Thursday, February 26, 2009
By Marc Kovac
COLUMBUS — The Ohio Senate began deliberations Wednesday on legislation that would control candidates’ so-called transition accounts — an issue that was brought to light after an investigation of former Attorney General Marc Dann.
Senate Bill 10, among the Republican-led chamber’s priorities for the session, would cap contributions and institute reporting requirements comparable to other campaign finances, said sponsoring Sen. Chris Widener.
“Unregulated transition accounts create the appearance that contributors and elected officials were attempting to circumvent contribution limits and campaign finance laws,” the Springfield Republican told the Senate’s Government Oversight Committee on Wednesday.
Unlike other campaign finances, transition accounts carry no disclosure requirements, no caps on contributions from individuals or groups and no sunset on when accounts funds must be used.
Widener’s bill would change that by requiring itemized statements of contributions and expenditures, capping contributions to no more than $25,000 and requiring accounts be closed 120 days after they are created.
The accounts could be used for transition and inaugural costs only. Candidates who fail to meet the requirements would face fines from $100 to $25,000.
The legislation corrects many of the shortfalls identified by the state Inspector General after an investigation of Dann’s use of transition account funds, Widener said.
That report noted Dann “made payments from the fund to his wife’s business account, to his personal banking account and to friends for consulting services,” he said. “Even more disturbing, the fund was used long after transition and inaugural activities were over.”
He added, “The payments to [Dann’s] transition fund were not disclosed or subject to regulation, although federal and state election laws otherwise govern contributions made to campaigns and candidates and require contributions to be reported.”
Dann resigned after a scandal that included allegations of sexual harassment against one of his hand-picked managers. Dann has denied criminal wrongdoing in the matter.