§ Ark. Code § 7-6-203(untitled)

Contributions — Limitations — Acceptance or solicitation — Use as personal
income — Disposition.
(a)(1)(A) It shall be unlawful for any candidate for any public office or for any person acting on
the candidate’s behalf to accept campaign contributions in excess of the maximum campaign
contribution limit established by the Arkansas Ethics Commission under subsection (i) of this
section per election from:
(i) An individual;
(ii) A political party that meets the definition of a political party under § 7-1-101;
(iii) A political party that meets the requirements of § 7-7-205;
(iv) A county political party committee;
(v) A legislative caucus committee; or
(vi) An approved political action committee.
(B) It shall be unlawful for a candidate for a public office or for any person acting on the
candidate’s behalf to accept a campaign contribution from a prospective contributor other than
those under subdivisions (a)(1)(A)(i)-(vi) of this section.
(C) It shall be unlawful for a prospective contributor other than those under subdivisions
(a)(1)(A)(i)-(vi) of this section to make a contribution to:
(i) A candidate for public office; or
(ii) A person acting on the candidate’s behalf.
(2) A candidate may accept a campaign contribution or contributions up to the maximum
amount from any prospective contributor under subdivisions (a)(1)(A)(i)-(vi) of this section for
each election, whether opposed or unopposed.
(b)(1)(A) It shall be unlawful for any person to make a contribution to a candidate for any
public office or to any person acting on the candidate’s behalf, which in the aggregate amount
exceeds the maximum campaign contribution limit established by the Arkansas Ethics
Commission per election.
(B) The total aggregate amount per election is based on the total contributions made to a
candidate by a donor during an election regardless of which office or offices the candidate is
seeking, and the aggregate amount during an election applies even if a candidate:
(i) Seeks more than one (1) office during the election; or
(ii) Concludes a campaign or otherwise withdraws from the election.
(2) A person permitted to make a contribution or contributions under subdivisions (a)(1)(A)(i)(vi) of this section may make a contribution or contributions up to the maximum amount to a
candidate for each election, whether opposed or unopposed.
(c) The limitation shall not apply to loans made by a candidate from his or her own personal
funds to the campaign, contributions made by a candidate from his or her personal funds to the
Previous
Next Page
CAMPAIGN PRACTICES
7-6-203
campaign, or to personal loans made by financial institutions to the candidate and applied to his
or her campaign.
(d)(1) It shall be unlawful for any candidate for any public office or any person acting in the
candidate’s behalf to accept any contribution from a prohibited political action committee for any
election.
(2) It shall be unlawful for any prohibited political action committee to make a contribution to
a candidate for public office in an election.
(3) It shall be unlawful for any ballot question committee, legislative question committee,
political party, county political party committee, or approved political action committee to accept
any contribution from a prohibited political action committee.
(4) It shall be unlawful for any prohibited political action committee to make a contribution to:
(A) A ballot question committee;
(B) A legislative question committee;
(C) A political party;
(D) A county political party committee;
(E) An approved political action committee; or
(F) A prohibited political action committee.
(e) [Repealed.]
(f)(1) A candidate shall not take any campaign funds as personal income.
(2) A candidate shall not take any campaign funds as income for his or her spouse or dependent
children, except that:
(A) This subsection shall not prohibit a candidate who has an opponent from employing his
or her spouse or dependent children as campaign workers;
(B) The use of campaign funds to pay a candidate’s childcare expenses shall not be
considered a taking of campaign funds as personal income if the campaign funds are used to
pay for childcare for the time the candidate is engaging in campaign activity and the childcare
expenses would not exist in the absence of the campaign; and
(C) Any candidate who has an opponent and who, during the campaign and before the
election, takes a leave of absence without pay from his or her primary place of employment
shall be authorized to take campaign funds during the campaign and before the election as
personal income up to the amount of employment income lost as a result of the leave of absence.
(3) A candidate who takes campaign funds during the campaign and before the election under
a leave of absence pursuant to the provisions of subdivision (f)(2) of this section may elect to treat
the campaign funds as a loan from the campaign fund to the candidate to be paid back to the
campaign fund by the candidate.
(4)(A)(i) For purposes of this subsection, a candidate or officeholder, who uses campaign funds
to fulfill any commitment, obligation, or expense that would exist regardless of the candidate’s
campaign or officeholder activity, shall be deemed to have taken campaign funds as personal
income.
(ii) Candidates or officeholders may use campaign funds to fulfill any commitment, obligation, or expense authorized by law, or permitted by an Arkansas Ethics Commission rule or
opinion at the time of the expenditure, or reasonably and legitimately related to a campaign or
officeholder activity.
(iii) If a candidate or officeholder is assessed a fine by the Arkansas Ethics Commission
under § 7-6-218(b)(4)(B) for the use of campaign funds as personal income, a candidate or
officeholder shall not use campaign funds or remaining campaign funds to pay the fine.
(B) The use of campaign funds to purchase a cake or other perishable item of food at a
fund-raising event held by a volunteer agency, as defined in § 16-6-103, shall not be considered
a taking of campaign funds as personal income.
(C) The use of campaign funds to purchase advertising prior to the date the final report is
due to be filed thanking voters for their support shall not be considered a taking of campaign
funds as personal income.
Previous
Next Page
7-6-203
ELECTIONS
(D) The use of campaign funds to pay a candidate’s own personal expenses for food, lodging,
or travel to attend a national presidential nominating convention shall not be considered a
taking of campaign funds as personal income.
(5) If a candidate loses an election or if an officeholder is no longer in office, personal use of
campaign funds remains prohibited by this section unless the expenses relate to a future
candidacy and shall comply with subdivision (f)(4) of this section.
