Arkansas Administrative Code
Agency 153 - Arkansas Ethics Commission
Rule 153.00.17-009 - Rules of Practice and Procedure 2017
Current through Register Vol. 49, No. 9, September, 2024
I. DESCRIPTION
The Arkansas Ethics Commission ("Commission") is composed of five appointed Commissioners who enforce certain ethics, conflicts of interest, lobbying, campaign, campaign finance, and ballot question laws within the State of Arkansas. In accordance with these rules of practice and procedure, the Commission issues advisory opinions and legal interpretations of law. and acts as fact-finder and sanctioning body with respect to allegations of violations of laws under its jurisdiction. Information may be obtained from the Commission by written request. The Commission staff, which may consist of a director, staff attorney(s), directors) of compliance and others, acts as the administrator and operating entity of the Commission. This staff, or members thereof, may make office administrative procedure, act as spokesman for the Commission, receive correspondence and correspond on behalf of the Commission, provide legal and other research to the Commission, investigate allegations of violations of laws under the Commission's jurisdiction, and perform such other functions as the Commission deems appropriate. These rules of practice and procedure shall govern all proceedings before the Commission and shall be applicable to any complaints filed or initiated after the effective date hereof. In accordance with Ark. Code Ann. § 25-15-204(d), any person may petition the Commission for the issuance, amendment, or repeal of any rule.
II. COMMISSION & STAFF
- one member by the Governor of the State of Arkansas
- one member by the Lieutenant Governor of the State of Arkansas
- one member by the Attorney General of the State of Arkansas
- one member by the Speaker of the Arkansas House of Representatives
- one member by the President Pro Tempore of the Arkansas Senate
- one member of a minority race
- one woman
- one member of a minority political party
III. GENERAL ADMINISTRATION
IV. MATTERS BEFORE THE COMMISSION
V. FILING OF COMPLAINT
VI. INVESTIGATION PROCEDURE
VII. PUBLIC HEARING
VIII. RENDERING OF DECISION
IX. DEFINITIONS OF PUBLIC LETTERS
X. JUDICIAL REVIEW
XI. FORMS AND INSTRUCTIONS
The Commission has prepared or utilizes the following forms and instructions: Ballot Question Financial Report of Individual or Elected Official, Ballot Question Committee Financial Report, Ballot Question Committee (BQC) Statement of Organization, Ballot Question Committee (BQC) Notice of Dissolution, Campaign Contribution and Expenditure Report for County, Municipal and School Board Candidates (form and instructions), Campaign Contribution and Expenditure Report for State and District Candidates (form and instructions), Final Campaign Contribution and Expenditure Report for State and District Candidates (form and instructions), Campaign Contribution and Expenditure Report for Debt Retirement, Carryover Fund Reporting Form (and instructions), Citizen Complaint Form, County Political Party Committee Registration Form, County Political Party Committee Quarterly Reporting Form, County Political Party Committee Notice of Termination, Disclosure by Legislator Pursuant to Ark. Code Ann. § 21-8-803, Disclosure by Member (or Member-Elect) of the Arkansas General Assembly Pursuant to Ark. Code Ann. § 21-8-901, Disclosure by Board Member Pursuant to Ark. Code Ann. § 19-11-718, Exploratory Committee Registration Form. Exploratory Committee Contribution and Expenditure Report, Independent Expenditure Committee Registration, Independent Expenditure Report for Committees, Individuals, and Other Entities, Legislative Question Financial Report of Individual or Elected Official, Legislative Question Committee Financial Report, Legislative Question Committee (LQC) Statement of Organization, Legislative Question Committee (LQC) Notice of Dissolution. Lobbyist Activity Report, Lobbyist Registration Form, Lobbyist Notice of Termination, Local-Option Ballot Question Financial Report of Individual or Elected Official, Local-Option Ballot Question Committee Financial Report, Local-Option Ballot Question Committee (L-OBQC) Statement of Organization, Local-Option Ballot Question Committee (L-OBQC) Notice of Dissolution, Political Action Committee (PAC) Registration Form, Political Action Committee (PAC) Quarterly Reporting Form, Political Action Committee Notice of Termination, Political Party Quarterly Reporting Form, Quarterly Disclosure Form (certain designated officials), and Statement of Financial Interest (form and instructions). Copies of same are set forth in the appendix hereto. Moreover, the Commission has participated in the publication of the following documents) prepared by the State Board of Election Commissioners: Running for Office, A "Plain English" Handbook for Candidates.
APPENDIX - Forms Listing
NOTE: Expenditures Reflected on Lines 25, 26, and 27 Should Be Totaled by Category in Section 20
INSTRUCTIONS FOR COMPLETING THE CAMPAIGN CONTRIBUTION AND EXPENDITURE REPORT
COUNTY, MUNICIPAL AND SCHOOL BOARD CANDIDATES
NOTE: County, Municipal and School Board candidates are required to file a copy of this report with the County Clerk of the county in which the election is held.
LINE 4 - This line, along with lines 5-10, contains SUMMARY information regarding campaign finance activity during the reporting period and cumulatively for the election. Line 4 reflects the balance of campaign funds as of the beginning of the reporting period which should be the same as the ending balance on your last report (found on line 9 of your last report). Your report will normally reflect a positive balance indicating the amount of funds on hand. However, a report may reflect a debt if prior expenditures have exceeded the amount of contributions received.
LINE 5 - This line reflects the amount of interest earned by your campaign account. Interest earned is not treated as a contribution for reporting purposes, but is considered in calculating the balance of campaign funds at the close of the reporting period. In the first column ("For Reporting Period") you list the amount of interest earned since the last reporting period. In the second column ("Cumulative Total"), you list the cumulative total of all interest earned by your campaign account for the election thus far.
LINE 6 - This line reflects the total amount of loans made by you from your own personal funds to your campaign, or personal loans made by financial institutions to you and applied to your campaign, hi the first column ("For Reporting Period") you list the amount of loans which you received during the reporting period. This figure can be found on line 13 and should be entered on line 6. In the second column ("Cumulative Total") you should enter the total amount of all loans to your campaign to date, which should be calculated by adding the figure reported in the first column of this report to the figure reported in the second column of the last report.
