Arizona Regulations § R2-20-109 Independent Expenditure Reporting Requirements
Regulation Text
A.
In accordance with A.R.S. §
16-958
(E)
, all persons obligated to file any campaign finance report under any provisions of Chapter 6, Article 2 of the Arizona Revised Statutes shall file such reports using the Secretary of State's Internet-based finance-reporting system, except if:
1.
Expressly provided otherwise by another Commission rule; or
2.
That system, or the necessary function on the system, is unavailable, in which case the executive director shall implement a suitable process.
B.
Independent Expenditure Reporting Requirements.
1.
Any person making independent expenditures cumulatively exceeding the amount prescribed in A.R.S. §
16-941
(D)
in an election cycle shall file campaign finance reports in accordance with A.R.S. §
16-958
and Commission rules.
2.
Any person who fails to file a timely campaign finance report pursuant to A.R.S. §
16-941
(D)
, A.R.S. §
16-958
, shall be subject to a civil penalty as prescribed in A.R.S. §
16-942
(B)
. Subsection R2-20-109(B)(4) does not apply to reports pursuant to A.R.S. §§
16-941
(D)
and
16-958
or this subsection. Any expenditure advocating against one or more candidates shall be considered an expenditure on behalf of any opposing candidate or candidates. Penalties shall be assessed as follows:
a.
For an election involving a candidate for statewide office, the civil penalty shall be $300 per day.
b.
For an election involving a legislative candidate, the civil penalty shall be $100 per day.
c.
The penalties in (a) and (b) shall be doubled if the amount not reported for a particular election cycle exceeds ten (10%) percent of the applicable adjusted primary election spending limit or adjusted general election spending limit.
d.
The dollar amounts in items (a) and (b), and the spending limits in item (c) are subject to adjustment of A.R.S. §
16-959
.
e.
Penalties imposed pursuant to this subsection shall not exceed twice the amount of expenditures not reported.
3.
A.R.S. §
16-942
(B)
applies to any entity including political committees that accepts contributions or makes expenditures on behalf of any candidate regardless of any other contributions taken or expenditures made and fails to timely file a campaign finance report under Chapter 6 of Title 16, Arizona Revised Statutes. Any expenditure advocating against one or more candi- dates shall be considered an expenditure on behalf of any opposing candidate or candidates. Penalties shall be assessed as follows:
a.
For an election involving a candidate for statewide office, the civil penalty shall be $300 per day.
b.
For an election involving a legislative candidate, the civil penalty shall be $100 per day.
c.
The penalties in (a) and (b) shall be doubled if the amount not reported for a particular election cycle exceeds ten (10%) percent of the applicable adjusted primary election spending limit or adjusted general election spending limit.
d.
The dollar amounts in items (a) and (b), and the spending limits in item (c) are subject to adjustment of A.R.S. §
16-959
.
e.
Penalties imposed pursuant to this subsection shall not exceed twice the amount of expenditures not reported.
4.
For purposes of A.A.C. R2-20-109(B)(3):
a.
Subject to A.R.S. §
16-901
(43)
and notwithstanding any rule to the contrary of that section, an entity shall not be found to have the predominant purpose of influencing elections unless, a preponderance of the evidence establishes that during a two-year legislative election cycle, the total reportable contributions made by the entity, in any combination, in a calendar year exceeds $1,000 and is more than fifty percent (50%) of the entity's total spending during the election cycle.
i.
For purposes of this provision, a "reportable contribution" or "reportable expenditure" shall be limited to a contribution or expenditure, as defined in title 16 of the Arizona revised statutes, that must be reported to the Arizona secretary of state, the Arizona citizens clean elections commission, or local filing officer in Arizona. A contribution or expenditure that must be reported to the federal election commission or to the election authority of any other state, but not to the Arizona secretary of state, the Arizona citizens clean elections commission or a local filing officer in Arizona, shall not be considered a reportable contribution or reportable expenditure.
ii.
For purposes of this provision, "total spending" shall not include volunteer time or fundraising and administrative expenses but shall include all other spending by the organization.
iii.
For purposes of this provision, grants to other organizations shall be treated as follows:
(1)
A grant made to a political committee or an organization organized under section 527 of the internal revenue code shall be counted in total spending and as a reportable contribution or reportable expenditure, unless expressly designated for use outside Arizona or for federal elections, in which case such spending shall be counted in total spending but not as a reportable contribution or reportable expenditure.
(2)
If the entity making a grant takes reasonable steps to ensure that the transferee does not use such funds to make a reportable contribution or reportable expenditure, such a grant shall be counted in total spending but not as a reportable contribution or reportable expenditure.
iv.
If the entity making a grant earmarks the grant for reportable contributions or reportable expenditures, knows the grant will be used to make reportable contributions or reportable expenditures, knows that a recipient will likely use a portion of the grant to make reportable contributions or reportable expenditures, or responds to a solicitation for report-able contributions or reportable expenditures, the grant shall be counted in total spending and the relevant portion of the grant as set forth in subsection (v) of this section shall count as a reportable contribution or reportable expenditure.
v.
Notwithstanding subsections (iii) and (iv) the amount of a grant counted as a reportable contribution or reportable expenditure shall be limited to the lesser of the grant or the following:
(1)
The amount that the recipient organization spends on reportable contributions and reportable expenditures, plus
(2)
The amount that the recipient organization gives to third parties but not more than the amount that such third parties fund reportable contributions or reportable expenditures.
b.
Notwithstanding section a above, the commission may nonetheless determine that an entity is not a political committee if, taking into account all the facts and circumstances of grants made by an entity, it is not persuaded that the preponderance of the evidence establishes that the entity is a political committee as defined in title 16 of Arizona Revised Statutes.
History
New Section adopted by exempt rulemaking at 6 A.A.R. 1567, effective June 21, 2000 (Supp. 00-2). Section repealed; new Section made by exempt rulemaking at 8 A.A.R. 588, effective October 17, 2001 (Supp. 02-1). Amended by exempt rulemaking at 11 A.A.R. 4518, effective May 28, 2005 (Supp. 05-4). Amended by exempt rulemaking at 13 A.A.R. 3597, effective January 1, 2008 (Supp. 07-4). Amended by exempt rulemaking at 15 A.A.R. 1156, effective August 31, 2009 (Supp. 09-2). Amended by exempt rulemaking at 16 A.A.R. 152, effective January 29, 2010 (Supp. 10-1). Amended by exempt rulemaking at 19 A.A.R. 3519, effective September 27, 2013. Amended by exempt rulemaking at 20 A.A.R. 879, effective 5/22/2014. Amended by exempt rulemaking at 20 A.A.R. 1329, effective 5/22/2014. Amended by exempt rulemaking at