Current with legislation from 2024 Fiscal and Special Sessions.
Section 7-6-203 - Contributions - Limitations - Acceptance or solicitation - Use as personal income - Disposition(a)(1)(A) It shall be unlawful for any candidate for any public office or for any person acting on the candidate's behalf to accept campaign contributions in excess of the maximum campaign contribution level established by rule of the Arkansas Ethics Commission under subsection (i) of this section per election from: (ii) A political party that meets the definition of a political party under § 7-1-101;(iii) A political party that meets the requirements of § 7-7-205;(iv) A county political party committee;(v) A legislative caucus committee; or(vi) An approved political action committee.(B) It shall be unlawful for a candidate for a public office or for any person acting on the candidate's behalf to accept a campaign contribution from a prospective contributor other than those under subdivisions (a)(1)(A)(i)-(vi) of this section.(2) A candidate may accept a campaign contribution or contributions up to the maximum amount from any prospective contributor under subdivisions (a)(1)(A)(i)-(vi) of this section for each election, whether opposed or unopposed.(b)(1)(A) It shall be unlawful for any person to make a contribution to a candidate for any public office or to any person acting on the candidate's behalf, which in the aggregate amount exceeds the maximum campaign contribution limit established by rule of the Arkansas Ethics Commission per election.(B) The total aggregate amount per election is based on the total contributions made to a candidate by a donor during an election regardless of which office or offices the candidate is seeking, and the aggregate amount during an election applies even if a candidate:(i) Seeks more than one (1) office during the election; or(ii) Concludes a campaign or otherwise withdraws from the election.(2) A person permitted to make a contribution or contributions under subdivisions (a)(1)(A)(i)-(vi) of this section may make a contribution or contributions up to the maximum amount to a candidate for each election, whether opposed or unopposed.(c) The limitation shall not apply to loans made by a candidate from his or her own personal funds to the campaign, contributions made by a candidate from his or her personal funds to the campaign, or to personal loans made by financial institutions to the candidate and applied to his or her campaign.(d)(1) It shall be unlawful for any candidate for any public office or any person acting in the candidate's behalf to accept any contribution from a prohibited political action committee for any election.(2) It shall be unlawful for any prohibited political action committee to make a contribution to a candidate for public office in an election.(3) It shall be unlawful for any ballot question committee, legislative question committee, political party, county political party committee, or approved political action committee to accept any contribution from a prohibited political action committee.(4) It shall be unlawful for any prohibited political action committee to make a contribution to: (A) A ballot question committee;(B) A legislative question committee;(D) A county political party committee;(E) An approved political action committee; or(F) A prohibited political action committee.(f)(1) A candidate shall not take any campaign funds as personal income.(2) A candidate shall not take any campaign funds as income for his or her spouse or dependent children, except that: (A) This subsection shall not prohibit a candidate who has an opponent from employing his or her spouse or dependent children as campaign workers;(B) The use of campaign funds to pay a candidate's childcare expenses shall not be considered a taking of campaign funds as personal income if the campaign funds are used to pay for childcare for the time the candidate is engaging in campaign activity and the childcare expenses would not exist in the absence of the campaign; and(C) Any candidate who has an opponent and who, during the campaign and before the election, takes a leave of absence without pay from his or her primary place of employment shall be authorized to take campaign funds during the campaign and before the election as personal income up to the amount of employment income lost as a result of the leave of absence.