Act, rules, and policies manual

              ACT, RULES, AND POLICIES MANUAL







Commissioners Marcia J. Busching, Chair ? D, Phoenix Ermila Jolley ? D, Yuma Gary Scaramazzo ? I, Page Carl J. Kunasek ? R, Mesa Royann J. Parker ? R, Tucson www.azcleanelections.gov (602) 364-3477 1-877-631-8891







TABLE OF CONTENTS



Campaign Contributions and Expenses, A.R.S., Title 16, Chapter 6, Article 1 ________ 4



?16-901 Definitions ___________________________________________________________ 4 ?16-901.01 Limitations on certain unreported expenditures and contributions __________ 9







Citizens Clean Elections Act, A.R.S., Title 16, Chapter 6, Article 2 ________________ 10



? 16-940 Findings and declarations _____________________________________________ 10 ? 16-941 Limits on spending and contributions for political campaigns _______________ 10 ? 16-942 Civil penalties and forfeiture of office ___________________________________ 11 ? 16-943 Criminal violations and penalties _______________________________________ 11 ? 16-944 Fees imposed on lobbyists _____________________________________________ 12 ? 16-945 Limits on early contributions __________________________________________ 12 ? 16-946 Qualifying contributions ______________________________________________ 12 ? 16-947 Certification as a participating candidate ________________________________ 13 ? 16-948 Controls on participating candidates' campaign accounts __________________ 13 ? 16-949 Caps on spending from citizens clean elections fund _______________________ 14 ? 16-950 Qualification for clean campaign funding ________________________________ 14 ? 16-951 Clean campaign funding ______________________________________________ 15 ? 16-952 Equal funding of candidates ___________________________________________ 16 ? 16-953 Return of monies to the citizens clean elections fund _______________________ 17 ? 16-954 Clean elections tax reduction; return of excess monies _____________________ 18 ? 16-955 Citizens clean election commission; structure _____________________________ 19 ? 16-956 Voter education and enforcement duties _________________________________ 20 ? 16-957 Enforcement procedure _______________________________________________ 21 ? 16-958 Manner of filing reports ______________________________________________ 22 ? 16-959 Inflationary and other adjustments of dollar values________________________23 ? 16-960 Severability _________________________________________________________ 23 ? 16-961 Definitions __________________________________________________________ 23







Arizona Administration Code, Title 2, Chapter 20 _____________________________ 25



Article 1. General Provisions __________________________________________________ 25



R2-20-101. R2-20-102. R2-20-103. R2-20-104. R2-20-105. R2-20-106. R2-20-107. R2-20-108. R2-20-109. R2-20-110. Definitions_____________________________________________________________25 Applicability ___________________________________________________________ 26 Communications: Time and Method ________________________________________ 26 Certification as a participating candidate _____________________________________ 27 Certification for funding __________________________________________________ 30 Distribution of funds to certified candidates ___________________________________ 31 Candidate Debates_______________________________________________________32 Voluntary termination of participating candidate status __________________________ 33 Reporting requirements ___________________________________________________ 33 Campaign accounts ______________________________________________________ 35



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R2-20-111. Books and records requirements ____________________________________________ 36 R2-20-112. Reserved ______________________________________________________________ 37 R2-20-113. Calculation of Matching Funds _____________________________________________ 37







Article 2. Compliance and Enforcement Procedures ______________________________ 40



R2-20-201. R2-20-202. R2-20-203. R2-20-204. R2-20-205. R2-20-206. R2-20-207. R2-20-208. R2-20-209. R2-20-210. R2-20-211. R2-20-212. R2-20-213. R2-20-214. R2-20-215. R2-20-216. R2-20-217. R2-20-218. R2-20-219. R2-20-220. R2-20-221. R2-20-222. R2-20-223. R2-20-224. R2-20-225. R2-20-226. R2-20-227. R2-20-228. R2-20-229. R2-20-230. R2-20-231. R2-20-301. R2-20-302. R2-20-303. R2-20-304. R2-20-305. R2-20-306. R2-20-307. R2-20-308. R2-20-309. R2-20-310. R2-20-311. R2-20-312. R2-20-401. R2-20-402. R2-20-403. R2-20-404. R2-20-405. R2-20-406. Scope_________________________________________________________________40 Initiation of compliance matters ____________________________________________ 40 Complaints ____________________________________________________________ 40 Initial complaint processing; notification _____________________________________ 40 Opportunity for no action on complaint-generated matters________________________ 40 Executive Director's recommendation on complaint-generated matters______________41 Internally generated matters; referrals________________________________________ 41 Complaint processing; notification __________________________________________ 41 Investigation ___________________________________________________________ 42 Written questions under order ______________________________________________ 42 Subpoenas and subpoenas duces tecum; depositions ____________________________ 42 Reserved ______________________________________________________________ 42 Motions to quash or modify a subpoena ______________________________________ 42 The probable cause to believe recommendation; briefing procedures _______________ 42 The probable cause to believe finding; notification _____________________________ 42 Conciliation____________________________________________________________43 Enforcement proceedings _________________________________________________ 43 Reserved ______________________________________________________________ 43 Reserved ______________________________________________________________ 43 Ex parte communications _________________________________________________ 43 Representation by counsel; notification ______________________________________ 44 Civil penalties __________________________________________________________ 44 Notice of appealable agency action__________________________________________44 Request for an administrative hearing________________________________________44 Informal settlement conference _____________________________________________ 45 Administrative hearing ___________________________________________________ 45 Review of administrative decision by Commission _____________________________ 45 Judicial review _________________________________________________________ 45 Reserved ______________________________________________________________ 45 Reserved ______________________________________________________________ 45 Reserved ______________________________________________________________ 45 Purpose and applicability _________________________________________________ 47 Definitions_____________________________________________________________47 Notification to Commissioners and employees _________________________________ 47 Interpretation and advisory service __________________________________________ 48 Reporting suspected violations _____________________________________________ 48 Disciplinary and other remedial action _______________________________________ 48 General prohibited conduct ________________________________________________ 48 Outside employment or activities ___________________________________________ 49 Financial interests _______________________________________________________ 50 Political and organization activity___________________________________________51 Membership in associations _______________________________________________ 51 Use of state property _____________________________________________________ 51 Purpose and scope _______________________________________________________ 52 General _______________________________________________________________ 52 Conduct of fieldwork ____________________________________________________ 52 Preliminary audit report __________________________________________________ 52 Final audit report ________________________________________________________ 53 Release of audit report____________________________________________________53







Article 3. Standard of Conduct for Commissioners and Employees __________________ 47







Article 4. Audits ____________________________________________________________ 52







Article 5. Rulemaking _______________________________________________________ 54



R2-20-501. Purpose and scope _______________________________________________________ 54



CITIZENS CLEAN ELECTIONS ACT, RULES AND POLICIES MANUAL -2Revised 4/27/06







R2-20-502. R2-20-503. R2-20-504. R2-20-505. R2-20-506. R2-20-601. R2-20-602. R2-20-603. R2-20-604.







Procedural requirements __________________________________________________ 54 Processing of petitions ___________________________________________________ 54 Disposition of petitions ___________________________________________________ 54 Commission considerations________________________________________________55 Administrative record ____________________________________________________ 55 Purpose and scope _______________________________________________________ 56 Definitions_____________________________________________________________56 Audits, investigations, and litigation_________________________________________56 Sanctions ______________________________________________________________ 56







Article 6. Ex Parte Communications ___________________________________________ 56







Article 7. Use of Funds and Repayment _________________________________________ 57



R2-20-701. Purpose and scope _______________________________________________________ 57 R2-20-702. Use of campaign funds ___________________________________________________ 57 R2-20-702.01 Use of Assets_________________________________________________________57 R2-20-703. Documentation for direct campaign expenditures_______________________________ 57 R2-20-704. Repayment ____________________________________________________________ 58 R2-20-705. Additional audits or repayment determinations_________________________________ 60 R2-20-706. Reserved ______________________________________________________________ 60 R2-20-707. Reserved ______________________________________________________________ 60 R2-20-708. Reserved ______________________________________________________________ 60 R2-20-709. Reserved ______________________________________________________________ 60 R2-20-710. Reserved ______________________________________________________________ 60







Substantive Policy Statements _____________________________________________ 61







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Revised 4/27/06







Campaign Contributions and Expenses, A.R.S., Title 16, Chapter 6, Article 1 ?16-901 Definitions



In this chapter, unless the context otherwise requires: 1. "Agent" means, with respect to any person other than a candidate, any person who has oral or written authority, either express or implied, to make or authorize the making of expenditures as defined in this section on behalf of a candidate, any person who has been authorized by the treasurer of a political committee to make or authorize the making of expenditures or a political consultant for a candidate or political committee. 2. "Candidate" means an individual who receives or gives consent for receipt of a contribution for his nomination for or election to any office in this state other than a federal office. 3. "Candidate's campaign committee" means a political committee designated and authorized by a candidate. 4. "Clearly identified candidate" means that the name, a photograph or a drawing of the candidate appears or the identity of the candidate is otherwise apparent by unambiguous reference. 5. "Contribution" means any gift, subscription, loan, advance or deposit of money or anything of value made for the purpose of influencing an election including supporting or opposing the recall of a public officer or supporting or opposing the circulation of a petition for a ballot measure, question or proposition or the recall of a public officer and: (a) Includes all of the following: (i) A contribution made to retire campaign debt. (ii) Money or the fair market value of anything directly or indirectly given or loaned to an elected official for the purpose of defraying the expense of communications with constituents, regardless of whether the elected official has declared his candidacy. (iii) The entire amount paid to a political committee to attend a fund raising or other political event and the entire amount paid to a political committee as the purchase price for a fund-raising meal or item, except that no contribution results if the actual cost of the meal or fund-raising item, based on the amount charged to the committee by the vendor, constitutes the entire amount paid by the purchaser for the meal or item, the meal or item is for the purchaser's personal use and not for resale and the actual cost is the entire amount paid by the purchaser in connection with the event. This exception does not apply to auction items. (iv) Unless specifically exempted, the provision of goods or services without charge or at a charge that is less than the usual and normal charge for such goods and services. (b) Does not include any of the following: (i) The value of services provided without compensation by any individual who volunteers on behalf of a candidate, a candidate's campaign committee or any other political committee. (ii) Money or the value of anything directly or indirectly provided to defray the expense of an elected official meeting with constituents if the elected official is engaged in the performance of the duties of his office or provided by the state or a political subdivision to an elected official for communication with constituents if the elected official is engaged in the performance of the duties of his office. (iii) The use of real or personal property, including a church or community room used on a regular basis by members of a community for noncommercial purposes, that is obtained by an individual in the course of volunteering personal services to any candidate, candidate's committee or political party, and the cost of invitations, food and beverages voluntarily provided by an individual to any candidate, candidate's campaign committee or political party in rendering voluntary personal



