Bill Text: AZ HB2536 | 2013 | Fifty-first Legislature 1st Regular | Engrossed
Bill Title: Campaign finance; committees; revisions
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed - Dead) 2013-03-12 - Referred to Senate RULES Committee [HB2536 Detail]
Download: Arizona-2013-HB2536-Engrossed.html
|
House Engrossed |
|
State of Arizona House of Representatives Fifty-first Legislature First Regular Session 2013
|
|
HOUSE BILL 2536 |
|
|
|
|
AN ACT
amending sections 16-901, 16‑905, 16-912, 16-912.01, 16-920 and 16-921, 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 16-901, Arizona Revised Statutes, is amended to read:
16-901. Definitions
In this chapter, unless the context otherwise requires:
1. "Agent" means, with respect to any person other than a candidate, any person who has oral or written authority, either express or implied, to make or authorize the making of expenditures as defined in this section on behalf of a candidate, any person who has been authorized by the treasurer of a political committee to make or authorize the making of expenditures or a political consultant for a candidate or political committee.
2. "Candidate" means an individual who receives or gives consent for receipt of a contribution for his nomination for or election to any office in this state other than a federal office.
3. "Candidate's campaign committee" means a political committee designated and authorized by a candidate.
4. "Clearly identified candidate" means that the name, a photograph or a drawing of the candidate appears or the identity of the candidate is otherwise apparent by unambiguous reference.
5. "Contribution" means any gift, subscription, loan, advance or deposit of money or anything of value made for the purpose of influencing an election including supporting or opposing the recall of a public officer or supporting or opposing the circulation of a petition for a ballot measure, question or proposition or the recall of a public officer and:
(a) Includes all of the following:
(i) A contribution made to retire campaign debt.
(ii) Money or the fair market value of anything directly or indirectly given or loaned to an elected official for the purpose of defraying the expense of communications with constituents, regardless of whether the elected official has declared his candidacy.
(iii) The entire amount paid to a political committee to attend a fund‑raising or other political event and the entire amount paid to a political committee as the purchase price for a fund‑raising meal or item, except that no contribution results if the actual cost of the meal or fund‑raising item, based on the amount charged to the committee by the vendor, constitutes the entire amount paid by the purchaser for the meal or item, the meal or item is for the purchaser's personal use and not for resale and the actual cost is the entire amount paid by the purchaser in connection with the event. This exception does not apply to auction items.
(iv) Unless specifically exempted, the provision of goods or services without charge or at a charge that is less than the usual and normal charge for such goods and services.
(b) Does not include any of the following:
(i) The value of services provided without compensation by any individual who volunteers on behalf of a candidate, a candidate's campaign committee or any other political committee.
(ii) Money or the value of anything directly or indirectly provided to defray the expense of an elected official meeting with constituents if the elected official is engaged in the performance of the duties of his office or provided by the state or a political subdivision to an elected official for communication with constituents if the elected official is engaged in the performance of the duties of his office.
(iii) The use of real or personal property, including a church or community room used on a regular basis by members of a community for noncommercial purposes, that is obtained by an individual in the course of volunteering personal services to any candidate, candidate's committee or political party, and the cost of invitations, food and beverages voluntarily provided by an individual to any candidate, candidate's campaign committee or political party in rendering voluntary personal services on the individual's residential premises or in the church or community room for candidate‑related or political party‑related activities, to the extent that the cumulative value of the invitations, food and beverages provided by the individual on behalf of any single candidate does not exceed one hundred dollars with respect to any single election.
(iv) Any unreimbursed payment for personal travel expenses made by an individual who on his own behalf volunteers his personal services to a candidate.
(v) The payment by a political party for party operating expenses, party staff and personnel, party newsletters and reports, voter registration and efforts to increase voter turnout, party organization building and maintenance and printing and postage expenses for slate cards, sample ballots, other written materials that substantially promote three or more nominees of the party for public office and other election activities not related to a specific candidate, except that this item does not apply to costs incurred with respect to a display of the listing of candidates made on telecommunications systems or in newspapers, magazines or similar types of general circulation advertising.
(vi) Independent expenditures.
