Bill Text: AZ HB2575 | 2013 | Fifty-first Legislature 1st Regular | Introduced


Bill Title: Clean elections commission amendments

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2013-02-12 - Referred to House JUD Committee [HB2575 Detail]

Download: Arizona-2013-HB2575-Introduced.html

 

 

 

REFERENCE TITLE: clean elections commission amendments

 

 

 

State of Arizona

House of Representatives

Fifty-first Legislature

First Regular Session

2013

 

 

HB 2575

 

Introduced by

Representatives Thorpe, Quezada, Steele: Miranda, Orr, Seel, Sherwood

 

 

AN ACT

 

amending sections 16-905, 16-941 and 16-951, Arizona Revised Statutes; repealing section 16-952, Arizona Revised Statutes; amending title 16, chapter 6, article 2, Arizona Revised Statutes, by adding a new section 16‑952; amending sections 16-955, 16-956, 16-958, 16-959, 16-961 and 41-133, Arizona Revised Statutes; relating to clean elections.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 



Be it enacted by the Legislature of the State of Arizona:

Section 1.  Section 16-905, Arizona Revised Statutes, is amended to read:

START_STATUTE16-905.  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 six hundred eighty‑eight dollars from an individual.

2.  For an election other than for a legislative office, three five hundred ninety dollars from an individual.

3.  For an election for a legislative office, four six hundred eighty‑eight dollars from a single political committee, excluding a political party, not certified under subsection F 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 five hundred ninety dollars from a single political committee, excluding a political party, not certified under subsection F of this section to make contributions at the higher limits prescribed by subsection B, paragraph 3 of this section.

5.  For an election other than for a legislative office, two thousand dollars from a single political committee, excluding a political party, certified pursuant to subsection F of this section.

6.  For an election for a legislative office, four thousand dollars from a single political committee, excluding a political party, certified pursuant to subsection F 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 Two thousand ten dollars from an individual.

2.  One Two thousand ten dollars from a single political committee, excluding a political party, not certified under subsection F of this section to make contributions at the higher limits prescribed by subsection A, paragraph paragraphs 5 and 6 of this section and paragraph 3 of this subsection.

3.  Five Eight thousand ten dollars from a single political committee excluding political parties certified pursuant to subsection F 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 twenty-five thousand one hundred fifty dollars.

2.  For an office other than a legislative office or a statewide office, ten twelve thousand twenty dollars.

3.  For a statewide office, one hundred fifty 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.  E.  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.  F.  Only political committees that received monies from five hundred or more individuals in amounts of ten dollars or more in the one 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 paragraphs 5 and 6 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 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.  G.  The secretary of state biennially shall adjust to the nearest ten dollars the amounts in subsections A through D 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.  H.  The following specific limitations and procedures apply:

1.  The limits of subsections A through D 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 and 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.  I.  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.  J.  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.  K.  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 J 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.  L.  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.  M.  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.END_STATUTE

Sec. 2.  Subject to the requirements of article IV, part 1, section 1, subsection (6), Constitution of Arizona, section 16-941, Arizona Revised Statutes, is amended to read:

START_STATUTE16-941.  Limits on spending and contributions for political campaigns

A.  Notwithstanding any law to the contrary, a participating candidate:

1.  Shall not accept any contributions, other than a limited number of five‑dollar qualifying contributions as specified in section 16‑946 and early contributions as specified in section 16‑945, except in the emergency situation specified in section 16‑954, subsection D.

2.  Shall 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.

3.  Shall not make expenditures in the primary election period in excess of the adjusted primary election spending limit.  All expenditures made during the primary election period shall be directed to and used for the primary election and shall not be used for the general election except as specifically provided by commission rule.

4.  Shall not make expenditures in the general election period in excess of the adjusted general election spending limit.

5.  Shall comply with section 16‑948 regarding campaign accounts and section 16‑953 regarding returning unused monies to the citizens clean elections fund described in this article.

B.  Notwithstanding any law to the contrary, a nonparticipating candidate shall not accept contributions in excess of an amount that is twenty per cent less than the limits specified in section 16‑905, subsections A through D, as adjusted by the secretary of state pursuant to section 16‑905, subsection H.  Any violation of this subsection shall be subject to the civil penalties and procedures set forth in section 16‑905, subsections I through L and section 16‑924.

C.  Notwithstanding any law to the contrary, a candidate, whether participating or nonparticipating:

1.  If specified in a written agreement signed by the candidate and one or more opposing candidates and filed with the citizens clean elections commission, shall not make any expenditure in the primary or general election period exceeding an agreed‑upon amount lower than spending limits otherwise applicable by statute.

