Rowland Credit Card Settlement May Lead To New Laws

By Susan Haigh

Associated Press

HARTFORD –– Gov John G. Rowland’s settlement this summer with the State Elections Enforcement Commission over use of a party credit card may lead to changes in Connecticut law.

For the first time, officeholders, party leaders, and candidates could be required to keep careful track of credit card expenditures, jotting down enough information to prove that political, not personal, expenses are being put on the plastic.

Jeff Garfield, the commission’s executive director, said credit and debit cards are becoming more popular with state parties, candidates, and political action committees. It has become an easy way to pay for everything from gasoline to meals without having to follow the sometimes burdensome method of writing out checks.

“The law has to grow with the times. We have to recognize that campaigns are conducted now in a much different way than they were a decade ago, two decades ago,” Mr Garfield said.

“In my view,” he said, “it’s not the card itself that presents the issue but rather what it’s used for.”

In Mr Rowland’s case, Tom Swan, executive director of the Connecticut Citizens Action Group, filed a complaint April 1 alleging that GOP funds and credit cards issued to the governor and others may have been used for personal expenses.

The complaint triggered an investigation of all state GOP credit card expenses from the past five years and whether any charges were made for personal benefit. It marked the first time the commission had investigated credit card use by a politician.

Mr Rowland and the state party settled the investigation in August, agreeing to pay a total of $7,500. Under the deal, Mr Rowland admitted no wrongdoing but paid $6,015.17 –– the amount he charged to the card for meals, airfare to Ohio with his wife, Patty, five hotel charges, a rafting trip, and a golf game that he could not prove were permitted under election laws as party-related.

The party agreed to pay $1,500.

Mr Rowland said he agrees the law should be made more specific. For example, the law is silent on the type of record-keeping that is necessary to prove that an expense is political, not personal. Mr Rowland did not retain many of his receipts and some of the meals and expenses had to be verified by Mr Rowland’s recollection or old schedules.

“I think the key is to just have one set of standards. There’s all kinds of different rules and gray areas,” Mr Rowland said. “As long as there’s a clear set of standards, everybody will follow them. That’s not a problem. When you change the rules after the game is played, it becomes a little confusing.”

Mr Swan said he was disappointed by the commission’s settlement with Mr Rowland. He criticized the decision by Mr Garfield to investigate only meal charges that totaled $300 or more.

Mr Swan said he is also alarmed by what he sees as silence from legislative leaders on the issue. He said none have come out and publicly criticized Mr Rowland’s use of the card. In the meantime, they agreed to reduce funding to the Elections Enforcement, Ethics and Freedom of Information commissions in the new two-year budget.

“Part of it is probably they don’t want their credit cards touched,” he said, adding how he believes credit cards are only part of the problem. Mr Swan wants the General Assembly to pass a comprehensive campaign finance reform bill that allows public financing of campaigns.

“I think it is a systemic problem and to fix it is going to take systemic change,” Mr Swan said.

The elections commission has not yet discussed its recommendations for law changes. However, Mr Garfield foresees a bill that would require a politician using a campaign or committee card to scribble on the receipt the nature of the expense, whom he or she dined with and why.

Mr Garfield said he wants to be careful about privacy, however. Sometimes a Republican politician might take a Democrat out to dinner, or vice versa, and does not want the world to know about it.

“When person makes a contribution, he knows that his name is going to be disclosed on the campaign finance reports,” Mr Garfield said. “But when it comes to dining with somebody with another party’s candidate or leader, he doesn’t have an expectation that his name is going to be disclosed and obviously that might hurt the person being dined.”

Mr Garfield said he plans to recommend the law require the receipts with the information be kept by organizations for five years. It would be available to the commission if it audits the groups or has to conduct an investigation.

The commission will also likely recommend a clearer definition of what is a party-building expense. Mr Garfield said he first wants to examine other state’s laws on the subject.