As used in this part:

1. (1)

   1. (A) “Approved political action committee” means any person who:

      1. (i) Receives contributions from one (1) or more persons in order to make contributions to:

         1. (a) (a) Candidates;
         2. (b) (b) Campaign committees;
      2. (c) (c) Ballot question committees;

      3. (d) (d) Legislative question committees;

         1. (e) (e) Political parties;
         2. (f) (f) County political party committees; or
         3. (g) (g) Other political action committees;
      4. (ii) Does not accept any contribution or cumulative contributions in excess of ten thousand dollars ($10,000) from any person in any calendar year; and
      5. (iii) Registers pursuant to Arkansas Code § 7-6-215 prior to making contributions.

   2. (B) An approved political action committee shall not include:

      1. (i) An organized political party as defined in Arkansas Code § 7-1-101;
      2. (ii) A county political party committee;
      3. (iii) The candidate's own campaign committee;
      4. (iv) An exploratory committee; or
      5. (v) A ballot question committee or legislative question committee;
2. (2) “Ballot question” means a question in the form of a statewide, county, municipal, or school district initiative or referendum which is submitted or intended to be submitted to a popular vote at an election, whether or not it qualifies for the ballot;

3. (3)

   1. (A) “Ballot question committee” means:

      1. (i) Any person, located within or outside Arkansas, that receives contributions for the purpose of expressly advocating the qualification, disqualification, passage, or defeat of any ballot question; or
      2. (ii) Any person, other than an elected official expending public funds, or an individual, located within or outside Arkansas, who makes expenditures for the purpose of expressly advocating the qualification, disqualification, passage, or defeat of any ballot question.

   2. (B) A person other than an individual or an approved political action committee as defined in subdivision (1) of this section, located within or outside Arkansas, also qualifies as a ballot question committee if:

      1. (i) Two percent (2%) or more of its annual revenues, operating expenses, or funds are used to make a contribution or contributions to another ballot question committee; and
      2. (ii) The contribution or contributions exceed ten thousand dollars ($10,000) in value;

4. (4)

   1. (A) “Contribution” means, whether direct or indirect, advances, deposits, transfers of funds, contracts, or obligations, whether or not legally enforceable, payments, gifts, subscriptions, assessments, payment for services, dues, advancements, forbearance, loans, pledges or promises of money or anything of value, whether or not legally enforceable, to a person receiving same for the purpose of expressly advocating the:

      1. (i) Qualification, disqualification, passage, or defeat of a ballot question; or
      2. (ii) Passage or defeat of a legislative question.

   2. (B) “Contribution” includes the purchase of tickets for events, such as dinners, luncheons, rallies, and similar fundraising events, and the granting of discounts or rebates by television and radio stations and newspapers, not extended on an equal basis to all persons seeking to expressly advocate the:

      1. (i) Qualification, disqualification, passage, or defeat of a ballot question; or
      2. (ii) Passage or defeat of a legislative question.
   3. (C) “Contribution” shall not include noncompensated, nonreimbursed volunteer personal services or travel;

5. (5)

   1. (A) “Contribution and expenditure” shall not include:

      1. (i) Activities designed solely to encourage individuals to register to vote or to vote; or
      2. (ii) Any communication by a bona fide church or religious denomination to its own members or adherents for the sole purpose of protecting the right to practice the religious tenets of the church or religious denomination.
   2. (B) “Expenditure” shall not include one (1) made for communication by a person strictly with the person’s paid members or shareholders;
6. (6) “Disqualification of a ballot question” means any action or process, legal or otherwise, which seeks to prevent a ballot question from being on the ballot at an election;
7. (7) “Elected official” means any person holding an elective office of any governmental body, whether elected or appointed to the office;

8. (8) “Expenditure” means a purchase, payment, distribution, gift, loan, or advance of money or anything of value, and a contract, promise, or agreement to make an expenditure, for goods, services, materials, or facilities for the purpose of expressly advocating the:

   1. (A) Qualification, disqualification, passage, or defeat of a ballot question; or
   2. (B) Passage or defeat of a legislative question;
9. (9) “Governmental body” means any office, department, commission, council, board, committee, legislative body, agency, or other establishment of the executive, judicial, or legislative branch of the state, municipality, county, school district, improvement district, or any political district or subdivision thereof;

10. (10)

    1. (A) “In-kind contribution” means a contribution of goods, services, or any other thing of value, or its use, other than money and includes an agreement made or other obligation incurred, whether legally enforceable or not, to make such a contribution in the future.
    2. (B) A person makes an “in-kind contribution” whenever, in conjunction with the qualification, disqualification, passage, or defeat of a ballot question or the passage or defeat of a legislative question, such person purchases, sells, or leases an item, or provides a service to or on behalf of a ballot or legislative question committee without charge or for a charge which is less than the fair market value of the item or service provided.
    3. (C) The difference between the fair market value and the charge shall be the value of the in-kind contribution;
11. (11) “Legislative question” means a question in the form of a measure referred by the General Assembly, a quorum court, a municipality, or a school district to a popular vote at an election;

12. (12)

    1. (A) “Legislative question committee” means:

       1. (i) Any person, located within or outside Arkansas, that receives contributions for the purpose of expressly advocating the passage or defeat of any legislative question or any person, other than an elected official expending public funds; or
       2. (ii) An individual, located within or outside Arkansas, who makes expenditures for the purpose of expressly advocating the passage or defeat of any legislative question.

