Page 1,
between lines 1 and 2, insert:
"Section 1. Section
16-901, Arizona Revised Statutes, 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. "Affiliated entity":
(a) Means
an entity to which any one or more of the following apply:
(i) the
governing INSTRUMENT of the entity requires it to be bound by the decisions of
the other entity.
(ii) The
governing board of, the entity includes persons who are specifically designated
REPRESENTATIVES of the other entity or who are members of the GOVERNING board of,
or officers or paid executive staff members of, the other entity or whose
service on the governing board is contingent on the approval of the other
entity.
(iii) The
ENTITY is chartered by the other entity.
(b) Includes
entities that are an affiliate of the other entity or in which both of the
ENTITIES are an affiliate of the same entity.
3. 4. "Agent"
means any person who has actual authority, either express or implied, to
represent or make decisions on behalf of another person.
4. 5. "Ballot measure
expenditure" means an expenditure made by a person that expressly
advocates the support or opposition of a clearly identified ballot measure.
5. 6. "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. 7. "Calendar
quarter" means a period of three consecutive calendar months ending on
March 31, June 30, September 30 or December 31.
7. 8. "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. 9. "Candidate
committee" includes the candidate.
9. 10. "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. 11. "Committee"
means a candidate committee, a political action committee or a political party.
11. 12. "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. 13. "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. 14. "Coordinate",
"coordinated" or "coordination" means the coordination of
an expenditure as prescribed by section 16‑922.
14. 15. "Coordinated
party expenditures" means expenditures that are made by a political party
to directly pay for goods or services on behalf of its nominee.
16. "Covered transfer" means a
donation, transfer or payment of monies by a person to another person if the
person receiving the monies makes an independent expenditure or transfers
monies to another person who makes an independent expenditure. Covered
Transfer does not include any of the following:
(a) A
donation, transfer or payment made by a person in the ordinary course of a
trade or business.
(b) A
donation, transfer or payment of monies made by a person if the person making
the donation, transfer or payment prohibited the use of those monies for an
independent expenditure or a covered transfer and the recipient of the monies
agreed with the terms of the prohibition and DEPOSITED the monies in an account
that is segregated from any account used to make independent expenditures or
covered transfers.
(c) Dues,
fees or assessments that are transferred between affiliated entities and that
are paid by individuals on a regular periodic basis in accordance with a per
individual calculation that is made on a regular basis.
15. 17. "District
office" means an elected office established or organized pursuant to title
15 or 48.
16. 18. "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. 19. "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. 20. "Election cycle"
means the two‑year period beginning on January 1 in the year after a
statewide general election and ending on December 31 in the year of a statewide
general election or, for cities and towns, the two‑year period beginning
on the first day of the calendar quarter after the calendar quarter in which
the city's or town's second, runoff or general election is scheduled and ending
on the last day of the calendar quarter in which the city's or town's
immediately following second, runoff or general election is scheduled, however
that election is designated by the city or town. For the purposes of a:
(a) Recall
election, "election cycle" means the period between issuance of a
recall petition serial number and the latest of the following:
(i) The
date of the recall election that is called pursuant to section 19‑209.
(ii) The
date that a resignation is accepted pursuant to section 19‑208.
(iii) The
date that the receiving officer provides notice pursuant to section 19‑208.01
that the number of signatures is insufficient.
(b) Special
election, "election cycle" means the period between the date of
issuance of a proclamation or order calling the special election and the last
day of the calendar quarter in which the special election is held.
19. 21. "Employee"
means an individual who is entitled to compensation for labor or services
performed for the individual's employer.
20. 22. "Employer"
means any person that pays compensation to and directs the labor or services of
any individual in the course of employment.
21. 23. "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. 24. "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. 25. "Excess
contribution" means a contribution that exceeds the applicable
contribution limits for a particular election.
24. 26. "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 right of first refusal on all lines of insurance business written by the
insurer and solicited by the producer.
25. 27. "Expenditure"
means any purchase, payment or other thing of value that is made by a person
for the purpose of influencing an election.
26. 28. "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.
27. 29. "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.
28. 30. "Firewall"
means a written policy that precludes one person from sharing information with
another person.
29. 31. "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.
30. 32. "Incomplete
contribution" means any contribution that is received by a committee for
which the contributor's complete identification has not been obtained.
31. 33. "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.
32. 34. "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.
33. 35. "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.
34. 36. "Itemized"
means that each contribution received or expenditure made is set forth
separately.
35. 37. "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.
36. 38. "Legislative
office" means the office of representative in the state house of
representatives or senator in the state senate.
37. 39. "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.
38. 40. "Nominee"
means a candidate who prevails in a primary election for partisan office and
includes the nominee's candidate committee.
