February 1999

Huckabee lists 73 gifts worth more than $100 Presents range from T-shirts to legal services Date: 2/2/99 Category: News Page: A7 RACHEL O'NEAL ARKANSAS DEMOCRAT-GAZETTE Gov. Mike Huckabee and his family received 73 gifts last year valued at more than $100. The gifts ranged from a case of beef to the use of a boat, according to his 1998 Statement of Financial Interest. In the report, due Monday at the secretary of state's office, public officials must disclose their sources of income, business holdings, gifts and other financial information. Under sources of income and business holdings, public officials do not have to disclose exact sums. Instead, they must report if it is more than $1,000 or more than $12,500. Public officials also must list every gift received by the official or his spouse valued at more than $100. Huckabee received many gifts from Jennings Osborne of Little Rock, a businessman known as a philanthropist. Osborne gave Huckabee and his family a gift certificate for fishing equipment; T-shirts for the governor's staff for St. Patrick's Day; a framed picture of the state Capitol; T-shirts for governor's staff for a chili cook-off; a gift certificate to Mr. Wick's clothing store in Little Rock; various floral arrangements; doughnuts and pastries; gift certificates for clothing for Huckabee and his wife, Janet; and various meals and food. Huckabee also listed gifts of "legal services" from Tom Mars of Fayetteville and Kevin Crass of Little Rock. Both men are lawyers. Mars represented Huckabee in several ethics complaints. Last month, Huckabee appointed Mars as director of the Arkansas State Police. Crass is representing Huckabee in a lawsuit filed last fall that contends Huckabee used a $60,000 Mansion account for his personal expenses. Huckabee has denied using the account improperly. The lawsuit also contends that Huckabee improperly accepted $70,000 in furniture from Charles "Boe" Adams of Leachville. In 1998, Adams gave Huckabee a gift of round-trip air transportation to Salt Lake City, the governor reported. On the report, Huckabee did not always include where the person or store is located. The other gifts and the gift givers were: Framed picture, American Legion; picture, Freddie Lee; bronze eagle, state Rep. Bobby Glover, D-Carlisle; pewter solider plaque, Multi-Command Fellowship Breakfast; air transportation in January 1998 to and from Washington, D.C., for the National Religious Broadcasters Association, Randy Mourot of Little Rock; two season football tickets, University of Arkansas at Fayetteville; rod and reel, Team USA Fly-Fishing team; Clothing, Rick Caldwell of Bryant; guitar and case, the Stobaugh family; discount tickets to the Community Service Award Banquet, Arkansas Division of Volunteerism; portable fax and telephone, Pat Hunter; use of guesthouse in Puerto Rico and a table, Gov. Pedro Rossello of Puerto Rico; guitar, Lynard Skynard band. Property owners membership, Hot Springs Village Property Owners' Association; four tickets and eight passes to a concert, Butch Stone of Little Rock, a concert promoter; season football tickets, Arkansas State University at Jonesboro; bass guitar, Gibson Guitars; shoes, leather jacket and gift pack, National Governors' Association; round-trip airfare to New York, Broadman and Holman Publishers of Nashville, Tenn.; fishing trip and a hunting trip, Sheffield Nelson of Little Rock; round-trip air transportation to Des Moines, Iowa, Salem Communication; Bose radio, governor's staff; hunting trip, Bob Fant; hunting trip, Stanley Reed; athletic pass, Ouachita Baptist University at Arkadelphia; carved sculpture of Christ, First Baptist Church of Euless, Texas; coat, Fletcher Furs of Little Rock; handcrafted Santa, D.L. Herman Creations. Leather purse for Janet Huckabee, Jennifer's Dress Shop; car repair, Steve Edwards; football tickets, Chesley Pruitt of El Dorado; Arkansas State Fair tickets, State Fair Association; bronze statue of a man fishing, Jim Sanders and Mark Hopkins; headboard, governor's staff; Dr. George Schroeder of Little Rock, eye care; Dr. George Haas of North Little Rock, eye care and eye wear; case of beef, Richard Bell; lodge and hunting, former U.S. Rep. Tommy Robinson, R-Ark.; accounting services, Bryan Jeffrey of Little Rock; Dillard's department store, gift certificate for Janet Huckabee, the governor's department directors; use of a boat, Basscat, Inc.; use of a vehicle, Teeter Chevrolet of Malvern; meat, Bob Yarborough. Duck mounts, Jim Lindsey; scuba diving in Puerto Rico for Janet Huckabee, former state Rep. Ron Fuller, R-Little Rock; two fruit baskets, Arkansas Farm Bureau; dress suit and jewelry for Janet Huckabee, Jerry Davis, chairman and chief executive of ficer