Running for President in Arizona – A Candidate Guide Candidate Committees Arizona Campaign Finance Arizona Secretary of State’s Office Election Services Division 1700 W. Washington St., 7th Floor Phoenix, Arizona 85007 1 June 22, 2017 Arizona Campaign Finance: Candidate Committees About this publication “Arizona Campaign Finance” is a publication of the Department of State, Office of the Secretary of State, Election Services Division. © 2017 by the Election Services Division. All rights reserved. No part of this book may be reproduced or transmitted in any form or by any means for a commercial purpose. The Office strives for accuracy in our publications. If you find an error, please contact us at (602) 542-8683. Disclaimer The Office cannot offer legal advice or otherwise offer recommendations on document preparation. The Office advises consultation with an attorney in such cases. Contact us Mailing address for all correspondence or filings: Arizona Secretary of State Election Services Division 1700 W. Washington St. 7th Fl. Phoenix, AZ 85007-2808 Telephone: (602) 542-8683 An Introduction from Secretary of State Michele Reagan In 2016, the Arizona Legislature passed the most sweeping campaign finance reforms in a generation. The entire campaign finance law governing privately funded candidates was replaced with a more modern and simplified law. Especially because a new law took effect, the Secretary of State’s Office believes that voters, candidates, and the entire regulated community deserve clear rules of the road. And, a uniform interpretation of campaign finance law promotes stability and predictability. This Guide is intended to help achieve those goals. If you have any questions after reading this Guide, please contact the Secretary of State’s Office. Sincerely, Toll Free: (in Arizona) 1 (877) 843-8683 Fax: (602) 542-6172 TDD: (602) 255-8683 Website: www.azsos.gov MICHELE REAGAN Arizona Secretary of State Email: elections@azsos.gov The Office of the Secretary of State is an equal opportunity employer. Requests for reasonable alternate formats and/or accommodations can be made five days in advance by contacting the Secretary of State coordinator at (602) 542-8683. Department of State, Office of the Secretary of State Election Services Division 2 Arizona Campaign Finance: Candidate Committees Table of Contents A. Establishing a Candidate Committee ....................................................................................................... 7 1. When to form a campaign committee ..........................................................................................................7 2. Where to register a candidate committee ...................................................................................................8 B. Filing a Statement of Organization ............................................................................................................ 8 1. Getting started ............................................................................................................................................................8 2. Components of a statement of organization ........................................................................................... 10 Committee Information ............................................................................................................................................................................................. 10 Chairperson Information ........................................................................................................................................................................................... 11 Treasurer Information ................................................................................................................................................................................................. 12 3. Qualification for clean elections funding ................................................................................................. 14 4. Changes in committee information ............................................................................................................. 14 5. Forming multiple committees ......................................................................................................................... 14 C. Recordkeeping and Financial Management ...................................................................................... 15 1. Gathering contributor information .............................................................................................................. 15 Individual contributions over $50 ......................................................................................................................................................................... 15 Individual contributions under $50. ..................................................................................................................................................................... 16 Political action committee (PAC) and political party contributions. ................................................................................................... 17 Partnership contributions.......................................................................................................................................................................................... 17 Using standard disclaimers. ...................................................................................................................................................................................... 17 Using “best efforts” to seek missing information. ........................................................................................................................................... 18 Reporting and amending reports. ......................................................................................................................................................................... 18 2. Managing financial activity and records ................................................................................................... 18 Activities requiring treasurer approval............................................................................................................................................................... 18 Methods of accepting contributions .................................................................................................................................................................... 19 Method of recording contributions and expenditures................................................................................................................................ 19 Maintaining separate bank accounts ................................................................................................................................................................... 20 Maintaining financial records ................................................................................................................................................................................. 21 Preserving records prior to committee formation. ....................................................................................................................................... 22 Tax liability. ..................................................................................................................................................................................................................... 22 D. Receiving Contributions .............................................................................................................................. 22 1. What is a “contribution”? ................................................................................................................................... 22 Monetary contributions. ............................................................................................................................................................................................ 23 Loans. ................................................................................................................................................................................................................................... 23 In-kind contributions. ................................................................................................................................................................................................. 24 2. Who may contribute to a candidate committee? ................................................................................. 24 Individuals ........................................................................................................................................................................................................................ 24 PACs. ................................................................................................................................................................................................................................... 25 Political parties ............................................................................................................................................................................................................... 26 Partnerships...................................................................................................................................................................................................................... 26 3. Candidate committees are not required to file notifications upon receiving contributions. .................................................................................................................................................................... 28 4. Contribution limits ............................................................................................................................................... 29 Contribution limits for the 2017-2018 election cycle are as follows: ............................................... 29 Department of State, Office of the Secretary of State Election Services Division 3 Arizona Campaign Finance: Candidate Committees 5. How is an “election cycle” defined for contribution purposes? .................................................... 30 6. Remedying excessive and unlawful contributions .............................................................................. 31 E. Special Funding Mechanisms for Candidates .................................................................................... 32 1. Transfers from prior campaigns .................................................................................................................... 32 Running for the same office. ................................................................................................................................................................................... 32 Running for a different office. ................................................................................................................................................................................ 32 Aggregating contributions from different sources. ....................................................................................................................................... 33 2. Use of personal monies....................................................................................................................................... 34 Assets. .................................................................................................................................................................................................................................. 34 Salary. .................................................................................................................................................................................................................................. 34 Investments. ...................................................................................................................................................................................................................... 34 Bequests. ............................................................................................................................................................................................................................. 34 Trust income. .................................................................................................................................................................................................................. 34 Personal gifts.................................................................................................................................................................................................................... 34 Loans. ................................................................................................................................................................................................................................... 35 Family contributions. ................................................................................................................................................................................................... 35 3. Joint fundraising events ...................................................................................................................................... 35 F. Reducing Campaign Expenses .................................................................................................................... 36 1. Volunteer activity .................................................................................................................................................. 36 Travel expenses. ............................................................................................................................................................................................................. 36 Real or personal property. ....................................................................................................................................................................................... 36 Event expenses. ............................................................................................................................................................................................................... 36 Internet activity. ............................................................................................................................................................................................................. 36 2. 3. 4. 5. 6. Political party support ......................................................................................................................................... 37 Legal and accounting expenses ....................................................................................................................... 37 Candidate appearances at business and labor facilities .................................................................... 38 Elected official tours and conferences ........................................................................................................ 38 Officeholder expense accounts ....................................................................................................................... 38 Use of officeholder monies. ...................................................................................................................................................................................... 39 Source restrictions ........................................................................................................................................................................................................ 39 Contribution limits ...................................................................................................................................................................................................... 39 Spending limits ............................................................................................................................................................................................................... 41 Reporting responsibilities. ........................................................................................................................................................................................ 41 Enforcement penalties. ................................................................................................................................................................................................ 42 G. Making Contributions ................................................................................................................................... 42 H. Campaign Advertising ................................................................................................................................... 43 1. Form of disclaimer ................................................................................................................................................ 43 2. When a disclaimer is not required .............................................................................................................. 44 I. Filing Campaign Finance Reports ............................................................................................................. 45 1. Campaign finance reporting periods........................................................................................................... 45 2. Filing officer for campaign finance reports ............................................................................................. 46 3. Content of campaign finance reports ......................................................................................................... 46 Cash on hand. ................................................................................................................................................................................................................. 46 Total receipts. .................................................................................................................................................................................................................. 46 Total disbursements. .................................................................................................................................................................................................... 47 Cumulative totals. ......................................................................................................................................................................................................... 48 Certification. .................................................................................................................................................................................................................... 49 Completing campaign finance reports. ............................................................................................................................................................... 49 Department of State, Office of the Secretary of State Election Services Division 4 Arizona Campaign Finance: Candidate Committees J. Winding Down and Terminating a Committee ................................................................................ 49 1. Repayment of debts .............................................................................................................................................. 49 Fundraising to retire debt. ........................................................................................................................................................................................ 49 Debt forgiveness............................................................................................................................................................................................................. 49 2. Disposal of surplus funds .................................................................................................................................. 50 3. Terminating a committee .................................................................................................................................. 51 K. Grounds for Campaign Finance Enforcement .................................................................................. 51 1. Prohibited contributions .................................................................................................................................... 51 2. Coordinated expenditures ................................................................................................................................. 52 Independent expenditures......................................................................................................................................................................................... 52 Maintaining a firewall................................................................................................................................................................................................. 53 Host committees. ........................................................................................................................................................................................................... 54 3. Missing or late campaign finance reports ................................................................................................ 54 Appendix A .................................................................................................................................................................. 56 County Filing Officers .................................................................................................................................................. 56 Appendix B ................................................................................................................................................................... 57 Guidance on Operating or Fundraising with 2016 ...................................................................................... 57 or Earlier-Formed Committees ................................................................................................................................ 57 Appendix C .................................................................................................................................................................. 59 Sample Statement of Organization ........................................................................................................................ 59 Appendix D .................................................................................................................................................................. 62 2017-2018 Campaign Finance Report ................................................................................................................. 62 Appendix E .................................................................................................................................................................128 Termination Statement ............................................................................................................................................. 128 Appendix F .................................................................................................................................................................130 Title 16, Chapter 6 Campaign Contributions and Expenses .........................................................130 Article 1 General Provisions .................................................................................................................................. 130 § 16-901. Definitions ................................................................................................................................................................................................ 130 Article 1.1 Establishment of Committee ......................................................................................................... 133 § § § § 16-905. 16-906. 16-907. 16-908. Committee qualification; requirements; exemption; adjustments .................................................................................. 133 Committee statement of organization; amendment; committee limitation .............................................................. 134 Committee recordkeeping; treasurer; accounts ....................................................................................................................... 135 Mega PAC status qualification ........................................................................................................................................................ 136 Article 1.2 Contributions......................................................................................................................................... 136 § 16-911. Exemption from definition of contribution .............................................................................................................................. 136 § 16-912. Individual contribution limits; requirements ........................................................................................................................... 137 § 16-913. Candidate committee contribution limits; requirements ................................................................................................... 138 § 16-914. Political action committee contribution limits; requirements ......................................................................................... 138 § 16-915. Political party contribution limits; requirements................................................................................................................... 139 § 16-916. Corporation, limited liability company and labor organization contributions; separate segregated fund; limits; requirements .................................................................................................................................................................................................. 139 § 16-917. Partnership contribution limits; requirements ........................................................................................................................ 140 § 16-918. Earmarking prohibited ........................................................................................................................................................................ 140 Article 1.3 Expenditures ........................................................................................................................................... 140 § 16-921. Exemptions from definition of expenditure ............................................................................................................................. 140 § 16-922. Independent and coordinated expenditures ............................................................................................................................. 141 Department of State, Office of the Secretary of State Election Services Division 5 Arizona Campaign Finance: Candidate Committees Article 1.4 Reporting Requirements and Disclosure Statement ........................................................ 142 § § § § 16-925. 16-926. 16-927. 16-928. Advertising and fund-raising disclosure statements ............................................................................................................. 142 Campaign finance reports; contents ............................................................................................................................................. 143 Campaign finance reporting period ............................................................................................................................................. 145 Filing officer; statements and reports ........................................................................................................................................... 146 Article 1.5 Biennial Financial Adjustments .................................................................................................... 146 § 16-931. Biennial adjustments; committee registration; contribution limits................................................................................ 146 Article 1.6 Committee Termination .................................................................................................................. 146 § 16-933. Transfer and disposal of committee monies; limitations ................................................................................................... 146 § 16-934. Termination statement; filing; contents ...................................................................................................................................... 147 Article 1.7 Enforcement ............................................................................................................................................ 148 § 16-937. Failure to file; penalties; notice; suspension .............................................................................................................................. 148 § 16-938. Enforcement authority; investigation; reasonable cause; notice of violation; administrative appeal ............. 148 Article 2 Citizens Clean Elections Act ............................................................................................................. 150 § § § § § § § § § § § § § § § § § § § § § 16-940. 16-941. 16-942. 16-943. 16-945. 16-946. 16-947. 16-948. 16-949. 16-950. 16-951. 16-952. 16-953. 16-954. 16-955. 16-956. 16-957. 16-958. 16-959. 16-960. 16-961. Findings and declarations .................................................................................................................................................................. 150 Limits on spending and contributions for political campaigns ...................................................................................... 150 Civil penalties and forfeiture of office ........................................................................................................................................ 151 Criminal violations and penalties ................................................................................................................................................. 151 Limits on early contributions .......................................................................................................................................................... 151 Qualifying contributions.................................................................................................................................................................... 152 Certification as a participating candidate .................................................................................................................................. 152 Controls on participating candidates’ campaign accounts ................................................................................................ 153 Controls on spending from citizens clean elections fund ................................................................................................. 153 Qualification for clean elections funding .................................................................................................................................. 154 Clean elections funding...................................................................................................................................................................... 155 One-party-dominant legislative district...................................................................................................................................... 156 Return of monies to the citizens clean elections fund ....................................................................................................... 156 Disposition of excess monies ........................................................................................................................................................... 157 Citizens clean election commission; structure ........................................................................................................................ 157 Voter education and enforcement duties .................................................................................................................................. 158 Enforcement procedure ...................................................................................................................................................................... 160 Manner of filing reports..................................................................................................................................................................... 160 Inflationary and other adjustments of dollar values ............................................................................................................ 161 Severability................................................................................................................................................................................................ 162 Definitions ................................................................................................................................................................................................ 162 Department of State, Office of the Secretary of State Election Services Division 6 Arizona Campaign Finance: Candidate Committees Candidate Committees Running a campaign, especially for the first time, can be a daunting task. But it need not be. This Guide outlines everything a candidate needs to know to be successful when running a privately financed campaign in Arizona. 1 A. Establishing a Candidate Committee With few exceptions, a candidate generally needs to form a campaign committee before commencing his or her campaign in earnest. 1. When to form a campaign committee A candidate seeking election to state, county, or city/town public office, including a judge seeking to be retained in office, 2 is required to form a candidate committee upon reaching a certain level of financial activity. Specifically, a prospective candidate who has received contributions or made expenditures (in any combination) of at least $1,100 in connection with his or her candidacy is required to form a committee within 10 days of reaching that threshold. 3 For example, receiving a $600 check from a family friend while spending $500 on campaign supplies will trigger the registration requirement. Use of a candidate’s own personal monies for electoral purposes counts towards the $1,100 threshold as well. 4 If a candidate never reaches the $1,100 threshold, however, registration and reporting are not required. Spending “in connection with” one’s candidacy includes more than just the obvious indicators that someone is running for office, such as receiving contributions or purchasing campaign signs. 5 It also includes (but is not necessarily limited to) activities such as conducting polling, purchasing email lists, hiring attorneys or consultants, taking out a loan, incurring travel expenses, leasing facilities, purchasing supplies or equipment, or any other expense incurred for campaign purposes. Keep in mind, any contributions received or expenditures incurred before registration are eventually reportable, so a candidate must keep track of all financial activity from dollar one. 6 1 This Guide is primarily intended for privately financed candidates. Statewide and legislative candidates using public financing should contact the Arizona Citizens Clean Elections Commission to confirm additional campaign finance requirements that may be applicable. The Clean Elections Commission also asserts that it has jurisdiction to impose penalties against privately financed candidates for statewide and legislative office for failure to comply with campaign finance reporting requirements. For additional information on these penalties, please refer to A.R.S. § 16-942 and the rules adopted by the Clean Elections Commission. 2 A.R.S. §§ 16-901(7); 16-905(A). Arizona Supreme Court Justices, Court of Appeals judges, and Superior Court judges in Maricopa, Pima and Pinal Counties seek retention in office pursuant to Ariz. Const. Art. VI, § 38 after their initial appointment. Although they are required to form campaign committees if they reach the requisite financial threshold, Arizona judicial ethics rules prohibit judges from personally soliciting campaign contributions. See Ariz. Code of Judicial Conduct, Rule 4.1(A)(6). 3 A.R.S. §§ 16-905(A); 16-906(A). Registration thresholds are increased by $100 pursuant to A.R.S. § 16-931(A)(1). 4 A candidate’s “personal monies” include all sources of income or wealth available to the candidate or candidate’s spouse. A.R.S. § 16901(40). A candidate’s use of personal monies is discussed more in depth in Section E(2). 5 Candidate registration is triggered if a candidate raises or spends at least $1,100 “in connection with” his or her candidacy. A.R.S. §§ 16905(A); 16-931(A)(1). 6 A.R.S. § 16-907(I). Department of State, Office of the Secretary of State Election Services Division 7 Arizona Campaign Finance: Candidate Committees Even if registration is not required, it nonetheless may be a good idea. example, doing so will enable the candidate to have access to the online campaign finance reporting system to begin inputting financial data. 2. Where to register a candidate committee A candidate committee is formed by filing a statement of organization with the appropriate filing officer within 10 days of qualifying as a committee. The “filing officer” is the election official that accepts campaign finance reports for the office in question. 7 For statewide and legislative candidates, that means filing a statement of organization with the Secretary of State via the online campaign finance system available at https://apps.azsos.gov/apps/election/cfs/filing/Login.aspx. 8 County candidates and candidates for certain special taxing districts file either with the County Recorder’s Office or with the election department in that particular county. 9 The specific contacts for each county are listed in Appendix A. School district candidates must file with the County School Superintendent. 10 At the city and town level, statements of organization must be filed with the city or town clerk. 11 Contact information for each city and town may be found through the League of Arizona Cities and Towns at http://www.leagueaz.org/lgd/. At the state level, for What’s new? S.B. 1516 (2016) increased the committee registration threshold from $500 to $1,000 (now $1,100), which gives committees a degree of autonomy before having to register. What’s more, for those candidates who know they will not spend much money, there is no such thing as a “Threshold Exemption Statement” anymore. These low-spending candidates need not file any documents before campaigning for office. S.B. 1516 also eliminated the concept of an exploratory committee. Exploratory candidates were permitted to campaign without specifying the office sought, but were still required to register (upon meeting the previous $500 threshold) and file campaign finance reports. Under S.B. 1516, candidates may “explore” a run for office by keeping their financial activity below $1,100, but once that threshold is reached, a “candidate committee” must be formed. B. Filing a Statement of Organization 1. Getting started A candidate committee will need a few basic things to get their campaign off the ground. 7 A.R.S. § 16-906(A). A “filing officer” means the Secretary of State or the county, city or town officer in charge of elections for that jurisdiction who accepts statements and reports for those elections. A.R.S. § 16-901(27). 8 A.R.S. § 16-928(A)(1). 9 A.R.S. § 16-928(A)(2). 10 Despite that A.R.S. § 16-928(A)(2) makes the “county officer in charge of elections” the filing officer for school district elections, A.R.S. § 15-422(A) requires that nominating petitions be filed with the county school superintendent. 11 A.R.S. § 16-928(A)(3). Department of State, Office of the Secretary of State Election Services Division 8 Arizona Campaign Finance: Candidate Committees First, the committee will need a chairperson and treasurer to run the organization. A chairperson may be assigned as many or as few duties as the candidate sees fit. Some chairpersons run the day-to-day operations of the campaign committee, while other chairpersons merely serve as figureheads. However, the committee treasurer should not be a figurehead. The treasurer is responsible for keeping the What’s new? committee’s books and records, must sign off on financial transactions, and remains legally and personally Under S.B. 1516 (2016), email responsible for filing complete and accurate campaign addresses are now required, as committees will only be notified by finance reports. 12 Since most campaign finance violations email (in lieu of certified mail) going stem from poor recordkeeping or inattention to the law, forward. picking the right treasurer is important. Candidates typically select the person they trust most to serve as chairperson and treasurer: themselves. 13 Only candidate committees are permitted to have the same person act as chairperson and treasurer. The committee will also need basic contact information. It is perfectly acceptable to use the candidate’s own contact information, but some candidates establish a separate mailing address and/or email address for their committee. Whichever choice is made, the candidate should provide addresses that the candidate will check often: donors will send checks that must be timely reported, and election officials may send emails with important announcements or notices. 14 Chairpersons and treasurers are now specifically required to new? provide a What’s physical or street address in lieu of a P.O.Under Box (in case these key officers S.B. 1516 (2016), a must be located). In contrast, the be candidate committee will only committee’s address may be a P.O. Box. notified by email that a potential campaign finance violation has Finally, instead of requiring candidates occurred. to verify they “read all the applicable laws relating to campaign finance,” an unrealistic undertaking for even the most committed candidate, a requirement to read the applicable parts of this Guide (or another locallycreated guide) was substituted under S.B. 1516. Of course, candidates still must always comply with Arizona law regardless of what they affirm on a statement of organization. Finally, a candidate committee must establish a bank account and be prepared to disclose the name of its bank or other financial institution. 15 (Please do not list account numbers in a statement of organization; list just the bank name). In some cases, a committee might have to forecast in its statement of organization the bank where it intends to open an account. This is because some banks might require a committee to have certain formalities already established prior to opening an account, such as filing a statement of organization, incorporating with the Arizona Corporation Commission, and/or obtaining a taxpayer ID number from the Internal Revenue Service (IRS). It is permissible to list the committee’s future financial institution on a statement of organization if the committee ultimately opens that account. In that case, the committee should wait 12 A.R.S. §§ 16-907(A); 16-926(B)(5); 16-934(B). A.R.S. § 16-906(B)(3) (“the candidate may serve as both chairperson and treasurer”). Only candidate committees are permitted to combine the chairperson and treasurer positions. 14 A.R.S. § 16-906(B)(6). A condition of filing a statement of organization is that the candidate agrees to accept all notices via email in lieu of certified mail or personal delivery. Failure to regularly check one’s email will not be considered a valid defense to any enforcement action. 15 A.R.S. § 16-906(B)(5). 13 Department of State, Office of the Secretary of State Election Services Division 9 Arizona Campaign Finance: Candidate Committees no longer than 30 days after filing the statement of organization to open the account to avoid a campaign finance violation. For reasons discussed in the next section, the committee must open its own account, and may not commingle other monies in the account. 16 2. Components of a statement of organization A candidate committee is required to file a statement of organization containing the following information: Committee Information · Committee name 17 · · Candidate’s political party (if applicable) 19 · · · The committee name must include the candidate’s first or last name and, if the candidate has a candidate committee open for more than one office, the office sought. 18 A candidate must identify his or her political party only if running for a partisan office where the candidate’s party affiliation will appear on the ballot. 20 Committee mailing address 21 · If the committee has its own mailing address separate from the candidate’s, chairperson’s or treasurer’s address, this mailing address should be listed. · Otherwise, if the committee does not have its own mailing address, the committee may list the mailing address for the candidate, chairperson, treasurer, committee’s political consultant, or any other person who speaks for the candidate. · A P.O. Box may serve as a mailing address. Committee email address 22 · If the committee has its own email address separate from the candidate’s, chairperson’s or treasurer’s email address, the committee’s email address should be listed. · Otherwise, if the committee does not have its own email address, the committee may list the email address for the candidate, chairperson, treasurer, committee’s political consultant, or any other person who speaks for the candidate. 16 A.R.S. § 16-907(B)(1). A.R.S. § 16-906(B)(1). 18 A.R.S. § 16-906(B)(1)(a). It is not necessary to identify the district with the “office sought,” however legislative candidates must specify whether they are running for the Senate or House of Representatives. Abbreviations and shorthand phrases are permissible. For example, “Johnson 4 House” or “Smith Corp. Comm. Committee” are sufficiently descriptive committee names. If applicable, committee names must include the office sought because candidates are permitted to establish multiple candidate committees for different offices; therefore, it is necessary for any fundraising solicitations or advertising disclaimers properly disclose which committee actually paid for the expenditure. See A.R.S. § 16-906(F) (barring multiple committees for the same office but imposing no restrictions on forming multiple committees for different offices); § 16-925(A)(1) (requiring “paid for” followed by the committee name on any fundraising solicitation or political advertisement). 