2.  Shall continue to be bound by all other applicable election and campaign finance statutes and rules, with the exception of those provisions in express or clear conflict with this article.

D.  Notwithstanding any law to the contrary, any person who makes independent expenditures related to a particular office cumulatively exceeding five hundred dollars in an election cycle, with the exception of any expenditure listed in section 16‑920 and any independent expenditure by an organization arising from a communication directly to the organization's members, shareholders, employees, affiliated persons and subscribers, shall file reports with the secretary of state in accordance with section 16‑958 so indicating, identifying the office and the candidate or group of candidates whose election or defeat is being advocated and stating whether the person is advocating election or advocating defeat. END_STATUTE

Sec. 3.  Subject to the requirements of article IV, part 1, section 1, subsection (6), Constitution of Arizona, section 16-951, Arizona Revised Statutes, is amended to read:

START_STATUTE16-951.  Clean elections funding; definition

A.  At the beginning of the primary election period, the commission shall pay from the fund to the campaign account of each candidate who qualifies for clean elections funding:

1.  For a candidate who qualifies for clean elections funding for a party primary election, an amount equal to the original primary election spending limit.

2.  For an independent candidate who qualifies for clean elections funding, an amount equal to seventy percent of the sum of the original primary election spending limit and the original general election spending limit.

3.  2.  For a qualified participating candidate who is unopposed for an office in that candidate's primary, in the primary of any other party and by any opposing independent candidate, an amount equal to five dollars times the number of qualifying contributions for that candidate certified by the commission.

B.  At any time after the first day of January of an election year, any candidate who has met the requirements of section 16‑950 may sign and cause to be filed a nomination paper in the form specified by section 16‑311, subsection A, with a nominating petition and signatures, instead of filing such papers after the earliest time set for filing specified by that subsection.  Upon On such filing and verification of the signatures, the commission shall pay the amount specified in subsection A of this section immediately, rather than waiting for the beginning of the primary election period.

C.  At the beginning of the general election period, the commission shall pay from the fund to the campaign account of each candidate who qualifies for clean elections funding for the general election, except those candidates identified in subsection A, paragraph 2 or subsection D of this section, an amount equal to the original general election spending limit.

D.  At the beginning of the general election period, the commission shall pay from the fund to the campaign account of a qualified participating candidate who has not received funds pursuant to subsection A, paragraph 2 of this section and who is unopposed by any other party nominee or any opposing independent candidate an amount equal to five dollars times the number of qualifying contributions for that candidate certified by the commission.

E.  The special original general election spending limit, for a candidate who has received funds pursuant to subsection A, paragraphs paragraph 2 or 3 or subsection D of this section, shall be equal to the amount that the commission is obligated to pay to that PARTICIPATING candidate.

F.  On applying for citizen funding pursuant to section 16-950, a participating candidate for the legislature in a one-party-dominant legislative district who is qualified for clean elections funding for the party primary election of the dominant party may choose to reallocate a portion of funds from the general election period to the primary election period.  At the beginning of the primary election period, the commission shall pay from the fund to the campaign account of a participating candidate who makes this choice an extra amount equal to fifty per cent of the original primary election spending limit, and the original primary election spending limit for the candidate who makes this choice shall be increased by the extra amount.  For a primary election in which one or more participating candidates have made this choice, funds shall be paid under subsections A and B of this section only to the extent of any excess over the original primary election spending limit as so increased.  If a participating candidate who makes this choice becomes qualified for clean elections funding for the general election, the amount the candidate receives at the beginning of the general election period shall be reduced by the extra amount received at the beginning of the primary election period, and the original general election spending limit for that candidate shall be reduced by the extra amount.

G.  For a general election in which a participating candidate has made the choice to reallocate, funds shall be paid under subsections A and B of this section only to the extent of any excess over the original general election spending limit, without any reduction, unless the candidate who has made this choice is the only participating candidate in the general election. If so, such funds shall be paid to the extent of any excess over the original general election spending limit with such reduction.  The status of a district as a one-party-dominant legislative district shall be determined as of the beginning of the qualifying period.

H.  For the purposes of this section, a one-party-dominant legislative district is a district in which the number of registered voters registered in the party with the highest number of registered voters exceeds the number of registered voters registered to each of the other parties by an amount at least as high as ten per cent of the total number of voters registered in the district.  END_STATUTE

Sec. 4.  Repeal

Section 16-952, Arizona Revised Statutes, is repealed.