39. 41. "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.
40. 42. "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.
41. 43. "Political action
committee" means an entity that is required to register as a political
action committee pursuant to section 16-905.
42. 44. "Political
party" means a committee that meets the requirements for recognition as a
political party pursuant to chapter 5 of this title.
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.
44. 45. "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.
45. 46."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.
46. 47. "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.
47. 48. "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.
48. 49. "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.
49. 50. "Statewide
office" means the office of governor, secretary of state, state treasurer,
attorney general, superintendent of public instruction, corporation
commissioner or mine inspector.
50. 51. "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. 2. Section
16-905, Arizona Revised Statutes, is amended to read:
START_STATUTE16-905. Committee qualification; requirements; exemption;
adjustments
A. A
candidate for election or retention shall register as a candidate committee if
the candidate receives contributions or makes expenditures, in any combination,
of at least one thousand dollars in connection with that candidacy.
B. An
entity shall register as a political action committee if both of the following
apply:
1. The entity is organized for the primary purpose of
influencing the result of an election.
2. The entity knowingly receives contributions or makes
expenditures, in any combination, of at least one thousand dollars in
connection with any election during a calendar year
Before making a contribution or expenditure. The political action committee may only
receive monies from either the entity's treasury or voluntary contributions
made by its members, but not both, or may receive monies from another political
action committee. The political action committee is deemed to have been
established by an entity if the initial contribution to the political action
committee is made by the entity's treasury or an officer or director of the
entity. An entity may not form more than one political action committee.
C. A
filing officer or enforcement officer shall make a rebuttable presumption that
an entity is organized for the primary purpose of influencing the result of an
election if the entity meets any of the following:
1. Except
for a religious organization, assembly or institution, claims tax exempt status
but had not filed form 1023 or form 1024 with the internal revenue service, or
the equivalent successor form designated by the internal revenue service,
before making a contribution or expenditure.
2. Made
a contribution or expenditure and at that time had its tax exempt status
revoked by the internal revenue service.
3. Made
a contribution or expenditure and at that time failed to file form 990 with the
internal revenue service, or the equivalent successor form designated by the
internal revenue service, if required by law.
4. At
the time of making a contribution or expenditure was not registered with the
corporation commission if required by law.
5. At
the time of making a contribution or expenditure was registered with the
corporation commission but was not in good standing.
D. A
fund that is established by a corporation, limited liability company, labor
organization or partnership for the purpose of influencing the result of an
election shall register as a political action committee.
E. An
entity may register as a political party committee only as prescribed in
chapter 5 of this title.
F. A
committee is not subject to state income tax and is not required to file a
state income tax return.
G. The
dollar amounts
amount prescribed by
this section shall be increased every two years pursuant to section 16‑931.
H. a public service
corporation shall register as a political action committee before making a
contribution or expenditure for the purpose of influencing the result of an
election.END_STATUTE
Sec. 3. Section
16-906, Arizona Revised Statutes, is amended to read:
START_STATUTE16-906. Committee statement of organization; amendment; committee
limitation
A. A
committee shall file a statement of organization with the filing officer within
ten days after qualifying as a committee except that if the committee is formed
within ten days before the start of early voting, that committee shall file its
statement of organization within twenty-four hours after qualifying as a
committee.
B. A
statement of organization shall include the following committee information:
1. The
committee name, mailing address, e‑mail address, website, if any, and
telephone number, if any, and the type of committee. The committee
name shall include:
(a) For
a candidate committee, the candidate's first or last name and, if the candidate
has a candidate committee open for more than one office, the office sought.
(b) For
a political action committee that is sponsored, the sponsor's name or commonly
known nickname.
2. The
name, mailing address, e‑mail address, website, if any, and telephone
number of any sponsor.
3. The
name, physical location or street address, e‑mail address, telephone
number, occupation and employer of the committee's chairperson and
treasurer. For a candidate committee, the candidate may serve as
both chairperson and treasurer.
4. For
a candidate committee for a partisan office, the candidate's party affiliation.
5. A
listing of all banks or other financial institutions used by the committee.
6. A
statement that the committee chairperson and committee treasurer have read the
filing officer's campaign finance and reporting guide, agree to comply with
this article and articles 1, 1.2, 1.3, 1.4, 1.5, 1.6 and 1.7 of this chapter,
and agree to accept all notifications and service of process via the e-mail
address provided by the committee.
C. A
committee shall file an amended statement of organization within ten days after
any change in committee information.
D. On
filing a statement of organization, the filing officer shall issue an
identification number to the committee.
