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Running for President in Arizona – A Candidate Guide

Arizona Secretary of State’s Office

Election Services Division

1700 W. Washington St., 7th Floor

Phoenix, Arizona 85007

Candidate Committees

Arizona Campaign Finance

April 27, 2018

Department of State, Office of the Secretary of State

Election Services Division

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.

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

Disclaimer

The Office cannot offer legal

advice or otherwise offer

recommendations on

document preparation. The

Office advises consultation

with an attorney in such

cases.

Mailing address for all

correspondence or filings:

Arizona Secretary of State

Election Services Division

1700 W. Washington St. 7

Fl.

Phoenix, AZ 85007-2808

Telephone: (602) 542-8683

Toll Free: (in Arizona)

1 (877) 843-8683

Fax: (602) 542-6172

TDD: (602) 255-8683

Website: www.azsos.gov

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.

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,

MICHELE REAGAN

Arizona Secretary of State

Department of State, Office of the Secretary of State

Election Services Division

Arizona Campaign Finance: Candidate Committees

Table of Contents

A. Establishing a Candidate Committee .................................................................. 5

1. When to form a campaign committee .................................................................... 5

2. Where to register a candidate committee .............................................................. 6

B. Filing a Statement of Organization .................................................................... 6

1. Getting started ...................................................................................................... 6

2. Components of a statement of organization ........................................................... 8

3. Qualification for clean elections funding .............................................................. 12

4. Changes in committee information ....................................................................... 12

5. Forming multiple committees .............................................................................. 12

C. Recordkeeping and Financial Management ...................................................... 13

1. Gathering contributor information ....................................................................... 13

2. Managing financial activity and records ...............................................................16

D. Receiving Contributions .................................................................................. 20

1. What is a “contribution”? .................................................................................... 20

2. Who may contribute to a candidate committee? .................................................. 22

3. Candidate committees are not required to file notifications upon receiving

contributions. ........................................................................................................... 26

4. Contribution limits ............................................................................................. 27

5. How is an “election cycle” defined for contribution purposes? ............................ 28

6. Remedying excessive and unlawful contributions ................................................ 29

E. Special Funding Mechanisms for Candidates .................................................... 30

1. Transfers from prior campaigns .......................................................................... 30

2. Use of personal monies ....................................................................................... 32

3. Joint fundraising events ...................................................................................... 33

F. Reducing Campaign Expenses .......................................................................... 34

1. Volunteer activity ............................................................................................... 34

2. Political party support ........................................................................................ 35

3. Legal and accounting expenses ............................................................................ 36

4. Candidate appearances at business and labor facilities ....................................... 36

5. Elected official tours and conferences ................................................................. 36

6. Officeholder expense accounts ............................................................................ 37

G. Making Contributions ..................................................................................... 41

H. Campaign Advertising ..................................................................................... 42

1. Form of disclaimer .............................................................................................. 42

2. When a disclaimer is not required ....................................................................... 43

I. Filing Campaign Finance Reports ..................................................................... 43

1. Campaign finance reporting periods .................................................................... 43

2. Filing officer for campaign finance reports ......................................................... 44

3. Content of campaign finance reports ................................................................... 45

J. Winding Down and Terminating a Committee ................................................... 48

1. Repayment of debts ............................................................................................. 48

Department of State, Office of the Secretary of State

Election Services Division

Arizona Campaign Finance: Candidate Committees

2. Disposal of surplus funds .................................................................................... 48

3. Terminating a committee .................................................................................... 49

K. Grounds for Campaign Finance Enforcement ................................................... 50

1. Prohibited contributions ..................................................................................... 50

2. Coordinated expenditures .................................................................................... 51

3. Missing or late campaign finance reports ............................................................ 53

Appendix A ........................................................................................................... 56

County Filing Officers ............................................................................................... 56

Appendix B ........................................................................................................... 57

Guidance on Operating or Fundraising with 2016 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

Department of State, Office of the Secretary of State

Election Services Division

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.

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,

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.

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.

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.

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.

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.

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).

A.R.S. §§ 16-905(A); 16-906(A). Registration thresholds are increased by $100 pursuant to A.R.S. § 16-931(A)(1).

