Page 1, between lines 1 and 2,
insert:
"Section 1. Section
16-311, Arizona Revised Statutes, as amended by Laws 2016, chapter 79, section
5, is amended to read:
START_STATUTE16-311. Nomination papers; filing; definitions
A. Any person desiring to
become a candidate at a primary election for a political party and to have the person's
name printed on the official ballot shall be a qualified elector of such party
and, not less than ninety nor more than
one hundred eighty twenty days before the primary
election, shall sign and cause to be filed a nomination paper giving the person's
actual residence address or description of place of residence and post office
address, naming the party of which the person desires to become a candidate,
stating the office and district or precinct, if any, for which the person
offers the person's candidacy, stating the exact manner in which the person
desires to have the person's name printed on the official ballot pursuant to
subsection G of this section, and giving the date of the primary election and,
if nominated, the date of the general election at which the person desires to
become a candidate. A candidate for public office shall be a
qualified elector at the time of filing and shall reside in the county,
district or precinct that the person proposes to represent.
B. Any person desiring to
become a candidate at any nonpartisan election and to have the person's name
printed on the official ballot shall be at the time of filing a qualified
elector of such county, city, town or district and, not less than ninety nor more than one
hundred eighty twenty days before the
election, shall sign and cause to be filed a nomination paper giving the
person's actual residence address or description of place of residence and post
office address, stating the office and county, city, town or district and ward
or precinct, if any, for which the person offers the person's candidacy,
stating the exact manner in which the person desires to have the person's name
printed on the official ballot pursuant to subsection G of this section and
giving the date of the election. A candidate for office shall reside at the
time of filing in the county, city, town, district, ward or precinct that the
person proposes to represent.
C. Notwithstanding
subsection B of this section, any city or town may adopt by ordinance for its
elections the time frame provided in subsection A of this section for filing
nomination petitions. Such ordinance shall be adopted not less than
one hundred twenty days before the first election to which it applies.
D. All persons desiring
to become a candidate shall file with the nomination paper provided for in
subsection A of this section a declaration, which shall be printed in a form
prescribed by the secretary of state. The declaration shall include facts sufficient to show that,
other than the residency requirement provided in subsection A of this section
and the satisfaction of any monetary penalties, fines or judgments as
prescribed in subsection I of this section, the candidate will be qualified at
the time of election to hold the office the person seeks, and that for any
monetary penalties, fines or judgments as prescribed in subsection I of this
section, the candidate has made complete payment before the time of filing.
E. The nomination paper
of a candidate for the office of United States senator or representative in
Congress, for the office of presidential elector or for a state office,
including a member of the legislature, or for any other office for which the
electors of the entire state or a subdivision of the state greater than a
county are entitled to vote, shall be filed with the secretary of state no
later than 5:00 p.m. on the last date for filing.
F. The nomination paper
of a candidate for superior court judge or for a county, district and precinct
office for which the electors of a county or a subdivision of a county other
than an incorporated city or town are entitled to vote shall be filed with the
county elections officer no later than 5:00 p.m. on the last date for filing as
prescribed by subsection A of this section. The nomination paper of
a candidate for a city or town office shall be filed with the city or town
clerk no later than 5:00 p.m. on the last date for filing. The
nomination paper of a candidate for school district office shall be filed with
the county school superintendent no later than 5:00 p.m. on the last date for
filing.
G. The nomination paper
shall include the exact manner in which the candidate desires to have the
person's name printed on the official ballot and shall be limited to the
candidate's surname and given name or names, an abbreviated version of such
names or appropriate initials such as "Bob" for "Robert",
"Jim" for "James", "Wm." for "William"
or "S." for "Samuel". Nicknames are permissible, but in no
event shall nicknames, abbreviated versions or initials of given names suggest
reference to professional, fraternal, religious or military titles. No other
descriptive name or names shall be printed on the official ballot, except as
provided in this section. Candidates' abbreviated names or nicknames may be
printed within quotation marks. The candidate's surname shall be printed
first, followed by the given name or names.
H. A person who does not
file a timely nomination paper that complies with this section is not eligible
to have the person's name printed on the official ballot for that office. The
filing officer shall not accept the nomination paper of a candidate for state
or local office unless the person provides or has provided all of the
following:
1. The financial
disclosure statement as prescribed for candidates for that office.
2. The declaration of
qualification and eligibility as prescribed in subsection D of this section.
