LAWMAKERS’ NONPROFIT GROUP

Two Democratic state lawmakers in Beaver County, Pa.—Rep. Michael R. Veon and Sen. Gerald LaValle—are being questioned for sending government money to a nonprofit organization they control, reports The Pittsburgh Tribune-Review. The lawmakers are the founders and co-chairs of Beaver Initiative for Growth, a development organization that has acquired $10.6-million in state money, and serve as the group’s only two board members. Founded in 1992 to strengthen Beaver County’s economy, the group was organized under Section 501©(6) of the Internal Revenue Service tax code, which means it cannot accept tax-deductible gifts but can participate in politics and form political action committees. Frances Hill, a University of Miami expert on tax-exempt groups, said the arrangement made it seem likely that the nonprofit group was trying to further the political careers of the founders. Mr. Veon and Mr. LaValle say they have done nothing improper and followed the same rules as any nonprofit group applying for state aid.