REFERENCE TITLE: campaign finance; central filings; enforcement

 

 

 

State of Arizona

House of Representatives

Fifty-first Legislature

Second Regular Session

2014

 

 

HB 2407

 

Introduced by

Representatives Stevens: Gowan, Senator Griffin

 

 

AN ACT

 

amending sections 15-424, 15-1442, 16-913, 16-914.01, 16-914.02, 16-916 and 16-916.01, Arizona Revised Statutes; amending section 16-924, Arizona Revised Statutes, as amended by Laws 2013, chapter 209, section 4; amending section 16-924, Arizona Revised Statutes, as amended by Laws 2011, chapter 332, section 23; amending section 16-958, Arizona Revised Statutes; relating to campaign contributions and expenses; providing for conditional enactment.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 


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

Section 1.  Section 15-424, Arizona Revised Statutes, is amended to read:

START_STATUTE15-424.  Election of governing board members; terms; statement of contributions and expenditures

A.  A regular election shall be held for each school district at the time and place, and in the manner, of general elections as provided in title 16.

B.  Except as provided in subsection C of this section and sections 15‑429 and 15‑430, the term of office for each member shall be four years from January 1 next following the member's election.

C.  At the first general election held for a newly formed district, three members shall be elected.  The candidate receiving the highest number of votes shall be elected to a four year term, and the candidates having the second and third highest number of votes shall be elected to two year terms. A district increasing its governing board to five members shall elect at the next general election members in the following manner:

1.  If one of the previous three offices is to be filled, the three candidates receiving the highest, the second highest and the third highest number of votes shall be elected to four year terms.

2.  If two of the previous three offices are to be filled, the candidates receiving the highest, the second highest and the third highest number of votes shall be elected to four year terms.  The candidate receiving the fourth highest number of votes shall be elected to a two year term. Thereafter all such offices shall have four year terms.

D.  If only one person files or no person files a nominating petition or nomination paper for a write-in candidate for an election to fill a district office, the board of supervisors no earlier than seventy‑five days before the election may cancel the election for the position and appoint the person who filed the nominating petition or nomination paper to fill the position.  If no person files a nominating petition or nomination paper for an election to fill a district office, the board of supervisors no earlier than seventy‑five days before the election may cancel the election for that office and that office is deemed vacant and shall be filled as provided in section 15‑302.  A person who is appointed pursuant to this subsection is fully vested with the powers and duties of the office as if elected to that office.

E.  If two or more candidates receive an equal number of votes for the same office, and a higher number than any other candidate for that office, whether upon the tally by the school election board or canvass of returns by the board of supervisors, or upon recount by a court, the officer or board whose duty it is to declare the result shall determine by lot and in the presence of the candidates which candidate shall be declared elected.

F.  Position of the names of candidates for each office shall be rotated so that each candidate occupies each position on the ballot an equal number of times, insofar as is possible, for each ballot style.  For candidates seeking election to fill a vacancy on the governing board, the ballot shall be designated as provided in section 16‑502.

G.  This section does not require that a school election at which no member is to be elected be held on a general election day.

H.  All candidates for the office of school district governing board member shall file with the county school superintendent secretary of state a statement of contributions and expenditures as provided in section 16‑913. END_STATUTE

Sec. 2.  Section 15-1442, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1442.  Nominating petitions; election; returns; results; certificate of election; statement of contributions and expenditures

A.  Candidates for the district board must file nominating petitions, conforming to section 16‑314, with the appropriate county officer secretary of state.

B.  Members of the district board shall be elected at the time and place, and in the manner, of general elections as provided in title 16.

C.  If only one person files or no person files a nominating petition or nomination paper for a write-in candidate for an election to fill a community college board office, the county school superintendent no earlier than seventy-five days before the election may cancel the election for the position and appoint the person who filed the nominating petition or nomination paper to fill the position.  If no person files a nominating petition or nomination paper for an election to fill a community college board office, the county board of supervisors no earlier than seventy-five days before the election may cancel the election for that office and that office is deemed vacant and shall be filled as provided in section 15‑1441.  A person who is appointed pursuant to this subsection is fully vested with the powers and duties of the office as if elected to that office.

