LITTLE ROCK — Weeks after telling voters about his “inappropriate” relationship with a Hot Springs lawyer, Attorney General Dustin McDaniel ended his gubernatorial campaign Friday, saying the 2014 race should be about the state’s future, not his own past.

“The next race for governor needs to be about whose ideas are best on how to make this state the most competitive state in the union,” McDaniel told the Arkansas Democrat-Gazette. “I hope very much that me stepping aside will allow us to not have a campaign that’s filled with mudslinging and personal attacks, but rather real discussions about how best to do that. I believe I’m doing the right thing.”

The Democrat sent an e-mail to supporters early Friday afternoon informing them of his decision.

As McDaniel exited the race, one of his longtime rivals - former Lt. Gov. Bill Halter of North Little Rock- stepped in. While McDaniel was preparing to tell supporters of his decision, Halter announced that he’ll seek the Democratic gubernatorial nomination.

Former U.S. Rep. Mike Ross, who ruled out a bid for governor in May, stayed mum Friday about whether he’s reconsidering. State Highway Commissioner John Burkhalter of Little Rock also declined to say Friday what he’s decided about the governor’s race.

McDaniel began his campaign on June 13; by Sept. 30 he’d amassed more than $1 million in campaign contributions. But the campaign began unraveling in the fall.

The trouble first came to light in an Oct. 31 Garland County court filing. As part of a child-custody dispute, Dr. Frederick Day III asked his ex-wife, Hot Springs lawyer Andrea Davis, to admit that she’d had sex with McDaniel and several other men.

Davis declined to answer the question.

McDaniel learned about the court records soon after they were filed and began wrestling with how to respond, he said.

Fundraising efforts slowed, McDaniel said.

“I quit attempting to raise money in, I don’t know, mid-November or so,” McDaniel said. “I needed to focus on what I was dealing with.”

He said he was reluctant to ask people to contribute, fearing that his relationship with Davis would soon become widely known.

“I haven’t been able to ask for a while until I came to grips with how this campaign was going to move forward,” McDaniel said.

By Dec. 18, McDaniel knew that reporters were investigating.

That day, his Washington consultant issued a statement, on McDaniel’s behalf, addressing the court filing in Garland County.

“With respect to Ms. Davis, I met her during the 2010 campaign,” it began. “I had limited interaction with her in 2011, some of which I regret to say was inappropriate.”

McDaniel said he and his wife, Bobbi, “with much prayer” had “moved on with our life together” and he asked Arkansans to accept his apology.

For three weeks, he declined to answer questions about his relationship with Davis, a lawyer who had faced off against the attorney general’s office in the past.

But on Jan. 8, he held a news conference, reading a statement and fielding questions for about half an hour.

McDaniel said he was seeking “God’s forgiveness and grace” and that he was asking the people of Arkansas to give him a second chance. He also promised that his campaign wouldn’t be hobbled by additional embarrassing disclosures.

“I continue to hear that rumors are swirling about whether some other shoe will drop. There is no other shoe to drop,” McDaniel promised. “There are no other women. No litigation was ever compromised. No rules of professional conduct were violated. No state resources, dollars or personnel were used for personal purposes.”

McDaniel said he and his wife were “committed to moving forward with my campaign for governor.”

And in the next days, he tried to resume his campaign and his life, giving a speech for the Forrest City of Chamber of Commerce on Jan. 10 and shaking hands at the annual Gillett Coon Supper on Jan. 12.

But away from the campaign trail, McDaniel was having doubts. “I have to be realistic about what a campaign would look like and whether or not its the right thing to do for myself, for my family, the state, the Democratic Party,” McDaniel said.

McDaniel said he decided Wednesday to drop out of the race.

“This week I spent a lot of time thinking about it. Bobbi and I spent a lot of time thinking about it, but this was my decision,” he said.

McDaniel called Gov. Mike Beebe to inform him of his decision Thursday night, said Beebe spokesman Matt DeCample.

“The governor understands that Dustin needs to do what he feels is best for Dustin and his family,” DeCample said.

Despite his admission of “inappropriate conduct,” McDaniel said many supporters stuck by him. He was thinking about their best interests, not just his own, as he thought over his decision, he said.

“There are a lot of disappointed people who I know would stay with me and work hard for me no matter what. But a responsible person, an intelligent person, and honorable person and a good leader has to know when to ask that of their friends. At this point I don’t think that the time is right for me to ask that of people,” McDaniel said. “I need to step aside and give people time to find a candidate that they can support and rally behind.”