19 A.R.S. § 16-906(B)(4). 20 Partisan candidates must be registered with the political party for which they seek a nomination at the time they form their committee and through the period when they file a nomination paper to seek ballot access. A.R.S. § 16-311(A). 21 A.R.S. § 16-906(B)(1). 22 A.R.S. § 16-906(B)(1). 17 Department of State, Office of the Secretary of State Election Services Division 10 Arizona Campaign Finance: Candidate Committees · Committee website (if applicable) 23 · · · A committee must identify its website only if the committee or candidate has a campaign website. Committee telephone number 24 · If the committee has its own telephone number separate from the candidate, chairperson or treasurer, that number should be listed. · Otherwise, if the committee does not have its own telephone number, the committee should list the telephone number for the candidate, chairperson, treasurer, committee’s political consultant, or any other person who speaks for the candidate. Name of any banks or other financial institutions used by the committee 25 · Please do not list bank account numbers. Chairperson Information · Chairperson’s name 26 ⋅ · Chairperson’s physical location or street address 28 ⋅ · The chairperson should list a personal or work email address that is separate from the committee’s generic email address. This is intended to ensure there are multiple ways to reach a committee via email. Chairperson’s telephone number 30 ⋅ · The chairperson must provide a physical or street address where he or she can be located, and therefore may not list a P.O. Box. Chairperson’s email address 29 ⋅ · A candidate may serve as chairperson of his or her own campaign committee. 27 The chairperson should list a personal or work telephone number that is separate from the committee’s telephone number. This is intended to ensure there are multiple ways to reach a committee via telephone. Chairperson’s occupation 31 ⋅ 23 24 25 26 27 28 29 30 31 A.R.S. A.R.S. A.R.S. A.R.S. A.R.S. A.R.S. A.R.S. A.R.S. A.R.S. § § § § § § § § § The occupation should be sufficiently specific to identify the chairperson’s line of work. ⋅ “Attorney,” “accountant,” “doctor,” and the like are sufficiently descriptive. A “consultant” should be more specifically identified, such as “political consultant” or “management consultant.” ⋅ “Retired,” “homemaker,” “unemployed,” “student,” and the like are sufficient occupational descriptions, if applicable. 16-906(B)(1). 16-906(B)(1). 16-906(B)(5). 16-906(B)(3). 16-906(B)(3). 16-906(B)(3). 16-906(B)(3). 16-906(B)(3). 16-906(B)(3). Department of State, Office of the Secretary of State Election Services Division 11 Arizona Campaign Finance: Candidate Committees ⋅ · If the chairperson has multiple occupations, list the chairperson’s primary or principal occupation. Chairperson’s employer 32 ⋅ If the chairperson has multiple employers, list the chairperson’s primary or principal employer. ⋅ If the chairperson is self-employed, list the name, company, or title through which the chairperson does business. ⋅ “Retired,” “homemaker,” “unemployed,” “student,” and the like are sufficient employment descriptions, if applicable. Treasurer Information · Treasurer’s name 33 ⋅ · Treasurer’s physical location or street address 35 ⋅ · The treasurer should list a personal or work email address that is separate from the committee’s generic email address. This is intended to ensure there are multiple ways to reach a committee via email. Treasurer’s telephone number 37 ⋅ · The treasurer must provide a physical or street address where he or she can be located, and therefore may not list a P.O. Box. Treasurer’s email address 36 ⋅ · A candidate may serve as treasurer of his or her own campaign committee. 34 The treasurer should list a personal or work telephone number that is separate from the committee’s telephone number. This is intended to ensure there are multiple ways to reach a committee via telephone. Treasurer’s occupation 38 ⋅ The occupation should be sufficiently specific to identify the treasurer’s line of work. ⋅ 32 33 34 35 36 37 38 A.R.S. A.R.S. A.R.S. A.R.S. A.R.S. A.R.S. A.R.S. “Attorney,” “accountant,” “doctor,” and the like are sufficiently descriptive. A “consultant” should be more specifically identified, such as “political consultant” or “management consultant.” ⋅ “Retired,” “homemaker,” “unemployed,” “student,” and the like are sufficient occupational descriptions, if applicable. ⋅ If the treasurer has multiple occupations, list the treasurer’s primary or principal occupation. § § § § § § § 16-906(B)(3). 16-906(B)(3). 16-906(B)(3). 16-906(B)(3). 16-906(B)(3). 16-906(B)(3). 16-906(B)(3). Department of State, Office of the Secretary of State Election Services Division 12 Arizona Campaign Finance: Candidate Committees · Treasurer’s employer 39 ⋅ If the treasurer has multiple employers, list the treasurer’s primary or principal employer. ⋅ If the treasurer is self-employed, list the name, company, or title through which the treasurer does business. ⋅ “Retired,” “homemaker,” “unemployed,” “student,” and the like are sufficient employment descriptions, if applicable. A sample Statement of Organization is included in Appendix C. After providing this information, the candidate, chairperson, and treasurer must swear under penalty of perjury that they (1) have read this Guide (and/or any additional guide provided by a local filing officer), (2) agree to comply with Arizona campaign finance law, and (3) agree to accept all notifications, statements, service of process, or other important documents via the committee’s email address. 40 What’s new? Prior law required the candidate to affirm that he or she “has read all applicable laws relating to campaign financing and reporting.” S.B. 1516 substituted that provision with a requirement to read the filing officer’s campaign finance guide instead. Regardless of what the candidate affirms on a statement of organization, a candidate is still required to comply with all Arizona laws. Please note, because official notifications will be exclusively sent via email, the candidate and committee officers should list email addresses that will be routinely monitored. In the event a campaign finance complaint is filed against the committee, for example, the filing officer will not typically accept failure to monitor the email account(s) as a legitimate defense for failing to respond to the complaint. Original signatures are not required for a statement of organization, given that typed or electronic signatures are deemed to have the same legal effect. 41 Once registration is complete, the filing officer will issue an identification number for the candidate committee. 42 This identification number will be used to identify the committee in future correspondence. 39 A.R.S. § 16-906(B)(3). A.R.S. § 16-906(B)(6). Because official notifications will be exclusively sent via email, the candidate and committee officers should list email addresses that will be routinely monitored. In the event a campaign finance complaint is later filed, for example, the filing officer will not typically accept failure to monitor the email account(s) as a legitimate defense to enforcement. 41 Original signatures are no longer required because a filing officer must provide an electronic filing option for all candidates. A.R.S. § 16928(C). On an interim basis, local jurisdictions typically comply with the requirement by providing fillable PDFs and accepting any completed documents via email or direct upload to the filing officer’s website. A more comprehensive, statewide campaign filing system will be available later in 2018 election cycle. 42 A.R.S. § 16-906(D). 40 Department of State, Office of the Secretary of State Election Services Division 13 Arizona Campaign Finance: Candidate Committees 3. Qualification for clean elections funding A candidate for statewide or legislative office—who has filed a statement of organization with the Secretary of State’s Office and established a candidate committee—is eligible to participate in the Arizona Citizens Clean Elections funding program. A publicly funded candidate must comply with the provisions of the Citizens Clean Elections Act, including filing an Application for Certification as a Participating Candidate with the Secretary of State’s Office before the end of the applicable qualifying period. 43 Please contact the Citizens Clean Elections Commission for further information. 44 The City of Tucson also operates a Public Funds Matching Program. Please contact the Tucson City Clerk’s Office for further information. 45 4. Changes in committee information If there is a change in any committee information outlined in Section B(2) above, a committee must file an amended statement of organization within ten days of the change. 46 5. Forming multiple committees From a campaign finance perspective, a candidate may only have one campaign committee in existence for the same office during the same election cycle. 47 This prevents a candidate from subverting contribution limits by having donors contribute to multiple affiliated committees.48 In the event a candidate seeks to open multiple committees for the same office, filing officers are authorized to reject the superfluous statements of organization. 49 The more likely scenario involves a candidate who runs for the same office in consecutive election cycles. In that case, it is not necessary to open a new campaign committee for the next election cycle while terminating the previous committee. Rather, it is acceptable to continue using the previously-existing committee and amend that committee’s statement of organization to make any necessary changes. 50 A candidate may simultaneously maintain multiple committees for different offices; however, that does not necessarily mean the candidate is permitted to freely transfer money between these 43 A.R.S. § 16-950. Visit www.azcleanelections.gov. 45 Visit www.tucsonaz.gov/clerks/campaign-finance-information. 46 A.R.S. § 16-906(C). 47 A.R.S. § 16-906(F). Other Arizona laws prohibit a candidate from submitting multiple nomination papers to run for multiple offices. See e.g. Ariz. Const. Art. 22, § 18; A.R.S. §§ 38-296 and 38-296.01. 48 For further guidance on operating or fundraising with a 2016 or earlier-formed committee, please see Appendix B. 49 Even if not rejected by the filing officer, the candidate would be subject to a campaign finance complaint for maintaining multiple committees for the same office in violation of A.R.S. § 16-906(F). 50 If a candidate closes a committee and reopens another committee for the same office during the same election cycle, contribution limits will not reset for the new committee. Contributions to the original committee will be deemed to be contributions to the new committee, so both committees must keep accurate records to reconcile both committees’ financial activities. 44 Department of State, Office of the Secretary of State Election Services Division 14 Arizona Campaign Finance: Candidate Committees committees. (Again, this is intended to prevent candidates from subverting contribution limits by having donors contribute to multiple committees). Sections E(1) and G of this Guide more fully discuss the limitations on transferring money from committee to committee. 51 C. Recordkeeping and Financial Management A candidate committee is required to maintain financial records. The legal responsibility for compliance falls on the committee treasurer, but many candidates act as their own treasurer, therefore it is imperative that candidates remain actively involved in financially managing their own campaigns. 52 1. Gathering contributor information Often the lifeblood of a thriving campaign is fundraising. But when a campaign receives contributions, it is important that the campaign conduct its due diligence to properly document these contributions. Different rules apply depending on the source and the amount of the contribution. Individual contributions over $50. For contributions from individuals who contribute at least $50 during the election cycle, a campaign committee is required to record and report each contributor’s name, address, occupation, and employer. 53 Here are the standards that apply: · · Contributor’s name 54 ⋅ The contributor must provide a first and last name. 55 ⋅ If a joint contribution is made by a married couple, each spouse’s first and last name must be provided to the committee. Contributor’s residential location or street address 56 ⋅ · Only a residential address or location may be provided. 57 A work address or P.O. Box is not permitted. Contributor’s occupation 58 ⋅ The occupation should be sufficiently specific to identify the contributor’s line of work. 51 In adjudicating any campaign finance complaint, a filing officer is more likely to find reasonable cause that a campaign finance violation occurred if one committee appears to draw resources from another committee in a way that subverts campaign finance limits or disclosure requirements. For example, paying for a generic campaign ad out of one campaign account that arguably bolsters candidacies for multiple offices is more likely to be deemed a campaign finance violation. 52 A.R.S. § 16-907(A). 53 A.R.S. § 16-901(29). A candidate committee must fully “identify” any individual who contributes at least $50 during the election cycle. A.R.S. §§ 16-907(C); 16-926(B)(2)(a)(i). 54 A.R.S. § 16-901(29)(a). 55 A.R.S. § 16-901(29)(a). 56 A.R.S. § 16-901(29)(a). 57 A.R.S. § 16-901(29)(a). 58 A.R.S. § 16-901(29)(a). Department of State, Office of the Secretary of State Election Services Division 15 Arizona Campaign Finance: Candidate Committees ⋅ · ⋅ “Attorney,” “accountant,” “doctor,” and the like are sufficiently descriptive. A “consultant” should be more specifically identified, such as “political consultant” or “management consultant.” ⋅ “Retired,” “homemaker,” “unemployed,” “student,” and the like are sufficient occupational descriptions, if applicable. If the contributor has multiple occupations, the contributor’s primary or principal occupation should be provided. Contributor’s employer 59 ⋅ If the contributor has multiple employers, the contributor’s primary or principal employer should be provided. ⋅ If the contributor is self-employed, the contributor should list the name, company, or title through which he or she does business. ⋅ “Retired,” “homemaker,” “unemployed,” “student,” and the like are sufficient employment descriptions, if applicable. Individual contributions under $50. If an individual contributor did not give at least $50 to a candidate’s committee during the election cycle, the committee need not report the contributor’s name, address, occupation and employer. But the committee should attempt to keep records of this information. For example, if an individual contributor eventually reaches the $50 threshold during the election cycle, the contributor’s identifying information will be required to be reported going forward. If the committee does not track a person’s small-dollar contributions from the beginning, it will be difficult to know when the contributor’s $50 aggregate threshold has been reached. Tracking these small donations is easier said than done in the real world. Campaigns are not expected to seek identifying information during isolated or fleeting fundraising encounters, such as when selling campaign T-shirts or raffle tickets. On the other hand, routinely raising funds at a reoccurring political meeting or event is likely to put a candidate face-to-face with donors who are inclined to contribute again in the future. As a rule of thumb, contributions of $20 or less at regularly held political party raffles, meetings, or fundraisers do not trigger an ongoing obligation to gather identifying information, even if party members routinely attend such meetings or events.60 Outside the context of a political party-sponsored events, however, a candidate should err on the side of caution if there is a substantial likelihood of encountering small dollar contributors who will exceed $50 in contributions during the election cycle. In the end, a campaign should always use its best judgement as to when to collect identifying information from small dollar individual contributors. 59 60 A.R.S. § 16-901(29)(a). If there is an entrance fee that exceeds $50, however, identifying information should be reported. Department of State, Office of the Secretary of State Election Services Division 16 Arizona Campaign Finance: Candidate Committees Political action committee (PAC) and political party contributions. For PAC or political party contributions in any amount, a candidate committee is required to record and report the contributor’s name and address:61 · PAC or political party’s name 62 ⋅ · A PAC or party should provide its name as reflected in its statement of organization or articles of incorporation. 63 PAC or political party’s physical location or street address 64 ⋅ Only a physical address or street location may be provided. 65 A P.O. Box is not permitted. Partnership contributions. For partnership contributions in any amount, a candidate committee is required to record and report the partnership’s name and address: · Partnership’s name 66 ⋅ · Partnership’s physical location or street address 67 ⋅ · A partnership should provide its name as reflected in its articles of incorporation/organization, partnership agreement, or other official document filed with a government entity. Only a physical address or street location may be provided. 68 A P.O. Box is not permitted. Individual contributing partners’ information ⋅ A partnership must provide the name, address, occupation and employer for each individual partner who has agreed to participate in the partnership’s contribution. For more information about partnership contributions, please see Section D(2) of this Guide. Using standard disclaimers. Candidate committees not only must ask for identifying information, they must also inform the contributor that they are legally required to do so. 69 Thus, when sending out a fundraising solicitation for a forthcoming fundraiser, the following disclaimer will normally suffice: “The committee is legally required to request identifying information from each contributor.” 70 61 A.R.S. § 16-901(29)(b). All PAC and political party contributors must be identified, as there is no $50 reporting threshold similar to what exists in the individual context. Compare A.R.S. § 16-926(B)(2)(a)(i) with A.R.S. § 16-926(B)(2)(a)(iii)-(iv). 62 A.R.S. § 16-901(29)(b). 63 Only PACs and political parties registered in Arizona are permitted to make contributions to candidate committees. See A.R.S. § 16901(41) (defining a “political action committee” as an entity “that is required to register” with an Arizona filing officer pursuant to A.R.S. § 16-905); A.R.S. § 16-901(42) (defining a “political party” as a committee that has met “the requirements for recognition as a political party pursuant to [Arizona law]”). 64 A.R.S. § 16-901(29)(b). 65 A.R.S. § 16-901(29)(b). 66 A.R.S. § 16-901(29)(b). 67 A.R.S. § 16-901(29)(b). 68 A.R.S. § 16-901(29)(b). 69 A.R.S. § 16-907(C). 70 The content of the disclaimer is not statutorily prescribed. Any substantially similar disclaimer will suffice. Department of State, Office of the Secretary of State Election Services Division 17 Arizona Campaign Finance: Candidate Committees Using “best efforts” to seek missing information. Good practice entails scrutinizing all contributions upon receipt to ensure they sufficiently meet the above standards. 71 Some contributions are bound to be lacking, however. These are known as “incomplete contributions.” 72 If a campaign committee discovers an incomplete contribution, it is required to affirmatively seek out the missing information in order to file a complete and accurate campaign finance report. 73 The committee is not held to a standard of perfection, since it need only make its “best effort” to acquire the missing information. But in order to qualify as a “best effort,” the committee treasurer (or the treasurer’s agent) must make at least one attempted written communication, such as by email, text message, private message through social media or other similar communication, or at least one attempted oral communication to the contributor that is documented in writing. 74 In either case, the treasurer should keep written records documenting these attempts. 75 And remember, each follow-up request for information must clearly identify the missing information sought and inform the contributor that the committee was legally required to seek that information. 76 Reporting and amending reports. If a committee’s best effort to contact a contributor ultimately fails, the committee has done all it can do. It should timely file its campaign finance report with the incomplete contributor information. If a contributor belatedly provides this information to the committee after the applicable campaign finance report was filed, the committee must amend that report with the updated contributor information within a reasonable period. 77 If a previously small dollar individual donor reaches $50 in aggregate contributions during the election cycle, the committee need not amend any previous reports. 2. Managing financial activity and records The committee treasurer is charged with preserving the committee’s financial records, managing the committee’s financial affairs, and ensuring the accuracy of campaign finance reports. 78 This section outlines in greater detail some of these basic responsibilities. Activities requiring treasurer approval. A candidate committee may not engage in any financial activity without the authorization of the treasurer—or at least someone designated by the treasurer. 79 Since the treasurer is ultimately responsible for campaign finance reporting, it is only fair to give the treasurer final say-so over financial transactions. 71 A.R.S. § 16-901(29). A.R.S. § 16-901(30). 73 A.R.S. § 16-907(C). 74 A.R.S. § 16-901(5). 75 Written records of all “best efforts” attempts will normally be sufficient to defend against a campaign finance complaint alleging incomplete campaign finance reports. 76 A.R.S. § 16-907(C). There is no magic wording for a follow-up request. 77 A.R.S. § 16-907(C). 78 A.R.S. § 16-907(A). 79 A.R.S. § 16-907(A). 72 Department of State, Office of the Secretary of State Election Services Division 18 Arizona Campaign Finance: Candidate Committees Methods of accepting contributions. A candidate committee may accept a contribution made by cash, check, credit card, payroll deduction, wire transfer, or any other method of online payment. 80 The committee need not provide a receipt for cash contributions, although some contributors might request one. Most contributions likely will be by check or credit card, however. In those cases, the treasurer (or treasurer’s agent) has a duty to ensure that the contributor is the account holder of the instrument. 81 For example, the committee may not accept a check drawn from the account of “David Johnson” when the accompanying contribution form is from “Marcy Smith.” In these cases, the committee must attempt to reconcile the discrepancy and be prepared to issue a refund. Special attribution rules apply to married couples. If a check has both spouses’ names printed on it but only one spouse signs the check, the contribution is deemed to be from the signing spouse only. 82 The same goes for credit card transactions: if a contribution is made from a joint account, only the spouse who authorized the transaction is deemed the contributor. A married couple seeking to make a joint contribution, therefore, must jointly sign the check or otherwise clearly indicate that the contribution should be dually-attributed to both spouses. 83 A joint contribution is normally assumed to be allocated 50/50 between spouses, but any other allocation percentage chosen by joint contributors is permissible. 84 Fundraising is discussed in greater detail in Sections D and E of this Guide. Method of recording contributions and expenditures. Determining the date of a contribution is not always straightforward. For example, if a contributor writes a check on the 24th (based on the date of the check), mails it on the 29th (based on the postmark), is delivered to the committee’s mailbox on the 2nd, is retrieved by the committee on the 5th, and opened by the committee on the 8th, when was the contribution “made” for reporting purposes? The answer can be important, because when a contribution was made will dictate when the contribution must be reported. Arizona law establishes a few rules of thumb. For contributions, the date of receipt is either the date the committee knowingly takes possession of the contribution or the date shown on the check, credit card payment, or other instrument. 85 “Knowing possession” means that the committee is aware that it likely possesses a contribution (for example, the campaign’s most recent mail delivery contains several return envelopes issued by the campaign to receive contributions). Committee expenditures and disbursements have more nuanced rules of thumb. For a transaction by check, the expenditure or disbursement is deemed to have been made on the date the 80 A.R.S. § 16-907(E)-(F). A.R.S. § 16-907(F). 82 A.R.S. § 16-907(F). 83 A.R.S. § 16-907(F). 84 Joint contributions require the name, address, occupation and employer for both joint contributors. 85 A.R.S. § 16-926(C)(1). 81 Department of State, Office of the Secretary of State Election Services Division 19 Arizona Campaign Finance: Candidate Committees committee signs the check. 86 For credit card transaction on paper (i.e. when a committee is presented with a paper slip that must be signed in order to charge a credit card), the expenditure or disbursement is made on the date that authorization slip is signed. 87 For an online transaction, the expenditure or disbursement is deemed made on the date that the committee authorizes the transaction. 88 Finally, for an agreement to purchase goods or services, the expenditure or disbursement is deemed made either on the date of the parties’ agreement or the date that the committee was issued a purchase order or similar invoice. 89 If a particular expenditure or disbursement does not fall into one of the above categories, the committee is permitted to treat the expenditure/disbursement as being made on the date that the committee authorized the expenditure/disbursement or the date that the money is withdrawn from the committee’s account. 90 In the end, no particular reporting method must be used. This is for the committee to determine in its discretion. However, the method utilized must be applied consistently throughout the election cycle. 91 For example, a candidate may not selectively use the date of the check for some contributions while using date of possession for other contributions received at the same time. A more consistent method would entail using the date of possession for all mailed checks and the date of the check for all in-person fundraisers. As long as the committee’s approach is consistent, and not strategic or random, the filing officer will usually defer to the committee’s judgment. Maintaining separate bank accounts. An important aspect of financial management is ensuring that certain monies are not commingled in the same bank account. For candidate committees, this means making sure that committee monies are not commingled in the same bank account as the candidate’s personal monies—or any other person’s monies. 92 The committee’s monies should be held in an account under the committee’s name at the financial institution listed in the committee’s statement of organization. 93 Additional safeguards apply if the candidate is the subject of a recall election. In the event a recall petition serial number has been taken out, the targeted officeholder is permitted to begin fundraising to defeat the recall effort. 94 Since the officeholder operates under a brand-new election cycle for that purpose, any recall-related contributions, expenditures, or disbursements must be drawn from an account separate from the officeholder’s principal campaign account. 95 The committee treasurer is not permitted to commingle or transfer money between these accounts. 96 86 A.R.S. § 16-926(C)(2). A.R.S. § 16-926(C)(2). 88 A.R.S. § 16-926(C)(2). 89 A.R.S. § 16-926(C)(2). 90 A.R.S. § 16-926(C)(2). 91 A.R.S. § 16-926(C)(3). 92 A.R.S. § 16-907(B)(1). 93 A.R.S. § 16-907(B). 94 See A.R.S. § 16-901(18) (creating a separate “election cycle” for a recall election, which commences with “the issuance of a recall petition serial number”). 95 A.R.S. § 16-907(B)(1). 96 A.R.S. § 16-907(B)(1). 87 Department of State, Office of the Secretary of State Election Services Division 20 Arizona Campaign Finance: Candidate Committees Thus, an officeholder should contact his or her financial institution to set up a separate bank account in the event a recall effort has been initiated. Maintaining financial records. The committee treasurer is generally responsible for maintaining records of all financial activity, even if the information will not be disclosed in a campaign finance report. 97 In general, this means keeping records of all the money flowing in and out of the committee, including: ⋅ All contributions made or received by the committee. 98 ⋅ The identity of any contributor that contributed at least $50 during the election cycle, including the name and address of all contributors (along with the occupation and employer for individual contributors), the date of each contribution, and the date the contribution was deposited into the committee’s account. 99 ⋅ The cumulative amount contributed by each donor during the election cycle. 100 ⋅ The name and address of every person who receives any money from the committee, including the date, amount, and purpose of any expenditure or disbursement. 101 These categories largely overlap with the information that must be disclosed in campaign finance reports, although not completely. For example, the record keeping statute only requires a committee to preserve identifying records for donors who contribute at least $50 in the aggregate during the election cycle, but the reporting statute requires a committee to identify all PAC donors in its campaign finance report regardless of how much money they contributed. 102 The record keeping statute requires the committee to keep records showing when each contribution was deposited into the committee’s account, but reporting statute does not require this information to be reported. 103 Finally, the reporting statute requires the committee to keep records showing the name and address of each person that received any disbursement from the committee, whereas the reporting statute only requires this detailed level of information for disbursements in excess of $250 during the reporting period. 104 All the record keeping information must be maintained by the committee for a period of two years following the election cycle in which the activity occurred. 105 Preservation of these records is imperative, as the filing officer or the enforcement officer may request these records from the committee at any time. 106 97 A.R.S. § 16-907(A). A.R.S. § 16-907(D)(1). 99 A.R.S. § 16-907(D)(2). 100 A.R.S. § 16-907(D)(3). 101 A.R.S. § 16-907(D)(4). 102 Compare A.R.S. § 16-907(D)(2) (record keeping statute) with A.R.S. § 16-926(B)(2)(a)(iii) (reporting statute). 103 Compare A.R.S. § 16-907(D)(2) (record keeping statute) with A.R.S. § 16-926(B) (reporting statute). 98 104 Compare A.R.S. § 16-907(D)(4) (record keeping statute) with A.R.S. § 16-926(B)(3) (reporting statute). A.R.S. § 16-907(G). 106 A.R.S. § 16-907(H). The “filing officer” is the Secretary of State, county election director, or city/town clerk as applicable. The “enforcement officer” is the Attorney General, county attorney, or city/town attorney. A.R.S. §§ 16-901(21) and (27). 105 Department of State, Office of the Secretary of State Election Services Division 21 Arizona Campaign Finance: Candidate Committees Preserving records prior to committee formation. As outlined in Section A(1) above, a candidate need not form a committee and file campaign finance reports until it receives contributions or makes expenditures (in any combination) totaling at least $1,100. But once the registration requirement has been triggered, the committee’s cumulative, pre-registration financial activity must be reported in the committee’s first campaign finance report. 107 This is why good recordkeeping is important from day one of a candidate’s campaign. As a practical matter, the responsibility to maintain these early records falls upon the candidate, since technically there is no treasurer until a formal campaign committee has been organized. Tax liability. Campaign contributions are not taxable under state law, therefore the committee generally need not file an income tax return. 108 D. Receiving Contributions 1. What is a “contribution”? In general, a “contribution” is anything of value provided to a candidate committee for the purpose of influencing the candidate’s election. 109 Subject to the exceptions outlined below, the law assumes that all sources of money that flow into a candidate’s campaign account are “contributions.” Certain consequences flow from something being deemed a “contribution.” First, contributions are subject to source restrictions. Under Arizona law, a candidate committee may only accept contributions from individuals, PACs, political parties (as long as the candidate is the party’s “nominee” who prevailed in the primary), and partnerships. 110 A candidate committee may not accept contributions from unions, corporations, LLCs, or any other organization, group or business entity (other than partnerships). 111 This means that a candidate committee must pay careful attention to the identity of its donors. 112 Second, contributions from permissible sources are subject to contribution limits. Contribution limits vary according to the type of contributor (individual vs. Mega PAC), type of candidate (privately funded vs. publicly funded), and office sought (legislative vs. local). 113 Both the candidate and the contributor should understand how contribution limits will impact them. Finally, contributions are reportable: the committee must gather identifying information about the contributor and file regular campaign finance reports. 107 108 109 110 111 112 113 A.R.S. § 16-907(I). A.R.S. § 16-905(F); see also 26 U.S.C. § 527. A.R.S. § 16-901(11). A.R.S. § 16-913(D). Any PAC or political party contributor must be registered with the appropriate filing officer in Arizona. A.R.S. §§ 16-913(D); 16-916(A). Publicly funded candidates may not accept any contributions whatsoever, except very limited “early contributions.” A.R.S. § 16-941(A)(1). A.R.S. §§ 16-911 to 16-917. Department of State, Office of the Secretary of State Election Services Division 22 Arizona Campaign Finance: Candidate Committees For all these reasons, it is important to recognize what a contribution is and understand how it affects a campaign committee. Contributions principally fall into three categories: Monetary contributions. Monetary contributions are traditional sources of payment directly received by your committee, whether in cash, by check, or through online payment. These sources of support are typically provided by third-party donors and are subject to contribution limits. Monetary contributions also include personal monies supplied by the candidate or candidate’s family to fund the candidate’s campaign, but these monetary contributions are not subject to limits. 114 Loans. A loan is considered a contribution. 115 Loans are advances of money, or extensions of credit, provided to a candidate committee which the committee has agreed to pay back. Any individual who endorses or guarantees a loan on a committee’s behalf (i.e. agrees to be financially responsible for repaying the loan in the event the committee defaults) is deemed to have made a contribution as well. 116 However, the candidate’s spouse may guarantee the committee’s loan without limitation. 117 As a candidate committee pays back a loan, the loan balance remains a contribution to the extent the loan remains outstanding. 118 In tandem, the lender’s and guarantor’s contribution limits correspondingly free up to the extent of repayment. 119 For example: · Individual lender provides a $5,000 loan to a candidate committee. The candidate’s friend agrees to guarantee the loan on behalf of the committee. Lender and friend have $100 left to contribute during the election cycle (contribution limits are $5,100). · Committee repays $1,000 on the loan and files its campaign finance report. · Lender and friend now have $1,100 left on their contribution limit. Loans are subject to source restrictions as well. For example, financial institutions are generally incorporated and therefore prohibited from making contributions (even in the form of a loan) directly to a candidate committee. 120 On the other hand, a financial institution may make a loan to the candidate as an individual, who in turn may loan or contribute that amount as “personal monies” to the candidate’s own 114 A.R.S. § 16-901(40); see also A.R.S. § 16-913(F). A.R.S. § 16-901(11)(d). The loan is also subject to sources restrictions, therefore corporations, LLCs and unions are not permitted to provide loans to candidate committees. A.R.S. §§ 16-913(D); 16-916(A). 116 A.R.S. § 16-911(B)(14). 117 A.R.S. § 16-911(B)(14). 118 A.R.S. § 16-901(11)(d). 119 A.R.S. § 16-901(11)(d). 120 A.R.S. §§ 16-913(D); 16-916(A). Arizona law permits a financial institution to make a loan “in the ordinary course of business and not for the purpose of influencing the results of an election,” A.R.S. § 16-901(11)(d), but a candidate committee is deemed to be exclusively organized for the purpose of influencing the results of an election and therefore may not invoke the financial institution exception. 115 Department of State, Office of the Secretary of State Election Services Division 23 Arizona Campaign Finance: Candidate Committees campaign committee. 121 The candidate’s spouse may endorse or guarantee this personal loan as well. 122 In-kind contributions. In-kind contributions are non-monetary benefits, including goods, services or anything else of value, that are provided to a candidate committee without charge or at less than the usual and normal charge. 123 Donated or discounted goods and services generally constitute contributions, and therefore are subject to contribution limits and source restrictions. For example, goods and services may include (but are not limited to) the donation of wood/rebar for yard signs, printing services, donor lists from other candidates, or designing a campaign website. If a candidate receives a special discount on the purchase of these goods or services (i.e. the candidate receives a discount because he or she is a candidate), the amount of the discount is likewise an in-kind contribution and subject to contribution limits and source restrictions. In-kind contributions can also result from benefits provided to elected officials. For example, while a statewide elected official or member of the Legislature may accept contributions into an officeholder expenses or constituent services account (a perk not available to local elected officials unless authorized under local law), 124 direct acceptance of any item of value for the purpose of defraying the expense of communications with constituents constitutes an in-kind contribution. 125 In-kind contributions must be reported at fair market value—the price it would cost someone else (such as your opponent) to purchase the same good or service. 126 2. Who may contribute to a candidate committee? A candidate committee may only accept contributions from an individual, PAC, political party, or partnership. 127 Individuals Foreign nationals. An individual contributor must be an American citizen or lawful permanent resident of the United States. 128 Committees are not required to seek proof of citizenship or confirm immigration status, however checks drawn on a foreign bank account should trigger further inquiry. Joint contributions from spouses. Spouses each have their own contribution limit but are permitted to make a joint contribution. 129 Joint contributions are permitted as long as both spouses are account holders, even if only one spouse has an income. 121 A.R.S. §§ 16-901(40)(g);16-911(B)(14); 16-913(F). This amount is reported as “personal monies” in a campaign finance report. A.R.S. §§ 16-901(40)(g);16-911(B)(14). 123 A.R.S. § 16-901(32). 124 A.R.S. § 41-133. 125 A.R.S. § 16-901(11)(b). For example, an elected official at the statewide or legislative level may not accept a donation of stationary to communicate with constituents, but the official may directly pay for stationary out of the official’s constituent services account. 126 A.R.S. § 16-926(B)(2)(a)(xii). 127 A.R.S. § 16-913(D). The PAC or political party must be registered with the appropriate filing officer in Arizona. 128 52 U.S.C. § 30121; 11 C.F.R. § 110.20. 122 Department of State, Office of the Secretary of State Election Services Division 24 Arizona Campaign Finance: Candidate Committees For example, notwithstanding that contribution limits are $5,100, donor spouses may contribute $10,200 if the contribution is drawn from a joint account. A check that has both spouses’ names printed on the check is generally sufficient evidence that the contribution qualifies for joint status (although the committee may have to follow up to obtain the non-signing spouse’s identifying information for purposes of completing a campaign finance report). 130 A credit card transaction or online contribution should be accompanied with some evidence of joint account status, however. What’s new? Contributions from minors. Minors under 18 years old are permitted to make contributions. However, the contribution is treated as a contribution by the minor’s custodial parent(s). 131 Thus, the committee is required to obtain the parent(s)’ identifying information for reporting and contribution limit purposes. Contributions from lobbyists. Legislative candidates may accept contributions from lobbyists or “principals” registered with the Secretary of State only when the Arizona Legislature is not in regular session. 132 The Governor likewise may not accept lobbyist or principal contributions when the Arizona Legislature is in regular session, or when the Legislature has adjourned sine die but there is still regular session legislation that is pending the Governor’s signature or veto. 133 Under prior law, political parties at all levels of Arizona government shared the same contribution limit. For example, in 2014, a legislative candidate could only accept $4,000 from his or her state, county, and legislative district parties combined. Under S.B. 1516 (2016), each political party has its own contribution limit. Thus, a legislative candidate in 2017 may accept $5,100 each from his or her state, county, and legislative district party. The Governor and legislative members who receive contributions during the regular legislative session are expected to verify whether the contributor is a registered lobbyist or principal prior to depositing the contribution. 134 Local jurisdictions may have similar prohibitions, so committees should verify with their local filing officer. PACs. A candidate committee may accept contributions only from PACs registered with the applicable filing officer. 135 For example, a PAC that contributes to a legislative candidate must be 129 Notwithstanding Ariz. Const. Art. XXX, § 1, same sex spouses are permitted to make a joint contribution to Arizona candidates. Obergefell v. Hodges, 135 S. Ct. 2584 (U.S. 2015). 130 A.R.S. §§ 16-907(D)(2) and (F); 16-926(B)(2)(a)(i). 131 A.R.S. § 16-912(C). 132 A.R.S. § 41-1234.01(A)(1). The lobbying prohibition applies to lobbyists, principals, public bodies, designated public lobbyists, and authorized public lobbyists. A.R.S. § 41-1234.01(A). A “principal” is “any person [including an individual] . . . that employs, retains, engages or uses, with or without compensation, a lobbyist.” A.R.S. § 41-1231(16). 133 A.R.S. § 41-1234.01(A)(2). A contribution may be accepted by the Governor or a member of the Legislature within the first three calendar days of the regular session as long as the contribution was mailed and postmarked prior to the first day of the regular session. A.R.S. § 41-1234.01(C). 134 Lobbyists and principal information is available by searching the Secretary of State’s website at http://apps.azsos.gov/scripts/Lobbyist_Search.dll. Department of State, Office of the Secretary of State Election Services Division 25 Arizona Campaign Finance: Candidate Committees registered with the Secretary of State’s Office; a PAC that contributes to a mayoral candidate must be registered with that city or town’s clerk. Federal and out-of-state PACs may not make contributions to candidates unless also registered in Arizona. A PAC must be registered with the appropriate filing officer prior to making a candidate contribution. 136 A candidate committee is not required to verify whether a PAC is properly registered before depositing a PAC contribution, but it is recommended. However, a Mega PAC that attempts to contribute more than the contribution limit for standard PACs must provide a copy of its Mega PAC certification to the recipient committee. 137 A candidate committee is not permitted to accept or deposit an over-limit contribution unless it receives this certification from a PAC. 138 Political parties. A candidate who prevailed in the primary election (a “nominee” 139) may accept a contribution from his or her political party. (This effectively means that a candidate may only accept political party contributions during the 10-week period between the primary and general election). The nominee need not wait until the primary election has been officially canvassed by the jurisdiction in question, but in the event the candidate loses a recount, election contest, or otherwise does not become the official nominee, the candidate must promptly return any political party contributions. 140 Only candidates who run in partisan races (where political party is printed on the ballot) are permitted to accept political party contributions. A nominee may only accept a political party contribution from the nominee’s own political party. 