Wilson says party funneled checks

A eastern North Carolina developer, fundraiser and Board of Transportation member testified that he gave checks to the Democratic Party that he expected to be in turn given to former Gov. Mike Easley's campaign.

Lanny Wilson said he and his wife wrote checks to the Easley campaign and were told to re-write the checks for the N.C. Democratic Party.

"It was my understanding that they would flow through the state Democratic Party and the Easley Committee would pay expenses," Wilson said.

Wilson said representatives of the Easley campaign told him it was legal to write checks to the party that were meant for Easley.

State law limits contributions to a candidate to $4,000 per election cycle. There is no limit on contributions to a political party, but checks cannot be designated for a specific purpose.

Utilities not ready to run on animal waste

North Carolina's electricity providers say poop-to-power isn't ready for prime time.

Progress Energy, Duke Energy and other providers have asked state regulators to delay and modify a 2007 state law that requires them to generate a minimum amount of energy from pig or chicken waste. The law, designed to promote renewable energy and efficiency, requires utilities to begin getting some energy from pig and chicken litter by 2012.

The utilities have been seeking proposals for waste-to-energy projects, but say they've gotten only limited and expensive bids. (N&O)

* The White House has indicated that it could accept a nonprofit health-care cooperative as an alternative to a new government insurance plan, originally favored by President Barack Obama. But the cooperative idea is so ill-defined that no one knows exactly what it would look like or how effectively it would compete with commercial insurers. (NYT)

* A Chatham County man and convicted sex offender is challenging a state law that took effect in December that forbids registered sex offenders from being within 300 feet of a school, playground, day care or children's museum.

James Nichols, 31, served six years in prison for indecent liberties with a teenage girl and attempted second-degree rape. A Chatham County sheriff's deputy arrested him in March for going to church because the church runs a day care. Nichols had disclosed his crimes to his pastor. (N&O)

Money flows to Etheridge

Among Triangle Congressmen, Rep. Bob Etheridge has the deepest pockets.

Etheridge, a Democrat from Lillington, has $895,137 on hand, according to the latest report filed with the Federal Election Commission. Etheridge had raised $326,561 during the first six months of the year, including $212,164 from political committees, reports Rob Christensen.

Among Etheridge’s major donors are the International Union of Operating Engineers, Smithfield Foods, the trial lawyers, Farm Credit association, Wyrick Robbins Yates law firm, McGuire Wood law firm, Progress Energy, beer wholesalers, Committee for Rural Electrification, Blue Cross Blue Shield, Committee for the Advancement of Southeast Cotton, Wine and Spirits Wholesalers, and Becton Dickenson.

Rep. Brad Miller, a Democrat from Raleigh, reported having $70,654 on hand. During the past six months he raised $119,704 including $62,700 from PACs. Among his larger donors was the American Association for Justice, Farm Credit Association, the United Auto Workers, United Association (building tradesmen) Raytheon Corp, National Community Pharmacists and the Airline Pilots.

Rep. David Price, a Democrat from Chapel Hill, reported having $271,619 on hand. He reported raising $59,631 during the first months including $52,000 from PACs. Those included United Parcel, John Deere, Airline Pilots Association, the trial lawyers, Honeywell International, Motorola, Deloitte & Touche and CSX Transportation.

The consulting loophole, revisited

Don BeasonDon Beason is being investigated for using the consulting loophole.

As previously noted, the lobbyists must tell the Secretary of State how much they are being paid to argue a special interest's cause before the legislature under state law.

But they do not have to disclose any secondary contracts for political consulting or other non-lobbying work.

Once the state's top lobbyist, Beason often broke up his contracts this way, possibly underreporting his pay from BB&T, IBM and Progress Energy.

His contract with BB&T was exactly one-tenth what he earned from Catawba County during a similar period. (Contracts with government agencies would not benefit from the loophole because they are public anyway.)

A special agent with the Secretary of State said in a court filing that the Albemarle Mental Health Center also underreported its payments.

"The Center was being directed by Donald R. Beason to report a significantly reduced amount and not the actual amount of compensation," agent John Lynch wrote in a court filing.

An audit of the mental health center first showed the discrepancy.

Secretary of State investigates Beason

Former lobbyist Don Beason is being investigated.

In a four-page statement filed in Wake County Superior Court, a special agent with the N.C. Secretary of State's lobbying compliance division wrote that he thinks Beason directed some of the 24 groups and companies for which he and his son lobbied in 2007 to include inaccurate information on disclosure forms.

"I have discovered a pattern of under reporting of the lobbyist compensation," agent John M. Lynch wrote. "This under reporting is often done at the instruction of the lobbyist without any written or substantial justification."