CITIZENS CLEAN ELECTIONS ACT, RULES AND POLICIES MANUAL -4Revised 4/27/06







(iv) (v)







(vi) (vii)







(viii)







(ix)







(x)







(xi)







(xii)







services on the individual's residential premises or in the church or community room for candidate-related or political party-related activities, to the extent that the cumulative value of the invitations, food and beverages provided by the individual on behalf of any single candidate does not exceed one hundred dollars with respect to any single election. Any unreimbursed payment for personal travel expenses made by an individual who on his own behalf volunteers his personal services to a candidate. The payment by a political party for party operating expenses, party staff and personnel, party newsletters and reports, voter registration and efforts to increase voter turnout, party organization building and maintenance and printing and postage expenses for slate cards, sample ballots, other written materials that substantially promote three or more nominees of the party for public office and other election activities not related to a specific candidate, except that this item does not apply to costs incurred with respect to a display of the listing of candidates made on telecommunications systems or in newspapers, magazines or similar types of general circulation advertising. Independent expenditures. Monies loaned by a state bank, a federally chartered depository institution or a depository institution the deposits or accounts of which are insured by the federal deposit insurance corporation or the national credit union administration, other than an overdraft made with respect to a checking or savings account, that is made in accordance with applicable law and in the ordinary course of business. In order for this exemption to apply, this loan shall be deemed a loan by each endorser or guarantor, in that proportion of the unpaid balance that each endorser or guarantor bears to the total number of endorsers or guarantors, the loan shall be made on a basis that assures repayment, evidenced by a written instrument, shall be subject to a due date or amortization schedule and shall bear the usual and customary interest rate of the lending institution. A gift, subscription, loan, advance or deposit of money or anything of value to a national or a state committee of a political party specifically designated to defray any cost for the construction or purchase of an office facility not acquired for the purpose of influencing the election of a candidate in any particular election. Legal or accounting services rendered to or on behalf of a political committee or a candidate, if the only person paying for the services is the regular employer of the individual rendering the services and if the services are solely for the purpose of compliance with this title. The payment by a political party of the costs of campaign materials, including pins, bumper stickers, handbills, brochures, posters, party tabloids and yard signs, used by the party in connection with volunteer activities on behalf of any nominee of the party or the payment by a state or local committee of a political party of the costs of voter registration and get-out-the-vote activities conducted by the committee if the payments are not for the costs of campaign materials or activities used in connection with any telecommunication, newspaper, magazine, billboard, direct mail or similar type of general public communication or political advertising. Transfers between political committees to distribute monies raised through a joint fund-raising effort in the same proportion to each committee's share of the fundraising expenses and payments from one political committee to another in reimbursement of a committee's proportionate share of its expenses in connection with a joint fund-raising effort. An extension of credit for goods and services made in the ordinary course of the creditor's business if the terms are substantially similar to extensions of credit to nonpolitical debtors that are of similar risk and size of obligation and if the creditor makes a commercially reasonable attempt to collect the debt, except that any



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6. 7.







8.







9. 10. 11. 12.







extension of credit under this item made for the purpose of influencing an election which remains unsatisfied by the candidate after six months, notwithstanding good faith collection efforts by the creditor, shall be deemed receipt of a contribution by the candidate but not a contribution by the creditor. (xiii) Interest or dividends earned by a political committee on any bank accounts, deposits or other investments of the political committee. "Earmarked" means a designation, instruction or encumbrance that results in all or any part of a contribution or expenditure being made to, or expended on behalf of, a clearly identified candidate or a candidate's campaign committee. "Election" means any election for any initiative, referendum or other measure or proposition or a primary, general, recall, special or runoff election for any office in this state other than the office of precinct committeeman and other than a federal office. For purposes of sections 16-903 and 16-905, the general election includes the primary election. "Expenditures" includes any purchase, payment, distribution, loan, advance, deposit or gift of money or anything of value made by a person for the purpose of influencing an election in this state including supporting or opposing the recall of a public officer or supporting or opposing the circulation of a petition for a ballot measure, question or proposition or the recall of a public officer and a contract, promise or agreement to make an expenditure resulting in an extension of credit and the value of any in-kind contribution received. Expenditure does not include any of the following: (a) A news story, commentary or editorial distributed through the facilities of any telecommunications system, newspaper, magazine or other periodical publication, unless the facilities are owned or controlled by a political committee, political party or candidate. (b) Nonpartisan activity designed to encourage individuals to vote or to register to vote. (c) The payment by a political party of the costs of preparation, display, mailing or other distribution incurred by the party with respect to any printed slate card, sample ballot or other printed listing of three or more candidates for any public office for which an election is held, except that this subdivision does not apply to costs incurred by the party with respect to a display of any listing of candidates made on any telecommunications system or in newspapers, magazines or similar types of general public political advertising. (d) The payment by a political party of the costs of campaign materials, including pins, bumper stickers, handbills, brochures, posters, party tabloids and yard signs, used by the party in connection with volunteer activities on behalf of any nominee of the party or the payment by a state or local committee of a political party of the costs of voter registration and get-out-the-vote activities conducted by the committee if the payments are not for the costs of campaign materials or activities used in connection with any telecommunications system, newspaper, magazine, billboard, direct mail or similar type of general public communication or political advertising. (e) Any deposit or other payment filed with the Secretary of State or any other similar officer to pay any portion of the cost of printing an argument in a publicity pamphlet advocating or opposing a ballot measure. "Exploratory committee" means a political committee that is formed for the purpose of determining whether an individual will become a candidate and that receives contributions or makes expenditures of more than five hundred dollars in connection with that purpose. "Family contribution" means any contribution that is provided to a candidate's campaign committee by a parent, grandparent, spouse, child or sibling of the candidate or a parent or spouse of any of those persons. "Filing officer" means the office that is designated by section 16-916 to conduct the duties prescribed by this chapter. "Identification" means: (a) For an individual, his name and mailing address, his occupation and the name of his employer.



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13. 14.







15. 16. 17. 18.







(b) For any other person, including a political committee, the full name and mailing address of the person. For a political committee, identification includes the identification number issued on the filing of a statement of organization pursuant to section 16-902.01. "Incomplete contribution" means any contribution received by a political committee for which the contributor's mailing address, occupation, employer or identification number has not been obtained and is not in the possession of the political committee. "Independent expenditure" means an expenditure by a person or political committee, other than a candidate's campaign committee, that expressly advocates the election or defeat of a clearly identified candidate, that is made without cooperation or consultation with any candidate or committee or agent of the candidate and that is not made in concert with or at the request or suggestion of a candidate, or any committee or agent of the candidate. Independent expenditure includes an expenditure that is subject to the requirements of section 16-917 which requires a copy of campaign literature or advertisement to be sent to a candidate named or otherwise referred to in the literature or advertisement. An expenditure is not an independent expenditure if any of the following applies: (a) Any officer, member, employee or agent of the political committee making the expenditure is also an officer, member, employee or agent of the committee of the candidate whose election or whose opponent's defeat is being advocated by the expenditure or an agent of the candidate whose election or whose opponent's defeat is being advocated by the expenditure. (b) There is any arrangement, coordination or direction with respect to the expenditure between the candidate or the candidate's agent and the person making the expenditure, including any officer, director, employee or agent of that person. (c) In the same election the person making the expenditure, including any officer, director, employee or agent of that person, is or has been: (i) Authorized to raise or expend monies on behalf of the candidate or the candidate's authorized committees. (ii) Receiving any form of compensation or reimbursement from the candidate, the candidate's committees or the candidate's agent. (d) The expenditure is based on information about the candidate's plans, projects or needs, or those of his campaign committee, provided to the expending person by the candidate or by the candidate's agents or any officer, member or employee of the candidate's campaign committee with a view toward having the expenditure made. "In-kind contribution" means a contribution of goods or services or anything of value and not a monetary contribution. "Itemized" means that each contribution received or expenditure made is set forth separately. "Literature or advertisement" means information or materials that are mailed, distributed or placed in some medium of communication for the purpose of influencing the outcome of an election. "Personal monies" means any of the following: (a) Assets to which the candidate has a legal right of access or control at the time he becomes a candidate and with respect to which the candidate has either legal title or an equitable interest. (b) Salary and other earned income from bona fide employment of the candidate, dividends and proceeds from the sale of the stocks or investments of the candidate, bequests to the candidate, income to the candidate from trusts established before candidacy, income to the candidate from trusts established by bequest after candidacy of which the candidate is a beneficiary, gifts to the candidate of a personal nature that have been customarily received before the candidacy and proceeds received by the candidate from lotteries and other legal games of chance. (c) The proceeds of loans obtained by the candidate that are not contributions and for which the collateral or security is covered by subdivision (a) or (b) of this paragraph. (d) Family contributions.



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19.







20. 21. 22.







23.







24. 25.







