REFERENCE TITLE: campaign finance; clean elections; violations

 

 

 

State of Arizona

Senate

Fifty-second Legislature

Second Regular Session

2016

 

 

SB 1480

 

Introduced by

Senator Sherwood

 

 

AN ACT

 

amending sections 16-903, 16-905, 16-913, 16‑916, 16-924, 16‑942 and 16‑956, Arizona Revised Statutes; relating to campaign contributions and expenses.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 


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

Section 1.  Section 16-903, Arizona Revised Statutes, is amended to read:

START_STATUTE16-903.  Candidate's campaign committees; exploratory committees; designation; candidate as agent; violation; classification

A.  Each candidate who intends to receive contributions or make expenditures of more than five hundred dollars in connection with a campaign for office shall designate in the format prescribed by the filing officer a political committee for each election cycle to serve as the candidate's campaign committee.  The candidate shall make the designation pursuant to this subsection by filing a statement of organization before making any expenditures, accepting any contributions, distributing any campaign literature or circulating any petitions.  Each candidate who intends to receive contributions or make expenditures of five hundred dollars or less shall file a signed exemption statement in the format prescribed by the filing officer that states that intention before making any expenditures, accepting any contributions, distributing any campaign literature or circulating petitions.  If a candidate who has filed a five hundred dollar exemption statement receives contributions or makes expenditures of more than five hundred dollars, that candidate shall file a statement of organization with the filing officer within five business days after exceeding the five hundred dollar limit.

B.  An individual who receives contributions or makes expenditures of more than five hundred dollars for the purpose of determining whether the individual will become a candidate for election to an office in this state shall designate in the format prescribed by the filing officer a political committee to serve as the individual's exploratory committee.  The individual shall make the designation pursuant to this subsection before making any expenditures, accepting any contributions, circulating any petitions or distributing any campaign literature.

C.  An individual may have only one exploratory committee in existence at one time.  A candidate may have only one campaign committee designated for each election cycle, but a candidate may have more than one campaign committee simultaneously in existence.

D.  A political committee that supports or has supported another candidate or more than one candidate may not be designated as a candidate's campaign committee.

E.  Any candidate who receives a contribution or any loan for use in connection with the campaign of that candidate for election or who makes a disbursement in connection with that campaign shall be deemed as having received the contribution or loan or as having made the disbursement as an agent of the candidate's campaign committee for purposes of this article.

F.  An elected official is not deemed to have offered himself for nomination or election to an office within the meaning of section 38‑296 solely by the elected official's designation of a candidate campaign committee.

G.  After designating an exploratory committee, a candidate may lawfully collect signatures on nomination petitions and receive contributions.

H.  A person who violates this section is subject to a civil penalty imposed as prescribed in section 16‑924 of up to three times the amount of money that has been received, expended or promised in violation of this section or up to three times the value in money for an equivalent of money or other things of value that have been received, expended or promised in violation of this section knowingly or intentionally misstates or fails to fully disclose a contribution or expenditure or any other thing required to be reported by this article is guilty of a class 1 misdemeanor. END_STATUTE

Sec. 2.  Section 16-905, Arizona Revised Statutes, is amended to read:

START_STATUTE16-905.  Contribution limitations; violation; classification; civil penalty; complaint; reductions

A.  For an election other than for a statewide office, a contributor shall not give and an exploratory committee, a candidate or a candidate's campaign committee shall not accept contributions of more than:

1.  For an election for a legislative office, six thousand two hundred fifty dollars per election cycle from an individual.

2.  For an election other than for a legislative office, six thousand two hundred fifty dollars per election cycle from an individual.

3.  For an election for a legislative office, six thousand two hundred fifty dollars per election cycle from a single political committee, excluding a political party, not certified under subsection G of this section to make contributions at the higher limits prescribed by paragraph 5 of this subsection and subsection B, paragraph 3 of this section.

4.  For an election other than for a legislative office, six thousand two hundred fifty dollars per election cycle from a single political committee, excluding a political party, not certified under subsection G of this section to make contributions at the higher limits prescribed by subsection B, paragraph 3 of this section.

5.  Twelve thousand five hundred dollars per election cycle from a single political committee that is certified pursuant to subsection G of this section, excluding a political party.

6.  Six thousand two hundred fifty dollars per election cycle from a single partnership.  Contributions from a partnership shall be allocated to the individual partners who are contributing, as designated by the partnership.  Partnership contributions from designated partners shall be combined with other contributions by that individual partner to the same recipient and are subject to the limits on an individual prescribed by this section.  Nonpartnership monies that are contributed by an individual shall not be counted against the partnership contribution limit for that same recipient.

B.  For an election for a statewide office, a contributor shall not give and an exploratory committee, a candidate or a candidate's committee shall not accept contributions of more than:

1.  Six thousand two hundred fifty dollars per election cycle from an individual.

2.  Six thousand two hundred fifty dollars per election cycle from a single political committee, excluding a political party, not certified under subsection G of this section to make contributions at the higher limits prescribed by subsection A, paragraph 5 of this section and paragraph 3 of this subsection.

