1
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
2
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.
© 2018 by the Election
Services Division. All rights
reserved. No part of this book
may be reproduced or
transmitted in any form or by
any means for a commercial
purpose.
The Office strives for
accuracy in our publications.
If you find an error, please
contact us at (602) 542-8683.
Disclaimer
The Office cannot offer legal
advice or otherwise offer
recommendations on
document preparation. The
Office advises consultation
with an attorney in such
cases.
Contact us
Mailing address for all
correspondence or filings:
Arizona Secretary of State
Election Services Division
1700 W. Washington St. 7
th
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
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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
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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
5
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.
1
A. Establishing a Candidate Committee
With few exceptions, a candidate generally needs to form a campaign committee before
commencing his or her campaign in earnest.
1. When to form a campaign committee
A candidate seeking election to state, county, or city/town public office, including a judge
seeking to be retained in office,
2
is required to form a candidate committee upon reaching a
certain level of financial activity. Specifically, a prospective candidate who has received
contributions or made expenditures (in any combination) of at least $1,100 in connection with
his or her candidacy is required to form a committee within 10 days of reaching that threshold.
3
For example, receiving a $600 check from a family friend while spending $500 on campaign
supplies will trigger the registration requirement. Use of a candidate’s own personal monies
for electoral purposes counts towards the $1,100 threshold as well.
4
If a candidate never
reaches the $1,100 threshold, however, registration and reporting are not required.
Spending “in connection with” one’s candidacy includes more than just the obvious
indicators that someone is running for office, such as receiving contributions or purchasing
campaign signs.
5
It also includes (but is not necessarily limited to) activities such as conducting
polling, purchasing email lists, hiring attorneys or consultants, taking out a loan, incurring
travel expenses, leasing facilities, purchasing supplies or equipment, or any other expense
incurred for campaign purposes. Keep in mind, any contributions received or expenditures
incurred before registration are eventually reportable, so a candidate must keep track of all
financial activity from dollar one.
6
1
This Guide is primarily intended for privately financed candidates. Statewide and legislative candidates using public financing
should contact the Arizona Citizens Clean Elections Commission to confirm additional campaign finance requirements that may be
applicable. The Clean Elections Commission also asserts that it has jurisdiction to impose penalties against privately financed
candidates for statewide and legislative office for failure to comply with campaign finance reporting requirements. For additional
information on these penalties, please refer to A.R.S. § 16-942 and the rules adopted by the Clean Elections Commission.
2
A.R.S. §§ 16-901(7); 16-905(A). Arizona Supreme Court Justices, Court of Appeals judges, and Superior Court judges in Maricopa,
Pima and Pinal Counties seek retention in office pursuant to Ariz. Const. Art. VI, § 38 after their initial appointment. Although they
are required to form campaign committees if they reach the requisite financial threshold, Arizona judicial ethics rules prohibit
judges from personally soliciting campaign contributions. See Ariz. Code of Judicial Conduct, Rule 4.1(A)(6).
3
A.R.S. §§ 16-905(A); 16-906(A). Registration thresholds are increased by $100 pursuant to A.R.S. § 16-931(A)(1).
4
A candidate’s “personal monies” include all sources of income or wealth available to the candidate or candidate’s spouse. A.R.S. §
16-901(40). A candidate’s use of personal monies is discussed more in depth in Section E(2).
5
Candidate registration is triggered if a candidate raises or spends at least $1,100 “in connection with” his or her candidacy. A.R.S.
§§ 16-905(A); 16-931(A)(1).
6
A.R.S. § 16-907(I).
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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.
7
For statewide and legislative candidates, that means
filing a statement of organization with the Secretary of State
via the online campaign finance system available at
https://apps.azsos.gov/apps/election/cfs/filing/Login.aspx.
8
County candidates and candidates for certain special
taxing districts file either with the County Recorder’s Office
or with the election department in that particular county.
9
The specific contacts for each county are listed in Appendix
A. School district candidates must file with the County
School Superintendent.
10
At the city and town level, statements of organization
must be filed with the city or town clerk.
11
Contact
information for each city and town may be found through
the League of Arizona Cities and Towns at
http://www.leagueaz.org/lgd/
.
B. Filing a Statement of Organization
1. Getting started
A candidate committee will need a few basic things to get their campaign off the ground.
7
A.R.S. § 16-906(A). A “filing officer” means the Secretary of State or the county, city or town officer in charge of elections for
that jurisdiction who accepts statements and reports for those elections. A.R.S. § 16-901(27).
