Minden, IA - Today Sen. Debbie Stabenow (D-MI), chair of the Senate Agriculture Committee and author of the 2014 Farm Bill, highlighted the importance of Bruce Braley's work on the bipartisan Farm Bill and the job-creating Renewable Fuel Standard to Iowa's economy while touring a family farm in Minden.

"Bruce Braley was pivotal in overcoming Tea Party obstructionism so we could pass the bipartisan Farm Bill, and he's been a champion in the fight to protect the Renewable Fuel Standard. In the Senate, I know he'll continue to be a champion for Iowa's agriculture economy by reaching across the party divide to deliver results for the state. ­While his opponent, like her oil billionaire backers, is philosophically opposed to the Renewable Fuel Standard and would have voted against the Farm Bill, I know Bruce Braley will always put Iowa first," said Sen. Debbie Stabenow.

Bruce Braley has a strong record of promoting Iowa agriculture and fighting to grow Iowa's rural economy. He worked for three years across party lines to pass the bipartisan Farm Bill that is critical to Iowa jobs and Iowa's farming communities.

He has also been a leader in the fight to protect the RFS; according to the Iowa Renewable Fuels Association, nearly 75,000 Iowa jobs are connected to renewable fuels. Late last year, Braley was the only member of the Iowa U.S. House delegation to join Governor Terry Branstad at an EPA hearing where they spoke out against the EPA's proposed cuts. In November 2013, Braley teamed up with Republican Rep. Steve King to host an event with Iowa State's Bioeconomy Institute to explain to Congressional staff the importance of keeping the RFS at its current levels. At Braley's request, Iowa consistently has had representation at Congressional hearings examining the future of the RFS. And early this year, he helped deliver 100,000 signatures to the EPA urging them to maintain a strong RFS.

In contrast, State Sen. Ernst would put Tea Party obstructionism before Iowa: Ernst would have opposed the Farm Bill, is "philosophically opposed" to the RFS, and her spokesperson said that "in a perfect world...she would support doing away with the (RFS)." Last month, Braley for Iowa released a report detailing the devastating impacts of state Sen. Joni Ernst's reckless plan to eliminate all energy incentives and all tax credits. If Ernst's energy proposals were enacted, energy costs for Iowans could increase by $1,200 per year, tens of thousands of Iowa jobs could be threatened, and business investments in Iowa could be reduced by billions of dollars.

BACKGROUND:

Braley Was Endorsed By The Iowa Corn Growers Association PAC's Bipartisan Committee Of Farmer-Members. In September 2014, The Des Moines Register reported, "The Iowa Corn Growers Association, one of the state's most influential farm groups, announced Tuesday its political action committee has endorsed Democrat Bruce Braley in his campaign for U.S. Senate against Republican state Sen. Joni Ernst." TheRegister continued, "A press release from the Corn Growers Association PAC said the decisions are made by a bipartisan committee of farmer-members who consider candidates based only on their support of ICGA policies. Braley was one of 75 state and federal candidates included in the endorsements." [Des Moines Register,9/2/14]

• Iowa Corn Grower Endorsement "Decisions Are Made Through An Objective Analysis Including Candidate Responses To Our Survey, Voting Records, Letters And Other Quantified Evidence Of Support. In September 2014, Iowa Corn Growers Association PAC announced: "ICGA PAC decisions are made through an objective analysis including candidate responses to our survey, voting records, letters and other quantified evidence of support. The ICGA PAC committee members include farmers from across Iowa, with an equal balance of party affiliation to ensure decisions are based only on corn growers' policies. Funding for contributions to candidates from the Iowa Corn Growers Association PAC comes only from voluntary PAC donations by ICGA members. Neither ICGA dues, nor checkoff dollars, are used for PAC contributions." [IowaCorn.org, 9/2/14]

