SB1326 - 511R

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

Section 1. Subject to the requirements of article IV, part 1, section 1, Constitution of Arizona, title 16, chapter 6, article 1, Arizona Revised Statutes, is amended by adding section 16-926, to read:

START_STATUTE16-926. Public accountability commission; secretary of state; investigation and enforcement duties

A. The public accountability commission established pursuant to article 2 of this chapter shall succeed to the duties of the secretary of state and the attorney general with respect to acting as the investigatory, compliance and enforcement officer for all of the following:

1. All campaign finance matters for which the secretary of state is the filing officer pursuant to this title and title 19, including all campaign finance matters relating to initiative, referendum and recall.

2. Financial disclosure matters for which the secretary of state is the filing officer pursuant to title 38, chapter 3.1.

3. Registration and regulation of lobbyists pursuant to title 41, chapter 7, article 8.1.

B. The public accountability commission may apply all authority granted to the commission in article 2 of this chapter to its investigatory, compliance and enforcement duties prescribed in subsection a of this section. END_STATUTE

Sec. 2. Subject to the requirements of article IV, part 1, section 1, Constitution of Arizona, section 16-941, Arizona Revised Statutes, is amended to read:

START_STATUTE16-941. Limits on spending and contributions for political campaigns

A. Notwithstanding any law to the contrary, a participating candidate:

1. Shall not accept any contributions, other than a limited number of five‑dollar qualifying contributions as specified in section 16‑946 and early contributions as specified in section 16‑945, except in the emergency situation specified in section 16‑954, subsection F.

2. Shall not make expenditures of more than a total of five hundred dollars of the candidate's personal monies for a candidate for the legislature or more than one thousand dollars for a candidate for statewide office.

3. Shall not make expenditures in the primary election period in excess of the adjusted primary election spending limit.

4. Shall not make expenditures in the general election period in excess of the adjusted general election spending limit.

5. Shall comply with section 16‑948 regarding campaign accounts and section 16‑953 regarding returning unused monies to the citizens clean elections fund described in this article.

B. Notwithstanding any law to the contrary, a nonparticipating candidate shall not accept contributions in excess of an amount that is twenty per cent less than the limits specified in section 16‑905, subsections A through E, as adjusted by the secretary of state pursuant to section 16‑905, subsection H. Any violation of this subsection shall be subject to the civil penalties and procedures set forth in section 16‑905, subsections J through M and section 16‑924.

C. Notwithstanding any law to the contrary, a candidate, whether participating or nonparticipating:

1. If specified in a written agreement signed by the candidate and one or more opposing candidates and filed with the citizens clean elections public accountability commission, shall not make any expenditure in the primary or general election period exceeding an agreed‑upon amount lower than spending limits otherwise applicable by statute.

2. Shall continue to be bound by all other applicable election and campaign finance statutes and rules, with the exception of those provisions in express or clear conflict with this article.

D. Notwithstanding any law to the contrary, any person who makes independent expenditures related to a particular office cumulatively exceeding five hundred dollars in an election cycle, with the exception of any expenditure listed in section 16‑920 and any independent expenditure by an organization arising from a communication directly to the organization's members, shareholders, employees, affiliated persons and subscribers, shall file reports with the secretary of state in accordance with section 16‑958 so indicating, identifying the office and the candidate or group of candidates whose election or defeat is being advocated and stating whether the person is advocating election or advocating defeat. END_STATUTE

Sec. 3. Subject to the requirements of article IV, part 1, section 1, Constitution of Arizona, section 16-947, Arizona Revised Statutes, is amended to read:

START_STATUTE16-947. Certification as a participating candidate

A. A candidate who wishes to be certified as a participating candidate shall file, before the end of the qualifying period, an application with the secretary of state, in a form specified by the citizens clean elections public accountability commission.

B. The application shall identify the candidate, the office that the candidate plans to seek and the candidate's party, if any, and shall contain the candidate's signature, under oath, certifying that:

1. The candidate has complied with the restrictions of section 16‑941, subsection A during the election cycle to date.

2. The candidate's campaign committee and exploratory committee have filed all campaign finance reports required under article 1 of this chapter during the election cycle to date and that they are complete and accurate.

3. The candidate will comply with the requirements of section 16‑941, subsection A during the remainder of the election cycle and, specifically, will not accept private contributions.

