Top Tennessee Republicans open to bolstering state’s campaign finance laws – The Tennessean
Tennessee’s campaign finance system was set up nearly three decades ago after a massive corruption probe that led to nearly 80 indictments.
Although there have been some minor changes to the state’s campaign finance system since then, for the most part lawmakers have avoided making wholesale changes to bolster the laws.
But after a judge’s recent ruling that calls into question the effectiveness of the state’s campaign finance system, Tennessee lawmakers could consider making changes.
In separate interviews with The Tennessean, Lt. Gov. Randy McNally and House Speaker Cameron Sexton said they are open to having a discussion about the need for additional legislation to strengthen the state’s campaign finance system.
Gov. Bill Lee said he would be open to such talks, as well.
Although lawmakers in the past have occasionally said some minor changes to the state’s laws might be necessary, there has been little action, leaving a system in place that — in the words of Administrative Law Judge Steve Darnell — is “broad.”
Darnell’s ruling, issued late last week, came in a case involving expelled former lawmaker Jeremy Durham. Darnell said the Williamson County legislator was legally allowed to use donors’ money to pay for, among other things, a handgun permit, provided the weapon was for safety while campaigning or if the issue were part of Durham’s political platform.
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Three recent cases shed light on campaign finances
Darnell’s ruling could give wider latitude for how lawmakers and candidates for public office spend campaign money. It was just the latest news in recent days to highlight legal issues and potential wrongdoing involving campaign finances.
On Monday, Kelsey Ketron — the daughter of Rutherford County Mayor Bill Ketron — was the subject of a grand jury’s 70-plus count indictment for her role in a family-owned insurance business that was under investigation. Included in the indictment were revelations that Kelsey Ketron allegedly stole $65,000 from the state campaign finance account of her father, Bill Ketron.
When he was in the legislature from 2003 to 2018, Bill Ketron regularly used campaign money to pay for car washes, tickets to sporting events and trips overseas.
The campaign accounts of Bill Ketron and former House Speaker Glen Casada, R-Franklin, are currently the subject of audits.
On Tuesday, The Tennessean reported at least three people were interviewed by federal investigators who had questions about how state Sen. Brian Kelsey, R-Germantown, used campaign money during his failed 2016 congressional bid.
Although Kelsey is facing scrutiny for his federal bid for office, he used his state campaign committee in a complicated money trail involving a series of political action committees, a Tennessean investigation found.
McNally, R-Oak Ridge, said he disagreed with Darnell’s ruling, noting the state’s campaign laws explicitly ban purchases for personal purposes. The lieutenant governor said he also spoke with a legislative attorney who thought Darnell made several mistakes in his decision on the Durham case.
Pointing to Durham’s purchase of a handgun carry permit, McNally said the ex-lawmaker could have bought it regardless of his position in public office.
As part of his ruling, Darnell called for Durham’s record-setting $465,000 fine for various campaign finance violations to be reduced by more than 75%. In his ruling, Darnell said Durham should only have to pay $110,000.
Rules for the Registry of Election Finance, which enforces the state’s campaign finance laws, say “an expense which would be incurred by an individual regardless of that person’s candidacy for public office … may not be made from the individual’s campaign funds.”
Overall, McNally said of Darnell’s ruling, “I think … the registry got it right and the judge did not.”
‘Always probably a good time to revisit laws’
He pointed out with the new addition of Bill Young, who recently took over as the executive director of the Bureau of Ethics and Campaign Finance, it might be time to discuss whether any changes to the law are needed.
“I think it’s always probably a good time to revisit laws after any period of time to see if people have found loopholes in them,” said McNally.
Likewise, Sexton, R-Crossville, said he would welcome such discussions.
“I think with anything, there’s always an opportunity to look at it to see if we need to make changes and tweak things based on issues that pop up,” he said.
Here are a few things among the recent issues with the state’s campaign finance system:
- Just 4% of all campaign accounts, including lawmakers and failed candidates, are audited during a two-year cycle.
- No state officials are regularly examining whether lawmakers are using campaign money on the same day they receive a taxpayer-funded allowance for their work in the legislature.
- Lawmakers have near-free reign to provide few details about hundreds of “unitemized” expenditures.
- Lawmakers regularly spend campaign money on items such as cars, cigars, meals and custom suits.
- The state has no prohibitions on how political action committees spend money.
- Lawmakers who face repercussions for violating state law frequently have civil penalties reversed.
In addition, the state’s campaign finance website has not been updated in recent years, making it difficult for users to access information.
Sexton pointed to the need to add additional disclosures of small-dollar expenditures as a possible change to the state’s laws. State law does not require significant disclosure of purchases under $100, although there is wide latitude on how such expenditures are reported.
Aaron McKean, legal counsel for state and local reform with the Washington, D.C.-based Campaign Legal Center, said without such detailed reporting requirements, it can make it harder for voters to adequately know what a candidate might be like once they’re in office.
“Can you be sure that this is a person … that’s responsible with the public’s money?” he said. “Having meaningful disclosure really gives voters that information.”
Lee told reporters Tuesday he hasn’t “looked hard at that issue, but there are a couple of circumstances that are coming to light right now about campaign finances.”
He said the state needs to ensure the state’s campaign finance laws are “tight” and appropriate and that candidates are adhering to the law.
Asked whether such discussions could lead to legislation for the upcoming legislative session, Sexton said, “I don’t think it’s ever too late to look at different reforms.”
The House speaker said he would welcome a semi-regular review of the state’s campaign finance laws to ensure there aren’t any loopholes.
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Reach Joel Ebert at jebert@tennessean.com or 615-772-1681 and on Twitter @joelebert29.
Published 11:21 AM EST Nov 8, 2019
