State panel advises on campaign funds shift; candidate should get OK from contributor for runoff use, it says

Former Republican Party of Arkansas Chairman Doyle Webb is shown speaking in this file photo.
Former Republican Party of Arkansas Chairman Doyle Webb is shown speaking in this file photo.


If a candidate for state office wants to shift campaign funds raised for the general election to use in a primary runoff, the candidate should obtain permission or consent from the contributor to redesignate the funds for the runoff election, the Arkansas Ethics Commission advised Friday.

The commission approved the advisory opinion in response to an opinion request from Republican lieutenant governor candidate Doyle Webb of Benton, who is the former state Republican Party chairman.

Webb is one of six Republican candidates vying for lieutenant governor in the primary election Tuesday. If none of the six candidates wins a majority of the votes in the primary election, the two top vote-getters will advance to the June 21 runoff.

For the general election, Attorney General Leslie Rutledge of Maumelle has reported accumulating the largest campaign treasury of the six GOP candidates for lieutenant governor. For the general election, Rutledge this week reported total contributions and a balance of $465,654.63 through May 14. In November, she abandoned a run for governor to seek the lieutenant governor's office.

According to the commission's advisory opinion, Webb stated that his belief is political contributions received and reported by a candidate to be spent during the general election cannot be expended or reallocated for campaign expenses in the primary election or subsequent runoff election, and he inquired whether the commission's position is in accordance with his understanding.

Webb spokesman Seth Mays said Friday that Webb agreed with the commission's advisory opinion in that a candidate cannot immediately shift campaign funds raised for the general election to spend in primary runoff elections without the permission of a contributor to shift the contributor's donation.

Rutledge campaign manager Drew Evans said Friday that "we have no comment."

A candidate may accept campaign contributions up to the maximum amount from any prospective contributor for each election, whether opposed or unopposed, under Arkansas Code Annotated 7-6-203, according to the commission's advisory opinion. The current maximum contribution by a donor to a candidate is $2,900 per election.

Likewise, once a candidate has raised or spent more than $500 t0ward his or her election, the candidate has triggered reporting under Arkansas Code Annotated 7-6-207 for each election for which they have raised in excess of $500, the commission said.

Before the primary election, a candidate who has accepted the maximum contribution from a particular donor for the primary election and has accepted a contribution for the general election cannot spend the money raised for the general election prior to the primary having taken place, according to the commission.

"To do so would be to exceed the contribution limit for the primary election for every contributor who has given the maximum contribution for the primary election and also has given a contribution for the general election prior to the primary election," the commission said. "In other words, general election money, to the extent that it represents contributions from people who have given the maximum contribution to that candidate for the primary election and have gone ahead and given a contribution for the general election, shall not be spent for primary election expenses."

A candidate's ending balance of funds from the primary election would carry forward to become the beginning balance of the campaign finance report for the primary runoff election, according to the commission.

If a candidate accepted the maximum contribution from contributors for the primary and general elections before the primary , that candidate would have triggered the requirement that they file separate campaign finance reports for both elections, the commission said.

"Historically, when a candidate switches races after they have begun soliciting contributions, it has been the advice of the [Arkansas Ethics Commission] that the candidate should refund the contribution to the contributor and re-solicit them for use in the new race they chose to enter," according to the commission. "If they do not do that, the guidance has been that the candidate should seek permission from a contributor to use the contribution made for the first race in his or her ultimate race."

In keeping with that advice, if this candidate wishes to spend money the candidate already has accepted and designated for the general election in the runoff election, "it would be the advice of the commission that the candidate obtain permission or consent from the contributor to redesignate it for the primary runoff election," the commission said in its advisory opinion.

"Upon obtaining such consent, the formerly general election funds could be spent on the primary runoff election, and the campaign would need to file amended [campaign finance] reports for the general election, moving such contributions from the candidate's general account and on the general election [campaign finance] reports and placing them on the [campaign finance] reports for the primary runoff election," according to the commission.

This redesignation would allow the primary candidate, who advanced to the primary runoff, to solicit a third contribution from such a contributor for the general election, if the candidate wins the primary runoff election, the commission said.

If the candidate wanted to prepare for the possibility of a runoff, but only received contributions for two elections from a given contributor, the candidate could choose to get pre-emptive permission from a general election contributor to redesignate such a general election contribution for the primary runoff election, fully effectuating the redesignation only if and when the candidate advances to a runoff, according to the commission.


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