Public Advocating Ethics Reform in Legislature

Watch this Eyewitness News Special Report By Clicking the Video on the leftBruce Lindsay, John Daley, and Richard Piatt Reporting

Here's an issue Utahns consistently say they're concerned about: the influence of special interests on elected officials. Utah got a "D-" and an "F" in two recent national studies on campaign finance reform, as the only state which allows corporate contributions and has no contribution limit.

An exclusive poll by Survey USA for Eyewitness News asked Utahns to ascribe a level of importance, on a scale of one to ten, of certain issues. Nearly a third gave campaign finance reform an 8, 9 or 10, ranking it as very important.

Those in favor of campaign finance reform say special interests have too much influence, while those opposed say access to public officials should not be unfairly restricted.

Last November, House Speaker Greg Curtis raised more than 300-thousand dollars, which appears to have shattered the all time record amount for state lawmakers. Almost all of it came from companies doing business on Capitol Hill.

In November, voters headed to the polls, and in Sandy they nearly delivered a stunning upset.

Rep. Greg Curtis (R), House Speaker: "It's a lot closer than I've ever had one before. But I'm going to work with my constituents and keep moving forward."

Representative Greg Curtis won, in a recount, by just 20 votes.

It's all the more surprising when you consider this number: 308-thousand dollars, the record amount of campaign money he raised which was 10 times more than his Democratic opponent.

Money Raised (Source: Utah.gov)

• Greg Curtis: $308,578
• Jay Seegmiller: $28,856

Residents in their district were flooded with calls and literature from the GOP incumbent who spent more than 10 thousand dollars in the final days after internal polls showed him behind.

Jay Seegmiller (D), Candidate for Utah House: "When you have that kind of money you can certainly put your issues out there more effectively than someone who doesn't have that kind of money."

We crunched the numbers from the Speaker's campaign filings.

Money Raised by Greg Curtis (Source: Deseret Morning News):

• Health-care Industry: $50,410
• Financial Industry: $47,050
• Real Estate: $20,881
• Lobbyists/Lawyers: $12,400
• Beer/Alcohol: $4,000
• Oil Industry: $3,200

Almost all of his money came from special interests, more than any other lawmaker from health care, financial services, real estate, lobbyists alcohol and oil.

He got money from 31 states, most of it from big corporations like Annheuser Busch, Wal-Mart and PhrMA. Out-of-state cash added up to 95 thousand dollars, 31% of his total.

Individual Sandy Contributors (Source: Utah.gov)

• 17 people, $4,135, 1.3%

Like an increasing number of political races, a miniscule amount, just one percent of the money, came from individual hometown residents, only 17 people listed out of 250 contributors.

Jordan Tanner, former GOP lawmaker from Provo, who unsuccessfully spent years fighting for campaign reform, says money buys access.

Jordan Tanner, Former Lawmaker: "And if you have access to a legislator, then that means influence to a legislator."

U of U finance professor Michael Cooper recently completed an extensive study of federal races and found a direct link between campaign contributions and a corporation's stock price.

Michael Cooper, Professor of Finance, Univ. of Utah: "The bottom line thing is that the more candidates a firm supports, the better their stock price is the next year."

We discovered an interesting pattern in the current political landscape involving lobbyists and corporate contributions to the favored politicians. In Curtis's case, such generosity occurred on the same day.

Same Day Contributions, December 28, 2005 (Source: Utah.gov)

• Allied Waste, Scottsdale, AZ: $500
• Aheuser-Busch, St. Louis, MO: $2,000
• Convergys, Cincinnati, OH: $1,000
• International Uranium Corp., Denver, CO: $2,500
• Kwikmed, Scottsdale, AZ: $1,000
• Robert J. Debry, Salt Lake City, UT: $500
• Siegfried & Jensen, Murray, UT: $1,000

All of them are clients of powerful lobbying company, Tetris, which is run by former lawmakers Blaze Wharton and Paul Rogers.

Former Senate President Cap Ferry represents dozens of clients, and several of them also gave contributions on a single date two months earlier.

Cap Ferry, Lobbyist: "Do the lobbyists help raise money for the lawmakers? Through the people they represent, you know they'll encourage them, they'll say you know, who should we donate to and so you make recommendations. All the people I have all I do is make recommendations. They finally decide whether they do or don't and how much and who to."

The Speaker's biggest haul of cash came two weeks before Election Day, a fundraiser at the sports bar Sky Box, heavily attended by lobbyists.

The drinks were paid by a lobbyist for Intermountain Health Care. The food came courtesy of the state's number one contributor, the realtors. The total for that night was $52,000, roughly double what his opponent raised in his entire campaign.

Many lobbyists say that's the way the system works.

Cap Ferry, Lobbyist: "So have you ever delivered campaign money on the behalf of clients? They'll send checks. Some will mail them directly. Some will ask you to distribute them, so either way."

For three months we've asked Speaker Curtis to talk to us about contributions to his campaign, but he has declined an on-camera interview on this specific subject.

There is no specific proposal to reform campaign finance rules, but there are a number of bills that affect gifts and influence on politicians once they're elected. There is agreement at the Capitol that some kind of gift and campaign reform is possible. The question is: What kind of reform should it be, and how far should it go?

For years, Utah lawmakers have struggled with perception versus reality over campaign and lobbyist reform.

2007 Bills Regarding Campaign and Lobbyist Reform

• HB178: LOBBYIST GIFT BAN
• HB246: CAMPAIGN CONTRIBUTION AMENDMENTS
• HB248: REVOLVING DOOR LIMITATIONS FOR PUBLIC OFFICIALS TO BECOME LOBBYISTS
• SB116: CONTRIBUTION LIMITS FOR STATE CONSTITUTIONAL OFFICERS
• SB149: LIMITS ON GIFTS TO LEGISLATORS

House bill 178 would ban all gifts from lobbyists. It has not moved so far. House bill 246 would prohibit campaign contributions during special sessions. It is before the full House. House bill 248 would stop elected officials from leaving office and immediately becoming a lobbyist. It has not emerged. In the Senate, Senate Bill 116 sets contribution limits at 10-thousand dollars for the candidate's full term in office. This bill is not expected to emerge. And Senate Bill 149 would require lawmakers to report any gift worth more than 10-dollars. The threshold is 50-dollars now.

Republican Senator Greg Bell is taking on the Senate bills.

Rep. Greg Bell (R), Fruit Heights: "I think constituents deserve to know and be told what gifts and benefits they're receiving from special interests."

The issue is not partisian. And again this year, opposition is framed carefully.

Rep. Curtis Bramble, Senate Majority Leader: "No matter how you cut it, there's an unintended consequence. And what we're trying to do is find the balance."

To some lawmakers, framing lobbying reform or campaign finance reform as 'ethics', is like asking someone, 'When did you stop beating your wife?'

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