SB1516 - 502R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 38-541, Arizona Revised Statutes, is amended to read:

START_STATUTE38-541. Definitions

In this chapter, unless the context otherwise requires:

1. "Business" includes any enterprise, organization, trade, occupation or profession, whether or not operated as a legal entity or for profit, including any business trust, corporation, partnership, joint venture or sole proprietorship.

2. "Compensation" means anything of value or advantage, present or prospective, including the forgiveness of debt.

3. "Controlled business" means any business in which the public officer or any member of his household has an ownership or beneficial interest, individually or combined, amounting to more than a fifty per cent interest.

4. "Dependent business" means any business in which the public officer or any member of his household has an ownership or beneficial interest, individually or combined, amounting to more than a ten per cent interest, and during the preceding calendar year the business received from a single source more than ten thousand dollars and more than fifty per cent of its gross income.

5. "Gift" includes any gratuity, special discount, favor, hospitality, service, economic opportunity, loan or other benefit received without equivalent consideration and not provided to members of the public at large. For the purposes of disclosure by members of the legislature, gift includes any item prescribed by this paragraph that is more than ten dollars in value.

6. "Local public officer" means a person holding an elective office of an incorporated city or town, a county or a groundwater replenishment district established under title 48, chapter 27.

7. "Member of household" means a public officer's spouse and any minor child of whom the public officer has legal custody.

8. "Public officer" means a member of the legislature and any judge of the court of appeals or the superior court, or a person holding an elective office the constituency of which embraces the entire geographical limits of this state. Members of Congress are not public officers as defined in this paragraph. END_STATUTE

Sec. 2. Section 41-1231, Arizona Revised Statutes, is amended to read:

START_STATUTE41-1231. Definitions

In this article, unless the context otherwise requires:

1. "Authorized lobbyist" means any person, other than a designated lobbyist or lobbyist for compensation, who is employed by, retained by or representing a principal with or without compensation for the purpose of lobbying and who is listed as an authorized lobbyist by the principal in its registration pursuant to section 41‑1232.

2. "Authorized public lobbyist" means a person, other than a designated public lobbyist, who is employed by, retained by or representing a public body, with or without compensation, for the purpose of lobbying and who is listed as an authorized public lobbyist by the public body in its registration pursuant to section 41‑1232.01.

3. "Designated lobbyist" means the person who is designated by a principal as the single point of contact for the principal and who is listed as the designated lobbyist by the principal in its registration pursuant to section 41‑1232.

4. "Designated public lobbyist" means the person who is designated by a public body as the single point of contact for the public body and who is listed as the designated public lobbyist by the public body in its registration pursuant to section 41‑1232.01.

5. "Entertainment" means the amount of any expenditure paid or incurred for admission to any sporting or cultural event or for participation in any sporting or cultural activity.

6. "Expenditure" means a payment, distribution, loan, advance, deposit or gift of money or anything of value and includes a contract, promise or agreement, whether or not legally enforceable, to make an expenditure that provides a benefit to an individual state officer or state employee and that is incurred by or on behalf of one or more principals, public bodies, lobbyists, designated public lobbyists or authorized public lobbyists.

7. "Family gift" means a gift to a state officer or employee or a member of the officer's or employee's household from a principal, lobbyist, designated public lobbyist or authorized public lobbyist who is a relative of the state officer or employee or a member of the household of the state officer or employee if the donor is not acting as the agent or intermediary for someone other than a person covered by this paragraph.

8. "Food or beverage" means the amount of any expenditure paid or incurred for food or beverages for a state officer or employee provided at a location at which the principal, public body, lobbyist, designated public lobbyist or authorized public lobbyist who made the expenditure is present.

