Financial reports late, agency says

Violations cited in baseball field vote

HOT SPRINGS -- The committee promoting the passage of an $8.5 million bond issue for a youth baseball complex missed deadlines for filing June and July financial reports, the Arkansas Ethics Commission said.

The agency charged with enforcing the state's campaign laws received faxed copies of reports listing Home Run for Hot Springs' contributions and expenditures Wednesday afternoon, according to copies the commission forwarded to The Sentinel-Record.

Commission Director Graham Sloan said committees promoting local ballot issues are subject to the same reporting requirements as candidates for elected office, with monthly financial reports due on the 15th of the following month. The committee could be subject to censure or a fine if a complaint is filed, Sloan said.

The Sept. 10 special election will ask city voters to authorize all or a portion of the 3% sales tax the Hot Springs Advertising and Promotion Commission levies on prepared food and lodging inside the city toward repayment of an $8.5 million bond issue that would finance construction of a five-field complex at the former Hot Springs Boys and Girls Club.

"There are penalties for filing late," Sloan said, noting that the commission is prohibited by law from confirming or denying the existence of a complaint. Receipt of a signed and notarized citizen complaint form is required before a case can be opened.

Sloan said a filing is not considered timely if the original report is not sent to the commission within 10 days of the faxed copy. The committee is also required to file a pre-election report listing financial activity taking place up to 10 days before the election. That report is due Sept. 3, according to campaign finance laws.

The statement of organization the committee filed June 24 does not list the city's tourism agency chief executive officer, Steve Arrison, as a member. But he issued a statement Wednesday apologizing for the missed deadlines.

"Because of my misunderstanding of the rule about timing of financial reports, I mistakenly advised the committee supporting the Majestic Park youth baseball fields about the dates it should file periodic reports on its finances," he said in the statement.

"Because the committee paperwork was not mailed to the Ethics Commission until June 24, I mistakenly advised it that it probably did not need to file a financial report for June. I also misunderstood the date for filing the July financial report, and the report was filed (Wednesday), (six) days late. I apologize to the committee members for the mistake and accept responsibility for the delay in filing the reports."

The July report listed $10,000 contributions from both The Greater Hot Springs Chamber of Commerce and Hot Springs Fifty for the Future. Contributions are not subject to the per-donor caps that limit amounts donated to candidates for elected office.

The committee paid local advertising agency SixtyOne Celsius $11,470 through July. The agency invoiced the committee for $5,055 June 28 and $6,415 July 22, listing services that included consultation work and providing promotional materials such as signs, brochures, posters and stickers.

The board of directors for the now-defunct Hot Springs Boys and Girls Club donated what was formerly known as the Majestic Baseball Park to the ad commission after financial difficulties led the Boys and Girls Club of America to revoke its charter last year. The club's gymnasium/office building was donated to Champion Christian College.

NW News on 08/24/2019

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