ELECTRONICALLY FILED Pulaski County Circuit Court Larry Crane, Circuit/County Clerk 2018-Jan-18 15:33:05 60CV-18-379 C06D02 : 20 Pages IN THE CIRCUIT COURT OF PULASKI COUNTY, ARKANSAS CITY OF LITTLE ROCK, ARKANSAS PLAINTIFFS vs. ARKANSAS ETHICS COMMISSION; WARWICK SABIN; SABIN FOR MAYOR EXPLORATORY COMMITTEE; FRANK SCOTT, JR.; NEIGHBORS FOR FRANK SCOTT, JR. DEFENDANTS COMPLAINT FOR DECLARATORY JUDGMENT The City of Little Rock, Arkansas, a municipal corporation of the first class ( the City ), states for its request for declaratory judgment the following: 1. A declaratory judgment should be granted when four conditions are met: (a) (b) (c) (d) A justiciable controversy is present; The controversy exists between parties; The party seeking relief has a legal interest in the controversy; and, The issue for declaratory judgment is ripe for decision. See Jegley v. Picado, 349 Ark. 600, 613, 80 S.W.3d 332, 337 (2002). 2. In this case these elements are met as set out more fully below. 3. The City has the right to enforce a City ordinance Little Rock, Ark., Rev. Code 2-387 (1988) which provides that a candidate for a municipal office cannot solicit or receive campaign contributions before June 1 prior to the general election for a City office. 4. An administrative regulation -- Ark. Admin. Code 153.00.2-252 violates Arkansas law because the Arkansas Ethics Commission has promulgated a regulation that exceeds Page 1 of 20
the authority granted the Commission since the regulation is contrary to state statute. Ark. Code Ann. 7-6-216. 5. An administrative regulation Ark. Admin. Code 153.00.2-252 -- violates Article II of the Arkansas Constitution because it denies equal protection of the law to elected officials. 6. This Court has jurisdiction to consider a request for declaratory judgment. Ark. Code Ann. 16-111-101; 16-111-102; 25-15-207, and -213-4; see also, Ark. R. Civ. P. 57. 7. Because this action seeks declaratory relief as to the application of state statutes, state administrative regulations, and a municipal ordinance, the City prays that this Court order an expedited hearing on this Complaint and advance this matter on the calendar pursuant to Ark. R. Civ. P. 57; further, because the statutes, regulation, and ordinance in question deal with election issues that will be part of the 2018 general election, the City prays that this matter be advanced because it concerns an issue of campaign finance and reporting. PARTIES 8. The City is a municipal corporation of the first class duly organized pursuant to the laws of the State of Arkansas and located in Pulaski County; further, the governing body of the City is made up of 11 members with seven members elected by district, three members elected atlarge, and a directly elected Mayor as permitted by state statute. See Ark. Code Ann. 14-61-115. 9. The Arkansas State Ethics Commission ( the Commission ) is an entity created pursuant to Initiated Act No. 1 of 1990, as later amended, with offices at 501 Woodlane Street, Suite 301-N, Little Rock, Arkansas, and among other duties is required by law to oversee the application of the state election laws that are relevant to this litigation; the members and executive director of the Commission are: Page 2 of 20
(a) (b) (c) (d) (e) (f) Sharon K. Trusty, Chair; Sybil Jordan Hampton, Ed.D.; Tony Juneau; Ashley Driver Younger; and, Alice L. Eastwood; and, Executive Director Graham F. Sloan. 10. Warwick Sabin is a resident of Little Rock, Arkansas, who has announced his intention to seek election as Mayor of the City of Little Rock, Arkansas, in the 2018 general election. 11. Further, on July 25, 2017, an exploratory committee known as Sabin for Mayor Exploratory Committee filed a registration form with the Pulaski County Clerk [EXHIBIT 1]. 12. According to an Exploratory Committee Contribution and Expenditure Report filed with the Pulaski County Clerk on January 2, 2018, the Sabin for Mayor Exploratory Committee has collected a least $119,895.00 for Mr. Sabin s mayoral candidacy at the time this Complaint is filed. [EXHIBIT 2] 13. Frank Scott, Jr., is a resident of Little Rock, Arkansas, who has announced his intention to seek election as Mayor of the City of Little Rock, Arkansas, in the 2018 general election. 14. Further, on September 22, 2017, an exploratory committee known as Neighbors for Frank Scott, Jr. filed a registration form with the Pulaski County Clerk [EXHIBIT 3]. 15. According to an Exploratory Committee Contribution and Expenditure Report filed with the Pulaski County Clerk on December 29, 2017, the Neighbors for Frank Scott, Jr., Page 3 of 20