(vii) Monies loaned by a state bank, a federally chartered depository institution or a depository institution the deposits or accounts of which are insured by the federal deposit insurance corporation or the national credit union administration, other than an overdraft made with respect to a checking or savings account, that is made in accordance with applicable law and in the ordinary course of business. In order for this exemption to apply, this loan shall be deemed a loan by each endorser or guarantor, in that proportion of the unpaid balance that each endorser or guarantor bears to the total number of endorsers or guarantors, the loan shall be made on a basis that assures repayment, evidenced by a written instrument, shall be subject to a due date or amortization schedule and shall bear the usual and customary interest rate of the lending institution.
(viii) A gift, subscription, loan, advance or deposit of money or anything of value to a national or a state committee of a political party specifically designated to defray any cost for the construction or purchase of an office facility not acquired for the purpose of influencing the election of a candidate in any particular election.
(ix) Legal or accounting services rendered to or on behalf of a political committee or a candidate, if the only person paying for the services is the regular employer of the individual rendering the services and if the services are solely for the purpose of compliance with this title.
(x) The payment by a political party of the costs of campaign materials, including pins, bumper stickers, handbills, brochures, posters, party tabloids and yard signs, used by the party in connection with volunteer activities on behalf of any nominee of the party or the payment by a state or local committee of a political party of the costs of voter registration and get‑out‑the‑vote activities conducted by the committee if the payments are not for the costs of campaign materials or activities used in connection with any telecommunication, newspaper, magazine, billboard, direct mail or similar type of general public communication or political advertising.
(xi) Transfers between political committees to distribute monies raised through a joint fund‑raising effort in the same proportion to each committee's share of the fund‑raising expenses and payments from one political committee to another in reimbursement of a committee's proportionate share of its expenses in connection with a joint fund‑raising effort.
(xii) An extension of credit for goods and services made in the ordinary course of the creditor's business if the terms are substantially similar to extensions of credit to nonpolitical debtors that are of similar risk and size of obligation and if the creditor makes a commercially reasonable attempt to collect the debt, except that any extension of credit under this item made for the purpose of influencing an election that remains unsatisfied by the candidate after six months, notwithstanding good faith collection efforts by the creditor, shall be deemed receipt of a contribution by the candidate but not a contribution by the creditor.
(xiii) Interest or dividends earned by a political committee on any bank accounts, deposits or other investments of the political committee.
6. "Earmarked" means a designation, instruction or encumbrance that results in all or any part of a contribution or expenditure being made to, or expended on behalf of, a clearly identified candidate or a candidate's campaign committee.
7. "Election" means any election for any initiative, referendum or other measure or proposition or a primary, general, recall, special or runoff election for any office in this state other than the office of precinct committeeman and other than a federal office. For the purposes of sections 16‑903 and 16‑905, the general election includes the primary election.
8. "Expenditures" includes any purchase, payment, distribution, loan, advance, deposit or gift of money or anything of value made by a person for the purpose of influencing an election in this state including supporting or opposing the recall of a public officer or supporting or opposing the circulation of a petition for a ballot measure, question or proposition or the recall of a public officer and a contract, promise or agreement to make an expenditure resulting in an extension of credit and the value of any in‑kind contribution received. Expenditure does not include any of the following:
(a) A news story, commentary or editorial distributed through the facilities of any telecommunications system, newspaper, magazine or other periodical publication, unless the facilities are owned or controlled by a political committee, political party or candidate.
(b) Nonpartisan activity designed to encourage individuals to vote or to register to vote.
(c) The payment by a political party of the costs of preparation, display, mailing or other distribution incurred by the party with respect to any printed slate card, sample ballot or other printed listing of three or more candidates for any public office for which an election is held, except that this subdivision does not apply to costs incurred by the party with respect to a display of any listing of candidates made on any telecommunications system or in newspapers, magazines or similar types of general public political advertising.
(d) The payment by a political party of the costs of campaign materials, including pins, bumper stickers, handbills, brochures, posters, party tabloids and yard signs, used by the party in connection with volunteer activities on behalf of any nominee of the party or the payment by a state or local committee of a political party of the costs of voter registration and get‑out‑the‑vote activities conducted by the committee if the payments are not for the costs of campaign materials or activities used in connection with any telecommunications system, newspaper, magazine, billboard, direct mail or similar type of general public communication or political advertising.
