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HomeMy WebLinkAbout 06/10/2015 Committee of the Whole minutes MINUTES COMMITTEE OF THE WHOLE June 10, 2015 A meeting of the Committee of the Whole of the County of Kauai, State of Hawaii, was called to order by Mel Rapozo, Chair, at the Council Chambers, 4396 Rice Street, Suite 201, Lihu`e, Kauai, on Wednesday, June 10, 2015, at 8:48 a.m., after which the following members answered the call of the roll: Honorable Mason K. Chock Honorable Gary L. Hooser Honorable Arryl Kaneshiro Honorable KipuKai Kuali`i Honorable JoAnn A. Yukimura Honorable Mel Rapozo Excused: Honorable Ross Kagawa The Committee proceeded on its agenda item, as shown in the following Committee Report, which is incorporated herein by reference: CR-COW 2015-06: on Bill No. 2588 A BILL FOR AN ORDINANCE APPROVING A COLLECTIVE BARGAINING AGREEMENT FOR BARGAINING UNITS 2, 3, AND 4 BETWEEN JULY 1, 2015 AND JUNE 30, 2017 [Approved as Amended.] The Committee proceeded on its agenda item, as follows: Resolution No. 2015-44, Draft 1 RESOLUTION URGING HAWAII'S CONGRESSIONAL DELEGATION TO ADDRESS EXCESSIVE CAMPAIGN SPENDING BY PROPOSING AND PASSING AMENDMENTS CLARIFYING THAT CORPORATIONS ARE NOT PEOPLE WITH CONSTITUTIONAL RIGHTS, IN PARTICULAR ELECTORAL RIGHTS, AND THAT UNLIMITED CAMPAIGN SPENDING IS NOT FREE SPEECH (This item was Deferred.) Councilmember Kuali`i moved for approval of Resolution No. 2015-44, Draft 1, seconded by Councilmember Yukimura. Council Chair Rapozo: Any discussion? Councilmember Kuali`i. COW COMMITTEE MEETING 2 JUNE 10, 2015 Councilmember Kuali`i: For starters Chair, I would like to read the Resolution into the record. BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF KAUAI, STATE OF HAWAII: WHEREAS, the United States Constitution is intended to protect the rights of individual human beings ("natural persons"); and WHEREAS, corporations are not mentioned in the Constitution, and the people of the United States ("The People") have never granted constitutional rights to corporations, nor decreed that corporations have authority that exceeds the authority of The People; and WHEREAS, corporations can and do make important contributions to our society using advantages that government has wisely granted them, but corporations should not be considered natural persons; and WHEREAS, in a 1938 opinion, United States Supreme Court Justice Hugo Black stated, "I do not believe the word `person' in the Fourteenth Amendment includes corporations"; and WHEREAS, the United States Supreme Court, in Austin v. Michigan Chamber of Commerce (1990), recognized as a threat to a republican form of government "the corrosive and distorting effects of immense aggregations of wealth that are accumulated with the help of the corporate form and that have little or no correlation to the public's support for the corporation's political ideas"; and WHEREAS, the United States Supreme Court in Citizens United v. Federal Election Commission (2010) ("Citizens United") reversed the decision in Austin by rolling back legal limits on corporate spending in the electoral process and allowing unlimited corporate spending to sway votes and influence elections, candidate selection, and policy decisions; and WHEREAS, the majority decision in Citizens United was recognized as a serious threat to self-government by the four dissenting justices. Corporations have special advantages not enjoyed by natural persons, such as limited liability, perpetual life, and favorable treatment of the accumulation and distribution of assets. These advantages allow them to amass and spend prodigious sums on campaign messages that often have far greater reach and influence than messages from individuals; and WHEREAS, most corporations put profits for shareholders ahead of the greatest good of society while individuals as natural persons have more freedom to balance self-interest and the broader public interest (or to see that their self-interest is intertwined with the broader public interest) when making political decisions; and WHEREAS, corporations have used the power and rights bestowed upon them by the courts to overturn democratically enacted laws that were passed at municipal, state, and federal levels to curb corporate abuse, thereby impairing local governments' ability to protect their citizens against corporate harm to the environment, to health, to workers, to independent businesses, and to local and regional economies; and COW COMMITTEE MEETING 3 JUNE 10, 2015 WHEREAS, the United States Supreme Court rightly held in Buckley v. Valeo (1976) that the appearance of corruption justified limits on contributions to candidates, but it wrongly ruled that spending money to influence elections is a form of constitutionally protected free speech, thus giving rise to the "money as speech" doctrine; and WHEREAS, federal courts in Buckley and in SpeechNow.org v. FEC (2010) overturned limits on independent expenditures because the "corruption or perception of corruption" rationale was only applicable to direct contributions to candidates; and WHEREAS, the United States Supreme Court in 1st National Bank of Boston v. Bellotti (1978) and Citizens Against Rent Control v. City of Berkeley (1986) unbelievably rejected limits on contributions to ballot measure campaigns because the contributions pose no threat of candidate corruption; and WHEREAS, United States Supreme Court Justice Stevens observed in Nixon v. Shrink Missouri Government PAC (2000) that "money is property, it is not speech"; and WHEREAS, a February 2010 Washington Post-ABC News poll found that eighty percent (80%) of Americans oppose the U.S. Supreme Court Citizens United ruling; and WHEREAS, Article V of the United States Constitution allows The People of the various states to amend the U.S. Constitution to correct those egregiously wrong decisions of the United States Supreme Court that challenge our democratic principles and the republican form of self-government; now, therefore, BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF KAUAI, STATE OF HAWAII, that corporations should not be endowed with the same constitutional rights as natural persons and because money is not speech, limits on political spending should be allowed to protect First Amendment rights and ensure a "fair playing field" in the arena of politics and public decision-making. BE IT FURTHER RESOLVED, that the Council of the County of Kaua`i supports amending the United States Constitution to achieve campaign finance equity reform by ending the false doctrine of"corporate constitutional rights" in the arena of elections and voting, and by clarifying that money is property, not speech; and by allowing limits on campaign contributions and spending. BE IT FURTHER RESOLVED, that the Council supports efforts by citizen groups to amend the United States Constitution toward these ends. BE IT FINALLY RESOLVED, that copies of this Resolution be transmitted to United States Senator Brian Schatz, United States Senator Mazie Hirono, United States Representative Mark Takai, United States Representative Tulsi Gabbard, Mayor Bernard P. Carvalho, Jr., Governor David Y. Ige, State Senate President Ronald D. Kouchi, and Speaker of the State House of Representatives Joe Souki. Council Chair Rapozo: Thank you, Councilmember Kuali`i. COW COMMITTEE MEETING 4 JUNE 10, 2015 Councilmember Yukimura: Thank you, as the co-introducer of this Resolution, I want to thank Sandra Herndon and other citizens who brought this issue to us and thank our staff person Aida Okasaki, who did great research on this, calling our congressional offices, and providing background research. Peter Morimoto also helped with some of that. This is a very important Resolution and issue and I would like to say it is as important as the Constitutional Amendment that gave women the right to vote. It is going to take that very long past to reach achieving our goal, but it is well worth it and very, very important in order to make our democracy work. Council Chair Rapozo: Anyone else? Councilmember Kaneshiro. Councilmember Kaneshiro: I just want to say that I support this one hundred percent (100%), the intent of it, you know? There should be limits on corporate contributions, but I have a problem supporting the Resolution as it is written, based on the generalizations in it and some of the statements. When I read the part of the Resolution that states, "Whereas February 2010 Washington Post ABC news poll found that eighty percent (80%) of Americans opposed the U.S. Supreme Court Citizens United ruling," it sounds like eighty percent (80%) of Americans voted to oppose it. But when I read the actual article they only polled one thousand four (1,004) adults. For me, if we just kept the Resolution simple and to the point, I could support it one hundred percent (100%). But when we start putting in information, like this, it kind of makes me sway away from it. I just want it to be to the point and correct. I think everybody knows what the intent of it is and everybody would agree to it and we do not necessarily need information like this in it. Another one is "most corporations put profits for shareholders above the greatest good for society." It is a big statement and I do not think it needs to be in there. I would support it without this information in it and I looked up, the House of Representatives floated a resolution in 2010 and it was very simple and very to the point. If we do resolutions just keep it straight and to the point. We could even follow the resolution that the House did. They just laid it out very quickly, very simply. Just based on that reason alone, I was thinking should I try to amend it or do it, but in reality, I am only one vote and I realize it is going to pass and I want it to pass. I agree with the intent, but just the way it is written is what I do not really agree with. So I will not be supporting it at this time. Council Chair Rapozo: Thank you. Anybody else wishing to testify, comment? Councilmember Chock. Councilmember Chock: I would speak to support the Resolution in its entirety and the message that I think it represents. While I do agree with Councilmember Kaneshiro, that I think it would probably be stronger for me if it did not include some of those generalizations, it would be better for me. But, because of the intent, I will be supporting it. It is amazing how we have actually come to this place to have this discussion, and so from that standpoint, I think it is a no-brainer. I would agree in terms of resolutions, I noticed that when we do get to the writing of it and I am guilty of it too, we like to go further in getting people to understand sort of our point of view in what the message is. I can respect that, because we are passion about it. It is not so bad with this Resolution, because it does not really have a whole lot of power behind it. I agree with the message in its entirety and I would like to thank Councilmember Kuali`i for bringing it forward. Council Chair Rapozo: Thank you. COW COMMITTEE MEETING 5 JUNE 10, 2015 Councilmember Kuali`i: Just in response. With any resolution, you can have a lot of whereas statements or you can have less. If those are the only two whereas statements that would prevent us from getting a unanimous