
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, March 9, 1994                   TAG: 9403090043
SECTION: VIRGINIA                    PAGE: C1   EDITION: METRO 
SOURCE: DAVID M. POOLE STAFF WRITER
DATELINE: RICHMOND                                LENGTH: Medium

CRANWELL'S ABSENCE STALLS ETHICS BILL ACTION ON CONFLICT-OF-INTEREST MEASURE

Ethics legislation, inspired by the disclosure last summer that five senior Democratic lawmakers had joined the board of a controversial insurance company, stalled this week when the bill's sponsor, House Majority Leader Richard Cranwell, failed to show up at a committee meeting.

The Senate Rules Committee deferred action until 1995 on the measure that would prohibit more than two legislators from serving on the board of a company regulated by a state agency.

Cranwell said he was unable to attend the Rules Committee meeting on Monday because of other pressing business as the General Assembly rushes toward adjournment on Saturday.

"I figure I'll take care of it next year," the Roanoke County Democrat said Tuesday.

Cranwell proposed the measure during his re-election campaign last August in order to extricate himself from the uproar surrounding his involvement with International Guaranty Insurance Co., a newly organized company that was seeking state approval to sell mortgage insurance to Virginia banks.

His opponent accused Cranwell of trading on his legislative power. Republicans in general accused the Democrats on the board of trading on their legislative power.

Board Democrats were Senate I figure I'll take care of it next year. Del. Richard Cranwell Majority Leader Hunter Andrews of Hampton, Del. Alan Diamonstein of Newport News, and then-Dels. Alson Smith of Winchester and Lewis Parker of Mecklenburg.

Cranwell's challenger, Bud Brumitt, said that the presence of Cranwell and four other senior legislators on the company's board could tempt banks to steer their business toward International Guaranty.

Andrews and Diamonstein resigned from the board; Cranwell and Parker eventually followed suit. Smith, who said he would remain on the board, did not run for re-election.

Cranwell went another step, promising legislation to prevent clusters of legislators on corporate boards.

Parker lost his re-election bid to Republican Frank Ruff.

Keywords:
G.A. 1994

by CNB