Bill Text: AZ HB2385 | 2012 | Fiftieth Legislature 2nd Regular | Introduced
Bill Title: Campaigns; independent expenditures; corporations
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-02-29 - House majority caucus: Do pass [HB2385 Detail]
Download: Arizona-2012-HB2385-Introduced.html
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REFERENCE TITLE: campaigns; independent expenditures; corporations |
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State of Arizona House of Representatives Fiftieth Legislature Second Regular Session 2012
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HB 2385 |
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Introduced by Representative Farnsworth
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AN ACT
amending sections 16-914.02 and 16-924, Arizona Revised Statutes; relating to campaign contributions and expenses.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 16-914.02, Arizona Revised Statutes, is amended to read:
16-914.02. Reporting independent expenditures of corporations, limited liability companies and labor organizations; statement; disclaimer and disclosure; civil action; civil penalty; violation; classification; definitions
A. Any corporation, limited liability company or labor organization that makes cumulative independent expenditures in an attempt to influence the outcome of a candidate election and in at least the following amounts in an election cycle shall register and notify the appropriate filing officer not later than one day after making that expenditure, excluding Saturdays, Sundays and other legal holidays:
1. An aggregate of five thousand dollars or more in one or more statewide races.
2. An aggregate of two thousand five hundred dollars or more in one or more legislative races.
3. One thousand dollars or more in one or more county, city, town or other local races if the one thousand dollars is aggregated in races in a single county, city, town or other local jurisdiction.
B. Any corporation, limited liability company or labor organization that receives any one or more contributions as defined in section 16-901 shall disclose those contributions in the format prescribed by the filing officer as set forth in section 16-913.
B. C. The secretary of state is the filing officer for campaign finance reports and registrations and notifications for independent expenditures in statewide and legislative elections. City, town or county filing officers are the filing officers for campaign finance reports and notifications in a city, town, county or other local election as provided in section 16‑916. The corporation, limited liability company or labor organization also shall notify the filing officer within the same time limit prescribed in subsection A of this section of each additional accumulation of expenditures that exceeds the threshold amount prescribed in subsection A of this section but is not required to register again during that election cycle after the initial registration. A corporation, limited liability company or labor organization may register with the filing officer and provide a notarized, sworn statement of authority in advance of the expenditure in anticipation of making an independent expenditure. The secretary of state shall provide for electronic filing for registrations and notifications and shall provide for website access to the information for the public. Filings at the secretary of state's office shall be in the form prescribed by the secretary of state. Other filing officers shall prescribe the format for filing registrations and notifications and shall provide for public access to that information. On or after November 27, 2012 and at the request of the local election filing officer, the secretary of state may provide for electronic filing pursuant to this section for local elections.
C. D. The registration shall include all of the following:
1. The name and address of the corporation, limited liability company or labor organization.
2. The name, title, electronic mail address and telephone number of the person authorizing the independent expenditure.
D. E. Each notification shall include all of the following:
1. The name and address of the corporation, limited liability company or labor organization making the independent expenditure.
2. The amount of the expenditure and the name of the vendor or other payee receiving the expenditure.
3. The name of the candidate and race in which the expenditure was made and whether the expenditure was in support of or opposition to the candidate.
4. The communication medium and description of what was purchased with the expenditure.
5. The date of the expenditure.
E. F. If the corporation, limited liability company or labor organization did not register and provide a notarized sworn statement in advance of the expenditure as prescribed by this section, the corporation, limited liability company or labor organization shall file with the secretary of state or other appropriate filing officer within five days after an initial threshold expenditure as prescribed in subsection A of this section a notarized sworn statement that the person, agent or officer filing the registration and notice had authority to make that expenditure on behalf of the corporation, limited liability company or labor organization. Until the secretary of state or other filing officer receives the notarized sworn statement, the filing officer shall categorize the notification as unverified. If the secretary of state or other filing officer does not receive the notarized sworn statement within the required five day time frame, the notification shall be categorized as both unverified and delinquent. The filing officer shall make reasonable efforts to contact the entity that made the expenditure and remove the notification from public view within a reasonable time if unable to verify that the entity made the expenditure and all penalties prescribed in this section apply.
F. G. Any literature or advertisement that is purchased with monies from a corporation, limited liability company or labor organization making an independent expenditure in an attempt to influence the outcome of a candidate election shall disclose the name of the corporation, limited liability company or labor organization making the expenditure. Any disclosure statement required by this section shall be printed clearly and legibly in a conspicuous manner. If the communication is broadcast on radio, the information shall be spoken at the end of the communication. If the communication is broadcast on a telecommunications system, the information shall be both written and spoken at the end of the communication, except that if the disclosure statement is written for at least five seconds of a thirty second advertisement broadcast or ten seconds of a sixty second advertisement broadcast, a spoken disclosure statement is not required. If the communication is broadcast on a telecommunications system, the written disclosure statement shall be printed in letters equal to or larger than four per cent of the vertical picture height. The literature or advertisement shall include the words "paid for by" in the disclosure followed by the name of the entity making the expenditure and shall also state that it is not authorized by any candidate or candidate's campaign committee.