vote, I would be happy to remove them. I think the most important thing about this Resolution is that there is a national movement to change the current situation which is harming the average citizen and our ability to participate in the political process. The two primary components, and if you go to the website "Move to Amend" which is one of the groups that is working on this...and it is called wethepeopleamendment.org, the two primary points of this is that money is not speech and that corporations are not people. They are not natural persons with full rights of the Constitution. If those are the two principles and we all agree on that unanimously, what shows up in these whereas statements are not as important to me, and I would happily move to take them out, the two that were mentioned. Council Chair Rapozo: Councilmember Yukimura. Councilmember Yukimura: I really appreciate this discussion, and I am glad that we moved this into Committee so we could have the discussion and also the additional testimony and education. As the co-sponsor of this Resolution, I am open to amendments that will make it more accurate and, in fact, I have just edited the piece that Councilmember Kaneshiro has pointed out, so that we could make it read, "Whereas in a February 2010 Washington Post ABC News poll, eighty percent (80%) of those polled opposed the United States Supreme Court Citizens United ruling," which I believe would then make it accurate. As for the whereas clause that most corporations put profits for shareholders ahead of the greatest good, I edited this Resolution prior to introduction. I think it said, the draft that we started with said, "Corporations put profits before shareholders." Now they have a public good law that allows corporations to not just do things that are good for the shareholder, but are also good for society. I forget what it is called, but I believe we even have that option in Hawai`i now. Corporations can choose to be that kind of corporation, which comes out of the sustainability movement that recognizes that we all have to be concerned not just about the bottom line for corporations, but the bottom line for society, which is the environment. And so this is actually accurate, because most corporations are structured so the board of directors would violate their fiduciary duty if they did things for the sake of public good or for the environment and it did not increase their profits. That is their legal constraint, and requirement. So actually, until recently, it was true that all corporations would put profits before shareholders. But, now with this new form of corporation that is allowed, it is most corporations that put profits for shareholders ahead of public good. Council Chair Rapozo: Councilmember Hooser. Councilmember Hooser: I will be supporting this and feel it does not go far enough in calling out corporate abuse in many sectors of our society. If you look at the control of industry and governments, you will find corporate influence is deep in all sectors. And often times these corporations are not even owned by the people in their communities, or the country. And yet, they are spending enormous amounts of money to influence politics, to influence food systems, pharmaceuticals, insurance, you name it. The corporate influence is really great. I think it does not go far enough. It is true what Councilmember Yukimura said that the vast majority of corporations are charter-mandated to put profits first and mentioned another kind of corporation and I am happy to say that I sponsored a bill that passed into law in the Legislature, establishing what they call B-Corps or benefit COW COMMITTEE MEETING 6 JUNE 10, 2015 corporations, which allow corporations to select that form of structure, but it is a very small minority who do that. If people look at the history of corporations, they will say see that corporations were formed initially as public interest, charitable kind of organizations and they were not for-profit entities, they were for public things, not for-profit, and not for private. Initially, they had limited terms and initially they could not give money to campaigns. And over time, corporations have increased their power. So now they will outlive all of us, and they cannot be executed in Texas, as was mentioned at a prior...they can commit crimes, but they cannot be punished to the same degree as individuals can. And so I think this is the "6,000-pound gorilla in the room" of our society from a global stance. The more I am involved with government and politics, the more I come to that realization. I think it is a good step and I applaud Councilmember Yukimura and Councilmember Kualii for putting it forward. Thank you. Council Chair Rapozo: Thank you. Councilmember Kaneshiro. Councilmember Kaneshiro: I mean, again, it is just my opinion. I do think it is a very general statement to say "most corporations put profits for shareholders ahead of the greatest good for society." I would be comfortable taking it out. You take out the poll...I would vote for it. But just, I mean, I do not know. We can argue...I am sure there are corporations that put profit ahead of shareholders sometimes, but I am sure there are some that do not. For me, that is where the gray line is. I am not that comfortable with a broad statement like that. If they want to put profits ahead of the greatest good of society, why do they do anything? I would dump all the produce in the stream and do things that...that would not be good for society. I think for the most part they do and that is my opinion. Others may have other opinions. That is why I am just not that comfortable with that generalized statement. Going back to the poll, to say eighty percent (80%) of Americans oppose the U.S. Supreme Court Citizens United ruling. I do not think it is as strong once you know they only polled one thousand (1,000) people. Again, I would support this thing, if we just kept it simple. I would support it one hundred percent (100%). The main thing on this is that corporate contributions should be limited. Right now it is unlimited, and it does not have anything to do with our County of Kauai government, or State. It is for the Federal government. For me, there should be limits. There are limits on us here, that people contribute. I do whole-heartedly agree with that, but when we put in these generalized statement it is really hard for me to support it. Again, I am only one vote and that is my own opinion. You know, other Councilmembers may have the opinion that these are one hundred percent (100%) correct. But I am just saying that if that was in there and the other one is in there, I am not that comfortable voting on it. If it was out, I would vote for it. Council Chair Rapozo: Councilmember Hooser. Councilmember Hooser: Just real briefly. I think the poll question, if that is an issue, I certainly do not have a problem with this. I think the legal obligation of corporations is to generate profits. And if they generate less profits that they are able to, because they do some special environmental protections or they pay more...say a corporation pays more than market and earns less profits, their shareholders can sue them. That is the reality of the environment, the legal structure in which they work. I do not think anyone is saying that the people in charge do not care about the community and they certainly want to be following the laws, and so they will be following the laws that are in place. If they sacrifice profit COW COMMITTEE MEETING 7 JUNE 10, 2015 to do more than that, then they are legally liable. That is really the fundamental nexus of that statement. Thank you. Council Chair Rapozo: Councilmember Yukimura. Councilmember Yukimura: Yes. I also want to point out and that is true, I think in that paragraph that concerns Councilmember Kaneshiro about corporations, it actually states a fact. It is a legal obligation of corporations. Unless they are registered under this other new form of corporations. But I wanted to point out that the third whereas in the Resolution does acknowledge that corporations can and do make important contributions to our society. And that sometimes the making of profits is a good thing for society. We are not saying that it is always bad, but we are just saying that sometimes making profits conflicts with the general good of the community. I also want to say that the resolution before Congress or introduced in Congress a congressional resolution that is initiating the process of a Constitutional Amendment is very different than a resolution that we are doing here. Because this Resolution is taking a stand of this County Council on the issue. The resolution in Congress is initiating a Constitutional Amendment. And so I believe...I love the simplicity of those Congressional Amendments. They are basically...they have to keep it simple is what I understand. Because it is going to be the vehicle that is approved by three-quarters of the Legislatures in the country, because that is the process required. So they have to keep it simple. On the other hand, we are just taking a stand. It is not a mandatory, binding stand, but persuasive stand that expresses the intent and position of the Kaua`i County Council. The idea is that county councils around the country would take a stand to establish a momentum for this Constitutional Amendment, which is going to take a huge wave of support and intention by the people of the United States in order for this Constitutional Amendment to pass. Council Chair Rapozo: Let me just say and we are going to take public testimony. I would suggest that rather than introducing amendments from the proponents, we will let Councilmember Kaneshiro propose the amendments that he is satisfied with. Because no sense you introduce an amendment that he does not support. Because we are going to go through this all day long. This is a resolution. It would be great to get unanimous support, but we may not. No sense trying to convince him and take a recess...no, let us have him create the amendments that would be necessary, if he even wants to, for his support, and then we can move on. I do want to get to public testimony as well. Councilmember Kuali`i: I just wanted to say that I heard his comments, and he said that he was not interested in making an amendment. That is why I offered as the initiator to make that amendment to have unanimous support. I have that amendment being worked on, which would move out the two whereas statements and wanted to show what we have from the House resolution and the two primary points. I am going try to read it if that is okay. This is from the proposed 28th Amendment to the Constitution. House Joint Resolution 48 that was introduced on April 29, 2014. The two primary sections: Section 1 deals with artificial entities such as corporations do not have constitutional rights. So the rights protected by the Constitution of the United States are the rights of natural persons only. Artificial entities established by the laws of any state, the United States, or any foreign state shall have no rights under this Constitution and are subject to regulations by the people, through Federal, State, or local law. The privileges of artificial entities shall be determined by the people