8
A.R.S. § 16-928(A)(1).
9
A.R.S. § 16-928(A)(2).
10
Despite that A.R.S. § 16-928(A)(2) makes the “county officer in charge of elections” the filing officer for school district elections,
A.R.S. § 15-422(A) requires that nominating petitions be filed with the county school superintendent.
11
A.R.S. § 16-928(A)(3).
What’s new?
S.B. 1516 (2016) increased the
committee registration
threshold from $500 to $1,000
(now $1,100), which gives
committees a degree of
autonomy before having to
register. What’s more, for
those candidates who know
they will not spend much
money, there is no such thing
as a “Threshold Exemption
Statement” anymore. These
low-spending candidates need
not file any documents before
campaigning for office.
S.B. 1516 also eliminated the
concept of an exploratory
committee. Exploratory
candidates were permitted to
campaign without specifying
the office sought, but were still
required to register (upon
meeting the previous $500
threshold) and file campaign
finance reports. Under S.B.
1516, candidates may “explore”
a run for office by keeping
their financial activity below
$1,100, but once that threshold
is reached, a “candidate
committee” must be formed.
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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.
12
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.
13
Only candidate committees are permitted
to have the same person act as chairperson and
treasurer.
The committee will also need basic contact
information. It is perfectly acceptable to use the
candidate’s own contact information, but some
candidates establish a separate mailing address and/or
email address for their committee. Whichever choice is
made, the candidate should provide addresses that the
candidate will check often: donors will send checks that
must be timely reported, and election officials may
send emails with important announcements or
notices.
14
Finally, a candidate committee must establish a
bank account and be prepared to disclose the name of
its bank or other financial institution.
15
(Please do not list account numbers in a statement of
organization; list just the bank name). In some cases, a committee might have to forecast in its
statement of organization the bank where it intends to open an account. This is because some
banks might require a committee to have certain formalities already established prior to
opening an account, such as filing a statement of organization, incorporating with the Arizona
Corporation Commission, and/or obtaining a taxpayer ID number from the Internal Revenue
Service (IRS).
12
A.R.S. §§ 16-907(A); 16-926(B)(5); 16-934(B).
13
A.R.S. § 16-906(B)(3) (“the candidate may serve as both chairperson and treasurer”). Only candidate committees are permitted to
combine the chairperson and treasurer positions.
14
A.R.S. § 16-906(B)(6). A condition of filing a statement of organization is that the candidate agrees to accept all notices via email
in lieu of certified mail or personal delivery. Failure to regularly check one’s email will not be considered a valid defense to any
enforcement action.
15
A.R.S. § 16-906(B)(5).
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.
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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.
16
2. Components of a statement of organization
A candidate committee is required to file a statement of organization containing
the following information:
Committee Information
· Committee name
17
· The committee name must include the candidate’s first or last name and, if the candidate
has a candidate committee open for more than one office, the office sought.
18
· Candidate’s political party (if applicable)
19
· A candidate must identify his or her political party only if running for a partisan office
where the candidate’s party affiliation will appear on the ballot.
20
· Committee mailing address
21
· If the committee has its own mailing address separate from the candidate’s, chairperson’s
or treasurer’s address, this mailing address should be listed.
· Otherwise, if the committee does not have its own mailing address, the committee may
list the mailing address for the candidate, chairperson, treasurer, committee’s political
consultant, or any other person who speaks for the candidate.
· A P.O. Box may serve as a mailing address.
· Committee email address
22
· If the committee has its own email address separate from the candidate’s, chairperson’s
or treasurer’s email address, the committee’s email address should be listed.
16
A.R.S. § 16-907(B)(1).
17
A.R.S. § 16-906(B)(1).
18
A.R.S. § 16-906(B)(1)(a). It is not necessary to identify the district with the “office sought,” however legislative candidates must
specify whether they are running for the Senate or House of Representatives. Abbreviations and shorthand phrases are
permissible. For example, “Johnson 4 House” or “Smith Corp. Comm. Committee” are sufficiently descriptive committee names. If
applicable, committee names must include the office sought because candidates are permitted to establish multiple candidate
committees for different offices; therefore, it is necessary for any fundraising solicitations or advertising disclaimers properly
disclose which committee actually paid for the expenditure. See A.R.S. § 16-906(F) (barring multiple committees for the same office
but imposing no restrictions on forming multiple committees for different offices); § 16-925(A)(1) (requiring “paid for” followed by
the committee name on any fundraising solicitation or political advertisement).