Sec. 5.  Title 16, chapter 6, article 2, Arizona Revised Statutes, is amended by adding a new section 16-952, to read:

START_STATUTE16-952.  Voter involvement program

A.  Participating candidates who seek to supplement the funding available to them pursuant to section 16-951 may participate in the voter involvement program.  The voter involvement program enables candidates to obtain civic engagement credits from registered voters in the candidate's district that may be used to obtain supplemental clean elections funding from the clean elections fund during the primary election period and the general election period as follow:

1.  Participating candidates may solicit from registered voters and registered voters may award to a participating candidate for whom they are eligible to vote in that election civic engagement credits under rules established by the commission.

2.  Registered voters may allocate their civic engagement credits as an indication of support of that participating candidate and may allocate only one civic engagement credit per office to be elected for which there are participating candidates, but are not required to issue a civic engagement credit to any participating candidate.

3.  Registered voters may allocate credits in the primary election and again in the general election.

4.  Any civic engagement credits issued in excess of a registered voter's allotted amount are of no effect.

5.  Violations of this section by candidates are subject to all enforcement actions and penalties prescribed in this article, including those prescribed by section 16-942.

B.  If a report is filed pursuant to section 16-958, subsection C indicating that a participating candidate who has qualified for funding has received one or more civic engagement credits pursuant to subsection A of this section and after the civic engagement credit forms are verified pursuant to this section, the commission shall pay from the clean elections fund to the campaign account of that participating candidate an amount equal to three hundred dollars for statewide candidates and fifty dollars for legislative candidates for each reported and verified civic engagement credit.  The spending limit for all such participating candidates shall be increased by the amount that the commission pays to that participating candidate's campaign account.

C.  Civic engagement credit forms submitted to the commission shall be in a format prescribed by the commission and shall include the printed name, registration address, legislative district and signature of the voter who is assigning the civic engagement credit, the name of the candidate to whom the civic engagement credit is assigned, the office the candidate is seeking and the date.  The candidate shall provide a receipt to the registered voter that indicates that the voter may not assign more than one civic engagement credit per participating candidate per race and for no more than the number of seats to be filled at that election.

D.  Civic engagement credits are statements of support but are not considered to be contributions or expenditures pursuant to this article.  No payment or anything of value may be given to the assigning voter in exchange for the civic engagement credit, or to the person soliciting the civic engagement credit.  Civic engagement credits may not be issued by the candidate or the candidate's family members.

E.  All civic engagement credit forms shall conform to the following requirements:

1.  The solicitor shall sign the form.

2.  The solicitor cannot be paid or otherwise compensated for obtaining civic engagement credits.  This paragraph does not preclude a paid campaign employee from collecting civic engagement credit forms if the employee is not paid on the basis of the number of forms collected and if the majority of that employee's campaign time is not spent collecting or soliciting the forms.

3.  The solicitor shall be registered to vote in this state.

4.  The solicitor's name shall be typed or printed under that person's signature.

5.  The solicitor shall include the solicitor's voter registration residence address on the form.

F.  If a civic engagement credit is submitted without a solicitor, it shall be disqualified.  Solicitors are responsible for the accuracy of the information provided.

G.  In order to receive supplemental funding, candidates shall file a report prescribed by section 16-958, subsection C with the original form for all submitted civic engagement credits pursuant to commission rules.  This report shall include the list of names and voter identification numbers of persons who have assigned their civic engagement credits to that candidate.  The list shall be divided by county.  The commission shall verify the information on the forms, the eligibility of the person to assign a credit to a candidate and the candidate's compliance with all applicable procedures.   The commission may adopt rules that identify the appropriate legislative districts to use when credits are collected or submitted during a pending redistricting process.  In order to facilitate submission of voter identification numbers as required, county recorders shall provide identification numbers under the same terms as provided to recognized political parties, to unrecognized parties and to independent candidates.   County recorders and officers in charge of elections shall cooperate with and provide the commission with access to all information necessary to verify the accuracy of information submitted with the forms either by providing access to county databases or by providing the necessary information directly to the commission.

H.  If an adjusted spending limit is increased to three times the original spending limit for a participating candidate's campaign, the commission shall not pay any further amounts from the fund to the campaign account of any participating candidate, and the spending limit shall not be adjusted further.

