HB2874 - 572R

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

Section 1. Section 16-928, Arizona Revised Statutes, is amended to read:

START_STATUTE16-928. Filing officer; statements and reports

A. A person that is required to file any statements and reports required by this article and articles 1, 1.1, 1.2, 1.3, 1.5, 1.6 and 1.7 of this chapter shall file with the filing officer in charge of that election, as follows:

1. The secretary of state is the filing officer for statewide and legislative elections, including retention elections for supreme court justices and court of appeals judges. The secretary of state is also the filing officer for committees that support or oppose a recall election or the circulation of a petition for a recall election for a statewide or legislative officeholder, for committees that support or oppose a statewide initiative or referendum or other statewide ballot measure, question or proposition or the circulation of a petition for a statewide initiative or referendum or other statewide ballot measure, question or proposition.

2. The county officer in charge of elections is the filing officer for county, school district, community college district and special taxing district elections, including retention elections for superior court judges. The county officer in charge of elections is also the filing officer for committees that support or oppose a recall election or the circulation of a petition for a recall election for an officeholder of a county office, a school district governing board office, a community college district governing board office or a special taxing district governing board office, for committees that support or oppose a county, school district, community college district or special taxing district initiative or referendum or other ballot measure, question or proposition, including bond, tax, budget and budget override measures or that oppose or support the circulation of a petition for a county, school district, community college district or special taxing district initiative or referendum or other county, school district, community college district or special taxing district ballot measure, question or proposition.

3. The city or town clerk is the filing officer for city and town elections. The city or town clerk is also the filing officer for committees that support or oppose a recall election or the circulation of a petition for a recall election for a city or town officeholder, for committees that support or oppose a city or town initiative or referendum or other city or town ballot measure, question or proposition or the circulation of a petition for a city or town initiative or referendum or other city ballot measure, question or proposition.

B. Notwithstanding subsection A of this section, a standing committee shall file reports only with the secretary of state.

C. A filing officer shall provide the option for electronic filing, and shall make all statements and reports publicly available on the internet and within five days after the closing date for filing a report shall publish a listing of all active committees that owe penalties for late filing of reports. A filing officer may comply with this section by opting into the secretary of state's electronic filing system. END_STATUTE

Sec. 2. Section 16-934, Arizona Revised Statutes, is amended to read:

START_STATUTE16-934. Termination statement; filing; contents

A. A committee may terminate only when the committee treasurer files a termination statement with the filing officer with whom the committee's statement of organization was filed.

B. In the termination statement, the committee treasurer shall certify under penalty of perjury that all either of the following apply applies:

1. The committee received no CONTRIBUTIONS.

2. The committee received contributions and all of the following apply:

1. (a) The committee will no longer receive any contributions or make any disbursements.

2. (b) The committee either:

(a) (i) Has no outstanding debts, or obligations or void penalties pursuant to section 16-937, subsection B, paragraph 1.

(b) (ii) Has outstanding debts or obligations, or both, that are all more than five years old, and that the committee's creditors have agreed to discharge the debts and obligations and have agreed to the termination of the committee.

3. (c) Any surplus monies have been disposed of and that the committee has no cash on hand.

4. (d) All contributions and expenditures have been reported, including any disposal of surplus monies.

C. A filing officer may reject the termination statement if it appears to the filing officer that the requirements in subsection B of this section have not been satisfied.

D. After a termination statement is filed, a committee:

1. Is not required to file any subsequent campaign finance reports.

2. Shall have no further receipts or disbursements without filing a new statement of organization.

E. A standing committee may terminate its activities in a particular reporting jurisdiction, and remain active in other reporting jurisdictions, by filing a statement of that intent with the filing officer in each reporting jurisdiction. END_STATUTE

Sec. 3. Section 16-937, Arizona Revised Statutes, is amended to read:

START_STATUTE16-937. Failure to file; penalties; notice; suspension

A. If a committee fails to timely file a complete report as prescribed by articles 1, 1.1, 1.2, 1.3, 1.4, 1.5 and 1.6 of this chapter, the filing officer shall send a written notice by e-mail email to the committee within five days after the filing deadline that identifies the late report, describes how fines accrue and identifies methods of payment.

