Gov. Linda Lingle's appointment of Bev Harbin to the state Legislature was not the first time her administration chose the self-styled small-business advocate for an important position.

In June 2003, Nelson Befitel, the director of the state Department of Labor and Industrial Relations, selected Harbin to fill a vacancy on the Hawai'i Prepaid Health Care Advisory Council. The council reviews whether health-insurance plans are in compliance with the landmark Hawai'i Prepaid Health Care Act, which requires companies to provide health insurance for employees who work more than 20 hours a week.

Harbin, whom Lingle has asked to resign for failing to disclose $125,000 in state tax debts and misdemeanor criminal convictions for writing bad checks, still serves on the five-member council.

"We wanted to put on someone that represented the voice of small business," said James Hardway, special assistant to Befitel, who added that Harbin was the small-business advocate for Chamber of Commerce of Hawai'i at the time and "seemed a natural fit."

Hardway said the appointment did not involve a background check since the position is advisory in nature. He said Harbin has been an active member of the council and has brought up issues related to small business.

The appointment of Harbin and a psychiatrist to the council were notable because they replaced representatives from Kaiser Permanente and the Hawaii Medical Service Association. Lingle had just signed into law a bill passed by the Legislature that barred employees of insurance companies from serving on the council.

Befitel said at the time that the law might lead other insurance companies to enter the healthcare market and increase competition and he encouraged the council to be flexible in reviewing innovative plans.

Some Democrats said yesterday that the council appointment suggests the administration should have known more about Harbin's background. Lingle has said she was surprised and disappointed that Harbin did not tell her about her tax and court problems.

"If you think about it, there is a vetting process there. There is a screening process there," House Majority Leader Marcus Oshiro, D-39th (Wahiawa), said of the council appointment. "It kind of opens up a can of worms."

Tom Brower, communications director of the Democratic Party of Hawai'i, said he believes that administration officials knew more about Harbin's past than they have admitted. "Yes, the Lingle administration's claim of ignorance is manufactured propaganda," he said.

Some Democrats had complained about a potential Harbin appointment to replace former Rep. Ken Hiraki in House District 28 (Iwilei, Downtown, Makiki) even before it was made because they did not consider her an authentic Democrat. Harbin ran unsuccessfully in the Republican primary for a Hawai'i Kai seat in the Legislature in 1980 and, more recently, has been critical of House Democratic leaders over small-business issues.

Harbin joined the Democratic Party in July after Hiraki announced his resignation to become governmental affairs director at Hawaiian Telecom.

Harbin could not be reached for comment yesterday but said in a previous interview that some Democrats disagree with her positions on small business while others are angry because Lingle did not pick one of their recommended candidates. "The sharks are out here now," she said.

Reach Derrick DePledge at ddepledge@honoluluadvertiser.com.