through Federal, State, or local law, and shall not be construed to be inherent or inalienable. In COW COMMITTEE MEETING 8 JUNE 10, 2015 Section 2, money is not free speech. Federal, State, and local governments shall regulate, limit, or prohibit contributions and expenditures including a candidate's own contributions and expenditures to ensure that all citizens regardless of their economic status have access to the political process and that no person gains as a result of their money, substantially more access or ability to influence in any way, the election of any candidate for public office or any ballot measure. That is the simple meat of it and that is what we are trying to get to. So without those two whereas statements, I think the Resolution basically says that we support the national movement to...end money is speech and to end corporations are natural beings with inalienable rights. Council Chair Rapozo: Thank you. That is being worked on right now? With that, is there anyone in the audience wishing to testify? I will suspend the rules. There being no objections, the rules were suspended. SANDRA HERNDON: Sandra Herndon, for the record. Aloha Chair Rapozo and Councilmembers. I am so grateful that you have brought this forward. Big, big mahalo to Councilmembers Kuali`i and Yukimura for all the work on this. I have been listening to your comments, and I am just kind of going off of what I had prepared. I wanted to address what Councilmember Kaneshiro said about the eighty percent (80%). That is a striking number, and I have to say that eighty percent (80%) of the people who know about this are opposed to it. There are so many people that do not even realize that this is one of the biggest things that is running our country. I was appalled when I would talk to people and ask them to sign this resolution and clearly, this is not ten percent (10%) of the island's people. But what it signifies is that people are not aware, and it is for us, the ones who do understand, that this is huge flaw in our democracy, to allow this type of contributions and influence to affect our government. The thing that really concerns me the most about the way the government is being run at that time in general, is that it really impacts home rule. And contrary to what Councilmember Kaneshiro has said about it not affecting our County, it does. I see the yellow light. Council Chair Rapozo: You have thirty (30) seconds. Ms. Herndon: Thank you. So it does. It affects the air we breathe. It affects the water that we drink. It affects the very land that we grow our food on. And as you all know, there are certain aspects of that that are very, very close to my heart. So in closing... Council Chair Rapozo: You can come back if you want to come back and have another three minutes. Ms. Herndon: Mahalo from the bottom of my heart. FELICIA COWDEN: Aloha, I am Felicia Cowden and I want to echo the appreciation that our Kaua`i County Council is taking in the statement that is really about all of the United States of America. It affects the County, the State, and the Federal government. I think it is really key. This is, as Councilmember Yukimura said, as big as the women's right to vote. And it is being echoed across the country without the support of the major media. The major media is owned pretty much by the very entities that will be affected by this. So only some people are even aware of what is happening. I feel like that is a really, really COW COMMITTEE MEETING 9 JUNE 10, 2015 critical piece. I am sorry, I am so distracted by conversation...I cannot concentrate when you guys are not listening. I thank you for it and what I feel is very important is that second whereas that Councilmember Kaneshiro was struggling with. The first one, it will become a little bit dated if we talk about an ABC poll. This is something that history will look back on, and corporations, their fiduciary responsibility to put the profit and bottom-line first is fact. That is not an opinion. And it is essentially the mens rea of the whole problem. You can have wonderful people who work in these corporations and I think of Patagonia or different lines that do really nice things, but still yet, they have to make the best financial decision and that is their responsibility by law. So that needs to be in there, because this is something that will be looked at again and again when we look backwards. And so if we do not say the reason why that this is so important, it really, really weakens the entire essence of the message that is being sent. I hope that you, Councilmember Kaneshiro, rethink that piece because it is very critical. Having a unanimous vote matters, but I would rather see a non-unanimous vote than to leave out that very essential piece that says why this is so very important. And so I echo the speaker before me, is we see it especially at the municipal-level. The small rural communities, they cannot stand up to these global economics that are just overwhelming our island and all across the world really. We are moving towards a concentration of power that is profound. We saw these five banks basically not even get in trouble for clear violations. Thank you. Council Chair Rapozo: Thank you. ELAINE VALOIS: I want to thank you for bringing this into public view and discussing it honestly, deeply, and sincerely. My question is this, yes, corporations do good. They give us really great television programs. They also offer a lot of their money, but maybe one percent (1%) of their profits to this, but whatever the percentage is they also do not have to pay taxes on that money that they give. And that is also understandably one of the motives for giving. And I am not complaining about that, but Citizens United is another issue. Do not connect these two things, because they do some good, does not mean that they do what they want to do with impunity, what they feel they want to do on the world stage. That has catastrophic implications for democracy. This issue of Citizens United, which I am fascinated by the title. It should have been Corporations United, right? Absolutely. And then if you have got a good imagination, you might say what more could they do in the future, besides sway elections? What is in there that allows them to do more than that? I just want to quote something here, corporations of our politics induced by big money control of our elections is blocking progress on every issue. Mr. Koch said of course that just the opposite, that democracy is blocking progress. And I thought yes, his progress. It will affect the creation of jobs, raising the minimum wage, adopting a fair tax system, passing a Federal budget that serves the broad interests of the American people, winning fair trade rules, preventing catastrophic climate change, addressing wealth and income inequality, ensuring healthcare for all, and more. They are not in it just for the elections. What they do will affect the climate, believe me. Trans-Pacific Partnership (TPP) will affect the climate, and will affect a lot more than we even know. The potential of this amendment...amendment to the Constitution. Council Chair Rapozo: That is your first three minutes. You are allowed three minutes and you can come back after everyone else comes back, you can come back a second time. Ms. Valois: You distracted me. COW COMMITTEE MEETING 10 JUNE 10, 2015 Council Chair Rapozo: I am sorry, you have three (3) minutes, this is your first time here. Ms. Valois: That is all right. Council Chair Rapozo: Is there anyone else wishing to speak a second time? I mean first time...we still have a list? Ma'am, you will have to come back after the other speakers. Ms. Valois: I suggest a democracy for all amendments. Thank you very much. Council Chair Rapozo: Next speaker. KIP GOODWIN: Thank you, Councilmember Kuali`i and Councilmember Yukimura, for introducing this Resolution. Thank you, Chairman, for putting it on the agenda. Back in 1907, the Tillman Act was the first Congressional legislation to ban direct corporate contributions in elections. Since that time, in modern times from John F. Kennedy to Bernie Sanders and from Barry Goldwater to John McCain, our elected leaders have recognized the coercive influence of money in politics. The opinion polls that have been referenced are all across political ideologies and I think it is fair to say that among those right here on Kaua`i, who understand this issue, that your constituents would hold the same to be true. Republican Senator Warren Rudman said in a few words, "Free speech can hardly be free if only the rich are heard." Thank you. Council Chair Rapozo: Question. Councilmember Yukimura: Thank you, Kip, for being here. So you are saying historically both sides, the Republicans and Democrats, the McCains and the Kennedys essentially have been in support of campaign spending limits? Mr. Goodwin: That is right. And these opinion polls are taken among Republicans, Independents, Democrats, and they all line up the same. They are all equally opposed to this Supreme Court decision. Councilmember Yukimura: Thank you very much. Council Chair Rapozo: Next speaker. MATTHEW BERNABE: Good morning everybody. Matt Bernabe, for the record. I would like to start off with saying this title "Citizens United" absolutely makes sense to me. Because if you read the Constitution, it starts with a citizen is a white male property owner and this is how this percentile of the population still views their status. So it totally makes sense why they would go and name it Citizens United. This issue incited me to get more involved to the point that I am here today in front of the Council several months in, because of this issue. I served in the military and I watch the news and followed this very well and in real time, when it started to happen, it stated to incite anger in me, because I served in two branches of the service; military and armed forces, and I did not serve to defend corporate entity rights. I did not serve to defend the Constitution for the rights of corporate entities that have no life span, no accountability, and now we are going to afford them all of our perks as United States citizens, you got to be out of your COW COMMITTEE MEETING 11 JUNE 10, 2015 minds. It made me mad. It made me mad that when everybody was going anti-GMO, I was telling them, no, that is a symptom, let us go after the disease. This is one of the diseases. On this timeline that he is talking about, Mr. Kidman and I had watched this several years ago, David Cobb came down to Kaua`i and I brought my teenage daughter. She was about twelve (12) at the time. When we left, she and I, after the four hours we were so educated in this process that we have today, started in 1814. They gave us these little pamphlets. I do not have it today because I gave it to somebody to study. It had all the timelines and benchmark rulings or legislative bodies or something amended to where we are today. And it does not even end in 2010. It actually ends in 2014. Because since Citizens United, American Legislative Exchange Council (ALEC), the think-tank that created this for that citizens one percent (1%), has come up with more. And of all of the things that I know this affects, which we could on for days how this affects us individually. It