Hawthorne Is Subject of State FPPC Investigation

The state Fair Political Practices Commission is opening an inquiry into whether state Transportation Commissioner J.T. (Tom) Hawthorne has a conflict of interest when he votes for highway projects later awarded to customers of his construction equipment business, a spokeswoman confirmed Wednesday.

FPPC spokeswoman Lynn Montgomery said the inquiry is being opened at the behest of State Senate President Pro Tem David A. Roberti (D-Los Angeles), who called for Hawthorne’s resignation last month after learning that the powerful Republican owns the exclusive San Diego County dealership for Caterpillar equipment.

“We are going to review the allegations to determine if they warrant a full-scale investigation,” Montgomery said. “If they do, then it will be assigned to an attorney and investigators.”

A Times analysis revealed that Hawthorne, appointed to the transportation panel by Gov. George Deukmejian, has voted for more than $51.6 million in highway and trolley projects later awarded to his customers.

The figure represents about 92% of all major transportation improvement projects in San Diego County since Hawthorne assumed the post in February, 1984.

Spokesmen for Deukmejian have defended the appointment.

Roberti, who chairs the Senate Rules Committee, which scrutinizes gubernatorial appointments, on Wednesday sent a three-paragraph letter to FPPC Chairman Dan Stanford calling for an investigation.

In the letter, Roberti also questioned whether Hawthorne’s Statement of Economic Interest should have “in some way alerted us to a possible conflict prior to his confirmation to the Senate.”

The statement, which Hawthorne filed as required 30 days before confirmation, shows that Hawthorne had since 1956 owned more than $100,000 in common stock in Hawthorne Machinery Company, which was identified as a Caterpillar dealership.

But the statement only shows that Hawthorne’s interest in the firm is “10% or greater.” It also gives no indication that Hawthorne’s company is the exclusive dealership for Caterpillar equipment in San Diego County.

Hawthorne’s confirmation by Roberti’s committee was unanimous.

Roberti, who was unavailable for comment Wednesday, had said in an earlier interview that Hawthorne’s potential conflict was not obvious to senators during his confirmation hearing.

He said last month that Hawthorne’s business and role on the commission constitutes a conflict “of enormous proportions” that warrants his resignation.

Hawthorne has said he has no intention of stepping down.

State law forbids any public official from taking part in a governmental decision that is likely to result in a financial benefit for him or his customers.

Larry Thomas, Deukmejian’s press secretary, said Hawthorne’s role on the Transportation Commission “does not make for a legal, or even a generalized conflict of interest.”