141 A political party must be registered with the appropriate filing officer prior to making a candidate contribution. 142 Political parties include the state political party, county party, legislative district party, or a city/town political party. 143 Partnerships. A candidate committee may accept a contribution from a general partnership, limited partnership (LP), limited liability partnership (LLP), or limited liability limited partnership (LLLP). 144 The partnership need not be registered with a government agency or domiciled in Arizona. A partnership may contribute in its own name, but the contribution is dually attributed to any participating individual partners. 145 The partnership must include a written notice with the 135 A “political action committee” is defined as an entity “required to register” with the applicable filing officer in Arizona. A.R.S. § 16901(41). 136 A.R.S. § 16-928. 137 A.R.S. § 16-914(B). 138 A.R.S. § 16-914(B). If a candidate committee is unable to acquire the certification despite making best efforts, the candidate committee may verify Mega PAC status through the Secretary of State’s website (or other filing officer’s website) and make a written record documenting the committee’s verification efforts. 139 A.R.S. § 16-901(38). 140 See A.R.S. §§ 16-645; 16-661; 16-671. 141 For example, if a nominee prevailed in the Libertarian Party primary, the nominee may only accept a political party contribution from the state, county, or local Libertarian Party committee. 142 A.R.S. § 16-928. 143 See A.R.S. §§ 16-801 to 16-804; 16-821 to 16-827. 144 A.R.S. § 16-917(A). 145 A.R.S. § 16-917(C)(1)-(2). The partnership may not attribute any portion of the contribution to a partner that is a corporation, limited liability company, or union. A.R.S. § 16-917(C)(3). Department of State, Office of the Secretary of State Election Services Division 26 Arizona Campaign Finance: Candidate Committees contribution identifying the participating partners, along with instructions how the contribution should be allocated between the partners. 146 A partnership contribution need not be accompanied by the participating partners’ signatures, but the committee must acquire identifying information for each partner. 147 The contribution affects the partnership’s contribution limit along with the participating partners’ individual contribution limits to the candidate. 148 Example 1 ⋅ A partnership gives a candidate a $4,000 contribution. Contribution limits are $5,100. ⋅ The partnership allocates $2,000 of the contribution to one partner, $1,500 to a second partner, and $500 to a third partner. ⋅ The candidate reports a $4,000 contribution from the partnership and $2,000, $1,500 and $500 contributions from the respective individual partners. Example 2 ⋅ Same scenario as above, except the candidate committee discovers that the first partner had already contributed $4,000 to the candidate. ⋅ The candidate committee contacts the partnership, who advises that the excess amount may be allocated from the first partner to the second partner. ⋅ The candidate reports a $4,000 contribution from the partnership, $1,100 contribution from the first partner ($5,100 limit - $4,000 previous contribution = $1,100 maximum remaining contribution), $2,400 from the second partner ($1,500 original intended contribution + $900 excess allocated from the first partner), and $500 from the third partner. Example 3 ⋅ Same scenario as above, except the partnership did not disclose how the contribution should be allocated among the participating partners. The candidate committee makes best efforts to seek clarification but is unsuccessful. ⋅ If each partner has not exceeded their individual contribution limits, the candidate may divide the contribution equally among the partners and inform the partnership. A partnership may also establish a PAC and make contributions through that PAC. 149 A partnership’s PAC contributions to a candidate committee do not require allocation among any individual partners. These contributions are treated like any other PAC contributions. 146 147 148 149 A.R.S. A.R.S. A.R.S. A.R.S. § § § § 16-917(C)(1). 16-917(C)(4); see also A.R.S. §§ 16-907(C) & (D)(2); 16-926(B)(2)(a)(i). 16-917(C)(1)-(2). 16-917(D). Department of State, Office of the Secretary of State Election Services Division 27 Arizona Campaign Finance: Candidate Committees 3. Candidate committees are not required to file notifications upon receiving contributions. From 2013-2016, candidate committees were required to file a notification with the filing officer within 72 hours if they received a contribution of at least $1,000 within 20 days of an election. This law was repealed. Thus, candidate committees are not required to file any special notifications if they receive last minute contributions. The regular campaign finance reporting cycle applies regardless of the size or timing of contributions. Department of State, Office of the Secretary of State Election Services Division 28 Arizona Campaign Finance: Candidate Committees 4. Contribution limits Contribution limits for the 2017-2018 election cycle are as follows: Recipient Statewide Candidate Legislative Candidate Local Candidate (privately financed) (privately financed) (privately financed) Individual $5,100 $5,100 $6,350 Unlimited Unlimited Partnership $5,100 $5,100 $6,350 Unlimited Unlimited Generally prohibited (except surplus 150 funds) Generally prohibited (except surplus funds) 151 Generally prohibited (except surplus 152 funds) Unlimited Unlimited Unlimited Unlimited Candidate Committee Contributor 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 A.R.S. A.R.S. A.R.S. A.R.S. A.R.S. A.R.S. A.R.S. A.R.S. A.R.S. A.R.S. A.R.S. A.R.S. A.R.S. A.R.S. A.R.S. A.R.S. A.R.S. A.R.S. A.R.S. A.R.S. A.R.S. A.R.S. A.R.S. A.R.S. § § § § § § § § § § § § § § § § § § § § § § § § Party $5,100 PAC with Mega PAC status (using noncorp./non- union funds) $10,200 156 $10,200 157 $12,700 158 Unlimited Unlimited $80,100 (to a party nominee only) 159 $8,100 (to a party nominee only) 160 $10,100 (to a party nominee only) 161 Unlimited Unlimited Prohibited 162 Prohibited 163 Prohibited 164 Unlimited Unlimited 165 166 167 Unlimited Unlimited Corporation 151 Political PAC without Mega PAC status (using noncorp./non-union funds) Political Party (using noncorp./non-union funds) 150 PAC 153 $5,100 154 Prohibited $6,350 155 Limited Liability Co. Prohibited Prohibited Trust, Joint Venture, Coop, or Other Unincorp. Org. or Ass’n Prohibited 168 Prohibited 169 Prohibited 170 Unlimited Unlimited Union Prohibited 171 Prohibited 172 Prohibited 173 Unlimited Unlimited 16-913(A); see also A.R.S. § 16-933(A)(3). 16-913(A); see also A.R.S. § 16-933(A)(3). 16-913(A); see also A.R.S. § 16-933(A)(3). 16-914(A)(3). Base contribution limits reduced by 20% per A.R.S. § 16-941(B), but increased by 16-914(A)(2). Base contribution limits reduced by 20% per A.R.S. § 16-941(B), but increased by 16-914(A)(1). Base contribution limits are increased by $100 pursuant to A.R.S. § 16-931(A)(2). 16-914(B). 16-914(B). 16-914(B). 16-915(A)(3). Base contribution limits reduced by 20% per A.R.S. § 16-941(B), but increased by 16-915(A)(2). Base contribution limits reduced by 20% per A.R.S. § 16-941(B), but increased by 16-915(A)(1). Base contribution limits are increased by $100 pursuant to A.R.S. § 16-931(A)(2). 16-916(A). 16-916(A). 16-916(A). 16-916(A). 16-916(A). 16-916(A). 16-913(D). 16-913(D). 16-913(D). 16-916(A). 16-916(A). 16-916(A). Department of State, Office of the Secretary of State Election Services Division $100 under A.R.S. § 16-931(A)(2). $100 under A.R.S. § 16-931(A)(2). $100 under A.R.S. § 16-931(A)(2). $100 under A.R.S. § 16-931(A)(2). 29 Arizona Campaign Finance: Candidate Committees 5. How is an “election cycle” defined for contribution purposes? Contribution limits apply over the course of an election cycle. 174 For statewide, legislative and county races, the election cycle runs for the two-year period beginning on January 1 after a statewide general election and ending on December 31 in the year of the next statewide general election. 175 For city and town races, the election cycle constitutes the two-year period beginning on the first day of the calendar quarter after the calendar quarter in which the city’s or town’s second, runoff or general election is scheduled and ending on the last day of the calendar quarter in which the city’s or town’s immediately following second, runoff or general election is scheduled (however designated or characterized by the city or town). 176 Example 1 What’s new? Under prior law, the election cycle ended 20 days after the general election and the post-election report was due 10 days later. Under H.B. 2486 (2017), the election cycle ends on December 31 following the general election date and the post-election report is due at the next quarterly reporting date. The change means that a postelection report is generally filed later than under prior law. ⋅ City requires city council candidate to receive a majority of votes cast to prevail in the city’s first election held in August in an odd-numbered year. The top two vote-getters advance to the second/runoff election held in November. ⋅ No candidate received a majority of votes during the August 2015 first election, therefore a second/runoff election was held in November 2015. ⋅ The election cycle runs from January 1, 2014 to December 31, 2015. Example 2 · Same scenario as above, except a local candidate did receive a majority of votes cast during the August 2015 first election. A second/runoff election was not held in November 2015. · The election cycle still runs from January 1, 2014 to December 31, 2015. 177 174 A.R.S. §§ 16-912(A); 16-914(A)-(B); 16-915(A); 16-917(A). A.R.S. § 16-901(18); see also A.R.S. § 16-211. 176 A.R.S. §§ 16-912(A); 16-914(A)-(B); 16-915(A); 16-917(A). 177 H.B. 2486 (2017) amended A.R.S. § 16-901(18) to define a local election cycle as “the two-year period beginning on the first day of the calendar quarter after the calendar quarter in which the city’s or town’s second, runoff or general election is scheduled and ending on the last day of the calendar quarter in which the city’s or town’s immediately following second, runoff or general election is scheduled, however that election is designed by the city or town.” In other words, the election cycle is based on the date which a second, runoff or general election normally would be scheduled to occur on the calendar, even if that second, runoff or general election is not actually held. 175 Department of State, Office of the Secretary of State Election Services Division 30 Arizona Campaign Finance: Candidate Committees A special election means the period between the date of issuance of a proclamation or order calling the special election and the last day of the calendar quarter in which the special election is held. 178 Example 3 On June 15th, a special/first · A local city council member resigns from office in May 2016. election is called for November 2016. · No candidate received a majority of votes during the November 2016 first election, therefore a second/runoff election must be held in March 2017 (the next available election date). · The election cycle runs from June 15, 2016 to March 31, 2017. 179 A donor’s contribution limit resets every two years, even if a candidate’s term of office exceeds the two-year period. 180 For example, an incumbent mayor serving a four-year term may accept the maximum contribution from a particular donor in each of the two-year periods of the mayor’s term. 6. Remedying excessive and unlawful contributions A candidate committee is prohibited from knowingly receiving a contribution in excess of contribution limits. 181 It is important to note that candidates are not held to a standard of perfection. A candidate committee is given 60 days to make things right. 182 A candidate committee has two options during that period. First, the committee may refund the amount of the excess contribution to the original donor. 183 Alternatively, and in the case of individual contributions only, the committee may reattribute the amount of the excess contribution to the other individual who was identified as a joint account holder in the original contribution. 184 For example: · Spouse makes a $6,000 contribution to a statewide candidate using a check that shows both spouses as joint account holders. Only one spouse signed the check. The contributing spouse had not made any previous contributions during the election cycle. The contribution limit is $5,100. · Candidate committee contacts the contributing spouse to inform the spouse that the contribution exceeded applicable limits and inquires how to proceed. The spouse verbally authorizes the committee to reattribute the excess contribution to the other spouse. 178 H.B. 2486 (2017) amended A.R.S. § 16-901(18) to define a special election as “the period between the date of issuance of a proclamation or order calling the special election and the last day of the calendar quarter in which the special election is held.” 179 The only exception for an alternative election cycle is when a recall election has been called. A.R.S. § 16-901(18). 180 Contribution limits reset the day after the applicable general election. 181 A.R.S. § 16-913(C). An “excess contribution” is defined as a contribution that exceeds the applicable contribution limits for a particular election. A.R.S. § 16-901(23). 182 A.R.S. § 16-913(C). The 60-day clock begins to run from the date of receipt of the contribution. The standard on when a contribution is “received” should be the same standard used for campaign finance reporting purposes, as discussed in Section C(2) above. 183 A.R.S. § 16-913(C). 184 A.R.S. § 16-913(C)(2). Department of State, Office of the Secretary of State Election Services Division 31 Arizona Campaign Finance: Candidate Committees · The committee documents the conversation in its records, and files a campaign finance report that shows a $5,100 contribution from the first spouse and $900 contribution from the second spouse. A candidate committee is not provided a grace period for prohibited contributions, however. A candidate committee is not permitted to accept (and is strictly prohibited from depositing) a contribution from a corporation, LLC, union, or any other business, group, organization or association (with the exception of a partnership) that is not registered as a PAC. 185 If a prohibited contribution nonetheless has been accepted by a candidate committee, the committee should refund the contribution immediately and, if possible, document the circumstances how the breakdown occurred and what actions were taken to remedy the mistake. E. Special Funding Mechanisms for Candidates Several unique funding mechanisms exist under Arizona law. This section explains various ways that candidates may support their campaign other than through traditional contributions. 1. Transfers from prior campaigns Running for the same office. A candidate committee is permitted to use surplus funds raised during a prior election cycle for the same office. The candidate is not required to terminate and reorganize the committee, or amend the committee’s statement of organization, in order to reuse the campaign committee in a subsequent race for the same office. 186 Arizona law prohibits a candidate from having multiple committees open for the same office, however. 187 Running for a different office. A candidate may transfer funds to a new committee for a different office, or amend the original committee’s statement of organization to reflect a run for a different office, depending on the election jurisdiction. 188 Transfers are generally unlimited if both the transferring committee and receiving committee are registered with the same filing officer. For example, a candidate may laterally transfer funds from a legislative committee to a statewide committee since both committees file with the Secretary of State’s Office. Candidate transfers are also freely permitted down the jurisdictional ladder. For example, a legislative committee may transfer funds to a county committee, while a county committee may freely transfer funds to a city or town committee. 189 Transfers up the ladder are more difficult. 190 In 185 A.R.S. § 16-913(D). The only exception is if the filing officer requires an amendment for the purpose of properly operating the filing officer’s electronic campaign finance filing system. 187 A.R.S. § 16-906(F). 188 A.R.S. § 16-913(B). 189 A.R.S. § 16-913(B). 190 Upward transfers are more restricted due to the difference in contribution limits. Contribution limits are higher at the local level because the Clean Elections Act reduces the contribution limits for statewide and legislative candidates by 20%. 186 Department of State, Office of the Secretary of State Election Services Division 32 Arizona Campaign Finance: Candidate Committees a nutshell, candidates are only permitted to upwardly transfer funds one jurisdiction at a time. For example, a city or town committee may transfer funds to a county committee, while a county committee may transfer funds to a legislative or statewide committee. 191 But if a city or town committee seeks to transfer funds to legislative or statewide committee for the same candidate, the candidate must transfer the funds to a county committee first and then wait at least 24 months before transferring funds to a legislative or statewide committee. 192 Violation of this “cooling off” period may trigger a campaign finance complaint before either filing officer. Aggregating contributions from different sources. Just because a transfer is lawful between a candidate’s committees does not mean that an unlimited amount may be transferred. Otherwise, a candidate could circumvent contribution limits by allowing donors to max out to both committees. Thus, a candidate who transfers funds between committees during an election cycle must aggregate contributions made by the same donor to both committees during that election cycle. 193 If a particular donor’s aggregated contributions would exceed the applicable contribution limit for the election cycle, the transferring committee must refrain from transferring the excess amount to the receiving committee. 194 Example 1 · After the first regular legislative session concludes in 2017, a candidate decides to forego reelection to the Legislature and run for statewide office instead in 2018. The candidate opens a statewide committee and seeks to transfer funds from the legislative committee. · A donor made a $5,000 contribution to the candidate in September 2016 (the maximum contribution during the 2015-2016 cycle) and a $5,100 contribution to the newly formed statewide committee in December 2017 (the maximum contribution during the 2017-2018 cycle). · The candidate may freely transfer funds to the statewide committee because the donor’s aggregate contributions in any particular election cycle did not exceed contribution limits. Example 2 · Same scenario as above, except the donor made a $3,000 contribution to the legislative committee in March 2017. The donor later makes a $4,000 contribution to the candidate’s statewide committee in December 2017. · The donor’s aggregate contributions during the election cycle amount to $7,000, which exceeds the $5,100 contribution limit. · The legislative committee may transfer no more than $1,100 to the statewide committee, leaving $1,900 of the March 2017 contribution in the legislative committee. The committees’ transfers must be disclosed in the next campaign finance reports. 191 192 193 194 A.R.S. A.R.S. A.R.S. A.R.S. § § § § 16-913(B)(1)-(2). 16-913(B)(2). 16-913(B)(3). 16-913(B)(3). Department of State, Office of the Secretary of State Election Services Division 33 Arizona Campaign Finance: Candidate Committees 2. Use of personal monies A privately funded candidate may contribute unlimited “personal monies” to his or her own campaign. 195 Personal monies donated to one’s own campaign constitute “contributions,” but they are not subject to contribution limits. 196 However, publicly funded statewide and legislative candidates are strictly limited in how much personal money may be spent by a candidate committee. 197 Personal monies from privately funded candidates include a broad range of financial interests. Assets. Assets are money or property in which a candidate or candidate’s spouse hold legal title or an equitable interest. 198 Legal title means that the candidate or candidate’s spouse has full ownership, such as in cash or gold. An equitable interest means that the candidate or candidate’s spouse has the right to acquire formal legal title, such as a home that has been mortgaged. Salary. Salary means the earned income from a candidate or candidate’s spouse’s employment. 199 This includes income received as a draw from a business wholly owned by the candidate or candidate’s spouse. Investments. The proceeds from stock, dividends, or the sale of investments held by a candidate or candidate’s spouse constitute personal monies. 200 Bequests. Bequests include money received by a candidate or candidate’s spouse by will or through intestate succession (i.e. the candidate receives money through probate). 201 Trust income. Qualified trust income is income derived from a revocable trust for which the candidate or candidate’s spouse is a beneficiary. 202 Income from an irrevocable trust does not qualify as personal monies. Personal gifts. Certain gifts of a personal nature, which would have been given to a candidate or candidate’s spouse regardless of whether the candidate ran for or was elected to office, constitute personal monies. 203 For example, a birthday gift of money by a longtime family friend likely 195 A.R.S. §§ 16-901(40); 16-913(F). A.R.S. § 16-913(F). 197 See A.R.S. § 16-941(A)(2) (“[A] participating candidate . . . [s]hall not make expenditures of more than a total of five hundred dollars of the candidate's personal monies for a candidate for the legislature or more than one thousand dollars for a candidate for statewide office[.]”); see also A.R.S. § 16-945(B) (“[A] candidate’s personal monies . . . may be spent only during the exploratory period and the qualifying period. Any early contributions not spent by the end of the qualifying period shall be paid to the [Clean Elections] fund.”); A.R.S. § 16-945(C) (“If a participating candidate has a debt from an election campaign in this state during a previous election cycle in which the candidate was not a participating candidate, then, during the exploratory period only, the candidate may accept, in addition to early contributions . . . . , [private] contributions . . . . or may exceed the limit on personal monies . . . , provided that such contributions and monies are used solely to retire such debt.”); A.R.S. § 16-961(A) (clarifying that the term “personal monies” is defined in A.R.S. § 16-901). 198 A.R.S. § 16-901(40)(a). 199 A.R.S. § 16-901(40)(b). 200 A.R.S. § 16-901(40)(c). 201 A.R.S. § 16-901(40)(d). 202 A.R.S. § 16-901(40)(e). 203 A.R.S. § 16-901(40)(f). 196 Department of State, Office of the Secretary of State Election Services Division 34 Arizona Campaign Finance: Candidate Committees qualifies as permissible personal gift for campaign finance purposes. On the other hand, an unexpected, large gift from a casual acquaintance may raise red flags and should be considered carefully. Loans. The proceeds of a loan obtained by the candidate or candidate’s spouse, which is secured by collateral or security provided by the candidate or candidate’s spouse, constitute personal monies. 204 Thus, a candidate who seeks to fund his or her campaign through a loan must take out the loan in his or her name (or spouse’s name), and then loan the campaign committee the desired amount of money. The candidate or candidate’s spouse may require repayment or forgive the loan entirely. If the candidate makes a loan to his or her campaign, this is still classified as a contribution of personal monies for campaign finance reporting purposes. The candidate must include a memo entry of “Personal Loan” (or similar notation) to properly identify this loan for reporting purposes. Family contributions. Family contributions are contributions to the candidate’s committee from close family members, which include the candidate’s or candidate’s spouse’s parents, grandparents, aunts, uncles, children or siblings. 205 Family relationships established by marriage or adoption equally qualify for purposes of the personal monies exemption. Contributions of personal monies must be disclosed in campaign finance reports. 206 3. Joint fundraising events A group of candidates may find it strategically advantageous to jointly conduct fundraising. This is permitted under Arizona law. Joint fundraising efforts are permissible among privately funded candidates as long as the candidates make a written agreement prior to the fundraising effort that outlines how the proceeds of the fundraising effort will be distributed or reimbursed. 207 For example, two House candidates and one Senate candidate from the same district could agree to split proceeds equally among them. The agreement need not be formal; an email will suffice. Once the fundraising effort has concluded, the collaborating candidates must make distributions or reimbursements in accordance with the written agreement. 208 A separate joint fundraising committee need not be organized. Thus, checks can be made out to any of the participating candidates (even in amounts that exceed contribution limits for an individual candidate) as long as the recipient candidate deposits and promptly distributes the fundraising proceeds in accordance with the written fundraising agreement. Distributions and 204 A.R.S. § 16-901(40)(g). A.R.S. § 16-901(40)(h); see also A.R.S. § 16-901(26). 206 A.R.S. § 16-926(B)(2)(viii). 207 A.R.S. §§ 16-911(B)(6)(b); 16-921(B)(4)(b). The agreement must be reached before the first fundraising solicitation has been issued, even if the event has not yet occurred. Moreover, after the fundraising effort has concluded, the participating candidates must make distributions or reimbursements that conform to the written agreement. 208 A.R.S. §§ 16-911(B)(6)(b); 16-921(B)(4)(b) 205 Department of State, Office of the Secretary of State Election Services Division 35 Arizona Campaign Finance: Candidate Committees reimbursements made according to the joint fundraising agreement must be reported by the participating candidates. 209 If the candidates have not reached a prior agreement, any distributions or reimbursements of the joint fundraising proceeds could constitute prohibited candidate-to-candidate transfers. 210 Publicly funded candidates should direct questions regarding joint fundraising efforts to the Clean Elections Commission. 211 F. Reducing Campaign Expenses An effective campaign strategy not only involves fundraising, but recognizing that certain expenses need not be borne by the campaign. 1. Volunteer activity Volunteers make up the backbone of a strong campaign. Thus, it is significant that the value of an individual volunteer’s services, including any expenses the individual incurs in the course of volunteering, are not considered contributions to the campaign. 212 As non-contributions, volunteer services need not be reported or capped in any fashion. Travel expenses. Travel expenses incurred by the volunteer, such as placing campaign signs, traveling to campaign events, or canvassing door-to-door, are not considered contributions. 213 Real or personal property. Use of a volunteer’s real or personal property, such as using a volunteer’s vehicle in a parade or hosting a fundraiser at a volunteer’s home, is not a contribution. 214 Event expenses. The cost of invitations, food, or beverages purchased or provided by a volunteer for a campaign-related event is not considered a contribution. 215 Internet activity. A volunteer’s email activity, blogging, social media activity, or other Internet-based efforts on behalf of a campaign do not constitute contributions, as long as the activity is free and does not constitute a paid advertisement or paid fundraising solicitation by the volunteer. 216 The Secretary of State’s Office interprets this contribution exemption broadly. 217 For 209 A.R.S. § 16-926(B)(4). A.R.S. §§ 16-911(B)(6)(b); 16-921(B)(4)(b); see also A.R.S. § 16-913(A). 211 See “Elections from A to Z, for AZ”, a 2016 Citizens Clean Elections Guide, at pg. 20, available at http://www.azcleanelections.gov/CmsItem/File/19. 212 A.R.S. §§ 16-911(B)(1); 16-921(B)(1). 213 A.R.S. §§ 16-911(B)(1)(a); 16-921(B)(1)(a). 214 A.R.S. §§ 16-911(B)(1)(b); 16-921(B)(1)(b). 215 A.R.S. §§ 16-911(B)(1)(c); 16-921(B)(1)(c). 216 A.R.S. §§ 16-911(B)(1)(d); 16-921(B)(1)(d). “Social media messages” are defined as “forms of communication, including internet sites for social networking or blogging, through which users create a personal profile and participate in online communities to share information, ideas and personal messages.” A.R.S. § 16-901(46). 217 The statutes refer to “internet activities [that] do not contain or include transmittal of a paid advertisement or paid fund-raising solicitation.” See A.R.S. §§ 16-911(B)(1)(d); 16-921(B)(1)(d). In light of the First Amendment implications of restricting individuals from 210 Department of State, Office of the Secretary of State Election Services Division 36 Arizona Campaign Finance: Candidate Committees example, an individual may freely share links to campaign videos found on YouTube, retweet a campaign advertisement, forward a fundraising invitation by email, post a campaign-related item on his or her Facebook timeline, or conduct any other similar Internet activity. 2. Political party support If a candidate becomes a political party nominee and is running in a partisan general election (i.e. the candidate’s political party affiliation appears next to his or her name on the ballot), the party is permitted to directly pay for certain expenses that will benefit the candidate committee. 218 While these expenditures must be reported by the candidate committee, they do not constitute in-kind contributions. On one hand, the party may print, distribute and pay for items that promote its nominees, such as voter guides, sample ballots, pins, bumper stickers, pamphlets, brochures, posters, yard signs, and other similar items. 219 On the other hand, the party may coordinate with its nominee to directly pay for goods and services on the nominee’s behalf. 220 This exemption for “coordinated party expenditures” extends both to efforts initiated by the party (such as designing and running a political party ad that was coordinated with the nominee) or initiated by the nominee (such as paying a candidate campaign bill at the nominee’s request). However, a political party is only permitted to make coordinated expenditures to third parties on a nominee’s behalf. 221 For example, a political party is permitted to directly pay the nominee’s political consultant or mail house for the expenses of a mailer, but may not reimburse the nominee for those same services. After all, any direct transfer of money to a nominee constitutes a contribution and is therefore subject to contribution limits. 222 3. Legal and accounting expenses The provision of legal and accounting expenses to a candidate committee does not constitute a contribution. 223 This exemption applies to legal expenses intended to proactively ensure legal compliance (such as consulting an attorney on whether an advertising disclosure complies with Arizona law), expenses to commence litigation (such as financing a lawsuit to challenge an opponent’s petitions), or expenses to defend litigation (such as defending against a campaign finance complaint). Candidates are still permitted to pay for legal and accounting services using campaign However, the legal and accounting exemption allows professional firms to donate those funds. 224 discussing, posting, or forwarding material that happens to contain an item paid for by a campaign, the Secretary of State’s Office narrowly interprets the quoted provision to only regulate advertisements or solicitations paid for by the volunteer, not the candidate committee. 218 A.R.S. § 16-911(B)(4). As a result, this type of political party support is only available during the 10-week period between the primary election and general election. 219 A.R.S. § 16-911(B)(4)(a). 220 A.R.S. §§ 16-901(14); 16-911(B)(4)(b). 221 “‘Coordinated party expenditures’ means expenditures that are made by a political party to directly pay for goods or services on behalf of its nominee.” A.R.S. § 16-901(14). 222 A.R.S. § 16-915(A). 223 A.R.S. §§ 16-911(B)(6)(c); 16-921(B)(4)(c). 224 Candidates may not use campaign funds for personal use. Therefore, the payment of legal expenses unrelated to one’s candidacy constitutes a prohibited use of campaign funds. Department of State, Office of the Secretary of State Election Services Division 37 Arizona Campaign Finance: Candidate Committees services to benefit a candidate committee, without running afoul of any contribution limits or source restrictions. 4. Candidate appearances at business and labor facilities A candidate is permitted to make campaign-related appearances at outside organizations’ facilities without the “value” of that appearance being deemed an in-kind contribution. 225 This exemption applies as long as the venue is furnished by the venue’s owner, is not paid for by a thirdparty, and is not a sports stadium, coliseum, convention center, hotel ballroom, concert hall or other similar arena that is generally open to the public. 226 For example, a candidate is permitted to appear at the headquarters of ABC Corporation to address the company’s employees and invited guests. However, ABC Corporation may not host a candidate fundraiser at the corporation’s suite during a professional sports game. 227 5. Elected official tours and conferences For elected officials acting in the course of their official duties, it is not necessary to use campaign funds to meet with constituents or attend an informational tour, conference, seminar or presentation. 228 A third party may provide this support without creating an in-kind contribution. For example, a timber company or conservationist organization may provide a helicopter ride to an elected official to tour wildfire devastation from the air. A private school may provide its facilities for the purpose of allowing an elected official to conduct a town hall on education policy. 229 For this exemption to apply, neither the candidate nor the host may engage in any electioneering or campaign-related activity. 230 Additionally, if the benefit triggers a reporting responsibility under the financial disclosure or lobbying statutes, that benefit must be properly reported under those statutes; otherwise an in-kind contribution may result. 231 For example, if a legislator received the benefit of at least $1,000 in travel expenses from a corporation, the elected official must report the travel expenses in his or her next financial disclosure statement in order to avoid the travel expenses from being potentially deemed an illegal in-kind contribution. 232 6. Officeholder expense accounts 225 A.R.S. § 16-911(B)(11). A.R.S. § 16-911(B)(11). 227 A fundraiser could be held at a stadium, coliseum, convention center, hotel ballroom, concert hall or other similar arena if the committee pays for the facility rental at fair market value. 228 A.R.S. § 16-911(B)(3). The exemption likewise applies to public officials who were appointed to a position normally filed by an elected official. 229 An event held at a public school may be subject to more stringent conditions. See A.R.S. § 15-511 (prohibiting the use of public school resources to influence the outcome of an election). 230 A.R.S. § 16-911(B)(3). 231 A.R.S. § 16-911(B)(3). 232 A.R.S. § 16-911(B)(3). The exemption references Title 38, Chapter 3.1 (“Standards of Financial Disclosure”), which at the time of passage in 2016 included A.R.S. § 38-542. Section 38-542 was renumbered as A.R.S. § 18-444 during the same legislative session. Nevertheless, the Secretary of State’s Office interprets the contribution exemption in A.R.S. § 16-911(B)(3) to include a requirement to comply with the financial disclosure standards now codified in A.R.S. § 18-444. 226 Department of State, Office of the Secretary of State Election Services Division 38 Arizona Campaign Finance: Candidate Committees Statewide and legislative elected officials may establish officeholder accounts (also known as constituent services accounts) for the purpose of defraying the expenses of performing official duties. 233 An officeholder account must register with the Secretary of State’s Office the same way as a campaign committee, but the monies must be kept separate from campaign funds. 234 Use of officeholder monies. Once established, the account may be used to fund office equipment and supplies, official travel, communicating with constituents, or incurring expenses for informational and education purposes, including: 235 · Newspaper, magazine, or other informational subscriptions · Participation in community, professional or fraternal organizations · Participation in conferences and seminars No campaign or electioneering activity may take place in the course of using officeholder account monies. 236 The officeholder exemptions substantially mirror the types of permitted activities outlined in Section F(5) above. The difference is that an elected official may pay official expenses using monies in the officeholder account, whereas the exemption mentioned in Section F(5) permits a third-party to pay the expenses. Source restrictions Individual contributions. Only individuals are permitted to contribute to an elected official’s officeholder account. 237 Contributions to an officeholder account do not affect an individual’s contribution limit to the officeholder’s campaign account. 238 PAC, political party, or partnership contributions are not permitted. Lobbyist prohibition. Individuals who are registered lobbyists or principals are prohibited from making contributions to a gubernatorial or legislative officeholder account while the Legislature is in regular session. 239 Contribution limits $150 individual contribution limit. The contribution limit is $150 per election cycle and is not subject to biennial increases. 240 233 A.R.S. § 41-133(A), (K). Persons appointed to an elected office are likewise eligible to establish an officeholder account. A.R.S. § 41133(A). 234 A.R.S. § 41-133(C). 235 A.R.S. § 41-133(D). 236 A.R.S. § 41-133(D). 237 A.R.S. § 41-133(A)(1). 238 A.R.S. § 41-133(B). If an elected official fails to properly accept or report monies contributed to his or her officeholder account, the improperly received/reported monies are deemed contributions to the official’s campaign committee. See id. 239 A.R.S. § 41-133(G). As applied to the Governor, this prohibition extends past sine die and through the time period when all regular session legislation has been signed or vetoed. A.R.S. § 41-1234.01(A)(2). 240 A.R.S. § 41-133(A)(1). Department of State, Office of the Secretary of State Election Services Division 39 Arizona Campaign Finance: Candidate Committees Limitation on personal money contributions. An elected official may contribute limited personal monies to his or her own officeholder account during an election cycle: 241 Aggregate Contribution Limit of Personal Monies Governor Secretary of State Attorney General $31,635 $16,638 $16,638 Officeholder Superintendent Treasurer of Public Instruction $8,343 $8,343 Mine Inspector Corporation Commissioner Legislator $8,343 $8,343 $3,198 Personal money caps are increased on a biennial basis. 242 Aggregate contribution limit. Unlike campaign contributions, an officeholder account is subject to an aggregate cap on all contributions received during an election cycle: 243 2017-2018 Aggregate Contribution Limits Governor Secretary of State Attorney General $105,450 $55,460 $55,460 Officeholder Superintendent Treasurer of Public Instruction $27,810 $27,810 Mine Inspector Corporation Commissioner Legislator $27,810 $27,810 $10,660 Aggregate contribution limits are inclusive of personal monies. 244 For example, a legislator who contributes the maximum $3,198 in personal monies to his or her officeholder account may only accept $7,462 in aggregate contributions from other individuals. In addition, if an elected official is winding down his or her campaign committee, the official may transfer excess campaign funds into his or her officeholder account. 245 These funds may be transferred in any amount, as long as the officeholder account does not exceed its aggregate cap. Like the personal money caps, the aggregate contribution limits are increased on a biennial basis. 246 In short, it is necessary for an officeholder to not only monitor individual contributions, but the officeholder’s personal contributions and the overall amount of contributions received in the account. 241 A.R.S. § 41-133(A)(3). “Personal monies” are defined in A.R.S. § 16-901(40) and discussed in Section E(2) above. A.R.S. §§ 16-931(A)(2); 41-133(A)(2). 243 A.R.S. § 41-133(A)(2). Aggregate limits from the 2015-2016 election cycle have been increased by $100 pursuant to A.R.S. §§ 16-931(A)(2) and 41-133(A)(2) for the 2017-2018 cycle. 244 A.R.S. § 41-133(A)(2). 245 A.R.S. § 16-933(A)(5). 246 A.R.S. §§ 16-931(A)(2); 41-133(A)(2). 242 Department of State, Office of the Secretary of State Election Services Division 40 Arizona Campaign Finance: Candidate Committees Spending limits Aggregate spending limit. An elected official may not spend more than the aggregate contribution limit during the election cycle: 247 20172018 Aggregate Spending Limits Governor Secretary of State Attorney General $105,450 $55,460 $55,460 Officeholder Superintendent Treasurer of Public Instruction $27,810 $27,810 Mine Inspector Corporation Commissioner Legislator $27,810 $27,810 $10,660 Permissible spending timeframe. An elected official only may spend officeholder account monies during what is deemed the non-election period for that candidate: from the day after the previous general election until April 30th of the year when the officeholder seeks election. 248 During the 2017-2018 election cycle, elected officials may spend officeholder account monies between November 9, 2016 and April 30, 2018. Statewide officials elected in 2018 may spend officeholder account monies between November 7, 2018 and April 30, 2022. Disposal of officeholder monies. After April 30th of an election year, an elected official may dispose of officeholder account monies in the following ways: 249 · Roll the money over to the elected official’s officeholder account for the next election cycle (as long as the elected official will hold office during the next election cycle); · Contribute the money to a PAC or political party (as long as the elected official will not hold office during the next election cycle); · Donate the money to a social welfare organization recognized under § 501(c)(4) of the Internal Revenue Code (as long as the elected official will not hold office during the next election cycle); 250 or · Donate the money to the general fund of the State of Arizona. Reporting responsibilities. An elected official must file officeholder account reports in the same manner and under the same schedule as campaign finance reports. 251 Please review Section I(1) of this Guide for the campaign finance reporting schedule. 247 A.R.S. § 41-133(A)(2). Aggregate limits from the 2015-2016 election cycle have been increased by $100 pursuant to A.R.S. §§ 16-931(A)(2) and 41-133(A)(2) for the 2017-2018 cycle. 248 A.R.S. § 41-133(E). 249 A.R.S. § 41-133(E). The elected official may not contribute officeholder account monies to another elected official or candidate. A.R.S. § 41-133(F). 250 This exemption is only available for § 501(c)(4) social welfare organizations. Surplus officeholder monies may not be contributed to a § 501(c)(3) charity or § 501(c)(6) trade association. 251 A.R.S. § 41-133(C). An elected official may use the same methods used for campaign contributions to determine when a contribution is “received” or expenditure is “made.” See Section C(2) above. Department of State, Office of the Secretary of State Election Services Division 41 Arizona Campaign Finance: Candidate Committees Enforcement penalties. Violations with respect to officeholder accounts are enforced in the same manner as campaign finance violations. 252 G. Making Contributions A candidate committee may make contributions as follows: Recipient Contributor Statewide Candidate (privately financed) Legislative Candidate (privately financed) Local Candidate (privately financed) PAC Political Party Individual $5,100 $5,100 $6,350 Unlimited Unlimited Partnership $5,100 $5,100 $6,350 Unlimited Unlimited Candidate Committee Generally prohibited (except surplus funds) 253 Generally prohibited (except surplus funds) 254 Generally prohibited (except surplus funds) 255 Unlimited 256 Unlimited 257 $5,100 $5,100 $6,350 Unlimited Unlimited $10,200 $10,200 $12,700 Unlimited Unlimited $80,100 (to a party nominee only) $8,100 (to a party nominee only) $10,100 (to a party nominee only) Unlimited Unlimited Corporation Prohibited Prohibited Prohibited Unlimited Unlimited Lim. Liability Co. Prohibited Prohibited Prohibited Unlimited Unlimited Trust, Joint Venture, Co-op, or Other Unincorp. Org. or Ass’n Prohibited Prohibited Prohibited Unlimited Unlimited Union Prohibited Prohibited Prohibited Unlimited Unlimited PAC without Mega PAC status (using noncorp./non-union funds) PAC with Mega PAC status (using non-corp./nonunion funds) Political Party (using noncorp./non-union funds) As indicated above, contributions to other candidates are presumptively prohibited. 258 A candidate committee may contribute to another candidate committee only under the following conditions: 259 252 A.R.S. § 41-133(I). The treble damages penalty that remains in A.R.S. § 41-133(H) contradicts the penalties more recently prescribed in A.R.S. §§ 16-938 and 41-133(I). As such, the Secretary of State’s Office presumes the more recently enacted provisions in A.R.S. § 16938(E)(2) take precedence in enforcement. 253 A.R.S. § 16-913(A); see also A.R.S. § 16-933(A)(3). 254 A.R.S. § 16-913(A); see also A.R.S. § 16-933(A)(3). 255 A.R.S. § 16-913(A); see also A.R.S. § 16-933(A)(3). 256 A.R.S. § 16-913(E). 257 A.R.S. § 16-913(E). 