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HomeMy WebLinkAboutCOM 0584.004 1998-2000 oM~V os N,~ O.' Stephen K. Yamashiro Richard Wurdeman Mayor Corporation Counsel s ~ or~M~ ~uun#~r n~ ~rzfiYttit OFFICE OF THE CORPOR$TION COUNSEL 101 Aupuni Street, Suite 325 • Hilo, Hawaii 96720-4262 • (808) 961.8251 • Faz (808) 961.8622 25 June 1998 RECEIVED Tlme--°-'------ . - - gy--- Dal "ty Cowl-~?;- J. Curtis Tyler, III, Member Hawaii County Council 25 Aupuni Street Hilo, Hawaii 96720 Dear Councilmember Tyler: In your letter of June 4, 1998, you asked for comment on your proposal for any ordinance relating to Campaign Contributions. This proposal is similar to the Bill (Bill 282), which was the subject of Opinion 96-04. In that opinion, I expressed the belief that an ordinance which would regulate campaign contributions or expenditures would be pre-empted by State Law. This opinion is supported by the recent decision in Friends of Arnold Moraado et al v. City and County of Honolulu et al. (CC 96-2844), decided on February 4, 1998. (Copy attached) A decision which cost the City $92,607.58 in Plaintiffs' attorneys fees and costs. I agree with the reasoning of this decision, and continue to believe that that portion of your proposal which would limit the acceptance of campaign contributions would be similarly struck down. On the other hand, as was discussed in Opinion 96-04, those portions which relate to restrictions on voting by Council members, while somewhat questionable could probably be sustained. Sincerely, i v RI WURDEMAN Corporation Counsel RDW:1890Lbre Attachment Comm. No. 5 ~ ~ ~ File No. N~~~M - Ref. To:. P I~ KsE. Pate .IAN 0 ~ 1.Op0! y ~ ~.cc _ _ _ _ _ ~~q ~ ?av ^9 NON-HEARING MOTIONS ~!A ~K~" FIRST CIRCUIT Snt `KEN SEC0.~1D DIVISION loR DATE: WEDNESDAY, APRIL 1, 1498 JiTDGE: IiONORAHLE KEVIN S.C. CHANG, JUDGE PRESIDING CLERIC REPORTER: VIDEOTAPE BAILIFF/LAW CLERK: L MORIKAWA ---------------------------------°------------------------------------PAGE i 0:00 CC 96-2844 FRIENDS OF ARNOLD MCRGADO ETAL DANIEL R FOLEY vs. coLLEEN x sax~RAI C&C HON ETAL FOR FRIENDS OF AR.^;01^ 1<0 WILLIAM C MCCORRIST~h MF12R J BENNETT KIMBERLY R MCCORKLE DEAN J MYAT1' FOR CITY AND COUNTY OF r. MARGERY S BRONSTER RDSSELL A SUZUKI LYNETTE M MATSUSHIMA FOR MARGERY S BRO^ISTcR PLTFS' MOTION FOR ATTOR_*7EYS' FEES AWARD IINDER CIVIL RIGHTS ATTORNEY'S FEES AWARDS ACT OF 1976 AND FOR COSTS INCCRRED (C. SAY,URAI) (FILED 3/9/98) Pnu~'~ 9N3U TS? ']3c~-~~~ ~ :u„ ZZ95 T964 n4 Sf~ TC~6u 56 tT 'r. NON-HE~tiL'?:G biCT-IONS c Ik,ST CIiiCUI S'ECO?:'D L'T_VIS.ON DATE: WEDNESDE.`_', ~1.°RIL 1998 JUDGE: HGNORP~LE tic.VIN S.C. C'-~?1IG, JUD:~E P2ESIDING CLERK: REFORTER: VIDEO^_'~'1_oE BASLIFF/LAW CLERK: L MORrAS~A --------------------------------------------~•-------------------------PAGE MINOTE ORDER: (0/1/93) AFTER CONSIDE`RI_'dG THE nTRTTTEN SUBMZSSTONS OF COUNSEL, :.-L'd COURT STATES 'I^3E FOLLOWING WITH R_F,GARD TO ?LASNTIFS' MO'T`ION FOR ATTOR.~IEYS' FEES AWA.RO UNDER CIVIL RIGHTS ATTORDTEYS' FEES AWARI]S ACT OF 1976 AND cOR COSTS INCURRED FILED ON MARCIi 9, 1998 ("MOTION FCR ATTORNEYS' FEES"). FIRST, PURSUAN"' TO THE COURT'S ORDER GRANTING THE MOTIONS FOR SUP~C~+ARY JLZGMENT FILED BY PLAIN- TIFFS AND DEFENDANT BRONSTER, AND THE ORDER DENY- ING THE CITY DEFENDANTS' MOTION FOR RECONSIDERA- TION, THE COURT FINDS TrTAT PLAZ_*1'"IFFS ARE THE PREVAILING PARTIES AND DEFENT)ANiS CITY AND COUNTY OF HONOLULU, ~-EREDfY rIARRIS P.ND PETER 8. CARLISLE A.RE THE LOSING PPRTIES. SECOND, ALTHOUG3 irLE COURT DID NOT DECIDE P1~7D RESOLVE ?LAINT_T?FS' SECTION 1943 CLP_IMS, TT3E COURT FINDS TF1iT PLAINT_FFS' SECTION 1993 CLAIMS hIEET THE "SUBSTANTIALI't"_~" :'EST BECAUSE TH£Y HAVE LEGAL AND FACTUAL BASIS AtiD ARE NOT "OBVIOUSLY FRIVO- LOUS." MAF.ER V. GAGNd, 448 U.S. 122 (2980) AND SC'URS.OCK V, CITY OF LYi7N HA'v'EN, 858 F.2D 1521 (11TH CIR. 1988)_ THIRD, THE COURT FINDS THAT PLAINTIFFS' PRE- EMPTION CLAIM ARISES FROM AND SHARES A "COMMON NUCLEUS OF OPERATIVE FACT(S)" WITH PLAINTIFFS' SECTION 1983 CLAIMS. ID. FOURTH, THE COURT FURTHER FINDS THAT PLAIN- TIFFS' SECTION 1983 CI1~lIMS WERE REASONABLY RELATED TO PL.ASNTZFFS' ULTIMATE SIICCESS ON THEIR PREEMPTION CLAIM IN THIS CIVIL ACTION. ID. BASED ON THE FORGOING, PURSIIANT TO 42 U.S.C. SEC. 1948, Thy COURT, ZN THE EXERCISE OF JUDICIAL DISCRETION, GRANTS THE MOTION FOR ATTORNEYS' FEES AND AWARDS PLAI.