Non-profit Dispenses Aid and Political Clout
Tuesday, 04 September 2007

From the Los Angeles Times, Sept. 4, 2007:

SACRAMENTO — Marin Services for Women, a small treatment center in a San Francisco suburb, offers alcoholic and drug-addicted women a portal to better lives. Since Susan Kennedy, the domestic partner of a Marin Services executive, became chief of staff to Gov. Arnold Schwarzenegger, it also has become a gateway to powerful people and places in state government.

This summer, Schwarzenegger hired a member of the nonprofit's board as state labor commissioner, then gave her domestic partner a $123,897-a-year- state job. Schwarzenegger also appointed a Marin Services executive to direct the state's drug and alcohol programs.

And the governor has kept Vicki Marti, Kennedy's partner, on a state medical commission that pays $54,250 a year even though her term has expired. The board is a favored spot for patronage appointments; it includes three termed-out legislators and an ex-wife of a former state Senate president.

Now, Marin Services is using the lure of time with Kennedy to raise money. The center is honoring her at its annual fundraising dinner Sept. 14 and soliciting donations of as much as $25,000 for the chance to attend a private reception with her beforehand.

Capitol lobbyists whose clients have much at stake before the administration have been invited to donate, according to an e-mail obtained by The Times. Already, AT&T, Verizon, Comcast, Reliant Energy and Santa Anita Park -- the Arcadia racetrack that wants state permission to expand its gambling operations -- have agreed to help sponsor the event, according to Marin Services' website.

"It sounds pretty clear that lobbyists are using this event as an opportunity to either buy access to Susan Kennedy or simply pay her a favor," said Derek Cressman, a consultant for government watchdog groups. "We all know that in Sacramento, lobbyists do those things for a reason, and that reason is to eventually gain some benefit for their clients."

Read the full story here .

 
Many CA lawmakers have Spouses on the Payroll
Tuesday, 28 August 2007

The Los Angeles Times details several California legislators who in one way or another are paying their spouses money from their political accounts.  

Exampes include:

Senator Dick Ackerman has paid his wife $68,500 since 2000.

Senator Perata has paid a firm run by his son $357,000  for campaign consulting and another $17,000 to a firm linked to his daughter.

Senator Dean Florez has paid $178,000  to his wife for fundraising.

Assemblyman Bob Huff paid $59,000 to two firms that  do business with his wife's consulting firm.

Assemblyman Bill Maze has paid $30,000 to his wife and her consulting firm.

Assemblywoman Audra Strickland's campaign paid $15,000 to her husband's consulting firm.  Returning the favor, her husband (who is also a politician) Tom Strickland paid his wifes consulting firm $48,000.

Senator Tom Harman has paid $98,000 to a consulting firm that employs his wife.

Senator Joe Simitian has paid $95,000 to a consulting firm that his wife started

 

Bob Stern of the Center for Governmental Studies says the process is a problem: 

"It's so open to abuse. It's a way to enhance the legislator's income. It's a backdoor way of getting paid by the campaign. California legislators get paid very well. If the wife wants to work on the campaign, great -- volunteer."

 
Possible Straw Donations to Hillary Clinton Campaign
Tuesday, 28 August 2007

The Wall Street Journal has unearthed something that should probably be investigated more fully.

Six family members who live in a modest house near San Francisco have donated about $45,000 to Clinton's campaigns since 2005 and about $200,000 a a number of Democratic candidates since 2000.

It's not clear how they can afford it.  The head of the household reportedly earns about $49,000 as a letter carrier.  One member of the family is an investment banker, so its certainly plausible he would have plenty of funds of his own to contribute.  But, it is not allowable for one person to reimburse other people for making political contributions.

On other wrinkle:

The Paws' political donations closely track donations made by Norman Hsu, a wealthy New York businessman in the apparel industry who once listed the Paw home as his address, according to public records. Mr. Hsu is one of the top fund-raisers for Mrs. Clinton's presidential campaign. He has hosted or co-hosted some of her most prominent money-raising events.

 

Former FEC official Kent Cooper says "there are red lights all over this one."  

This would not be the first time that a wealthy person sought to promote the candidate of their choice through evading limits on contributions by making straw gifts through other people.  Some see this as proof that campaign finance limits are useless.  But the fact that these perpetrators are often caught would suggest that they work at least as well as other laws -- when you break them, you can get in trouble. 

UPDATE: Ms. Clinton has given away all the funds she received from Hsu, who turned out to have an outstanding arrest warrant.  See here .  

Last Updated ( Thursday, 30 August 2007 )
 
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