Participating candidate guide: ... election cycle

              S TAT E O F A R I Z O N A CITIZENS CLEAN ELECTIONS COMMISSION



Participating Candidate Guide

2003-2004 ELECTION CYCLE



Mission Statement "To fairly, faithfully and fully implement and administer the Arizona Citizens Clean Elections Act."



PREPARED BY: COMMISSION STAFF, MARCH 2004 1-877-631-8891



Table of Contents

Introduction Chapter 1: How to Become a Candidate Qualifications for Office Statement of Organization Nominating Petitions and Papers Campaign Finance Software Establishing a Campaign Account Resign to Run Law Summary & References Chapter 2: How to Become a Participating Candidate Application for Certification as a Participating Candidate Changing Participation Status Candidate and Treasurer Training Classes Exploratory Period Qualifying Period Campaign Finance Reporting Requirements Summary & References Chapter 3: Qualifying for Funding Qualifying Contributions Solicitation of the $5 Qualifying Contributions Application for Funding Verifying the $5 Qualifying Contributions Summary & References Chapter 4: Primary Election Funding Primary Election Spending Limit Primary Election Period Matching Funding Return of Unspent Monies Summary & References Chapter 5: General Election Funding General Election Spending Limit General Election Period Matching Funding Return of Unspent Monies Summary & References

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Table of Contents

Chapter 6: Use of Campaign Monies Direct Campaign Purposes Prohibited Use of Campaign Monies Use of Assets from a Prior Election Travel Expenses Food and Beverages Expenses Summary & References Chapter 7: Campaign Contributions Definition of Contribution Types of Contributions Contributions Reported in a Campaign Finance Report Remedying an Excessive Contribution Summary & References Chapter 8: Campaign Expenditures Definition of Expenditure Expenditures Reported in a Campaign Finance Report Summary & References Chapter 9: Voter Education Debates Candidate Statement Pamphlets Summary & References Chapter 10: Nonparticipating Candidates Contribution Limits Reporting Requirements Trigger Reports Matching Funds for Participating Candidates Contents of All Campaign Finance Reports Summary & References 44 44 44 45 45 46 47 48 48 50 53 54 55 56 56 57 60 61 61 63 65 66 66 67 68 70 70 73



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Table of Contents



Chapter 11: Independent Expenditures Filing an Independent Expenditure Committee Definition of Independent Expenditure Definition of Express Advocacy What is Not Considered to be an Independent Expenditure Independent Expenditure Trigger Reporting Dates Matching Funds for Participating Candidates Summary & References Chapter 12: Post-Election Requirements Return of Unspent Monies Inaugural Expenses Terminating the Campaign Committee Officeholder Expenses Summary & References Chapter 13: Enforcement Enforcement Procedures Penalties Repayment Audits Summary & References Glossary of Terms Participating Candidate Checklist Forms



74 74 74 74 76 77 78 79 80 80 80 81 81 83 84 84 87 88 88 90 91 96 97



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Introduction

Welcome to Arizona's Citizens Clean Elections Commission Participating Candidate Guide for the 2003-2004 election cycle. This Guide was created to provide information to candidates interested in running for legislative or statewide office. The Citizens Clean Elections Act ("Act") is a campaign finance reform measure that was initiated by Arizona citizens and passed by voters in 1998. The Act created a new campaign financing system that provides full public funding to qualified candidates who agree to abide by the Act and Citizens Clean Elections Commission ("Commission") rules. Participating candidates for statewide offices (governor, secretary of state, state treasurer, attorney general, superintendent of public instruction, corporation commissioner and mine inspector) and legislative offices (house of representatives and senate) are eligible to participate in the public funding program. If you have questions, please do not hesitate to contact us at 1-602-364-3477 or toll free at 1-877631-8891. We look forward to working with you.



Authority

Use of this Guide is intended solely as a reference guide. Every effort has been made to present accurate and reliable information, however, information contained in this Guide changes periodically. As a result, this Guide may contain some inadvertent errors. The Commission would appreciate your kindness in notifying our office of any inaccuracies, by calling us or by e-mailing a staff member. Readers of this Guide should take note that the information contained herein should not be considered as having the same weight and authority as the Arizona Revised Statutes and established court decisions or Attorney General Opinions. In the event any information conflicts, this Guide is not controlling and users must instead follow relevant legal authority. Additionally, the information contained in this Guide is not a satisfactory substitute for legal counsel. If you believe that you or your committee could be adversely affected in any matter relating to the subject matter contained herein, you should seek the professional assistance of an attorney.



Alternate Formats

This Guide is available in alternate formats. Persons who need information about the Guide in alternate formats should call the Commission, or e-mail Paula Ortiz at paula.ortiz@ccec.state.az.us.



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Introduction The Citizens Clean Elections Commission

In 1998, the people of Arizona created a clean elections system to improve the integrity of Arizona state government by diminishing the influence of special interest money, to encourage citizen participation in the political process, and to promote freedom of speech under the U.S. and Arizona Constitutions.



Commissioners

The Commission consists of five commissioners. The commissioners are committed to enforce the Act in an honest, independent, and impartial fashion. 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 voter registration that has been continuously recorded for at least five years immediately preceding appointment with the same political party or as an independent. (Chair) David McKay (R), Flagstaff (Term ending Jan. 31, 2005) Kathleen S. Detrick (I), Tucson (Term ending Jan. 31, 2006) Ermila Jolley (D), Yuma (Term ending Jan. 31, 2007) Marcia Busching (D), Phoenix (Term ending Jan. 31, 2008) Tracey Bardorf (R), Scottsdale (Term ending Jan. 31, 2009)



Sources of Funding

     $5 Tax Check-Off on the Arizona State Income Tax Return Dollar-for-Dollar Tax Credit on the Arizona State Income Tax Return 10% Surcharge on Civil Penalties and Criminal Fines $5 Qualifying Contributions Civil Penalties from Enforcement Actions



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Introduction Contact Information

Citizens Clean Elections Commission 1616 W. Adams, Suite 110 Phoenix, AZ 85007 (602) 364-3477 (602) 364-3487, fax 1-877-631-8891, toll free www.ccec.state.az.us Secretary of State's Office Administration / Elections: Capitol Executive Tower 7th Floor 1700 West Washington Street Phoenix, AZ 85007-2888 (602)542-4285 or (800)458-5842 (602) 542-6172, fax elections@sos.state.az.us www.sos.state.az.us



Commission Staff

Executive Director Colleen Connor Deputy Director Eric Gorsegner Campaign Finance Analyst Rebecca Hecksel Voter Education Manager Autumn Southard Fiscal Services Manager Colleen McGee Executive Assistant Paula Ortiz Administrative Assistant Christina Jones Administrative Assistant Emily Garcia



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Chapter 1: How to Become a Candidate

Chapter 1 takes prospective candidates through the preliminary steps on how to register as a candidate for the 2003-2004 election cycle.



I. Qualifications for Office

Every person elected to any elective office of the state shall be a qualified elector of the political division in which the person seeks election at the time of filing the nomination papers. A qualified elector is a person who is properly registered to vote. The qualifications of a person who is properly registered to vote are all of the following:       A citizen of the United States. 18 years of age or more on or before the date of the next regular general election following his registration. A resident of the state 29 days preceding the next election. Able to write name or make mark, unless prevented from doing so by physical disability. Has not been convicted of treason or a felony, unless restored to civil rights. Has not been adjudicated an incapacitated person.



Every candidate must meet basic qualifications for public office prescribed by the Arizona Constitution and Arizona Revised Statutes.



State Legislature

Qualifications  A citizen of the United States at the time of the election.  At least 25 years of age.  A resident of Arizona at least three years.  A resident of the county from which the person is elected at least one year before the election. Job Description The Legislature is a state lawmaking body that proposes and enacts laws, appropriates funds for the support of the State government, proposes amendments to the State Constitution and provides public forums for hearings and debates about bills. A legislator may not serve more than four terms consecutively. State Senate: The term for Senators is two years. State House of Representatives: The term for Representatives is two years.



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Chapter 1: How to Become a Candidate Corporation Commission

Qualifications Arizona law does not set minimum age or length of residency requirements for a person who holds the office of corporation commissioner. The law, however, does give specific requirements for persons elected, appointed to, or holding the office of commissioner and appointees or employees of the Corporation Commission. They shall NOT be:     A person in the employ of or holding an official relation to a corporation. A person subject to regulations by the Corporation Commission. A person owning stocks or bonds of a corporation subject to regulation. A person who is pecuniarily interested therein.



Job Description The Corporation Commission regulates rates charged by gas, water, sewer, electric and telephone utilities; regulates issuance and enforcement securities; and regulates formation and filings by all corporations doing business in Arizona. There are five commissioners. The term for corporation commissioner is four years. A corporation commissioner may not serve more than two terms consecutively.



II. Statement of Organization

Once an individual determines that he or she meets the qualifications to seek elective office, the next step is for the individual to file a statement of organization in order to establish the campaign committee. All campaign committees must file a statement of organization with the Secretary of State's Office. The statement of organization may NOT be filed with the Commission.



When to File the Statement of Organization

Each candidate, or individual exploring whether to become a candidate, who intends to receive contributions or make expenditures of more than $500 in connection with a campaign for office shall file a statement of organization in order to establish the candidate's campaign committee or exploratory committee. An individual must file a statement of organization before:     Making any expenditures, Accepting any contributions, Distributing any campaign literature, or Circulating any petitions.



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Chapter 1: How to Become a Candidate Contents of Statement of Organization

The statement of organization shall include all of the following: 1. The name, address and type of committee.  The candidate, or possible candidate, must designate the type of committee, either a Candidate Committee or Exploratory Committee.  A Candidate Committee is a political committee designated and authorized by the candidate. A candidate must establish a candidate committee to qualify for the ballot.  An Exploratory Committee gives an individual the opportunity to raise and spend monies in order to explore the possibility of running for office without officially declaring candidacy. Once the individual makes the decision to run for office, the individual must establish a candidate committee. A candidate is not required to file an exploratory committee during the exploratory period. 2. The names, addresses, telephone numbers, occupations and employers of the chairman and treasurer of the committee. It is permissible for a candidate to be the chairman and treasurer of his or her own campaign committee. 3. The name, address, office sought and party affiliation of the candidate. 4. Name of the banking institution used by the committee.



Number of Committees

Exploratory Committee: An individual may have only one exploratory committee in existence at a time. Candidate Committee: A candidate may have only one campaign committee designated for each election, however, a candidate may have more than one active campaign committee from different elections simultaneously in existence.



III. Nominating Petitions & Papers

To qualify for Commission funding, a participating candidate must either be an independent candidate or meet the following standards:   To qualify for funding for a party primary election, a candidate must have properly filed nominating papers and nominating petitions with signatures in the primary election of a political party entitled to continued representation on the official ballot. To qualify for clean campaign funding for a general election, a candidate must be a party nominee of a political party recognized on the official ballot.



