Stricken language would be deleted from and underlined language would be added to present law. Act 592 of the Regular Session *SSS184* 03-05-2025 14:47:50 SSS184 State of Arkansas As Engrossed: S3/5/25 1 95th General Assembly A Bill 2 Regular Session, 2025 SENATE BILL 351 3 4 By: Senator J. Dismang 5 By: Representative Eaves 6 7 For An Act To Be Entitled 8 AN ACT TO AMEND THE LAW CONCERNING ETHICS AND 9 CAMPAIGN FINANCE; TO AMEND PORTIONS OF INITIATED ACT 10 1 OF 1990; TO AMEND PORTIONS OF INITIATED ACT 1 OF 11 1996; AND FOR OTHER PURPOSES. 12 13 14 Subtitle 15 TO AMEND THE LAW CONCERNING ETHICS AND 16 CAMPAIGN FINANCE; TO AMEND PORTIONS OF 17 INITIATED ACT 1 OF 1990; AND TO AMEND 18 PORTIONS OF INITIATED ACT 1 OF 1996. 19 20 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 21 22 SECTION 1. Arkansas Code § 7 -6-203(a)(1), concerning a candidate's 23 acceptance of campaign contributions and resulting from Initiated Act 1 of 24 1996, is amended to add an additional subdivision to read as follows: 25 (C) It shall be unlawful for a prospective contributor 26 other than those under subdivisions (a)(1)(A)(i) -(vi) of this section to make 27 a contribution to: 28 (i) A candidate for public office; or 29 (ii) A person acting on the candidate’s behalf. 30 31 SECTION 2. Arkansas Code § 7 -6-203(f)(4)(A)(iii), concerning a 32 candidate's acceptance of campaign funds as personal income and resulting 33 from Initiated Act 1 of 1996, is amended to read as follows: 34 (iii) If a candidate or officeholder is assessed a 35 fine by the Arkansas Ethics Commission under § 7 -6-218(b)(4)(B) for the use 36 As Engrossed: S3/5/25 SB351 2 03-05-2025 14:47:50 SSS184 of campaign funds as personal income, a candidate or officeholder shall not 1 use campaign funds or carryover remaining campaign funds to pay the fine. 2 3 SECTION 3. Arkansas Code § 7 -6-203(g)(2)(E), concerning a candidate's 4 acceptance of campaign funds as personal income and resulting from Initiated 5 Act 1 of 1996, is amended to read as follows: 6 (E) If a candidate or officeholder uses campaign funds or 7 carryover remaining campaign funds to pay a fine imposed by the Arkansas 8 Ethics Commission under § 7 -6-218(b)(4)(B) for the use of campaign funds as 9 personal income, the candidate or officeholder shall be deemed to have taken 10 campaign funds as personal income. 11 12 SECTION 4. Arkansas Code § 7 -6-206(a), concerning records of 13 contributions and expenditures for campaign finance, is amended to read as 14 follows: 15 (a) A candidate, a political party, or a person acting in the 16 candidate's behalf, a political party, a county political party committee, a 17 political action committee, an independent expenditure committee, or a person 18 making independent expenditures shall keep records of all contributions and 19 expenditures in a manner sufficient to evidence compliance with §§ 7-6-207 — 20 7-6-210 § 7-6-201 et seq. 21 22 SECTION 5. Arkansas Code § 7 -6-207(a)(1)(F), concerning records of 23 contributions and expenditures for campaign finance and resulting from 24 Initiated Act 1 of 1996, is amended to read as follows: 25 (F)(i) If a candidate keeps remaining campaign funds after 26 an election, but does not have any activity before the end of the year, the 27 candidate shall not be required to file a fourth quarter report. 28 (ii) If a candidate keeps remaining campaign funds 29 and or raises campaign funds for a future campaign, or expends campaign funds 30 for office holder expenses or a future election, the candidate shall continue 31 filing the reports required by this subsection. 32 (iii) If a candidate keeps remaining campaign funds 33 after an election, the candidate shall continue filing the reports required 34 by this subsection. 35 36 As Engrossed: S3/5/25 SB351 3 03-05-2025 14:47:50 SSS184 SECTION 6. Arkansas Code § 7 -6-207(b)(2)(B), concerning records of 1 contributions and expenditures for campaign finance and resulting from 2 Initiated Act 1 of 1996, is amended to read as follows: 3 (B) If a candidate's campaign has ended and the candidate 4 is retaining remaining campaign funds, the final report shall also indicate 5 the amount of funds retained by the candidate in accordance with § 7 -6-201(3) 6 [repealed] as remaining campaign funds . 