(e) Any deposit or other payment filed with the secretary of state or any other similar officer to pay any portion of the cost of printing an argument in a publicity pamphlet advocating or opposing a ballot measure.
9. "Exploratory committee" means a political committee that is formed for the purpose of determining whether an individual will become a candidate and that receives contributions or makes expenditures of more than five hundred dollars in connection with that purpose.
10. "Family contribution" means any contribution that is provided to a candidate's campaign committee by a parent, grandparent, spouse, child or sibling of the candidate or a parent or spouse of any of those persons.
11. "Filing officer" means the office that is designated by section 16‑916 to conduct the duties prescribed by this chapter.
12. "Identification" means:
(a) For an individual, his name and mailing address, his occupation and the name of his employer.
(b) For any other person, including a political committee, the full name and mailing address of the person. For a political committee, identification includes the identification number issued on the filing of a statement of organization pursuant to section 16‑902.01.
13. "Incomplete contribution" means any contribution received by a political committee for which the contributor's mailing address, occupation, employer or identification number has not been obtained and is not in the possession of the political committee.
14. "Independent expenditure" means an expenditure by a person or political committee, other than a candidate's campaign committee, that expressly advocates the election or defeat of a clearly identified candidate, that is made without cooperation or consultation with any candidate or committee or agent of the candidate and that is not made in concert with or at the request or suggestion of a candidate, or any committee or agent of the candidate. Independent expenditure includes an expenditure that is subject to the requirements of section 16‑917, which requires a copy of campaign literature or advertisement to be sent to a candidate named or otherwise referred to in the literature or advertisement. An expenditure is not an independent expenditure if any of the following applies:
(a) Any officer, member, employee or agent of the political committee making the expenditure is also an officer, member, employee or agent of the committee of the candidate whose election or whose opponent's defeat is being advocated by the expenditure or an agent of the candidate whose election or whose opponent's defeat is being advocated by the expenditure.
(b) There is any arrangement, coordination or direction with respect to the expenditure between the candidate or the candidate's agent and the person making the expenditure, including any officer, director, employee or agent of that person. for the purposes of this subdivision, serving on a host committee for a fundraising event does not presumptively demonstrate any arrangement, coordination or direction.
(c) In the same election the person making the expenditure, including any officer, director, employee or agent of that person, is or has been:
(i) Authorized to raise or expend monies on behalf of the candidate or the candidate's authorized committees.
(ii) Receiving any form of compensation or reimbursement from the candidate, the candidate's committees or the candidate's agent.
(d) The expenditure is based on information about the candidate's plans, projects or needs, or those of his campaign committee, provided to the expending person by the candidate or by the candidate's agents or any officer, member or employee of the candidate's campaign committee with a view toward having the expenditure made.
15. "In‑kind contribution" means a contribution of goods or services or anything of value and not a monetary contribution.
16. "Itemized" means that each contribution received or expenditure made is set forth separately.
17. "Literature or advertisement" means information or materials that are mailed, distributed or placed in some medium of communication for the purpose of influencing the outcome of an election.
18. "Personal monies" means any of the following:
(a) Assets to which the candidate has a legal right of access or control at the time he becomes a candidate and with respect to which the candidate has either legal title or an equitable interest.
(b) Salary and other earned income from bona fide employment of the candidate, dividends and proceeds from the sale of the stocks or investments of the candidate, bequests to the candidate, income to the candidate from trusts established before candidacy, income to the candidate from trusts established by bequest after candidacy of which the candidate is a beneficiary, gifts to the candidate of a personal nature that have been customarily received before the candidacy and proceeds received by the candidate from lotteries and other legal games of chance.
(c) The proceeds of loans obtained by the candidate that are not contributions and for which the collateral or security is covered by subdivision (a) or (b) of this paragraph.
(d) Family contributions.
19. "Political committee" means a candidate or any association or combination of persons that is organized, conducted or combined for the purpose of influencing the result of any election or to determine whether an individual will become a candidate for election in this state or in any county, city, town, district or precinct in this state, that engages in political activity in behalf of or against a candidate for election or retention or in support of or opposition to an initiative, referendum or recall or any other measure or proposition and that applies for a serial number and circulates petitions and, in the case of a candidate for public office except those exempt pursuant to section 16‑903, that receives contributions or makes expenditures of more than two hundred fifty dollars in connection therewith, notwithstanding that the association or combination of persons may be part of a larger association, combination of persons or sponsoring organization not primarily organized, conducted or combined for the purpose of influencing the result of any election in this state or in any county, city, town or precinct in this state. Political committee includes the following types of committees:
(a) A candidate's campaign committee.