is actually the stuff that I do not know that this ruling does. Right? I am only educated to one point. But precedence has all kinds of ways that good lawyers get to put it in if it is unchallenged and they find ways to make it work for them. I am going talk again, some more, I am not done obviously. I will leave it at that, because that is my last thirty (30) seconds and I will come back for my second three (3) minutes. For sure. Council Chair Rapozo: Thank you, Matt. Good morning. ELIZABETH DIAMOND: Good morning. Elizabeth Diamond. First of all, thank all so very, very much for your service to our community. We really appreciate your position on this. I want to say that at the very least Citizens United is ridiculous. And at the very worst it is diabolical and will affect every single human being in our country and eventually across the planet in the worst way possible.. We cannot even imagine at this point. So you have my one hundred percent (100%) support, and permission to go and do what it takes to get rid of this horrible, horrible amendment. Thank you very much. Council Chair Rapozo: Thank you. Next speaker. PUANANI ROGERS: E welina mai kakou. Congratulations Mel, for your Chairmanship. This is the first time I have come before you since the new election. Congratulations to all of you. Council Chair Rapozo: Thank you. Ms. Rogers: Mahalo. So far, I think Mel you are doing a good job. You have got the experience. You have got the expertise and I think intelligence to run our Council. All of you, I commend all of you. KipuKai, maika`i loa you are on the Council...okay, just this morning I am a little "Johnny-come-lately" on this issue, because I do realize that there were other meetings on this subject before. I was just reminded of the gravity of this issue and it is global. And I have opinions about globalization. For a long time, I was against elections, because I never thought that they were pono. It always, to me, it always was he who has the most money wins. So there are times when I did not even vote. I was so against it. I think there might be a way that we can somehow change that kind of election system, where it would be fairer. I just read this morning on the computer this petition that said the Supreme Court's disastrous Citizens United decision in 2010 opened the door for right wing special interests to spend unlimited amounts of money to rig elections. And I supported it on the internet and I support your Resolution as well. I am here to boost your efforts in this. I would like to COW COMMITTEE MEETING 12 JUNE 10, 2015 make one comment about my feelings on globalization, and that has to do with global industries and all of the hewa that they are doing to indigenous countries by taking over their governments, and raping them of their natural resources. Not having respect for cultural issues in these countries. Case in point Mauna Kea. It is a globalization move, this building of telescopes and I hope that you folks are also in support of our movement to protect our sacred sites. And scared sites all over the world that is being impacted by globalization and corporations like we are talking about. Council Chair Rapozo: Thank you. You can come back as well. Ms. Rogers: Mahalo, I am done. I support you guys. DOUG SMITH: Good morning, my name is Doug Smith. I only expected to be here observing, but this was brought up, and it is certainly part of what life is about, which is transforming the world into what the world needs to be. What we dreamed of in the '60s and '70s, has not been fulfilled yet, and I am here to be part of that being fulfilled. And very often I remind people about Dwight David Eisenhower's farewell address, warning the nation about the military industrial complex and this is a key piece of that. That is all I have to say for now, but I think you will see me in terms of the homeless...I will call them "shelterless / people forced to live in their vehicles / lower-income people" are going to unite and hold elected officials, corporations, and other entities, non-profits, accountable. Thank you. Council Chair Rapozo: Question. Councilmember Yukimura: Mr. Smith, thank you for being here. I have a question. So I just want to be clear, you are in support of this Resolution? Mr. Smith: Yes. Councilmember Yukimura: Thank you very much. Mr. Smith: And more like it. Councilmember Yukimura: Thank you. Council Chair Rapozo: Thank you. That was it. Anyone else wishing to speak a second time? We will go in the order... Ms. Herndon: Sandra Herndon, again. And actually, this is a very brief comment and it is a quote from a friend of mine. Because actually, most of what I wanted to cover has been already brought forward by other speakers. But my friend said, you know, I will believe corporations are persons when they get the death penalty. That is all I want to say. Thank you. Council Chair Rapozo: Thank you. Ms. Cowden: Felicia Cowden, for the record. It was brought up ALEC, the American Legislative Exchange Council, and the Trans-Pacific Partnership was brought up. We have seen when legislation happens in one area we have a cascading effect going down and to have a movement as profound as what is happening with this move to amend, whereas the states can COW COMMITTEE MEETING 13 JUNE 10, 2015 make that choice rather than leaving it to the House of Representatives and the Senate. That can influence other behavior also. So I am really glad when counties and municipalities across the country are standing up and it is happening all over. I believe there are at least thirteen (13) states now that have put their name in to be ready to move to amend the U.S. Constitution. It would be the 28th Amendment. Hopefully, this will help to hit the tipping point that slows a very large corporate takeover of even nation-states. For people who might be watching, that are unaware of what this is, this is a very, very big deal. And it is not by accident that people are not aware of what is happening. So again, please leave that second whereas in there. We need to have the real meaning behind what is happening. Thank you so much. Council Chair Rapozo: Next. Ms. Valois: Someone said...I do not know exactly who it was, but said "Do not knock democracy; it has not been tried yet." We have been thinking about it, as Bobby Kennedy said, "And the dream lives on." I think it is time for us to not think about returning to anything of the past, but to reinstate what we believe democracy is. And this particular amendment, as we have all said, is shockingly dangerous. Never mind donations to good causes. I just wanted to say that we need to reinstate the dream, and there are several people who have tried to establish something called the Transformational Fair Elections Now Act. I do not know if you have heard about it. But we need to reinstate a counter amendment. But in the meantime, the best we can do right now is to state our feelings about it, our attitude towards it, and our willingness or unwillingness to support it. Thank you so much for being involved with this. Council Chair Rapozo: Thank you. We have a question. Councilmember Yukimura: Yes. Thank you. Just to be clear, you are in support of an amendment to the Constitution that would overturn? Ms. Valois: Absolutely. Yes. Councilmember Yukimura: The court ruling? Ms. Valois: Yes, of course. Councilmember Yukimura: Thank you very much. Council Chair Rapozo: Anybody else wishing to speak a second time? Mr. Bernabe. Mr. Bernabe: Matt Bernabe, for the record. Okay, so I already covered the corporate side of this. I will go to the money is speech side of this. If money is free speech, by default, that makes speech no longer free. It is just logic coming from a "Kapahi cruiser"...or equal and fair for sure. I was not here this morning to hear Councilmember Kaneshiro's position, but you know, and this is not an insult. This is just the reality of where we are at. It is no shock to me that he is the one dissent, because his whole entire economic life other than this Council is supported by a corporate entity that is benefitted by this. That is not a bad thing, by no means. I am not knocking that at all. In fact, I am praising Safeway and that subdivision, I have been telling everybody how God set it there for the Kapa'a traffic problem. If the public has an opinion...because nobody here is not supporting this. COW COMMITTEE MEETING 14 JUNE 10, 2015 Everybody in this audience right now is supporting you moving forward on this. I just want to say if anybody out there who you represent is against this language, and this position, please let them come up and testify. I would love to hear the arguments against this. But to me, this is a no-brainer. Just by the logic that I put forth on the first sentence of the second testimony. I support this full-heartedly. I am assuming if it does not pass today we will have more discussion on this. I do not know...it has to go to the full Council, I guess. I hope you push this forward. All we are asking is, for a letter of support basically and not asking for allocations of long- term funding or anything like that, just asking for the initial cost to draft the Resolution and send it to the Mayor, the Governor, and what not? Thank you very much and send it to Brian Schatz and Tulsi and every delegate and every Senator and every House member should get a letter from us, I think. Council Chair Rapozo: Do you have a question? Do you have a comment? Councilmember Kaneshiro: Kind of a clarifying... Mr. Bernabe: I did not hear your position. So I just left it general. Councilmember Kaneshiro: I will just make it quick. To clarify my position, I said in the very beginning that I support this one hundred percent (100%). Mr. Bernabe: Perfect. Councilmember Kaneshiro: The way the Resolution is written, there are a lot of generalizations in it that I do not necessarily think need to be in it, like the polls and things and only a thousand (1,000) people were polled and to say eighty percent (80%) of Americans are in favor of it...I support the intent and I said if you keep it shorter, succinct, and accurate, I will support it. If we add in the generalizations, and you will probably see the generalizations that I had problems with...excuse me. Council Chair Rapozo: Excuse me. Councilmember Kaneshiro: When the generalizations come up, we have amendments for that. Mr. Bernabe: I would gladly... Council Chair Rapozo: Matt, I just allowed him, because it was posed as a question and I wanted you to be clear. I think once we get back into discussion and see the amendments, you will understand. I actually agree with Councilmember Kaneshiro as far as the generalizations. Mr. Bernabe: Like I said, I am not trying to buck the horse. I am glad to hear that he supports the notion one hundred percent (100%). That is important to me. As somebody mentioned earlier, I would love a unanimous vote moving forward with this. Thank you very much and thank you for clarifying, too. COW COMMITTEE MEETING 15 JUNE 10, 2015 Council Chair Rapozo: Anyone else? You need to bring someone up? The rules are still suspended. Councilmember Yukimura: Ms. Diamond. Council Chair Rapozo: Ms. Diamond, could you come back up, please? Ms. Diamond: Elizabeth Diamond. Councilmember Yukimura: Thank you for