"Political committee" means a candidate or any association or combination of persons that is organized, conducted or combined for the purpose of influencing the result of any election or to determine whether an individual will become a candidate for election in this state or in any county, city, town, district or precinct in this state, that engages in political activity in behalf of or against a candidate for election or retention or in support of or opposition to an initiative, referendum or recall or any other measure or proposition and that applies for a serial number and circulates petitions and, in the case of a candidate for public office except those exempt pursuant to section 16-903, that receives contributions or makes expenditures in connection therewith, notwithstanding that the association or combination of persons may be part of a larger association, combination of persons or sponsoring organization not primarily organized, conducted or combined for the purpose of influencing the result of any election in this state or in any county, city, town or precinct in this state. Political committee includes the following types of committees: (a) A candidate's campaign committee. (b) A separate, segregated fund established by a corporation or labor organization pursuant to section 16-920, subsection A, paragraph 3. (c) A committee acting in support of or opposition to the qualification, passage or defeat of a ballot measure, question or proposition. (d) A committee organized to circulate or oppose a recall petition or to influence the result of a recall election. (e) A political party. (f) A committee organized for the purpose of making independent expenditures. (g) A committee organized in support of or opposition to one or more candidates. (h) A political organization. (i) An exploratory committee. "Political organization" means an organization that is formally affiliated with and recognized by a political party including a district committee organized pursuant to section 16-823. "Political party" means the state committee as prescribed by section 16-825 or the county committee as prescribed by section 16-821 of an organization that meets the requirements for recognition as a political party pursuant to section 16-801 or section 16-804, subsection A. "Sponsoring organization" means any organization that establishes, administers or contributes financial support to the administration of, or that has common or overlapping membership or officers with, a political committee other than a candidate's campaign committee. "Standing political committee" means a political committee that is all of the following: (a) Active in more than one reporting jurisdiction in this state for more than one year. (b) Files a statement of organization as prescribed by section 16-902.01, subsection E. (c) Is any of the following as defined by paragraph 19 of this section: (i) A separate, segregated fund. (ii) A political party. (iii) A committee organized for the purpose of making independent expenditures. (iv) A political organization. "Statewide office" means the office of governor, Secretary of State, state treasurer, attorney general, superintendent of public instruction, corporation commissioner or mine inspector. "Surplus monies" means those monies of a political committee remaining after all of the committee's expenditures have been made and its debts have been extinguished.







CITIZENS CLEAN ELECTIONS ACT, RULES AND POLICIES MANUAL -8-







Revised 4/27/06







?16-901.01 Limitations on certain unreported expenditures and contributions



A. For purposes of this chapter, "expressly advocates" means: 1. Conveying a communication containing a phrase such as "vote for," "elect," "re-elect," "support," "endorse," "cast your ballot for," "(name of candidate) in (year)," "(name of candidate) for (office)," "vote against," "defeat," "reject," or a campaign slogan or words that in context can have no reasonable meaning other than to advocate the election or defeat of one or more clearly identified candidates, or 2. Making a general public communication, such as in a broadcast medium, newspaper, magazine, billboard, or direct mailer referring to one or more clearly identified candidates and targeted to the electorate of that candidate(s): (a) That in context can have no reasonable meaning other than to advocate the election or defeat of the candidate(s), as evidenced by factors such as the presentation of the candidate(s) in a favorable or unfavorable light, the targeting, placement, or timing of the communication, or the inclusion of statements of the candidate(s) or opponents, or (b) In the sixteen-week period immediately preceding a general election. A communication within the scope of subsection A, paragraph 2 shall not be considered as one that "expressly advocates" merely because it presents information about the voting record or position on a campaign issue of three or more candidates, so long as it is not made in coordination with a candidate, political party, agent of the candidate or party, or a person who is coordinating with a candidate or candidate's agent.







B.







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Revised 4/27/06







Citizens Clean Elections Act, A.R.S., Title 16, Chapter 6, Article 2 ? 16-940 Findings and declarations



A. The people of Arizona declare our intent to create a clean elections system that will improve the integrity of Arizona state government by diminishing the influence of special-interest money, will encourage citizen participation in the political process, and will promote freedom of speech under the U.S. and Arizona Constitutions. Campaigns will become more issue-oriented and less negative because there will be no need to challenge the sources of campaign money. The people of Arizona find that our current election-financing system: 1. Allows Arizona elected officials to accept large campaign contributions from private interests over which they have governmental jurisdiction; 2. Gives incumbents an unhealthy advantage over challengers; 3. Hinders communication to voters by many qualified candidates; 4. Effectively suppresses the voices and influence of the vast majority of Arizona citizens in favor of a small number of wealthy special interests; 5. Undermines public confidence in the integrity of public officials; 6. Costs average taxpayers millions of dollars in the form of subsidies and special privileges for campaign contributors; 7. Drives up the cost of running for state office, discouraging otherwise qualified candidates who lack personal wealth or access to special-interest funding; and 8. Requires that elected officials spend too much of their time raising funds rather than representing the public. Notwithstanding any law to the contrary, a participating candidate: 1. Shall not accept any contributions, other than a limited number of five-dollar qualifying contributions as specified in section 16-946 and early contributions as specified in section 16-945, except in the emergency situation specified in section 16954, subsection F. 2. Shall not make expenditures of more than a total of five hundred dollars of the candidate's personal monies for a candidate for legislature or more than one thousand dollars for a candidate for statewide office. 3. Shall not make expenditures in the primary election period in excess of the adjusted primary election spending limit. 4. Shall not make expenditures in the general election period in excess of the adjusted general election spending limit. 5. Shall comply with section 16-948 regarding campaign accounts and section 16-953 regarding returning unused monies to the citizens clean election fund described in this article. Notwithstanding any law to the contrary, a nonparticipating candidate: 1. Shall not accept contributions in excess of an amount that is twenty percent less than the limits specified in section 16-905, subsections A through G, as adjusted by the Secretary of State pursuant to section 16-905, subsection J. Any violation of this paragraph shall be subject to the civil penalties and procedures set forth in section 16905, subsections L through P and section 16-924. 2. Shall comply with section 16-958 regarding reporting, including filing reports with the Secretary of State indicating whenever (a) expenditures other than independent expenditures on behalf of the candidate, from the beginning of the election cycle to any date up to primary election day, exceed seventy percent of the original primary election spending limit applicable to a participating candidate seeking the same office, or (b)



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B.







? 16-941 Limits on spending and contributions for political campaigns



A.







B.







CITIZENS CLEAN ELECTIONS ACT, RULES AND POLICIES MANUAL -10-







C.







D.







contributions to a candidate, from the beginning of the election cycle to any date during the general election period, less expenditures made from the beginning of the election cycle through primary election day, exceed seventy percent of the original general election spending limit applicable to a participating candidate seeking the same office. Notwithstanding any law to the contrary, a candidate, whether participating or nonparticipating: 1. If and only if specified in a written agreement signed by the candidate and one or more opposing candidates and filed with the citizens clean elections commission, shall not make any expenditure in the primary or general election period exceeding an agreedupon amount lower than spending limits otherwise applicable by statute. 2. Shall continue to be bound by all other applicable election and campaign finance statutes and rules, with the exception of those provisions in express or clear conflict with the provisions of this article. Notwithstanding any law to the contrary, any person who makes independent expenditures related to a particular office cumulatively exceeding five hundred dollars1 in an election cycle, with the exception of any expenditure listed in section 16-920 and any independent expenditure by an organization arising from a communication directly to the organization's members, shareholders, employees, affiliated persons, and subscribers, shall file reports with the Secretary of State in accordance with section 16-958 so indicating, identifying the office and the candidate or group of candidates whose election or defeat is being advocated, and stating whether the person is advocating election or advocating defeat. The civil penalty for a violation of any contribution or expenditure limit in section 16-941 by or on behalf of a participating candidate shall be ten times the amount by which the expenditures or contributions exceed the applicable limit. In addition to any other penalties imposed by law, the civil penalty for a violation by or on behalf of any candidate of any reporting requirement imposed by this chapter shall be one hundred dollars per day for candidates for the legislature and three hundred dollars per day for candidates for statewide office.2 The penalty imposed by this subsection shall be doubled if the amount not reported for a particular election cycle exceeds ten percent of the adjusted primary or general election spending limit. No penalty imposed pursuant to this subsection shall exceed twice the amount of expenditures or contributions not reported. The candidate and the candidate's campaign account shall be jointly and severally responsible for any penalty imposed pursuant to this subsection. Any campaign finance report filed indicating a violation of section 16- 941, subsections A or B or section 16-941, subsection C, paragraph 1 involving an amount in excess of ten percent of the sum of the adjusted primary election spending limit and the adjusted general election spending limit for a particular candidate shall result in disqualification of a candidate or forfeiture of office. Any participating candidate adjudged to have committed a knowing violation of section 16941, subsections A or C, paragraph 1 shall repay from the candidate's personal monies to the fund all monies expended from the candidate's campaign account and shall turn over the candidate's campaign account to the fund. All civil penalties collected pursuant to this article shall be deposited into the fund. A candidate, or any other person acting on behalf of a candidate, who knowingly violates section 16-941 is guilty of a class 1 misdemeanor.







? 16-942 Civil penalties and forfeiture of office



A. B.







C.







D.







E. A.







? 16-943 Criminal violations and penalties







1 2







For 2006, the adjusted amount is $580. A.R.S. ? 16-959(A). For 2006, the adjusted amounts are $120 and $350, respectively.



CITIZENS CLEAN ELECTIONS ACT, RULES AND POLICIES MANUAL -11Revised 4/27/06







B. C.







Any person who knowingly pays any thing of value or any compensation for a qualifying contribution as defined in section 16-946 is guilty of a class 1 misdemeanor. Any person who knowingly provides false or incomplete information on a report filed under section 16-958 is guilty of a class 1 misdemeanor.