D.  The county school superintendent and the chairman of the board of supervisors shall meet on the seventh day following the election to canvass the returns in accordance with procedures for the canvass of returns in a general election.  The county school superintendent shall declare the results of the election, declare elected the person receiving the highest number of votes for each office to be filled and issue to that person a certificate of election.

E.  All candidates for the office of community college district governing board member shall file with the clerk of the board of supervisors secretary of state a statement of contributions and expenditures as provided in section 16‑913.END_STATUTE

Sec. 3.  Section 16-913, Arizona Revised Statutes, is amended to read:

START_STATUTE16-913.  Campaign finance reports; reporting of receipts and disbursements; exemptions; civil penalty

A.  Except as provided in subsection K of this section, each political committee shall file campaign finance reports in the format prescribed by the filing officer secretary of state setting forth the committee's receipts and disbursements according to the schedule prescribed in subsections B and C of this section.

B.  In any calendar year during which there is a regularly scheduled election at which any candidates, measures, questions or propositions appear or may appear on the ballot, the political committee shall file each of the following campaign finance reports:

1.  A report covering the period beginning January 1 through May 31, filed no later than June 30.

2.  A preelection report, that shall be filed not less than four days before any election and that shall be complete through the twelfth day before the election.

3.  A postelection report, that shall be filed not more than thirty days after any election and that shall be complete through the twentieth day after the election.

C.  In any other calendar year, the political committee shall file a report covering the period beginning twenty‑one days after the date of the election in the preceding calendar year through December 31 of the nonelection year filed no later than January 31 of the following calendar year.  For a special election for which the secretary of state is the filing officer, a political committee that receives contributions or makes expenditures to influence that election shall file the following:

1.  For an initiative, referendum or recall, a preelection report that is due within fifteen days of filing the petition with the secretary of state and that is current through the date the petition was filed.

2.  A preelection report that is due within fifteen days of the governor's proclamation calling the special election and that is current through the date of the governor's proclamation.

3.  A preelection report that is due as prescribed by subsection B, paragraph 2 of this section.

4.  A postelection report that is due as prescribed by subsection B, paragraph 3 of this section.

D.  In the event that a political committee receives no contributions and makes no expenditures during a period in which it is required to file a campaign finance report, the committee treasurer or if the treasurer is unavailable the candidate, in lieu of filing a report required by subsection B of this section, may sign and file a form prescribed by the secretary of state indicating no activity during the specific reporting period.

E.  In lieu of the reports prescribed in subsections B and C of this section, a candidate's political committee that remains active after an election due to outstanding debts may file a document no later than January 31 in a form prescribed by the secretary of state that states that the committee does not intend to receive any contributions or make any expenditures during the year.  If a candidate's political committee does receive a contribution or make an expenditure during that year, the committee shall report as prescribed by subsection B or C of this section.

F.  A judge who has filed a declaration of the desire to be retained in office is exempt from filing any report required by this section if the judge, not later than twelve days before the general election, files a statement signed and sworn to by the judge certifying that the judge has received no contributions, has made no expenditures and has no campaign committee and that the judge does not intend to receive contributions, make expenditures or have a campaign committee for the purpose of influencing the result of the vote on the question of the judge's retention.  With respect to superior court judges, a statement filed pursuant to this subsection is effective until the earlier of twelve days before the third general election following the filing of this statement or the judge receives contributions, makes expenditures or authorizes a campaign committee.  Such a statement filed by a supreme court justice or a court of appeals judge is effective until the earlier of twelve days before the fourth general election following the filing of this statement or the justice or judge receives contributions, makes expenditures or authorizes a campaign committee.

