In response to a complaint from a regular city critic about Little Rock Mayor Mark Stodola's campaign war chest, City Attorney Tom Carpenter said Stodola is not in violation of city rules even though a city ordinance prohibits carrying over funds from a prior campaign.
Russ Racop, who runs the website www.badlittlerock.blogspot.com, filed a complaint Oct. 10 with Carpenter's office alleging Stodola was "in flagrant violation" of city campaign code. The code in question states that leftover campaign funds are to be given to the city, a nonprofit or returned to donors within 30 days of a general election.
Stodola has reported that he had $78,411.94 in his account at the end of 2016 that carried over from his last campaign. The account accrues interest.
After the city rule was adopted in 1988, a state law set campaign finance provisions and that law overrules the prior city code, Carpenter said in an Oct. 11 response to Racop.
In the response, Carpenter attached a copy of his 2010 opinion on the same question. At the time, he explained that Arkansas Code Annotated 7-6-224 gives cities the ability to impose some conditions on campaign finances that are more strict than state law, but it does not include the right to restrict how carryover funds are used.
The law allows municipalities the ability to establish limitations on time periods that candidates for local office can solicit contributions, limits on contribution amounts, and rules on voluntary limits a candidate may want to set for himself regarding campaign expenses.
Carpenter recently used that same section of law to opine that Stodola's challengers in the 2018 election are violating city code that says local candidates cannot begin collecting funds until the June before a November election.
To get around that rule, state Rep. Warwick Sabin and local banker F̶r̶e̶d̶ Frank* Scott Jr. announced they are exploring runs for mayor and have set up exploratory committees in which donations are being directed until they will be turned over to the candidates when they formally announce.
Another citizen filed a complaint with Carpenter's office over the exploratory committees. The same complaint also was filed with the Arkansas Ethics Commission. The commission ruled that it didn't have jurisdiction to investigate whether Sabin was violating a city ordinance since it is a state entity.
Carpenter then wrote in an opinion last month that he thinks the Ethics Commission does have the jurisdiction to rule whether state law pre-empts the city ordinance as it relates to setting limits on when campaign donations can be accepted. The Little Rock Board of Directors has since voted to ask the commission to reconsider.
The commission told the city Oct. 3 that it is considering the request. Graham Sloan, executive director, didn't return a message from the Arkansas Democrat-Gazette seeking comment on when the commission might issue a response.
If challengers are allowed to create exploratory committees and begin raising funds more than a year before an election, then incumbents are handicapped since they are required to follow the city's code of ethics and the city ordinance.
The issue also affects city directors. Six ward positions are up for re-election next year in addition to the mayor's seat.
Racop has announced he will run against Ward 6 Director Doris Wright. Racop said he does not plan to seek donations before the city's established time frame.
In response to the complaint about creating an exploratory committee, Sabin said it is mayoral challengers who are handicapped by Stodola being able to carry over funds from a prior campaign. He previously accused Carpenter of protecting Stodola, calling it "shameless cronyism."
Sabin raised almost $75,000 through August 31. Scott has not yet reported how much he has accumulated.
Metro on 10/19/2017
*CORRECTION: Frank Scott Jr. is exploring a run for Little Rock mayor. His name was incorrect in a previous version of this article.