your testimony. I just wanted to clarify, because your last sentence was "do away with this terrible amendment." Ms. Diamond: I probably used the wrong words. Councilmember Yukimura: Am I to understand that you are against the Supreme Court ruling and in favor of an amendment that would overturn the ruling essentially? Ms. Diamond: Yes. Councilmember Yukimura: Thank you. Council Chair Rapozo: Thank you very much. Ms. Diamond: You are welcome. Council Chair Rapozo: Anyone else? If not, we will call the meeting back to order. Councilmember Kuali`i. The meeting was called back to order and proceeded as follows: Councilmember Kuali`i: I would like to amend as circulated and this is to address Councilmember Kaneshiro's concerns and I have agreement about generalizations and those broad statements. And I do not think it detracts from the overall intent of the Resolution. And along those lines, I do want to point out the two...the final be it resolved. The "be it resolved" statements, which is really the strength of the Resolution. So the first "Be It Resolved": BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF KAUAI, STATE OF HAWAII, that corporations should not be endowed with the same constitutional rights as natural persons and because money is not speech, limits on political spending should be allowed to protect First Amendment rights and ensure a "fair playing field" in the arena of politics and public decision-making. The next "Be It Further Resolved": BE IT FURTHER RESOLVED, that the Council of the County of Kauai supports amending the United States Constitution to achieve campaign finance equity reform by ending the false doctrine of"corporate constitutional rights" in the arena of elections and voting, and by clarifying that money is property, not speech; and by allowing limits on campaign contributions and spending. COW COMMITTEE MEETING 16 JUNE 10, 2015 As the original introducer, that is the strength of it. I made a motion to amend as circulated. Councilmember Kuali`i moved to amend Resolution No. 2015-44, Draft 1, as shown in the Floor Amendment which is attached hereto as Attachment 1, seconded by Councilmember Kaneshiro. Council Chair Rapozo: Thank you. Any discussion? Councilmember Yukimura? Councilmember Yukimura: I am sorry that my co-sponsor did not want to work with me on a compromise, and I am having amendments prepared. I would like to instead of eliminating the two whereas provisos that Councilmember Kaneshiro would like to have eliminated. I have amended them to simplify and make them more accurate. I mean, I have amendments being prepared. And just so you know what the alternative is, I would amend the whereas about the Washington Post ABC poll to read... Council Chair Rapozo: Hang-on JoAnn. We have an amendment on the floor. Councilmember Yukimura: No... Council Chair Rapozo: Not no... Councilmember Yukimura: I know. Council Chair Rapozo: We have an amendment on the floor. We are discussing the amendment. Councilmember Yukimura: Yes. Council Chair Rapozo: Please discuss the amendment that is on the floor and not other potential amendments. Let us take a 10-minute recess. You two can go in the back and discuss your two amendments and come up with one and that we can all agree upon. We are not going to spend a day on this issue. You two discuss a compromise amendment and we will move forward. Recess. Councilmember Yukimura: Thank you. There being no objections, the meeting recessed at 9:54 a.m. The meeting was called back to order at 10:04 a.m., and proceeded as follows: Council Chair Rapozo: Meeting called back to order and on the floor now is Councilmember Kuali`i's amendment, removing the 8th paragraph and the 14th paragraph. Any further discussion? Councilmember Yukimura? Councilmember Yukimura: Yes. Mr. Chair, I think those two paragraphs put forth very important rationale for this Resolution. And I also think that Councilmember Kaneshiro made some good points about accurately stating what the poll found, and also that sometimes we could be simpler in how we state the facts. So that is why I have an amendment, which I will not discuss, but which tries to address Councilmember Kaneshiro's concerns without taking out the COW COMMITTEE MEETING 17 JUNE 10, 2015 essence of two very important concepts supporting the intention of this Resolution. And therefore, I will not be voting for this amendment. Council Chair Rapozo: Thank you, Councilmember Hooser. Councilmember Hooser: Thank you, Chair, and I will not be voting for the amendment either. I think both statements are accurate statement and could be wordsmith a little bit or perhaps polished or condensed, but they are both accurate statements. I will read briefly, if I may...this is from the Brennan Justice Center which did a report on the various polls. And there were four polls done by different organizations immediately following the original decision or thereabouts. They all are basically real similar in terms of the results. The Washington Post ABC poll showed eighty percent (80%) as stated in here. A Common Cause poll showed only twenty-seven percent (27%) of people agreed with Citizens United. So again, overwhelming opposition to it. The People for the American Way, which is a conservative group, seventy percent (70%) or more, seventy-eight percent (78%) believe that corporations should be limited. There is a Pew Research Center poll that showed only seventeen percent (17%) of people approved of Citizens United, the decision. So the various polls are all pretty much consistent; that the vast amount of Americans oppose Citizens United. So we could list all of the polls, but this one poll, I think, shows issues of the statement that we are trying to make in the Resolution, that vast majority of people are opposed to Citizens United. A poll by its nature is limited. So a thousand people does not mean it is a bad poll and published by major media Washington Post ABC News and done by experts and I am sure it is a random sample, et cetera. So at the end of the day, I see no reason to weaken the Resolution. Both of those statements are accurate statements and I will be opposing the amendment. Thank you. Council Chair Rapozo: Anybody else? Councilmember Chock? Councilmember Chock: It is interesting how we can all agree upon one thing, but it is always in the details, where there is more work to be done. I would support number two whole-heartedly in removing the 14th paragraph because as someone stated previously. I am less inclined to support the first amendment. And I am actually interested in hearing what Councilmember Yukimura has to offer. I know this kind of moves us...we might be here to 4:30 p.m. I do not know. My hope is that we are not. If you want to support this in seriatim, that is how I would vote on this at this point. You know, I think that we have got to move ourselves to finding some way to balance...while we have the experiences that we have currently, with corporations, you know? I think that we cannot deny that we need to move towards what it is that we want to and we have to embrace that in order to address it. That is where I think some of this needs to be retained. With that, I am happy to take your lead. I just need to hear from everyone where they are with this. Thank you. Council Chair Rapozo: Councilmember Kaneshiro. Councilmember Kaneshiro: Again, I do not want to repeat myself, but to be clear again, I support the intent of the Resolution one hundred percent (100%). And is anybody telling me not to support it? No, I am saying that I support it. I have not had one person tell me not to support it and I actually had people telling me that I should support it, but based upon reading the whereas statements. The devil is in the details. That is what I am not comfortable with. I am completely comfortable with the intent of the Resolution and I one hundred percent (100%) COW COMMITTEE MEETING 18 JUNE 10, 2015 agree there should be limits on corporate campaign contributions, but to say most corporations put profit for shareholders ahead of the greatest good of society, I cannot agree with that. I do not think most corporations do that. That is my own opinion and other Councilmembers can have other opinions. We do not need to overgeneralize. Yes, there should be spending limitation, campaign contribution limits. As far as the poll votes, again to state that eighty percent (80%) of Americans support it when they only polled one thousand four (1,004) people, we do not need that. I support it without all of this information, I support it. If anybody has time to read the House's resolution in 2010 it is very simple. I do not want to go and read it, because I do not want staff to have to type up the minutes for it, but if you read that resolution it says the exact same thing as this, but is a lot more simple with less generalization. My point is the generalization is what is getting me. I support it one hundred percent (100%), but when we overgeneralize on things I think we set a bad precedent. That is all I am saying and that is my own personal opinion. That is why I said I did not want to make this a big deal. It is on a resolution and I did not want to do an amendment. I was just going to vote no based on the overgeneralizations, but again, that is where I stand. I am not comfortable with the Resolution. Council Chair Rapozo: Thank you. Councilmember Kuali`i. Councilmember Kuali`i: So I just wanted to point out that there are fifteen (15) whereas statements and the other thirteen (13) that remains covers the ground with the different cases pointed out and with all of the talk about corporations and the powers and their rights and go against democratically-enacted law and the whereas above the one we are talking about, the whereas below the one....There are thirteen (13) whereas statements that remain and I think the points are made strongly, and as I put on the screen before, the most important part about it are the two "Be It Resolved" statements. So we can get to the point where we can have unanimous support for this, that is what is important to me. I heard someone giving testimony saying it was not important. But as the introducer, it is important to me. So I am hoping that we can get there. I am just, you know, seeing this amendment, which removes two of the fifteen (15) whereas statements and keeps the other thirteen (13) and has us with our strongest statements in the "Be It Further Resolved" section as a way to get us to that point and to a full Council vote next week. Thank you. Council Chair Rapozo: Councilmember Yukimura. Councilmember Yukimura: So my amendment, which would address Councilmember Kaneshiro's question with respect to the provision about the poll. Because it would just accurately state what the poll was. That eighty percent (80%) of those polled were in favor of it. And so that is not an overgeneralization. It is a fact. And it is the only proviso in this whole Resolution that speaks about the extent of support there is out in the public for this Resolution. It is a very important, I feel, point. That so many people across all political lines feel so strongly that corporations should not be able to contribute to elections in an unlimited way. And that really does away with a level-playing field. So that