Arkansas Regulations § 153.00.98-004 Rules of Practice and Procedure

The Arkansas Ethics Commission ("Commission") is composed of five appointed Commissioners who set policy under authority of the ethics, conflicts of interest, lobbying, campaign finance disclosure and ballot question laws within the State of Arkansas. In accordance with these rules of practice and procedure, the Commission issues advisory opinions and legal interpretations of law, and acts as fact-finder and enforcement body for those alleged to have violated those laws under its jurisdiction. Information may be obtained from the Commission by written request. The Commission staff, which may consist of an executive director, staff attorney(s), director of compliance and others, act as the administrator and operating entity of the Commission. This staff, or members thereof, may make office administrative procedure, act as spokesman for the Commission, receive correspondence and correspond on behalf of the Commission, provide legal and other research to the Commission, investigate allegations of violations of laws under the Commission's jurisdiction, and perform such functions as the Commission deems appropriate. These rules of practice and procedure shall govern all proceedings before the Commission and shall be applicable to any complaints filed or initiated after the effective date hereof. In accordance with Ark. Code Ann. § 25-15-204 (c) , any person may petition the Commission for the issuance, amendment, or repeal of any rule.

The Commission has prepared the following forms and instructions: Citizen Complaint Form, Final Contribution and Expenditure Instructions-State and District, Contribution and Expenditure Instructions-State and District, Contribution and Expenditure Instructions-County and Municipal, Instructions for Statement of Financial Interest, Statement of Organization, and Committee Financial Report. Copies of same are set forth in the appendix hereto. Moreover, the Commission has approved the following forms and instructions prepared by the Secretary of State: Lobbyist Registration Form, Lobbyist Activity Report, Independent Expenditure Committee Registration Form, Independent Expenditure Committee Reporting Form, Statement of Financial Interest, Political Party Reporting Form, Carryover Account Report Form, PAC Registration Form, Contribution and Expenditure Form-State and District, Final Contribution and Expenditure Form-State and District, Contribution and Expenditure Form-County and Municipal, and Act 808 Form. Finally, the Commission has participated in the publication of the following document(s) prepared by the State Board of Election Commissioners: Running for Office, A "Plain English" Handbook for Candidates.

"Carryover funds" refers to the amount of campaign funds retained from the last election by the candidate for future use but not to exceed the annual salary for the office sought. The amount of carryover funds retained, if any, are to be reflected in section 7 of this report.

The law requires candidates to disburse the campaign surplus within thirty (30) days following the end of the month in which the election is held and to disclose how the surplus campaign funds were disbursed. The funds may be disbursed in any one or more of the four methods listed on this report. The candidate should check each box which is applicable.

INSTRUCTIONS FOR STATEMENT OF FINANCIAL INTEREST

INTRODUCTION/WHO MUST FILE

Ark. Code Ann. § 21-8-701 (a) requires the following persons to file an annual written statement of financial interest:

- Public officials, as defined by Ark. Code Ann. § 21-8-402 (16) ;

- Candidates for elective office;

- Municipal judges and/or city attorneys, whether elected or appointed;

- Any agency head, department director, or division director of state government;

- Public appointees to any state board or commission.

The Arkansas Ethics Commission, which regulates this statute, bas prepared these instructions, along with the office of the Secretary of State, whose office maintains the records, to assist persons required to file these statements. If you have any questions concerning the reporting requirements or how to fill out your Statement of Financial Interest, call or write either the Arkansas Ethics Commission, 910 W. Second Street, Suite 100, Little Rock, Arkansas 72201, tel. (501) 324-9600 or the Secretary of State, Elections Division, State Capitol, Room 026, Little Rock, Arkansas 72201, tel. (501) 682-5070.

When filling out the Statement of Financial Interest, please print or type the information. You must also sign the Statement in Section 12 and your signature must be attested to before a Notary Public.

