State officials last month admonished a private company that manages Arkansas' youth lockup centers for contract violations in hiring a sitting state legislator as director of the largest facility, at Alexander.
Nevada-based Rite of Passage Inc. has said it will change its process.
Rite of Passage hired Rep. Jasen Kelly, R-Benton, as director of the Arkansas Juvenile Assessment and Treatment Center without first notifying the state. He started work in July.
The for-profit company did not first provide a job description for the position that pays $110,000 annually, and it did not provide an organizational chart. Both actions were in violation of Rite of Passage's contract, according to a July 13 letter obtained through a public records request.
Michael Crump, Division of Youth Services director, sent the letter to Mike Cantrell, Rite of Passage executive director, after multiple discussions about the hiring, Crump said in an interview last week.
The Division of Youth Services oversees Arkansas' four youth lockups, which are managed by Rite of Passage under a more than $70 million contract that began July 1. The Alexander facility has 114 children, including 17 who were going through the assessment process for possible placement at a different facility as of Friday.
"Something as major as hiring a sitting legislator is something they should have notified us about before they made the final determination," said Keesa Smith, the deputy director for children, youth and families. The division operates under the Arkansas Department of Human Services.
Crump's letter says that in the future, Rite of Passage must provide job descriptions and updated organizational charts. The letter followed a July 7 letter of concern that Kara Benca, a division assistant director, sent to Cantrell.
Rite of Passage is now in compliance, Crump's letter says.
The firm plans to ensure it follows these requirements in the future, Cantrell said in a Thursday email to the Arkansas Democrat-Gazette.
"I can say that as far as I am concerned, the Jasen Kelly issue has been fully resolved with DYS," Cantrell wrote. "In the future I will advise of potential new Director hires and provide job descriptions upon recruitment posting date."
Kelly, whose legislative term expires in January and who isn't running for reelection, sought guidance from the Arkansas Ethics Commission about how to balance his new job and state House duties.
"In that guidance, it cautioned Mr. Kelly against participating in any matters coming before the General Assembly that would involve Rite of Passage, and we ask that he comply with that guidance," Crump's letter reads. "The Ethics Commission also cautioned against Rite of Passage doing 'any business with entities in which [the program director] or [his] family have a financial interest.'"
Smith said that in discussions with Rite of Passage leadership, she also asked for better communication.
Crump added that while the state does not need to be informed of every Rite of Passage hire, he does want to know who is hired for upper-level positions such as a facility director, particularly if there might be questions.
"It was especially because he was a sitting legislator," Crump said.
Now that the hiring process problem has been addressed, the division's leadership is happy with Kelly's performance so far, Smith said.
"We're all confident in Jasen's hiring now, but unfortunately we were not on it on the front end and we should have been," she added.