This news story originally provided by The Charleston Gazette

4/9/04

Hedda Haning: Electronic voting machines could pose a problem

WHICH candidate do you support for secretary of state in the May primary? As a guide, The Gazette recently published brief profiles of the candidates. Unfortunately, one crucial piece of information was missing. It has to do with voting machines.

One of the secretary of state’s two major functions involves oversight of the elections system as administered locally in each of the counties. While the counties ultimately purchase and pay for voting machines, the secretary of state along with the Elections Commission inspect and test potential voting systems, provide information and make recommendations. In addition, under the Help America Vote Act (HAVA) the secretary of state controls federal money used to bring the counties into compliance with new U.S. standards.

Voting machines are a major capital expense. Our group, West Virginia Citizens for HAVA, has been very concerned that the voting machines we buy be a good choice and not a major mistake. As the old saying goes “Let’s not jump from the frying pan into the fire.” For that reason, we have been following the secretary of state’s decisions closely and are strongly supportive of Secretary Joe Manchin’s pledge not to purchase electronic voting machines until they have a voter-verifiable, auditable, paper trail.

Touch-screen electronic voting machines, familiarly called DREs, which initially seemed the dream machine, are actually fatally flawed. There is no way to truly do a recount on a DRE, because there is nothing to recount. One must accept the machine-reported outcome — although the count is done in a “black box,” in secret, with no possible oversight of the methodology or the software that drives it. Most importantly, any computer programmer will tell you there is no necessary relation between what appears on the computer’s screen and what the software is doing inside. The election could be tampered without anyone knowing.

You expect a receipt from your ATM or retail purchases. Why take your election results on trust? Really, trust is not a good election strategy. Remember Florida.

With that in mind, we contacted the candidates for secretary of state to alert them to our concerns and to probe their positions. We were very pleased with the responses, given here in the order of their receipt. Unfortunately, Larrie Bailey did not respond.

Ken Hechler said in his letter: “I will follow Secretary Manchin’s lead in preventing the purchase of voting machines which do not possess a verifiable paper trail. I will also encourage the Legislature to encode these decisions in state law and petition the U.S. Senate and House of Representatives to enact the Voter Confidence and Increased Accessibility Act”

Donna J. Acord wrote: “I agree with Secretary Manchin’s pledge not to purchase DRE [touch-screen] voting machines until they are tamper-proof and provide an auditable record of the vote. Having a paper trail is a must if we are going to protect the integrity of the voting process. You also have my pledge to continue Secretary Manchin’s policies, particularly those in relation to Voter Verifiable Auditable Paper Trail. I will also use my influence to encourage the Legislature to encode these decisions in state law so they cannot be changed by individuals or political whim.”

Natalie Tenant confirmed a pro-paper-trail stance on the phone and her campaign literature states: “I have tested some of the proposed electronic voting systems. Before we move forward, they must be secure, accurate and allow for a paper trail.”

George Daugherty’s letter said: “I too am very interested in Secretary Manchin’s pledge and I agree wholeheartedly with his and your position. I assure you I will do everything within my power to see to it that every vote is counted accurately....”

Betty Ireland confirmed her support of our position by phone and then sent an emphatic e-mail: “YES, I support the use of a paper trail with electronic voting.”

Mike Oliverio had already written an extensive article on voting machines, which he sent to us. It says in part: “Touch-screen voting systems at their core are still computers, which may be manipulated by knowledgeable hackers. What one sees on the screen may not be what is recorded. This very problem has occurred in various electronic slot machines in Nevada (similar technology), creating lawsuits from those who witnessed the machine’s screen telling them they had hit the jackpot, only to find that what was recorded on the inside was a loss — and having that judgment stand. The only conceivable solution is a paper trail. Printing a receipt, which can then be used in case of a contested election, can create a rightful sense of safety in the most important civic duty that civilians can do.”

Roger Pritt’s representative called to say that he supports a paper trail on voting machines.

One of these candidates will be our secretary of state next year. Fortunately, the respondents demonstrate their understanding of the perils of electronic voting without a paper trail. This is one area in which West Virginia can stay ahead of other states and avoid the problems that already plague them. All responding candidates have pledged to protect the sanctity of our elections. Let’s hold the winner to it.