7 8 SECTION 7. Arkansas Code § 7 -6-208(b)(2)(A), concerning reports of 9 contributions for candidates for school district, township, or municipal 10 office and resulting from Initiated Act 1 of 1996, is amended to read as 11 follows: 12 (2)(A) When the candidate's campaign has ended, the final report 13 shall also indicate which option under § 7 -6-203(g) was used to dispose of 14 any surplus of campaign funds, the amount of funds disposed of by the 15 candidate, and the amount of funds retained by the candidate in accordance 16 with § 7-6-201(3) [repealed] as remaining campaign funds . 17 18 SECTION 8. Arkansas Code § 7 -6-209(b)(2)(A), concerning reports of 19 contributions for candidates for county offices and resulting from Initiated 20 Act 1 of 1996, is amended to read as follows: 21 (2)(A) When the candidate's campaign has ended, the final report 22 shall also indicate which option under § 7 -6-203(g) was used to dispose of 23 any surplus of campaign funds, the amount of funds disposed of by the 24 candidate, and the amount of funds retained by the candidate in accordance 25 with § 7-6-201(3) [repealed] as remaining campaign funds . 26 27 SECTION 9. Arkansas Code § 7 -6-215(d)(6), concerning registration and 28 reporting by approved political action committees and resulting from 29 Initiated Act 1 of 1996, is amended to read as follows: 30 (6)(A) A political action committee shall indicate on its 31 quarterly report for the fourth quarter of each calendar year whether or not 32 it intends to terminate its registration for the next calendar year. 33 (B) If a quarterly report for the fourth quarter is filed 34 in paper form, the form utilized by the Secretary of State for filing shall 35 require the political action committee to indicate whether or not it intends 36 As Engrossed: S3/5/25 SB351 4 03-05-2025 14:47:50 SSS184 to terminate its registration for the next calendar year. 1 (C) If the Secretary of State offers electronic filing of 2 political action committee reports, the format used by the Secretary of State 3 for the filing of political action committee reports in electronic form shall 4 require a political action committee indicating that it intends to terminate 5 its registration for the next calendar year to terminate its registration for 6 the next calendar year before submitting its quarterly report for the fourth 7 quarter. 8 (D)(B) If a political action committee does not file any 9 quarterly reports for a period of two (2) years, the Secretary of State shall 10 terminate the political action committee's registration due to inactivity. 11 12 SECTION 10. Arkansas Code § 7 -6-216(c), concerning registration and 13 reports by exploratory committees and resulting from Initiated Act 1 of 1990, 14 is amended to read as follows: 15 (c) Within thirty (30) days of the end of each month, No later than 16 twenty (20) days after the end of each month, an exploratory committee shall 17 file a report with the appropriate filing office indicating: 18 (1) The total amount of contributions received during the filing 19 period; 20 (2) The name and address of each person who has made a 21 contribution which, in the aggregate, exceeds two hundred dollars ($200), 22 along with the contributor's principal place of business, employer, 23 occupation, and the amount contributed; and 24 (3) The total amount of expenditures made and, for each single 25 expenditure that exceeds one hundred dollars ($100), an itemization, 26 including the amount of the expenditure, the name and address of the person 27 to whom the expenditure was made, and the date the expenditure was made. 28 29 SECTION 11. Arkansas Code § 7 -6-220(a)(1)(B), concerning the report of 30 independent expenditures and resulting from Initiated Act 1 of 1996, is 31 amended to read as follows: 32 (B) Each subsequent report shall be filed no later than 33 fifteen (15) twenty (20) days after the end of each month until the election 34 is held, except as required in subdivision (a)(1)(C) of this section. 35 36 As Engrossed: S3/5/25 SB351 5 03-05-2025 14:47:50 SSS184 SECTION 12. Arkansas Code § 7 -6-227(a)(1)(A), concerning registration 1 by an independent expenditure committee, is amended to read as follows: 2 (a)(1)(A) An independent expenditure committee shall register with the 3 Secretary of State within fifteen (15) days after accepting contributions or 4 making independent expenditures that exceed five hundred dollars ($500) two 5 hundred dollars ($200) in the aggregate during a calendar year. 6 7 SECTION 13. Arkansas Code § 7 -6-228(c)(2), concerning campaign signs 8 and campaign materials, is amended to read as follows: 9 (2) Subdivision (c)(1)(A) of this section applies only to 10 campaign signs, campaign literature, and other printed campaign materials 11 created by or sponsored by a political candidate, the campaign of a political 12 candidate, a political action committee, or an independent expenditure 13 committee, or persons making independent expenditures . 