Current through Register Vol. 49, No. 2, February 2024
§ 300
Definitions
(a)
Compensation
- As used in these rules,
the term "compensation" means any money or anything of value received, or to be
received as a claim for future services, whether in the form of a retainer,
fee, salary, expense, allowance, forbearance, forgiveness, interest, dividend,
royalty, rent, or any other form of recompense or any combination thereof. It
includes a payment made under obligation for services or other value received.
The term "compensation" does not include anything of value presented to an
employee of a public school district, the Arkansas School for the Blind, the
Arkansas School for the Deaf, the Arkansas School for Mathematics and Science,
a university, a college, a technical college, a technical institute, a
comprehensive life-long learning center, or a community college in recognition
of the employee's contribution to education.
(b)
Gift
- As used in these rules, the term "gift" means any payment,
entertainment, advance, services, or anything of value, unless consideration of
equal or greater value has been given therefor. It does not include:
(1) Informational material such as books,
reports, pamphlets, calendars, or periodicals informing a public servant
regarding his or her official duties. (NOTE: payments for travel or
reimbursement for any expenses are not informational material);
(2) The giving or receiving of food, lodging,
or travel which bears a relationship to the public servant's office and when
appearing in an official capacity;
(3) Gifts which are not used and which,
within thirty (30) days after receipt, are returned to the donor;
(4) Gifts from an individual's spouse, child,
parent, grandparent, grandchild, brother, sister, parent-in-law,
brother-in-law, sister-in-law, nephew, niece, aunt, uncle, or first cousin, or
the spouse of any of these persons, unless the person is acting as an agent or
intermediary for any person not covered by this paragraph;
(5) Campaign contributions;
(6) Any devise or inheritance;
(7) Anything with a value of $100 or less
(NOTE: The value of an item shall be considered to be less than $100 if the
public servant reimburses the person from whom the item was received any amount
over $100 and the reimbursement occurs within ten (10) days from the date the
item was received.);
(8) Wedding
presents and engagement gifts;
(9)
A monetary or other award presented to an employee of a public school district,
the Arkansas School for the Blind, the Arkansas School for the Deaf, the
Arkansas School for Mathematics and Science, a university, a college, a
technical college, a technical institute, a comprehensive life-long learning
center, or a community college in recognition of the employee's contribution to
education;
(10) Tickets to
charitable fundraising events held within this state by a non-profit
organization which is exempt from taxation under Section 501(c)(3) of the
Internal Revenue Code;
(11) A
personalized award, plaque, or trophy with a value of one hundred fifty dollars
($150) or less;
(12) An item which
appointed or elected members of a specific governmental body purchase with
their own personal funds and present to a fellow member of that governmental
body in recognition of public service;
(13) Food or beverages provided at a
conference scheduled event that is part of the program of the
conference;
(14) Food or beverages
provided in return for participation in a bona fide panel, seminar, speaking
engagement at which the audience is a civic, social, or cultural organization
or group;
(15) A monetary or other
award publicly presented to an employee of state government in recognition of
his or her contributions to the community and State of Arkansas when the
presentation is made by the employee's supervisor or peers, individually or
through a nonprofit organization which is exempt from taxation under Section
501(c) of the Internal Revenue Code, and the employee's receipt of the award
would not result in or create the appearance of the employee using his or her
position for private gain, giving preferential treatment to any person, or
losing independence or impartiality. (NOTE: This exception shall not apply to
an award presented to an employee of state government by a person having
economic interests which may be affected by the performance or nonperformance
of the employee's duties or responsibilities.);
(16) Any work of art, contracted for prior to
January 1, 1998, for public service recognition for members of the Arkansas
General Assembly; or
(17) Racing
passes provided to and accepted by members of the General Assembly and other
constitutional officers for redistribution to their constituents and persons
residing outside the State of Arkansas to promote tourism and advance the
economic interests of the State.
(c)
Governmental
Body
- As used in these rules, the term "governmental body"
means any office, department, commission, council, board, committee,
legislative body, agency, or other establishment of the executive, judicial, or
legislative branch of the state, municipality, county, school district,
improvement district, or any political district or subdivision
thereof.