G.  Reports in connection with special or recall elections shall conform to the filing deadlines set forth in subsections B and C of this section.

H.  Except as provided in section 16‑916, subsection B and subsection K of this section, A political committee shall comply with the requirements of this section in each jurisdiction in this state in which the committee has filed a statement of organization until the committee terminates pursuant to section 16‑914, and its statements, designations and reports shall be filed with each officer with whom it has filed a statement of organization, as appropriate the secretary of state.

I.  Each report required to be filed pursuant to this section shall be signed by the committee treasurer or the candidate or the designating individual if the treasurer is unavailable and shall contain the certification of the signer under penalty of perjury that the report is true and complete.

J.  A political committee and the candidate, in the case of a candidate's campaign committee, or the designating individual, in the case of an exploratory committee, who violate this section are subject to the penalty prescribed in section 16‑918.

K.  A standing political committee shall file reports with the secretary of state and is exempt from filing a report with any other jurisdiction in which it is active.  The reports shall be in an electronic format as prescribed by the secretary of state or by use of the internet.  The secretary of state shall promptly make the reports available to the public on the internet and shall make the reports available by electronic means by request.  The standing committee shall file the following reports:

1.  A preelection report that is due as prescribed by subsection B, paragraph 2 of this section shall be filed for each consolidated election date prescribed by section 16‑204.

2.  A postelection report that is due as prescribed by subsection B, paragraph 3 of this section shall be filed for each consolidated election date prescribed by section 16‑204.

3.  An annual report that is due by January 31 in the year immediately following the calendar year that is the subject of the report. END_STATUTE

Sec. 4.  Section 16-914.01, Arizona Revised Statutes, is amended to read:

START_STATUTE16-914.01.  Reporting of contributions by committees acting on ballot measures; civil penalty; definition

A.  In addition to the requirements relating to election contributions prescribed in section 16‑913, a committee acting in support of or opposition to the qualification, passage or defeat of an initiative or referendum or any other ballot measure, question or proposition or in support of or opposition to a recall election shall give notice to the secretary of state for statewide measures and the local filing officer who is responsible for receiving campaign finance reports for filing for nonstatewide measures of any contribution or group of contributions to the committee that is made from a single source less than twenty days before the day of the election if it exceeds:

1.  A cumulative total of ten thousand dollars for a statewide ballot measure, question or proposition.

2.  Two thousand five hundred dollars for a nonstatewide ballot measure, question or proposition in a political subdivision with a population of one hundred thousand or more persons.

3.  Five hundred dollars for a nonstatewide ballot measure, question or proposition in a political subdivision with a population of less than one hundred thousand persons.

B.  In addition to the requirements of section 16‑913, a committee acting in support of or opposition to the qualification, passage or defeat of an initiative or referendum or any other ballot measure, question or proposition shall give notice to the secretary of state for statewide measures and the local filing officer who is responsible for receiving campaign finance reports for filing for nonstatewide measures the first time each of the following occurs:

1.  The committee has received contributions totaling ten thousand dollars or more.

2.  The committee has made expenditures totaling ten thousand dollars or more.

3.  The committee has received contributions totaling ten thousand dollars or more from a single source.

4.  The committee has received contributions totaling ten thousand dollars or more from different additional single sources.

C.  The notices prescribed by this section shall be filed within twenty‑four hours, excluding Saturdays, Sundays and other legal holidays, after the ten thousand dollar amount has been reached and shall include the identification of the contributors, the dates of receipt and the amounts of the contributions or the amount, recipient and purpose of the expenditures. Contributions subject to the notification requirements of this section shall be included in the next report filed pursuant to section 16‑913.

D.  A political committee that violates this section and a person who knowingly violates this section are liable in a civil action for a civil penalty of up to three times the amount improperly reported as prescribed by section 16‑924.