is a very important provision. It is not overgeneralized now. It addresses Councilmember Kaneshiro's concern. If my amendment can be passed. And therefore, I think addresses what he has raised, which I thank him for doing. And I also have one that would address his other concern about the other provision. COW COMMITTEE MEETING 19 JUNE 10, 2015 Council Chair Rapozo: We are going to take these ad seriatim and before we take the vote, let me...do you have another comment, Councilmember Hooser? Councilmember Hooser: I have a question for Councilmember Kaneshiro. Council Chair Rapozo: Go ahead. Councilmember Hooser: I am not sure, we are discussing these amendments in an attempt to alleviate some concerns that he has. And so I guess my question is, are these the only two concerns that you have? And if one of them passed and one did not, are we doing all of this in a futile attempt to satisfy? Council Chair Rapozo: That was my point earlier. Councilmember Hooser: I mean, I respect your position one hundred percent (100%), but if you could speak to that maybe. Councilmember Kaneshiro: Again, those are the only two that I had problems with. That is why originally I said I am not going to make amendments and we will just vote on it. But I know we wanted to get...or some Councilmembers wanted to get a unanimous decision. So they tried to amend it and I can say if those two are out, I will vote for it unanimously. I guess that is my answer. Unanimous, if one is in and one is out, I probably will not vote for it. Those are the two that I am not comfortable with. If they were out, I would vote for it. Council Chair Rapozo: Okay. Sound goods. Let me just make my comments real quick, because I think we have totally lost the focus of the whole purpose of the Resolution which was the Supreme Court's decision. And the Supreme Court said that a corporation is a person. That is ridiculous. I agree with that. That is insane. You wonder what the heck were they thinking? A corporation is not a person. The other part of the ridiculous ruling is that money is free speech. That is ridiculous. Those are the two issues that we are trying to unwind. You know, and again, KipuKai said, "Do not use the "V" word," the vilify, but I agree with Councilmember Kaneshiro one hundred percent (100%), when you talk about "most corporations" because that may or may not be true, because there are many corporations that spend billions of dollars to make sure that they operate in a green manner, that they use photovoltaic, and that they use the best type of vehicles. There are a lot of efforts by corporations throughout the country and not all of them are bad and when you say "most" it creates this perception that most corporations are bad. The fact that they have unlimited ability to sway elections is ridiculous and I agree with that one hundred percent (100%). For the Supreme Court to rule that they did not contribute to corruption...really, what were they thinking? That is what it comes down to. A Supreme Court decision that said number one, corporations are people and number two, money is a form of free speech. That is what the Resolution seeks to unwind. As far as the amendment with the poll, a thousand (1,000) people out of three hundred and eighteen million (318,000,000).or three hundred and twenty million (320,000,000), that is not an effective poll. Granted we cannot assume that would be the result of any poll we took. But you know, if we applied that same proportion to a Kaua`i poll, you would have 0.21 people. Not even a quarter of a person. That does not make a valid poll. You know that. Because you like the result of this poll does not mean that...what if it were the other way? We would be here saying that poll is no good. You only spoke to a COW COMMITTEE MEETING 20 JUNE 10, 2015 thousand people. If I went out into Lihu'e town today and spoke to one person and this number reflects a fourth of a person, less than a fourth, but if I spoke to a person on any issue that we talk about, would that be reflective of the community's feelings? Absolutely not. Absolutely not. This issue is a little different because it is almost as some people have said, it is no-brainer because it makes sense. You cannot dispute the fact that if I give a politician one hundred thousand dollars ($100,000) or two hundred thousand dollars ($200,000), and he is not going to support my issue? Of course they will at that level of government. I think the fact that limits have been removed that is wrong and it needs to be fixed. I could to go further and say you need to have term limits in Congress too. They should only have retirement after they serve ten or twelve years. I will run for Congress on that platform and see how far I will get. My point is that a lot of problems in our Federal government as far as how the big boys play and this Resolution seeks to fix that. We can get to the same result by using accurate and fair information and I think that is Councilmember Kaneshiro's concern. The fact that paragraph eight gets removed and paragraph fourteen gets removed does not minimize the impact. We are not talking about the bad corporations or what they are doing, we are talking about the ruling by the Supreme Court that we want them to reconsider or we want a charter amendment or constitutional amendment to fix. Those are the two issues that the Supreme Court ruled on...the Supreme Court did not rule that they put profits before the betterment of the community. I think that statement could be true in some cases and it could be not true in some cases. So I appreciate and respect Councilmember Kaneshiro's position on this and again, for most of you, you probably know this, we only heard his position today, first time on the floor. I am trying to process this, and I apologize for the music coming out of my iPad, but I am trying to look online to figure out some numbers. So I will support this Resolution...I mean this amendment, and I definitely will support the Resolution. Removing these two, in my opinion does not eliminate the validity. I believe it is important and the unanimous support of the Resolution is viable and it sends a louder message and I do not think that you compromise the quality of the Resolution by removing paragraphs eight and fourteen. With that, let us take the first one please ad seriatim, removing the eighth paragraph. Councilmember Kuali`i moved to take the Floor Amendment, which is attached hereto as Attachment 1 in seriatim, seconded by Councilmember Kaneshiro, and unanimously carried. The motion to amend Resolution No. 2015-44, Draft 1, by deleting the 8th paragraph (See Attachment 1) was then put and failed by the following vote: FOR AMENDMENT: Kaneshiro, Kuali`i, Rapozo TOTAL— 3, AGAINST AMENDMENT: Chock, Hooser, Yukimura TOTAL— 3, EXCUSED & NOT VOTING: Kagawa TOTAL — 1, RECUSED & NOT VOTING: None TOTAL — 0. Council Chair Rapozo: It failed. Roll call on the next section. The motion to amend Resolution No. 2015-44, Draft 1, by deleting the 14th paragraph (See Attachment 1) was then put and carried by the following vote: FOR AMENDMENT: Chock, Kaneshiro, Kuali`i, Rapozo TOTAL— 4, AGAINST AMENDMENT: Hooser, Yukimura TOTAL— 2, COW COMMITTEE MEETING 21 JUNE 10, 2015 EXCUSED & NOT VOTING: Kagawa TOTAL — 1, RECUSED & NOT VOTING: None TOTAL— 0. Council Chair Rapozo: So we are back to the main motion. Were there any more amendments? Councilmember Yukimura: Yes. Move to amend as circulated. Councilmember Yukimura moved to amend Resolution No. 2015-44, Draft 1, as amended, as shown in the Floor Amendment which is attached hereto as Attachment 2, seconded by Councilmember Hooser. Council Chair Rapozo: Thank you. Councilmember Yukimura: So if I may explain my amendments. Council Chair Rapozo: Please. Councilmember Yukimura: Staff, can we make sure that people in the audience have copies? Thank you. I am proposing to amend the paragraph which Councilmember Kuali`i's amendment failed to delete. The one about corporations putting profits ahead of the good of society. And it simplifies the paragraph, but hopefully keeps its essence and it includes some wording that Mr. Kuali`i suggested. It would read, "Whereas most corporations by their legal obligations often put profits for shareholders ahead of the good of society" and it takes everything else out. And then the second part of the amendment would reinsert the poll. Council Chair Rapozo: Councilmember Yukimura, that amendment is not valid because the language has changed with the passage of the first amendment. So we are going to have to re-create the amendment to reflect the passage. If you could just leave that off and just discuss your first amendment, number one. Councilmember Yukimura: Thank you. Staff, can we be preparing a new amendment to reinsert? Council Chair Rapozo: Any further discussion? If not, roll call...I am sorry. On number one of Councilmember Yukimura's amendment. Councilmember Kaneshiro: Again, I think it is clear where I am coming from, in regards to the overgeneralization. We did not change any of the overgeneralization and it still says most corporations and added by "their legal obligations" which I do not know if that is true or not. I have never heard of a company who has it in their documents that says, "You are obligated to put profits for shareholders ahead of the greater good of society." I have never seen that before. It is a generalized statement. Individuals could do that too. Individuals can work and put their greater good above society. I just do not think, again, this does not even touch upon what the intent of this whole Resolution is for. So that is why I guess I am sticking true to my argument that this is unnecessary, and I think it only will push people away from a Resolution like this. If they feel like it has a negative undertone. I mean, why have it in if it does not add any teeth to this Resolution? The Resolution is simple and KipuKai said it, basically corporations are not persons and corporations should not have unlimited political contributions. COW COMMITTEE MEETING 22 JUNE 10, 2015 It does not need any of this and I am going stick to my guns and again, I support that 100%. In my opinion, these whereas statements generalize and I cannot support and it that is why I will not support this amendment. Councilmember Yukimura: Mr. Chair, I would like to ask the County Attorney to come forward on a legal question? There being no objections, the rules were suspended. Council Chair Rapozo: If there are no objections, I will suspend the rules. We are really...I think Councilmember Kaneshiro's point is so valid. He is not comfortable with it, and he votes no. Really, it is just as much...really... Councilmember Yukimura: Mr. Chair, I am not debating that. Council Chair Rapozo: Councilmember Yukimura, I am calling him up. I am just not sure he is able to do a legal opinion on the fly. Go ahead and ask your question. STEPHEN F. HALL, First Deputy County Attorney: Good morning, First Deputy County Attorney Stephen Hall. Councilmember Yukimura: Thank you, Steve. I wanted to ask if corporations have a fiduciary duty to make profits for their corporation, especially if there is a conflict between achieving some of society's goals and the goal of making the highest profits. Is there a