9. "Gift" means a payment, distribution, expenditure, advance, deposit or donation of money, any intangible personal property or any kind of tangible personal or real property. For purposes of this article gift does not include:

(a) A gift, devise or inheritance from an individual's spouse, child, parent, grandparent, grandchild, brother, sister, parent‑in‑law, brother‑in‑law, sister‑in‑law, nephew, niece, aunt, uncle or first cousin or the spouse of any such individual if the donor is not acting as the agent or intermediary for someone other than a person covered by this subdivision.

(b) Expenditures which are either properly reported or exempt from reporting under this chapter for:

(i) A speaking engagement.

(ii) Food or beverages.

(iii) Travel and lodging.

(iv) Flowers.

(d) The value, cost or price of professional or consulting services that are not rendered to obtain a benefit for any registered principal, public body, lobbyist, designated public lobbyist or authorized public lobbyist or the clients of a principal or lobbyist.

(e) Expenses relating to a special event or function to which all members of the legislature, either house of the legislature or any committee of the legislature are invited.

(f) A plaque or other form of recognition similar to a plaque to a state officer or state employee to signify the honorary recognition of a service or other notable accomplishment.

(g) Informational material such as books, reports, pamphlets, calendars or periodicals.

(h) An item that is not used and that is returned within fifteen days of receipt to the donor or that is delivered within fifteen days of receipt to a charitable organization and that is not claimed as a charitable contribution for state or federal income tax purposes.

(i) A campaign contribution that is properly received and reported as required by law.

(j) An item that is given to a state officer or employee if the state officer or employee gives an item of approximately the same value to the giver of the item at the same time that the item is given or on a similar occasion as the one that prompted the original item to be given.

(k) Gifts of a personal nature that were customarily received by an individual from the donor before the individual became a state officer or employee.

(l) An item that is given to the general public at an event.

10. "Legislation" means bills, resolutions, memorials, amendments, nominations and other matters that are pending or proposed in either house of the legislature of this state or for the purposes of bonding lobbying for any matter pending or proposed before a school district governing board.

11. "Lobbying" means attempting to influence the passage or defeat of any legislation by directly communicating with any legislator, or in the case of bonding, lobbyists directly communicating with any school district employee or a school district governing board member or attempting to influence any formal rule making proceeding pursuant to chapter 6 of this title or rule making proceedings that are exempt from chapter 6 of this title by directly communicating with any state officer or employee. Lobbying does not include:

(a) Interagency communications between state agency employees.

(b) Communications between a public official or employee of a public body, designated public lobbyist or authorized public lobbyist and any state officer, except for a member of the legislature, or an employee of the legislature.

(c) Oral questions or comments made by a person to a state officer or employee regarding a proposed rule and made in public at a meeting or workshop that is open to the public and that is sponsored by a state agency, board, commission, council or office.

12. "Lobbyist" means any person, other than a designated public lobbyist or authorized public lobbyist, who is employed by, retained by or representing a person other than himself, with or without compensation, for the purpose of lobbying and who is listed as a lobbyist by the principal in its registration pursuant to section 41‑1232. Lobbyist includes a lobbyist for compensation, designated lobbyist and authorized lobbyist. Lobbyist includes attorneys whose practice involves bonding, underwriters of bonds and investment bankers whose business includes bonding.

13. "Lobbyist for compensation" means a lobbyist who is compensated for the primary purpose of lobbying on behalf of a principal and who is listed by the principal in its registration pursuant to section 41‑1232.

14. "Person" means an individual, partnership, committee, association or corporation and any other organization or group of persons, except legislators and political parties qualified for representation on the ballot pursuant to section 16‑801 or 16‑804.

15. "Personal hospitality" means hospitality, meals, beverages, transportation or lodging furnished but not commercially provided by a person on property or facilities owned or possessed by the person or the person's family.

16. "Principal" means any person, other than a public body, that employs, retains, engages or uses, with or without compensation, a lobbyist. Principal includes any subsidiary of a corporation.