E.  For the purposes of this section, "single source" includes principals of the same partnership, corporation, limited partnership, limited liability company, limited liability partnership or association. END_STATUTE

Sec. 5.  Section 16-914.02, Arizona Revised Statutes, is amended to read:

START_STATUTE16-914.02.  Reporting independent expenditures of corporations, limited liability companies and labor organizations; statement; disclaimer and disclosure; civil action; civil penalty; violation; classification; definitions

A.  Any corporation, limited liability company or labor organization that makes cumulative independent expenditures in an attempt to influence the outcome of a candidate election and in at least the following amounts in an election cycle shall register and notify the appropriate filing officer not later than one day after making that expenditure, excluding Saturdays, Sundays and other legal holidays:

1.  An aggregate of five thousand dollars or more in one or more statewide races.

2.  An aggregate of two thousand five hundred dollars or more in one or more legislative races.

3.  One thousand dollars or more in one or more county, city, town or other local races if the one thousand dollars is aggregated in races in a single county, city, town or other local jurisdiction.

B.  The secretary of state is the filing officer for registrations and notifications for independent expenditures in statewide and legislative all elections.  City, town or county filing officers are the filing officers for notifications in a city, town, county or other local election as provided in section 16‑916.  The corporation, limited liability company or labor organization also shall notify the filing officer within the same time limit prescribed in subsection A of this section of each additional accumulation of expenditures that exceeds the threshold amount prescribed in subsection A of this section but is not required to register again during that election cycle after the initial registration.  A corporation, limited liability company or labor organization may register with the filing officer and provide a notarized, sworn statement of authority in advance of the expenditure in anticipation of making an independent expenditure.  The secretary of state shall provide for electronic filing for registrations and notifications and shall provide for website access to the information for the public.  Filings at the secretary of state's office shall be in the form prescribed by the secretary of state.  Other filing officers shall prescribe the format for filing registrations and notifications and shall provide for public access to that information.  On or after November 27, 2012 and at the request of the local election filing officer, the secretary of state may provide for electronic filing pursuant to this section for local elections.

C.  The registration shall include all of the following:

1.  The name and address of the corporation, limited liability company or labor organization.

2.  The name, title, electronic mail address and telephone number of the person authorizing the independent expenditure.

D.  Each notification shall include all of the following:

1.  The name and address of the corporation, limited liability company or labor organization making the independent expenditure.

2.  The amount of the expenditure and the name of the vendor or other payee receiving the expenditure.

3.  The name of the candidate and race in which the expenditure was made and whether the expenditure was in support of or opposition to the candidate.

4.  The communication medium and description of what was purchased with the expenditure.

5.  The date of the expenditure.

E.  If the corporation, limited liability company or labor organization did not register and provide a notarized sworn statement in advance of the expenditure as prescribed by this section, the corporation, limited liability company or labor organization shall file with the secretary of state or other appropriate filing officer within five days after an initial threshold expenditure as prescribed in subsection A of this section a notarized sworn statement that the person, agent or officer filing the registration and notice had authority to make that expenditure on behalf of the corporation, limited liability company or labor organization.  Until the secretary of state or other filing officer receives the notarized sworn statement, the filing officer secretary of state shall categorize the notification as unverified.  If the secretary of state or other filing officer does not receive the notarized sworn statement within the required five day time frame, the notification shall be categorized as both unverified and delinquent.  The filing officer secretary of state shall make reasonable efforts to contact the entity that made the expenditure and remove the notification from public view within a reasonable time if unable to verify that the entity made the expenditure and all penalties prescribed in this section apply.