exploratory committee has collected at least $54,368.00 for Mr. Scott s mayoral candidacy at the time this Complaint is filed. [EXHIBIT 4] OTHER INTERESTED INDIVIDUALS 16. Mark Stodola is the duly elected Mayor of the City of Little Rock, Arkansas, and has served in this capacity at all times relevant to this litigation; further, Mayor Stodola, if he chooses to run, faces reelection for the position of Mayor at the general election to be held in November 2018. 17. Erma Hendrix is the duly elected representative to the Little Rock Board of Directors elected from Ward 1 of the City of Little Rock, Arkansas, and has served in this capacity at all times relevant to this litigation; further, Ms. Hendrix, if she chooses to run, faces reelection for her position on the Board of Directors at the general election to be held in November 2018. 18. Ken Richardson is the duly elected representative to the Little Rock Board of Directors elected from Ward 2 of the City of Little Rock, Arkansas, and has served in this capacity at all times relevant to this litigation; further, Mr. Richardson, if he chooses to run, faces reelection for his position on the Board of Directors at the general election to be held in November 2018. 19. Kathy Webb, the Vice-Mayor, is the duly elected representative to the Little Rock Board of Directors from Ward 3 of the City of Little Rock, Arkansas, and has served in this capacity at all times relevant to this litigation; further, Vice-Mayor Webb, if she chooses to run, faces reelection for her position on the Board of Directors at the general election to be held in November 2018. 20. Capi Peck is the duly elected representative to the Little Rock Board of Directors elected from Ward 4 of the City of Little Rock, Arkansas, and has served in this capacity at all times relevant to this litigation. Page 4 of 20
21. Lance Hines is the duly elected representative to the Little Rock Board of Directors elected from Ward 5 of the City of Little Rock, Arkansas, and has served in this capacity at all times relevant to this litigation; further, Mr. Hines, if he chooses to run, faces reelection for his position on the Board of Directors at the general election to be held in November 2018. 22. Doris Wright is the duly elected representative to the Little Rock Board of Directors elected from Ward 6 of the City of Little Rock, Arkansas, and has served in this capacity at all times relevant to this litigation; further, Ms. Wright, if she chooses to run, faces reelection for her position on the Board of Directors at the general election to be held in November 2018. 23. B.J. Wyrick is the duly elected representative to the Little Rock Board of Directors elected from Ward 7 of the City of Little Rock, Arkansas, and has served in this capacity at all times relevant to this litigation; further, Ms. Wyrick, if she chooses to run, faces reelection for her position on the Board of Directors at the general election to be held in November 2018. 24. Dean Kumpuris is the duly elected at-large representative to the Little Rock Board of Directors for Position No. 8 of the City of Little Rock, Arkansas, and has served in this capacity at all times relevant to this litigation. 25. Gene Fortson is the duly elected at-large representative to the Little Rock Board of Directors for Position No. 9 of the City of Little Rock, Arkansas, and has served in this capacity at all times relevant to this litigation. 26. Joan Adcock is the duly elected at-large representative to the Little Rock Board of Directors for Position No. 10 of the City of Little Rock, Arkansas, and has served in this capacity at all times relevant to this litigation. Page 5 of 20
