Current through Register Vol. 49, No. 9, September, 2024
§
500
Definitions.
(a)
Approved political
action committee - As used in these rules, the term
"approved political action committee" means any person who:
(i) Receives contributions from one (1) or
more persons in order to make contributions to candidates, campaign committees,
ballot question committees, legislative question committees, political parties,
county political party committees, or other political action
committees;
(ii) Does not accept
any contribution or cumulative contributions in excess of five thousand dollars
($5,000) from any person in any calendar year; and
(iii) Registers pursuant to Ark. Code Ann.
§
7-6-215
prior to making contributions.
An approved political action committee shall not include an
organized political party as defined in Ark. Code Ann. §
7-1-101, a county
political party committee, the candidate's own campaign committee, an
exploratory committee, a ballot question committee, or a legislative question
committee.
(b)
Carryover funds - As used in these rules,
the term "carryover funds" means the amount of campaign funds retained from the
last election by the candidate for future use but not to exceed the annual
salary, excluding expense allowances, set by Arkansas law for the office
sought. "Carryover funds" does not include campaign signs, campaign literature,
and other printed campaign materials that were (i) purchased by the campaign;
(ii) reported on the appropriate contribution and expenditure report for the
campaign at the time of purchase; and (iii) retained for use in a future
campaign by the same candidate.
(c)
Contribution - As used in these rules,
the term "contribution" means, whether direct or indirect, advances, deposits,
or transfers of funds, contracts, or obligations, whether or not legally
enforceable, payments, gifts, subscriptions, assessments, payment for services,
dues, advancements, forbearance, loans, or pledges or promises of money or
anything of value, whether or not legally enforceable, to a candidate,
committee, or holder of elective office, made for the purpose of influencing
the nomination or election of any candidate or in support of or opposition to a
ballot or legislative question. "Contribution" shall include membership dues
paid to a committee but not filing fees paid to a committee by candidates.
"Contribution" includes the purchase of tickets for events such
as dinners, luncheons, rallies, and similar fundraising events; the granting of
discounts or rebates by television and radio stations and newspapers not
extended on an equal basis to all candidates for the same office; and any
payments for the services of any person serving as an agent of a candidate or
committee by a person other than the candidate or committee or persons whose
expenditures the candidates or committee must report under subchapter 2 of
chapter 6, Title 7 of the Arkansas Code. The term "contribution" further
includes any transfer of anything of value received by a committee from another
committee.
"Contribution" shall not include noncompensated, nonreimbursed,
volunteer personal services or travel.
"Contribution and expenditure" shall not include activity
sponsored and funded by a political party that meets the definition of
"political party" under Ark. Code Ann. §
7-1-101 or the
requirements of Ark. Code Ann. §
7-7-205
to promote its candidates or nominees through events such as dinners,
luncheons, rallies, or similar gatherings and shall not include nonpartisan
activity designed to encourage individuals to register to vote or to vote or
any communication by any membership organization to its members or stockholders
if the membership organization or corporation is not organized primarily for
the purpose of influencing the nomination for election or election of any
candidate.
(d)
County political party committee - As
used in these rules, the term "county political party committee" means a person
that:
(i) Is organized at the county level
for the purpose of supporting its affiliate party and making contributions;
(ii) Is recognized by an organized
political party, as defined in Ark. Code Ann. §
7-1-101, as being
affiliated with that political party;
(iii) Receives contributions from one (1) or
more persons in order to make contributions to candidates, campaign committees,
ballot question committees, legislative question committees, political parties,
political action committees, or other county political party committees;
(iv) Does not accept any
contribution or cumulative contributions in excess of five thousand dollars
($5,000) from any person in any calendar year; and
(v) Registers pursuant to Ark. Code Ann.
§
7-6-226
prior to making contributions.
(e)
Legislative caucus
committee - As used in these rules, the term "legislative
caucus committee" means a person that:
(i) Is
composed exclusively of members of the General Assembly;
(ii) Elects or appoints officers and
recognizes identified legislators as members of the organization; and
(iii) Exists for research and
other support of policy development and interests that the membership hold in
common.
A "legislative caucus committee" includes, but is not limited to,
a political party caucus of the General Assembly, the Senate, or the House of
Representatives. An organization whose only nonlegislator member is the
Lieutenant Governor or the Governor is a "legislative caucus committee" for
purposes of these rules.
