THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Wednesday, March 13, 1996 TAG: 9603130565
SECTION: FRONT PAGE: A9 EDITION: FINAL
SOURCE: BY DAVID M. POOLE, STAFF WRITER
DATELINE: RICHMOND LENGTH: Medium: 70 lines
Del. George H. Heilig Jr. had no legal obligation to disclose that his law firm was paid $9,581 from Trigon Blue Cross Blue Shield last year.
But some state lawmakers argued Tuesday the Norfolk Democrat should have made the information public, given his leading role in pushing Trigon-backed legislation through the General Assembly.
``It smells,'' said Del. H. Morgan Griffith, R-Salem. ``Nobody on that floor knew that Trigon paid his firm. He was part of their team, or at least his law firm was.''
Heilig could not be reached Tuesday.
In accordance with General Assembly rules, Heilig did not have to list Trigon as a law client in a disclosure statement earlier this year. He simply had to check a box indicating he earned more than $1,000 from unspecified insurance companies.
Heilig would have had to name Trigon only if he or his firm represented the company before a state agency. But Heilig did routine legal defense work, according to Jim McKenry of Heilig, McKenry, Fraim and Lollar.
Trigon has different reporting requirements. Documents filed with the State Corporation Commission earlier this month show Heilig's firm was paid $9,581 - a few hundred dollars short of a $10,000 threshhold that would have raised questions about Heilig's ability to vote on Trigon legislation.
Griffith, the Salem Republican, said Heilig's relationship with Trigon was significant enough that he should have disclosed it.
Heilig headed a special subcommittee that considered legislation that gave the General Assembly's blessing to Trigon's bid to become a for-profit stock company. Heilig also spoke on the House floor against efforts to increase Trigon's payment of $175 million in return for special tax breaks the company enjoyed for 50 years.
The General Assembly approved the Trigon bill. The company's conversion plan is pending before the SCC.
SCC documents show the amount Heilig received is a fraction of legal fees paid to a Roanoke County law firm headed by House Majority Leader C. Richard Cranwell.
Trigon paid Cranwell's firm $385,560 last year for legal work, including assistance on the insurance company's bid to become a for-profit stock company.
In January, Cranwell stepped down as Trigon counsel and abstained from any votes dealing with the company's conversion plan.
In accordance with General Assembly rules, Cranwell had checked off a box on his report showing Trigon paid his firm more than $10,000 for representation before the State Corporation Commission.
Cranwell said Monday that the gap between what the law requires him to report and what he earns may be a sign that Virginia's disclosure law for legislators needs to be changed.
``I guess I'm considered a good lawyer and I'm considered an influential legislator, and maybe that's too much concentration in one person,'' Cranwell told the Richmond Times-Dispatch. ``Maybe we ought to be looking at our disclosure rules and think about whether they need more detail.''
In its SCC filing, Trigon also reported that it paid a $5,850 retainer to a law firm headed by House Speaker Thomas W. Moss Jr.
Moss said Tuesday that his firm did routine collection work. ILLUSTRATION: Graphic
CORRECTED VERSION OF GENERAL ASSEMBLY VOTE TALLY
HOUSE OF DELEGATES' VOTES
[For complete graphic, please see microfilm]
KEYWORDS: GENERAL ASSEMBLY by CNB