Ethics Commission Wraps Up Cases Involving Legislative Candidates

While 2014 has been a busy year in Arkansas politics, it’s been an even busier year for the Arkansas Ethics Commission.

Graham Sloan, director of the Arkansas Ethics Commission, said in an August Talk Business & Politics interview that his agency is seeing a huge increase in caseloads.

Under current scenarios in 2014, Sloan said the Ethics Commission was on pace to see a 40% increase in the number of cases it will handle from just two years ago. The average length of those cases has been extended by 60% due to their complexities. And, citizen filings (versus staff filings) have risen by 50% from 2012, Sloan said.

The regulatory agency has ruled publicly on more than a dozen complaints against just legislative candidates this campaign season. Overall, it has worked on 52 cases to determine a “final action” on complaints against candidates and elected officials.

An election year brings its fair share of frivolous requests for investigation, but there are many that prove to be legitimate though minor. Seldom does an ethics complaint rise to the level seen by former Lt. Governor Mark Darr, Treasurer Martha Shoffner or State Sen. Paul Bookout.

So far this year, the commission has taken a “final action” on 14 legislative race complaints, sending public letters, dismissing many allegations, and settling matters against candidates, Sloan said.

The complaints ranged from accusations of campaign finance abuses to failing to file certain campaign paperwork.

The following is a summary of the public letters sent to the candidates.

HOUSE DISTRICT 54
State Rep.-elect Dave Wallace, R-Leachville, was sent a letter of caution and fined $500 in June after state Democratic party official Candace Martin filed a complaint in April.

The complaint centered around Wallace accepting a $5,000 campaign contribution from Georgia-based Labor Smart in this year’s campaign as well as failing to timely file a campaign and contribution report in March.

According to Arkansas law at that time, there was a $2,000 contribution limit for individuals and businesses.

According to the letter, Wallace, who defeated incumbent Democrat Wes Wagner of Manila in the November general election, paid the $500 fine.

Wallace said late Thursday he also returned $1,000 of the $5,000, keeping the remainder of the money ($4,000) which was donated in $2,000 contributions.

HOUSE DISTRICT 57
A pair of complaints were filed this year against candidates who ran in the House District 57 race.

Republican Ronnie Spence was fined $150 and given a letter of caution in July for failing to file a series of campaign finance and contribution and expenditure reports for the 2012 and 2014 elections.

According to the letter, they included:

· Failing to timely file a statement of financial interest for 2011 when he ran as an independent candidate in 2012.
· Failing to timely file a final campaign contribution and expenditure report for 2012 as well as monthly reports in March and September of that year.
· Failing to disclose campaign expenditures on an April 2012 and a pre-election report.
· Failing to timely file a carryover fund report following the 2010 general election.

Democratic State Rep. Mary Broadaway of Paragould was also sent a letter of caution Nov. 10 after a complaint was filed against her.

According to the letter, Tommy Grooms, who also serves as Greene County Republican party chairman, filed the complaint due to questions about two campaign contributions.

“The foregoing action was taken as a result of your agreeing that the Commission make a finding that you (Broadaway) unintentionally violated Arkansas Code Ann. 7-6-203 e 1 by accepting $500 from a prohibited political action committee in connection with a contribution from the McDonald’s Local Owners Operators of Arkansas PAC and Arkansas Code Ann. 7-6-207 b 1 C by failing to disclose the correct aggregate contribution amount from NUCOR on May 15, 2014 in connection with contributions received during the 2014 election cycle,” Sloan said in the letter.

The commission found that the McDonald’s group had not filed a PAC registration form at the time the donation was given, Sloan said, noting the group had since filed the proper paperwork.

“With regard to NUCOR PAC, the evidence reflected that you timely reported all contributions from NUCOR PAC but inadvertently listed an incorrect cumulative total after its second contribution. It appears you made efforts to comply with the spirit and intent of the disclosure laws and that you promptly took steps to correct any problems by voluntarily filing amended reports on August 28 and 29 of 2014,” Sloan said in the letter.