(f)
Person - As used in these rules, the term
"person" means any individual, proprietorship, firm, partnership, joint
venture, syndicate, labor union, business trust, company, corporation,
association, committee, or any other organization or group of persons acting in
concert. It shall also include a political party that meets the definition of
"political party" under Ark. Code Ann. §
7-1-101 or the
requirements of Ark. Code Ann. §
7-7-205,
county political party committees, and legislative caucus committees.
(g)
Prohibited political
action committee - As used in these rules, the term
"prohibited political action committee" means any person who receives
contributions from one (1) or more persons in order to make contributions to
candidates, ballot question committees, legislative question committees,
political parties, county political party committees, or other political action
committees, but that does not meet the requirements of an approved political
action committee. A prohibited political action committee shall not include a
political party that meets the definition of "political party" under Ark. Code
Ann. §
7-1-101 or the
requirements of Ark. Code Ann. §
7-7-205,
the candidate's own campaign committee, a county political party committee, an
exploratory committee, or a ballot or legislative question committee.
(h)
Surplus campaign
funds - As used in these rules, the term "surplus campaign
funds" means any balance of campaign funds over expenses incurred as of the day
of the election except for carryover funds and any funds required to repay
loans made by the candidate from his or her personal funds to the campaign or
to repay loans made by financial institutions to the candidate and applied to
the campaign. "Surplus campaign funds" does not include campaign signs,
campaign literature, and other printed campaign materials that were (i)
purchased by the campaign; (ii) reported on the appropriate contribution and
expenditure report for the campaign at the time of the purchase; and (iii)
retained for use in a future campaign by the same candidate.
§ 501
Registration by
Political Action Committees
(a)
(1)
(A) To
qualify as an approved political action committee, the committee is required to
register with the Secretary of State within fifteen (15) days after accepting
contributions during a calendar year that exceed five hundred dollars ($500) in
the aggregate.
(B) Registration
shall be annually renewed by January 15, unless the committee ceased to
exist.
(C) Except as provided in
§ 501(a)(1)(D) of these rules, registration shall be on forms provided by
the Secretary of State, and the contents therein shall be verified by an
affidavit of an officer of the committee.
(D)
(i)
Registration with the Secretary of State under these rules may be filed in
electronic form through the official website of the Secretary of State if
electronic filing is offered by the Secretary of State. An electronic
registration shall be verified by an officer of the committee. The Arkansas
Ethics Commission shall approve a format used by the Secretary of State for
registering as a committee to ensure that all required information is
requested.
(ii) A format used by
the Secretary of State for registering as a committee in electronic form shall
provide that a registration filed in electronic form be rejected by that office
if it omits the name, street address, or telephone number of an individual
designated as the resident agent for the committee.
(iii) The official website of the Secretary
of State shall allow for searches of committee registration information filed
in electronic form.
(2)
(A) The
committee shall designate a resident agent who shall be an individual who
resides in the State of Arkansas.
(B) No contribution shall be accepted from a
committee and no expenditure shall be made by a committee that has not
registered and does not have a resident agent.
(3)
(A) No
approved political action committee shall accept a contribution from a
prohibited political action committee as defined in § 500(g) of these
rules.
(B) It shall be unlawful for
a prohibited political action committee as defined in § 500(g) of these
rules to make a contribution to an approved political action
committee.
(4)
(A) An out-of-state committee, including a
federal committee, shall be required to comply with the registration and
reporting provisions of these rules if the committee contributes more than five
hundred dollars ($500) in a calendar year to candidates, campaign committees,
ballot question committees, legislative question committees, political parties,
county political party committees, or other political action committees within
the State of Arkansas.
(B) Section
501(a)(4)(A) of these rules shall not apply to:
(i) the national committee of any political
party that is registered with the Federal Election Commission;
(ii) any federal candidate committee that is
registered with the Federal Election Commission;
(iii) funds which a subordinate committee of
the national committee of any political party that is registered with the
Federal Election Commission transfers to the federal account of an organized
political party as defined in Ark. Code Ann. §
7-1-101; or
(iv) funds which a political
action committee that is registered with the Federal Election Commission
transfers to the federal account of an organized political party as defined in
Ark. Code Ann. §
7-1-101.