~]TIFFS THE FOLLOWING: (CLERIC'S MZNIITES CONTINUED ON PHASE A.) !00 pj H2I3'7J S19 "I3S\.L)~ d2i0J ZZ98T98808 SF3 TC~~0 88-ti-LU NON-HEARING MOTIONS FIRST CIRCUIT sECONn DIVISION DATE: WEDNESDAY, APRIL 1998 JUDGE: HONORABLE KEtiTN S.C. CHANG, JUDGE PRESIDING CLERK; REPORTER: VIDEOTAPE BAILIFF/LAW CLERK: PAGE o:oo CC 96-2844 FRIENDS OF ARNOLD MORGADO ETAL DANIEL R FOLEY VS. COLLEEN H SARURAI CSC HON ETAL FOR FRIENDS OF ARNOLD '~:0 WILLIAM C MCCORRiSTON MARK J HENNETT KIMBERLY R MCCORKLE DEA_*7 J MYATT FOR CITY AND COUNTY CF c MARGERY S HRONSTER RUSSELL A SUZUKI LYNETTE M MATSUSHIMA FOR MARGERY S BRONSTE": CLERK'S MINUTES CONTINUED (1) ATTORNEYS' cc^EES IN TFEr TOTAL AMOUNT OF $41,600.00; AND (2) COSTS IN T'rL~' TOTAL AMOUNT OF $1,007.58. TFT? AFORESAID AWARD OF ATTORNEYS' FEES OF $41,600.00 AND COSTS pF $1,007.56 ZS ZN FAVOR OF PLAIIv'TIFfiS AND AGASNST DEFENDANTS CITY AND COUNTY OF HONOLULU, JEREMY HARRIS, AND PETER B. CARLISLE. TSic COURT FINDS THAT THE AFORESAID ATTORNEYS' TEES AND COSTS ARE REASONABLE, PROPERLY SUPPORTED P.ND WERE NECESSARILY INCURRED IN THIS LITIGATION. COUIv'SEL DANIEL R. FOLEY, WILLIAM C. MCCORRISTON, RUSSELL A. SUZURI WERE PROVIDED WITH A COPY OF THIS MINUTE ORDER VIA THEIR RESPECTIVE COURT JACKETS. MR. FOLEY TO PREPARE THE ORDER. DATE : 6 / 1 / 9 8 SY ORDER OF THE COURT : ~"i'u^-"~/ CLERK snn~ )1831? ZI> 13c~;~~~_~ d8i-~~ «95T965n5 SF3 T1~6u 56 tT 5n 5 i ~i~sii;l i „L~= ~TA iE Or HC,'~l:.,, FILcC1 1998 FF_S ~ PM 3~ 14 ~,N::al'~~ c~ERx IN THE CIRCUIT CCCiRT OF THE FIRS: r_IRCJIT STA'_'E CF HAWAII FRIENDS OF ?RNOLD MORGADO, ) CIVIL NO. 96-2844-07 BERT T.KOHAYASHZ, JR., AND ) (Injunctions) ARNOLD MORGADO, JR., ) ) Plaintiffs, ) ORDER GRANTING MOTIONS FOR SUMMARY JUDGMENT AND DENYING VS. ) CROSS-MOTION FOR SUh4A.RY ) JUDCNx'NT CITY AND COUNTY OF HONOLULU, ) JEREMY HARRIS, in his offic_al) capacity as Mayor of the City ) and County of Honolulu, PETER ) B. CARLISLE, in his official ) capacity as the Prosecutor of ) the City and County of 1 Honolulu, and MARGEAY S. ) BRONSTER, in her official capacity as the Attorney General of the State of ) Hawaii, ) HEPRING: Date: January 20, 1998 Defendants. ) Tirae; 9:30 am Judge Kevin S.C. Chang ' ORDER GRANTING MOTIONS FOR SU}II~RY JUDGMENT AND DENYING CAOSS-MOTION FOR SUMMARY JUDGMENT Plaintiffs Fxiends of Arnold Morgado, Bert T. Kobayashi, Jr. and Arnold Morgado, Jr, filed a Motion for Su.~nmary Judgment on December 23, 1997. Defendant Margery S. Bronster filed a Motion for Summary Judgment on December 26, 1997. 800® H2l3'I~ .SIB f..- 'I3S\107 d2l0J ZZ98TA6808 SF3 TC~80 BIS~tT-!0 Defendants City and County of Honolulu, Jeremy Harris and Feter B. Carlisle filed a Cro,s-Motion for Summary Judgment on January 12, 1998. These three notions came on for hearing before Judge Kevin S.C. Chang on January 20, 199£3, orith Aaniel R. Foley appearing on behalf of P_airtiffs, Mark J. Bennett and Carrie K. Okinaga appearing on behalf of Defendants City and County, Harris and Carlisle, and Deputy Attorney Generals Russell A. Su2uki and Lynette Matsushima appearing on behalf of Defendant Bronster. After reviewing the file and considering the written submissions and the argur.er.ts o: counsel, the Court makes the following order. Plaintiffs allege that Revised Ordinances cf Hcnolulu ("ROH") 3-8.9(c) and (d) is unconstitutional because it is preempted by Hawaii