E. A
standing committee shall file a statement of organization with the secretary of
state and a copy of the statement in each jurisdiction in which the committee
is active. Only the secretary of state shall issue an identification number.
F. A
candidate may have only one committee in existence for the same office during
the same election cycle.
G. On
filing a statement of organization, a political action committee or political
party may perform any lawful activity, including making contributions, making
expenditures or conducting issue advocacy, without establishing a separate
committee for each activity or specifying each activity in its statement of
organization. END_STATUTE
Sec. 4. Section
16-922, Arizona Revised Statutes, is amended to read:
START_STATUTE16-922. Independent and coordinated expenditures
A. Any
person may make independent expenditures.
B. An
expenditure is not an independent expenditure if either of the following
applies:
1. There
is actual coordination with respect to an expenditure between a candidate or
candidate's agent and the person making the expenditure or that person's agent.
2. Both
of the following apply:
(a) The
expenditure is based on nonpublic information about a candidate's or candidate
committee's plans or needs that the candidate or candidate's agent provides to
the person making the expenditure or that person's agent.
(b) The
candidate or candidate's agent provides the nonpublic information with an
intent toward having the expenditure made.
C. In
evaluating whether an expenditure is an independent expenditure, a filing
officer or enforcement officer may consider the following to be rebuttable
evidence of coordination:
1. Any
agent of the person making the expenditure is also an agent of the candidate
whose election or whose opponent's defeat is being advocated by the
expenditure.
2. In
the same election cycle, the person making the expenditure or that person's
agent is or has been authorized to raise or spend monies on the candidate's
behalf.
3. In
the same election cycle, the candidate is or has been authorized to raise money
or solicit contributions on behalf of the person making the expenditure.
D. Notwithstanding
subsection C of this section, coordination does not exist under either of the
following:
1. If
the person making the expenditure maintains a firewall between the person and
that person's agent in compliance with all of the following:
(a) The
person's agent did not participate in deciding to make the expenditure or in
deciding the content, timing or targeting of the expenditure.
(b) The
person making the expenditure has a written policy establishing the firewall
and its requirements.
(c) The
person making the expenditure and the person's agent followed the written
policy regarding the firewall.
2. Solely
because an agent of a person making the expenditure serves or has served on a
candidate's host committee for a fund‑raising event.
E. An
expenditure that is coordinated with a candidate, other than a coordinated
party expenditure, is deemed an in-kind contribution to the candidate.
F. An
entity that makes an independent expenditure, other than an individual or a
committee, shall file independent expenditure reports pursuant to section
16-926, subsection G H.
END_STATUTE
Sec. 5. Section
16-926, Arizona Revised Statutes, is amended to read:
START_STATUTE16-926. Campaign finance reports; contents
A. A
committee shall file campaign finance reports with the filing officer. The
secretary of state's instructions and procedures manual adopted pursuant to
section 16‑452 shall prescribe the format for all reports and statements.
B. A
campaign finance report shall set forth:
1. The
amount of cash on hand at the beginning of the reporting period.
2. Total
receipts during the reporting period, including:
(a) An
itemized list of receipts in the following categories, including the source,
amount and date of receipt, together with the total of all receipts in each
category:
(i) Contributions
from individuals whose contributions exceed fifty dollars for that election
cycle, including identification of the contributor's occupation and employer.
(ii) Contributions
from candidate committees.
(iii) Contributions
from political action committees.
(iv) Contributions
from political parties.
(v) Contributions
from partnerships.
(vi) Covered
transfers.
(vi) (vii) For a political action committee
or political party, contributions from corporations and limited liability
companies, including identification of the corporation's or limited liability
company's file number issued by the corporation commission.
(vii) (viii) For a political action committee
or political party, contributions from labor organizations, including
identification of the labor organization's file number issued by the
corporation commission.
(viii) (ix) For a candidate committee, a
candidate's contribution of personal monies.
(ix) (x) All loans, including identification
of any endorser or guarantor other than a candidate's spouse, and the
contribution amount endorsed or guaranteed by each.
(x) (xi) Rebates and refunds.
(xi) (xii) Interest on committee monies.
(xii) (xiii) The fair market value of in-kind
contributions received.
(xiii) (xiv) Extensions of credit that remain
outstanding, including identification of the creditor and the purpose of the
extension.
(b) The
aggregate amount of contributions from all individuals whose contributions do
not exceed fifty dollars for the election cycle.
3. An
itemized list of all disbursements in excess of two hundred fifty dollars
during the reporting period in the following categories, including the
recipient, the recipient's address, a description of the disbursement and the
amount and date of the disbursement, together with the total of all
disbursements in each category:
(a) Disbursements
for operating expenses.
(b) Contributions
to candidate committees.
