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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
House: FMAE DP 7-0-0-0 | Third Read 54-0-0-0Senate: JUDE DPA 5-0-2-0 | Third Read 16-12-2-0 |
HB 2874: campaign committees; termination statements; contributions
Sponsor: Representative Weninger, LD 13
Conference Committee
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)
Senate Amendments
1. Specifies that penalties for failure to file a campaign finance report cannot be assessed and any accrued penalties are void if the committee certifies that it received no contributions and made no expenditures during the filing period to which the untimely report corresponds.
a. penalties may not be assessed against and may not accrue against the committee in connection with those reports;
b. any penalties that are assessed or that accrue against the committee in connection with those reports are deemed void retroactively; and
c. for any enforcement action against the committee in connection with those reports, the enforcement officer is deemed without jurisdiction.
3. Makes the legislation retroactive to from and after December 31st, 2021.
Conference Committee Amendments
1. Requires a filing officer, within five days after the closing date for filing a report, to publish a listing of all active committees that owe penalties for late filing of reports.
2. Amends the termination requirements for a committee that received contributions.
3. Limits the maximum amount of penalties that a committee may accrue for each late report to $5,000 beginning July 1, 2026.
4. States that, for a committee that has accrued penalties for untimely reports corresponding to reporting periods during which the committee received no contributions and made no expenditures and files a termination statement as outlined, the following apply:
a. penalties are prohibited from being assessed against and may not accrue against the committee in connection with those reports;
b. any penalties that are assessed or that accrue against the committee in connection with those reports are deemed void retroactively; and
c. for any enforcement action against the committee in connection with those reports, the enforcement officer is deemed without jurisdiction.
5. States, as session law, that for a committee that accrues penalties for filing untimely reports, the penalties are prohibited from being 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:
a. 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; and
b. the committee files a termination statement on or before December 31, 2026.
6. Makes the legislation retroactive to from and after July 5, 2016.
7. Adds an emergency clause.
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11. Initials GG HB 2874
12. 4/16/2026 Page 0 Conference Committee
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