14 15 SECTION 14. Arkansas Code § 7 -9-402(2)(B), concerning the definition 16 of "ballot question committee" as it relates to matters referred to voters, 17 is amended to read as follows: 18 (B) A person other than an individual or an approved 19 political action committee as defined in § 7 -6-201, located within or outside 20 Arkansas, also qualifies as a ballot question committee if an amount equal to 21 two percent (2%) or more of its annual revenues, operating expenses, or funds 22 are for the most recently completed year is used to make a contribution or 23 contributions to another ballot question committee and if the contribution or 24 contributions exceed ten thousand dollars ($10,000) in value; 25 26 SECTION 15. Arkansas Code § 7 -9-402(10)(B), concerning the definition 27 of "legislative question committee" as it relates to matters referred to 28 voters, is amended to read as follows: 29 (B) A person other than an individual or an approved 30 political action committee as defined in § 7 -6-201, located within or outside 31 Arkansas, also qualifies as a legislative question committee if an amount 32 equal to two percent (2%) or more of its annual revenues, operating expenses, 33 or funds are for the most recently completed year is used to make a 34 contribution or contributions to another legislative question committee and 35 if the contribution or contributions exceed ten thousand dollars ($10,000) in 36 As Engrossed: S3/5/25 SB351 6 03-05-2025 14:47:50 SSS184 value; 1 2 SECTION 16. Arkansas Code § 7 -9-409(a)(3), concerning time for filing 3 financial reports for matters referred to voters, is amended to read as 4 follows: 5 (3)(A) Furthermore, a A final financial report shall be filed no 6 later than thirty (30) days after the election. 7 (B) If a ballot question fails to qualify for the ballot 8 or is disqualified, the final financial report required under subdivision 9 (a)(3)(A) of this section shall be filed no later than thirty (30) days after 10 the end of the month in which the ballot question fails to qualify for the 11 ballot or is disqualified. 12 13 SECTION 17. Arkansas Code Title 7, Chapter 9, Subchapter 4, is amended 14 to add an additional section to read as follows: 15 7-9-416. Contributions and expenditures for campaign signs, campaign 16 literature, and printed campaign materials. 17 (a) A ballot question committee, a legislative question committee, an 18 individual person, or an elected official who receives contributions or makes 19 expenditures to support or oppose a ballot question or legislative question: 20 (1) May reuse the campaign signs, campaign literature, and other 21 printed campaign materials in future initiative campaigns that have been 22 properly reported in a previous campaign by that committee, individual 23 person, or elected official; and 24 (2) Is not required to list the campaign signs, campaign 25 literature, and other printed campaign materials under subdivision (a)(1) of 26 this section in future reports filed under this subchapter. 27 (b)(1) Campaign signs, campaign literature, and other printed campaign 28 materials under subsection (a) of this section shall clearly contain the 29 words “Paid for by” followed by the name of the committee, individual person, 30 or elected official who paid for the campaign sign, campaign literature, or 31 other printed campaign materials. 32 (2) The ballot question committee, legislative question 33 committee, individual person, or elected official printing the campaign sign, 34 campaign literature, or other printed campaign materials shall be responsible 35 for including the language required under subdivision (b)(1) of this section. 36 As Engrossed: S3/5/25 SB351 7 03-05-2025 14:47:50 SSS184 1 SECTION 18. Arkansas Code § 21 -8-703(a), concerning the place and 2 manner for filing a statement of financial interest, is amended to add an 3 additional subdivision to read as follows: 4 (7) Executive directors of education service cooperatives 5 required to file shall file with the county clerk. 6 7 /s/J. Dismang 8 9 10 APPROVED: 4/14/25 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36