17. "Public body" means the Arizona board of regents, a university under the jurisdiction of the Arizona board of regents, the judicial department, any state agency, board, commission or council, any county, any county elected officer who elects to appoint a designated public lobbyist or any city, town, district or other political subdivision of this state that receives and utilizes tax revenues and that employs, retains, engages or uses, with or without compensation, a designated public lobbyist or authorized public lobbyist.

18. "Public official" means a person who is duly elected, appointed or retained through election to an elected state, county or local office.

19. "Single expenditure" means an expenditure that provides a benefit of more than twenty dollars to an individual state officer or state employee and that is incurred by or on behalf of one or more principals, public bodies, lobbyists, designated public lobbyists or authorized public lobbyists.

20. "Speaking engagement":

(a) Means the amount of any expense paid or incurred for entrance fees, lodging, food and beverage, entertainment, travel and other expenses for the state officer's or employee's attendance at an event, committee, meeting, conference or seminar, including meetings of state, regional or national organizations or their committees concerned with legislative or governmental activities if the state officer or employee participates in the event as a speaker or panel participant by presenting information relating to the state officer's or employee's legislative or official duties or by performing a ceremonial function appropriate to the state officer's or employee's position.

(b) Does not include expenditures for an honorarium or any other similar fee paid to a speaker.

21. "State employee" means an employee of the legislature, a university under the jurisdiction of the Arizona board of regents, the judicial department or a state office, agency, board, commission or council.

22. "State officer" means a person who is duly elected, appointed or retained through election to any state office, or a member of any state board, commission or council, and includes a member of the legislature. END_STATUTE

Sec. 3. Section 41-1232.02, Arizona Revised Statutes, is amended to read:

START_STATUTE41-1232.02. Expenditure reporting; principals and lobbyists; gifts

A. Each principal shall report annually all single expenditures, whether or not the expenditures were made in the course of lobbying. These single expenditures shall be itemized separately, and each itemization shall include the date of the expenditure, the amount of the expenditure, the name of each state officer or employee receiving or benefitting from the expenditure, the category of a specific description of the benefit given by way of the expenditure and the name of the lobbyist or other person who made the expenditure on behalf of the principal. In addition each principal shall report annually the aggregate of all expenditures of twenty dollars or less received by or benefitting a state officer or employee, whether or not the expenditures were made in the course of lobbying. The report shall be filed by March 1 and shall list the annual expenditures made on behalf of the principal. If March 1 is a Saturday, Sunday or other legal holiday, the report shall be filed on the next business day.

B. Each lobbyist for compensation and designated lobbyist shall report quarterly daily all single expenditures incurred in the preceding calendar quarter day by the lobbyist for compensation or designated lobbyist, whether or not the single expenditures were made in the course of lobbying. These single expenditures shall be itemized separately, and each itemization shall include the date of the expenditure, the amount of the expenditure, the name of the state officer or employee receiving or benefitting from the expenditure, the category a specific description of the benefit given by way of the expenditure and the principal on whose behalf the expenditure was made. If the expenditure was made by the lobbyist and was not made on behalf of a principal, it shall be itemized separately. The quarterly daily report shall be filed no later than the last next calendar day of the month following the end of the calendar quarter, day that the benefit was received. unless the last day of the month is a Saturday, Sunday or other legal holiday. In that case, the report shall be filed on the next business day.

C. Each lobbyist for compensation and designated lobbyist shall also report quarterly monthly the aggregate of all expenditures of twenty dollars or less received by or benefitting a state officer or employee, whether or not the expenditures were made in the course of lobbying. The report shall list separately the aggregate of expenditures made on behalf of each principal and the aggregate not made on behalf of any principal. In the fourth calendar quarter, these expenditures first monthly filing of the calendar year, each lobbyist for compensation and designated lobbyist shall aggregate all expenditures that were received by or benefitted a member of the legislature in the preceding calendar year and shall also be listed list those expenditures by cumulative total for the calendar year. Each quarterly monthly lobbyist report shall include all reportable expenditures made by any employee of the lobbyist for compensation or designated lobbyist, regardless of whether that employee is listed as a lobbyist on any registration filed by a principal engaging the lobbyist. The quarterly monthly report shall be filed no later than the last day of the month following the end of the preceding calendar quarter month, unless the last day of the month is a Saturday, Sunday or other legal holiday. In that case, the report shall be filed the next business day.