C. The commission shall act on the application within one week. Unless, within that time, the commission denies an application and provides written reasons that all or part of a certification in subsection B of this section is incomplete or untrue, the candidate shall be certified as a participating candidate. If the commission denies an application for failure to file all complete and accurate campaign finance reports or failure to make the certification in subsection B, paragraph 3 of this section, the candidate may reapply within two weeks of the commission's decision by filing complete and accurate campaign finance reports and another sworn certification.

D. A candidate shall be denied certification if that candidate was removed from office by the commission or if the candidate is delinquent in payment of a debt to the commission. If the debt is paid in full or if the candidate is current on a payment agreement with the commission, the candidate may apply for certification as a participating candidate and is eligible to be certified if otherwise qualified by law.END_STATUTE

Sec. 4. Subject to the requirements of article IV, part 1, section 1, Constitution of Arizona, section 16-949, Arizona Revised Statutes, is amended to read:

START_STATUTE16-949. Controls on spending from clean elections fund

A. The commission shall not spend, on all costs incurred under this article during a particular calendar year, more than five dollars times the number of Arizona resident personal income tax returns filed during the previous calendar year. The commission may exceed this limit during a calendar year, provided that it is offset by an equal reduction of the limit during another calendar year during the same four‑year period beginning January 1 immediately after a gubernatorial election.

B. The commission may use up to ten per cent of the amount specified in subsection A of this section for reasonable and necessary expenses of administration and enforcement, including the activities specified in section 16‑956, subsection A, paragraphs 3 4 through 7 8 and subsections B and C. Any portion of the ten per cent not used for this purpose shall remain in the fund.

C. The commission may apply up to ten per cent of the amount specified in subsection A of this section for reasonable and necessary expenses associated with public education regarding participation as a candidate or a contributor, or regarding the functions, purpose and technical aspects of the act. Reasonable and necessary expenditures made pursuant to section 16‑956 are not included in this subsection.

D. The commission may spend monies in the fund for the reasonable and necessary expenses to implement the act but shall not use monies in the fund to promote the benefits of the clean elections act. Expenditures made pursuant to subsection C of this section or in section 16‑956, subsection A are deemed not to constitute promoting the benefits of the clean elections act. Expenditures pursuant to this subsection shall not be included in the limits prescribed in subsection C of this section.

E. The state treasurer shall administer a citizens clean elections fund from which costs incurred under this article shall be paid. The auditor general shall review the monies in, payments into and expenditures from the fund no less often than every four years. END_STATUTE

Sec. 5. Subject to the requirements of article IV, part 1, section 1, Constitution of Arizona, section 16-950, Arizona Revised Statutes, is amended to read:

START_STATUTE16-950. Qualification for clean elections funding

A. A candidate who has made an application for certification may also apply, in accordance with subsection B of this section, to receive funds from the citizens clean elections fund, instead of receiving private contributions.

B. To receive any clean elections funding, the candidate must present to the secretary of state no later than one week after the end of the qualifying period a list of names of persons who have made qualifying contributions pursuant to section 16‑946 on behalf of the candidate. The list shall be divided by county. At the same time, the candidate must tender to the secretary of state the original reporting slips identified in section 16‑946, subsection C for persons on the list and an amount equal to the sum of the qualifying contributions collected. The secretary of state shall deposit the amount into the fund.

C. The secretary of state shall select at random a sample of five per cent of the number of nonduplicative names on the list for a candidate for a statewide office and twenty per cent of the number of nonduplicative names on the list for a candidate for legislative office and shall forward facsimiles of the selected reporting slips to the county recorders for the counties of the addresses specified in the selected slips. Within ten days, the county recorders shall provide a report to the secretary of state identifying as disqualified any slips that are unsigned or undated or that the recorder is unable to verify as matching a person who is registered to vote in the electoral district of the office the candidate is seeking on the date specified on the slip. The secretary of state shall multiply the number of slips not disqualified by twenty, and if the result is greater than one hundred ten per cent of the quantity required, shall approve the candidate for funds, and if the result is less than one hundred ten per cent of the quantity required, the secretary of state shall forward facsimiles of all of the slips to the county recorders for verification, and the county recorders shall check all slips in accordance with the process above. A county recorder shall not check slips already verified. A county recorder shall report verified totals daily to the secretary of state until a determination is made that a sufficient number of verified slips has been submitted. If a sufficient number of verified slips has been submitted to one or more county recorders, the county recorders may stop the verification process.

