Bill Text: AZ HB2667 | 2015 | Fifty-second Legislature 1st Regular | Introduced
Bill Title: Campaign finance; violations
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2015-03-31 - Referred to House RULES Committee [HB2667 Detail]
Download: Arizona-2015-HB2667-Introduced.html
|
REFERENCE TITLE: campaign finance; violations |
|
State of Arizona House of Representatives Fifty-second Legislature First Regular Session 2015
|
|
HB 2667 |
|
|
|
Introduced by Representatives Sherwood, Mendez, Senator Quezada
|
AN ACT
amending sections 16-903, 16-905, 16-913 and 16-924, Arizona Revised Statutes; relating to campaign contributions and expenses.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 16-903, Arizona Revised Statutes, is amended to read:
16-903. Candidate's campaign committees; exploratory committees; designation; candidate as agent; violation; classification
A. Each candidate who intends to receive contributions or make expenditures of more than five hundred dollars in connection with a campaign for office shall designate in the format prescribed by the filing officer a political committee for each election to serve as the candidate's campaign committee. Subject to section 16‑902, subsection D, a candidate shall only designate a single candidate campaign committee that applies to both the primary election and the general election for that designated office. The candidate shall make the designation pursuant to this subsection by filing a statement of organization before making any expenditures, accepting any contributions, distributing any campaign literature or circulating any petitions. Each candidate who intends to receive contributions or make expenditures of five hundred dollars or less shall file a signed exemption statement in the format prescribed by the filing officer that states that intention before making any expenditures, accepting any contributions, distributing any campaign literature or circulating petitions. If a candidate who has filed a five hundred dollar exemption statement receives contributions or makes expenditures of more than five hundred dollars, that candidate shall file a statement of organization with the filing officer within five business days after exceeding the five hundred dollar limit.
B. An individual who receives contributions or makes expenditures of more than five hundred dollars for the purpose of determining whether the individual will become a candidate for election to an office in this state shall designate in the format prescribed by the filing officer a political committee to serve as the individual's exploratory committee. The individual shall make the designation pursuant to this subsection before making any expenditures, accepting any contributions, circulating any petitions or distributing any campaign literature. If an individual's exploratory committee receives contributions designated for use in the general election before the primary election, the committee must use an acceptable accounting method to distinguish between contributions received for the primary election and contributions received for the general election. Acceptable accounting methods include designating separate accounts for each election or establishing separate books and records for each election.
C. An individual may have only one exploratory committee in existence at one time. A candidate may have only one campaign committee designated for each election, but a candidate may have more than one campaign committee simultaneously in existence.
D. A political committee that supports or has supported another candidate or more than one candidate may not be designated as a candidate's campaign committee.
E. Any candidate who receives a contribution or any loan for use in connection with the campaign of that candidate for election or who makes a disbursement in connection with that campaign shall be deemed as having received the contribution or loan or as having made the disbursement as an agent of the candidate's campaign committee for purposes of this article.
F. An elected official is not deemed to have offered himself for nomination or election to an office within the meaning of section 38‑296 solely by his designation of a candidate campaign committee.
G. After designating an exploratory committee, a candidate may lawfully collect signatures on nomination petitions and receive contributions.
H. A person who violates this section is subject to a civil penalty imposed as prescribed in section 16‑924 of up to three times the amount of money that has been received, expended or promised in violation of this section or up to three times the value in money for an equivalent of money or other things of value that have been received, expended or promised in violation of this section knowingly or intentionally misstates or fails to fully disclose a CONTRIBUTION or expenditure or any other thing required to be reported by this article is guilty of a class 1 misdemeanor.
Sec. 2. Section 16-905, Arizona Revised Statutes, is amended to read:
16-905. Contribution limitations; civil penalty; complaint; reductions; violation; classification
A. For an election other than for a statewide office, a contributor shall not give and an exploratory committee, a candidate or a candidate's campaign committee shall not accept contributions of more than:
1. For an election for a legislative office, two thousand five hundred dollars from an individual.
2. For an election other than for a legislative office, two thousand five hundred dollars from an individual.
3. For an election for a legislative office, two thousand five hundred dollars from a single political committee, excluding a political party, not certified under subsection G of this section to make contributions at the higher limits prescribed by paragraph 5 of this subsection and subsection B, paragraph 3 of this section.
4. For an election other than for a legislative office, two thousand five hundred dollars from a single political committee, excluding a political party, not certified under subsection G of this section to make contributions at the higher limits prescribed by subsection B, paragraph 3 of this section.