D. The reports required by subsections A and B of this section shall identify each single expenditure according to the following categories: if the expenditure or benefit has a total value of more than ten dollars and shall itemize each expenditure or other benefit given. If the total expenditure is more than fifty dollars and benefited more than five legislators, the expenditure shall be reported and legislators identified without regard to whether less than ten dollars of expenditure was made for the benefit of any one legislator. The identification of the expenditure shall not be by category but shall be a SPECIFIC description of the exact item purchased or benefit conveyed and in an exact dollar amount.

1. Food or beverages.

2. Speaking engagement.

3. Travel and lodging.

4. Flowers.

5. Other expenditures.

E. Expenditures by principals and lobbyists such as those for the lobbyist's personal sustenance, office expenses, filing fees, legal fees, employees' compensation, lodging and travel are not required to be reported. In addition, expenditures by a principal or a lobbyist for family gifts, personal hospitality or those items excluded from the definition of gift pursuant to section 41‑1231, paragraph 9, subdivision (a), (c), (d), (f), (g), (h), (i), (j), (k) or (l) are not required to be reported.

F. All expenditures incurred by a principal or lobbyist in the case of special events for legislators, including parties, dinners, athletic events, entertainment and other functions, to which all members of the legislature, either house of the legislature or any committee of the legislature are invited shall be reported with a separate subtotal for expenditures made in each of the categories of food and beverage, travel, lodging, registration fees, entertainment and other. Expenditures are not required to be allocated to individual legislators, but for each such event a description of the event and the date, location, name of the legislative body invited and total expenditures incurred shall be reported. Expenditures for special events held in conjunction with state, national or regional meetings of an organization or association concerned or dealing with legislative or other governmental activities to which all state officers or state employees in attendance at such event are invited shall be reported in the same manner.

G. All information required to be filed pursuant to this section with the secretary of state shall be filed in that office and preserved by the secretary of state for five years from the date of filing, after which time the information shall be destroyed. The information is a public record and open to public inspection. The secretary of state shall provide a system for internet‑based filing of expenditure reports and shall also provide for publicly‑accessible internet posting of those reports in a format that is searchable at least by the name of the person making the expenditure and by the name of the person benefitting from the expenditure.

H. If a principal, lobbyist for compensation or designated lobbyist makes no expenditures that it would otherwise be required to report during a specified reporting period, the principal, lobbyist for compensation or designated lobbyist may sign a notarized form prescribed by the secretary of state indicating that there were no expenditures during the specific reporting period.

I. A person or organization shall not make a gift to or an expenditure on behalf of a state officer or employee through another person or organization for the purpose of disguising the identity of the person making the gift or expenditure.

J. A principal or lobbyist or any other person acting on behalf of a principal or lobbyist shall not give to any state officer or state employee and a state officer or state employee shall not accept from a principal or lobbyist either of the following:

1. Gifts with a total value of more than ten dollars during any calendar year.

2. Gifts that are designed to influence the state officer's or state employee's official conduct. END_STATUTE

Sec. 4. Section 41-1232.03, Arizona Revised Statutes, is amended to read:

START_STATUTE41-1232.03. Expenditure reporting; public bodies and public lobbyists; gifts

