During day of the caucus scandal hearings, the former head of the Assembly Republican Caucus testified he knew campaigning on state time was illegal, and he took steps to reduce the chances employees would be caught.

CAUCUS INVESTIGATION BRIAN BURKE CHUCK CHVALA Chvala Bio Read Full Criminal Complaint Against Chvala Chvala's Web Site JENSEN Jensen Bio FOTI Foti Bio Foti Web Site LADWIG Ladwig Bio Ladwig Web Site VIDEO Chvala: DA Is Bent On Revenge Chvala Faces Charges

Jason Kratochwill also said it's a judgment call as to what activities were allowed under state statutes.

Kratochwill is the first to testify during the second day of a preliminary hearing for Representative Scott Jensen, Majority Leader Steve Foti and former aide Sherry Schultz.

He testified that campaign work was part of the daily routine at the Assembly Republican Caucus, but he said he banned making up fund-raising letters by the caucus.

He also testified he also moved Schultz and graphic artists so they were not working in the caucus office and talked to Jensen about renting a separate space for them.

Jensen, Foti and Schultz are accused of illegal campaigning on state time.

Jensen Aides Testify Against Former Boss

Assembly Republican leaders and a former aide regularly held meetings in the state Capitol to discuss campaign fund-raising and recruiting legislative candidates, according to testimony Monday.

Former director of the Assembly Republican Caucus Jason Kratochwill said in open court that he regularly attended meetings held weekly during the 2000 campaign in the office of then-Assembly Speaker Scott Jensen.

He said Assembly Majority Leader Steven Foti, Assistant Majority Leader Bonnie Ladwig and Foti aide Sherry Schultz also attended the meetings.

"Campaign staff would come down from races they were working, and they would meet in the ARC, and we would share information about what was going on in the races -- what money you had, what strategies you were utilizing," Kratochwill said.

Kratochwill was one of several witnesses to testify during the first day of a preliminary hearing in which prosecutors are outlining their case against Foti, Jensen and Schultz. The three are accused of using Capitol staff and employees of the taxpayer-funded Assembly.

A former intern and part-time employee for the former speaker also testified that she photocopied campaign checks and wrote thank you notes for donations while on state time.

The preliminary hearing continues today.