D. To qualify for clean elections funding, a candidate must have been approved as a participating candidate pursuant to section 16‑947 and have obtained the following number of qualifying contributions:

1. For a candidate for legislature, two hundred.

2. For candidate for mine inspector, five hundred.

3. For a candidate for treasurer, superintendent of public instruction or corporation commission, one thousand five hundred.

4. For a candidate for secretary of state or attorney general, two thousand five hundred.

5. For a candidate for governor, four thousand.

E. To qualify for clean elections funding, a candidate must have met the requirements of this section and either be an independent candidate or meet the following standards:

1. To qualify for funding for a party primary election, a candidate must have properly filed nominating papers and nominating petitions with signatures pursuant to chapter 3, articles 2 and 3 of this title in the primary of a political organization entitled to continued representation on the official ballot in accordance with section 16‑804.

2. To qualify for clean elections funding for a general election, a candidate must be a party nominee of such a political organization. END_STATUTE

Sec. 6. Subject to the requirements of article IV, part 1, section 1, Constitution of Arizona, section 16-954, Arizona Revised Statutes, is amended to read:

START_STATUTE16-954. Clean elections tax designations; disposition of excess monies

A. For tax years beginning January 1, 2014, a taxpayer who files a state income tax return form may designate a five dollar voluntary contribution for each taxpayer to the clean elections fund by checking an optional check-off box. A taxpayer who marks the box shall receive a five dollar reduction in the amount of tax, and five dollars from the amount of taxes paid shall be transferred by the department of revenue to the fund. The department of revenue shall provide a check-off box designated as the "clean elections fund tax reduction" on the first page of income tax return forms.

B. For tax years beginning January 1, 2014, a taxpayer may make a voluntary donation to the clean elections fund by designating the fund on an income tax return form filed by the individual or business entity or by making a payment directly to the fund. Any taxpayer making a donation pursuant to this subsection shall receive a dollar-for-dollar tax credit not to exceed twenty per cent of the tax amount on the return or five hundred dollars per taxpayer, whichever is greater. Donations made pursuant to this section are not otherwise tax deductible and cannot be designated for the benefit of a particular candidate, political party or election contest. The department of revenue shall provide a space that is identified as the "clean elections fund tax credit" on the first page of income tax return forms.

C. Monies received pursuant to subsections A and B of this section shall be transferred for deposit to an election equipment refreshment account in the clean elections fund. Monies in the election equipment refreshment account may be used for updating and replacing election equipment used for county elections in this state and may be disbursed for those purposes on evidence of county matching monies, with a county providing three dollars for every one dollar from the account.

A. D. Beginning January 1, 1999, an additional surcharge of ten per cent shall be imposed on all civil and criminal fines and penalties collected pursuant to section 12‑116.01 and shall be deposited into the fund.

B. E. At least once per year, the commission shall project the amount of monies that the fund will collect over the next four years and the time such monies shall become available. Whenever the commission determines that the fund contains more monies than the commission determines that it requires to meet current debts plus expected expenses, under the assumption that expected expenses will be at the expenditure limit in section 16‑949, subsection A, and taking into account the projections of collections, the commission shall designate such monies as excess monies and so notify the state treasurer, who shall thereupon transfer the excess monies to the general fund.

C. F. At least once per year, the commission shall project the amount of clean elections funding for which all candidates will have qualified pursuant to this article for the following calendar year. By the end of each year, the commission shall announce whether the amount that the commission plans to spend the following year pursuant to section 16‑949, subsection A exceeds the projected amount of clean elections funding. If the commission determines that the fund contains insufficient monies or the spending cap would be exceeded were all candidates' accounts to be fully funded, the commission may include in the announcement specifications for decreases in the following parameters, based on the commission's projections of collections and expenses for the fund, including that the fund will provide monies under section 16‑951 as a fraction of the amounts there specified.