(b) A separate, segregated fund established by a corporation or labor organization pursuant to section 16‑920, subsection A, paragraph 3.
(c) A committee acting in support of or opposition to the qualification, passage or defeat of a ballot measure, question or proposition.
(d) A committee organized to circulate or oppose a recall petition or to influence the result of a recall election.
(e) A political party.
(f) A committee organized for the purpose of making independent expenditures.
(g) A committee organized in support of or opposition to one or more candidates.
(h) A political organization.
(i) An exploratory committee.
20. "Political organization" means an organization that is formally affiliated with and recognized by a political party including a district committee organized pursuant to section 16‑823.
21. "Political party" means the state committee as prescribed by section 16‑825 or the county committee as prescribed by section 16‑821 of an organization that meets the requirements for recognition as a political party pursuant to section 16‑801 or section 16‑804, subsection A.
22. "Sponsoring organization" means any organization that establishes, administers or contributes financial support to the administration of, or that has common or overlapping membership or officers with, a political committee other than a candidate's campaign committee.
23. "Standing political committee" means a political committee that satisfies all of the following:
(a) Is active in more than one reporting jurisdiction in this state for more than one year.
(b) Files a statement of organization as prescribed by section 16‑902.01, subsection E.
(c) Is any of the following as defined by paragraph 19 of this section:
(i) A separate, segregated fund.
(ii) A political party.
(iii) A committee organized for the purpose of making independent expenditures.
(iv) A political organization.
24. "Statewide office" means the office of governor, secretary of state, state treasurer, attorney general, superintendent of public instruction, corporation commissioner or mine inspector.
25. "Surplus monies" means those monies of a political committee remaining after all of the committee's expenditures have been made and its debts have been extinguished.
Sec. 2. Section 16-905, Arizona Revised Statutes, is amended to read:
16-905. Contribution limitations; civil penalty; complaint
A. For an election other than for a statewide office, a contributor shall not give and an exploratory committee, a candidate or a candidate's campaign committee shall not accept contributions of more than:
1. For an election for a legislative office, four hundred eighty‑eight dollars from an individual.
2. For an election other than for a legislative office, three hundred ninety dollars from an individual.
3. For an election for a legislative office, four hundred eighty‑eight dollars from a single political committee, excluding a political party, not certified under subsection G of this section to make contributions at the higher limits prescribed by paragraph 5 of this subsection and subsection B, paragraph 3 of this section.
4. For an election other than for a legislative office, three hundred ninety dollars from a single political committee, excluding a political party, not certified under subsection G of this section to make contributions at the higher limits prescribed by subsection B, paragraph 3 of this section.
5. Two thousand dollars from a single political committee, excluding a political party, certified pursuant to subsection G of this section.
B. For an election for a statewide office, a contributor shall not give and an exploratory committee, a candidate or a candidate's committee shall not accept contributions of more than:
1. One thousand ten dollars from an individual.
2. One thousand ten dollars from a single political committee, excluding a political party, not certified under subsection G of this section to make contributions at the higher limits prescribed by subsection A, paragraph 5 of this section and paragraph 3 of this subsection.
3. Five thousand ten dollars from a single political committee excluding political parties certified pursuant to subsection G of this section.
C. A candidate shall not accept contributions from all political committees, excluding political parties, combined totaling more than:
1. For an election for a legislative office, sixteen thousand one hundred fifty dollars.
2. For an office other than a legislative office or a statewide office, ten thousand twenty dollars.
3. For a statewide office, one hundred thousand one hundred ten dollars.
D. A nominee of a political party shall not accept contributions from all political parties or political organizations combined totaling more than ten thousand twenty dollars for an election for an office other than a statewide office, and one hundred thousand one hundred ten dollars for an election for a statewide office.
E. An individual shall not make contributions totaling more than five thousand six hundred ten dollars in a calendar year to state and local candidates and political committees contributing to state or local candidates. Contributions to political parties and contributions to independent expenditure committees are exempt from the limitations of this subsection.