258 A.R.S. § 16-913(A); see also A.R.S. § 16-933(A)(3). Department of State, Office of the Secretary of State Election Services Division 42 Arizona Campaign Finance: Candidate Committees · The contribution must be made after the candidate filing deadline, which is 90 days before the primary election (or first election in a city or town); 260 · The contributing candidate must be in the last year of his or her term and not seeking reelection (or have already left office);261 · If the recipient is a legislative candidate, the contributing candidate may not make the contribution while the Legislature is in regular session; 262 and · The contribution must be made in accordance with the contribution limit applicable to individuals. 263 In other words, a candidate may contribute $5,100 to a statewide or legislative candidate per election cycle, or $6,350 to a local candidate, only in connection with the disposal of surplus monies. Otherwise, candidate-to-candidate contributions are prohibited under Arizona law. 264 H. Campaign Advertising Any campaign advertisement 265 or fundraising solicitation must include a disclaimer that indicates it was paid for and authorized by the candidate’s committee. 266 For example, a proper disclaimer would read: Paid for by Smith for House Authorized by Smith for House If a disclaimer contains any acronym or nickname that is not commonly known, the disclosure must spell out the acronym or provide the full name. 267 1. Form of disclaimer The disclaimer on a fundraising solicitation should be clearly readable. With respect to advertisements, how the disclaimer must be presented depends upon the medium in which the advertisement appears. For example, if the advertisement is: · Broadcast on radio, the disclaimer must be clearly spoken at the beginning or end of the advertisement; 268 259 A.R.S. § 16-933(A)(3)(a). See A.R.S. § 16-311(A). The contribution need not be made before the contributing candidate finishes his or her term of office. 261 A.R.S. § 16-933(A)(3)(b). The contributing candidate must not have filed a nomination paper with any filing officer at the 90-day deadline to seek reelection. A.R.S. §§ 16-311(A) and 16-933(A)(3)(b). 262 A.R.S. § 16-933(A)(3)(c). This restriction only becomes significant if the Legislature fails to adjourn sine die before the candidate filing deadline. 263 A.R.S. § 16-933(A)(3)(d); see also A.R.S. § 16-912(A). 264 A.R.S. § 16-913(A). 265 An “advertisement” means information or materials, other than nonpaid social media messages, that are mailed, emailed, posted, distributed, published, displayed, delivered, broadcasted or placed in a communication medium and that are for the purpose of influencing an election. A.R.S. § 16-901(1). 266 A.R.S. § 16-925(A). 267 A.R.S. § 16-925(C). 268 A.R.S. § 16-925(D)(1). 260 Department of State, Office of the Secretary of State Election Services Division 43 Arizona Campaign Finance: Candidate Committees · Delivered by hand, by mail, or electronically, the disclosure must be clearly readable; 269 · Displayed on a sign or billboard, the disclosure must be displayed in a height that is at least four percent of the vertical height of the sign or billboard; 270 · Broadcast on television or in a video, both of the following requirements must be met: · · The disclosure must be both written and spoken at the beginning or end of the advertisement, except that if the written disclosure statement is displayed for the greater of at least one-sixth of the broadcast duration or four seconds, a spoken disclosure statement is not required; and The written disclosure statement must be printed in letters that are displayed in a height that is at least four percent of the vertical picture height. 271 2. When a disclaimer is not required What’s new? Under prior law, any campaign finance deadline that fell on a weekend or holiday could be filed on the next business day. Under S.B. 1516 (2016), reporting deadlines remain fixed (notwithstanding a weekend or holiday) because electronic filing is now provided as an option. A committee is not required to include a disclaimer in the following situations: 269 270 271 272 273 274 275 276 · Advertisements or fundraising solicitations made via social media messages or text messages; 272 · Advertisements that are placed as a paid link on a website, as long as the message is not more than two hundred characters in length and the hyperlink directs the user to another website that contains the requisite disclaimer;273 · Advertisements that are placed as a graphic or picture link where the disclaimer cannot be conveniently printed due to the size of the graphic or picture, as long as the hyperlink directs the user to another website that contains the requisite disclaimer;274 · Bumper stickers, pins, buttons, pens and similar small items on which a disclaimer cannot be conveniently printed; 275 or · A published book or a documentary film or video. 276 A.R.S. A.R.S. A.R.S. A.R.S. A.R.S. A.R.S. A.R.S. A.R.S. § § § § § § § § 16-925(D)(2). 16-925(D)(3). 16-925(D)(4). 16-925(E)(1). 16-925(E)(2). 16-925(E)(3). 16-925(E)(4). 16-925(E)(7). Department of State, Office of the Secretary of State Election Services Division 44 Arizona Campaign Finance: Candidate Committees I. Filing Campaign Finance Reports 1. Campaign finance reporting periods Campaign finance reports are generally filed quarterly in Arizona, and in many cases, just before an election as well. 277 Since all jurisdictions are required to provide the option for electronic filing, campaign finance reports are due on the specified deadline, even if the deadline falls on a weekend or holiday. 278 A candidate committee’s reporting responsibilities are unique: it is only required to file campaign finance reports during the calendar quarters comprising the 12-month period preceding the general election at which the candidate seeks election. 279 For city and town candidates, reports must be filed covering the 12-months prior to the city’s or town’s second, runoff or general election. 280 For example, a statewide, legislative or local candidate seeking election in November 2018 will be required to file the following campaign finance reports:281 Reporting Period 2017 Cumulative Report: Jan. 1, 2017 to Dec. 31, 2017 st 2018 1 Quarter Report: Jan. 1, 2018 to Mar. 31, 2018 2018 2 nd Quarter Report: Apr. 1, 2018 to June 30, 2018 2018 Aug. Pre-Election Report: July 1, 2018 to Aug. 11, 2018 2018 3 rd Quarter Report: Aug. 12, 2018 to Sep. 30, 2018 2018 Oct. Pre-Election Report: Oct. 1, 2018 to Oct. 20, 2018 th 2018 4 Quarter Report: Oct. 21, 2018 to Dec. 31, 2018 Report Due Jan. 1, 2018 to Jan. 15, 2018 Apr. 1, 2018 to Apr. 15, 2018 July 1, 2018 to July 15, 2018 Aug. 12, 2018 to Aug. 18, 2018 Oct. 1, 2018 to Oct. 15, 2018 Oct. 21, 2018 to Oct. 27, 2018 Jan. 1, 2019 to Jan. 15, 2019 The first report is considered a yearly report because the candidate’s first campaign finance report of an election cycle must be cumulative of all financial activity that occurred cycle-to-date. 282 A committee is required to file campaign finance reports until properly terminated. 283 277 A.R.S. § 16-927(B). A.R.S. §§ 16-927(A)(1)-(2); 16-928(C). 279 A.R.S. § 16-927(B). 280 A.R.S. § 16-927(B). 281 In this example, the relevant 12-month period is November 6, 2017 to November 6, 2018. This period corresponds to the 4th quarter in 2017 through 4th quarter of 2018. 282 A.R.S. § 16-927(B). 283 A.R.S. § 16-927(C). 278 Department of State, Office of the Secretary of State Election Services Division 45 Arizona Campaign Finance: Candidate Committees 2. Filing officer for campaign finance reports A candidate committee must file campaign finance reports with the filing officer with whom it filed a statement of organization. 284 Filing officers are organized as follows throughout the state: · The Secretary of State is the filing officer for statewide candidates, legislative candidates, Supreme Court justices, and Court of Appeals judges. 285 · The County Recorder, County Election Director, or County Clerk of the Board of Supervisors is the filing officer for county candidates, justice of the peace candidates, community college district candidates, special taxing district candidates, and Superior Court judges. 286 · The County School Superintendent is the filing officer for county school district elections. 287 · The city or town clerk is the filing officer for city and town elections. 288 3. Content of campaign finance reports Arizona law spells out specific categories of information that must be included in campaign finance reports. The Secretary of State’s online campaign filing system walks candidates through this process. For local jurisdictions, campaign finance reporting forms are available from the applicable filing officer or from the League of Arizona Cities and Towns at http://www.leagueaz.org/lgd/. Forms are also enclosed in Appendices C-E of this Guide. Cash on hand. The committee must report the amount of cash on hand at the beginning of each reporting period. 289 Total receipts. The committee must report its total receipts during the reporting period, which includes contributions and any other form of income received by the committee. 290 Most receipts must be itemized, which means the treasurer must record the source of the receipt, the amount received, and the date of receipt, in the following categories: 291 · Contributions from individuals whose contributions exceed $50 for the election cycle, including identification of the contributor’s occupation and employer 292 284 A.R.S. § 16-928(A). A.R.S. § 16-928(A)(1). 286 A.R.S. § 16-928(A)(2). 287 Despite that A.R.S. § 16-928(A)(2) makes the “county officer in charge of elections” the filing officer for school district elections, A.R.S. § 15-422(A) requires that nominating petitions be filed with the county school superintendent. 288 A.R.S. § 16-928(A)(3). 289 A.R.S. § 16-926(B)(1). In the Secretary of State’s campaign finance filing system, the beginning cash on hand should be automatically carried over from the previously-filed campaign finance report. 290 A.R.S. § 16-926(B)(2), (4). 291 A.R.S. § 16-926(B)(2)(a). See Section C(2) for guidance on reporting the date of a receipt. For contributions over $50 during the election cycle, the committee treasurer also must keep records of (but need not publicly report) the date of deposit into the committee’s account. A.R.S. § 16-907(D)(2). 292 A.R.S. § 16-926(B)(2)(a)(i). See Section D(2) for guidance on accepting and reporting contributions from individuals. 285 Department of State, Office of the Secretary of State Election Services Division 46 Arizona Campaign Finance: Candidate Committees · Contributions from candidate committees 293 · Contributions from political action committees 294 · Contributions from political parties 295 · Contributions from partnerships 296 · Contributions from the candidate’s personal monies 297 · All loans, including identification of any endorser or guarantor other than a candidate’s spouse, and the contribution amount endorsed or guaranteed by each 298 · Rebates and refunds 299 · Interest on committee monies 300 · The fair market value of in-kind contributions received 301 · Extensions of credit that remain outstanding, including identification of the creditor and the purpose of the extension 302 The committee must also report totals in each category. 303 Contributions from individuals that do not exceed $50 during the election cycle need not be itemized, but may be aggregated instead. 304 For example: · A candidate committee holds a fundraiser that requires a $20 ticket. · 50 individuals purchase tickets and attend the fundraiser. The individuals make no other contributions during the election cycle. · The candidate committee reports $1,000 in small contributions, without disclosing the name or identifying information about the contributors. Total disbursements. The committee must report its total disbursements during the reporting period, which includes expenditures for political purposes and any other types of payments by the committee. 305 293 A.R.S. § 16-926(B)(2)(a)(ii). See Sections G and J(2) for guidance on whether a candidate committee may accept a contribution from another candidate committee. 294 A.R.S. § 16-926(B)(2)(a)(iii). See Section D(2) for guidance on accepting and reporting contributions from PACs. 295 A.R.S. § 16-926(B)(2)(a)(iv). See Section D(2) for guidance on accepting and reporting contributions from political parties. 296 A.R.S. § 16-926(B)(2)(a)(v). See Section D(2) for guidance on accepting and reporting contributions from partnerships. 297 A.R.S. § 16-926(B)(2)(a)(viii). See Section E(2) for guidance on accepting and reporting contributions of the candidate’s personal monies. 298 A.R.S. § 16-926(B)(2)(a)(ix). See Sections D(1) and E(2) for guidance on accepting and reporting loans. 299 A.R.S. § 16-926(B)(2)(a)(x). The committee should identify the original transaction the rebate or refund was received from. 300 A.R.S. § 16-926(B)(2)(a)(xi). 301 A.R.S. § 16-926(B)(2)(a)(xii). The amount of an in-kind contribution of services is equal to the usual and normal charges for the services on the date performed. A.R.S. § 16-926(D). See Section D(1) for guidance on reporting in-kind contributions. 302 A.R.S. § 16-926(B)(2)(a)(xiii). 303 A.R.S. § 16-926(B)(2)(a). If any receipt is earmarked for another entity, the committee is required to report the identity of the committee or entity the receipt is earmarked for. A.R.S. § 16-926(E). 304 A.R.S. § 16-926(B)(2)(b). 305 A.R.S. § 16-926(B)(3)-(4). Department of State, Office of the Secretary of State Election Services Division 47 Arizona Campaign Finance: Candidate Committees Single disbursements over $250 during the reporting period must be itemized, which means the treasurer must record the name of the recipient, the recipient’s address, a description of the disbursement, and the date and amount of disbursement, in the following categories: 306 · Disbursements for operating expenses 307 · Contributions to candidate committees 308 · Contributions to political action committees 309 · Contributions to political parties 310 · Contributions to partnerships 311 · Repayment of loans 312 · Refunds of contributions 313 · Loans made 314 · The value of in-kind contributions provided 315 · Expenditures to advocate the passage or defeat of a ballot measure, including identification of the ballot measure, ballot measure serial number, election date, mode of advertising and distribution or publication date 316 · Expenditures to advocate for or against the issuance of a recall election order or for the election or defeat of a candidate in a recall election, including identification of the officer to be recalled or candidate supported or opposed, mode of advertising and distribution or publication date 317 · Any other disbursements or expenditures 318 The committee must also report totals in each category. 319 Cumulative totals. A candidate committee must report cumulative totals in each category— not only during the particular reporting period, but for the entire election cycle as well. 320 306 A.R.S. § 16-926(B)(3). A.R.S. § 16-926(B)(3)(a). Operating expenses include staff salaries, rent, utilities, office supplies, and similar items necessary to keep the campaign in operation. 308 A.R.S. § 16-926(B)(3)(b). See Sections G and J(2) for guidance on whether a candidate committee may give a contribution to another candidate committee. 309 A.R.S. § 16-926(B)(3)(c); see also A.R.S. § 16-913(E). 310 A.R.S. § 16-926(B)(3)(d); see also A.R.S. § 16-913(E). 311 A.R.S. § 16-926(B)(3)(e); see also A.R.S. § 16-913(E). 312 A.R.S. § 16-926(B)(3)(h); see also A.R.S. § 16-913(E). If a candidate has loan personal monies to his or her own campaign, repayment of that loan should be reported in this category. 313 A.R.S. § 16-926(B)(3)(i). The committee should identify the original contribution that is being refunded. 314 A.R.S. § 16-926(B)(3)(j). 315 A.R.S. § 16-926(B)(3)(k). The amount of an in-kind contribution of services is equal to the usual and normal charges for the services on the date performed. A.R.S. § 16-926(D). See Sections G and J(2) for guidance on whether a candidate committee may give a contribution (including an in-kind contribution) to another candidate committee. 316 A.R.S. § 16-926(B)(3)(m); see also A.R.S. § 16-921(A). 317 A.R.S. § 16-926(B)(3)(n); see also A.R.S. § 16-921(A). 318 A.R.S. § 16-926(B)(3)(o). 319 A.R.S. § 16-926(B)(3). If any committee disbursement is earmarked for another entity, the committee is required to report the identity of the committee or entity the disbursement was earmarked for. A.R.S. § 16-926(E). 307 Department of State, Office of the Secretary of State Election Services Division 48 Arizona Campaign Finance: Candidate Committees Certification. Each campaign finance report must include a certification by the committee treasurer, issued under penalty of perjury, that the contents of the report are true and correct. 321 Completing campaign finance reports. The Secretary of State publishes a separate guide describing how to use the Secretary of State’s online campaign finance system to file reports. Appendix D to this Guide contains the campaign finance report used by local jurisdictions in Arizona. J. Winding Down and Terminating a Committee The process of winding down a committee entails ceasing all campaign activity, zeroing out the committee’s bank account (in accordance with Arizona law), and filing a termination statement with the filing officer. 1. Repayment of debts A committee must repay its debts to creditors before terminating. If the committee has sufficient cash on hand at the conclusion of a campaign to pay all outstanding creditors, this process is routine. Fundraising to retire debt. Sometimes a committee lacks sufficient funds to pay creditors and must continue to fundraise after the election. However, source restrictions and the contribution limits from the prior election still apply. 322 For example: · A legislative committee is $2,000 in debt and has no surplus funds from the 2015-2016 election cycle. Contribution limits were $5,000. · An individual donor contributed $4,000 to the candidate during the 2015-2016 cycle. · In January 2017 (in the new election cycle where contribution limits have increased to $5,100), donor responds to the candidate’s request for debt retirement assistance by writing a $2,000 check. · The donor may contribute only $1,000 for debt retirement purposes ($1,000 + $4,000 previous contribution = $5,000 contribution limit for 2015-2016 election cycle). The remaining $1,000 may be used for the 2017-2018 election cycle or refunded to the donor. Debt forgiveness. Another way to retire debt is through debt forgiveness, although forgiveness generally has the same effect as making a contribution. 323 320 A.R.S. § 16-926(F). A.R.S. § 16-926(B)(5). 322 A.R.S. § 16-901(11)(a). 323 Since a candidate may contribute unlimited personal monies to his or her own campaign, the committee may forgive a loan of personal monies without restriction. A.R.S. § 16-913(F). Additionally, campaign staff may consent to converting their paid services to volunteer service in order to retire debt. A.R.S. § 16-911(B)(1); see also 11 C.F.R. § 116.6. 321 Department of State, Office of the Secretary of State Election Services Division 49 Arizona Campaign Finance: Candidate Committees A debt may be settled or forgiven in its entirety only if the committee has been unable to repay the debt after 5 years, the creditor has agreed to discharge the debt, and the creditor consents to committee termination. 324 2. Disposal of surplus funds If a terminating committee has surplus monies remaining after payment of all debts, 325 the committee may dispose of those surplus monies only in specified ways: · Transfer the surplus to a candidate committee organized by the same candidate; 326 · Return surplus monies to the original contributor; 327 · Contribute surplus monies to a PAC or political party within contribution limits; 328 · Contribute surplus monies to another candidate under the following conditions: · The contribution must be made after the candidate filing deadline, which is 90 days before the primary election (or first election in a city or town); 329 · The contributing candidate must be in the last year of his or her term and not seeking reelection (or have already left office);330 · If the recipient is a legislative candidate, the contributing candidate may not make the contribution while the Legislature is in regular session; 331 and · The contribution must made in accordance with the contribution limit applicable to individuals; 332 · Donate surplus monies to a nonprofit organization that has tax exempt status under § 501(c)(3) of the Internal Revenue Code; 333 or · In the case of a statewide or legislative candidate committee, transfer surplus monies to the candidate’s officeholder expense account. 334 Regardless of how the committee disposes of surplus monies, the monies may not be converted for personal use. 335 324 A.R.S. § 16-934(B)(2)(b). “Surplus monies” are defined as monies that remain after a committee’s expenditures have been made, all debts have been extinguished, and the committee ceases to accept contributions. A.R.S. § 16-901(50). 326 See Section E(1) for guidance whether candidate monies may be transferred to another candidate committee for the same candidate. 327 A.R.S. § 16-933(A)(1). 328 A.R.S. § 16-933(A)(2). 329 See A.R.S. §§ 16-311(A) and 16-933(A)(3)(a). The contribution need not be made before the contributing candidate finishes his or her term of office. 330 A.R.S. § 16-933(A)(3)(b). The contributing candidate must not have filed a nomination paper with any filing officer at the 90-day deadline to seek reelection. A.R.S. §§ 16-311(A) and 16-933(A)(3)(b). 331 A.R.S. § 16-933(A)(3)(c). This restriction only becomes significant if the legislature fails to adjourn sine die before the candidate filing deadline. 332 A.R.S. § 16-933(A)(3)(d); see also A.R.S. § 16-912(A). 333 A.R.S. § 16-933(A)(4). 334 A.R.S. § 16-933(A)(5). See Section F(6) above. 335 A.R.S. § 16-933(B). 325 Department of State, Office of the Secretary of State Election Services Division 50 Arizona Campaign Finance: Candidate Committees 3. Terminating a committee Once a committee has wound down its financial affairs, the committee may file a termination statement with the filing officer with whom the committee’s statement of organization was filed.336 In the termination statement, the committee treasurer is required to certify under penalty of perjury that all of the following apply: · The committee will no longer receive any contributions or make any disbursements; · The committee either: · Has no outstanding debts or obligations; or · Has outstanding debts or obligations that are more than 5 years old, the committee’s creditors have agreed to discharge the debts/obligations, and the creditors have agreed to termination of the committee; · Any surplus monies have been disposed of and that the committee has no cash on hand; and · All contributions and expenditures have been reported in a final campaign finance report, including any disposal of surplus monies. 337 A filing officer may reject the termination statement if it appears to the filing officer that the above requirements have not been satisfied. 338 After a termination statement is filed and accepted, a committee is not required to file any further campaign finance reports. 339 K. Grounds for Campaign Finance Enforcement These are the most common grounds for campaign finance complaints against a candidate committee: 1. Prohibited contributions A candidate committee is prohibited from: · Accepting a contribution from a prohibited source, such a corporation or a foreign national. 340 336 A.R.S. § 16-934(A). A.R.S. § 16-934(B). 338 A.R.S. § 16-934(C). 339 A.R.S. § 16-934(D). 340 See Section D(2) above. This includes accepting or benefitting from an in-kind contribution provided by a prohibited source. For example, coordinating with a corporation, LLC or union about running an advertisement to advocate the candidate’s election (or opponent’s defeat) would result in an in-kind contribution. See A.R.S. § 16-922(B) (an expenditure is not an independent expenditure if (1) there is any actual coordination between the candidate (or candidate’s agent) and the person making the expenditure or (2) both of the following apply: (a) the expenditure is based on nonpublic information about the candidate’s plans that candidate (or candidate’s agent) provided to the person and (b) the candidate (or candidate’s agent) provided the nonpublic information with an intent towards having the expenditure made). 337 Department of State, Office of the Secretary of State Election Services Division 51 Arizona Campaign Finance: Candidate Committees · Accepting a contribution that has been earmarked for another candidate. 341 · Knowingly accepting a contribution in excess of applicable contribution limits. 342 · With respect to the Governor or a legislative member, accepting a contribution from a lobbyist or principal during the regular session of the Legislature. 343 Violations are enforced through civil penalties, based on amount of money improperly spent or accepted. 344 On the criminal side, a committee may not knowingly accept a contribution in the name of another person. 345 For example, a donor may have reached his or her contribution limit to the candidate and seek to give additional money through someone else. If the candidate knows that a contribution is from a straw donor, the candidate could be charged with a class 6 felony. 346 2. Coordinated expenditures Coordination between candidates and outside groups (other than coordination with a political party) presents a target-rich environment for campaign finance complaints. If a candidate coordinates with an outside group that makes an expenditure on the candidate’s behalf, the value of the expenditure is deemed an in-kind contribution to the candidate’s campaign. 347 If the candidate did not report the contribution (which is likely to be the case), the candidate may be subject to a campaign finance complaint for failure to report. 348 And worse, if the outside group was a corporation, LLC or union, the candidate committee is deemed to have accepted a contribution from a prohibited source. 349 Thus, a candidate must ensure that any such expenditures remain “independent.” Independent expenditures. An “independent expenditure” is an expenditure that: · expressly advocates the election or defeat of a clearly identified candidate; and · is not made in cooperation or consultation with (or at the request or suggestion of) the candidate or the candidate’s agent. 350 341 A.R.S. § 16-918. An “earmarked” contribution means “a designation, instruction or encumbrance between the transferor of a contribution and a transferee that requires the transferee to make a contribution to a clearly identified candidate.” A.R.S. § 16-901(16). Thus, a candidate committee may not accept a contribution from an individual, PAC or partnership that is conditioned upon recipient candidate giving all or part of the money to another candidate committee. 342 See Section D(5) above. 343 See Section D(2) above. 344 A.R.S. § 16-938(E)(2). The Clean Elections Commission also asserts that it has jurisdiction to impose penalties against privately financed candidates for statewide and legislative office for failure to comply with campaign finance reporting requirements. For additional information on these penalties, please refer to A.R.S. § 16-942 and the rules adopted by the Clean Elections Commission. 345 A.R.S. § 16-1022(B). 346 Arizona law also makes it a crime to give a contribution in the name of another or allow one’s name to be used in this manner. A.R.S. § 16-1022(B). 347 A.R.S. § 16-922(E). Coordination between a nominee and the nominee’s political party, however, does not result in an in-kind contribution. 348 A.R.S. § 16-937(A). 349 A.R.S. §§ 16-913(D) and 16-922(E). 350 A.R.S. § 16-901(31). Department of State, Office of the Secretary of State Election Services Division 52 Arizona Campaign Finance: Candidate Committees Expenditures by an outside group advocating a candidate’s election (or the candidate’s opponent’s defeat) are assumed to be independent. If a complaint challenges that assumption, however, Arizona law provides a roadmap how to resolve the issue. First, an expenditure is not independent if: · There is any actual coordination between the candidate (or candidate’s agent) and the person making the expenditure; or · Both of the following apply: · The expenditure is based on nonpublic information about the candidate’s plans that candidate (or candidate’s agent) provided to the person; and · The candidate (or candidate’s agent) provided the nonpublic information with an intent towards having the expenditure made.351 If either condition exists, the expenditure is conclusively deemed to be coordinated and thus likely to result in an in-kind contribution. Second, there are certain factors that create a presumption of coordination: · An agent of the person making the expenditure is also an agent of the candidate whose election or whose opponent’s defeat is being advocated by the expenditure. 352 For example, a political consultant should not advise a candidate and an outside group that conducts expenditures in the candidate’s race. · In the same election cycle, the person making the expenditure or that person’s agent is or has been authorized to raise or spend monies on the candidate’s behalf. 353 For example, the executive director of a trade association that conducts independent expenditures in a particular race should not serve as finance chairman for that candidate. · In the same election cycle, the candidate is or has been authorized to raise money or solicit contributions on behalf of the person making the expenditure. 354 For example, a candidate should not emcee a fundraising event for a PAC that later conducts expenditures on behalf of the candidate during the election cycle. These factors constitute rebuttable evidence of coordination. Thus, if a person files a campaign finance complaint and cites one or more of the above factors, the burden of persuasion shifts and the responding candidate must put forth contrary evidence that proves the lack of coordination. Maintaining a firewall. Notwithstanding any rebuttable evidence, coordination can be avoided if the outside group making the expenditure maintains sufficient separation between itself and its agent. This is known as a firewall. 355 If properly established, a firewall permits the agent to 351 352 353 354 355 A.R.S. § 16-922(B). A.R.S. § 16-922(C)(1). A.R.S. § 16-922(C)(2). A.R.S. § 16-922(C)(3). “Firewall” means a written policy that precludes one person from sharing information with another person. A.R.S. § 16-901(28). Department of State, Office of the Secretary of State Election Services Division 53 Arizona Campaign Finance: Candidate Committees work with the benefitted candidate without undermining the independence of the group’s expenditures. In order to be effective, a firewall must meet the following criteria: · The agent may not participate in deciding to make the expenditure or in deciding the content, timing or targeting of the expenditure to benefit a particular candidate; · The group making the expenditure must have a written policy establishing the firewall and its requirements; and · Both the agent and group must follow the written firewall policy.356 Of course, a candidate committee will not be involved in any of these behind-the-scenes considerations. However, it is important to understand the law: before working with anyone that could be deemed an agent of an independent expenditure group, the candidate may want to ensure that firewall is in place. Host committees. Fundraising events typically have a host committee, but this does not by itself create a risk of coordination. 357 Host committee members typically play very minor roles. Members are principally expected to make contributions themselves. And the existence of a host committee is usually intended to show popular and broad-based support for the candidate. No person should be deterred from serving on a host committee because of the perception of coordination. As long as the host committee member does nothing more than attend the fundraiser or make a contribution, and is not otherwise substantially involved in campaign strategy or operations, serving on a host committee does not risk turning an independent expenditure into an in-kind contribution. 3. Missing or late campaign finance reports If a committee fails to timely file a complete campaign finance report, the filing officer will notify the committee by email within 5 calendar days after the reporting deadline. 358 The notice must identify the late report(s), describe how fines accrue, and identify permissible methods of payment for the late fee. 359 Fines accrue at the rate of $10 per day if paid within 15 days after the filing deadline, and $25 per day thereafter. 360 Fines continue to accrue until the late report is filed. 361 If late fines are not paid in full within 30 days after the filing deadline, the filing officer has discretion to refer the matter to the enforcement officer. 362 The Attorney General is the enforcement 356 A.R.S. § 16-922(D). A.R.S. § 16-922(D). 358 A.R.S. § 16-937(A). 359 A.R.S. § 16-937(A). 360 A.R.S. § 16-937(B). 361 A.R.S. § 16-937(B). 362 A.R.S. § 16-937(C). In order to initiate an enforcement action, the filing officer must timely provide a notice that identifies the late report(s), describes how fines accrue, and identifies permissible methods of payment. A.R.S. § 16-937(A), (C). 357 Department of State, Office of the Secretary of State Election Services Division 54 Arizona Campaign Finance: Candidate Committees officer for statewide and legislative candidates, whereas the county, city or town attorney (as applicable) is the enforcement officer for local candidates. 363 Unpaid fines may have electoral consequences as well. A filing officer may not accept a candidate’s nomination paper to run for office if the candidate is liable for $1,000 or more in unpaid fines. 364 363 A.R.S. § 16-928(A). A.R.S. § 16-311(I). The $1,000 threshold is inclusive of all “fines, penalties, late fees or administrative or civil judgments, including any interest or costs, in any combination, that have not been fully satisfied at the time.” Id. The fines, penalties, fees or judgments must have been assessed in the candidate’s political or electoral capacity, not personal capacity. For example, a judgment over $1,000 resulting from a candidate’s student loan default does not constitute grounds to refuse a nomination paper. Additionally, the fines, penalties, fees or judgments must be reflected in an Order issued by an enforcement or judicial officer—the filing officer is not required to calculate these amounts based on unsubstantiated documentation. 364 Department of State, Office of the Secretary of State Election Services Division 55 Arizona Campaign Finance: Candidate Committees Appendix A County Filing Officers Apache County Apache County Election Dept. Angela C. Romero, Election Director Physical: 75 W. Cleveland Street Mailing: Post Office Box 428 St. Johns, AZ 85936 Phone: 928-337-7537 Fax: 928-337-7538 TDD: 800-361-4402 Email: aromero@co.apache.az.us Cochise County Cochise County Elections Dept. Martha Rodriquez, Election Coordinator Physical: 1415 Melody Lane, Bldg. A Bisbee, AZ 85603 Mailing: same as above Phone: 520-432-8975 Fax: 520-432-8995 Email: mrodriquez@cochise.az.gov Coconino County Coconino County Elections Dept. Penny Hoffman Physical: 110 East Cherry Ave. Flagstaff, AZ 86001 Mailing: same as above Phone: 928-679-7860 Fax: 928-679-7851 TDD: 928-679-7131 Email: ccelections@coconino.az.gov Gila County Gila County Elections Dept. Eric A. Mariscal, Elections Director Physical: 5515 S. Apache Ave. Suite 900 Globe, AZ 85501 Mailing: same as above Phone: 928-402-8708 Fax: 928-402-4319 TDD: 7-1-1 Email: emariscal@gilacountyaz.gov Graham County Graham County Election Dept. Judy Dickerson, Election Director Physical: 921 W. Thatcher Blvd. Safford, AZ 85546 Mailing: same as above Phone: 928-792-5037 Fax: 928-428-5951 TDD: 928-428-3562 Email: jdickerson@graham.az.gov Greenlee County Greenlee County Board of Supervisors Office Yvonne Pearson, Clerk of the Board/Elections Director th Physical: 253 5 Street Greenlee County (cont.) Mailing: Post Office Box 908 Clifton, AZ 85533 Phone: 928-865-2072 Fax: 928-865-9332 TDD: 928-865-2632 Email: ypearson@co.greenlee.az.us La Paz County La Paz County Elections Dept. Kevin Scholl, Elections Director Physical: 1108 Joshua Ave. Parker, AZ 85344 Mailing: same as above Phone: 928-669-6149 Fax: 928-669-9709 TDD: 928-669-8400 Email: kscholl@co.la-paz.az.us Maricopa County Maricopa County Elections Dept. Kristi Passarelli, Assistant Director rd Physical: 111 S. 3 Ave., Suite 102 Phoenix, AZ 85003 Mailing: same as above Phone: 602-506-1511 Fax: 602-506-3069 TDD: 602-506-2348 Email: kpassarelli@risc.maricopa.gov Mohave County Mohave County Elections Dept. Allen Tempert, Elections Director Physical: 700 W. Beale Street Kingman, AZ 86401 Mailing: Post Office Box 7000 Kingman, AZ 86402-7000 Phone: 928-753-0733 opt. 2 Fax: 928-718-4956 Email: elections@mohavecounty.us Navajo County Navajo County Election Services Rayleen D. Richards, Director Physical: 100 E. Code Talkers Drive South Hwy 77 Mailing: Post Office Box 668 Holbrook, AZ 86025 Phone: 928-524-4062 Fax: 928-524-4048 Email: rayleen.richards@navajocountyaz.gov Pima County Pima County Elections Department Brad Nelson, Elections Director Physical: 6550 S. Country Club Rd. Tucson, AZ 85756 Mailing: same as above Phone: 520-724-6830 Fax: 520-724-6870 TDD: 520-724-6871 Email: elections@pima.gov Department of State, Office of the Secretary of State Election Services Division Pinal County Pinal County Elections Department Becky Christianson, Elections Specialist Physical: 31 N. Pinal Street, Bldg. E Florence, AZ 85132 Mailing: Post Office Box 1592 Florence, AZ 85132 Phone: 520-866-6059 Fax: 520-866-7551 TDD: 520-866-7552 Email: PCElections_DL@pinalcountyaz.gov Santa Cruz County Santa Cruz County Elections Dept. Melinda Meek, Elections Director Physical: 2150 N. Congress Drive Nogales, AZ 85621 Mailing: same as above Phone: 520-375-7808 Fax: 520-761-7843 TDD: 520-375-7934 Email: mmeek@santacruzcountyaz.gov Yavapai County County / Special District Candidates : Yavapai County Elections Dept. Lynn Constabile, Elections Director Physical: 1015 Fair Street, Room 228 Prescott, AZ 86305 Mailing: same as above Phone: 928-771-3250 Fax: 928-771-3446 TDD: 928-771-3530 Email: web.elections@yavapai.us School District Candidates : Yavapai County Education Service Agency Jenn Nelson, Education Elections Coordinator Physical: 2970 Centerpointe East Dr. Prescott, AZ 86301 Mailing: same as above Phone: 928-442-5138 Fax: 928-771-3329 Email: jenn.nelson@yavapai.us Yuma County Yuma County Election Services Paul Melcher, Interim Election Director Physical: 198 S. Main Street Yuma, AZ 85364 Mailing same as above Phone: 928-373-1014 Fax: 928-373-1154 Email: paul.melcher@yumacountyaz.gov 56 Arizona Campaign Finance: Candidate Committees Appendix B Guidance on Operating or Fundraising with 2016 or Earlier-Formed Committees In 2016, the Legislature provided coordinating instructions for bringing committees into compliance with the new campaign finance law codified in Title 16, Chapter 6. 365 In an effort to ensure a smooth transition, the Secretary of State’s Office provides the following guidance for candidate committees in existence prior to the 2016 General Election: · All “exploratory committees” have been administratively converted into candidate committees by the Secretary of State’s Office. Thus, exploratory committees need not take any action to bring their committees into compliance with the new law. · A 2016 or earlier-formed candidate committee is permitted to remain in existence and need not terminate. 366 However, the decision whether to terminate has ramifications depending on whether the committee has a surplus or carries debt from a prior election cycle. · · If a candidate committee has a surplus from a prior election cycle, the committee should have the 2018 election cycle selected in the Secretary of State’s campaign finance filing system. This not only populates the candidate to the Secretary of State’s website, but allows the candidate to take advantage of current contribution limits. 367 · The Secretary of State’s Office has administratively selected the 2018 election cycle for current statewide and legislative officeholders that have a surplus from a prior election cycle. 368 Thus, a current officeholder need not make any changes to his or her committee in order to update the election cycle. · For a candidate that did not prevail in the last election, the candidate need only log into the Secretary of State’s campaign finance system and select the 2018 election cycle. This will require an amendment the committee’s statement of organization, but termination is not necessary. If a candidate committee has debt from a prior election cycle, the committee has two choices: · The candidate may keep the 2016 committee open and organize a new 2018 committee as well. This allows the candidate to simultaneously fundraise for the next election and retire debt from the last election. For example, a candidate may seek a maximum contribution from an individual donor under 2016 contribution limits ($5,000) to retire 365 See H.B. 2297, § 14 (52nd Leg., 2nd Reg. Sess.) (requiring aberrant committee types to be converted into candidate committees, PACs, or political parties by no later than June 30, 2017). 366 Section 14(B) of HB2297 allows a filing officer to administratively terminate or convert a committee after June 30, 2017 in order to bring those committees into compliance with S.B.1516. However, candidate committees did not need to be converted whatsoever since they exist under both the new and old law. The Secretary of State’s Office performed administrative conversions for exploratory committees, PACs, political parties, and political organizations in January 2017. 367 See A.R.S. § 16-931(A)(2) (requiring the Secretary of State to adjust contribution limits in January 2017). 368 Inclusion on the Secretary of State’s website simply means that a candidate committee is active and required to campaign finance reports during that particular election cycle; it does not necessarily indicate that a candidate is running for election or reelection. Department of State, Office of the Secretary of State Election Services Division 57 Arizona Campaign Finance: Candidate Committees debt held by the 2016 committee. The candidate may also seek a maximum contribution from the same individual donor under 2018 contribution limits ($5,100) to support the forthcoming election. 369 · · Alternatively, the candidate may roll 2016 debt into the candidate’s 2018 committee and close the 2016 committee thereafter. The candidate will not be able to dual fundraise as described above, but will have the advantage of retiring debt under the 2018 contribution limits. The candidate must log into the Secretary of State’s campaign finance system, “transfer out” the funds from the 2016 committee to the 2018 committee, and terminate the 2016 committee. Regardless of whether a committee had surplus funds or debt from a prior election, a candidate committee that was formed before the 2016 General Election is permitted to fundraise, operate, and otherwise conduct electoral activity in the 2018 election cycle and beyond. 370 Committees are encouraged to contact the Secretary of State’s Office if they have further questions about the transition process. 369 This example assumes that the individual donor did not make any other contributions to the candidate in current or prior election cycle. 