TIME FOR FILING/PERIOD COVERED

Pursuant to Ark. Code Ann. § 21-8-701 (c)(l) , the Statement of Financial Interest "shall be ' filed by January 31, of each year, except that a candidate for elective office shall file the statement of financial interest within thirty (30) days after the deadline for filing for office." Incumbent officeholders, who filed the statement by January 31 of the year in which an election if held are not required to file an additional statement upon becoming a candidate for reelection or election to another office during the year. Ark. Code Ann. § 21-8-701 (c)(2) . The Statement of Financial Interest covers the period of the previous calendar year.

WHERE TO FILE

Pursuant to Ark. Code Ann. § 21-8-703 , the Statement of Financial Interest shall be filed as follows:

Answer each of these questions or indicate "Not Applicable". List all names under which you and/or your spouse do business.

Check the box appropriate to you. After noting which category fits you, provide the office/position held or name of the board or commission in the appropriate space.

The term "income" is intended to be comprehensive. It refers to all income from whatever source derived, including but not limited to compensation for services, fees, commissions, and gross income derived from business interests. Report each employer and/or each other source of income from which you, your spouse, or any other person for the use or benefit of you or your spouse receives income. Include your current employment with the government which requires your filing of this form. You are required to use the gross amount received as income. Thus, you must compute your total income from any source without first deducting expenses.

You are not required to list the individual items of income that constitute a portion of the gross income of the business or profession from which you or your spouse derives income. You are required to list each source of income greater than $1,000.00 if more than one source/employer/entity compensated you during the past year. If you or your spouse received speaking honoraria, you must report, under the request for "source", the sponsor of each event for which a payment was made for your speech or appearance, as well as the date and dollar category ("more than $1,000.00" or "more than $12,500.00"). The term "honoraria", as used herein, means a payment of money or any thing of value for an appearance, speech, article and necessary travel or lodging expenses incurred by the individual, acting in his/her unofficial . capacity, or incurred by his/her spouse, to the extent that such expenses are reimbursed by the sponsor.

You must also provide a brief description of the nature of the services for which the compensation was received, as well as the name under which the income was received. For example:

Source	Description	Amount
State of Arkansas (address) John Doe	Executive Dir.	More than $12,500.00
University of Arkansas (address) John M. Doe	Teaching	More than $12,500.00
450 Main Street, Little Rock, Arkansas John M. Doe	Rent Income	More than $12,500.00
Ark. Med. Society Annual Meeting (address) John Doe	Speaking fee Oct. 2, Little Rock	More than $1,000.00
Star National Bank Star, Arkansas John or Jane Doe	Interest Income	More than $1,000.00
City of Mayberry (address) Jane Doe	Spouse income	More than $12,500.00
Ark. Bar Association Annual Meeting (address) Jane Doe	Speaking Fee Spouse, June 12 Hot Springs	More than $1,000.00

In this section, list the name of every business in which you, your spouse or any other person for the use of you or your spouse have an investment or holding. Stocks, bonds, stock options and other securities held by you or your spouse must be reported. Figures for these items, as well as all other holdings or accounts, should be based on fair market value at the end of the reporting period.

For securities, stocks, or bonds, you must disclose each security held in your portfolio which meets the income threshold. If securities are held through an investment firm, the firm will normally provide periodic statements from which you may obtain the information required to be disclosed. If you own different types of securities issued by the same authority, such as U. S. Treasury obligations or bonds, it is not necessary to provide an itemized list of each security worth over $1,000.00. Rather, you may simply report the aggregate value of the securities issued by the same authority and identify the type of securities.

In the case of mutual funds or similar investments, you need not disclose specific stocks held in a widely diversified investment trust or mutual Hind as long as the holdings of the trust or fund are a matter of public record and you have no ability to exercise control over the specific holdings. If you have such control, you must disclose each holding meeting the threshold level of $1,000.00, whether or not you exercise the control. Otherwise, you may simply disclose the name, address, etc of the authority through which your mutual fund is invested (e.g. IDS), the category of the fund and the category of the appropriate amount (e.g. "more than $1,000.00").