A candidate’s “personal monies” include all sources of income or wealth available to the candidate or candidate’s spouse. A.R.S. §

16-901(40). A candidate’s use of personal monies is discussed more in depth in Section E(2).

Candidate registration is triggered if a candidate raises or spends at least $1,100 “in connection with” his or her candidacy. A.R.S.

§§ 16-905(A); 16-931(A)(1).

A.R.S. § 16-907(I).

Department of State, Office of the Secretary of State

Election Services Division

Arizona Campaign Finance: Candidate Committees

Even if registration is not required, it nonetheless may be a good idea. At the state level,

for 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.

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.

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.

The specific contacts for each county are listed in Appendix

A. School district candidates must file with the County

School Superintendent.

At the city and town level, statements of organization

must be filed with the city or town clerk.

Contact

information for each city and town may be found through

the League of Arizona Cities and Towns at

http://www.leagueaz.org/lgd/

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.

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).

A.R.S. § 16-928(A)(1).

A.R.S. § 16-928(A)(2).

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.

A.R.S. § 16-928(A)(3).

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

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.

Department of State, Office of the Secretary of State

Election Services Division

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 committee’s books and

records, must sign off on financial transactions, and

remains legally and personally responsible for filing

complete and accurate campaign finance reports.

Since most campaign finance violations stem from poor

recordkeeping or inattention to the law, picking the

right treasurer is important.

Candidates typically select the person they trust

most to serve as chairperson and treasurer:

themselves.

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.

Finally, a candidate committee must establish a

bank account and be prepared to disclose the name of

its bank or other financial institution.

(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).

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.

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.

A.R.S. § 16-906(B)(5).

What’s new?

Under S.B. 1516 (2016), a

candidate committee will only be

notified by email that a potential

campaign finance violation has

occurred.

What’s new?

Under S.B. 1516 (2016), email

addresses are now required, as

committees will only be notified by

email (in lieu of certified mail) going

forward.

Chairpersons and treasurers are now

specifically required to provide a

physical or street address in lieu of a

P.O. Box (in case these key officers

must be located). In contrast, the

committee’s address may be a P.O. Box.

Finally, instead of requiring candidates

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 locally-

created 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.

Department of State, Office of the Secretary of State

Election Services Division

Arizona Campaign Finance: Candidate Committees

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 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.

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

· 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.

· Candidate’s political party (if applicable)

· 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.

· Committee mailing address

· 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

· 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.

A.R.S. § 16-907(B)(1).

A.R.S. § 16-906(B)(1).

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).

A.R.S. § 16-906(B)(4).

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).

A.R.S. § 16-906(B)(1).

Department of State, Office of the Secretary of State

Election Services Division

Arizona Campaign Finance: Candidate Committees

· 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.

· Committee website (if applicable)

· A committee must identify its website only if the committee or candidate has a campaign

website.

· Committee telephone number

· 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

· Please do not list bank account numbers.

Chairperson Information

· Chairperson’s name

⋅ A candidate may serve as chairperson of his or her own campaign committee.

· Chairperson’s physical location or street address

⋅ 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

⋅ 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

⋅ 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

⋅ The occupation should be sufficiently specific to identify the chairperson’s line of

work.

A.R.S. § 16-906(B)(1).

A.R.S. § 16-906(B)(5).

A.R.S. § 16-906(B)(3).

Department of State, Office of the Secretary of State

Election Services Division

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 chairperson has multiple occupations, list the chairperson’s primary or principal

occupation.

· Chairperson’s employer

⋅ 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

⋅ A candidate may serve as treasurer of his or her own campaign committee.

· Treasurer’s physical location or street address

⋅ 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

⋅ 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

⋅ 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

⋅ The occupation should be sufficiently specific to identify the treasurer’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.”

A.R.S. § 16-906(B)(3).

Department of State, Office of the Secretary of State

Election Services Division

Arizona Campaign Finance: Candidate Committees

⋅ “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.

· Treasurer’s employer

⋅ 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.

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.

Once registration is complete, the filing officer will issue an identification number for the

candidate committee.

This identification number will be used to identify the committee in

future correspondence.

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.

Original signatures are no longer required because a filing officer must provide an electronic filing option for all candidates.

A.R.S. § 16-928(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.

A.R.S. § 16-906(D).

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.

Department of State, Office of the Secretary of State

Election Services Division

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.

