Lobbyists pay legislators' way to Caribbean

From the Chicago Tribune

Lobbyists pay legislators' way to Caribbean
50 firms kick in so Latino Caucus can fly through loophole to resort
By Laurie Cohen and Ray Gibson
Tribune staff reporters
Published October 20, 2004
Struggling to restore confidence in a state government battered by scandal, Illinois lawmakers late last year passed sweeping ethics reforms that included new restrictions on gifts from those who could influence them.
But two weeks ago, a large group of legislators passed through a gaping loophole in that law on their way to a posh Puerto Rican resort in a trip paid for by companies and lobbyists seeking favors from the state, a Tribune investigation has found.
The retreat at the luxury beachfront Caribe Hilton hotel in San Juan for 11 members of the Illinois Legislative Latino Caucus was held Oct. 7-11. It was sponsored by about 50 companies, many of which sent their lobbyists or representatives.
The sponsors, including SBC Illinois, Harrah's and Commonwealth Edison, were asked to pay between $3,000 and $10,000 to the caucus to cover lawmakers' airfare, hotel rooms and meals.
Besides the legislators, another participant in the San Juan retreat was Jesse Ruiz, the lawyer for the Latino caucus who was also recently named by Gov. Rod Blagojevich to chair the Illinois State Board of Education. Ruiz said his airfare and hotel bills were also picked up.
One full day of the program was devoted to caucus meetings, according to participants and an agenda obtained by the Tribune. But the schedule also allowed plenty of time for recreational and social activities, including a golf outing, shopping, beach trips and cocktail receptions.
The San Juan trip offers a rare glimpse at how Illinois legislators take advantage of a loophole in Illinois law to attend "educational missions," which critics often dismiss as junkets.
Under the state ethics law passed late last year, legislators and state officials generally are barred from taking large gifts from lobbyists. For example, they can't accept food and drink costing more than $75 a day.
However, Illinois law for years has allowed lawmakers to accept unlimited amounts of money from lobbyists for "educational missions." The 2003 law left the task of defining what constitutes an educational mission to a new Legislative Ethics Commission, which hasn't yet issued rules.
"It's certainly a question that we should look into," said Tom Homer, who was recently named legislative inspector general.
The Latino caucus trip "is a good example of why you need rules," said Cindi Canary, director of the Illinois Campaign for Political Reform, a non-profit watchdog group. "At what level does fun and games outweigh whatever work is taking place?"
State Rep. Edward Acevedo (D-Chicago), co-chairman of the caucus, said the retreat was a working trip. "We were there to do some work," he said. "We were setting our agenda and preparing for the veto session," which begins Nov. 8.
The restrictions on lobbyist expenditures contained in the new ethics law were designed to put some limits on what once had been a freewheeling tradition in Illinois of legislators and other public officials' being wined and dined as well as treated to golf outings and expensive sports tickets by lobbyists.
Most of that entertaining, however, was done locally. State political experts said it has not been common for lobbyists to bankroll out-of-state trips for legislators.
One exception occurred earlier this year when members of the legislature's black caucus held a retreat in New Orleans, paid for by 15 to 20 lobbyists, according to Rep. Arthur Turner (D-Chicago).
The San Juan trip was the third annual retreat for the Latino caucus. Previously, the group held meetings in Guadalajara, Mexico, and Lake Geneva, Wis., said Ruiz. It was not clear how those earlier trips were funded.
Companies and lobbyists could pay $3,000 to be bronze, $5,000 for silver or $10,000 to be gold sponsors.
Doug McFarlan, a spokesman for Midwest Generation LLC, said the company chose to be a bronze sponsor, contributing $3,000, "to support a discussion of public policy issues."
"We are a major business interest in the Latino community," and the donation is "really consistent with community support," McFarlan said.
The company owns coal-fired power plants in Chicago's largely Hispanic Little Village and Pilsen neighborhoods that have been criticized by environmentalists for toxic emissions.
Harrah's, the casino operator, provided $5,000 for the event, and Commonwealth Edison donated $3,000. Tabrina Davis, a spokeswoman for the utility, noted that the Hispanic population is one of the most rapidly growing in the state.
Another sponsor was the law firm Greenberg Traurig, where Victor Reyes, former aide to Mayor Richard Daley and head of the politically powerful Hispanic Democratic Organization, is a partner.
Lobbyist Gabriel Lopez said he gave a presentation at the retreat on behalf of a client, Alternative Schools Network, a non-profit group that provides alternative educational programs for high-school dropouts. The group had just lost $1.9 million in state funding, Lopez said.
Although Illinois law requires that lobbyists file reports of their expenditures, the payments to the caucus apparently don't need to be disclosed. Lobbyists contacted by the Tribune said they aren't required to report the payments educational missions aren't covered by state ethics law.
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The caucus' trip: What, where, how
- What: 11 of 13 members of the Illinois Legislative Latino Caucus were flown to Puerto Rico and treated to lodging, meals and recreation by 50 companies.
- Purpose: The caucus describes the trip as an educational mission to set its agenda for the veto session.
- When: Oct. 7-11
- Where: Caribe Hilton San Juan, a luxury beachfront hotel near the Old San Juan historic district.
- Sponsors: Harrah's casinos, SBC Illinois, Commonwealth Edison, Balmoral Race Track, Illinois Realtors Association, Midwest Generation LLC, among others.
- Costs: Sponsors were asked to contribute between $3,000 and $10,000 each.