Dr. Haning, a Charleston anesthesiologist, is a leader of West Virginia Citizens for HAVA.

This news story originally provided by The Charleston Gazette

4/19/04

Lawyers, health industry top donors in court race

By Chris Wetterich
STAFF WRITER

Supreme Court Justice Warren McGraw received most of his campaign contributions from consumer and other lawyers, while Greenbrier Circuit Judge Jim Rowe’s kitty consists mostly of donations from the health-care industry and other businesses, according to an analysis.

The two Democrats are running against each other in a hotly contested race for state Supreme Court in the May 11 primary. McGraw, who has been in public service for decades, is being challenged by Rowe, an eight-year circuit judge and former state legislator.

So far, Rowe has beaten McGraw in fund raising, collecting $526,937 to McGraw’s $372,565, according to campaign statistics released at the beginning of the month.

While both candidates strenuously argue they are beholden to no interest groups and will rule evenhandedly from the bench, the breakdown in individual campaign contributions shows where donors believe each candidate’s judicial philosophy lies.

Rowe has been billed by supporters in the business community as someone who will vote for decisions more favorable to the state’s economic climate and job growth. McGraw is viewed by many as a populist on whom workers and labor can count. He has said many times that his beliefs come from a lifetime of watching people struggle.

The analysis, put together by the West Virginia Citizen Action Group, a public interest group, shows Rowe leading in contributions from business. People working in health care are his top contributors, doling out $143,499 and making up 38 percent of the contributions CAG was able to link with a particular industry. Lawyers who defend corporations and the coal, insurance and construction industries are Rowe’s other big contributors.

Nearly all of McGraw’s money comes from lawyers, many of whom bring cases on behalf of consumers, according to the study. Plaintiffs’ lawyers gave $136,239 and made up 38 percent of the contributions CAG was able to link to a particular industry.

Other lawyers gave $113,885, or 32 percent. McGraw also loaned himself $62,166, more than two-thirds of his $95,000-a-year salary.

Robert Rupp, a political science professor at West Virginia Wesleyan University, said this year’s Supreme Court race has joined a nationwide trend where more contributors are coming from outside the legal profession.

In Ohio’s Supreme Court race in 2000, the U.S. Chamber of Commerce and other business interests mobilized a failed effort to defeat Justice Alice Robie Resnick, who, like McGraw, is considered to vote against them in cases before the court.

“This is very unusual in a Democratic primary. For one, the amount of money being used. Two, the stark division between contributors,” he said. “Except for trial lawyers, almost everyone else appears on the other side of McGraw. It sends the message that McGraw is vulnerable; otherwise, they wouldn’t contribute.”

Rupp said the amount of contributions outside the legal system shows the importance of the judicial system in the nation’s political life.

“The last off-limits races [for interest groups] have been in the courts,” he said. “They used to be the poor man’s son. They’ve risen in importance. In the old days, if I wanted to change something, I would go to the Legislature. Now, I’d think about going to get a lawyer.”

Neither campaign was surprised by the results of the analysis. McGraw’s spokesman, Andy Gallagher, said business wants to get something out of the money it’s spending on Rowe.

“Suddenly you have an influx of big money, big bucks and big lies,” Gallagher said. “I don’t think they sincerely support Jim Rowe as much as they’re opposed to Warren McGraw. I think they would have backed my dog if it had run against Warren McGraw.”

Gallagher added that he saw nothing wrong with the actual contributions coming into both campaigns from people who will be before the court.

“Lawyers traditionally fund judicial races,” he said. “As long as you’re going to have publicly elected judges, you’re going to have special interests contributing.”

Rowe’s campaign manager, Gray Marion, said the judge’s wide array of contributors shows how deep his support is.

“One thing it underscores: Jim Rowe is beholden to no interest group. Our support is coming from so many different areas, it warms your heart,” Marion said. “He [McGraw] has no appeal beyond that narrow, self-interested segment.”