(b) The
registration form of an approved political action committee shall contain the
following information:
(1) The name, address,
and, where available, phone number of the committee and the name, address,
phone number, and place of employment of each of its officers, provided if the
committee's name is an acronym, then both it and the words forming the acronym
shall be disclosed;
(2) The
professional, business, trade, labor, or other interests represented by the
committee, including any individual business, organization, association,
corporation, labor organization, or other group or firm whose interests will be
represented by the committee;
(3)
The full name and street address, city, state, and zip code of each financial
institution the committee uses for purposes of receiving contributions or
making expenditures within the State of Arkansas;
(4) The name, street address, and telephone
number of the individual designated as the resident agent for the committee
and, if the registration form is filed in paper form, a written acceptance of
designation as a resident agent;
(5) A certification by a committee officer,
under penalty of false swearing, that the information provided on the
registration is true and correct; and
(6) A clause submitting the committee to the
jurisdiction of the State of Arkansas for all purposes related to compliance
with the provisions of subchapter 2 of chapter 6, Title 7 of the Arkansas
Code.
(c)
(1) When a committee makes a change to any of
the information required in § 501(b) of these rules, an amendment is
required to be filed within ten (10) days to reflect the change.
(2) A committee failing to file an amendment
shall be subject to a late filing fee of ten dollars ($10.00) for each day the
change is not filed.
§ 502
Reporting by Political
Action Committees
(a)
(1) Within fifteen (15) calendar days after
the end of each calendar quarter, approved political action committees are
required to file a quarterly report with the Secretary of State, including the
following information:
(A) The total amount of
contributions received and the total amount of contributions made during the
filing period and the cumulative amount of those totals;
(B) The current balance of committee
funds;
(C) The name and address of
each person that made a contribution or contributions to the committee that
exceeded five hundred dollars ($500) in the aggregate during the calendar year,
the contributor's place of business, employer, occupation, the date of the
contribution, the amount contributed, and the total contributed for the
year;
(D) The name and address of
each candidate, campaign committee, ballot question committee, legislative
question committee, political party, county political party committee, or other
political action committee, if any, to whom or which the committee made a
contribution or contributions that exceeded fifty dollars ($50.00) in the
aggregate during the filing period, with the amount contributed and the
election for which the contribution was made;
(E) The name and address of each candidate,
campaign committee, ballot question committee, legislative question committee,
political party, county political party committee, or other political action
committee, if any, to whom or which the committee contributed a nonmoney item,
together with a description of the item, the date the item was contributed, and
the value of the item; and
(F) The
total amount of expenditures made for administrative expenses and for each
single expenditure that exceeds one hundred dollars ($100), an itemization
including the amount of the expenditure, the name and address of the person to
which the expenditure was made, and the date the expenditure was
made.
(2) The reports
may be filed in electronic form through the official website of the Secretary
of State if electronic filing is offered by the Secretary of State.
(3) The information required in §
502(a)(1)(C)-(F) of these rules may be provided in the form of schedules
attached to a report filed in paper form.
(4) The reports shall be verified by an
affidavit of an officer of the committee stating that to the best of his or her
knowledge and belief the information so disclosed is a complete, true, and
accurate financial statement of the committee's contributions received and
made.
(5)
(A) A report is timely filed if it is:
(i) delivered by hand or mailed to the
Secretary of State, properly addressed, postage prepaid, and bearing a postmark
indicating that it was received by the post office or common carrier on or
before the date that the report is due if the report is filed in paper form; or
(ii) filed in electronic form
through the official website of the Secretary of State on or before the date
that the report is due if the Secretary of State offers electronic filing of
committee reports.
(B)
The Secretary of State shall accept via facsimile any report if the original is
received by the Secretary of State within ten (10) days of the date of
transmission.
(C) The Secretary of
State may receive reports in a readable electronic format that is acceptable to
the Secretary of State and approved by the Arkansas Ethics
Commission.
(D) If the Secretary of
State offers electronic filing of committee reports:
(i) the Arkansas Ethics Commission shall
approve a format used by the Secretary of State for the filing of committee
reports in electronic form to ensure that all required information is
requested; and
(ii) the official
website of the Secretary of State shall allow for searches of committee report
information filed in electronic form.
(6)
(A) A
committee shall indicate on its quarterly report for the fourth quarter of each
calendar year whether or not it intends to renew its registration for the next
calendar year.
(B)
(i) If a fourth quarter report is filed in
paper form, the form utilized by the Secretary of State for filing shall
require the committee to indicate whether or not it intends to renew its
registration for the next calendar year.
(ii) A committee indicating that it will
renew its registration for the next calendar year shall submit its registration
form for the next calendar year at the same time as the quarterly report for
the fourth quarter.
(iii) The
Secretary of State shall not accept a quarterly report for the fourth quarter
if the committee indicates that it intends to renew its registration for the
next calendar year and the registration form for the next calendar year is not
submitted at the same time as the quarterly report for the fourth
quarter.