In the case of bank accounts, if the total of interest bearing accounts deposited, including certificates of deposit, in a particular bank exceeds $1,000.00, list each institution holding more than $1,000.00. If no particular bank holds more than $1,000.00, you need not report any bank accounts. All accounts at one institution, including those for your spouse, may be combined as one entry. Thus, for example, you may report a checking account, savings account, certificate of deposit, and IRA in Smith First National Bank of Arkansas by checking the gross total of the accounts (e.g. "more than $1,000.00) and stating "Smith First National Bank of Arkansas" with its address. You need not list each account. If you are listed on an account purely for custodial reasons, and you do not assert any ownership rights to the assets in the account (for example, if you are a joint tenant with an elderly relative), you need not list the account.

For any business interest, if you or your spouse has an interest in a proprietorship, partnership, or corporation that is actively engaged in a trade or business, you must disclose the name and address of each interest. It is not necessary to provide an itemized list of the assets of the business. For example, you need only categorize the total value of your interest (e.g. "more than $12,500.00") and not items such as "office equipment". This includes each asset held in trust for you or your spouse which has a value greater than $1,000.00. Holdings of a trust for which you or your spouse are merely an administrator and for which you have no beneficial interest need not be reported.

You must report your nongovernmental offices and directorships held by you or your spouse in any business, corporation, firm or enterprise subject to the jurisdiction of a regulatory agency of this State, or any of its political subdivisions. For each such business, provide the name of the business, its address, the office or directorship held and the name (either you or your spouse) who holds the office or directorship. A "regulatory agency" , as defined by Ark. Code Ann. § 21-8-301 (1) means any "state board, commission, department, or officer authorized by law to make rules or to adjudicate contested cases except those in the legislative or judicial branches."

You must report the name and address of each creditor to whom the value of $5,000.00 or more is personally owed and outstanding at the time of filling out the Statement of Financial Interest. All information regarding a single creditor may be reported in a single entry. If you have more than one liability owed to the same creditor, add up the items of credit to determine if the $5,000.00 threshold has been met. The identity of the creditor is the name of the person or organization to which the liability is owed (e.g. "Bob Smith, 1000 Elm Street, Little Rock, Arkansas" or "First Federal Bank of Little Rock, 111 Main, Little Rock, Arkansas").

You do not need to include debts owed to members of you family. You may also exclude loans made in the ordinary course of business by either a financial institution or a person who regular and customarily extends credit. This exclusion applies to such items as a mortgage secured by real property which is your personal residence, credit extended to purchase personal items, such as furniture or appliances, if the credit does not exceed the value of the item purchased.

Debts not incurred in the ordinary course of business include, but are not limited to, such items as legal judgments, judgment liens, money borrowed from individuals, other than family members, who are not normally in the business of lending money, and tax liens owed to any governmental agency.

The law requires you to provide the name and address of each guarantor or co-maker, other than a member of your family, who has guaranteed a debt which is still outstanding. The $5,000.00 threshold of Section 6 does not apply here. To the extent that you have a guarantor or co-maker of any of your outstanding debts, the guarantor or co-maker must be disclosed. There is no exception for debts incurred in the ordinary course of business. This requirement also includes debts arising or extended or refinanced after January 1, 1989.

This requirement extends to instances where you have co-signed a loan to assist another person in obtaining credit, unless the person is a member of your family.

The law requires you to identify the sources, date and description of each gift you or your spouse received during the reporting period. A gift is any "payment entertainment, advance, services or anything of value" unless consideration of equal or greater value has been given in return. In order to be a gift, the value must be equal to or greater than $100.00. All types of gifts, including travel-related, paid-for expenses provided for your personal benefit, must be reported. Travel (including food and lodging) received in connection with official duties and capacity is reported separately. (See below - Section 9 " Nongovernmental Sources of Payment.")

A gift can be a tangible item, such as a watch or cash, or an intangible item, such as travel or lodging given you during an occasion when you were not appearing in an official capacity. A gift does not include (1) informational material, (2) receiving food, lodging or travel which bears a relationship to the public servant's office and when appearing in an official capacity, (3) gifts which are not used and returned to the donor within 30 days, (4) gifts from a family member, as defined by Ark. Code Ann. § 21-8-402 (5)(B)(iv) , unless the fomily member is acting as an agent for a person not covered by this paragraph, (5) campaign contributions, (6) devises or inheritances, and (7) anything of value less than $100.