I. Except in cases where
the liability is being appealed, the filing officer shall not accept the
nomination paper of a candidate for state or local office if the person is
liable for an aggregation of one thousand dollars or more in fines, penalties,
late fees or administrative or civil judgments, including any interest or
costs, in any combination, that have not been fully satisfied at the time of
the attempted filing of the nomination paper and the liability arose from
failure to comply with or enforcement of chapter 6 of this title.
J. For the purposes of
this title:
1. "Election
district" means the state, any county, city, town, precinct or other
political subdivision or a special district that is not a political
subdivision, that is authorized by statute to conduct an election and that is
authorized or required to conduct its election in accordance with this title.
2. "Nomination
paper" means the form filed with the appropriate office by a person
wishing to declare the person's intent to become a candidate for a particular
political office. END_STATUTE
Sec. 2. Section 16-901, Arizona Revised Statutes, as added by Laws 2016,
chapter 79, section 11, is amended to read:
START_STATUTE16-901. Definitions
In this
chapter, unless the context otherwise requires:
1. "Advertisement"
means information or materials, other than nonpaid social media messages, that are
mailed, e‑mailed, posted, distributed, published, displayed, delivered,
broadcasted or placed in a communication medium and that are for the purpose of
influencing an election.
2. "Affiliate"
means any organization that controls, is controlled by or is under common
control with a corporation, limited liability company or labor organization.
3. "Agent"
means any person who has actual authority, either express or implied, to
represent or make decisions on behalf of another person.
4. "Ballot measure
expenditure" means an expenditure made by a person that expressly
advocates the support or opposition of a clearly identified ballot measure.
5. "Best
effort" means that a committee treasurer or treasurer's agent makes at
least one written effort, including an attempt by e-mail, text message, private
message through social media or other similar communication, or at least one
oral effort that is documented in writing to identify the contributor of an
incomplete contribution.
6. "Calendar
quarter" means a period of three consecutive calendar months ending on
March 31, June 30, September 30 or December 31.
7. "Candidate"
means an individual who receives contributions or makes expenditures or who
gives consent to another person to receive contributions or make expenditures
on behalf of that individual in connection with the candidate's nomination,
election or retention for any public office.
8. "Candidate
committee" includes the candidate.
9. "Clearly
identified candidate" means that the name or a description, image,
photograph or drawing of the candidate appears or the identity of the candidate
is otherwise apparent by unambiguous reference.
10. "Committee"
means a candidate committee, a political action committee or a political party.
11. "Contribution"
means any money, advance, deposit or other thing of value that is made to a
person for the purpose of influencing an election. Contribution includes:
(a) A contribution that
is made to retire campaign debt from a previous election cycle.
(b) Money or the fair
market value of anything that is directly or indirectly provided to an elected
official for the specific purpose of defraying the expense of communications
with constituents.
(c) The full purchase
price of any item from a committee.
(d) A loan that is made
to a committee for the purpose of influencing an election, to the extent the
loan remains outstanding.
12. "Control"
means to possess, directly or indirectly, the power to direct or to cause the
direction of the management or policies of another organization, whether
through voting power, ownership, contract or otherwise.
13. "Coordinate",
"coordinated" or "coordination" means the coordination of
an expenditure as proscribed by section 16-922.
14. "Coordinated
party expenditures" means expenditures that are made by a political party
to directly pay for goods or services on behalf of its nominee.
15. "District
office" means an elected office established or organized pursuant to title
15 or title 48.
16. "Earmarked"
means a designation, instruction or encumbrance between the transferor of a
contribution and a transferee that requires the transferee to make a
contribution to a clearly identified candidate.
17. "Election"
means any election for any ballot measure in this state or any candidate
election during a primary, general, recall, special or runoff election for any
office in this state other than a federal office and a political party office
prescribed by chapter 5, article 2 of this title.
18. "Election
cycle" means the two-year period between successive statewide general
elections or, for cities and towns, the two-year period between the scheduled
date of the city's or town's second, runoff or general election and the
scheduled date of the immediately following second, runoff or general election,
however designated by the city or town. for purposes of a recall
election, "election cycle" means the period between issuance of a
recall petition serial number and the latest of the following:
(a) The date of the
recall election that is called pursuant to section 19-209.
(b) The date that a
resignation is accepted pursuant to section 19‑208.
(c) The date that the
receiving officer provides notice pursuant to section 19-208.01 that the number
of signatures is insufficient.
19. "Employee"
means an individual who is entitled to compensation for labor or services
performed for the individual's employer.
