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ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
elections; foreign contributions; certification; donations
Purpose
Subject to voter approval, statutorily prohibits the use of monies or in-kind goods or services donated by a foreign source for election administration purposes and prohibits a person, entity or committee from accepting or using monies or in-kind goods or services contributed by a foreign source to influence the outcome of a ballot measure.
Background
The Federal Election Campaign Act of 1971 (Act) prohibits a foreign national from directly or indirectly participating in the decision making process regarding a person's federal or non-federal election related activities, including by way of: 1) a contribution or donation of money or other thing of value in connection with a federal, state or local election; 2) a contribution or donation to a committee of a political party; or 3) an expenditure, independent expenditure or disbursement for electioneering communication. In 2021, the Federal Elections Commission determined that spending specifically related to ballot initiatives is generally outside the purview of the Act because such spending is not in connection with elections as defined by the Act (52 U.S.C. 30121; FEC).
Statute prohibits the state or a city, town, county, school district or other public body that conducts or administers elections from receiving or expending private monies for the purpose of preparing for, administering or conducting an election, including to register voters (A.R.S. ยง 16-407.01).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Prohibits a foreign government from giving, and a person, entity or committee from accepting or using, monies or in-kind goods or services contributed by a foreign government or a foreign nongovernmental source to influence the outcome of an election on a ballot measure.
2. Requires a person, entity or committee that is required to file campaign finance reports to certify in the reports, under penalty of perjury, that the person, entity or committee has not accepted or used prohibited foreign monies or in-kind goods or services.
3. Prohibits a government entity in Arizona from using monies or in-kind goods or services donated, directly or indirectly, by a foreign government or any foreign nongovernmental source for election administration.
4. Requires a person or vendor that provides services to a government entity for election administration to provide a certification (foreign donation certification) to the Secretary of State (SOS) that includes a dated and sworn statement, under penalty of perjury, that the person is not knowingly the direct or indirect recipient of donations from a foreign source.
5. Specifies that the foreign donation certification requirements do not apply to a person or organization when providing a facility that serves as a voting location.
6. Requires the person to update the foreign donation certification annually.
8. Requires the SOS to:
a) maintain records of submitted foreign donation certifications and to post the foreign donation certifications on the SOS's website;
b) require government entities to provide the SOS a quarterly report of all persons or vendors that provide services for election administration to the government entity; and
c) notify a government entity by email if the government entity fails to file a quarterly report as outlined, and to advise the government entity of possible enforcement actions.
9. Classifies knowingly failing to provide an accurate initial or updated foreign donation certification to the SOS as a class 1 misdemeanor.
10. Stipulates that a person's or vendor's failure to provide an accurate foreign donation certification:
a) invalidates any agreement between the person and a government entity; and
b) bars a state, county or local government entity from entering into or continuing any agreement with the person.
11. Allows the Attorney General to file an action regarding a person's knowing violation of the foreign donation prohibition or certification requirement.
12. Specifies that a foreign donation violation action may include a request for:
a) an injunction;
b) damages of at least $5,000 for each knowing violation; and
c) other relief that the court may provide.
13. Allows any qualified elector or state officer to initiate a civil action to enjoin a foreign donation violation or enforce any requirement relating to disclosure of foreign donations.
14. Requires the court to award a prevailing civil claimant:
a) injunctive relief sufficient to prevent the defendant from violations or engaging in, acts that aid or abet foreign donation violations;
b) damages in the amount of $1,000 per day from the date of noncompliance until the defendant comes into compliance; and
c) costs and attorney fees.
15. Specifies that the remedies, duties, prohibitions and penalties associated with foreign donation violations are in addition to all other causes of action, remedies or penalties as provided by law.
16. Defines person as 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 and excludes poll workers.
17. Defines foreign nongovernmental source as any individual who is not a United States Citizen or national.
18. Specifies that a foreign government or foreign nongovernmental source does not include federally recognized sovereign tribal nations.
19. Makes technical and conforming changes.
20. Requires the SOS to submit the proposition to the voters at the next general election.
21. Becomes effective if approved by the voters and on proclamation of the Governor.
Prepared by Senate Research
February 10, 2025
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