370 Since candidate committees did not require termination or conversion pursuant to HB2297, § 14(B), 2016 candidate committees that conducted fundraising activities prior to the 2017 legislative session were not required to open a 2018 committee. Department of State, Office of the Secretary of State Election Services Division 58 Arizona Campaign Finance: Candidate Committees Appendix C Sample Statement of Organization [page intentionally left blank] Department of State, Office of the Secretary of State Election Services Division 59 STATE OF ARIZONA COMMITTEE STATEMENT OF ORGANIZATION ■  Initial Application  Amended Application Date: _______________ COMMITTEE ID NUMBER (office use only) COMMITTEE TYPE (choose one): ■  Candidate Committee Name (required): (first or last name & office) Smith 4 House Candidate Information: Candidate’s Name (required): Mike Smith Candidate’s mailing address (required): 123 Main Street, Phoenix AZ 85007 Candidate’s email address (required): mike@smith4house.com Candidate’s phone number (required): (602) 000-0000 Candidate’s website (if any): www.smith4house.com Office Sought (choose one):  Governor  Secretary of State  Superintendent of Public Instruction  Attorney General ■  State House of Representatives  State Senate  State Treasurer  State Mine Inspector  Corporation Commissioner  District (required): 30  County Office:  District (if applicable):  City/Town Office:  District (if applicable): Election Cycle for Office Sought (year the election will take place) (required): Party Affiliation:  Democrat (required for partisan offices) ■  Green  Libertarian  Republican  Other:  Political Action Committee (PAC) Committee Name (required): (if sponsored, must include sponsor’s name) Political Function (optional):  Contributions (select any that apply)  Ballot Measure Expenditures Sponsorship Information: Sponsor’s name or nickname (required): (if applicable)  Candidate-Related Independent Expenditures  Recall Expenditures Sponsor’s mailing address (required): Sponsor’s email address (required): Sponsor’s phone number (if any): Sponsor’s website (if any): Special Status (if applicable)  Separate Segregated Fund of a Corporation, LLC, Partnership, or Union  Standing Committee (must also complete separate standing committee registration)  Mega PAC (must provide proof of Mega PAC status to filing officer) (amended applications only)  Political Party Committee Name (required): (must include party affiliation) Jurisdiction:  State Party (must include proof of qualification pursuant to A.R.S. § 16-801 or § 16-804)  County Party (must include proof of qualification pursuant to A.R.S. § 16-802 or § 16-804)  Legislative District Party (must include proof of organization pursuant to A.R.S. § 16-823)  City or Town Party (must include proof of qualification pursuant to A.R.S. § 16-802 or § 16-804) Special Status (if applicable)  Standing Committee (must also complete separate standing committee registration) Arizona Secretary of State Revision 11/5/16 STATE OF ARIZONA COMMITTEE STATEMENT OF ORGANIZATION ■  Initial Application  Amended Application Date: _______________ COMMITTEE ID NUMBER (office use only) COMMITTEE INFORMATION: Contact Information: Committee’s mailing address (required): 123 Main Street, Phoenix AZ 85007 Committee’s email address (required): mike@smith4house.com Committee’s phone number (if any): (602) 000-0000 Committee’s website (if any): www.smith4house.com Chairperson’s Information: Chairperson’s name (required): Mike Smith Chairperson’s physical address (required): 123 Main Street, Phoenix AZ 85007 Chairperson’s mailing address (if different): Chairperson’s email address (required): mike@smith4house.com Chairperson’s phone number (required): (602) 000-0000 Chairperson’s employer (required): State of Arizona Chairperson’s occupation (required): Accountant Treasurer’s Information: Treasurer’s name (required): Judy Smith Treasurer’s physical address (required): 456 N. 7th Avenue, Phoenix AZ 85007 Treasurer’s mailing address (if different): P.O. Box 1145 Treasurer’s email address (required): judys@smith4house.com Treasurer’s phone number (required): (480) 000-0000 Treasurer’s employer (required): Retired Treasurer’s occupation (required): Retired Bank or Financial Institution: Bank name (required): Bank of Southern Arizona (do not list acct numbers) Additional bank name (if applicable): Additional bank name (if applicable): DECLARATION AND SIGNATURES: I declare under penalty of perjury that the foregoing information is true and correct. I further declare that I: (1) consent to serve as chairperson or treasurer of the committee named herein, if applicable; (2) designate the above-named committee as my official candidate committee and authorize it to receive/make contributions/expenditures on my behalf, if applicable; (3) have read the Secretary of State's campaign finance and reporting guide; (4) agree to comply with Arizona election law, including campaign finance laws codified at A.R.S. §§ 16-901 to 16-938; and (5) agree to accept all notifications and legal service of process for campaign finance purposes via the email address(es) provided herein. Chairperson’s signature: Treasurer’s signature: Mike Smith Digitally signed by Mike Smith Date: 2017.02.12 15:04:01 -07'00' Judy Smith Candidate’s signature (if applicable): Digitally signed by Judy Smith Date: 2017.02.13 09:38:17 -07'00' Mike Smith Digitally signed by Mike Smith Date: 2017.02.12 15:06:02 -07'00' Date: Date: Date: 02/12/2017 Arizona Secretary of State Revision 11/5/16 Arizona Campaign Finance: Candidate Committees Appendix D 2017-2018 Campaign Finance Report [page intentionally left blank] Department of State, Office of the Secretary of State Election Services Division 62 STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT COMMITTEE ID NUMBER COMMITTEE INFORMATION (required): Committee Information: Committee Name: CANDIDATE INFORMATION (only if filing as a candidate committee): Office Sought:  Statewide Office:  State Legislature:  County Office:  City/Town Office: REPORTING PERIOD (check one): REPORTING PERIOD th REPORT DUE 2016 4 Quarter Report: October 28, 2016 to December 31, 2016 January 1, 2017 to January 15, 2017 2017 March Pre-Election Report (Local Only): January 1, 2017 to February 25, 2017 February 26, 2017 to March 4, 2017 st April 1, 2017 to April 15, 2017 st 2017 1 Quarter Report: January 1, 2017 to March 31, 2017 April 1, 2017 to April 15, 2017 2017 May Pre-Election Report (Local Only): April 1, 2017 to April 29, 2017 April 30 , 2017 to May 6, 2017 2017 1 Quarter Report (Local Only): February 26, 2017 to March 31, 2017 nd July 1, 2017 to July 15, 2017 nd 2017 2 Quarter Report: April 1, 2017 to June 30, 2017 July 1, 2017 to July 15, 2017 2017 August Pre-Election Report (Local Only): July 1, 2017 to August 12, 2017 August 13, 2017 to August 19, 2017 2017 2 Quarter Report (Local Only): April 30, 2017 to June 30, 2017 rd October 1, 2017 to October 15, 2017 rd 2017 3 Quarter Report: July 1, 2017 to September 30, 2017 October 1, 2017 to October 15, 2017 2017 October Pre-Election Report (Local Only): October 1, 2017 to October 21, 2017 October 22, 2017 to October 28, 2017 2017 3 Quarter Report (Local Only): August 13, 2017 to September 30, 2017 th January 1, 2018 to January 15, 2018 th 2017 4 Quarter Report: October 1, 2017 to December 31, 2017 January 1, 2018 to January 15, 2018 2018 March Pre-Election Report (Local Only): January 1, 2018 to February 24, 2018 February 25, 2018 to March 3, 2018 2017 4 Quarter Report (Local Only): October 22, 2017 to December 31, 2017 st April 1, 2018 to April 15, 2018 st 2018 1 Quarter Report: January 1, 2018 to March 31, 2018 April 1, 2018 to April 15, 2018 2018 May Pre-Election Report (Local Only): April 1, 2018 to April 28, 2018 April 29 , 2018 to May 5, 2018 2018 1 Quarter Report (Local Only): February 25, 2018 to March 31, 2018 nd 2018 2 Quarter Report (Local Only): April 29, 2018 to June 30, 2018 July 1, 2018 to July 15, 2018 2018 2nd Quarter Report: April 1, 2018 to June 30, 2018 July 1, 2018 to July 15, 2018 2018 August Pre-Election Report: July 1, 2018 to August 11, 2018 August 12, 2018 to August 18, 2018 rd 2018 3 Quarter Report: August 12, 2018 to September 30, 2018 October 1, 2018 to October 15, 2018 2018 October Pre-Election Report: October 1, 2018 to October 20, 2018 October 21, 2018 to October 27, 2018 th 2018 4 Quarter Report: October 21, 2018 to December 31, 2018 January 1, 2019 to January 15, 2019 Final Campaign Finance Report Prior to Committee Termination End of Previous Period through Today’s Date FINANCIAL SUMMARY (required): Activity (a) Cash Activity This Reporting Period Election Cycle to Date Committee value at the beginning of this reporting period (i.e. ending balance from the previous reporting period) (b) + Total receipts (from “Summary of Receipts,” line 13 (cash column) for this reporting period) $ 0.00 (c) - Total disbursements (from “Summary of Disbursements,” line 16 (cash column) for this reporting period) $ 0.00 (d) = Balance at close of reporting period $ 0.00  Check here if no financial activity during the reporting period. Lines (a)-(d) still must be completed, but only this cover page need be filed. Committees with financial activity must file the cover page, summary of receipts, summary of disbursements, and any schedules that contain financial activity. All reports are deemed to be filed under penalty of perjury by the committee treasurer (all committees) and candidate (candidate committees only). Arizona Secretary of State Revision 1/03/17 STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT COMMITTEE ID NUMBER SUMMARY OF RECEIPTS (Schedule A): Receipts 1. 2. Individuals - More than $50 (b) Individuals - $50 or Less (Aggregate) (c) Candidate Committees (d) Political Action Committees (e) Political Parties (f) Partnerships (g) Corporations & Limited Liability Companies (PACs & Political Parties Only) (h) Labor Organizations (PACs & Political Parties Only) (i) Candidate’s Personal Monies (Candidate Committees Only) (j) Monetary Contributions Subtotal (add 1(a) through 1(i)) (k) Refunds Given Back to Contributors (l) Net Monetary Contributions (subtract 1(k) from 1(j)) $ 0.00 $ 0.00 Loans (a) Loans Received (b) Forgiveness on Loans Received (c) Repayment on Loans Made (d) Interest Accrued on Loans Made (e) Loans Subtotal (cash: add 2(a), 2(c) & 2(d)) Rebates and Refunds Received 4. Interest Accrued on Committee Monies 5. In-Kind Contributions Received 7. Equity Monetary Contributions Received (a) 3. 6. Cash $ 0.00 (a) Individuals - More than $50 (b) Individuals - $50 or Less (Aggregate) (c) Candidate Committees (d) Political Action Committees (e) (f) Political Parties Partnerships (g) Corporations & Limited Liability Companies (PACs & Political Parties Only) (h) Labor Organizations (PACs & Political Parties Only) (i) Candidate’s Personal Assets or Property (Candidate Committees Only) (j) In-Kind Contributions Subtotal (equity: add 5(a) through 5(i)) $ 0.00 In-Kind Donations Received (Non-Contributions) (Political Parties Only) Extensions of Credit (a) Extensions of Credit Received (b) Payments on Extensions of Credit Received (c) Net Extensions of Credit (subtract 7(b) from 7(a)) 8. Joint Fundraising / Shared Expense Payments Received 9. Payments Received for Goods / Services $ 0.00 10. Outstanding Accounts Receivable / Debts Owed to Committee 11. Transfer In Surplus Monies / Transfer Out Debt (use cash and/or equity as applicable) 12. Miscellaneous Receipts 13. Total Receipts (cash: add 1(l), 2(e), 3-4, 8-9, 11-12; equity: add 2(b), 5(j), 6-7, 10-12) Arizona Secretary of State Revision 1/03/17 $ 0.00 $ 0.00 STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT COMMITTEE ID NUMBER SUMMARY OF DISBURSEMENTS (Schedule B): Cash Disbursements 1. Disbursements for Operating Expenses 2. Contributions Made 3. (a) Candidate Committees (b) Political Action Committees (c) Political Parties (d) Partnerships (e) Corporations & Limited Liability Companies (PAC & Political Parties Only) (f) Labor Organizations (PAC & Political Parties Only) (g) Monetary Contributions Subtotal (add 2(a) through 2(f)) (h) Contribution Refunds Provided to the Reporting Committee (i) Monetary Contributions Total (subtract 2(h) from 2(g)) Equity $ 0.00 $ 0.00 Loans (a) Loans Made (b) Loan Guarantees Made (c) Forgiveness on Loans Made (d) Repayment of Loans Received (e) Accrued Interest on Loans Received (f) Total Loans (cash: add 3(a), 3(d) & 3(e); equity: add 2(b) & 2(c)) 4. Rebates and Refunds Made (Non-Contributions) 5. Value of In-Kind Contributions Provided (a) $ 0.00 $ 0.00 Candidate Committees (b) Political Action Committees (c) Political Parties (d) Partnerships (e) Corporations & Limited Liability Companies (PAC & Political Parties Only) (f) Labor Organizations (PAC & Political Parties Only) (j) Contributions Subtotal (add 5(a) through 5(f)) $ 0.00 6. Independent Expenditures Made 7. Ballot Measure Expenditures Made 8. Recall Expenditures Made 9. Support Provided to Party Nominees (Political Parties Only) 10. Joint Fundraising / Shared Expense Payments Made 11. Reimbursements Made 12. Outstanding Accounts Payable / Debts Owed by Committee 13. Transfer Out Surplus Monies / Transfer In Debt (use cash and/or equity as applicable) 14. Miscellaneous Disbursements 15. Aggregate of Disbursements - $250 or Less 16. Total Disbursements (cash: add 1, 2(i), 3(f), 6-11 & 13-15; equity: add 3(f), 5(j), & 12-15) Arizona Secretary of State Revision 1/03/17 $ 0.00 $ 0.00 STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT COMMITTEE ID NUMBER MONETARY CONTRIBUTIONS RECEIVED FROM INDIVIDUALS - MORE THAN $50 DURING ELECTION CYCLE:* Individual Contributor Information Name Amount Received Cumulative Amount this Reporting Period Date Contribution Received Street Address 1 City State ZIP Occupation Employer Name Date Contribution Received Street Address 2 City State ZIP Occupation Employer Name Date Contribution Received Street Address 3 City State ZIP Occupation Employer Name Date Contribution Received Street Address 4 City State ZIP Occupation Employer Name Date Contribution Received Street Address 5 City State ZIP Occupation Employer Enter total only if last page of schedule (transfer the total received this period to “Summary of Receipts,” line 1(a)) *If contributions of $50 or less are listed on Schedule A(1)(b), do not include them on Schedule A(1)(a). Schedule A(1)(a), page of Arizona Secretary of State Revision 1/03/17 SCHEDULE A(1)(a) Cumulative Amount this Election Cycle STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT MONETARY CONTRIBUTIONS RECEIVED FROM INDIVIDUALS - $50 OR LESS (AGGREGATE):* Cumulative Amount this Reporting Period Cumulative Contributions from Individuals - $50 or Less Enter total only if last page of schedule (transfer the total received this period to “Summary of Receipts,” line 1(b)) *If contributions of more than $50 are listed on Schedule A(1)(a), do not include them on Schedule A(1)(b). Schedule A(1)(b), page of Arizona Secretary of State Revision 1/03/17 COMMITTEE ID NUMBER SCHEDULE A(1)(b) Cumulative Amount this Election Cycle STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT COMMITTEE ID NUMBER MONETARY CONTRIBUTIONS FROM CANDIDATE COMMITTEES: SCHEDULE A(1)(c) Candidate Committee Contributor Information Amount Received Committee Name Street Address 1 City State ZIP Committee ID Number Date Contribution Received Committee Name Street Address 2 City State ZIP Committee ID Number Date Contribution Received Committee Name Street Address 3 City State ZIP Committee ID Number Date Contribution Received Committee Name Street Address 4 City State ZIP Committee ID Number Date Contribution Received Committee Name Street Address 5 City State ZIP Committee ID Number Date Contribution Received Enter total only if last page of schedule (transfer the total received this period to “Summary of Receipts,” line 1(c)) Schedule A(1)(c), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT COMMITTEE ID NUMBER MONETARY CONTRIBUTIONS FROM POLITICAL ACTION COMMITTEES: SCHEDULE A(1)(d) Political Action Committee Contributor Information Amount Received Committee Name Street Address 1 City State ZIP Committee ID Number Date Contribution Received Committee Name Street Address 2 City State ZIP Committee ID Number Date Contribution Received Committee Name Street Address 3 City State ZIP Committee ID Number Date Contribution Received Committee Name Street Address 4 City State ZIP Committee ID Number Date Contribution Received Committee Name Street Address 5 City State ZIP Committee ID Number Date Contribution Received Enter total only if last page of schedule (transfer the total received this period to “Summary of Receipts,” line 1(d)) Schedule A(1)(d), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT COMMITTEE ID NUMBER MONETARY CONTRIBUTIONS FROM POLITICAL PARTIES: SCHEDULE A(1)(e) Political Party Contributor Information Amount Received Committee Name Street Address 1 City State ZIP Committee ID Number Date Contribution Received Committee Name Street Address 2 City State ZIP Committee ID Number Date Contribution Received Committee Name Street Address 3 City State ZIP Committee ID Number Date Contribution Received Committee Name Street Address 4 City State ZIP Committee ID Number Date Contribution Received Committee Name Street Address 5 City State ZIP Committee ID Number Date Contribution Received Enter total only if last page of schedule (transfer the total received this period to “Summary of Receipts,” line 1(e)) Schedule A(1)(e), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT COMMITTEE ID NUMBER MONETARY CONTRIBUTIONS FROM PARTNERSHIPS: SCHEDULE A(1)(f) Partnership Contributor Information Amount Received Partnership Name Street Address 1 City State ZIP Corporation Commission File Number Date Contribution Received Partnership Name Street Address 2 City State ZIP Corporation Commission File Number Date Contribution Received Partnership Name Street Address 3 City State ZIP Corporation Commission File Number Date Contribution Received Partnership Name Street Address 4 City State ZIP Corporation Commission File Number Date Contribution Received Partnership Name Street Address 5 City State ZIP Corporation Commission File Number Date Contribution Received Enter total only if last page of schedule (transfer the total received this period to “Summary of Receipts,” line 1(f)) Schedule A(1)(f), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT COMMITTEE ID NUMBER MONETARY CONTRIBUTIONS FROM CORPORATIONS AND LLCs: SCHEDULE A(1)(g) Corporation / LLC Contributor Information Amount Received Corporation/LLC Name Street Address 1 City State ZIP Corporation Commission File Number Date Contribution Received Corporation/LLC Name Street Address 2 City State ZIP Corporation Commission File Number Date Contribution Received Corporation/LLC Name Street Address 3 City State ZIP Corporation Commission File Number Date Contribution Received Corporation/LLC Name Street Address 4 City State ZIP Corporation Commission File Number Date Contribution Received Corporation/LLC Name Street Address 5 City State ZIP Corporation Commission File Number Date Contribution Received Enter total only if last page of schedule (transfer the total received this period to “Summary of Receipts,” line 1(g)) Schedule A(1)(g), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT COMMITTEE ID NUMBER MONETARY CONTRIBUTIONS FROM LABOR ORGANIZATIONS: SCHEDULE A(1)(h) Labor Organization Contributor Information Amount Received Labor Organization Name Street Address 1 City State ZIP Corporation Commission File Number Date Contribution Received Labor Organization Name Street Address 2 City State ZIP Corporation Commission File Number Date Contribution Received Labor Organization Name Street Address 3 City State ZIP Corporation Commission File Number Date Contribution Received Labor Organization Name Street Address 4 City State ZIP Corporation Commission File Number Date Contribution Received Labor Organization Name Street Address 5 City State ZIP Corporation Commission File Number Date Contribution Received Enter total only if last page of schedule (transfer the total received this period to “Summary of Receipts,” line 1(h)) Schedule A(1)(h), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT COMMITTEE ID NUMBER MONETARY CONTRIBUTIONS FROM CANDIDATE’S PERSONAL MONIES: SCHEDULE A(1)(i) Candidate Information Name Amount Received Date Contribution Received Street Address 1 City State ZIP Occupation Employer Name Date Contribution Received Street Address 2 City State ZIP Occupation Employer Name Date Contribution Received Street Address 3 City State ZIP Occupation Employer Name Date Contribution Received Street Address 4 City State ZIP Occupation Employer Name Date Contribution Received Street Address 5 City State ZIP Occupation Employer Enter total only if last page of schedule (transfer the total received this period to “Summary of Receipts,” line 1(i)) Schedule A(1)(i), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT COMMITTEE ID NUMBER REFUNDS GIVEN BACK TO CONTRIBUTORS: SCHEDULE A(1)(j) Contributor Information Name Amount Refunded Date Contribution Refunded Street Address 1 City State ID Number (if applicable) ZIP Date of Original Contribution Name Date Contribution Refunded Street Address 2 City State ID Number (if applicable) ZIP Date of Original Contribution Name Date Contribution Refunded Street Address 3 City State ID Number (if applicable) ZIP Date of Original Contribution Name Date Contribution Refunded Street Address 4 City State ID Number (if applicable) ZIP Date of Original Contribution Name Date Contribution Refunded Street Address 5 City State ID Number (if applicable) ZIP Date of Original Contribution Enter total only if last page of schedule (transfer the total received this period to “Summary of Receipts,” line 1(k)) . Schedule A(1)(k), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT COMMITTEE ID NUMBER LOANS RECEIVED: SCHEDULE A(2)(a) Lender Information Lender Name Amount Received Date Loan Received Street Address 1 City State ZIP Guarantor/Endorser Name Non-Electoral Purpose? (PACs and Political Parties Only)  Lender Name Date Loan Received Street Address 2 City State ZIP Guarantor/Endorser Name Non-Electoral Purpose? (PACs and Political Parties Only)  Lender Name Date Loan Received Street Address 3 City State ZIP Guarantor/Endorser Name Non-Electoral Purpose? (PACs and Political Parties Only)  Lender Name Date Loan Received Street Address 4 City State ZIP Guarantor/Endorser Name Non-Electoral Purpose? (PACs and Political Parties Only)  Lender Name Date Loan Received Street Address 5 City State ZIP Guarantor/Endorser Name Non-Electoral Purpose? (PACs and Political Parties Only)  Enter total only if last page of schedule (transfer the total received this period to “Summary of Receipts,” line 2(a)) Schedule A(2)(a), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT COMMITTEE ID NUMBER FORGIVENESS ON LOANS RECEIVED: SCHEDULE A(2)(b) Lender Information Amount Forgiven Lender Name Date Forgiveness Received Street Address 1 City State ZIP Original Amount of Loan Amount Still Outstanding Lender Name Date Forgiveness Received Street Address 2 City State ZIP Original Amount of Loan Amount Still Outstanding Lender Name Date Forgiveness Received Street Address 3 City State ZIP Original Amount of Loan Amount Still Outstanding Lender Name Date Forgiveness Received Street Address 4 City State ZIP Original Amount of Loan Amount Still Outstanding Lender Name Date Forgiveness Received Street Address 5 City State ZIP Original Amount of Loan Amount Still Outstanding Enter total only if last page of schedule (transfer the total received this period to “Summary of Receipts,” line 2(b)) Schedule A(2)(b), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT COMMITTEE ID NUMBER REPAYMENT ON LOANS MADE: SCHEDULE A(2)(c) Borrower Information Amount Repaid Borrower Name Date Repayment Received Street Address 1 City State ZIP Original Amount Borrowed Amount Still Outstanding Borrower Name Date Repayment Received Street Address 2 City State ZIP Original Amount Borrowed Amount Still Outstanding Borrower Name Date Repayment Received Street Address 3 City State ZIP Original Amount Borrowed Amount Still Outstanding Borrower Name Date Repayment Received Street Address 4 City State ZIP Original Amount Borrowed Amount Still Outstanding Borrower Name Date Repayment Received Street Address 5 City State ZIP Original Amount Borrowed Amount Still Outstanding Enter total only if last page of schedule (transfer the total received this period to “Summary of Receipts,” line 2(c)) Schedule A(2)(c), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT COMMITTEE ID NUMBER INTEREST ACCRUED ON LOANS MADE: SCHEDULE A(2)(d) Amount of Interest Accrued Borrower Information Borrower Name Date Interest Accrued Street Address 1 City State ZIP Original Amount Borrowed Amount Still Outstanding Borrower Name Date Interest Accrued Street Address 2 City State ZIP Original Amount Borrowed Amount Still Outstanding Borrower Name Date Interest Accrued Street Address 3 City State ZIP Original Amount Borrowed Amount Still Outstanding Borrower Name Date Interest Accrued Street Address 4 City State ZIP Original Amount Borrowed Amount Still Outstanding Borrower Name Date Interest Accrued Street Address 5 City State ZIP Original Amount Borrowed Amount Still Outstanding Enter total only if last page of schedule (transfer the total received this period to “Summary of Receipts,” line 2(d)) Schedule A(2)(d), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT COMMITTEE ID NUMBER REBATES AND REFUNDS RECEIVED: SCHEDULE A(3) Amount Rebated or Refunded Payor Information Payor Name Date Rebate/Refund Received Street Address 1 City State ZIP Original Purchase Amount Reason for Refund/Rebate Borrower Name Date Rebate/Refund Received Street Address 2 City State ZIP Original Purchase Amount Reason for Refund/Rebate Borrower Name Date Rebate/Refund Received Street Address 3 City State ZIP Original Purchase Amount Reason for Refund/Rebate Borrower Name Date Rebate/Refund Received Street Address 4 City State ZIP Original Purchase Amount Reason for Refund/Rebate Borrower Name Date Rebate/Refund Received Street Address 5 City State ZIP Original Purchase Amount Reason for Refund/Rebate Enter total only if last page of schedule (transfer the total received this period to “Summary of Receipts,” line 3) Schedule A(3), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT INTEREST ACCRUED ON COMMITTEE MONIES: COMMITTEE ID NUMBER SCHEDULE A(4) Cumulative Amount this Reporting Period Account with Interest Earned (Bank Name / Type of Account) Account with Interest Earned (Bank Name / Type of Account) Account with Interest Earned (Bank Name / Type of Account) Account with Interest Earned (Bank Name / Type of Account) Account with Interest Earned (Bank Name / Type of Account) Total (transfer the total received this period to “Summary of Receipts,” line 4) Schedule A(4), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Election Cycle STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT COMMITTEE ID NUMBER IN-KIND CONTRIBUTIONS RECEIVED FROM INDIVIDUALS - MORE THAN $50 DURING ELECTION CYCLE:* Individual Contributor Information Name Amount Received SCHEDULE A(5)(a) Cumulative Amount this Reporting Period Date In-Kind Contribution Received Street Address 1 City State ZIP Occupation Employer Name Date In-Kind Contribution Received Street Address 2 City State ZIP Occupation Employer Name Date In-Kind Contribution Received Street Address 3 City State ZIP Occupation Employer Name Date In-Kind Contribution Received Street Address 4 City State ZIP Occupation Employer Name Date In-Kind Contribution Received Street Address 5 City State ZIP Occupation Employer Enter total only if last page of schedule (transfer the total received this period to “Summary of Receipts,” line 5(a)) *If in-kind contributions of $50 or less are listed on Schedule A(5)(b), do not include them on Schedule A(5)(a). Schedule A(5), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Election Cycle STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT IN-KIND CONTRIBUTIONS RECEIVED FROM INDIVIDUALS - $50 OR LESS (AGGREGATE):* Cumulative Amount this Reporting Period Cumulative In-Kind Contributions from Individuals - $50 or Less Enter total only if last page of schedule (transfer the total received this period to “Summary of Receipts,” line 1(b)) *If contributions of more than $50 are listed on Schedule A(5)(a), do not include them on Schedule A(5)(b). Schedule A(5)(b), page of Arizona Secretary of State Revision 1/03/17 COMMITTEE ID NUMBER SCHEDULE A(5)(b) Cumulative Amount this Election Cycle COMMITTEE ID NUMBER STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT IN-KIND CONTRIBUTIONS FROM CANDIDATE COMMITTEES: SCHEDULE A(5)(c) Candidate Committee Contributor Information Amount Received Committee Name Street Address 1 City State ZIP Committee ID Number Date In-Kind Contribution Received Committee Name Street Address 2 City State ZIP Committee ID Number Date In-Kind Contribution Received Committee Name Street Address 3 City State ZIP Committee ID Number Date In-Kind Contribution Received Committee Name Street Address 4 City State ZIP Committee ID Number Date In-Kind Contribution Received Committee Name Street Address 5 City State ZIP Committee ID Number Date In-Kind Contribution Received Enter total only if last page of schedule (transfer the total received this period to “Summary of Receipts,” line 5(c)) Schedule A(5)(c), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle COMMITTEE ID NUMBER STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT IN-KIND CONTRIBUTIONS FROM POLITICAL ACTION COMMITTEES: SCHEDULE A(5)(d) Political Action Committee Contributor Information Amount Received Committee Name Street Address 1 City State ZIP Committee ID Number Date In-Kind Contribution Received Committee Name Street Address 2 City State ZIP Committee ID Number Date In-Kind Contribution Received Committee Name Street Address 3 City State ZIP Committee ID Number Date In-Kind Contribution Received Committee Name Street Address 4 City State ZIP Committee ID Number Date In-Kind Contribution Received Committee Name Street Address 5 City State ZIP Committee ID Number Date In-Kind Contribution Received Enter total only if last page of schedule (transfer the total received this period to “Summary of Receipts,” line 5(d)) Schedule A(5)(d), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle COMMITTEE ID NUMBER STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT SCHEDULE A(5)(e) IN-KIND CONTRIBUTIONS FROM POLITICAL PARTIES: Political Party Contributor Information Amount Received Committee Name Street Address 1 City State ZIP Committee ID Number Date In-Kind Contribution Received Committee Name Street Address 2 City State ZIP Committee ID Number Date In-Kind Contribution Received Committee Name Street Address 3 City State ZIP Committee ID Number Date In-Kind Contribution Received Committee Name Street Address 4 City State ZIP Committee ID Number Date In-Kind Contribution Received Committee Name Street Address 5 City State ZIP Committee ID Number Date In-Kind Contribution Received Enter total only if last page of schedule (transfer the total received this period to “Summary of Receipts,” line 5(e)) Schedule A(5)(e), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle COMMITTEE ID NUMBER STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT IN-KIND CONTRIBUTIONS FROM PARTNERSHIPS: SCHEDULE A(5)(f) Partnership Contributor Information Amount Received Partnership Name Street Address 1 City State ZIP Corporation Commission File Number Date In-Kind Contribution Received Partnership Name Street Address 2 City State ZIP Corporation Commission File Number Date In-Kind Contribution Received Partnership Name Street Address 3 City State ZIP Corporation Commission File Number Date In-Kind Contribution Received Partnership Name Street Address 4 City State ZIP Corporation Commission File Number Date In-Kind Contribution Received Partnership Name Street Address 5 City State ZIP Corporation Commission File Number Date In-Kind Contribution Received Enter total only if last page of schedule (transfer the total received this period to “Summary of Receipts,” line 5(f)) Schedule A(5)(f), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle COMMITTEE ID NUMBER STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT IN-KIND CONTRIBUTIONS FROM CORPORATIONS AND LLCs: SCHEDULE A(5)(g) Corporation / LLC Contributor Information Amount Received Corporation/LLC Name Street Address 1 City State ZIP Corporation Commission File Number Date In-Kind Contribution Received Corporation/LLC Name Street Address 2 City State ZIP Corporation Commission File Number Date In-Kind Contribution Received Corporation/LLC Name Street Address 3 City State ZIP Corporation Commission File Number Date In-Kind Contribution Received Corporation/LLC Name Street Address 4 City State ZIP Corporation Commission File Number Date In-Kind Contribution Received Corporation/LLC Name Street Address 5 City State ZIP Corporation Commission File Number Date In-Kind Contribution Received Enter total only if last page of schedule (transfer the total received this period to “Summary of Receipts,” line 5(g)) Schedule A(5)(g), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle COMMITTEE ID NUMBER STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT IN-KIND CONTRIBUTIONS FROM LABOR ORGANIZATIONS: SCHEDULE A(5)(h) Labor Organization Contributor Information Amount Received Labor Organization Name Street Address 1 City State ZIP Corporation Commission File Number Date In-Kind Contribution Received Labor Organization Name Street Address 2 City State ZIP Corporation Commission File Number Date In-Kind Contribution Received Labor Organization Name Street Address 3 City State ZIP Corporation Commission File Number Date In-Kind Contribution Received Labor Organization Name Street Address 4 City State ZIP Corporation Commission File Number Date In-Kind Contribution Received Labor Organization Name Street Address 5 City State ZIP Corporation Commission File Number Date In-Kind Contribution Received Enter total only if last page of schedule (transfer the total received this period to “Summary of Receipts,” line 5(h)) Schedule A(5)(h), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT COMMITTEE ID NUMBER IN-KIND CONTRIBUTIONS FROM CANDIDATE’S PERSONAL ASSETS OR PROPERTY: SCHEDULE A(5)(i) Candidate Information Name Amount Received Date In-Kind Contribution Received Street Address 1 City State ZIP Asset or Property Contributed Name Date In-Kind Contribution Received Street Address 2 City State ZIP Asset or Property Contributed Name Date In-Kind Contribution Received Street Address 3 City State ZIP Asset or Property Contributed Name Date In-Kind Contribution Received Street Address 4 City State ZIP Asset or Property Contributed Name Date In-Kind Contribution Received Street Address 5 City State ZIP Asset or Property Contributed Enter total only if last page of schedule (transfer the total received this period to “Summary of Receipts,” line 5(i)) Schedule A(5)(i), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT COMMITTEE ID NUMBER IN-KIND DONATIONS RECEIVED (NON-CONTRIBUTIONS) (PACs AND POLITICAL PARTIES ONLY): Source Information Name Amount Received Date In-Kind Donation Received Street Address 1 City State ZIP Type of Item Donated Name Date In-Kind Donation Received Street Address 2 City State ZIP Type of Item Donated Name Date In-Kind Donation Received Street Address 3 City State ZIP Type of Item Donated Name Date In-Kind Donation Received Street Address 4 City State ZIP Type of Item Donated Name Date In-Kind Donation Received Street Address 5 City State ZIP Type of Item Donated Enter total only if last page of schedule (transfer the total received this period to “Summary of Receipts,” line 6) Schedule A(6), page of Arizona Secretary of State Revision 1/03/17 SCHEDULE A(6) Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle COMMITTEE ID NUMBER STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT EXTENSIONS OF CREDIT RECEIVED: SCHEDULE A(7)(a) Amount of Credit Extended Creditor Information Name Street Address 1 City State Services or Goods Provided on Credit ZIP Date of Extension of Credit Name Street Address 2 City State Services or Goods Provided on Credit ZIP Date of Extension of Credit Name Street Address 3 City State Services or Goods Provided on Credit ZIP Date of Extension of Credit Name Street Address 4 City State Services or Goods Provided on Credit ZIP Date of Extension of Credit Name Street Address 5 City State Services or Goods Provided on Credit ZIP Date of Extension of Credit Enter total only if last page of schedule (transfer the total received this period to “Summary of Receipts,” line 7(a)) Schedule A(7)(a), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT COMMITTEE ID NUMBER PAYMENTS ON EXTENSIONS OF CREDIT RECEIVED: SCHEDULE A(7)(b) Payment Amount Cumulative on Credit Amount this Extended Reporting Period Creditor Information Name Street Address 1 City State Services or Goods Originally Provided on Credit ZIP Date of Original Extension of Credit Name Street Address 2 City State Services or Goods Originally Provided on Credit ZIP Date of Original Extension of Credit Name Street Address 3 City State Services or Goods Originally Provided on Credit ZIP Date of Original Extension of Credit Name Street Address 4 City State Services or Goods Originally Provided on Credit ZIP Date of Original Extension of Credit Name Street Address 5 City State Services or Goods Originally Provided on Credit ZIP Date of Original Extension of Credit Enter total only if last page of schedule (transfer the total received this period to “Summary of Receipts,” line 7(b)) Schedule A(7)(b), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Election Cycle COMMITTEE ID NUMBER STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT JOINT FUNDRAISING / SHARED EXPENSE PAYMENTS RECEIVED: SCHEDULE A(8) Payor Committee Information Committee Name Payment Amount Payment Date Street Address 1 City Date of Joint Fundraising Event (if applicable) State ZIP Type of Shared Expense (if applicable) Committee Name Payment Date Street Address 2 City Date of Joint Fundraising Event (if applicable) State ZIP Type of Shared Expense (if applicable) Committee Name Payment Date Street Address 3 City Date of Joint Fundraising Event (if applicable) State ZIP Type of Shared Expense (if applicable) Committee Name Payment Date Street Address 4 City Date of Joint Fundraising Event (if applicable) State ZIP Type of Shared Expense (if applicable) Committee Name Payment Date Street Address 5 City Date of Joint Fundraising Event (if applicable) State ZIP Type of Shared Expense (if applicable) Enter total only if last page of schedule (transfer the total received this period to “Summary of Receipts,” line 8) Schedule A(8), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle COMMITTEE ID NUMBER STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT PAYMENTS RECEIVED FOR GOODS/SERVICES: SCHEDULE A(9) Payor Information Payment Amount Name Street Address 1 City State Services or Goods Purchased ZIP Payment Date Name Street Address 2 City State Services or Goods Purchased ZIP Payment Date Name Street Address 3 City State Services or Goods Purchased ZIP Payment Date Name Street Address 4 City State Services or Goods Purchased ZIP Payment Date Name Street Address 5 City State Services or Goods Purchased ZIP Payment Date Enter total only if last page of schedule (transfer the total received this period to “Summary of Receipts,” line 9) Schedule A(9), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle COMMITTEE ID NUMBER STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT SCHEDULE A(10) OUTSTANDING ACCOUNTS RECEIVABLE / DEBTS OWED TO COMMITTEE: Information Amount Name Street Address 1 City State Type of Account Receivable or Debt Owed ZIP Date that Debt Accrued Name Street Address 2 City State Type of Account Receivable or Debt Owed ZIP Date that Debt Accrued Name Street Address 3 City State Type of Account Receivable or Debt Owed ZIP Date that Debt Accrued Name Street Address 4 City State Type of Account Receivable or Debt Owed ZIP Date that Debt Accrued Name Street Address 5 City State Type of Account Receivable or Debt Owed ZIP Date that Debt Accrued Enter total only if last page of schedule (transfer the total received this period to “Summary of Receipts,” line 10) Schedule A(10), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT TRANSFER IN SURPLUS MONIES / TRANSFER OUT DEBT: COMMITTEE ID NUMBER SCHEDULE A(11) Cumulative Amount this Reporting Period Source of Surplus Monies / Recipient of Transferred Debt Source of Surplus Monies / Recipient of Transferred Debt Source of Surplus Monies / Recipient of Transferred Debt Source of Surplus Monies / Recipient of Transferred Debt Source of Surplus Monies / Recipient of Transferred Debt Total (transfer the total received this period to “Summary of Receipts,” line 11) Schedule A(11), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Election Cycle COMMITTEE ID NUMBER STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT MISCELLANEOUS RECEIPTS: SCHEDULE A(12) Source Information Amount Name Street Address 1 City State Receipt Type ZIP Receipt Date Name Street Address 2 City State Receipt Type ZIP Receipt Date Name Street Address 3 City State Receipt Type ZIP Receipt Date Name Street Address 4 City State Receipt Type ZIP Receipt Date Name Street Address 5 City State Receipt Type ZIP Receipt Date Enter total only if last page of schedule (transfer the total received this period to “Summary of Receipts,” line 12) Schedule A(12), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT COMMITTEE ID NUMBER DISBURSEMENTS FOR OPERATING EXPENSES: SCHEDULE B(1) Recipient Information Name Amount Paid Disbursement Date Street Address 1 City State ZIP Type of Operating Expense Paid Non-Electoral Purpose? (PACs and Political Parties Only)  Cash  Credit  Name Disbursement Date Street Address 2 City State ZIP Type of Operating Expense Paid Non-Electoral Purpose? (PACs and Political Parties Only)  Cash  Credit  Name Disbursement Date Street Address 3 City State ZIP Type of Operating Expense Paid Non-Electoral Purpose? (PACs and Political Parties Only)  Cash  Credit  Name Disbursement Date Street Address 4 City State ZIP Type of Operating Expense Paid Non-Electoral Purpose? (PACs and Political Parties Only)  Cash  Credit  Name Disbursement Date Street Address 5 City State ZIP Type of Operating Expense Paid Non-Electoral Purpose? (PACs and Political Parties Only)  Cash  Credit  Enter total only if last page of schedule (transfer the total disbursed this period to “Summary of Disbursements,” line 1) Schedule B(1), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle COMMITTEE ID NUMBER STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT MONETARY CONTRIBUTIONS TO CANDIDATE COMMITTEES: SCHEDULE B(2)(a) Amount Contributed Candidate Committee Recipient Information Committee Name Street Address 1 City State ZIP Committee ID Number Date Contribution Made  Cash  Credit Committee Name Street Address 2 City State ZIP Committee ID Number Date Contribution Made  Cash  Credit Committee Name Street Address 3 City State ZIP Committee ID Number Date Contribution Made  Cash  Credit Committee Name Street Address 4 City State ZIP Committee ID Number Date Contribution Made  Cash  Credit Committee Name Street Address 5 City State ZIP Committee ID Number Date Contribution Made  Cash  Credit Enter total only if last page of schedule (transfer the total disbursed this period to “Summary of Disbursements,” line 2(a)) Schedule B(2)(a), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle COMMITTEE ID NUMBER STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT MONETARY CONTRIBUTIONS TO POLITICAL ACTION COMMITTEES: SCHEDULE B(2)(b) Amount Contributed Political Action Committee Recipient Information Committee Name Street Address 1 City State ZIP Committee ID Number Date Contribution Made  Cash  Credit Committee Name Street Address 2 City State ZIP Committee ID Number Date Contribution Made  Cash  Credit Committee Name Street Address 3 City State ZIP Committee ID Number Date Contribution Made  Cash  Credit Committee Name Street Address 4 City State ZIP Committee ID Number Date Contribution Made  Cash  Credit Committee Name Street Address 5 City State ZIP Committee ID Number Date Contribution Made  Cash  Credit Enter total only if last page of schedule (transfer the total disbursed this period to “Summary of Disbursements,” line 2(b)) Schedule B(2)(b), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle COMMITTEE ID NUMBER STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT MONETARY CONTRIBUTIONS TO POLITICAL PARTIES: SCHEDULE B(2)(c) Amount Contributed Political Party Recipient Information Committee Name Street Address 1 City State ZIP Committee ID Number Date Contribution Made  Cash  Credit Committee Name Street Address 2 City State ZIP Committee ID Number Date Contribution Made  Cash  Credit Committee Name Street Address 3 City State ZIP Committee ID Number Date Contribution Made  Cash  Credit Committee Name Street Address 4 City State ZIP Committee ID Number Date Contribution Made  Cash  Credit Committee Name Street Address 5 City State ZIP Committee ID Number Date Contribution Made  Cash  Credit Enter total only if last page of schedule (transfer the total disbursed this period to “Summary of Disbursements,” line 2(c)) Schedule B(2)(c), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle COMMITTEE ID NUMBER STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT MONETARY CONTRIBUTIONS TO PARTNERSHIPS: SCHEDULE B(2)(d) Amount Contributed Partnership Recipient Information Partnership Name Street Address 1 City State ZIP Corporation Commission File Number Date Contribution Made  Cash  Credit Partnership Name Street Address 2 City State ZIP Corporation Commission File Number Date Contribution Made  Cash  Credit Partnership Name Street Address 3 City State ZIP Corporation Commission File Number Date Contribution Made  Cash  Credit Partnership Name Street Address 4 City State ZIP Corporation Commission File Number Date Contribution Made  Cash  Credit Partnership Name Street Address 5 City State ZIP Corporation Commission File Number Date Contribution Made  Cash  Credit Enter total only if last page of schedule (transfer the total disbursed this period to “Summary of Disbursements,” line 2(d)) Schedule B(2)(d), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle COMMITTEE ID NUMBER STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT MONETARY CONTRIBUTIONS TO CORPORATIONS AND LLCs: SCHEDULE B(2)(e) Amount Contributed Corporation / LLC Recipient Information Corporation/LLC Name Street Address 1 City State ZIP Corporation Commission File Number Date Contribution Made  Cash  Credit Corporation/LLC Name Street Address 2 City State ZIP Corporation Commission File Number Date Contribution Made  Cash  Credit Corporation/LLC Name Street Address 3 City State ZIP Corporation Commission File Number Date Contribution Made  Cash  Credit Corporation/LLC Name Street Address 4 City State ZIP Corporation Commission File Number Date Contribution Made  Cash  Credit Corporation/LLC Name Street Address 5 City State ZIP Corporation Commission File Number Date Contribution Made  Cash  Credit Enter total only if last page of schedule (transfer the total disbursed this period to “Summary of Disbursements,” line 2(e)) Schedule B(2)(e), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle COMMITTEE ID NUMBER STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT MONETARY CONTRIBUTIONS TO LABOR ORGANIZATIONS: SCHEDULE B(2)(f) Amount Contributor Labor Organization Recipient Information Labor Organization Name Street Address 1 City State ZIP Corporation Commission File Number Date Contribution Made  Cash  Credit Labor Organization Name Street Address 2 City State ZIP Corporation Commission File Number Date Contribution Made  Cash  Credit Labor Organization Name Street Address 3 City State ZIP Corporation Commission File Number Date Contribution Made  Cash  Credit Labor Organization Name Street Address 4 City State ZIP Corporation Commission File Number Date Contribution Made  Cash  Credit Labor Organization Name Street Address 5 City State ZIP Corporation Commission File Number Date Contribution Made  Cash  Credit Enter total only if last page of schedule (transfer the total disbursed this period to “Summary of Disbursements,” line 2(f)) Schedule B(2)(f), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT COMMITTEE ID NUMBER CONTRIBUTION REFUNDS RECEIVED: SCHEDULE B(2)(h) Amount Refunded Committee Information Committee Name Date Refund Received Street Address 1 City State ZIP Committee ID Number Date of Original Contribution Committee Name Date Refund Received Street Address 2 City State ZIP Committee ID Number Date of Original Contribution Committee Name Date Refund Received Street Address 3 City State ZIP Committee ID Number Date of Original Contribution Committee Name Date Refund Received Street Address 4 City State ZIP Committee ID Number Date of Original Contribution Committee Name Date Refund Received Street Address 5 City State ZIP Committee ID Number Date of Original Contribution Enter total only if last page of schedule (transfer the total disbursed this period to “Summary of Disbursements,” line 2(h)) Schedule B(2)(h), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle COMMITTEE ID NUMBER STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT SCHEDULE B(3)(a) LOANS MADE: Borrower Information Amount Loaned Borrower Name Street Address 1 City State ZIP Guarantor/Endorser Name Date Loan Made Borrower Name Street Address 2 City State ZIP Guarantor/Endorser Name Date Loan Made Borrower Name Street Address 3 City State ZIP Guarantor/Endorser Name Date Loan Made Borrower Name Street Address 4 City State ZIP Guarantor/Endorser Name Date Loan Made Borrower Name Street Address 5 City State ZIP Guarantor/Endorser Name Date Loan Made Enter total only