I.  Before the qualifying period of an election cycle begins, the commission shall determine whether enough money is in the fund to fully support the voter involvement program for the election cycle.  If the commission determines that the fund is insufficient, the commission may specify reductions in the voter involvement program for that cycle in the following order:

1.  The commission may reduce the maximum funds available to candidates on an office by office basis.

2.  The commission may determine that no funds under the voter involvement program may be awarded this cycle. 

J.  If the fund is determined to be insufficient as prescribed by subsection I of this section, participating candidates may solicit contributions up to the amounts prescribed by subsection B of this section from voters eligible to vote for them in that election.

K.  Civic engagement credits have no cash value and cannot be sold or otherwise transferred, except pursuant to commission rules.  Voters cannot be compensated for issuance of a civic engagement credit and solicitors cannot be compensated for obtaining a civic engagement credit. END_STATUTE

Sec. 6.  Subject to the requirements of article IV, part 1, section 1, subsection (6), Constitution of Arizona, section 16-955, Arizona Revised Statutes, is amended to read:

START_STATUTE16-955.  Citizens clean election commission; structure

A.  The citizens clean elections commission is established consisting of five members.  No more than two members of the commission shall be members of the same political party.  No more than two members of the commission shall be residents of the same county.  No one shall be appointed as a member who does not have a registration pursuant to chapter 1 of this title that has been continuously recorded for at least five years immediately preceding appointment with the same political party or as an independent.

B.  The candidates for vacant commissioner positions shall be persons who are committed to enforcing this article in an honest, independent and impartial fashion and to seeking to uphold public confidence in the integrity of the electoral system.  Each candidate shall be a qualified elector who has not, in the previous five years in this state, has not been appointed to, been elected to or run for any public office, including precinct committeeman, or served as an officer of a political party.

C.  Initially, the commission on appellate court appointments shall nominate five slates, each having three candidates, before January 1, 1999.  No later than February 1, 1999, the governor shall select one candidate from one of the slates to serve on the commission for a term ending January 31, 2004.  Next, the highest‑ranking official holding a statewide office who is not a member of the same political party as the governor shall select one candidate from another one of the slates to serve on the commission for a term ending January 31, 2003.  Next, the second‑highest‑ranking official holding a statewide office who is a member of the same political party as the governor shall select one candidate from one of the three remaining slates to serve on the commission for a term ending January 31, 2002.  Next, the second‑highest‑ranking official holding a statewide office who is not a member of the same political party as the governor shall select one candidate from one of the two remaining slates to serve on the commission for a term ending January 31, 2001.  Finally, the third‑highest‑ranking official holding a statewide office who is a member of the same political party as the governor shall elect one candidate from the last slate to serve on the commission for a term ending January 31, 2000.  For the purposes of this section, the ranking of officials holding statewide office shall be governor, secretary of state, attorney general, treasurer, superintendent of public instruction, corporation commissioners in order of seniority, mine inspector, senate majority and minority leaders and house majority and minority leaders.

D.  C.  One commissioner shall be appointed for a five‑year term beginning February 1 of every year beginning with the year 2000.  Before February 1 of each year beginning in the year 2000, the governor and the highest‑ranking official holding a statewide office who is not a member of the same political party as the governor shall alternate filling such vacancies.  The vacancy in the year 2000 shall be filled by the governor.

E.  D.  Members of the commission may be removed by the governor, with concurrence of the senate, for substantial neglect of duty, gross misconduct in office, inability to discharge the powers and duties of office or violation of this section, after written notice and opportunity for a response.

F.  E.  If a commissioner does not complete the commissioner's term of office for any reason, a replacement shall be selected within thirty days after the vacancy occurs.  The highest‑ranking official holding a statewide office who is a member of the political party of the official who nominated the commissioner who vacated office shall nominate the replacement, who shall serve as commissioner for the unexpired portion of the term.  A vacancy or vacancies shall not impair the right of the remaining members to exercise all of the powers of the board.

G.  F.  Commissioners are eligible to receive compensation in an amount of two hundred dollars for each day on which the commission meets and reimbursement of expenses pursuant to title 38, chapter 4, article 2.

H.  G.  The commissioners shall elect a chair to serve for each calendar‑year period from among their members whose terms expire after the conclusion of that year.  Three commissioners shall constitute a quorum.

I.  H.  A member of the commission shall serve no more than one term and is not eligible for reappointment.  No commissioner, during the commissioner's tenure or for three years thereafter, shall seek or hold any other public office, serve as an officer of any political committee or employ or be employed as a lobbyist.