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Chapter 1: How to Become a Candidate Timeline for Filing Nominating Papers and Petitions

All candidates must file nominating papers and nominating petitions with signatures with the Secretary of State's Office during a 30-day period specified in the chart below: FILING PERIOD FOR ALL CANDIDATES

Legislature: Corporation Commission: May 10, 2004 - June 9, 2004 May 10, 2004  June 9, 2004



Participating Candidates May File Early

A participating candidate may file his or her nominating papers and nominating petitions earlier than May 10, 2004. Any time after January 1, 2004, a participating candidate who is ready to apply for funding may file his or her nominating petition and signatures early, instead of waiting for the traditional filing timeline. The nominating petition and signatures must be filed with the Secretary of State at the same time that the candidate applies to receive funding by submitting his or her $5 qualifying contributions. If a candidate files his or her nominating petition and signatures early and qualifies to receive funding, the candidate will receive the appropriate primary funding amount immediately. Please refer to Chapter 3 for a detailed explanation of the process of applying for funding.



IV. Campaign Finance Software

After the candidate files the Statement of Organization, the Secretary of State's Office will give the candidate the following: 1. Campaign Finance Software 2004 CD-Rom. All campaign finance reports must be filed electronically with the Secretary of State's Office using computer software that is provided by the Secretary of State. 2. A personal identification number (pin) number to access the campaign finance software. 3. A packet of useful information pertaining to the 2003-2004 election cycle.



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Chapter 1: How to Become a Candidate



V. Establishing a Campaign Account

Before a candidate accepts contributions or makes expenditures, the candidate must designate a financial institution for the campaign account. The candidate shall notify the Secretary of State's Office of the designation of the financial institution either at the time of filing the statement of organization or within five business days after opening an account. All withdrawals or disbursements from the campaign account require the authorization of the treasurer or a designated agent of the campaign committee. All expenditures from the campaign account shall be paid directly to the person providing the goods or services, except for petty cash expenditures. During an election cycle, each participating and nonparticipating candidate shall conduct all campaign financial activities through a single, current election campaign account and any petty cash accounts, as are permitted by law.



Petty Cash Accounts

A candidate's campaign committee may establish one or more petty cash accounts, which in aggregate shall not exceed $1,100 at any time. No single expenditure shall be made from a petty cash account exceeding $110. When reporting the use of petty cash in a campaign finance report, the individual expenditures made with the cash do NOT need to be reported; only the actual cash withdrawal is required to be included in campaign finance reports. The campaign treasurer, however, is required to maintain a record of all expenditures made with petty cash. The record shall identify the name and address of every person to whom an expenditure is made, the date, and the amount and purpose or reason for the expenditure. The Commission recommends that the treasurer keep a running total of all petty cash withdrawals and expenditures to ensure that the maximum of $1,100 is not inadvertently exceeded.



USE OF PETTY CASH EXAMPLE

On July 16, 2004, a participating candidate withdraws $200 in cash from the campaign account to use as petty cash. In the campaign finance software, the candidate shall enter an expenditure for $200, dated July 16, 2004, payable to the person who withdrew the cash, and a memo stating "petty cash." The candidate then uses the cash to make purchases that are less than $110 each. The candidate provides the receipts to the treasurer and the treasurer retains the following documentation for campaign records: Petty Cash Expenditures July 20, 2004 $50 July 21, 2004 $75 July 27, 2004 $75 Home Depot Sign Central Kinkos lumber for signs bumper stickers copies of flyers



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Chapter 1: How to Become a Candidate Prior Campaign Accounts

A candidate may not use a prior campaign account during the current election cycle. A candidate may maintain a campaign account other than the candidate's current campaign account if the other campaign account is for a campaign in a prior election cycle in which the candidate was not a participating candidate. Remaining monies from a prior campaign may be transferred to the candidate's current campaign account. The money transferred must have originally been received from individuals or from the candidate. The early contribution limits apply and the origins of the transferred monies shall be justified upon request. Therefore, monies transferred to the current campaign account shall not exceed $110 per individual contributor. No monies may be transferred that were originally received from PACs or corporations.



Designated Person

A candidate may designate other persons with authority to withdraw funds from the candidate's campaign account. The candidate and any person so designated shall sign a joint statement, on the Application for Certification as a Participating Candidate (Chapter 2), under oath, promising to comply with the requirements of the Act. Regardless of who the designated person is, the campaign treasurer is ultimately responsible for all financial activity conducted by the campaign.



Records and Bookkeeping of Campaign Treasurer

The treasurer of the campaign committee is the custodian of the committee's books and accounts and shall keep an account of all of the following: 1. All contributions or monies received by or on behalf of the committee. 2. The identification of any person that makes any contribution, the date and amount of each contribution, and the date of deposit into the campaign account. 3. Cumulative totals contributed by each individual. 4. The name and address of every person to whom any expenditure is made, the date, amount and purpose or reason for the expenditure. 5. All bank statements for the designated campaign account. The treasurer shall record a contribution made by check or money order as a contribution by the person whose signature or name appears on the bottom of the instrument or who endorses the check or money order before delivery to the committee. If a contribution is made by more than one person in a single check, the treasurer shall record the amount to be attributed to each contributor. The treasurer shall preserve all records specified above and copies of all campaign finance reports for three years after the election.



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Chapter 1: How to Become a Candidate Access to Records

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. 1. All candidates shall maintain at a single location within the state, the books and records of financial transactions. In all cases, all such information shall be made available for inspection by the Commission during regular business hours. 2. On request of the attorney general, the county, city or town attorney or the Secretary of State, the treasurer shall provide any of the records required to be kept by the campaign treasurer.



VI. Resign to Run Law

The resign to run law applies to incumbent elective officers who seek election to any public office other than the office that the incumbent is currently holding. If an elected official wishes to declare his or her candidacy anytime before the final year of the term being held, the officeholder must first resign his or her office. An elected official is not deemed to have offered himself or herself for nomination or election to an office or to have made a formal, public declaration of candidacy solely by his or her designation of a candidate campaign committee.



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Summary

In order to run for state or legislative office, a candidate must first file the statement of organization with the Secretary of State. A statement of organization must be filed before accepting any contributions, making any expenditures and collecting any ballot petition signatures. The Campaign Finance Software, provided by the Secretary of State, must be used to file all campaign finance reports. A candidate must establish a single bank account through which all campaign transactions are processed. A candidate may establish a petty account, not to exceed $1,100 at anytime. No petty cash expenditure may exceed $110. The campaign treasurer is responsible for maintaining all committee records. An elected official must resign in order to declare his candidacy for a different elective office, except when the officer is in the final year of the current elective office.



References

Qualifications for office  Qualified Elector - Arizona Constitution Article VII,  15 & A.R.S.  16-101(A)(1-6)  Legislature  Arizona Constitution Article V,  1 and 2  Corporation Commission  A.R.S.  40-101 All campaign financial activity shall be conducted through a single campaign account  A.A.C. R2-20-110(A) Petty cash accounts  A.R.S.  16-948(C) Resign to run  A.R.S.  38-296



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Chapter 2: How to Become a Participating Candidate

Chapter 2 takes candidates through the steps on how to become a participating candidate. A candidate who is interested in accepting public funding must first file an application to be certified as a participating candidate. After a candidate is certified as a participating candidate, the candidate is eligible to raise $5 qualifying contributions and apply for funding.



I. Application For Certification as a Participating Candidate



Candidates interested in becoming a participating candidate must file an application called the "Application for Certification as a Participating Candidate" with the Secretary of State's Office before the end of the qualifying period, August 19, 2004. At the time the candidate submits his or her Application for Certification, the candidate shall file a campaign finance report reflecting all campaign activity to date.



Candidate Certifies Under Oath

In the Application for Certification, the candidate certifies under oath that the candidate: 1. Has complied with the restrictions of A.R.S.  16-941(A) during the election cycle to date, which are as the following: a. Not accepted contributions other than early contributions specified in A.R.S.  16945; b. Not made expenditures that exceed the candidate's personal money limit; and c. Conducted all financial activity through a single campaign account. 2. Will continue to comply with the restrictions in paragraph 1 during the remainder of the election cycle, and will: a. Not make expenditures in the primary election period in excess of the adjusted primary election spending limit; and b. Not make expenditures in the general election period in excess of the adjusted general election spending limit; and c. Return unused monies to the Fund in accordance with A.R.S.  16-953. 3. Will file all campaign finance reports required under Title 16, Chapter 6, Article I, during the election cycle to date, and the reports will be complete and accurate. 4. Agrees to use all Clean Elections funding for direct campaign purposes only; 5. Has filed a campaign finance report, showing all activity to date in the current election cycle; 6. Will comply with all requirements of the Act and Commission rules;



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Chapter 2: How to Become a Participating Candidate

7. Is subject to all enforcement actions by the Commission as authorized by the Act and Commission rules; 8. Has the burden of proving that expenditures made by or on behalf of the candidate are for direct campaign purposes; 9. Will keep and furnish to the Commission all documentation relating to expenditures, receipts, funding, books, records (including bank records for all accounts), and supporting documentation and other information that the Commission may request; 10. Will permit an audit or examination by the Commission of all receipts and expenditures including those made by the candidate. The candidate shall also provide any material required in connection with an audit, investigation, or examination conducted by the Commission. The candidate shall facilitate the audit by making available in one central location, such as the Commission's office space, records and such personnel as are necessary to conduct the audit or examination, and shall pay any amounts required to be repaid; 11. Will submit the name and mailing address of the person who is entitled to receive equalizing funds payments on behalf of the candidate and the name and address of the campaign depository designated by the candidate. Changes in the information required by this paragraph shall not be effective until submitted to the Commission in a letter signed, or submitted electronically, by the candidate or the committee treasurer; 12. Will pay any civil penalties included in a conciliation agreement or otherwise imposed against the candidate; 13. Will timely file all campaign finance reports with the Secretary of State in an electronic format; and 14. Will file an amended application for certification reporting any change in the information prescribed in the application for certification within 5 days after the change.



Where to Find the Application for Certification as a Participating Candidate

The Application for Certification as a Participating Candidate is available:     At the end of this Guide On the Commission website, which is www.ccec.state.az.us At the Commission Office At the Secretary of State's Office



Processing the Application for Certification as a Participating Candidate

Although the Application for Certification as a Participating Candidate must be submitted to the Secretary of State's Office, it is the Commission that shall act upon the application within seven calendar days. Unless during that time the Commission denies an application with written reasons that all or part of a certification is incomplete or untrue, the candidate will be certified as participating. The Commission will send the candidate a letter notifying him or her that he or she has been certified as a participating candidate. Once certified, the candidate is held to all laws governing participating candidates.



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Chapter 2: How to Become a Participating Candidate



II. Changing Participation Status

A candidate who is a certified participating candidate may opt out of Clean Elections and choose to be decertified. Voluntary termination of participating candidate status may only occur before the end of the qualifying period, August 19, 2004. To withdraw from participating candidate status:     The candidate is required to send a letter to the Commission stating the candidate's intent to withdraw and the reason for the withdrawal. The candidate may not accept any private monies until the withdrawal is approved by the Commission. The Commission shall act on the withdraw request within 7 days. If the Commission takes no action in the 7-day time period, the withdrawal is automatic and the candidate shall immediately begin the process of returning public funds to the Commission.



A candidate whose withdrawal has been approved shall:    No longer be eligible to receive public funding; Return all Clean Elections funding to the Commission; and Make his or her best efforts to return all $5 qualifying contributions to the contributors within 30 days of the candidate's withdrawal. If contributors cannot be located, then the $5 qualifying contributions shall be sent to the Commission.