(d)
Legislator
- As used in these rules, the term
"legislator" means any person who is a member of the General Assembly, a quorum
court of any county, or the city council or board of directors of any
municipality.
(e)
Official Capacity
- As used in these rules, the
term "official capacity" means activities which arise solely because of the
position held by the public servant, which would be subject to expense
reimbursement by the agency with which the public servant is associated, and
which involve matters falling within the official responsibilities of the
public servant.
(f)
Person
- As used in these rules, the term
"person" means a business, individual, corporation, union, association, firm,
partnership, committee, club or other organization or group of
persons.
(g)
Public Appointee
- As used in these rules, the
term "public appointee" means an individual who is appointed to a governmental
body. It does not include an individual appointed to an elective
office.
(h)
Public Employee
- As used in these rules, the
term "public employee" means an individual who is employed by a governmental
body or who is appointed to serve a governmental body. It does not include
public officials or public appointees.
(i)
Public
Official
- As used in these rules, the term "public
official" means a legislator or any other person holding an elective office of
any governmental body, whether elected or appointed to the office, and shall
include such persons during the time period between the date they were elected
and the date they took office.
(j)
Public Servant
- As used in these rules,
the term "public servant" means all public officials, public employees, and
public appointees.
(k)
Registered Lobbyist
- As used in these rules,
the term "registered lobbyist" means a person who is registered as a lobbyist
pursuant to the provisions of Ark. Code Ann. §
21-8-601
et seq.
§ 301
Payment of Public Servant's Expenses for Food, Lodging, or Travel
(a) The giving or receiving of food, lodging,
or travel shall not be considered a gift in situations where a public servant
is appearing in his or her official capacity and the appearance bears a
relationship to the public servant's office or position.
(b) For purposes of this rule, a public
servant appears in an official capacity when the appearance arises solely
because the position held by the public servant, would be subject to expense
reimbursement by the agency with which the public servant is associated, and
involves matters which fall within the official responsibility of the public
servant.
(c) For purposes of this
rule, an appearance at an event bears a relationship to the public servant's
office or position when such appearance furthers a purpose of the governmental
body served by the public servant and the interest of such governmental body
outweighs the likelihood that attending the event will improperly influence the
public servant in the performance of his or her official duties and
responsibilities. Factors to be considered in making a determination as to
whether or not an appearance bears a relationship to a public servant's office
or position shall include, but not be limited to: the nature of any pending
matter affecting the interest of the person paying for the food, lodging, or
travel; the importance of the event to the governmental entity; the
significance of the public servant's role in the event; the timing of the
event; the identity of other expected participants; and, the cost of the public
servant attending the event. If a public servant is invited to attend a purely
social event with no or a de minimis nexus to the programs or operations of the
governmental entity which he or she serves, then the public servant's
attendance would not bear a sufficient relationship to his or her office or
position to meet the exception contained in subsection (a) of this rule.
§ 302
Reporting of Payments for Public Servant's Expenses for Food, Lodging, or
Travel
(a) In situations where a
registered lobbyist pays all or part of an expenditure in excess of $40 on
behalf of a public servant for food, lodging, or travel, such lobbyist shall be
required to report an itemized listing of the payment on a Lobbyist Activity
Report pursuant to § 511 of the Commission's Rules on Lobbyist
Registration and Reporting. Those reporting requirements apply regardless of
whether the public servant is appearing in his or her official capacity or the
event bears a relationship to the public servant's office or
position.
(b) If a nongovernmental
source makes an expenditure for food, lodging, or travel in excess of $150 on
behalf of a public servant who is (i) appearing in his or her official capacity
at an event which bears a relationship to his or her office or position and
(ii) required to file a Statement of Financial Interest pursuant to Ark. Code
Ann. §
21-8-701(a),
then such payment would need to be reported by the public servant in Section 10
of his or her Statement of Financial Interest.