F.  Any literature or advertisement that is purchased with monies from a corporation, limited liability company or labor organization making an independent expenditure in an attempt to influence the outcome of a candidate election shall disclose the name of the corporation, limited liability company or labor organization making the expenditure.  Any disclosure statement required by this section shall be printed clearly and legibly in a conspicuous manner.  If the communication is broadcast on radio, the information shall be spoken at the end of the communication.  If the communication is broadcast on a telecommunications system, the information shall be both written and spoken at the end of the communication, except that if the disclosure statement is written for at least five seconds of a thirty second advertisement broadcast or ten seconds of a sixty second advertisement broadcast, a spoken disclosure statement is not required.  If the communication is broadcast on a telecommunications system, the written disclosure statement shall be printed in letters equal to or larger than four per cent of the vertical picture height.  The literature or advertisement shall include the words "paid for by" in the disclosure followed by the name of the entity making the expenditure and shall also state that it is not authorized by any candidate or candidate's campaign committee.

G.  Subsection F of this section does not apply to bumper stickers, pins, buttons, pens and similar small items on which the statements required in subsection F of this section cannot be conveniently printed or to a communication by an organization solely to its members.

H.  Any corporation, limited liability company or labor organization that fails to register, notify or disclose as required by this section is liable in a civil action pursuant to section 16‑924 brought by the attorney general, county attorney or city or town attorney, as appropriate, for a civil penalty of up to three times the total amount of the expenditure.

I.  Any person who makes a knowingly false filing relating to an independent expenditure pursuant to this section is guilty of a class 1 misdemeanor.

J.  For violations that occur before November 27, 2012, A reasonable cause determination for a violation of this section may only be made by the secretary of state's office and not by any other filing officerOn or after November 27, 2012, the local election jurisdiction and filing officers may make their own reasonable cause determinations for violations of this section or may elect to continue to have the office of the secretary of state make those reasonable cause determinations on their behalf.  A civil or criminal enforcement action may not be filed until after the issuance of a reasonable cause determination.

K.  Any entity that makes an independent expenditure and that is organized primarily for the purpose of influencing an election and that is a combination of corporations, limited liability companies or labor organizations or that is a corporation, limited liability company or labor organization that accepts donations or contributions shall file with the filing officer secretary of state as a political committee as otherwise provided by law.

L.  For the purposes of this section, an expenditure occurs on the date on which literature or advertisements are deposited at the post office for mailing, submitted to a communications system for broadcast or submitted to a newspaper or similar print medium for printing and, with respect to an expenditure for signs, the date on which a sign is first posted.

M.  For the purposes of this section:

1.  "Independent expenditure" has the same meaning prescribed in section 16‑901, except that it is made by a corporation, a limited liability company or a labor organization and except as prescribed in subsection L of this section.

2.  "Local election" means an election in a county, city, town, school district or special district. END_STATUTE

Sec. 6.  Section 16-916, Arizona Revised Statutes, is amended to read:

START_STATUTE16-916.  Filing statements of contributions and expenditures; public inspection

A.  Except as provided in subsection B of this section, the statements, designations and reports required to be filed pursuant to this article shall be filed as follows:

1.  in the office of the secretary of state for political committees supporting or opposing the recall of a public officer elected statewide or to the legislature, supporting or opposing the circulation of petitions for ballot measures, questions and propositions appearing on a state general election any ballot or the recall of public officials elected statewide or to the legislature or supporting or opposing candidates for state offices and members of the legislature, for justices of the supreme court, for judges of the court of appeals any elected office and for a statewide supporting or opposing an initiative or referendum or any measure, question or proposition appearing on a state general election any ballot.  The office of the secretary of state shall post to its website in a format that is viewable by the public the campaign finance information prescribed by this section.

2.  With the county officer in charge of elections for political committees supporting or opposing the recall of public officers elected to county offices, school district governing boards, community college district governing boards or judges of the superior court, supporting the circulation of petitions for ballot measures, questions and propositions appearing on a county election ballot or for the recall of a public officer elected to county offices, school district governing boards, community college district governing boards or judges of the superior court or supporting or opposing candidates for county offices, school district governing board members or ballot questions, community college district governing board members or ballot questions, judges of the superior court seeking retention, special taxing districts and a county initiative or referendum or any measure or proposition appearing on a county election ballot.  For any county with a population of more than one hundred thousand persons that operates a website, the county officer in charge of elections shall post to that website in a format that is viewable by the public the campaign finance information prescribed by this section, which shall include the names of candidates who have filed an exemption statement pursuant to section 16-902.01, subsection A with that filing officer. 