To contact staff writer Chris Wetterich, use e-mail or call 348-3023.

This news story originally provided by The Charleston Gazette

4/20/04

Touch-screen voting breakdowns outlined

By Scott Finn
STAFF WRITER

In Broward County, Fla., touch-screen voting machines failed to record the votes of 134 people in a January special election for Congress. Republican Ellyn Bogdanoff won by only 12 votes.

In Bernalillo County, N.M., about 48,000 people voted in a November 2002 election, but touch-screen machines counted about 36,000 votes.

In Hinds County, Miss., so many touch-screen machines broke down last November that the election was declared invalid and was held again in February.

These stories are compiled in a new report about touch-screen voting called “Myth Breakers for Election Officials.” Local clean-elections advocates plan to distribute the report to all 55 county clerks, starting today in Kanawha County.

After the Florida election of 2000, voters were made aware of the problems caused by punch-card voting — like the type still used in Kanawha County. Congress rushed to pass the Help America Vote Act (HAVA), to provide funding for new, more reliable machines.

But touch-screen computer voting can be just as problematic as punch cards, said Hedda Haning, leader of the group West Virginia Citizens for HAVA.

Also, with touch-screen machines, there is no voter-verified paper trail, causing no way to do an accurate recount, or to know for sure whether the machines actually counted your vote correctly, she said.

“Our main concern is there is no relationship between what the computer is doing inside and what you see. And without paper, there is no way to verify it at all,” Haning said.

For example, voters in Georgia complained the touch-screens recorded “yes” votes for a sales tax, when they voted “no.” In Texas, several Democrats said they selected a Democratic candidate, but their vote appeared next to the Republican’s name on the screen, according to the “Myth Breakers” report, published by the non-partisan group Voters Unite.

Only one county in West Virginia, Cabell, currently uses the machines. In a 2002 state Senate election, Democrat Evan Jenkins beat Republican Tom Scott in Cabell County by only 46 votes, less than two-tenths of one percent of the votes cast.

Secretary of State Joe Manchin wants to require a paper ballot to be printed and verified by voters who use touch-screen machines. Almost all of the candidates for secretary of state also support some sort of paper-trail requirement.

But county clerks, not the secretary of state, have the ultimate say in what voting system to choose. That is the reason for the education effort, Haning said.

West Virginia Citizen Action Group also is helping to distribute the report. The state Legislature should require a voter-verified paper trail for touch-screen machines, said Julie Archer, the group’s spokeswoman.

Sen. Larry Rowe, D-Kanawha, sponsored a bill that would have done just that late in this year’s legislative session, but the bill died.

Under the federal Help America Vote Act, counties with antiquated paper or punch-card ballots have to upgrade to electronic balloting by 2006.

Manchin had hoped to complete the upgrades this year, but put the plan on hold last summer after published reports showed that some of the computerized systems are vulnerable to computer hackers.

On the Web: www.votersunite.org

To contact staff writer Scott Finn, use e-mail or call 357-4323.

This news story originally provided by AP and The Daily Mail

4/21/04

Use of touch screens expands to Wayne County with early voting

By JENNIFER BUNDY
Associated Press Writer

CHARLESTON, W.Va. (AP) -- Wayne County residents got their first crack at the voting system of the future as early voting began Wednesday in West Virginia.

Those who cast ballots at the courthouse in Wayne during the early voting period, which ends May 8, will for the first time vote on a touch screen machine.

Marion, Monongalia and Lewis counties began using touch screen machines for early voting in 2002. Cabell has been using them for all voting since the general election of 2000.

On election day, 29 counties use optical scan voting machines, 12 use punch card ballots, 10 use paper ballots and three use lever machines.

All 55 counties are expected to eventually use touch screen machines for all voting because the federal Help America Vote Act of 2002 requires that by 2006 every precinct have at least one voting machine that is handicapped accessible. The only type of machine that meets that criteria and can be used by blind voters without assistance is a touch screen, said Cindy Smith, team leader for elections in the Secretary of State's Office.

"It would be difficult to run a polling place with two different systems,'' Smith said. "A lot of counties have considered switching their system when that occurs. ... It will help reduce confusion for poll workers and voters.''