Please contact the Citizens Clean Elections

Commission for further information.

The City of Tucson also operates a Public Funds Matching Program. Please contact the

Tucson City Clerk’s Office for further information.

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.

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.

This prevents a

candidate from subverting contribution limits by having donors contribute to multiple affiliated

committees.

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.

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.

A candidate may simultaneously maintain multiple committees for different offices;

however, that does not necessarily mean the candidate is permitted to freely transfer money

A.R.S. § 16-950.

Visit www.azcleanelections.gov.

Visit www.tucsonaz.gov/clerks/campaign-finance-information.

A.R.S. § 16-906(C).

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.

For further guidance on operating or fundraising with a 2016 or earlier-formed committee, please see Appendix B.

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).

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.

Department of State, Office of the Secretary of State

Election Services Division

Arizona Campaign Finance: Candidate Committees

between these 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.

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.

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.

Here are the standards that

apply:

· Contributor’s name

⋅ The contributor must provide a first and last name.

⋅ 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

⋅ Only a residential address or location may be provided.

A work address or P.O. Box is

not permitted.

· Contributor’s occupation

⋅ The occupation should be sufficiently specific to identify the contributor’s line of work.

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.

A.R.S. § 16-907(A).

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).

A.R.S. § 16-901(29)(a).

Department of State, Office of the Secretary of State

Election Services Division

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

⋅ 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.

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.

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

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:

· PAC or political party’s name

⋅ A PAC or party should provide its name as reflected in its statement of organization or

articles of incorporation.

· PAC or political party’s physical location or street address

⋅ Only a physical address or street location may be provided.

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

⋅ 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.

· Partnership’s physical location or street address

⋅ Only a physical address or street location may be provided.

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.

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.”

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).

A.R.S. § 16-901(29)(b).

Only PACs and political parties registered in Arizona are permitted to make contributions to candidate committees. See A.R.S. §

16-901(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]”).

A.R.S. § 16-901(29)(b).

A.R.S. § 16-907(C).

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

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.

Some

contributions are bound to be lacking, however. These are known as “incomplete

contributions.”

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.

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.

In either case, the treasurer should keep written records

documenting these attempts.

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.

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.

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.

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

A.R.S. § 16-901(29).

A.R.S. § 16-901(30).

A.R.S. § 16-907(C).

A.R.S. § 16-901(5).

Written records of all “best efforts” attempts will normally be sufficient to defend against a campaign finance complaint alleging

incomplete campaign finance reports.

A.R.S. § 16-907(C). There is no magic wording for a follow-up request.

A.R.S. § 16-907(C).

A.R.S. § 16-907(A).

Department of State, Office of the Secretary of State

Election Services Division

Arizona Campaign Finance: Candidate Committees

the treasurer.

Since the treasurer is ultimately responsible for campaign finance reporting, it

is only fair to give the treasurer final say-so over financial transactions.

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.

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.

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.

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.

joint contribution is normally assumed to be allocated 50/50 between spouses, but any other

allocation percentage chosen by joint contributors is permissible.

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

(based on the date of the check), mails it on the 29

(based on the postmark), is delivered

to the committee’s mailbox on the 2

, is retrieved by the committee on the 5

, and opened by

the committee on the 8

, 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.

“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).

A.R.S. § 16-907(A).

A.R.S. § 16-907(E)-(F).

A.R.S. § 16-907(F).

Joint contributions require the name, address, occupation and employer for both joint contributors.

A.R.S. § 16-926(C)(1).

Department of State, Office of the Secretary of State

Election Services Division

Arizona Campaign Finance: Candidate Committees

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 committee signs the check.

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.

For an

online transaction, the expenditure or disbursement is deemed made on the date that the

committee authorizes the transaction.

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.

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.

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.

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.

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.

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.

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

A.R.S. § 16-926(C)(2).

A.R.S. § 16-926(C)(3).

A.R.S. § 16-907(B)(1).

A.R.S. § 16-907(B).

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”).

Department of State, Office of the Secretary of State

Election Services Division

Arizona Campaign Finance: Candidate Committees

campaign account.

The committee treasurer is not permitted to commingle or transfer money

between these accounts.

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.

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.

⋅ 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.

⋅ 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

A.R.S. § 16-907(B)(1).

