Lawmakers in business with state; reports lag
Posted on Monday, April 14, 2008
A monthly publication sold more than $ 60, 000 in ads to state agencies in the past two years.
State Sen. Tracy Steele of North Little Rock is a minority owner of Be Heard Media Group LLC, which publishes the monthly Stand News, which has a circulation of about 10, 000.
The ad sales were disclosed in an amendment he filed to his personal financial disclosure statements for 2006 and 2007 after the Arkansas Democrat-Gazette questioned why the statements didn’t reflect sales to state agencies for ads that appeared in his publication.
Act 808 of 1991 requires lawmakers to disclose such transactions with the state.
Steele is one of a dozen legislators who reported business with the state. Some of them reported such dealings after being prompted by questions from the newspaper.
The largest amount of business in the most recent spate of reports was nearly $ 600, 000 disclosed by Rep. Barry Hyde of North Little Rock for a construction project for the University of Arkansas.
Some legislators acknowledge that they have more reporting to do, so the book isn’t closed on the question: Which legislator does the most business with the state ?
In the reports, some legislators disclose money involved in doing business with the state. Others don’t. In some cases, the agencies identified in the reports supplied the details for this article.
In Steele’s case, he reported the ad sales for the past two years after being asked about state agency ads appearing in a recent edition of Stand News.
The 1991 law requires lawmakers to list any goods or services sold during the previous calendar year in excess of $ 1, 000 to an office, department, commission, council, board, bureau, committee, legislative body, agency or other establishment of the state if the sales are by lawmakers, their spouses or by any business in which they or their spouses are officers, directors or stockholders owning more than 10 percent of the stock.
Steele said he didn’t realize that he was required as a minority owner to disclose the sales.
“It was an error on my part,” he said.
He said he owns more than 10 percent of the business. He declined to disclose the other investors.
He was executive director of the Martin Luther King Jr. Commission from 1994 until November 2006 when he resigned to pursue business interests, including launching the monthly.
He has been in the Legislature since 1999.
Former King Commissioner Debrah Mitchell and Steele are listed as managers for Be Heard Media, according to its filing in the secretary of state’s office.
In his amendment to his disclosure report, Steele, a Democrat, said the company sold ads to 19 agencies, institutions and programs. He included sales to private Philander Smith College.
More than $ 50, 000 of the sales were reported for 2007, more than $ 10, 000 for 2006.
The sales include: $ 10, 500 to the Arkansas Minority Health Commission. $ 7, 175 to the secretary of state’s office, which is held by Democrat Charlie Daniels of Bryant. $ 7, 125 to the Department of Health and its Diabetes Prevention and Control and Stamp Out Smoking programs. $ 5, 970 to Pulaski Technical College. $ 4, 692 to the Arkansas Student Loan Authority. $ 4, 075 to the state auditor’s office, which headed by Democrat Jim Wood of North Little Rock. $ 4, 045 to the University of Central Arkansas. $ 3, 345 to the University of Arkansas at Pine Bluff.
Other agencies and institutions to which the business sold ads include the Department of Correction, Department of Workforce Education, Department of Parks and Tourism, Rehabilitation Services, Workforce Investment Board, University of Arkansas Clinton School of Public Service, and University of Arkansas at Little Rock, according to Steele’s listing.
Officials for several of the agencies said they advertise in the publication because it’s a good way to reach black readers, not because Steele is partowner. “Choosing to advertise with Stand News has very little to do with the fact that Tracy Steele is involved,” said Wynona Bryant-Williams, executive director of the Minority Health Commission.
The commission is responsible for addressing health disparities in minority-group populations, she said.
Bryant-Williams said the commission’s nine-month advertising contract allows the commission to promote itself and allows her to print articles on health issues.
Natasha Naragon, a spokesman for the secretary of state, said that office purchased ads in the publication to publicize the Little Rock Nine monument on the Capitol grounds, and annual holiday events at the Capitol, as well as to educate voters because the publication is targeted to minority-group voters.