F. A candidate's campaign committee or an individual's exploratory committee shall not make a loan and shall not transfer or contribute money to any other campaign or exploratory committee that is designated pursuant to this chapter or 2 United States Code section 431 except as follows:
1. An exploratory committee may transfer monies to a subsequent candidate's campaign committee of the individual designating the exploratory committee, subject to the limits of subsection B of this section.
2. A candidate's campaign committee may transfer or contribute monies to another campaign committee designated by the same candidate as follows:
(a) Subject to the contribution limits of this section, transfer or contribute monies from one committee to another if both committees have been designated for an election in the same year.
(b) Without application of the contribution limits of this section, transfer or contribute monies from one committee to another designated for an election in a subsequent year.
G. Only political committees that received monies from five hundred or more individuals in amounts of ten dollars or more in the one two year period immediately before application to the secretary of state for qualification as a political committee pursuant to this section may make contributions to candidates under subsection A, paragraph 5 of this section and subsection B, paragraph 3 of this section. The secretary of state shall obtain information necessary to make the determination that a committee meets the requirements of this subsection and shall provide written certification of the fact to the committee. A political committee certification is valid for two four years. A candidate's campaign committee shall not accept a contribution pursuant to this subsection unless it is accompanied by a copy of the certification. All political committees that do not meet the requirements of this subsection are subject to the individual campaign contribution limits of subsection A, paragraphs 1 and 2 of this section and subsection B, paragraph 1 of this section.
H. The secretary of state biennially shall adjust to the nearest ten dollars the amounts in subsections A through E of this section by the percentage change in the consumer price index and publish the new amounts for distribution to election officials, candidates and campaign committees. For the purposes of this subsection, "consumer price index" means the consumer price index for all urban consumers, United States city average, that is published by the United States department of labor, bureau of labor statistics.
I. The following specific limitations and procedures apply:
1. The limits of subsections A through E of this section apply to each election for any office or offices which that the candidate seeks.
2. The limits of subsections A, B and C of this section apply to the total contributions from all separate segregated funds established, as provided in section 16‑920, by a corporation, labor organization, trade association, cooperative or corporation without capital stock.
3. A contribution by an unemancipated minor child shall be treated as a contribution by the child's custodial parent or parents for determining compliance with subsection A, paragraphs 1 and 2, subsection B, paragraph 1 and subsection E of this section.
4. A contribution by an individual or a single political committee to two or more candidates in connection with a joint fund‑raising effort shall be divided among the candidates in direct proportion to each candidate campaign committee's share of the expenses for the fund‑raising effort.
5. A candidate shall sign and file with the candidate's nomination paper a statement that the candidate has read all applicable laws relating to campaign financing and reporting.
6. An individual or political committee shall not use economic influence to induce members of an organization to make contributions to a candidate, collect contributions from members of an organization for transmittal to a candidate, make payments to candidates for public appearances or services which that are ordinarily uncompensated or use any similar device to circumvent any of the limitations of this section.
J. A person who violates this section is subject to a civil penalty imposed as prescribed in section 16‑924 of three times the amount of money that has been received, expended or promised in violation of this section or three times the value in money for an equivalent of money or other things of value that have been received, expended or promised in violation of this section.
K. Any qualified elector may file a sworn complaint with the attorney general or the county attorney of the county in which a violation of this section is believed to have occurred, and the attorney general or the county attorney shall investigate the complaint for possible action.
L. If the filing officer, attorney general or county attorney fails to institute an action within forty‑five working days after receiving a complaint under subsection K of this section, the individual filing the complaint may bring a civil action in the individual's own name and at the individual's own expense, with the same effect as if brought by the filing officer, attorney general or county attorney. The individual shall execute a bond payable to the defendant if the individual fails to prosecute the action successfully. The court shall award to the prevailing party costs and reasonable attorney fees.
M. If a provision of this section or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the section which that can be given effect without the invalid provision or application, and to this end the provisions of this section are severable.
N. The use of a candidate's personal monies, or the use of personal monies by an individual who designates an exploratory committee, is not subject to the limitations of this section.
