Shelley Says He’ll Testify Before Panel

With the threat of a subpoena looming, California Secretary of State Kevin Shelley agreed Thursday to testify voluntarily before a legislative committee examining what auditors concluded was Shelley’s mismanagement of $46 million in federal election funds.

Assemblywoman Nicole Parra (D-Hanford) was poised to seek a subpoena to compel the elections chief to testify before the Joint Legislative Audits Committee, which she heads.

But five minutes before Parra’s 10 a.m. deadline, Shelley faxed a one-sentence letter agreeing to testify at the committee’s next hearing on Feb. 3. “I accept your invitation ... to testify ... and look forward to doing so,” Shelley wrote.

The appearance of a state constitutional officer before such a hearing is rare in the Capitol. Former Insurance Commissioner Chuck Quackenbush resigned after hearings four years ago into the alleged channeling of insurance company money into a nonprofit group.

Parra said at a news conference that Shelley called her Thursday and thanked her for giving him extra time to consult with his attorneys before deciding to testify. She said, in response to questions, that there would be no ground rules for Shelley’s appearance, that he would testify under oath and that she could call him for additional testimony after the committee had heard from other witnesses.

At the committee’s first hearing Monday, Shelley sent a representative to testify about the state’s disbursement of Help America Vote Act funds. But Parra said that there were a number of questions that Shelley’s Help America Vote Act coordinator, Tony Miller, was unable to answer, such as: Who ordered staff members paid with the program’s funds to stop submitting time cards? And what was Shelley’s response when he became aware that some program staff members were attending partisan events?

The committee vice chairman, Sen. Charles Poochigian (R-Fresno), said he wants to ask Shelley about the process for selecting consultants, negotiating payments and controlling contractors. Although some disclosures have been “alarming,” Poochigian said, “we need to be judicious and not jump to conclusions.”

Originally, Parra set a deadline of Tuesday afternoon for Shelley to agree to testify. But she extended it after he said that he needed time to talk with his attorneys because of other pending investigations.

Federal and state authorities are investigating more than $100,000 in campaign contributions to Shelley from people and companies who were paid from a state grant awarded a few years ago to a San Francisco community center with Shelley’s help. And state personnel officials are examining Shelley’s alleged abuse of employees.

The Bureau of State Audits last month concluded that Shelley’s office circumvented state contracting rules and failed to properly monitor its Help America Vote Act spending. Among other things, contractors were paid to write speeches for Shelley, a Democrat, and to attend political events, such as a fundraiser for Democrat Sen. John Kerry, a presidential candidate.

California stands to receive $350 million from the program, which Congress adopted to avoid problems like those in the 2000 presidential election in Florida.