Counties are delaying the change because the federal government has not provided money to buy the machines. Also, critics say there are too many problems with touch screen machines to rely on them.

In Super Tuesday primaries last month, touch screens in California's San Diego County failed to boot properly, causing delays of up to two hours and forcing some voters to other polling places -- where they cast paper ballots. Other counties in California, Georgia and Maryland reported problems with encoders, the devices that allow touch-screen computers to display candidate and ballot measures specific to one county.

A clean election advocacy group, VotersUnite!, this week is distributing a guide to federal law requirements and electronic voting machines to elections officials in West Virginia and 21 other states. The guide recommends either paper ballots read by optical scan machines or hand counted, or touch screens that produce voter-verified printed ballots and have audio read-back for visually impaired voters.

In West Virginia, some elections officials say the touch screen machines work well and some say they don't.

In Marion County, a software problem caused the county's vote count in a Jan. 24 school levy election to indicate more than 10,000 people voted when in fact less than 4,000 people voted, said County Clerk Janice Cosco.

The county used touch screen machines in early voting and optical scan devices on election day. Both accurately counted votes. The problem occurred when the two vote counts were merged.

"We had more votes cast than people in the precincts. We knew we had something wrong,'' Cosco said. The office manually merged the counts to come up with the right numbers.

"We do believe everything is fixed and ready to go for this election,'' Cosco said.

Monongalia County had similar problems with the same software in the 2002 primary, but they also have been resolved, said County Clerk Michael Oliverio. Lewis County has not had that problem because it manually merges the touch screen votes cast in early voting with paper ballots counted by optical scanners on election day, said County Clerk Mary Lou Myers.

Cabell County officials switched to electronic voting for all voting in 2000 after the city of Huntington changed its election cycle so its municipal elections would be at the same time as county elections.

There were too many candidates in the primary to fit on the punch card ballot, so the county switched to an optical scanner system. That proved too expensive, so it switched to touch screen voting in the general election.

"It went very well,'' said Cabell County Clerk Karen Cole said.

Although there is no paper trail, votes are stored on a digital flash card in the back of every terminal.

"We can take that and download the ballot images for every ballot that was put on that voting terminal,'' Cole said.

In the 2002 general election, Democrat Evan Jenkins beat Republican Tom Scott in a Cabell County state Senate race by only 46 votes. In a re-count, elections officials printed all the ballots and did a hand count.

"It was accurate. It was to the vote,'' Cole said.

Wayne County, which uses lever voting machines on election day, is switching to touch screens for early voting because a 2003 change in state law requires absentee and early ballots to be counted at the precincts where the voter normally would have cast a ballot.

The county has 16 ballot setups to accommodate several legislative and municipal districts, so it would have had to set up 16 lever machines in the courthouse. There simply isn't room, said Clerk Robert Pasley.

Pasley is confident the touch screen machines will work because of the tests he has seen. But he is not happy with being forced to switch to them for all voting by 2006.

"There is nothing wrong with our machines. We have used them for 33 years in our county.''

This news story originally provided by The Charleston Gazette

4/21/04

Citizen Action Group to hold spring dinner

The West Virginia Citizen Action Group’s Annual Spring Dinner takes place Friday at Coonskin Park Clubhouse.

The event begins with a reception and bids for a silent auction at 5:30 p.m., a buffet dinner at 6:15 p.m. and awards presentation at 7:30 p.m.

Associated Press reporter Martha Bryson Hodel will receive the Don Marsh Public Service Award; Kate Long will receive the Thomas A. Knight Excalibur Award; and state Supreme Court Justice Warren McGraw will receive the In Defense of Democracy Award and also be the keynote speaker.

Tickets are $30. For information, call 346-5891 or e-mail Linda@wvcag.org.

This news story originally provided by The Sunday Gazette-Mail

4/25/04

Senator, friend lent millions to golf club

Ross' perks include free food, drinks, golf, merchandise for life at Pete Dye

By Scott Finn
Staff Writer

In 2001, the Pete Dye Golf Club in Bridgeport was in financial trouble. A powerful state senator and his friend in the oil and gas business bailed it out with a $7.7 million loan.