19
A.R.S. § 16-906(B)(4).
20
Partisan candidates must be registered with the political party for which they seek a nomination at the time they form their
committee and through the period when they file a nomination paper to seek ballot access. A.R.S. § 16-311(A).
21
A.R.S. § 16-906(B)(1).
22
A.R.S. § 16-906(B)(1).
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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)
23
· A committee must identify its website only if the committee or candidate has a campaign
website.
· Committee telephone number
24
· If the committee has its own telephone number separate from the candidate, chairperson
or treasurer, that number should be listed.
· Otherwise, if the committee does not have its own telephone number, the committee
should list the telephone number for the candidate, chairperson, treasurer, committee’s
political consultant, or any other person who speaks for the candidate.
· Name of any banks or other financial institutions used by the committee
25
· Please do not list bank account numbers.
Chairperson Information
· Chairperson’s name
26
A candidate may serve as chairperson of his or her own campaign committee.
27
· Chairperson’s physical location or street address
28
The chairperson must provide a physical or street address where he or she can be located,
and therefore may not list a P.O. Box.
· Chairperson’s email address
29
The chairperson should list a personal or work email address that is separate from the
committee’s generic email address. This is intended to ensure there are multiple ways to
reach a committee via email.
· Chairperson’s telephone number
30
The chairperson should list a personal or work telephone number that is separate from
the committee’s telephone number. This is intended to ensure there are multiple ways to
reach a committee via telephone.
· Chairperson’s occupation
31
The occupation should be sufficiently specific to identify the chairperson’s line of
work.
23
A.R.S. § 16-906(B)(1).
24
A.R.S. § 16-906(B)(1).
25
A.R.S. § 16-906(B)(5).
26
A.R.S. § 16-906(B)(3).
27
A.R.S. § 16-906(B)(3).
28
A.R.S. § 16-906(B)(3).
29
A.R.S. § 16-906(B)(3).
30
A.R.S. § 16-906(B)(3).
31
A.R.S. § 16-906(B)(3).
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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
32
If the chairperson has multiple employers, list the chairperson’s primary or principal
employer.
If the chairperson is self-employed, list the name, company, or title through which the
chairperson does business.
“Retired,” “homemaker,” “unemployed,” “student,” and the like are sufficient
employment descriptions, if applicable.
Treasurer Information
· Treasurer’s name
33
A candidate may serve as treasurer of his or her own campaign committee.
34
· Treasurer’s physical location or street address
35
The treasurer must provide a physical or street address where he or she can be located,
and therefore may not list a P.O. Box.
· Treasurer’s email address
36
The treasurer should list a personal or work email address that is separate from the
committee’s generic email address. This is intended to ensure there are multiple ways to
reach a committee via email.
· Treasurer’s telephone number
37
The treasurer should list a personal or work telephone number that is separate from the
committee’s telephone number. This is intended to ensure there are multiple ways to
reach a committee via telephone.
· Treasurer’s occupation
38
The occupation should be sufficiently specific to identify the treasurer’s line of work.
“Attorney,” “accountant,” “doctor,” and the like are sufficiently descriptive. A
“consultant” should be more specifically identified, such as “political consultant”
or “management consultant.”
32
A.R.S. § 16-906(B)(3).
33
A.R.S. § 16-906(B)(3).
34
A.R.S. § 16-906(B)(3).
35
A.R.S. § 16-906(B)(3).
36
A.R.S. § 16-906(B)(3).
37
A.R.S. § 16-906(B)(3).
38
A.R.S. § 16-906(B)(3).
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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
39
If the treasurer has multiple employers, list the
treasurer’s primary or principal employer.
If the treasurer is self-employed, list the name,
company, or title through which the treasurer
does business.
“Retired,” “homemaker,” “unemployed,”
“student,” and the like are sufficient employment
descriptions, if applicable.
A sample Statement of Organization is included in
Appendix C.
After providing this information, the candidate,
chairperson, and treasurer must swear under penalty of
perjury that they (1) have read this Guide (and/or any
additional guide provided by a local filing officer), (2)
agree to comply with Arizona campaign finance law, and
(3) agree to accept all notifications, statements, service of
process, or other important documents via the committee’s
email address.
40
Please note, because official notifications will be exclusively sent via email, the candidate
and committee officers should list email addresses that will be routinely monitored. In the
event a campaign finance complaint is filed against the committee, for example, the filing
officer will not typically accept failure to monitor the email account(s) as a legitimate defense
for failing to respond to the complaint.