? 16-944 Fees imposed on lobbyists



Beginning on January 1, 1999, an annual fee is imposed on all registered lobbyists representing (a) one or more persons in connection with a commercial or for-profit activity except public bodies or (b) a non-profit entity predominately composed of or acting on behalf of a trade association or other grouping of commercial or for-profit entities. The fee shall be in the amount of one hundred dollars annually per lobbyist and shall be collected by the Secretary of State and transmitted to the state treasurer for deposit into the fund.3







? 16-945 Limits on early contributions



A. A participating candidate may accept early contributions only from individuals and only during the exploratory period and the qualifying period, subject to the following limitations: 1. Notwithstanding any law to the contrary, no contributor shall give, and no participating candidate shall accept, contributions from a contributor exceeding one hundred dollars during an election cycle. 2. Notwithstanding any law to the contrary, early contributions to a participating candidate from all sources for an election cycle shall not exceed, for a candidate for governor, forty thousand dollars or, for other candidates, ten percent of the sum of the original primary election spending limit and the original general election spending limit. 3. Qualifying contributions specified in section 16-946 shall not be included in determining whether the limits in this subsection have been exceeded. Early contributions specified in subsection A of this section and the candidate's personal monies specified in section 16-941, subsection A, paragraph 2 may be spent only during the exploratory period and the qualifying period. Any early contributions not spent by the end of the qualifying period shall be paid to the fund. If a participating candidate has a debt from an election campaign in this state during a previous election cycle in which the candidate was not a participating candidate, then, during the exploratory period only, the candidate may accept, in addition to early contributions specified in subsection A of this section, contributions subject to the limitations in section 16-941, subsection B, paragraph 1, or may exceed the limit on personal monies in section 16941, subsection A, paragraph 2, provided that such contributions and monies are used solely to retire such debt. During the qualifying period, a participating candidate may collect qualifying contributions, which shall be paid to the fund. To qualify as a "qualifying contribution," a contribution must be: 1. Made by a qualified elector as defined in section 16-121, who at the time of the contribution is registered in the electoral district of the office the candidate is seeking and who has not given another qualifying contribution to that candidate during that election cycle; 2. Made by a person who is not given anything of value in exchange for the qualifying contribution; 3. In the sum of five dollars, exactly;







B.







C.







? 16-946 Qualifying contributions



A. B.







In 2001, a Superior Court of Arizona found the lobbyist fee to be unconstitutional; however, the court also found the provision severable. Lavis v. Bayless, CV 2001-006078. Accordingly, the Commission refunded the lobbyist fees previously collected and no longer collects the fee.



CITIZENS CLEAN ELECTIONS ACT, RULES AND POLICIES MANUAL -12Revised 4/27/06







3







4.







C.







Received unsolicited during the qualifying period or solicited during the qualifying period by a person who is not employed or retained by the candidate and who is not compensated to collect contributions by the candidate or on behalf of the candidate; 5. If made by check or money order, made payable to the candidate's campaign committee, or if in cash, deposited in the candidate's campaign committee's account; and 6. 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. A copy of the reporting slip shall be given as a receipt to the contributor, and another copy shall be retained by the candidate's campaign committee. Delivery of an original reporting slip to the Secretary of State shall excuse the candidate from disclosure of these contributions on campaign finance reports filed under article 1 of this chapter.







? 16-947 Certification as a participating candidate



A. B. A candidate who wishes to be certified as a participating candidate shall, before the end of the qualifying period, file an application with the Secretary of State, in a form specified by the citizens clean elections commission. The application shall identify the candidate, the office that the candidate plans to seek, and the candidate's party, if any, and shall contain the candidate's signature, under oath, certifying that: 1. The candidate has complied with the restrictions of section 16-941, subsection A during the election cycle to date. 2. The candidate's campaign committee and exploratory committee have filed all campaign finance reports required under article 1 of this chapter during the election cycle to date and that they are complete and accurate. 3. The candidate will comply with the requirements of section 16-941, subsection A during the remainder of the election cycle and, specifically, will not accept private contributions. The commission shall act on the application within one week. Unless, within that time, the commission denies an application and provides written reasons that all or part of a certification in subsection B of this section is incomplete or untrue, the candidate shall be certified as a participating candidate. If the commission denies an application for failure to file all complete and accurate campaign finance reports or failure to make the certification in subsection B, paragraph 3 of this section, the candidate may reapply within two weeks of the commission's decision by filing complete and accurate campaign finance reports and another sworn certification.







C.







? 16-948 Controls on participating candidates' campaign accounts



A. A participating candidate shall conduct all financial activity through a single campaign account of the candidate's campaign committee. A participating candidate shall not make any deposits into the campaign account other than those permitted under sections 16-945 or 16946. 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 under oath promising to comply with the requirements of this title.







B.







CITIZENS CLEAN ELECTIONS ACT, RULES AND POLICIES MANUAL -13-







Revised 4/27/06







C.







D.







The candidate or a person authorized under subsection B of this section shall pay monies from a participating candidate's campaign account directly to the person providing goods or services to the campaign and shall identify, on a report filed pursuant to article 1 of this chapter, the full name and street address of the person and the nature of the goods and services and compensation for which payment has been made. Notwithstanding the previous sentence, a campaign committee may establish one or more petty cash accounts, which in aggregate shall not exceed one thousand dollars at any time. No single expenditure shall be made from a petty cash account exceeding one hundred dollars. Monies in a participating candidate's campaign account shall not be used to pay fines or civil penalties, for costs or legal fees related to representation before the commission, or for defense of any enforcement action under this chapter. Nothing in this subsection shall prevent a participating candidate from having a legal defense fund. The commission shall not spend, on all costs incurred under this article during a particular calendar year, more than five dollars times the number of Arizona resident personal income tax returns filed during the previous calendar year. Tax reductions and tax credits awarded to taxpayers pursuant to section 16-954, subsections A and B shall not be considered costs incurred under this article for purposes of this section. The commission may exceed this limit during a calendar year, provided that it is offset by an equal reduction of the limit during another calendar year during the same four-year period beginning January 1 immediately after a gubernatorial election. The commission may use up to ten percent of the amount specified in subsection A of this section for reasonable and necessary expenses of administration and enforcement, including the activities specified in section 16-956, subsections B, C, and D. Any portion of the ten percent not used for this purpose shall remain in the fund. The commission shall apply ten percent of the amount specified in subsection A of this section for reasonable and necessary expenses associated with voter education, including the activities specified in section 16-956, subsection A. The state treasurer shall administer a citizens clean election fund from which costs incurred under this article shall be paid. The auditor general shall review the monies in, payments into, and expenditures from the fund no less often than every four years. A candidate who has made an application for certification may also apply, in accordance with subsection B of this section, to receive funds from the citizens clean elections fund, instead of receiving private contributions. To receive any clean campaign funding, the candidate must present to the Secretary of State no later than one week after the end of the qualifying period a list of names of persons who have made qualifying contributions pursuant to section 16-946 on behalf of the candidate. The list shall be divided by county. At the same time, the candidate must tender to the Secretary of State the original reporting slips identified in section 16-946, subsection C for persons on the list and an amount equal to the sum of the qualifying contributions collected. The Secretary of State shall deposit the amount into the fund. The Secretary of State shall select at random a sample of five percent of the number of nonduplicative names on the list and forward facsimiles of the selected reporting slips to the county recorder for the counties of the addresses specified in the selected slips. Within ten days, the county recorders shall provide a report to the Secretary of State identifying as disqualified any slips that are unsigned or undated or that the recorder is unable to verify as matching a person who is registered to vote, on the date specified on the slip, inside the electoral district of the office the candidate is seeking. The Secretary of State shall multiply the number of slips not disqualified by twenty, and if the result is greater than one hundred and ten percent of the quantity required, shall approve the candidate for funds, and if the



Revised 4/27/06







? 16-949 Caps on spending from citizens clean elections fund



A.







B.







C. D.







? 16-950 Qualification for clean campaign funding



A. B.







C.







CITIZENS CLEAN ELECTIONS ACT, RULES AND POLICIES MANUAL -14-







D.







E.







result is less than ninety percent of the quantity required, shall deny the application for funds. Otherwise, the Secretary of State shall forward facsimiles of all of the slips to the county recorders for verification, and the county recorders shall check all slips in accordance with the process above. To qualify for clean campaign funding, a candidate must have been approved as a participating candidate pursuant to section 16-947 and have obtained the following number4 of qualifying contributions: 1. For a candidate for legislature, two hundred. 2. For candidate for mine inspector, five hundred. 3. For a candidate for treasurer, superintendent of public instruction, or corporation commission, one thousand five hundred. 4. For a candidate for Secretary of State or attorney general, two thousand five hundred. 5. For a candidate for governor, four thousand. To qualify for clean campaign funding, a candidate must have met the requirements of this section and either be an independent candidate or meet the following standards: 1. To qualify for funding for a party primary election, a candidate must have properly filed nominating papers and nominating petitions with signatures pursuant to chapter 3, articles 2 and 3 of this title in the primary of a political organization entitled to continued representation on the official ballot in accordance with section 16-804. 2. To qualify for clean campaign funding for a general election, a candidate must be a party nominee of such a political organization.







? 16-951 Clean campaign funding



A. At the beginning of the primary election period, the commission shall pay from the fund to the campaign account of each candidate who qualifies for clean campaign funding: 1. For a candidate who qualifies for clean campaign funding for a party primary election, an amount equal to the original primary election spending limit; 2. For an independent candidate who qualifies for clean campaign funding, an amount equal to seventy percent of the sum of the original primary election spending limit and the original general election spending limit; or 3. For a qualified participating candidate who is unopposed for an office in that candidate's primary, in the primary of any other party, and by any opposing independent candidate, an amount equal to five dollars times the number of qualifying contributions for that candidate certified by the commission. At any time after the first day of January of an election year, any candidate who has met the requirements of section 16-950 may sign and cause to be filed a nomination paper in the form specified by section 16-311, subsection A, with a nominating petition and signatures, instead of filing such papers after the earliest time set for filing specified by that subsection. Upon such filing and verification of the signatures, the commission shall pay the amount specified in subsection A of this section immediately, rather than waiting for the beginning of the primary election period. At the beginning of the general election period, the commission shall pay from the fund to the campaign account of each candidate who qualifies for clean campaign funding for the general election, except those candidates identified in subsection A, paragraphs 2 or 3 or subsection D of this section, an amount equal to the original general election spending limit. At the beginning of the general election period, the commission shall pay from the fund to the campaign account of a qualified participating candidate who has not received funds pursuant to subsection A, paragraph 3 of this section and who is unopposed by any other







B.