(c) In situations where a public servant
makes an appearance which is not an appearance in his or her official capacity
or which does not bear a relationship to his or her office or position, a
payment for food, lodging, or travel in excess of $100 on behalf of the public
servant would be considered a gift, unless such payment is otherwise excepted
from the definition of gift. Assuming the public servant is required to file a
Statement of Financial Interest pursuant to Ark. Code Ann. §
21-8-701(a),
the receipt of such food, lodging, or travel would need to be reported as a
gift in Section 8 of his or her Statement of Financial Interest.
§ 303
Receipt
of Gifts by Public Servants
(a) No
public servant shall receive a gift for the performance of the duties and
responsibilities of his or her office or position.
(b) For purposes of this rule, a gift shall
be prohibited if it is intended to reward a public servant for doing his or her
job or it is intended as a reward for past or future action. In contrast to
bribery which requires a showing that a gift and some official action motivated
each other, a gift is prohibited by this rule if the gift is for or because of
the action. In order for a gift to be prohibited, it need not be shown that the
official action was for or because of the gift.
(c) A public servant is not prohibited from
receiving an item conferred to show appreciation for the public servant's job
performance (i.e., to reward the public servant for doing his or her job) so
long as the value of the item does not exceed $100. Items costing more than
$100 which are given to public servants to show appreciation for their efforts
(i.e., to reward them for doing their job) or to reward them for past or future
action are prohibited under this rule.
(d) A public servant is not prohibited from
receiving all gifts. For example, a public servant may accept a gift conferred
on account of a bona fide personal, professional, or business relationship
independent of his or her official status. In determining whether a gift was
conferred on account of an independent relationship, the Commission will
consider such factors as when the relationship began (i.e., before or after the
public servant obtained his or her office or position), the prior history of
gift giving between the individuals, whether the gift was given in connection
with a holiday or other special occasion, and whether the same gift was given
to other public servants.
§
304
Providing Gifts to Public Servants
(a) No person shall confer a gift to any
public servant, the receipt of which is prohibited by § 303 of these
rules.
(b) The first violation of
this section by any person other than a registered lobbyist shall result in a
written warning. Upon a second and subsequent violations by persons other than
registered lobbyists and upon a first violation by registered lobbyists, the
sanctions provided for in Ark. Code Ann. §
7-6-218 shall
apply.
§ 305
Reporting of Gifts and Awards Received by Public Servants
(a) A public servant required to file a
Statement of Financial Interest shall report the source, date, description, and
a reasonable estimate of the fair market value of each gift of more than $100
received by the public servant or his or her spouse or more than $250 received
by his or her dependent children.
(b) A public servant required to file a
Statement of Financial Interest shall report the source, date, description, and
a reasonable estimate of the fair market value of each monetary or other award
of more than $100 received by the public servant in his or her capacity as an
employee of a public school district, the Arkansas School for the Blind, the
Arkansas School for the Deaf, the Arkansas School for Mathematics and Science,
a university, a college, a technical college, a technical institute, a
comprehensive life-long learning center, or a community college in recognition
of his or her contribution to education.
§ 306
Receipt of Compensation by
Public Servants
(a) Except as expressly
provided by statute, no public servant shall receive compensation, other than
income and benefits from the governmental body which he or she serves, for the
performance of the duties and responsibilities of his or her office or
position.
(b) It is the intent of
this rule that a public servant be prohibited from receiving outside
compensation for doing his or her job.
§ 307
Providing Compensation to
Public Servants
(a) No person shall
confer compensation to any public servant, the receipt of which is prohibited
by § 306 of these rules.
(b)
The first violation of this section by any person other than a registered
lobbyist shall result in a written warning. Upon a second and subsequent
violations by persons other than registered lobbyists and upon a first
violation by registered lobbyists, the sanctions provided for in Ark. Code Ann.
§
7-6-218 shall
apply.
§ 308
Gifts to Governmental Entities
(a)
(1) The
Governor, Lieutenant Governor, Secretary of State, Treasurer of State, Auditor
of State, Commissioner of State Lands, and Attorney General, in their official
capacity, may accept gifts, grants, and donations of money or property on
behalf of the state for any lawful public purpose.
(2) The President Pro Tempore of the Senate,
in his or her official capacity, may accept gifts, grants, and donations of
money or property on behalf of the Senate for any lawful public
purpose.
