(a)

1. (1) For purposes of this section and throughout this part, a candidate or officeholder who uses campaign funds or remaining campaign funds to fulfill any commitment, obligation, or expense that would exist regardless of the candidate’s campaign or officeholder activity and an officeholder who uses remaining campaign funds to fulfill any commitment, obligation, or expense that would exist regardless of the duties and responsibilities of his or her office shall be deemed to have taken campaign funds as personal income.

2. (2) Candidates or officeholders may use campaign funds or remaining campaign funds to fulfill any commitment, obligation, or expense:

   1. (A) Authorized by law;
   2. (B) Permitted by an Arkansas Ethics Commission rule or opinion at the time of the expenditure; or
   3. (C) Reasonably and legitimately related to a campaign or officeholder activity.

(g) Pursuant to Arkansas Code § 7‑6‑203, knowingly taking campaign funds as personal income is a:

1. (1) Class B felony if the value of the benefit is twenty-five thousand dollars ($25,000) or more;
2. (2) 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);
3. (3) 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
4. (4) Class A misdemeanor if the value of the benefit is less than two thousand five hundred dollars ($2,500).

(h) 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 remaining campaign funds and the candidate or officeholder:

1. (1) Reported the personal property as campaign funds; and
2. (2) Retained or disposed of the personal property in the manner that is required by law for campaign funds.