Original signatures are not required for a statement of organization, given that typed or
electronic signatures are deemed to have the same legal effect.
41
Once registration is complete, the filing officer will issue an identification number for the
candidate committee.
42
This identification number will be used to identify the committee in
future correspondence.
39
A.R.S. § 16-906(B)(3).
40
A.R.S. § 16-906(B)(6). Because official notifications will be exclusively sent via email, the candidate and committee officers
should list email addresses that will be routinely monitored. In the event a campaign finance complaint is later filed, for example,
the filing officer will not typically accept failure to monitor the email account(s) as a legitimate defense to enforcement.
41
Original signatures are no longer required because a filing officer must provide an electronic filing option for all candidates.
A.R.S. § 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.
42
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.
12
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 committeeis eligible to
participate in the Arizona Citizens Clean Elections funding program. A publicly funded
candidate must comply with the provisions of the Citizens Clean Elections Act, including filing
an Application for Certification as a Participating Candidate with the Secretary of State’s Office
before the end of the applicable qualifying period.
43
Please contact the Citizens Clean Elections
Commission for further information.
44
The City of Tucson also operates a Public Funds Matching Program. Please contact the
Tucson City Clerk’s Office for further information.
45
4. Changes in committee information
If there is a change in any committee information outlined in Section B(2) above, a
committee must file an amended statement of organization within ten days of the change.
46
5. Forming multiple committees
From a campaign finance perspective, a candidate may only have one campaign
committee in existence for the same office during the same election cycle.
47
This prevents a
candidate from subverting contribution limits by having donors contribute to multiple affiliated
committees.
48
In the event a candidate seeks to open multiple committees for the same office, filing
officers are authorized to reject the superfluous statements of organization.
49
The more likely scenario involves a candidate who runs for the same office in consecutive
election cycles. In that case, it is not necessary to open a new campaign committee for the next
election cycle while terminating the previous committee. Rather, it is acceptable to continue
using the previously-existing committee and amend that committee’s statement of organization
to make any necessary changes.
50
A candidate may simultaneously maintain multiple committees for different offices;
however, that does not necessarily mean the candidate is permitted to freely transfer money
43
A.R.S. § 16-950.
44
Visit www.azcleanelections.gov.
45
Visit www.tucsonaz.gov/clerks/campaign-finance-information.
46
A.R.S. § 16-906(C).
47
A.R.S. § 16-906(F). Other Arizona laws prohibit a candidate from submitting multiple nomination papers to run for multiple
offices. See e.g. Ariz. Const. Art. 22, § 18; A.R.S. §§ 38-296 and 38-296.01.
48
For further guidance on operating or fundraising with a 2016 or earlier-formed committee, please see Appendix B.
49
Even if not rejected by the filing officer, the candidate would be subject to a campaign finance complaint for maintaining multiple
committees for the same office in violation of A.R.S. § 16-906(F).
50
If a candidate closes a committee and reopens another committee for the same office during the same election cycle, contribution
limits will not reset for the new committee. Contributions to the original committee will be deemed to be contributions to the new
committee, so both committees must keep accurate records to reconcile both committees’ financial activities.
13
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.
51
C. Recordkeeping and Financial Management
A candidate committee is required to maintain financial records. The legal responsibility
for compliance falls on the committee treasurer, but many candidates act as their own
treasurer, therefore it is imperative that candidates remain actively involved in financially
managing their own campaigns.
52
1. Gathering contributor information
Often the lifeblood of a thriving campaign is fundraising. But when a campaign receives
contributions, it is important that the campaign conduct its due diligence to properly document
these contributions. Different rules apply depending on the source and the amount of the
contribution.
Individual contributions over $50. For contributions from individuals who contribute
at least $50 during the election cycle, a campaign committee is required to record and report
each contributor’s name, address, occupation, and employer.
53
Here are the standards that
apply:
· Contributor’s name
54
The contributor must provide a first and last name.
55
If a joint contribution is made by a married couple, each spouse’s first and last name
must be provided to the committee.
· Contributor’s residential location or street address
56
Only a residential address or location may be provided.
57
A work address or P.O. Box is
not permitted.
· Contributor’s occupation
58
The occupation should be sufficiently specific to identify the contributor’s line of work.