In return, they received a compensation package that is every golfer’s dream. Sen. Mike Ross, D-Randolph, Ike Morris, and six of their friends are now able to:

• Take whatever they want out of the golf shop without paying for it.
• Golf free for life.
• Eat or drink anything at the clubhouse at nocharge.
• And when they die, they will be able to pass along those benefits to their heirs, according to a contract on file at the Harrison County Court-house.

They also bought 170 acres of land bordering the golf course, including one property bisected by a four-lane road being built by the state, according to Har-

rison County property records. Ross is chairman of the Senate Transportation Committee.

Last month, Ross voted for a bill that gives $750,000 to the Pete Dye West Virginia Classic, a PGA tour event scheduled for July at the Pete Dye Golf Club. Taxpayers will cover the $600,000 purse and advertising costs on the Golf Channel.

Critics say Ross has abused his power as a senator to benefit himself and his business partners, in violation of the West Virginia Ethics Act.

“The perks Ross got are not illegal,” said Norm Steenstra, director of the West Virginia Citizen Action Group in Charleston. “What makes this stink is that public money was used to help prop up his investment.”

Ross did not return a phone call Friday seeking comment. In an interview earlier this month, he said he saw no conflict of interest in voting for the money for the tournament.

“It’s no more [a conflict] than teachers voting on a salary increase, or me voting on a oil or gas interest,” he said. “It’s a class interest, not a personal interest.”

Ross said the money will go to the golf tournament, and not to the golf club itself.

Steenstra said the tournament benefits the golf course, from exposure on the Golf Channel and spending by thousands of visitors.

Tournament organizers are expected to make $250,000 in improvements to the golf course itself, according to a November letter from West Virginia Development Director David Satterfield to a tournament organizer.

With the state paying for the purse and advertising, the tournament should generate enough income to pay for the course upgrade.

Steenstra also criticized Ross because he did not list the $7.7 million loan on his financial-disclosure statement, which state law requires for most loans of more than $12,500.

He also did not list the free merchandise, food, drinks and memberships he received under “gifts” on the disclosure form, either. State law requires disclosure of gifts worth more than $500 from nonfamily members.

A club membership costs at least $15,000, according to previous news reports, and annual dues are thousands per year. That means the perks Ross and Morris received are worth at least $120,000, without counting free merchandise, beverages, and food.

‘Warner Road’

On Feb. 10, Ross co-sponsored a resolution to rename the road to the Pete Dye Golf Club after state Delegate Barbara Warner, D-Harrison, chairwoman of the House Transportation and Roads Committee.

Two weeks later, Warner and other co-sponsors introduced the bill to give $750,000 to the golf tournament.

W.Va. 24, known as Meadowbrook Road, is scheduled to be widened to four lanes from Interstate 79 to Shinnston. The first phase of the expansion ends near the golf course, and the road eventually will bisect property owned by Ross and Morris, according to property maps.

Warner has been a chief supporter of the project, despite opposition by some local residents who say the road is unnecessary.

Sen. Andy McKenzie, R-Ohio, was the only member of the Senate Transportation Committee to vote against the resolution. He said he had nothing against Warner, but he believes roads should not be named after politicians unless they are retired or dead.

McKenzie said Ross was the only person to defend the resolution when he questioned it in the Transportation Committee.

“Without a doubt, it was his resolution,” McKenzie said.

The resolution passed the Senate, but House leadership decided not to bring it to a vote after the Clarksburg Exponent-Telegram ran a front-page article about it. In the Feb. 12 article, Warner said she did not want the road named after her.

“They’ve been talking about doing it for some time,” she said. “It’s not my idea, and I don’t have any interest in having my name on a road. I always thought roads were named for dead people.”

In the same article, Ross said he and Warner had an excellent working relationship.

“We’re recognizing her for all of her efforts,” Ross said. “She’s largely responsible for the road being built and upgraded. We hope to extend that road right on through.”