J.  I.  The commission shall appoint an executive director who shall not be a member of the commission and who shall serve at the pleasure of the commission.  The executive director is eligible to receive compensation set by the board within the range determined under section 38‑611.  The executive director, subject to title 41, chapter 4, articles 5 and 6, shall employ, determine the conditions of employment and specify the duties of administrative, secretarial and clerical employees as the director deems necessary.END_STATUTE

Sec. 7.  Subject to the requirements of article IV, part 1, section 1, subsection (6), Constitution of Arizona, section 16-956, Arizona Revised Statutes, is amended to read:

START_STATUTE16-956.  Voter education and enforcement duties

A.  The commission shall:

1.  Develop a procedure for publishing a document or section of a document having a space of predefined size for a message chosen by each candidate.  For the document that is delivered before the primary election, the document shall contain the names of every candidate for every statewide and legislative district office in that primary election without regard to whether the candidate is a participating candidate or a nonparticipating candidate.  For the document that is delivered before the general election, the document shall contain the names of every candidate for every statewide and legislative district office in that general election without regard to whether the candidate is a participating candidate or a nonparticipating candidate.  The commission shall deliver one copy of each document to every household that contains a registered voter.  For the document that is delivered before the primary election, the delivery may be made over a period of days but shall be sent in time to be delivered to households before the earliest date for receipt by registered voters of any requested early ballots for the primary election.  The commission may deliver the second document over a period of days but shall send the second document in order to be delivered to households before the earliest date for receipt by registered voters of any requested early ballots for the general election.  The primary election and general election documents published by the commission shall comply with all of the following:

(a)  For any candidate who does not submit a message pursuant to this paragraph, the document shall include with the candidate's listing the words "no statement submitted".

(b)  The document shall have printed on its cover the words "citizens clean elections commission voter education guide" and the words "primary election" or "general election" and the applicable year.  The document shall also contain at or near the bottom of the document cover in type that is no larger than one‑half the size of the type used for "citizens clean elections commission voter education guide" the words "paid for by the citizens clean elections fund".

(c)  In order to prevent voter confusion, the document shall be easily distinguishable from the publicity pamphlet that is required to be produced by the secretary of state pursuant to section 19‑123.

2.  Sponsor debates among candidates, in such manner as determined by the commission.  The commission shall require participating candidates to attend and participate in debates and may specify by rule penalties for nonparticipation.  The commission shall invite and permit nonparticipating candidates to participate in debates.

3.  Prescribe forms for reports, statements, notices and other documents required by this article.  The commission shall not require a candidate to use a reporting system other than the reporting system jointly approved by the commission and the office of the secretary of state.

4.  Prepare and publish instructions setting forth methods of bookkeeping and preservation of records to facilitate compliance with this article and explaining the duties of persons and committees under this article.

5.  Produce a yearly report describing the commission's activities and any recommendations for changes of law, administration or funding amounts and accounting for monies in the fund.

6.  Adopt rules to implement the reporting requirements of section 16‑958, subsections D and E.

7.  Enforce this article, ensure that money from the fund is placed in candidate campaign accounts or otherwise spent as specified in this article and not otherwise, monitor reports filed pursuant to this chapter and financial records of candidates as needed and ensure that money required by this article to be paid to the fund is deposited in the fund.  The commission shall not take action on any external complaint that is filed more than ninety days after the postelection report is filed or ninety days after the completion of the canvass of the election to which the complaint relates, whichever is later.

B.  The commission may subpoena witnesses, compel their attendance and testimony, administer oaths and affirmations, take evidence and require by subpoena the production of any books, papers, records or other items material to the performance of the commission's duties or the exercise of its powers.

C.  The commission may adopt rules to carry out the purposes of this article and to govern procedures of the commission.  Commission rule making is exempt from title 41, chapter 6, article 3.  The commission shall propose and adopt rules in public meetings, with at least sixty days allowed for interested parties to comment after the rules are proposed.  The commission shall also file a notice of exempt rule making and the proposed rule in the format prescribed in section 41‑1022 with the secretary of state's office for publication in the Arizona administrative register.  After consideration of the comments received in the sixty day comment period, the commission may adopt the rule in an open meeting.  Any rules given final approval in an open meeting shall be filed in the format prescribed in section 41‑1022 with the secretary of state's office for publication in the Arizona administrative register.  Any rules adopted by the commission shall only be applied prospectively from the date the rule was adopted.

D.  Rules adopted by the commission are not effective until January 1 in the year following the adoption of the rule, except that rules adopted by unanimous vote of the commission may be made immediately effective and enforceable.