JURISDICTION AND VENUE 27. This Court has jurisdiction to consider a request for a declaratory judgment. Ark. Code Ann. 16-111-101; 16-111-102; 25-15-207; and Ark. R. Civ. P. 57. The Court's jurisdiction extends to the consideration of the validity or applicability of a rule, and declaratory relief may be rendered whether or not the plaintiff has requested the agency pass upon the validity or applicability of the rule in question. Ark. Code Ann. 25-15-207. See also, Ark. R. Civ. P. 57. 28. Pulaski County Circuit Court has jurisdiction over the Commission which has unlawfully, unreasonably, or capriciously failed, refused, or delayed action, regarding its refusal to act concerning the enforcement of the whole of subchapter 2 of chapter 6 of Title VII commonly known as the Arkansas Election Code regarding Campaign Practices and Campaign Finance. Ark. Code. Ann. 7-6-201 and pursuant to Ark. Code Ann. 25-15-214. 29. Administrative Regulation -- Ark. Admin. Code 153.00.2-252 violates Arkansas law because the Arkansas Ethics Commission has promulgated a regulation that exceeds the authority granted the Commission since the regulation is contrary to state statute. Ark. Code Ann. 7-6-216. 30. Administrative Regulation Ark. Admin. Code 153.00.2-252 -- violates Article II of the Arkansas Constitution because it denies equal protection of the law to incumbent elected officials seeking reelection. 31. The City has the right to enforce a City ordinance Little Rock, Ark., Rev. Code 2-387 (1988) which provides that a candidate for a municipal office cannot solicit or receive campaign contributions before June 1 prior to the general election for a City office. 32. Venue is proper in this Court pursuant to Ark. Code Ann. 16-111-101; 16-111-102 and 25-15-207. Page 6 of 20
FACTUAL BACKGROUND 33. In 1990, Initiated Act No. 1, popularly known as The Campaign Contribution Limits and Disclosure Act ( Initiated Act No. 1 ) was approved by the voters of Arkansas. 34. Section 6, Initiated Act No. 1 created the Arkansas Ethics Commission, and the provisions of this issue are so codified as Ark. Code Ann. 7-6-217. 35. Section 12 of Initiated Act No. 1, currently codified as Ark. Code Ann. 7-6-244 reads in relevant part as follows: Municipalities... shall have the authority to establish reasonable limitations on: (1) Time periods that candidates for local office shall be allowed to solicit contributions.... 36. On February 18, 1997, pursuant to the enabling authority granted in Ark. Code Ann. 7-6-224, the City passed Little Rock, Ark., Ordinance No. 17,408 which, among other things, limited the time frame to solicit and collect campaign contributions for municipal office [EXHIBIT 5]; this ordinance has since been codified as Little Rock, Ark., Rev. Code 2-387 (1988) ( the Campaign Finance Ordinance ) [EXHIBIT 6] and reads in relevant part as follows: Section 3. The following provisions shall apply to campaigns for municipal office: (a) Contributions to regular election campaigns for municipal office shall be limited to the period beginning June 1 immediately before the election and ending December 1 immediately after the election. Page 7 of 20
37. While there have been successful legal challenges to other portions of Ark. Code Ann. 7-6-224, subsection (a) has not been impacted. See Russell v. Burris, 978 F.Supp. 1211 (E.D. Ark. 1997), on appeal 146 F.3d 563 (8 th Cir. 1998). 38. At the 2018 general election, to be held on November 6, the position of Mayor and six ward members of the City Board of Directors will be elected. 39. Pursuant to the Campaign Finance Ordinance, the seven (7) sitting members of the City Board of Directors are not allowed to raise or solicit campaign funds until June 1, 2018. 40. On or about July 7, 2017, it was announced that Warwick Sabin would run for the position of Mayor of the City of Little Rock at the 2018 general election; further, Mr. Sabin noted that an exploratory committee would be created to solicit and collect campaign contributions for this effort. 41. On July 10, 2017, Mr. Sabin was sent a letter from the Office of the City Attorney for the City of Little Rock which, among other things, referenced the Campaign Finance Ordinance and included a copy of its provisions including the limitation on contribution solicitation or collection until June 1 of 2018 i.e., the year of the mayoral election. [EXHIBIT 7]. 42. On July 25, 2017, an Exploratory Committee Registration Form for the Sabin for Mayor Exploratory Committee was filed with the Pulaski Circuit Clerk [EXHIBIT 1]; Warwick Sabin was listed as the Chair of this Committee, and Cale Turner was listed as the Treasurer of this Committee; see also [EXHIBIT 8] (Webpage of sabinformayor.com). 43. On August 4, 2017, Mr. Eugene Clifford submitted a complaint to the City, and to the Commission, that Mr. Sabin was in violation of the Campaign Finance Ordinance. See [EXHIBIT 9]. Page 8 of 20
