Arkansas lobbyists report ’23 expenses

$540,000 logged in regular session

Lobbyists registered in Arkansas reported total expenses of about $540,000 during the Arkansas General Assembly’s regular session this year, after lobbyists didn’t hold events to provide food and drink for state lawmakers and largely stayed away from the state Capitol during the 2021 regular session amid the covid-19 pandemic.

Lobbyists’ total expenses reported in this year’s regular session are down from the total of about $710,000 in the 2019 regular session, about $695,000 in the 2017 regular session, about $650,000 in the 2015 regular session, about $1 million in the 2013 regular session, and about $860,000 in the 2011 regular session.

During regular sessions over the past 16 years, lobbyists’ total reported expenses peaked in the 2009 regular session at $1.3 million when two tobacco company lobbyists spent more than $330,000 in that year in an unsuccessful campaign to kill then-Democratic Gov. Mike Beebe’s plan to increase tobacco taxes.

During this year’s regular session, CareSource Director of Government Affairs Cory Cox reported spending the largest amount among lobbyists at $51,914.80.

That’s less than half of the more than $110,000 that a lobbyist for the Arkansas Ophthalmological Society reported spending during the 2019 regular session in the group’s unsuccessful quest to defeat a law that allows optometrists to perform a broader range of eye surgeries.

Other lobbyists who reported more than $20,000 in lobbying expenses during the first four months of this year include the Executive

Strategies lobbying firm led by Tyler Beaver; the Mullenix & Associates lobbying firm led by former state Rep.

Ted Mullenix, R- Hot Springs, and his wife, Julie Mullenix; Walmart Director of Public Affairs and Government Relations Michael Lindsey; and Arkansas Farm Bureau Public Affairs and Government Relations Director Jarrod Yates.

To produce this article, the Arkansas Democrat-Gazette reviewed about 1,350 monthly reports filed by 338 registered lobbyists for the first four months of this year.

This year’s regular session started Jan. 9, adjourned May 1 and lasted 113 days.

The session was dominated by first-year Gov. Sarah Huckabee Sanders’ sweeping education overhaul, dubbed the LEARNS Act, and a public safety overhaul called the Protect Arkansas Act, as well as a number of social issue-related laws.

During this year’s regular session, Arkansas’ state lawmakers filed fewer bills and enacted fewer state laws than any regular session since 1971, according to legislative records.

In November 2014, voters approved Amendment 94 to the Arkansas Constitution.

The amendment bars lobbyists from buying meals and drinks for lawmakers in oneon-one meetings and small groups, but it allows lobbyists to buy food and drinks for lawmakers at “a planned activity” to which the entire Legislature, the House or the Senate, or a legislative committee is invited in writing at least 24 hours before the event.

The “planned activity” events during this year’s regular session ranged from the Arkansas Judicial Council’s coffee with Chief Justice Dan Kemp in the side room to the state Capitol cafeteria to a University of Arkansas System reception at the Association of Arkansas Counties’ building to receptions for the House Rules Committee and Senate Agriculture, Forestry and Economic Development Committee in the Red Oak Steakhouse at Saracen Casino Resort in Pine Bluff.

Cox’s $51,914.80 in reported lobbyist expenses included:

■ $50,000 on behalf of CareSource for the Jan. 10 inaugural ball for Sanders.

■ $1,914.80 on behalf of CareSource for an April 5 dinner for members of the House and Senate Public Health, Welfare and Labor Committees. (Gilmore Strategy Group also reported spending $1,500 on behalf of CareSource for the dinner.)

Cox is the only lobbyist identified by this paper who reported his contribution to the state Republican Party for the inaugural ball on his lobbyist expense report during the first four months of this year. State law doesn’t require lobbyists to disclose their contributions to a political party for an inaugural event of a state constitutional officer on their lobbyist expense reports. Among other things, Cox formerly served as chief of staff for then-Attorney General Leslie Rutledge and deputy legal counsel for thenGov. Mike Huckabee, who is Sanders’ father.

David Donohue, president of CareSource PASSE (Provider-Led Arkansas Shared Savings Entity), said Thursday in a written statement, “Controlling costs for the state while improving health care outcomes for our members is at the core of CareSource’s mission.