5. Five thousand dollars from a single political committee that is certified pursuant to subsection G of this section, excluding a political party.
B. For an election for a statewide office, a contributor shall not give and an exploratory committee, a candidate or a candidate's committee shall not accept contributions of more than:
1. Two thousand five hundred dollars from an individual.
2. Two thousand five hundred dollars from a single political committee, excluding a political party, not certified under subsection G of this section to make contributions at the higher limits prescribed by subsection A, paragraph 5 of this section and paragraph 3 of this subsection.
3. Five thousand ten dollars from a single political committee that is certified pursuant to subsection G of this section, excluding a political party.
C. A candidate may accept contributions from political committees, excluding political parties, as otherwise prescribed in this section and a candidate is not restricted as to the aggregate total that a candidate may lawfully receive from all political committees, excluding political parties.
D. A nominee of a political party shall not accept contributions from all political parties or political organizations combined totaling more than ten thousand twenty dollars for an election for an office other than a statewide office, and one hundred thousand one hundred ten dollars for an election for a statewide office.
E. An individual may make contributions as otherwise prescribed by this section, and an individual is not restricted as to the aggregate total that an individual may give.
F. A candidate's campaign committee or an individual's exploratory committee shall not make a loan and shall not transfer or contribute money to any other campaign or exploratory committee that is designated pursuant to this chapter or 2 52 United States Code section 431 30101 except as follows:
1. An exploratory committee may transfer monies to a subsequent candidate's campaign committee of the individual designating the exploratory committee, subject to the limits of subsection B of this section.
2. A candidate's campaign committee may transfer or contribute monies to another campaign committee designated by the same candidate as follows:
(a) Subject to the contribution limits of this section per contributor, transfer or contribute monies in the aggregate from one committee to another if both committees have been designated for an election in the same year including to a committee for another office or in another jurisdiction.
(b) Without application of the contribution limits of this section, transfer or contribute monies from one committee to another designated for an election in a subsequent year.
G. Only political committees that received monies from five hundred or more individuals in amounts of ten dollars or more in the two year period immediately before application to the secretary of state for qualification as a political committee pursuant to this section may make contributions to candidates under subsection A, paragraph 5 of this section and subsection B, paragraph 3 of this section. The secretary of state shall obtain information necessary to make the determination that a committee meets the requirements of this subsection and shall provide written certification of the fact to the committee. A political committee certification is valid for four years. A candidate's campaign committee shall not accept a contribution pursuant to this subsection unless it is accompanied by a copy of the certification. All political committees that do not meet the requirements of this subsection are subject to the individual campaign contribution limits of subsection A, paragraphs 1 and 2 of this section and subsection B, paragraph 1 of this section.
H. The secretary of state biennially shall adjust to the nearest ten dollars the amounts in subsections A through E of this section by the percentage change in the consumer price index and publish the new amounts for distribution to election officials, candidates and campaign committees. For the purposes of this subsection, "consumer price index" means the consumer price index for all urban consumers, United States city average, that is published by the United States department of labor, bureau of labor statistics.
I. The following specific limitations and procedures apply:
1. The limits of subsections A through E of this section apply to each election for any office or offices that the candidate seeks.
2. The limits of subsections A and B of this section apply to the total contributions from all separate segregated funds established, as provided in section 16‑920, by a corporation, labor organization, trade association, cooperative or corporation without capital stock.
3. A contribution by an unemancipated minor child shall be treated as a contribution by the child's custodial parent or parents for determining compliance with subsection A, paragraphs 1 and 2, subsection B, paragraph 1 and subsection E of this section.
4. A contribution by an individual or a single political committee to two or more candidates in connection with a joint fund‑raising effort shall be divided among the candidates in direct proportion to each candidate campaign committee's share of the expenses for the fund‑raising effort.
5. A candidate shall sign and file with the candidate's nomination paper a statement that the candidate has read all applicable laws relating to campaign financing and reporting.
6. A contribution to a candidate's exploratory or campaign committee shall be applied to the primary election unless:
(a) The contributor has designated otherwise.
(b) That application would result in exceeding a contribution limit. In that event, the committee may:
(i) Apply that portion of the contribution that exceeds the limit to the general election. Any portion applied to the general election is subject to the contribution limits for that election and for that contributor.
(ii) Refund the excess amount.
