Kate Stanley’s selection to lead the Abercrombie administration’s legislative efforts during the next legislative session does not run afoul of a recent ethics ruling limiting lobbying by task force or commission members.
Stanley’s appointed as “senior advisor” to lead the administration’s lobbying team was announced early this month. Stanley also serves as chair of the Legislative Federal Economic Stimulus Program Oversight Commission, which happens to have a meeting scheduled this morning at the Capitol.
Earlier this year, Les Kondo, executive director of the State Ethics Commission, raised hackles at the Capitol by advising members of the Mortgage Foreclosure Task Force that being paid to lobby on foreclosure matters would violate state law.
The ethics warning was sent to member of the legislatively-created task force by commission director Les Kondo in a May 26, 2011 letter.
Kondo advised:
The State Ethics Code prohibits a member of the Task Force from being compensated to represent non-governmental organizations, such as businesses, both for-profit and not for-profit, trade organizations, or other groups, on matters in which the Task Force participated or will participate.
Many task force members, appointed precisely because of their insider knowledge of foreclosure issues, are professional lobbyists or represent their organizations on legislative matters. Luckily, Kondo’s letter came after the legislative session was over. However, it obviously drew considerable concern and many questions.
Before moving ahead with Stanley’s selection as “senior advisor” to the administration, the governor’s office asked Attorney General David Louie whether she would face a similar conflict as a lobbyist for the administration.
Louie responded with a July 26, 2011 letter opinion by First Deputy AG Russell Suzuki which concludes the Ethics Commission’s advice to the Mortgage Foreclosure Task Force members does not apply to Stanley’s situation.
The opinion, addressed to Abercrombie Chief of Staff Amy Asselbaye, makes no reference to the conflict of interest provisions of the ethics code cited by the ethics commission. Instead it relies on a different part of the law pertaining to “outside employment or dual public office.”
Section 78-4 HRS provides, in part:
§78-4 Boards and commissions; service limited. (a) Any other provision of law to the contrary notwithstanding, no person shall be allowed to serve on more than one state board or commission expressly created by a state statute or the state constitution.
(b) Any prohibition in any law against the holding of outside employment or dual public office, employment, or position by an employee shall not bar the appointment of an employee to membership on a board or commission unless service on the board or commission would be inconsistent or incompatible with or would tend to interfere with the duties and responsibilities of the other office, employment, or position held by the employee. [emphasis added]
According to Suzuki’s letter:
We do not find any inconsistency or conflict between what Ms. Stanley is required to do as a member of the Commission and what her duties would be with the Office of the Governor as an advisor and consultant on legislative matters. The positions are independent of each other and we do not discern any obvious inconsistencies in the two positions.
Suzuki advises only that Stanley disclose her position as commission chair if called to testify on legislation related to the commission’s activities.
Stanley’s appointment to the key lobbying post was announced the week after Suzuki’s opinion was provided.
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Ms. Stanley announced at the meeting that she had scheduled a meeting with the Speaker to see if he wanted to retain her or appoint someone else once she begins work with the administration. Since the Governor already has an appointed representative on the commission, the Speaker might want to appoint a replacement for Stanley to preserve the balance between the branches of government making appointments. Then again, the commission completes its work in December so, as a practical matter, it doesn’t make a whole lot of sense to replace the chair with 2+ years down and only a few months to go.
Still, it’s curious that she (or the Governor) obtained an AG opinion before the meeting with the Speaker. If the Speaker wants to appoint a new member, the legal/ethical questions are moot. Maybe she wanted to make it possible for the Speaker to retain her with not only a place to hide from the legal/ethical questions (i.e., the AG opinion) but to do so in a way that says to Les Kondo “I’m not replacing her. What are you gonna do about it?” Perhaps that will set up a challenge to the Ethics Commission’s director’s reading of the statutes in the same manner that the Governor’s refusal to disclose the list of judicial candidates has prompted the Star-Advertiser’s suit.
We shall see.