(c) Contributions
to political action committees.
(d) Contributions
to political parties.
(e) Contributions
to partnerships.
(f) Covered
transfers.
(f) (g) For a political action committee
or political party, contributions to corporations and limited liability
companies, including identification of the corporation's or limited liability
company's file number issued by the corporation commission.
(g) (h) For a political action committee
or political party, contributions to labor organizations, including
identification of the labor organization's file number issued by the
corporation commission.
(h) (i) Repayment of loans.
(i) (j) Refunds of contributions.
(j) (k) Loans made.
(k) (l) The value of in-kind contributions
provided.
(l) (m) Independent expenditures that are
made to advocate the election or defeat of a candidate, including
identification of the candidate, office sought by the candidate, election date,
mode of advertising and distribution or publication date.
(m) (n) Expenditures to advocate the
passage or defeat of a ballot measure, including identification of the ballot
measure, ballot measure serial number, election date, mode of advertising and
distribution or publication date.
(n) (o) Expenditures to advocate for or
against the issuance of a recall election order or for the election or defeat
of a candidate in a recall election, including identification of the officer to
be recalled or candidate supported or opposed, mode of advertising and
distribution or publication date.
(o) (p) Any other disbursements or
expenditures.
4. The
total sum of all receipts and disbursements for the reporting period.
5. A
certification by the committee treasurer, issued under penalty of perjury, that
the contents of the report are true and correct.
C. For
the purposes of reporting under subsection B of this section:
1. A
contribution is deemed to be received either on the date the committee
knowingly takes possession of the contribution or the date of the check or
credit card payment. For an in-kind contribution of services, the
contribution is deemed made either on the date the services are performed or
the date the committee receives the services.
2. An
expenditure or disbursement is deemed made either on the date the committee
authorizes the monies to be spent or the date the monies are withdrawn from the
committee's account. For a transaction by check, the expenditure or
disbursement is deemed made on the date the committee signs the
check. For a credit card transaction on paper, the expenditure or
disbursement is deemed made on the date the committee signs the authorization
to charge the credit card. For an electronic transaction, an expenditure or
disbursement is deemed made on the date the committee electronically authorizes
the charge. For an agreement to purchase goods or services, the expenditure or
disbursement is deemed made either on the date the parties enter into the
agreement or the date the purchase order is issued.
3. A
committee may record its transactions using any of the methods authorized by
this subsection but for each type of contribution, expenditure or disbursement
made or received, the committee shall use a consistent method of recording
transactions throughout the election cycle.
D. The
amount of an in-kind contribution of services shall be equal to the usual and
normal charges for the services on the date performed.
E. If
any receipt or disbursement is earmarked, the committee shall report the
identity of the person to whom the receipt or disbursement is earmarked.
F. Candidate
committee reports shall be cumulative for the election cycle to which they
relate. Political action committee and political party reports shall
be cumulative for a two-year election cycle ending in the year of a statewide
general election. If there has been no change during the reporting
period in an item listed in the immediately preceding report, only the amount
need be carried forward.
G. For
a political action committee that receives individual contributions through a
payroll deduction plan, that committee is not required to separately itemize
each contribution received from the contributor during the reporting
period. In lieu of itemization, the committee may report all of the
following:
1. The
aggregate amount of contributions received from the contributor through the
payroll deduction plan during the reporting period.
2. The
individual's identity.
3. The
amount deducted per pay period.
H. An
entity that makes or obligates itself to make independent expenditures or ballot
measure expenditures in excess of one thousand dollars in
any combination during
a reporting period shall file an expenditure report with the filing officer for
the applicable reporting period. Expenditure reports shall identify
all of the following:
1. The name of the person making or
obligating the entity to make the expenditure.
2. The tax exempt status of that person or
entity, if applicable.
3. The mailing address of the person or
entity.
4. The principal business address of the
person or entity, if different from the mailing address.
5. The address, telephone number and email
address of the person's or entity's agent for service of process in this state.
6. The
candidate or ballot measure supported or opposed. ,
7. The office sought by the candidate, if any.
,
8. The election date. ,
9. The mode of advertising and first date of publication,
display, delivery or broadcast of the advertisement.
10. The name, telephone number and e-mail
address of the individual filing the report.
I. an entity that makes or obligates
ITSELF to make independent expenditures or ballot measure expenditures in
excess of five thousand dollars in any combination during the thirty days
before the start of early voting shall file its expenditure report within
twenty‑four hours after making or obligating itself to make the
expenditure."
Renumber to
conform
Page 1, line
9, strike the first "or" insert comma; after "chapter"
insert "or
16-926"
Amend title to conform
Bill
Number: H.B. 2005