GOP hires private eye to probe movie makers' tax breaks
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HARRISBURG -- Against Gov. Ed Rendell's wishes, a Republican-controlled Senate committee has hired a Chester County firm to investigate the lobbying that went on in June and July to win tax breaks for film companies that shoot movies in Pennsylvania.
The Senate's State Government Committee has hired the firm of Cloud, Feehery & Richter of West Chester at a fee of not more than $9,000 to examine the lobbying efforts by Lionsgate, a Santa Monica, Calif., movie maker, Sen. Jeffrey Piccola, R-Dauphin, said yesterday.
Lionsgate's lobbyists include former House Democratic Whip Mike Veon of Beaver County and Leslie M. McCombs of Pittsburgh, who also lobbies for the University of Pittsburgh Medical Center. Mr. Rendell considers Ms. McCombs a personal friend and supporter but both of them say there is nothing inappropriate about their relationship and it had nothing to do with the tax credits.
The investigation is to be completed by Dec. 31. The firm's fee includes up to 60 hours of work at $125 an hour plus expenses of up to $1,500. The money will come from a Senate GOP leadership account.
Mr. Piccola said he was "encouraged" the firm has been hired.
"They now need to be given the opportunity to analyze the facts surrounding the enactment of the film tax credit by conducting research and interviews."
Mr. Rendell said last week he didn't think it was necessary to spend public funds on an investigator. He said the Senate committee, which Mr. Piccola chairs, could ask whatever questions needed to be asked.
But Mr. Piccola, a frequent critic of Democrat Rendell, said the committee didn't have the necessary expertise for such an investigation.
He said he wants to find out exactly when Lionsgate and its lobbyists began pushing the Legislature to grant a total of $75 million in tax credits for movie companies. The credits were approved just before legislators took their summer recess in mid-July.
Mr. Piccola said he wants to make sure Mr. Veon didn't lobby any of his former House colleagues in violation of the lobbying law, which prohibits such contacts for a year after a member leaves office.
Mr. Piccola also has questions about Ms. McCombs. On Lionsgate's lobbyist form filed with the Department of State, it says Ms. McCombs began work on May 1 and ended lobbying on June 30. But her lobbyist registration form wasn't filed until Sept. 4 -- and not until after Capitolwire, an online subscription news service in Harrisburg, began asking questions about her.
Her form says she started lobbying June 11 and doesn't list an end date. She was supposed to register with the state within 10 days of starting work.
In a June interview with Capitolwire, Mr. Piccola talked about "shedding light" on the relationship between Mr. Rendell and Ms. McCombs, which caused her last week to lash out at him.
She said there isn't now and never has been an "inappropriate relationship" between her and the governor. She has said her failure to register on time as a lobbyist was merely an oversight.
Mr. Piccola has said the private investigators will focus only on the tax credit lobbying and no personal issues.
First Published September 26, 2007 12:00 am
