Assemblyman Kevin O'Toole

O'TOOLE ASKS FOR ACTION ON BILL PROHIBITING OFFICIALS FROM CASHING IN ON CAMPAIGN ACCOUNTS

LEGISLATION GOES AFTER USE OF CAMPAIGN FUNDS TO CREATE CHARITABLE ORGANIZATIONS THAT THEN PAY FORMER OFFICIALS August 23, 2006
Assemblyman Kevin O'Toole/973-696-2323

O'TOOLE ASKS FOR ACTION ON BILL PROHIBITING OFFICIALS FROM CASHING IN ON CAMPAIGN ACCOUNTS

LEGISLATION GOES AFTER USE OF CAMPAIGN FUNDS TO CREATE CHARITABLE ORGANIZATIONS THAT THEN PAY FORMER OFFICIALS

Assemblyman Kevin O'Toole today sent a letter to Assembly Speaker Joseph Roberts asking that the Speaker have the Assembly State Government Committee convene to consider legislation that O'Toole has co-sponsored targeting a loophole that allows former elected officials to receive salaries out of their former campaign accounts.

"Public officials should not be able to cash in for personal gain on campaign funds they raised when running for elected office," O'Toole, R-Essex, Passaic and Bergen, said. "Washing campaign funds through non-profit organizations and then receiving a salary from that organization is a clear abuse of these funds."

The legislation, A-1096, sponsored by Assemblyman O'Toole and Assemblyman Sam Thompson, R-Middlesex and Monmouth, would prohibit former elected officials from receiving for five years compensation from charitable or non-profit organizations when the official’s campaign committee has donated contributions to that organization.

The case of former Essex County Executive Thomas D'Alessio, who used this loophole to accept paid employment from an organization to which his campaign fund had donated money, was one example of such an abuse.

D'Alessio went to jail in 1994 on fraud and extortion charges, and upon his release he donated $2 million in remaining campaign funds to a charity he established, which in turn paid him an $82,000 salary and gave him a number of other benefits including a car and a condominium on an island off the coast of Florida.

"This behavior undermines public confidence in our electoral process, making it appear that officials are campaigning for personal gain -- not public service," O’Toole said "Hopefully the Speaker will convene the State Government Committee so that we can vote on this bill and put an end to this corrupt practice."

A copy of the letter is attached.

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August 22, 2006

Honorable Joseph J. Roberts, Jr.
Speaker, New Jersey General Assembly
P.O. Box 098
Trenton, New Jersey 08625

Dear Speaker Roberts:

As the co-prime sponsor of Assembly Bill No. 1096 (A-1096), I respectfully request you to convene the Assembly State Government Committee at the earliest opportunity, and that you and Assemblyman Steele post this bill for consideration at that meeting.

A-1096 prohibits former elected officials from receiving for five years compensation from charitable or non-profit organizations when the official’s candidate committee has donated campaign contributions to that organization. We are all aware that former Essex County Executive Thomas D'Alessio took advantage of a loophole in the current law which did not prevent him from donating his campaign funds to a charitable or non-profit organization, and then accepting paid employment from that same organization. My bill would close this loophole and discourage the future misuse of campaign funds in such a manner.

Thank you for your serious consideration of this request.

Sincerely,
Kevin J. O’Toole
Assemblyman, 40th District

c Honorable Alfred E. Steele
Chair, Assembly State Government Committee