A nonparticipating candidate who has accepted contributions up to the limits permissible for nonparticipating candidates, but later chooses to run as a participating candidate, shall:      Make the change to participating candidate status during the exploratory and qualifying periods only; Return the amount of each contribution in excess of the individual contribution limit for participating candidates; Return all Political Action Committee (PAC) monies received; Not have spent contributions exceeding the aggregate early contribution limit, or any part of a contribution exceeding the individual early contribution limit of $110; Comply with all contribution and spending limits required of a participating candidate for the election cycle.



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Chapter 2: How to Become a Participating Candidate



III. Candidate and Treasurer Training Classes

Every participating candidate and the candidate's treasurer are required to attend a training class sponsored by the Commission. This is a new rule adopted by the Commission for the 2003  2004 election cycle. The Commission staff conducts separate training classes for participating candidates, nonparticipating candidates and campaign treasurers. If a candidate or a treasurer cannot attend a training class, he or she must notify the Commission. The Commission will then send training materials to the candidate or the treasurer. The candidate or the treasurer must sign a statement certifying that he or she has received and reviewed the training materials. For the 2003  2004 election cycle, the schedule for the training classes is as follows: PARTICIPATING CANDIDATE TRAINING CLASSES Date & Time Location October 22, 2003 6:00pm Phoenix, Commission Conference Room November 5, 2003 6:00pm Tucson, University of Arizona November 12, 2003 6:00pm Phoenix, Commission Conference Room December 10, 2003 6:00pm Phoenix, Commission Conference Room January 21, 2004 6:00pm Flagstaff, Northern Arizona University January 28, 2004 6:00pm Phoenix, Commission Conference Room February 18, 2004 6:00pm Kingman, Elks Lodge February 25, 2004 6:00pm Phoenix, Commission Conference Room March 10, 2004 6:00pm Tucson, Mayor & Council Chambers March 17, 2004 6:00pm Flagstaff, Northern Arizona University March 24, 2004 6:00pm Phoenix, Commission Conference Room April 21, 2004 6:00pm Phoenix, Commission Conference Room NONPARTICIPATING CANDIDATE TRAINING CLASSES Date & Time Location March 31, 2004 6:00pm Phoenix, Commission Conference Room April 28, 2004 6:00pm Phoenix, Commission Conference Room May 25, 2004 6:00pm Phoenix, Commission Conference Room TREASURER TRAINING CLASSES Date & Time Location March 29, 2004 6:00pm Phoenix, Commission Conference Room April 26, 2004 6:00pm Phoenix, Commission Conference Room May 18, 2004 6:00pm Phoenix, Commission Conference Room June 17, 2004 6:00pm Phoenix, Commission Conference Room The Commission may sponsor additional training classes, as needed. Check the Commission website at www.ccec.state.az.us for updates on training class dates. Citizens Clean Elections Commission 2003-2004 Participating Candidate Guide



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Chapter 2: How to Become a Participating Candidate



IV. Exploratory Period

The dates for the exploratory period are set forth in the chart below. EXPLORATORY PERIOD November 6, 2002  December 31, 2003: Legislative Candidates November 6, 2002  July 31, 2003: Statewide Candidates During the exploratory period, participating candidates may:  Raise and spend a limited amount of early contributions and personal monies. o Early contributions are raised from individuals. Personal monies are the candidate's and the candidate's family's contributions to the campaign. For more information on early contributions and personal monies, please refer to Chapter 7. File the Application for Certification as a Participating Candidate; Retire campaign debt.



 



Retiring Prior Campaign Debt

During the exploratory period only, the candidate may accept additional early contributions or use additional personal money to retire prior campaign debt. The exploratory period is the only period of time during which candidates may raise funds to pay for debt from a previous campaign. If a participating candidate has a debt from a previous election in which the candidate was not a participating candidate, then, during the exploratory period only, the candidate may accept additional monies to retire the debt. The candidate may accept the following monies to retire a prior campaign debt:   Individual contribution limits applicable to nonparticipating candidates. For the 2003  2004 election cycle, the individual contribution limits are $280 for legislative candidates and $720 for statewide candidates. Unlimited personal monies.



$5 Qualifying Contributions

Participating candidates MAY NOT raise $5 qualifying contributions during the exploratory period.



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Chapter 2: How to Become a Participating Candidate



V. Qualifying Period

Once the exploratory period ends, the qualifying period begins on December 31, 2003 for legislative candidates and July 31, 2003 for statewide candidates. The dates of the qualifying period are as follows: QUALIFYING PERIOD January 1, 2004  August 19, 2004: Legislative Candidates August 1, 2003  August 19, 2004: Statewide Candidates During the qualifying period, candidates may:       Raise and spend a limited amount of early contributions and personal monies (Chapter 7); File the Application for Certification as a Participating Candidate; Collect nominating petition signatures; Collect $5 qualifying contributions (Chapter 3); File the Participating Candidate's Application to Receive Funds and Qualifying Contributions Report (Chapter 3); Receive Clean Elections funding, including matching funding (Chapter 4).



At the end of the qualifying period, candidates are required to:   Send to the Commission any unspent early contributions Return to the candidate or family member any unspent personal monies



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Chapter 2: How to Become a Participating Candidate



VI. Campaign Finance Reporting Requirements

Each participating candidate is required to file campaign finance reports reporting the committee's receipts and disbursements. The following chart lists all of the required campaign finance reports and the deadlines for filing the reports. All campaign finance reports must be filed electronically with the Secretary of State's Office using the Secretary of State's campaign finance software. PARTICIPATING CANDIDATE CAMPAIGN FINANCE REPORTING REQUIREMENTS Name of Report Due Date Covered Period st January 31 Report February 2, 2004 (Period 1) covering November 26, 2002 to December 31, 2003 June 30th Report June 30, 2004 (Period 2) covering January 1, 2004 to May 31, 2004 Application for When a candidate Covering all campaign transactions to date. Certification Report submits the Due to the Secretary of State at the same time Application for the Application for Certification is filed with Certification the Secretary of State. Qualifying When a candidate Reporting all $5 qualifying contributions being Contributions submits the $5 submitted to the Secretary of State for Report qualifying verification. contributions to SOS End of Qualifying August 24, 2004 Covering all campaign transactions through Period Report August 19, 2004. Any unspent early contributions reported must be sent to the Commission. Pre-Primary Report August 26, 2004 (Period 3) covering June 1, 2004  August 18, 2004 Return of Primary September 12, 2004 Covering all campaign transactions through Funds Report September 7, 2004. Any unspent monies reported must be sent to the Commission. Post-Primary Report October 7, 2004 (Period 4) covering August 19, 2004 to September 27, 2004. This report shall include the identification of monies (if any) that were returned to the Commission at the end of the primary election period. Pre-General Report October 21, 2004 (Period 5) covering September 28, 2004 to October 13, 2004 Post-General Report December 2, 2004 (Period 6) covering October 14, 2004 to November 22, 2004. This report shall include the identification of monies (if any) that were returned to the Commission at the end of the general election period. Return of General December 2, 2004 Covering all campaign transactions through Funds Report November 2, 2004. Any unspent monies must be sent to the Commission. Citizens Clean Elections Commission 2003-2004 Participating Candidate Guide



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Chapter 2: How to Become a Participating Candidate



Summary

In order to become a participating candidate, a candidate must file the "Application for Certification as a Participating Candidate" with the Secretary of State. A campaign finance report showing all campaign activity to date must be filed at the same time. A participating candidate may file his or her nominating papers and nominating petitions earlier than May 10, 2004, as long as he or she is concurrently filing the $5 qualifying contributions. A nonparticipating candidate may choose to become certified as a participating candidate during the exploratory and qualifying periods only. All participating candidates and their campaign treasurers must attend a training class sponsored by the Commission. $5 qualifying contributions may not be raised during the exploratory period.



References

Campaign finance report filed with Application for Certification  A.A.C. R2-20-104(C) Requirements for a nonparticipating candidate to become eligible for participating candidate status  A.A.C. R2-20-104(A) & (B) Voluntary termination of participating candidate status  A.A.C. R2-20-108 Requirements for attending Commission sponsored training classes  A.A.C. R2-20-104(D)(5) Retiring prior campaign debt  A.R.S.  16-945(C) Campaign finance reporting requirements  A.R.S.  16-913  A.A.C. R2-20-109



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Chapter 3: Qualifying for Funding

Chapter 3 explains the process for collecting the $5 qualifying contributions and submitting them to the Secretary of State in order to qualify for Commission funding.



I. Qualifying Contributions

To qualify for Commission funding, a participating candidate is required to collect a certain number of $5 qualifying contributions from individuals registered to vote in the candidate's district (or statewide for corporation commission candidates). Each $5 qualifying contribution must be accompanied by a qualifying contribution form. The Commission has developed a 3-part form that is available free to participating candidates. The Commission also accepts the use of photocopies and computer reproduced qualifying contribution forms as long as they comply with the requirements set forth in the Act which specifies that the qualifying contribution form must list the name of the candidate; name, address, and signature of the contributor; date of contribution; and name of solicitor. Each qualifying contribution also must include the original signatures of the contributor and the solicitor.



Required Number of Qualifying Contributions

To qualify for clean campaign funding, a candidate must have been certified as a participating candidate and have obtained the following number of qualifying contributions:   210 for Legislature 1,575 for Corporation Commission



To ensure that a candidate has a sufficient number of valid $5 qualifying contributions, the Commission recommends that a candidate gather at least 20% more qualifying contributions than the minimum number required. QUALIFYING CONTRIBUTIONS  minimum + 20% (*recommended*) 210 + 20% = 252 x $5 = $1,260 1,575 + 20% = 1,890 x $5 = $9,450



OFFICE Legislature Corporation Commission



QUALIYFING CONTRIBUTIONS  minimum required 210 x $5 = $1,050 1,575 x $5 = $7,875



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Chapter 3: Qualifying for Funding Time Period

Candidates may accept $5 qualifying contributions during the following time periods:   January 1, 2004 - August 19, 2004 for Legislative candidates; August 1, 2003 - August 19, 2004 for Corporation Commission candidates.



The last day a participating candidate may submit the $5 qualifying contributions to the Secretary of State is August 26, 2004.



Definition of Qualifying Contribution

     The sum of $5, exactly; Made by a qualified elector ("contributor"). A qualified elector is a person who is registered to vote in the district of the office the candidate is seeking; The contributor has not given another qualifying contribution to the same candidate during that election cycle; The contributor has not been given anything of value in exchange for the qualifying contribution; The contribution is received unsolicited or solicited from a person who is not employed or retained by the candidate and who is not compensated by or on behalf of the candidate to collect the qualifying contribution; If made by check or money order, made payable to the candidate's campaign committee, or if made in cash, deposited in the candidate's campaign committee's bank account; If a married couple contributes a $10 check, BOTH spouses must sign the check for it to be considered two valid qualifying contributions and each spouse must sign and date a threepart form (one check, two forms); and Accompanied by a three-part reporting slip that includes the printed name, registration address, and signature of the contributor; the name of the candidate for whom the contribution is made; the date; and the printed name and signature of the solicitor, if applicable.



 







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Chapter 3: Qualifying for Funding

HELPFUL HINTS $5 QUALIFYING CONTRIBUTIONS Any expense incurred as a result of collecting qualifying contributions is considered to be a direct campaign expense and must be paid for out of the candidate's campaign account. The $5 qualifying contributions must be kept by the candidate before submitting them to the Secretary of State, however, the candidate is NOT allowed to spend that money. The contributor's party affiliation DOES NOT matter for the $5 qualifying contributions. A contributor may give a $5 qualifying contribution to more than one candidate for the same office. A contributor may give a $5 qualifying contribution, a $110 early contribution, as well as sign a nomination petition on behalf of the same candidate.



