ADVISORY
OPINION NO. 2003-EC-002
Issued February 21, 2003
The Ethics
Commission has received a written request for an advisory opinion from Senators
Percy Malone and Gilbert Baker in their respective capacities as majority leader
and minority leader of the Arkansas Senate. In their advisory opinion request,
Senators Malone and Baker ask three (3) questions concerning political action
committees (“PACs”).
The first question asked is whether it is permissible for a PAC to make a
contribution to another PAC. This question was the subject of Advisory Opinion
No. 99-EC-019. In that opinion, the Commission noted that there are two types
of PACs, approved PACs and small donor PACs, and that the purpose of each type
of PAC is to receive contributions in order to make contributions to
candidates. Because neither type of PAC is statutorily authorized to use
contributions it has received for any purpose other than making contributions to
candidates, the Commission concluded that it was not permissible for a PAC to
make a contribution to another PAC.
The payment of administrative expenses by PACs was addressed by the Commission
in Advisory Opinion No. 98-EC-019. Therein, the Commission concluded that it
was permissible for a PAC to pay reasonable administrative expenses out of the
contributions it has received. The Commission went on to state, however, that
it would be a different matter to conclude that a PAC may use contributions it
had received for purposes beyond making contributions to candidates and paying
administrative expenses. Based upon the absence of any statutory authority, it
remains the Commission’s opinion that it is not permissible for a PAC to use the
contributions it had received to make a contribution to another PAC.
The second question asked by Senators Malone and Baker is whether it is
permissible for a PAC to buy a ticket to a fundraiser for a candidate. The
buying of a ticket to a candidate’s fundraiser constitutes the making of a
contribution to the candidate. Accordingly, the Commission concludes that it is
permissible for a PAC to buy a ticket to a candidate’s fundraiser.
The third question is whether it is permissible for a PAC to buy a ticket to a
fundraiser for a political party, one of its auxiliaries, or the House or Senate
Caucus. Again, neither an approved PAC nor a small donor PAC is statutorily
authorized to use contributions it has received for any purpose other than
making contributions to candidates. In the absence of statutory authority, it
is the Commission’s opinion that it is not permissible for a PAC to use the
contributions it has received to make a contribution to a political party, an
auxiliary committee of a political party, or a political party caucus of the
House or Senate.
This advisory opinion is issued by the Arkansas Ethics Commission pursuant to
Ark. Code Ann. § 7-6-217(g)(2).
Graham F. Sloan
Director