Dems: Release records from PR contract with RFRA ties

Democrats are calling on Gov. Mike Pence's administration to release documents related to its contract with a global public relations firm hired to help enhance the state's image after the national firestorm over Indiana's new religious freedom law.

"Mike Pence wasn't being transparent with Hoosiers when he terminated the taxpayer-funded contract with Porter Novelli the day before a long holiday weekend," said John Zody, chairman of the Indiana Democratic Party. "Today in a letter delivered to his office, I'm formally calling on Mike Pence to release all documents, including contracts, message memos, and emails related to his contract with Porter Novelli to 'repair' the $250 million economic panic he caused the state."

The state's economic development agency abruptly canceled a $750,000 contract with New York-based PR firm Porter Novelli late last week, citing strong employment numbers, national recognition for the state's business-friendly climate and cost management efforts.

The state plans to pay the firm $365,000 for work already completed, but what exactly Hoosiers got in exchange for that money is unclear. The Indiana Economic Development Corp. denied a request from The Indianapolis Star last week for any reports, recommendations or emails furnished by the company.

In response to the letter from Zody, Abby Gras, an IEDC spokeswoman, released a statement Monday that said the Porter Novellicontract and cancellation agreement are publicly available online.

She said the agency will respond to requests for other records "in accordance to Indiana law."

"Indiana continues to make headlines as a state that is attracting and adding private sector jobs at record-setting levels and is being recognized by national publications for its business-friendly climate. In light of this strong news and our ongoing focus on cost management, we decided to conclude the contract with Porter Novelli," she said.

Zody, however, said in his letter to the Republican governor that "far too many questions are still left unanswered for Hoosiers."

"Indiana must find out the true rationale for the contract with Porter Novelli and the reasoning behind its termination," he said.

In denying the Star's request for records, the IEDC initially said the request was too broad. When the Star limited its request to reports and recommendations produced by Porter Novelli, the agency denied the request again, citing an exemption in Indiana's open records law for "deliberative" materials.

State law does allow records to be kept confidential if they "are expressions of opinion or are of a speculative nature" and "are communicated for the purpose of decision making."

But Steve Key, executive director of the Hoosier State Press Association, which advocates for open records, said that exception doesn't allow the state to issue an across-the-board denial of all records.

"I have trouble imagining that all the documents and every part of those documents was opinion or speculation," he said. "There should be a document showing they did some work."

For example, he said, the results of any polls, surveys or focus groups that Porter Novelli conducted, or any invoices showing work completed by the company, should not be considered deliberative.

"The whole concept that the legislature embodied in the Access to Public Records Act is that the public is the master and government is servant," he said, "and the public has a right to know how their representatives are spending their tax dollars."

One question that remains about Porter Novelli's work is whether the firm made any recommendations about civil rights protections for gays and lesbians — an issue likely to become a flashpoint during next year's legislative session and the 2016 gubernatorial election.

There is little doubt that the Pence administration and the global PR firm have a difference of opinion on gay rights. Last week, when the U.S. Supreme Court legalized same-sex marriage nationwide, Pence issued a statement expressing disappointment in the decision. Porter Novelli, on the other hand, expressed support for the LGBT community, replacing its company logo's usual orange color with rainbow colors on its website.

Gras, the IEDC spokeswoman, stopped short of explicitly saying whether or not a human rights statute was discussed or recommended by the PR firm.

"During this time, we engaged in meaningful dialogue and received strategic counsel focused on identifying the State's leading assets, outlining key audiences and strategies to integrate into future marketing efforts to attract business and tourism to Indiana," she said. "This engagement centered on marketing strategy and efforts, not policy or legislation, as we continue to share Indiana's story as a state that works."

Democrats and some Republican business leaders are advocating a state law that would ban discrimination based on sexual orientation and gender identity. They see such a measure as the best way to restore the state's reputation after the controversy over Indiana's Religious Freedom Restoration Act.

Pence, however, has traditionally opposed new protections for gays and lesbians — a stance from which he has not wavered, even as recent polls show his reputation among voters has continued to suffer since the RFRA controversy.

The IEDC hired Porter Novelli in May to help develop a plan to rebuild the state's image after widespread criticism over the religious freedom law that Pence signed into law in March. The law was intended to protect religious believers from government overreach, but critics contended the law would allow business owners to refuse service to gays and lesbians for religious reasons. Those concerns prompted boycott threats from businesses and event planners.

The firestorm quieted after lawmakers revised the law, but convention and tourism officials across the state say they are still being questioned about the law and that its true effects might not be known for years.

Pence's popularity among voters has plummeted since the controversy erupted. A poll last month showed a majority of Hoosiers want a new governor.

In announcing the decision to hire Porter Novelli in April, IEDC officials said the state ultimately planned to spend $2 million with the firm, plus however much more was needed in advertising buys.

The state's initial contract with the company allowed up to $750,000 for the first phase of a "reputation enhancement initiative." That phase was to run through Sept. 30 and called for the ad firm to assess the perceptions and expectations of the state and to develop a campaign and strategic approach, including the development and design of a marketing campaign.

In canceling the contract last week, IEDC officials cited a recent CNBC ranking that listed Indiana as the best state in the nation for the cost of doing business. They also highlighted the creation of 119,000 private-sector jobs since Pence took office and a decline in the unemployment rate.

Call Star reporter Tony Cook at (317) 444-6081. Follow him on Twitter: @indystartony.