Healthcare Lobbyists Fund
Johnson PAC
Don Michak, Journal
Inquirer, Manchester
January 28, 2004
Health care
lobbyists have been quietly salting the coffers of a new political action
committee they reportedly created for U.S. Rep. Nancy L. Johnson, R-5th District.
The
Leadership Encouraging Excellence PAC, also known as LEE PAC, has collected
more than $65,000 in contributions from health care and insurance company
representatives since it was established three months ago by Ron Lafrancois, a
lobbyist in New York Life Insurance Co.'s Washington, D.C., office, Federal
Election Commission records show. Lafrancois set up the group, the acronym of
which matches the 11-term congresswoman's maiden name, as a
"leadership" PAC to be controlled by Johnson, according to the
Internet-based PoliticalMoneyLine, a non-partisan campaign finance information
service co-founded by a former FEC analyst. Johnson, who is expected to seek a
12th term in November, is the fourth-ranking Republican on the powerful House Ways and Means Committee and
chairwoman of its health care subcommittee.
Her press secretary, Brian S. Schubert, did not return a telephone call
seeking comment Tuesday. FEC rules allow
a member of Congress to establish at least one PAC and raise money separately from
the official's federal campaign account. Critics say the practice allows
lawmakers both to hide contributions and to "double up" on donors.
Moreover, a contributor is legally permitted to give a "leadership"
PAC as much as $10,000 per election cycle, considerably more than the $4,000
per cycle limit on the amount a donor is allowed to give a candidate's campaign
committee. Steve Weiss, a spokesman for the Center for Responsive Politics, a
Washington-based watchdog group, said Tuesday that lawmakers use "leadership"
PACs to boost their own standing within their party by using the cash collected
by the group to pay for speaking tours or to personally direct contributions to
other candidates and PACs. Among the interests whose PACs have made $5,000
donations to LEE PAC, according to FEC records, is AAHP/HIAA, a national trade
association "representing the private sector in health care," as well
as the American Hospital Association, Pfizer Inc., and three major health
insurers -- Aetna Inc., Hartford Financial Services Group Inc., and New York
Life. The records also reveal that LEE PAC has made only two disbursements
since its inception. It paid for a $967 tab run up at Signatures Restaurant in Washington, and it sent a $500
contribution to the KY-06 Republican General Election Fund, a campaign
committee for the district currently represented by Ernie Fletcher, who was a
Republican congressman from Kentucky until elected that
state's governor last fall. Reports filed by Johnson's own federal candidate
committee show she has raised $1,008,580 so far in the 2003-04 election cycle,
while spending $216,988, leaving her with $897,432 in cash on hand at the end
of last month. Her committee's disbursements included $18,000 in contributions
to other candidates. The Center for Responsive Politics says 72 percent of
Johnson's campaign contributions have come from corporate PACs. The center also
says health professionals have given her $109,399, while contributors
associated with the insurance industry have given $82,500, pharmaceutical and
health products companies $64,250, health services businesses and health
maintenance organizations $62,000, and hospitals and nursing homes $36,499. The
group identified Johnson as the top House recipient of contributions from the
health services industry and the second-ranked recipient of contributions from
nurses and from companies that manufacture and sell medical supplies.