Sec. 3. Section 16-912, Arizona Revised Statutes, is amended to read:
16-912. Candidates and independent expenditures; campaign literature and advertisement sponsors; identification; civil penalty
A. A political committee that makes an expenditure for campaign literature or advertisements that expressly advocate the election or defeat of any candidate or that make any solicitation of contributions to any political committee shall be registered pursuant to this chapter at the time of distribution, placement or solicitation and shall include on the literature or advertisement the words "paid for by" followed by the name of the committee that appears on its statement of organization or five hundred dollar exemption statement.
B. If the expenditure for the campaign literature or advertisements by a political committee is an independent expenditure, the political committee, in addition to the disclosures required by subsection A of this section, shall include on the literature or advertisement the names and telephone numbers of the three political committees making the largest contributions to the political committee making the independent expenditure. If an acronym is used to name any political committee outlined in this section, the name of any sponsoring organization of the political committee shall also be printed or spoken. For the purposes of determining the three contributors to be disclosed, only the contributions of each political committee to the political committee making the independent expenditure made during the one calendar year period before the election being affected are aggregated in which the independent expenditure is made shall be considered.
C. Subsection A of this section does not apply to bumper stickers, pins, buttons, pens and similar small items on which the statements required in subsection A of this section cannot be conveniently printed or to signs paid for by a candidate with campaign monies or by a candidate's campaign committee or to a solicitation of contributions by a separate segregated fund from those persons it may solicit pursuant to sections 16‑920 and 16‑921.
D. The disclosures required pursuant to this section shall be printed clearly and legibly in a conspicuous manner. or, The disclosure statement shall include the words "paid for by" followed by the name of the entity making the expenditure and shall state that it is not authorized by any candidate or candidate's campaign committee. Disclosure statements shall also comply with the following:
1. If the advertisement communication is broadcast on a telecommunications system radio, the disclosure shall be spoken at the end of the communication.
2. For printed material that is delivered or provided by hand or by mail, the disclosure shall be printed in a font that is at least 3/32 inches tall in dark type on light background surrounded by a dark box. For communications that are clearly and legibly in a conspicuous manner.
3. If the communication is broadcast on a telecommunications system, or other medium that can provide a viewable disclosure and a spoken disclosure, the disclosure may be made in printed format only and a spoken disclosure is not required the following apply:
(a) The disclosure shall be both written and spoken at the end of the communication, except that if the written disclosure statement is displayed for at least five seconds of a thirty second communications broadcast or ten seconds of a sixty second communications broadcast, a spoken disclosure statement is not required.
(b) The written disclosure statement shall be printed in letters that are displayed in a height that is equal to or greater than four per cent of the vertical picture height.
E. A person who violates this section is subject to a civil penalty of up to three times the cost of producing and distributing the literature or advertisement. This civil penalty shall be imposed as prescribed in section 16‑924.
Sec. 4. Section 16-912.01, Arizona Revised Statutes, is amended to read:
16-912.01. Ballot measure committees; campaign literature and advertising funding; identification; disclosure; civil penalty; definition
A. A political committee that makes an expenditure in connection with any literature or advertisement to support or oppose a ballot proposition shall disclose and, after November 2, 2010, shall include on the literature or advertisement the words "paid for by", followed by the name of the committee that appears on its statement of organization or five hundred dollar threshold exemption statement, and shall also include in such literature or advertisement the four largest of its major funding sources as of the time the literature or advertisement is printed, recorded or otherwise produced for dissemination. If a political committee has fewer than four major funding sources, the committee shall disclose all major funding sources.
B. For the purposes of this section, a major funding source of a political committee is any contributor that is not an individual person and that has made cumulative contributions of either:
1. Ten thousand dollars or more for an expenditure in support of or opposition to a statewide ballot proposition or a ballot proposition of a political subdivision with a population of one hundred thousand persons or more.
2. Five thousand dollars or more for an expenditure in support of or opposition to a ballot proposition of a political subdivision with a population of less than one hundred thousand persons.
C. If an out‑of‑state contributor or group of out‑of‑state contributors is a major funding source to a political committee disclosed pursuant to subsection A, the political committee shall state the contributor is an out‑of‑state contributor on its literature or advertisement in support of or in opposition to a ballot proposition.
