News & Observer | newsobserver.com | Jim Black investigation

Published: Jul 20, 2006 12:30 AM
Modified: Jul 20, 2006 05:18 AM

Former Black confidants attend hearing

At the Capitol, the Senate moves to curb lobbyist influence, but an effort to ban fundraising stalls

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REFORM IN WAKE OF CONTROVERSY

State and federal authorities are investigating House Speaker Jim Black's campaign and legislative activities.

Areas of interest include the creation of the state lottery; financial help that Black gave to former Rep. Michael Decker, whose party switch helped Black remain speaker for the 2003-04 session; campaign contributions to Black from chiropractors, video poker operators and his fellow optometrists; and the work of his former unpaid political director, lobbyist Meredith Norris.

The House and Senate have passed several reforms in the wake of the controversies:

* A ban on the personal use of campaign funds by state and local candidates.

* A ban on campaign checks with the payee lines blank. Black used three such checks to direct campaign money to Decker.

* Requiring campaign treasurers to be trained on election law.

* Limiting cash contributions to no more than $50.

* Requiring reporting of contributions that exceed $50 per election.

* More disclosure of electioneering communications by issue-oriented advocacy groups known as 527s.

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In her role as a lobbyist, Norris raised campaign money for Black and other candidates. In e-mail messages to a Charlotte film commission official, Norris recommended hiring several lobbyists who are involved in raising campaign money and suggested lobbyist candidates be run by Black and other legislative leaders.

Norris drew the attention of state and federal investigators after The News & Observer reported in October that her work for lottery vendor Scientific Games appeared to constitute lobbying. Norris and the company had not registered her as a lobbyist. She and the company's former vice president, Alan Middleton, said Norris was just monitoring legislation.

But e-mail messages released by Black's office showed that she had set up a dinner between Middleton and Black and sought to invite lawmakers to a cruise chartered by Middleton during a legislative conference in Seattle. The company later disclosed that Norris had been reimbursed for roughly $3,800 spent wining and dining lawmakers while the lottery bill was being considered.

In May, Wake County District Attorney Colon Willoughby charged Norris, Middleton and Kevin Geddings, a Charlotte public relations executive, with misdemeanor lobbying law violations. Geddings also had worked for Scientific Games to help push the lottery, but he did not disclose the relationship after Black appointed him to the state lottery commission.

That lack of disclosure helped lead the federal grand jury to indict Geddings on mail fraud charges in May. Geddings has pleaded not guilty.

Culpepper played a key role in moving the lottery bill through the House. Black appointed him chairman of a special committee that wrote the lottery bill.

As rules chairman, Culpepper served as Black's traffic cop on legislation that Black favored or opposed. One bill that died in the House Rules Committee could have hurt another Norris client, ElectriCities, a nonprofit that aids municipalities that provide electricity to homes and businesses. The bill, which had more than 50 sponsors in the House, could have limited the nonprofit's municipal clients from expanding their customer bases.

Black, who has said he is not a target of the federal investigation, said he had no idea why Norris and Culpepper visited the federal building.

"I'm not worried about anything," said Black, a Mecklenburg County Democrat. "I haven't done anything wrong, and I'm not worried about anything other than getting the session over with."

Also visiting the Federal Building on Wednesday were Joe Henderson, director of the State Property Office; James Testa, a video poker operator from Kings Mountain who testified before the State Board of Elections about campaign donations he made to former Rep. Michael Decker and another lawmaker; and Raleigh lobbyist John Goodman.

Goodman said he did not testify Wednesday but was told to return today. He speculated that he will be asked about his connections to video poker interests. Goodman has been a registered lobbyist for the N.C. Vending Association and Southland Amusements & Vending.


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Staff writer Dan Kane can be reached at 829-4861 or dkane@newsobserver.com.
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