A troubled course

World-famous golf course architect Pete Dye was skeptical the first time he saw the reclaimed strip mine that eventually would bear his name.

“Out I went to this god-forsaken property, through brush, high weeds, unclaimed spoil piles, and coal-gob mounds, which are as disgusting as they sound,” he said in a 1995 Charleston Gazette interview.

But Clarksburg coal operator James D. LaRosa, who owned the land, was persistent. Dye described him as the “toughest, most tenacious, never-give-up son-of-a-gun I’ve ever worked for.”

The 18-hole course Dye designed was finished 10 years ago. One golf critic said it “somehow resembles Ballybunion, that shaggy, stormy jewel on Ireland’s west coast.”

Since then, Golf Week Magazine has named it one of the four best modern courses in the country.

The course also has changed hands twice, and its owners have left behind a trail of unpaid bills and accusations of fraud, according to court records.

Four years after they finished building the course, LaRosa and his son, James J. LaRosa, sold it for $10 million to Golf Trust America, a publicly traded company that owned several courses across the country. The LaRosas continued to lease and operate the course for the company.

But the golf industry built too many courses in that decade. In 2000, the recession hit and tourism took a dive. Golf Trust America began to hemorrhage money, and started to sell its golf courses.

Meanwhile, the LaRosas stopped making lease payments to Golf Trust America. In June 2000, the company terminated the lease for nonpayment of rent, according to documents filed with the U.S. Securities and Exchange Commission.

The company still allowed the LaRosas to operate the course, however. (Eventually, Golf Trust America sued them in federal court and won a $232,000 judgment.)

On Dec. 19, 2001, Golf Trust America sold the course back to the LaRosas, operating under the name Golf and Fairway LLC, for $13.4 million.

On the same day, Mike Ross Inc., a company owned by Ross and his family, and Ike Morris loaned the LaRosas almost $7.7 million. They also bought 170 acres from James D. LaRosa next to the golf course for $200,000, according to property records.

Dec. 19 also is the day Ross, Morris and LaRosa signed the agreement to give Ross and Morris eight free memberships and other perks. It says “eight memberships to the Club will be issued to Morris and Ross ... free of all costs. ... These memberships are freely assignable by Morris, Ross and their Designees ... .”

It also says that Ross, Morris and their six designees:

• “Will be entitled to consume all or any portion of the food and beverages sold in any clubhouse, restaurant, bar or other facility located on the Property free of all cost ... .”
• “Will be entitled to any golf merchandise sold in any clubhouse, restaurant, bar or other facility located on the Property free of all cost...”

After they bought the golf course back from Golf Trust America, the LaRosas appear to have run into more financial problems. One of their companies, Burning Embers, has been delinquent in its state unemployment premiums more than 20 times in the past several years, according to a 2003 Gazette article.

The LaRosas also continued to borrow more money, according to courthouse records. In November 2002, they borrowed $450,000 from David Rexroad of Buckhannon. As security, they gave him an option to purchase an interest in coal property they owned.

In March 2003, the LaRosas asked for more money from Ross and Morris. They agreed, in exchange for the option to purchase the same coal property promised to Rexroad.

Ross, Morris, Rexroad and the LaRosas now are embroiled in a legal battle over who really has the right to purchase the coal property. Lawsuits and counter-suits were filed late last year in Randolph and Upshur circuit courts.

In March, lawyers for Ross and Morris amended their lawsuit to accuse the LaRosas and Rexroad of working together to “fraudulently conceal” their previous agreement over who could repurchase the coal property.

The lawsuit also says that the LaRosas’ total debt to Mike Ross, Inc. and Morris is $8.44 million: the original loan of $7,697,000, plus a $743,000 “premium,” plus $250,000 in other debts.

A state commitment

While Ross, Morris and the LaRosas battled in court, state officials were working hard to help the Pete Dye Golf Club.

In October, Gov. Bob Wise announced that the club would be the state’s first tax-increment financing project. If the Harrison County Commission gives its final approval, the area’s property taxes will be frozen for 20 years.