II. Solicitation of the $5 Qualifying Contributions

The Solicitor

The solicitor is defined as a person who is eligible to be registered to vote in this state and seeks $5 qualifying contributions from qualified electors of this state. The solicitor can be the candidate or a volunteer. The solicitor, however, MAY NOT be compensated to collect $5 qualifying contributions. On the qualifying contribution form, the solicitor must provide the following information:    Solicitor's name; Residential address; and Signature.



Every resident of the state is qualified to register to vote if he or she:       Is a citizen of the United States; Is eighteen years of age or more on or before the date of the regular general election next following his or her registration; Has been a resident of the state twenty-nine days next preceding the election; Is able to write his or her name or make a mark, unless prevented from doing so by physical disability; Has not been convicted of treason or a felon, unless restored to civil rights; Has not been adjudicated an incapacitated person.



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Chapter 3: Qualifying for Funding Unsolicited Qualifying Contributions

Candidates may receive qualifying contributions unsolicited. received, the candidate may:   If an unsolicited contribution is



Sign the qualifying contribution form as the solicitor and be accountable for all of the responsibilities of a solicitor; or Leave the solicitor information blank.



EXAMPLES OF WAYS PARTICPATING CANDIDATE'S MAY RAISE $5 QUALIFYING CONTRIBUTIONS

Have volunteers solicit qualifying contributions on behalf of the candidate. Host parties or forums to receive qualifying contributions. If a candidate hosts a party or event where refreshments are available, the candidate may not require a $5 contribution for partaking in refreshments. An individual hosts a party or an event in his or her home. In this situation, each adult in the household may spend up to $100 in value for invitations, food and beverages only which does not count as a contribution to the candidate. Any amount spent by the homeowner over $100, or for any other purpose, will need to be reported as a contribution from the individual and is subject to individual contribution limits. The candidate may also use campaign monies to pay for refreshments for the event, subject to the food expenditure limits of $7 per person for breakfast, $7.50 per person for lunch and $15 per person for dinner. Candidates may post on their web site a solicitation for qualifying contributions and the qualifying contribution form. The web site should direct visitors to download or print out the qualifying contribution form, complete it and return the completed form with the original signature and the $5 contribution to the candidate. Candidates may register an individual to vote and receive a qualifying contribution from that individual on the same day.



Important Note:



Qualifying Contribution Prohibitions A lobbyist may not give a contribution to a legislator or the Governor when the legislature is in regular session. In addition, lobbyists may not solicit contributions on behalf of a legislator or the Governor when the legislature is in regular session.



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Chapter 3: Qualifying for Funding



III. Application for Funding

Once a candidate has received the required number of qualifying contributions, the candidate may apply for Commission funding with the Secretary of State's Office no later than August 26, 2004.



Procedure to Apply for Funding

To apply for funding, the candidate must file the following items with the Secretary of State's Office: 1. "Participating Candidate's Application to Receive Funds and Qualifying Contributions Report" (Form available at the end of this Guide and on the Commission website). If the candidate is in a one-party-dominant district and chooses to reallocate his or her funding, the designated box should be marked on this form. (Please see Chapter 4 for more information on oneparty-dominant districts). 2. Printed list of $5 qualifying contributors. 3. Original qualifying contribution slips. 4. A check from the candidate's campaign account for the total amount of the $5 qualifying contributions being submitted, made payable to the "Clean Elections Fund." 5. A campaign finance report, filed electronically, reporting all $5 qualifying contributions being submitted.



Important Note:



Submitting $5 Qualifying Contributions Once the $5 qualifying contributions have been remitted to the Clean Elections Fund, the qualifying contributions will not be returned to the candidate for any reason.



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Chapter 3: Qualifying for Funding



IV. Verifying the $5 Qualifying Contributions

Random Sample

After the candidate applies for funding, the Secretary of State's Office selects a random sample of 5% of the qualifying contributions forms. The Secretary of State's Office then sends the random sample to the county recorder of the county of the addresses specified on the selected forms.



Verification

The county recorder then verifies the selected forms within 10 days of receiving the random sample. The county recorder will provide a report to the Secretary of State's Office identifying as disqualified any forms that are:    Unsigned by the contributor; Undated; or Signed by a person who is not registered to vote inside the electoral district of the office the candidate is seeking on the date specified on the slip.



Result of Random Sample

The Secretary of State's Office shall multiply the number of forms not disqualified by twenty, and if the result is greater than 110% of the minimum number required, the candidate will be approved for funding. However, if the result is less than 90% of the minimum number required, the candidate will be denied funding.



SAMPLING PROCEDURE EXAMPLE

Assumption: 1 candidate for a Legislative seat submits 252 qualifying contributions Secretary of State takes 5% sample of 252, which is 13 If 12 are valid, 12 x 20 is 240, 240/210 is 114% Funding Granted! If 10 are valid, 10 x 20 is 200, 200/210 is 95% All 252 qualifying contribution slips must be verified. If 8 are valid, 8 x 20 is 160, 160/210 is 76% Funding Denied!



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Chapter 3: Qualifying for Funding Number of Times a Candidate May Apply for Funding

After the county recorder has verified the random sample of the candidate's qualifying contribution forms, the candidate is approved for funding if the candidate has the minimum number of qualifying contributions required. If the results of the random sample fall between 90% and 110% of the required amount of valid $5 qualifying contributions, the county recorder must check all qualifying contribution forms. If there is an insufficient number of valid forms, the candidate may make only one supplemental filing of additional $5 qualifying contributions to the Secretary of State's Office if:     The result from the original random sample is from 90% to 110% of the forms needed to qualify for funding; The candidate files at least the minimum number of additional forms needed to qualify for funding; The additional forms are not duplicates from individuals who have previously contributed to that candidate; and The period for filing qualifying contribution forms has not expired.



Failure to Qualify for Funding

A candidate will fail to qualify for funding if the result of the random sample of originally submitted qualifying contribution forms is less than 90% of the minimum number required. The candidate may NOT submit additional forms to make up the difference. The candidate must start the process of collecting the qualifying contributions all over again.



Important Note:



Failure to Qualify for Funding If a candidate fails to qualify for funding, the candidate is still considered to be a participating candidate. In order to raise funds as a nonparticipating candidate, the candidate must send a letter to the Commission requesting de-certification. Otherwise, the candidate is still bound by the contribution and spending limits agreed to by a participating candidate.



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Chapter 3: Qualifying for Funding



Summary

Legislative candidates are required to raise a minimum of 210 qualifying contributions and Corporation Commission candidates are required to raise a minimum of 1,575 qualifying contributions. Qualifying contributions must be $5 exactly and must be from individuals. Qualifying contributions may be solicited or may be unsolicited. If in doubt, remember that the candidate is always the ultimate solicitor. When a candidate is ready to apply for funding, the candidate must submit to the Secretary of State: The "Participating Candidate's Application to Receive Funds" A printed list of the $5 qualifying contributors. All of the original qualifying contribution forms. A check from the candidate's campaign account for the total amount of $5 qualifying contributions being submitted, made payable to "Clean Elections Fund." A campaign finance report, filed electronically, reporting all $5 qualifying contributions being submitted to the Secretary of State. The Secretary of State will select a random sample of the qualifying contributions and send them to the appropriate county recorder. The county recorder will check the validity of the qualifying contributions and notify the Secretary of State of the results.



References

Qualifying contributions  A.R.S.  16-946 Certification for funding  A.R.S.  16-950  A.A.C. R2-20-105 Second chance to apply for funding  A.A.C. R2-20-105(G)



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Chapter 4: Primary Election Funding

Chapter 4 explains the process of how participating candidates receive initial primary election funding and matching funding from the Commission.



DATES OF PRIMARY ELECTION PERIOD Legislative Offices: July 6, 2004  September 7, 2004 Statewide Offices: July 6, 2004  September 7, 2004



I. Primary Election Spending Limit

Once a candidate qualifies to receive clean elections funding, the Commission shall provide the candidate with funding equal to the original primary election spending limit. Participating candidates are also eligible to receive matching funds if their nonparticipating opponents in the same party primary exceed the spending limits. Participating candidates must return to the Commission any unspent monies at the end of the primary election period and may NOT carry excess primary election funding over to the general election period. The table below details the funding that qualified participating candidates will be provided with when they qualify to receive funding.



PRIMARY ELECTION COMMISSION FUNDING FOR PARTICIPATING CANDIDATES Legislature Corporation Commission Party Candidate $11,320 Party Candidate $45,280 Independent $19,810 Independent $79,240 $5 qualifying $5 qualifying Unopposed contributions Unopposed contributions One-Party One-Party Dominant District $16,980 Dominant District N/A



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Chapter 4: Primary Election Funding Funding for Unopposed Candidates

A candidate is unopposed if he or she meets ALL of the following criteria: 1. Unopposed in his or her primary; 2. Unopposed in the primary of any other party; AND 3. Unopposed by any opposing independent candidate. An unopposed participating candidate will NOT receive full funding from the Commission. An unopposed participating candidate will receive $5 times the number of qualifying contributions that the candidate submitted to the Secretary of State. Also, an unopposed candidate is NOT eligible to receive matching funds. Determining Whether a Participating Candidate is Unopposed:  For the House of Representatives, a candidate is opposed if there are at least two other candidates from the same party, or if there will be at least two other candidates for the same office in the general election by an independent or a candidate from another party. For statewide office and Senate, a candidate is opposed if there is least one other candidate from the same party, or if there will be at least one other candidate for the same office in the general election by an independent or a candidate from another party.







One-Party-Dominant Legislative District

A candidate who is a member of the dominant party in a one-party-dominant district may choose to reallocate a portion of funds from the general election period to the primary election period. This allows the candidate to be more competitive in the primary election. A one-party-dominant district is a legislative 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 10% of the total number of voters registered in the district. One-party-dominant legislative districts are determined by the Commission at the beginning of the qualifying period, which is January 1 of an election year. A candidate who chooses the reallocation option must so designate in the appropriate section of the Participating Candidate's Application to Receive Funds and Qualifying Contributions Report, which is submitted to the Secretary of State's Office along with the $5 qualifying contributions. The Commission will disburse the following amounts: ONE-PARTY-DOMINANT DISTRICT FUNDING Primary election $16,980 General election $11,320 Citizens Clean Elections Commission 2003-2004 Participating Candidate Guide



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Chapter 4: Primary Election Funding Independent Candidates

When an independent participating candidate qualifies for funding, the candidate receives 70% of the sum of the original primary election spending limit and the original general election spending limit. An independent candidate is a candidate who:   Has properly filed nominating papers and nominating petitions with signatures, and Is registered as an independent or with no party preference or who is registered with a political party that is not qualified for representation on the ballot.



The funding, set forth in the chart below, is received as soon as the candidate is approved to receive funding, and is available for the candidate to spend in both the primary and general election periods. The independent participating candidate is not required to return any unspent monies at the end of the primary election period. The independent participating candidate is not eligible to receive matching funds in the primary election period. INDEPENDENT CANDIDATE FUNDING Legislative $19,810 Corporation commission $79,240



II. Primary Election Period Matching Funding

Participating candidates may receive matching funding in the primary election period if their nonparticipating opponents make expenditures in excess of the primary election spending limit. Beginning July 6, 2004, the start of the primary election period, the Commission will immediately provide participating candidates with matching funds whenever expenditures made by a nonparticipating candidate in the same party primary exceed the primary election spending limit.