(3) A candidate who takes campaign funds during the campaign and before the election under a leave of absence pursuant to the provisions of subdivision (f)(2) of this section may elect to treat the campaign funds as a loan from the campaign fund to the candidate to be paid back to the campaign fund by the candidate.(4)(A)(i) For purposes of this subsection, a candidate or officeholder, who uses campaign funds to fulfill any commitment, obligation, or expense that would exist regardless of the candidate's campaign or officeholder activity, shall be deemed to have taken campaign funds as personal income.(ii) Candidates or officeholders may use campaign funds to fulfill any commitment, obligation, or expense authorized by law, or permitted by an Arkansas Ethics Commission rule or opinion at the time of the expenditure, or reasonably and legitimately related to a campaign or officeholder activity.(iii) If a candidate or officeholder is assessed a fine by the Arkansas Ethics Commission under § 7-6-218(b)(4)(B) for the use of campaign funds as personal income, a candidate or officeholder shall not use campaign funds or carryover funds to pay the fine.(B) The use of campaign funds to purchase a cake or other perishable item of food at a fund-raising event held by a volunteer agency, as defined in § 16-6-103, shall not be considered a taking of campaign funds as personal income.(C) The use of campaign funds to purchase advertising prior to the date the final report is due to be filed thanking voters for their support shall not be considered a taking of campaign funds as personal income.(D) The use of campaign funds to pay a candidate's own personal expenses for food, lodging, or travel to attend a national presidential nominating convention shall not be considered a taking of campaign funds as personal income.(5) If a candidate loses an election or if an officeholder is no longer in office, personal use of campaign funds remains prohibited by this section unless the expenses relate to a future candidacy and shall comply with subdivision (f)(4) of this section.(6) Knowingly taking campaign funds as personal income is a:(A) Class B felony if the value of the benefit is twenty-five thousand dollars ($25,000) or more;(B) Class C felony if the value of the benefit is five thousand dollars ($5,000) or more but less than twenty-five thousand dollars ($25,000);(C) Class D felony if the value of the benefit is two thousand five hundred dollars ($2,500) or more but less than five thousand dollars ($5,000); or(D) Class A misdemeanor if the value of the benefit is less than two thousand five hundred dollars ($2,500).(7) It is an affirmative defense to a prosecution for taking campaign funds as personal income if the candidate or officeholder shows by a preponderance of the evidence that the personal property was retained as campaign funds, and the candidate or officeholder: (A) Reported the personal property as campaign funds; and(B) Retained or disposed of the personal property in the manner that is required by law for campaign funds.(g)(1) A candidate may turn over campaign funds to either: (A) The Treasurer of State for the benefit of the General Revenue Fund Account of the State Apportionment Fund;(B) A political party as defined in § 7-1-101 or a political party caucus of the General Assembly, the Senate, or the House of Representatives;(C) A nonprofit organization that is exempt from taxation under Section 501(c)(3) of the Internal Revenue Code;(D) Cities of the first class, cities of the second class, or incorporated towns; or(E) The contributors to the candidate's campaign.(2)(A) Remaining campaign funds may be maintained after an election and used to run for election or reelection.(B) Nothing shall prohibit a person at any time from disposing of all or any portion of his or her campaign funds in the manner set out under subdivision (g)(1) of this section. However, the candidate shall not take the funds as personal income or as income for his or her spouse or dependent children.(C)(i) Campaign funds may be retained by a person for not more than ten (10) years after the last election at which he or she was a candidate, or if applicable, not more than ten (10) years after the last day that the person held office, and any remaining campaign funds shall be disposed of in the manner set out under subdivision (g)(1) of this section.(ii)(a) The officer with whom the person last filed a final campaign report shall provide the person timely notice of the requirements of this subdivision (g)(2)(C) prior to the expiration of the ten-year period.