D. Contributors that make contributions to more than one political committee that supports or opposes the same ballot proposition shall notify each political committee of the cumulative total of these contributions. Cumulative totals must be disclosed by each political committee that received contributions from the same contributor if the cumulative totals qualify as a major funding source to be disclosed pursuant to subsection A.
E. Any disclosure statement required by this section shall be printed clearly and legibly in a conspicuous manner in type at least as large as the majority of the printed text. For printed material that is delivered or provided by hand or by mail, the disclosure shall be printed in a font that is at least 3/32 inches tall in dark type on light background surrounded by a dark box in a clearly legible manner. The disclosure statement shall include the words "paid for by" followed by the name of the entity making the EXPENDITURE. DISCLOSURE statements shall also comply with the following:
1. If the communication is broadcast on radio, the information DISCLOSURE shall be spoken at the end of the communication.
2. If the communication is broadcast on a telecommunications system, the following apply:
(a) The information DISCLOSURE shall be both written and spoken at the end of the communication, except that if the written disclosure statement is written displayed for at least five seconds of a thirty second advertisement COMMUNICATIONS broadcast or ten seconds of a sixty second advertisement communications broadcast, a spoken disclosure statement is not required.
(b) If the communication is broadcast on a telecommunications system, The written disclosure statement shall be printed in letters that are DISPLAYED in a height equal to or larger greater than four per cent of the vertical picture height.
F. Subsection A does not apply to bumper stickers, pins, buttons, pens and similar small items on which the statements required in subsection A cannot be conveniently printed or to a communication by an organization solely to its members.
G. A committee shall change future literature and advertisements to reflect any change in funding sources that must be disclosed pursuant to subsection A.
H. This section only applies to advertisements the contents of which are more than fifty per cent devoted to one or more ballot propositions or proposed measures on the same subject.
I. Any committee that violates this section is liable in a civil action brought by the attorney general, county attorney or city or town attorney, as appropriate, or by any other person for a civil penalty of three times the total cost of the advertisement. A donor who does not accurately disclose its contributions is liable for a civil penalty of three times the amount donated.
J. For the purposes of this section, "advertisement" means general public advertising through the print and electronic media, signs, billboards and direct mail.
Sec. 5. Section 16-920, Arizona Revised Statutes, is amended to read:
16-920. Permitted expenditures by corporations and labor organizations; federal law; definition
A. Expenditures for the following purposes shall are not be construed to be political contributions prohibited by law:
1. Communications by a corporation to its stockholders and executive or administrative personnel and their families, or by a labor organization to its members and their families, on any subject.
2. Nonpartisan registration and get‑out‑the‑vote campaigns by a corporation aimed at its stockholders and executive or administrative personnel and their families or by a labor organization aimed at its members and their families.
3. The establishment, administration and solicitation of voluntary contributions to a separate segregated fund to be utilized used for political purposes by a corporation, labor organization, membership organization, trade association, cooperative or corporation without capital stock.
4. The establishment, administration and solicitation of voluntary contributions from employees of a corporation or limited liability company, including contributions made by payroll deduction, deposit or transfer or other similar method, and that are made directly to a separate segregated fund that is used for political purposes by a trade association of which the employing corporation or limited liability company is a member. Contributions received under this subsection shall be reported pursuant to section 16‑915, subsection A, paragraph 2, subdivision (a) or subsection E.
5. Contributions for use to support or oppose an initiative or referendum measure or amendment to the constitution.
6. Independent expenditures and contributions to independent expenditure committees made pursuant to section 16‑914.02.
B. A membership organization, trade association, cooperative or corporation without capital stock may engage in the activities permitted in subsection A, paragraphs 1 and 2 of this section if such activities are directed primarily toward its members, stockholders or members of its members, its and its members' executive or administrative personnel and their families.
C. A person may rely on the federal election commission's rules, policy statements, interpretive rules and other guidance in interpreting and applying 2 United States Code section 441b(b)(2) in interpreting subsection A, paragraphs 1 through 4 of this section.
D. For the purposes of this section:
1. "Executive or administrative personnel" has the same meaning prescribed in section 16-921.
2. "Labor organization" has the same meaning prescribed in section 16‑919.