C.







D.







For 2004, the minimum amounts of qualifying contributions were increased by 5%. For 2006, the minimum amounts of qualifying contributions are: 210 for legislature, 4,200 for governor, 2,625 for secretary of state and attorney general, 1,575 for treasurer, superintendent of public instruction and corporation commission, and 525 for mine inspector. See A.A.C R2-20-105(I).



CITIZENS CLEAN ELECTIONS ACT, RULES AND POLICIES MANUAL -15Revised 4/27/06







4







E.







party nominee or any opposing independent candidate an amount equal to five dollars times the number of qualifying contributions for that candidate certified by the commission. The special original general election spending limit, for a candidate who has received funds pursuant to subsection A, paragraphs 2 or 3 or subsection D of this section, shall be equal to the amount that the commission is obligated to pay to that candidate. Whenever during a primary election period a report is filed, or other information comes to the attention of the commission, indicating that a nonparticipating candidate who is not unopposed in that primary has made expenditures during the election cycle to date exceeding the original primary election spending limit, including any previous adjustments, the commission shall immediately pay from the fund to the campaign account of any participating candidate in the same party primary as the nonparticipating candidate an amount equal to any excess of the reported amount over the primary election spending limit, as previously adjusted, and the primary election spending limit for all such participating candidates shall be adjusted by increasing it by the amount that the commission is obligated to pay to a participating candidate. Whenever during a general election period a report has been filed, or other information comes to the attention of the commission, indicating that the amount a nonparticipating candidate who is not unopposed has received in contributions during the election cycle to date less the amount of expenditures the nonparticipating candidate made through the end of the primary election period exceeds the original general election spending limit, including any previous adjustments, the commission shall immediately pay from the fund to the campaign account of any participating candidate qualified for the ballot and seeking the same office as the nonparticipating candidate an amount equal to any excess of the reported difference over the general election spending limit, as previously adjusted, and the general election spending limit for all such participating candidates shall be adjusted by increasing it by the amount that the commission is obligated to pay to a participating candidate. For purposes of subsections A and B of this section the following expenditures reported pursuant to this article shall be treated as follows: 1. Independent expenditures against a participating candidate shall be treated as expenditures of each opposing candidate, for purpose of subsection A of this section, or contributions to each opposing candidate, or purpose of subsection B of this section. 2. Independent expenditures in favor of one or more nonparticipating opponents of a participating candidate shall be treated as expenditures of those nonparticipating candidates, for purpose of subsection A of this section, or contributions to those nonparticipating candidates, for purpose of subsection B of this section. 3. Independent expenditures in favor of a participating candidate shall be treated, for every opposing participating candidate, as though the independent expenditures were an expenditure of a nonparticipating opponent, for purpose of subsection A of this section, or a contribution to a nonparticipating opponent, for purpose of subsection B of this section. 4. Expenditures made during the primary election period by or on behalf of an independent candidate or a nonparticipating candidate who is unopposed in a party primary, shall be treated as though made during the general election period, and equalizing funds pursuant to subsection B of this section shall be paid at the start of the general election period. 5. Expenditures made before the general election period that consist of a contract, promise, or agreement to make an expenditure during the general election period resulting in an extension of credit shall be treated as though made during the general election period, and equalizing funds pursuant to subsection B of this section shall be paid at the start of the general election period. 6. Expenditures for or against a participating candidate promoting or opposing more than one candidate who are not running for the same office shall be allocated by the



Revised 4/27/06







? 16-952 Equal funding of candidates



A.







B.







C.







CITIZENS CLEAN ELECTIONS ACT, RULES AND POLICIES MANUAL -16-







D.







E.







commission among candidates for different offices based on the relative size or length and relative prominence of the reference to candidates for different offices. Upon applying for citizen funding pursuant to section 16-950, a participating candidate for legislature in a one-party-dominant legislative district who is qualified for clean campaign funding for the party primary election of the dominant party may choose to reallocate a portion of funds from the general election period to the primary election period. At the beginning of the primary election period, the commission shall pay from the fund to the campaign account of a participating candidate who makes this choice an extra amount equal to fifty percent of the original primary election spending limit, and the original primary election spending limit for the candidate who makes this choice shall be increased by the extra amount. For a primary election in which one or more participating candidates have made this choice, funds shall be paid under subsections A and B of this section only to the extent of any excess over the original primary election spending limit as so increased. If a participating candidate who makes this choice becomes qualified for clean campaign funding for the general election, the amount the candidate receives at the beginning of the general election period shall be reduced by the extra amount received at the beginning of the primary election period, and the original general election spending limit for that candidate shall be reduced by the extra amount. For a general election in which a participating candidate has made this choice, funds shall be paid under subsections A and B of this section only to the extent of any excess over the original general election spending limit, without such reduction, unless the candidate who has made this choice is the only participating candidate in the general election, in which case such funds shall be paid to the extent of excess over the original general election spending limit with such reduction. For purpose of this subsection, a one-party-dominant legislative district is a district in which the number of registered voters registered in the party with the highest number of registered voters exceeds the number of registered voters registered to each of the other parties by an amount at least as high as ten percent of the total number of voters registered in the district. The status of a district as a one-party-dominant legislative district shall be determined as of the beginning of the qualifying period. If an adjusted spending limit reaches three times the original spending limit for a particular election, then the commission shall not pay any further amounts from the fund to the campaign account of any participating candidate, and the spending limit shall not be adjusted further. At the end of the primary election period, a participating candidate who has received monies pursuant to section 16-951, subsection A, paragraph 1 shall return to the fund all monies in the candidate's campaign account above an amount sufficient to pay any unpaid bills for expenditures made during the primary election period and for goods or services directed to the primary election. At the end of the general election period, a participating candidate shall return to the fund all monies in the candidate's campaign account above an amount sufficient to pay any unpaid bills for expenditures made before the general election and for goods or services directed to the general election. A participating candidate shall pay all uncontested and unpaid bills referenced in this section no later than thirty days after the primary or general election. A participating candidate shall make monthly reports to the commission concerning the status of the dispute over any contested bills. Any monies in a candidate's campaign account after payment of bills shall be returned promptly to the fund. If a participating candidate is replaced pursuant to section 16-343, and the replacement candidate files an oath with the Secretary of State certifying to section 16- 947, subsection B, paragraph 3, the campaign account of the participating candidate shall be transferred to the replacement candidate and the commission shall certify the replacement candidate as a participating candidate without requiring compliance with section 16-950 or the remainder of



Revised 4/27/06







? 16-953 Return of monies to the citizens clean elections fund



A.







B.







C.







D.







CITIZENS CLEAN ELECTIONS ACT, RULES AND POLICIES MANUAL -17-







section 16-947. If the replacement candidate does not file such an oath, the campaign account shall be liquidated and all remaining monies returned to the fund.







? 16-954 Clean elections tax reduction; return of excess monies



A. For tax years beginning on or after January 1, 1998, a taxpayer who files on a state income tax return form may designate a five-dollar voluntary contribution per taxpayer to the fund by marking an optional check-off box on the first page of the form. A taxpayer who checks this box shall receive a five-dollar reduction in the amount of tax, and five dollars from the amount of taxes paid shall be transferred by the department of revenue to the fund. The department of revenue shall provide check-off boxes, identified as the clean elections fund tax reduction, on the first page of income tax return forms, for designations pursuant to this subsection. Any taxpayer may make a voluntary donation to the fund by designating the fund on an income tax return form filed by the individual or business entity or by making a payment directly to the fund. Any taxpayer making a donation pursuant to this subsection shall receive a dollar-for-dollar tax credit not to exceed twenty percent of the tax amount on the return or five hundred dollars5 per taxpayer, whichever is higher. Donations made pursuant to this section are otherwise not tax deductible and cannot be designated as for the benefit of a particular candidate, political party, or election contest. The department of revenue shall transfer to the fund all donations made pursuant to this subsection. The department of revenue shall provide a space, identified as the clean elections fund tax credit, on the first page of income tax return forms, for donations pursuant to this subsection. Beginning January 1, 1999, an additional surcharge of ten percent shall be imposed on all civil and criminal fines and penalties collected pursuant to section 12- 116.01 and shall be deposited into the fund. At least once per year, the commission shall project the amount of monies that the fund will collect over the next four years and the time such monies shall become available. Whenever the commission determines that the fund contains more monies than the commission determines that it requires to meet current debts plus expected expenses, under the assumption that expected expenses will be at the expenditure limit in section 16-949, subsection A, and taking into account the projections of collections, the commission shall designate such monies as excess monies and so notify the state treasurer, who shall thereupon return the excess monies to the general fund. At least once per year, the commission shall project the amount of citizen funding for which all candidates will have qualified pursuant to this article for the following calendar year. By the end of each year, the commission shall announce whether the amount that the commission plans to spend the following year pursuant to section 16-949, subsection A exceeds the projected amount of citizen funding. If the commission determines that the fund contains insufficient monies or the spending cap would be exceeded were all candidates' accounts to be fully funded, then the commission may include in the announcement specifications for decreases in the following parameters, based on the commission's projections of collections and expenses for the fund, made in the following order: 1. First, the commission may announce a decrease in the matching cap under section 16952, subsection E from three times to an amount between three and one times. 2. Next, the commission may announce that the fund will provide equalization monies under section 16-952, subsections A and B as a fraction of the amounts there specified. 3. Finally, the commission may announce that the fund will provide monies under section 16-951 as a fraction of the amounts there specified. If the commission cannot provide participating candidates with all monies specified under sections 16-951 and 16-952, as decreased by any announcement pursuant to subsection E of this section, then the commission shall allocate any reductions in payments proportionately among candidates entitled to monies and shall declare an emergency. Upon declaration of an







B.