• Iowa Corn Growers' PAC Chair: "Bruce Has A Fantastic Track Record With Our Key Issus" - "Bruce Has Done Over And Above On Farm Bill And Crop Insurance And The RFS." In a September 2014 interview on WHO TV, Iowa Corn Growers' PAC Chair, Mark Recker, said: "Bruce has a fantastic track record with our key issues, and has over the past term and over his past few terms... Bruce has done over and above on Farm Bill and crop insurance and the RFS, and has scored with us very well, and supported us very well, and is very credible with us on those issues." [WHO TV, 9/7/14]

• Iowa Corn Growers' PAC Chair: We Choose Who To Endorse Based On The Issues - "They Tell Us What's Important, Whether It's Ethanol And The Renewable Fuel Standard, Farm Bill Or Crop Insurance." In a September 2014 interview on WHO TV, Iowa Corn Growers' PAC Chair, Mark Recker, said: "Well, it all comes down to the issues for us and how well candidates support our priorities as an organization and producers. And those issues, those priorities, come to us from the producer level. They tell us what's important, whether it's ethanol and the Renewable Fuels Standard, Farm Bill or crop insurance, trade and transportation issues. That's how we score our candidates, based on how well they vote on those particular priorities and issues." [WHO TV, 9/7/14]

Events highlighting Harkin's investments in Iowa

Davenport, Ames, Creston, Atlantic, Des Moines

WASHINGTON, D.C. – Senator Tom Harkin (D-IA) today announced several events in Iowa this week designed to complement a legacy tour announced earlier this summer. A full list of his public events follows.

Friday, October 3 - Davenport
4:00 P.M.        ATEEC Interactive Learning Lab
Location: Eastern Iowa Community Colleges
201 N. Harrison Street
Suite 102

Davenportd

Senator Harkin will visit the Advanced Technology Environmental and Energy Center (ATEEC) Interactive Learning Lab at Eastern Iowa Community Colleges to tour the center's labs and education centers. ATEEC is a National Center of Excellence that promotes and supports environmental and energy technology education to address the needs of the national and global workforce. Harkin has long supported community college and higher education initiatives. Since 2007, Harkin has secured more than $570,000 to purchase equipment and to build an additional center at ATEEC that includes a hands-on learning lab, office space, and college and K-12 classrooms to teach and expand development and use of sustainable energy.

The American Democracy Legal Fund has filed a complaint with Iowa Attorney General Tom Miller requesting his office investigate whether Joni Ernst violated Iowa conflict of interest laws while serving as Montgomery County Auditor and the county's Chief Financial Officer for its flood disaster assistance operation while her father secured county contracts for his construction business. Under Iowa law, county officers or employees are prohibited from having "an interest, direct or indirect, in a contract with that county." Ernst appears to have had an interest in the contracts awarded to her father's company as a result of their familial relationship.

The full complaint and associated exhibits are available here.

The American Democracy Legal Fund is a group established by David Brock and run by Brad Woodhouse to hold candidates for office accountable for possible ethics and/or legal violations.

American Democracy Legal Fund

455 Massachusetts Avenue, NW

Washington, DC 20001

Honorable Tom Miller

Iowa Attorney General

1305 E. Walnut Street

Des Moines, IA 50319

 

Dear Mr. Miller:

The American Democracy Legal Fund ("ADLF") respectfully requests that your office investigate whether Joni Ernst violated Iowa conflict of interest laws while serving as Montgomery County Auditor and the county's Chief Financial Officer for its flood disaster assistance operation as her father, Richard Culver, secured county contracts for his construction business.

Background

Ms. Ernst was elected as Montgomery County Auditor in November 2004, and continued in that position until January 2011.[1] In June 2007, Ms. Ernst also was named the Chief Financial Officer for the county's flood disaster assistance operation.[2] In those roles, Ms. Ernst was involved in supervising the process for awarding county construction contracts, and was responsible for initiating contract bid notices and soliciting proposals for county contracts.[3]

During Ms. Ernst's tenure, Montgomery County awarded a total of $215,665 in government contracts to Culver Construction, owned by Ms. Ernst's father, Richard Culver.[4] Notably, Culver Construction's winning bids regularly came in just under those of other bids, and Culver Construction does not appear to have received any county contracts prior to Ms. Ernst's assuming her position as auditor.