A.R.S. § 16-907(A).

A.R.S. § 16-907(D)(1).

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).

104

Compare A.R.S. § 16-907(D)(4) (record keeping statute) with A.R.S. § 16-926(B)(3) (reporting statute).

105

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).

Department of State, Office of the Secretary of State

Election Services Division

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.

107

A.R.S. § 16-907(I).

108

A.R.S. § 16-905(F); see also 26 U.S.C. § 527.

109

A.R.S. § 16-901(11).

110

A.R.S. § 16-913(D). Any PAC or political party contributor must be registered with the appropriate filing officer in Arizona.

111

A.R.S. §§ 16-913(D); 16-916(A).

112

Publicly funded candidates may not accept any contributions whatsoever, except very limited “early contributions.” A.R.S. § 16-

941(A)(1).

113

A.R.S. §§ 16-911 to 16-917.

Department of State, Office of the Secretary of State

Election Services Division

Arizona Campaign Finance: Candidate Committees

Finally, contributions are reportable: the committee must gather identifying information

about the contributor and file regular campaign finance reports.

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

114

A.R.S. § 16-901(40); see also A.R.S. § 16-913(F).

115

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).

Department of State, Office of the Secretary of State

Election Services Division

Arizona Campaign Finance: Candidate Committees

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 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

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.

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.

122

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.

Department of State, Office of the Secretary of State

Election Services Division

Arizona Campaign Finance: Candidate Committees

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.

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

credit card transaction or online contribution should be

accompanied with some evidence of joint account status,

however.

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

128

52 U.S.C. § 30121; 11 C.F.R. § 110.20.

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).

What’s new?

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.

Department of State, Office of the Secretary of State

Election Services Division

Arizona Campaign Finance: Candidate Committees

Legislature has adjourned sine die but there is still regular session legislation that is pending

the Governor’s signature or veto.

133

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 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

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

135

A “political action committee” is defined as an entity “required to register” with the applicable filing officer in Arizona. A.R.S. §

16-901(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.

Department of State, Office of the Secretary of State

Election Services Division

Arizona Campaign Finance: Candidate Committees

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

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

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).

146

A.R.S. § 16-917(C)(1).

147

A.R.S. § 16-917(C)(4); see also A.R.S. §§ 16-907(C) & (D)(2); 16-926(B)(2)(a)(i).

148

A.R.S. § 16-917(C)(1)-(2).

Department of State, Office of the Secretary of State

Election Services Division

Arizona Campaign Finance: Candidate Committees

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

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.

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.

149

A.R.S. § 16-917(D).

Department of State, Office of the Secretary of State

Election Services Division

Arizona Campaign Finance: Candidate Committees

4. Contribution limits

Contribution limits for the 2017-2018 election cycle are as follows:

150

A.R.S. § 16-913(A); see also A.R.S. § 16-933(A)(3).

151

A.R.S. § 16-913(A); see also A.R.S. § 16-933(A)(3).

152

A.R.S. § 16-913(A); see also A.R.S. § 16-933(A)(3).

153

A.R.S. § 16-914(A)(3). Base contribution limits reduced by 20% per A.R.S. § 16-941(B), but increased by $100 under A.R.S. § 16-

931(A)(2).

154

A.R.S. § 16-914(A)(2). Base contribution limits reduced by 20% per A.R.S. § 16-941(B), but increased by $100 under A.R.S. § 16-

931(A)(2).

155

A.R.S. § 16-914(A)(1). Base contribution limits are increased by $100 pursuant to A.R.S. § 16-931(A)(2).

156

A.R.S. § 16-914(B).

157

A.R.S. § 16-914(B).

158

A.R.S. § 16-914(B).

159

A.R.S. § 16-915(A)(3). Base contribution limits reduced by 20% per A.R.S. § 16-941(B), but increased by $100 under A.R.S. § 16-

931(A)(2).

160

A.R.S. § 16-915(A)(2). Base contribution limits reduced by 20% per A.R.S. § 16-941(B), but increased by $100 under A.R.S. § 16-

931(A)(2).

161

A.R.S. § 16-915(A)(1). Base contribution limits are increased by $100 pursuant to A.R.S. § 16-931(A)(2).

162

A.R.S. § 16-916(A).