“Experience has proven time and time again that an effective, managed care model can do both,” he said. “CareSource believes in continually advocating for the populations we serve, making sure they have a voice in the decision-making process while at the same [time] striving to be good stewards of the taxpayers’ money as we continue to work for the best health care outcomes possible.”

PASSE is a program that serves Medicaid clients with complex behavioral health, developmental, or intellectual disabilities. The state currently has four PASSEs, according to Department of Human Services spokesman Gavin Lesnick.

EXECUTIVE STRATEGIES

During the first four months of this year, Beaver’s Executive Strategies’ reported lobbyist expenses of $34,546.77 included:

■ $31,187 in advertising expenses on behalf of the nonprofit group Smart Approaches to Marijuana.

On its website, Smart Approaches to Marijuana describes itself as an alliance of organizations and individuals dedicated to a health-first approach to marijuana policy.

Beaver said the advertising expenses were spent on newspaper and digital advertising promoting a bill aimed at prohibiting the production and sale of tetrahydrocannabinol, also known as Delta-8.

In this year’s regular session, the Legislature and Sanders enacted a law banning a series of psychoactive compounds that have become a popular item among those looking for a mild high or wanting something less potent than marijuana.

Act 629 (Senate Bill 358 by Sen. Tyler Dees, R-Siloam Springs) is targeted mostly at products containing Delta-8, a psychoactive substance found in cannabis and used in a growing number of hemp-related products.

In the 2022 general election, the Smart Approaches to Marijuana group helped the Safe and Secure Communities ballot committee in its campaign against Issue 4 — a proposed constitutional amendment that would have legalized recreational marijuana in Arkansas. Voters rejected Issue 4.

MULLENIX & ASSOCIATES

During the first four months of this year, Mullenix & Associates had $32,265.92 in reported expenses, including $28,129.97 on Feb. 22 for the Arkansas Realtors Association’s legislative reception at the Capitol Hotel. Other events that cost more than $10,000 based on lobbyists’ reports during this period include the Arkansas State Chamber of Commerce/Associated Industries of Arkansas’ Jan. 17 legislative reception in a tent in the chamber parking lot for which the state chamber reported expending $18,148.82, and the Arkansas Sheriffs’ Association winter conference’s Black and White Ball on Jan. 17 at the Marriott, for which the Arkansas Sheriffs’ Association reported expending $17,673.50.

Julie Mullenix said the Arkansas Realtors Association has held its legislative reception for many years, except during the 2021 regular session amid the covid-19 pandemic.

“It is not based on the issues,” she said.

The legislative reception is designed to build relationships, allows Realtors across the state to interact with state lawmakers, and honors the work of state lawmakers, Mullenix said.

MICHAEL LINDSEY

During the first four months of this year, Lindsey’s $28,176.19 in reported expenses included:

■ $ 9,881.09 on Feb. 22 for Walmart Day at the state Capitol.

■ $9,654.34 for living accommodations.

■ $5,000 on Feb. 27 for the NWA Night Out at the Legislature.

A Walmart spokesperson declined comment.

JARROD YATES

During the first four months of this year, Yates’ $22,367.28 in reported expenses included:

■ $21,683.92 for food, lodging or travel costs.

■ $643.46 for telephone costs. Yates said “my focus is national affairs, but I also do state [affairs]” for the Arkansas Farm Bureau, so most of the expenses were for plane trips to Washington, D.C., and hotel expenses.

He said he reports these expenses on his lobbyist expense report filed with the secretary of state’s office in “an abundance of caution” based on advice from Farm Bureau officials.

During this year’s regular session, the Arkansas Farm Bureau “didn’t accomplish all the goals we had, but overall it was a good session,” Yates said.

He said Farm Bureau officials were proud to help enact House House Bill 1336 by Rep. Bruce Cozart, R-Hot Springs, to create an agricultural education pilot program in public elementary schools, and Senate Bill 324 by Sen. Jonathan Dismang, R-Searcy, that is aimed at allowing certain nonprofit agricultural membership organizations such as the Farm Bureau to develop a health benefit plan affordable to young farmers. HB1336 is now Act 243 and SB324 is now Act 626.

Under Act 243, starting with the 2025-2026 school year, the state Division of Elementary and Secondary Education may consult industry stakeholders, including the Department of Agriculture and the Arkansas Farm Bureau Federation, to establish a pilot program to provide for agricultural education in elementary schools in Arkansas.