C. D.







E.







F.







5







For 2006, the adjusted amount is $580. A.R.S. ? 16-959(A).



CITIZENS CLEAN ELECTIONS ACT, RULES AND POLICIES MANUAL -18Revised 4/27/06







emergency, a participating candidate may accept private contributions to bring the total monies received by the candidate from the fund and from such private contributions up to the adjusted spending limits, as decreased by any announcement made pursuant to subsection E of this section.







? 16-955 Citizens clean election commission; structure



A. The citizens clean elections commission is established consisting of five members. No more than two members of the commission shall be members of the same political party. No more than two members of the commission shall be residents of the same county. No one shall be appointed as a member who does not have a registration pursuant to chapter 1 of this title that has been continuously recorded for at least five years immediately preceding appointment with the same political party or as an independent. The commission on appellate court appointments shall nominate candidates for vacant commissioner positions who are committed to enforcing this article in an honest, independent, and impartial fashion and to seeking to uphold public confidence in the integrity of the electoral system. Each candidate shall be a qualified elector who has not, in the previous five years in this state, been appointed to, been elected to, or run for any public office, including precinct committeeman, or served as an officer of a political party.6 Initially, the commission on appellate court appointments shall nominate five slates, each having three candidates, before January 1, 1999. No later than February 1, 1999, the governor shall select one candidate from one of the slates to serve on the commission for a term ending January 31, 2004. Next, the highest-ranking official holding a statewide office who is not a member of the same political party as the governor shall select one candidate from another one of the slates to serve on the commission for a term ending January 31, 2003. Next, the second-highest-ranking official holding a statewide office who is a member of the same political party as the governor shall select one candidate from one of the three remaining slates to serve on the commission for a term ending January 31, 2002. Next, the second-highest-ranking official holding a statewide office who is not a member of the same political party as the governor shall select one candidate from one of the two remaining slates to serve on the commission for a term ending January 31, 2001. Finally, the third-highestranking official holding a statewide office who is a member of the same political party as the governor shall elect one candidate from the last slate to serve on the commission for a term ending January 31, 2000. For purpose of this section, the ranking of officials holding statewide office shall be governor, Secretary of State, attorney general, treasurer, superintendent of public instruction, corporation commissioners in order of seniority, mine inspector, the members of the supreme court in order of seniority, senate majority and minority leaders, and house majority and minority leaders. One commissioner shall be appointed for a five-year term beginning February 1 of every year beginning with the year 2000. The commission on appellate court appointments shall nominate one slate of three candidates before January 1 of each year beginning in the year 2000, and the governor and the highest-ranking official holding a statewide office who is not a member of the same political party as the governor shall alternate filling such vacancies. The vacancy in the year 2000 shall be filled by the governor. Members of the commission may be removed by the governor, with concurrence of the senate, for substantial neglect of duty, gross misconduct in office, inability to discharge the powers and duties of office, or violation of this section, after written notice and opportunity for a response. If a commissioner does not complete his or her term of office for any reason, the commission on appellate court appointments shall nominate one slate of three candidates as soon as







B.







C.







D.







E.







F.







The Arizona Supreme Court held that the Commission on Appellate Court Appointments did not have the authority to nominate Clean Elections Commissioners; members of the Arizona Supreme Court could not appoint Clean Elections Commissioners; and the provisions could be severed from the Act. Citizens Clean Elections Commissioners v. Myers, 196 Ariz. 516 (2000).



CITIZENS CLEAN ELECTIONS ACT, RULES AND POLICIES MANUAL -19Revised 4/27/06







6







G. H. I.







J.







possible in the first thirty days after the commissioner vacates his or her office and a replacement shall be selected from the slate within thirty days of nomination of the slate. The highest-ranking official holding a statewide office who is a member of the political party of the official who nominated the commissioner who vacated office shall nominate the replacement, who shall serve as commissioner for the unexpired portion of the term. A vacancy or vacancies shall not impair the right of the remaining members to exercise all of the powers of the board. Commissioners are eligible to receive compensation in an amount of two hundred dollars for each day on which the commission meets and reimbursement of expenses pursuant to title 38, chapter 4, article 2. The commissioners shall elect a chair to serve for each calendar-year period from among their members whose terms expire after the conclusion of that year. Three commissioners shall constitute a quorum. A member of the commission shall serve no more than one term and is not eligible for reappointment. No commissioner, during his or her tenure or for three years thereafter, shall seek or hold any other public office, serve as an officer of any political committee, or employ or be employed as a lobbyist. The commission shall appoint an executive director who shall not be a member of the commission and who shall serve at the pleasure of the commission. The executive director is eligible to receive compensation set by the board within the range determined under section 38-611. The executive director, subject to title 41, chapter 4, articles 5 and 6, shall employ, determine the conditions of employment, and specify the duties of administrative, secretarial, and clerical employees as the director deems necessary. The commission shall: 1. Develop a procedure for publishing a document or section of a document having a space of predefined size for a message chosen by each candidate. For the document that is mailed before the primary election, the document shall contain the names of every candidate for every statewide and legislative district office in that primary election without regard to whether the candidate is a participating candidate or a nonparticipating candidate. For the document that is mailed before the general election, the document shall contain the names of every candidate for every statewide and legislative district office in that general election without regard to whether the candidate is a participating candidate or a nonparticipating candidate. The commission shall mail one copy of each document to every household that contains a registered voter. For the document that is mailed before the primary election, the mailing may be made over a period of days but shall be mailed in order to be delivered to households before the earliest date for receipt by registered voters of any requested early ballots for the primary election. The commission may mail the second document over a period of days but shall mail the second document in order to be delivered to households before the earliest date for receipt by registered voters of any requested early ballots for the general election. The primary election and general election documents published by the commission shall comply with all of the following: (a) For any candidate who does not submit a message pursuant to this paragraph, the document shall include with the candidate's listing the words "no statement submitted". (b) The document shall have printed on its cover the words "citizens clean elections commission voter education guide" and the words "primary election" or "general election" and the applicable year. The document shall also contain at or near the bottom of the document cover in type that is no larger than one-half the size of the type used for "citizens clean elections commission voter education guide" the words "paid for by the citizens clean elections fund".



Revised 4/27/06







? 16-956 Voter education and enforcement duties



A.







CITIZENS CLEAN ELECTIONS ACT, RULES AND POLICIES MANUAL -20-







B.







C.







D.







(c) In order to prevent voter confusion, the document shall be easily distinguishable from the publicity pamphlet that is required to be produced by the Secretary of State pursuant to section 19-123. 2. Sponsor debates among candidates, in such manner as determined by the commission. The commission shall require participating candidates to attend and participate in debates and may specify by rule penalties for nonparticipation. The commission shall invite and permit nonparticipating candidates to participate in debates. 3. Prescribe forms for reports, statements, notices and other documents required by this article. 4. Prepare and publish instructions setting forth methods of bookkeeping and preservation of records to facilitate compliance with this article and explaining the duties of persons and committees under this article. 5. Produce a yearly report describing the commission's activities and any recommendations for changes of law, administration or funding amounts and accounting for monies in the fund. 6. Adopt rules to implement the reporting requirements of section 16-958, subsections D and E. 7. Enforce the provisions of this article, ensure that money from the fund is placed in candidate campaign accounts or otherwise spent as specified in this article and not otherwise, monitor reports filed pursuant to this chapter and financial records of candidates as needed to ensure that equalization monies are paid promptly to opposing qualified candidates under section 16-952 and ensure that money required by this article to be paid to the fund is deposited in the fund. The commission may subpoena witnesses, compel their attendance and testimony, administer oaths and affirmations, take evidence and require by subpoena the production of any books, papers, records or other items material to the performance of the commission's duties or the exercise of its powers. The commission may adopt rules to carry out the purposes of this article and to govern procedures of the commission. Commission rule making is exempt from title 41, chapter 6, article 3, except that the commission shall submit the rules for publication and the Secretary of State shall publish the rules in the Arizona administrative register. The commission shall propose and adopt rules in public meetings, with at least sixty days allowed for interested parties to comment after the rules are proposed. Based on the results of the elections in the year 2002 or any quadrennial election thereafter, and within six months after such election, the commission may adopt rules changing the number of qualifying contributions required for any office from those listed in section 16950, subsection D, by no more than twenty per cent of the number applicable for the preceding election.







? 16-957 Enforcement procedure



A. If the commission finds that there is reason to believe that a person has violated any provision of this article, the commission shall serve on that person an order stating with reasonable particularity the nature of the violation and requiring compliance within fourteen days. During that period, the alleged violator may provide any explanation to the commission, comply with the order, or enter into a public administrative settlement with the commission. Upon expiration of the fourteen days, if the commission finds that the alleged violator remains out of compliance, the commission shall make a public finding to that effect and issue an order assessing a civil penalty in accordance with section 16-942, unless the commission publishes findings of fact and conclusions of law expressing good cause for reducing or excusing the penalty. The violator has fourteen days from the date of issuance of the order assessing the penalty to appeal to the superior court as provided in title 12, chapter 7, article 6.



Revised 4/27/06







B.







CITIZENS CLEAN ELECTIONS ACT, RULES AND POLICIES MANUAL -21-







C.