51
In adjudicating any campaign finance complaint, a filing officer is more likely to find reasonable cause that a campaign finance
violation occurred if one committee appears to draw resources from another committee in a way that subverts campaign finance
limits or disclosure requirements. For example, paying for a generic campaign ad out of one campaign account that arguably
bolsters candidacies for multiple offices is more likely to be deemed a campaign finance violation.
52
A.R.S. § 16-907(A).
53
A.R.S. § 16-901(29). A candidate committee must fully “identify” any individual who contributes at least $50 during the election
cycle. A.R.S. §§ 16-907(C); 16-926(B)(2)(a)(i).
54
A.R.S. § 16-901(29)(a).
55
A.R.S. § 16-901(29)(a).
56
A.R.S. § 16-901(29)(a).
57
A.R.S. § 16-901(29)(a).
58
A.R.S. § 16-901(29)(a).
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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
59
If the contributor has multiple employers, the contributor’s primary or principal
employer should be provided.
If the contributor is self-employed, the contributor should list the name, company, or
title through which he or she does business.
“Retired,” “homemaker,” “unemployed,” “student,” and the like are sufficient
employment descriptions, if applicable.
Individual contributions under $50. If an individual contributor did not give at least
$50 to a candidate’s committee during the election cycle, the committee need not report the
contributor’s name, address, occupation and employer. But the committee should attempt to
keep records of this information.
For example, if an individual contributor eventually reaches the $50 threshold during the
election cycle, the contributor’s identifying information will be required to be reported going
forward. If the committee does not track a person’s small-dollar contributions from the
beginning, it will be difficult to know when the contributor’s $50 aggregate threshold has been
reached.
Tracking these small donations is easier said than done in the real world. Campaigns are
not expected to seek identifying information during isolated or fleeting fundraising encounters,
such as when selling campaign T-shirts or raffle tickets. On the other hand, routinely raising
funds at a reoccurring political meeting or event is likely to put a candidate face-to-face with
donors who are inclined to contribute again in the future.
As a rule of thumb, contributions of $20 or less at regularly held political party raffles,
meetings, or fundraisers do not trigger an ongoing obligation to gather identifying information,
even if party members routinely attend such meetings or events.
60
Outside the context of a
political party-sponsored events, however, a candidate should err on the side of caution if there
is a substantial likelihood of encountering small dollar contributors who will exceed $50 in
contributions during the election cycle.
In the end, a campaign should always use its best judgement as to when to collect
identifying information from small dollar individual contributors.
59
A.R.S. § 16-901(29)(a).
60
If there is an entrance fee that exceeds $50, however, identifying information should be reported.
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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:
61
· PAC or political party’s name
62
A PAC or party should provide its name as reflected in its statement of organization or
articles of incorporation.
63
· PAC or political party’s physical location or street address
64
Only a physical address or street location may be provided.
65
A P.O. Box is not permitted.
Partnership contributions. For partnership contributions in any amount, a
candidate committee is required to record and report the partnership’s name and
address:
· Partnership’s name
66
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
67
Only a physical address or street location may be provided.
68
A P.O. Box is not permitted.
· Individual contributing partners’ information
A partnership must provide the name, address, occupation and employer for each
individual partner who has agreed to participate in the partnership’s contribution. For
more information about partnership contributions, please see Section D(2) of this Guide.
Using standard disclaimers. Candidate committees not only must ask for identifying
information, they must also inform the contributor that they are legally required to do so.
69
Thus, when sending out a fundraising solicitation for a forthcoming fundraiser, the following
disclaimer will normally suffice:
“The committee is legally required to request identifying information from each
contributor.
70
61
A.R.S. § 16-901(29)(b). All PAC and political party contributors must be identified, as there is no $50 reporting threshold similar
to what exists in the individual context. Compare A.R.S. § 16-926(B)(2)(a)(i) with A.R.S. § 16-926(B)(2)(a)(iii)-(iv).
62
A.R.S. § 16-901(29)(b).
63
Only PACs and political parties registered in Arizona are permitted to make contributions to candidate committees. See A.R.S. §
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]”).
64
A.R.S. § 16-901(29)(b).
65
A.R.S. § 16-901(29)(b).
66
A.R.S. § 16-901(29)(b).
67
A.R.S. § 16-901(29)(b).
68
A.R.S. § 16-901(29)(b).
69
A.R.S. § 16-907(C).
70
The content of the disclaimer is not statutorily prescribed. Any substantially similar disclaimer will suffice.
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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.
71
Some
contributions are bound to be lacking, however. These are known as “incomplete
contributions.”
72
If a campaign committee discovers an incomplete contribution, it is required
to affirmatively seek out the missing information in order to file a complete and accurate
campaign finance report.
