Geoff Pender

The Clarion-Ledger

After about a year of debate, the Legislature on Wednesday passed a campaign-finance reform measure that would restrict politicians' spending campaign money on personal expenses and provide for some enforcement and oversight by the state Ethics Commission.

"The overall rule on this is common sense," said Senate Elections Chairwoman Sally Doty, R-Brookhaven, author of the original Senate bill. "If an expense is related to your campaign or holding office, it is allowable. If it is a personal expense, it is not."

The passage of the law comes after an ongoing investigative report by The Clarion-Ledger, "Public Office/Private Gain," which illustrated how the state's lax enforcement of campaign finance laws has created a tax-free second income for many Mississippi politicians, mostly funded by special interests.

Senate Bill 2689, in its final form passed Wednesday by the Senate, was a compromise between Senate and House proposals over the last two sessions. It contains a mix of the Senate's tougher restrictions on spending — and what constitutes personal use — and the House's stronger enforcement, to be overseen by the Ethics Commission. Gov. Phil Bryant is expected to sign the bill into law, to take effect Jan. 1.

"Gov. Bryant has always favored transparency and accountability within the state's system of campaign finance," Bryant spokesman Clay Chandler said. "He believes Senate Bill 2689 contains meaningful reforms that will strengthen both, and he looks forward to signing it."

Experts have called Mississippi's lack of rules and transparency on campaign money — and allowing it to be used for personal expenses — "a recipe for ethical disaster" and "legalized bribery," with special-interest money making its way into politicians' pockets after it runs through their campaign accounts. Campaign money is shielded from tax, ethics, bribery and other laws because it is ostensibly to be used for campaigning and records of it are supposed to be open to the public.

Many politicians have sidestepped requirements that they even report campaign expenditures by using credit cards to make purchases, then reporting only the lump-sum payment to the credit card company on their public reports. The new law would require itemization of such purchases.

Mississippi politicians have in recent years spent campaign donations on clothes, cars, groceries, apartments, children's parties, an $800 pair of cowboy boots, taxes, car insurance, investments, payments to themselves or their own companies, an RV, a garage door for a home and trips to Alaska, California, Colorado and Florida, among other places.

The new law prohibits personal use of campaign money, and defines personal use as any "other than expenditures related to gaining, holding or performing functions of public office." It itemizes prohibited personal use including: mortgage, rent or utility payments for any residential property of a candidate or family member, clothing, automobiles, travel expenses not related to a campaign or holding office, admission to entertainment events and non-documented loans.

Lt. Gov. Tate Reeves called the Senate-House compromise bill passed Wednesday "common-sense reform." With Reeves' backing, the Senate last year passed a similar reform measure, but it was killed in the House.

"Supporters of political candidates expect their resources to be spent on political activity, and voters deserve to know that is actually happening," Reeves said.

Last year, House Speaker Philip Gunn said he was surprised by the House — including some of his top lieutenants — killing a campaign finance compromise which he had helped work out with the Senate. He vowed to push reforms through this session, and Gunn had authored the original House version this year.

"The entire Legislature should be commended on doing the right thing by passing this measure," Gunn said Wednesday. "We are expected, by those who elect us, to uphold certain expectations of integrity. This legislation effectively outlines the proper procedures for all elected officials and candidates in the handling and reporting of campaign contributions."

The new regulations won't kick in until Jan. 1, and campaign money collected by politicians before then is exempt from the new rules. Under the measure, the Ethics Commission will charge those in violation of the personal use rules with a misdemeanor, punishable by a fine up to $1,000 and an assessment equal to misappropriated funds.

Senate Bill 2689 passed the Senate with only one no vote, from Sen. Juan Barnett, D-Heidelberg.

State Rep. Hank Zuber III, R-Ocean Springs, for years has offered campaign finance reform measures, including a prohibition on politicians "cashing out" their campaign funds when they leave office — something the federal government banned years ago. Zuber was usually a lone voice on the issue and his measures died in committee without a vote.

Zuber called Wednesday's passage of SB2689 a "step towards regaining the confidence of the people in state government."

Senate Elections Vice Chairman David Blount, D-Jackson, who authored his own campaign finance measure last year and has lobbied for passage of reform, called Wednesday's passage "a major accomplishment for the session, and a strong bipartisan effort."

"We are public servants," Zuber said. "We should not be able to have a golden parachute or become enriched because we hold public office, nor should public servants be able to use campaign contributions on personal expenses. That invites undue influence from special interests."

Contact Geoff Pender at 601-961-7266 or gpender@gannett.com . Follow him on Twitter .