D. G. If the commission cannot provide participating candidates with all monies specified under sections 16‑951 and 16‑952, as decreased by any announcement pursuant to subsection C F of this section, the commission shall allocate any reductions in payments proportionately among candidates entitled to monies and shall declare an emergency. Upon On declaration of an emergency, a participating candidate may accept private contributions to bring the total monies received by the candidate from the fund and from such private contributions up to the adjusted spending limits, as decreased by any announcement made pursuant to subsection C F of this section. END_STATUTE

Sec. 7. Subject to the requirements of article IV, part 1, section 1, Constitution of Arizona, section 16-955, Arizona Revised Statutes, is amended to read:

START_STATUTE16-955. Public accountability commission; structure

A. The citizens clean elections public accountability commission is established consisting of five members. No more than two members of the commission shall be members of the same political party. No more than two members of the commission shall be residents of the same county. No one shall be appointed as a member who does not have a registration pursuant to chapter 1 of this title that has been continuously recorded for at least five years immediately preceding appointment with the same political party or as an independent. The commission shall be an autonomous, separate administrative and budget unit within the office of the secretary of state.

B. The candidates for vacant commissioner positions shall be persons who are committed to enforcing this article in an honest, independent and impartial fashion and to seeking to uphold public confidence in the integrity of the electoral system. Each candidate shall be a qualified elector who has not, in the previous five years in this state, has not been appointed to, been elected to or run for any public office, including precinct committeeman, or served as an officer of a political party.

C. Initially, the commission on appellate court appointments shall nominate five slates, each having three candidates, before January 1, 1999. No later than February 1, 1999, the governor shall select one candidate from one of the slates to serve on the commission for a term ending January 31, 2004. Next, the highest‑ranking official holding a statewide office who is not a member of the same political party as the governor shall select one candidate from another one of the slates to serve on the commission for a term ending January 31, 2003. Next, the second‑highest‑ranking official holding a statewide office who is a member of the same political party as the governor shall select one candidate from one of the three remaining slates to serve on the commission for a term ending January 31, 2002. Next, the second‑highest‑ranking official holding a statewide office who is not a member of the same political party as the governor shall select one candidate from one of the two remaining slates to serve on the commission for a term ending January 31, 2001. Finally, the third‑highest‑ranking official holding a statewide office who is a member of the same political party as the governor shall elect one candidate from the last slate to serve on the commission for a term ending January 31, 2000. For the purposes of this section, the ranking of officials holding statewide office shall be governor, secretary of state, attorney general, treasurer, superintendent of public instruction, corporation commissioners in order of seniority, mine inspector, senate majority and minority leaders and house majority and minority leaders.

D. One commissioner shall be appointed for a five‑year term beginning February 1 of every year beginning with the year 2000. Before February 1 of each year beginning in the year 2000, the governor and the highest‑ranking official holding a statewide office who is not a member of the same political party as the governor shall alternate filling such vacancies. The vacancy in the year 2000 shall be filled by the governor.

E. Members of the commission may be removed by the governor, with concurrence of the senate, for substantial neglect of duty, gross misconduct in office, inability to discharge the powers and duties of office or violation of this section, after written notice and opportunity for a response.

F. If a commissioner does not complete the commissioner's term of office for any reason, a replacement shall be selected within thirty days after the vacancy occurs. The highest‑ranking official holding a statewide office who is a member of the political party of the official who nominated the commissioner who vacated office shall nominate the replacement, who shall serve as commissioner for the unexpired portion of the term. A vacancy or vacancies shall not impair the right of the remaining members to exercise all of the powers of the board.

G. Commissioners are eligible to receive compensation in an amount of two hundred dollars for each day on which the commission meets and reimbursement of expenses pursuant to title 38, chapter 4, article 2.

H. The commissioners shall elect a chair to serve for each calendar‑year calendar year period from among their members whose terms expire after the conclusion of that year. Three commissioners shall constitute a quorum.

I. A member of the commission shall serve no more than one term and is not eligible for reappointment. No commissioner, during the commissioner's tenure or for three years thereafter, shall seek or hold any other public office, serve as an officer of any political committee or employ or be employed as a lobbyist.