if last page of schedule (transfer the total disbursed this period to “Summary of Disbursements,” line 3) Schedule B(3)(a), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT COMMITTEE ID NUMBER LOAN GUARANTEES MADE: SCHEDULE B(3)(b) Amount Guaranteed Guarantor Information Guarantor Name Street Address 1 City State ZIP Borrower Name Date Loan Guaranteed Guarantor Name Street Address 2 City State ZIP Borrower Name Date Loan Guaranteed Guarantor Name Street Address 3 City State ZIP Borrower Name Date Loan Guaranteed Guarantor Name Street Address 4 City State ZIP Borrower Name Date Loan Guaranteed Guarantor Name Street Address 5 City State ZIP Borrower Name Date Loan Guaranteed Enter total only if last page of schedule (transfer the total disbursed this period to “Summary of Disbursements,” line 3(b)) Schedule B(3)(b), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle COMMITTEE ID NUMBER STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT FORGIVENESS ON LOANS MADE: SCHEDULE B(3)(c) Borrower Information Amount Forgiven Borrower Name Date Forgiveness Made Street Address 1 City State ZIP Original Amount of Loan Amount Still Outstanding Borrower Name Date Forgiveness Made Street Address 2 City State ZIP Original Amount of Loan Amount Still Outstanding Borrower Name Date Forgiveness Made Street Address 3 City State ZIP Original Amount of Loan Amount Still Outstanding Borrower Name Date Forgiveness Made Street Address 4 City State ZIP Original Amount of Loan Amount Still Outstanding Borrower Name Date Forgiveness Made Street Address 5 City State ZIP Original Amount of Loan Amount Still Outstanding Enter total only if last page of schedule (transfer the total disbursed this period to “Summary of Disbursements,” line 3(c)) Schedule B(3)(c), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle COMMITTEE ID NUMBER STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT REPAYMENT ON LOANS RECEIVED: SCHEDULE B(3)(d) Lender Information Amount Repaid Lender Name Date Repayment Made Street Address 1 City State ZIP Original Amount Borrowed Amount Still Outstanding Lender Name Date Repayment Made Street Address 2 City State ZIP Original Amount Borrowed Amount Still Outstanding Lender Name Date Repayment Made Street Address 3 City State ZIP Original Amount Borrowed Amount Still Outstanding Lender Name Date Repayment Made Street Address 4 City State ZIP Original Amount Borrowed Amount Still Outstanding Lender Name Date Repayment Made Street Address 5 City State ZIP Original Amount Borrowed Amount Still Outstanding Enter total only if last page of schedule (transfer the total disbursed this period to “Summary of Disbursements,” line 3(d)) Schedule B(3)(d), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle COMMITTEE ID NUMBER STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT SCHEDULE B(3)(e) INTEREST ACCRUED ON LOANS RECEIVED: Amount of Interest Accrued Lender Information Lender Name Date Interest Accrued Street Address 1 City State ZIP Original Amount Borrowed Amount Still Outstanding Lender Name Date Interest Accrued Street Address 2 City State ZIP Original Amount Borrowed Amount Still Outstanding Lender Name Date Interest Accrued Street Address 3 City State ZIP Original Amount Borrowed Amount Still Outstanding Lender Name Date Interest Accrued Street Address 4 City State ZIP Original Amount Borrowed Amount Still Outstanding Lender Name Date Interest Accrued Street Address 5 City State ZIP Original Amount Borrowed Amount Still Outstanding Enter total only if last page of schedule (transfer the total disbursed this period to “Summary of Disbursements,” line 3(e)) Schedule B(3)(e), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle COMMITTEE ID NUMBER STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT REBATES AND REFUNDS MADE (NON-CONTRIBUTIONS): SCHEDULE B(4) Amount Rebated / Refunded Recipient Information Name of Original Payor Date Rebate/Refund Made Street Address 1 City State ZIP Corporation Commission File Number (if applicable) Original Payment Amount Name of Original Payor Date of Original Payment Date Rebate/Refund Made Street Address 2 City State ZIP Corporation Commission File Number (if applicable) Original Payment Amount Name of Original Payor Date of Original Payment Date Rebate/Refund Made Street Address 3 City State ZIP Corporation Commission File Number (if applicable) Original Payment Amount Name of Original Payor Date of Original Payment Date Rebate/Refund Made Street Address 4 City State ZIP Corporation Commission File Number (if applicable) Original Payment Amount Name of Original Payor Date of Original Payment Date Rebate/Refund Made Street Address 5 City State ZIP Corporation Commission File Number (if applicable) Original Payment Amount Date of Original Payment Enter total only if last page of schedule (transfer the total disbursed this period to “Summary of Disbursements,” line 4) Schedule B(4), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle COMMITTEE ID NUMBER STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT IN-KIND CONTRIBUTIONS TO CANDIDATE COMMITTEES: SCHEDULE B(5)(a) Amount Contributed Candidate Committee Recipient Information Committee Name Street Address 1 City State ZIP Committee ID Number Date In-Kind Contribution Made Committee Name Street Address 2 City State ZIP Committee ID Number Date In-Kind Contribution Made Committee Name Street Address 3 City State ZIP Committee ID Number Date In-Kind Contribution Made Committee Name Street Address 4 City State ZIP Committee ID Number Date In-Kind Contribution Made Committee Name Street Address 5 City State ZIP Committee ID Number Date In-Kind Contribution Made Enter total only if last page of schedule (transfer the total disbursed this period to “Summary of Disbursements,” line 5(a)) Schedule B(5)(a), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle COMMITTEE ID NUMBER STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT IN-KIND CONTRIBUTIONS TO POLITICAL ACTION COMMITTEES: SCHEDULE B(5)(b) Amount Contributed Political Action Committee Recipient Information Committee Name Street Address 1 City State ZIP Committee ID Number Date In-Kind Contribution Made Committee Name Street Address 2 City State ZIP Committee ID Number Date In-Kind Contribution Made Committee Name Street Address 3 City State ZIP Committee ID Number Date In-Kind Contribution Made Committee Name Street Address 4 City State ZIP Committee ID Number Date In-Kind Contribution Made Committee Name Street Address 5 City State ZIP Committee ID Number Date In-Kind Contribution Made Enter total only if last page of schedule (transfer the total disbursed this period to “Summary of Disbursements,” line 5(b)) Schedule B(5)(b), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle COMMITTEE ID NUMBER STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT IN-KIND CONTRIBUTIONS TO POLITICAL PARTIES: SCHEDULE B(5)(c) Amount Contributed Political Party Recipient Information Committee Name Street Address 1 City State ZIP Committee ID Number Date In-Kind Contribution Made Committee Name Street Address 2 City State ZIP Committee ID Number Date In-Kind Contribution Made Committee Name Street Address 3 City State ZIP Committee ID Number Date In-Kind Contribution Made Committee Name Street Address 4 City State ZIP Committee ID Number Date In-Kind Contribution Made Committee Name Street Address 5 City State ZIP Committee ID Number Date In-Kind Contribution Made Enter total only if last page of schedule (transfer the total disbursed this period to “Summary of Disbursements,” line 5(c)) Schedule B(5)(c), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle COMMITTEE ID NUMBER STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT IN-KIND CONTRIBUTIONS TO PARTNERSHIPS: SCHEDULE B(5)(d) Amount Contributed Partnership Recipient Information Partnership Name Street Address 1 City State ZIP Corporation Commission File Number Date In-Kind Contribution Made Partnership Name Street Address 2 City State ZIP Corporation Commission File Number Date In-Kind Contribution Made Partnership Name Street Address 3 City State ZIP Corporation Commission File Number Date In-Kind Contribution Made Partnership Name Street Address 4 City State ZIP Corporation Commission File Number Date In-Kind Contribution Made Partnership Name Street Address 5 City State ZIP Corporation Commission File Number Date In-Kind Contribution Made Enter total only if last page of schedule (transfer the total disbursed this period to “Summary of Disbursements,” line 5(d)) Schedule B(5)(d), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle COMMITTEE ID NUMBER STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT IN-KIND CONTRIBUTIONS TO CORPORATIONS AND LLCs: SCHEDULE B(5)(e) Amount Contributed Corporation / LLC Recipient Information Corporation/LLC Name Street Address 1 City State ZIP Corporation Commission File Number Date In-Kind Contribution Made Corporation/LLC Name Street Address 2 City State ZIP Corporation Commission File Number Date In-Kind Contribution Made Corporation/LLC Name Street Address 3 City State ZIP Corporation Commission File Number Date In-Kind Contribution Made Corporation/LLC Name Street Address 4 City State ZIP Corporation Commission File Number Date In-Kind Contribution Made Corporation/LLC Name Street Address 5 City State ZIP Corporation Commission File Number Date In-Kind Contribution Made Enter total only if last page of schedule (transfer the total disbursed this period to “Summary of Disbursements,” line 5(e)) Schedule B(5)(e), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle COMMITTEE ID NUMBER STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT IN-KIND CONTRIBUTIONS TO LABOR ORGANIZATIONS: SCHEDULE B(5)(f) Amount Contributed Labor Organization Recipient Information Labor Organization Name Street Address 1 City State ZIP Corporation Commission File Number Date In-Kind Contribution Made Labor Organization Name Street Address 2 City State ZIP Corporation Commission File Number Date In-Kind Contribution Made Labor Organization Name Street Address 3 City State ZIP Corporation Commission File Number Date In-Kind Contribution Made Labor Organization Name Street Address 4 City State ZIP Corporation Commission File Number Date In-Kind Contribution Made Labor Organization Name Street Address 5 City State ZIP Corporation Commission File Number Date In-Kind Contribution Made Enter total only if last page of schedule (transfer the total disbursed this period to “Summary of Disbursements,” line 5(f)) Schedule B(5)(f), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle COMMITTEE ID NUMBER STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT INDEPENDENT EXPENDITURES MADE: SCHEDULE B(6) Expenditure Amount Expenditure Recipient Information Recipient Name Mode of Advertising (TV, mail, etc) Street Address City State ZIP Candidate(s) Supported (including % supported) Candidate(s) Opposed (including % opposed) Date of First Publication, Display, Delivery, or Broadcast Election Month/Year 1 Recipient Name  Cash  Credit Office Sought Mode of Advertising (TV, mail, etc) Street Address City State ZIP Candidate(s) Supported (including % supported) Candidate(s) Opposed (including % opposed) 2  Cash  Credit Date of First Publication, Display, Delivery, or Broadcast Election Month/Year Recipient Name Office Sought Mode of Advertising (TV, mail, etc) Street Address City State ZIP Candidate(s) Supported (including % supported) Candidate(s) Opposed (including % opposed) 3  Cash  Credit Date of First Publication, Display, Delivery, or Broadcast Election Month/Year Recipient Name Office Sought Mode of Advertising (TV, mail, etc) Street Address City State ZIP Candidate(s) Supported (including % supported) Candidate(s) Opposed (including % opposed) 4  Cash  Credit Date of First Publication, Display, Delivery, or Broadcast Election Month/Year Office Sought Enter total only if last page of schedule (transfer the total disbursed this period to “Summary of Disbursements,” line 6) Schedule B(6), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle COMMITTEE ID NUMBER STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT BALLOT MEASURE EXPENDITURES MADE: SCHEDULE B(7) Expenditure Amount Expenditure Recipient Information Recipient Name Mode of Advertising (TV, mail, etc) Street Address City State ZIP Ballot Measure(s) Supported (including % supported) Ballot Measure(s) Opposed (including % opposed) Date of First Publication, Display, Delivery, or Broadcast Election Month/Year 1 Recipient Name  Cash  Credit Mode of Advertising (TV, mail, etc) Street Address City State ZIP Ballot Measure(s) Supported (including % supported) Ballot Measure(s) Opposed (including % opposed) 2  Cash  Credit Date of First Publication, Display, Delivery, or Broadcast Election Month/Year Recipient Name Mode of Advertising (TV, mail, etc) Street Address City State ZIP Ballot Measure(s) Supported (including % supported) Ballot Measure(s) Opposed (including % opposed) 3  Cash  Credit Date of First Publication, Display, Delivery, or Broadcast Election Month/Year Recipient Name Mode of Advertising (TV, mail, etc) Street Address City State ZIP Ballot Measure(s) Supported (including % supported) Ballot Measure(s) Opposed (including % opposed) 4  Cash  Credit Date of First Publication, Display, Delivery, or Broadcast Election Month/Year Enter total only if last page of schedule (transfer the total disbursed this period to “Summary of Disbursements,” line 7) Schedule B(7), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT COMMITTEE ID NUMBER RECALL EXPENDITURES MADE: SCHEDULE B(8) Expenditure Amount Expenditure Recipient Information Recipient Name Mode of Advertising (TV, mail, etc) Street Address City State ZIP Supporting or Opposing Issuance of Recall Order? Candidate Sought to be Recalled 1  Cash  Credit Date of First Publication, Display, Delivery, or Broadcast Office Held Recipient Name Mode of Advertising (TV, mail, etc) Street Address City State ZIP Supporting or Opposing Issuance of Recall Order? Candidate Sought to be Recalled 2  Cash  Credit Date of First Publication, Display, Delivery, or Broadcast Office Held Recipient Name Mode of Advertising (TV, mail, etc) Street Address City State ZIP Supporting or Opposing Issuance of Recall Order? Candidate Sought to be Recalled 3  Cash  Credit Date of First Publication, Display, Delivery, or Broadcast Office Held Recipient Name Mode of Advertising (TV, mail, etc) Street Address City State ZIP Supporting or Opposing Issuance of Recall Order? Candidate Sought to be Recalled 4  Cash  Credit Date of First Publication, Display, Delivery, or Broadcast Office Held Enter total only if last page of schedule (transfer the total disbursed this period to “Summary of Disbursements,” line 8) Schedule B(8), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT COMMITTEE ID NUMBER SUPPORT PROVIDED TO PARTY NOMINEES (POLITICAL PARTIES ONLY): SCHEDULE B(9) Benefitted Candidate Candidate Name Amount Date Benefit Provided Street Address City ZIP State 1 Type of Benefit Provided Notes: Candidate Name Date Benefit Provided Street Address City State ZIP 2 Type of Benefit Provided Notes: Candidate Name Date Benefit Provided Street Address City State ZIP 3 Type of Benefit Provided Notes: Candidate Name Date Benefit Provided Street Address City State ZIP 4 Type of Benefit Provided Notes: Enter total only if last page of schedule (transfer the total disbursed this period to “Summary of Disbursements,” line 9) Schedule B(9), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT COMMITTEE ID NUMBER JOINT FUNDRAISING / SHARED EXPENSE PAYMENTS MADE: SCHEDULE B(10) Recipient Committee Information Committee Name Payment Amount Payment Date Street Address 1 City Date of Joint Fundraising Event (if applicable) State ZIP  Cash  Credit Type of Shared Expense (if applicable) Committee Name Payment Date Street Address 2 City Date of Joint Fundraising Event (if applicable) State ZIP  Cash  Credit Type of Shared Expense (if applicable) Committee Name Payment Date Street Address 3 City Date of Joint Fundraising Event (if applicable) State ZIP  Cash  Credit Type of Shared Expense (if applicable) Committee Name Payment Date Street Address 4 City Date of Joint Fundraising Event (if applicable) State ZIP  Cash  Credit Type of Shared Expense (if applicable) Committee Name Payment Date Street Address 5 City Date of Joint Fundraising Event (if applicable) State ZIP  Cash  Credit Type of Shared Expense (if applicable) Enter total only if last page of schedule (transfer the total disbursed this period to “Summary of Disbursements,” line 10) Schedule B(10), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT COMMITTEE ID NUMBER REIMBURSEMENTS MADE: SCHEDULE B(11) Reimbursement Amount Recipient Information Name Street Address 1 City State ZIP Services or Goods Reimbursed  Cash  Credit Reimbursement Date Name Street Address 2 City State ZIP Services or Goods Reimbursed  Cash  Credit Reimbursement Date Name Street Address 3 City State ZIP Services or Goods Reimbursed  Cash  Credit Reimbursement Date Name Street Address 4 City State ZIP Services or Goods Reimbursed  Cash  Credit Reimbursement Date Name Street Address 5 City State ZIP Services or Goods Reimbursed  Cash  Credit Reimbursement Date Enter total only if last page of schedule (transfer the total disbursed this period to “Summary of Disbursements,” line 11) Schedule B(11), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT COMMITTEE ID NUMBER OUTSTANDING ACCOUNTS PAYABLE / DEBTS OWED BY COMMITTEE: SCHEDULE B(12) Debt Information Amount Name Street Address 1 City State Type of Account Payable or Debt Owed ZIP Date that Debt Accrued Name Street Address 2 City State Type of Account Payable or Debt Owed ZIP Date that Debt Accrued Name Street Address 3 City State Type of Account Payable or Debt Owed ZIP Date that Debt Accrued Name Street Address 4 City State Type of Account Payable or Debt Owed ZIP Date that Debt Accrued Name Street Address 5 City State Type of Account Payable or Debt Owed ZIP Date that Debt Accrued Enter total only if last page of schedule (transfer the total disbursed this period to “Summary of Receipts,” line 12) Schedule B(12), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT TRANSFER OUT SURPLUS MONIES / TRANSFER IN DEBT: COMMITTEE ID NUMBER SCHEDULE B(13) Cumulative Amount this Reporting Period Recipient of Surplus Monies / Source of Transferred Debt Recipient of Surplus Monies / Source of Transferred Debt Recipient of Surplus Monies / Source of Transferred Debt Recipient of Surplus Monies / Source of Transferred Debt Recipient of Surplus Monies / Source of Transferred Debt Total (transfer the total disbursed this period to “Summary of Disbursements,” line 13) Schedule B(13), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Election Cycle STATE OF ARIZONA COMMITTEE CAMPAIGN FINANCE REPORT COMMITTEE ID NUMBER MISCELLANEOUS DISBURSEMENTS: SCHEDULE B(14) Recipient Information Amount Name Street Address 1 City State ZIP Disbursement Type  Cash  Credit Disbursement Date Name Street Address 2 City State ZIP Disbursement Type  Cash  Credit Disbursement Date Name Street Address 3 City State ZIP Disbursement Type  Cash  Credit Disbursement Date Name Street Address 4 City State ZIP Disbursement Type  Cash  Credit Disbursement Date Name Street Address 5 City State ZIP Disbursement Type  Cash  Credit Disbursement Date Enter total only if last page of schedule (transfer the total disbursed this period to “Summary of Disbursements,” line 14) Schedule B(14), page of Arizona Secretary of State Revision 1/03/17 Cumulative Amount this Reporting Period Cumulative Amount this Election Cycle Arizona Campaign Finance: Candidate Committees Appendix E Termination Statement [page intentionally left blank] Department of State, Office of the Secretary of State Election Services Division 128 Date: _______________ STATE OF ARIZONA COMMITTEE TERMINATION STATEMENT COMMITTEE ID NUMBER COMMITTEE INFORMATION: Committee name: Mailing address: Email address: Phone number: Website: Chairperson name: Treasurer: DECLARATION AND SIGNATURES: I declare under penalty of perjury that the foregoing information is true and correct. I further declare that: (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 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; and (4) all contributions and expenditures have been reported, including any disposal of surplus monies. Chairperson’s signature: Date: Treasurer’s signature: Date: Candidate’s signature (if applicable): Date: Arizona Secretary of State Revision 11/5/16 Arizona Campaign Finance: Candidate Committees Appendix F Title 16, Chapter 6 Campaign Contributions and Expenses Article 1 General Provisions in connection with the candidate’s nomination, election or retention for any public office. § 16-901. Definitions In this chapter, requires: unless 8. “Candidate committee” includes the candidate. the context otherwise 1. “Advertisement” means information or materials, other than nonpaid social media messages, that are mailed, e-mailed, posted, distributed, published, displayed, delivered, broadcasted or placed in a communication medium and that are for the purpose of influencing an election. 2. “Affiliate” means any organization that controls, is controlled by or is under common control with a corporation, limited liability company or labor organization. 3. “Agent” means any person who has actual authority, either express or implied, to represent or make decisions on behalf of another person. 4. “Ballot measure expenditure” means an expenditure made by a person that expressly advocates the support or opposition of a clearly identified ballot measure. 5. “Best effort” means that a committee treasurer or treasurer’s agent makes at least one written effort, including an attempt by e-mail, text message, private message through social media or other similar communication, or at least one oral effort that is documented in writing to identify the contributor of an incomplete contribution. 6. “Calendar quarter” means a period of three consecutive calendar months ending on March 31, June 30, September 30 or December 31. 7. “Candidate” means an individual who receives contributions or makes expenditures or who gives consent to another person to receive contributions or make expenditures on behalf of that individual Department of State, Office of the Secretary of State Election Services Division 9. “Clearly identified candidate” means that the name or a description, image, photograph or drawing of the candidate appears or the identity of the candidate is otherwise apparent by unambiguous reference. 10. “Committee” means a candidate committee, a political action committee or a political party. 11. “Contribution” means any money, advance, deposit or other thing of value that is made to a person for the purpose of influencing an election. Contribution includes: (a) A contribution that is made to retire campaign debt from a previous election cycle. (b) Money or the fair market value of anything that is directly or indirectly provided to an elected official for the specific purpose of defraying the expense of communications with constituents. (c) The full purchase price of any item from a committee. (d) A loan that is made to a committee for the purpose of influencing an election, to the extent the loan remains outstanding. 12. “Control” means to possess, directly or indirectly, the power to direct or to cause the direction of the management or policies of another organization, whether through voting power, ownership, contract or otherwise. 13. “Coordinate”, “coordinated” or “coordination” means the coordination of an expenditure as proscribed by § 16-922. 14. “Coordinated party expenditures” means 130 Arizona Campaign Finance: Candidate Committees expenditures that are made by a political party to directly pay for goods or services on behalf of its nominee. 15. “District office” means an elected office established or organized pursuant to title 15 or 48. 16. “Earmarked” means a designation, instruction or encumbrance between the transferor of a contribution and a transferee that requires the transferee to make a contribution to a clearly identified candidate. 17. “Election” means any election for any ballot measure in this state or any candidate election during a primary, general, recall, special or runoff election for any office in this state other than a federal office and a political party office prescribed by chapter 5, article 2 of this title. 18. “Election cycle” means the two-year period between successive statewide general elections or, for cities and towns, the two-year period between the scheduled date of the city’s or town’s second, runoff or general election and the scheduled date of the immediately following second, runoff or general election, however designated by the city or town. For purposes of a recall election, “election cycle” means the period between issuance of a recall petition serial number and the latest of the following: (a) The date of the recall election that is called pursuant to § 19-209. (b) The date that a resignation is accepted pursuant to § 19-208. (c) The date that the receiving officer provides notice pursuant to § 19-208.01 that the number of signatures is insufficient. 19. “Employee” means an individual who is entitled to compensation for labor or services performed for the individual’s employer. 20. “Employer” means any person that pays compensation to and directs the labor or services of any individual in the course of employment. 21. “Enforcement officer” means the attorney general or the county, city or town attorney with authority Department of State, Office of the Secretary of State Election Services Division to collect fines or issue penalties with respect to a given election pursuant to § 16-938. 22. “Entity” means a corporation, limited liability company, labor organization, partnership, trust, association, organization, joint venture, cooperative, unincorporated organization or association or other organized group that consists of more than one individual. 23. “Excess contribution” means a contribution that exceeds the applicable contribution limits for a particular election. 24. “Exclusive insurance contract” means an insurance producer’s contract with an insurer that does either of the following: (a) Prohibits the producer from soliciting insurance business for any other insurer. (b) Requires a first right of refusal on all lines of insurance business written by the insurer and solicited by the producer. 25. “Expenditure” means any purchase, payment or other thing of value that is made by a person for the purpose of influencing an election. 26. “Family contribution” means any contribution that is provided to a candidate’s committee by the parent, grandparent, aunt, uncle, child or sibling of the candidate or the candidate’s spouse, including the spouse of any of the listed family members, regardless of whether the relation is established by marriage or adoption. 27. “Filing officer” means the secretary of state or the county, city or town officer in charge of elections for that jurisdiction who accepts statements and reports for those elections pursuant to § 16-928. 28. “Firewall” means a written policy that precludes one person from sharing information with another person. 29. “Identification” or “identify” means: (a) For an individual, the individual’s first and last name, residence location or street address and occupation and the name of the individual’s primary employer. 131 Arizona Campaign Finance: Candidate Committees (b) For any other person, the person’s full name and physical location or street address. 30. “Incomplete contribution” means any contribution that is received by a committee for which the contributor’s complete identification has not been obtained. 31. “Independent expenditure” means an expenditure by a person, other than a candidate committee, that complies with both of the following: (a) Expressly advocates the election or defeat of a clearly identified candidate. (b) Is not made in cooperation or consultation with or at the request or suggestion of the candidate or the candidate’s agent. 32. “In-kind contribution” means a contribution of goods, services or anything of value that is provided without charge or at less than the usual and normal charge. 33. “Insurance producer” means a person that: (a) Is required to be licensed to sell, solicit or negotiate insurance. (b) Has an exclusive insurance contract with an insurer. 34. “Itemized” means that each contribution received or expenditure made is set forth separately. 35. “Labor organization” means any employee representation organization that exists for the purpose of dealing with employers concerning grievances, labor disputes, wages, rates of pay, hours of employment or other conditions of employment. 36. “Legislative office” means the office of representative in the state house of representatives or senator in the state senate. 37. “Mega PAC status” means official recognition that a political action committee has received contributions from five hundred or more individuals in amounts of ten dollars or more in the four-year period immediately before application to the secretary of state. Department of State, Office of the Secretary of State Election Services Division 38. “Nominee” means a candidate who prevails in a primary election for partisan office and includes the nominee’s candidate committee. 39. “Person” means an individual or a candidate, nominee, committee, corporation, limited liability company, labor organization, partnership, trust, association, organization, joint venture, cooperative or unincorporated organization or association. 40. “Personal monies” means any of the following: (a) Assets to which the individual or individual’s spouse has either legal title or an equitable interest. (b) Salary and other earned income from bona fide employment of the individual or individual’s spouse. (c) Dividends and proceeds from the sale of investments of the individual or individual’s spouse. (d) Bequests to the individual or individual’s spouse. (e) Income to the individual or individual’s spouse from revocable trusts for which the individual or individual’s spouse is a beneficiary. (f) Gifts of a personal nature to the individual or individual’s spouse that would have been given regardless of whether the individual became a candidate or accepted a contribution. (g) The proceeds of loans obtained by the individual or individual’s spouse that are secured by collateral or security provided by the individual or individual’s spouse. (h) Family contributions. 41. “Political action committee” means an entity that is required to register as a political action committee pursuant to § 16-905. 42. “Political party” means a committee that meets the requirements for recognition as a political party pursuant to chapter 5 of this title. 43. “Primary purpose” means an entity’s predominant purpose. Notwithstanding any other law or rule, an entity is not organized for the primary purpose of influencing an election if all of the following apply at the time the contribution or 132 Arizona Campaign Finance: Candidate Committees expenditure is made: prescribed by the secretary of state. (a) The entity has tax exempt status under section 501(a) of the internal revenue code. 49. “Statewide office” means the office of governor, secretary of state, state treasurer, attorney general, superintendent of public instruction, corporation commissioner or mine inspector. (b) Except for a religious organization, assembly or institution, the entity has properly filed a form 1023 or form 1024 with the internal revenue service or the equivalent successor form designated by the internal revenue service. (c) The entity’s tax exempt status has not been denied or revoked by the internal revenue service. (d) The entity remains in good standing with the corporation commission. (e) The entity has properly filed a form 990 with the internal revenue service or the equivalent successor form designated by the internal revenue service in compliance with the most recent filing deadline established by internal revenue service regulations or policies. 44. “Retention” means the election process by which a superior court judge, appellate court judge or supreme court justice is retained in office as prescribed by article VI, section 38 or 40, Constitution of Arizona. 45. “Separate segregated fund” means a fund established by a corporation, limited liability company, labor organization or partnership that is required to register as a political action committee. 46. “Social media messages” means forms of communication, including internet sites for social networking or blogging, through which users create a personal profile and participate in online communities to share information, ideas and personal messages. 47. “Sponsor” means any person that establishes, administers or contributes financial support to the administration of a political action committee or that has common or overlapping membership or officers with that political action committee. 48. “Standing committee” means a political action committee or political party that is active in more than one reporting jurisdiction in this state and that files a statement of organization in a format Department of State, Office of the Secretary of State Election Services Division 50. “Surplus monies” means those monies of a terminating committee that remain after all of the committee’s expenditures have been made, all debts have been extinguished and the committee ceases accepting contributions. Article 1.1 Establishment of Committee § 16-905. Committee qualification; requirements; exemption; adjustments A. A candidate for election or retention shall register as a candidate committee if the candidate receives contributions or makes expenditures, in any combination, of at least one thousand dollars in connection with that candidacy. B. An entity shall 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. 2. The entity knowingly receives contributions or makes expenditures, in any combination, of at least one thousand dollars in connection with any election during a calendar year. C. A filing officer or enforcement officer shall make a rebuttable presumption that an entity is organized for the primary purpose of influencing the result of an election if the entity meets any of the following: 1. Except for a religious organization, assembly or institution, claims tax exempt status but had not filed form 1023 or form 1024 with the internal revenue service, or the equivalent successor form designated by the internal revenue service, before making a contribution or expenditure. 133 Arizona Campaign Finance: Candidate Committees 2. Made a contribution or expenditure and at that time had its tax exempt status revoked by the internal revenue service. 3. Made a contribution or expenditure and at that time failed to file form 990 with the internal revenue service, or the equivalent successor form designated by the internal revenue service, if required by law. 4. At the time of making a contribution or expenditure was not registered with the corporation commission if required by law. 5. At the time of making a contribution or expenditure was registered with the corporation commission but was not in good standing. D. A fund that is established by a corporation, limited liability company, labor organization or partnership for the purpose of influencing the result of an election shall register as a political action committee. E. An entity may register as a political party committee only as prescribed in chapter 5 of this title. F. A committee is not subject to state income tax and is not required to file a state income tax return. G. The dollar amounts prescribed by this section shall be increased every two years pursuant to § 16931. § 16-906. Committee statement of organization; amendment; committee limitation A. A committee shall file a statement of organization with the filing officer within ten days after qualifying as a committee. B. A statement of organization shall include the following committee information: 1. The committee name, mailing address, e-mail address, website, if any, telephone number, if any, and type of committee. The committee name shall Department of State, Office of the Secretary of State Election Services Division include: (a) For a candidate committee, the candidate’s first or last name and office sought. (b) For a political action committee that is sponsored, the sponsor’s name or commonly known nickname. 2. The name, mailing address, e-mail address, website, if any, and telephone number of any sponsor. 3. The name, physical location or street address, email address, telephone number, occupation and employer of the committee’s chairperson and treasurer. For a candidate committee, the candidate may serve as both chairperson and treasurer. 4. For a candidate committee for a partisan office, the candidate’s party affiliation. 5. A listing of all banks or other institutions used by the committee. financial 6. A statement that the committee chairperson and committee treasurer have read the filing officer’s campaign finance and reporting guide, agree to comply with this article and articles 1.2, 1.3, 1.4, 1.5, 1 1.6 and 1.7 of this chapter, and agree to accept all notifications and service of process via the e-mail address provided by the committee. C. A committee shall file an amended statement of organization within ten days after any change in committee information. D. On filing a statement of organization, the filing officer shall issue an identification number to the committee. E. A standing committee shall file a statement of organization with the secretary of state and a copy of the statement in each jurisdiction in which the committee is active. Only the secretary of state shall issue an identification number. F. A candidate may have only one committee in existence for the same office during the same election cycle. G. On filing a statement of organization, a political action committee or political party may perform 134 Arizona Campaign Finance: Candidate Committees any lawful activity, including making contributions, making expenditures or conducting issue advocacy, without establishing a separate committee for each activity or specifying each activity in its statement of organization. § 16-907. Committee recordkeeping; treasurer; accounts A. A committee treasurer is the custodian of the committee’s books and accounts. A committee may not make a contribution, expenditure or disbursement without the authorization of the treasurer or the treasurer’s designated agent. B. All committee monies shall be deposited in one or more bank accounts held by the financial institutions listed in the committee’s statement of organization. Committee bank accounts shall be segregated as follows: 1. Committee monies shall be segregated different bank accounts from personal monies. in 2. Contributions from individuals, partnerships, candidate committees, political action committees or political parties shall be segregated in different bank accounts from contributions from other donors. 3. Contributions to a political party to defray operating expenses or support party-building activities shall be segregated in different bank accounts from contributions used to support candidates. 4. For a committee that is a political party, the committee may commingle monies from any source in a single bank account if the account is maintained as prescribed in 11 Code of Federal Regulations section 106.7. 5. For contributions intended to influence a recall election, the committee shall segregate those contributions into bank accounts that are different from those intended to influence any other election and those recall contributions may not be used to influence any other election. Department of State, Office of the Secretary of State Election Services Division C. A committee shall exercise its best effort to obtain the required information for any incomplete contribution received that is required to be itemized and reported. The committee shall clearly ask for identification and inform the contributor that the committee is required by law to seek identification. The committee shall report in an amended report any contributor identification obtained after the contribution has been disclosed on a campaign finance report. D. A committee shall keep records of the following: 1. All contributions made or received by the committee. 2. The identification of any contributor that contributes in the aggregate at least fifty dollars to the committee during the election cycle, the date and amount of each contribution and the date of deposit into the committee’s account. 3. Cumulative totals contributed contributor during the election cycle. by each 4. The name and address of every person that receives a contribution, expenditure or disbursement from the committee, including the date and amount, and, for any expenditure or disbursement, the purpose of the expenditure or disbursement. E. A committee may accept a cash contribution. F. A committee may accept a contribution by written or electronic instrument, including a check, credit card, payroll deduction, online payment or electronic transfer, if the contributor is an account holder of the instrument. Unless designated as a joint contribution, a contribution shall be attributed to the account holder that signs the instrument or authorizes the transaction. G. A committee shall preserve all records required to be kept by this section for two years following the end of the election cycle. H. On request of the filing officer or enforcement officer, a committee that has filed a statement of organization shall produce any of the records required to be kept pursuant to this section to the filing officer or enforcement officer. 135 Arizona Campaign Finance: Candidate Committees I. A person that qualifies as a committee as prescribed by § 16-905 shall report all contributions, expenditures and disbursements that occurred before qualifying as a committee and shall maintain and produce records as prescribed by this section. § 16-908. Mega PAC status qualification A. A political action committee may apply to the secretary of state for mega PAC status. B. A political action committee qualifies for mega PAC status if it receives at least ten dollars in contributions from at least five hundred individuals in the four-year period immediately before application to the secretary of state. C. If the applicant demonstrates it has met the requirements for mega PAC status, the secretary of state shall provide written certification to the political action committee of its mega PAC status, which status is valid for four years. Article 1.2 Contributions § 16-911. Exemption from definition of contribution by the individual or any other person and if the emails, social media messages or other internet activities do not contain or include transmittal of a paid advertisement or paid fund-raising solicitation. 2. The costs incurred for covering or carrying a news story, commentary or editorial by a broadcasting station or cable television operator, an internet website, a newspaper or another periodical publication, including an internet-based or electronic publication, if the cost for the news story, commentary or editorial is not paid for by and the medium is not owned or under the control of a candidate or committee. 3. Any payment to defray the expense of an elected official meeting with constituents or attending an informational tour, conference, seminar or presentation, if the payor or the elected official does not attempt to influence the result of an election and the payment is reported if required pursuant to title 38, chapter 3.1 or title 41, chapter 7, article 8.1, or both. 4. The payment by a political party to support its nominee, including: (a) The printing or distribution of, or postage expenses for, voter guides, sample ballots, pins, bumper stickers, handbills, brochures, posters, yard signs and other similar materials distributed through the party. (b) Coordinated political party expenditures. A. A person may make any contribution not otherwise prohibited by law. B. The following are not contributions: 1. The value of an individual’s volunteer services or expenses that are provided without compensation or reimbursement, including the individual’s: 5. The payment by any person to defray a political party’s operating expenses or party-building activities, including: (a) Party staff and personnel. (b) Studies and reports. (a) Travel expenses. (c) Voter registration, recruitment, polling and turnout efforts. (b) Use of real or personal property. (d) Party conventions and party meetings. (c) Cost of invitations, food or beverages. (e) Construction, purchase buildings or facilities. (d) Use of e-mail, internet activity or social media messages, only if the individual’s use is not paid for 6. The value of any of the following to a committee: Department of State, Office of the Secretary of State Election Services Division or lease of party 136 Arizona Campaign Finance: Candidate Committees (a) Interest earned on the committee’s deposits or investments. (b) Transfers between committees to reimburse expenses and distribute monies raised through a joint fund-raising effort, if the transfers comply with an agreement to reimburse and distribute monies that was executed before the joint fund-raising effort occurred. (c) Payment of a committee’s legal or accounting expenses by any person. (d) An extension of credit for goods and services on a committee’s behalf by a creditor if the terms are substantially similar to extensions of credit to nonpolitical debtors that are of similar risk and size of obligation. The creditor must make a commercially reasonable attempt to collect the debt, except that if an extension of credit remains unsatisfied by the committee after six months the committee is deemed to have received a contribution but the creditor is not deemed to have made a contribution. 7. The value of nonpartisan communications that are intended to encourage voter registration and turnout efforts. 8. Any payment to a filing officer for arguments in a publicity pamphlet. 9. The payment by any sponsor or its affiliate for the costs of establishing, administering and soliciting contributions from its employees, members, executives, stockholders and retirees and their families to the sponsor’s separate segregated fund. 10. Any payment by any entity for the costs of communicating with its employees, members, executives, stockholders and retirees and their families about any subject, without regard to whether those communications are made in coordination with any candidate or candidate’s agent. 