Any candidate in a particular election contest who believes that any opposing candidate has violated this article for that election may file a complaint with the commission requesting that action be taken pursuant to this section. If the commission fails to make a finding under subsection A of this section within thirty days after the filing of such a complaint, the candidate may bring a civil action in the superior court to impose the civil penalties prescribed in this section. Any person who has previously reached the dollar amount specified in section 16- 941, subsection D for filing an original report shall file a supplemental report each time previously unreported independent expenditures specified by that subsection exceeds one thousand dollars. Any person who has previously reached the dollar amounts specified in section 16941, subsection B, paragraph 2 for filing an original report shall file a supplemental report to declare that previously unreported expenditures or contributions specified by that paragraph exceed (1) ten percent of the original primary election spending limit or twenty-five thousand dollars, whichever is lower, before the general election period, or (2) ten percent of the original general election spending limit or twenty-five thousand dollars, whichever is lower, during the general election period. Such reports shall be filed at the times specified in subsection B of this section and shall identify the dollar amount being reported, the candidate, and the date. Any person who must file an original report pursuant to section 16-941, subsection B, paragraph 2 or subsection D, or who must file a supplemental report for previously unreported amounts pursuant to subsection A of this section, shall file as follows: 1. Before the beginning of the primary election period, the person shall file a report on the first of each month, unless the person has not reached the dollar amount for filing an original or supplemental report on that date. 2. Thereafter, except as stated in paragraph 3 of this subsection, the person shall file a report on any Tuesday by which the person has reached the dollar amount for filing an original or supplemental report. 3. During the last two weeks before the primary election and the last two weeks before the general election, the person shall file a report within one business day of reaching the dollar amount for filing an original or supplemental report. Any filing under this article on behalf of a candidate may be made by the candidate's campaign committee. All candidates shall deposit any check received by and intended for the campaign and made payable to the candidate or the candidate's campaign committee, and all cash received by and intended for the campaign, in the candidate's campaign account before the due date of the next report specified in subsection B of this section. No candidate or person acting on behalf of a candidate shall conspire with a donor to postpone delivery of a donation to the campaign for the purpose of postponing the reporting of the donation in any subsequent report. The Secretary of State shall immediately notify the commission of the filing of each report under this section and deliver a copy of the report to the commission, and the commission shall promptly mail or otherwise deliver a copy of each report filed pursuant to this section to all participating candidates opposing the candidate identified in section 16-941, subsection B, paragraph 2 or subsection D. Any report filed pursuant to this section or section 16-916, subsection A, paragraph 1 or subsection B shall be filed in electronic format. The Secretary of State shall distribute computer software to political committees to accommodate such electronic filing. During the primary election period and the general election period, all candidates shall make available for public inspection all bank accounts, campaign finance reports, and financial records relating to the candidate's campaign, either by immediate disclosure through electronic means or at the candidate's campaign headquarters, in accordance with rules adopted by the commission.



Revised 4/27/06







? 16-958 Manner of filing reports



A.







B.







C.







D.







E. F.







CITIZENS CLEAN ELECTIONS ACT, RULES AND POLICIES MANUAL -22-







? 16-959 Inflationary and other adjustments of dollar values



A. Every two years, the Secretary of State shall modify the dollar values specified in the following parts of this article, in the manner specified by section 16-905, subsection J, to account for inflation; section 16-941, subsection A, paragraph 2 or subsection D; section 16942, subsection B; section 16-944; section 16-945, subsection A, paragraphs 1 and 2; section 16-948, paragraph C; section 16-954, subsection B; section 16-955, subsection G; and section 16-961, subsections G and H. In addition, the Secretary of State shall make a similar inflation adjustment by modifying the dollar values in section 16-949, subsection A and section 16-954, subsection A to the nearest dollar. In addition, every two years, the Secretary of State shall change the dollar values in section 16-961, subsections G and H in proportion to the change in the number of Arizona resident personal income tax returns filed during the previous calendar year. Based on the results of the elections in the year 2002 or any quadrennial election thereafter, and within six months after such election, the commission may adopt rules in a public meeting reallocating funds available to all candidates between the primary and general elections by selecting a fraction for primary election spending limits that is between one third and one half of the spending limits for the election as a whole. For each office, the primary election spending limit shall be modified to be the sum of the primary and general spending limits times the selected fraction, and the general election spending limit shall be modified to be the same sum times one less the selected fraction.







B.







? 16-960 Severability



If a provision of this act or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the act that can be given effect without the invalid provision or application, and to this end the provisions of this act are severable. In any court challenge to the validity of this article, the commission and Arizonans for clean elections shall have standing to intervene.







? 16-961 Definitions



The terms "candidate's campaign committee," "contribution," "expenditures," "exploratory committee," "independent expenditure," "personal monies," "political committee," and "statewide office" are defined in section 16-901. B. 1. "Election cycle" means the period between successive general elections for a particular office. 2. "Exploratory period" means the period beginning on the day after a general election and ending the day before the start of the qualifying period. 3. "Qualifying period" means the period beginning on the first day of August in a year preceding an election, for an election for a statewide office, or on the first day of January of an election year, for an election for legislator, and ending seventyfive days before the day of the general election. 4. "Primary election period" means the nine-week period ending on the day of the primary election. 5. "General election period" means the period beginning on the day after the primary election and ending on the day of the general election. 6. For any recall election, the qualifying period shall begin when the election is called and last for thirty days, there shall be no primary election period, and the general election period shall extend from the day after the end of the qualifying period to the day of the recall election. For recall elections, any reference to "general election" in this article shall be treated as if referring to the recall election. C. 1. "Participating candidate" means a candidate who becomes certified as a participating candidate pursuant to section 16-947. 2. "Nonparticipating candidate" means a candidate who does not become certified as a participating candidate pursuant to section 16-947.



CITIZENS CLEAN ELECTIONS ACT, RULES AND POLICIES MANUAL -23Revised 4/27/06







A.







3. D. E. F.







G.







H. I.







Any limitation of this article that is applicable to a participating candidate or a nonparticipating candidate shall also apply to that candidate's campaign committee or exploratory committee. "Commission" means the citizens clean elections commission established pursuant to section 16-955. "Fund" means the citizens clean election fund defined by this article. 1. "Party nominee" means a person who has been nominated by a political party pursuant to sections 16-301 or 16-343. 2. "Independent candidate" means a candidate who has properly filed nominating papers and nominating petitions with signatures pursuant to section 16-341. 3. "Unopposed," with reference to an election for a member of the house of representatives, means opposed by no more than one other candidate. "Primary election spending limits" means: 1. For a candidate for legislature, ten thousand dollars.7 2. For candidate for mine inspector, twenty thousand dollars. 3. For a candidate for treasurer, superintendent of public instruction, or corporation commission, forty thousand dollars. 4. For a candidate for Secretary of State or attorney general, eighty thousand dollars. 5. For a candidate for governor, three hundred eighty thousand dollars. "General election spending limits" means amounts fifty percent greater than the amounts specified in subsection G of this section. 1. "Original" spending limit means a limit specified in subsections G and H of this section, as adjusted pursuant to section 16-959, or a special amount expressly set for a particular candidate by a provision of this title. 2. "Adjusted" spending limit means an original spending limit as further adjusted to account for reported overages pursuant to section 16-952.







For 2006, the adjusted amounts are: $453,849 for governor, $95,550 for secretary of state and attorney general, $47,770 for treasurer, superintendent of public instruction and corporation commissioner, $23, 980 for mine inspector and $11,945 for legislature.



CITIZENS CLEAN ELECTIONS ACT, RULES AND POLICIES MANUAL -24Revised 4/27/06







7







Arizona Administration Code, Title 2, Chapter 20 Article 1. General Provisions



R2-20-101. Definitions In addition to the definitions provided in A.R.S. ?? 16-901 and 16-961, the following shall apply to the chapter, unless the context otherwise requires: 1. "Act" means the Citizens Clean Elections Act set forth in the Arizona Revised Statutes, Title 16, Chapter 6, Article 2. 2. "Audit" means a written report pertaining to an examination of a candidate's campaign finances that is reviewed by the Commission in accordance with A.A.C. Title 2, Article 4. 3. "Campaign account" means an account designated by a political committee that is used solely for political campaign purposes as required in A.R.S. ? 16-902(C). 4. "Candidate" means an individual who receives or gives consent for receipt of a contribution for the candidate's nomination for or election to any office in this state, and includes a candidate's campaign committee, the political committee designated and authorized by a candidate, or any agents or personnel of the candidate. 5. "Current campaign account" means a campaign account used solely for election campaign purposes in the present election cycle. 6. "Direct campaign purpose" includes, but is not limited to, materials, communications, transportation, supplies and expenses used toward the election of a candidate. This does not include the candidate's personal appearance, support, or support of a candidate's family member. 7. "Early contributions" means private contributions that are permitted pursuant to A.R.S. ? 16945. 8. "Election Cycle," for the purposes of providing equalizing funds, means the time period between 21 days after the preceding general election and the current general election date. 9. "Examination" means an inspection by the Commission or agent of the Commission of a candidate's books, records, accounts, receipts, disbursements, debts, and obligations, bank account records, and campaign finance reports related to the candidate's campaign, which may include fieldwork, or a visit to the campaign headquarters, to ensure compliance with campaign finance laws and rules. 10. "Expressly advocates" means: a. Conveying a communication containing a phrase such as "vote for," "elect," "re-elect," "support," "endorse," "cast your ballot for," "(name of candidate) in (year)," "(name of candidate) for (office)," "vote against," "defeat," "reject," or a campaign slogan or words that in context can have no reasonable meaning other than to advocate the election or defeat of one or more clearly identified candidates. b. Making a general public communication, such as in broadcast medium, newspaper, magazine, billboard, or direct mailer referring to one or more clearly identified candidates and targeted to the electorate of that candidate(s): i. That in context can have no reasonable meaning other than to advocate the election or defeat of the candidates(s), as evidenced by factors such as the presentation of the candidate(s) in a favorable or unfavorable light, the targeting, placement, or timing of the communication, or the inclusion of statements of the candidate(s) or opponents, or ii. In the 16 week-period immediately preceding a general election. c. A communication within the scope of paragraph b shall not be considered as one that "expressly advocates" merely because it presents information about the voting record or position on a campaign issue of three or more candidates, so long as it is not made in coordination with a candidate, political party, agent of the candidate or party, or a person who is coordinating with a candidate or candidate's agent.







