Harwell Disclosure Includes New Partnership, More Questions

By Walter F. Roche Jr.

Tennessee House Speaker Beth Harwell has disclosed an ownership interest in the same  partnership that she denied any involvement in just two months ago.
In a new disclosure statement filed Friday with the state Ethics Commission, Harwell listed Legacy One Partnership as both a source of income and an investment. The filing states that her husband Samuel Harwell has an interest in and income from the same partnership.
In response to questions in January,  Kara Owen, Harwell's press secretary, wrote in an email that the speaker had no interest in the Legacy One Partnership.
While the partnership is disclosed, the speaker's new disclosure does not include a similarly named corporation, Legacy One, Inc.
State corporation records show Beth Harwell has been listed as an officer and director of Legacy One, Inc. in multiple filings with the Tennessee Secretary of State going back eight years.
When asked about the omission in January, Owen wrote that Legacy One, Inc.  "has been a dormant corporation with no assets, liabilities, revenue or expenses."
Nonetheless, federal patent and trademark records show Legacy One, Inc  has applied for eight trademarks over the past nine years and three of them remain active.
Owen did not respond immediately Sunday to questions about the Speaker's new disclosure statement.
As for the Legacy One Partnership, real estate records show it has been involved in several multimillion dollar land transactions in Davidson County over the past year.
The disclosure filing comes as Harwell's husband's toy company is featured prominently in a lengthy story published Sunday in the New York Times.
The article details an ongoing court battle between Harwell's company, Big Times Toys, and a company that developed Amazing Live Sea Monkeys. In the suit Yolanda von Braunhut has charged Big Time with breach of contract and trademark infringement.
According to court documents, Big Time had a contract to distribute the popular toy, but abruptly canceled the agreement and began marketing its own China-made Sea Monkey. The suit, now pending in U.S. District Court in New York, followed.
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Statement of Disclosure of Interests (ss-8004)

Date of Filing

2016-04-15

Filer Contact Information

BETH HARWELL View all statements
Representative
19 Legislative Plaza,
Nashville, Tennessee 37243
Email: speaker.beth.harwell@capitol.tn.gov

Sources of Income

Part A

Altria Group Inc.
, ,
Income received by: Filer and Spouse
Walt Disney Co.
, ,
Income received by: Filer and Spouse
SPDR S&P 500 ETF
, ,
Income received by: Filer and Spouse
Costco Wholesale
, ,
Income received by: Filer and Spouse
Avenue Financial
, ,
Income received by: Filer and Spouse
Vanguard Total Stock Fund
, ,
Income received by: Filer and Spouse
Sysco Corporation
, ,
Income received by: Filer and Spouse
Apple Inc
, ,
Income received by: Filer
US Treasury Bonds
, ,
Income received by: Filer
Wells Fargo & Co
, ,
Income received by: Filer
Verizon Communications
, ,
Income received by: Filer
Vanguard Short-Term Invest-Gr Adm
, ,
Income received by: Filer and Spouse
Vanguard High Yield Corporate Fund
, ,
Income received by: Filer and Spouse
Vanguard Inter-Term Investment Grade
, ,
Income received by: Filer and Spouse
Sentinel Balanced Fund
, ,
Income received by: Filer
Genworth Corp Bonds
, ,
Income received by: Filer
Morgan Stanley Corp Bonds
, ,
Income received by: Filer
Goldman Sachs Group Bonds
, ,
Income received by: Filer
SunTrust Bonds
, ,
Income received by: Filer
Amgen, Inc.
, ,
Income received by: Filer and Spouse
Cisco Systems, Inc.
, ,
Income received by: Filer and Spouse
Conoco Philips
, ,
Income received by: Filer and Spouse
JP Morgan Chase
, ,
Income received by: Filer and Spouse
Kraft Foods Group
, ,
Income received by: Filer and Spouse
Microsoft Corp.
, ,
Income received by: Filer and Spouse
Mondelez Intl Inc
, ,
Income received by: Filer and Spouse
Novartis AG
, ,
Income received by: Filer and Spouse
Philip Morris International
, ,
Income received by: Filer and Spouse
Proctor & Gamble
, ,
Income received by: Filer and Spouse
Target Corp.
, ,
Income received by: Filer and Spouse
Tractor Supply Co
, ,
Income received by: Filer and Spouse
United Health Group
, ,
Income received by: Filer and Spouse
Vanguard Short Term Bond ETF
, ,
Income received by: Filer and Spouse
AT&T Bonds
, ,
Income received by: Filer and Spouse
AMEX Bonds
, ,
Income received by: Filer and Spouse
Wells Fargo Bonds
, ,
Income received by: Filer and Spouse
Wal-Mart Bonds
, ,
Income received by: Filer and Spouse
Northern TR Corp Bonds
, ,
Income received by: Filer and Spouse
Cleveland TN Bonds
, ,
Income received by: Filer and Spouse
Putnam Cnty Bonds
, ,
Income received by: Filer and Spouse
Watts Bar Util Bonds
, ,
Income received by: Filer and Spouse
Capital World Growth Mutual Fund
, ,
Income received by: Filer and Spouse
Schwab Money Market Fund
, ,
Income received by: Filer and Spouse
Rental Real Estate
, Nashville, TN
Income received by: Filer and Spouse
Big Time Toys , LLC
8805 Church St. E., Brentwood, TN
Income received by: Spouse
Rental Real Estate
, Nashville, TN
Income received by: Spouse
Rental Real Estate
, Franklin , TN
Income received by: Spouse
Rental Real Estate
, Murfreesboro, TN
Income received by: Spouse
Legacy One Partnership
, ,
Income received by: Filer and Spouse

