Little Rock officials are reconsidering their options to stop mayoral challengers from collecting campaign money before the city's set time frame, now that the Arkansas Ethics Commission has declined for a second time to answer the city's legal question on the issue.
After receiving a complaint in August about state Rep. Warwick Sabin, who is exploring a 2018 bid for Little Rock mayor, raising campaign funds through an exploratory committee, City Attorney Tom Carpenter was tasked with ruling whether the fundraising was a violation of city code.
He wrote in a September opinion that state law allows cities to limit the time frame for which campaign donations can be accepted and that candidates for municipal office should be following the city's rules -- which say funds cannot be raised until the June before a November election -- even though state law sets a fundraising time frame of two years before an election.
In response to the same citizen's complaint, the Arkansas Ethics Commission at the time said it only has jurisdiction over state law and declined to look into the city issue.
The Little Rock Board of Directors then asked the Ethics Commission to reconsider, in hopes the commission could clarify whether the city can enforce the narrower time frame.
On Friday, the Ethics Commission issued a three-page response saying it is "not in a position to answer the question." It reiterated -- as mentioned in the city's request -- that Arkansas Code Annotated 7-6-224 does allow a city to set time restrictions, but it said the commission couldn't make a ruling on a city ordinance.
The response also referred to the other state law that allows candidates for municipal office to accept money up to two years before an election.
"From the Commission's perspective, it is permissible for both a candidate for public office and an exploratory committee to begin soliciting and/or accepting contributions two (2) years before an election at which the candidate seeks nomination or election," the letter, signed by Executive Director Graham Sloan, said. "Simply stated, nothing in the laws under the commission's jurisdiction limits contributions to the period beginning June 1 immediately before the election."
Carpenter disapproved of the response.
"It really avoids the question," he told city board members by email Friday.
"If the Commission had said that the statute is in place, that cities are not banned from setting more stringent time frames for the collection of money, but that the Commission could not tell if the city's ordinance was reasonable, I would understand," he continued. "It does not. It merely says that there is a statute in place with a time frame for exploratory committees, and makes no reference whether that statute is anyhow subject to the provisions of [Arkansas Code Annotated] 7-6-224. Despite the elucidation of the meaning of that statute, nothing in the advisory opinion was not referenced in the request."
Sloan's response also said the commission's advisory opinion process should not be used for a finding on an event that has already occurred. It is meant to offer guidance related to future conduct, he said.
Now that the commission has declined to opine on whether two potential challengers to Mayor Mark Stodola in next year's election are violating city law, or whether the city campaign code is reasonable pursuant to state law, Carpenter said the board will have to take another look at its options.
He is working to prepare a memorandum advising the board on the next steps it can pursue.
Earlier he told board members that their options were to ask the commission to reconsider, to alter city code to align it with the state's guidelines, to seek a court ruling, or to prosecute suspected violations of the city ordinance.
Violating a city ordinance is punishable with a fine. Carpenter said Pulaski County prosecutor Larry Jegley has already told Carpenter he would not prosecute anyone for violating the city's fundraising time frame.
At the time, Carpenter told the board he did not recommend taking Sabin or banker Frank Scott Jr. to court.
Both Sabin and Scott have announced they are exploring runs for mayor and have started collecting funds via exploratory committees. Sabin had raised almost $75,000 as of Aug. 31. He will submit an updated report at the end of this month. Scott's first report is due at the end of this month.
"We are pleased that for the second time in a row the Arkansas Ethics Commission affirmed Warwick Sabin's right to form an exploratory committee as he considers running for Little Rock mayor," Sabin's campaign manager Sandra McGrew said in a statement. "We hope that no additional taxpayer money or resources are spent by Little Rock City Government to protect the incumbent mayor when it is now clear that an exploratory committee is perfectly legal. We consider this matter officially closed."
Scott said through a spokesman that he looks forward to continuing his campaign now that the Ethics Commission issued a second opinion confirming he is following all applicable state laws with fundraising.
Stodola said in a phone interview that "the city ordinance is very clear that the timeline applies to all campaigns, including exploratory campaigns, and both candidates continue to violate the ordinance."
He said the Ethics Commission's response is troublesome since the commission's rules clearly prevent an incumbent from forming an exploratory committee, therefore giving "a big advantage" to any challengers who can collect money that way. Stodola is prevented from collecting money until June by the city ordinance.
Stodola also took issue with Sabin's accusation that the city is attempting to protect incumbents.
The matter of raising money through an exploratory committee before the June date mentioned in city code also affects candidates for the city Board of Directors. While some people have announced that they plan to challenge board incumbents, no one has created a committee to collect funds.
The Little Rock mayor's salary is $160,000. The mayor directs city board meetings and only votes in the event of a tie. He also has veto power.
That seat and six of the seven ward seats will be on the Nov. 6, 2018, election ballot. City directors are paid $18,000 per year and serve four-year terms. The other ward seat and three at-large positions will be on the ballot in 2020.
Metro on 10/21/2017