State lawmakers on the Arkansas Joint Performance Review Committee met Tuesday to address what the Central Arkansas Water CEO called a “very unfortunate” and “inappropriate” email from a group of employees opposed to a legislative attack on affirmative action.
Tad Bohannon, CEO of Central Arkansas Water, also fielded pointed questions from lawmakers over CAW’s donations to nonprofit organizations.
Committee members did not accuse Central Arkansas Water of breaking any existing laws, but still voted to ask the Arkansas Ethics Commission to investigate.
“Now there’s nothing illegal at all about an agency such as yours lobbying. That’s perfectly legal. They have that freedom of speech to participate in that,” state Sen. Dan Sullivan (R-Jonesboro) said. Still, Sullivan said he requested the meeting because he believed Central Arkansas Water and its employees acted inappropriately when a critical email went out to CAW employees about one of Sullivan’s bills.
The email on blast was sent March 21, 2023, from CAW’s diversity and inclusion group called JEDI (Justice, Equity, Diversity and Inclusion). Bohannon said while one individual pushed the send button, he later found multiple people were involved in the writing process. Bohannon was not aware of the email before it was sent out to the company’s some 350 employees, he said.
Sullivan was the sponsor of Senate Bill 71 during the 2023 legislative session, which was set to effectively end affirmative action in the state. The bill died before it could squeak through the Arkansas Capitol.
The email from JEDI called out SB71, saying, “If you or someone you love is a WOMAN, DISABLED, BLACK VETERAN, HISPANIC OR LATINX this bill will impact your loved ones.”
The email said the bill “promote[s] white supremacy,” and it urged CAW employees to “join JEDI as we flood Representatives with calls and emails, telling them to VOTE NO on SB71!”
Bohannon answered most of the lawmakers’ questions, but CAW Commissioners Jay Barth and Kevin Newton also chimed in occasionally to say they agreed with Bohannon and that they were not caught off guard by any of his answers.
“We hire passionate people,” Bohannon said. “Sometimes when you have passionate people, that passion gets the best of them. … [Speaking out] is not their role, that is not their purpose, that’s not what they’re supposed to do. But they wanted to say something about it, so they sent out that email.”
The JEDI committee, which Bohannon described as being “loose,” had their email shut down immediately. The plan for the committee moving forward is still being discussed, he said.
In addition to the email encouraging employees to speak out against SB 71, Sullivan referenced a collection of donations CAW made to various nonprofits. A total of $118,525 went to 22 different organizations. The Arkansas Black Hall of Fame Foundation received $10,000, the Little Rock Regional Chamber of Commerce got $30,000. The Women’s Foundation of Arkansas got $15,125 from CAW, and Keep Little Rock Beautiful secured $1,000.
Bohannon told lawmakers he made the donations without commissioners’ approval, as the CEO has the authority to spend some dollars independently. This is a practice that’s been happening since CAW was established more than two decades ago, Bohannon said. It is not against any law for Central Arkansas Water to donate money, he noted.
Outreach to those organizations was a step to build trust within the respective communities, he said. It also presents an opportunity to educate people on water quality and the work of CAW.
“It’s not a, ‘Support this organization due to political views or whatever,’” he said. “It’s, ‘Support this organization because it gets us in front of our customers that need to hear from us.’”
Legislators voiced concern about the lack of oversight, and requested documents that might reveal what organizations asked CAW for donations and were denied.
Sen. Jonathan Dismang (R-Beebe) wasn’t buying Bohannon’s narrative.
“I do think it’s inappropriate that you have been allowed to spend $118,000 of rate payers’ money to be able to contribute to the entities of your choosing based on your own personal beliefs of what creates value,” he said.
Dismang said he aims to change existing laws so utilities will no longer be allowed to donate money to nonprofits.
Sen. Missy Irvin (R-Mountain View) said she was concerned the email about SB 71 went out without Bohannon’s knowledge. She wanted to know more about the hyperlinks in the email and where recipients were routed.
Rep. Mary Bentley (R-Perryville) noted the donations were made as CAW plans a 10-year rate increase that will double the average customers’ bill by 2032.
Sen. David Wallace (R-Leachville) said customers might not be aware $118,000 was spent on something other than infrastructure.
Rep. Joy Springer (D-Little Rock) offered an opposing view, saying she supported CAW’s outreach efforts to provide scholarships and educational opportunities.