Sec. 6. Section 16-921, Arizona Revised Statutes, is amended to read:
16-921. Unlawful contributions by corporations and labor organizations from a fund; procedures; definitions
A. It is unlawful under any fund established by a corporation or labor organization pursuant to section 16‑920, subsection A, paragraph 3:
1. For such a fund to make a contribution or expenditure by utilizing using money or anything of value secured by physical force, job discrimination, financial reprisals or the threat of force, job discrimination or financial reprisal or by dues, fees or other monies required as a condition of membership in a labor organization or as a condition of employment or by monies obtained in any commercial transaction.
2. For any person soliciting an employee for a contribution to such a fund to fail to inform such employee of the political purposes of such fund at the time of such solicitation.
3. For any person soliciting an employee for a contribution to such a fund to fail to inform such employee, at the time of such solicitation, of his the employee's right to refuse to so contribute without any reprisal.
B. Except as provided in subsections C, D and E of this section it is unlawful for a corporation, or a separate segregated fund established by a corporation, to solicit contributions to such a fund from any person other than the stockholders of the corporation and their families, the executive or administrative personnel of the corporation and their families, the retirees of the corporation and their families and the executive or administrative personnel or retirees of the corporation's subsidiaries, branches, divisions and affiliates and their families, and for a labor organization, or a separate segregated fund established by a labor organization, to solicit contributions to such a fund from any person other than its members and their families.
C. A corporation or a separate segregated fund established by such corporation may make no more than two written solicitations for contributions during the calendar year from any employee who is not a stockholder or executive or administrative personnel of such corporation, or of such corporation's subsidiaries, branches, divisions and affiliates, or the families of such employees. A solicitation under this subsection may be made only by mail addressed to employees who are not stockholders or executive or administrative personnel at their residence.
D. An insurer that is licensed in this state or a separate segregated fund established by such insurer may make written solicitations for contributions during the calendar year from persons who are licensed insurance producers and with whom it has a contract to produce insurance business, and those persons' families. Those solicitations are lawful only if the insurance producer has an exclusive contract with the insurer. This subsection does not change an insurance producer's status as an independent contractor.
E. A labor organization or a separate segregated fund established by such labor organization may make no more than two written solicitations for contributions during the calendar year from any stockholder, executive or administrative personnel or employee of a corporation who is not a union member, or the families of such persons, if such labor organization represents members working for such corporation. A solicitation under this subsection may be made only by mail addressed to such stockholders, executive or administrative personnel or employees who are not union members at their residences.
F. This section shall not prevent a membership organization, cooperative or corporation without capital stock, or a separate segregated fund established by a membership organization, cooperative or corporation without capital stock, from soliciting contributions to such a fund from members of such organization, cooperative or corporation without capital stock.
G. This section shall not prevent a trade association, or a separate segregated fund established by a trade association, from soliciting contributions from the stockholders and executive or administrative personnel of the member corporations of such trade association and the families of such stockholders or personnel.
H. Notwithstanding any provision of law to the contrary, any method of soliciting voluntary contributions or of facilitating the making of voluntary contributions to a separate segregated fund established by a corporation, permitted by law to corporations with regard to stockholders and executive or administrative personnel, shall also be permitted to labor organizations with regard to their members.
I. Any corporation, including its subsidiaries, branches, divisions and affiliates, that utilizes uses a method of soliciting voluntary contributions or facilitating the making of voluntary contributions shall make available such method, on written request and at a cost sufficient only to reimburse the corporation for the expenses incurred thereby, to a labor organization representing any members working for such corporation and its subsidiaries, branches, divisions and affiliates.
J. For the purposes of this section:
1. "Affiliate" means any organization that controls, is controlled by or is under common control with the corporation.
2. "Control" means to possess, directly or indirectly, the power to direct, or cause the direction of, the management or policies of another organization, whether through the ability to exercise voting power, by ownership or contract, or otherwise.
3. "Exclusive contract" means either:
(a) An insurance producer's contract with an insurer that prohibits the producer from soliciting insurance business for any other insurer.
(b) An insurance producer's contract with an insurer that requires a first right of refusal on all lines of insurance business written by the insurer and solicited by the producer.
4. "Executive or administrative personnel" means individuals who are employed by a corporation and who are paid on a salary, rather than hourly, basis and who have policymaking, managerial, professional or supervisory responsibilities.
5. "Insurance producer" has the same meaning prescribed in section 20‑281.