Culver Construction apparently was awarded its first county contract in April 2009.  According to the minutes of the Montgomery County Board of Supervisors, the county awarded Culver Construction a FEMA grant contract for $40,428, the "low quote" for the project.[5] A few months later, in August 2009, Culver Construction was awarded another FEMA grant contract, this one for $63,501.[6] The county received two quotes for this contract, and Culver Construction's was "approximately $10,000 under the second bidder."[7] In October 2009, Culver Construction was awarded a FEMA repair project contract for $32,425 after reportedly coming in with the lowest bid.[8]

With Ms. Ernst still serving as County Auditor, Montgomery County awarded Culver Construction three more contracts in 2010.  In April 2010, Culver Construction was awarded a Department of Homeland Security grant contract for $10,871, just $680 below the next lowest bidder.[9] A few days later, Culver Construction was awarded a $59,480 contract for a FEMA grant project.[10] In that instance, there were two bids, and Culver's was $6,513.96 less than the other bid of $65,993.96.[11] Even as Ms. Ernst was running for state senate in December 2010,[12] Montgomery County awarded Culver Construction another FEMA contract, this one for $8,960, to repair three flood damaged sites.[13]

Legal Analysis

Under Iowa law, county officers or employees are prohibited from having "an interest, direct or indirect, in a contract with that county." Iowa Code Ann. § 331.342(2).  Ms. Ernst appears to have an indirect interest in the contract's awarded to her father's company as a result of their familial relationship.

While § 331.342(2) does not define a direct or indirect interest, Iowa has a long history of broadly interpreting conflict of interest laws.  As the state Supreme Court made clear in Wilson v. City of Iowa City: "We doubt if any rule of law has more longevity than that which condemns conflicts between the public and private interests of governmental officials and employees nor any which has been more consistently and rigidly applied."  165 N.W.2d 813, 822 (Iowa 1969).  The "well-established and salutary rule" that a person "who is entrusted with the business of others cannot be allowed to make such business an object of pecuniary profit to himself . . . does not depend upon reason technical in character and is not local in its application."  Bay v. Davidson, 111 N.W. 25, 26 (Iowa 1907).  The rationale for conflict of interest rules, Iowa courts repeatedly have asserted, is "a man cannot serve two masters [because] . . . [a] temptation would be offered . . . to disregard his public duty, and yield to the temptation of personal interest."  James v. City of Hamburg, 156 N.W. 394, 309-10 (Iowa 1916); see also, e.g., Wilson, 165 N.W.2d at 819.

Wilson demonstrates how broadly Iowa interprets conflict of interest statutes.  That case considered whether section 403.16 of the Iowa Code, which provided that "no public official or employee of a municipality . . . shall voluntarily acquire any personal interest, direct or indirect, in any urban renewal project," barred members of a city council from voting on an urban renewal project in which they had financial and other interests.  165 N.W.2d at 817.  Looking to the purposes of conflict of interest laws, the Court decided one council member had a conflict of interest simply because he held "positions of responsibility" with the University of Iowa, which was vitally interested in the urban renewal project.  Id. at 821-24.  A public employee's interest does not have to be financial, or even that the official "sought or gained" a private "advantage," the Court concluded.  Id. at 822.  "It is the potential for conflict of interest which the law desires to avoid."  Id. (emphasis in original); see also Iowa Farm Bureau Fed'n v. Envtl. Prot. Comm'n, 850 N.W.2d 403, 415 (Iowa 2014).

The conflict of interest statute here prohibits a county employee from having a direct or indirect interest in a contract with the county.  Ms. Ernst appears to have had at least an indirect interest in contracts Montgomery County awarded to her father's company while she served in a public position involving county contracts.  At a minimum, the potential for a conflict of interest clearly existed.

Conclusion

ADLF therefore requests that your office immediately commence an investigation into whether Ms. Ernst violated Iowa conflict of interest statutes.  These laws are critical to preventing officials from putting their private interests before the public's, and should be enforced vigorously.

Please do not hesitate to contact me if I can be of further assistance.

Sincerely,

Brad Woodhouse

Treasurer

Encls.