73
The committee is not held to a standard of perfection, since it need only make its “best
effort” to acquire the missing information. But in order to qualify as a “best effort,” the
committee treasurer (or the treasurer’s agent) must make at least one attempted written
communication, such as by email, text message, private message through social media or other
similar communication, or at least one attempted oral communication to the contributor that is
documented in writing.
74
In either case, the treasurer should keep written records
documenting these attempts.
75
And remember, each follow-up request for information must
clearly identify the missing information sought and inform the contributor that the committee
was legally required to seek that information.
76
Reporting and amending reports. If a committee’s best effort to contact a contributor
ultimately fails, the committee has done all it can do. It should timely file its campaign finance
report with the incomplete contributor information.
If a contributor belatedly provides this information to the committee after the applicable
campaign finance report was filed, the committee must amend that report with the updated
contributor information within a reasonable period.
77
If a previously small dollar individual donor reaches $50 in aggregate contributions
during the election cycle, the committee need not amend any previous reports.
2. Managing financial activity and records
The committee treasurer is charged with preserving the committee’s financial records,
managing the committee’s financial affairs, and ensuring the accuracy of campaign finance
reports.
78
This section outlines in greater detail some of these basic responsibilities.
Activities requiring treasurer approval. A candidate committee may not engage in any
financial activity without the authorization of the treasureror at least someone designated by
71
A.R.S. § 16-901(29).
72
A.R.S. § 16-901(30).
73
A.R.S. § 16-907(C).
74
A.R.S. § 16-901(5).
75
Written records of all “best efforts” attempts will normally be sufficient to defend against a campaign finance complaint alleging
incomplete campaign finance reports.
76
A.R.S. § 16-907(C). There is no magic wording for a follow-up request.
77
A.R.S. § 16-907(C).
78
A.R.S. § 16-907(A).
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Department of State, Office of the Secretary of State
Election Services Division
Arizona Campaign Finance: Candidate Committees
the treasurer.
79
Since the treasurer is ultimately responsible for campaign finance reporting, it
is only fair to give the treasurer final say-so over financial transactions.
Methods of accepting contributions. A candidate committee may accept a contribution
made by cash, check, credit card, payroll deduction, wire transfer, or any other method of
online payment.
80
The committee need not provide a receipt for cash contributions, although some
contributors might request one. Most contributions likely will be by check or credit card,
however. In those cases, the treasurer (or treasurer’s agent) has a duty to ensure that the
contributor is the account holder of the instrument.
81
For example, the committee may not
accept a check drawn from the account of “David Johnson” when the accompanying contribution
form is from “Marcy Smith.” In these cases, the committee must attempt to reconcile the
discrepancy and be prepared to issue a refund.
Special attribution rules apply to married couples. If a check has both spouses’ names
printed on it but only one spouse signs the check, the contribution is deemed to be from the
signing spouse only.
82
The same goes for credit card transactions: if a contribution is made
from a joint account, only the spouse who authorized the transaction is deemed the contributor.
A married couple seeking to make a joint contribution, therefore, must jointly sign the check or
otherwise clearly indicate that the contribution should be dually-attributed to both spouses.
83
A
joint contribution is normally assumed to be allocated 50/50 between spouses, but any other
allocation percentage chosen by joint contributors is permissible.
84
Fundraising is discussed in greater detail in Sections D and E of this Guide.
Method of recording contributions and expenditures. Determining the date of a
contribution is not always straightforward. For example, if a contributor writes a check on the
24
th
(based on the date of the check), mails it on the 29
th
(based on the postmark), is delivered
to the committee’s mailbox on the 2
nd
, is retrieved by the committee on the 5
th
, and opened by
the committee on the 8
th
, when was the contribution “made” for reporting purposes? The
answer can be important, because when a contribution was made will dictate when the
contribution must be reported.
Arizona law establishes a few rules of thumb. For contributions, the date of receipt is
either the date the committee knowingly takes possession of the contribution or the date shown
on the check, credit card payment, or other instrument.
85
“Knowing possession” means that the
committee is aware that it likely possesses a contribution (for example, the campaign’s most
recent mail delivery contains several return envelopes issued by the campaign to receive
contributions).
79
A.R.S. § 16-907(A).
80
A.R.S. § 16-907(E)-(F).
81
A.R.S. § 16-907(F).
82
A.R.S. § 16-907(F).
83
A.R.S. § 16-907(F).