Revised Statutes ("HRS") Chapter 11, and because it violates the rights of freedom of speech, association and due process under the Hawaii and United States Constitutions. See Complaint for Declaratory Relief filed July il, 1996. In Richardson v. City and County of Honolulu, 76 Haw. 46, 868 P.2d 1193, reconsideration denied, 76 Haw. 247, 871 P.2d 795 (1999), the Hawaii Supreme Court stated, in pertinent part, the following. [Aj municipal ordinance may be preempted pursuant to F'.F2S [sec] 46-1.5(13) ii (1) it covers the same subject matter embraced within a comprehensive state statutory scheme disclosing an express cr implied intent to be exclusive and 'u iform throughout the state oz (2) i*_ conflicts with state law. L nin 92I31~ SS.I -f- 79 SQL>> d8-i? oZ 95'596505 SFj TC~60 fib tI !0 Id. 76 Haw. at 62. HRS sec. 46-1.5, =r.trtled "C_;.~3ral pexers and limitation of the countias," arevidns at scbsection (13): (13) Each county shall have t"e power to enact ordinances deemEd necessary to protect health, ii_`e, a^.~! property, and to preserve the order and security of the county and its inhabitants on any subject cr mattez not inconsistent with, or tending to defeat, the intent of any state statute, provided also t:~at the ordinance does not disclose or express an implied inten*_ that the ordinance shall be exclusive or uniform througY:out the State. The provisions ofr.RS Chao. it apply to all elections, primary, special prinary, general, special general, special, or county, held in the State of Hawaii. HRS sec. 11-3. Part XII of HRS Chap. 11 regulates electior. expenses, and election campaign contributions and exeenditures. see HF.S secs. ?1-181 to 11-229. Specifically, :its sec. 11-191(7) defines campaign "contribution," and HRS sec. 11-204 establishes the maximum amount of contributions which a person or an entity can make ir. any election. BCH sec. 3-8.9(c) and (d) states, in pertinent part, the following. (c) A lobbyist shall not make a campaign contribution or render campaigr. assistance to any candidate for city office withing two years after receipt of a discretionary approval, whether legislative, administrative, or quasi-judicial, from the city. (d) A candidate for city office shall not accept a Campaign Contribution from a lobbyist wi*_hin two years after the lobbyist receives a discretionary approval, whether legislative, administrative, oz quasi-judicial 3 TTO QJ H2I3"IJ SS> 'I3S ~.lOI d2i0J ZZ99T98808 SFd TC~80 frB~tT~!0 from the city, The court initially finds, pursuant to HRS sec. 632-1, that an actual case or controversy exists and the case is justiciable based, in part, upon plaintiff Bert T. Kobayashi, Jr.'s declaration that he would like to participate in the 1998 City election by making a campaign contribution, but is prohibited from making such a contribution or rendering campaign assistance by ROH 3-8.0(c) and (d). See Affidavit of Bert T. Kobayashi, Jr. and Shadowens v. Hawaii Housing Authority, 53 Haw. 213, 491 P.2d 119 ('_971). The court finds that Part XII of HRS Chap. 11 constitutes a comprehensive state statutory scheme which discloses an express or imp_ied intent to be exclusive and uniform throughout the State of Hawaii. Richardson v. City 5 County, supra, 76 Haw. at 62, and Anamizu v. City 6 County, 52 Haw. 550, 980 P.2d 116 (1991). Part XII of HRS Chap. 11 specifically provides for er.