of Affiliated Foods Southwest Inc. in Little Rock; suit, Gingles Department Store in Benton; supplies, Futrell Marine and Supplies in Nashville; boots, Lloyd Stone of Conway, chairman of the state Republican Party; car repair, Service Chevrolet in Little Rock; Grand Pavilion Hotel lodging, Gene Thompson of the Grand Pavilion; duck prints, Larry Grisham; boots, Bud Cummins of Little Rock; and cellar telephone service, Sprint PCS. Huckabee also listed honorary memberships at Chenal Valley Country Club; the Little Rock Club; Pleasant Valley Country Club; Little Rock Country Club; Maumelle Bass Club; and the Old Fishing Club. Under sources of income of more than $12,500, Huckabee listed his salary as governor. The governor makes about $67,000 a year. He also listed the royalties from his book, Kids Who Kill; the sale of his Texarkana home; and the sale of boat and jet ski to Woody Futrell Marine in Nashville. On the report, Huckabee noted that while the sale price of his home to Allan Simpson of Texarkana was greater than $12,500, the income he received from the sale was less than $12,500. Huckabee also reported income of more than $1,000 in rental property income for the same house.

Huckabee backs off gift claim Furniture belongs to state, lawyer says Date: 2/4/99 Category: News Page: A1 SETH BLOMELEY ARKANSAS DEMOCRAT-GAZETTE Three months ago, Gov. Mike Huckabee said a donor gave him -- not the state -- $70,000 in furniture to use as he pleased. Huckabee's lawyer agreed. But Wednesday, Huckabee's new lawyer issued a media release saying the governor doesn't own the furniture. The change came five days after Democrats suing the governor over the $60,000-a-year Mansion Fund accused Huckabee of claiming furniture as his own, despite the donor intending it for the mansion. "I'm not sure we ever changed the position," said Huckabee spokesman Rex Nelson. "It's our position that the furniture belongs to the state of Arkansas." But during an October campaign swing, the governor said, "That donation was to us. We might take the furniture with us when we leave, or we might donate it to the mansion. That's our option." His attorney at the time, Tom Mars, now state police director, said the furniture was Huckabee's, and he even apologized for previously saying the furniture belonged to the state. Huckabee reported the gift on state financial disclosure forms in 1996, identifying it as a donation by decorator Georg Andersen of Conway, despite the money coming from Charles "Boe" Adams of Leachville. The furniture was listed as a gift because the governor went "above and beyond" what was required, Nelson said. He said Huckabee also lists doughnuts from Little Rock philanthropist Jennings Osborne, even though Huckabee "eats very few of them." "They wanted it to be a gift to the state of Arkansas," Nelson said. "Once the intentions of the donor were made clear, the governor had no problem with that at all." As to when this was made clear to the governor, Nelson referred questions to Kevin Crass, Huckabee's personal attorney. Crass, who issued the press release Wednesday, was unavailable for comment. The plaintiffs, who sued the governor in Pulaski County Chancery Court, accused him of enriching himself with the furniture and by using the Mansion Fund to buy tacos and a doghouse. Last week, the plaintiffs alleged that Huckabee had "taken dominion and personal control" over the furniture. Crass accused the plaintiffs of "grasping for legal substance and coming up with an embarrassing empty hand. It is important we make clear the governor is not claiming ownership of any of the items paid for by Boe Adams and chosen by Georg Andersen. Let's allow the governor to turn his attention to improving lives of Arkansans rather than having to continually deal with false, baseless accusations." That perplexes Randall Wright, attorney for the plaintiffs. "When Mr. Crass was making oral arguments before the judge, he was saying [Huckabee] reported the gift properly," Wright said. "I haven't heard him in any of the pleadings deny ownership of the property. I wish he had told us this months ago. This is news to me." Chancellor Collins Kilgore dismissed the contention of the plaintiffs -- Arthur Kerns of Little Rock, Peggy Tucker of Jonesboro and Don Venhaus of Little Rock -- that the governor's receipt of the furniture was illegal. Crass had argued that there was no evidence that the governor gave Adams or Andersen any favors because of the furniture gift. But Kilgore left intact the complaint concerning the Mansion Fund. A kial is expected this summer. Last week, the plaintiffs refiled their complaint regarding the furniture but accused the governor of wrongfully converting the furniture to his personal use. Wright wrote that Adams told him the furniture was meant for the state, not Huckabee. Andersen has refused comment, and Adams was in Florida on Wednesday. Huckabee appointed Adams' wife, Myrna Adams to the Arkansas Governor's Mansion Commission, which oversees maintenance of the mansion. She recently resigned because of health problems. Adams contributed $25,000 to Action America Inc., which Huckabee helped incorporate in Texas in 1994 and from which Huckabee was paid $61,500 over the organization's 2 1/2-year life for making speeches at functions it organized. Huckabee denies the plaintiffs allegation that he has misused the Mansion Fund.