J. The commission shall appoint an executive director who shall not be a member of the commission and who shall serve at the pleasure of the commission. The executive director is eligible to receive compensation set by the board within the range determined under section 38‑611. The executive director, subject to title 41, chapter 4, articles 5 and 6, shall employ, determine the conditions of employment and specify the duties of administrative, secretarial and clerical employees as the director deems necessary. END_STATUTE

Sec. 8. Subject to the requirements of article IV, part 1, section 1, Constitution of Arizona, section 16-956, Arizona Revised Statutes, is amended to read:

START_STATUTE16-956. Voter education and enforcement duties

A. The commission shall:

1. Develop a procedure for publishing a document or section of a document having a space of predefined size for a message chosen by each candidate. For the document that is delivered before the primary election, the document shall contain the names of every candidate for every statewide and legislative district office in that primary election without regard to whether the candidate is a participating candidate or a nonparticipating candidate. For the document that is delivered before the general election, the document shall contain the names of every candidate for every statewide and legislative district office in that general election without regard to whether the candidate is a participating candidate or a nonparticipating candidate. The commission shall deliver one copy of each document to every household that contains a registered voter. For the document that is delivered before the primary election, the delivery may be made over a period of days but shall be sent in time to be delivered to households before the earliest date for receipt by registered voters of any requested early ballots for the primary election. The commission may deliver the second document over a period of days but shall send the second document in order to be delivered to households before the earliest date for receipt by registered voters of any requested early ballots for the general election. The primary election and general election documents published by the commission shall comply with all of the following:

(a) For any candidate who does not submit a message pursuant to this paragraph, the document shall include with the candidate's listing the words "no statement submitted".

(b) The document shall have printed on its cover the words "citizens clean elections commission voter education guide" and the words "primary election" or "general election" and the applicable year. The document shall also contain at or near the bottom of the document cover in type that is no larger than one‑half the size of the type used for "citizens clean elections commission voter education guide" the words "paid for by the citizens clean elections fund".

(c) In order to prevent voter confusion, the document shall be easily distinguishable from the publicity pamphlet that is required to be produced by the secretary of state pursuant to section 19‑123.

2. Sponsor debates among candidates, in such manner as determined by the commission. The commission shall require participating candidates to attend and participate in debates and may specify by rule penalties for nonparticipation. The commission shall invite and permit nonparticipating candidates to participate in debates.

3. Cooperate with and assist county recorders and county officers in charge of elections in providing mailings and other voter education and information material to voters.

3. 4. Prescribe forms for reports, statements, notices and other documents required by this article. The commission shall not require a candidate to use a reporting system other than the reporting system jointly approved by the commission and the office of the secretary of state.

4. 5. Prepare and publish instructions setting forth methods of bookkeeping and preservation of records to facilitate compliance with this article and explaining the duties of persons and committees under this article.

5. 6. Produce a yearly report describing the commission's activities and any recommendations for changes of law, administration or funding amounts and accounting for monies in the fund.

6. 7. Adopt rules to implement the reporting requirements of section 16‑958, subsections D and E.

7. 8. Enforce this article, ensure that money from the fund is placed in candidate campaign accounts or otherwise spent as specified in this article and not otherwise, monitor reports filed pursuant to this chapter and financial records of candidates as needed and ensure that money required by this article to be paid to the fund is deposited in the fund. The commission shall not take action on any external complaint that is filed more than ninety days after the postelection report is filed or ninety days after the completion of the canvass of the election to which the complaint relates, whichever is later.

9. Investigate complaints, ensure compliance and take enforcement action relating to any of the following:

(a) Campaign finance matters for which the secretary of state is the filing officer pursuant to this title and title 19, including all campaign finance matters relating to initiative, referendum and recall.

(b) Financial disclosure matters for which the secretary of state is the filing officer pursuant to title 38, chapter 3.1.

B. The commission may subpoena witnesses, compel their attendance and testimony, administer oaths and affirmations, take evidence and require by subpoena the production of any books, papers, records or other items material to the performance of the commission's duties or the exercise of its powers.

C. The commission may adopt rules to carry out the purposes of this article and to govern procedures of the commission. Commission rule making is exempt from title 41, chapter 6, article 3. The commission shall propose and adopt rules in public meetings, with at least sixty days allowed for interested parties to comment after the rules are proposed. The commission shall also file a notice of exempt rule making and the proposed rule in the format prescribed in section 41‑1022 with the secretary of state's office for publication in the Arizona administrative register. After consideration of the comments received in the sixty day comment period, the commission may adopt the rule in an open meeting. Any rules given final approval in an open meeting shall be filed in the format prescribed in section 41‑1022 with the secretary of state's office for publication in the Arizona administrative register. Any rules adopted by the commission shall only be applied prospectively from the date the rule was adopted.

D. Rules adopted by the commission are not effective until January 1 in the year following the adoption of the rule, except that rules adopted by unanimous vote of the commission may be made immediately effective and enforceable.

