1 SENATE/HOUSE OF REPRESENTATIVES 2 THE 21ST LEGISLATURE 3 INTERIM OF 2002 4 5 6 7 8 9 JOINT SENATE-HOUSE INVESTIGATIVE COMMITTEE HEARING 10 JULY 18, 2002 11 12 13 14 Taken at the State Capitol, 415 South Beretania, 15 Conference Room 325, Honolulu, Hawaii, commencing at 16 9:08 a.m. on Thursday, July 18, 2002. 17 18 19 20 BEFORE: SHIRLEY L. KEYS, RPR, CM, CSR 383 21 Notary Public, State of Hawaii 22 23 24 25 Page 1 1 APPEARANCES: 2 3 Senate-House Investigative Committee: 4 Co-Chair Senator Colleen Hanabusa 5 Co-Chair Representative Scott Saiki 6 Vice-Chair Representative Blake Oshiro 7 Representative Ken Ito 8 Representative Bertha Kawakami 9 Representative Bertha Leong 10 Representative Barbara Marumoto 11 Senator Norman Sakamoto 12 Senator Sam Slom 13 14 Also Present: 15 Special Counsel James Kawashima 16 17 18 19 20 21 22 23 24 25 Page 2 1 CO-CHAIR REPRESENTATIVE SAIKI: Good 2 morning, members. We'd like to convene our Joint 3 Senate/House Investigative Felix Committee. We will 4 begin with roll call. 5 CO-CHAIR SENATOR HANABUSA: Co-Chair 6 Saiki? 7 CO-CHAIR REPRESENTATIVE SAIKI: 8 Present. 9 CO-CHAIR SENATOR HANABUSA: Vice-Chair 10 Kokubun is excused. Vice-Chair Oshiro? 11 VICE-CHAIR REPRESENTATIVE OSHIRO: 12 Here. 13 CO-CHAIR SENATOR HANABUSA: Senator 14 Buen is excused. Representative Ito? 15 REPRESENTATIVE ITO: Here. 16 CO-CHAIR SENATOR HANABUSA: 17 Representative Kawakami is excused. Representative 18 Leong? 19 REPRESENTATIVE LEONG: Here. 20 CO-CHAIR SENATOR HANABUSA: 21 Representative Matsuura? I mean -- sorry, Representative 22 Marumoto? 23 REPRESENTATIVE MARUMOTO: Here. 24 CO-CHAIR SENATOR HANABUSA: Senator 25 Matsuura is excused. Senator Sakamoto? Page 3 1 SENATOR SAKAMOTO: Yes. 2 CO-CHAIR SENATOR HANABUSA: Senator 3 Slom? 4 SENATOR SLOM: Here. 5 CO-CHAIR SENATOR HANABUSA: Hanabusa is 6 here. We have quorum. 7 CO-CHAIR REPRESENTATIVE SAIKI: Thank 8 you, members. The purpose of this morning's session is 9 to convene in the executive session to receive an update 10 from our counsel from the Attorney General's office and 11 from the legislative auditor regarding the Federal Court 12 proceedings and the status of our investigation. 13 The second purpose of our session is to 14 consider the possibility of issuing further subpoenas, so 15 with that, co-chairs would like to recommend that we 16 convene in executive session. 17 Is there any discussion? If not, we'll 18 take a roll call vote. 19 CO-CHAIR SENATOR HANABUSA: Co-Chair 20 Saiki? 21 CO-CHAIR REPRESENTATIVE SAIKI: Yes. 22 CO-CHAIR SENATOR HANABUSA: Vice-Chair 23 Oshiro? 24 VICE-CHAIR REPRESENTATIVE OSHIRO: Yes. 25 CO-CHAIR SENATOR HANABUSA: Page 4 1 Representative Ito? 2 REPRESENTATIVE ITO: Yes. 3 CO-CHAIR SENATOR HANABUSA: 4 Representative Leong? 5 REPRESENTATIVE LEONG: Yes. 6 CO-CHAIR SENATOR HANABUSA: 7 Representative Marumoto? 8 REPRESENTATIVE MARUMOTO: Here. Yes. 9 CO-CHAIR SENATOR HANABUSA: Senator 10 Sakamoto? 11 SENATOR SAKAMOTO: Yes. 12 CO-CHAIR SENATOR HANABUSA: Senator 13 Slom? 14 SENATOR SLOM: Yes. 15 CO-CHAIR SENATOR HANABUSA: Motion is 16 carried. 17 CO-CHAIR REPRESENTATIVE SAIKI: Okay, 18 thank you, members. We'll convene our executive session 19 next door and we'll return to our public hearing in this 20 room in approximately 45 minutes. Recess. 21 (Recess.) 22 CO-CHAIR REPRESENTATIVE SAIKI: Thank, 23 you, members. We'd like to reconvene our hearing. 