In reporting a gift, you must report the source, the date you received it and briefly describe it. Although not required, the Commission encourages that the value of the gift be included in the description. In that regard, the Ethics Commission has issued opinions concerning the "fair market value" of such items as "transportation on a private aircraft." A group of items received from the same source at the same time would be considered one gift and the separate values should be added together. As an example, if you receive a tie and tie clip (valued $50.00) along with a pair of golf shoes (valued at $75) from one donor at one time, this should be reported and described on line 3, Section 8, as the receipt of a gift, "tie, tie clip and shoes." The value would be $125.00. Similarly, food and beverages provided you during and connected with an overnight lodging, also provided, should be aggregated to ascertain if the threshold reporting level has been reached. If you are unsure if the value should be aggregated for purposes of reporting, you may wish to contact the Arkansas Ethics Commission for an opinion.

The law allows public officials to receive sources of payment or income from other sources. If you receive money or things of value when acting in an "unofficial capacity", these items will be reported either as "income" (Section 3) or as a "gift" (Section 8). When you receive a payment for expenses, from a nongovernmental source, exceeding $150.00. for food, lodging or travel which bears a relationship to your office when you appear in your official capacity, you must list each such payment in Section 9.

This section concerns expenses paid by nongovernmental sources (such as lobbyists). Each payment exceeding $150 in value must be reported. You must list the name and business address of the person or organization which has paid your expenses, the date and nature of the expenses if the expenses were not compensated by the governmental body for which the public servant serves. Thus, you must disclose in this section, lodging or travel for such activities as speaking engagements, conferences or fact finding events related to your official duties.

The organization is the source of payment. It should be the name of the sponsor actually paying or providing the expenses. The date of expenses should be the inclusive dates of all travel provided. If the travel all occurred on one day, report that day. Otherwise, list the starting and ending dates of each trip provided, i.e. "May 1-5, 1997."

It is permissible to extend a trip at your own expense, accepting return travel from the sponsor. However, to avoid suggesting that travel was accepted for a longer period of time than was actually the case, you should indicate any time not spent at the sponsor's expense on either the line requesting the "date" or "nature" of expenses. For example, using the dates listed above, you could report "May 1-5,1997. May 3 - 4 on personal business, not reimbursed."

The law requires you to list any business for whom you are employed if the business is under direct regulation or subject to direct control by the governmental body which you serve. You must report the employment by listing the name of this business/employer and provide the governmental body which regulates or controls aspects of the business. Such a business relationship typically exists if your private employer is subject to any rules or regulations of a governmental body or if a governmental body adjudicates contested cases of feet involving your private employer. For example, if you work as a licensed dentist, the appropriate regulatory governing body may be the State Board of Dental Examiners.

Whether your business is under direct regulation or subject to direct control by a governing body is often a question of feet. If you are unsure, you should contact the Secretary of State's office, the Arkansas Ethics Commission or, if you know, the agency you suspect may regulate part or all of your activities.

The law requires you to report certain business relationships with the government if a significant sale of goods or services occurs. Specifically, you must set out in detail the goods or services sold having a total annual value in excess of $ 1,000.00 sold to the governmental body for which you serve or are employed and the compensation paid for each category of goods or services by you or any business in which you or your spouse is an officer, director, or stockholder owning more than ten percent (10%) of the stock.

Under the law, each person, required to fill out a Statement of Financial Interest, must fill out the Statement under penalty of perjury and sign such form attesting to the truth and accuracy of the statements made on the form. Ark. Code Ann. § 21-8-702 . If a person who is required to file a Statement of Financial Interest is called to active duty in the armed forces of the United States, the Statement may be completed by the spouse of the person. If the Statement of Financial Interest is completed by the spouse, under this exception, the spouse's signature shall be sufficient for the requirement of Ark. Code Ann. § 21-8-702 .