E. If, in the view of the commission, the action of a particular candidate or committee requires immediate change to a commission rule, a unanimous vote of the commission is required. Any rule change made pursuant to this subsection that is enacted with less than a unanimous vote takes effect for the next election cycle.

F. Based on the results of the elections in any quadrennial election after 2002, and within six months after such election, the commission may adopt rules changing the number of qualifying contributions required for any office from those listed in section 16‑950, subsection D, by no more than twenty per cent of the number applicable for the preceding election. END_STATUTE

Sec. 9. Subject to the requirements of article IV, part 1, section 1, Constitution of Arizona, section 16-961, Arizona Revised Statutes, is amended to read:

START_STATUTE16-961. Definitions

A. The terms "candidate's campaign committee," "contribution," "expenditures," "exploratory committee," "independent expenditure," "personal monies," "political committee" and "statewide office" are defined in section 16‑901.

B. 1. "Election cycle" means the period between successive general elections for a particular office.

2. "Exploratory period" means the period beginning on the day after a general election and ending the day before the start of the qualifying period.

3. "Qualifying period" means the period beginning on the first day of August in a year preceding an election and ending one week before the primary election.

4. "Primary election period" means the nine‑week period ending on the day of the primary election.

5. "General election period" means the period beginning on the day after the primary election and ending on the day of the general election.

6. For any recall election, the qualifying period shall begin when the election is called and last for thirty days, there shall be no primary election period and the general election period shall extend from the day after the end of the qualifying period to the day of the recall election. For recall elections, any reference to "general election" in this article shall be treated as if referring to the recall election.

C. 1. "Participating candidate" means a candidate who becomes certified as a participating candidate pursuant to section 16‑947.

2. "Nonparticipating candidate" means a candidate who does not become certified as a participating candidate pursuant to section 16‑947.

3. Any limitation of this article that is applicable to a participating candidate or a nonparticipating candidate shall also apply to that candidate's campaign committee or exploratory committee.

D. "Commission" means the citizens clean elections public accountability commission established pursuant to section 16‑955.

E. "Fund" means the citizens clean elections fund defined by this article.

F. 1. "Party nominee" means a person who has been nominated by a political party pursuant to section 16‑301 or 16‑343.

2. "Independent candidate" means a candidate who has properly filed nominating papers and nominating petitions with signatures pursuant to section 16‑341.

3. "Unopposed" means with reference to an election for:

(a) A member of the house of representatives, opposed by no more than one other candidate who has qualified for the ballot and who is running in the same district.

(b) A member of the corporation commission, opposed by a number of candidates who have qualified for the ballot that is fewer than the number of corporation commission seats open at that election and for which the term of office ends on the same date.

(c) All other offices, opposed by no other candidate who has qualified for the ballot and who is running in that district or running for that same office and term.

G. "Primary election spending limits" means:

1. For a candidate for the legislature, twelve thousand nine hundred twenty-one dollars.

2. For a candidate for mine inspector, forty‑one thousand three hundred forty-nine dollars.

3. For a candidate for treasurer, superintendent of public instruction or the corporation commission, eighty‑two thousand six hundred eighty dollars.

4. For a candidate for secretary of state or attorney general, one hundred sixty‑five thousand three hundred seventy-eight dollars.

5. For a candidate for governor, six hundred thirty‑eight thousand two hundred twenty‑two dollars.

H. "General election spending limits" means amounts fifty per cent greater than the amounts specified in subsection G of this section.

I. 1. "Original" spending limit means a limit specified in subsections G and H of this section, as adjusted pursuant to section 16‑959, or a special amount expressly set for a particular candidate by a provision of this title.

2. "Adjusted" spending limit means an original spending limit as further adjusted pursuant to section 16‑952.END_STATUTE

Sec. 10. Title 38, chapter 3.1, article 1, Arizona Revised Statutes, is amended by adding section 38-546, to read:

START_STATUTE38-546. Public accountability commission; authority

For officers and candidates who are required to file with the secretary of state pursuant to this article, the public accountability commission is the investigatory, compliance and enforcement officer and agency regarding any matters relating to this article and the commission may exercise its full statutory authority under title 16, chapter 6 for these financial disclosure matters. END_STATUTE

Sec. 11. Section 41-121.02, Arizona Revised Statutes, is amended to read:

START_STATUTE41-121.02. Department of state

A. There is established the department of state, which shall be composed of the office of the secretary of state.

B. The secretary of state shall have charge of and direct the department of state.

C. Except as otherwise provided by law, employees of the department are subject to chapter 4, article 4 and, as applicable, articles 5 and 6 of this title.

