Panel votes to kill controversial funds - San Jose councilman was accused of pressing for donations

Mercury News ^ | 1/13/05 | Aaron C. Davis

[NormsRevenge]

San Jose's ethics task force Wednesday voted unanimously to ban council members' so-called special events accounts, which gained notoriety last year when Councilman Terry Gregory was accused by a former aide of pressuring Wal-Mart and other business leaders to contribute thousands of dollars to one of the little-known funds.

The task force's decision puts the fate of the controversial accounts before the full council later this month. Seven of 10 city council members have used special events accounts in recent years to raise tens of thousands of dollars, but a majority Thursday said they were leaning toward eliminating them. The mayor's office has a similar account for sponsoring inauguration events.

The funds have for at least 10 years allowed council members to raise money by having contributors write checks out to the city, present them to the clerk's office, and have the money earmarked for the selected council member's district. The money is later paid out by the clerk when the council member submits purchase orders, credit card bills or invoices related to the event.

``Special events accounts clearly go against council policy that you can have one account and raise a maximum of $10,000,'' said the ethics task force chairman, Councilman Ken Yeager, referring to council members' traditional office-holder accounts that have a maximum individual contribution of $250. ``People figured out a way to get around that and raise unlimited amounts of money and I'm glad we're closing that loophole.''

The three-member task force Wednesday also directed the city attorney to begin drafting a broad new law that would require council members to report all fundraising they conduct -- not just for political purposes -- but for causes as far reaching as cancer research and environmental protection. ...

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