3.  With the city or town clerk for political committees supporting or opposing the recall of public officers elected to city or town offices, supporting the circulation of petitions for ballot measures, questions and propositions appearing on a city or town election ballot or recall of public officers elected for city or town offices or supporting or opposing candidates for city or town offices and for a city or town initiative or referendum or any measure or proposition appearing on a city or town election ballot.  For any city or town with a population of more than two thousand five hundred persons that operates a website, the city or town shall post to that website in a format that is viewable by the public the campaign finance information prescribed by this section, which shall include the names of candidates who have filed an exemption statement pursuant to section 16‑902.01, subsection A.  For a city or town without a website, the information shall be posted on the website operated by an association of cities and towns in this state

B.  Campaign finance reports required pursuant to section 16‑913 for the office of member of the legislature and statewide offices shall be filed with the secretary of state in the manner prescribed by the secretary of state.  The secretary of state may provide through the procedures manual adopted pursuant to section 16‑452 for an alternative method for providing public access to the reports prescribed by this section.

C.  For all statements, designations and reports, the date of filing is the date of actual receipt by the officer with whom the document is required to be filed secretary of state except as follows:

1.  For documents filed by certified mail with a United States mail postmark, the date of mailing constitutes the date of filing.

2.  For documents filed by commercial delivery services that provide a standardized delivery confirmation process, the date of delivery confirmation constitutes the date of filing.

3.  For documents filed by commercial delivery services that provide for electronic tracking of specific delivery packages, the date of electronic confirmation of delivery constitutes the date of filing.

D.  If the date for filing any statement, designation or report required by this article is a Saturday, a Sunday or another legal holiday, the filing deadline is the next day that is not a Saturday, a Sunday or another legal holiday. END_STATUTE

Sec. 7.  Section 16-916.01, Arizona Revised Statutes, is amended to read:

START_STATUTE16-916.01.  Electronic filing; statements of contributions and expenditures

A.  Statements, designations and reports that are filed pursuant to this article in the office of the secretary of state in electronic format shall be filed using computer programs that are provided or approved by the secretary of state.  The secretary of state shall provide computer programs to accommodate electronic filings and shall implement and maintain a system for the electronic collection, filing and dissemination of materials filed pursuant to section 16‑916, subsection A, paragraph 1A county officer in charge of elections may implement an electronic filing system for statements, designations and reports that are required by this article to be filed with the county officer in charge of elections.  Subsections B through F of this section apply to an electronic filing program operated by a county.

B.  If the filings are complete and correct, any statements, designations or reports that are filed in the secretary of state's electronic filing format are deemed to comply with:

1.  The filing requirements of this chapter.

2.  The requirement that a filing be made under oath or be submitted with a written signature.

C.  A statement, designation or report that is filed in electronic format is deemed to be filed under penalty of perjury if the printed format version of that document is required to be filed under penalty of perjury.

D.  A person or political committee that submits any statement, designation or report pursuant to this chapter that is not properly formatted or that does not contain the information prescribed by this chapter has not complied with the reporting requirements of this chapter and is subject to penalties and enforcement as otherwise provided by law.

E.  During the implementation of an electronic filing system, the county officer in charge of elections may require that statements, designations or reports be filed with an additional written or printed copy.

