Don Beason

Hensley, former Wake rep., dies

bniolet — Tue, 18 Aug 2009 13:47:22 -0400

Former State Rep. Robert "Bob" Hensley, Jr. died this morning at Rex Hospital from complications of leukemia. He was 62.

Hensley represented Wake County in the House from 1990 to 2002, according to a news release announcing his death.

"Bob Hensley was a spirited and dedicated public servant who fought for what he thought was right and always cared about the average citizen," said State Rep. Deborah Ross, who now holds Hensley's seat.

He was among a handful of dissident Democrats during the early 2000s who didn't hesitate to buck the will of then-Speaker Jim Black.

Hensley was born in 1947 in Wilmington.

He graduated with a BA in history from the University of North Carolina at Charlotte and received his law degree from North Carolina Central University Law School.

"Bob was a progressive voice for Wake County and for the people of NC. During his time in the NC House, he represented the people with courage, enthusiasm, wisdom and wit. We will miss him," said Jennifer Weiss, a Raleigh Democrat.

Hensley was most recently in the news for representing lobbyist Don Beason who was charged in a road rage incident.

Hensley is survived by his wife, Pat Granger Hensley and sons Preston, Chris and Robert Hensley, III.

"I want to thank our many friends and neighbors for their kindness and care during Bob’s illness. We hope that everyone will keep us in their prayers during this difficult time," said Pat Hensley.

Funeral arrangements are pending.

Quick Hits

ryanteaguebeckwith — Fri, 01 May 2009 14:24:33 -0400

* Former top lobbyist Don Beason has been spotted at Senate Finance Committee hearings, though he does not sign in to the guest sheet.

* U.S. Rep. Patrick McHenry, a Cherryville Republican, is playing a key role on GOP efforts to shape the 2010 Census policies.

* Spurred by N.C. Democratic Party, some 300 people call Sen. Richard Burr's office to complain about Rep. Virginia Foxx's remarks.

* Phones at Foxx's offices not being answered, calls "diverted to a general voice mail box, which was full and unable to record messages."

Some quick math on Beason's lobbying

ryanteaguebeckwith — Thu, 30 Apr 2009 13:39:02 -0400

How much did Don Beason really make last year?

If Raleigh attorney Michael Weisel is correct, then most lobbyists' clients report from 15 to 30 percent of their payments to the state.

According to a report from Democracy North Carolina, Beason reported $145,521 from 16 clients in 2007.

That would put his actual income at between $485,070 and $970,140.

Of course, Beason is being investigated for underreporting his income — and we use this word to mean reporting below the traditional and reasonable amount used by other state lobbyists — so the real pay could be much higher.

As noted previously, Beason may have reported about 16 percent of his pay from the Albemarle Mental Health Center, five percent from IBM in 2004 and potentially 10 percent from BB&T.

Defining lobbying expenses up to client

ryanteaguebeckwith — Thu, 30 Apr 2009 13:27:17 -0400

Reporting on lobbying expenses is up to the client.

Raleigh attorney Michael Weisel, who is representing some of former lobbyist Don Beason's clients, told Dome that state law requires the client — whether it's a business, advocacy group or special interest — to report how much a lobbyist is paid.

"The lobbyist usually tells the corporation how much of the lobbyist's fee or salary is reportable under North Carolina law, but the principal is responsible (and liable) for reporting," he wrote in an e-mail to Dome.

He said that principals typically report from 15 to 30 percent of a fee or salary paid to a lobbyist, based on the state's definition of reportable lobbying expenses.

"A lot of what a lobbyist does is giving strategic political advice, monitoring legislation, and looking for legislative trends," he wrote. "These are not lobbying activities and are not reportable."

Weisel contends that his clients did not "underreport" their expenses.

No IRS deduction for lobbying expenses

ryanteaguebeckwith — Thu, 30 Apr 2009 09:28:59 -0400

Lobbying expenses are not deductible from the federal income tax.

As noted previously, former lobbyist Don Beason is being investigated by the N.C. Secretary of State over the amount of income he reported as lobbying related. (Instead, he may have considered some of his pay for consulting.)

Raleigh attorney Michael Weisel, who is working for some of Beason's former clients, tells Dome that there is a "natural tension" on the issue.

"Any costs/expenses characterized as lobbying are not deductible as a business expense," he writes in an e-mail. "Therefore, a business seeks to minimize the amount attributable to lobbying as defined by the IRS."

On the other hand, state law clearly outlines lobbying expenses.

Weisel took issue with Dome's use of the word "underreporting" for lobbyists who do not report income for consulting expenses.

"There is no 'underreporting' of compensation despite the investigators characterization," he wrote.

Quick Hits

ryanteaguebeckwith — Wed, 29 Apr 2009 16:48:23 -0400

* U.S. Rep. Virginia Foxx says murder of Matthew Shephard was not a hate crime, but just a robbery, in floor speech today.

* Gov. Beverly Perdue's office has referred to the "swine flu" in press releases, but they've not had any internal discussion on the best name.

* National Rifle Association also opposes state Sen. Don Davis' "puppy mill" bill; earlier opposed similar House bill.

* Charlotte Observer columnist Jack Betts thinks it's "a bit of quirky irony" that former lobbyist Don Beason is being investigated.

Why underreport lobbying income?

ryanteaguebeckwith — Wed, 29 Apr 2009 14:33:32 -0400

Why would a lobbyist underreport?

Former top lobbyist Don Beason is being investigated by the N.C. Secretary of State for potentially underreporting his lobbying income.

That's led some Dome readers to ask why a lobbyist would do that.

Here are a few possible reasons:

EVERYONE DOES IT. Clients seek advice on political ads, who to support in elections and how to frame an issue for the public. Some of that is legitimately considered consulting.

TO HELP THE CLIENT. To much of the public, "lobbying" is a dirty word. If a lobbyist reported earning a lot, the client's opponents could use that as an attack.

COMPETITIVE SECRETS. If you told the state how much you earned for a given client, another firm could come in and offer to do the same job for less.

JUST BECAUSE. Some lobbyists make a career out of pushing the legal limits. If the state has a loophole that allows them to underreport, they're going to use it.

Have another theory? Post it below or e-mail dome@newsobserver.com.

The consulting loophole, revisited

ryanteaguebeckwith — Tue, 28 Apr 2009 10:06:55 -0400

Don 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

ryanteaguebeckwith — Tue, 28 Apr 2009 09:24:51 -0400

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)

Highlights of the state lobbyists report

ryanteaguebeckwith — Mon, 30 Mar 2009 11:45:58 -0400

From Democracy North Carolina's 2007 lobbyist report:

* Don Beason, who retired after a shady loan to disgraced Speaker Jim Black became public, reported earning $145,521 from 16 clients, putting him in 29th place.

* His son, Mark, reported earning $279,423 from 16 clients, putting him in sixth place.

* Elizabeth Dalton, daughter of Lt. Gov. Walter Dalton, reported earning $79,343 from five clients, for 56th place.

* Courtney Crowder, now a lobbyist for Gov. Beverly Perdue, reported earning $42,794 from 10 clients, for 116th place.

* Lanier Cansler, now secretary of Health and Human Services, reported earning $31,110 from four clients, for 159th place.

* Don Vaughan, who was elected a state senator last year, reported earning $22,500 from one client, for 206th place.