163

A.R.S. § 16-916(A).

164

A.R.S. § 16-916(A).

165

A.R.S. § 16-916(A).

166

A.R.S. § 16-916(A).

167

A.R.S. § 16-916(A).

168

A.R.S. § 16-913(D).

169

A.R.S. § 16-913(D).

170

A.R.S. § 16-913(D).

171

A.R.S. § 16-916(A).

172

A.R.S. § 16-916(A).

173

A.R.S. § 16-916(A).

Recipient

Statewide Candidate

(privately financed)

Legislative Candidate

(privately financed)

Local Candidate

(privately financed)

PAC

Political

Party

Contributor

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)

150

Generally prohibited

(except surplus

funds)

151

Generally prohibited

(except surplus

funds)

152

Unlimited Unlimited

PAC without Mega PAC

status (using non-

corp./non-union funds)

$5,100

153

$5,100

154

$6,350

155

Unlimited Unlimited

PAC with Mega PAC

status (using non-

corp./non- union funds)

$10,200

156

$10,200

157

$12,700

158

Unlimited Unlimited

Political Party (using

non-corp./non-union

funds)

$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

Corporation Prohibited

162

Prohibited

163

Prohibited

164

Unlimited Unlimited

Limited Liability Co. Prohibited

165

Prohibited

166

Prohibited

167

Unlimited Unlimited

Trust, Joint Venture, Co-

op, or Other Unincorp.

Org. or Ass’n

Prohibited

168

Prohibited

169

Prohibited

170

Unlimited Unlimited

Union

Prohibited

171

Prohibited

172

Prohibited

173

Unlimited Unlimited

Department of State, Office of the Secretary of State

Election Services Division

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

⋅ 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).

175

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.

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 post-

election report is generally

filed later than under prior

law.

Department of State, Office of the Secretary of State

Election Services Division

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

· A local city council member resigns from office in May 2016. On June 15

, a special/first

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.

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

Arizona Campaign Finance: Candidate Committees

· 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.

· 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

185

A.R.S. § 16-913(D).

186

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).

Department of State, Office of the Secretary of State

Election Services Division

Arizona Campaign Finance: Candidate Committees

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 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.

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%.

191

A.R.S. § 16-913(B)(1)-(2).

192

A.R.S. § 16-913(B)(2).

193

A.R.S. § 16-913(B)(3).

194

A.R.S. § 16-913(B)(3).

Department of State, Office of the Secretary of State

Election Services Division

Arizona Campaign Finance: Candidate Committees

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.

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

195

A.R.S. §§ 16-901(40); 16-913(F).

196

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).

Department of State, Office of the Secretary of State

Election Services Division

Arizona Campaign Finance: Candidate Committees

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 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.

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).

204

A.R.S. § 16-901(40)(g).

205

A.R.S. § 16-901(40)(h); see also A.R.S. § 16-901(26).

206

A.R.S. § 16-926(B)(2)(viii).

Department of State, Office of the Secretary of State

Election Services Division

Arizona Campaign Finance: Candidate Committees

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 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

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)

209

A.R.S. § 16-926(B)(4).

210

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).

Department of State, Office of the Secretary of State

Election Services Division

Arizona Campaign Finance: Candidate Committees

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 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

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 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).

Department of State, Office of the Secretary of State

Election Services Division

Arizona Campaign Finance: Candidate Committees

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

funds.

224

However, the legal and accounting exemption allows professional firms to donate

those 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

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.

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

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.

225

A.R.S. § 16-911(B)(11).

226

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.

Department of State, Office of the Secretary of State

Election Services Division

Arizona Campaign Finance: Candidate Committees

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

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

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.

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. §

41-133(A).

234

A.R.S. § 41-133(C).

235

A.R.S. § 41-133(D).

236

A.R.S. § 41-133(D).

Department of State, Office of the Secretary of State

Election Services Division

Arizona Campaign Finance: Candidate Committees

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

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

Officeholder

Governor

Secretary

of State

Attorney

General

Treasurer

Superintendent

of Public

Instruction

Mine

Inspector

Corporation

Commissioner

Legislator

Aggregate

Contribution

Limit of

Personal

Monies

$31,635 $16,638 $16,638 $8,343 $8,343 $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

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).

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.

242

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.

