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Ethics Commission to issue advisory opinion on whether ADF reimbursements to Gov. Lee are a prohibited indirect gift
Summary
The Tennessee Ethics Commission accepted staff's recommendation and will issue an advisory opinion on whether payments by Alliance Defending Freedom or a related entity to reimburse Gov. Bill Lee for speaking expenses would constitute a prohibited indirect gift under the state gift statute; commissioners also directed staff to add an introductory paragraph recognizing the governor's request for clarity.
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The Tennessee Ethics Commission on Monday agreed to issue an advisory opinion on a request from Gov. Bill Lee asking whether payments by Alliance Defending Freedom (ADF) or a related entity to reimburse the governor for expenses from a keynote appearance would be a prohibited "indirect gift" under the statute cited in the materials.
Staff told the commission members a draft advisory opinion is in their packet and recommended applying the indirect-gift prohibition to related entities to prevent circumvention of the law. Staff also said a requested shared-services agreement between ADF and ADF Action was not produced to the office; staff noted the absence while recommending the commission proceed with the draft opinion.
Commissioners emphasized the commission's statutory authority to interpret the gift ban. The executive director (speaking as executive director in the record) said the commission has authority delegated by the General Assembly to issue advisory opinions and that staff historically has treated payments from related companies as indirect gifts to avoid loopholes. He stated he "feel[s] fairly strongly" that the staff's draft is a correct interpretation of the law.
Several commissioners voiced support for issuing a formal opinion rather than postponing action to the legislature. Commissioner Lynn Richardson said she "lean[ed] toward our staff's opinion," citing the organizations' shared resources as the key concern. Commissioner Floyd Thomas praised the governor for seeking clarity and urged the opinion to affirm the governor's transparency; Thomas said he appreciated "the care and the skill by the staff to address this in the right tenor." He moved that the commission adopt staff's recommendation and add an opening paragraph recognizing Gov. Lee's intent to be beyond reproach. The motion passed.
Staff said it will revise the draft to include the introductory paragraph the commission requested, circulate the revised draft to members as appropriate, and provide the final advisory opinion to the governor and to any members of the public who request it. The commission's materials cite the statutory prohibition as noted in the packet (transcript citation: "TCA 36305").
The commission did not receive the shared-services agreement staff requested from ADF/ADF Action; staff reported ADF representatives declined to provide the document because of concerns about public-record disclosure. The absence of that agreement was discussed as a factual point relevant to whether a payment from a related entity creates an appearance of impropriety.
Next steps: staff will circulate a revised advisory opinion reflecting the commission's introductory paragraph and then publish and deliver the opinion to Gov. Lee and the public.