PRIMARY ELECTION PERIOD MATCHING FUNDS EXAMPLE

Assumption: 1 legislative seat, 2 candidates 1 participating, 1 nonparticipating $15,000 $11,320



Nonparticipating candidate spends Primary election spending limit



Matching funds provided



$3,680



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Chapter 4: Primary Election Funding Primary Election Period Matching Funds Limits

The chart below shows the initial primary funding, the maximum primary matching funding and the maximum primary total funding that is available to participating candidates in the primary election period. The total monies distributed to a candidate during the primary election period will not exceed three times the original primary election spending limit. PRIMARY ELECTION PERIOD Legislature One-Party-Dominant Independent Legislative Corporation Commission Independent Corporation Commission Candidates Exceptions: Candidates who have chosen the one-party-dominant reallocation option: Primary matching funds will start for a participating candidate who has chosen the reallocation option whenever a nonparticipating opponent exceeds the adjusted primary election spending limit of $16,980. Unopposed candidates: Unopposed candidates are not eligible to receive matching funds in the primary election period. Independent candidates: Independent candidates are not eligible to receive matching funds in the primary election period. INITIAL PRIMARY FUNDING $11,320 $16,980 $19,810 $45,280 $79,240 MAXIMUM MATCHING FUNDS $22,640 $33,960 N/A $90,560 N/A MAXIMUM TOTAL FUNDS $33,960 $50,940 $19,810 $135,840 $79,240



Independent Expenditures

Chapter 11 explains how a participating candidate may be eligible to receive matching funds when an independent expenditure advocates the election or defeat of a particular candidate.



Process of Providing Matching Funds

1. The Commission staff receives instant notification from the Secretary of State's Office whenever nonparticipating candidates file a campaign finance report. 2. The Commission staff calculates the amount of matching funds that are due to the participating candidate and notifies the candidate when funds will be available. 3. The matching fund checks are typically available on the next business day after Commission staff receives notification from the Secretary of State's Office. However, the Arizona Department of Administration (ADOA) processes the checks and the Commission has no control over ADOA timelines. Citizens Clean Elections Commission 2003-2004 Participating Candidate Guide



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Chapter 4: Primary Election Funding



III. Return of Unspent Monies

Within 5 days after the end of the primary election period, a participating candidate shall return to the Commission all monies in the candidate's campaign account above an amount sufficient to pay any unpaid bills for expenditures made during the primary election and for goods or services directed to the primary election. Participating candidates are NOT permitted to carry primary funding forward to the general election period.



Unpaid Bills

A participating candidate shall pay all uncontested and unpaid bills no later than 30 days after the primary election. If after 30 days, the bill is still contested, the candidate must inform the Commission, in writing, of the status of the bill. The candidate must continue to inform the Commission, in writing, every 30 days until the issue is resolved. Any monies in a candidate's campaign account after payment of bills shall be returned promptly to the Commission.



Bank Interest

After the primary election, participating candidates must send to the Commission any bank interest earned on campaign monies. Participating candidates are not permitted to spend bank interest on their campaigns.



Recap Campaign Finance Report

Participating candidates are required to file a recap campaign finance report after the primary election. The report shall include all campaign activity through September 7, 2004 and shall report unspent monies returned to the Commission. The recap campaign finance report for the primary election is due September 12, 2004.



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Chapter 4: Primary Election Funding



Summary

Once a participating candidate qualifies to receive funding, the Commission will provide the candidate with $11,320 if the candidate is running for legislative office or $45,280 if the candidate is running for corporation commission. These amounts are different if the candidate is independent, unopposed, or a member of the dominant party in a one-partydominant legislative district. Participating candidates may receive matching funds if nonparticipating opponents in the same party primary make expenditures in excess of the primary election spending limit. Participating candidates may receive a total of three times the original primary election spending limit from the Commission. Any monies not spent by the end of the primary election period shall be returned to the Commission. Participating candidates are not permitted to spend bank interest earned on campaign monies. Bank interest must be sent to the Commission at the end of the primary election period.



References

Funding for unopposed candidates  A.R.S.  16-951(A)(3) One-party dominant districts  A.R.S.  16-952(D) Independent candidates  A.R.S.  16-951(A)(2) & -953(A) Return of unspent monies  A.R.S.  16-953 Matching funds calculations  A.R.S.  16-952(A) & (E)  A.A.C. R2-20-113



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Chapter 5: General Election Funding

Chapter 5 explains the process of how successful participating candidates in the primary election receive a new allocation of funding at the beginning of the general election cycle. Participating candidates may also be eligible to receive matching funding during the general election cycle.



DATES OF GENERAL ELECTION PERIOD Legislative Offices: September 8, 2004  November 2, 2004 Statewide Offices: September 8, 2004  November 2, 2004



I. General Election Spending Limit

At the beginning of the general election period, the Commission shall provide to each participating candidate qualified for the general election ballot an amount equal to the original general election spending limit. Participating candidates are also eligible to receive matching funds if their nonparticipating opponents exceed the general election spending limits. The table below details the funding that qualified participating candidates will be provided with at the beginning of the general election period.

GENERAL ELECTION COMMISSION FUNDING FOR PARTICIPATING CANDIDATES



Legislature Party Candidate $16,980 Independent N/A $5 qualifying Unopposed contributions One-Party Dominant District $11,320



Corporation Commission Party Candidate $67,920 Independent N/A $5 qualifying Unopposed contributions One-Party Dominant District N/A



Funding for Unopposed Candidates

A qualified participating candidate who is unopposed in the general election will receive an amount equal to $5 times the number of valid qualifying contributions submitted by the candidate to the Secretary of State. The unopposed candidate is not eligible to receive matching funds. If a candidate is unopposed in both the primary election and the general election, and receives the amount equal to $5 times the number of qualifying contributions in the primary election, the candidate will NOT receive any additional funding for the general election. Citizens Clean Elections Commission 2003-2004 Participating Candidate Guide



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Chapter 5: General Election Funding

If a candidate is opposed in the primary election and unopposed in the general election, the candidate will receive the original spending limit for the primary election, and an amount equal to $5 times the number of valid qualifying contributions submitted by the candidate for the general election. Determining Whether a Participating Candidate is Unopposed:   General election for the House of Representatives: Opposed means that there are at least two opponents on the ballot competing for election in the same district. General election for statewide offices and Senate seats: Opposed means that there is at least one opponent on the ballot competing for election in the same district.



One-Party-Dominant District

A candidate who is a member of the dominant party in a one-party- dominant district may choose to reallocate a portion of funds from the general election period to the primary election period. This allows the candidate to be more competitive in the primary election. A one-party-dominant 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 10% of the total number of voters registered in the district. One-party-dominant legislative districts are determined by the Commission at the beginning of the qualifying period, which is January 1 of an election year. A candidate who chooses the reallocation option must so designate in the appropriate section of the Participating Candidate's Application to Receive Funds and Qualifying Contributions Report, which is submitted to the Secretary of State's Office along with the $5 qualifying contributions. The Commission will disburse the following amounts: ONE-PARTY-DOMINANT DISTRICT FUNDING Primary election $16,980 General election $11,320



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Chapter 5: General Election Funding Independent Candidates

When an independent participating candidate qualifies for funding, the candidate receives 70% of the sum of the original primary election spending limit and the original general election spending limit. An independent candidate is a candidate who:   Has properly filed nominating papers and nominating petitions with signatures, and Is registered as an independent or with no party preference or who is registered with a political party that is not qualified for representation on the ballot.



The funding, set forth in the chart below, is received as soon as the candidate is approved to receive funding, and is available for the candidate to spend in both the primary and general election periods. The independent participating candidate is not required to return any unspent monies at the end of the primary election period and will not receive a new allocation of Commission funding at the start of the general election period. The independent participating candidate, however, is eligible to receive matching funding in the general election period. INDEPENDENT CANDIDATE FUNDING Legislative $19,810 Corporation Commission $79,240



Commission Disbursement Procedure for General Election Funds

1. Within 7 days after a primary election and before the Secretary of State completes the canvass, the Commission shall disburse funds for general election campaigns to the participating candidates who received the greatest number of votes at each primary election, provided that the candidate with the highest number of votes out of the total number of votes, has at least 2% points greater than the candidate with the next highest votes based on the unofficial results as of that date. In a legislative race for the Arizona House of Representatives, the Commission shall disburse funds for general election campaigns to participating candidates with the highest or second highest number of votes cast, provided such candidate received votes totaling at least 2% points, of the total ballots cast, greater than the total vote cast for the candidate with the 3rd highest vote total. 2. Promptly after the Secretary of State completes the canvass, the Commission shall disburse funds for general election campaigns to all eligible participating candidates to whom payment has not yet been made. If a participating candidate has received funds from the Commission pursuant to the previous paragraph and the canvass or recount determines that the candidate is not eligible to appear on the general election ballot, the participating candidate shall return all unused funds to the Fund within 10 days after such determination is made. That candidate shall make no promissory payments from the general election funding from the date of the canvass.



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Chapter 5: General Election Funding



II. General Election Period Matching Funding

Participating candidates may receive matching funding in the general election period if their nonparticipating opponents receive contributions, minus expenditures made through the primary election, in excess of the general election spending limit.



GENERAL ELECTION PERIOD MATCHING FUNDS EXAMPLE

Assumption: 1 legislative seat, 2 candidates 1 participating, 1 nonparticipating



Nonparticipating candidate's total contributions Nonparticipating candidate's primary election expenditures Difference General Election Spending Limit



Matching funds provided



$40,000 $20,000 $20,000 $16,980



$3,020



General Election Period Matching Funds Limits

The chart below shows the initial general election funding, the maximum general matching funding and the maximum general total funding. The total monies distributed to a candidate, during the general election period, will not exceed three times the original general election spending limit.

INITIAL GENERAL ELECTION FUNDING



GENERAL ELECTION PERIOD Legislature One-Party-Dominant Independent Legislative Candidates Corporation Commission Independent Corporation Commission Candidates Exceptions:



MAXIMUM MATCHING FUNDS



MAXIMUM TOTAL FUNDS



$16,980 $11,320 N/A $67,920 N/A



$33,960 $22,640 $33,960 $135,840 $135,840



$50,940 $33,960 $53,770 $203,760 $215,080



Candidates who have chosen the one-party-dominant reallocation option: General election matching funds will start for a participating candidate who has chosen the Citizens Clean Elections Commission 2003-2004 Participating Candidate Guide



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Chapter 5: General Election Funding

reallocation option whenever a nonparticipating opponent exceeds the adjusted general election spending limit of $11,320. Unopposed participating candidates: Unopposed candidates are not eligible to receive matching funds in the general election period. Unopposed nonparticipating candidates in primary election: Expenditures made during the primary election period by or on behalf of an independent candidate or a nonparticipating candidate who was unopposed in a party primary, shall be treated as though made during the general election period. Therefore, the matching funds calculations will not include any expenditures made by nonparticipating candidates during the primary election period.