°orcement and penalties for violations of the statutory scheme. HRS secs. 11-228 and 11"-229. fihe court finds and concludes that ROH 3-9,9(c) and (d) is preempted because it covers the same subject matter as I'.RS Chap. 11. ROH 3-8.9(c) and (d) deals with contributions to a candidate for election in the State o` Hawaii. Richardson v. C_ty b County, supra, 76 Haw. at 62. Next, the court finds that ROH 3-B.9(c) and (d) is ir. r lTo f~' KL13"7~ [l2 19C ~~'._i Teri-~ 'oZ95'T 98505 CFj TL'BU 56 tT1U conflict with HRS Chap, li because it prohibits contributions by a person that are pez:nitted ~.:nder ;fate la•~r. Significantly, H,RS sec. li-2G-; (a) allows aersons or other entities to mike contributions to a candidate or a candidate's committee, ad limits '.he aggregate of such contributions to 52,000.CO. The tern "person" is defined as being "an individual, par*_nership, committee, association, corporation, or labor union and its zuxiliary committees." HRS sec. 11-19i(18). Thus, RCH 3-8.9;c) and (d) conflicts with HRS Chap. 11 because the city ordinance prevents a "person" who can permissibly 'make cor.tribu*_ions to a candidate or a candidate's committee under FIRS Chap. 11 °rom ma'<ing such a contribution. The term "person" is broadly defined by HRS sec. 11-191(18;, r. "lobbyist" referred to in RCH 3-8.9(c) and (d) is a "person" as the term is used in HRS Secs. 11-191(18) and 11-209(a). Therefore, the court finds and concludes that RCH 3- 8.9(c) and (d) conflicts with and is preempted by kRS Chap. 11. Richardson v. Citv ~ County, su ra, 76 Eaw, at 62. Based on the foregoing, and viewing *_he evidence and inferences in the light most favorable to the parties being moved against, the court finds that there are no genuine issues of material fact and that Plaintiffs Friends of Arnold Morgado, Bert T. Kobayshi, Jr., and Arnold Morgado, Jr. and Defendant Margery S. Hrenster are entitled to summary judgment as a ma*_ter of law 5 CTO F~j H2I3'IJ SSJ "[3S ~1u~ d80J ZZ98T96808 l'F'd TC~80 96~~tTLO and the judicial declaration that ROH 3-8.9(c) and (d) is null and void because it is preempted by HRS Chapter 11. Since the court has determined that ROH 3-8.9(c) and (d) is preempted, it is not necessary for the court to address Plaintiffs' claims that the city ordinance is unconstitutiorai and/or violative of Plaintiffs' rights under the Hawaii and United States Constitutions. The Motion for Summary Judgment filed by Plaintiffs Friends of Arnold Morgado, Bert T. Kobayashi, Jr. and Arnold Morgado, Jr. on December 23, 1997, and the Motion for Suasnary Judgment filed by Defendant Margery S. Brenster or_ December 25, 1997 are granted. The Cross-Motion for S,ia:mary Judgment filed by Defendants City and County of Honolu_u, Jeremy Harzis and Peter B. Carlisle filed on January 12, '.998 is denied. IT IS SO ORDER:.D. DATED: Hcnolulu, Hawaii FEB 0 4 1990 L0. Cult ))ff C~ y L~L - 3T ~ E VIN S.C. CHANu °~NA 6 fi?n ~ gN37) LI"~ " - ~~c~-?-~ jHn~ 'c "v 95T96fi'05 SFj TC~6U 5'B YT .0 ~(Y 0/ ~~wI~~~ 'Y. Stephen K. Yamashiro Richard Wurdeman Major Caryoration Cau nul h o,'Ni. ~uunt~r of ~ttivttti OFFICE OF THE CORPORATION COUNSEL _ 101 Aupuni Streer, Suite 125 Hilo, Hawaii 96720.1262 (BOB) 961825) Fax (808) 961-E62 Z. - C~ ^i _ ~ _ C7 July 26, 1996 _ cn OPINION NO. 96-09 _ W - 'm c Honorable James Arakaki, Chair and Members of the Finance Committee Hawaii County Council 25 Aupuni Street Hilo, Hawaii 96720 SUBJECT: COMMENT ON BILL 282 (Camoaion Reform) Dear Chair Arakaki and Members: This memorandum is in response to the Committee's request for comment on Bill 282, relating to Campaign Reform. Bill 282 provides for varied restrictions on political activities by 'lobbyists' and ezempt officers and employees. Among other things, a "lobbyist' can not make a campaign contribution or render campaign assistance to any candidate for county office after receipt of a discretionary approval from the County. Further, a candidate for office may not accept a campaign contribution from a lobbyist within two years after such approval, nor may an elected official vote on any measure involving a person who has contributed more than 6100 in campaign contributions to that official. Ezempt employees and elected officials are also subject to numerous restrictions on soliciting campaign contributions from lobbyists. Violations of this bill, should