The agent said Beason made one request of the Albemarle Mental Health Center, a regional facility in Elizabeth City.

State law treats many reporting violations as misdemeanors.

The affidavit was filed in mid-March in Wake County seeking a judge's help in getting records about Beason from Progress Energy, one of his requests. (N&O)

Hagan starts leadership PAC

U.S. Sen. Kay Hagan has started a leadership PAC too.

The Greensboro Democrat created a political action committee in February, a common move for senators looking to help their colleagues and like-minded candidates, according to the Federal Election Commission.

So far, the Longleaf Pine PAC, named for the state tree, has received $26,000 in donations from PACs for the American Society of Anesthesiologists, the Fertilizer Institute, the J.R. Simplot agricultural giant, the K&L Gates law firm, Progress Energy, Safeway and Sun Healthcare Group.

As previously noted by Greensboro's Mark Binker, the custodian of records is listed as longtime Hagan supporter Art Winstead and the treasurer is Nancy Brenner, who has served on the State Board of Community Colleges.

Previously: Sen. Richard Burr's leadership PAC gave $308,500 in 2008 cycle.

Who's given to Dole's PAC?

U.S. Sen. Elizabeth Dole's political action committee has received $848,615 in the last three years.

The Leadership Circle PAC is separate from Dole's campaign committee, so it can receive bigger contributions from donors. As a recent report and database from NPR's Marketplace shows, leadership PACs like it are booming.

Many of Dole's contributors are familiar faces.

Between December of 2004 and December of 2007, her leadership PAC received $20,000 from lieutenant governor candidate Robert Pittenger and his wife, Suzanne; $16,750 from former gubernatorial candidate Bill Graham and his wife, Shari; and $10,000 from SAS co-founder Jim Goodnight.

Other donations came from Raleigh lawyer Kieran Shanahan, CaptiveAire owner Bob Luddy, her husband Bob, Luther Hodges Jr., billionaire resort builder Kirk Kerkorian, Raleigh developer John Kane, and former Dole running mate Jack Kemp.

The Leadership Circle PAC also received money from other PACs, including the Progress Energy PAC, Wachovia Employees Good Government Fund, the N.C. Farm Bureau, and PACs for R.J. Reynolds, Lorillard Tobacco Co., Duke Energy and Federal Express.

Federal tax forms filed by the N.C. Military Foundation in 2007.
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N.C. Military Foundation's tight budget

The N.C. Military Foundation runs on a tight budget.

The nonprofit started by Lt. Gov. Beverly Perdue in 2006 to promote defense spending in North Carolina spent $140,000 less than it received its first year in operation, according to federal tax forms.

Five North Carolina companies — Wachovia, Progress Energy, Duke Energy and Charlotte defense contractors General Dynamics and Parsons Corp. Commercial Technology Group — each pledged $100,000 to fund the group its first year, and it earned another $3,274 in interest on that money.

But during that time it spent only $363,914, including $212,000 for consultants, $72,718 for the salary of executive director Will Austin, $7,055 on travel, $6,111 on conferences, $3,283 for marketing and $1,131 for a Toshiba laptop.

Austin, the organization's sole full-time employee, works out of a small office on Hargett Street in Raleigh. He has a part-time administrative assistant.

He told Dome the board of directors recently authorized him to hire a deputy director, but the nonprofit will continue to use consultants on its various projects.

"We're lean on staff and infrastructure," he said. "We spend our money on consultants."

Who Beason's clients have hired

Don BeasonWhat happened to Don Beason's clients?

When the once-top lobbyist resigned his practice last year over a shady loan to House Speaker Jim Black, his lucrative list of clients was up for grabs.

By Dome's count, seven of the 16 clients did nothing. BB&T, Cingular Wireless, Albemarle Mental Health Center, Dale Earnhardt Inc., Sigma Corp., the Association of Settlement Companies, and the Carolina Ballet have no registered lobbyists during the current session.

That may be because they don't face any pending bills in a short session devoted to the budget. 

Three clients still employ Beason's son, Mark, along with other lobbyists: The Association of Health Information Outsourcing Services, AT&T North Carolina and S&M Brands.

Two clients, the city of Hickory and Catawba County, went with a new team of Jack Cozort, Kevin Leonard and noted lobbyist Alexander "Sandy" Sands.

Among the other top clients, Progress Energy went with noted lobbyist Zeb Alley, John Bode and Kathy Hawkins; while IBM went with former lieutenant governor Dennis Wicker and a team of eight lobbyists. Colonial Life Insurance hired Glenn Jernigan and the N.C. Railroad Co. hired Michelle Frazier and John McMillan.

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