44. On August 25, 2017, in Matter No. 2017-CO-025 the Commission, through its executive director, mailed Mr. Sabin a letter stating that it did not consider the violation of the City s ordinance a violation of state campaign finance laws the Commission could enforce; this conclusion made no reference to the limitation on campaign contributions and solicitations contained in Ark. Code Ann. 7-6-224, nor did it even cite the statute. [EXHIBIT 10]. 45. On or about September 12, 2017, Mr. Frank Scott, Jr., announced that he intended to run as a candidate in the City mayoral election of 2018. 46. On September 22, 2017, an Exploratory Committee Registration Form for the Neighbors for Frank Scott, Jr. was filed with the Pulaski Circuit Clerk [EXHIBIT 11]; Darrin Williams is listed as the Chair of this Committee, with Gus Blass III as Vice-Chair, T.J. Boyle as Treasurer, and Ms. Annie Abrams as a member; see also [EXHBIT 12] (Webpage of www.frankscottjr.com). 47. On October 3, 2017, the Office of the City Attorney sent Mr. Scott a letter which outlined the fact the City had campaign finance rules, and included a copy of provisions of the Campaign Finance Ordinance. [EXHIBIT 13]. 48. On October 2, 2017, the City Board of Directors adopted Little Rock, Ark., Resolution No. 14,653 which, among other things, directed the Office of the City Attorney to seek an advisory opinion from the Arkansas Ethics Commission on the authority of a municipal government to set a more limited time period than state statutes for the solicitation or collection of campaign contributions. [EXHIBIT 14]. 49. On October 3, 2017, the City submitted a request for an advisory opinion to the Commission which asked, among other things, whether it is permissible for a candidate for municipal office to use an exploratory committee to accept contributions for a Little Rock Page 9 of 20
municipal election in violation of the provisions of the City s ordinance? If so, why? ; the request also noted that an answer was needed because of reliance of candidates in Commission Matter No. 2017-CV-025 which would allow an exploratory committee to ignore the restrictions in the City Campaign Finance Ordinance. [EXHIBIT 15]. 50. On October 20, 2017, in Matter No. 2017-EC-003 the Commission, through its executive director, sent the City a letter containing an Advisory Opinion of the Commission that held it did not have jurisdiction to consider the impact of the Campaign Finance Ordinance notwithstanding the fact that state statute enabled the City with authority to pass such an ordinance, and also gave the Commission jurisdiction over all matters included in Subchapter 6 of the relevant state statute which included, among other things, the definition of an exploratory committee, the time frame for such a committee generally to solicit and accept campaign contributions on behalf of a candidate for a particular office, and the authority of a local government pursuant to Ark. Code Ann. 7-6-224 to set a more restrictive time frame on the solicitation and collection of campaign contributions. [EXHIBIT 16]. 51. The Neighbors for Frank Scott, Jr., according to a December 29, 2017, timely filed campaign report, show that funds continue to be solicited and collected for Mr. Scott in violation of the Campaign Finance Ordinance passed pursuant to Ark. Code Ann. 7-6-224. [EXHIBIT 4]. 52. The Sabin for Mayor Exploratory Committee, through its website, continues to solicit and collect campaign contributions in violation of the Campaign Finance Ordinance passed pursuant to Ark. Code Ann. 7-6-224. [EXHIBIT 2]. According to an Exploratory Committee Contribution and Expenditure Report filed with the Pulaski County Clerk on January 2, 2018, the Sabin for Mayor Exploratory Committee has collected a least $119,895.00 for Mr. Sabin s mayoral candidacy at the time this Complaint is filed. [EXHIBIT 2] Page 10 of 20
STATUTES AND ADMINISTRATIVE REGULATIONS RELEVANT TO THE REQUEST FOR DECLARATORY RELIEF 53. On the issue of equal protection of the laws, the Arkansas Constitution provides the following in Article II, 3: The equality of all persons before the law is recognized, and shall ever remain inviolate; nor shall any citizen ever be deprived of any right, privilege or immunity, nor exempted from any burden or duty, on account of race, color or previous condition. 54. The state statute which defines a candidate for election purposes reads in relevant part as follows:... any individual who has knowingly and willingly taken affirmation action, including solicitation of funds, for the purpose of seeking... election to any public office. Ark. Code Ann. 7-6-201 (2) (West Supp. 2016) [emphasis added]. 