7 CAR § 3-153 – Exploratory committees — Contribution limits

(a)
1. (1) An exploratory committee is a person who receives contributions held to be transferred later to a single candidate.
2. (2) Furthermore, an exploratory committee is one designated by a candidate to promote the candidate's campaign and to serve as recipient of all contributions and the distributor of all expenditures for a candidate prior to the time the candidate formally announces his or her intentions to run for office.
(b)
1. (1) An exploratory committee is under the same guidelines applicable to maximum contribution limits per election as the candidate's campaign committee.
2. (2) Contributions to an exploratory committee count toward the maximum limit a candidate may receive.
(c)
1. (1) Expenditures from exploratory committees must be for campaign purposes.
2. (2) As with any other campaign funds, candidates or their exploratory committees are prohibited from using any campaign funds, including funds given to an exploratory committee, as personal income or for personal purposes.
(d)
1. (1) An exploratory committee may be formed on a candidate's behalf even if the candidate is presently an officeholder and has an existing campaign fund.
2. (2) The exploratory committee must not be formed for the same office as currently held by the officeholder.
3. (3) The moneys that make up the existing campaign fund relate to a prior election.
4. (4) Funds contributed to an exploratory committee will apply toward the contribution limits of the election for which the exploratory committee was formed and are exclusive from funds already maintained in an officeholder account.
(e)
1. (1) Funds raised by the exploratory committee on the candidate's behalf will be treated as contributions if the individual elects to become a candidate.
2. (2) The contribution limits for the election/office being sought by the individual will apply.
3. (3) The money contributed will apply against the limits applicable to the primary election for the candidate when, and if, the person decides to run for office.
(f)
1. (1) A potential candidate may have more than one (1) exploratory committee.
2. (2) If a potential candidate or individual establishes more than one (1) exploratory committee, or if the person elects to run for an office other than the one for which the exploratory committee was receiving contributions, the candidate must dispose of the funds received by the exploratory committee for the office not sought pursuant to 7 CAR § 3-127 and/or Arkansas Code § 7‑6‑203(g)(1)(A) – (E) within thirty (30) days of the close of filing for public office.
(g)
1. (1) Exploratory committees must maintain bank accounts separate from:
  1. (A) The candidate's personal account; and
  2. (B) Any concurrent officeholder/candidate's account.
2. (2) When the candidate announces for election, the exploratory committee may convert the funds remaining in its account to the candidate's campaign account.
(h)
1. (1)
  1. (A) More than one (1) exploratory committee for a potential candidate may exist simultaneously that designate the same or different campaigns to be explored.
  2. (B) If the committees are for the same office (e.g., different committees in different counties), the contributions received will be applied toward the limitations for contributions as noted herein in subsection (e).
  3. (C) The committees should keep accurate and separate bank accounts and be able to verify that no contributor has given more than the maximum in the aggregate to any exploratory committees.
  4. (D) As an example, if a contributor gives the maximum amount to the candidate's Pulaski County Exploratory Committee for Governor, such contributor could not give any money to any other exploratory committee for the same candidate, same office.
2. (2) If the committees are for different offices, the candidate must ensure that the funds retained by the committee for the office not sought are disposed pursuant to 7 CAR § 3-127 and Arkansas Code § 7‑6‑203(g)(1)(A) – (E) and subsection (f) above.
(i)
1. (1)
  1. (A) If the candidate ultimately seeks the office being explored, the funds raised by the exploratory committee should be transferred to the candidate's campaign committee and reported in the final report pursuant to 7 CAR § 3-152 and Arkansas Code § 7‑6‑216.
  2. (B) The amount or amounts a person contributes to an exploratory committee shall count towards the limit on campaign contributions that such person may make to the candidate.
2. (2) If the candidate seeks another office, the committee should:
  1. (A) File a final report;
  2. (B) Note this fact on the report; and
  3. (C) Dispose of the funds pursuant to 7 CAR § 3-127 and Arkansas Code § 7‑6‑203(g)(1)(A) – (E).
3. (3)
  1. (A) If the person elects not to seek office, the committee must file a final report and note this fact on the report.
  2. (B) Since the person is not going to be a candidate, any funds remaining in the exploratory committee's account should be disposed pursuant to 7 CAR § 3-127 and Arkansas Code § 7‑6‑203(g)(1)(A) – (E).
  3. (C) Within thirty (30) days after the end of the month in which the candidate decides not to run for office or the committee no longer intends to accept contributions on his or her behalf, the committee must file its final report and note how any remaining funds were disposed of by the committee.
  4. (D) The funds should be disposed pursuant to one (1) of the five (5) options in Arkansas Code § 7‑6‑203(g)(1).
  5. (E) The Arkansas Ethics Commission encourages exploratory committees to consider refunding the contributions on a pro rata basis to the contributors.
  6. (F) The funds must not be used by the candidate for personal purposes.

Codification Notes: This section as promulgated prior to codification into the Code of Arkansas Rules contained the following footnotes: A footnote to 7 CAR § 3-153(a)(1) cited "74 Ark. Code Ann. § 7-6-201(9)". A footnote to 7 CAR § 3-153(a)(2) cited "75 Arkansas Ethics Commission Opinion No. 97-EC-007".