3.  Twelve thousand five hundred dollars per election cycle from a single political committee that is certified pursuant to subsection G of this section, excluding a political party.

4.  Six thousand two hundred fifty dollars per election cycle from a single partnership.  Contributions from a partnership shall be allocated to the individual partners who are contributing, as designated by the partnership.  Partnership contributions from designated partners shall be combined with other contributions by that individual partner to the same recipient and are subject to the limits on an individual prescribed by this section.  Nonpartnership monies that are contributed by an individual shall not be counted against the partnership contribution limit for that same recipient.

C.  A candidate may accept contributions from political committees, excluding political parties, as otherwise prescribed in this section and a candidate is not restricted as to the aggregate total that a candidate may lawfully receive from all political committees, excluding political parties.

D.  A nominee of a political party shall not accept contributions from all political parties or political organizations combined totaling more than ten thousand dollars for an election for an office other than a statewide office, and one hundred thousand dollars for an election for a statewide office.

E.  An individual may make contributions as otherwise prescribed by this section, and an individual is not restricted as to the aggregate total that an individual may give.  An individual may make an otherwise lawful contribution using personal monies contained in a revocable trust, which shall be reported as an individual contribution and which is subject to the limits on an individual contribution.

F.  A candidate's campaign committee or an individual's exploratory committee shall not make a loan and shall not transfer or contribute money to any other campaign or exploratory committee that is designated pursuant to this chapter or 52 United States Code section 30101 except as follows:

1.  An exploratory committee may transfer monies to a subsequent candidate's campaign committee of the individual designating the exploratory committee, subject to the limits of subsection B of this section.

2.  A candidate's campaign committee may transfer or contribute monies to another campaign committee designated by the same candidate as follows:

(a)  Subject to the contribution limits of this section per contributor, transfer or contribute monies in the aggregate from one committee to another if both committees have been designated for an election in the same year including to a committee for another office or in another jurisdiction.

(b)  Without application of the contribution limits of this section, transfer or contribute monies from one committee to another designated for an election in a subsequent year.

G.  Only political committees that received monies from five hundred or more individuals in amounts of ten dollars or more in the two year period immediately before application to the secretary of state for qualification as a political committee pursuant to this section may make contributions to candidates under subsection A, paragraph 5 of this section and subsection B, paragraph 3 of this section.  The secretary of state shall obtain information necessary to make the determination that a committee meets the requirements of this subsection and shall provide written certification of the fact to the committee.  A political committee certification is valid for four years.  A candidate's campaign committee shall not accept a contribution pursuant to this subsection unless it is accompanied by a copy of the certification.  All political committees that do not meet the requirements of this subsection are subject to the individual campaign contribution limits of subsection A, paragraphs 1 and 2 of this section and subsection B, paragraph 1 of this section.

H.  The secretary of state biennially shall adjust to the nearest ten dollars the amounts in subsections A through E of this section by the percentage change in the consumer price index and publish the new amounts for distribution to election officials, candidates and campaign committees.  For the purposes of this subsection, "consumer price index" means the consumer price index for all urban consumers, United States city average, that is published by the United States department of labor, bureau of labor statistics.

I.  The following specific limitations and procedures apply:

1.  The limits of subsections A through E of this section apply to each election cycle for any office or offices that the candidate seeks.

2.  The limits of subsections A and B of this section apply to the total contributions from all separate segregated funds established, as provided in section 16‑920, by a corporation, labor organization, trade association, cooperative or corporation without capital stock.

3.  A contribution by an unemancipated minor child shall be treated as a contribution by the child's custodial parent or parents for determining compliance with subsection A, paragraphs 1 and 2, subsection B, paragraph 1 and subsection E of this section.

4.  A contribution by an individual or a single political committee to two or more candidates in connection with a joint fund‑raising effort shall be divided among the candidates in direct proportion to each candidate campaign committee's share of the expenses for the fund‑raising effort.

5.  A candidate shall sign and file with the candidate's nomination paper a statement that the candidate has read all applicable laws relating to campaign financing and reporting.

6.  After the general election, all contributions may be combined for use in a subsequent election cycle.

7.  An individual or political committee shall not use economic influence to induce members of an organization to make contributions to a candidate, collect contributions from members of an organization for transmittal to a candidate, make payments to candidates for public appearances or services that are ordinarily uncompensated or use any similar device to circumvent any of the limitations of this section.

J.  A person who knowingly violates this section is guilty of a class 1 misdemeanor.  A person who unknowingly violates this section is subject to a civil penalty imposed as prescribed in section 16‑924 of three times the amount of money that has been received, expended or promised in violation of this section or three times the value in money for an equivalent of money or other things of value that have been received, expended or promised in violation of this section.

K.  Any qualified elector may file a sworn complaint with the attorney general or the county attorney of the county in which a violation of this section is believed to have occurred, and the attorney general or the county attorney shall investigate the complaint for possible action.