it become an ordinance, would be a misdemeanor, punishable by a fine of x1000, and grounds for impeachment. II. CONSTITUTIONALITY.OF RESTRICTIONS ON CONTRIBUTIONS The association of political contributions with the First Amendment right of free association was firmly established in Bucklev v. Valeo, 424 U.S. 1, 46 L.Ed. 2d, 659, 96 S. Ct. 612 (1976). In that case, which was a broad based challenge to the c~a~. k~. !al$ 03 ~ii~ Y~. _ Inf. ~*o: FC- R.et. ihu~ AUG U James Arakaki and. ''embers July 26, 1996 Page 2 Federal Election Campaign Act, the Court held that interference with this right could only be sustained if the government could demonstrate a sufficiently important interest and employs a means closely drawn to avoid unnecessary abridgement of associational freedoms. The California Supreme Court was presented with the question of the Constitutionality of an initiative which contained provisions similar to this bill in Bair Political Practices commission v. Suoerior Court of Los Angeles County, 599 P. 2d 46 (Cal. 1979). That initiative made it unlawful for a 'lobbyist' to make or arrange any contribution to a candidate for state office. A 'lobbyist" was defined as anyone employed or contracted for economic consideration to communicate with State officials. Government employees and the media were ezempted from this definition. Applying the test set forth in Bucklev, the court found that this provision was not the type of closely drawn restriction which might pass constitutional muster, in that it applied to all lobbyists (even those who might have never dealt with the candidate), did not distinguish between large and small contributions, and provided an eztremely broad definition of the term lobbyist. ~,td at 53. The restrictions sought to be imposed by Bill 282 are arguably even less narrowly drawn than those in. the California initiative. Section 2(a) of the Bill prohibits any campaign contributions by "lobbyists' within two years after receiving any discretionary approvals from the County. Conceivably, a discretionary approval could be granted by, for ezample, the planning commission, yet contributions to a council candidate totally uninvolved with that approval would be barred. Secondly, Bill 282 in defining "lobbyists" limits the definition to those seeking approval of a permit, and ezempts community associations and coalitions. While eliminating the possibility of improper linkage between lobbying activities and political contributions may be a laudable objective, Bill 282 seems directed only at certain kinds of advocates, those supporting approvals and ezempts those opposing such approvals, thus making a clear value judgement as to the kinds of ezpression that are to be favored. While it might be within the bounds of political correctness to favor such interest groups as the Sierra Club or MADD, the First Amendment does not admit to such a distinction. Thus, it is our opinion, that Section 2(c) of Bill 282, when read in conjunction with the definitions found in Section 2(a) fails to meet constitutional standards. James Arakaki and `'embers July 26, 1996 Page 3 III. Restrictions on the Use of Camvaian Assistance from Lobbvists. Section 2(e) of Hill 282 would bar candidates from using or accepting campaign assistance from a lobbyist, within two years of that lobbyist having received a discretionary approval from the County. In Hucklev supra, the Court, found that restrictions on campaign expenditures were even more suspect than those on contributions. If this Hill was enacted, this provision would, among other things, impose a restriction on independent expenditures by lobbyists. The Supreme Court has not looked kindly upon such attempts to limit independent expenditures, striking down efforts to restrict political action committees Fed. Election Com'n v. Nat. Conserv. Pol. Action 470 U.S. 499, 