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Lawmakers secretly raise big bucks

They set up special committees and unnamed members pour in the dough. And, under state law, it's all legal.

By STEVE BOUSQUET
Published September 28, 2003

TALLAHASSEE - If state Sen. Ken Pruitt was running for re-election, he could raise no more than $500 per check.

But in late June, a check for $50,000 was deposited into a fund Pruitt uses to hire consultants and curry favor with political allies as he maneuvers to become Senate president.

The Port St. Lucie Republican, one of the Senate's most powerful leaders, kept the identity of the donor secret. The money was listed merely as membership "dues" to his fund, Floridians for a Brighter Future.

After a written request by the St. Petersburg Times, Pruitt revealed that the $50,000 check came from the Academy of Florida Trial Lawyers. The donation was made smack in the middle of the legislative fight over medical malpractice.

Pruitt has raised $613,000 this way.

He's not alone.

In the past four years, more than two dozen Florida lawmakers have raised a total of $3-million in unlimited donations from special interests with a heavy stake in legislation, a Times analysis found. The source of more than $1-million of it remains secret, even to the Internal Revenue Service, which requires identification of donors.

The obscure fundraising committees provide a back door for lobbyists, businesses and interest groups to influence Florida lawmakers. Experts say no other state allows this.

Some examples:

Rep. Allan Bense, R-Panama City, who will be designated the next House speaker on Tuesday, raised $469,000. He disclosed all donors, including $75,000 from AT&T, BellSouth, Sprint and Verizon. The companies persuaded lawmakers this year to pass a bill consumer groups say will lead to the biggest phone rate increase in Florida history.

Freshman Sen. Mike Bennett, R-Bradenton, created two funds, including the Committee Supporting Utilities and Competitive Commerce. He chairs a Senate committee that championed the phone rate bill. The newly formed groups have not raised much money yet.

Rep. Marco Rubio, R-Coral Gables, the House majority leader who is campaigning for speaker, has raised $68,500. His fund received three $5,000 checks and another for $7,500 during the 2003 session when members are banned from raising money for their own campaigns. Asked why the names are secret, Rubio said: "It makes people feel comfortable."

Like Pruitt, most of these lawmakers hope to rise to the top of their respective chambers, so they raise money to win the support of their colleagues. The money covers travel, meals, cell phones, computers, political consulting, campaign contributions, even car repairs and dry cleaning.

Sometimes it's unclear what the money is for.

Rep. Johnnie Byrd, R-Plant City, became speaker last year with the help of his Committee for Responsible Government. Byrd is still using the fund as speaker. He reimbursed himself more than $14,000 earlier this year for travel, literature, computer software, office supplies, photos and phone bills.

"It's absurd'

Unlike many of his colleagues, Byrd voluntarily disclosed every donation on state campaign reports.

But state law doesn't require full disclosure.

Republican Sen. Tom Lee of Brandon, who is set to become Senate president in 2004 without the help of his own special fund, said it is wrong for elected officials to control stashes of secret cash.

"Our first job in public service is to enhance the public trust, and these clandestine fundraising vehicles do nothing to enhance the public trust," Lee said. He wants to change state law to require full disclosure of all contributions.

The use of these so-called committees of continuing existence has mushroomed even as Congress banned the use of unlimited contributions to national political parties.

Lawmakers are exploiting a 30-year-old state law designed to let trade groups with hundreds of members avoid the burden of listing every donation individually.

Legislators record donors as gold, silver and platinum members, as if the committees were exclusive clubs. Florida law requires the committees to collect at least 25 percent of their money in membership dues. Donors do not have to be identified.

"These were never intended to be used as a slush fund for potential leaders," said Ben Wilcox of Common Cause. "It's absurd."

The biggest donors who have been identified include road builders, telephone companies, agricultural interests, insurance companies and others with a stake in legislation.

Competing for speaker or Senate president is an expensive marathon, made more difficult by Florida's size and diversity.

Week after week, the candidates court their fellow lawmakers by eating Cuban food in Miami, fishing and hunting in the Panhandle, and attending an endless array of football games, golf tournaments, fundraisers and dinners.