(b) However, failure to provide the notice does not relieve the person of his or her obligation under this subsection.(D)(i) The use of campaign funds to pay an elected candidate's own personal expenses for food, lodging, conference fees, or travel to attend a conference related to the performance of his or her responsibilities as an elected official shall not be considered a taking of campaign funds as personal income.(ii) The reimbursement of expenses shall be a result of travel and the source of the reimbursement shall be authorized under the rules of the House of Representatives or the Senate and used to reimburse the campaign account.(iii) The reimbursement amount shall be reported in the elected candidate's campaign fund report.(E) If a candidate or officeholder uses campaign funds or carryover funds to pay a fine imposed by the Arkansas Ethics Commission under § 7-6-218(b)(4)(B) for the use of campaign funds as personal income, the candidate or officeholder shall be deemed to have taken campaign funds as personal income.(3) After the date of an election at which the person is a candidate for nomination or election, the person shall not accept campaign contributions for that election except for the sole purpose of raising funds to retire campaign debt.(4) Campaign funds or remaining campaign funds given to a political party caucus shall be segregated in an account separated from other caucus funds and shall not be used: (A) By the political party caucus to make a campaign contribution; or(B) To provide any personal income to any candidate who donated campaign funds or remaining campaign funds.(h) A candidate may maintain his or her campaign funds in one (1) or more campaign accounts. Campaign funds shall not be placed in an account containing personal or business funds.(i) The Arkansas Ethics Commission shall establish the maximum campaign contribution limit by rule as follows: (1) The adjusted campaign contribution limit shall be calculated from a base amount of two thousand dollars ($2,000) as of January 1, 2015;(2) The contribution limits 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 United States Bureau of Labor Statistics under 52 U.S.C. § 30116(c) as existing on January 1, 2015;(3) If the amount after adjustment under subdivision (i)(2) of this section is not a multiple of one hundred dollars ($100), the Arkansas Ethics Commission shall round the amount to the nearest multiple of one hundred dollars ($100); and(4) The Arkansas Ethics Commission shall promulgate rules identifying the adjusted contribution limit under this subsection.Amended by Act 2023, No. 307,§ 1, eff. 8/1/2023.Amended by Act 2021, No. 385,§ 1, eff. for all elections after 1/1/2023.Amended by Act 2021, No. 737,§ 6, eff. 7/28/2021.Amended by Act 2021, No. 737,§ 5, eff. 7/28/2021.Amended by Act 2021, No. 737,§ 4, eff. 7/28/2021.Amended by Act 2021, No. 737,§ 3, eff. 7/28/2021.Amended by Act 2021, No. 734,§ 1, eff. 7/28/2021.Amended by Act 2021, No. 384,§ 3, eff. 7/28/2021.Amended by Act 2021, No. 384,§ 2, eff. 7/28/2021.Amended by Act 2021, No. 384,§ 1, eff. 7/28/2021.Amended by Act 2021, No. 324,§ 2, eff. 7/28/2021.Amended by Act 2021, No. 324,§ 1, eff. 7/28/2021.Amended by Act 2021, No. 254,§ 2, eff. 7/28/2021.Amended by Act 2021, No. 254,§ 1, eff. 7/28/2021.Amended by Act 2019, No. 879,§ 2, eff. 7/24/2019.Amended by Act 2019, No. 845,§ 1, eff. 7/24/2019.Amended by Act 2019, No. 240,§ 1, eff. 7/24/2019.Amended by Act 2017, No. 318,§ 1, eff. 10/1/2017.Amended by Act 2015, No. 142,§ 1, eff. 7/22/2015.Amended by Act 2015, No. 1280,§ 7, eff. 4/8/2015.Amended by Act 2015, No. 1280,§ 6, eff. 4/8/2015.Amended by Act 2015, No. 1280,§ 5, eff. 4/8/2015.Amended by Act 2013, No. 1110,§ 7, eff. 8/16/2013.Amended by Act 2013, No. 382,§ 1, eff. 8/16/2013.Acts 1975, No. 788, § 2; 1977, No. 312, § 6; 1981, No. 690, § 1; A.S.A. 1947, § 3-1110; Init. Meas. 1990, No. 1, §§ 2, 3; Acts 1993, No. 1195, § 1; 1993, No. 1196, § 1; 1995, No. 863, §§ 1-3; 1995, No. 1296, § 41; Init. Meas. 1996, No. 1, §§ 2, 3; Acts 1997, No. 116, § 1; 1997, No. 491, §§ 2, 3; 1999, No. 553, § 3; 1999, No. 1057, § 1; 2001, No. 954, § 1; 2001, No. 1839, § 2; 2003, No. 195, §§ 2, 3; 2003, No. 248, § 1; 2005, No. 1284, §§ 3, 4; 2005, No. 1413, § 1; 2005, No. 1695, § 1; 2007, No. 221, § 2; 2009, No. 340, § 1; 2009, No. 473, §§ 3, 4; 2009, No. 1204, § 2; 2011, No. 721, §§ 3, 4.