Bill eliminates conflict of interest

Members of the University of Central Arkansas Board of Trustees can now legally do business with the university.

A bill sponsored by Sen. Gilbert Baker, R-Conway, eliminated the wording in a state statute so that it is not a conflict of interest for UCA board members to do business with the school.

It was signed by Gov. Mike Huckabee on Wednesday and is now Act 891.

"We're trying to put UCA on the same footing as all two-year schools and U of A so UCA could get the best deals" in banking, property purchases, etc., Baker said Wednesday.

The bill was co-sponsored by Reps. Betty Pickett, D-Conway, Preston Scroggin, D-Vilonia, Sandra Prater-D, Jacksonville, and Rep. Robbie Wills, D-Conway.

The wording the state statute concerning UCA was discovered about a year ago when the university was looking at interest rates on a checking account for the school. The statute called for a $500 fine or jail time for violations.

Board member Randy Sims of Conway, president of First State Bank, said in an earlier interview that it was ridiculous that if a UCA board member had one share of bank stock that bank would be precluded from bidding on the university's business.

The matter arose again when UCA became interested in Moix Meadows Apartments, which are being built near the university. The apartments are co-owned by Rush Harding III of Little Rock, a board member, and Hal Crafton of Conway.

Hardin said the UCA Foundation was looking into buying the apartments and leasing them to UCA.

"It's still on the table from the point of view that the university would like to be able to purchase the property," Jack Gillean, UCA vice president for administration, said Wednesday.

Hardin held a press conference recently to discuss the matter and said everything would be on the table and open to scrutiny on the rare occasions that board members might be involved with UCA.

Hardin said it only makes sense that UCA would have the same rights as the U of A and 22 two-year colleges. He also said UCA "could be losing hundreds of thousands of dollars a year if a unique opportunity with a board member arose."

He said suggestions were "ludicrous" that the deal had something to do with Hal Crafton putting apartments on the former Cadron Valley Country Club property. Hardin said UCA is not interested in those apartments planned in west Conway.

Baker did receive some e-mails criticizing him for sponsoring the bill and suggesting it was connected to the Cadron Valley apartment deal.

"The bottom line is, Lu made that decision to have that press conference but really after that meeting, I got very little input on the bill. Maybe folks took it at face value on what Lu" and other board members said.

Baker said he also heard from people who said the knew the bill was not connected to the Cadron Valley project.

"The good news is from our perspective that the air was definitely clear that there was definitely no connect to the Cadron Valley issue."

Sims said during the press conference that the bill cleans up "something archaic on the books."

The UCA Board at its meeting in February approved allowing board members to do business with the university with the following conditions: that the board member involved doesn't vote; it is fair; it is disclosed; and it is approved by a majority of disinterested board members.

That policy hinged on the Senate bill passing.

Hardin said Wednesday, "In any contract involving a board member, close scrutiny, a time table that would allow input from different groups on campus and a clear-cut definitive savings would have to exist before moving forward."

(Staff writer Tammy Keith can be reached by e-mail at tammy@thecabin.net or by phone at 505-1238.)