Wise said developers would borrow $40 million to help build 400 luxury homes, a central spa and a sporting club. Any increased property taxes as a result of the development would pay back the bond.

To complete the project, the LaRosas partnered with The Greenbrier hotel and its president, Ted Kleisner, as well as The Greenbrier’s developer, Dolan, Pollak and Schram.

Meanwhile, the state Development Office was working to bring West Virginia’s only PGA tour event to Pete Dye Golf Club.

In November, Satterfield wrote to James J. LaRosa about the planned event. He promised the state would cover up to $1.2 million in losses if the tournament lost money.

“Please let this letter also serve as a commitment on behalf of the State of West Virginia to provide the following,” Satterfield wrote, including:

• $250,000 for improvements to the golf course;
• Prize money, television fees, and operational costs;
• Development office staff time, including help from a $15,000-a-month consultant, Rick Horrow.

The letter said the state would try to provide similar guarantees for years two and three of the tournament, and allowed the PGA to terminate its agreement if the state did not.

Satterfield also promised $150,000 of state money controlled by the independent Tourism Commission.

On Dec. 3, a nonprofit organization, Golf Charities LLC, was incorporated to run the event. Its executive director is Tim McNeely, who helped attract the tournament when he was still the state Development Office’s chief lawyer.

Wise’s former chief of staff, Mike Garrison, is listed as the group’s “notice of process address” on incorporation records.

According to McNeely, Golf Charities’ three founding members are Gary Grandstaff, superintendent of the golf course; Pete Dye, the course designer; and James J. LaRosa.

On Dec. 4, Wise announced that the tournament would come to Pete Dye Golf Club — about two weeks before Ross and Morris filed their lawsuit against LaRosa.

In March, Delegate Warner and others sponsored the bill to take $750,000 from the Tourism Commission and give it to the Pete Dye tournament.

It passed the West Virginia Senate on March 12, the second-to-last day of the regular session, by a 25-8 vote.

Supporters of the tournament said it will bring thousands of tourists to the state, and improve West Virginia’s image.

Sen. Randy White, D-Webster, spoke against the bill. He said the money could bring water service to 200 families in his county.

Sen. McKenzie voted for the bill, but says he would change his vote now, if he could.

“We’re tight on funds,” McKenzie said. “This sent the wrong message.”

To contact staff writer Scott Finn, use e-mail or call 357-4323.

This news story originally provided by The Charleston Gazette

4/26/04

Complaint planned against state senator

Ross’ vote helps golf course he has ties to, group says

By Scott Finn
Staff Writer

West Virginia Citizen Action Group plans to file an ethics complaint today against Sen. Mike Ross, D-Randolph, because he voted to give money to a golf tournament held at a course where he owned land, and whose owners owed him about $8 million.

The complaint also says that Ross did not disclose his interest in the Pete Dye Golf Club on his annual financial statement as required by state law.

The Charleston-based nonprofit wants the state Ethics Commission to censure and fine Ross for alleged violations of the Ethics Act, said Director Norm Steenstra.

“When public power is used for personal gain, it erodes people’s confidence in government,” Steenstra said. “If this isn’t illegal, it should be.”

Ross did not return phone messages left Thursday, Friday and Sunday asking for comment.

Ross voted last month to appropriate $750,000 to the Pete Dye West Virginia Classic, a PGA Tour event scheduled for July at the Pete Dye Golf Club in Bridgeport.

Ross’ company, Mike Ross Inc., and his friend in the oil and gas business, Ike Morris, loaned $7.7 million to the owners of the course in December 2001, according to documents on file at the Harrison County Courthouse.

As part of the deal, Ross, Morris and six of their friends are now able to golf free for life, eat and drink at the clubhouse at no charge, and take anything they want from the golf shop without paying for it.

Ross and Morris also bought 170 acres bordering the course, including one property bisected by a four-lane highway being built by the state, according to Harrison County property records. Ross is chairman of the Senate Transportation Committee.

“Isn’t it coincidental that he oversees the Division of Highways, and the four-lane highway just happens to go by his property? It stinks,” Steenstra said.

In a previous interview, Ross said he saw no conflict of interest in voting for money for the tournament.