20. "Employer"
means any person that pays compensation to and directs the labor or services of
any individual in the course of employment.
21. "Enforcement
officer" means the attorney general or the county, city or town attorney
with authority to collect fines or issue penalties with respect to a given
election pursuant to section 16-938.
22. "Entity"
means a corporation, limited liability company, labor organization,
partnership, trust, association, organization, joint venture, cooperative,
unincorporated organization or association or other organized group that consists
of more than one individual.
23. "Excess contribution" means a
contribution that exceeds the applicable contribution limits for a particular
election.
23. 24. "Exclusive insurance
contract" means an insurance producer's contract with an insurer that does
either of the following:
(a) Prohibits the producer
from soliciting insurance business for any other insurer.
(b) Requires a first
right of refusal on all lines of insurance business written by the insurer and
solicited by the producer.
24. 25. "Expenditure" means
any purchase, payment or other thing of value that is made by a person for the
purpose of influencing an election.
25. 26. "Family contribution"
means any contribution that is provided to a candidate's committee by the
parent, grandparent, aunt, uncle, child or sibling of the candidate or the
candidate's spouse, including the spouse of any of the listed family members,
regardless of whether the relation is established by marriage or adoption.
26. 27. "Filing officer"
means the secretary of state or the county, city or town officer in charge of
elections for that jurisdiction who accepts statements and reports for those
elections pursuant to section 16-928.
27. 28. "Firewall" means a
written policy that precludes one person from sharing information with another
person.
28. 29. "Identification" or
"identify" means:
(a) For an individual,
the individual's first and last name, residence location or street address and
occupation and the name of the individual's primary employer.
(b) For any other person,
the person's full name and physical location or street address.
29. 30. "Incomplete
contribution" means any contribution that is received by a committee for
which the contributor's complete identification has not been obtained.
30. 31. "Independent
expenditure" means an expenditure by a person, other than a candidate
committee, that complies with both of the following:
(a) Expressly advocates
the election or defeat of a clearly identified candidate.
(b) Is not made in
cooperation or consultation with or at the request or suggestion of the
candidate or the candidate's agent.
31. 32. "In-kind
contribution" means a contribution of goods, services or anything of value
that is provided without charge or at less than the usual and normal charge.
32. 33. "Insurance producer"
means a person that:
(a) Is required to be
licensed to sell, solicit or negotiate insurance.
(b) Has an exclusive
insurance contract with an insurer.
33. 34. "Itemized" means that
each contribution received or expenditure made is set forth separately.
34. 35. "Labor organization"
means any employee representation organization that exists for the purpose of
dealing with employers concerning grievances, labor disputes, wages, rates of
pay, hours of employment or other conditions of employment.
35. 36. "Legislative office"
means the office of representative in the state house of representatives or
senator in the state senate.
36. 37. "Mega pac status"
means official recognition that a political action committee has received
contributions from five hundred or more individuals in amounts of ten dollars
or more in the four-year period immediately before application to the secretary
of state.
37. 38. "Nominee" means a
candidate who prevails in a primary election for partisan office and includes
the nominee's candidate committee.
38. 39. "Person" means an
individual or a candidate, nominee, committee, corporation, limited liability
company, labor organization, partnership, trust, association, organization,
joint venture, cooperative or unincorporated organization or association.
39. 40. "Personal monies"
means any of the following:
(a) Assets to which the
individual or individual's spouse has either legal title or an equitable
interest.
(b) Salary and other earned
income from bona fide employment of the individual or individual's spouse.
(c) Dividends and
proceeds from the sale of investments of the individual or individual's spouse.
(d) Bequests to the
individual or individual's spouse.
(e) Income to the individual
or individual's spouse from revocable trusts for which the individual or
individual's spouse is a beneficiary.
(f) Gifts of a personal
nature to the individual or individual's spouse that would have been given
regardless of whether the individual became a candidate or accepted a
contribution.
(g) The proceeds of loans
obtained by the individual or individual's spouse that are secured by
collateral or security provided by the individual or individual's spouse.
(h) Family contributions.
40. 41. "Political action
committee" means an entity that is required to register as a political
action committee pursuant to section 16-905.
41. 42. "Political party"
means a committee that meets the requirements for recognition as a political
party pursuant to chapter 5 of this title.
42. 43. "Primary purpose"
means an entity's predominant purpose. Notwithstanding any other law or rule,
an entity is not organized for the primary purpose of influencing an election
if all of the following apply at the
time the contribution or expenditure is made:
(a) The entity has tax
exempt status under section 501(a) of the internal revenue code.