Ed Barham, a spokesman for the state Health Department, said his department finds that it sometimes gets “a pretty good bang for the buck” in niche publications such as Stand News and El Latino.
“There aren’t many alternatives out there like this that can deliver the population segments we’d love to be able to talk to,” he said. “There are significant health disparities, especially in chronic diseases caused by tobacco use, diabetes and AIDS / HIV, so ways to reach these audiences are welcome.”
Tim Jones, a spokesman for Pulaski Technical College, said college officials decided to advertise in Stand News to reach the black community about the importance of education at the college.
“Our student population is about 50 percent African-American, so we make an effort to select venues to promote the college in this demographic group,” he said. “As a state-funded institution, we are encouraged to use minority vendors to meet our minority-procurement goals. Were this not the case, we would do so anyway. It just makes good sense for us.”
Steele said he doesn’t sell ads for the publication. “I have very little to do with the operations of the paper. Occasionally, I will write a column,” he said. “That’s pretty much it.”
He said he doesn’t know what share of the publication’s ad sales are from state agencies and institutions.
The publication is doing well, he said, adding, “It’s very evident you are having success when other publications start writing about you.”
Steele also is chief executive officer of the STAND Foundation Inc. (an acronym for Strive for a New Direction ), a nonprofit group that plans to provide leadership training to young adults.
He is one of several lawmakers who reported sales of more than $ 1, 000 to state agencies last year. The others are:
Sen. Percy Malone, D-Arkadelphia, who reported renting office space to the Arkansas Department of Workforce Services for $ 13, 933.
Rep. Eugene Shelby, D-Hot Springs, a doctor, who reported selling medical services to the Department of Health and Arkansas Medicaid program.
Hyde, a Democrat, who reported that Hydco Inc., a firm 90 percent owned by him, was paid $ 591, 044 by the University of Arkansas Agriculture Division for construction of an administrative building at the fruit substation in Clarksville. Rep. Johnny Key, R-Mountain Home, who reported that his wife, Shannon Key, sold childcare and pre-school services through Open Arms Learning Center, Noah’s Ark, and Kidko to the Department of Human Services.
Rep. John Lowery, D-El Dorado, who reported that Premier Outdoors of El Dorado, in which he has 50 percent ownership, sold all-terrain vehicles for $ 52, 108 to the Agriculture Department / state Forestry Commission. Rep. Sid Rosenbaum, R-Little Rock, who reported that a company he owns, Brooks Brothers Collision Center Inc., repaired a truck for the Highway Department for $ 10, 100 and repaired an automobile for the Tobacco Control Board for $ 2, 300.
Rep. Benny Petrus, D-Stuttgart, who reported that his Petrus Auto Sales and Petrus Chevrolet sold parts and repairs to the Game and Fish Commission, and Petrus Auto Sales sold items to the University of Arkansas Rice Research and Extension Center and Phillips Community College. Rep. Ed Garner, R-Maumelle, who reported that Mama’s Manna Inc. provided catered meals and cakes to various agencies in excess of $ 1, 000, but less than $ 5, 000. Sen. Kim Hendren, R-Gravette, who reported that he rented office space in Gravette to the Boston Mountain Educational Cooperative for $ 250 a month.
Rep. Bruce Maloch, D-Magnolia, chief operating officer for Farmers Bank & Trust Co. in Magnolia, who reported that the bank sold banking services and paid interest on accounts to Southern Arkansas University at Magnolia. Rep. Kathy Webb, D-Little Rock, who reported that her Lilly’s Dim Sum, Then Some sold food to the University of Arkansas at Medical Sciences.
Peggy Kerns, director of the Center for Ethics in Government at the National Conference of State Legislatures, said it’s pretty standard for states to require lawmakers to disclose such information to make sure the public has information regarding conflicts of interest.
“Lawmakers are part time and have other jobs, so the public’s interest in all of this is to make sure a lawmaker’s personal financial benefit doesn’t affect votes on public policy,” she said.
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