Process of Providing Matching Funds

1. The Commission staff receives instant notification from the Secretary of State's Office whenever nonparticipating candidates file a campaign finance report. 2. The Commission staff calculates the amount of matching funds that are due to the participating candidate and notifies the candidate when funds will be available. 3. The matching fund checks are typically available on the next business day after Commission staff receives notification from the Secretary of State's Office. However, the Arizona Department of Administration (ADOA) processes the checks and the Commission has no control over ADOA timelines.



Transfer of Funds and Impact on Matching Funds

A nonparticipating candidate's transfer of surplus funds from a previous election cycle to an account to be used in the present election will be considered a contribution, and will be included in the calculation of matching funds for the general election.




III. Return of Unspent Monies

At the end of the general election period, a participating candidate shall return to the Commission all monies in the candidate's campaign account above an amount sufficient to pay any unpaid bills for expenditures made during the general election and for goods or services directed to the general election.



Unpaid Bills

A participating candidate shall pay all uncontested and unpaid bills no later than 30 days after the general election. If after 30 days, the bill is still contested, the candidate must inform the Commission, in writing, of the status of the bill. The candidate must continue to inform the Commission, in writing, every 30 days until the issue is resolved. Any monies in a candidate's campaign account after payment of bills shall be returned promptly to the Commission. Citizens Clean Elections Commission 2003-2004 Participating Candidate Guide



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Chapter 5: General Election Funding Bank Interest

After the general election, participating candidates must send to the Commission any bank interest earned on campaign monies. Participating candidates are not permitted to spend bank interest on their campaigns.



Recap Campaign Finance Report

Participating candidates are required to file a recap campaign finance report after the general election. The report shall include all campaign activity through November 2, 2004 and shall report unspent monies returned to the Commission. The recap campaign finance report for the general election will be considered to have been filed when the Post-General campaign finance report is filed by December 2, 2004.



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Chapter 5: General Election Funding



Summary

Immediately following the primary election, the Commission shall disburse general election funding to participating candidates who were successful in the primary election. The Commission will provide $16,980 to legislative candidates and $67,920 to corporation commission candidates. These amounts are different if the candidate is independent, unopposed, or the member of the dominant party in a one-party-dominant legislative district. Participating candidates may receive matching funds if their opponent receives contributions, minus expenditures made in the primary election period, in excess of the general election spending limit. Participating candidates may receive a total of three times the original general election spending limit from the Commission. Any monies not spent by the end of the general election period shall be returned to the Commission. Participating candidates are not permitted to spend bank interest earned on campaign monies. Bank interest must be sent to the Commission at the end of the general election period.



References

Funding for unopposed candidates  A.R.S.  16-951(D) One-party-dominant districts  A.R.S.  16-952(D) Independent candidates  A.R.S.  16-951(A)(2) & -953(A) Return of unspent monies  A.R.S.  16-953 Matching funds calculations  A.R.S.  16-952(B) & (E)  A.A.C. R2-20-113



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Chapter 6: Use of Campaign Monies

Chapter 6 guides participating candidates through the laws regarding permissible expenditures. Participating candidates may use campaign monies for direct campaign purposes only.



I. Direct Campaign Purposes

A participating candidate shall use funds in the candidate's current campaign account to pay for goods and services for direct campaign purposes only. The laws regarding use of funds pertain to Commission funding, personal monies and individual contributions. Participating candidates have the burden of proving that expenditures were made for direct campaign purposes. If the Commission determines that an expenditure was not made for direct campaign purposes, the Commission may order the candidate to repay the Commission with personal monies. When making an expenditure, the candidate shall first determine if the expenditure is a direct campaign expenditure that shall be reported. If so, the candidate shall then determine if the expenditure complies with the laws governing the use of Commission funding.



II. Prohibited Use of Campaign Monies

The Commission has adopted rules to give specific guidance regarding what participating candidates may NOT spend their campaign monies on. Monies in a participating candidate's campaign account shall NOT be used: 1. For costs of legal defense in any campaign law enforcement proceeding. 2. For food and beverages for staff and volunteers exceeding of $7.00 for breakfast, $7.50 for lunch, and $15.00 for dinner. 3. For personal use, which includes:  Household food items or supplies;  Clothing, other than items of de minimus value that are used in the campaign, such as campaign "T-shirts" or caps with campaign slogans;  Tuition payments, other than those associated with training campaign staff; Citizens Clean Elections Commission 2003-2004 Participating Candidate Guide



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Chapter 6: Use of Campaign Monies

 Mortgage, loan, rent, lease or utility payments: o For any part of any personal residence of the candidate or a member of the candidate's family; or o For real or personal property that is owned or leased by the candidate or a member of the candidate's family and used for campaign purposes, to the extent the payments exceed the fair market value of the property usage; Admission to a sporting event, concert, theater, or other form of entertainment, unless part of a specific campaign activity; Dues, fees or gratuities at a country club, health club, recreational facility or other nonpolitical organization, unless they are part of the costs of a specific fundraising event that takes place on the organization's premises; and Gifts or donations.



  



4. Fixed assets with a value in excess of $600. A fixed asset is defined as tangible property usable in a capacity that will benefit the candidate for a period of more than one year from the date of acquisition.



III. Use of Assets from a Prior Election

A participating candidate may use assets such as signs, pamphlets, and office equipment from a prior election cycle only after the candidate's current campaign acquires the assets for an amount equal to the fair market value of the assets. The Commission defines "fair market value" as the amount at which property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of the relevant facts. If the candidate was a participating candidate during the prior election cycle, the payment for the assets shall be made to the Commission. If the candidate was a nonparticipating candidate during the prior election cycle, the payment shall be made to the prior campaign. If the prior campaign account of a nonparticipating candidate is closed, the payment shall be made to the candidate.



IV. Travel Expenses

Travel expenses incurred by the candidate in the course of campaigning are considered to be direct campaign expenses that must be paid for with campaign funds and must be reported. Participating candidates, therefore, need to keep careful track of their travel expenses. Travel expenses include mileage or gasoline, hotels, etc. While the candidate is required to use campaign funds to pay for travel expenses, campaign staff and volunteers may choose to pay their own travel expenses and not be reimbursed. If a staff member or volunteer chooses to pay for his or her own travel expenses, it will NOT be considered to be a contribution to the candidate. A campaign, however, is not precluded from paying for a staff member's travel expenses that are directly campaign related. Citizens Clean Elections Commission 2003-2004 Participating Candidate Guide



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Chapter 6: Use of Campaign Monies Using a Personal Vehicle

When using a personal vehicle, the candidate shall reimburse himself or herself for mileage or for gas used. The candidate may choose his or her own mileage reimbursement rate, however, it shall be no less than 10 per mile and no more than 34.5 per mile. For a trip that includes both campaign related and non-campaign related stops, only the portion of the cost of the trip that is allocable to campaign activity shall be considered to be a direct campaign expense.



Use of a Privately-Owned Airplane

When a candidate uses an airplane that is owned or leased by the candidate or another person, the candidate shall use campaign monies to reimburse the owner or leaseholder for the value of the travel and the expenditure shall be reportable. If the travel is to a city served by regularly scheduled commercial service, the owner or leaseholder shall be reimbursed at the lowest non-discounted coach airfare. If the travel is to a city not served by regularly scheduled commercial service, the owner or leaseholder shall be reimbursed at a standard charter rate. The Commission can provide these rates to anyone interested.



V. Food and Beverages Expenses

Participating candidates may use campaign monies to pay for food and beverages if the expenditure is directly related to the campaign, such as refreshments provided at a fundraiser. Any payment for food and beverages made by a person for the purpose of influencing an election shall be reported as a campaign expenditure. Participating candidates are limited to making food expenditures of $7.00 per person for breakfast, $7.50 per person for lunch, and $15.00 per person for dinner. Participating candidates have the burden of proving that the food expenditure limits have been adhered to. The Commission recommends that the treasurer maintain documentation of each food expenditure and the number of people who ate.



FOOD EXPENDITURES EXAMPLES

One afternoon, campaign volunteers and staff are stuffing envelopes and the candidate wants to buy them pizza and drinks. The campaign may spend up to $7.50 per person on food and drinks. If there are 20 volunteers, the campaign, therefore, may spend up to a total of $150. A candidate wants to have a $5 qualifying contribution fundraising party. If the gathering is held in the evening, the campaign may spend up to $15.00 per person in attendance for refreshments. If the attendees wish to bring their own food, anything they bring is considered to be an in-kind contribution to the campaign and must be reported. If the event is held at someone's home, each adult living in the home may provide up to $100 each in food and beverages without it being considered a contribution to the candidate.



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Chapter 6: Use of Campaign Monies



Summary

Participating candidates are permitted to use campaign funding for direct campaign purposes only. Participating candidates have the burden of proving that expenditures are for a direct campaign purpose. If the Commission finds that an expenditure was not for a direct campaign purpose, the Commission can order the candidate to repay the Commission. Participating candidates are required to use campaign funding for all direct campaign related travel. Volunteers may choose to not be reimbursed for travel related expenses. Participating candidates are limited to spending $7.00 per person for breakfast, $7.50 per person for lunch and $15.00 per person for dinner.



References

Use of funds  A.A.C. R2-20-702 Use of assets from a prior election  A.A.C. R2-20-702.01 Repayment to the Commission  A.A.C. R2-20-704 & -705 Campaign travel and food expenditure guidelines  Commission Substantive Policy Statements 11, 12 & 13  A.R.S.  16-901(5)(b)(iv)  A.A.C. R2-20-702 Volunteers may volunteer their time, services and travel expenses  A.R.S.  16-901(5)(b)(i) & (iv) A person hosting an event in their home may provide up to $100 in food and beverages A.R.S.  16-901(5)(b)(iii)



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Chapter 7: Campaign Contributions

Participating candidates may accept a limited amount of personal contributions and individual contributions during the exploratory and qualifying periods, in addition to receiving Commission funding. "Contribution" means any gift, subscription, loan, advance or deposit of money or anything of value made for the purpose of influencing an election.



I. Definition of Contribution

"Contribution" means any gift, subscription, loan, advance or deposit of money or anything of value made for the purpose of influencing an election.



Contribution Includes the Following:

   A contribution made to retire campaign debt. Money or the fair market value of anything directly or indirectly given or loaned to an elected official for the purposes of defraying the expense of communications with constituents, regardless of whether the elected official has declared his or her candidacy. 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. However, it is not considered to be a contribution if the actual cost of the meal or fund-raising 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. The exception does not apply to auction items. 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.