A. Each public body shall report annually all single expenditures received by or benefitting a member of the legislature whether or not the expenditures were made in the course of lobbying. These expenditures shall be itemized separately, and each itemization shall include the date of the expenditure, the amount of the expenditure, the name of each member of the legislature receiving or benefitting from the expenditure, the category of a specific description of the benefit given by way of the expenditure and the name of the designated public lobbyist or authorized public lobbyist who made the expenditure on behalf of the public body. In addition each public body shall report annually the aggregate of all expenditures of twenty dollars or less received by or benefitting a member of the legislature, whether or not the expenditures were made in the course of lobbying. The report shall list all expenditures by the public body made in the course of lobbying for the personal sustenance, filing fee, legal fees, employees' compensation, meals, lodging and travel of the designated public lobbyist and all authorized public lobbyists employed or retained by, and representing, the public body. The public body shall apportion expenditures that are attributable both to lobbying and to other activities of the public body and shall report only the portion attributable to lobbying. For the purpose of reporting employee compensation, a public body, on establishing a time allocation schedule for apportioned lobbying activity based on actual experience under this article, may submit after the 1993 calendar year an affidavit to the secretary of state stating the compensation attributable to lobbying for subsequent years for the designated public lobbyist and all authorized public lobbyists whose job responsibilities have not been significantly altered since the time allocation schedule was established. The report shall be filed by March 1 and shall list the annual expenditures made on behalf of the public body. If March 1 is a Saturday, Sunday or other legal holiday, the report shall be filed on the next business day.

B. Each designated public lobbyist shall report quarterly daily all single expenditures received by or benefitting a member of the legislature and incurred in the preceding calendar quarter day by the designated public lobbyist, whether or not the single expenditures were made in the course of lobbying. Each designated public lobbyist's report shall also include all single expenditures incurred in the preceding calendar quarter day by each authorized public lobbyist who is registered pursuant to section 41‑1232.01 by the same public body that registered the designated public lobbyist. This subsection does not apply to an expenditure that was made by a designated public lobbyist or authorized public lobbyist and that was received by or benefitted an employee of a public body, if the employee is not a member or employee of the legislature or a member of the household of a member or employee of the legislature. These expenditures shall be itemized separately, and each itemization shall include the date of the expenditure, the amount of the expenditure, the name of the member or employee receiving or benefitting from the expenditure, the category of the expenditure a specific description of the benefit given by way of the expenditure and the public body on whose behalf the expenditure was made. If the expenditure was made by the designated public lobbyist or authorized public lobbyist and was not made on behalf of a public body, it shall be itemized separately. The quarterly daily report shall be filed no later than the last next calendar day of the month following the end of the calendar day that the benefit was received. quarter, unless the last day of the month is a Saturday, Sunday or other legal holiday. In that case, the report shall be filed on the next business day.

C. Each designated public lobbyist shall also report quarterly monthly the aggregate of all expenditures of twenty dollars or less received by or benefitting a member of the legislature, whether or not the expenditures were made in the course of lobbying. Each designated public lobbyist's report shall also include the aggregate of all expenditures of twenty dollars or less that were received by or benefitted a member of the legislature and that were made by an authorized public lobbyist who is registered pursuant to section 41‑1232.01 by the same public body that registered the designated public lobbyist. This subsection does not apply to an expenditure that was made by a designated public lobbyist or authorized public lobbyist and that was received by or benefitted an employee of a public body, if the employee is not a member or employee of the legislature or a member of the household of a member or employee of the legislature. The report shall list separately the aggregate of expenditures made on behalf of each public body and the aggregate not made on behalf of any public body. In the fourth calendar quarter, these expenditures first monthly filing of the calendar year, each designated public lobbyist shall aggregate all expenditures that were received by or benefitted a member of the legislature in the preceding calendar year and shall also be listed list those expenditures by cumulative total for the calendar year. Each quarterly monthly lobbyist report shall include all reportable expenditures made by any employee of the designated public lobbyist or authorized public lobbyist, regardless of whether that employee is listed as a designated public lobbyist or authorized public lobbyist on any registration filed by a public body engaging the designated public lobbyist or authorized public lobbyist. The quarterly monthly report shall be filed no later than the last day of the month following the end of the preceding calendar quarter month, unless the last day of the month is a Saturday, Sunday or other legal holiday. In that case, the report shall be filed on the next business day.