The division, in consultation with the Arkansas Farm Bureau Federation and Agriculture Department, may select via an application process a minimum of six elementary schools for participation in the pilot program.

Act 626 is aimed at exempting certain nonprofit agricultural membership organizations from insurance regulation.

Under 626, a nonprofit agricultural membership organization will be required to pay a levy of the insurance premium tax to the same extent as a domestic insurer under Arkansas Code Annotated 26-57-604, and any risk arising out of a contract for coverage for health care services between a member of a nonprofit agricultural membership organization and a nonprofit agricultural membership organization or its affiliate may be reinsured by an insurer that is authorized to transact insurance in this state.

SARACEN

The Capitol Group lobbying firm reported $2,653.95 in expenses on the behalf of Saracen Development LLC for a March 8 reception for the House Rules Committee at the Red Oak Steakhouse at the Saracen Casino Resort and $2,000.74 in expenses for a Feb. 22 reception for the Senate Agriculture, Forestry and Economic Development Committee; staff; and guests at the steakhouse.

Don Tilton and Carlton Saffa are the lobbyists for The Capitol Group.

Saffa, who is chief market officer for the Saracen Casino Resort, said last week in a written statement that on “two occasions this spring, we learned legislative committees had legislative business that would bring them to Jefferson County.”

“In both instances we volunteered to host the committees for dinner after their business concluded,” Saffa said. “Since the passage of casino gaming with amendment 100, we’ve welcomed any opportunity to tour our facility with community leaders — local, state, and federal — to show how our business works and the 800 jobs it has created so far. The only agenda item on each visit was touring our property and highlighting many of the things and people we’re so proud of.”

The House Rules Committee’s reception at Saracen Casino Resort on March 8 came after the committee toured the Natural State Medicinals medical marijuana cultivation facility in White Hall.

The Senate Agriculture, Forestry and Economic Development Committee’s reception at Saracen Casino Resort came after that committee toured the Good Day Farm medical marijuana cultivation facility in Pine Bluff.

Rick Green of WSG Consulting, which represents the Arkansas Cannabis Industry Association, said the tours of the medical marijuana cultivation facilities educated state lawmakers, starting with the medical marijuana plants through the production of the medical marijuana.

LEARNS ACT APPRECIATION DINNER

The EdChoice and Americans for Prosperity groups and JCD Consulting Services on the behalf of the Yes Every Kid group shared in the costs of a March 29 LEARNS Act “Appreciation Dinner” for state lawmakers at Next Level Events, according to JCD Consulting Services’ lobbying report. JCD is led by Chase Dugger, a former executive director of the state Republican Party.

JCD Consulting Services reported spending $1,574.27 on the March 29 appreciation dinner on the behalf of Yes Every Kid, and lobbyist Joey Magana reported spending $1,873.81 on the dinner on the behalf of EdChoice.

On its website, EdChoice describes itself as a nonprofit, nonpartisan organization committed to understanding and pursuing a K-12 education system that empowers every family to choose the schooling environment that fits their children’s needs best.

Americans for Prosperity is an advocacy group founded by brothers Charles and David Koch in 2004. David Koch stepped down from the group’s board in 2018 and died in 2019.

The group continues to receive support from Charles Koch. The group describes itself on its website as the premier grassroots organization transforming policy in the country.

Founded in 2019, Yes Every Kid works to transform education away from the current top-down standardized model to a bottom-up approach that enables every family and student to customize an education that best matches their values and priorities, according to its website.

The LEARNS Act is Sanders’ signature public education overhaul law, Act 237 (Senate Bill 294 by Sen. Breanne Davis, R-Russellville).

The 145-page LEARNS Act aims to increase the starting annual teacher salary from $36,000 to $50,000 and give teachers making above the minimum a $2,000 raise.

The law also creates a voucher program, known as Education Freedom Accounts, for students to attend a private or parochial school or home school. The vouchers will be worth 90% of the per-pupil funding schools receive from the state.

Among other things, the LEARNS Act requires the Arkansas Department of Education to review policies and materials that “promote teaching that would indoctrinate students with ideologies, such as Critical Race Theory,” and requires high schools to offer a “career ready” pathway as an alternative way for students to earn a diploma in technical education programs.

On Friday, a Pulaski County circuit court judge issued an order temporarily barring implementation of the LEARNS Act, and Attorney General Tim Griffin has appealed the order to the state Supreme Court.