Bill Text: AZ SB1514 | 2024 | Fifty-sixth Legislature 2nd Regular | Introduced


Bill Title: Utilities; contributions; lobbying; nonrecoverable expenses

Spectrum: Partisan Bill (Democrat 6-0)

Status: (Introduced - Dead) 2024-02-06 - Senate read second time [SB1514 Detail]

Download: Arizona-2024-SB1514-Introduced.html

 

 

 

REFERENCE TITLE: utilities; contributions; lobbying; nonrecoverable expenses

 

 

 

 

State of Arizona

Senate

Fifty-sixth Legislature

Second Regular Session

2024

 

 

 

SB 1514

 

Introduced by

Senators Sundareshan: Bravo, Epstein, Hatathlie, Hernandez, Mendez

 

 

 

 

 

 

 

 

An Act

 

amending section 16-916, Arizona Revised Statutes; amending title 40, chapter 2, article 7, Arizona Revised Statutes, by adding section 40-363; amending title 41, chapter 7, article 8.1, Arizona Revised Statutes, by adding section 41-1232.09; relating to campaign contributions.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 


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

Section 1. Section 16-916, Arizona Revised Statutes, is amended to read:

START_STATUTE16-916. Corporation, limited liability company and labor organization contributions; separate segregated fund; limits; requirements

A. A corporation, limited liability company or labor organization shall not make contributions to a candidate committee.

B. A corporation, limited liability company or labor organization may make unlimited contributions to persons other than candidate committees.

C. A corporation, limited liability company or labor organization may sponsor a separate segregated fund. Employees, members, executives, stockholders and retirees and their families of a corporation, limited liability company or labor organization and any subsidiary or affiliate of a corporation, limited liability company or labor organization may make contributions to the separate segregated fund, subject to the following:

1. The separate segregated fund must register as a political action committee.

2. The sponsor or its affiliate may pay the administrative, personnel and fund-raising expenses of its separate segregated fund, which shall not be deemed contributions to the fund.

3. The sponsor or its separate segregated fund may solicit contributions from the sponsor's, sponsor's affiliates' or sponsor's subsidiaries' employees, members, executives, stockholders and retirees and their families. The following additional restrictions apply:

(a) With respect to an insurer, an insurer or its separate segregated fund may also solicit contributions from an insurance producer's employees, members, executives, stockholders and retirees and their families.

(b) With respect to a trade association or membership organization, the association or organization may solicit contributions from its members' employees, executives, stockholders, subsidiaries and retirees and their families.

4. A sponsor or its affiliate or a trade association or membership organization may facilitate the making of contributions to its separate segregated fund by establishing a payroll deduction system or other similar payment transfer method.

5. A sponsor, trade association, membership organization or separate segregated fund may rely on the federal election commission's written guidance interpreting 52 United States Code section 30118(b) and rules adopted under that section when interpreting this subsection, if otherwise consistent with this article and articles 1, 1.1, 1.3, 1.4, 1.5, 1.6 and 1.7 of this chapter.

D. A public service corporation that is regulated by the corporation commission or a public power entity as defined in section 30-801 may not make contributions to:

1. Any political action committee that makes expenditures, including a committee that makes independent expenditures, for or against any candidate for the corporation commission.

2. A corporation that is registered under section 501(c)(3) or 501(c)(4) of the internal revenue code and that makes expenditures to influence the outcome of an election of one or more candidates for the corporation commission. END_STATUTE

Sec. 2. Title 40, chapter 2, article 7, Arizona Revised Statutes, is amended by adding section 40-363, to read:

START_STATUTE40-363. Nonrecoverable expenditures

A public service corporation that is regulated by the corporation commission, the public service corporation's parent company and any subsidiary of the public service corporation or a public power entity as defined in section 30-801 may not spend ratepayer monies on any of the following:

1. Membership, dues, sponsorships or contributions to any entity that is exempt from taxation under section 501 of the internal revenue code, including businesses or trade associations.

2. Charitable giving, including contributions to an organization that is exempt from taxation under section 501(c)(3) or 501(c)(4) of the internal revenue code, and any expenses related to charitable giving.

3. Advertising.

4. Any compensation for any employee, if any portion of that compensation supports political influence activities or advertising.

5. Litigation regarding existing or proposed federal, state or local regulations, legislation or ordinances.

6. Any costs, including marketing, administration, customer service or other costs for products or services that are not regulated by the commission.

7.  Penalties or fines, including tax penalties or fines, issued against the public service corporation.

8. Travel, lodging, gifts, entertainment and food and beverage expenses for the public service corporation's board of directors and officers or the board of directors and officers of an affiliate.

9. Any owned, leased or chartered aircraft for the board of directors and officers or the board of directors and officers of an affiliate.

10. Investor relations.

11. Annual compensation that exceeds the governor's current annual compensation for any individual, including employees of the public service corporation, members of the board of directors and officers or the board of directors and officers of an affiliate.

12. Any direct or indirect cost associated with its attendance in, participation in, preparation for or appeal of any contested proceeding conducted before the commission, including attorney fees, fees for expert witnesses or consultants, the portion of employee salaries associated with that attendance, participation or preparation for or appeal of a contested proceeding and any other related costs identified by the commission. END_STATUTE

Sec. 3. Title 41, chapter 7, article 8.1, Arizona Revised Statutes, is amended by adding section 41-1232.09, to read:

START_STATUTE41-1232.09. Lobbying prohibited; public service corporation; public power entity; report

A. A public service corporation that is regulated by the corporation commission, the public service corporation's parent company and any subsidiary of the public service corporation may not spend ratepayer monies to lobby the legislature.

B. A public power entity as defined in section 30-801 may not spend ratepayer monies to lobby the legislature.

C. A person prescribed by subsection A or B of this section shall file reports pursuant to section 41-1232.02 or 41-1232.03 that include a description of the source of any monies used to lobby the legislature. END_STATUTE

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