THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Monday, October 30, 1995 TAG: 9510300031
SECTION: FRONT PAGE: A6 EDITION: FINAL
SOURCE: BY LISE OLSEN, STAFF WRITER
LENGTH: Long : 106 lines
UNLIMITED CASH CONTRIBUTIONS:
Rules: Virginia is one of eight states that have no limits. By contrast, federal election contributions are capped at $1,000 per candidate for individuals, $5,000 for political action committees.
Results: Jumbo contributions have upped the ante in a handful of campaigns - especially in Southwest Virginia.
Newell R. Falkinburg, a physician and Republican challenger in Roanoke County, got half of his money in four big donations, including $50,000 from two multimillionaire brothers. Another Roanoke area challenger, L.L. ``Trixie'' Averill, received one-third of her money from the same two brothers, David and Peter Via.
INCOMPLETE DISCLOSURE:
Rules: Since July 1993, Virginia candidates have been required by law to list profession and business information for contributors who give more than $100. Violators are subject to fines of up to $300.
Results: Many candidates ignore the law because the state Board of Elections lacks the resources to enforce it. So far this year, no one has been punished for incomplete or inaccurate entries; four were fined for filing late. But a Virginian-Pilot review of 1995 contributions showed that at least 20 percent of occupations were unlisted. Candidates favored vague job titles, such as ``businessman,'' while the lobbyist label was used to identify only 15 individuals.
LABOR UNIONS AND BIG BUSINESS:
Rules: Federal law bars direct contributions from corporations and labor unions. Both are required to form PACs, submit disclosure reports and limit contributions to $5,000 per candidate. Virginia has no limits on contributions from either group.
Results: Labor unions, such as the Virginia AFL-CIO, have contributed hundreds of thousands - mostly to Democrats. Several Hampton Roads-area candidates got more than 10 percent of their money from unions, including challenger Johnny S. Joannou, and incumbent L. Louise Lucas, both of Portsmouth, and incumbent Howard E. Copeland of Norfolk. Teachers' associations such as the Virginia Education Association also are big contributors.
Business groups, like the Virginia Bankers Association, the Virginia Medical Association, Philip Morris, Mobil Oil, Trigon Blue Cross Blue Shield and Virginia Power, also pour hundreds of thousands into Virginia races. Incumbents get more than 90 percent of that money.
SOFT MONEY:
Rules: In Virginia and nationally, money raised by state and local parties can be used to fund expenses like direct mail, advertising and polls. Often, individual candidates do not report all of the party help. The U.S. Congress is reviewing a bill that would ban ``soft money'' in federal races.
Results: Millions in party PAC money has flooded into Virginia campaigns from in- and out-of-state groups.
And because individual candidates do not always have to report the party money, their contribution reports do not give a complete picture of how much money is really being raised and spent.
UNOPPOSED CANDIDATES AND WAR CHESTS:
Rules: Virginia allows all candidates - including unopposed incumbents, and the governor - to raise as much as they want. Often candidates also raise money in off-election years. They can use the money for almost anything except personal expenses. Or they can save it to scare off future opposition.
Results: Some incumbents started out this year's races with $20,000 to $30,000 nest eggs - which makes it even harder for challengers to compete.
Several unopposed lawmakers have raised more than $100,000, including Virginia Beach Republican Kenneth W. Stolle, who is using part of his $167,000 in contributions to finance a blitz of television ads for other party candidates.
At least two Hampton Roads candidates use campaign money to pay their own companies for office space: Fredrick M. Quayle, of Chesapeake, and Robert E. Nelms, of Suffolk. Nelms, who is unopposed, first charged himself $300 for office space, but later raised his own rent to $400, expenditure reports show. Both also receive a $500 monthly allowance for office space, as General Assembly members.
NONPROFIT GROUPS:
Rules: Federal tax law bars nonprofit groups from contributing to campaigns. But board employees do not thoroughly review tens of thousands of itemized entries, which are handwritten or typewritten on paper reports. Unlike some other states, Virginia does not require electronic filing of contributions, which would be easier to audit.
Result: At least two university foundations, both nonprofits, violated campaign contribution laws by donating to candidates. The Norfolk State Foundation Inc. bought a $125 ticket to a benefit for Norfolk incumbent Jerrauld Jones. Longwood College foundation donated to Del. Watkins M. Abbitt Jr. of Appomattox. Officials from both foundations said they would ask for refunds - after newspaper reporters contacted them about the contributions.
HORSE RACING, GAMBLING INTERESTS:
Rules: Virginia bans contributions from a few groups, such as licensees of horse-racing tracks. But other gambling interests - such as riverboat casino operators - are not affected by the law.
Result: Virginia's only horsetrack licensee has not contributed, but his principal business partner and the designated track manager did.
Maryland track operator Joe DeFrancis gave a total of $1,500 to two Northern Virginia Democratic lawmakers.
DeFrancis is a business partner of Arnold Stansley, an Ohio harness track owner who won a Virginia license to open a thoroughbred track and an off-track betting parlor. DeFrancis will help manage the New Kent Track, if built. And riverboat casino money has been donated by in- and out-of-state people. MEMO: Staff Writers David Poole and Phil Walzer contributed to this report.
KEYWORDS: CAMPAIGN FINANCE by CNB