Republicans again kill limits on PAC transfers

By ERIK SCHELZIG, WKRN.com
Associated Press Writer
April 27, 2007

NASHVILLE, Tenn.

Senate Republicans on Thursday thwarted an attempt by Democrats to resurrect a measure to limit transfers between political campaign committees.

The PAC-to-PAC transfer proposal sponsored by Sen. Joe Haynes had previously been defeated in a Senate committee. But the Goodlettsville Democrat said the proposal was too important to let die this year, so he tried to append it to another campaign finance bill that came to a vote on the Senate floor.

"There are many instances, not one, but several, where if you maxed out on giving money, then you funneled it through another PAC until you got it to where it had to go," Haynes said.

Senate Speaker Ron Ramsey called Democrats' characterization of the law as a loophole "the most ridiculous statement I ever heard."

"The law is as plain as the nose on your face. As long as you follow it and don't direct money when you contribute to a PAC, it's perfectly legal and should be legal," said Ramsey, R-Blountville.

Ramsey said the current law provides no specific advantage to either party.

Senate Republicans said that it was unfair for Haynes to want to limit transfers between all PACs except those controlled by political parties or caucuses.

"To sayit's not OK for certain individuals, and not for certain political parties, smacks of hypocrisy," said Sen. Jamie Woodson, R-Knoxville.

Haynes disagreed.

"There's a huge distinction," he said. "Caucuses don't vote, parties don't vote. We vote."

Haynes proposed a $7,500 cap on transfers between PACs, arguing that the current law allows more money to reach candidates even after a committee reaches its $15,000 contribution limit.

All 16 Senate Republicans voted to kill Haynes' proposal, which was supported by 12 Democrats and one independent.

Senate Democratic Leader Jim Kyle, of Memphis, said the proposal would "close a loophole,enable enforcement of the law and prohibit money laundering."

Sen. Paul Stanley, R-Memphis, bristled at Kyle's characterization of the transfers as "laundering" as implying the campaign funds are somehow illicit.

"They are being moved and transferred in a legal manner," Stanley said.

If Haynes' proposal had become law, it would have limited PACs transfers like the recent ones where RAAMPAC, the committee controlled Ramsey, gave large amounts of cash to another committee called SALT PAC.

RAAMPAC gave $25,000 to SALT PAC, or 78 percent of the total that the committee controlled by former state GOP chairman John "Chip" Saltsman spent inTennessee last year. It also gave the committee $15,000 in 2004.

RAAMPAC gave the maximum of $15,000 to each of three candidates in the closest races of the 2004 and 2006 cycles, including to current Republican Sens. Bill Ketron of Murfreesboro, Jim Tracy of Shelbyville, Mae Beavers of Mt. Juliet and Diane Black of Gallatin.

Ramsey's PAC then gave money to SALT PAC, which then gave the same candidates more money.

Officials with both PACs said they followed state laws since there was no explicit coordination between the two committees. But Ramsey acknowledged Thursday that he could calculate where SALT PAC would spend the money it got from hiscommittee.

"That's called politics," he said.

Ramsey said he is not a supporter of restrictions on political contributions.

"Limits are just arbitrary," he said. "Full disclosure is where I've always been. I want to tell you where my money came from and where it went to, and let the public decide."

Haynes said changes are necessary to encourage "good government."

"It's not good that we let the public think that our influence can be bought, and what we do here can be bought by special interests," he said.