Legal defense fund bill moves on

Contributions cap removed in Senate

A Senate committee approved legislation Monday that would require elected officials and candidates to disclose contributions and spending in legal expense funds, but not before stripping out language that limited contributions to no more than $4,000 and barred businesses and unions from giving.

The legislation represents more fallout from the investigation into former House Speaker Jim Black's legislative and campaign affairs. Black had set up a legal defense fund, and state law lacked any requirement that he disclose who gave and how the money was spent.

Public interest groups feared the fund could be used by special interests to curry favor with Black, a Mecklenburg County Democrat convicted of public corruption.

The legislation has already passed the House. A floor amendment there added the contribution limits, so that the funds would be similar to campaign finance accounts. The State Board of Elections would regulate the funds.

But Republicans and Democrats on the Senate Select Committee on Government and Election Reform said the contribution limits did not make sense when one of the purposes of the funds is to help someone pay for the best defense possible in a criminal investigation or civil action.

Study bill skirted

The legislation survived an attempt to turn it into a study bill. Sens. Charlie Dannelly, a Charlotte Democrat, and Martin Nesbitt, an Asheville Democrat, contended that there were too many questions with the regulation to address in the remaining days of the session.

"Something like this has got to be an impediment for someone defending themselves," Nesbitt said.

Rep. Melanie Goodwin, a Rockingham Democrat who leads the House's election law committee, said she would have no problem turning the bill into a study. But most of the senators argued against holding back on the regulation, even though few states have it.

Senate Majority Leader Tony Rand, a Fayetteville Democrat, said the public ought to know whether an official has gotten $50,000 toward his legal defense, even if it is perfectly appropriate.

"Let's don't hide it," he said.

The bill now moves to the Senate for a vote. If it passes, it will need to go back to the House for concurrence.