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Common Cause Nebraska not abandoning cause

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By Joanne Young / Lincoln Journal Star

Monday, Oct 29, 2007 - 12:15:06 am CDT

Common Cause Nebraska isn’t giving up on what it considers to be unethical campaign funding of Nebraska Public Service Commission candidates.

The nonpartisan, nonprofit advocacy organization that works to hold elected leaders accountable to the public interest doesn’t like that PSC candidates accept thousands of dollars from the companies and utilities they regulate.

Common Cause supported a bill — LB61 — in this year’s legislative session that would have prohibited PSC candidates from accepting that money.

First-year Sen. Bill Avery, a former Common Cause Nebraska member, introduced the bill. The Government, Military and Veteran Affairs Committee killed it during the session on a 7-0 vote. Avery, who is a member of the committee, was present but did not vote on the kill motion. 

“I guess I wasn’t persuasive enough,” Avery said.

After the session, Common Cause requested an analysis of the proposed law from the New York School of Law’s Brennan Center for Justice.

The reply came this month from the Brennan Center’s Ciara Torres-Spelliscy, who advised that narrowly tailored restrictions, such as those found in LB61, are likely to be upheld as constitutional.

But Avery says the question of the bill’s constitutionality wasn’t its downfall.

He believed the committee did not send the bill to the floor because “that’s a debate my colleagues don’t want to have.” The regulating of campaign contributions strikes too close to home, he said, and it makes senators skittish.

LB61 was not directed at any particular member, former member or candidate of the PSC, and he was not alleging wrongdoing, Avery said. 

“What I seek to do is remove the appearance of impropriety and ensure public trust that the commission is serving the public interest and not the interests of the industries,” he said at the bill’s hearing. 

 But Sen. Ray Aguilar of Grand Island, chair of the Government, Military and Veteran Affairs Committee, saw the bill as a “witch hunt.”

“It was unfair,” he said. “It picked on one entity when everybody else can accept contributions from whoever they want.”

Accepting contributions from the companies and utilities they regulate is legal.

But Jack Gould of Common Cause Nebraska says what is legal isn’t always right. His argument in favor of restricting campaign contributions from telecommunications, transportation, natural gas, private water companies, and other utilities is one of ethics, he said. Taking away those contributions forces commissioners to become dependent on the public, not the utilities, he said.

The commission is supposed to be protecting the public, Gould said. Its mission is to assure Nebraskans receive high quality, safe and reliable public services at fair and affordable rates.

According to campaign summary reports from PSC members for various election cycles, commissioners did take thousands of dollars in cash and in-kind campaign contributions from the likes of Cox Communications, Great Plains Communications, Huntel, Burlington Northern Santa Fe, Union Pacific, Fiberlink LLC, Aquila and Northern Natural Gas.

Some of those companies or their lobbyists also helped to pay for fundraisers that brought in thousands of campaign dollars.

Frank Landis, PSC District 1 commission and vice chairman of the PSC, said he also gets contributions from family, friends, fellow attorneys and people he has known for years who have nothing to do with companies and utilities regulated by the PSC.

If the Legislature wants to change who can make contributions, that’s fine with him, Landis said. And if it wants to lower the limit on which contributions are reported to Accountability and Disclosure, that’s fine, too.

“The Legislature should do whatever it wants to do with it,” he said.

But where should this debate stop? he asked. Shouldn’t it include  any state or local politician who accepts contributions from beer distributors, healthcare companies, bankers, or teachers groups, who are affected by bills or ordinances politicians vote on?

The Brennan Center, a non-partisan public policy and law institute that focuses on fundamental issues of democracy and justice, said in its analysis of the law that LB61 could serve a “sufficiently important” state interest in preventing corruption or the appearance of corruption by preventing businesses from appearing to “buy” regulators perceived to be sympathetic to their industry.

Nebraska is one of 12 states that elects its public utility commissioners. In other states, they are appointed.

Avery said he doesn’t know if he will bring the bill back as soon as next year.

“But it’s not going to go away because I’m not going to go away,” he said.

Reach JoAnne Young at 473-7228 or jyoung@journalstar.com. 


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There they go again wrote on October 29, 2007 6:47 am:
" Shame on the Journal Star for refering to the Brennan Center as "non-partisan". We may well need some reform in lobbying contributions. I'm willing to have some public discussion of that. But the Brennan Center as non-partisan? What a joke. Readers should research for themselves and see what this group is all about. The Journal Star is reaching a point it cannot be trusted to ask tough questions whenever a group supports the paper's own editorial positions. The Brennan Center is partisan and this has been pointed out by other newspapers. Second point...Common Cause lost a crucial battle in the broadband task force with obviously all the PSC members on the task force (Landis, Boyle, Vapp) unswayed by the argument to have unregulated government entries in the telecom sector. By introducing this bill shortly after the loss, former Common Cause member Bill Avery shows a vindictiveness. He would have been far wiser to introduce a bill banning all lobbying contributions to anyone in state goverment regulating an industry. But no, he seeks to damage the PSC because he lost the vote. Common Cause is diminished in my eyes. Readers should note Sen. Avery only wants to embarras the PSC and get government entry into the telcom sector. "

Tom wrote on October 29, 2007 9:17 am:
" The teleco's are just returning a favor. The PSC uses the unlimited power given to it by the Legislature to put the 6.95% phone tax on every phone bill and gives the money to the phone companies, saving them from having to spend their own money on their operations. The phone companies in return finance campaigns for the Legislature and PSC. Campaign finance reform - phone company style. "

Cash Cow wrote on October 29, 2007 11:50 am:
" This subject needs to be taken a step farther. The public service commission should be eliminated. The intent is billed as protecting Nebraskans from the evils of big business, but their is no protection for Nebraskans from the PSC. Sure they have public input, but as in most government bureaucracy this amounts to a checking a procedure box and they go on doing what is the most beneficial to the commissioners. A public service commissioner was recently on a local radio station denigrating the cell phone contracts that customers sign for their free or discounted phones and services. Her position was to nullify the contract or essentially give the customer the ability ignore or alter contract, which would result in higher prices for those that honor a contract. The PSC collects a monthly Nebraska Universal Fund and prior to the cell phone era amounted less than a million phones, but with the cell phone boom the tax is still collected on all phone services. Where has this new revenue gone and why are we still paying. It's time to dissolved the PSC for the benefit of all Nebraskans, but with the unchecked powers of this bureaucracy there is a less than zero chance for this cash cow to disappear. "