(C) If the
Secretary of State offers electronic filing of committee reports, the format
used by the Secretary of State for the filing of committee reports in
electronic format shall require a committee indicating that it intends to renew
its registration for the next calendar year to renew its registration for the
next calendar year before submitting its quarterly report for the fourth
quarter.
§
503
Penalties for Political Action Committees
(a) If the Arkansas Ethics Commission finds
that a person or political action committee has committed a violation of Ark.
Code Ann. §
7-6-215,
then it may impose a fine of not less than fifty dollars ($50.00) and not more
than two thousand dollars ($2,000) and/or issue a public letter of caution,
warning, or reprimand.
(b) In
addition, the Arkansas Ethics Commission may impose a late filing fee not
exceeding ten dollars ($10.00) for each day a required amendment of the
information contained in a registration form remains unfiled by a political
action committee.
§
504
Legislative Caucus Committees
A legislative caucus committee is required to comply with the
registration and reporting provisions of §§ 501-502 of these rules,
including the designation of a resident agent who is an individual who resides
in the State of Arkansas and the establishment of an account in a financial
institution, if the committee contributes more than five hundred dollars ($500)
in a calendar year to candidates, campaign committees, ballot question
committees, legislative question committees, political parties, county
political party committees, or political action committees.
§ 505
Out-of-State Political
Action Committees
An out-of-state political action committee, including a federal
committee, is required to comply with the registration and reporting provisions
of §§ 501-502 and is subject to the jurisdiction of the State of
Arkansas for all purposes related to compliance with the provisions of
subchapter 2 of chapter 6, Title 7 of the Arkansas Code, if the committee
contributes more than five hundred dollars ($500) in a calendar year to
candidates, campaign committees, ballot question committees, legislative
question committees, political parties, county political party committees, or
other political action committees within the State of Arkansas.
Section 505 of these rules shall not apply to:
(i) the national committee of any political
party that is registered with the Federal Election Commission;
(ii) any federal candidate committee that is
registered with the Federal Election Commission;
(iii) funds which a subordinate committee of
the national committee of any political party that is registered with the
Federal Election Commission transfers to the federal account of an organized
political party as defined in Ark. Code Ann. §
7-1-101; or
(iv) funds which a political
action committee that is registered with the Federal Election Commission
transfers to the federal account of an organized political party as defined in
Ark. Code Ann. §
7-1-101.
§ 506
Registration by County Political Party Committees
(a)
(1)
(A) To qualify as a county political party
committee, a committee is required to register with the Secretary of State
within fifteen (15) days after accepting contributions during a calendar year
which, in the aggregate, exceed five thousand dollars ($5,000).
(B) The registration is to be annually
renewed by January 15, unless the committee has ceased to exist.
(C) Registration shall be on forms provided
by the Secretary of State, and the contents of the form shall be verified by an
affidavit of an officer of the committee.
(2)
(A) The
committee is required to appoint a treasurer who is a qualified elector of the
State of Arkansas.
(B) No
contribution shall be accepted from a committee and no expenditure shall be
made by a committee that has not registered and which does not have a
treasurer.
(3)
(A) No county political party committee shall
accept a contribution from a prohibited political action committee as defined
in § 500(f) of these rules.
(B) It shall be unlawful for a prohibited
political action committee as defined in § 500(f) of these rules to make a
contribution to a county political party committee.
(b) The committee is required to
disclose on the registration form the following information:
(1) The name, address, and, when available,
phone number of the committee and the name, address, phone number, and place of
employment of each of its officers, provided if the committee's name is an
acronym, then both the acronym and the words forming the acronym shall be
disclosed;
(2) The political party
with which the county political party committee is affiliated;
(3) The full name and street address, city,
state, and zip code of the financial institution in the State of Arkansas that
the committee designates as its official depository for the purposes of
depositing all money contributions that it receives in this state and making
all expenditures in this state; and
(4) A written acceptance of appointment by
the treasurer.