(c) The contribution was received after the primary election and the contribution was not being used to retire primary election debt. In that event, the contribution shall be applied to the general election subject to the contribution limits for that election and for that contributor.
7. Contributions made to the candidate for the general election are solely for influencing the general election. If the candidate prevailed in the primary election or if the candidate filed pursuant to section 16‑341, unexpended or unencumbered primary election contributions may be combined after the primary election with all of the general election contributions that were received for use in the general election. After the general election, all contributions may be combined for use in a subsequent election.
8. An individual or political committee shall not use economic influence to induce members of an organization to make contributions to a candidate, collect contributions from members of an organization for transmittal to a candidate, make payments to candidates for public appearances or services that are ordinarily uncompensated or use any similar device to circumvent any of the limitations of this section.
J. A person who violates A knowing violation of this section is a class 1 misdemeanor. An unknowing violation of this section is subject to a civil penalty imposed as prescribed in section 16‑924 of three times the amount of money that has been received, expended or promised in violation of this section or three times the value in money for an equivalent of money or other things of value that have been received, expended or promised in violation of this section.
K. Any qualified elector may file a sworn complaint with the attorney general or the county attorney of the county in which a violation of this section is believed to have occurred, and the attorney general or the county attorney shall investigate the complaint for possible action.
L. If the filing officer, attorney general or county attorney fails to institute an action within forty‑five working days after receiving a complaint under subsection K of this section, the individual filing the complaint may bring a civil action in the individual's own name and at the individual's own expense, with the same effect as if brought by the filing officer, attorney general or county attorney. The individual shall execute a bond payable to the defendant if the individual fails to prosecute the action successfully. The court shall award to the prevailing party costs and reasonable attorney fees.
M. If a provision of this section or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the section that can be given effect without the invalid provision or application, and to this end the provisions of this section are severable.
N. The use of a candidate's personal monies, or the use of personal monies by an individual who designates an exploratory committee, is not subject to the limitations of this section.
O. For any statewide or legislative candidate who is not participating in the citizens clean elections act funding system established pursuant to article 2 of this chapter:
1. Complaints and investigations relating to an alleged violation of this article are subject only to the jurisdiction, penalties and procedures established pursuant to this article and the enforcement and investigative authority of the secretary of state and attorney general.
2. The citizens clean elections commission has no authority to accept, investigate or otherwise act on any complaint involving an alleged violation of this article.
Sec. 3. Section 16-913, Arizona Revised Statutes, is amended to read:
16-913. Campaign finance reports; reporting of receipts and disbursements; exemptions; civil penalty; violation; classification
A. Except as provided in subsection K of this section, each political committee shall file campaign finance reports in the format prescribed by the filing officer setting forth the committee's receipts and disbursements according to the schedule prescribed in subsections B and C of this section.
B. In any calendar year during which there is a regularly scheduled election at which any candidates, measures, questions or propositions appear or may appear on the ballot, the political committee shall file each of the following campaign finance reports:
1. A report covering the period beginning January 1 through May 31, filed no later than June 30.
2. A preelection report,
that shall be filed not less than four days before any election and that shall
be complete through the twelfth day before the election.
3. A postelection report, that shall be filed not more than thirty days after any election and that shall be complete through the twentieth day after the election.
C. In any other calendar year, the political committee shall file a report covering the period beginning twenty‑one days after the date of the election in the preceding calendar year through December 31 of the nonelection year filed no later than January 31 of the following calendar year. For a special election for which the secretary of state is the filing officer, a political committee that receives contributions or makes expenditures to influence that election shall file the following:
1. For an initiative, referendum or recall, a preelection report that is due within fifteen days of filing the petition with the secretary of state and that is current through the date the petition was filed.
2. A preelection report that is due within fifteen days of the governor's proclamation calling the special election and that is current through the date of the governor's proclamation.
3. A preelection report that is due as prescribed by subsection B, paragraph 2 of this section.
4. A postelection report that is due as prescribed by subsection B, paragraph 3 of this section.
D. In the event that a political committee receives no contributions and makes no expenditures during a period in which it is required to file a campaign finance report, the committee treasurer or if the treasurer is unavailable the candidate, in lieu of filing a report required by subsection B of this section, may sign and file a form prescribed by the secretary of state indicating no activity during the specific reporting period.
E. In lieu of the reports prescribed in subsections B and C of this section, a candidate's political committee that remains active after an election due to outstanding debts may file a document no later than January 31 in a form prescribed by the secretary of state that states that the committee does not intend to receive any contributions or make any expenditures during the year. If a candidate's political committee does receive a contribution or make an expenditure during that year, the committee shall report as prescribed by subsection B or C of this section.
