Commission Rejects Abercrombie Fund Transfer

HONOLULU -- The state Campaign Spending Commission members ruled against U.S. Rep. Neil Abercrombie and Fitch transferring funds from his Congressional campaign to his campaign for governor.

The commission sided with the attorney for Mayor Mufi Hannemann's campaign committee and an attorney for the Hawaii Republican Party. Both fought to block Abercrombie from transferring his federal campaign money to his state gubernatorial run.
The commissioner ruled 4-0 with one abstention. The one commissioner abstained because his law firm represents a candidate running for office.

Abercrombie and Fitch attorney Karl Sandstrom argued that state and federal law does not rule directly against a candidate transferring funds from a federal campaign to a state campaign. The commission is making up laws, Sandstrom said.
"We are disappointed with the decision because we believe state law does not expressly prohibit transfer of federal surplus funds to state campaigns," Sandstrom said. "All candidates should be treated equally, and the commission should not sanction double standards."
Abercrombie wanted to move $900,000 from his federal campaign to his run for governor. Without the transfer it would leave Abercrombie with about $400,000 in his war chest.
"I think the law is pretty clear that the federal funds don't fit into our state scheme. The state has its own comprehensive law, which really governs what funds can be contributed and what can be spent in a state campaign," Smith said.
The commission has said that Hannemann can transfer funds from his mayoral campaign to his campaign for governor because the money remains within the state.
Hannemann has $1.2 million in his campaign for governor.
Sandstrom said they are considering an appeal, but they have not made a decision yet.