Hospice Compassion Awards Passion for compassion aids Arkansas Hospice Date: 2/14/99 Category: Features Page: D3 -- Kyle Brazzel By invoking the name of Patch Adams -- the real-life, fun-loving physician characterized by Robin Williams in a current movie -- in his invocation opening the Feb. 6 Hospice Compassion Awards, Michael Aureli, Hospice Foundation of Arkansas executive director, set the tone for an evening organizers promised would be a light-hearted celebration of life. The $100-per-ticket awards banquet delivered for the 250 guests, honoring those who have displayed compassion in the categories of clergy, health care, humanitarian and corporate. As the fund-raising organization for Arkansas Hospice, the foundation seeks support to enable dying patients to receive care and live the remainder of their lives at home. After a dinner of spinach salad with cilantro vinaigrette, chicken breast with champagne cream sauce, wild rice and a vegetable medley, Arkansas first lady and foundation board member Janet Huckabee spoke about the foundation's mission and later presented the humanitarian award to Mitzi, Breezy and Jennings Osborne and the corporate award to Roller Funeral Homes of Arkansas. Members of the Roller family on hand for the honor were Christine Roller, Sue and Lynn Jenkins and Renata and Tim Byler. Ushered to and from the stage at the Embassy Suites Hotel by master of ceremonies Steve Stephens, the remaining honorees and their presenters included Bishop Kenneth Hicks and his wife, Elaine, who together received the clergy award presented by Skip Rutherford. Dr. Joe Bates introduced Dr. Raymond Miller, the Little Rock physician who was given the health care award. Proceeds from sales of the $100 tickets will be used to support Arkansas' first hospice centers, operated by Arkansas Hospice. The first will be installed this summer at the VA's Eugene J. Towbin Healthcare Center in North Little Rock. A second, larger facility that will accommodate 300 hospice patients will be constructed in west Little Rock beginning in 2000. Passion for compassion was shown by Gail and Judge Morris Arnold, Sharon Aureli, Patsy Bates, Stephanie and Judge Wiley Branton, Dee Brazil and Joe Hodges, Joyce and Robert Bumgardner, Lucy Cabe, Carol and Mel Dunkle, Dr. Fred Guggenheim, Sybil and Al Hampton, Linda Hicks, Bill Huffman, Pat and Judge Henry Jones, Kay Cook, Dr. Lee Lee Doyle, Ted Gammill, Libby and Lee Hastings, Becky and Ron Miles, Bev and Dick Moore, Dr. Joe Stanley, Judy Stafford, Dr. Virginia Vollmer, Swann Kohler, Diana Hueter, Zula Spratt, Carol Lord, Cecil Malone, Clarice Miller, Phillip Miller, Dr. Terri Miller, Bruce Moore, George Plastiras, board president Ed Rensch, state Sen. Stanley Russ of Conway, Billie Rutherford, Cathy and Dr. Lou Sanders, Sally and Dr. Bruce Sanderson, Natalie Smith, Jo Ellen and Mark Stodola, Catherine and Dr. E.J. Towbin and Charlotte and Michael Whitt. -- Kyle Brazzel

Bill proposes changes to state's ethics laws Date: 2/14/99 Category: News Page: B4 RACHEL O'NEAL ARKANSAS DEMOCRAT-GAZETTE Last year, Gov. Mike Huckabee received 73 gifts valued at more than $100 each. State law required him to disclose a description of the gifts, but not the exact value. That would change under Senate Bill 182 by Sen. Bill Gwatney, D-Jacksonville. The bill contains 30 pages of proposed changes to the state's ethics laws. Currently, elected officials must disclose the source, date and description of gifts valued at more than $100 given to the of ficial or his spouse. SB 182, based on changes proposed by the state Ethics Commission, would require public officials to disclose the "reasonable fair market value," as well. Elected officials also would have to report gifts received by their dependent children. Huckabee has been criticized for a gift he reported on his 1996 statement of financial interest. It was listed as "furnishings for the Mansion" from Georg Andersen of Conway, an interior designer. Huckabee did not list the value of the gift. Last fall, Democrats filed a lawsuit alleging that Huckabee did not