1. (a)

   1. (1) In addition to the uses of remaining campaign funds as described in 7 CAR §§ 3-121 – 3-124, an officeholder with remaining campaign funds may use such funds for future office-related or future campaign expenses.
   2. (2) Nothing shall prohibit a person at any time from disposing of his or her remaining campaign funds in the same manner as prescribed in 7 CAR § 3-127.

2. (b)

   1. (1) If funds are retained pursuant to 7 CAR § 3-127(c), the candidate shall maintain the account, separate from any personal or other account.
   2. (2) Any remaining campaign funds held in this account shall be used only for future campaigns involving the candidate in a nonfederal office and/or legitimate expenses in connection with the candidate's public office.

3. (c)

   1. (1) Legitimate office expenses include transportation incurred by the officeholder or a member of his or her staff incurred in the operation of the office.

   2. (2) The funds may be used to purchase:

      1. (A) Office supplies and/or equipment for use in the office or in future campaigns; or
      2. (B) Advertisements for the office in such publications as a school's yearbook.
   3. (3) The 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.
   4. (4) The 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, death, or family emergency.
   5. (5) The funds could be used to offset any reasonable and legitimate office expense that is otherwise not reimbursable from public funding.

4. (d)

   1. (1) The remaining campaign funds may be deposited in an interest-bearing account.
   2. (2) However, all deposits, withdrawals, and interest earned thereon shall be reported on the appropriate Contribution and Expenditure Report during the applicable reporting period.

5. (e)

   1. (1) Upon leaving public office, any person who has funds in a campaign account pursuant to this subsection remaining on deposit shall be able to retain such funds 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.

   2. (2) The person may give such funds to:

      1. (A) The Treasurer of State to be deposited in the General Revenue Fund;
      2. (B) A political party, as defined by Arkansas Code § 7‑1‑101, or a political party caucus of the:

6. (i) General Assembly;

   1. (ii) Senate; or

      1. (iii) House of Representatives;
      2. (C) A nonprofit organization that is exempt from taxation under 26 U.S.C. § 501(c)(3) of the Internal Revenue Code; or
      3. (D) Cities of the first class, cities of the second class, or incorporated towns.
7. (f) No candidate, nor any person on behalf of a candidate, may accept contributions or funds after the candidate has withdrawn his or her nomination or after the candidate has been eliminated as a candidate.

8. (g) The use of remaining 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:

   1. (1) Shall not be considered a taking of campaign funds as personal income;
   2. (2) 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; and
   3. (3) The reimbursement amount shall be reported in the elected candidate’s campaign fund report.

Codification Notes: This section as promulgated prior to codification into the Code of Arkansas Rules contained a footnote to 7 CAR § 3-128(e)(1) as follows: “45 Ark. Code Ann. § 7-6-203(g)(2)(C)”.