Part B

SPDR S&P 500 ETF
Vanguard Total Stock

Positions Held

Montgomery Bell Academy Board Member from May 2013 to May 2017
Tennessee State Museum Foundation Board Member from Jul 2009 to Jun 2015
Douglas Henry State Museum Commission Board Member from Jul 2009 to Jun 2016
Mental Health America of Middle Tennessee Board Member from Jul 2011 to Jun 2017
Republican Legislative Campaign Committee (Republican State Leadership Committee) Executive Committee Member from May 2012 to Jun 2016
Saint Thomas Health Mission and Advocacy Committee Member from Jan 2013 to Jan 2017
National Speakers Conference 2nd Vice President from Feb 2013 to Dec 2015
Right Women Right Now (Republican State Leadership Committee) Co-Chair from May 2013 to Apr 2014
PearlPoint Cancer Support Board Member from Jun 2013 to Sep 2015
Tennessee Parks and Greenways Foundation Ex oficio from Jan 2011 to Jan 2015
Jobs for Tennessee Graduates Board Member from Mar 2014 to Jun 2017

Blind Trust

None

Investments

SPDR S&P 500 ETF : held by Filer and Minor Child
Charles Schwab Cash Account - IRA : held by Filer
Alphabet, Inc. : held by Filer and Spouse
Altria Group : held by Filer, Spouse, and Minor Child
Amazon.com : held by Filer, Spouse, and Minor Child
Avenue Financial : held by Filer and Spouse
Costco Wholesale : held by Filer and Spouse
Walt Disney Co. : held by Filer, Spouse, and Minor Child
SPDR Gold Shares ETF : held by Filer and Spouse
ISHARES Gold ETF : held by Filer and Spouse
US Treasury Bills : held by Filer and Spouse
Vanguard Total Stock Fund : held by Filer and Spouse
Berkshire Hathaway : held by Filer and Spouse
Sysco Corporation : held by Filer and Spouse
USG Corporation : held by Filer and Spouse
US Treasury Bonds : held by Filer
Apple Inc : held by Filer and Minor Child
Vanguard S/T Investment : held by Filer, Spouse, and Minor Child
Wells Fargo & Co : held by Filer
Vanguard Admiral Treasury MM : held by Filer and Spouse
Vanguard High Yield Corporate Fund : held by Filer and Spouse
Vanguard Inter-Term Investment Grade : held by Filer and Spouse
Vanguard Prime Money Market : held by Filer and Spouse
Vanguard Short-Term Invest-Gr Adm : held by Filer and Spouse
Sentinel Balanced Fund : held by Filer
Sun Trust : held by Filer
Genworth Financial Corp Bonds : held by Filer
Morgan Stanley Corp Bonds : held by Filer
Goldman Sachs Group Bonds : held by Filer
SunTrust Bonds : held by Filer
Deutsche Strategic Gov Fund : held by Filer
Deutsche Core Equity Fund : held by Filer
Deutsche Capital Growth Fund : held by Filer
TIAA Annuity Contracts : held by Filer
Bruce Fund : held by Spouse
WFAF Large Cap Growth Adm - H.S.A. : held by Spouse
WFAF Growth Adm - H.S.A. : held by Spouse
Goldman Sachs Sm Cap Val - H.S.A. : held by Spouse
WFAF Global Opps Adm - H.S.A. : held by Spouse
Amgen, Inc. : held by Filer and Spouse
Cisco Systems, Inc. : held by Filer and Spouse
Conoco Philips : held by Filer and Spouse
Fireeye, Inc. : held by Filer and Spouse
JP Morgan Chase : held by Filer and Spouse
Kraft Foods Group : held by Filer and Spouse
Microsoft Corp : held by Filer and Spouse
Mondelez Intl Inc : held by Filer and Spouse
Novartis AG : held by Filer and Spouse
Philip Morris International : held by Filer and Spouse
Procter & Gamble : held by Filer and Spouse
Target Corp : held by Filer and Spouse
Tractor Supply Co : held by Filer and Spouse
United Health Group : held by Filer and Spouse
JP Morgan Chase Bonds : held by Filer and Spouse
AT&T Bonds : held by Filer and Spouse
AMEX Bonds : held by Filer and Spouse
Wells Fargo Bonds : held by Filer and Spouse
Wal-Mart Bonds : held by Filer and Spouse
Northern TR Corp Bonds : held by Filer and Spouse
Cleveland TN Bonds : held by Filer and Spouse
Putnam Cnty Bonds : held by Filer and Spouse
Watts Bar Util Bonds : held by Filer and Spouse
Capital World Growth Mutual Fund : held by Filer and Spouse
Vanguard Short Term Bond ETF : held by Filer and Spouse
Under Armour Inc : held by Minor Child
Vanguard Total Stock Market : held by Minor Child
Wal-Mart Stores Inc : held by Minor Child
Nike Inc : held by Minor Child
Legacy One Partnership : held by Filer and Spouse