fiduciary responsibility? Mr. Hall: There are a number of different types of corporations. C-corps, S-corps, and limited liability corporations (LLCs), sure their goal is to make a profit, but we have not-for-profit corporations and it is difficult to make a blanket statement like that. Councilmember Yukimura: For the profit corporations, there is a fiduciary duty. Mr. Hall: To do their best for their shareholders, yes. Councilmember Yukimura: Okay. Thank you. Council Chair Rapozo: Is the County of Kauai a corporation? Mr. Hall: It is a municipal corporation. Council Chair Rapozo: Is it a corporation? Mr. Hall: Yes. Council Chair Rapozo: Do we put our profits...do we even have shareholders? Mr. Hall: We do not have shareholders, correct. The meeting was called back to order and proceeded as follows: COW COMMITTEE MEETING 23 JUNE 10, 2015 Council Chair Rapozo: That is my point. That is what Councilmember Kaneshiro is trying to say. It is just broad and general, and it is not necessary. Thank you. We will call the meeting back to order. I belong to...that I can remember...I have been recently associated with the United Way, Red Cross, Pop Warner, I was always on the board. We were corporations. That was not true of our corporation. It does not say for-profit corporations and yet, there are some for-profit corporations that operate differently. We had the opportunity with the one amendment to pass this unanimously and we should have went there and now we are trying...and we are not going to get there. We lost the support. So roll call. I am sorry. Councilmember Hooser: What are we voting on? Council Chair Rapozo: Councilmember Yukimura's amendment. Councilmember Hooser: Number one only? Council Chair Rapozo: Number two is not valid because it was already changed in a prior amendment. So she is preparing a new one for that. Councilmember Yukimura: Mr. Chair, I think we should have some chance to discuss. Council Chair Rapozo: We do, go ahead. Councilmember Yukimura: So I think the Chair's examples of corporations are not relevant to this issue, because the corporations that are non-profit cannot even make campaign contributions by their charter. And I appreciate what we are talking about here and I can see that we could become even more explicit about it, but the corporations that we are talking about here are the ones that are allowed under Citizens United, unlimited contributions to political campaigns, and political candidates. Council Chair Rapozo: Where in your amendment does it specify that? Your amendment says most corporations by their legal obligations often put profits for shareholders ahead of the good of society. That is all the paragraph says. This does not mention a thing about campaign contributions or anything. You are just making a broad statement that most corporations put profits of shareholders before the interest or the good of the society. That is what your amendment said and I think it is broad and general. Councilmember Yukimura: Yes and what I am saying is that we are talking here in the context of corporations that are the ones that are allowed unlimited contributions. Council Chair Rapozo: Okay. Councilmember Yukimura: That is in this Resolution. Council Chair Rapozo: That is your perception and that is fine. Councilmember Yukimura: Yes and I am just saying those are the ones that we are talking about, so your examples of the non-profits are not relevant. COW COMMITTEE MEETING 24 JUNE 10, 2015 Council Chair Rapozo: To you. Councilmember Yukimura: Well, even to your example of being able to make contributions. They do not...they cannot make political contributions. Council Chair Rapozo: Again, that is to you. Councilmember Kuali`i. Councilmember Kuali`i: I just want to say it is pretty amazing, by getting buried in the word-for-word detail we can find a way to disagree on the things that we agree on. In fact, when we talk about compromise, letting go of two whereas statements out of fifteen (15) and having the fifteen (15)... having the four "Be It Resolved," it is all there. I do not know why we cannot support this unanimously and the more I hear Councilmember Kaneshiro repeat his passionate position, I respect that and I support that. I support the full intent of what we are trying to do with this Resolution. I do not see how it is changed by compromising to let go of those two whereas statements. I would imagine that any reasonable person in the public, who wants to be a part of this movement, Move To Amend, wethepeopleamendment.org for this and the two basic principles of money is not speech and corporations are not people with inalienable rights according to the Constitution, would probably be laughing at us today, that we are doing this over the phrase, the potential vilifying of corporations in general. It is just not necessary and if we are going to now end up in a deadlocked position today and have this buried in Committee, that is just silly. I am not going to support this amendment. Council Chair Rapozo: Councilmember Hooser. Councilmember Hooser: My focus is on the accuracy of the statements. And I believe the statement as proposed is an accurate statement and that is my biggest concern. Is it an accurate statement or not? It is not about vilifying, but for me it is about accuracy and real briefly, the County Attorney spoke to it, but I would like to read an excerpt from the New York Times. It said, the leading statement of the law...views on corporate social responsibilities goes to a Dodge vs. Ford Motor Company a 1919 decision that held that a business corporation is organized and carried on primarily for the profit of stockholders. This was a case where Henry Ford tried to reduce the price of cars and was told that by the shareholders that he could not do that; that he was violating the corporate charter because he was cutting into their profit and the court ruled that he could not. There was another example eBav Domestic Holdings vs. Newmark, held that corporate directors are bound by fiduciary duties and standards to promote the value of the corporation for the benefit of the stockholders. That does come first. That is what the courts have ruled, that corporations have to put the profits of stockholders above other things; that do not affect that. So it is an accurate statement. I do not know if it is necessary to the amendment, but I will be voting in support of it. Thank you. Council Chair Rapozo: Councilmember Kaneshiro. Councilmember Kaneshiro: Again, I stated my case, I do not know how many times. I just want to say, I lost my train of thought already. Council Chair Rapozo: I think you made it enough times already. Councilmember Kaneshiro: I am trying to make it clear, I am not being influenced by anybody, but I am just trying to strengthen the Resolution. At the COW COMMITTEE MEETING 25 JUNE 10, 2015 table we have seven (7) people and I am saying that I am not comfortable with this. If you want to poll us now, our poll is going to be very weird. I am saying that maybe there are people out there that would support it also, the Resolution, if you got rid of it, but I am just trying to say, if you keep the Resolution to the point, you do not add in a lot of whereas statements, that are maybe overgeneralizing, we will get more support for the Resolution. That is all I am trying to do and trying to get comfortable supporting it and I said I would support it without those two in it. I am ready to vote. Council Chair Rapozo: Councilmember Chock. Councilmember Chock: Thank you. I was supportive of the original whereas. It is hard, because I am supportive of this amendment as well. But I think it is hard, because we do not know what we are working with until we see it. And so when the amendments come forward, you want to be able to give some credence and at least some understanding to what it is that people are presenting to you. I will support this amendment and it is unfortunate that we did not get unanimous support for it. But hey, if there was a way that Councilmember...if there was a way to say that I one hundred percent (100%) support it without these two whereas statements, I am sure that Councilmember Kaneshiro would vote aye on it, but that is not the case. Let us move forward. I am ready to vote on it. Council Chair Rapozo: I am, too. I have been very flexible with the two times that Councilmembers can speak because it is the last item on the agenda. We had an opportunity to pass this Resolution 7-0 and now we are probably going to end up in a 6-1 vote. Anyway, roll call. The motion to amend Resolution No. 2015-44, Draft 1, as amended, by amending the 8th paragraph as shown in the Floor Amendment which is attached hereto as Attachment 2 was then put, and failed by the following vote: FOR AMENDMENT: Chock, Hooser, Yukimura TOTAL— 3, AGAINST AMENDMENT: Kaneshiro, Kuali`i, Rapozo TOTAL— 3, EXCUSED & NOT VOTING: Kagawa TOTAL— 1, RECUSED & NOT VOTING: None TOTAL— 0. Council Chair Rapozo: Motion fails. So the original language will stay. If there are no objections, I am going to suspend the rules. No, we are not going to allow anymore. You had two opportunities to speak, but Ms. Parker did not and I will ask Ms. Parker to come up and testify. There being no objections, the rules were suspended. ALICE PARKER: Good morning and thank you. I am in total support of recreating public donations, personal donations for campaign spending, and along with the majority of our countrymen, we do not want candidates bought from big companies' money. And I do not see why campaigns have to be so exorbitantly expensive. But I am in support and not all corporations are bad. Some are abysmal. Thank you. The meeting was called back to order and proceeded as follows: COW COMMITTEE MEETING 26 JUNE 10, 2015 Council Chair Rapozo: Thank you very much. We will call the meeting back to order. We have the main motion on the floor, the main motion is the Resolution as was originally put on the floor, minus paragraph 14. So the poll line, the poll paragraph is out. Paragraph 8 as originally moved on to the floor is still in there. So we are at a dilemma, because we only have six (6) members today. So as you know, 3-3 will keep it deferred in the Committee for another two (2) weeks. So there is a strategy and we can have it deferred until two (2) weeks when Councilmember Kagawa is back and hope he can convince somebody to change their vote or massage this amendment, so we can get it done, or we could pass it out today and get it to the full Council. Based on what we saw today, I do not want this at the full Council with amendments. I am not sure why it is taking so long, but it is. So I just wanted to put that out there. Councilmember Hooser. Councilmember Hooser: I would suggest that we call the vote and vote today and move on. That would be my suggestion. Council Chair Rapozo: Okay. Councilmember Kuali`i. Councilmember Kuali`i: I just wanted to say that I am disappointed that we are not coming to agreement and being able to compromise. It has affected me so much that I am...I would much rather see us defer this, and work on it more in two weeks. Hopefully with Councilmember Kagawa here, and maybe we can still try to get to the point of unanimous support. It is that important to me. I am kind of dumbfounded that we