LINE 7 - This line reflects the total amount of monetary contributions for your campaign. In the first column ("For Reporting Period") you list the amount of contributions, itemized and nonitemized, you received during this reporting period.1 This figure can be found on line 19 and should be entered on line 7. In the second column ("Cumulative Total") you should enter the total amount of all contributions to your campaign to date, which should be calculated by adding the figure reported in the first column of this report to the figure reported in the second column of the last report. Non-money or "in-kind" contributions, as reflected on line 15, are not included in the figure for line 7.
LINE 8 - This line reflects the total amount of expenditures made by your campaign. In the first column ("For Reporting Period") you list the amount of expenditures, itemized and nonitemized, you made during this reporting period. This figure can be found on line 28 and should be entered on line 8. In the second column ("Cumulative Total") you should list the total amount of all expenditures to your campaign to date, which should be calculated by adding the figure reported in the first column of this report to the figure reported in the second column in the last report.
LINE 9 - This line should reflect the balance of your campaign funds or "cash on hand" at the close of the reporting period. This figure is calculated by adding the amounts on lines 4, 5, 6 and 7 and subtracting from that total the figure listed on line 8.
LINE 10 - When filing a final report for a particular election, the candidate should indicate either the balance of funds remaining after the payment of all debts or the amount of all debts (including loans) which remain unpaid. Line 10 of a candidate's final report should either reflect "cash on hand" or debts (but not both).
LINE 11 - This line should be checked only if you have not received any contributions, made any expenditures, or otherwise had any campaign financial activity during this particular reporting period. If this is true, you should check this box, and complete only the items on page 1 of the Contribution and Expenditure Report. When filing a "no activity" report, the candidate should only sign and file the front page of the report.
If a candidate desires to use or raise campaign funds to repay himself for personal funds which he contributed to the campaign, then he would need to report those personal funds as a loan in Section 12.
If a candidate does not desire to use or raise campaign funds to repay himself for personal funds which he contributed to the campaign, then those personal funds would not be reported in Section 12. Instead, they would be reported as a campaign contribution either in Section 16 or on line 18, depending upon the amount.
If a candidate has unpaid loans at the end of a primary, runoff, special, or general election, the source, description and amount of each such loan should be itemized in Section 29. Candidates ending their campaign in debt are permitted to raise funds to retire the debt subject to the restrictions contained in Ark. Code Ann. § 7-6-219.
LINE 13 - This line reflects the total amount of loans you received during this reporting period
LINE 15 - This line reflects the total amount of non-money or "in-kind" contributions listed in Section 14.
LINE 17 - This line should reflect the total of the itemized contributions listed in Section 16.
LINE 18 - Disclose the total amount of monetary contributions of $50 or less received during this reporting period. A monetary contribution of $50 or less from any contributor need not be itemized, but is considered a contribution for the particular contributor and is credited against the maximum amount the contributor may contribute to the campaign. Once a contributor exceeds the $50 threshold for a particular election, all subsequent contributions must be itemized.
LINE 19 - This line reflects the totals from lines 17 (itemized contributions) and 18 (nonitemized contributions). While a non-money contribution is considered as a contribution from the contributor and applies toward that contributor's maximum limit, non-money contributions are not included in the amount entered on this line. Line 19 reflects the total amount of monetary contributions and is used in computing the balance of campaign funds at the close of the reporting period. This figure should also be entered on line 7 on the front page of the report.
LINE 21 - This line should reflect the total of the expenditures as categorized in Section 20. The total should reflect the combination of the figures on lines 25, 26 and 27 and should be the same as the figure on line 28.
LINE 23 - This line should reflect the total amount paid during the reporting period for all campaign workers. This figure should also be entered on line 27.
LINE 25 - This line should reflect the total of the itemized expenditures listed in Section 24.
LINE 26 - Disclose the total amount of expenditures of $ 100 or less made during this reporting period. An expenditure of $100 or less need not be itemized, but must be included in the total amount of expenditures made during the reporting period.
LINE 27 - This line should reflect the total amount paid during the reporting period for all campaign workers. This figure should be the same as the one entered on line 23.
LINE 28 - This line reflects the totals from lines 25 (itemized expenditures), 26 (nonitemized expenditures) and 27 (paid campaign workers). This figure should also be the same as the one entered on line 8 on the front page of the report and on line 21.
LINE 30 - This line reflects the total of all debt reflected in Section 29. This figure should also be the same as the one entered on line 9 of the front page of the report.
Note: All Expenditures Reflected on Lines 24, 25, and 26 Should Be Totaled by Category In Section 19
INSTRUCTIONS FOR COMPLETING THE CAMPAIGN CONTRIBUTION AND EXPENDITURE REPORT
ONLY FOR CANDIDATES FOR STATE AND DISTRICT OFFICE (INCLUDING DISTRICT JUDGE)
NOTE: Candidates for State and District office (including District Judge) are required to file this report with the Secretary of State.
LINE 4 - This line, along with lines 5-10, contains SUMMARY information regarding campaign finance activity during the reporting period and cumulatively for the election. Line 4 reflects the balance of campaign funds as of the beginning of the reporting period which should be the same as the ending balance on your last report (found on line 9 of your last report). Your report will normally reflect a positive balance indicating the amount of funds on hand. However, a report may reflect a debt if the prior expenditures have exceeded the amount of contributions received.
LINE 5 - This line reflects the amount of interest earned by your campaign account. Interest earned is not treated as a contribution for reporting purposes, but is considered in calculating the balance of campaign funds at the close of the reporting period. In the first column ('Tor Reporting Period") you list the amount of interest earned since the last reporting period. In the second column ("Cumulative Total"), you list the cumulative total of all interest earned by your campaign account for the election thus far.
LINE 6 - This line reflects the amount of loans made by you from your own personal funds to your campaign, or personal loans made by financial institutions to you and applied to your campaign. In the first column ("For Reporting Period") you list the amount of loans which you received during the reporting period. This figure can be found on line 12 and should be entered on line 6. In the second column ("Cumulative Total") you should enter the total amount of all loans to your campaign to date, which should be calculated by adding the figure reported in the first column of this report to die figure reported in the second column of the last report.
