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The Honolulu Advertiser
Posted on: Friday, September 29, 2006

Out-of-state donation limit confuses some

By Johnny Brannon
Advertiser Staff Writer

Some political candidates and others may have been confused by a new Hawai'i law that strictly limits campaign money from Mainland sources, but lawmakers who crafted the statute say their intent was clear.

The law — Act 203 of 2005 — was meant to restrict combined donations from Mainland sources to no more than 20 percent of the total that a candidate for state or county office receives in a single campaign reporting period, according to Rep. Blake Oshiro, D-33rd (Halawa, 'Aiea, Pearlridge), one of the proposal's original sponsors.

Others who voted for or against the measure, and Gov. Linda Lingle, said they understood it the same way — though some saw different underlying motives.

At least three politicians may have violated the law, but none has been sanctioned so far because investigations are pending, according to Campaign Spending Commission director Barbara Wong.

One candidate who received more than 20 percent of his donations from a combination of Mainland sources is Louis Erteschik, an attorney and neighborhood board member who ran unsuccessfully as a Democrat for House District 23 (Waikiki, Ala Moana, Kaka'ako).

Erteschik said he had believed the law meant that no single out-of-state donor could give more than 20 percent of the total he received.

Wong had initially interpreted the law the same way, but state Attorney General Mark Bennett later advised that the law capped combined Mainland donations.

Sen. Sam Slom, R-8th (Kahala, Hawai'i Kai), said it was clear to him that the law aimed to restrict combined donations, but voted against it mostly for other reasons. He said he believes Democrats pushed for the limits to prevent Lingle from raising Mainland money for her re-election campaign — and that the resulting law backfired.

Instead of choking off potential support for Lingle, a Republican, the law triggered a rush of donations before it took effect in January, thus giving Lingle a major head-start on the campaign season, said Slom, one of four Republican senators who opposed the measure.

Lingle's campaign had collected more than $5 million from Hawai'i and Mainland sources by January, and has collected $1 million more since then, according to reports filed with the campaign commission.

Lingle's Democratic opponent in the Nov. 7 general election, Randy Iwase, entered the race in January and has collected about $236,000 in total.

Oshiro said concern about Mainland support for Lingle had indeed been a factor in creating the donation limits, but that money from major industries was also at issue. He noted that the law applies evenly to all state and county candidates.

"We just thought there was a lot of potential outside influence, whether it has to do with land use and development, or oil, or prescription drugs," Oshi-ro said. "There are a lot of things that the Legislature has been doing that we feel was sort of on the forefront, and we don't want big industries out there trying to influence the way we decide policy here."

Lingle said she was concerned that Wong had briefly suspended enforcement of the limits before Saturday's primary election.

Wong said she did so because a June U.S. Supreme Court decision struck down a Vermont law that contained similar restrictions on out-of-state money, and it's unclear whether that affects Hawai'i. Bennett is researching that issue, and directed Wong to enforce the law in the meantime.

"I think it's important to always play by the rules and not change the rules in the middle of a campaign," said Lingle.

"When they interpret things, they need to do it before the campaign season starts," Lingle said of the campaign commission. "I know they have a lot of people down there wanting them to rule one way or another, but the Legislature's intent on this bill was crystal clear."

Slom agreed that the bill's intent was clear, but he characterized the resulting law's language as vague and sloppy. He said he believes the limit on out-of-state money violates the U.S. Constitution's guarantees of free speech — a position that federal courts have taken regarding similar restrictions in Oregon and Vermont.

Hawai'i's law has not been challenged in court, and the Supreme Court did not address all aspects of the Vermont law, which was regarded as the nation's strictest campaign finance statute.

Sen. Colleen Hanabusa, D-21st (Nanakuli, Makaha), said she believes the Hawai'i law is clear and constitutional, and agrees with Oshiro's interpretation of its intent.

Hanabusa, who chaired a committee that reconciled House and Senate versions of the bill and finalized its language, said it was not aimed primarily at Lingle or anyone else.

"I don't think it was aimed at any specific candidate," she said. "I think it was aimed at a concern that we didn't want to see more out-of-state contributions coming in and affecting the outcome of our elections, very similar to why people who aren't (U.S.) citizens can't give money," she said.

Staff writer Derrick DePledge contributed to this report.

Reach Johnny Brannon at jbrannon@honoluluadvertiser.com.