E.  If, in the view of the commission, the action of a particular candidate or committee requires immediate change to a commission rule, a unanimous vote of the commission is required.  Any rule change made pursuant to this subsection that is enacted with less than a unanimous vote takes effect for the next election cycle.

F.  Based on the results of the elections in any quadrennial election after 2002, and within six months after such election, the commission may adopt rules changing the number of qualifying contributions required for any office from those listed in section 16‑950, subsection D by no more than twenty per cent of the number applicable for the preceding election. END_STATUTE

Sec. 8.  Subject to the requirements of article IV, part 1, section 1, subsection (6), Constitution of Arizona, section 16-958, Arizona Revised Statutes, is amended to read:

START_STATUTE16-958.  Manner of filing reports

A.  Any person who has previously reached the dollar amount specified in section 16‑941, subsection D for filing an original report shall file a supplemental report each time previously unreported independent expenditures specified by that subsection exceeds one thousand dollars.  Such reports shall be filed at the times specified in subsection B of this section and shall identify the dollar amount being reported, the candidate and the date, and no other detail is required in reports made pursuant to this section.

B.  Any person who must file an original report pursuant to section 16‑941, subsection D or who must file a supplemental report for previously unreported amounts pursuant to subsection A of this section shall file as follows:

1.  Before the beginning of the primary election period, the person shall file a report on the first of each month, unless the person has not reached the dollar amount for filing an original or supplemental report on that date.

2.  Thereafter, except as stated in paragraph 3 of this subsection, the person shall file a report on any Tuesday by which the person has reached the dollar amount for filing an original or supplemental report.

3.  During the last two weeks before the primary election and the last two weeks before the general election, the person shall file a report within one business day of reaching the dollar amount for filing an original or supplemental report.

C.  A participating candidate may file a civic engagement credit report with the commission to initiate the calculation of supplemental funding. Supplemental funding will be issued on Wednesdays for those civic engagement credit reports that have been submitted and verified by the immediately preceding Monday, and on Fridays for civic engagement credit reports that have been submitted and verified by the immediately preceding Wednesday.  The commission shall not accept for filing any Civic engagement credit reports within the seven days immediately preceding an election day.

C.  D.  Any filing under this article on behalf of a candidate may be made by the candidate's campaign committee.  All candidates shall deposit any check received by and intended for the campaign and made payable to the candidate or the candidate's campaign committee, and all cash received by and intended for the campaign, in the candidate's campaign account before the due date of the next report specified in subsection B of this section.  No candidate or person acting on behalf of a candidate shall conspire with a donor to postpone delivery of a donation to the campaign for the purpose of postponing the reporting of the donation in any subsequent report.

D.  E.  The secretary of state shall immediately notify the commission of the filing of each report under this section and deliver a copy of the report to the commission, and the commission shall promptly mail or otherwise deliver a copy of each report filed pursuant to this section to all participating candidates opposing the candidate identified in section 16‑941, subsection D.

E.  F.  Any report filed pursuant to this section or section 16‑916, subsection A, paragraph 1 or subsection B shall be filed in electronic format.  The secretary of state shall distribute computer software to political committees to accommodate such electronic filing.

F.  G.  During the primary election period and the general election period, all candidates shall make available for public inspection all bank accounts, campaign finance reports and financial records relating to the candidate's campaign, either by immediate disclosure through electronic means or at the candidate's campaign headquarters, in accordance with rules adopted by the commission.END_STATUTE

Sec. 9.  Subject to the requirements of article IV, part 1, section 1, subsection (6), Constitution of Arizona, section 16-959, Arizona Revised Statutes, is amended to read:

START_STATUTE16-959.  Inflationary and other adjustments of dollar values

A.  Every two years, the secretary of state shall modify the dollar values specified in the following parts of this article, in the manner specified by section 16‑905, subsection H, to account for inflation: section 16‑941, subsection A, paragraph 2 or subsection D; section 16‑942, subsection B; section 16‑945, subsection A, paragraphs 1 and 2; section 16‑948, subsection C; section 16-952, subsection B; section 16‑955, subsection F; and section 16‑961, subsections G and H.  In addition, the secretary of state shall make a similar inflation adjustment by modifying the dollar values in section 16‑949, subsection A to reflect cumulative inflation since the enactment of this article.  In addition, every two years, the secretary of state shall change the dollar values in section 16‑961, subsections G and H in proportion to the change in the number of Arizona resident personal income tax returns filed during the previous calendar year.