LINE 7 - This line reflects the total amount of monetary contributions to your campaign. la the first column ("For Reporting Period") you list the amount of contributions, itemized and nonitemized, which you received during this reporting period. This figure can be found on line 18 and should be entered on line 71 In the second column ("Cumulative Total") you should enter the total amount of all contributions to your campaign to date, which should be calculated by adding the figure reported in the first column of this report to the figure reported in the second column of the last report Non-money or "in-kind" contributions, as reflected on line 14, are not included in the figure for line 7.
LINE 8 - This line reflects the total amount of expenditures made by your campaign. In the first column ("For Reporting Period") you list the amount of expenditures, itemized and nonitemized, you made during this reporting period. This figure can be found on line 27 and should be entered on line 8. In the second column ("Cumulative Total") you should list the total amount of all expenditures made by your campaign to date, which should be calculated by adding the figure reported in the first column of this report to the figure reported in the second column in the last report.
LINE 9 - This line should reflect the balance of your campaign funds or "cash on hand" at the close of the reporting period. This figure is calculated by adding the amounts on lines 4, 5, 6, and 7 and subtracting from that total the figure entered on line 8.
LINE 10 - This line should be checked only if you have not received any contributions or loans, made any expenditures, or otherwise had any campaign financial activity during this particular reporting period. If this is true, you should check this box, and complete only the items on page 1 of the Contribution and Expenditure Report. When filing a "no activity" report, the candidate should only sign and file the front page of the report.
If a candidate desires to use or raise campaign funds to repay himself for personal funds which he contributed to the campaign, then he would need to report those personal funds as a loan in this section (Section 11).
If a candidate does not desire to use or raise campaign funds to repay himself for personal funds which he contributed to the campaign, then those personal funds would not be reported in Section 11. Instead, they would be reported as a campaign contribution either in Section 15 or on line 17, depending upon the amount.
LINE 12 - This line reflects the total amount of loans you received during this reporting period.
LINE 14 - This line reflects the total amount of non-money or "in-kind" contributions listed in Section 13.
LINE 16 - This line should reflect the total of the itemized contributions listed in Section 15.
LINE 17 - Disclose me total amount of monetary contributions of $50 or less received during this reporting period. A monetary contribution of $50 or less from any contributor need not be itemized, but is considered a contribution for the particular contributor and is credited against the maximum amount the contributor may contribute to the campaign. Once a contributor exceeds the $50 threshold, for a particular election, all subsequent contributions must be itemized.
LINE 18 - This line represents the totals from lines 16 (itemized monetary contributions) and 17 (nonitemized monetary contributions). While a non-money contribution is considered as a contribution from the contributor and applies toward that contributor's maximum limit, non-money contributions need not be included in this line. Line 18 reflects the total amount of monetary contributions and is used in computing the balance of campaign funds at the close of the reporting period. This figure should also be entered on line 7 on the front page of the report.
LINE 20 - This line should reflect the total of the expenditures categorized in Section 19. The total should reflect the sum of the amounts entered on lines 24,25 and 26 and should be the same as the amount entered on line 27.
LINE 22 - This line should reflect the total amount paid during the reporting period tor all campaign workers. This figure should also be entered on line 26.
LINE 24 - This line should reflect the total of the itemized expenditures listed, in Section 23.
LINE 25 - Disclose the total amount of expenditures of $100 or less made during this reporting period. An expenditure of $100 or less need not be itemized, but must be included in the total amount of expenditures made during the reporting period.
LINE 26 - This line reflects the total amount paid during the reporting period for all campaign workers. This figure should be the same as the one entered on line 22.
LINE 27 - This line reflects the sum of the amounts entered on lines 24 (itemized expenditures), 25 (nonitemized expenditures) and 26 (paid campaign workers). This figure should be the same as the one entered on line 8 on the front page of the report and on tine 20.
NOTE: Expenditures Reflected on Lines 24, 25 and 26 Should Be Totaled by Category in Section 19
INSTRUCTIONS FOR COMPLETING THE FINAL CAMPAIGN CONTRIBUTION AND EXPENDITURE REPORT
ONLY FOR CANDIDATES FOR STATE AND DISTRICT OFFICE (INCLUDING DISTRICT JUDGE)
NOTE: Candidates for State and District office (including District Judge) are required to file this report with the Secretary of State.
This section discloses the method used to dispose surplus campaign funds. "Surplus campaign funds" are defined as the 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 his or her campaign.
"Carryover funds" refers to the amount of campaign funds retained from the last election by the candidate for future use but not to exceed the annual salary for the office sought. The amount of carryover funds retained, if any, are to be reflected on line 9 of this report.
"Surplus campaign funds" and "carryover funds" do not include campaign signs, campaign literature, and other printed materials that were:
The law requires candidates to dispose of surplus campaign funds within thirty (30) days following the end of the month in which the election is held and to disclose how the surplus campaign funds were disbursed. The funds may be disbursed in any one or more of the five (5) methods listed on this report. The candidate should check each box which is applicable. Pursuant to Rule 4.4(c) of the Code of Judicial Conduct, a judicial candidate's campaign committee may only dispose of surplus funds by returning them to contributors or turning them over to the State Treasurer as provided by law.
LINE 4 - This line, along with lines 5-10, contains SUMMARY information regarding campaign finance activity during the reporting period and cumulatively for the election. Line 4 reflects the balance of campaign funds as of the beginning of the reporting period which should be the same as the ending balance on your last report (found on line 9 of your last report). Your report will normally reflect a positive balance indicating the amount of funds on hand. However, a report may reflect a debt if the prior expenditures have exceeded the amount of contributions received.
LINE 5 - This line reflects the amount of interest earned by your campaign account Interest earned is not treated as a contribution for reporting purposes, but is considered in calculating the balance of campaign funds at the close of the reporting period. In the first column ("For Reporting Period") you list the amount of interest earned since the last reporting period. In the second column ("Cumulative Total"), you list the cumulative total of all interest earned by your campaign account for the election thus far.
