House Rules

Wrapped in a warm you could just introduce yourself for the record you can present your amendment. Thank you Mr chairman Les Warren represent for district twenty five. what we're doing with the amendment is we're changing everything from oversight to advisory at the suggestion of the Attorney General. So that's it in a nutshell our members who are the men are there any questions. Accident. I see no question with a motion to adopt the amendment all those in favor say aye opposed okay you mean this adopted you cannot present your bill. Okay I'm gonna let the search Chesterfield she would give you more details census was originally welcome to rule Senator thank you thank you Mister is good to see you again good morning ladies and gentleman the committee of this is the only Industry that has over two hundred forty million dollars in revenue that has absolutely no legislative oversight. A in excuse me advice. Yes No legislative advice and whereas the bill clearly states that our role is simply to review I think was so many people utilizing this in the amount of money involved we ought to be able to give our advice and we are the closest things to the people there is no place ready unless people know how to access the advise the of medical marijuana oversight advisory committee. They can come to us and say we have some concerns and then we can give our Vice a to the committees that are the commissions that are charged with it but I think it is important that we have our voices heard on this particular issue I appreciate a good vote thank you senator members any questions. Are seen and we have no one signed up to speak for against the bill or the wishes of the committee. I have a motion do pass as amended all those in favor signify by saying aye. Post graduation your bill is passed as it is so nice thank you so much Sturman this medic thank you. Our members are gonna move on to House Bill fifteen thirty Representative rate when you come on down just introduced after the record will get started. Thank you Mr chairman David Wright state Representative district forty members the committee thank you for the opportunity percent house bill fifteen thirty. This bill this bill to just our campaign finance laws it relates to the disposal of campaigns of surplus campaign funds so currently when a campaign comes to an end you're allowed to carry over excess funds over to the next campaign. But you're only able to carry over access funds up to the salary of your office so if you have funds above and beyond that those will be considered surplus funds so under our law you have to dispose of those funds if you in the campaign with fifty thousand dollars in your account your salary is an elected officials forty two you have eight thousand do you have to dispose of for example. Under our law there's currently only five ways that you can dispose of camera surplus campaign funds you can donate them to the state you can. give them to a political party or party caucus you can donate them to a five oh one C. three nonprofit. You can give them to a city or town or you can refund them to the contributors. So what this bill would do is similar to the option where you can donate the surplus funds to a five oh one see three group you would also be able to donate those funds to a five oh one C. four group so both C. four and C. three groups or nonprofits under the IRS code. the difference in the two is that seat the ETC's skews me see threes function primarily as either charity or educational entities see for group can also do charity work they can also do They can also do educational work but they can also advocate for social change they can engage citizens in the political process they can engage in lobbying etcetera. so functionally what that would look like is this change would allow candidates if they wanted to to donate surplus campaign funds to groups like the NRA to family counsel to Arkansas right to life groups that are structures C. force or fear of different political persuasion maybe want to donate those funds to Sierra Club or the ACLU or so forth. so that's essentially what the bill does it allows a little bit more extra flexibility with regard to the disposal campaign surplus funds and with that I'll take any questions all right thank you members are there any questions. Written very. Right now got it thank you Mr chairperson notices when this might be a question of Seagram's loans it out there in the audience but just a question for right now so and this is just more pertaining to the but I guess the statute as it currently exists but if someone has remaining funds that to they want to give back to the current to the donors how do they go about doing that is a last in first out basis do they do it on a pro rated basis how would they currently get rid of those funds and give it back to their donors. I'm not certain I can answer that with a hundred percent accuracy my my understanding what my understanding is that you can you have flexibility in how you re fund contributions if someone requests a a refund from a campaign or if you wanted to re fund contribution for some reason any reason really you could do that in its entirety or you could you could refund it on a pro rata basis that's also an option. Okay but I would I would defer to I defer to the ethics commission on that question. Good I have dreamed of just absolutely Mr Sloan you want to come up and say a few words about this. Introduce yourself for the record and you look up proceed on answering that question. Thank you Mr chairman members committee on Graham Sloan the Director of the Arkansas ethics commission the. Disposal of surplus funds there are five methods in the one to find a method or one on the list is turned over the contributors and the lot and really go beyond that but the commission overtime in leased by way of advisory opinion his is recommended or advised that it be done on a pro rata basis in the in certainly that it be on some if it weren't gonna be pro Ratta that it would be life over five so last in first out first in last out in and you know the active perhaps depend on the facts of the situation because I mean if everybody the if you were given ninety percent re funds that the one thing And it but I mean if you have a high dollar campaign and it was just down to a hundred dollars and then pro read everybody's getting one half of one sent back in the of the postage alone you know just so you know it would kind of what's reasonable or rational basis would would depend on what you're talking about but but the commission is archer recommended you know pro Ratta in the notice of this place to start. Thank you Senate members any questions of either of our guests here. Arching nine Mr don't you having else you needed to add to this. Any other comments if not no not really the C. three is to our S. designation they are not to engage in political activity it'll jeopardize their IRS