B. A committee that fails to timely file a report shall pay the filing officer a penalty of ten dollars $10 for each day that the filing is late during the first fifteen days after the filing deadline and twenty-five dollars $25 for each subsequent day that the filing is late. Penalties accrue until the late report is filed, except that:

1. penalties shall not be assessed and any accrued penalties are void if the committee certifies that it received no CONTRIBUTIONS and made no expenditures during the reporting period to which the untimely report corresponds and files a termination statement pursuant to section 16-934, subsection B.

2. Beginning July 1, 2026, tHE MAXIMUM AMOUNT of penalties THAT A COMMITTEE MAY ACCRUE FOR EACH LATE REPORT IS $5,000.

C. If a committee fails to file a complete report within thirty days after the filing deadline and after providing notice pursuant to subsection A of this section, the filing officer may notify the appropriate enforcement officer prescribed in this article.

D. For any political action committee or political party that fails to file three consecutive complete reports, the filing officer shall send by e-mail email to the committee a notice of temporary suspension and the following apply:

1. On receipt, the committee's authority to operate in the jurisdiction is temporarily suspended.

2. The notice shall state that failure to comply with all filing and payment requirements within thirty days after the date of the notice shall result in permanent suspension of the committee's authority to operate in that jurisdiction.

E. After compliance with subsection D of this section, the filing officer may permanently suspend the committee and shall notify the committee by e-mail email and is not required to provide any further notice. Permanent or temporary suspension does not eliminate a committee's continuing obligation to file reports and pay any outstanding and accruing penalties provided by law.

F. For a committee that files a termination statement as prescribed by section 16-934, subsection B, paragraph 1 that states that the committee received no CONTRIBUTIONS, the following apply:

1. Penalties may not be assessed against and may not accrue against the committee.

2. Any penalties that are assessed or that accrue against a committee that subsequently files a termination statement pursuant to section 16-934, subsection B, paragraph 1 are deemed void retroactively.

3. For any ENFORCEMENT action initiated by the ENFORCEMENT officer against a committee that subsequently files a termination statement pursuant to section 16-934, subsection B, paragraph 1, the enforcement officer is deemed without JURISDICTION and if the matter is before a court, the court shall dismiss the matter promptly.

G. FOR A COMMITTEE THAT files a termination statement pursuant to section 16-934, subsection B, paragraph 2 and that HAS ACCRUED PENALTIES FOR UNTIMELY REPORTS CORRESPONDING TO REPORTING PERIODS DURING WHICH THE COMMITTEE RECEIVED NO CONTRIBUTIONS AND MADE NO EXPENDITURES, THE FOLLOWING APPLY:

1. PENALTIES MAY NOT BE ASSESSED AGAINST AND MAY NOT ACCRUE AGAINST THE COMMITTEE IN CONNECTION WITH those REPORTS.

2. ANY PENALTIES THAT ARE ASSESSED OR THAT ACCRUE AGAINST THE COMMITTEE IN CONNECTION WITH those REPORTS ARE DEEMED VOID RETROACTIVELY.

3. FOR ANY ENFORCEMENT ACTION INITIATED BY THE ENFORCEMENT OFFICER AGAINST THE COMMITTEE IN CONNECTION WITH those REPORTS, THE ENFORCEMENT OFFICER IS DEEMED WITHOUT JURISDICTION AND IF THE MATTER IS BEFORE A COURT, THE COURT SHALL DISMISS THE MATTER PROMPTLY.END_STATUTE

Sec. 4. Committees; untimely reports; termination statement

Notwithstanding section 16-937, Arizona Revised Statutes, as amended by this act, and notwithstanding any other law, for a committee that accrues penalties for filing untimely reports required by title 16, chapter 6, articles 1, 1.1, 1.2, 1.3, 1.4, 1.5, 1.6 and 1.7, Arizona Revised Statutes, the penalties may not be assessed against that committee for the untimely reports and any penalties that do accrue against that committee are void if both of the following apply:

1. The penalties were accrued during a reporting period for which the committee certifies and files complete reports that the committee received no contributions and made no expenditures during the reporting period and if the committee subsequently receives contributions and makes expenditures, the committee files complete reports for the reporting periods.

2. The committee files a termination statement on or before December 31, 2026.

Sec. 5. Retroactivity

This act applies retroactively to from and after July 5, 2016.

Sec. 6. Emergency

This act is an emergency measure that is necessary to preserve the public peace, health or safety and is operative immediately as provided by law.