LINE 6 - This line reflects the total amount of loans made by you from your own personal funds to your campaign, or personal loans made by financial institutions to you and applied to your campaign. In the first column ("For Reporting Period") you list the amount of loans which you received during the reporting period. This figure can be found on line 12 and should be entered on line 6, In the second column ("Cumulative Total") you should enter the total amount of all loans to your campaign to date, which should be calculated by adding the figure reported in the first column of this report to the figure reported in the second column of the last report.
LINE 7 - This line reflects the total amount of monetary contributions to your campaign. In the first column ('Tor Reporting Period") you list the amount of contributions, itemized and nonitemized, which you received during this reporting period. This figure can be found on line 18 of the final report and should be entered on line 7. In the second column ("Cumulative Total") you should enter the total amount of all contributions to your campaign to date, which should be calculated by adding the figure reported in the first column of this report to the figure reported in the second column of the last report. Non-money or "in-kind" contributions, as reflected on line 14, are not included in the figure for line 7.
LINES 8 - This line reflects the total amount of expenditures made by your campaign. In the first column ('Tor Reporting Period") you list the amount of expenditures, itemized and nonitemized, you made during this reporting period. This figure can be found on line 27 and should be entered on line 8. In the second column ("Cumulative Total") you should list the total amount of all expenditures made by your campaign to date, which should be calculated by adding the figure reported in the first column of this report to the figure reported in the second column in the last report.
LINE 9 - This line reflects the status of the campaign account after all contributions and expenditures, including the disbursement of any surplus funds. If a candidate has carryover funds remaining in his or her campaign account1 for use as officeholder expenses or for future campaign purposes, the amount of the carryover funds should be indicated in the second column on line 9. If, instead of a surplus, the campaign has ended with a debt, the candidate must enter the amount of the debt in the second column on line 9. The amount noted as debt should be in brackets, i.e. "[$1,200]". The amount of debt entered on line 9 should be the same amount reflected on line 29 and the outstanding items which make up this debt figure should be listed in Section 28.
LINE 10 - This line should be checked only if you have not received any contributions, made any expenditures, or otherwise had any campaign financial activity during this particular reporting period. If this is true, you should check this box, and complete only the items on page 1 of the Contribution and Expenditure Report. When filing a "no activity" report, the candidate should only sign and file the front page of the report.
If a candidate desires to use or raise campaign funds to repay himself for personal funds which he contributed to the campaign, then he would need to report those personal funds as a loan in this section (Section 11).
If a candidate does not desire to use or raise campaign funds to repay himself for personal funds which he contributed to the campaign, then those personal funds would not be reported in Section 11. Instead, they would be reported as a campaign contribution either in Section 15 or on line 17, depending on the amount.
If a candidate has unpaid loans at the time of the primary, runoff, special or general election, the source, description and amount of each such loan should be itemized in Section 28. A candidate ending his or her campaign in debt is permitted to raise funds to retire the debt subject to the restrictions contained in Ark. Code Ann. § 7-6-219.
LINE 12 - This line reflects the total amount of loans you received during this reporting period.
LINE 14 - This line reflects the total amount of non-money or "in-kind" contributions listed in Section 13.
LINE 16 - This line should reflect the total of the itemized contributions listed in Section 15.
LINE 17 - Disclose the total amount of monetary contributions of $50 or less received during this reporting period. A monetary contribution of $50 or less from any contributor need not be itemized, but is considered a contribution for the particular contributor and is credited against the maximum amount the contributor may contribute to the campaign. Once a contributor exceeds the $50 threshold for a particular election, all subsequent contributions must be itemized.
LINE 18 - This line reflects the totals from lines 16 (itemized monetary contributions) and 17 (nonitemized monetary contributions). While a non-money contribution is considered as a contribution from the contributor and applies toward that contributor's maximum limit, non-money contributions are not entered on this line. Line 18 reflects the total amount of monetary contributions and is used in computing the balance of the amount of carryover funds or debt at the close of the reporting period. This figure should also be entered on line 7 on the front page of the report.
LINE 20 - This line should reflect the total of the expenditures categorized in Section 19. The total should reflect the sum of the amounts entered on lines 24,25 and 26 and should be the same as the amount entered on line 27.
LINE 22 - This line should reflect the total amount paid during the reporting period for all campaign workers. This figure should also be entered on line 26.
LINE 24 - This line should reflect the total of the itemized expenditures listed in Section 23.
LINE 25 - Disclose the total amount of expenditures of $100 or less made during this reporting period. An expenditure of $100 or less need not be itemized, but must be included in the total amount of expenditures made during the reporting period.
LINE 26- This line reflects the total amount paid during the reporting period for all campaign workers. This figure should be the same as the one entered on line 22.
LINE 27 - This line reflects the sum of the amounts entered on lines 24 (itemized expenditures), 25 (nonitemized expenditures) and 26 (paid campaign workers). This figure should be the same as the one entered on line 8 on the front page of the report and on line 20.
LINE 29 - This line reflects the total amount of all debts listed in Section 28. This figure should also be the same as the one entered on line 9 on the front page of the report.
Note: If faxed, notary seal must be legible (i.e., either stamped or raised and inked) and the original must follow within ten (10) days.
Note: If faxed, notary seal must be legible (i. e., either stamped or raised and inked) and the original must follow within ten (10) days.
INSTRUCTIONS FOR COMPLETING THE CARRYOVER FUND REPORTING FORM
Line 3 - This line, along with lines 4-6, contains SUMMARY information concerning the person's carryover funds during the reporting period and cumulatively for the year. Line 3 reflects the balance of carryover funds as of the beginning of the reporting period which should be the same as the ending balance of the previous report (found on line 6 of the last report).
Line 4 - This line reflects the amount of interest, if any, earned by the carryover fund account. In the first column ("For Reporting Period"), list the amount of interest earned since the last report. In the second column ("Year to Date"), list the cumulative total of all interest earned during the calendar year.
Line 5 - This line reflects the total amount of carryover funds which have been expended. In the first column ("For Reporting Period"), list the amount of expenditures, itemized and nonitemized, made since the last report. This figure can be found on line 10 and should be entered on line 5. In the second column ("Year to Date"), list the total amount of all expenditures made during the calendar year, which should be calculated by adding the figure reported in the first column to the figure reported in the second column of the last report.
