The developer-funded Land Use Research Foundation and its executive director, David Arakawa, have agreed to each pay a $2,000 fine to settle charges for failing to register as lobbyists with the state Ethics Commission.
State law requires any entity or individual who attempts to "influence legislative or administrative action or ballot issue" to register with the commission within five days of becoming a lobbyist, and then renew it each ensuing odd-numbered year. The law also requires lobbying expenditures and contributions to be filed at the end of each lobbying reporting period.
Arakawa lobbied on LURF’s behalf from 2008 to 2014 without registering either himself or the foundation, which is funded entirely by development firms, according to a report issued by the commission Monday. Additionally, neither Arakawa nor LURF filed lobbying expenditures and contribution reports during that period, the report said.
When questioned by commissioners, Arakawa said he misunderstood state law, which states that exemptions to the lobbyist law are made for those who possess "special skills and knowledge that may be helpful to the Legislature" and who are asked to help lawmakers.
Commissioners, however, said they do not believe the exemption applies when the individuals or entities also advocate for a position or try to influence action. The report pointed out that LURF, on its own website, describes itself as an advocate and lobbying group. Additionally, testimony provided by LURF before the Legislature "took advocacy positions and clearly attempted to influence legislative action," the report said.
Arakawa, a former Honolulu corporation counsel, appeared to have "genuinely misunderstood the law," met with and fully cooperated with commission staff upon being told of the delinquencies, and immediately registered as a lobbyist, the report said.
As a result, the report said, "the commission believed that it was fair and in the public interest to resolve its investigation in this matter" by having Arakawa and LURF each pay the state $2,000.
State Business Registration Division records show that one of LURF’s 11 vice presidents is Carleton Ching, Gov. David Ige’s nominee to be the state Land Board chairman and director of the Department of Land and Natural Resources. The nomination of Ching, a longtime Castle & Cooke executive and a registered lobbyist for the company, has been panned by critics who contend his background in the development industry makes him ill-suited to be the state’s chief land steward.
Arakawa, who declined to comment on the Ethics Commission action, said Ching has been a LURF vice president since at least 2006. Ching resigned from the organization Jan. 29, Arakawa said.
On the Net
» To see the full state Ethics Commission report, go to: bit.ly/HIEthicsROI15-1.