(b) Except for a
religious organization, assembly or institution, the entity has properly filed
a form 1023 or form 1024 with the internal revenue service or the equivalent
successor form designated by the internal revenue service.
(c) The entity's tax
exempt status has not been denied or revoked by the internal revenue service.
(d) The entity remains in
good standing with the corporation commission.
(e) The entity has
properly filed a form 990 with the internal revenue service or the equivalent
successor form designated by the internal revenue service in compliance with the most recent filing deadline
established by internal revenue service regulations or policies.
43. 44. "Retention" means the
election process by which a superior court judge, appellate court judge or
supreme court justice is retained in office as prescribed by article VI,
section 38 or 40, Constitution of Arizona.
44. 45. "Separate segregated
fund" means a fund established by a corporation, limited liability
company, labor organization or partnership that is required to register as a
political action committee.
45. 46. "Social media
messages" means forms of communication, including internet sites for
social networking or blogging, through which users create a personal profile
and participate in online communities to share information, ideas and personal
messages.
46. 47. "Sponsor" means any
person that establishes, administers or contributes financial support to the
administration of a political action committee or that has common or
overlapping membership or officers with that political action committee.
47. 48. "Standing committee"
means a political action committee or political party that is active in more
than one reporting jurisdiction in this state and that files a statement of
organization in a format prescribed by the secretary of state.
48. 49. "Statewide office"
means the office of governor, secretary of state, state treasurer, attorney
general, superintendent of public instruction, corporation commissioner or mine
inspector.
49. 50. "Surplus monies"
means those monies of a terminating committee that remain after all of the
committee's expenditures have been made, all debts have been extinguished and
the committee ceases accepting contributions. END_STATUTE
Sec. 3. Section
16-907, Arizona Revised Statutes, as added by Laws 2016, chapter 79, section
12, is amended to read:
START_STATUTE16-907. Committee recordkeeping; treasurer; accounts
A. A committee treasurer
is the custodian of the committee's books and accounts. A committee
may not make a contribution, expenditure or disbursement without the
authorization of the treasurer or the treasurer's designated agent.
B. All committee monies
shall be deposited in one or more bank accounts held by the financial
institutions listed in the committee's statement of
organization. Committee bank accounts shall be segregated as
follows:
1. Committee monies shall
be segregated in different bank accounts from personal monies.
2. Contributions from
individuals, and committees partnershipS, candidate committees, political action
committees or political parties shall be segregated in different
bank accounts from contributions from corporations,
limited liability companies and labor organizations other donors.
3. Contributions to a
political party to defray operating expenses or support party-building
activities shall be segregated in different bank accounts from contributions
used to support candidates.
4. For a committee that
is a political party, the committee may commingle monies from any source in a
single bank account if the account is maintained as prescribed in 11 Code of
Federal Regulations section 106.7.
5. For contributions
intended to influence a recall election, the committee shall segregate those
contributions into bank accounts that are different from those intended to
influence any other election and those recall contributions may not be used to
influence any other election.
C. A committee shall
exercise its best effort to obtain the required information for any incomplete
contribution received that is required to be itemized and reported. The
committee shall clearly ask for identification and inform the contributor that
the committee is required by law to seek identification. The
committee shall report in an amended report any contributor identification
obtained after the contribution has been disclosed on a campaign finance
report.
D. A committee shall keep
records of the following:
1. All contributions made
or received by the committee.
2. The identification of
any contributor that contributes in the aggregate at least fifty dollars to the
committee during the election cycle, the date and amount of each contribution
and the date of deposit into the committee's account.
3. Cumulative totals
contributed by each contributor during the election cycle.
4. The name and address
of every person that receives a contribution, expenditure or disbursement from
the committee, including the date and amount, and, for any expenditure or
disbursement, the purpose of the expenditure or disbursement. A contribution is deemed made when tendered to the
committee's possession. An expenditure or disbursement is deemed made when
promised, obligated, contracted for or spent.
E. A committee may accept
a cash contribution.
F. A committee may accept
a contribution by written or electronic instrument, including a check, credit
card, payroll deduction, online payment or electronic transfer, if the
contributor is an account holder of the instrument. Unless designated as a
joint contribution, a contribution shall be attributed to the account holder
that signs the instrument or authorizes the transaction.
G. A committee shall
preserve all records required to be kept by this section for two years
following the end of the election cycle.