(3) The Speaker of the
House, in his or her official capacity, may accept gifts, grants, and donations
of money or property on behalf of the House of Representatives for any lawful
public purpose.
(4) The Chief
Justice of the Supreme Court, in his or her official capacity, may accept
gifts, grants, and donations of money or property on behalf of the Supreme
Court for any lawful public purpose.
(b)
(1)
Except as provided in subdivision (2) of this subsection, the item received
shall not be of such a personal nature that its use is limited to a specific
person or persons, shall be available to be enjoyed by the public at large, and
shall become property of the governmental entity to which it was
donated.
(2) The designated
officials may accept donations of money for purposes of hosting the:
(A) Official swearing-in and inaugural events
of the constitutional officers, Senate, House of Representatives, and Supreme
Court justices;
(B) Official
recognition event for the President Pro Tempore; and
(C) Official recognition event for the
Speaker of the House.
§ 309
Reporting of Gifts to
Governmental Entities
A public official accepting a gift, grant, or donation of money
on behalf of a governmental entity in accordance with § 308 of these rules
shall, on a quarterly basis, disclose to the Ethics Commission:
(i) The gift, grant, or donation of money or
property received;
(ii) The person
donating the gift, grant, or donation of money or property; and
(iii) The estimated value of the gift, grant,
or donation of money or property.
§ 310
Valuation of Gifts
(a) Except as otherwise provided below, the
value of a gift for purposes of these rules shall be its fair market value at
the time the gift was conferred. Fair market value means the price the good or
service would bring between a willing seller and a willing buyer in the open
market after negotiations. In determining fair market value, the actual price
paid for the gift will be given strong consideration. It is recognized,
however, that in many instances, e.g., the giving of handmade items, no
purchase price will have been paid.
(b) When multiple items, each individually
worth less than $100 but in the aggregate worth more than $100, are
simultaneously offered by a donor to a public servant, the gift being offered
is deemed to be the aggregate of all the items. Food and beverages offered to a
public servant's spouse do not count toward the $100 aggregate.
(EXAMPLE: If a public servant is given eight (8) tickets worth
$20/each, the value of the gift to the public servant would be $160.)
(c) The value of an item shall be
considered to be less than $100 if the public servant reimburses the person
from whom the item was received any amount over $100 and the reimbursement
occurs within ten (10) days from the date the item was received.
(d) Tickets to sporting events and shows are
valued at their face price except for tickets that the donor obtains pursuant
to a lease (such as tickets for an "executive suite" or a "skybox"). The value
of a ticket obtained pursuant to a lease shall be the price of the highest
individually priced ticket for the event. The fair market value of benefits
accepted by the public servant from the donor in connection with the event,
including food and beverages, must be added to the value of a ticket to
determine the overall value of the gift.
(EXAMPLE: If a public servant is given two (2) skybox tickets to
an event, and takes a guest, the value of the gift to the public servant is
twice the price of the highest individually priced ticket for the event plus
the value of any food or beverages consumed by the public servant, but not his
or her guest.)
(e)
Transportation on a private aircraft shall be valued by dividing the total cost
of the aircraft trip by the number of passengers (excluding crew). The total
cost of the aircraft trip includes the expenses for the crew on board the plane
(and for the crew to stay overnight, if applicable), the cost of fuel to
operate the aircraft, repairs to the aircraft, depreciation, landing fees, and
any applicable catering. Normally, these costs are expressed in terms of a per
hour operational expense. In other words, what it actually costs to operate the
particular aircraft on an hourly basis.
(EXAMPLE: A corporation owns a jet which it has determined costs
$900/hour to operate, given historical expenses for crew, fuel, repairs,
depreciation, fees and catering. The corporation takes six (6) passengers
(excluding crew) on a trip with actual flight time of four (4) hours. The total
cost of the aircraft trip is computed by multiplying $900/hour times four (4)
hours. This computation ($3,600) is then divided by the number of passengers
(6) which yields a value of $600/per passenger.)
(f) For purposes of these rules, the value of
a ticket to a charitable event shall not include the tax deductible portion of
the ticket.