Line 6 - This line should reflect the balance of carryover funds at the close of the reporting period. This figure can be calculated by adding the amounts on lines 3 and 4 and subtracting from that total the figure entered on line 5.
Line 8 - This line should reflect the total of the itemized expenditures listed in section 7.
Line 9 - Disclose the total amount of expenditures of $100 or less made since the last report. An expenditure of $100 or less need not be itemized, but must be included in the total amount of expenditures made since the last report.
Line 10 - This line reflects the sum of the amounts entered on lines 8 ("Itemized Expenditures") and 9 ("Nonitemized Expenditures"). This figure should be the same as the one entered on line 5 on the front page of the report.
FREQUENTLY ASKED QUESTIONS
Question No. 1: What are carryover funds?
* A person who was a candidate and has campaign funds remaining from an election that has ended may retain as "carryover funds" an amount not exceeding the annual salary, excluding expense allowances, set by Arkansas law for the office sought. "Carryover funds" do not include campaign signs, campaign literature, and other printed materials that were:
* The use of carryover funds is only available for those candidates or officeholders who ended their campaigns with funds remaining. Candidates or officeholders who end their campaigns either with no carryover or in debt may not use or raise campaign funds for travel associated with attending conferences or seminars on general political issues.2
Question No. 2: Where are carryover funds kept?
* If carryover funds are retained, a candidate must establish an office account, separate from any personal or other account. Any carryover funds transferred to this account shall be used only for future campaigns involving the candidate in a non-federal office and/or legitimate expenses in connection with the candidate's public office.3
* Carryover funds may be deposited in an interest-bearing account. At no time, however, may the total amount in the carryover account exceed the annual salary, excluding expense allowances, for the office sought or held.4
Question No. 3: What are the permissible uses for carryover funds?
* Generally, officeholders are free to expend carryover funds on any purpose designed to further their office as long as it is not for personal income or otherwise prohibited by law.5
* Legitimate office expenses include transportation incurred by the officeholder or a member of his or her staff incurred in the operation of the office.6
* Carryover funds may be used to purchase office supplies and/or equipment for use in the office or in future campaigns.7
* Carryover funds may be used to reimburse the officeholder or his or her staff for meals or lodging in connection with the operation of the office or future campaigns.8
* Carryover funds may be used to purchase invitations or notices to political events, as well as to purchase gifts or commemorative items for staff members or their families in times of sickness or death, or family emergency.9
* Carryover funds may be used to offset any reasonable and legitimate office expense which is otherwise not reimbursable from public funding.10
* Officeholders may use carryover funds to purchase advertisements in publications of charitable, civic and educational organizations.11
* Carryover funds may be used to buy items such as ads in school yearbooks as these purchases serve to increase public visibility for the officeholders.12
* Carryover funds may be used to purchase items given as awards in recognition of accomplishments where they are presented by a current officeholder in person. Such items include the purchase of American and State flags flown at the State Capitol and given to schools in subsequent ceremonies.13
* Officeholders may use carryover funds to purchase tickets from charities, civic organizations and political parties for banquets or other similar special social events. The presence of officeholders increases the public visibility of officeholders and, for that reason, officeholders who purchase tickets should make all reasonable efforts to attend the banquet. Officeholders may use carryover funds to purchase a ticket for a spouse but carryover funds should not be used to purchase tickets for State Capitol staff, current staff or former campaign workers.14
* Officeholders may use carryover funds for lease, rental or use charges of any ordinary and necessary office equipment such as copy machines, telephones, postage meters, facsimile machines, computer hardware and software, printers and video equipment for use in the office or in future campaigns.15
* Carryover funds may be used by an officeholder to pay for an inaugural event.16
* Examples of other miscellaneous expenses on which officeholders may lawfully expend carryover funds include, but are not limited to:
* A person with carryover funds may, at any time, dispose of such funds in the same manner as surplus campaign funds.18 In that regard, Ark. Code Ann. § 7-6-203(h)(1) provides that surplus funds may be turned over to either:
Question No. 4: What are the prohibited uses of carryover funds?
* A candidate may not take carryover funds as personal income or as income for his or her spouse or dependent children.19
* Carryover funds may not be used to reimburse campaign workers, staff or spouses of either the candidate or the workers for attendance at conferences or seminars. Officeholders are permitted to use carryover funds to reimburse only themselves for travel associated with attending conferences or seminars on general political issues.20
* Carryover funds may not be used to purchase tickets for State Capitol staff, current staff or former campaign workers to attend banquets or social events held by charities, civic organizations or political parties.21
Question No. 5: How long may carryover funds be retained?
* Carryover 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 carryover funds shall be disposed of in the same manner as for surplus campaign funds.22
* When a person having carryover funds from an election held after July 1, 1997, files as a candidate for public office, his or her carryover funds shall be transferred to the person's active campaign fund. Once transferred, the funds will no longer be treated as carryover funds.23
Question No. 6: What are the record keeping and reporting requirements concerning carryover funds?
* If a candidate ends a campaign with carryover funds, he or she must maintain records of such carryover fund for no less than ten (10) years or until such time as the funds are expended completely or disposed of, whichever occurs first.24
* A person shall file an expenditure report concerning carryover funds if since the last report concerning the carryover funds, the person has expended in excess of five hundred dollars ($500). The report shall be filed at the office in which the candidate was required to file his or her campaign contribution and expenditure reports for the previous campaign not later than fifteen (15) days after a calendar quarter in which a report becomes required. No report is required in any calendar quarter in which the cumulative expenditure limit has not been exceeded since the person's last report.25
* A person who retains carryover funds is required to file an annual report outlining the status of the carryover fund account as of December 31st unless the person has made a quarterly report during the calendar year pursuant to Ark. Code Ann. § 7-6-203(h)(4)(C)(i) and (ii). The annual report for a particular year shall be due by January 31st of the following year. A person who retains carryover funds from a general election held in November or a runoff election held in November is not required to file an annual report for the year of the general election or runoff election from which carryover funds were retained.26 The carryover fund reports of a person who ran for school district, township, municipal, or county office must be filed with the county clerk of the county in which the election was held.27 The carryover fund reports of a candidate for state or district office must be filed with the Secretary of State.28
* A person shall also file an expenditure report for the calendar quarter in which he or she transfers the carryover funds to an active campaign fund.29
* There is a separate carryover fund reporting form.30
DISCLOSURE BY MEMBER (OR MEMBER-ELECT) OF THE ARKANSAS GENERAL ASSEMBLY PURSUANT TO ARK. CODE ANN. § 21-8-901
Subchapter 9, Chapter 8, of Title 21 of the Arkansas Code Disclosure by Legislators - Sales to the State
Ark. Code Ann. § 21-8-901. Disclosure Required. In addition to the required filings under § 21-8-701, a member or a member-elect of the General Assembly shall report any goods or services sold during the previous calendar year having a total annual value in excess of one thousand dollars ($1,000) to an office, department, commission, council, board, bureau, committee, legislative body, agency, or other establishment of the State of Arkansas by the member, his or her spouse, or by any business in which such person or his or her spouse is an officer, director, or stockholder owning more than ten percent (10%) of the stock.