Legislative Expenses

None

Lobbying

None

Professional Services

None

Retainer Fees

None

Bankruptcy

None

Loans

None

Certification

"Dormant" Harwell Firm Holds Toy Trademarks

By Walter F. Roche Jr.

The company that Tennessee House Speaker Beth Harwell says is dormant and has no assets or liabilities has applied for eight trademarks over the past nine years and three of them remain active.
Records at the U.S. Patent and Trademark Office show the trademarks were issued to Legacy One, Inc., the company that has listed Harwell as an officer and director for the last eight years. The company was incorporated in 2007.
When Harwell was asked recently why she did not disclose her involvement with the company in her annual financial disclosure reports to the state Ethics Commission, her press secretary issued a one sentence response stating that "Legacy One, Inc. has been a dormant corporation with no assets, liabilities, revenue or expenses."
Despite that claim federal trademark records show the corporation began filing trademark applications in 2007 and has continued to do so with the latest, "Legion of Warriors," filed on Sept. 16, 2014.
The trademarks coincide with some products of Big Time Toys, a Nashville firm headed by the speaker's husband, Samuel Harwell. Samuel Harwell is also listed as an officer and director of Legacy One, Inc.
Beth Harwell's spokeswoman, Kara Owen, referred questions about the trademarks to the company. Samuel Harwell did not respond to questions emailed to him at Big Time Toys.
"Wacky Wall Walkers" was filed as a trademark by Legacy One on June 6, 2007. Records show it was "abandoned" on March 18, 2008. According to the patent office website, trademarks are classified as abandoned when the holder fails to provide required updates.
"Yak Bak" was filed as a trademark on Feb. 23, 2013 and was granted an extension on March 17, 2015 and is still active.
Another "live" filing, records show, is "Starting Lineup," filed Jan. 1, 2014.
Other abandoned trademarks filed by Legacy One, Inc. include "Mood Girls," "Warp Whammers," "Silly Sand," and "SuperElasticBubblePlastic."
Owen, the speaker's spokeswoman did say in a brief email response to questions that Legacy One, Inc. has no interest in real estate properties including a recent series of Nashville transactions by Legacy One Partnership, which, court records show, is headed by Samuel Harwell.
Contact:wfrochejr999@gmail.com

Harwell Failed to Report Involvement In Local Firm

By Walter F. Roche Jr.

