PREFILED    DEC 16 2025

REFERENCE TITLE: candidate committees; posthumous closure

 

 

 

 

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

 

 

 

SB 1029

 

Introduced by

Senator Kavanagh

 

 

 

 

 

 

 

 

AN ACT

 

amending sections 16-933, 16-934 and 16-937, 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 16-933, Arizona Revised Statutes, is amended to read:

START_STATUTE16-933. Transfer and disposal of committee monies; limitations

A. A committee that intends to terminate shall dispose of surplus monies as follows:

1. Return surplus monies to the contributor.

2. Contribute surplus monies pursuant to and within the limits prescribed in article 1.2 of this chapter.

3. In the case of a candidate committee, contribute surplus monies to a candidate committee for another candidate under the following conditions:

(a) The candidate committee makes the contribution after the time period for filing a nomination paper pursuant to section 16-311, subsection A.

(b) The candidate associated with the candidate committee that makes the contribution did not file a nomination paper to run for election in the current election cycle.

(c) In the case of a candidate committee for legislative office, the candidate committee makes the contribution when the legislature is not in regular legislative session.

(d) The candidate committee makes the contribution within the limits prescribed for individuals in section 16-912.

4. Donate surplus monies to a nonprofit organization that has tax exempt status under section 501(c)(3) of the internal revenue code.

5. In the case of a statewide or legislative candidate committee and subject to section 41-133, transfer surplus monies to the candidate's officeholder expense account.

B. Surplus monies shall not be used for or converted to personal use.

C. This section does not preclude the repayment of a loan to a committee.

D. For the purposes of this section, on the death of a candidate, that candidate's candidate committee is deemed to have the intention to terminate the committee. 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 of the following apply:

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

2. The committee either:

(a) Has no outstanding debts or obligations.

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

4. 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.

F. Notwithstanding any other law, if a deceased candidate was serving as the treasurer for that candidate's own candidate committee, the following individuals in the following order of priority are authorized to act as the treasurer for that committee for the purposes of this section and section 16-933 after the candidate's death unless an alternate treasurer was previously designated by the deceased candidate:

1. If the candidate provided for allocation of an unexpended balance through a will or trust, the personal representative of the will or the trustee of the trust.

2. The surviving spouse of the deceased candidate.

3. The next of kin of the deceased candidate.

4. An individual who is appointed by the court.

G. An individual who serves as the treasurer pursuant to subsection F of this section shall note on the termination statement that the candidate is deceased and shall provide the filing officer with documentation that verifies the candidate's death. END_STATUTE

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

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

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.

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. On compliance with section 16-934, a filing officer may waive any penalties accrued under this section from a candidate committee's failure to file a report if the report was due after that candidate's death. END_STATUTE