Ark. Code Ann. § 21-8-902. Place of Filing - Form.
Ark. Code Ann. § 21-8-903. Penalty.
Any person who purposely violates the provisions of this subchapter shall be deemed guilty of a Class A misdemeanor.
INSTRUCTIONS FOR STATEMENT OF FINANCIAL INTEREST
INTRODUCTION/WHO MUST FILE
Ark. Code Ann. § 21-8-701(a) requires that the following persons file a written Statement of Financial Interest on an annual basis;
- A public official, as defined by Ark. Code Ann. § 21-8-402(17);
- A candidate for elective office;
- A district judge; or city attorney, whether elected or appointed;
- Any agency head, department director, or division director of state government;
- Any chief of staff or chief deputy of a constitutional officer, the Senate, or the House of Representatives;
- Any public appointee to any state board or commission (who possesses regulatory authority or is authorized to receive or disburse state or federal funds);1
- All persons who are elected members of a school board or who are candidates for a position on a school board;
- All public and charter school superintendents;
- All executive directors of education service cooperatives;
- Any person appointed to a municipal, county or regional (i) planning board or commission, (ii) airport board or commission, (iii) water or sewer board or commission, (iv) utility board or commission, or (v) civil service commission;
- Any member of an advertising and promotion commission; and
- Any member of a research park authority board under Ark. Code Ann. § 14-144- 201 et seq.
The Arkansas Ethics Commission, which enforces this statute, has prepared these instructions, along with the office of the Secretary of State, whose office maintains the records, to assist persons required to file these statements. If you have any questions concerning the reporting requirements or how to fill out your Statement of Financial Interest, call or write either the Arkansas Ethics Commission, Post Office Box 1917, Little Rock, Arkansas 72203-1917, tel. (501) 324-9600 or the Secretary of State, Elections Division, State Capitol, Room 026, Little Rock, Arkansas 72201, tel. (501) 682-5070.
When preparing the Statement of Financial Interest, please print or type the information. You must also sign the Statement in Section 13 and your signature must be attested to before a Notary Public.
TIME FOR FILING/PERIOD COVERED
Pursuant to Ark. Code Ann § 21-8-701(c)(1)(A) a Statement of Financial Interest for the previous calendar year "shall be filed by January 31, of each year, except that a candidate for elective office shall file the Statement of Financial Interest for the previous calendar year on the first Monday following the close of the period to file as a candidate for elective office." Pursuant to Ark. Code Ann. § 21-8-705, if the parry filing period under Ark. Code Ann. § 7-7-203 ends before January 1 of the year of the general election, a candidate for elective office shall file a Statement of Financial Interest for the previous calendar year no later than January 31 of the year of the general election in addition to the Statement of Financial Interest required under Ark. Code Ann. § 12-8-701.
Moreover, an agency head, department director, or division director of state government and any public appointee to a state board or commission authorized or charged by law with the exercise of regulatory authority or authorized to receive or disburse state or federal funds shall file a Statement of Financial Interest for the previous calendar year within thirty (30) days after appointment or employment. Incumbent officeholders who filed a Statement of Financial Interest for the previous calendar year by January 31 of the year in which an election is held are not required to file an additional Statement of Financial Interest upon becoming a candidate for reelection or election to another office during the year. Ark. Code Ann. § 21 -8-701 (c)(2). If a person required to file a Statement of Financial Interest leaves his or her office or position during a particular calendar year, he or she shall still be required to file a Statement of Financial Interest covering mat part of the year which he or she held the office or position. Ark. Code Ann. § 21-8-701(c)(1)(B).
WHERE TO FILE
Pursuant to Ark. Code Ann. § 21-8-703, the Statement of Financial Interest shall be filed as follows:
SPECIFIC REPORTING INSTRUCTIONS
Answer each of these questions or indicate "Not Applicable" List all names under which you and/or your spouse do business.
Check the box applicable to you and provide the office/position held or name of the board, commission or school district in the appropriate space.
The term "gross income" is intended to be comprehensive. It refers to all income from whatever source derived, including but not limited to compensation for services, fees, commissions, and income derived from business interests. Report each employer and/or each other source of income from which you, your spouse, or any other person for the use or benefit of you or your spouse receives gross income exceeding $ 1,000 on an annual basis. Include your governmental income from the office or position which requires your filing of this form, You are required to use the gross amount received as income. Thus, you must compute your total income from any particular source without first deducting expenses.
You are not required to list the individual items of gross income that constitute a portion of the income of the business or profession from which you or your spouse derives income. (For example: Accountants, attorneys, farmers, contractors, etc. do not have to list their individual clients.) If more than one source/employer/entity compensated you during the past year, you are required to list each source of income greater than $1,000. If you or your spouse received speaking honoraria, you must report, under the request for "source", the sponsor of each event for which a payment was made for your speech or appearance, as well as the date and dollar category ("more than $1,000.00" or "more than $12,500.00"). The term "honoraria", as used herein, means a payment of money or any thing of value for an appearance, speech, or article. NOTE: Food, lodging, and travel provided to a public servant in connection with an appearance would not constitute honoraria if the public servant is appearing in his or her official capacity and the appearance bears a relationship to the public servant's office or position. Section 10 of the Statement of Financial interest addresses the reporting of payment for such food, lodging, and travel.