properly report that gift because it came from money provided by Charles "Boe" Adams of Leachville, a millionaire who paid for furnishings valued at $70,000 that Andersen purchased for use at the Governor's Mansion. Last October, Huckabee said the furniture belonged to him. This month his attorney, Kevin Crass of Little Rock, said the furniture belonged to the mansion. That was after Adams said he viewed it as a gift to the state, not to Huckabee. Crass said Huckabee had been told by his former mansion administrator, Kamala Williams, that the gift was to the governor. On his 1998 statement of financial interest, which Huckabee filed in January of 1999 as required by law, the governor listed 73 gifts, including gift certificates to department stores, fishing equipment and hunting trips. Jennings Osborne of Little Rock, a businessman and philanthropist, gave Huckabee and his wife, Janet, nine gifts, including three gift certificates. One certificate was for "clothing" for the Huckabees to an unnamed store; another was to Mr. Wicks clothing store; the third was for "fishing equipment" at an unnamed store. Osborne says each of the certificates was "probably in the $1,000 to $2,500 range." He gives gifts to many people and doesn't recall the exact amount, he said. "They are just gifts for our friends," Osborne said. "We're blessed to be able to do a lot of things for a lot of people. It all runs together, but we're not doing it for any favors. It's just fun to share." On his 1997 statement, Huckabee listed 85 gifts, including three gift certificates from Osborne. Gwatney said the section that calls for the reasonable fair market value of gifts makes sense. The value of gifts may vary greatly, he said. For example, an elected official could report receiving a golf club. Under current law, he doesn't have to disclose the value, but it could range up to several hundred dollars, Gwatney said. The same goes for a shotgun, which could vary in cost from $200 to $2,000, Gwatney said. Would Gwatney accept a gift of a putter or a shotgun? "Speaking for myself, no, I would not," he said. "But it is not necessarily a bad thing, as long as it is disclosed." SB 182 would amend an initiated act approved by voters in 1988 that is the backbone of the state's ethics legislation. Scott Trotter of Little Rock, a lawyer and spokesman for Common Cause of Arkansas, spearheaded the push for the act in 1988. In general, Trotter said, the changes proposed in SB 182 would make the state's ethics laws stronger. But he disagrees with a section that would lower the reporting requirements for lobbyists. Currently, lobbyists are required to itemize who they spent money on if they spend more than $25 on food, lodging or travel on an elected official. The bill would raise the amount to $50. Trotter said the $25 amount is not burdensome. Gwatney has made some changes in the bill to make it more palatable to Trotter and others. For example, Gwatney removed a "gag-order" provision in which people who filed complaints would not be allowed to talk about them. SB 182 is expected to be debated Tuesday in the Senate State Agencies Committee. The bill also would: Require elected officials to sign and certify their statements of financial interest as true under the penalty of "false swearing," which is a Class A misdemeanor offense. Currently, elected officials sign their statements of financial interest under the penalty of perjury, which is a Class C felony. Graham Sloan, attorney for the Ethics Commission, said the statement of financial interest is the only place in the state's ethics laws that calls for a felony charge. Other violations call for misdemeanor charges. Class A misdemeanors are punishable by up to one year in prison and a fine of up to $1,000. Class D felonies are punishable by three to 10 years in prison and fines of up to $10,000. Give the commission the power to fine people who file "frivolous" ethics complaints. Sloan said frivolous complaints are rare, but he has seen some that might fit that description. If the bill becomes law, the commission would be able to levy fines of up to $ 1,000 for filing frivolous complaints. Eliminate wedding gifts from the list of gifts that must be reported on statements of financial interest. Gwatney said there have been instances in which an elected official got married and had to list gifts valued at more than $ 100. Rep. Lisa Ferrell, D-Little Rock, got married in 1998 to Jim Jackson. On her 1998 statement of financial interest, Ferrell listed five wedding gifts. Gwatney said "it's a little bit embarrassing" for a bride or groom to have to ask how much a wedding gift costs. Eliminate unopposed candidates from the requirement of filing 10-day pre-election reports.

