Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: MONDAY, October 16, 1995 TAG: 9510160064
SECTION: VIRGINIA PAGE: C-1 EDITION: METRO
SOURCE: DAVID M. POOLE STAFF WRITER
DATELINE: RICHMOND LENGTH: Long
State Sen. Mark Earley, R-Chesapeake, was surprised how easily the Virginia Senate went along with his proposal to ban campaign contributions by casino operators.
His amazement evaporated, however, as opponents turned the debate into an insider's joke.
State Sen. Richard Saslaw, D-Springfield, rose to say that if lawmakers wanted to strike a blow against "sin" money in Virginia politics, they also should ban contributions by tobacco and alcohol interests.
That is exactly what the Senate proceeded to do on a 30-10 vote one afternoon in February.
Saslaw allowed himself a satisfied smirk, knowing the bill no longer had a chance with state lawmakers long addicted to tobacco and alcohol money. Sure enough, the bill quietly died in the House of Delegates.
A computer analysis by The Roanoke Times and its sister paper in Norfolk, The Virginian-Pilot, shows that few lawmakers facing re-election this November have any inclination to beat the habit of tobacco and alcohol money.
Breweries, distilleries and beverage wholesalers gave incumbent lawmakers $118,687 in direct contributions through August.
Tobacco interests, led by cigarette giant Philip Morris, helped out with $54,650.
And gambling interests, including casinos trying to introduce riverboat gaming to Virginia, were good for another $32,275.
This so-called "vice" or "sin" money can add up to real cash for some politicians.
Del. Jerrauld Jones, D-Norfolk, looked to vice interests for nearly 10 percent of his campaign contributions this June in his successful Democratic primary fight. Jones received $8,600, most of it from casinos that appreciated his efforts to bring riverboat gambling to Virginia.
Del. Frank Ruff, R-Clarksville, hauled in $4,200, most of which came from tobacco interests in his Southside district.
Saslaw - who pulled off the ploy on the Senate floor - led all incumbents in alcohol contributions, with $6,450.
Alcohol lobby divided
Alcohol and tobacco companies have a stake in the political process in Virginia because of the large role state government plays in their industries.
Brewers, distillers and wholesalers are among the most regulated businesses in Virginia. The state maintains a monopoly on liquor sales, sets the prices and determines which brands are available in state-run stores. The state also determines the food-to-alcohol ratio for restaurants and deems what beverages may be sold in grocery stores.
Because many of these regulatory debates are played out in the General Assembly, the alcoholic beverage industry donates money to candidates to ensure its voice is heard.
Earlier this year, the industry was divided over the so-called "Lynchburg Lemonade" bill that would allow groceries to stock beverages containing low levels of hard liquor. The bill pitted beer wholesalers, who feared losing shelf space, against wholesalers who hoped to market the new product. After clearing the House, the bill squeaked through the Senate 22-18.
One company that benefited from the law - Associated Distributors Inc. of Chesapeake - leads the industry with more than $26,000 in campaign contributions to General Assembly candidates.
Overall, the alcoholic beverage industry has given $118,687. All except $3,500 went to incumbents. Democrats got 52 percent; Republicans, 48 percent.
Tobacco likes low taxes
Lawmakers hankering for a smoke often step to the rear of their respective chambers as a polite gesture to their colleagues.
Times have changed, but tobacco still holds sway in the General Assembly.
Virginia's tobacco tax is the lowest in the nation, at 2.5 percent. Cigarette manufacturer Philip Morris is one of the state's largest private employers, with about 5,000 workers in the Richmond area. Philip Morris also is one of the state's most generous political benefactors.
Jay Poole, director of government relations, said Philip Morris seeks access to the political process to ensure that Virginia maintains a tax and regulatory climate favorable to business.
The company also stands vigilant against legal reforms that could allow smokers to file product liability lawsuits or allow states to sue cigarette companies for medical costs incurred treating former smokers, Poole said.
"We think Virginia's tort laws are the best in the country," he said.
Philip Morris accounts for $45,700 of the $54,650 tobacco-related contributions reported through August. All but $3,350 went to incumbents. Republicans received 60 percent; Democrats, 40 percent.
Gambling: a low profile
Despite dire predictions that out-of-state casino money would skew General Assembly elections, gambling companies so far have been far less active than tobacco and alcohol interests.
In recent years, floating casinos made little progress in the Democrat-controlled General Assembly, even with a friend in House Speaker Thomas Moss of Norfolk.
Gambling interests may find themselves out in the cold if Republicans gain control of the House of Delegates.
The GOP speaker-in-waiting, Vance Wilkins of Amherst, is a rural conservative who views casino gambling with the moral indignation of a Baptist preacher.
No wonder, then, that gambling interests are placing their money on Democrats.
Casino interests have contributed $23,150 to Democrats and $9,125 to Republicans.
While Republicans tend to consider casinos a moral issue, many Democrats - particularly those from Hampton Roads - see the issue in economic terms.
Jerrauld Jones, who has sponsored riverboat gambling legislation for several years, has said casinos would provide jobs to help the region absorb cuts in military spending.
Another segment of the gambling industry - horse racing - has made little impact in campaign fund raising this year.
One reason is that racetrack operators are barred under Virginia law from contributing to any political campaign in Virginia.
Arnold Stansley, an Ohio harness track owner who has a license to open a thoroughbred track in New Kent County, has complied with the law. But his likely partner, Maryland thoroughbred track operator Joe DeFrancis, has given a total of $1,500 to a pair of Northern Virginia Democrats.
Saslaw, who got $1,000 from two of DeFrancis' companies, said there was nothing improper about the contribution.
DeFrancis ``is no more than a concessionaire, like Coca-Cola or Pepsi," Saslaw says.
Keywords:
POLITICS
by CNB