(6) Knowingly taking campaign funds as personal income is a:
(A) Class B felony if the value of the benefit is twenty-five thousand dollars ($25,000) or
more;
(B) Class C felony if the value of the benefit is five thousand dollars ($5,000) or more but less
than twenty-five thousand dollars ($25,000);
(C) Class D felony if the value of the benefit is two thousand five hundred dollars ($2,500)
or more but less than five thousand dollars ($5,000); or
(D) Class A misdemeanor if the value of the benefit is less than two thousand five hundred
dollars ($2,500).
(7) It is an affirmative defense to a prosecution for taking campaign funds as personal income
if the candidate or officeholder shows by a preponderance of the evidence that the personal
property was retained as campaign funds, and the candidate or officeholder:
(A) Reported the personal property as campaign funds; and
(B) Retained or disposed of the personal property in the manner that is required by law for
campaign funds.
(g)(1) A candidate may turn over campaign funds to either:
(A) The Treasurer of State for the benefit of the General Revenue Fund Account of the State
Apportionment Fund;
(B) A political party as defined in § 7-1-101 or a political party caucus of the General
Assembly, the Senate, or the House of Representatives;
(C) A nonprofit organization that is exempt from taxation under Section 501(c)(3) of the
Internal Revenue Code;
(D) Cities of the first class, cities of the second class, or incorporated towns; or
(E) The contributors to the candidate’s campaign.
(2)(A) Remaining campaign funds may be maintained after an election and used to run for
election or reelection.
(B) Nothing shall prohibit a person at any time from disposing of all or any portion of his or
her campaign funds in the manner set out under subdivision (g)(1) of this section. However, the
candidate shall not take the funds as personal income or as income for his or her spouse or
dependent children.
(C)(i) Campaign funds may be retained by a person for not more than ten (10) years after the
last election at which he or she was a candidate, or if applicable, not more than ten (10) years
after the last day that the person held office, and any remaining campaign funds shall be
disposed of in the manner set out under subdivision (g)(1) of this section.
(ii)(a) The officer with whom the person last filed a final campaign report shall provide the
person timely notice of the requirements of this subdivision (g)(2)(C) prior to the expiration of
the ten-year period.
(b) However, failure to provide the notice does not relieve the person of his or her obligation
under this subsection.
(D)(i) The use of campaign funds to pay an elected candidate’s own personal expenses for
food, lodging, conference fees, or travel to attend a conference related to the performance of his
or her responsibilities as an elected official shall not be considered a taking of campaign funds
as personal income.
(ii) The reimbursement of expenses shall be a result of travel and the source of the
reimbursement shall be authorized under the rules of the House of Representatives or the
Senate and used to reimburse the campaign account.
(iii) The reimbursement amount shall be reported in the elected candidate’s campaign fund
report.
Previous
Next Page
CAMPAIGN PRACTICES
7-6-203
(E) If a candidate or officeholder uses campaign funds or remaining campaign funds to pay
a fine imposed by the Arkansas Ethics Commission under § 7-6-218(b)(4)(B) for the use of
campaign funds as personal income, the candidate or officeholder shall be deemed to have
taken campaign funds as personal income.
(3) After the date of an election at which the person is a candidate for nomination or election,
the person shall not accept campaign contributions for that election except for the sole purpose
of raising funds to retire campaign debt.
(4) Campaign funds or remaining campaign funds given to a political party caucus shall be
segregated in an account separated from other caucus funds and shall not be used:
(A) By the political party caucus to make a campaign contribution; or
(B) To provide any personal income to any candidate who donated campaign funds or
remaining campaign funds.
(h) A candidate may maintain his or her campaign funds in one (1) or more campaign accounts.
Campaign funds shall not be placed in an account containing personal or business funds.
(i)(1) The Arkansas Ethics Commission shall establish the maximum campaign contribution
limit as follows:
(A) The adjusted maximum campaign contribution limit shall be calculated from a base
amount of two thousand dollars ($2,000) as of January 1, 2015;
(B)(i) The maximum campaign contribution limit shall be adjusted each odd-numbered year
in an amount equal to the percentage certified to the Federal Election Commission by the
United States Secretary of Labor under 52 U.S.C. § 30116(c) as existing on January 1, 2025.
(ii) The adjustment under subdivision (i)(1)(B)(i) of this section shall occur as soon as
practicable following the certification to the Federal Election Commission by the United States
Secretary of Labor, but no later than the later of:
(a) Thirty (30) days following the certification; or
(b) The next regularly scheduled meeting of the Arkansas Ethics Commission; and
(C) If the amount of the maximum campaign contribution limit after adjustment under
subdivision (i)(1)(B) of this section is not a multiple of one hundred dollars ($100), the Arkansas
Ethics Commission shall round the amount to the nearest multiple of one hundred dollars
($100).
(2)(A) The Arkansas Ethics Commission shall:
(i) Publish the maximum campaign contribution limit established under subdivision (i)(1) of
this section on the official website of the Arkansas Ethics Commission and in any other location
or format deemed necessary by the Arkansas Ethics Commission; and
(ii) Make the maximum campaign contribution limit established under subdivision (i)(1) of
this section available to the Secretary of State, elected public officials, candidates, committees
under this subchapter, and the public.
(B) The maximum campaign contribution limit established under subdivision (i)(1) of this
section shall be:
(i) Effective upon being published upon the official website of the Arkansas Ethics Commission; and
(ii) Retroactive to the date of the certification to the Federal Election Commission by the
United States Secretary of Labor under subdivision (i)(1)(B)(i) of this section.
(C) The maximum campaign contribution limit established under subdivision (i)(1) of this
section:
(i) Is not a rule under §§ 10-3-309 and 25-15-202; and
(ii) Shall not be promulgated under the Arkansas Administrative Procedure Act, § 25-15201 et seq.