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Ruling: Funds from Lobby Group to Gov. Lee for Travel Breaks State Law

Travel funds given to Tennessee Gov. Bill Lee to speak at a conservative Christian conference broke state law, according to an opinion issued Tuesday by the Tennessee Ethics Commission (TEC).  

The opinion was requested by Lee after he accepted expenses for a trip in July to speak at the Alliance Defending Freedom (ADF) Summit in July 2024, according to TEC. The only event scheduled on the ADF website for July was its Legal Academy, held on Marco Island, Florida. Lee was paid for “certain travel expenses,” though those were not detailed in a statement from TEC Tuesday. 

The TEC ruled that accepting funds from the group to attend the event was a “prohibited gift.” That’s because the group’s ADF Action subgroup is a registered employer of a lobbyist in Tennessee. 

Lee originally argued that the event sponsor — the overarching ADF group — and its political group were different organizations. Therefore, the the payments did not break state law. Though, he noted the two do share resources.

However, after a thorough review of state laws and the Tennessee General Assembly’s intent for enacting them, the commission said the payment — even though paid indirectly from ADF — still broke the rules. 

“Even a cursory review of the information presented by ADF and ADF Action establishes a close working relationship in the pursuit of similar goals with resources shared to achieve their common purposes,” reads the opinion.

Aside from the names of the groups, another such “striking resemblance” of the two groups, according to TEC, are their mission statements. ADF advances “every person’s God-given right to live a speak the truth” whereas ADF Action advocates for “public policies supporting religious freedom, freedom of speech, parental rights, and the sanctity of life and marriage.”

“ADF Action cannot escape the broad reach of the gift prohibition statute by its related organization — ADF — paying the expenses at issue, whether overtly or covertly on its behalf, or to advance their shared interests,” reads the opinion.

State Rep. Caleb Hemmer (D-Nashville) applauded the ruling, calling it a “misuse of power to take luxury trips paid for by interest groups, breaking Tennessee law.”

“The Ethics Commission has stood firmly on the side of the people, making it clear that the governor isn’t above the law,” Hemmer said in a statement. “They have ordered him to pay back the trip to Florida, funded by an organization employing a lobbyist in Tennessee.

“I hope this advisory opinion will stop lobbyist groups from offering these illegal and unethical trips to influence the Lee Administration.”

Hemmer said he was reviewing legislation to strengthen these ethics laws in next year’s session of the Tennessee General Assembly.

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Gov. Bill Lee to Sign Tennessee Ticket Transparency Bill Into Law

A bill that requires third-party ticket resellers to disclose the total cost of a ticket is headed toward Governor Bill Lee’s desk.

HB1231 passed the Tennessee House of Representatives unanimously on Thursday, April 20.

The bill was presented by Rep. Caleb Hemmer (D-Nashville,) and according to the Tennessee General Assembly, it requires “a third-party ticket reseller to disclose specific information related to the cost of a ticket; prohibits such a reseller from preserving more than 45 percent of the tickets that the reseller has as a holdback.”

Those who fail to disclose this information are in violation of the Tennessee Consumer Protection Act of 1977.

Hemmer said that they worked with artists, venues, and ticket industry experts to “ensure that the bill was updated with the best legal language and policies to protect artists, fans, and consumers in the ticket-buying processes.”

“Live music and entertainment are vital to the culture and economy of Tennessee,” said Hemmer. “Consumers feel some practices in the ticket industry are unfair. This legislation addresses two big issues that impact ticket buyers.”

Hemmer explained that the legislation simplifies the online ticket purchasing process for the consumer through transparent pricing. The first price that ticket buyers see should be the final price that they pay, he said including ancillary and service fees.

He also said that the bill addresses “bad actors, who routinely use websites and URLs featuring language or images of an artist, venue, team or entertainment event to deceive consumers and give the false appearance of an official or legitimate ticket selling channel.

“This bill will ban the practices of deceptive websites and URLs by making it so no person can use a website to display a trademark or copyrighted URL or other mark or symbol without the written consent of the rights holder.”

The bill will apply to any sales that occur on or after July 1, 2023.