“It’s no more [a conflict] than teachers voting on a salary increase, or me voting on an oil or gas interest,” Ross said. Ross owns several oil and gas companies. “It’s a class interest, not a personal interest.”

The money does not go to the golf club, but the tournament, which is being run by Golf Charities LLC, a nonprofit group.

One of the three founders of Golf Charities is James J. LaRosa, whose family owns Pete Dye Golf Club.

The $750,000 in state money will pay for prizes and advertising on the Golf Channel, which plans to cover the July event.

Steenstra said Pete Dye Golf Club and Ross will benefit from the national exposure and thousands of expected visitors — as well as the estimated $250,000 in course upgrades that Golf Charities is expected to make, according to a November letter from state Development Director David Satterfield to LaRosa.

The state ethics law says a lawmaker “may not knowingly and intentionally use his or her office or the prestige of his or her office for his or her own private gain.”

It also requires the disclosure of most loans worth more than $12,500, and most gifts of more than $50.

But the law contains an exception for “debts which result from the ordinary conduct of such person’s business.”

And it’s not clear whether the golf perks Ross received qualify as a gift under current law.

Steenstra said the state’s ethics laws are not working. He pointed to recent revelations involving House Education Chairman Jerry Mezzatesta, D-Hampshire; Delegate Donna Renner, D-Marion; Sen. Billy Wayne Bailey, D-Wyoming; and Republican Party Chairman Kris Warner.

“Either the law doesn’t have enough teeth, or the loopholes are too broad, or enforcement is lacking,” he said. “We are going to make it a priority to pass a stronger ethics law next year.”

To contact staff writer Scott Finn, use e-mail or call 357-4323.

This news story originally provided by The Charleston Gazette

4/27/04

Senator apologizes for vote on tournament funding

By Phil Kabler
Staff Writer

Sen. Mike Ross, D-Randolph, said he will abide by whatever decision the state Ethics Commission makes on an ethics complaint filed against him Monday.

“If I did anything wrong, I’m willing to pay the price, but I don’t think I did anything wrong,” he said.

Later Monday, the West Virginia Citizen Action Group filed a complaint against Ross alleging he violated the ethics law by voting on a bill to give $750,000 to fund a tournament at the Pete Dye Golf Course near Bridgeport, and for failing to disclose a $7.7 million loan to the course’s developer.

Ross said at the time he voted for legislation to provide $750,000 of state funds for the Pete Dye West Virginia Classic, he did so because he does not believe he directly benefits from that appropriation.

Ross said the day after that golf tournament ends, the $7.7 million loan his company made to the golf club’s developer will still be on the books.

Ross said, in retrospect, he probably should have recused himself from that vote. The bill passed the Senate 25-8.

“I just want to apologize to the people of West Virginia for voting that way, and creating the perception I was getting something for nothing,” Ross said.

Ross also said he did not include any information about the loan on his annual financial disclosure with the Ethics Commission, because the loan was from his corporation, not a personal loan.

Ethics Commission Executive Director Lew Brewer said the issue is somewhat of a gray area in the state law, since the issue of corporate loans has not come before the commission.

He said, in general terms, Ross is correct that public officials do not have to report any loans or debts resulting from the ordinary conduct of their businesses, professions or occupations.

The disclosure forms themselves state, “You do not have to report debts resulting from the ordinary conduct of your business, profession or occupation.”

“If it was a loan from ABC Inc., in which you own 50 percent, I don’t know if you have to report it at all,” Brewer said.

“The question here is, is this a debt in your name or in any other person’s name for your use or benefit?” he said of the law.

Norm Steenstra, executive director of WV-CAG, said Monday that if state ethics law does not require disclosure of loans such as the one Ross’ company made, it should.

“If financial disclosure reports are to have any meaning, it’s clear that a $7.7 million loan from your company to a business that receives a government subsidy, or free drinks, free food and free golfing merchandise, should be disclosed,” he said.

He said WV-CAG will lobby for strengthening the state ethics law next legislative session.

To contact staff writer Phil Kabler, use e-mail or call 348-1220.