H. On request of the
filing officer or enforcement officer, a committee that has filed a statement
of organization shall produce any of the records required to be kept pursuant
to this section to the filing officer or enforcement officer.
I. A person that
qualifies as a committee as prescribed by section 16‑905 shall report all
contributions, expenditures and disbursements that occurred before qualifying
as a committee and shall maintain and produce records as prescribed by this
section." END_STATUTE
Renumber to conform
Page 1, line 2, after the second
comma insert "as amended by Laws 2015, chapter 297, section 5,"
Line 20, after the period insert
"if no political committee has
contributed the requisite percentage, the names of the three political committees
that have made the largest amount of aggregate contributions shall be
disclosed."
Page 2, after line 14, insert
"Sec. 5. Section
16-913, Arizona Revised Statutes, as added by Laws 2016, chapter 79, section
12, is amended to read:
START_STATUTE16-913. Candidate committee contribution limits; requirements
A. A candidate committee may not contribute more
than the following amounts per election cycle to a candidate committee for
another candidate:
1. Six thousand two hundred fifty dollars to a
candidate committee for a candidate for city, town, county or district office.
2. Six thousand two hundred fifty dollars to a
candidate committee for a candidate for legislative office.
3. Six thousand two hundred fifty dollars to a
candidate committee for a candidate for statewide office.
A. A candidate committee shall not make
contributions to a candidate committee for another candidate.
B. A candidate committee
may transfer unlimited contributions to any one or more other candidate
committees for the that same candidate without regard to the office sought
under the following conditions:
1. Both candidate committees must be registered
with an officer prescribed by subdivision (a) of this paragraph or both must be
registered with an officer prescribed by subdivision (b) of this paragraph:
(a) A filing officer in charge of city, town,
county or district elections for any one or more offices, including offices
with different filing officers prescribed in this subdivision.
(b) The secretary of state, for any
one or more offices for which the secretary of state is the filing officer.
1. A candidate committee for a
city or town candidate shall not transfer contributions to that same
candidate's campaign committee for a statewide, legislative or county office.
2. Contributions
originally made to the transferring candidate committee are deemed to be
contributions to the receiving candidate committee. On transfer, an
individual's aggregate contributions to both candidate committees during the
election cycle shall not exceed the individual's contribution limit for that
candidate.
C. A candidate committee
shall not knowingly accept
contributions in excess of the contribution limits prescribed by
law. A candidate committee that
unknowingly accepts an excess contribution shall refund or
reattribute any excess contributions
contribution within sixty
days after receipt of the contribution. A candidate committee may reattribute an excess contribution only if both
of the following apply:
1. The excess contribution was received from an
individual contributor.
2. The individual contributor authorizes the
candidate committee to reattribute the excess amount to another individual who
was identified as a joint account holder in the original instrument used to
make the excess contribution.
D. A candidate committee may accept contributions
only from an individual, a partnership, a candidate committee, a political
action committee or a political party.
D. E. A candidate committee may make
unlimited contributions to a person other than a candidate's committee.
E. F. A candidate may contribute
unlimited personal monies to the candidate's own candidate committee. END_STATUTE
Sec. 6. Section 16‑914,
Arizona Revised Statutes, as added by Laws 2016, chapter 79, section 12, is
amended to read:
START_STATUTE16-914. Political action committee contribution limits;
requirements
A. A political action
committee without mega pac status may not contribute more than the following
amounts per election cycle:
1. Six thousand two
hundred fifty dollars to a candidate committee for city, town, county or
district office.
2. Six thousand two
hundred fifty dollars to a candidate committee for legislative office.
3. Six thousand two
hundred fifty dollars to a candidate committee for statewide office.
B. A political action
committee with mega pac status may contribute twice the amounts prescribed in
subsection A of this section per election cycle if the political action
committee provides the recipient candidate committee a copy of the political
action committee's certification of mega pac status.
C. A political action
committee shall not may only contribute to a
candidate committee using monies contributed by a corporation, limited liability company or labor
organization an
individual, a partnership, a candidate committee, a political action committee
or a political party.
D. A political action
committee may make unlimited contributions to persons other than candidate
committees. END_STATUTE
Sec. 7. Section
16-915, Arizona Revised Statutes, as added by Laws 2016, chapter 79, section
12, is amended to read:
START_STATUTE16-915. Political party contribution limits; requirements
A. A political party may
not contribute more than the following amounts per election cycle:
1. Ten thousand dollars
to the party's nominee for a city, town, county or district office.
2. Ten thousand dollars
to the party's nominee for legislative office.
