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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
membership associations; fees; disclosures
Purpose
Requires a membership association in Arizona that receives over 50 percent of its annual revenue from dues that are paid by an elected or appointed official using public monies to publicly disclose all fees and annual membership costs on its website.
Background
Statute authorizes various public entities to annually appropriate and expend public monies in amounts necessary for the purpose of the entity belonging to and paying dues in membership associations or other similar organizations (A.R.S. §§ 11-252; 41-125; and 41-738).
Public monies are all monies coming into the lawful possession, custody or control of budget units, state agencies, boards, commissions or departments or a state officer, employee or agent in an official capacity, and all monies coming into the lawful possession, custody or control of a tax-supported political subdivision or an officer, employee or agent of a tax-supported political subdivision in an official capacity irrespective of the source from which, or the manner in which, the monies are received. The Gift Clause of the Arizona Constitution requires all expenditures and obligations of public monies to be for a valid public purpose consistent with a public entity's spending authority (AG: Agency Handbook; Ariz. Const. art. 9 § 7; and A.R.S. § 35-212).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Requires a membership association in Arizona that receives over 50 percent of its annual revenue from dues that are paid by an elected or appointed official using public monies to publicly disclose all fees and annual membership costs on its website to ensure transparency regarding services and fees.
2. Stipulates that, if a public body votes to join a membership association in Arizona and an official on the public body elects not to join the membership association, then the dues assessed to that official may not be paid to the membership association by the public body.
3. Defines membership association as a nonprofit organization, the majority of whose board members are officers who operate, control and supervise public entities in Arizona that receive annual legislative appropriations.
4. Specifies that a membership association does not include labor unions.
5. Becomes effective on the general effective date.
Prepared by Senate Research
February 16, 2026
AN/TR/ci