial plan to build casinos in Waikiki and at Ko Olina, who topped lobbyist spending during the session's first half, have yet to file an expenditure disclosure report for the most recent period.

Casino investors from Detroit, represented by a public relations firm called Marketing Resource Group, reported spending $108,679 on lobbying during the first half of the legislative session but have not filed an updated report.

A second group of casino-backers, the Coalition for Economic Diversity, reported spending $6,248 during the second half of the session, about the same as it spent during the first half. The group, funded by Sun International Hotels, hopes to build an upscale $1 billion resort and casino at Ko Olina.

Lawmakers quickly shot down gambling legalization proposals early in the session, rejecting proponents' arguments that casinos would reinvigorate an ailing tourism economy.

Other groups among the 10 that spent the most on lobbying during March and April included:

• The Honolulu Board of Water Supply, which spent $28,814
• Kaiser Foundation Health Plan, $19,365
• Ironworkers Stabilization Fund, $17,812
• Hawai'i Government Employees Association, $14,990
• Kamehameha Schools, $14,657
• Unity House Inc., $14,423
• Hawai'i Medical Association, $13,875.

Reach Johnny Brannon at jbrannon@honoluluadvertiser.com or 525-8070.