84
Joint contributions require the name, address, occupation and employer for both joint contributors.
85
A.R.S. § 16-926(C)(1).
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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.
86
For credit card transaction on paper (i.e. when a committee is
presented with a paper slip that must be signed in order to charge a credit card), the
expenditure or disbursement is made on the date that authorization slip is signed.
87
For an
online transaction, the expenditure or disbursement is deemed made on the date that the
committee authorizes the transaction.
88
Finally, for an agreement to purchase goods or
services, the expenditure or disbursement is deemed made either on the date of the parties’
agreement or the date that the committee was issued a purchase order or similar invoice.
89
If a particular expenditure or disbursement does not fall into one of the above categories,
the committee is permitted to treat the expenditure/disbursement as being made on the date
that the committee authorized the expenditure/disbursement or the date that the money is
withdrawn from the committee’s account.
90
In the end, no particular reporting method must be used. This is for the committee to
determine in its discretion. However, the method utilized must be applied consistently
throughout the election cycle.
91
For example, a candidate may not selectively use the date of the
check for some contributions while using date of possession for other contributions received at
the same time. A more consistent method would entail using the date of possession for all
mailed checks and the date of the check for all in-person fundraisers. As long as the
committee’s approach is consistent, and not strategic or random, the filing officer will usually
defer to the committee’s judgment.
Maintaining separate bank accounts. An important aspect of financial management is
ensuring that certain monies are not commingled in the same bank account. For candidate
committees, this means making sure that committee monies are not commingled in the same
bank account as the candidate’s personal moniesor any other person’s monies.
92
The
committee’s monies should be held in an account under the committee’s name at the financial
institution listed in the committee’s statement of organization.
93
Additional safeguards apply if the candidate is the subject of a recall election. In the
event a recall petition serial number has been taken out, the targeted officeholder is permitted
to begin fundraising to defeat the recall effort.
94
Since the officeholder operates under a
brand-new election cycle for that purpose, any recall-related contributions, expenditures, or
disbursements must be drawn from an account separate from the officeholder’s principal
86
A.R.S. § 16-926(C)(2).
87
A.R.S. § 16-926(C)(2).
88
A.R.S. § 16-926(C)(2).
89
A.R.S. § 16-926(C)(2).
90
A.R.S. § 16-926(C)(2).
91
A.R.S. § 16-926(C)(3).
92
A.R.S. § 16-907(B)(1).
93
A.R.S. § 16-907(B).
94
See A.R.S. § 16-901(18) (creating a separate “election cycle” for a recall election, which commences with “the issuance of a recall
petition serial number”).
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Department of State, Office of the Secretary of State
Election Services Division
Arizona Campaign Finance: Candidate Committees
campaign account.
95
The committee treasurer is not permitted to commingle or transfer money
between these accounts.
96
Thus, an officeholder should contact his or her financial institution
to set up a separate bank account in the event a recall effort has been initiated.
Maintaining financial records. The committee treasurer is generally responsible for
maintaining records of all financial activity, even if the information will not be disclosed in a
campaign finance report.
97
In general, this means keeping records of all the money flowing in
and out of the committee, including:
All contributions made or received by the committee.
98
The identity of any contributor that contributed at least $50 during the election cycle,
including the name and address of all contributors (along with the occupation and
employer for individual contributors), the date of each contribution, and the date the
contribution was deposited into the committee’s account.
99
The cumulative amount contributed by each donor during the election cycle.
100
The name and address of every person who receives any money from the committee,
including the date, amount, and purpose of any expenditure or disbursement.
101
These categories largely overlap with the information that must be disclosed in campaign
finance reports, although not completely. For example, the record keeping statute only requires
a committee to preserve identifying records for donors who contribute at least $50 in the
aggregate during the election cycle, but the reporting statute requires a committee to identify
all PAC donors in its campaign finance report regardless of how much money they
contributed.
102
The record keeping statute requires the committee to keep records showing
when each contribution was deposited into the committee’s account, but reporting statute does
not require this information to be reported.
103
Finally, the reporting statute requires the
committee to keep records showing the name and address of each person that received any
disbursement from the committee, whereas the reporting statute only requires this detailed
level of information for disbursements in excess of $250 during the reporting period.
104
All the record keeping information must be maintained by the committee for a period of
two years following the election cycle in which the activity occurred.
105
Preservation of these
records is imperative, as the filing officer or the enforcement officer may request these records
from the committee at any time.
106
95
A.R.S. § 16-907(B)(1).