D. The reports required by subsections A and B of this section shall identify the nature of each single expenditure according to the following categories: if the expenditure or benefit has a total value of more than ten dollars and shall itemize each expenditure or other benefit given. If the total expenditure is more than fifty dollars and benefited more than five legislators, the expenditure shall be reported and legislators identified without regard to whether less than ten dollars of expenditure was made for the benefit of any one legislator. The identification of the expenditure shall not be by category but shall be a specific description of the exact item purchased or benefit conveyed and in an exact dollar amount.

1. Food or beverages.

2. Speaking engagement.

3. Travel and lodging.

4. Flowers.

5. Other expenditures.

E. Expenditures by a public body, designated public lobbyist or authorized public lobbyist for personal sustenance, and family gifts, personal hospitality or those items excluded from the definition of gift pursuant to section 41‑1231, paragraph 9, subdivision (a), (c), (d), (f), (g), (h), (i), (j), (k) or (l) are not required to be reported.

F. All expenditures incurred by a public body, designated public lobbyist or authorized public lobbyist in the case of special events for legislators, including parties, dinners, athletic events, entertainment and other functions, to which all members of the legislature, either house of the legislature or any committee of the legislature are invited shall be reported. Expenditures are not required to be allocated to individual legislators, but for each such event a description of the event and the date, location, name of the legislative body invited and total expenditures incurred shall be reported with a separate subtotal for expenditures itemized in each of the categories of food and beverage, travel, lodging, registration fees, entertainment and other. Expenditures for special events held in conjunction with state, national or regional meetings of an organization or association concerned or dealing with legislative or other governmental activities to which all members or employees of the legislature in attendance at such event are invited shall be reported in the same manner.

G. All information required to be filed pursuant to this section with the secretary of state shall be filed in that office and preserved by the secretary of state for five years from the date of filing, after which time the information shall be destroyed. The information is a public record and open to public inspection. The secretary of state shall provide a system for internet‑based filing of expenditure reports and shall also provide for publicly-accessible internet posting of those reports in a format that is searchable at least by the name of the person making the expenditure and by the name of the person benefitting from the expenditure.

H. If a public body or designated public lobbyist makes no expenditures that it would otherwise be required to report during a specified reporting period, the public body or designated public lobbyist may sign a notarized form prescribed by the secretary of state indicating that there were no expenditures during the specific reporting period.

I. A person or organization shall not make a gift to or an expenditure on behalf of a member or employee of the legislature through another person or organization for the purpose of disguising the identity of the person making the gift or expenditure.

J. A public body, designated public lobbyist or authorized public lobbyist or any other person acting on behalf of a public body, designated public lobbyist or authorized public lobbyist shall not give to any member of the legislature and a member of the legislature shall not accept from a public body, designated public lobbyist or authorized public lobbyist either of the following:

1. Gifts with a total value of more than ten dollars during any calendar year.

2. Gifts that are designed to influence the member's or employee's official conduct.

K. Subsection J of this section does not apply to gifts given by a public body, designated public lobbyist or authorized public lobbyist to an employee of a public body, if the employee is not a public official or a member of the household of a public official or if the gift is accepted on behalf of the public body and remains the property of the public body. END_STATUTE

Sec. 5. Title 41, chapter 7, article 8.1, Arizona Revised Statutes, is amended by adding section 41-1232.09, to read:

START_STATUTE41-1232.09. Reports by legislators; electronic filing

A. Each legislator shall report daily all expenditures received by or benefitting that legislator from any lobbyist who is required to be registered pursuant to this article. These expenditures shall be itemized separately, and each itemization shall include the date of the expenditure, the amount of the expenditure, the name of the person giving or providing the benefit from the expenditure and a specific description of the benefit given if the benefit has a total value of more than ten dollars, and the report shall itemize each expenditure or other benefit received. The identification of the expenditure shall not be by category but shall be a specific description of the exact item received or benefit conveyed and in an exact dollar amount.

