1. (a)

   1. (1) Except as listed in subsections (b) and (c) of this section, a campaign or candidate may use campaign funds to pay fines associated with the campaign, as in the case of a fine issued by the Arkansas Ethics Commission for the late filing of a report.
   2. (2) The payment of a fine for violations relating to a candidate’s campaign duties is a political expenditure connected with the campaign and not a personal expense.
   3. (3) If a fine is paid with campaign funds, it must be reported as a campaign expenditure and itemized on the next Contribution and Expenditure Report due, if exceeding one hundred dollars ($100).
2. (b) If a candidate or officeholder is assessed a fine by the commission under Arkansas Code § 7-6-218(b)(4)(B) for the use of campaign funds or remaining campaign funds as personal income, a candidate or officeholder shall not use campaign funds or remaining campaign funds to pay the fine.
3. (c) If a candidate or officeholder uses campaign funds or remaining campaign funds to pay a fine imposed by the commission under Arkansas Code § 7-6-218(b)(4)(B) for the use of campaign funds or remaining campaign funds as personal income, the candidate or officeholder shall be deemed to have taken campaign funds as personal income.

Codification Notes: This section as promulgated prior to codification into the Code of Arkansas Rules contained a footnote to 7 CAR § 3-114(a) as follows: “40 Arkansas Ethics Commission Opinion No. 97-EC-002”.