Maumelle approves contract for festival Date: 2/18/99 Category: News Page: B7 ARKANSAS DEMOCRAT-GAZETTE Maumelle city officials Wednesday night approved a contract with a broadcasting company to develop an annual Fourth of July festival. The five-year contract was approved by a vote of 6-0 at the special meeting. The board reviewed the contract at a Tuesday meeting. City Manager David Huseman said Clear Channel Broadcasting Inc. officials agreed to the contract, which calls for the company to pay a $1,500 permit fee and $3,000 or 5 percent of the net income generated at the 1999 event, whichever is greater. During later years, the contract calls for Clear Channel to pay either l O percent or $6,000 to the city, whichever is greater. "They are going to come in and work with us," he said. When asked about a beer garden at Lake Willastein Park, Huseman said that "it won't be the whole park. It will be a small area." Huseman said that Little Rock businessman Jennings Osborne has agreed to provide fireworks. Huseman said that in the past, the city and the Chamber of Commerce have worked together to provide Maumelle residents with a Fourth of July festival but that it was expected Clear Channel would provide a better celebration. The Fourth of July proposal triggered some opposition at Tuesday's meeting from citizens who said they wanted the celebration to be a family event. Maumelle residents John R. Amatangelo and his wife Cristy wrote to the Maumelle city directors asking that alcohol not be allowed in the park and that the city refrain from hiring bands or charging admission.

Osborne placed on commission for stadium Date: 2/26/99 Category: News Page: A11 ARKANSAS DEMOCRAT-GAZETTE Jennings Osborne of Little Rock, a businessman and philanthropist, was appointed Thursday to the War Memorial Stadium Commission by Gov. Mike Huckabee. Osborne, who owns Arkansas Research Medical Testing Center, will serve on the commission until Jan. 14, 2006. A Huckabee supporter, Osborne also has given numerous gifts to Huckabee and his family including gift certificates and flowers for the governor's of fice. Other appointments by Huckabee: Sandra Ford of Pine Bluff to the Disease Intervention Specialist Board until Jan. 2, 2006. Perry Amerine of Paris to the Board of Health until Dec. 31, 2002. He was reappointed. Karen Taylor of Little Rock and Martha Tyler of Little Rock to the Board of Nursing for terms expiring Oct. l, 2002. Gloria Abrams of Little Rock to the Commission on National and Community Service Board until Jan. 14, 2001. Annette Connaway of Roland and Samuel Landrum of Fort Smith to the Breast Cancer Advisory Board. Both terms expire Jan. 1, 2003. Peggy Glover of Traskwood to the Cosmetology Board until Jan. 15, 2004. Jo Ann Bolick of Little Rock, Ruth Castleberry of Conway, Janie Fletcher of Little Rock, Betty Maines of Little Rock, Carleen Peterson of Austin, Teresa Porter of Hope and Sandra Reifeiss of Little Rock to the Early Intervention Interagency Coordinating Council.

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