F.  E.  For an electronic filing system implemented by the secretary of state or other filing officer, the filing officer secretary of state shall designate one or more approved transmittal formats and methods.END_STATUTE

Sec. 8.  Section 16-924, Arizona Revised Statutes, as amended by Laws 2013, chapter 209, section 4, is amended to read:

START_STATUTE16-924.  Civil penalties; attorney general

A.  Unless another penalty is specifically prescribed in this title, if the filing officer for campaign finance reports designated pursuant to section 16‑916, subsection A secretary of state has reasonable cause to believe that a person is violating any provision of this title, except for violations of chapter 6, article 2, the secretary of state shall notify the attorney general for a violation regarding a statewide office or the legislature, the county officer in charge of elections shall notify the county attorney for that county for a violation regarding a county office or the city or town clerk shall notify the city or town attorney for a violation regarding a city or town office.  The attorney general, county attorney or city or town attorney, as appropriate, may serve on the person an order requiring compliance with that provision.  The order shall state with reasonable particularity the nature of the violation and shall require compliance within twenty days from the date of issuance of the order.  The alleged violator has twenty days from the date of issuance of the order to request a hearing pursuant to title 41, chapter 6.

B.  If a person fails to take corrective action within the time specified in the compliance order issued pursuant to subsection A of this section, the attorney general, county attorney or city or town attorney, as appropriate, shall issue an order assessing a civil penalty of not more than one thousand dollars.  The person alleged to have violated the compliance order has thirty days from the date of issuance of the order assessing the civil penalty to request a hearing pursuant to title 41, chapter 6.

C.  Any party aggrieved by an order or decision of the attorney general, county attorney or city or town attorney, as appropriate, may appeal to the superior court as provided in title 12, chapter 7, article 6.

D.  For the purposes of this section, failure to comply with a compliance order issued by the attorney general, county attorney or city or town attorney, as appropriate, as prescribed in subsection A of this section is deemed an intentional act.

E.  Notwithstanding subsection A of this section,

1.  if the secretary of state has made a reasonable cause finding pursuant to this section regarding a violation by the attorney general, the secretary of state shall notify the county attorney of the county in which the violation occurred, and the county attorney may serve on the attorney general an order requiring compliance with that provision as prescribed by this section.  The county attorney may use enforcement authority otherwise prescribed for the attorney general for enforcement of this title for violations referred to the county attorney pursuant to this subsection.

2.  If a county elections officer has made a reasonable cause finding pursuant to this section regarding a violation by the county attorney of that county, the county elections officer shall notify the attorney general and the attorney general may serve on the county attorney an order requiring compliance with that provision as prescribed by this section.

3.  If a city or town clerk has made a reasonable cause finding pursuant to this section regarding a violation by the city or town attorney, the city or town clerk shall notify the county attorney of the county in which the violation occurred, and the county attorney may serve on the city or town attorney an order requiring compliance with that provision as prescribed by this section. END_STATUTE

Sec. 9.  Section 16-924, Arizona Revised Statutes, as amended by Laws 2011, chapter 332, section 23, is amended to read:

START_STATUTE16-924.  Civil penalties; attorney general

A.  Unless another penalty is specifically prescribed in this title, if the filing officer for campaign finance reports designated pursuant to section 16‑916, subsection A secretary of state has reasonable cause to believe that a person is violating any provision of this title, except for violations of chapter 6, article 2, the secretary of state shall notify the attorney general for a violation regarding a statewide office or the legislature, the county officer in charge of elections shall notify the county attorney for that county for a violation regarding a county office or the city or town clerk shall notify the city or town attorney for a violation regarding a city or town office.  The attorney general, county attorney or city or town attorney, as appropriate, may serve on the person an order requiring compliance with that provision.  The order shall state with reasonable particularity the nature of the violation and shall require compliance within twenty days from the date of issuance of the order.  The alleged violator has twenty days from the date of issuance of the order to request a hearing pursuant to title 41, chapter 6.

B.  If a person fails to take corrective action within the time specified in the compliance order issued pursuant to subsection A of this section, the attorney general, county attorney or city or town attorney, as appropriate, shall issue an order assessing a civil penalty of not more than one thousand dollars.  The person alleged to have violated the compliance order has thirty days from the date of issuance of the order assessing the civil penalty to request a hearing pursuant to title 41, chapter 6.