105 S.CT. 1459, 84 L.Ed 2d. 539 (1986), and political parties. Colorado RP*±!ihliran FPf~PTal Camvaian Committee v. Ped. Election Com'n, U.S. , S. Ct. 1996 WL 345766 (1996). While a seemingly contrary result was reached as to corporations in Federal Election Com'n v. National Rivht to Work Committee 459 U.S. 197, 103 S. Ct. 552, 74 L. Ed. 2d. 364, (1982); this bill would directly affect individuals on the basis of their livelihood. "Livelihood is not a sufficient factor to warrant less than strict scrutiny to statutes burdening the First Amendment rights of individuals'. Harker v. state of Wis. ~:thics Bd. 841 F. Supp. 255 (W. D. Wia. 1993) (discussing a ban on lobbyist contributions). For these reasons, we believe that Section 2(e) of the Bill does not meet constitutional standards to the extent that it would prevent independent expenditures on behalf of candidates. IV: The Ovestion of State Law The County's authority to enact ordinances, as delegated to it by the Legislature, is limited to subject matters not inconsistent with, or tending to defeat, the intent of any State statute. HRS §46-1.5 (13). In HRS §191 to §229, the legislature has established a comprehensive scheme of regulation of campaign contributions and expenditures involving registration of candidates, reporting by candidates, restrictions against transfer, contribution limits, and voluntary expenditure limitations. The County may exercise only such powers as are delegated to it by the Legislature, and where the Legislature has clearly intended to preempt the field of regulation, ordinances attempting to regulate the same subject matters are invalid. HGEA v. County of Maui, 59 Haw. 65, (1978) In re Avv'n of Anamizu, 52 Haw. 550 (1971), James Arakaki and Members July 26, 1996 Page 4 Thus, in Citizens Utilities v. County of Kauai, 72 Haw 285 (1991), it was held that Kauai County did not have the authority to regulate the height of utility poles, despite the legislative delegation of both the zoning power to the height of structures, HRS §46-4, and the power to regulate the quality of all appliances necessary to the furnishing of light, power and telephonic service. HRS 46-1.5 (19)(S). Hotwithstandinq the seemingly compelling argument of Kauai, the Court found the county zoning authority pre-empted by a purported statewide interest in utility regulation. Similar results occurred in the striking down of County efforts to independently define which employees would be ezempt from Civil Service, HGEA v. Maui supra, and to establish licensing requirements for electicians, In re Anon of Anamizu supra. In view of these precedents, we believe that those provisions of Bill 282 which regulate campaign ezpenditures, and contributions, even should they survive the test of constitutionality, are preempted by State Law. V. Prohibi-ion on Voting on Issues Involving Camoaian Contributors. Section 2(q) of Hill 282 would prohibit a council member from voting on any issue involving applicants who had donated more than X100 to that member. Generally, the mere receipt of campaign contributions does not disqualify a member from voting on such issues. In Woodland x;11a RPa;APnMx Leann;.Finn. Inc. v. City Council of the City of Los Angeles, 609 P. 2d 1029 (Cal 1980), a group of residents brought an action claiming that those Council members who had received campaign contributions from an applicant for subdivision approval, should not have been permitted to vote on that approval on the grounds that such a vote violated a California statute requiring 'fair hearing`. In rejecting this challenge, the Court found a strong public policy in favor of the giving of campaign contributions, and noted that representative government would be thwarted if such classes of voters as architects and engineers were to be effectively barred from the political process. Ibid at 1033, and