3. One hundred thousand
dollars to the party's nominee for statewide office.
B. A political party shall not may only contribute to nominees using monies
contributed by a corporation, limited
liability company or labor organization an individual, a partnership, a candidate committee, a
political action committee or a political party.
C. A political party
shall not contribute to candidate committees other than nominees.
D. A political party may
make unlimited contributions to persons other than candidate committees and
nominees. END_STATUTE
Sec. 8. Section
16‑927, Arizona Revised Statutes, as added by Laws 2016, chapter 79, section
12, is amended to read:
START_STATUTE16-927. Campaign finance reporting period
A. A
political action committee and political party shall file a campaign finance
report covering each reporting period as follows:
1. For a calendar quarter
without an election, the political action committee or political party shall
file a quarterly report. The quarterly report shall be:
(a) Filed not later than
the fifteenth day after the calendar quarter.
(b) Complete through the
last day of the calendar quarter.
2. For a calendar quarter
with an election, the political action committee or political party shall file
a preelection and postelection report as follows:
(a) A preelection report
shall be:
(i) Filed not later than
ten days before the election.
(ii) Complete from the
first day of the applicable calendar quarter through the seventeenth day before
the election.
(b) A postelection report
shall be:
(i) Filed not later than
the fifteenth day after the applicable calendar quarter.
(ii) Complete from the
sixteenth day before the election through the last day of the applicable
calendar quarter.
B. A candidate committee
shall file a campaign finance report only during the four calendar quarters
comprising the twelve‑month period preceding the general election for the
office for which the candidate is seeking election, or for cities and towns,
the city's or town's second, runoff or general election, however designated by
the city or town. The
reporting period for a candidate committee's first campaign finance report of
the election cycle shall include the entire election cycle to date.
C. A committee shall file
campaign finance reports until terminated. END_STATUTE
Sec. 9. Heading change
The article heading of title 16,
chapter 6, article 1.5, Arizona Revised Statutes, as added by Laws 2016,
chapter 79, section 12, is changed from "inflationary adjustments" to "biennial financial adjustments".
Sec. 10. Section
16-933, Arizona Revised Statutes, as added by Laws 2016, chapter 79, section
12, is amended to read:
START_STATUTE16-933. Transfer and disposal of committee monies; limitations
A. A committee that
intends to terminate shall dispose of surplus monies as follows:
1. Return surplus monies
to the contributor.
2. Contribute surplus
monies pursuant to and within
the limits prescribed in article 1.2 of this chapter.
3. In the case of a candidate committee,
contribute surplus monies to a candidate committee for another candidate under
the following conditions:
(a) The candidate committee makes the contribution
after the time period for filing a nomination paper pursuant to section 16-311,
subsection A.
(b) The
candidate associated with the candidate committee that makes the contribution
did not file a nomination paper to run for election in the current election
cycle.
(c) In
the case of a candidate committee for legislative office, the candidate
committee makes the contribution when the legislature is not in regular
legislative session.
(d) The
candidate committee makes the contribution within the limits prescribed for
individuals in section 16-912.
3. 4. Donate surplus monies to a
nonprofit organization that has tax exempt status under section 501(c)(3) of
the internal revenue code.
4. 5. In the case of a statewide or
legislative candidate committee and subject to section 41-133, transfer surplus
monies to the candidate's officeholder expense account.
B. Surplus monies shall
not be used for or converted to personal use.
C. Any transfer of surplus monies shall comply
with section 16‑913.
D. C. This section does not preclude
the repayment of a loan to a committee.
END_STATUTE
Sec. 11. Section
16-938, Arizona Revised Statutes, as added by Laws 2016, chapter 79, section
12, is amended to read:
START_STATUTE16-938. Enforcement authority; investigation; reasonable cause;
notice of violation; administrative appeal
A. Notwithstanding section 16-1021, on receipt of
a complaint from a third party, a filing officer is the sole public officer who
is authorized to initiate an investigation into alleged violations of this
article and articles 1, 1.1, 1.2, 1.3, 1.4, 1.5 and 1.6 of this chapter,
including the alleged failure to register as a committee. A filing
officer shall limit an investigation to violations that are within the filing
officer's jurisdiction. If the filing officer declares a conflict of interest,
the filing officer may refer the investigation to any other filing officer in
this state who agrees to accept the referral.
B. The secretary of state
shall establish guidelines in the instructions and procedures manual adopted
pursuant to section 16-452 that outline the procedures, timelines and other
processes that apply to investigations by all filing officers in this state.