96
A.R.S. § 16-907(B)(1).
97
A.R.S. § 16-907(A).
98
A.R.S. § 16-907(D)(1).
99
A.R.S. § 16-907(D)(2).
100
A.R.S. § 16-907(D)(3).
101
A.R.S. § 16-907(D)(4).
102
Compare A.R.S. § 16-907(D)(2) (record keeping statute) with A.R.S. § 16-926(B)(2)(a)(iii) (reporting statute).
103
Compare A.R.S. § 16-907(D)(2) (record keeping statute) with A.R.S. § 16-926(B) (reporting statute).
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).
20
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.
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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).
22
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 valuethe 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.
23
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
A
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.
24
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.
25
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).
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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
A
partnership’s PAC contributions to a candidate committee do not require allocation among any
individual partners. These contributions are treated like any other PAC contributions.
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).
27
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 Assn
Prohibited
168
Prohibited
169
Prohibited
170
Unlimited Unlimited
Union
Prohibited
171
Prohibited
172
Prohibited
173
Unlimited Unlimited
28
Department of State, Office of the Secretary of State
Election Services Division
Arizona Campaign Finance: Candidate Committees
5. How is an “election cycledefined 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.
29
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
th
, 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).
30
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).
31
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).
32
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).
33
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).
34
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).
35
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).
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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.
37
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).
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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.
39
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
th
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).
40
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
th
of an election year, an elected official
may dispose of officeholder account monies in the following ways:
249
· Roll the money over to the elected official’s officeholder account for the next election
cycle (as long as the elected official will hold office during the next election cycle);
· Contribute the money to a PAC or political party (as long as the elected official will not
hold office during the next election cycle);
· Donate the money to a social welfare organization recognized under § 501(c)(4) of the
Internal Revenue Code (as long as the elected official will not hold office during the next
election cycle);
250
or
· Donate the money to the general fund of the State of Arizona.
Reporting responsibilities. An elected official must file officeholder account reports in
the same manner and under the same schedule as campaign finance reports.
251
Please review
Section I(1) of this Guide for the campaign finance reporting schedule.
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 receivedor 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.
41
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
A
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
42
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).
43
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
or
· 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).
44
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
st
Quarter Report: Jan. 1, 2018 to Mar. 31, 2018
Apr. 1, 2018 to Apr. 16, 2018
2018 2
nd
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
rd
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
th
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
th
qtr in
2017 through 4
th
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).
45
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.
46
Department of State, Office of the Secretary of State
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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.
47
Department of State, Office of the Secretary of State
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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
categorynot 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).
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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).
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Department of State, Office of the Secretary of State
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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
or
· In the case of a statewide or legislative candidate committee, transfer surplus monies to
the candidate’s officeholder expense account.
334
Regardless of how the committee disposes of surplus monies, the monies may not be
converted for personal use.
335
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).
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Department of State, Office of the Secretary of State
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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.
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Department of State, Office of the Secretary of State
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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).
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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).
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Department of State, Office of the Secretary of State
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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).
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Department of State, Office of the Secretary of State
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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
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 officerthe
filing officer is not required to calculate these amounts based on unsubstantiated documentation.
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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
th
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
rd
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
57
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
nd
Leg., 2
nd
Reg. Sess.) (requiring aberrant committee types to be converted into candidate committees,
PACs, or political parties by no later than June 30, 2017).
366
Section 14(B) of HB2297 allows a filing officer to administratively terminate or convert a committee after June 30, 2017 in order to
bring those committees into compliance with S.B.1516. However, candidate committees did not need to be converted whatsoever
since they exist under both the new and old law. The Secretary of State’s Office performed administrative conversions for
exploratory committees, PACs, political parties, and political organizations in January 2017.
367
See A.R.S. § 16-931(A)(2) (requiring the Secretary of State to adjust contribution limits in January 2017).
368
Inclusion on the Secretary of State’s website simply means that a candidate committee is active and required to campaign finance
reports during that particular election cycle; it does not necessarily indicate that a candidate is running for election or reelection.
58
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.
370
Committees are encouraged to contact the Secretary of State’s Office if they have further
questions about the transition process.
369
This example assumes that the individual donor did not make any other contributions to the candidate in current or prior
election cycle.
370
Since candidate committees did not require termination or conversion pursuant to HB2297, § 14(B), 2016 candidate committees
that conducted fundraising activities prior to the 2017 legislative session were not required to open a 2018 committee.
59
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: _______________
CO
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):