Department of State, Office of the Secretary of State

Election Services Division

Arizona Campaign Finance: Candidate Committees

Officeholder

Governor

Secretary

of State

Attorney

General

Treasurer

Superintendent

of Public

Instruction

Mine

Inspector

Corporation

Commissioner

Legislator

2017-2018

Aggregate

Contribution

Limits

$105,450 $55,460 $55,460 $27,810 $27,810 $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.

Spending limits

Aggregate spending limit. An elected official may not spend more than the aggregate

contribution limit during the election cycle:

247

Officeholder

Governor

Secretary

of State

Attorney

General

Treasurer

Superintendent

of Public

Instruction

Mine

Inspector

Corporation

Commissioner

Legislator

2017-2018

Aggregate

Spending

Limits

$105,450 $55,460 $55,460 $27,810 $27,810 $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 30

of the year when the officeholder seeks election.

248

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).

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).

Department of State, Office of the Secretary of State

Election Services Division

Arizona Campaign Finance: Candidate Committees

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 30

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

· 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.

Enforcement penalties. Violations with respect to officeholder accounts are enforced in

the same manner as campaign finance violations.

252

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.

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. § 16-938(E)(2) take precedence in enforcement.

Department of State, Office of the Secretary of State

Election Services Division

Arizona Campaign Finance: Candidate Committees

G. Making Contributions

A candidate committee may make contributions as follows:

As indicated above, contributions to other candidates are presumptively prohibited.

258

candidate committee may contribute to another candidate committee only under the following

conditions:

259

· 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

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).

259

A.R.S. § 16-933(A)(3)(a).

260

See A.R.S. § 16-311(A). The contribution need not be made before the contributing candidate finishes his or her term of office.

Recipient

Statewide Candidate

(privately financed)

Legislative Candidate

(privately financed)

Local Candidate

(privately

financed)

PAC Political Party

Contributor

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

PAC without

Mega PAC status

(using non-

corp./non-union

funds)

$5,100 $5,100 $6,350 Unlimited Unlimited

PAC with Mega

PAC status

(using non-

corp./non-union

funds)

$10,200 $10,200 $12,700 Unlimited Unlimited

Political Party

(using non-

corp./non-union

funds)

$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

Department of State, Office of the Secretary of State

Election Services Division

Arizona Campaign Finance: Candidate Committees

· 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

· Delivered by hand, by mail, or electronically, the disclosure must be clearly readable;

269

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).

269

A.R.S. § 16-925(D)(2).

Department of State, Office of the Secretary of State

Election Services Division

Arizona Campaign Finance: Candidate Committees

· 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

A committee is not required to include a disclaimer in the following situations:

· 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

· A published book or a documentary film or video.

276

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

All jurisdictions are required to provide the option for electronic

filing.

278

270

A.R.S. § 16-925(D)(3).

271

A.R.S. § 16-925(D)(4).

272

A.R.S. § 16-925(E)(1).

273

A.R.S. § 16-925(E)(2).

274

A.R.S. § 16-925(E)(3).

275

A.R.S. § 16-925(E)(4).

276

A.R.S. § 16-925(E)(7).

277

A.R.S. § 16-927(B).

278

A.R.S. §§ 16-927(A)(1)-(2); 16-928(C).

Department of State, Office of the Secretary of State

Election Services Division

Arizona Campaign Finance: Candidate Committees

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

Report Due

2017 Cumulative Report: Jan. 1, 2017 to Dec. 31, 2017 Jan. 1, 2018 to Jan. 15, 2018

2018 1

Quarter Report: Jan. 1, 2018 to Mar. 31, 2018

Apr. 1, 2018 to Apr. 16, 2018

2018 2

Quarter Report: Apr. 1, 2018 to June 30, 2018

July 1, 2018 to July 16, 2018

2018 Aug. Pre-Election Report: July 1, 2018 to Aug. 11,

2018

Aug. 12, 2018 to Aug. 20,

2018

2018 3

Quarter Report: Aug. 12, 2018 to Sep. 30, 2018 Oct. 1, 2018 to Oct. 15, 2018

2018 Oct. Pre-Election Report: Oct. 1, 2018 to Oct. 20,

2018

Oct. 21, 2018 to Oct. 29, 2018

2018 4

Quarter Report: Oct. 21, 2018 to Dec. 31, 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

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,

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 4

qtr in

2017 through 4

qtr of 2018. Effective April 15, 2018, any reporting deadlines that fall on a weekend or holiday will be extended to

the next business day. A.R.S. §§ 1-243(A) and 1-303.