HOUSE DISTRICT 90
A public letter of caution and a $150 fine was also sent in July to Republican Paul Caldwell of Lowell. A complaint was filed against Caldwell, who ran for the state House District 90 seat, involving allegations that Caldwell did not timely file a statement of financial interest for 2013.

The complaint also alleged problems with the disclosure of campaign contributions and expenditure reports, specifically dealing with mailers ‘marked Paid for by Paul Caldwell for State Representative.’”

“Evidence gathered during the course of the investigation reflected that you filed your statement of financial interest on May 22, 2014, making it 73 days late. Furthermore, evidence gathered indicated that you reported an expenditure from May 6, 2014 on your C&E report as having occurred on May 14, reporting it the date you paid the obligation and not the date the amount was readily ascertainable, and reporting it on a Final Report instead of your 10-day pre-election report,” Sloan said in the letter.

Caldwell lost in the Republican primary to Rep.-elect Jana Della Rosa, who later won in the general election.

SENATE DISTRICT 17
A letter of caution was also sent to State Rep. John Burris, R-Harrison, on Aug. 29 tied to a complaint filed in a GOP primary for Senate District 17. Burris was vying for the open Senate seat, but lost in a June run-off.

According to the letter, the commission found Burris unintentionally violated state law by failing to disclose statutorily required information on his statement of financial interest for 2010-2013.

The information included his state retirement account on the 2010 form as well as personal checking account information on all four forms, Sloan said in the letter.

Burris later amended the statements to include the information.

The commission also dismissed allegations involving Burris, a family member and a bank loan.

“With respect to 21-8-304 a, the Commission determined that the evidence did not support a finding of probable cause that your receipt of reimbursements from the state for mileage or officeholder expenses or your obtaining a loan from Centennial Bank in the spring of 2014 constituted ‘special privileges or exemptions.’ (The) evidence gathered during the course of the investigation reflected that no particular benefit or advantage was unfairly extended to you or your father over any of the other House members or their family members whom they pay to perform clerical services on their behalf,” Sloan said.

“The evidence showed that the reimbursements you had received are the same ones made available to all House members, and that they are not prohibited from hiring family members to help them perform their duties as officeholders. Moreover, the evidence showed that you did not exceed the maximum amounts authorized by law … for reimbursable expenses.”

On the bank loan, the commission ruled that no laws were violated.

“With respect to the bank loan in question, there was evidence that the reason you qualified for it was according to bank policy. That policy takes into account an applicants’s loan to value, debt to income and credit history or score, and there were no exceptions listed on the paperwork for your loan. Accordingly, the Commission determined that the benefit of your obtaining the loan would have been the same benefit extended to any other loan applicant who had a similar loan to value, debt to income and credit history or score as your own,” Sloan said in the letter.

The commission also found Burris was not required to list any additional sources of income on his financial statement which had not been previously reported.

SENATE DISTRICT 35
The commission also voted to dismiss two complaints filed this year.

One complaint against State Sen. Jason Rapert, R-Conway, involved the use of a statutorily required disclaimer for newspaper articles or television or radio commercials.

The commission voted 5-0 in November that the disclaimer did not have to be used on so-called “mail pieces” or a campaign website.

HOUSE DISTRICT 20
The commission also faced a unique task of dismissing a complaint against Republican Marc Rosson, who ran for a State House seat in District 20 this year.

The complaint, filed in April, alleged Rosson did not file a statement of financial interest for 2013.

“At that time, the Commission decided by a vote of 4-0 to dismiss this matter. The Commission’s decision was based upon staff obtaining a file-stamped copy of your SFI from the Secretary of State’s office. Apparently, the document in question became temporarily misplaced after it was timely filed on Feb. 26, 2014,” Sloan said.

To read all of the action letters discussed in this article, click here.

The Arkansas Ethics Commission does not discuss ongoing investigations or provide information related to complaints that have been filed but not acted on.