55. The state statute which defines a contribution to a candidate for election purposes reads in relevant part as follows:... whether direct or indirect, advances, deposits, or transfers of funds, contracts, or obligations, whether or not legally enforceable, payments, gifts, subscriptions, assessments, payment for services, dues, advancements, forbearance, loans, or pledges or promises of money or anything of value, whether or not legally enforceable, to a candidate, committee, holder of elective office made for the purpose of influencing... election of any candidate. Ark. Code Ann. 7-6-201 (4) (A) (West Supp. 2016) [emphasis added]. Page 11 of 20
56. The state statute which defines person for purposes of election or campaign finance provisions reads in relevant part as follows:... any individual, proprietorship, firm, partnership, joint venture, syndicate, labor union, business trust, company, corporation, association, committee, or any other organization or group of organizations acting in concert. Ark. Code Ann. 7-6-201 (14) (A) (West Supp. 2016) [emphasis added]. 57. The state statute which defines an exploratory committee for election purposes reads in relevant part as follows:... a person that receives contributions which are held to be transferred to the campaign of a single candidate in an election. Ark. Code Ann. 7-6-201 (9) (A) (West Supp. 2016) [emphasis added]. 58. Nothing in the language of state campaign and election statutes prohibits an incumbent from having both an exploratory committee for reelection and a campaign committee to deal with funds from a prior election. 59. However, the Arkansas Ethics Commission has adopted a regulation codified at Ark. Admin. Code 153.00.2-252 which in relevant part reads as follows: (d) An exploratory committee may be formed on a candidate s behalf even if the candidate is presently an officeholder and has an existing campaign fund. The exploratory committee must not be formed for the same office as currently held by the officeholder. The monies which make up the existing campaign fund relate to a prior election. Funds contributed Page 12 of 20
to an exploratory committee will apply toward contribution limits of the election for which the exploratory committee was formed and are exclusive from funds already maintained in an officeholder account. [Emphasis added]. 60. The state statute which does impose some restrictions on the creation and operation of an exploratory committee reads in relevant part as follows: It shall be unlawful for any candidate for public office, any person acting in the candidate s behalf, or any exploratory committee to solicit or accept campaign contributions more than two (2) years before an election at which the candidates seeks... election.... Ark. Code Ann. 7-6-203 (e) (West Supp. 2016). 61. However, for purposes of campaign financing and contributions, state law provides the following: Municipalities... shall have the authority to establish reasonable limitations on: (1) Time periods that candidates for local office shall be allowed to solicit contributions.... Ark. Code Ann. 7-6-224 (West 2014) [emphasis added]. 62. The state statute which does impose some restrictions on the creation and operation of an exploratory committee reads in relevant part as follows: (9)(A) Exploratory committee means a person that receives contributions which are held to be transferred to the campaign of a single candidate in an election. Page 13 of 20
(B) Exploratory committee shall not include: (i) A political party: (a) That meets the definition of a political party under 7-1-101; or (b) A political party that meets the requirements of 7-7-205; or (ii) The candidate s own campaign committee; Ark. Code Ann. 7-6-201 (9) (a) (b) (West Supp. 2016) [emphasis added]. 63. The state statute which creates the Arkansas Ethics Commission sets the authority of the Commission in relevant part as follows: (g) The commission shall have the authority to: (1) Under the Arkansas Administrative Procedure Act... promulgate reasonable rules to implement and administer the requirements of this subchapter, as well as the Disclosure Act for Public Initiatives, Referenda, and Measures Referred to Voters... the Disclosure Act for Lobbyists and State and Local Officials... and Arkansas Constitution, Article 19 28-30; and to govern procedures before the commission, matters of commission operations, and all investigative and disciplinary procedures and proceedings; (2) Issue advisory opinions and guidelines on the requirements of 7-1-103 (a) (1) (4), (6) and (7); this subchapter; the Disclosure Act for Public Initiatives, Referenda, and Measures Referred to Voters... the Page 14 of 20
