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The Honolulu Advertiser
Posted on: Tuesday, October 30, 2007

Chamber reprimanded for effort to boost Case

By Derrick DePledge
Advertiser Government Writer

The Federal Election Commission has admonished the U.S. Chamber of Commerce for using corporate money on automated telephone calls last year to help former U.S. Rep. Ed Case in the U.S. Senate primary against U.S. Sen. Daniel Akaka, D-Hawai'i.

The chamber, which had endorsed Case, paid a telemarketing firm about $2,500 to make nearly 55,000 calls directing voters to a chamber Web site that favorably compared Case to Akaka on economic and small-business issues. Akaka defeated Case in the September primary and won re-election last November.

The FEC ruled this month that the chamber violated federal election law by using corporate money to advocate for Case and for failing to include language in the messages listing the chamber's street address, telephone number or Web address, or stating that the calls were not authorized by Case.

The FEC found no reason to believe the Case campaign violated the law.

The Chamber of Commerce of Hawai'i was not involved with the calls and did not make an endorsement in the primary.

The FEC chose not to take further action beyond admonishing the U.S. Chamber of Commerce because of the relatively small amount of corporate money involved. The chamber had said last year that all of its advocacy efforts were in compliance with federal law.

"The chamber cooperated fully with the FEC and, as the FEC noted, we support their findings that the case was de minimus," said Eric Wohlschlegel, the chamber's executive director of communications.

Corporations can spend unlimited amounts of money on issue advocacy, including comparisons of federal candidates, but are prohibited from using corporate money on express advocacy that urges the election or defeat of federal candidates. The FEC has described express advocacy as language that a reasonable person would interpret as helping candidates.

The chamber's calls for Case described his two decades of experience in the public and private sectors and his support for tax relief and small-business health plans. The calls then directed voters to a Web site that had side-by-side comparisons of Case and Akaka that were favorable to Case.

Barry Sullivan and Jim Bickerton, the attorneys who filed the FEC complaint, said the chamber clearly used corporate money to help Case. "If you have folks like the U.S. Chamber or Ford or Microsoft making direct contributions, then it certainly has the potential of completely changing the character of the political environment," Sullivan said.

Reach Derrick DePledge at ddepledge@honoluluadvertiser.com.