B. Beginning on the effective date of this section, the secretary of state shall provide a system for internet-based filing of recipient reports by legislators and shall also provide for publicly-accessible internet posting of those reports in a format that is searchable at least by the name of the person making the expenditure and by the name of the person benefitting from the expenditure. END_STATUTE

Sec. 6. Title 41, chapter 7, article 8.1, Arizona Revised Statutes, is amended by adding section 41-1237.02, to read:

START_STATUTE41-1237.02. Reporting violation; notice of violation; civil penalties; suspension

A. If the secretary of state determines that a person is in violation of the reporting requirements of this article, the secretary of state may do the following:

1. If the required report is late by seven days or more, the secretary of state may send the person a notice of violation stating the specific violation and the time for compliance.

2. If the required report is not filed within seven days after the notice of violation is issued, the secretary of state may impose a civil penalty of fifty dollars for each day the report is overdue, beginning with the first day after which the report was originally due and continuing until the report is filed and the penalty paid..

B. The secretary of state shall transmit the civil penalty order to the person by certified mail, return receipt requested or by hand delivery. The civil penalty order is enforceable within thirty days after the receipt of the order unless the person requests a hearing before the secretary of state or an administrative law judge designated by the secretary of state. At the request of the secretary of state, the attorney general shall file an action in superior court to enforce civil penalty orders issued pursuant to this section after an order becomes final.

C. On failure or refusal to pay a civil penalty imposed pursuant to this section, the secretary of state may suspend the registration of a person required to be registered pursuant to this article. END_STATUTE

Sec. 7. Lobbying and financial disclosure study committee; members; report; repeal

A. The lobbying and financial disclosure study committee is established consisting of the following members:

1. Three members of the house of representatives who are appointed by the speaker of the house of representatives, not more than two of whom are members of the same political party.

2. Three members of the senate who are appointed by the president of the senate, not more than two of whom are members of the same political party.

3. The secretary of state or the secretary of state's designee.

4. The attorney general or the attorney general's designee.

5. The chairman of the citizens' clean election commission or the chairman's designee.

6. A representative of a county attorney's office from a county with a population of more than five hundred thousand persons who is appointed by the speaker of the house of representatives.

7. A representative of a county attorney's office from a county with a population of five hundred thousand or fewer persons who is appointed by the president of the senate.

8. Two representatives of persons who are registered under title 41, chapter 7, article 8.1, Arizona Revised Statutes, as designated public lobbyists, one of whom is appointed by the speaker of the house of representatives and one of whom is appointed by the president of the senate.

9. Two representatives of persons who are registered under title 41, chapter 7, article 8.1, Arizona Revised Statutes, as lobbyists for compensation, one of whom is appointed by the speaker of the house of representatives and one of whom is appointed by the president of the senate.

B. The committee shall meet and elect from its members a chairperson and a vice-chairperson. The committee shall consider all of the following:

1. Improving the openness of the interactions between public officers and persons who are lobbying those officers.

2. Identifying methods and procedures for streamlining and improving the accuracy and efficiency of the various financial and lobbying disclosure requirements for public officers and persons lobbying those officers.

3. Providing timely, transparent disclosure of lobbying related activities in a manner that ensures public access to information regarding lobbying, public officials and financial disclosures.

C. The committee shall prepare an interim report of its activities no later than December 1, 2012 and shall submit its final report, including any findings and recommendations to the speaker of the house of representatives and the president of the senate on or before December 31, 2013 and shall provide a copy of this report to the secretary of state.

D. This section is repealed from and after June 30, 2014.

Sec. 8. Effective date

Sections 1 through 6 of this act are effective from and after December 31, 2012.