Many committees' names sound alike. Florida Committee for Conservative Leadership. Floridians for Effective Government. Committee to Build Florida Leadership.

Some lawmakers list relatives or supporters as officers. Even some contributors can't be sure where their money is going.

"I am going to stop giving blindly to these groups. It's getting to be very confusing as to who's on first," said Ron Book, a lobbyist and big contributor to Florida campaigns.

Promoting causes

Pruitt formed Floridians for a Brighter Future two years ago to promote his bid for Senate president and to defend his other favorite cause, the Bright Futures scholarship program. His fund has raised more money than any other.

"I am clearly frustrated by the apathy among legislators toward education, and mine is a warning signal to hopefully get senators and others elected who will advocate for education," Pruitt said.

The trial lawyers' $50,000 donation, the biggest single contribution to any of the special funds, was pledged at a June 27 golf tournament in Port St. Lucie.

It came just weeks before the Senate took sworn testimony about medical malpractice. The hearings changed the course of the debate by showing what trial lawyers had argued: capping pain and suffering awards would not guarantee lower malpractice insurance rates.

There was "no relationship" between the donation and the need to keep the Senate leadership on the lawyers' side, said Scott Carruthers, executive director of the trial lawyers group.

"We have been longtime supporters of Ken," Carruthers said. "We support his group that recruits and supports candidates who promote better education policy."

Pruitt initially said he would disclose the names of all 88 secret donors to his fund. He identified 20 big-money donors this year, including Blue Cross-Blue Shield ($20,000 in March) and Calder Race Course ($5,000 in February). Then he stopped. "I'm ready to take the hits," Pruitt said in an e-mail.

An assistant to Pruitt said it would take too long to track down all the information.

While Pruitt has criticized House members for raising money during this year's series of special sessions, some of the biggest checks to his fund were deposited while the Legislature was in regular session.

"He's like the guide'

Lawmakers can't use these committees to raise money for their re-election campaigns. But almost anything else is fair game.

The state Division of Elections said in 1990 that the committees can spend their money for "travel and related expenses," as long as the members are engaged in activities described in the group's bylaws.

Legislators wrote the bylaws as broadly as possible.

The bylaws of Pruitt's committee, for example, state that the fund supports "better educational opportunities, growth of a healthy economy, protecting our lakes, rivers and environment, lower taxes, less government and more personal freedom."

Pruitt's fund has spent $230,000 on political consulting work since May 2001. He said it was aimed at re-electing Republican senators and saving Bright Futures.

"I am going to take care of my members," Pruitt said.

Pruitt said he needs the money to help re-elect Republican senators, some of whom were threatened with retribution by an aide to Bush during the malpractice fight. Because the GOP cannot take sides in party primaries, Pruitt said he needs the money to help re-elect senators loyal to him.

Watchdogs such as Common Cause say these funds abuse the political system. But some fellow lawmakers view Pruitt's fundraising prowess with admiration.

"He's like the guide for everyone else as to how to do this," said Sen. Lee Constantine, R-Altamonte Springs, who is angling to become Senate president in 2008, after Pruitt.

Constantine's mother is chairwoman of his Citizens for a Greater Florida, formed in June.

Other lawmakers have not named donors and make no apologies.

Rep. Donna Clarke of Sarasota formed the Committee to Build Florida Leadership in February and raised $12,500 in undisclosed contributions. Most of the money is recorded in checks of $2,500 on June 5, between two special legislative sessions.

Clarke wants to protect fellow Republicans who feel pressure to take sides in a future race for speaker, and she doesn't want them to feel pressured.

But even Pruitt bemoans the explosion of these committees.

"What they're doing is, they're ruining it for those who are in actual leadership," Pruitt said. "Everybody is hitting everybody up for very large sums of money. Eventually these CCEs are going to run their course."

- Times staff writer Matthew Waite and researcher Deirdre Morrow contributed to this report.

[Last modified September 28, 2003, 02:04:08]


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