C. If after providing the
subject of an investigation a reasonable opportunity to respond, the filing
officer has reasonable cause to believe a person violated this article or
article 1, 1.1, 1.2, 1.3, 1.4, 1.5 or 1.6 of this chapter, the filing officer
shall refer the matter to the enforcement officer as follows:
1. For matters
investigated by the secretary of state, the secretary of state shall notify the
attorney general.
2. For matters
investigated by a county filing officer, the county filing officer shall notify
the county attorney.
3. For matters
investigated by a city or town filing officer, the city or town filing officer
shall notify the city or town attorney.
D. Before a reasonable
cause determination is made as prescribed in subsection C of this section, a
filing officer, an enforcement officer and any other public officer or employee
may not order a person to register as a committee and does not have audit or
subpoena powers to compel the production of evidence or the attendance of
witnesses concerning a potential campaign finance violation. A filing officer
may request the voluntary production of evidence or attendance of witnesses in
making a reasonable cause determination.
E. Only after receiving a
referral from the filing officer, the enforcement officer may:
1. Conduct an
investigation using the enforcement officer's subpoena powers, except that the
enforcement officer shall not compel a person to file campaign finance reports
unless the enforcement officer has determined that the person is a committee.
2. Serve the alleged
violator with a notice of violation. The notice shall state with reasonable
particularity the nature of the violation, shall specify the fine or penalty
imposed and shall require compliance within twenty days after the date of
issuance of the notice. The enforcement officer shall impose a presumptive
civil penalty equal to the value or amount of money that has been received,
spent or promised in violation of this article and articles 1, 1.1, 1.2, 1.3,
1.4, 1.5 and 1.6 of this chapter, except that after a finding of special
circumstances, the enforcement officer may impose a penalty of up to three
times the amount of the presumptive civil penalty, based on the severity,
extent or wilful nature of the alleged violation. If the notice of violation
requires a person to file campaign finance reports, the reports are not
required to be filed until the enforcement officer's notice of violation has
been upheld after any timely appeal.
3. Keep any nonpublic
information gathered by the enforcement officer in the course of the committee
status investigation confidential until the final disposition of any appeal of
the enforcement order.
F. The enforcement
officer has the sole and exclusive authority to initiate any applicable
administrative or judicial proceedings to enforce an alleged violation of this
article and articles 1, 1.1, 1.2, 1.3, 1.4, 1.5 and 1.6 of this chapter that
have been referred by the filing officer.
G. If the alleged
violator:
1. Takes corrective
action within twenty days after the date of the issuance of the notice of
violation by the enforcement officer, the alleged violator is not subject to
any penalty.
2. Does not take
corrective action within twenty days after the date of issuance of the notice
of violation by the enforcement officer, the enforcement officer shall impose
the penalty set forth in the notice and shall provide formal notice that the
imposition of the penalty is an appealable agency action pursuant to sections
41-1092.03 and 41-1092.04.
H. Within thirty days
after receiving the notice of violation from the enforcement officer the
alleged violator may request a hearing pursuant to title 41, chapter 6, article
10.
I. After the conclusion
of the administrative appeal process prescribed in title 41, chapter 6, article
10, the alleged violator may appeal to the superior court pursuant to title 12,
chapter 7, article 6 for judicial review of the final administrative decision. END_STATUTE
Sec. 12. Title 16,
chapter 7, article 1, Arizona Revised Statutes, is amended by adding section
16-1022, to read:
START_STATUTE16-1022. Campaign finance violations;
classification
A. IT IS UNLAWFUL FOR A CORPORATION, LIMITED
LIABILITY COMPANY OR LABOR ORGANIZATION TO MAKE A CONTRIBUTION TO A CANDIDATE
COMMITTEE. A CORPORATION, LIMITED LIABILITY COMPANY OR LABOR ORGANIZATION THAT
VIOLATES THIS SUBSECTION IS GUILTY OF A CLASS 2 MISDEMEANOR. THE INDIVIDUAL
THROUGH WHOM THE VIOLATION IS EFFECTED IS GUILTY OF A CLASS 6
FELONY. THIS SUBSECTION DOES NOT APPLY TO A COMMITTEE THAT IS
INCORPORATED OR ORGANIZED FOR LIMITATION OF LIABILITY.
