Political group is cleared to spend

Donor data OK with ethics panel

A Massachusetts-based group that helps campaigns raise money online won't be required to input donors' addresses and occupations every time they give money to an Arkansas candidate, the Arkansas Ethics Commission concluded Friday.

A state law requiring that the information be correct "at the time" the donor is "making the contribution" does not mean that the information must be collected whenever donations are made, the commissioners ruled.

Steven Gold, legal counsel for ActBlue LLC of Somerville, Mass., asked the five-member commission to issue an advisory opinion to ensure the company complies with the requirements of Arkansas law.

ActBlue says it has raised more than $500 million for Democratic candidates and liberal causes since its launch in 2004. In return, recipients agree to give ActBlue 3.95 percent of each donation.

The group explains to whom it appeals to and why it's successful on its website: "We're the go-to place for fundraising on the left, and donors love to store their information because they can give to all their favorite candidates and organizations with just one click."

ActBlue calls those "one-click" donors "Express users" and says more than 800,000 of them have signed up. They provide their names, addresses, occupations, and credit card or PayPal numbers when they set up their accounts. ActBlue stores the information electronically and provides it to the campaigns so that it can be reported when required by law.

Gold wondered whether the electronic record that ActBlue generates from contributors who choose to create an ActBlue account is sufficient to comply with state law.

These contributors are not not required to enter personal information each time a campaign contribution is made to a candidate because that information was already provided by the contributor at the time at the time the ActBlue account was created, Gold said.

"In essence, the only new information being provided by the contributor 'at the time of making the contribution' is the amount of the contribution,'" the commission said.

Arkansas Code Annotated 7-6-204 (b) (3) permits online donations, "provided that the electronic record contains the following information for the cardholder at the time of making the contribution:

(A) Valid name;

(B) Complete address;

(C) Place of business;

(D) Employer; and

(E) Occupation."

On Friday, the board said it saw no conflict between the law and the electronic record generated by Act Blue for these contributors.

The commission concludes that "the fact that some of the information contained in that record was provided by the contributor when the ActBlue account was established does not keep the record from meeting that [at the time of making the contribution] requirement [under Arkansas Code Annotated 7-6-204 (b) (3)]," the commission said in an advisory opinion written by commission senior staff attorney Todd Elder.

Commission Director Graham Sloan told the commission ActBlue "wanted to be double careful that that is sufficient."

Metro on 05/24/2014

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