Cigar bars and hotels in France
How lawmakers spent campaign cash
Cigar bars, a new car and French hotels.
Those are just a few items members of the state legislature spent campaign money in recent months.
The lawmakers said the expenditures, discovered amid a USA TODAY NETWORK - Tennessee analysis of recent financial disclosure statements, are for legitimate campaign activity.
But the analysis reveals that some lawmakers continue to make unusual purchases and spend campaign money on the same day they receive a taxpayer-funded allowance for their legislative work.
It is illegal to use campaign funds for personal purposes and lawmakers are not allowed to spend campaign money on purchases for themselves when they receive allowances.
Legislative leaders defend lawmakers, spending
In November, Sen. Paul Bailey, R-sparta, spent more than $1,000 at two French hotels, including one in Paris and another in Verdun, home to the longest-lasting battle in World War I. That same month, Bailey spent more than $900 on airfare.
A spokeswoman for Bailey said he made the expenditures while representing the state at the 100th anniversary of Sgt. Alvin York's heroism in France. York, a Tennessean, was one of America's most famous soldiers during World War I.
Sen. Steve Southerland, R-morristown, spent nearly $28,300 to buy a car from Beaman Automotive Group. As he has done in the past, Southerland used campaign money to pay for car washes and license plate tags.
Darlene Schlicher, a spokeswoman for Senate Republicans, said Southerland bought the car after checking with campaign finance officials.
"He utilizes the automobile to travel to the Capitol on official state business, which is allowable under state law," she said, adding that Southerland also owns two separate cars for personal use.
Rep. Matthew Hill, R-jonesborough, and Rep. Rick Staples, D-knoxville, both used campaign funds to pay for “entertainment” and “food/beverage,” respectively, at cigar bars.
Hill spent $110 at a cigar lounge in Johnson City, while Staples had $149 in expenditures at Blend Bar, a business not far from the Capitol that only sells alcohol and cigars.
Through a spokesman, Hill said he made a "reporting error" and would reimburse his campaign account for the amount in question. His campaign finance report has since been updated and no longer includes the purchase at the cigar lounge.
A spokesman for Staples said the cigar bar is "in the middle of his district." Blend Bar is located in Nashville. Staples represents Knoxville. "He had several meetings there and at least three constituent appreciation events there," spokesman Ken Jobe said.
Staples' purchases at the cigar lounge were among hundreds of dollars he spent for "food/beverage" at various restaurants, bars and hotels in Knoxville.
It is unclear whether expenditures identified by the USA TODAY Network-tennessee are illegal. Lawmakers are prohibited from using campaign money for personal use. In 2017, expelled former Rep. Jeremy Durham was fined $465,000 for purportedly spending donors’ money on everything from wedding gifts and sunglasses to food and beverages.
House Speaker Glen Casada, R-franklin, said he is confident lawmakers are spending their money appropriately.
"I support members of our body in using their campaign accounts as their constituents have entrusted them," he said.
A spokesman for Lt. Gov. Randy Mcnally, R-oak Ridge, said the speaker is also confident his members are following the law.
"If there are any explicit violations of the law, Lt. Gov. Mcnally would expect them to be held accountable by the Registry and accept the associated penalties,” spokesman Adam Kleinheider said.
As has been the case in the past, several lawmakers did not properly disclose how they spent their money.
Several lawmakers grouped hundreds of dollars in expenditures together without providing adequate disclosures. All expenditures over $100 are supposed to include the name of the person or company that the campaign paid, the purpose, date and amount.
Rep. Johnny Shaw, D-bolivar, for example, indicated he spent $233 on gas and $148 on "food/beverage" on his latest disclosure but did not provide additional details.
Likewise, Rep. Susan Lynn, R-MT. Juliet, who is the House finance committee chair, said she spent $576 dollars on food/beverage, $473 on gas and $119 on "dues/subscriptions" without providing additional details, as required.
Using campaign money while receiving taxpayer-funded allowance
Tennessee lawmakers receive an allowance for every day they are in session. They also can get per diems on non-legislative days, provided they are performing work related to their office.
Lawmakers have repeatedly been told, including by Himes, that they cannot spend campaign money on days they receive allowances.
“On days you receive per diem, you may not use your campaign account for non-campaign related meals or lodging for yourself or any other member,” Himes said on Jan. 10.
In August 2017, Drew Rawlins of the Bureau of Ethics and Campaign Finance, sent a letter to Mcnally and then-house Speaker Beth Harwell reminding lawmakers that they “may not use campaign funds to pay for noncampaign related meals or lodging for themselves” on the same day they receive a regular legislative allowance.
Despite sharing the warning with his legislative colleagues, Mcnally reported spending campaign money on the same day he received a per diem.
His political action committee, Mcpac, reported spending $412 at Martin’s Bar-b-que Joint in Nashville on Nov. 14, the same day he received a taxpayer-funded $240 per diem for office work and meetings. And Mcnally wasn’t the only one. At least nine other lawmakers reported using campaign money on the same day they received a per diem.
Kleinheider, Mcnally's spokesman, said the barbecue expenditure was part of an annual staff appreciation luncheon and was therefore allowed.
"Lt. Gov. Mcnally will continue to warn members against using campaign dollars on food purchases for themselves on days they claim per diem," Kleinheider said. "The Registry of Election Finance provides adequate enforcement and, of course, the news media are always there to provide sunlight and accountability when necessary."
Reach Joel Ebert at jebert@tennessean.com or 615-772-1681 and on Twitter @joelebert29.