status to see for is permitted to engage in Little activity of their primary purpose can't be the politics but there you know that date they can they can spend money you know on. You're advocating the election or defeat of a candidate for example are thank you at the time of the second Representative gene you have a question. Mr Sloan I'm trying to figure out what we're trying to do here of. You know I've got to thirty thousand dollars in my campaign account and I'm not run it again and I understand what I can give it to if we add this. so I can give it to the N. R. A. in groups like that and I've never had one but lot of candidates that are in house and Senate have their own tax. Of and if I had my own back which I don't could I give money to to a pack that they qualifies on the. If it was a if you're practice organized is a C. for then you could that's not one of the current options you know as far as given to. It's five oh one C. threes only IRS recognize would be added this and I had a pack right could I give the rest my campaign money out of my personal campaign to my pack if there was a C. four run may I feel C. for crime okay thank you. And represent represent Jean I would I'm not aware of a pack is not attacking the C. four or separate distinct entities from one another so I don't know I guess I would disagree with with what. Sure you pack BSE for I did not a random Instagram. I'm not going to be able to answer for you I don't know because it's you know it's not rest designation and I just debts it's really a it's up in the air R. S. question you know I mean who could or couldn't register to see for if I could just comment on that just briefly I don't believe it's up in the air at all a state pack is registered with the secretary of state's office a C. for entity is is registered with the IRS the IRS is what gives you that nonprofit designation apac is not a nonprofit it's a political action committee. Thank represented Ferguson push your button I'll get you on the. One more time. You're recognized thank you Mr so Mr Sloan Representative ray notorious Act organizes C. for Bible one see for. For a particular calls. And give and I'm not run it again and give those funds to that see for that organized while I was elected. If it was approved by the R. S. you can give it to you can give to an approved five oh one C. for group yes the intake those funds. Because I'm not run it again and take those funds and the. Work on a particular call. That I disagree with that I agree with sure that's right yet that's that's commonly referred to as issue advocacy so a lot of times I'm sure if your email inbox looks anything like mine does when a couple who typically when a controversial bill comes up you'll see the sort of form emails that you'll get you know state police support SB whatever or or oppose that bill a lot of times those are generated by groups by C. four groups that engage citizens in the political process that's that's their primary purpose do one more follow up missed you so in the example that Representative Jean gave you is not run it again AZS thirty thousand dollars in this account and I'll get twenty five or twenty seven or the say I have thirty in my account I don't run again represent of represented gene is run it again so he has legislation that I'm opposed to so but if I can go ahead and organize that C. four I can take my campaign funds put in that see for I don't want to be and to oppose this legislation and maybe even hire someone for that see for that I want to hire. Right. Yeah I don't think it hasn't necessarily the you're not run it again wouldn't matter I mean you can't paint Fund have surplus funds you can give me to see for then the C. four can engage in issue advocacy which would potentially be in favor of or opposition to but my point is if I don't run again and I get twenty five thousand dollars in back down in a fight with a run again and I get twenty five thousand dollars in my account issues move because I don't have over the forty two thousand dollars correct right but if I don't want again and I've got twenty five thousand dollars in back account and create a C. four to oppose particular legislation that my good friend Lane Jean Hess then I can also hire the shield great to work for my C. for to help opposed that legislation I'm at I guess I'm going to focus and you get at I'm just trying to see I could do that right you can give surplus funds to see for if you had care at this bill passed and then if the if you had carryover funds you can also get rid of them in those same methods so the not run it again part of it is not wanted yes we do either way you go if you if you if the campaign ended yet twenty five thousand dollars left over the in one of the things you could do would be if this past we give it to the city for okay okay all right thank you thank you thank you Mister you bet represented Dalby you're recognized. Thank you Mister chair Mister Fund. Question that I keep running my mind would if if. You raise these funds to run for an office and any change to run to another office in this C. four then be used to. Senator that C. four then sent back to your campaign for another office. I understand your hypotheticals understand hypothetical somebody raised money to run for office a and then changes her mind and decided to run for office be then could they take the office a money and give it to the city for which could then potentially spend that money on the office be race. I think you could yes. Thank you. With any other questions for Mr Sloan. Seeing none thank you Mr Sloan sure thank you all members any questions Representative ray. Seeing none Representative ray would you like to close for your bill sure I will so. Prior to being elected to the legislature I served as the director of a five oh one C. four group so I believe that C. for organizations serve a valuable purpose in our political system whether it's and there's five oh one C. four groups of practically every political persuasion you can imagine some of which I'm sure you agree with and maybe even are members of some of which don't agree with but they have a valuable role to play in our political process and having been a campaign manager for multiple congressional races and worked on US Senate campaigns I have a lot of ideas about how we could improve our campaign finance laws in the state but I feel like this is a small tweak that would just allow for more flexibility with the disposal of surplus funds that are left over and with that mmhm close the bill. All right members you've heard the testimony water which is of the committee. I'm not saying no motion No Representative regular bill has failed to pass due to lack of motion thank you for your testimony okay thank you. I members that's all we have on the agenda today of the vice chair sleeve you and then you want to add are you bet thanks for your hard work will be back here next Wednesday at twelve