G. H. Subsection F G of this section does not apply to bumper stickers, pins, buttons, pens and similar small items on which the statements required in subsection F G of this section cannot be conveniently printed or to a communication by an organization solely to its members.
H. I. Any corporation, limited liability company or labor organization that fails to register, notify or disclose as required by this section is liable in a civil action pursuant to section 16‑924 brought by the attorney general, county attorney or city or town attorney, as appropriate, for a civil penalty of up to three times the total amount of the expenditure.
I. J. Any person who makes a knowingly false filing relating to an independent expenditure pursuant to this section is guilty of a class 1 misdemeanor.
J. K. For violations that occur before November 27, 2012, a reasonable cause determination for a violation of this section may only be made by the secretary of state's office and not by any other filing officer. On or after November 27, 2012, the local election jurisdiction and filing officers may make their own reasonable cause determinations for violations of this section or may elect to continue to have the office of the secretary of state make those reasonable cause determinations on their behalf. A civil or criminal enforcement action may not be filed until after the issuance of a reasonable cause determination.
K. L. Any entity that makes an independent expenditure and that is organized primarily for the purpose of whose primary purpose is influencing an election and that is a combination of corporations, limited liability companies or labor organizations or that is a corporation, limited liability company or labor organization that accepts donations or contributions shall file with the filing officer as a political committee as otherwise provided by law. In determining whether an entity's primary purpose is influencing an election, relevant factors include all of the following:
1. The amount of monies received from or spent on particular activities by the entity.
2. The amount of time devoted to particular activities by the entity, including activities by volunteers on behalf of the entity as well as employees of the entity.
3. The manner in which the entity's activities are conducted.
4. The purposes furthered by the various activities of the entity.
5. During the one hundred eighty days immediately preceding any independent expenditure by that entity, if a majority of the monies that are spent by an entity is spent to influence the outcome of an election, the primary purpose of the entity is deemed to be influencing the outcome of an election. If an entity makes any one or more independent expenditures and the entity is formed within one hundred eighty days before an election, there is a rebuttable presumption that the entity's primary purpose is influencing an election.
L. M. For the purposes of this section, an expenditure occurs on the date on which literature or advertisements are deposited at the post office for mailing, submitted to a communications system for broadcast or submitted to a newspaper or similar print medium for printing and, with respect to an expenditure for signs, the date on which a sign is first posted.
N. Any qualified elector may file an action alleging a violation of this section. The attorney general, county attorney or city or town attorney, as appropriate, or the filing officer may intervene as a party, may file briefs or other pleadings in the matter or may choose not to participate in any proceeding filed by an elector pursuant to this subsection. Within ten days after the filing of an action, the superior court shall hear and render a decision on the matter. Any notice of appeal shall be filed within five days after the decision of the superior court in that action. The court of appeals and, if necessary, the supreme court shall hear and render a decision promptly on the appeal.
M. O. For the purposes of this section:
1. "Independent expenditure" has the same meaning prescribed in section 16‑901, except that it is made by a corporation, a limited liability company or a labor organization and except as prescribed in subsection L M of this section.
2. "Local election" means an election in a county, city, town, school district or special district.
Sec. 2. Section 16-924, Arizona Revised Statutes, is amended to read:
16-924. Civil penalties; injunctive relief; attorney general; county, city or town attorney
A. Unless another penalty is specifically prescribed in this title, if the filing officer for campaign finance reports designated pursuant to section 16‑916, subsection A has reasonable cause to believe that a person is violating any provision of this title, except for violations of chapter 6, article 2, the secretary of state shall notify the attorney general for a violation regarding a statewide office or the legislature, the county officer in charge of elections shall notify the county attorney for that county for a violation regarding a county office or the city or town clerk shall notify the city or town attorney for a violation regarding a city or town office. The attorney general, county attorney or city or town attorney, as appropriate, may serve on the person an order requiring compliance with that provision. The order shall state with reasonable particularity the nature of the violation and shall require compliance within twenty days from the date of issuance of the order. The alleged violator has twenty days from the date of issuance of the order to request a hearing pursuant to title 41, chapter 6. Subject to this subsection, the attorney general, county attorney or city or town attorney, as appropriate, may investigate in the manner prescribed in section 38-431.06 any allegations made pursuant to this section.
B. If a person fails to take corrective action within the time specified in the compliance order issued pursuant to subsection A of this section, the attorney general, county attorney or city or town attorney, as appropriate, shall issue an order assessing a civil penalty of not more than one thousand dollars. The person alleged to have violated the compliance order has thirty days from the date of issuance of the order assessing the civil penalty to request a hearing pursuant to title 41, chapter 6.
C. Any party aggrieved by an order or decision of the attorney general, county attorney or city or town attorney, as appropriate, may appeal to the superior court as provided in title 12, chapter 7, article 6.
D. For the purposes of this section, failure to comply with a compliance order issued by the attorney general, county attorney or city or town attorney, as appropriate, as prescribed in subsection A of this section is deemed an intentional act.
E. In addition to any penalties or other relief issued pursuant to this section, the court may order injunctive relief as the court deems appropriate.
