ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff

House: FMAE DP 7-0-0-0

☐ Prop 105 (45 votes)	     ☐ Prop 108 (40 votes)      ☐ Emergency (40 votes)	☐ Fiscal Note


HB 2874: campaign committees; termination statements; contributions

Sponsor: Representative Weninger, LD 13

Caucus & COW

Overview

Amends the conditions required for a candidate committee, political action committee or political party to file a termination statement. Prohibits penalties and enforcement actions against a committee that received no contributions and files a termination statement if certain conditions are met.

History

Currently, a committee may terminate only when the committee treasurer files a termination statement with the filing officer with whom the committee's statement of interest was filed. In the termination statement, the committee treasurer must 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; or

b.   has outstanding debts or obligations that are all more than five years old, and that committee's creditors have agreed to discharge the debts and obligations and have agreed to the termination of the committee;

3)   any surplus monies are disposed of and the committee has no cash on hand; and

4)   all contributions and expenditures have been reported, including any disposal of surplus monies (A.R.S. § 16-934).

A committee means a candidate committee, a political action committee or a political party.

A candidate for election or retention must register as a candidate committee if the candidate receives contributions or makes expenditures of at least $1,000 in connection with that candidacy. An entity is required to 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; and

2)   the entity knowingly receives contributions or makes expenditures of at least $1,000 in connection with any election during a calendar year (A.R.S. §§ 16-901, 16-905).

Provisions

1.   Requires a committee treasurer, in a termination statement, to certify under penalty of perjury that either of the following applies:

a.   the committee received no contributions; or

b.   the committee received contributions and all of the following apply:

i. the committee will no longer receive any contributions or make any disbursements;

ii.   the committee either has no outstanding debts or has outstanding debts that are all more than five years old and its creditors have discharged the debts and obligations and agreed to the termination;

iii.  any surplus monies are disposed of and the committee has no cash on hand; and

iv. all contributions and expenditures have been reported, including any disposal of surplus monies. (Sec. 1)

2.   States that, for a committee that files a termination statement and received no contributions, all of the following apply:

a.   penalties may not be assessed or accrue against the committee;

b.   any penalties that are assessed or accrue against such a committee are deemed void retroactively; and

c. for any enforcement action initiated by an enforcement officer against such a committee, the enforcement officer is deemed without jurisdiction and, if the matter is before a court, the court must dismiss the matter promptly. (Sec. 2)

3.   Makes conforming changes. (Sec. 1)

4.   Makes technical changes. (Sec. 2)

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8.   Initials GG                       HB 2874

9.   2/19/2026  Page 0 Caucus & COW

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