Osceola senator: Returned $2,750 to donors

State Sen. David Burnett, D-Osceola, reported that he has returned campaign contributions totaling $2,750 from seven businesses after Craighead County Republican Party Chairman Billie Sue Hoggard said she filed an ethics complaint against Burnett alleging that he illegally accepted contributions from 14 businesses and entities.

In amended campaign finance reports filed last week and this week for the month of August, Burnett wrote that "we have returned check[s] to small business[es] that we inadvertently posted as contributions and wish to correct the previous report."

Burnett said Wednesday that he would return more contributions to fix any other mistakes that his campaign made.

He is seeking re-election in Senate District 22 against state Rep. David Wallace, R-Leachville, in the Nov. 8 general election. The district includes Mississippi and Poinsett counties and part of Craighead County.

Wallace's campaign also was the subject of a complaint about campaign contributions. Both complaints were made to the Ethics Commission.

Boyd Thomas of Osceola, who described himself as a volunteer for Burnett's campaign, confirmed Thursday that he mailed a complaint last week to the Ethics Commission that questions whether Wallace has used funds beyond his own personal funds to lend about $122,000 to his Senate campaign. Wallace said he has used only his personal funds to make the loans to his campaign.

On the matter pertaining to Burnett, Hoggard said she alleged in her complaint to the Ethics Commission on Sept. 16 that Burnett violated state law and the Arkansas Constitution by accepting campaign contributions from 14 businesses and entities.

They are $2,700 from Nucor of Armorel; $1,605 from Burnett's law firm in Osceola; $1,000 from Gary Johnson Farms Inc. of Osceola; $850 from Land & Timber Resources of Osceola; $500 apiece from Sanofi Services of Bridgewater, N.J., Gairhan Farms of Trumann, JTB Development of Harrisburg, Osceola Liquors in Osceola, D & L Inc. of Blytheville and Armorel Planting of Armorel; $300 apiece from Gammill Farms of Tyronza and Ramey Farms of Blytheville; $100 from Larry's Auto Sales of Blytheville, and $50 from Red Barn Gardens of Blytheville.

Hoggard said Ethics Commission Director Graham Sloan confirmed on Sept. 20 the receipt of the complaint, which she filed "in the capacity of a citizen of Arkansas." Hoggard also serves on the Craighead County Quorum Court.

Sloan declined to confirm or deny whether Hoggard or Thomas have filed complaints with the commission.

In amended campaign finance reports for August filed on Sept. 21 and on Tuesday, Burnett reported returning a $1,000 contribution from B and S Partnership, $500 contributions from Armorel Planting and Land and Timber Resources, $300 contributions from Gammill Farms and Ramey Farms, a $100 contribution from Larry's Auto Sales and a $50 contribution from Red Barn Gardens.

Hoggard said Monday in a written statement that it's "interesting that he filed an amendment AFTER the complaint was filed."

Burnett said, "If I made a mistake or my bookkeepers did, I apologize," but they didn't make any mistakes intentionally.

"I am going to do whatever is right, and I am not trying to make excuses," he said. "I admit we took some LLC [limited liability company] checks we probably shouldn't have, [but] I didn't know they were LLCs until we looked at the check."

He said his young bookkeepers "didn't have any earthly idea" they shouldn't deposit those checks as campaign contributions. "I just glanced at them ... and they deposited them."

Burnett said the state law about whether candidates can accept campaign contributions from partnerships and single proprietors is confusing.

Under Arkansas Code Annotated 7-6-203, candidates may accept campaign contributions up to $2,700 per election from individuals, a political party, a county political party, a legislative caucus committee, and/or an approved political action committee. This limit doesn't apply to loans made by candidates from their own personal funds to their campaign, or to personal loans made by financial institutions to the candidates and applied to their campaigns.

Burnett said he could have to return several other campaign contributions.

But he said the $2,700 check that he received from a lobbyist for Nucor was from the company's political action committee, so he doesn't have to return that contribution. The Burnett law firm is a sole proprietorship, he said. "I am not going to return my own check, which would be absolutely stupid to do."

Wallace said Burnett has taken money from numerous limited liability companies, adding that lawmakers were advised "not to do that over and over again," after voters approved Amendment 94 of the Arkansas Constitution in November 2014.

Amendment 94 banned direct corporate and union donations to candidates, extended the period state lawmakers may serve in the Legislature, barred state lawmakers from accepting certain gifts from lobbyists, and created a citizens salary commission that considers raising the salaries of state elected officials each year.

Hoggard said she filed another ethics complaint against Burnett alleging that he failed to disclose the occupation and employer of 124 contributors to his campaign, which is in violation of Arkansas Code Annotated 7-6-207.

Burnett said he didn't know that he is required to disclose that information and that he's amended his August report to disclose it. Burnett reported raising $72,030 in contributions and spending $42,973.21 through Aug. 31 in his latest campaign finance report filed with the secretary of state's office.

Wallace reported raising $40,780 in contributions, lending $122,227.95 to his campaign and spending $66,748.02 through Aug. 31 in his latest campaign finance report filed with the secretary of state's office.

In his ethics complaint against Wallace, Thomas wrote, "What I believe has actually occurred is that these reported loans are in fact cash campaign contributions from other individuals or groups, or that Mr. Wallace is drawing funds on a line of credit from a financial institution."

Wallace said he is using his personal funds, including his legislative pay and money from stock options, to lend to his campaign. He said he is not using any money from his companies or a bank loan or line of credit.

He said the ethics complaint filed against him is a "smoke screen" to divert attention from Burnett's campaign finance errors.

Burnett said he doesn't know the man who filed the ethics complaint against Wallace and that he had nothing to do with the complaint.

As state lawmakers, Wallace and Burnett are paid $39,400 in salary a year, plus per diem and mileage for attending legislative meetings.

Metro on 09/30/2016

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