B.  Based on the results of the elections in any quadrennial election after 2002, and within six months after such election, the commission may adopt rules in a public meeting reallocating funds available to all candidates between the primary and general elections by selecting a fraction for primary election spending limits that is between one-third and one-half of the spending limits for the election as a whole.  For each office, the primary election spending limit shall be modified to be the sum of the primary and general spending limits times the selected fraction, and the general election spending limit shall be modified to be the same sum times one less the selected fraction. END_STATUTE

Sec. 10.  Subject to the requirements of article IV, part 1, section 1, subsection (6), Constitution of Arizona, section 16-961, Arizona Revised Statutes, is amended to read:

START_STATUTE16-961.  Definitions

A.  The terms "candidate's campaign committee," "contribution," "expenditures," "exploratory committee," "independent expenditure," "personal monies," "political committee" and "statewide office" are defined in section 16‑901.

B.  1.  "Election cycle" means the period between successive general elections for a particular office.

2.  "Exploratory period" means the period beginning on the day after a general election and ending the day before the start of the qualifying period.

3.  "Qualifying period" means the period beginning on the first day of August in a year preceding an election and ending one week before the primary election.

4.  "Primary election period" means the nine‑week period ending on the day of the primary election.

5.  "General election period" means the period beginning on the day after the primary election and ending on the day of the general election.

6.  For any recall election, the qualifying period shall begin when the election is called and last for thirty days, there shall be no primary election period and the general election period shall extend from the day after the end of the qualifying period to the day of the recall election.  For recall elections, any reference to "general election" in this article shall be treated as if referring to the recall election.

C.  1.  "Participating candidate" means a candidate who becomes certified as a participating candidate pursuant to section 16‑947.

2.  "Nonparticipating candidate" means a candidate who does not become certified as a participating candidate pursuant to section 16‑947.

3.  Any limitation of this article that is applicable to a participating candidate or a nonparticipating candidate shall also apply to that candidate's campaign committee or exploratory committee.

D.  "Commission" means the citizens clean elections commission established pursuant to section 16‑955.

E.  "Fund" means the citizens clean elections fund defined by this article.

F.  1.  "Party nominee" means a person who has been nominated by a political party pursuant to section 16‑301 or 16‑343.

2.  "Independent candidate" means a candidate who has properly filed nominating papers and nominating petitions with signatures pursuant to section 16‑341.

3.  "Unopposed" means with reference to an election for:

(a)  A member of the house of representatives, opposed by no more than one other candidate who has qualified for the ballot and who is running in the same district.

(b)  A member of the corporation commission, opposed by a number of candidates who have qualified for the ballot that is fewer than the number of corporation commission seats open at that election and for which the term of office ends on the same date.

(c)  All other offices, opposed by no other candidate who has qualified for the ballot and who is running in that district or running for that same office and term.

G.  "Primary election spending limits" means:

1.  For a candidate for the legislature, twelve fifteen thousand nine hundred twenty-one dollars.

2.  For a candidate for mine inspector, forty‑one fifty-two thousand three hundred forty-nine dollars.

3.  For a candidate for treasurer, superintendent of public instruction or the corporation commission, eighty‑two one hundred thousand six hundred eighty dollars.

4.  For a candidate for secretary of state or attorney general, one two hundred sixty‑five thousand three hundred seventy-eight dollars.

5.  For a candidate for governor, six eight hundred thirty‑eight thousand two hundred twenty‑two dollars.

H.  "General election spending limits" means amounts fifty per cent greater than the amounts specified in subsection G of this section.

I.  1.  "Original" spending limit means a limit specified in subsections G and H of this section, as adjusted pursuant to section 16‑959, or a special amount expressly set for a particular candidate by a provision of this title.

2.  "Adjusted" spending limit means an original spending limit as further adjusted by any supplemental funding issued pursuant to section 16‑952.END_STATUTE

Sec. 11.  Section 41-133, Arizona Revised Statutes, is amended to read:

START_STATUTE41-133.  Officeholder expenses; account; reporting; limitations; civil penalty; definition

A.  Any person who holds elected statewide public office or a legislative office in this state, whether by election or appointment, may establish an officeholder expense account in order to receive officeholder expense monies pursuant to this section.  These monies shall be paid by the citizens clean elections commission as part of its voter education functions prescribed in section 16-956.  The citizens clean elections commission shall prescribe forms and procedures to be used to administer this section.  receive or spend monies to defray the costs of performing officeholder duties as follows:

1.  An officeholder may receive contributions pursuant to this section only from individuals, and the maximum amount that may be received from an individual during an election cycle is one hundred fifty dollars.