B. IT IS UNLAWFUL FOR ANY PERSON TO MAKE A
CONTRIBUTION IN THE NAME OF ANOTHER PERSON, KNOWINGLY PERMIT A PERSON'S NAME TO
BE USED TO EFFECT A CONTRIBUTION IN THE NAME OF ANOTHER PERSON OR KNOWINGLY
ACCEPT A CONTRIBUTION MADE BY A PERSON IN THE NAME OF ANOTHER PERSON. A PERSON
WHO VIOLATES THIS SUBSECTION IS GUILTY OF A CLASS 6 FELONY.
C. IT IS UNLAWFUL FOR ANY PERSON TO MAKE A
CONTRIBUTION OR EXPENDITURE USING MONEY OR ANYTHING OF VALUE SECURED BY
PHYSICAL FORCE, JOB DISCRIMINATION OR FINANCIAL REPRISAL, INCLUDING THREATS OF
ANY FORCE, DISCRIMINATION OR REPRISAL. A PERSON WHO VIOLATES THIS SUBSECTION
IS GUILTY OF A CLASS 6 FELONY.
D. IT IS UNLAWFUL FOR ANY PERSON TO MAKE A
CONTRIBUTION OR EXPENDITURE USING DUES, FEES OR OTHEr MONIES REQUIRED AS A
CONDITION OF MEMBERSHIP IN A LABOR ORGANIZATION OR AS A CONDITION OF
EMPLOYMENT. A PERSON WHO VIOLATES THIS SUBSECTION IS GUILTY OF A CLASS 6
FELONY.END_STATUTE
Sec. 13. Filing officers; committee termination
and transition; March 2017 election
A. A
political committee that is in existence on November 8, 2016 shall be
terminated by its authorized officers on or before June 30, 2017. That
political committee shall not conduct any activity after November 8, 2016
except for winding down its operations as prescribed in title 16, chapter 6,
article 1.6, Arizona Revised Statutes, as added by Laws 2016, chapter 79,
section 12.
B. For
any political committee that has not terminated on or before June 30, 2017, the
filing officer for that jurisdiction may administratively terminate the
political committee or convert the political committee to the appropriate
committee as prescribed in title 16, chapter 6, article 1.6, Arizona Revised
Statutes, as added by Laws 2016, chapter 79, section 12, as follows:
1. For
an exploratory committee, the filing officer may convert the committee to a
candidate committee.
2. For
a political organization, the filing officer may convert the committee to a
political party.
3. For
a recall committee, ballot measure committee, candidate campaign committee or
independent expenditure committee, a separate segregated fund or any other type
of committee that is defined as a political committee in section 16-901, Arizona
Revised Statutes, as amended by Laws 2015, chapter 286, section 1 and
chapter 297, section 1, the filing officer may convert the committee to a
political action committee.
C. For
any jurisdiction that conducts an election on March 14, 2017, the filing officer
for that jurisdiction may reasonably adjust the campaign finance filing
deadlines for that election if compliance with the new filing requirements
prescribed in Laws 2016, chapter 79 would create a substantial hardship.
Sec. 14. Secretary of state's electronic
campaign finance filing system; participation; costs
Notwithstanding
section 16-928, subsection C, Arizona Revised Statutes, as added by Laws 2016,
chapter 79, section 12, for any jurisdiction that opts into the secretary of
state's electronic campaign finance filing system:
1. The jurisdiction shall
not be charged any initial or ongoing fee until after December 31, 2018.
2. Subsequent costs for
maintenance of or upgrades to the secretary of state's electronic campaign
finance filing system may be charged to participating jurisdictions, but the
secretary of state shall disclose those costs to the participating
jurisdictions no later than December 1 in the year before the fiscal year in
which those costs will be assessed, in order to allow for budget planning by
participating jurisdictions.
Sec. 15. Laws 2016,
chapter 79, section 30 is amended to read:
Sec. 30. Effective date
This act is effective from and after
December 31, 2016 the last day for filing a preelection
campaign finance report for the november 2016 general election as prescribed by
section 16‑913, subsection B, paragraph 2, Arizona Revised Statutes, as
amended by Laws 2012, chapter 257, section 2, chapter 290, section 1 and
chapter 361, section 18.
Sec. 16. Effective date
Sections 1 through 3 and sections 5
through 15 of this act are effective from and after the last day for filing a
preelection campaign finance report for the November 2016 general election as
prescribed by section 16‑913, subsection B, paragraph 2, Arizona Revised
Statutes, as amended by Laws 2012, chapter 257, section 2, chapter 290, section
1 and chapter 361, section 18."
Amend
title to conform
Bill
Number: H.B. 2297