McDaniel, who raised more than $1.4 million for his campaign, still has $1.1 million left.Those who earmarked their money for a 2014 primary runoff or the 2014 general election - contests he never reached - will get all of their money back, he said.

The former candidate said he’ll use some of the rest of the money to pay campaign bills and other expenses. Additional dollars will be set aside to cover future costs. Much of the rest will be returned to donors, he said.

McDaniel also said the relationship had no effect on his job as attorney general. Since Davis and McDaniel met in 2010, Davis has represented clients in five cases in which the attorney general’s office represented the state, including an ongoing fight over the school-choice law.

He also said during the news conference that he has no knowledge of the investigation into the death of Hot Springs resident Maxwell Anderson. Anderson’s body was found outside Davis’ home and she was escorted from the home in handcuffs when deputies responded Feb. 29.

A police report said Anderson was shot by Davis’ brother, Matthew Davis.

No one has been charged in Anderson’s death.

At the Jan. 8 news conference, McDaniel said he has never communicated “with Ms. Davis or anyone else about the facts or circumstances surrounding Mr. Anderson’s death,” adding “I don’t know anything about it.”

Friday, McDaniel said he told the truth about the Anderson case and other matters when facing the media earlier this month.

“I stand by everything I said in that press conference.I’m sure there are going to be all kinds of rumors and suggestions, because that’s just the way politics work,” McDaniel said.

McDaniel said he plans to remain attorney general. Asked about his future political plans, McDaniel said he’s not even going to think about pursuing another office until after he completes his term as the state’s top law-enforcement officer.

Asa Hutchinson, a Republican who lost a bid for governor to Beebe in 2006 and who plans to run in 2014, said the announcement doesn’t change his plans. “I know this was a difficult decision for Dustin. I wish him well in his continued service to this state as Attorney General,” he said in a written statement. “In terms of the campaign, I have no doubt there will be a strong Democrat party nominee and we will just have to wait and see who all might surface as candidates.”

Halter, the new Democratic gubernatorial candidate, declined to answer questions about McDaniel’s decision.

“He wants to be mindful of the attorney general’s withdrawing from the race and respectful,” said Halter spokesman Bud Jackson. “He’ll have more to say next week.”

But Halter announced his candidacy in a news release.

“Over the holidays my family and I talked about the demands a campaign for governor would place on us. We decided as a family that we are up for the challenge,” he said. “During my campaign for governor I will put forward my plans and ideas to move Arkansas towards an even brighter future.”

Ross couldn’t be reached for comment Friday, but he told the Arkansas Democrat-Gazette on Thursday: “I have no plans to run for governor. Everybody seems to be talking about that except me.

But he wouldn’t close the door completely to a run for governor in 2014, saying, “You never say never.”

Andrea Davis declined to comment Friday, referring reporters to her attorney, Jeff Rosenzweig.

“Of course, she wishes this to be out of the spotlight. She was dragged into the spotlight involuntarily. All she wishes is to get her life back, to raise her children and do the best job possible for her law clients,” he said.

Michael R. Wickline of the Arkansas Democrat-Gazette contributed to this report.

Key moments in McDaniel campaign

Here is a timeline of key moments in Dustin McDaniel’s campaign for governor: June 13, 2012 McDaniel forms Dustin McDaniel for Governor Inc., launches campaign.

Oct. 15 Campaign says it has raised more than $1 million.

Oct. 31 In a court filing, Andrea Davis’ ex-husband asks her to admit she had sex with McDaniel.

Dec. 18 McDaniel admits to “inappropriate” conduct with Davis.

Dec. 21 Records show Davis stressed her ties to McDaniel while asking the attorney general’s office to delay a client’s disciplinary hearing. Records also show the attorney general’s involvement in Davis’ custody dispute.

Jan. 4 Republican Asa Hutchinson says he’s running for governor.

Jan. 8 McDaniel calls news conference, apologizes, says there won’t be future scandals.

Jan. 10 McDaniel, in Forrest City, gives his first public speech since the disclosure.

Jan. 12 McDaniel attends the annual coon supper in Gillett.

Jan. 15 Public Policy Polling shows McDaniel trailing Hutchinson by 13 points.

Jan. 25 McDaniel withdraws from the governor’s race.

Front Section, Pages 1 on 01/26/2013