that a charge that the receipt of a campaign contribution invariably results in an appearance of bias or favoritism is not warranted. Notwithstanding this observation the question of when an elected official is properly disqualified and thus should not vote on an issue has been called a `subject of particular difficulty and inconsistency is application even within a single jurisdiction'. Libonati and Martinez, r.ocal Government Law § 11.10, Callaghan & Co, Deerfield I11 (1996). James Arakaki and Members July 26, 1996 Page 5 As a general principal, it is agreed upon that municipal officials are deemed fiduciaries of the public interest and must exercise judgment unfettered by any individual interest. LaRue v East Brunswick, 72 A2d. 691 (NS 1961). Such a finding of self interest need not be based on dishonesty, but when circumstances show a likelihood of temptation. Bracey v. Long Branch, 179 A. 2d 63 (N. J. Super.91, 1962). Daly v. Town P~ann~na & Zoning Commission of Fairfield, 191 A.2d 250 (1963). By Bill 282, the Council seeks to define the fuzzy threshhold beyond which a council member is deemed to serve two masters. The bill draws the line strictly, more tightly than the reported cases in this area seem to do. Further, the Bill would present practical problems. What mischief could be achieved by giving $101 to one's political opponent so as to neutralize that person in the debate over one's project? What would be the effect if all members were disqualified? it is a well accepted principle that when a body has a duty to act, and it is the only entity that can; the fact that all members have a personal interest does not disqualify them from doing their duty. Affordable Housing Alliance v. Feinstein, 224 Cal. Rptr. 537 (Cal. App. 1986); rnnaalvws v. City of Dairy Valley 71 Cal. Rptr. 255 (Cal. App. 1968). This "rule of necessity" permits essential government functions to continue, even where conflicts of interest ezist. Eldridge v._ Sierra_View Hoso. Dist. 273 Cal. Rptr. 654 (Cal. App. 1990). Could the application of such a rule nullify the good intent of Bill 282? Notwithstanding these concerns, it is our opinion that Section 2(g) of Bill 282, although harsh, is legally sustainable. VI. Penalty Clause The penalty provisions of Bill 282, Sections 2 (i) 2 (k), describe violations of the Bill to be misdemeanors and to be punishable by a fine of 51,000. Under State law, the Hawaii Penal Code, sentencing for all offenses is required to be in accordance with Chapter 706. HRS Section 706-640(4), provides that a fine of up to x2,000 may be assessed for a misdemeanor. Section 706-663 provides for a prison term of up to one year for persons convicted of misdemeanors. It is recommended, therefore, that should Bill 282 be enacted, the penalty section be amended, so as to be consistent with the Penal Code. Thus, if only a fine is to be provided, the offense should be classified as a "violation", Section 706-640(1) H.R.S. James Arakaki and 'embers July 26, 1996 Page 6 VII. Conclusion Ezcept for those portions of Bill 282 specifically discussed above, we see no legal objection to the bill. Although we question Section 2(b), which makes the coercion and solicitation portions of the Bill only applicable to ezempt officers or employees, we do not find this somewhat arbitrary classification to be constitutionally defective, despite the implication that such activity is to be condoned when conducted by civil service employees. While it is indeed naive to assume that civil service employees are above such political improprieties, we find no denial of equal protection of the laws in such a classification. We would recommend, however, that the rationale for such singling out of one group of employees, be stated in either the 'purpose" section or by committee report. Sincerely, D. WURDEMAN Corporation Counsel RW:1503L/bre