You must also provide a brief description of the nature of the services for which the income was received, as well as the name under which the income was received. For example:
|
Source |
Description |
Amount |
|
State of Arkansas (address) John Doe |
Executive Dir. |
More than $12,500.00 |
|
University of Arkansas (address) John M. Doe |
Teaching |
More than $12,500.00 |
|
450 Main Street, Little Rock, Arkansas John M. Doe |
Rent Income |
More than $12,500.00 |
|
Ark. Med. Society Annual Meeting (address) John Doe |
Speaking fee Oct. 2, Little Rock |
More than $1,000.00 |
|
Star National Bank Star, Arkansas John or Jane Doe |
Interest Income |
More than $1,000.00 |
|
City of Mayberry (address) Jane Doe |
Spouse income |
More than $12,500.00 |
|
Ark. Bar Association Annual Meeting (address) Jane Doe |
Speaking Fee Spouse, June 12 Hot Springs |
More than $1,000.00 |
In this section, list the name of every business in which you, your spouse or any other person for the use or benefit of you or your spouse have an investment or holding. Stocks, bonds, stock options and other securities held by you or your spouse must be reported. Figures for these items, as well as all other holdings or accounts, should be based on cur market value at (he end of the reporting period.
For securities, stocks, or bonds, you must disclose each security held in your portfolio which exceeds the $1,000.00 threshold. If securities are held through an investment firm, the firm will normally provide periodic statements from which you may obtain the information required to be disclosed. If you own different types of securities issued by the same authority, such as U. S. Treasury obligations or bonds, it is not necessary to provide an itemized list of each security worth over $1,000.00. Rather, you may simply report the aggregate value of the securities issued by the same authority and identify the type of securities.
In the case of mutual funds or similar investments, you need not disclose specific stocks held in a widely diversified investment trust or mutual fund as long as the holdings of the trust or fund are a matter of public record and you have no ability to exercise control over the specific holdings. If you have such control, you must disclose each holding exceeding the threshold level of $ 1,000.00, whether or not you exercise the control. Otherwise, you may simply disclose the name, address, etc. of the authority through which your mutual fund is invested (e.g., IDS), the category of the fund and die category of the appropriate amount (e.g., "more than $1,000.00").
In the case of bank accounts, if the total of accounts (including certificates of deposit) deposited in a particular bank exceeds $1,000.00, list each institution holding more than $1,000.00. If no particular bank holds more than $1,000.00, you need not report any bank accounts. All accounts at one institution, including those for your spouse, may be combined as one entry. Thus, for example, you may report a checking account, savings account, certificate of deposit, and IRA in Smith First National Bank of Arkansas by checking the gross total of the accounts (e.g., "more than $1,000.00") and stating "Smith First National Bank of Arkansas" with its address. You need not list each account. If you are listed on an account purely for custodial reasons, and you do not assert any ownership rights to the assets in the account (for example, if you are a joint tenant with an elderly relative), you need not list the account
For any business interest, if you or your spouse has an interest in a proprietorship, partnership, or corporation mat is actively engaged in a trade or business, you must disclose the name and address of each interest. It is cot necessary to provide an itemized list of the assets of the business. For example, you need only categorize the total value of your interest (e.g., "more than $12,500.00") and not items such as "office equipment." This includes each asset held in trust for you or your spouse which has a value greater than $1,000.00. Holdings of a trust for which you or your spouse are merely an administrator and for which you have no beneficial interest need not be reported.
You must report your nongovernmental offices and directorships held by you or your spouse in any business, corporation, firm, or enterprise subject to the jurisdiction of a regulatory agency of this State, or any of its political subdivisions. For each such business, provide the name of the business, its address, the office or directorship held and the name of the person (either you or your spouse) who holds the office or directorship. A "regulatory agency", as defined by Ark. Code Ann. § 21 -8-301 (1), means any "state board, commission, department, or officer authorized by law to make rules or to adjudicate contested cases except those in the legislative or judicial branches."
You must report the name and address of each creditor to whom the value of $5,000.00 or more is personally owed and outstanding at the end of the reporting period. All information regarding a single creditor may be reported in a single entry. If you have more than one liability owed to the same creditor, add up the items of credit to determine if the $5,000.00 threshold has been met The identity of the creditor is the name of the person or organization to which the liability is owed (e.g, "Bob Smith, 1000 Elm Street, Little Rock, Arkansas").
You do not need to include debts owed to members of your family. You may also exclude loans made in the ordinary course of business by either a financial institution or a person who regularly and customarily extends credit. This exclusion applies to such items as a mortgage secured by real property which is your personal residence, credit extended to purchase personal items such as furniture or appliances, credit card debts, and car loans, provided the credit does not exceed the value of the item purchased.
Debts not incurred in the ordinary course of business include, but are not limited to, such items as legal judgments, judgment liens, money borrowed from individuals, other than family members, who are not normally in the business of lending money, and tax liens owed to any governmental agency.
You must report the name and address of each governmental body to which you are legally obligated to pay a past-due amount and a description of the nature and amount of the obligation. Such debts include, but are not limited to tax liens owed to any governmental agency or other legally obligated debts in which you may be in default to a governmental body.
The law requires you to provide the name and address of each guarantor or co-maker, other than a member of your family, who has guaranteed a debt which is still outstanding. The $5,000.00 threshold of Section 6 does not apply here. To the extent that you have a guarantor or co-maker of any of your outstanding debts, the guarantor or co-maker must be disclosed. There is no exception for debts incurred in the ordinary course of business. This requirement also includes debts arising, extended or refinanced after January 1,1989.
This requirement extends to situations where you have co-signed a loan to assist another person in obtaining credit, unless the person is a member of your family.