11. The value of allowing a candidate or a committee’s representative to appear at any private residence or at the facilities of any entity to speak about the candidate’s campaign or about a ballot measure, if the venue is furnished by the venue’s Department of State, Office of the Secretary of State Election Services Division owner, is not paid for by a third party and is not a sports stadium, coliseum, convention center, hotel ballroom, concert hall or other similar arena that is generally open to the public. 12. The costs of hosting a debate or candidates’ forum, if at least two opposing candidates, with respect to any given office sought, or representatives of at least two opposing ballot measure campaigns, with respect to any measure on the ballot, are invited with the same or similar advance notice and method of invitation. 13. The preparation and distribution of voter guides, subject to the following: (a) A featured candidate or ballot measure shall not receive greater prominence or substantially more space in the voter guide than any other candidate or ballot measure. (b) The voter guide shall not include any message that constitutes express advocacy. 14. Monies that are loaned by a financial institution in the ordinary course of business and not for the purpose of influencing the results of an election, except that the loan is deemed a pro rata contribution by any endorser or guarantor, other than the candidate’s spouse. 15. The costs of publishing a book or producing a documentary, if the publication and production are for distribution to the general public through traditional distribution mechanisms or a fee is obtained for the purchase of the publication or viewing of the documentary. C. This section does not imply that any transactions that are not specifically listed in subsection B of this section are contributions unless those transactions otherwise meet the definition of contribution as defined in § 16-901. § 16-912. Individual contribution limits; requirements A. An individual may not contribute more than the following amounts per election cycle: 137 Arizona Campaign Finance: Candidate Committees 1. Six thousand two hundred fifty dollars to a candidate committee for city, town, county or district office. 2. Six thousand two hundred fifty dollars to a candidate committee for legislative office. 3. Six thousand two hundred fifty dollars to a candidate committee for statewide office. B. An individual may make unlimited contributions to persons other than candidate committees. C. An individual may only make contributions using personal monies, except that a contribution from an unemancipated minor child shall be treated as a contribution by the child’s custodial parent or parents. § 16-913. Candidate committee contribution limits; requirements A. A candidate committee shall not make contributions to a candidate committee for another candidate. B. A candidate committee may transfer unlimited contributions to any one or more other candidate committees for that same candidate under the following conditions: 1. A candidate committee for a city or town candidate shall not transfer contributions to that same candidate’s committee for a statewide or legislative office. 2. If a candidate committee for a city or town office transfers contributions to a candidate committee for a county office for that same candidate, the candidate committee for the county office shall not transfer contributions to a statewide or legislative candidate committee for that same candidate during the twenty-four months immediately following that transfer of contributions to the county candidate committee. 3. Contributions originally made to the transferring candidate committee are deemed to be contributions to the receiving candidate committee. Department of State, Office of the Secretary of State Election Services Division On transfer, an individual’s aggregate contributions to both candidate committees during the election cycle shall not exceed the individual’s contribution limit for that candidate. C. A candidate committee shall not knowingly accept contributions in excess of the contribution limits prescribed by law. A candidate committee that unknowingly accepts an excess contribution shall refund or reattribute any excess contribution within sixty days after receipt of the contribution. A candidate committee may reattribute an excess contribution only if both of the following apply: 1. The excess contribution was received from an individual contributor. 2. The individual contributor authorizes the candidate committee to reattribute the excess amount to another individual who was identified as a joint account holder in the original instrument used to make the excess contribution. D. A candidate committee may accept contributions only from an individual, a partnership, a candidate committee, a political action committee or a political party. E. A candidate committee may make unlimited contributions to a person other than a candidate’s committee. F. A candidate may contribute unlimited personal monies to the candidate’s own candidate committee. § 16-914. Political action committee contribution limits; requirements A. A political action committee without mega PAC status may not contribute more than the following amounts per election cycle: 1. Six thousand two hundred fifty dollars to a candidate committee for city, town, county or district office. 2. Six thousand two hundred fifty dollars to a candidate committee for legislative office. 138 Arizona Campaign Finance: Candidate Committees 3. Six thousand two hundred fifty dollars to a candidate committee for statewide office. B. A political action committee with mega PAC status may contribute twice the amounts prescribed in subsection A of this section per election cycle if the political action committee provides the recipient candidate committee a copy of the political action committee’s certification of mega PAC status. C. A political action committee may only contribute to a candidate committee using monies contributed by an individual, a partnership, a candidate committee, a political action committee or a political party. D. A political action committee may make unlimited contributions to persons other than candidate committees. § 16-915. Political party contribution limits; requirements A. A political party may not contribute more than the following amounts per election cycle: 1. Ten thousand dollars to the party’s nominee for a city, town, county or district office. 2. Ten thousand dollars to the party’s nominee for legislative office. 3. One hundred thousand dollars to the party’s nominee for statewide office. B. A political party may only contribute to nominees using monies contributed by an individual, a partnership, a candidate committee, a political action committee or a political party. C. A political party shall not contribute candidate committees other than nominees. to D. A political party may make unlimited contributions to persons other than candidate committees and nominees. Department of State, Office of the Secretary of State Election Services Division § 16-916. Corporation, limited liability company and labor organization contributions; separate segregated fund; limits; requirements A. A corporation, limited liability company or labor organization shall not make contributions to a candidate committee. B. A corporation, limited liability company or labor organization may make unlimited contributions to persons other than candidate committees. C. A corporation, limited liability company or labor organization may sponsor a separate segregated fund. Employees, members, executives, stockholders and retirees and their families of a corporation, limited liability company or labor organization and any subsidiary or affiliate of a corporation, limited liability company or labor organization may make contributions to the separate segregated fund, subject to the following: 1. The separate segregated fund must register as a political action committee. 2. The sponsor or its affiliate may pay the administrative, personnel and fund-raising expenses of its separate segregated fund, which shall not be deemed contributions to the fund. 3. The sponsor or its separate segregated fund may solicit contributions from the sponsor’s, sponsor’s affiliates’ or sponsor’s subsidiaries’ employees, members, executives, stockholders and retirees and their families. The following additional restrictions apply: (a) With respect to an insurer, an insurer or its separate segregated fund may also solicit contributions from an insurance producer’s employees, members, executives, stockholders and retirees and their families. (b) With respect to a trade association or membership organization, the association or organization may solicit contributions from its members’ employees, executives, stockholders, subsidiaries and retirees and their families. 139 Arizona Campaign Finance: Candidate Committees 4. A sponsor or its affiliate or a trade association or membership organization may facilitate the making of contributions to its separate segregated fund by establishing a payroll deduction system or other similar payment transfer method. 5. A sponsor, trade association, membership organization or separate segregated fund may rely on the federal election commission’s written guidance interpreting 52 United States code section 30118(b) and rules adopted under that section when interpreting this subsection, if otherwise consistent with this article and articles 1, 1.1, 1.3, 1.4, 1.5, 1.6 and 1.7 of this chapter. contributions to that recipient and shall not exceed the individual partner’s contribution limit. 3. The partnership shall not attribute any contribution to a partner that is a corporation, limited liability company or labor organization. 4. Partnership contributions need not be accompanied by the signature of each contributing partner. D. A partnership may establish a segregated fund as prescribed in § 16-916. separate § 16-918. Earmarking prohibited § 16-917. Partnership contribution limits; requirements A. A partnership may not contribute more than the following amounts per election cycle: 1. Six thousand two hundred fifty dollars to a candidate committee for city, town, county or district office. 2. Six thousand two hundred fifty dollars to a candidate committee for legislative office. A contributor shall not give and a committee shall not accept a contribution that has been earmarked for a candidate. Article 1.3 Expenditures § 16-921. Exemptions from definition of expenditure 3. Six thousand two hundred fifty dollars to a candidate committee for statewide office. A. A person may make any expenditure not otherwise prohibited by law. B. A partnership may make unlimited contributions to persons other than candidate committees. B. The following are not expenditures: C. Partnership contributions are subject to the following: 1. Partnership contributions shall be attributed to each contributing partner as designated by the partnership. The partnership shall provide the recipient committee written notice identifying the contributing partners and the amount attributed to each. 2. Partnership contributions shall count against both the partnership’s and the individual partners’ contribution limits to a recipient. The portion attributed to each partner shall be aggregated with the individual partner’s nonpartnership Department of State, Office of the Secretary of State Election Services Division 1. The value of an individual’s volunteer services or expenses that are provided without compensation or reimbursement, including the individual’s: (a) Travel expenses. (b) Use of real or personal property. (c) Cost of invitations, food or beverages. (d) Use of e-mail, internet activity or social media messages, only if the individual’s use is not paid for by the individual or any other person and if the emails, social media messages or other internet activities do not contain or include transmittal of a paid advertisement or paid fund-raising solicitation. 140 Arizona Campaign Finance: Candidate Committees 2. The value of any news story, commentary or editorial by any broadcasting station, cable television operator, programmer or producer, newspaper, magazine, website or other periodical publication that is not owned or operated by a candidate, a candidate’s spouse or any committee. 6. Any payment by a person that is not a committee to a filing officer for arguments in a publicity pamphlet. 3. The payment by any person to defray a political party’s operating expenses or party-building activities, including: 8. The payment of costs of publishing a book or producing a documentary, if the publication and production are for distribution to the general public through traditional distribution mechanisms or a fee is obtained for the purchase of the publication or viewing of the documentary. (a) Party staff and personnel. (b) Studies and reports. (c) Voter registration, recruitment, polling and turnout efforts. (d) Party conventions and party meetings. (e) Construction, purchase buildings or facilities. or lease of 7. Any payment for legal or accounting services that are provided to a committee. C. This section does not imply that any transactions that are not specifically listed in subsection B of this section are expenditures unless those transactions otherwise meet the definition of expenditure as defined in § 16-901. party 4. The value of any of the following to a committee: (a) Interest earned on the committee’s deposits or investments. (b) Transfers between committees to reimburse expenses and distribute monies raised through a joint fund-raising effort, except that contributions shall be allocated as described in the fund-raising solicitation and expenses shall be allocated in the same proportion as contributions. (c) Payment of a committee’s legal or accounting expenses. § 16-922. Independent and coordinated expenditures A. Any person expenditures. may make independent B. An expenditure is not an independent expenditure if either of the following applies: 1. There is actual coordination with respect to an expenditure between a candidate or candidate’s agent and the person making the expenditure or that person’s agent. (d) An extension of credit for goods and services on a committee’s behalf by a creditor if the terms are substantially similar to extensions of credit to nonpolitical debtors that are of similar risk and size of obligation. The creditor must make a commercially reasonable attempt to collect the debt, except that if an extension of credit remains unsatisfied by the committee after six months the committee is deemed to have received a contribution but the creditor is not deemed to have made a contribution. 2. Both of the following apply: 5. The value of nonpartisan communications that are intended to encourage voter registration and turnout efforts. C. In evaluating whether an expenditure is an independent expenditure, a filing officer or enforcement officer may consider the following to Department of State, Office of the Secretary of State Election Services Division (a) The expenditure is based on nonpublic information about a candidate’s or candidate committee’s plans or needs that the candidate or candidate’s agent provides to the person making the expenditure or that person’s agent. (b) The candidate or candidate’s agent provides the nonpublic information with an intent toward having the expenditure made. 141 Arizona Campaign Finance: Candidate Committees be rebuttable evidence of coordination: 1. Any agent of the person making the expenditure is also an agent of the candidate whose election or whose opponent’s defeat is being advocated by the expenditure. 2. In the same election cycle, the person making the expenditure or that person’s agent is or has been authorized to raise or spend monies on the candidate’s behalf. 3. In the same election cycle, the candidate is or has been authorized to raise money or solicit contributions on behalf of the person making the expenditure. D. Notwithstanding subsection C of this section, coordination does not exist under either of the following: 1. If the person making the expenditure maintains a firewall between the person and that person’s agent in compliance with all of the following: (a) The person’s agent did not participate in deciding to make the expenditure or in deciding the content, timing or targeting of the expenditure. (b) The person making the expenditure has a written policy establishing the firewall and its requirements. (c) The person making the expenditure and the person’s agent followed the written policy regarding the firewall. 2. Solely because an agent of a person making the expenditure serves or has served on a candidate’s host committee for a fund-raising event. E. An expenditure that is coordinated with a candidate, other than a coordinated party expenditure, is deemed an in-kind contribution to the candidate. F. An entity that makes an independent expenditure, other than an individual or a committee, shall file independent expenditure reports pursuant to § 16-926, subsection H. Department of State, Office of the Secretary of State Election Services Division Article 1.4 Reporting Requirements and Disclosure Statement § 16-925. Advertising and fund-raising disclosure statements A. A person that makes an expenditure for an advertisement or fund-raising solicitation, other than an individual, shall include the following disclosures in the advertisement or solicitation: 1. The words “paid for by”, followed by the name of the person making the expenditure for the advertisement or fund-raising solicitation. 2. Whether the expenditure was authorized by any candidate, followed by the identity of the authorizing candidate, if any. B. In addition to the disclosure required by subsection A of this section, a political action committee that makes an expenditure for an advertisement shall include a disclosure stating the names of the three political action committees making the largest aggregate contributions to the political action committee making the expenditure and that exceed twenty thousand dollars during the election cycle, as calculated at the time the advertisement was distributed for publication, display, delivery or broadcast. C. If a disclosure contains any acronym or nickname that is not commonly known, the disclosure shall also spell out the acronym or provide the full name. D. If the advertisement is: 1. Broadcast on radio, the disclosure shall be clearly spoken at the beginning or end of the advertisement. 2. Delivered by hand or mail or electronically, the disclosure shall be clearly readable. 3. Displayed on a sign or billboard, the disclosure shall be displayed in a height that is at least four percent of the vertical height of the sign or billboard. 142 Arizona Campaign Finance: Candidate Committees 4. Broadcast on television or in a video or film, both of the following requirements apply: (a) The disclosure shall be both written and spoken at the beginning or end of the advertisement, except that if the written disclosure statement is displayed for the greater of at least one-sixth of the broadcast duration or four seconds, a spoken disclosure statement is not required. (b) The written disclosure statement shall be printed in letters that are displayed in a height that is at least four percent of the vertical picture height. E. This section does not apply to: 1. Social media messages, text messages or messages sent by a short message service. 2. Advertisements that are placed as a paid link on a website, if the message is not more than two hundred characters in length and the link directs the user to another website that complies with this section. 3. Advertisements that are placed as a graphic or picture link, if the statements required in this section cannot be conveniently printed due to the size of the graphic or picture and the link directs the user to another website that complies with this section. 4. Bumper stickers, pins, buttons, pens and similar small items on which the statements required in this section cannot be conveniently printed. 5. A solicitation of contributions by a separate segregated fund. 6. A communication by a tax-exempt organization solely to its members. 7. A published book or a documentary film or video. § 16-926. Campaign finance reports; contents A. A committee shall file campaign finance reports Department of State, Office of the Secretary of State Election Services Division with the filing officer. The secretary of state’s instructions and procedures manual adopted pursuant to § 16-452 shall prescribe the format for all reports and statements. B. A campaign finance report shall set forth: 1. The amount of cash on hand at the beginning of the reporting period. 2. Total receipts during the reporting period, including: (a) An itemized list of receipts in the following categories, including the source, amount and date of receipt, together with the total of all receipts in each category: (i) Contributions from individuals whose contributions exceed fifty dollars for that election cycle, including identification of the contributor’s occupation and employer. (ii) Contributions from candidate committees. (iii) Contributions from political action committees. (iv) Contributions from political parties. (v) Contributions from partnerships. (vi) For a political action committee or political party, contributions from corporations and limited liability companies, including identification of the corporation’s or limited liability company’s file number issued by the corporation commission. (vii) For a political action committee or political party, contributions from labor organizations, including identification of the labor organization’s file number issued by the corporation commission. (viii) For a candidate committee, a candidate’s contribution of personal monies. (ix) All loans, including identification of any endorser or guarantor other than a candidate’s spouse, and the contribution amount endorsed or guaranteed by each. (x) Rebates and refunds. (xi) Interest on committee monies. 143 Arizona Campaign Finance: Candidate Committees (xii) The fair market value of in-kind contributions received. (xiii) Extensions of credit that remain outstanding, including identification of the creditor and the purpose of the extension. (b) The aggregate amount of contributions from all individuals whose contributions do not exceed fifty dollars for the election cycle. 3. An itemized list of all disbursements in excess of two hundred fifty dollars during the reporting period in the following categories, including the recipient, the recipient’s address, a description of the disbursement and the amount and date of the disbursement, together with the total of all disbursements in each category: (a) Disbursements for operating expenses. (b) Contributions to candidate committees. (c) Contributions to political action committees. (d) Contributions to political parties. (e) Contributions to partnerships. (f) For a political action committee or political party, contributions to corporations and limited liability companies, including identification of the corporation’s or limited liability company’s file number issued by the corporation commission. (g) For a political action committee or political party, contributions to labor organizations, including identification of the labor organization’s file number issued by the corporation commission. (h) Repayment of loans. (i) Refunds of contributions. (j) Loans made. (k) The value of in-kind contributions provided. (l) Independent expenditures that are made to advocate the election or defeat of a candidate, including identification of the candidate, office sought by the candidate, election date, mode of advertising and distribution or publication date. Department of State, Office of the Secretary of State Election Services Division (m) Expenditures to advocate the passage or defeat of a ballot measure, including identification of the ballot measure, ballot measure serial number, election date, mode of advertising and distribution or publication date. (n) Expenditures to advocate for or against the issuance of a recall election order or for the election or defeat of a candidate in a recall election, including identification of the officer to be recalled or candidate supported or opposed, mode of advertising and distribution or publication date. (o) Any other disbursements or expenditures. 4. The total sum of all receipts and disbursements for the reporting period. 5. A certification by the committee treasurer, issued under penalty of perjury, that the contents of the report are true and correct. C. For the purposes of reporting under subsection B of this section: 1. A contribution is deemed to be received either on the date the committee knowingly takes possession of the contribution or the date of the check or credit card payment. For an in-kind contribution of services, the contribution is deemed made either on the date the services are performed or the date the committee receives the services. 2. An expenditure or disbursement is deemed made either on the date the committee authorizes the monies to be spent or the date the monies are withdrawn from the committee’s account. For a transaction by check, the expenditure or disbursement is deemed made on the date the committee signs the check. For a credit card transaction on paper, the expenditure or disbursement is deemed made on the date the committee signs the authorization to charge the credit card. For an electronic transaction, an expenditure or disbursement is deemed made on the date the committee electronically authorizes the charge. For an agreement to purchase goods or services, the expenditure or disbursement is deemed made either on the date the parties enter into the agreement or the date the purchase order is issued. 3. A committee may record its transactions using 144 Arizona Campaign Finance: Candidate Committees any of the methods authorized by this subsection But for each type of contribution, expenditure or disbursement made or received, the committee shall use a consistent method of recording transactions throughout the election cycle. D. The amount of an in-kind contribution of services shall be equal to the usual and normal charges for the services on the date performed. E. If any receipt or disbursement is earmarked, the committee shall report the identity of the person to whom the receipt or disbursement is earmarked. F. Candidate committee reports shall be cumulative for the election cycle to which they relate. Political action committee and political party reports shall be cumulative for a two-year election cycle ending in the year of a statewide general election. If there has been no change during the reporting period in an item listed in the immediately preceding report, only the amount need be carried forward. G. For a political action committee that receives individual contributions through a payroll deduction plan, that committee is not required to separately itemize each contribution received from the contributor during the reporting period. In lieu of itemization, the committee may report all of the following: 1. The aggregate amount of contributions received from the contributor through the payroll deduction plan during the reporting period. 2. The individual’s identity. 3. The amount deducted per pay period. H. An entity that makes independent expenditures or ballot measure expenditures in excess of one thousand dollars during a reporting period shall file an expenditure report with the filing officer for the applicable reporting period. Expenditure reports shall identify the candidate or ballot measure supported or opposed, office sought by the candidate, if any, election date, mode of advertising and first date of publication, display, delivery or broadcast of the advertisement. § 16-927. Campaign finance reporting period A. A political action committee and political party shall file a campaign finance report covering each reporting period as follows: 1. For a calendar quarter without an election, the political action committee or political party shall file a quarterly report. The quarterly report shall be: (a) Filed not later than the fifteenth day after the calendar quarter. (b) Complete through the last day of the calendar quarter. 2. For a calendar quarter with an election, the political action committee or political party shall file a preelection and postelection report as follows: (a) A preelection report shall be: (i) Filed not later than ten days before the election. (ii) Complete from the first day of the applicable calendar quarter through the seventeenth day before the election. (b) A postelection report shall be: (i) Filed not later than the fifteenth day after the applicable calendar quarter. (ii) Complete from the sixteenth day before the election through the last day of the applicable calendar quarter. B. A candidate committee shall file a campaign finance report only during the four calendar quarters comprising the twelve-month period preceding the general election for the office for which the candidate is seeking election, or for cities and towns, the city’s or town’s second, runoff or general election, however designated by the city or town. The reporting period for a candidate committee’s first campaign finance report of the election cycle shall include the entire election cycle to date. C. A committee shall file campaign finance reports until terminated. Department of State, Office of the Secretary of State Election Services Division 145 Arizona Campaign Finance: Candidate Committees § 16-928. Filing officer; statements and reports A. A person who is required to file any statements and reports required by this article and articles 1, 1.1, 1.2, 1.3, 1.5, 1.6 and 1.7 of this chapter shall file with the filing officer in charge of that election, as follows: 1. The secretary of state is the filing officer for statewide and legislative elections, including retention elections for supreme court justices and court of appeals judges. The secretary of state is also the filing officer for committees that support or oppose a recall election or the circulation of a petition for a recall election for a statewide or legislative officeholder, for committees that support or oppose a statewide initiative or referendum or other statewide ballot measure, question or proposition or the circulation of a petition for a statewide initiative or referendum or other statewide ballot measure, question or proposition. 2. The county officer in charge of elections is the filing officer for county, school district, community college district and special taxing district elections, including retention elections for superior court judges. The county officer in charge of elections is also the filing officer for committees that support or oppose a recall election or the circulation of a petition for a recall election for an officeholder of a county office, a school district governing board office, a community college district governing board office or a special taxing district governing board office, for committees that support or oppose a county, school district, community college district or special taxing district initiative or referendum or other ballot measure, question or proposition, including bond, tax, budget and budget override measures or that oppose or support the circulation of a petition for a county, school district, community college district or special taxing district initiative or referendum or other county, school district, community college district or special taxing district ballot measure, question or proposition. 3. The city or town clerk is the filing officer for city and town elections. The city or town officer in charge of elections is also the filing officer for committees that support or oppose a recall election Department of State, Office of the Secretary of State Election Services Division or the circulation of a petition for a recall election for a city or town officeholder, for committees that support or oppose a city or town initiative or referendum or other city or town ballot measure, question or proposition or the circulation of a petition for a city or town initiative or referendum or other city ballot measure, question or proposition. B. Notwithstanding subsection A of this section, a standing committee shall only file reports with the secretary of state. C. A filing officer shall provide the option for electronic filing and shall make all statements and reports publicly available on the internet. A filing officer may comply with this section by opting into the secretary of state’s electronic filing system and paying a fee as determined by the secretary of state. Article 1.5 Biennial Financial Adjustments § 16-931. Biennial adjustments; committee registration; contribution limits A. In January of each odd-numbered year, the secretary of state shall increase: 1. The committee registration thresholds specified in § 16-905 by one hundred dollars. 2. The contribution limits specified in article 1.2 of 1 this chapter by one hundred dollars. B. The secretary of state shall publish the revised amounts and make the amounts available to election officials, candidates, committees and the public. Article 1.6 Committee Termination § 16-933. Transfer and disposal of committee monies; limitations A. A committee that intends to terminate shall dispose of surplus monies as follows: 146 Arizona Campaign Finance: Candidate Committees 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 § 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 legislative office, the contribution regular legislative of a candidate committee for the candidate committee makes when the legislature is not in session. (d) The candidate committee makes the contribution within the limits prescribed for individuals in § 16-912. 4. Donate surplus monies to a nonprofit organization that has tax exempt status under 2 section 501(c)(3) of the internal revenue code. 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 committee: termination statement is filed, a 5. In the case of a statewide or legislative candidate committee and subject to § 41-133, transfer surplus monies to the candidate’s officeholder expense account. 1. Is not required to file any subsequent campaign finance reports. B. Surplus monies shall not be used for converted to personal use. 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. or C. This section does not preclude the repayment of a loan to a committee. 2. Shall have no further receipts or disbursements without filing a new statement of organization. § 16-934. Termination statement; filing; contents A. A committee may terminate only when the committee treasurer files a termination statement Department of State, Office of the Secretary of State Election Services Division 147 Arizona Campaign Finance: Candidate Committees Article 1.7 Enforcement § 16-937. Failure to file; penalties; notice; suspension 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 1.5 and 1.6 of this chapter, the filing officer shall send a written notice by e-mail 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 for each day that the filing is late during the first fifteen days after the filing deadline and twenty-five dollars 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 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 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. Department of State, Office of the Secretary of State Election Services Division § 16-938. Enforcement authority; investigation; reasonable cause; notice of violation; administrative appeal A. Notwithstanding § 16-1021, on receipt of a complaint from a third party, a filing officer is the sole public officer who is authorized to initiate an investigation into alleged violations of this article and articles 1, 1.1, 1.2, 1.3, 1.4, 1.5 and 1.6 of this chapter, including the alleged failure to register as a committee. A filing officer shall limit an investigation to violations that are within the filing officer’s jurisdiction. If the filing officer declares a conflict of interest, the filing officer may refer the investigation to any other filing officer in this state who agrees to accept the referral. B. The secretary of state shall establish guidelines in the instructions and procedures manual adopted pursuant to § 16-452 that outline the procedures, timelines and other processes that apply to investigations by all filing officers in this state. C. If after providing the subject of an investigation a reasonable opportunity to respond, the filing officer has reasonable cause to believe a person violated this article or article 1, 1.1, 1.2, 1.3, 1.4, 1.5 or 1.6 of this chapter, the filing officer shall refer the matter to the enforcement officer as follows: 1. For matters investigated by the secretary of state, the secretary of state shall notify the attorney general. 2. For matters investigated by a county filing officer, the county filing officer shall notify the county attorney. 3. For matters investigated by a city or town filing officer, the city or town filing officer shall notify the city or town attorney. D. Before a reasonable cause determination is made as prescribed in subsection C of this section, a filing officer, an enforcement officer and any other public officer or employee may not order a person to register as a committee and does not have audit or subpoena powers to compel the production of evidence or the attendance of witnesses concerning a potential campaign finance violation. A filing 148 Arizona Campaign Finance: Candidate Committees officer may request the voluntary production of evidence or attendance of witnesses in making a reasonable cause determination. E. Only after receiving a referral from the filing officer, the enforcement officer may: 1. Conduct an investigation using the enforcement officer’s subpoena powers, except that the enforcement officer shall not compel a person to file campaign finance reports unless the enforcement officer has determined that the person is a committee. 2. Serve the alleged violator with a notice of violation. The notice shall state with reasonable particularity the nature of the violation, shall specify the fine or penalty imposed and shall require compliance within twenty days after the date of issuance of the notice. The enforcement officer shall impose a presumptive civil penalty equal to the value or amount of money that has been received, spent or promised in violation of this article and articles 1, 1.1, 1.2, 1.3, 1.4, 1.5 and 1.6 of this chapter, except that after a finding of special circumstances, the enforcement officer may impose a penalty of up to three times the amount of the presumptive civil penalty, based on the severity, extent or wilful nature of the alleged violation. If the notice of violation requires a person to file campaign finance reports, the reports are not required to be filed until the enforcement officer’s notice of violation has been upheld after any timely appeal. subject to any penalty. 2. Does not take corrective action within twenty days after the date of issuance of the notice of violation by the enforcement officer, the enforcement officer shall impose the penalty set forth in the notice and shall provide formal notice that the imposition of the penalty is an appealable agency action pursuant to §§ 41-1092.03 and 411092.04. H. Within thirty days after receiving the notice of violation from the enforcement officer the alleged violator may request a hearing pursuant to title 41, chapter 6, article 10. I. After the conclusion of the administrative appeal process prescribed in title 41, chapter 6, article 10, the alleged violator may appeal to the superior 3 court pursuant to title 12, chapter 7, article 6 for judicial review of the final administrative decision. 3. Keep any nonpublic information gathered by the enforcement officer in the course of the committee status investigation confidential until the final disposition of any appeal of the enforcement order. F. The enforcement officer has the sole and exclusive authority to initiate any applicable administrative or judicial proceedings to enforce an alleged violation of this article and articles 1, 1.1, 1.2, 1.3, 1.4, 1.5 and 1.6 of this chapter that have been referred by the filing officer. G. If the alleged violator: 1. Takes corrective action within twenty days after the date of the issuance of the notice of violation by the enforcement officer, the alleged violator is not Department of State, Office of the Secretary of State Election Services Division 149 Arizona Campaign Finance: Candidate Committees Article 2 Citizens Clean Elections Act § 16-941. Limits on spending and contributions for political campaigns § 16-940. Findings and declarations A. Notwithstanding any law to the contrary, a participating candidate: A. The people of Arizona declare our intent to create a clean elections system that will improve the integrity of Arizona state government by diminishing the influence of special-interest money, will encourage citizen participation in the political process, and will promote freedom of speech under the U.S. and Arizona Constitutions. Campaigns will become more issue-oriented and less negative because there will be no need to challenge the sources of campaign money. B. The people of Arizona find that our current election-financing system: 1. Allows Arizona elected officials to accept large campaign contributions from private interests over which they have governmental jurisdiction; 2. Gives incumbents an unhealthy advantage over challengers; 3. Hinders communication to voters by many qualified candidates; 4. Effectively suppresses the voices and influence of the vast majority of Arizona citizens in favor of a small number of wealthy special interests; 5. Undermines public confidence in the integrity of public officials; 6. Costs average taxpayers millions of dollars in the form of subsidies and special privileges for campaign contributors; 7. Drives up the cost of running for state office, discouraging otherwise qualified candidates who lack personal wealth or access to special-interest funding; and 8. Requires that elected officials spend too much of their time raising funds rather than representing the public. Department of State, Office of the Secretary of State Election Services Division 1. Shall not accept any contributions, other than a limited number of five-dollar qualifying contributions as specified in § 16-946 and early contributions as specified in § 16-945, except in the emergency situation specified in § 16-954, subsection F. 2. Shall not make expenditures of more than a total of five hundred dollars of the candidate’s personal monies for a candidate for the legislature or more than one thousand dollars for a candidate for statewide office. 3. Shall not make expenditures in the primary election period in excess of the adjusted primary election spending limit. 4. Shall not make expenditures in the general election period in excess of the adjusted general election spending limit. 5. Shall comply with § 16-948 regarding campaign accounts and § 16-953 regarding returning unused monies to the citizens clean elections fund described in this article. B. Notwithstanding any law to the contrary, a nonparticipating candidate shall not accept contributions in excess of an amount that is twenty per cent less than the limits specified in § 16-905, subsections A through E, as adjusted by the secretary of state pursuant to § 16-905, subsection H. Any violation of this subsection shall be subject to the civil penalties and procedures set forth in § 16-905, subsections J through M and § 16-924. C. Notwithstanding any law to the contrary, a candidate, whether participating or nonparticipating: 1. If specified in a written agreement signed by the candidate and one or more opposing candidates and filed with the citizens clean elections commission, shall not make any expenditure in the primary or general election period exceeding an 150 Arizona Campaign Finance: Candidate Committees agreed-upon amount lower than spending limits otherwise applicable by statute. 2. Shall continue to be bound by all other applicable election and campaign finance statutes and rules, with the exception of those provisions in express or clear conflict with this article. D. Notwithstanding any law to the contrary, any person who makes independent expenditures related to a particular office cumulatively exceeding five hundred dollars in an election cycle, with the exception of any expenditure listed in § 16-920 and any independent expenditure by an organization arising from a communication directly to the organization’s members, shareholders, employees, affiliated persons and subscribers, shall file reports with the secretary of state in accordance with § 16958 so indicating, identifying the office and the candidate or group of candidates whose election or defeat is being advocated and stating whether the person is advocating election or advocating defeat. C. Any campaign finance report filed indicating a violation of § 16-941, subsections A or B or § 16941, subsection C, paragraph 1 involving an amount in excess of ten percent of the sum of the adjusted primary election spending limit and the adjusted general election spending limit for a particular candidate shall result in disqualification of a candidate or forfeiture of office. D. Any participating candidate adjudged to have committed a knowing violation of § 16-941, subsection A or subsection C, paragraph 1 shall repay from the candidate’s personal monies to the fund all monies expended from the candidate’s campaign account and shall turn over the candidate’s campaign account to the fund. E. All civil penalties collected pursuant to this article shall be deposited into the fund. § 16-943. Criminal violations and penalties § 16-942. Civil penalties and forfeiture of office A. A candidate, or any other person acting on behalf of a candidate, who knowingly violates § 16941 is guilty of a class 1 misdemeanor. A. The civil penalty for a violation of any contribution or expenditure limit in § 16-941 by or on behalf of a participating candidate shall be ten times the amount by which the expenditures or contributions exceed the applicable limit. B. Any person who knowingly pays any thing of value or any compensation for a qualifying contribution as defined in § 16-946 is guilty of a class 1 misdemeanor. B. In addition to any other penalties imposed by law, the civil penalty for a violation by or on behalf of any candidate of any reporting requirement imposed by this chapter shall be one hundred dollars per day for candidates for the legislature and three hundred dollars per day for candidates for statewide office. The penalty imposed by this subsection shall be doubled if the amount not reported for a particular election cycle exceeds ten percent of the adjusted primary or general election spending limit. No penalty imposed pursuant to this subsection shall exceed twice the amount of expenditures or contributions not reported. The candidate and the candidate’s campaign account shall be jointly and severally responsible for any penalty imposed pursuant to this subsection. Department of State, Office of the Secretary of State Election Services Division C. Any person who knowingly provides false or incomplete information on a report filed under § 16-958 is guilty of a class 1 misdemeanor. § 16-945. Limits on early contributions A. A participating candidate may accept early contributions only from individuals and only during the exploratory period and the qualifying period, subject to the following limitations: 1. Notwithstanding any law to the contrary, no contributor shall give, and no participating candidate shall accept, contributions from a contributor exceeding one hundred dollars during an election cycle. 