24 After discussions in executive session, 25 co-chairs are prepared to make three recommendations for Page 5 1 the committee's authorization this morning. The first 2 deals with the motion for reconsideration that was filed 3 on December 17, 2001 relating to the subpoena that this 4 committee issued on Judith Schrag. 5 Just for edification, this committee 6 authorized and served the subpoena on Dr. Judith Schrag, 7 who's a member of the technical advisory panel, on 8 September 18, 2001. On September 27, Dr. Schrag 9 requested an accommodation from this committee in terms 10 of the timing of the -- of her hearing date before this 11 committee. This committee did indicate to her that we 12 would accommodate her schedule. 13 On October 25, the US Attorney's Office 14 then filed a motion to quash the subpoena that we had 15 issued on Dr. Schrag, and on October 31, the Federal 16 Court granted that motion. They granted that motion. 17 The Federal Court also referred the matter to the 18 magistrate for negotiations between the parties to work 19 out an agreement on how to handle the subpoena and to 20 define the scope of the subpoena. 21 We have learned in the past two weeks 22 that negotiations concerning this subpoena have broken 23 down and that the motion for reconsideration that this 24 committee had filed is now pending before the court, and 25 given this information, the court judge would like to Page 6 1 recommend that we authorize our attorneys to take all 2 appropriate action to represent this committee in the 3 proceedings dealing with the motion for reconsideration. 4 Is there any discussion? If not, we'll 5 take the vote. 6 CO-CHAIR SENATOR HANABUSA: Okay. 7 Motion before the committee is to take all appropriate 8 action in the matter of the motion for reconsideration of 9 Judith Schrag's subpoena, which was filed by this Joint 10 Senate/House Investigative Committee to investigate the 11 State's efforts to comply with the Felix Consent Decree. 12 Co-Chair Saiki? 13 CO-CHAIR REPRESENTATIVE SAIKI: Aye. 14 CO-CHAIR SENATOR HANABUSA: Vice-Chair 15 Oshiro? 16 VICE-CHAIR REPRESENTATIVE OSHIRO: Aye. 17 CO-CHAIR SENATOR HANABUSA: 18 Representative Ito? 19 REPRESENTATIVE ITO: Aye. 20 CO-CHAIR SENATOR HANABUSA: 21 Representative Kawakami? 22 REPRESENTATIVE KAWAKAMI: Aye. 23 CO-CHAIR SENATOR HANABUSA: 24 Representative Leong? 25 REPRESENTATIVE LEONG: Aye. Page 7 1 CO-CHAIR SENATOR HANABUSA: 2 Representative Marumoto? 3 REPRESENTATIVE MARUMOTO: Aye. 4 CO-CHAIR SENATOR HANABUSA: Senator 5 Slom? 6 SENATOR SLOM: Aye. 7 CO-CHAIR SENATOR HANABUSA: Motion is 8 carried. 9 CO-CHAIR REPRESENTATIVE SAIKI: Okay. 10 Thank you, members. 11 Members, the second issue that we'd 12 like to address is the issue of issuing further subpoenas 13 for investigation. At this point the committee would 14 like to focus on some matters dealing with the Department 15 of Health's management of the Felix Consent Decree. 16 With that, co-chairs would like to 17 recommend that we authorize subpoenas to be issued to the 18 following individuals, all from the Department of Health: 19 Doug Miller, Alton Tamashiro, David Drews, Leonard 20 Batungbacal, Patricia Harnish, Keli Acquaro, Sharon 21 Tomas, Virginia Shaw, Mary Brogan, Cheryl Lamb, Jeanne 22 Miller, Joy Domingues, Carol Matsuoka, Kuulei Wilton and 23 Nona Meyers. 