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State officials call for tighter ethics laws; Governor's failure to report expensive gifts likely to fuel changes to disclosure laws (1 reply)

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State officials call for tighter ethics laws
Governor's failure to report expensive gifts likely to fuel changes to disclosure laws
http://www.fairfaxtimes.com/article/20130725/NEWS/130729530/1117/state-officials-call-for-tighter-ethics-laws&template=fairfaxTimes

The controversy surrounding Gov. Bob McDonnell's relationship with the CEO of a dietary supplements company is prompting some Virginia officials to call for reforms to the state's ethics and disclosure laws.

According to investigations by The Washington Post, McDonnell and members of his family have received expensive gifts from Star Scientific CEO Jonnie Williams, including a $15,000 catering bill for McDonnell's daughter's wedding and a Rolex watch.

McDonnell did not report the gifts to his family members on his disclosure forms.

The governor issued an apology Tuesday “for the embarrassment certain members of my family and I brought upon my beloved Virginia and her citizens,” and said he is repaying nearly $125,000 in what he described as loans from Williams.

McDonnell maintains that he did not break any laws. The matter reportedly is being investigated by the FBI.

“Virginia is a state that relies primarily on disclosure” rather than caps or limits on contributions, said David Poole, executive director of the Virginia Public Access Project, a nonpartisan organization dedicated to making campaign finance and candidate financial interest disclosure statements easily accessible. “The prevailing view in the legislature is that federal efforts to put limits on money in politics has done nothing to limit the amount of money coming into politics.”

Candidates and elected officials in Virginia are required to complete an annual “Statement of Economic Interests,” which lists the business interests, stock holdings, loans and real estate interests of the individual and his or her immediate family members.

It also requires disclosure of gifts valued at more than $50 from someone “other than a relative or personal friend.” While the rest of the form mentions financial interests of immediate family members, the section on gifts is not so specific.

“Virginia law looks like Swiss cheese when it comes to disclosure,” said Stephen Farnsworth, professor of political science and international affairs at the University of Mary Washington. “Many of the things [McDonnell] has done may have been legal, but looked at unfavorably in the court of public opinion.”

Farnsworth said he expects the General Assembly will take up ethics reforms when they reconvene in January.

Democratic candidate for governor Terry McAuliffe said he would place a total ban on any gifts over $100 to himself and members of his immediate family. During a gubernatorial debate Saturday, he also proposed forming a state ethics commission.

His Republican opponent, Ken Cuccinelli, who has also been linked with Williams and has amended his disclosure forms to include gifts from Williams, also said during the debate he supports stricter ethics rules.

“I would support any gift cap or ban,” Cuccinelli said.

The challenge, Cuccinelli said, will be convincing state legislators to enact stricter rules that also will impact them.

“It will be interesting to see whether the pressure of this scandal will force politicians to be more aggressive in limiting donations,” Farnsworth said.

The Republican leadership of the House of Delegates issued a joint statement Tuesday indicating that they would conduct a thorough review of the state's financial disclosure rules.

“Our system relies on the principles of full disclosure and complete transparency. We believe those principles must be upheld by all elected officials,” the statement reads.

They are considering requiring reporting of gifts to family members, changing reporting periods and instituting disclosure compliance training for elected officials.

Not all critics of the governor's actions necessarily think stricter laws are needed. State Sen. Chap Petersen (D-Dist. 34), who had said prior to McDonnell's actions Tuesday that the governor should either apologize and return the gifts or resign, believes the laws in place are sufficient.

“I don't agree with the presupposition that our laws are weak,” he said.

Petersen believes that the gifts to McDonnell's family members should have been reported under existing laws.

“If somebody gives a gift to your spouse or one of your children, then that is a gift to you,” he said.

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