151 Arizona Campaign Finance: Candidate Committees 2. Notwithstanding any law to the contrary, early contributions to a participating candidate from all sources for an election cycle shall not exceed, for a candidate for governor, forty thousand dollars or, for other candidates, ten per cent of the sum of the original primary election spending limit and the original general election spending limit. 3. Qualifying contributions specified in § 16-946 shall not be included in determining whether the limits in this subsection have been exceeded. B. Early contributions specified in subsection A of this section and the candidate’s personal monies specified in § 16-941, subsection A, paragraph 2 may be spent only during the exploratory period and the qualifying period. Any early contributions not spent by the end of the qualifying period shall be paid to the fund. C. If a participating candidate has a debt from an election campaign in this state during a previous election cycle in which the candidate was not a participating candidate, then, during the exploratory period only, the candidate may accept, in addition to early contributions specified in subsection A of this section, contributions subject to the limitations in § 16-941, subsection B, or may exceed the limit on personal monies in § 16-941, subsection A, paragraph 2, provided that such contributions and monies are used solely to retire such debt. § 16-946. Qualifying contributions qualifying contribution, a 1. Made by a qualified elector as defined in § 16121, who at the time of the contribution is registered in the electoral district of the office the candidate is seeking and who has not given another qualifying contribution to that candidate during that election cycle. 2. Made by a person who is not given anything of Department of State, Office of the Secretary of State Election Services Division 3. In the sum of five dollars, exactly. 4. Received unsolicited during the qualifying period or solicited during the qualifying period by a person who is not employed or retained by the candidate and who is not compensated to collect contributions by the candidate or on behalf of the candidate. 5. If made by check or money order, made payable to the candidate’s campaign committee, or if in cash, deposited in the candidate’s campaign committee’s account. 6. Accompanied by a three-part reporting slip that includes the printed name, registration address and signature of the contributor, the name of the candidate for whom the contribution is made, the date and the printed name and signature of the solicitor. An electronic signature as defined in § 41351 is deemed to comply with this paragraph. C. A copy of the reporting slip shall be given as a receipt to the contributor, and another copy shall be retained by the candidate’s campaign committee. Delivery of an original reporting slip to the secretary of state shall excuse the candidate from disclosure of these contributions on campaign finance reports filed under article 1 of this chapter. § 16-947. Certification as a participating candidate A. During the qualifying period, a participating candidate may collect qualifying contributions, which shall be paid to the fund. B. To qualify as a contribution must be: value in exchange for the qualifying contribution. A. A candidate who wishes to be certified as a participating candidate shall file, before the end of the qualifying period, an application with the secretary of state, in a form specified by the citizens clean elections commission. B. The application shall identify the candidate, the office that the candidate plans to seek and the candidate’s party, if any, and shall contain the candidate’s signature, under oath, certifying that: 1. The candidate has complied with the restrictions of § 16-941, subsection A during the election cycle to date. 152 Arizona Campaign Finance: Candidate Committees 2. The candidate’s campaign committee and exploratory committee have filed all campaign finance reports required under article 1 of this 1 chapter during the election cycle to date and that they are complete and accurate. 3. The candidate will comply with the requirements of § 16-941, subsection A during the remainder of the election cycle and, specifically, will not accept private contributions. C. The commission shall act on the application within one week. Unless, within that time, the commission denies an application and provides written reasons that all or part of a certification in subsection B of this section is incomplete or untrue, the candidate shall be certified as a participating candidate. If the commission denies an application for failure to file all complete and accurate campaign finance reports or failure to make the certification in subsection B, paragraph 3 of this section, the candidate may reapply within two weeks of the commission’s decision by filing complete and accurate campaign finance reports and another sworn certification. D. A candidate shall be denied certification if that candidate was removed from office by the commission or if the candidate is delinquent in payment of a debt to the commission. If the debt is paid in full or if the candidate is current on a payment agreement with the commission, the candidate may apply for certification as a participating candidate and is eligible to be certified if otherwise qualified by law. § 16-948. Controls on participating candidates’ campaign accounts A. A participating candidate shall conduct all financial activity through a single campaign account of the candidate’s campaign committee. A participating candidate shall not make any deposits into the campaign account other than those permitted under § 16-945 or 16-946. B. A candidate may designate other persons with authority to withdraw funds from the candidate’s campaign account. The candidate and any person Department of State, Office of the Secretary of State Election Services Division so designated shall sign a joint statement under oath promising to comply with the requirements of this title. C. The candidate or a person authorized under subsection B of this section shall pay monies from a participating candidate’s campaign account directly to the person providing goods or services to the campaign and shall identify, on a report filed 1 pursuant to article 1 of this chapter, the full name and street address of the person and the nature of the goods and services and compensation for which payment has been made. Notwithstanding the previous sentence, a campaign committee may establish one or more petty cash accounts, which in aggregate shall not exceed one thousand dollars at any time. No single expenditure shall be made from a petty cash account exceeding one hundred dollars. D. Monies in a participating candidate’s campaign account shall not be used to pay fines or civil penalties, for costs or legal fees related to representation before the commission, or for defense of any enforcement action under this chapter. Nothing in this subsection shall prevent a participating candidate from having a legal defense fund. E. A participating candidate shall not use clean elections monies to purchase goods or services that bear a distinctive trade name, trademark or trade dress item, including a logo, that is owned by a business or other entity that is owned by that participating candidate or in which the candidate has a controlling interest. The use of goods or services that are prohibited by this subsection is deemed to be an unlawful in-kind contribution to the participating candidate. § 16-949. Controls on spending from citizens clean elections fund A. The commission shall not spend, on all costs incurred under this article during a particular calendar year, more than five dollars times the number of Arizona resident personal income tax returns filed during the previous calendar year. The 153 Arizona Campaign Finance: Candidate Committees commission may exceed this limit during a calendar year, provided that it is offset by an equal reduction of the limit during another calendar year during the same four-year period beginning January 1 immediately after a gubernatorial election. B. The commission may use up to ten per cent of the amount specified in subsection A of this section for reasonable and necessary expenses of administration and enforcement, including the activities specified in § 16-956, subsection A, paragraphs 3 through 7 and subsections B and C. Any portion of the ten per cent not used for this purpose shall remain in the fund. C. The commission may apply up to ten per cent of the amount specified in subsection A of this section for reasonable and necessary expenses associated with public education regarding participation as a candidate or a contributor, or regarding the functions, purpose and technical aspects of the act. Reasonable and necessary expenditures made pursuant to § 16-956 are not included in this subsection. D. The commission may spend monies in the fund for the reasonable and necessary expenses to implement the act but shall not use monies in the fund to promote the benefits of the clean elections act. Expenditures made pursuant to subsection C of this section or in § 16-956, subsection A are deemed not to constitute promoting the benefits of the clean elections act. Expenditures pursuant to this subsection shall not be included in the limits prescribed in subsection C of this section. E. The state treasurer shall administer a citizens clean elections fund from which costs incurred under this article shall be paid. The auditor general shall review the monies in, payments into and expenditures from the fund no less often than every four years. § 16-950. Qualification for clean elections funding A. A candidate who has made an application for certification may also apply, in accordance with subsection B of this section, to receive funds from Department of State, Office of the Secretary of State Election Services Division the citizens clean elections receiving private contributions. fund, instead of B. To receive any clean elections funding, the candidate must present to the secretary of state no later than one week after the end of the qualifying period a list of names of persons who have made qualifying contributions pursuant to § 16-946 on behalf of the candidate. The list shall be divided by county. At the same time, the candidate must tender to the secretary of state the original reporting slips identified in § 16-946, subsection C for persons on the list and an amount equal to the sum of the qualifying contributions collected. The secretary of state shall deposit the amount into the fund. C. The secretary of state shall select at random a sample of five per cent of the number of nonduplicative names on the list for a candidate for a statewide office and twenty per cent of the number of nonduplicative names on the list for a candidate for legislative office and shall forward facsimiles of the selected reporting slips to the county recorders for the counties of the addresses specified in the selected slips. Within ten days, the county recorders shall provide a report to the secretary of state identifying as disqualified any slips that are unsigned or undated or that the recorder is unable to verify as matching a person who is registered to vote in the electoral district of the office the candidate is seeking on the date specified on the slip. The secretary of state shall multiply the number of slips not disqualified by twenty for statewide candidates, and shall multiply the number of slips not disqualified by five for legislative candidates, and if the result is greater than one hundred ten per cent of the quantity required, shall approve the candidate for funds, and if the result is less than one hundred ten per cent of the quantity required, the secretary of state shall forward facsimiles of all of the slips to the county recorders for verification, and the county recorders shall check all slips in accordance with the process above. A county recorder shall not check slips already verified. A county recorder shall report verified totals daily to the secretary of state until a determination is made that a sufficient number of verified slips has been submitted. If a sufficient number of verified slips has been submitted to one or more county recorders, the county recorders 154 Arizona Campaign Finance: Candidate Committees may stop the verification process. D. To qualify for clean elections funding, a candidate must have been approved as a participating candidate pursuant to § 16-947 and have obtained the following number of qualifying contributions: 1. For a candidate for legislature, two hundred. 2. For candidate for mine inspector, five hundred. 3. For a candidate for treasurer, superintendent of public instruction or corporation commission, one thousand five hundred. 4. For a candidate for secretary of state or attorney general, two thousand five hundred. 5. For a candidate for governor, four thousand. E. To qualify for clean elections funding, a candidate must have met the requirements of this section and either be an independent candidate or meet the following standards: 1. To qualify for funding for a party primary election, a candidate must have properly filed nominating papers and nominating petitions with signatures pursuant to chapter 3, articles 2 and 3 of 1 this title in the primary of a political organization entitled to continued representation on the official ballot in accordance with § 16-804. 2. To qualify for clean elections funding for a general election, a candidate must be a party nominee of such a political organization. § 16-951. Clean elections funding A. At the beginning of the primary election period, the commission shall pay from the fund to the campaign account of each candidate who qualifies for clean elections funding: 1. For a candidate who qualifies for clean elections funding for a party primary election, an amount equal to the original primary election spending limit. Department of State, Office of the Secretary of State Election Services Division 2. For an independent candidate who qualifies for clean elections funding, an amount equal to seventy percent of the sum of the original primary election spending limit and the original general election spending limit. 3. For a qualified participating candidate who is unopposed for an office in that candidate’s primary, in the primary of any other party and by any opposing independent candidate, an amount equal to five dollars times the number of qualifying contributions for that candidate certified by the commission. B. At any time after the first day of January of an election year, any candidate who has met the requirements of § 16-950 may sign and cause to be filed a nomination paper in the form specified by § 16-311, subsection A, with a nominating petition and signatures, instead of filing such papers after the earliest time set for filing specified by that subsection. Upon such filing and verification of the signatures, the commission shall pay the amount specified in subsection A of this section immediately, rather than waiting for the beginning of the primary election period. C. At the beginning of the general election period, the commission shall pay from the fund to the campaign account of each candidate who qualifies for clean elections funding for the general election, except those candidates identified in subsection A, paragraph 2 or subsection D of this section, an amount equal to the original general election spending limit. D. At the beginning of the general election period, the commission shall pay from the fund to the campaign account of a qualified participating candidate who has not received funds pursuant to subsection A, paragraph 3 of this section and who is unopposed by any other party nominee or any opposing independent candidate an amount equal to five dollars times the number of qualifying contributions for that candidate certified by the commission. E. The special original general election spending limit, for a candidate who has received funds pursuant to subsection A, paragraphs 2 or 3 or subsection D of this section, shall be equal to the amount that the commission is obligated to pay to 155 Arizona Campaign Finance: Candidate Committees that candidate. § 16-952. One-party-dominant legislative district Upon applying for clean elections funding pursuant to § 16-950, a participating candidate for the legislature in a one-party-dominant legislative district who is qualified for clean elections funding for the party primary election of the dominant party may choose to reallocate a portion of funds from the general election period to the primary election period. At the beginning of the primary election period, the commission shall pay from the fund to the campaign account of a participating candidate who makes this choice an extra amount equal to fifty per cent of the original primary election spending limit, and the original primary election spending limit for the candidate who makes this choice shall be increased by the extra amount. If a participating candidate who makes this choice becomes qualified for clean elections funding for the general election, the amount the candidate receives at the beginning of the general election period shall be reduced by the extra amount received at the beginning of the primary election period, and the original general election spending limit for that candidate shall be reduced by the extra amount. For the purpose of this subsection, a one-party-dominant legislative district is a district in which the number of registered voters registered in the party with the highest number of registered voters exceeds the number of registered voters registered to each of the other parties by an amount at least as high as ten per cent of the total number of voters registered in the district. The status of a district as a one-partydominant legislative district shall be determined as of the beginning of the qualifying period. pursuant to § 16-951, subsection A, paragraph 1 shall return to the fund all monies in the candidate’s campaign account above an amount sufficient to pay any unpaid bills for expenditures made during the primary election period and for goods or services directed to the primary election. B. At the end of the general election period, a participating candidate shall return to the fund all monies in the candidate’s campaign account above an amount sufficient to pay any unpaid bills for expenditures made before the general election and for goods or services directed to the general election. C. A participating candidate shall pay all uncontested and unpaid bills referenced in this section no later than thirty days after the primary or general election. A participating candidate shall make monthly reports to the commission concerning the status of the dispute over any contested bills. Any monies in a candidate’s campaign account after payment of bills shall be returned promptly to the fund. D. If a participating candidate is replaced pursuant to § 16-343, and the replacement candidate files an oath with the secretary of state certifying to § 16947, subsection B, paragraph 3, the campaign account of the participating candidate shall be transferred to the replacement candidate and the commission shall certify the replacement candidate as a participating candidate without requiring compliance with § 16-950 or the remainder of § 16947. If the replacement candidate does not file such an oath, the campaign account shall be liquidated and all remaining monies returned to the fund. E. If a participating candidate who has received monies pursuant to § 16-951, subsection A, paragraph 1 does not qualify for the ballot for the primary election, the participating candidate shall: § 16-953. Return of monies to the citizens clean elections fund 1. Return to the fund all monies in the candidate’s campaign account above the amount sufficient to pay any unpaid bills for expenditures made before the date the candidate failed to qualify for the primary ballot. A. At the end of the primary election period, a participating candidate who has received monies 2. Return to the commission, within fourteen days, all remaining assets purchased with public funds in that election cycle, including all political signs. The Department of State, Office of the Secretary of State Election Services Division 156 Arizona Campaign Finance: Candidate Committees disqualified participating candidate is not required to return political signs purchased in a previous election cycle. 3. Repay any monies paid to a family member unless the participating candidate demonstrates that the payment made was for goods or services actually provided before disqualification of the candidate and the payment was for fair market value. For the purposes of this paragraph, “family member” means a parent, grandparent, spouse, child or sibling of the candidate or a parent or spouse of any of those persons. § 16-954. Disposition of excess monies A. Beginning January 1, 1999, an additional surcharge of ten per cent shall be imposed on all civil and criminal fines and penalties collected pursuant to § 12-116.01 and shall be deposited into the fund. B. At least once per year, the commission shall project the amount of monies that the fund will collect over the next four years and the time such monies shall become available. Whenever the commission determines that the fund contains more monies than the commission determines that it requires to meet current debts plus expected expenses, under the assumption that expected expenses will be at the expenditure limit in § 16949, subsection A, and taking into account the projections of collections, the commission shall designate such monies as excess monies and so notify the state treasurer, who shall thereupon transfer the excess monies to the general fund. C. At least once per year, the commission shall project the amount of clean elections funding for which all candidates will have qualified pursuant to this article for the following calendar year. By the end of each year, the commission shall announce whether the amount that the commission plans to spend the following year pursuant to § 16-949, subsection A exceeds the projected amount of clean elections funding. If the commission determines that the fund contains insufficient monies or the spending cap would be exceeded were all candidates’ accounts to be fully funded, the Department of State, Office of the Secretary of State Election Services Division commission may include in the announcement specifications for decreases in the following parameters, based on the commission’s projections of collections and expenses for the fund, including that the fund will provide monies under § 16-951 as a fraction of the amounts there specified. D. If the commission cannot provide participating candidates with all monies specified under §§ 16951 and 16-952, as decreased by any announcement pursuant to subsection C of this section, the commission shall allocate any reductions in payments proportionately among candidates entitled to monies and shall declare an emergency. Upon declaration of an emergency, a participating candidate may accept private contributions to bring the total monies received by the candidate from the fund and from such private contributions up to the adjusted spending limits, as decreased by any announcement made pursuant to subsection C of this section. § 16-955. Citizens clean election commission; structure A. The citizens clean elections commission is established consisting of five members. No more than two members of the commission shall be members of the same political party. No more than two members of the commission shall be residents of the same county. No one shall be appointed as a member who does not have a registration pursuant to chapter 1 of this title that has been continuously recorded for at least five years immediately preceding appointment with the same political party or as an independent. B. The candidates for vacant commissioner positions shall be persons who are committed to enforcing this article in an honest, independent and impartial fashion and to seeking to uphold public confidence in the integrity of the electoral system. Each candidate shall be a qualified elector who has not, in the previous five years in this state, been appointed to, been elected to or run for any public office, including precinct committeeman, or served as an officer of a political party. 157 Arizona Campaign Finance: Candidate Committees C. Initially, the commission on appellate court appointments shall nominate five slates, each having three candidates, before January 1, 1999. No later than February 1, 1999, the governor shall select one candidate from one of the slates to serve on the commission for a term ending January 31, 2004. Next, the highest-ranking official holding a statewide office who is not a member of the same political party as the governor shall select one candidate from another one of the slates to serve on the commission for a term ending January 31, 2003. Next, the second-highest-ranking official holding a statewide office who is a member of the same political party as the governor shall select one candidate from one of the three remaining slates to serve on the commission for a term ending January 31, 2002. Next, the second-highest-ranking official holding a statewide office who is not a member of the same political party as the governor shall select one candidate from one of the two remaining slates to serve on the commission for a term ending January 31, 2001. Finally, the third-highest-ranking official holding a statewide office who is a member of the same political party as the governor shall elect one candidate from the last slate to serve on the commission for a term ending January 31, 2000. For the purposes of this section, the ranking of officials holding statewide office shall be governor, secretary of state, attorney general, treasurer, superintendent of public instruction, corporation commissioners in order of seniority, mine inspector, senate majority and minority leaders and house majority and minority leaders. D. One commissioner shall be appointed for a fiveyear term beginning February 1 of every year beginning with the year 2000. Before February 1 of each year beginning in the year 2000, the governor and the highest-ranking official holding a statewide office who is not a member of the same political party as the governor shall alternate filling such vacancies. The vacancy in the year 2000 shall be filled by the governor. E. Members of the commission may be removed by the governor, with concurrence of the senate, for substantial neglect of duty, gross misconduct in office, inability to discharge the powers and duties of office or violation of this section, after written notice and opportunity for a response. Department of State, Office of the Secretary of State Election Services Division F. If a commissioner does not complete the commissioner’s term of office for any reason, a replacement shall be selected within thirty days after the vacancy occurs. The highest-ranking official holding a statewide office who is a member of the political party of the official who nominated the commissioner who vacated office shall nominate the replacement, who shall serve as commissioner for the unexpired portion of the term. A vacancy or vacancies shall not impair the right of the remaining members to exercise all of the powers of the board. G. Commissioners are eligible to receive compensation in an amount of two hundred dollars for each day on which the commission meets and reimbursement of expenses pursuant to title 38, chapter 4, article 2. H. The commissioners shall elect a chair to serve for each calendar-year period from among their members whose terms expire after the conclusion of that year. Three commissioners shall constitute a quorum. I. A member of the commission shall serve no more than one term and is not eligible for reappointment. No commissioner, during the commissioner’s tenure or for three years thereafter, shall seek or hold any other public office, serve as an officer of any political committee or employ or be employed as a lobbyist. J. The commission shall appoint an executive director who shall not be a member of the commission and who shall serve at the pleasure of the commission. The executive director is eligible to receive compensation set by the board within the range determined under § 38-611. The executive director, subject to title 41, chapter 4, articles 5 and 6,3 shall employ, determine the conditions of employment and specify the duties of administrative, secretarial and clerical employees as the director deems necessary. § 16-956. Voter education and enforcement duties A. The commission shall: 158 Arizona Campaign Finance: Candidate Committees 1. Develop a procedure for publishing a document or section of a document having a space of predefined size for a message chosen by each candidate. For the document that is delivered before the primary election, the document shall contain the names of every candidate for every statewide and legislative district office in that primary election without regard to whether the candidate is a participating candidate or a nonparticipating candidate. For the document that is delivered before the general election, the document shall contain the names of every candidate for every statewide and legislative district office in that general election without regard to whether the candidate is a participating candidate or a nonparticipating candidate. The commission shall deliver one copy of each document to every household that contains a registered voter. For the document that is delivered before the primary election, the delivery may be made over a period of days but shall be sent in time to be delivered to households before the earliest date for receipt by registered voters of any requested early ballots for the primary election. The commission may deliver the second document over a period of days but shall send the second document in order to be delivered to households before the earliest date for receipt by registered voters of any requested early ballots for the general election. The primary election and general election documents published by the commission shall comply with all of the following: (a) For any candidate who does not submit a message pursuant to this paragraph, the document shall include with the candidate’s listing the words “no statement submitted”. (b) The document shall have printed on its cover the words “citizens clean elections commission voter education guide” and the words “primary election” or “general election” and the applicable year. The document shall also contain at or near the bottom of the document cover in type that is no larger than one-half the size of the type used for “citizens clean elections commission voter education guide” the words “paid for by the citizens clean elections fund”. (c) In order to prevent voter confusion, the document shall be easily distinguishable from the publicity pamphlet that is required to be produced Department of State, Office of the Secretary of State Election Services Division by the secretary of state pursuant to § 19-123. 2. Sponsor debates among candidates, in such manner as determined by the commission. The commission shall require participating candidates to attend and participate in debates and may specify by rule penalties for nonparticipation. The commission shall invite and permit nonparticipating candidates to participate in debates. 3. Prescribe forms for reports, statements, notices and other documents required by this article. The commission shall not require a candidate to use a reporting system other than the reporting system jointly approved by the commission and the office of the secretary of state. 4. Prepare and publish instructions setting forth methods of bookkeeping and preservation of records to facilitate compliance with this article and explaining the duties of persons and committees under this article. 5. Produce commission’s for changes amounts and a yearly report describing the activities and any recommendations of law, administration or funding accounting for monies in the fund. 6. Adopt rules to implement the reporting requirements of § 16-958, subsections D and E. 7. Enforce this article, ensure that money from the fund is placed in candidate campaign accounts or otherwise spent as specified in this article and not otherwise, monitor reports filed pursuant to this chapter and financial records of candidates as needed and ensure that money required by this article to be paid to the fund is deposited in the fund. The commission shall not take action on any external complaint that is filed more than ninety days after the postelection report is filed or ninety days after the completion of the canvass of the election to which the complaint relates, whichever is later. B. The commission may subpoena witnesses, compel their attendance and testimony, administer oaths and affirmations, take evidence and require by subpoena the production of any books, papers, records or other items material to the performance of the commission’s duties or the exercise of its 159 Arizona Campaign Finance: Candidate Committees powers. C. The commission may adopt rules to carry out the purposes of this article and to govern procedures of the commission. Commission rule making is exempt from title 41, chapter 6, article 3. The commission shall propose and adopt rules in public meetings, with at least sixty days allowed for interested parties to comment after the rules are proposed. The commission shall also file a notice of exempt rule making and the proposed rule in the format prescribed in § 41-1022 with the secretary of state’s office for publication in the Arizona administrative register. After consideration of the comments received in the sixty day comment period, the commission may adopt the rule in an open meeting. Any rules given final approval in an open meeting shall be filed in the format prescribed in § 41-1022 with the secretary of state’s office for publication in the Arizona administrative register. Any rules adopted by the commission shall only be applied prospectively from the date the rule was adopted. D. Rules adopted by the commission are not effective until January 1 in the year following the adoption of the rule, except that rules adopted by unanimous vote of the commission may be made immediately effective and enforceable. E. If, in the view of the commission, the action of a particular candidate or committee requires immediate change to a commission rule, a unanimous vote of the commission is required. Any rule change made pursuant to this subsection that is enacted with less than a unanimous vote takes effect for the next election cycle. F. Based on the results of the elections in any quadrennial election after 2002, and within six months after such election, the commission may adopt rules changing the number of qualifying contributions required for any office from those listed in § 16-950, subsection D, by no more than twenty per cent of the number applicable for the preceding election. Department of State, Office of the Secretary of State Election Services Division § 16-957. Enforcement procedure A. If the commission finds that there is reason to believe that a person has violated any provision of this article, the commission shall serve on that person an order stating with reasonable particularity the nature of the violation and requiring compliance within fourteen days. During that period, the alleged violator may provide any explanation to the commission, comply with the order, or enter into a public administrative settlement with the commission. B. Upon expiration of the fourteen days, if the commission finds that the alleged violator remains out of compliance, the commission shall make a public finding to that effect and issue an order assessing a civil penalty in accordance with § 16942, unless the commission publishes findings of fact and conclusions of law expressing good cause for reducing or excusing the penalty. The violator has fourteen days from the date of issuance of the order assessing the penalty to appeal to the superior court as provided in title 12, chapter 7, article 6. C. Any candidate in a particular election contest who believes that any opposing candidate has violated this article for that election may file a complaint with the commission requesting that action be taken pursuant to this section. If the commission fails to make a finding under subsection A of this section within thirty days after the filing of such a complaint, the candidate may bring a civil action in the superior court to impose the civil penalties prescribed in this section. § 16-958. Manner of filing reports A. Any person who has previously reached the dollar amount specified in § 16-941, subsection D for filing an original report shall file a supplemental report each time previously unreported independent expenditures specified by that subsection exceeds one thousand dollars. Such reports shall be filed at the times specified in subsection B of this section and shall identify the 160 Arizona Campaign Finance: Candidate Committees dollar amount being reported, the candidate and the date, and no other detail is required in reports made pursuant to this section. B. Any person who must file an original report pursuant to § 16-941, subsection D or who must file a supplemental report for previously unreported amounts pursuant to subsection A of this section shall file as follows: 1. Before the beginning of the primary election period, the person shall file a report on the first of each month, unless the person has not reached the dollar amount for filing an original or supplemental report on that date. 2. Thereafter, except as stated in paragraph 3 of this subsection, the person shall file a report on any Tuesday by which the person has reached the dollar amount for filing an original or supplemental report. 3. During the last two weeks before the primary election and the last two weeks before the general election, the person shall file a report within one business day of reaching the dollar amount for filing an original or supplemental report. C. Any filing under this article on behalf of a candidate may be made by the candidate’s campaign committee. All candidates shall deposit any check received by and intended for the campaign and made payable to the candidate or the candidate’s campaign committee, and all cash received by and intended for the campaign, in the candidate’s campaign account before the due date of the next report specified in subsection B of this section. No candidate or person acting on behalf of a candidate shall conspire with a donor to postpone delivery of a donation to the campaign for the purpose of postponing the reporting of the donation in any subsequent report. D. The secretary of state shall immediately notify the commission of the filing of each report under this section and deliver a copy of the report to the commission, and the commission shall promptly mail or otherwise deliver a copy of each report filed pursuant to this section to all participating candidates opposing the candidate identified in § 16-941, subsection D. Department of State, Office of the Secretary of State Election Services Division E. Any report filed pursuant to this section or § 16916, subsection A, paragraph 1 or subsection B shall be filed in electronic format. The secretary of state shall distribute computer software to political committees to accommodate such electronic filing. F. During the primary election period and the general election period, all candidates shall make available for public inspection all bank accounts, campaign finance reports and financial records relating to the candidate’s campaign, either by immediate disclosure through electronic means or at the candidate’s campaign headquarters, in accordance with rules adopted by the commission. § 16-959. Inflationary and other adjustments of dollar values A. Every two years, the secretary of state shall modify the dollar values specified in the following parts of this article, in the manner specified by § 16-905, subsection H, to account for inflation: § 16941, subsection A, paragraph 2 or subsection D; § 16-942, subsection B; § 16-945, subsection A, paragraphs 1 and 2; § 16-948, subsection C; § 16955, subsection G; and § 16-961, subsections G and H. In addition, the secretary of state shall make a similar inflation adjustment by modifying the dollar values in § 16-949, subsection A to reflect cumulative inflation since the enactment of this article. In addition, every two years, the secretary of state shall change the dollar values in § 16-961, subsections G and H in proportion to the change in the number of Arizona resident personal income tax returns filed during the previous calendar year. B. Based on the results of the elections in any quadrennial election after 2002, and within six months after such election, the commission may adopt rules in a public meeting reallocating funds available to all candidates between the primary and general elections by selecting a fraction for primary election spending limits that is between one-third and one-half of the spending limits for the election as a whole. For each office, the primary election spending limit shall be modified to be the sum of the primary and general spending limits times the 161 Arizona Campaign Finance: Candidate Committees selected fraction, and the general election spending limit shall be modified to be the same sum times one less the selected fraction. the general election period shall extend from the day after the end of the qualifying period to the day of the recall election. For recall elections, any reference to “general election” in this article shall be treated as if referring to the recall election. § 16-960. Severability C. 1. “Participating candidate” means a candidate who becomes certified as a participating candidate pursuant to § 16-947. If a provision of this act or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the act that can be given effect without the invalid provision or application, and to this end the provisions of this act are severable. In any court challenge to the validity of this article, the commission and Arizonans for clean elections shall have standing to intervene. 2. “Nonparticipating candidate” means a candidate who does not become certified as a participating candidate pursuant to § 16-947. 3. Any limitation of this article that is applicable to a participating candidate or a nonparticipating candidate shall also apply to that candidate’s campaign committee or exploratory committee. D. “Commission” means the citizens clean elections commission established pursuant to § 16-955. § 16-961. Definitions A. The terms “candidate’s campaign committee,” “contribution,” “expenditures,” “exploratory committee,” “independent expenditure,” “personal monies,” “political committee” and “statewide office” are defined in § 16-901. E. “Fund” means the citizens clean elections fund defined by this article. F. 1. “Party nominee” means a person who has been nominated by a political party pursuant to § 16-301 or 16-343. B. 1. “Election cycle” means the period between successive general elections for a particular office. 2. “Independent candidate” means a candidate who has properly filed nominating papers and nominating petitions with signatures pursuant to § 16-341. 2. “Exploratory period” means the period beginning on the day after a general election and ending the day before the start of the qualifying period. 3. “Unopposed” means with reference to an election for: 3. “Qualifying period” means the period beginning on the first day of August in a year preceding an election and ending one week before the primary election. (a) A member of the house of representatives, opposed by no more than one other candidate who has qualified for the ballot and who is running in the same district. 4. “Primary election period” means the nine-week period ending on the day of the primary election. (b) A member of the corporation commission, opposed by a number of candidates who have qualified for the ballot that is fewer than the number of corporation commission seats open at that election and for which the term of office ends on the same date. 5. “General election period” means the period beginning on the day after the primary election and ending on the day of the general election. 6. For any recall election, the qualifying period shall begin when the election is called and last for thirty days, there shall be no primary election period and Department of State, Office of the Secretary of State Election Services Division (c) All other offices, opposed by no other candidate who has qualified for the ballot and who is running in that district or running for that same office and term. 162 Arizona Campaign Finance: Candidate Committees G. “Primary election spending limits” means: 1. For a candidate for the legislature, twelve thousand nine hundred twenty-one dollars. 2. For a candidate for mine inspector, forty-one thousand three hundred forty-nine dollars. 3. For a candidate for treasurer, superintendent of public instruction or the corporation commission, eighty-two thousand six hundred eighty dollars. 4. For a candidate for secretary of state or attorney general, one hundred sixty-five thousand three hundred seventy-eight dollars. Department of State, Office of the Secretary of State Election Services Division 5. For a candidate for governor, six hundred thirtyeight thousand two hundred twenty-two dollars. H. “General election spending limits” means amounts fifty per cent greater than the amounts specified in subsection G of this section. I. 1. “Original” spending limit means a limit specified in subsections G and H of this section, as adjusted pursuant to § 16-959, or a special amount expressly set for a particular candidate by a provision of this title. 2. “Adjusted” spending limit means an original spending limit as further adjusted pursuant to § 16952. 163