Politics & Government

As a lawmaker, Rocky Adkins lobbied against a rule change his private employer opposed

On July 25, 2016, the U.S. Surface Transportation Board in Washington D.C. proposed a potential rule change dealing with “reciprocal switching,” or the transfer of cargo from one railroad to another. It was a small federal agency dealing with a specialized topic, but it attracted the attention of at least one prominent Kentucky lawmaker: then-House Majority Floor Leader Rocky Adkins.

In a letter sent to the committee, Adkins identified himself as the majority leader and a state representative, and mentioned that railroad companies Siemens and R.J. Corman Railroad Group operate in Kentucky before talking about how he felt the rule change would hurt business in Kentucky.

Adkins, who is now a Democratic candidate for governor, failed to mention that he was employed as the economic development and government relations adviser for R.J. Corman, or that the proposal could directly hurt his employer.

“The proposed regulations, which would mandate railroads to provide their competitors with access to their rail lines, would compromise the efficiency of the national rail system and slow the overall movement of goods across the nation,” Adkins wrote on his Capitol stationary. “This is not just discriminatory toward the railroads, it is also unfair to the businesses, small and large, that form the backbone of the American economy. When those businesses suffer, so do our local communities that surround them. “

Members of the General Assembly have been known to get involved in federal issues, often calling resolutions on the House floor to support or oppose a federal initiative or signing onto letters about policies they particularly disagree with. But it’s rarer for a lawmaker to use their political office to lobby against a resolution that would affect their private employer.

John Schaaf, executive director of the Legislative Ethics Commission, said he couldn’t comment on the specific example because he didn’t have enough information, but he said at the state level, lawmakers can advocate for something as long as they wouldn’t benefit more than everyone else.

“Generally speaking, legislators can vote and act on matters in the General Assembly as long as they or their family members or business associates are not benefiting from the action in a way that’s different from other people or businesses in the same situation,” Schaaf said.

Adkins defended the letter during an interview last week.

“I sent this letter on behalf of my constituents,” Adkins said. “Many businesses require access to rail systems to operate optimally and provide jobs in our region. The state legislature was not dealing with this issue, federal agencies were. It was a general request that dealt with the railroad industry as a whole, not one company in particular.”

Adkins has long been vague about how he makes money when he’s not busy being a part-time lawmaker. After being laid off when Appalachian Fuels filed for bankruptcy in 2009, he created a company called RJA Enterprises.

When asked about the specifics of his job, Adkins responded: “I use a lot, really, I use a lot of the, uh, I use a lot of the, what’s the word I’m looking for, relationships that I developed while I worked in the coal industry for 30 years and some of that may be in the energy sector where I’ll put projects together for different companies or individuals that are looking for opportunities in Eastern Kentucky in the coal fields.”

Adkins often lists himself as a public affairs director in his legislative bios. His 2017 tax returns showed that he and his wife brought in $118,887 that year. He listed his occupation as “project developer.”

Adkins said his role with R.J. Corman is mostly done in other states, where he helps the company “find opportunities” to move coal. The regulation Adkins was writing to oppose dealt directly with the cost of moving cargo on railroads.

“As a state representative I have fought against federal overreach and regulations from Washington that could put Kentucky jobs in jeopardy,” Adkins said. “And I’ll do the same as governor.”

Adkins was not the only lawmaker who wrote to the U.S. Surface Transportation Board about the regulation. At least two other state lawmakers filed letters, one from West Virginia and one from Maryland.

This story was originally published May 3, 2019 at 10:19 AM.

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