C.  Any party aggrieved by an order or decision of the attorney general, county attorney or city or town attorney, as appropriate, may appeal to the superior court as provided in title 12, chapter 7, article 6.

D.  For the purposes of this section, failure to comply with a compliance order issued by the attorney general, county attorney or city or town attorney, as appropriate, as prescribed in subsection A of this section is deemed an intentional act. END_STATUTE

Sec. 10.  Subject to the requirements of article IV, part 1, section 1, subsection (6), Constitution of Arizona, section 16-958, Arizona Revised Statutes, is amended to read:

START_STATUTE16-958.  Manner of filing reports

A.  Any person who has previously reached the dollar amount specified in section 16‑941, subsection D for filing an original report shall file a supplemental report each time previously unreported independent expenditures specified by that subsection exceeds one thousand dollars.  Such reports shall be filed at the times specified in subsection B of this section and shall identify the dollar amount being reported, the candidate and the date, and no other detail is required in reports made pursuant to this section.

B.  Any person who must file an original report pursuant to section 16‑941, subsection D or who must file a supplemental report for previously unreported amounts pursuant to subsection A of this section shall file as follows:

1.  Before the beginning of the primary election period, the person shall file a report on the first of each month, unless the person has not reached the dollar amount for filing an original or supplemental report on that date.

2.  Thereafter, except as stated in paragraph 3 of this subsection, the person shall file a report on any Tuesday by which the person has reached the dollar amount for filing an original or supplemental report.

3.  During the last two weeks before the primary election and the last two weeks before the general election, the person shall file a report within one business day of reaching the dollar amount for filing an original or supplemental report.

C.  Any filing under this article on behalf of a candidate may be made by the candidate's campaign committee.  All candidates shall deposit any check received by and intended for the campaign and made payable to the candidate or the candidate's campaign committee, and all cash received by and intended for the campaign, in the candidate's campaign account before the due date of the next report specified in subsection B of this section.  No candidate or person acting on behalf of a candidate shall conspire with a donor to postpone delivery of a donation to the campaign for the purpose of postponing the reporting of the donation in any subsequent report.

D.  The secretary of state shall immediately notify the commission of the filing of each report under this section and deliver a copy of the report to the commission, and the commission shall promptly mail or otherwise deliver a copy of each report filed pursuant to this section to all participating candidates opposing the candidate identified in section 16‑941, subsection D.

E.  Any report filed pursuant to this section or section 16‑916, subsection A, paragraph 1 or subsection B shall be filed in electronic format.  The secretary of state shall distribute computer software to political committees to accommodate such electronic filing.

F.  During the primary election period and the general election period, all candidates shall make available for public inspection all bank accounts, campaign finance reports and financial records relating to the candidate's campaign, either by immediate disclosure through electronic means or at the candidate's campaign headquarters, in accordance with rules adopted by the commission. END_STATUTE

Sec. 11.  Conditional enactment

A.  Section 16-924, Arizona Revised Statutes, as amended by Laws 2013, chapter 209, section 4 and section 8 of this act is effective only if Laws 2013, chapter 209, the subject of referendum petition R‑03‑2014, is approved by a vote of the people at the next general election or if Laws 2013, chapter 209, the subject of referendum petition R‑03‑2014, fails to be referred to the voters at the next general election.

B.  Section 16-924, Arizona Revised Statutes, as amended by Laws 2011, chapter 332, section 23 and section 9 of this act is effective only if Laws 2013, chapter 209, the subject of referendum petition R‑03‑2014, is rejected by a vote of the people at the next general election.

Sec. 12.  Requirements for enactment; three-fourths vote

Pursuant to article IV, part 1, section 1, subsection (6), Constitution of Arizona, section 16-958, Arizona Revised Statutes, as amended by section 10 of this act is effective only on the affirmative vote of at least three‑fourths of the members of each house of the legislature.