282

A.R.S. § 16-927(B).

283

A.R.S. § 16-927(C).

284

A.R.S. § 16-928(A).

285

A.R.S. § 16-928(A)(1).

Department of State, Office of the Secretary of State

Election Services Division

Arizona Campaign Finance: Candidate Committees

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

· Contributions from candidate committees

293

· Contributions from political action committees

294

· Contributions from political parties

295

· Contributions from partnerships

296

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.

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.

Department of State, Office of the Secretary of State

Election Services Division

Arizona Campaign Finance: Candidate Committees

· 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

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

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).

306

A.R.S. § 16-926(B)(3).

307

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.

Department of State, Office of the Secretary of State

Election Services Division

Arizona Campaign Finance: Candidate Committees

· 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

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

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).

320

A.R.S. § 16-926(F).

321

A.R.S. § 16-926(B)(5).

Department of State, Office of the Secretary of State

Election Services Division

Arizona Campaign Finance: Candidate Committees

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

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:

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.

324

A.R.S. § 16-934(B)(2)(b).

Department of State, Office of the Secretary of State

Election Services Division

Arizona Campaign Finance: Candidate Committees

· 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

· 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

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:

325

“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).

336

A.R.S. § 16-934(A).

Department of State, Office of the Secretary of State

Election Services Division

Arizona Campaign Finance: Candidate Committees

· 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

· Accepting a contribution that has been earmarked for another candidate.

341

· Knowingly accepting a contribution in excess of applicable contribution limits.

342

337

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).

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.

Department of State, Office of the Secretary of State

Election Services Division

Arizona Campaign Finance: Candidate Committees

· 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

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:

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

Arizona Campaign Finance: Candidate Committees

· 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 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;

351

A.R.S. § 16-922(B).

352

A.R.S. § 16-922(C)(1).

353

A.R.S. § 16-922(C)(2).

354

A.R.S. § 16-922(C)(3).

355

“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

Arizona Campaign Finance: Candidate Committees

· 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 officer for statewide and legislative candidates, whereas the county, city or town

attorney (as applicable) is the enforcement officer for local candidates.

363

356

A.R.S. § 16-922(D).

357

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).

363

A.R.S. § 16-928(A).

Department of State, Office of the Secretary of State

Election Services Division

Arizona Campaign Finance: Candidate Committees

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

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.

Department of State, Office of the Secretary of State

Election Services Division

Arizona Campaign Finance: Candidate Committees

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Department of State, Office of the Secretary of State

Election Services Division

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

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

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

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

Department of State, Office of the Secretary of State

Election Services Division

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

365

See H.B. 2297, § 14 (52

Leg., 2

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).

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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

Arizona Campaign Finance: Candidate Committees

seek a maximum contribution from an individual donor under 2016 contribution

limits ($5,000) to retire 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.

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Committees are encouraged to contact the Secretary of State’s Office if they have further

questions about the transition process.

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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

Arizona Campaign Finance: Candidate Committees

Appendix C

Sample Statement of Organization

[page intentionally left blank]

Arizona Secretary of State Revision 11/5/16

COMMITTEE ID NUMBER

(office use only)

STATE OF ARIZONA

COMMITTEE STATEMENT

OF ORGANIZATION



Initial Application

 Amended Application

Date: _______________

MMITTEE TYPE (choose one):

 Candidate

Committee Name (required):

(first or last name & office)

Candidate Information: Candidate’s Name (required):

Candidate’s mailing address (required):

Candidate’s email address (required):

Candidate’s phone number (required):

Candidate’s website (if any):

Office Sought (choose one):  Governor  Secretary of State  Attorney General  State Treasurer

 Superintendent of Public Instruction  State Mine Inspector  Corporation Commissioner

 State Senate  State House of Representatives  District (required):

 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  Green  Libertarian 

Fill Online, Printable, Fillable, Blank 2018 Campaign Handbook (City of Page) Form

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Fillable 2018 Campaign Handbook (City of Page)

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