Contribution Does NOT Include the Following:

1. Personal Services & Travel Expenses  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.  Any reimbursed payment for personal travel expenses made by an individual who, on his or her own behalf, volunteers his or her personal services to a candidate.  Legal or accounting services provided to a candidate at no cost. This exemption only applies if the only person paying for the services is the regular employer of the person rendering the services and if services are solely for the purpose of compliance with this title. Citizens Clean Elections Commission 2003-2004 Participating Candidate Guide



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Chapter 7: Campaign Contributions

2. Duties of Elected Officials  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 or her 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 or her office. 3. Property, Food & Beverages  An individual may use personal property, including their home, a church or community room used on a regular basis by members of a community for noncommercial purposes, in the course of volunteering for a candidate. For candidate-related activities, each adult in the household may spend up to $100 for invitations, food and beverages only, which does not count as a contribution to the candidate. Any amount over $100, or for any other purpose, will need to be reported as a contribution from the individual and is subject to individual contribution limits, or the campaign will have to pay as a campaign expenditure. 4. Political Party Activities  Slate cards and sample ballots: The payment by a political party for printing and postage expenses for slate cards, sample ballots, and other written materials that substantially promote three or more nominees of the party for public office. This exemption does not apply if costs are for a display of the listing of candidates made on telecommunications systems or in newspapers, magazines or similar types of general circulation advertising.  Campaign Materials: The political parties purchase of campaign materials including pins, bumper stickers, handbills, brochures, posters, party tabloids and yard signs, which will be used by the party in connection with volunteer activities on behalf of any nominee of the party. This exemption does not apply if payments are used 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. 5. Independent Expenditures  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, and that is made without cooperation or consultation with any candidate, candidate committee or candidate agent. See Chapter 11 for more information on independent expenditures. 6. Bank  Monies loaned by a state bank, a federally chartered depository institution or a depository institution. 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 Citizens Clean Elections Commission 2003-2004 Participating Candidate Guide



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Chapter 7: Campaign Contributions

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.  Interest or dividends earned by a political committee on any bank accounts, deposits or other investments of the political committee. Participating candidates may NOT spend these monies. Participating candidates must send this money to the Commission at the end of the primary election period and at the end of the general election period.



7. Transfer for Joint Fundraiser  A transfer between campaigns to distribute monies raised through a joint fundraising effort in which each candidate pays a proportionate share of the fundraising expenses and receives a proportionate share of the funds that are raised. 8. Vendor Extension of Credit  An extension of credit for goods and services made in the ordinary course of the vendor's business. This applies only if the vendor provides similar terms of credit to other nonpolitical customers and makes a reasonable attempt to collect the debt. If the candidate does not pay the debt after 6 months, it shall be deemed receipt of a contribution by the candidate, but not a contribution by the creditor. If a candidate receives an extension of credit, it shall be considered to be outstanding debt and it shall be included in campaign finance reports filed by the candidate with the Secretary of State. 9. Officeholder expenditures  See Chapter 12 for more information on the officeholder expenses rule.



II. Types of Contributions

Early Contributions

Participating candidates may raise a limited number of private contributions, which are called early contributions. Early contributions are also commonly referred to as "seed money" and "individual contributions." Early contributions may be raised and spent only during the exploratory period and the qualifying period. Any early contributions not spent by the end of the qualifying period shall be sent to the Commission. A participating candidate may accept early contributions to make campaign expenditures. Early contributions may only be collected from individuals, not political committees or businesses. Candidates may receive contributions from individual U.S. citizens in the form of check, cash or credit card. The contributor does not need to be a resident of Arizona and does not need to be registered to vote. Citizens Clean Elections Commission 2003-2004 Participating Candidate Guide



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Chapter 7: Campaign Contributions

As illustrated in the chart below, a participating candidate may accept early contributions up to, but not exceeding, $110 per individual during an election cycle. The maximum amount a candidate may accept from all early contributors combined (during any one election cycle) shall not exceed $2,830 for a candidate for Legislature and $11,320 for a candidate for Corporation Commission.

INDIVIDUAL EARLY CONTRIBUTION LIMIT AGGREGATE EARLY CONTRIBUTION LIMIT



OFFICE Legislature Corporation Commission



$110 $110



$2,830 $11,320



Deadline for Raising and Spending Early Contributions Participating candidates may start raising and spending early contributions November 6, 2002. Participating candidates are not permitted to raise or spend early contributions after the end of the qualifying period (August 19, 2004). Any early contributions not spent by August 19, 2004 shall be sent by the candidate to the Commission.



Personal Money and Family Contributions

A participating candidate may spend a limited amount of the candidate's personal money prior to the end of the qualifying period, August 19, 2004. The personal money limits are as follows:



OFFICE Legislature Corporation Commission



PERSONAL MONEY LIMITS $550 $1,100



It is important to understand that monies given to a candidate from certain family members count toward the candidate's personal money limit. Family contributions are considered personal monies and should be added to the personal monies total. A family member includes:      Parent Grandparent Spouse Child or sibling of the candidate Parent or spouse of any of those persons mentioned above



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Chapter 7: Campaign Contributions

Therefore, if one of the aforementioned family members wants to give a contribution to a candidate's campaign, the contribution will count towards the $550 personal contribution limit. FAMILY CONTRIBUTION EXAMPLE The candidate's father and brother each contribute $110 to the campaign, for a total of $220. The candidate, therefore, may only contribute an additional $330 of his or her own monies to his or her campaign ($550-$220=$330).



Deadline for Raising and Spending Personal Monies Participating candidates are not permitted to raise or spend personal monies after the end of the qualifying period, August 19, 2004. Any personal monies not spent by August 19, 2004 shall be returned to the candidate, or the candidate's family member.



Political Committee Contributions

A participating candidate may NOT accept contributions from political committees.



In-Kind Contributions

An in-kind contribution is a contribution of goods or services or anything of value that is not a monetary contribution. Participating candidates may accept in-kind contributions only from individual contributors and limited to $110 in value. An individual may give a participating candidate an in-kind contribution and a monetary contribution, however the combined total contributed to the candidate may not exceed $110. The candidate may also give in-kind contributions to his campaign provided that they, combined with any personal monies contributed by the candidate, do not exceed $550. In-kind contributions must be assessed at a fair value and must be included in campaign finance reports filed by the candidate with the Secretary of State. IN-KIND CONTRIBUTION EXAMPLE A candidate has 4 boxes of printer paper lying around her home that she would like to use for her campaign. This would be considered an in-kind contribution by the candidate to her campaign. The in-kind contribution is permissible as long as the candidate has not already reached her personal money contribution limit of $550. The candidate needs to asses a fair market value for the paper and she decides on $25 per box. The candidate, therefore, needs to include in the next campaign finance report that she has made an in-kind contribution of $100 to her campaign and she needs to include a description of what the in-kind contribution was (example: 4 boxes of printer paper). Citizens Clean Elections Commission 2003-2004 Participating Candidate Guide



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Chapter 7: Campaign Contributions Loans

A loan is a contribution. The early contribution limits apply to loans. Therefore, an individual may loan a participating candidate up to $110. That person can make no additional contributions to the campaign until the loan has been repaid. A loan in excess of the contribution limits is illegal whether or not it is repaid. A participating candidate may choose to designate the personal monies that he or she has contributed to his or her campaign as a loan. If the loan is to be repaid, the loan shall be repaid promptly upon receipt of Commission funding. Important Note:



Contribution Prohibitions A lobbyist may not give a contribution to a legislator or the Governor when the legislature is in regular session. In addition, lobbyists may not solicit contributions on behalf of a legislator or the Governor when the legislature is in regular session.



III. Contributions Reported in a Campaign Finance Report

A campaign finance report must include all contributions accepted by the committee through the end of the reporting period. It is the candidate and the treasurer's responsibility to ensure that all contributions are entered in the campaign finance software. Entering campaign contributions into the software on a daily basis is a crucial component of complying with campaign finance laws. It is the treasurer's responsibility to communicate to staff the importance of turning in receipts so that the campaign can remain in compliance with the campaign finance law. Each contribution reported in a campaign finance report shall include the name, address and occupation of the contributor. Contributions of $25 or less may be aggregated. The campaign finance software provides separate sections for the user to enter those contributions less than and those greater than $25. The campaign finance software provides a separate section for the user to enter $5 qualifying contributions. The $5 qualifying contributions do not need to be reported until such time that the candidate applies for funding and submits the $5 qualifying contributions to the Secretary of State for verification. At the time the candidate submits the $5 qualifying contributions for verification, the candidate must file a campaign finance report, electronically, to report all $5 qualifying contributions being submitted. Citizens Clean Elections Commission 2003-2004 Participating Candidate Guide



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Chapter 7: Campaign Contributions



IV. Remedying an Excessive Contribution

If a candidate receives an early contribution that exceeds the contribution limits, the candidate must refund the excessive contribution to the contributor. The candidate must enter the original amount received and the refunded amount in the campaign finance software. The software contains a designated section to key in refunded contributions. If a candidate receives a $5 qualifying contribution that the candidate does not want to submit to the SOS for verification, or if the $5 qualifying contribution is received after the candidate applies for funding, the candidate has three options to dispose of the monies: 1. The candidate may return the $5 to the contributor. 2. The candidate may ask the contributor's permission to keep the $5 as an early contribution, provided that the contributor has not already reached the $110 early contribution limit. 3. The candidate may send the $5 to the Commission. The Commission will then deposit the $5 into the Fund. After a disposal has been made, the candidate would simply delete the unused qualifying contributions from the list of qualifying contributions in the software. The candidate is not required to report $5 qualifying contributions that have been refunded.



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Chapter 7: Campaign Contributions



Summary

Participating candidates may raise and spend early contributions from individuals only. Individuals may contribute up to $110 in monetary and in-kind contributions to a participating candidate. Participating candidates may provide a limited amount of personal monies to their own campaign. Legislative candidates may contribute up to $550 in monetary and in-kind personal contributions. Corporation Commission candidates may contribute up to $1,100 in monetary and in-kind personal contributions. Candidates can choose to designate personal money contributions as loans that shall be repaid upon receiving Commission funding. Contributions given to a candidate by certain family members count towards the candidate's personal monies contribution limit. An in-kind contribution is a contribution of goods or services or anything of value that is not a monetary contribution.



References

Definition of contribution  A.R.S.  16-901(5) Definition of early contribution  A.R.S.  16-945(A)(1-2) Participating candidates may not accept contributions other than early contributions, personal contributions and $5 qualifying contributions  A.R.S.  16-941(A)(1) Personal contributions include contributions from certain family members  A.R.S.  16-901(10) & -901(18)(d) Definition of in-kind contribution  A.R.S.  16-901(15) Campaign loans  A.R.S.  16-901(5)(a)(ii)  A.A.C. R2-20-104(E) Contents of campaign finance reports  A.R.S.  16-915 Citizens Clean Elections Commission 2003-2004 Participating Candidate Guide



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Chapter 8: Campaign Expenditures

A campaign expenditure is incurred when a committee makes a direct payment to a vendor or incurs debt. A campaign finance report must include all expenditures made by the committee through the end of the reporting period.



I. Definition of Expenditure

An "expenditure" is 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. The definition of expenditure includes 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 the Following:

 A news story, commentary or editorial distributed through any telecommunications system, newspaper, magazine or other periodical publication. This exemption does not apply if the publications' facilities are owned or controlled by a political committee, political party or candidate. Nonpartisan activity designed to encourage individuals to vote or to register to vote. 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 elective office. This exemption does not apply if the display of candidates is made on any telecommunications system or in newspapers, magazines or similar types of general public political advertising. The political parties' purchase of campaign materials including pins, bumper stickers, handbills, brochures, posters, party tabloids and yard signs, which will be used by the party in connection with volunteer activities on behalf of any nominee of the party. This exemption does not apply if payments are used 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. 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.



 











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Chapter 8: Campaign Expenditures



II. Expenditures Reported in a Campaign Finance Report

A campaign finance report must include all expenditures made by the committee through the end of the reporting period. It is the candidate's responsibility to ensure that all expenditures are entered in the campaign finance software. Entering campaign expenditures into the software on a daily basis is a crucial component of complying with campaign finance law. It is the candidate's responsibility to communicate to staff the importance of turning in receipts so that the campaign can remain in compliance with the campaign finance law. Each expenditure reported in a campaign finance report shall include a description of the goods and services that were purchased. The campaign finance software provides a space for the user to enter a description for each expenditure.



