Arkansas lawmakers OK law firm's rehire; legal counsel to assist aides dealing with federal corruption investigation

House Democratic leader Fred Love of Little Rock is shown in this file photo.
House Democratic leader Fred Love of Little Rock is shown in this file photo.

The Legislative Council on Friday authorized rehiring a Little Rock law firm to represent legislative aides as they respond to requests from federal investigators conducting a corruption probe at the state Capitol.

The council approved its Executive Subcommittee's recommendation for the Bureau of Legislative Research to again retain the Mitchell, Williams, Selig, Gates & Woodyard law firm.

The bureau will pay the firm on an as-needed basis. Marty Garrity, the bureau's director, had said Thursday that she expects spending levels to remain around what they were in fiscal 2019, which was about $13,000.

But House Democratic leader Fred Love of Little Rock asked why the bureau wants to hire the Mitchell-Williams firm again.

"I have some questions in regards to some of the things that Mitchell Williams does on the lobbying side and then being able to ask me to give you all legal advice from this side," Love said.

Garrity said the bureau has "received requests for information which we need to consider confidential and they are assisting us in responding to those requests for information."

Then Love asked, "Can we not use the attorney general for matters such as these?"

In response, Garrity said, "We do not, sir. Part of it is just separation of powers, the Legislature versus the executive branch."

House Speaker Matthew Shepherd, R-El Dorado, said the law firm provided legal counsel for a few years, advising the bureau how to respond "to requests that may be made from law enforcement agencies."

The Bureau of Legislative Research previously hired the Mitchell Williams law firm in June 2017 to represent the bureau in connection with the federal investigation and to help it deal with requests for state lawmakers' records.

"At some point, within maybe the last year, a conflict developed whereby they had individuals that they represented who might be in conflict or be in positions that conflicted with our position as the Legislature ... [and] we parted ways at that point because of the conflict," Shepherd said.

Former U.S. Attorney Jane Duke was one of the primary lawyers who initially advised legislative staff members. But the bureau cut ties with Duke and the firm because she represented one of two Missouri nonprofit executives who were indicted and charged in March in a federal corruption investigation. Duke is no longer with the firm, the firm confirmed Thursday.

Shepherd said Friday that Mitchell Williams "no longer has that conflict."

"Director Garrity mentioned this to me and I suggested that we go ahead and retain Mitchell Williams again because they have familiarity. They had done work for [the bureau] for a number of a years and, given that there is no conflict at this point, it seemed wise for us to retain them so that they would not take on representation that would conflict with us in the future," he said. "Instead of hiring a law firm that we would have to pay money to get up to speed on, they already had that familiarity."

Garrity assured the Executive Subcommittee on Thursday that no conflicts existed for Anton Janik Jr., who will represent the legislative aides. Janik previously worked with the bureau.

"What I can't answer would be your specific question ... with regard to their lobbying efforts or their role as lobbyists [and] how does that play into their advice that they give [the bureau]," Shepherd told Love. "I would imagine that they would keep those functions separate, which is not necessarily uncommon in a large firm."

Afterward, Allan Gates, a partner in the Mitchell Williams law firm, said in an interview that the attorneys and staff members working with the bureau "do no lobbying" and the attorneys who are lobbyists have no involvement in the work the firm does for the bureau, so there is no conflict of interest.

The law firm's registered lobbyists include former Democratic Gov. Mike Beebe's chief of staff, Morril Harriman, who serves on the University of Arkansas System board of trustees; Republican U.S. Rep. French Hill's wife, Martha Hill; former Arkansas Lottery Commissioner Derrick Smith; and Charles Cliett, Margaret A. Johnston, Ark Monroe III, Brian Pipkin, Walter G. Wright Jr. and Gates, based on a search through the secretary of state's office website.

During the council's meeting on Friday, Sen. Linda Chesterfield, D-Little Rock, asked whether the contract with the Mitchell Williams firm is a sole-source contract.

Garrity said, "When we initially entered into an engagement contract with Mitchell Williams we looked at various law firms and settled on Mitchell Williams.

"We didn't put it out for bid. But we did look at various law firms," she said.

Chesterfield said, "So it was not put out for bid.

"But you made a decision predicated on what?"

Garrity said the bureau staff members selected the law firm in 2017 based on their experience working with law enforcement entities.

Sen. Kim Hammer, R-Benton, asked "if there is anything that is motivating us to do it now that we need to seek their legal services now."

Garrity said there have been times when law enforcement officials asked that neither she nor legal counsel Jill Thayer be in meetings or discussions. Instead of leaving the staff member alone with the investigators, "this just provides us just additional protection for our staff, for our members, to ensure that there is someone at the table representing the interest of the Legislature and the bureau."

A federal investigation into public corruption involving state lawmakers started at least six years ago with reports of legislators directing General Improvement Fund grants to two nonprofits, a small college and a substance abuse treatment center in exchange for kickbacks.

The investigation expanded to include lobbyists and former executives of a Missouri nonprofit, Preferred Family Healthcare Inc., accused of paying bribes to Arkansas legislators in exchange for laws or state regulations favorable to their businesses. Also caught up was a former administrator of a Magnolia youth lockup, accused of hiring a state lawmaker to carry out political favors.

Five former state lawmakers have been convicted or pleaded guilty so far in the two-state federal investigation.

They are former Rep. Micah Neal and former Sen. and Rep. Jon Woods, both Springdale Republicans; former Rep. and Sen. Hank Wilkins, a Pine Bluff Democrat; former state Sen. and Rep. Jeremy Hutchinson, a Little Rock Republican; and former Rep. Eddie Cooper, a Melbourne Democrat.

Among the 10 others convicted are Little Rock lobbyist and Preferred Family regional executive Rusty Cranford and Jerry Walsh, former executive administrator of South Arkansas Youth Services in Magnolia.

Information for this article was contributed by Hunter Field of the Arkansas Democrat-Gazette.

Metro on 08/24/2019

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