are at this place right now, and that for me, it is not necessarily about the accuracy of each of these whereas statements, because we could probably add another fifteen (15) and have thirty (30) whereas statements that were accurate. It is more about what is necessary, you know? And what is agreeable to get us to the point of unanimous support. And that it still makes the point of encouraging our citizens to be a part of this national movement to act in their best interests. Maybe in Committee in two (2) weeks, we will just have a little bit more time to even provide more outreach and education to citizens. But I do not know, it is just a weird position to be in right now as the original introducer of this Resolution, which I know we all agree on. I am just kind of not understanding why we cannot make this one elimination of one of the fifteen (15) whereas statements to get us to the point of unanimous support. Council Chair Rapozo: Thank you. Councilmember Kuali`i: I am not going to support this today. Council Chair Rapozo: Thank you. Councilmember Yukimura. Councilmember Yukimura: Mr. Chair, I think there has been a lot of effort to compromise and, in fact, I think the one place where some people are not willing to compromise is to not have...that people are not willing to not have a unanimous decision. We could all pass it out, and have this thing pass as approved by the Council without a unanimous decision. So that is sort of where the unwillingness to compromise seems to be landing. So I am thinking that we have had enough discussion. If we can get Council approval of this. Council Chair Rapozo: Anyone else? Councilmember Chock? Councilmember Chock: I wanted to move forward, and I am kind of surprised that we are where we are. So I am in my seat thinking hey, bring it back COW COMMITTEE MEETING 27 JUNE 10, 2015 and see where we can get with that, but if we do that, it still has people not supportive of it. One way or another, I feel like I could be the one to break the tie here, but you are not going to get the support in the end anyway. So I say we just vote on it and see where it lands. It is the best we can do right now. Councilmember Kaneshiro: I am ready to vote. I was not going to propose an amendment. I think I made it clear that I am in support of this Resolution one hundred percent (100%). But I made it clear where I am not comfortable, and again, I think it may turn other people off, too, having that in there. If it is turning me off, it may turn other people off. When you look at a resolution like that, I do not think this Resolution is about corporate profits. It is about a company not being a person and it is about unlimited corporate contributions. And that is what it is about. And that is what I would like to keep the Resolution to. I am just not comfortable with it. Council Chair Rapozo: Thank you. Well, you know, politics is the art of compromise. That is what it is. You know, I had hoped that the two introducers could come to an agreement as to what...I believe on the Resolution, the best way to be is the 7:0. It is not necessary, but I think for any resolution, especially of this magnitude, because granted it is only a resolution. But yet, coming from a body of a Council that is unanimously in support, I think it gives a little more "oomph" and a little more consideration, I guess, if will you. I do not think that Councilmember Kuali`.i's initial...and I already said this, but I will say it again...the original amendment to remove the two paragraphs caused any type of impact on the power of the message. I think, again, I have already spoken on what the true reason we are here has nothing to do with corporations and how they are run and how they operate and their charters look like. It comes down to the ruling that I believe the Supreme Court erroneously ruled on and that is what we need to fix. Matt Bernabe talked about the symptom and the fact of the matter, the problem is that they are given the authority by the Supreme Court. Because the Supreme Court...the issue is not the fact that they can give the money, but the fact that the Supreme Court ruled that they can because corporations are people. That is the problem. That is what this Resolution set out to fix. I do not think anybody in this room and if you polled the people on the island you would get a high percentage of people that agree against...agree that the Supreme Court made a bad ruling. I think that goes without saying. So do we need to insert the paragraphs that make one Councilmember uncomfortable? I respect everyone's opinion, but I believe we need to have a 7:0 vote and Councilmember Kuali`i has to vote against his own Resolution so that we can get a shot to get a 7:0 vote. I do not know if we can, but I am willing to take the chance to wait until Councilmember Kagawa comes back to get the necessary votes to remove that paragraph, that will make Councilmember Kaneshiro vote on it. I cannot believe we spent this much time on this, but I definitely empathize and respect Councilmember Kaneshiro's position. I also believe if we take the extra two (2) weeks we will end up with a 7:0 vote, I believe that. And I think that is more important than our lack of ability to compromise today and end up with a 5:1 vote. I am going to be voting against it to get it to Committee in two (2) weeks to get the 7:0 vote. Councilmember Yukimura: Why do we not just move to defer? Councilmember Hooser: A majority of the Members said they wanted to vote. COW COMMITTEE MEETING 28 JUNE 10, 2015 Council Chair Rapozo: I am trying to do what you guys want, JoAnn. Councilmember Hooser: Four Members said they wanted to vote. Council Chair Rapozo: That is the hardest thing, it is almost like the weather, it is sunny and then it rains and I am trying to do what you want and I said earlier to defer it strategically or vote. You folks said let us vote on it, let us vote on it, let us vote on it and now you say let us defer it. You have the prerogative to do what you want. You make the motion to defer. Councilmember Hooser. Councilmember Hooser: I will speak for myself. I think we should vote on the Resolution. I think we have had the discussion. We have already compromised halfway with the Member who had some concerns. So we have compromised. And we have had a full and robust discussion. We talked to the attorneys. We spent a lot of time on this. I would encourage everyone...I do not want to see it get any weaker, myself. We might have a 7:0 vote. If this moves much further in the direction that some might want it to go, I might not support it. Again, we have compromised already. We have met Councilmember Kaneshiro halfway on his concerns and we had a discussion. Let us vote. I think the right thing to do would be to vote on it today. Councilmember Kuali`i: I withdraw my motion. Council Chair Rapozo: Which motion? Councilmember Kuali`i: The original motion. I am going to make a motion to defer. Council Chair Rapozo: The motion to defer trumps it. That is fine. Councilmember Kuali`i: I move to defer. Council Chair Rapozo: Any other discussion before we take the motion to defer? Because there is no discussion after a motion to defer. Councilmember Kaneshiro: Just a quick discussion on compromising. Am I one hundred percent (100%) in agreement with the Resolution? No, but those were the two I was comfortable getting out and I would go with it. If I put out the Resolution, I would have copied the House resolution from 2010. It is a solid, very short, very to the point resolution. But you know, I think I was compromising by just saying I do not like all of these whereas statements, but if you get rid of these two, fine. The intent is what the intent is and that is why it is so hard to be arguing here when I want to vote for the intent, but the devil is in details. We have spent hours arguing on something about corporate profits which has nothing do with intent of this Resolution. So I am ready to vote. Council Chair Rapozo: You are ready to vote? Okay, fifteen (15) whereas statements, I think two (2)...it sounds like Councilmember Kaneshiro has problems with more than two (2), but two (2) was the threshold to get his support and I think we should have taken the opportunity to gain that, but we did not. So with that the motion on the floor is to approve. Councilmember Kuali`i: I move to defer. COW COMMITTEE MEETING 29 JUNE 10, 2015 Council Chair Rapozo: Is there a second? Councilmember Kaneshiro: Second. Councilmember Kuali`i moved to defer Resolution No. 2015-44, Draft 1, as amended to Resolution No. 2015-44, Draft 2, to the June 24, 2015 Committee of the Whole Meeting, seconded by Councilmember Kaneshiro, and carried by the following vote: FOR DEFERRAL: Chock, Kaneshiro, Kuali`i, Rapozo TOTAL— 4, AGAINST DEFERRAL: Hooser, Yukimura TOTAL— 2, EXCUSED & NOT VOTING: Kagawa TOTAL— 1, RECUSED & NOT VOTING: None TOTAL— 0. Council Chair Rapozo: Four (4) ayes. That motion is passed and we will see this on the agenda in two (2) weeks. With that, today's business is concluded. The meetings are adjourned. There being no further business, the meeting was adjourned at 10:50 a.m. Respectfully submitted, a Nib. / Codie K. Yamauc i Council Services Assistant APPROVED at the Committee Meeting held on June 24, 2015: MHAAjA POZ O Chair, Committee of the Whole ATTACHMENT 1 June 10, 2015 FLOOR AMENDMENT Resolution No. 2015-44, Draft 1, Relating To Urging Hawai`i's Congressional Delegation To Address Excessive Campaign Spending By Proposing And Passing Amendments Clarifying That Corporations Are Not People With Constitutional Rights, In Particular Electoral Rights, And That Unlimited Campaign Spending Is Not Free Speech Introduced by: KipuKai Kuali`i 1) Amend Resolution No. 2015-44, Draft 1, by deleting the 8th paragraph as follows: "[WHEREAS, most corporations put profits for shareholders ahead of the greatest good of society while individuals as natural persons have more freedom to balance self-interest and the broader public interest (or to see that their self-interest is intertwined with the broader public interest) when making political decisions; and]" 2) Am6nd Resolution No. 2015-44, Draft 1, by deleting the 14th paragraph as follows: "[WHEREAS, a February 2010 Washington Post-ABC News poll found that eighty percent (80%) of Americans oppose the U.S. Supreme Court Citizens United ruling; and]" (Material to be deleted is bracketed.) ATTACHMENT 2 June 10, 2015 FLOOR AMENDMENT Resolution No. 2015-44, Draft 1, Relating To Urging Hawai`i's Congressional Delegation To Address Excessive Campaign Spending By Proposing And Passing Amendments Clarifying That Corporations Are Not People With Constitutional Rights, In Particular Electoral Rights, And That Unlimited Campaign Spending Is Not Free Speech Introduced by: JoAnn A. Yukimura 1) Amend Resolution No. 2015-44, Draft 1, by amending the 8th paragraph to read as follows: "WHEREAS, most corporations by their legal obligations often put profits for shareholders ahead of the [greatest] good of society; [society while individuals as natural persons have more freedom to balance self-interest and the broader public interest (or to see that their self-interest is intertwined with the broader public interest) when making political decisions;] and" • 0