Reporting Debt

The definition of "expenditure" includes campaign debt and extensions of credit. Debt is incurred by a candidate when the promise, contract or agreement to make an expenditure occurs. For example, if a candidate places an order for campaign signs that is payable upon delivery, the moment the candidate places the order, the candidate has incurred a debt. The campaign finance software contains a specific section for outstanding debt to be entered. If the exact level of debt is unknown, it shall be estimated. Each campaign finance report must include an itemized account of the campaign debts and extensions of credit that are owed by the candidate and that remain outstanding. The campaign finance report must include the name and address of the obligee or creditor, the amount owed, whether the amount is certain or estimated and on what basis, and the purpose of the obligation. An obligation that is itemized on a campaign finance report shall be listed on all subsequent finance reports until extinguished. Debt and extensions of credit must be reported continuously until paid. *Exception: Regularly recurring administrative expenses such as rent, utilities and salaries are NOT considered to be debts until the payments are past due.



Important Note:



Incurring Debt Candidates may not make expenditures exceeding the amount of monies in their campaign account. Before receiving Commission funding, a participating candidate may not incur debt with the intention of paying it off after receiving Commission funding. If a participating candidate intends to make expenditures prior to receiving Commission funding, the candidate must raise early contributions and personal contributions.



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Chapter 8: Campaign Expenditures Using a Personal Credit Card



The candidate, treasurer or designated agent with authority to spend campaign funds shall pay monies directly from the campaign account to the person providing the goods or services. Therefore, the Commission recommends that personal credit cards not be used to make campaign expenditures. Expenditures should be made using campaign checks, debit cards or cash from a petty cash account. The treasurer shall instruct campaign workers on the need to arrange for advances for travel expenses or to request a campaign check to purchase goods or services for the campaign. If someone does use a personal credit card on behalf of a campaign, the expenditure is incurred immediately upon use, not when the bill is received. Until such time that the campaign reimburses the individual who used the credit card, the amount is considered to be an in-kind contribution. It is important to note that participating candidates may not exceed the early contribution limits of $110 per individual, which include the value of an in-kind contribution. When the person who used the credit card is reimbursed, the treasurer shall include on the campaign finance report the full name and street address of the person, and the nature of the goods and services for which payment has been made.



Petty Cash Accounts

A candidate's campaign committee may establish one or more petty cash accounts, which in aggregate may not exceed $1,100 at any time. No single expenditure shall be made from a petty cash account exceeding $110. On a campaign finance report, the treasurer shall identify the name and address of the person who withdrew the cash, the date, the amount of cash withdrawn, and a memo stating "petty cash." Expenditures made with petty cash do not need to be itemized on a campaign finance report; however, the treasurer shall maintain a detailed record of all expenditures that are made with petty cash. The Commission recommends that the treasurer keep a running total of all petty cash withdrawals and expenditures to ensure that the maximum of $1,100 is not inadvertently exceeded.



Refund & Repayment

If a candidate receives a refund from an expenditure (for example, the candidate returned merchandise to the store), the original expenditure and the refunded amount must be reported. The campaign software includes a specific section to report refunds. A loan repayment is NOT an expenditure. The campaign finance software contains a specific section to enter in loan repayments. A refund of a contribution is NOT an expenditure. The campaign finance software contains a specific section to enter in contribution refunds. Citizens Clean Elections Commission 2003-2004 Participating Candidate Guide



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Chapter 8: Campaign Expenditures



Important Notes:



Reporting Expenditures  Any outlay of cash, the writing of a personal check or the use of a credit card by a staff member or consultant for which the staff member or consultant will be reimbursed is considered to be an expenditure on the day the cash, check, or credit card is used, NOT when the person is reimbursed. If the campaign orders any service or good, and either knows the cost of that good or service, or can make a reasonable estimate of that service or good, the expenditure must be reported in the reporting period that includes the date that the campaign orders the service (for example, if a campaign knows the per copy cost of printing, and orders 100,000 copies, it must report the expenditure in the reporting period that includes the date it orders the copies--even if an invoice is received later). Recurring services such as telephone service, cell phone service, utility service, and rent, become reportable expenditures the date that the campaign (or consultant or staff, if a staff member or consultant will pay the bill and be reimbursed) receives the bill as long as the bill is sent using the same billing procedures for its other customers.











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Chapter 8: Campaign Expenditures



Summary

A campaign finance report filed by a candidate must include all expenditures made by the committee through the end of the reporting period. This includes any outstanding debt. Outstanding debt is incurred whenever a promise, contract or agreement to make an expenditure occurs. Participating candidates may not incur debt before receiving Commission funding. An expenditure made with a credit card is incurred immediately upon use, NOT when the bill is received. Participating candidates may have one or more petty cash accounts. The total sum in all petty cash accounts may not exceed $1,100 at any time. Expenditures made with petty cash may not exceed $110.



References

Definition of expenditure  A.R.S.  16-901(8) Contents of campaign finance reports  A.R.S.  16-915 Petty cash accounts  A.R.S.  16-948(C)



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Chapter 9: Voter Education

The Commission sponsors debates for candidates in both the primary and general election periods. Participating candidates are required to attend the debates. Nonparticipating candidates are also encouraged to participate in the debates. The Commission mails a candidate statement pamphlet to each household in Arizona with a registered voter. All candidates are given the opportunity to submit a statement and a photograph to be included in the pamphlets.



I. Debates

The Commission sponsors debates among candidates in both the primary election period and the general election period. Participating candidates are required to attend and participate in debates. The Commission also invites and encourages nonparticipating candidates to participate in debates. The Commission chooses sponsors and ensures the debates are carried out in a strictly nonpartisan and professional manner. The Commission will be considered a "co-sponsor" of the debates for advertising purposes; however, the "sponsoring organization" will make all debate arrangements, including dates, times, locations, media coverage, format and ground rules.



Required Participation

The candidate debates are MANDATORY for participating candidates in both the primary and general election periods. Nonparticipating candidates are invited and encouraged to participate in debates. Candidates invited to participate in the debates will be limited to those candidates who will appear on the primary or general election ballots. All candidates must appear in person, not by proxy or electronically, unless to accommodate a disability. One debate will be held in the primary election period and one debate will be held in the general election period, circumstances permitting.



Failure to Participate in Debate

All certified participating candidates are required to attend and participate in the debates sponsored by the Commission. Unless exempted, if a participating candidate fails to participate in any Commission-sponsored debate, the participating candidate is ineligible to receive any further matching funds for that election.



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Chapter 9: Voter Education Exemption from Participation in Debate

A participating candidate may request to be exempt from participating in a required debate by:   Submitting a written request to the Commission at least one week prior to the scheduled debate; and Stating the reasons and circumstances justifying the request for exemption.



After examining the request, the Commission will exempt a candidate from participating in a debate if at least three Commissioners determine that the circumstances are:    Beyond the control of the candidate; Of such nature that a reasonable person would find the failure to attend justifiable or excusable; or Of good cause, which includes illness or absence from the state at the time of the debate.



Request for Reconsideration

A participating candidate who fails to participate in a required debate, without a prior exemption from the Commission, may submit a request for reconsideration to the Commission. The candidate's request for reconsideration shall:   State the reason the candidate failed to participate in the debate; and Be submitted to the Commission no later than 5 business days after the date of the debate the candidate failed to attend.



After examining the request for reconsideration, the Commission will excuse a candidate from the penalties imposed if at least three Commissioners determine that the circumstances were:    Beyond the control of the candidate; Of such nature that a reasonable person would find the failure to attend justifiable or excusable; or Of good cause, which includes illness or absence from the state at the time of the debate.



Exceptions to Debate Participation

    No debate will be held if there is no participating candidate in the election for the particular office. No debate will be held if the election is uncontested. Write-in candidates for the primary election, independent candidates, and those candidates with no party affiliation will not be invited to participate in the primary election debate. Write-in candidates for the general election will not be invited to participate in the general election debate.



Citizens Clean Elections Commission 2003-2004 Participating Candidate Guide



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Chapter 9: Voter Education



II. Candidate Statement Pamphlets

The Commission will produce primary and general election candidate statement pamphlets for the 2004 elections. The Commission will produce and mail candidate statement pamphlets to every household in Arizona that has a registered voter before the start of early voting for both the primary and general elections. The candidate statement pamphlets are nonpartisan, comprehensive sources of information for Arizona voters. Participating and nonparticipating candidates may supply the Commission with a statement for inclusion in the pamphlets. All candidates who will appear on either the primary or general election ballot may submit a statement by the deadline. The pamphlets will include the office in which the candidate is running, as well as the candidate's name, party affiliation, funding source, web address and statement. Candidates will be allowed to submit separate statements for the primary and general election pamphlets.



Submission Deadlines

The Commission will not accept late submissions for inclusion in the pamphlets. Primary election statements and photographs shall be submitted no later than 5:00pm on June 9, 2004 for inclusion in the primary election pamphlet. General election statements and photographs shall be submitted no later than 5:00pm on July 27, 2004.



Statements

The 2004 pamphlets will include statements of 200 words in length. The Commission will allow candidates to submit separate statements for the primary and general election pamphlets. New statements will be accepted for the general election pamphlet. If a statement is not submitted for the primary election pamphlet, and a candidate wins the primary election, the candidate may submit a statement for the general election pamphlet. If a candidate submits a statement for the primary election pamphlet and does not submit a new statement for the general election pamphlet, the statement from the primary election pamphlet will be used for the general election pamphlet. The Commission will only accept statements electronically through the Commission's website. Statements that exceed the allotted 200 words will be NOT be accepted.



Photographs

The 2004 pamphlets will include photographs of candidates. A statement can be submitted without having submitted a photograph, or vice versa. The Commission will accept digital photos only. Candidates can submit digital photos through the Commission website, by e-mail or candidates can make an appointment to have a digital photo taken at the Commission's graphic design firm. If a candidate submits a photo for inclusion in the primary election pamphlet, the same photo will be used for the general election pamphlet. Photos for inclusion in the general election pamphlet will only be accepted from candidates who did not submit a photo for inclusion in the primary election pamphlet. Citizens Clean Elections Commission 2003-2004 Participating Candidate Guide



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Chapter 9: Voter Education Submission Process

     Submit the statement and photo online at www.ccec.state.az.us. After the statement and photo are submitted, a verification form will appear. Print out and review the verification form for submission to the Commission. Sign and date the verification form and make a copy of the verification form for candidate records. Fax the verification form or mail the verification form to the Commission immediately after the statement is submitted. The Commission will receive the verification form and enter the statement and photo into the pamphlets.



All statements will appear in the pamphlets exactly as they are submitted. The Commission will not permit changes to statements after the final verification form has been returned. Upon request, the Commission will offer the use of an internal, public computer should candidates need to utilize these facilities in order to submit statements. This computer will be housed at the Commission's office. Please visit the Commission's website at www.ccec.state.az.us for detailed instructions on how to submit a statement and photograph.



Format and Availability

The pamphlets will be available in English/Spanish and large-type print. The Commission will distribute additional copies of the pamphlets to the Secretary of State's Office, the 15 county election offices, political parties, and libraries. For the primary election, the pamphlets will be mailed to households no later than August 5, 2004. For the general election, the pamphlets will be mailed no later than September 30, 2004.



Citizens Clean Elections Commission 2003-2004 Participating