F. A judge who has filed a declaration of the desire to be retained in office is exempt from filing any report required by this section if the judge, not later than twelve days before the general election, files a statement signed and sworn to by the judge certifying that the judge has received no contributions, has made no expenditures and has no campaign committee and that the judge does not intend to receive contributions, make expenditures or have a campaign committee for the purpose of influencing the result of the vote on the question of the judge's retention. With respect to superior court judges, a statement filed pursuant to this subsection is effective until the earlier of twelve days before the third general election following the filing of this statement or the judge receives contributions, makes expenditures or authorizes a campaign committee. Such a statement filed by a supreme court justice or a court of appeals judge is effective until the earlier of twelve days before the fourth general election following the filing of this statement or the justice or judge receives contributions, makes expenditures or authorizes a campaign committee.
G. Reports in connection with special or recall elections shall conform to the filing deadlines set forth in subsections B and C of this section.
H. Except as provided in section 16‑916, subsection B and subsection K of this section, a political committee shall comply with the requirements of this section in each jurisdiction in this state in which the committee has filed a statement of organization until the committee terminates pursuant to section 16‑914, and its statements, designations and reports shall be filed with each officer with whom it has filed a statement of organization, as appropriate.
I. Each report required to be filed pursuant to this section shall be signed by the committee treasurer or the candidate or the designating individual if the treasurer is unavailable and shall contain the certification of the signer under penalty of perjury that the report is true and complete.
J. A political committee and the candidate, in the case of a candidate's campaign committee, or the designating individual, in the case of an exploratory committee, who violate this section are subject to the penalty prescribed in section 16‑918.
K. A standing political committee shall file reports with the secretary of state and is exempt from filing a report with any other jurisdiction in which it is active. The reports shall be in an electronic format as prescribed by the secretary of state or by use of the internet. The secretary of state shall promptly make the reports available to the public on the internet and shall make the reports available by electronic means by request. The standing committee shall file the following reports:
1. A preelection report that is due as prescribed by subsection B, paragraph 2 of this section shall be filed for each consolidated election date prescribed by section 16‑204.
2. A postelection report that is due as prescribed by subsection B, paragraph 3 of this section shall be filed for each consolidated election date prescribed by section 16‑204.
3. An annual report that is due by January 31 in the year immediately following the calendar year that is the subject of the report.
L. A person who knowingly or intentionally misstates or fails to fully disclose A contribution or EXPENDITURE or any other thing required to be reported by this article is guilty of a class 1 misdemeanor.
Sec. 4. Section 16-924, Arizona Revised Statutes, is amended to read:
16-924. Civil penalties; attorney general; county, city or town attorney; violation; classification
A. Unless another penalty is specifically prescribed in this title, if the filing officer for campaign finance reports designated pursuant to section 16‑916, subsection A has reasonable cause to believe that a person is violating any provision of this title, except for violations of chapter 6, article 2, the secretary of state shall notify the attorney general for a violation regarding a statewide office or the legislature, the county officer in charge of elections shall notify the county attorney for that county for a violation regarding a county office or the city or town clerk shall notify the city or town attorney for a violation regarding a city or town office. The attorney general, county attorney or city or town attorney, as appropriate, may serve on the person an order requiring compliance with that provision. The order shall state with reasonable particularity the nature of the violation and shall require compliance within twenty days from the date of issuance of the order. The alleged violator has twenty days from the date of issuance of the order to request a hearing pursuant to title 41, chapter 6.
B. If a person fails to take corrective action within the time specified in the compliance order issued pursuant to subsection A of this section, the attorney general, county attorney or city or town attorney, as appropriate, shall issue an order assessing a civil penalty of not more than one thousand dollars. The person alleged to have violated the compliance order has thirty days from the date of issuance of the order assessing the civil penalty to request a hearing pursuant to title 41, chapter 6.
C. Any party aggrieved by an order or decision of the attorney general, county attorney or city or town attorney, as appropriate, may appeal to the superior court as provided in title 12, chapter 7, article 6.
D. For the purposes of this section, failure to comply with a compliance order issued by the attorney general, county attorney or city or town attorney, as appropriate, as prescribed in subsection A of this section is deemed an intentional act.
E. In addition to being subject to a civil penalty, a violation of this article is a class 2 misdemeanor unless another classification is specifically prescribed in this title.