24 Is there any discussion? If not, we'll 25 take the vote. Page 8 1 CO-CHAIR SENATOR HANABUSA: Members, 2 the motion before us was the issuance of the subpoenas as 3 read by Co-Chair Saiki. Co-Chair Saiki? 4 CO-CHAIR REPRESENTATIVE SAIKI: Aye. 5 CO-CHAIR SENATOR HANABUSA: Vice-Chair 6 Oshiro? 7 VICE-CHAIR REPRESENTATIVE OSHIRO: Aye. 8 CO-CHAIR SENATOR HANABUSA: 9 Representative Ito? 10 REPRESENTATIVE ITO: Aye. 11 CO-CHAIR SENATOR HANABUSA: 12 Representative Kawakami? 13 REPRESENTATIVE KAWAKAMI: Aye. 14 CO-CHAIR SENATOR HANABUSA: 15 Representative Leong? 16 REPRESENTATIVE LEONG: Aye. 17 CO-CHAIR SENATOR HANABUSA: 18 Representative Marumoto? 19 REPRESENTATIVE MARUMOTO: Aye. 20 CO-CHAIR SENATOR HANABUSA: Senator 21 Slom? 22 SENATOR SLOM: Aye. 23 CO-CHAIR SENATOR HANABUSA: Co-Chair 24 Hanabusa, aye. Matter carries. 25 CO-CHAIR REPRESENTATIVE SAIKI: Thank Page 9 1 you, members. 2 The final item this morning deals with 3 another motion that was filed by plaintiffs' attorneys in 4 the Felix litigation, and this was a motion for sanctions 5 against the attorneys in the case. Specifically the 6 issue that was raised in this motion was whether or not 7 the Attorney General's office is under a conflict of 8 interest in its representation of the various parties in 9 this case. 10 The co-chairs would like to recommend 11 that we authorize our attorneys to take all appropriate 12 action to represent the committee in the proceedings 13 dealing with this motion. 14 Is there any discussion? If not, we'll 15 take the vote. 16 CO-CHAIR SENATOR HANABUSA: Motion 17 before the committee is to take all appropriate action -- 18 directing the attorneys to take all appropriate action in 19 motions for sanctions presently pending in the Federal 20 District Court. Vice-Chair Saiki? 21 CO-CHAIR REPRESENTATIVE SAIKI: Aye. 22 CO-CHAIR SENATOR HANABUSA: I mean -- 23 sorry, Co-Chair Saiki? 24 CO-CHAIR REPRESENTATIVE SAIKI: Aye. 25 CO-CHAIR SENATOR HANABUSA: Vice-Chair Page 10 1 Oshiro? 2 VICE-CHAIR REPRESENTATIVE OSHIRO: Aye. 3 CO-CHAIR SENATOR HANABUSA: 4 Representative Ito? 5 REPRESENTATIVE ITO: Aye. 6 CO-CHAIR SENATOR HANABUSA: 7 Representative Kawakami? 8 REPRESENTATIVE KAWAKAMI: Aye. 9 CO-CHAIR SENATOR HANABUSA: 10 Representative Leong? 11 REPRESENTATIVE LEONG: Aye. 12 CO-CHAIR SENATOR HANABUSA: 13 Representative Marumoto? 14 REPRESENTATIVE MARUMOTO: Aye. 15 CO-CHAIR SENATOR HANABUSA: Senator 16 Slom? 17 SENATOR SLOM: Aye. 18 CO-CHAIR SENATOR HANABUSA: Matter 19 carries. 20 CO-CHAIR REPRESENTATIVE SAIKI: Thank 21 you, members. I believe there are no other matters 22 before this committee, so we'll adjourn. Thank you. 23 (Hearing concluded at 10:24 a.m.) Page 11 1 C E R T I F I C A T E 2 STATE OF HAWAII ) 3 ) SS. 4 CITY AND COUNTY OF HONOLULU ) 5 I, SHIRLEY L. KEYS, Notary Public, State of 6 Hawaii, do hereby certify: 7 That the hearing was taken down by me in 8 machine shorthand and was thereafter reduced to 9 typewriting under my supervision; that the foregoing 10 represents to the best of my ability, a true and correct 11 transcript of the proceedings had in the foregoing 12 matter. 13 I further certify that I am not an attorney 14 for any of the parties hereto, nor in any way concerned 15 with the cause. 16 DATED this ______ day of _____________, 2002, 17 in Honolulu, Hawaii. 18 ______________________________ SHIRLEY L. KEYS, CSR 383 19 Notary Public, State of Hawaii My Commission Exp. May 19, 2003 Page 12