Bill restricting campaign money investment goes to governor

The House gave unanimous approval Monday evening to a bill to put new restrictions on investments of money held in state political campaign accounts. It was inspired by a number of questionable investments found in an audit of former state Rep. Jeremy Durham’s  funds.

The measure (SB377) had passed the Senate earlier (previous post HERE, including a press release) and it now goes to the governor for his signature.

Sponsors are Sen. Doug Overbey, R-Maryville, and Rep. Gerald McCormick, R-Chattanooga. The bill declares campaign funds must be deposited in a financial institution insured by the FDIC or the national credit union administration that is authorized to do business in the state.

The Durham audit found the Franklin Republican, expelled from his seat last year, had invested more than $100,000 of campaign money in a company operated by a major political donor and also used the funds to make substantial loans to a professional gambler and his wife. That’s not illegal under current law, though Durham is under investigation for multiple other allegations of activity that would be illegal.

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