L.  If the filing officer, attorney general or county attorney fails to institute an action within forty‑five working days after receiving a complaint under subsection K of this section, the individual filing the complaint may bring a civil action in the individual's own name and at the individual's own expense, with the same effect as if brought by the filing officer, attorney general or county attorney.  The individual shall execute a bond payable to the defendant if the individual fails to prosecute the action successfully.  The court shall award to the prevailing party costs and reasonable attorney fees.

M.  If a provision of this section or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the section that can be given effect without the invalid provision or application, and to this end the provisions of this section are severable.

N.  The use of a candidate's personal monies, or the use of personal monies by an individual who designates an exploratory committee, is not subject to the limitations of this section.

O.  For any statewide or legislative candidate who is not participating in the citizens clean elections act funding system established pursuant to article 2 of this chapter:

1.  Complaints and investigations relating to an alleged violation of this article are subject only to the jurisdiction, penalties and procedures established pursuant to this article and the enforcement and investigative authority of the secretary of state and attorney general.

2.  The citizens clean elections commission has no authority to accept, investigate or otherwise act on any complaint involving an alleged violation of this article. 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; violation; classification

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 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.

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.

L.  A person who knowingly or intentionally misstates or fails to fully disclose a contribution or expenditure or any other thing required to be reported by this article is guilty of a class 1 misdemeanor. END_STATUTE

Sec. 4.  Subject to the requirements of article IV, part 1, section 1, Constitution of Arizona, 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 the circulation of petitions for ballot measures, questions and propositions appearing on a state general election ballot or 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 and for a statewide initiative or referendum or any measure or proposition appearing on a state general election 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 and shall provide that for all filings and other matters relating to all candidates and committees for state offices and members of the legislature, the citizens clean elections commission shall have joint and simultaneous access to those filings and matters.

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 B 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 B.  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 and with the citizens clean elections committees pursuant to subsection A of this section in the manner that is prescribed by the secretary of state and that provides for joint and simultaneous filing with the citizens clean elections commission.  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 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. 5.  Section 16-924, Arizona Revised Statutes, is amended to read:

START_STATUTE16-924.  Civil penalties; attorney general; county, city or town attorney; violation; classification

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 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.  In making a reasonable cause determination, there is a rebuttable presumption that the person has knowingly committed a violation unless the person demonstrates that the violation was unintentional.  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 is deemed an intentional act.

E.  In addition to being subject to a civil penalty, a violation of this article is a class 2 misdemeanor unless another CLASSIFICATION IS specifically prescribed in this title. END_STATUTE

Sec. 6.  Subject to the requirements of article IV, part 1, section 1, Constitution of Arizona, section 16-942, Arizona Revised Statutes, is amended to read:

START_STATUTE16-942.  Civil penalties and forfeiture of office

A.  The civil penalty issued by the commission for a violation of any contribution or expenditure limit in section 16‑941 by or on behalf of a participating candidate shall be ten times the amount by which the expenditures or contributions exceed the applicable limit.  The civil penalty issued by the commission for a violation of any contribution or expenditure limit for any nonparticipating candidate shall be three times the amount by which the expenditures or contributions exceed the applicable limit.

B.  In addition to any other penalties imposed by law, the civil penalty issued by the commission for a violation by or on behalf of any participating or nonparticipating candidate of any reporting requirement imposed by this chapter shall be one hundred dollars per day for candidates for the legislature and three hundred dollars per day for candidates for statewide office.  The penalty imposed by this subsection for a participating candidate shall be doubled if the amount not reported for a particular election cycle exceeds ten percent of the adjusted primary or general election spending limit.  No penalty imposed pursuant to this subsection shall exceed twice the amount of expenditures or contributions not reported. The candidate and the candidate's campaign account shall be jointly and severally responsible for any penalty imposed pursuant to this subsection.

C.  Any campaign finance report filed indicating a violation of section 16‑941, subsections subsection A or B or section 16‑941, subsection C, paragraph 1 by a participating candidate and involving an amount in excess of ten percent of the sum of the adjusted primary election spending limit and the adjusted general election spending limit for a particular candidate shall result in disqualification of a candidate or forfeiture of office.

D.  Any participating candidate adjudged to have committed a knowing violation of section 16-941, subsection A or subsection C, paragraph 1 shall repay from the candidate's personal monies to the fund all monies expended from the candidate's campaign account and shall turn over the candidate's campaign account to the fund.  A participating candidate is presumed to have committed a knowing violation unless the candidate rebuts that presumption by demonstrating that the violation was unintentional.

E.  All civil penalties collected pursuant to this article shall be deposited into the fund. END_STATUTE

Sec. 7.  Subject to the requirements of article IV, part 1, section 1, Constitution of Arizona, section 16-956, Arizona Revised Statutes, is amended to read:

START_STATUTE16-956.  Voter education and enforcement duties

A.  The commission shall:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Sec. 8.  Requirements for enactment; three-fourths vote

Pursuant to article IV, part 1, section 1, Constitution of Arizona, sections 16‑916, 16‑942 and 16‑956, Arizona Revised Statutes, as amended by this act, are effective only on the affirmative vote of at least three‑fourths of the members of each house of the legislature.