D. Purchases and contracts for goods and services entered into by the Arizona state library, archives and public records are exempt from chapter 23 of this title.

E. The Arizona state library, archives and public records is exempt from chapter 6 of this title.

F. For administrative purposes only, the public accountability commission established pursuant to title 16, chapter 6, article 2 is a separate administrative and budgetary unit of the department, and the commission retains full authority over the commission's employees and activities. END_STATUTE

Sec. 12. Section 41-1239, Arizona Revised Statutes, is amended to read:

START_STATUTE41-1239. Duties of secretary of state

A. The secretary of state shall:

1. Prescribe and publish the registration and registration amendment forms and the annual and quarterly expenditure forms, handbooks and rules necessary to carry out the provisions of this article.

2. Refer to the public accountability commission, attorney general or county attorney for investigation any matter which that the secretary of state has reason to believe constitutes a violation of any of the provisions of this article. The secretary of state in cooperation with the public accountability commission shall develop an internet-based application for use in submitting registrations, reports and other filings prescribed by this article. The internet‑based application shall provide for the posting to the internet of expenditure reports filed by lobbyists, authorized public lobbyists and designated public lobbyists. Notwithstanding any other law after the internet‑based application is operational:

(a) The secretary of state shall notify all persons who are required to be registered pursuant to this article that all subsequent filings shall be completed by use of the application.

(b) The secretary of state shall provide the notice prescribed in subdivision (a) of this paragraph by first class mail, and all subsequent expenditure reports shall be made within seventy‑two hours after making the expenditure, and annual and quarterly reports are not required.

(c) Persons who are required to register and who make no reportable expenditures shall file a notarized statement every six months that no expenditures were made in the preceding six‑month period.

3. Provide for the cross‑referencing of the registration required by sections 41‑1232 and 41‑1232.01 so that each lobbyist authorized by a principal pursuant to section 41‑1232, subsection A and each public lobbyist authorized by a public body pursuant to section 41‑1232.01, subsection A shall be identified with such principal.

4. Advise incumbents and nonincumbent candidates regarding campaign finance laws and public officer reporting and disclosure laws. At the request of the person asking for advice, the secretary of state shall log the request and the response.

5. Compile and issue an annual report of all expenditures reported by principals, public bodies, lobbyists and public lobbyists. The annual report shall accurately summarize all expenditures for lobbying but shall not double report expenditures by a lobbyist that were reimbursed and reported by a principal or public body. The report shall list the name of each principal or public body along with the name of each lobbyist or public lobbyist that is listed on the principal's registration statement.

B. The secretary of state may adopt rules regarding initiative, referendum and recall. Rules adopted pursuant to this subsection apply to statewide and county initiatives, referenda and recalls.END_STATUTE

Sec. 13. Section 41-2421, Arizona Revised Statutes, is amended to read:

START_STATUTE41-2421. Enhanced collections; allocation of monies; criminal justice entities

A. Notwithstanding any other law and except as provided in subsection J of this section, five per cent of any monies collected by the supreme court and the court of appeals for the payment of filing fees, including clerk fees, diversion fees, fines, penalties, surcharges, sanctions and forfeitures, shall be deposited, pursuant to sections 35‑146 and 35‑147, and allocated pursuant to the formula in subsection B of this section. This subsection does not apply to monies collected by the courts pursuant to section 16‑954, subsection A C, or for child support, restitution or exonerated bonds.

B. The monies deposited pursuant to subsection A of this section shall be allocated according to the following formula:

1. 21.61 per cent to the state aid to county attorneys fund established by section 11‑539.

2. 20.53 per cent to the state aid to indigent defense fund established by section 11‑588.

3. 57.37 per cent to the state aid to the courts fund established by section 12‑102.02.

4. 0.49 per cent to the department of law for the processing of criminal cases.

