Assigned to JUDE                                                                                                                   FOR COMMITTEE

 


 

 

 


ARIZONA STATE SENATE

Fifty-Seventh Legislature, Second Regular Session

 

FACT SHEET FOR H.B. 2874

 

campaign committees; termination statements; contributions

Purpose

Modifies the required conditions that a committee treasurer for a candidate committee, political action committee or political party (committee) must certify when filing a committee termination statement. Outlines conditions that apply if the committee termination statement states that the committee received no contributions.

Background

A committee may only terminate when a committee treasurer files a termination statement with the filing officer with whom the committee's statement of organization was filed. The committee treasurer must certify in the termination statement, under penalty of perjury, that: 1) the committee will no longer receive any contributions or make any disbursements; 2) the committee has no outstanding debts or obligations, or the committee does have outstanding debts or obligations, or both, that are over five years old and the committee's creditors have agreed to discharge the debts and obligations and agreed to the termination of the committee; 3) any surplus monies have been 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).

If a committee fails to file a termination statement and to timely file a complete campaign finance report, the filing officer must send a written notice by 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. A committee that fails to file a timely report must pay the filing officer a penalty of $10 for each day that the filing is late, for the first 15 days, and $25 for each subsequent day that the filing is late. If the committee fails to file a complete report after the filing officer provides notice and within 30 days after the filing deadline, the filing officer may notify the appropriate enforcement officer (A.R.S. § 16-937).

There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

1.   Modifies the required conditions that a committee treasurer must certify in a committee termination statement by allowing the committee treasurer to specify that the committee either:

a)   did not receive contributions; or

b)   received contributions and all currently prescribed conditions apply.

2.   Outlines conditions that apply if a committee termination statement states that the committee received no contributions, including that:

a)   penalties may not be assessed and accrue against the committee;

b)   any penalties assessed or that accrue against a committee that subsequently files a termination statement stating that the committee received no contributions are deemed void retroactively; and

c)   for any enforcement action against a committee that subsequently files a termination statement stating that the committee received no contributions, the enforcement officer is deemed without jurisdiction and, if the matter is before a court, the court must dismiss the matter promptly.

3.   Makes technical and conforming changes.

4.   Becomes effective on the general effective date.

House Action

FMAE             2/18/26      DP       7-0-0-0

3rd Read          2/26/26                  54-0-6

Prepared by Senate Research

March 16, 2026

ZD/KS/ci