Disclosure Act for Lobbyists and State and Local Officials... and Arkansas Constitution, Article 19, 28-30; (3) After a citizen complaint has been submitted to the commission, investigate alleged violations of 7-1-103 (a) (1) (4), (6) and (7); this subchapter; the Disclosure Act for Public Initiatives, Referenda, and Measures Referred to Voters... the Disclosure Act for Lobbyists and State and Local Officials... and Arkansas Constitution, Article 19, 28-30; and render findings and disciplinary action thereon.... Ark. Code Ann. 7-6-217 (g) (West Supp. 2016) [emphasis added]. 64. The state statute also grants authority to sue the commission in relevant part as follows: (D) (i) Report its finding, along with such information and documents as it deems appropriate, and make recommendations to the proper law enforcement authorities. Ark. Code Ann. 7-6-218 (D) (i) (West Supp. 2016). COUNT I: The Court must declare that the Commission, for consistency and uniformity of State law, has the authority to enforce the whole of subchapter 2 of chapter 6 of the laws Arkansas Election Code regarding Campaign Practices and Campaign Finance. Ark. Code. Ann. 7-6-203, 217, 218 and 224. A. The Commission shall reference and enforce local ordinance s which set a more strict time frame for the solicitation or collection of campaign contributions in accordance with Ark. Code Ann. 7-6-224 (1). Page 15 of 20
65. In Matter No. 2017-CO-025 and in Matter No. 2017-EC-003 the Commission concluded that it did not have any enforcement authority over a City ordinance, therefore only the two year time frame for an exploratory committee to solicit or collect campaign contributions applied as set forth in Ark. Code Ann. 7-6-203 (e). 66. However, state law grants the Commission broad authority over the entirety of Title VII, Chapter 6, Subchapter 2. 67. A specific provision of Chapter 6, Subchapter 2 provides in part that a municipality, for purposes of municipal elections only, can set a more restrictive time frame for the solicitation or collection of campaign contributions. Ark. Code Ann. 7-6-224 (1). 68. With the adoption of the Campaign Finance Ordinance, the City adopted a more restrictive time frame for City elections and campaign contributions cannot be solicited or collected prior to June 1 before the general election which is relevant in this matter. 69. The default of the Commission as set forth in Matter No. 2017-CO-025 was an illegal negation of its responsibilities and tantamount to and exhaustion of administrative remedies. 70. This Court should declare that the Commission not only has the authority, but the duty, to determine whether the two-year time frame set forth in Ark. Code Ann. 7-6-203 (e) is subject to a shorter period of time if a proper ordinance has been enacted pursuant to Ark. Code Ann. 7-6-224, and if so, to issue an appropriate sanction to any and all parties who have violated the state and local campaign finance laws. 71. There is no legal distinction between a candidate who uses an exploratory committee to collect funds for a state election three years before the general election which is forbidden by Ark. Code Ann. 7-6-203 (e) - and a candidate who allows an exploratory committee Page 16 of 20
to collect funds for a municipal election in violation of a statutorily authorized local ordinance which sets a more restrictive time frame for the solicitation or collection of such funds. B. The Commission regulation, which prohibits use of a statutory exploratory committee by an incumbent to consider reelection, violates the Equal Protection Provision of Article II of the Arkansas Constitution and must be declared invalid. 72. The City incorporates and re-alleges Paragraphs 1 through 71 above as and for Paragraph No.72 of Count II of this Complaint. 73. Article II, 3 of the Arkansas Constitution expressly provides that before the law all persons are equal. 74. However, Ark. Admin. Code 153.00.2-252 treats incumbents and challengers differently and provides no legal basis for doing so; indeed, in terms of the City Campaign Finance Ordinance, the regulation of the Commission precludes the solicitation or collection of campaign contributions by incumbent City officials facing election while one challenger almost seven months before the June 1, 2018 date to start collecting such funds has almost $120,000.00 in contributions. See [EXHIBIT 2 (Sabin for Mayor Exploratory Committee had collected $119,895.00 by November 30, 2017)]. 