C. Notwithstanding any other law and except as provided in subsection J of this section, five per cent of any monies collected by the superior court, including the clerk of the court and the justice courts in each county for the payment of filing fees, including clerk fees, diversion fees, adult and juvenile probation fees, juvenile monetary assessments, fines, penalties, surcharges, sanctions and forfeitures, shall be transmitted to the county treasurer for allocation pursuant to subsections E, F, G and H of this section. This subsection does not apply to monies collected by the courts pursuant to section 16‑954, subsection A or for child support, restitution or exonerated bonds.

D. The supreme court shall adopt guidelines regarding the collection of revenues pursuant to subsections A and C of this section.

E. The county treasurer shall allocate the monies deposited pursuant to subsection C of this section according to the following formula:

1. 21.61 per cent for the purposes specified in section 11‑539.

2. 20.53 per cent for the purposes specified in section 11‑588.

3. 57.37 per cent to the local courts assistance fund established by section 12‑102.03.

4. 0.49 per cent to the state treasurer for transmittal to the department of law for the processing of criminal cases.

F. The board of supervisors in each county shall separately account for all monies received pursuant to subsections C and E of this section and expenditures of these monies may be made only after the requirements of subsections G and H of this section have been met.

G. By December 1 of each year, each county board of supervisors shall certify if the total revenues received by the justice courts and the superior court, including the clerk of the superior court, exceed the amount received in fiscal year 1997‑1998. If the board so certifies, then the board shall distribute the lesser of either:

1. The total amount deposited pursuant to subsection C of this section.

2. The amount collected and deposited pursuant to subsection C of this section that exceeds the base year collections of fiscal year 1997‑1998. These monies shall be distributed according to the formula specified in subsection E of this section. Any monies remaining after this allocation shall be transmitted as otherwise provided by law.

H. If a county board of supervisors determines that the total revenues transmitted by the superior court, including the clerk of the superior court and the justice courts in the county, do not equal the base year collections transmitted in fiscal year 1997‑1998 the monies specified in subsection C of this section shall be transmitted by the county treasurer as otherwise provided by law.

I. For the purposes of this section, base year collections shall be those collections specified in subsection C of this section.

J. Monies collected pursuant to section 12‑116.01, subsection B shall be allocated as follows:

1. 15.44 per cent to the state aid to county attorneys fund established by section 11‑539.

2. 14.66 per cent to the state aid to indigent defense fund established by section 11‑588.

3. 40.97 per cent to the state aid to the courts fund established by section 12‑102.02.

4. 0.35 per cent to the department of law for the processing of criminal cases.

5. 14.29 per cent to the Arizona criminal justice commission for distribution to state, county and municipal law enforcement full service forensic crime laboratories pursuant to rules adopted by the Arizona criminal justice commission.

6. 14.29 per cent to the supreme court for allocation to the municipal courts pursuant to subsection K of this section.

K. The supreme court shall administer and allocate the monies received pursuant to subsection J, paragraph 6 of this section to the municipal courts based on the total amount of surcharges transmitted pursuant to section 12‑116.01 by that jurisdiction's city treasurer to the state treasurer for the prior fiscal year divided by the total amount of surcharges transmitted to the state treasurer pursuant to section 12‑116.01 by all city treasurers statewide for the prior fiscal year. The municipal court shall use the monies received to improve, maintain and enhance the ability to collect and manage monies assessed or received by the courts, to improve court automation and to improve case processing or the administration of justice. The municipal court shall submit a plan to the supreme court, and the supreme court shall approve the plan before the municipal court begins to spend these allocated monies. END_STATUTE

Sec. 14. Applicability; pending cases

Any complaints that are filed before the effective date of this act and that are still pending on the effective date of this act and any investigations, compliance or enforcement actions pending on the effective date of this act are transferred to the public accountability commission for any further action, and the public accountability commission may use its full authority on those cases and complaints as prescribed by this act.

Sec. 15. Conforming legislation

The legislative council staff shall prepare proposed legislation conforming the Arizona Revised Statutes to the provisions of this act for consideration in the Fifty‑first Legislature, Second Regular Session.

Sec. 16. Effective date

This act is effective from and after December 31, 2013.

Sec. 17. Requirements for enactment; three-fourths vote

Pursuant to article IV, part 1, section 1, Constitution of Arizona, section 16-926, Arizona Revised Statutes, as added by this act and sections 16-941, 16-947, 16-949, 16-950, 16-954, 16-955, 16-956 and 16-961, Arizona Revised Statutes, as amended by this act, are effective only on the affirmative vote of at least three-fourths of the members of each house of the legislature.