The law requires you to identify the source, date, description, and a reasonable estimate of the fair market value of each gift of more than one hundred dollars ($100.00) received by you or your spouse during the reporting period or more than two hundred and fifty dollars ($250.00) received by your dependent children during the reporting period. A gift is any "payment, entertainment, advance, services, or anything of value" unless consideration of equal or greater value has been given therefor. The value of an item shall be considered to be less than one hundred dollars ($100) if the public servant reimburses the person from whom the item was received any amount over one hundred dollars ($100) and the reimbursement occurs within ten (10) days from the date die item was received. All types of gifts must be reported. Items such as food, lodging, and travel are considered gifts unless they are received when you are appearing in your official capacity and the appearance bears a relationship to your office or position. [Note: The reporting of food, lodging, and travel received by a public servant who is appearing in his or her official capacity at an event which bears a relationship to his or her office or position is addressed in Section 10 below.]
A gift can be a tangible item, such as a watch, or an intangible item, such as a hunting or fishing trip. A gift does not include (1) informational material; (2) receiving 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 returned to the donor within 30 days; (4) gifts from a family member listed in Ark. Code Arm. § 21-8-402(5)(B)(iv), unless the family member is acting as an agent for a person not covered by the exception; (S) campaign contributions; (6) devises or inheritances; (7) anything with a value of $100 or less; (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, Sciences, and the Arts, 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 non-profit 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 (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.): and (16) anything of value provided by a political party under Ark. Code Ann. 5 7-1-101 or 6 7-7-205 when serving as the host of the following events to all attendees as part of attendance at the event:
In reporting a gift, you must report the source, the date it was received, a reasonable estimate of its fair market value, and a brief description. In that regard, the Ethics Commission has issued opinions concerning the "fair market value" of such items as transportation on a private aircraft. A group of items received from the same source at the same time would be considered one gift and the separate values should be added together. As an example, if you receive a tie and tie clip (valued $50.00) along with a pair of golf shoes (valued at $75) from one donor, this should be reported and described in Section 9, as the receipt of a gift, "tie, tie clip and shoes." The value would be $125.00. Similarly, food and beverages provided you in connection with lodging should be aggregated to ascertain if the threshold reporting level has been reached. If you are unsure if the value should be aggregated for purposes of reporting, you may wish to contact the Arkansas Ethics Commission for an opinion.
In accordance with Ark. Code Ann. § 21-8-804, certain designated officials are authorized to accept gifts, grants, and donations of money or property on behalf of the State of Arkansas, the Arkansas Senate, the Arkansas House of Representatives, and the Arkansas Supreme Court. In addition, the designated officials are authorized to accept donations of money for the purpose of hosting official swearing-in and inaugural events of the constitutional officers, Senate, House of Representatives, and Supreme Court justices, the official recognition event for the President Pro Tempore, and the official recognition event for the Speaker of the House. The public official accepting the gift, grant, or donation of money or property on behalf of an appropriate entity is not required to disclose same on his or her Statement of Financial Interest. Instead, public servants are required to report such gifts, grants, or donations of money or property to the Ethics Commission on a quarterly basis on a separate disclosure form prepared for such purposes.
If you are an employee of a public school district, the Arkansas School for the Blind, the Arkansas School for the Deaf, the Arkansas School for Mathematics, Sciences, and the Arts, a university, a college, a technical college, a technical institute, a comprehensive life-long learning center, or a community college, the law requires you to disclose each monetary or other award over one hundred dollars ($100) which you have received in recognition of your contributions to education. The information disclosed with respect to each such award should include the source, date, description, and a reasonable estimate of the fair market value.
Payments for food, lodging, or travel are not 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. However, Section 11 requires that each nongovernmental source of payment of expenses for such food, lodging, or travel be listed when the expenses paid by that source exceed $150.00. [Note: The reporting of money or things of value received when you are not appearing in an official capacity or the appearance does not bear a relationship to your office or position is addressed in Section 3 ("Sources of Income") or Section 9 ("Gifts).] In this regard, you must list the name and business address of the person or organization which has paid your expenses, the date, nature, and amount of the expenses unless such person or organization was compensated by the governmental body for which the public servant serves. Thus, you must disclose in this section, lodging or travel received in connection with such activities as speaking engagements, conferences, or fact finding events related to your official duties.
The organization is the source of payment It should be the name of the sponsor actually paying or providing the expenses. The date of expenses should be the inclusive dates of all travel provided. If the travel all occurred on one day, report that day. Otherwise, list die starting and ending dates of each trip provided (i.e., "May 1 - 5,1997").
It is permissible to extend the duration of a trip at your own expense, accepting return travel from the sponsor. However, to avoid suggesting that travel was accepted for a longer period of time than was actually the case, you should indicate any time not spent at the sponsor's expense on either the line requesting the "date" or "nature" of expenses. For example, using the dates listed above, you could report "May 1 - 5,1997. May 3 - 4 on personal business, expenses paid by me."
The law requires you to list any business by whom you are employed it the business is under direct regulation or subject to direct control by the governmental body which you serve. You must report the employment by listing the name of this business/employer and provide the governmental body which regulates or controls aspects of the business. Such a business relationship typically exists if your private employer is subject to any rules or regulations of a governmental body or if a governmental body adjudicates contested cases of fact involving your private employer. For example, if you work as a licensed dentist, the appropriate regulatory governing body may be the State Board of Dental Examiners.
Whether your business is under direct regulation or subject to direct control by a governing body is often a question of fact. If you are unsure, you should contact the Arkansas Ethics Commission or, if you know, the agency you suspect may regulate part or all of your activities.
The law requires you to report certain business relationships with the government if a significant sale of goods or services occurs. Specifically, you must set out in detail the goods or services sold having a total annual value in excess of $1,000.00 sold to the governmental body for which you serve or are employed and the compensation paid for each category of goods or services by you or any business in which you or your spouse is an officer, director, stockholder owning more than ten percent (10%) of the stock, owner, trustee, or partner.
Under the law, each person, required to file a Statement of Financial Interest must prepare the statement under penalty of false swearing and sign such form attesting to the truth and accuracy of the information set forth on the form. Ark. Code Ann. § 21-8-702. If a person who is required to file a Statement of Financial Interest is called to active duty in the armed forces of the United States, the statement may be completed by the spouse of the person. If the Statement of Financial Interest is completed by the spouse, under this exception, the spouse's signature shall be sufficient far the requirement of Ark. Code Ann. § 21-8-702.