2.  The total amount that an officeholder may receive or spend pursuant to this section during an election cycle is ninety-eight thousand three hundred sixty dollars for the governor, fifty-one thousand six hundred eighty dollars for the secretary of state and the attorney general, twenty‑five thousand eight hundred forty dollars for all other statewide officeholders and nine thousand eight hundred dollars for a legislator, which may include personal monies as prescribed by paragraph 3 of this subsection.  The secretary of state shall adjust this amount biennially as prescribed in section 16‑905, subsection H.

3.  An officeholder may contribute up to thirty per cent of the limits as prescribed by paragraph 2 of this subsection of the officeholder's personal monies to the officeholder's expense account.

B.  For an officeholder's future campaign monies received do not constitute a contribution as defined in section 16‑901 if the monies are received, expended and reported as prescribed in this section.

C.  An officeholder shall establish a separate account for officeholder expenses, which shall be separate from any candidate campaign account.  The officeholder shall file a statement of organization for the account designated as an officeholder expense account.  Monies raised or spent for officeholder expenses shall be reported under campaign finance reporting requirements pursuant to title 16, chapter 6, article 1.

D.  An officeholder shall not use monies in the officeholder account for campaign purposes.  Permissible uses of monies in an officeholder account include the following:

1.  Office equipment and supplies.

2.  Travel related to the officeholder's duties.

3.  Meeting or communicating with constituents.

4.  Expenses for informational and educational purposes, including subscriptions to newspapers, magazines or other periodicals or websites or other informational services, membership or participation in community, professional or fraternal organizations and participation in conferences and seminars.

E.  An officeholder shall not receive or spend monies from the officeholder account during the period beginning April 30 in an election year ninety days before the primary election, shall complete the purchase or otherwise use the item before April 30 in an election year ninety days before the primary election and shall not spend those monies until after the day of the general election.  Any monies remaining in the officeholder expense account beginning April 30 in an election year ninety days before the primary election may not be used and shall be returned to the citizens clean elections commission not later than sixty days before the primary election day.  For good cause shown, the commission may grant an extension of the deadline to return those monies to the commission.  except as follows:

1.  Paid to the state general fund.

2.  For a person who continues to hold office as prescribed in this section, carried forward to an officeholder expense account for another office or term of office, subject to the limitations prescribed by this section.

F.  An officeholder shall not transfer officeholder account monies to any other account or committee except for another officeholder account for that same officeholder.

G.  Section 41‑1234.01 applies to contributions to an officeholder account for legislators.

G.  As part of its duties under section 16-954, subsection d, the commission shall determine whether adequate monies will be available to provide funding pursuant to this section.  If the commission determines that there are not adequate monies available to provide funding pursuant to this section for the following year, the commission may suspend the program in whole or in part for the subsequent election cycle and allow officeholders who would have received monies pursuant to this section to receive contributions for their officeholder expense accounts.  An officeholder may receive contributions pursuant to this subsection only from individuals, and the maximum amount that may be received from any one individual during an election cycle is one hundred fifty dollars.  If the commission determines that there are adequate monies available to provide partial funding pursuant to this section, the commission shall suspend the program for statewide officeholders and shall fund the program prescribed by this subsection for all legislative officeholders.

H.  A person who violates this section is subject to a civil penalty of three times any amount improperly received, spent or reported.

I.  Section 16‑924 applies for the implementation and enforcement of this section.

J.  Any monies held by an officeholder pursuant to the officeholder expense account rules established by the citizens clean elections commission are subject to this section, and the citizens clean elections commission has no further authority with respect to those monies.

I.  A person who violates this section is subject to the penalties prescribed in title 16, chapter 6, article 2.

K.  J.  For the purposes of this section, "officeholder" means a person who holds an elected statewide public office or a legislative office in this state, whether by election or appointment. END_STATUTE

Sec. 12.  Requirements for enactment; three-fourths vote

Pursuant to article IV, part 1, section 1, Constitution of Arizona, sections 16-941, 16-951, 16-955, 16-956, 16-958, 16-959 and 16-961, Arizona Revised Statutes, as amended by this act, section 16-952, Arizona Revised Statutes, as repealed by this act and title 16, chapter 6, article 2, Arizona Revised Statutes, as amended by this act by adding a new section 16-952 are effective only on the affirmative vote of at least three-fourths of the members of each house of the legislature.

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