75. The Commission contends that it is perfectly proper for a challenger to be able to collect campaign contributions against an incumbent City official for two years even though the Campaign Finance Ordinance prohibits such solicitation or collection of campaign funds until June 1, 2018, for the upcoming 2018 general election. 76. As a result, Ark. Admin. Code 153.00.2-252 and the opinions of the Commission to the contrary violate Article II, 3 of the Arkansas Constitution and must be stricken. Page 17 of 20
C. The Commission regulation which prohibits use of a statutory exploratory committee by an incumbent to consider reelection exceeds the Commission s authority and must be declared invalid. 77. The Commission is granted authority to promulgate necessary rules and regulations to implement Subchapter 2 of Chapter 6 of Title VII to the Arkansas Code Annotated as set forth in Ark. Code Ann. 7-6-217 (g). 78. Nothing in the statutory authority permits the Commission to adopt a regulation that is directly contrary to the unambiguous language of the statutes. 79. Notwithstanding this limitation on its authority, the Commission has adopted Ark. Admin. Code 153.00.2-252 which includes the provision that an exploratory committee cannot be created by an incumbent office holder to consider reelection to that office. ( The exploratory committee must not be formed for the same office as currently held by the officeholder. ) 80. The statutory definition of a candidate applies to any person, and not just to someone who does not presently hold a particular public office; further, the statutory definition of exploratory committee applies to a candidate and does not limit its application to incumbents or challengers. 81. As a result, the Commission acted ultra vires and exceeded its authority with the adoption of Ark. Admin. Code 153.00.2-252 to the extent that it precludes the use of an exploratory committee by an incumbent officeholder and this part of the regulation must be stricken. REMEDIES 82. The City requests the following remedies: (a) A declaration that the Commission has the authority to assert that the statutory time frame for the solicitation of collection of campaign Page 18 of 20
contributions by an exploratory committee must be determined by a joint reading of Ark. Code Ann. 7-6-203 (e) and reading Ark. Code Ann. 7-6-224, as well as any applicable local ordinance which sets a more restrictive time frame; (b) A declaration that the Commission, if it determines that there is a violation of a local ordinance when read jointly with Ark. Code Ann. 7-6-203 (e) and Ark. Code Ann. 7-6-224, has the authority to take appropriate action against any person or exploratory committee that has committed such a violation using the enforcement powers provided in Ark. Code Ann. 7-6-217; -218. (c) A declaration of law that Ark. Admin. Code 153.00.2-252 is ultra vires and violates the law because the Commission has imposed a requirement not found in an unambiguous statute which, under Arkansas law, it is not permitted to do; (d) A declaration that Ark. Admin. Code 153.00.2-252 violates the Equal Protection provision of Article II of the Arkansas Constitution to the extent that it precludes incumbents from access to an exploratory committee to consider the possibility of reelection attempts and must be stricken; WHEREFORE, premises considered, the City prays that this Court grant a declaratory judgment as set forth above, and all other just and equitable relief to which it may be entitled; that the City be granted the right to amend to add any additional candidates or exploratory committees that may arise during the pendency of this action; further, that this Court treat this matter as an Page 19 of 20
election matter and expedite its consideration and placement on the Court s docket. Respectfully submitted, OFFICE OF THE CITY ATTORNEY 500 West Markham, Suite 310 Little Rock, Arkansas 72201 (501) 371-4527 By: /s/ Thomas M. Carpenter Arkansas Identification Number 77024 By: /s/ William C. Mann, III Arkansas Identification Number 79199 By: /s/ Rick D. Hogan Arkansas Identification Number 83084 By: /s/ Alex Betton Arkansas Identification Number 2009275 Page 20 of 20