Tennessee House Speaker Beth Harwell has repeatedly failed to disclose her involvement in a corporation formed eight years ago.
State corporation records show Harwell and her husband Samuel have been listed as officers in Legacy One, Inc. in annual reports filed with the Tennessee Secretary of State from 2008 to 2015.
Beth Harwell is listed as secretary and Samuel Harwell as president. Both are also listed as directors. The company was incorporated in June of 2007.
Although all eight annual reports for the corporation list both Harwells as officers, the corporation is not listed in any annual financial disclosure reports Speaker Harwell filed with the state Ethics Commission from 2008 to the present. The reports call for the disclosure of sources of income, investments and positions held.
Harwell spokeswoman Kara Owen said that Legacy One was "a dormant corporation through the end of the last reporting period with no liabilities, revenue or expenses and the speaker had no ownership interest" in a similarly named real estate company, Legacy One Partnership
The Tennessee Governmental Ethics Reform Act requires public officials to disclose  "any positions held during the applicable reporting period, including, but not limited to, those of an officer, director, trustee, general partner, proprietor, or representative of any corporation, firm, partnership, or other business enterprise."
Last year Legacy One filed suit in Davidson Chancery Court charging that the man who sold six parcels to the firm  had breached their contracts when $1.25 million in liens were placed against the properties just before deeds were recorded. The suit filed last year was settled in less than a month on May 14.
According to the suit, Keith Barksdale of Santa Fe, NM sold family interests in land at 2111 and 2113 Belcourt Ave., property at 2300 West End Ave. in Nashville and an interest in property at 346 Main St. in Franklin to Legacy One.
Also sold to Legacy were Barksdale's interests in 109 23rd Ave. and 1803-1805 21st Ave. South also in Nashville.
The total sales price for all the parcels was just under $2.3 million. Records show Barksdale was conveying his and his family's interests in Buckhead Investments, the actual property holder.
The deeds were transferred in two separate transaction of $960,000 and $1.3 million. All but one of the properties are located in Nashville with some in Hillsboro Village and some in the West End. Tenants include a bank branch and restaurants.
The speaker was previously listed as an officer with her husband in another company called Big Time Toys, a Nashville firm that imports toys from China and has facilities in Hong Kong, according to the company website.
Big Time Toys and Big Time Hong Kong are listed on Harwell's recent ethics disclosure reports as  interest of her husband's.
In 2009 Harwell sought an opinion from then Attorney General Robert Cooper questioning the legality of a then pending bill which would set restrictions on imported toys containing toxic substances.
She asked if the proposal would violate the Commerce Clause of the U.S. Constitution and if any such state law would be superseded by existing federal law.
Cooper in an  8-page opinion concluded that the state could in fact set its own standards. The bill, however,  never made it out of the legislature.
Big Time previously owned a property at 2820 Columbine in Nashville but it was transferred to Samuel Harwell in 2014 for no consideration.
The Speaker and her husband own a residence at 413 West Tyne in Belle Meade. Purchased for $875,000 in 1999, it is assessed for $1.5 million.
Contact: wfrochejr999@gmail.com

TN Legislature Delivers for FedEx

By Walter F. Roche Jr.


Acting quickly at the governor's behest, the Tennessee General Assembly has granted Memphis based FedEx a multimillion dollar tax break that far surpasses the thousands of dollars in campaign contributions House and Senate members received from the company.
The bill, which creates a new cap on annual aviation fuel tax collections, will, at least in the foreseeable future, benefit only FedEx.
FedEx employees, directly and through the company political action committee, have donated well over $100,000 in the past year to legislators, including Republican House Speaker Beth Harwell who took in about $14,600 for her campaign committee and her own political action fund.
Under the bill fuel tax collections from any one corporation would be capped at increasingly lower amounts over the next four years after which it would remain at $10.5 million. Currently FedEx pays some 32.5 million per year in Tennessee aviation taxes.
Aviation fuel is taxed in Tennessee at 4.5 per cent.
The bill was proposed by the Bill Haslam administration. The bill is on his desk and he is expected to sign it. Campaign finance reports for 2014 show Haslam's campaign garnered a single $125 contribution for a FedEx employee
In addition to the contributions to Harwell, the FedEx PAC and its employees donated $10,000 to the Senate Republican Caucus, $5,000 to the Senate Democratic Caucus and $11,000 to the Tennessee Legislative Campaign Committee, which backs Republican candidates
The House Republican Caucus collected $10,000 from the FedEx PAC, while the Tennessee Democratic Party got $5,000. Republican Senate Speaker Ron Ramsey's PAC collected $2,500.
Among other individual legislators, FedEx donated $2,500 each to Sen. Brian Kelsey and Sen. Jim Tracy, both Republicans.




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