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REFERENCE TITLE: campaign finance; corporate recipients; registration |
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State of Arizona House of Representatives Fifty-fourth Legislature First Regular Session 2019
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HB 2333 |
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Introduced by Representatives Salman: Andrade, Bolding, Cano, Chávez, DeGrazia, Engel, Fernandez, Friese, Gabaldón, Hernandez A, Jermaine, Lieberman, Longdon, Peten, Powers Hannley, Rodriguez, Sierra, Teller, Terán, Tsosie, Senator Mendez
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AN ACT
amending section 16-916, Arizona Revised Statutes; amending title 16, chapter 6, article 1.4, Arizona Revised Statutes, by adding section 16‑926.01; relating to campaign contributions.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 16-916, Arizona Revised Statutes, is amended to read:
16-916. Corporation, limited liability company and labor organization contributions; separate segregated fund; limits; requirements
A. Except as prescribed in section 16-926.01, a corporation, limited liability company or labor organization shall not make contributions to a candidate committee.
B. A corporation, limited liability company or labor organization may make unlimited contributions to persons other than candidate committees.
C. A corporation, limited liability company or labor organization may sponsor a separate segregated fund. Employees, members, executives, stockholders and retirees and their families of a corporation, limited liability company or labor organization and any subsidiary or affiliate of a corporation, limited liability company or labor organization may make contributions to the separate segregated fund, subject to the following:
1. The separate segregated fund must register as a political action committee.
2. The sponsor or its affiliate may pay the administrative, personnel and fund‑raising expenses of its separate segregated fund, which shall not be deemed contributions to the fund.
3. The sponsor or its separate segregated fund may solicit contributions from the sponsor's, sponsor's affiliates' or sponsor's subsidiaries' employees, members, executives, stockholders and retirees and their families. The following additional restrictions apply:
(a) With respect to an insurer, an insurer or its separate segregated fund may also solicit contributions from an insurance producer's employees, members, executives, stockholders and retirees and their families.
(b) With respect to a trade association or membership organization, the association or organization may solicit contributions from its members' employees, executives, stockholders, subsidiaries and retirees and their families.
4. A sponsor or its affiliate or a trade association or membership organization may facilitate the making of contributions to its separate segregated fund by establishing a payroll deduction system or other similar payment transfer method.
5. A sponsor, trade association, membership organization or separate segregated fund may rely on the federal election commission's written guidance interpreting 52 United States Code section 30118(b) and rules adopted under that section when interpreting this subsection, if otherwise consistent with this article and articles 1, 1.1, 1.3, 1.4, 1.5, 1.6 and 1.7 of this chapter.
Sec. 2. Title 16, chapter 6, article 1.4, Arizona Revised Statutes, is amended by adding section 16-926.01, to read:
16-926.01. Reporting contributions made by a corporation, limited liability company or labor organization; statement; civil penalty; violation; classification; definition
A. Notwithstanding sections 16‑905, 16‑916 and 16‑938 and any other statute:
1. A corporation, limited liability company or labor organization that makes a contribution in at least the following amounts to a political action committee or to another corporation, limited liability company or labor organization in an attempt to influence the outcome of a candidate election shall register and notify the appropriate filing officer not later than one day after making that contribution, excluding Saturdays, Sundays and other legal holidays:
(a) An aggregate of $5,000 or more in one or more statewide races.
(b) An aggregate of $2,500 or more in one or more legislative races.
(c) $1,000 or more in one or more county, city, town or other local races if the $1,000 is aggregated in races in a single county, city, town or other local jurisdiction.
2. The secretary of state is the filing officer for registrations and notifications for contributions in statewide and legislative elections. City, town or county filing officers are the filing officers for notifications in a city, town, county or other local election, respectively. The corporation, limited liability company or labor organization also shall notify the filing officer within the same time limit prescribed in paragraph 1 of this subsection of each additional accumulation of contributions that exceeds the threshold amount prescribed in paragraph 1 of this subsection but is not required to register again during that election cycle after the initial registration. The secretary of state shall provide for electronic filing for registrations and notifications and shall provide for website access to the information for the public. Filings at the secretary of state's office shall be in the form prescribed by the secretary of state. Other filing officers shall prescribe the format for filing registrations and notifications and shall provide for public access to that information.
3. The registration shall include all of the following:
(a) The name and address of the corporation, limited liability company or labor organization.
(b) The name, title, e-mail address and telephone number of the person authorizing the contribution.
4. Each notification shall include all of the following:
(a) The name and address of the corporation, limited liability company or labor organization making the contribution.
(b) The amount of the contribution and the name of the political action committee or other corporation, limited liability company or labor organization receiving the contribution.
(c) The name of the candidate and race for which the contribution was made and whether the contribution was in support of or opposition to the candidate.
(d) The date of the contribution.
5. The corporation, limited liability company or labor organization shall file with the secretary of state or other appropriate filing officer within five days after an initial threshold contribution as prescribed in paragraph 1 of this subsection a notarized sworn statement that the person, agent or officer filing the registration and notice had authority to make that contribution on behalf of the corporation, limited liability company or labor organization. Until the secretary of state or other filing officer receives the notarized sworn statement, the filing officer shall categorize the notification as unverified. If the secretary of state or other filing officer does not receive the notarized sworn statement within the required five-day time frame, the notification shall be categorized as both unverified and delinquent. The filing officer shall make reasonable efforts to contact the entity that made the contribution and remove the notification from public view within a reasonable time if unable to verify that the entity made the contribution and all penalties prescribed in this section apply.
6. A corporation, limited liability company or labor organization that fails to register, notify or disclose as required by this section is liable in a civil action brought by the attorney general, county attorney or city or town attorney, as appropriate, for a civil penalty of up to three times the total amount of the contributions.
7. A person who makes a knowingly false filing relating to a contribution pursuant to this section is guilty of a class 1 misdemeanor. A civil or criminal enforcement action may not be filed until after the filing officer issues a reasonable cause determination.
B. For the purposes of this section, "local election" means an election on behalf of a county, city, town, school district or special district.