§
507
Reporting by County Political Party Committees
(a)
(1)
Within fifteen (15) calendar days after the end of each calendar quarter,
county political party committees are required to file a quarterly report with
the Secretary of State, including the following information:
(A) The total amount of contributions
received and the total amount of contributions made during the filing period
and the cumulative amount of these totals;
(B) The current balance of committee
funds;
(C) The name and address of
each person that made a contribution or contributions to the committee that
exceeded five hundred dollars ($500) in the aggregate, the contributor's place
of business, employer, or occupation, the date of the contribution, the amount
contributed, and the total contributed for the year;
(D) The name and address of each candidate,
campaign committee, ballot question committee, legislative question committee,
political party, political action committee, or other county political party
committee, if any, to whom or which the committee made a contribution or
contributions that exceeded fifty dollars ($50.00) in the aggregate during the
filing period, with the amount contributed and the election for which the
contribution was made;
(E) The name
and address of each candidate, campaign committee, ballot question committee,
legislative question committee, political party, political action committee, or
other county political party committee, if any, to whom or which the committee
contributed a nonmoney item, together with a description of the item, the date
the item was contributed, and the value of the item;
(F) The total amount of expenditures made for
administrative expenses and for each single expenditure that exceeds one
hundred dollars ($100) an itemization including the amount of the expenditure,
the name and address of the person to which the expenditure was made, and the
date the expenditure was made; and
(G) Any change in information required by
these rules.
(2) The
reports shall be verified by an affidavit of an officer of the committee
stating that to the best of his or her knowledge and belief the information
disclosed is a complete, true, and accurate financial statement of the
committee's contributions received and made.
(3)
(A) A
report is timely filed if it is either hand delivered or mailed to the
Secretary of State, properly addressed, postage prepaid, bearing a postmark
indicating that it was received by the post office or common carrier on the
date that the report is due.
(B)
The Secretary of State shall accept via facsimile any report if the original is
received by the Secretary of State within ten (10) days of the date of
transmission.
(C) The Secretary of
State may receive reports in a readable electronic format acceptable to the
Secretary of State and approved by the Arkansas Ethics Commission.
§ 508
Penalties for County Political Party Committees
If the Arkansas Ethics Commission finds that a person or county
political party committee has committed a violation of Ark. Code Ann. §
7-6-226,
then it may impose a fine of not less than fifty dollars ($50.00) and not more
than two thousand dollars ($2,000) and/or issue a public letter of caution,
warning, or reprimand.
§
509
Records Retention by PACs and County Political Party
Committees
Each committee is required to maintain for a period of four (4)
years records evidencing the name, address, and place of employment of each
person who contributed to the committee, along with the amount contributed.
Furthermore, each committee shall maintain for a period of four (4) years
records evidencing the name and address of each candidate, campaign committee,
ballot question committee, legislative question committee, political party,
county political party committee, or political action committee who or which
received a contribution from the committee, along with the amount
contributed.
§ 510
Contribution Limits
(a) No
political action committee or county political party committee shall accept any
contribution or cumulative contributions in excess of five thousand dollars
($5,000) from any person in any calendar year.
(b) For purposes of making contributions to
candidates, each political action committee and county political party
committee may contribute up to the maximum amount to a candidate's campaign for
each election, whether the candidate is opposed or unopposed. Pursuant to Ark.
Code Ann. §
7-6-203,
the contribution limit for each election cycle shall be adjusted at the
beginning of each odd-numbered year in an amount equal to the percentage
certified to the Federal Election Commission by the Bureau of Labor Statistics
of the Department of Labor under
52 U.S.C. §
30116(c) as existing on
January 1, 2015. In accordance with the Arkansas Ethics Commission's Rules on
Campaign Finance & Disclosure, the Arkansas Ethics Commission shall
announce the contribution limit in effect for each election
cycle.
§ 511
Administrative Expenses of PACs and County Political Party
Committees
It is permissible for a PAC or a county political party committee
to pay reasonable administrative expenses out of the contributions it has
received.
§ 512
Receipt of Surplus Campaign Funds or Carryover Funds by Political Party
Caucus
Surplus campaign funds or carryover funds given to a political
party caucus shall be segregated in an account separated from other caucus
funds and shall not be used by the political party caucus to make a campaign
contribution or to provide any personal income to any candidate who donated
surplus campaign funds or carryover funds.
§ 513
Amendment of Reports -
Affirmative Defense of Unintentional Error
(a) It is an affirmative defense to
prosecution or disciplinary action if a person required to file a report under
these rules amends the report within thirty (30) days of discovering or
learning of an unintentional error in the report.
(b) The Arkansas Ethics Commission shall not
proceed with an investigation of an alleged error in a report filed under these
rules if the Arkansas Ethics Commission determines that a person would be
eligible to raise the aforementioned affirmative defense. If the Arkansas
Ethics Commission does not proceed with an investigation of an alleged error,
the person shall not be considered to have committed a violation of the
applicable statute.
(c) This
section shall not be construed to remove the duty to file a report under these
rules or authorize a person to knowingly fail to file a report under these
rules.