    2. (B) A person other than an individual or an approved political action committee as defined in subdivision (1) of this section, located within or outside Arkansas, also qualifies as a legislative question committee if:

       1. (i) Two percent (2%) or more of its annual revenues, operating expenses, or funds are used to make a contribution or contributions to another legislative question committee; and
       2. (ii) The contribution or contributions exceed ten thousand dollars ($10,000) in value;

13. (13)

    1. (A) “Person” means any:

       1. (i) Individual;
       2. (ii) Business;
       3. (iii) Proprietorship;
       4. (iv) Firm;
       5. (v) Partnership;
       6. (vi) Joint venture;
       7. (vii) Syndicate;
       8. (viii) Business trust;
       9. (ix) Labor organization;
       10. (x) Company;
       11. (xi) Corporation;
       12. (xii) Association;
       13. (xiii) Committee; or
       14. (xiv) Other organization or group of persons acting in concert.

    2. (B) “Person” includes an elected official using public funds to expressly advocate the:

       1. (i) Qualification, disqualification, passage, or defeat of any ballot question; or
       2. (ii) Passage or defeat of any legislative question;

14. (14)

    1. (A) “Political party” means any group of voters which:

       1. (i) At the last preceding general election, polled for its candidate for Governor in the state or nominees for presidential electors at least three percent (3%) of the entire vote cast for the office; or
       2. (ii) Has filed a petition with the Secretary of State containing at the time of filing the signatures of at least ten thousand (10,000) registered voters in the State of Arkansas, declaring the intention of organizing a political party, the name of which shall be stated in the declaration, and of participating in the next general election, and which has been declared a new political party by the Secretary of State.
    2. (B) When any political party fails to obtain three percent (3%) of the total votes cast at an election for the office of Governor or nominees for presidential electors, it shall cease to be a political party;

15. (15)

    1. (A) “Prohibited political action committee” means any person who receives contributions from one (1) or more persons in order to make contributions to candidates, ballot question committees, legislative question committees, political parties, county political party committees, or other political action committees but who does not meet the requirements of an approved political action committee.

    2. (B) A prohibited political action committee shall not include:

       1. (i) A political party as defined in Arkansas Code § 7-1-101;
       2. (ii) A political party that meets the requirements of Arkansas Code § 7-7-205;
       3. (iii) The candidate's own campaign committee;
       4. (iv) A county political party committee;
       5. (v) An exploratory committee; or
       6. (vi) A ballot or legislative question committee;

16. (16)

    1. (A) “Public appointee” means an individual who is appointed to a governmental body.
    2. (B) It does not include an individual appointed to an elective office;

17. (17)

    1. (A) “Public employee” means an individual who is employed by a governmental body or who is appointed to serve a governmental body.
    2. (B) It does not include public officials or public appointees;

18. (18)

    1. (A) “Public official” means a legislator or any other person holding an elective office of any governmental body, whether elected or appointed to the office, and shall include such persons during the time period between the date they were elected and the date they took office.
    2. (B) “Public official” includes without limitation a member of a school district board of directors;

19. (19) “Public servant” means all:

    1. (A) Public officials;
    2. (B) Public employees; and
    3. (C) Public appointees; and
20. (20) “Qualification of a ballot question” means any action or process, legal or otherwise, through which a ballot question obtains certification to be on the ballot at an election.

Codification Notes: This section as promulgated prior to the codification of the Code of Arkansas Rules contained a footnote to subdivision (3)(A)(ii) of this section following the phrase “other than an elected official expending public funds” as follows: “Ark. Code Ann. § 7-1-111 was established by Act 312 of 2013 and falls outside of the Arkansas Ethics Commission’s jurisdiction. Pursuant thereto, an “elected official” or “a person appointed to an elective office” is permitted to expend or permit the expenditure of public funds to support or oppose a ballot measure. However, Ark. Code Ann. § 7-1-111(b) provides that “[i]t is unlawful for a public servant or a governmental body to expend or permit the expenditure of public funds to support or oppose a ballot measure.” With regard to this prohibition, it is noted that the term “public funds” is defined to mean “funds, moneys, receivables, grants, investments, instruments, real or personal property, or other assets, liabilities, equities, revenues, receipts, or disbursements belonging to, held by, or passed through a governmental body[.]” In addition, the term “public servant” is defined to mean “an individual who is (i) Employed by a governmental body; (ii) Appointed to serve a governmental body; or (iii) Appointed to a governmental body.” That definition goes on to state that “‘Public servant’ does not include: (i) An elected official; or (ii) A person appointed to an elective office.” It is noted that Ark. Code Ann. § 7-1-111 does not: limit the freedom of speech of a public servant or governmental body, including without limitation verbal expressions of views supporting or opposing a ballot measure; prohibit a governmental body from expressing an opinion on a ballot measure through the passage of a resolution or proclamation; prohibit the incidental use of state resources by a public servant, including without limitation travel costs, when speaking at an event in which a ballot measure is discussed if the subject matter of the speaking engagement is within the scope of the official duties and responsibilities of the public servant; or prohibit the dissemination of public information at a speaking engagement and the incidental use of state resources in the analysis and preparation of that public information if the subject matter of the public information is within the scope of the official duties and responsibilities of the public servant. Ark. Code Ann. § 7-1-111 provides that a violation of the prohibition contained therein is a Class A misdemeanor, with the exception that a public servant who is found guilty or pleads guilty or nolo contendere to such a violation is ineligible to hold any office, employment, or appointment in a governmental body and that if a public servant is found guilty or pleads guilty or nolo contendere to such a violation while employed by a governmental body, he or she shall be removed from employment immediately.” This section as promulgated prior to the codification of the Code of Arkansas Rules contained a footnote to subdivision (12)(A) of this section following the phrase "other than an elected official expending public funds" as follows: "See Footnote 1."