CITIZENS CLEAN ELECTIONS ACT, RULES AND POLICIES MANUAL -25-







Revised 4/27/06







11. 12. 13. 14. 15. 16. 17. 18. 19.







20.







"Family member" means parent, grandparent, spouse, child, or sibling of the candidate or a parent or spouse of any of those persons. "Fair market value" means 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. "Fixed asset" means tangible property usable in a capacity that will benefit the candidate for a period of more than one year from the date of acquisition. "Fund" means the Citizens Clean Elections Fund established pursuant to A.R.S. ? 16-949(D). "Future campaign account" means a campaign account that is used solely for campaign election purposes in an election that does not include present or prior elections. "Independent candidate" means a candidate who is registered as an independent or with no party preference or who is registered with a political party that is not eligible for recognition on the ballot. "Prior campaign account" means a campaign account used solely for campaign election purposes in a prior election. "Public funds" means all funds deposited into the Citizens Clean Elections Fund and all funds disbursed by the Commission to a participating candidate. "Opposed" means a candidate who will appear on the ballot and: a. In a primary election for state representative, a candidate who has opposition for the same office from two members of the same party or will be opposed in the general election by two or more other candidates for the same office. Such opposition in the general election can be from an independent candidate, a candidate from another party, or a candidate who is a member of a political party that is not eligible for recognition on the ballot. b. In a party primary election for any office but state representative, a candidate who has opposition for the same office from a member of the same party, or will be opposed in the general election by an independent, a candidate from another party, or a candidate who is a member of a political party that is not eligible for recognition on the ballot. c. In the general election for state representative, a candidate who has at least two opponents on the ballot, competing for election in the same district. d. In the general election for any office but state representative, has at least one opponent on the ballot, competing for the same office. "Solicitor" means a person who is eligible to be registered to vote in this state and seeks qualifying contributions from qualified electors of this state.







R2-20-102. Applicability The Citizens Clean Elections Act and these rules apply to all candidates seeking office for governor, attorney general, Secretary of State, treasurer, superintendent of public instruction, corporation Commissioner, mine inspector, and legislator. R2-20-103. Communications: Time and Method A. General rule. In computing any period of time prescribed or allowed by the Act or these rules, unless otherwise specified, days are calculated by calendar days, and the day of the act, event, or default from which the designated period of time begins to run shall not be included. The last day of the period so computed shall be included, unless it is a Saturday, a Sunday, or a legal holiday. The term "legal holiday" includes New Year's Day, Martin Luther King Jr. Day, President's Day, Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans Day, Thanksgiving Day, Christmas Day, and any other day appointed as a holiday for employees of the state. B. Special rule for periods less than 7 days. When the period of time prescribed or allowed is less than 7 days, intermediate Saturdays, Sundays, and legal holidays shall be excluded in the computation. C. Special rule for service by regular mail. Whenever the Commission or any person has the right or is required to do some act within a prescribed period after the service of any paper by



CITIZENS CLEAN ELECTIONS ACT, RULES AND POLICIES MANUAL -26Revised 4/27/06







D.







E. F. G.







H.







or upon the Commission by regular mail, 3 calendar days shall be added to the prescribed period. Special rule for service by certified mail. Whenever the Commission or any person is required to do some act within a prescribed period after the service of paper by or upon the Commission, the time period shall begin on the date the recipient signs for the certified mail. If the recipient does not date the certified mail receipt, the postmark on the certified mail receipt will be used as the date of receipt. The Commission shall use the address of the candidate that is provided on the application for certification filed pursuant to A.R.S. ? 16-947. A candidate may designate in writing for the Commission to send written correspondence to a person other than the candidate. If possible, the Commission shall furnish a copy of all communications electronically. Delivery of subpoenas, orders and notifications to a natural person may be made by handing a copy to the person, or leaving a copy at his or her office with the person in charge thereof, by leaving a copy at his or her dwelling place or usual place of abode with a person of suitable age and discretion residing therein, by mailing a copy by registered or certified mail to his or her last known address, or by any other method whereby actual notice is given. When the person to be served is not an individual, delivery of subpoenas, orders and notifications may be made by mailing a copy by registered or certified mail to the person at its place of business or by handing a copy to a registered agent for service, or to any officer, director, or agent in charge of any office of such person, or by mailing a copy by registered or certified mail to such representative at his or her last known address, or by any other method whereby actual notice is given.







R2-20-104. Certification as a participating candidate A. A nonparticipating candidate who accepts contributions up to the limits authorized by A.R.S. ? 16-905, but later chooses to run as a participating candidate, shall: 1. Make the change to participating candidate status during the exploratory and qualifying periods only; 2. Return the amount of each contribution in excess of the individual contribution limit for participating candidates; 3. Return all Political Action Committee (PAC) monies received. 4. Not have spent contributions exceeding the early contribution limit, or any part of a contribution exceeding the early contribution limit; and 5. Comply with all provisions of A.R.S. ? 16-941. B. Money from prior election. If a nonparticipating candidate has a cash balance remaining in the campaign account from the prior election cycle, the candidate may seek certification as a participating candidate in the current election after: 1. Transferring money from the prior campaign account to the candidate's current election campaign account. The amount transferred shall not exceed the permitted personal monies, early contributions, and debt-retirement contributions, as defined in A.R.S. ? 16-945(C); 2. Spending the money lawfully prior to April 30 of an election year in a way that does not constitute a direct campaign purpose and does not meet the definition of "expenditure" under A.R.S. ? 16-901(8); and the event or item purchased is completed or otherwise used and depleted prior to April 30 of an election year; 3. Remitting the money to the Fund; 4. Disposing of the money in accordance with A.R.S. ? 16-915.01; or 5. Holding the money in the prior election campaign account, not to be used during the current election, except as provided pursuant to this rule. C. Application for Certification as a Participating Candidate. Pursuant to A.R.S. ? 16-947, a candidate seeking certification shall file with the Secretary of State a Commission-approved application and a campaign finance report reflecting all campaign activity to date, in



Revised 4/27/06







CITIZENS CLEAN ELECTIONS ACT, RULES AND POLICIES MANUAL -27-







D.







accordance with A.R.S. ? 16-915. In the application, a candidate shall certify under oath that the candidate: 1. Agrees to use all Clean Elections funding for direct campaign purposes only; 2. Has filed a campaign finance report, showing all campaign activity to date in the current election cycle. 3. Will comply with all requirements of the Act and Commission rules; 4. Is subject to all enforcement actions by the Commission as authorized by the Act and Commission rules; 5. Has the burden of proving that expenditures made by or on behalf of the candidate are for direct campaign purposes; 6. 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; 7. 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; 8. Will submit the name and mailing address of the person who is entitled to receive equalizing fund 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. 9. Will pay any civil penalties included in a conciliation agreement or otherwise imposed against the candidate. 10. Will timely file all campaign finance reports with the Secretary of State in an electronic format. 11. 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. If certified as a participating candidate, the candidate shall: 1. Only accept early contributions from individuals during the exploratory and qualifying periods in accordance with A.R.S. ? 16-945. No contributions may be accepted from political action committees, political parties or corporations; 2. Not accept any private contributions, other than early contributions and a limited number of $5 qualifying contributions; 3. Make expenditures of personal monies of no more than the amounts prescribed in A.R.S. ? 16-941(A)(2) for legislative candidates and for statewide office candidates; 4. Conduct all activity through a single campaign account. A participating candidate shall only deposit early contributions, qualifying contributions and Clean Elections funds into the candidate's current campaign account. The campaign account shall not be used for any non-direct campaign purpose as provided in Article 7 of these rules; 5. Attend at least one candidate training class sponsored by the Commission, and cause the candidate's campaign treasurer to attend at least one candidate training class, during the election cycle. If the candidate or the treasurer is unable to attend a training class, the candidate or treasurer shall: a. Notify the Commission that the candidate or treasurer is unable to attend a training class. The Commission will then send that person the Commission training materials; and b. The candidate or treasurer shall sign and send to the Commission a statement certifying that he or she has received and reviewed the Commission training materials;



Revised 4/27/06







CITIZENS CLEAN ELECTIONS ACT, RULES AND POLICIES MANUAL -28-







E.







F.







Limit campaign expenditures. Prior to qualifying for clean elections funding, a candidate shall not incur debt, or make an expenditure in excess of the amount of cash on hand. Upon approval for funding by the Secretary of State's office, a candidate may incur debt or make an expenditure, not to exceed the sum of the cash on hand and the applicable spending limit. Personal loans. A participating candidate may loan his or her campaign committee personal monies during the exploratory and qualifying periods only. The total sum of the loans shall not exceed the personal monies expenditure limits set forth in A.R.S. ? 16-941(A)(2). If the loan is to be repaid, the loans shall be repaid promptly upon receipt of Clean Elections funds if the participating candidate qualifies for Clean Elections funding. Loans from a bank, or other institution listed in A.R.S. ? 16-901(5)(b)(vii) to a candidate or his or her campaign committee shall be considered personal monies and shall not exceed the personal monies expenditure limits set forth in A.R.S. ? 16-941(A)(2). Officeholder Expenses. Prior to April 30 of an election year, an elected official may raise or spend money to defray the expense of performing officeholder duties, and the event or item purchased shall be completed or otherwise used and depleted prior to April 30 of an election year, as follows: 1. The candidate may first exhaust all surplus monies from prior campaign accounts pursuant to subsection B of this rule or may use personal monies for officeholder expenses; 2. Money raised shall be only from individuals and the maximum raised from an individual during the election cycle shall not exceed one-half the early contribution limit; 3. The sum of the money raised or spent shall not exceed 2 times the early contribution limit applicable to the officeholder's current office; 4. For an officeholder's future campaign as a: a. Participating candidatei. Money raised pursuant to this subsection will not be deemed early contributions, and ii. Personal money spent pursuant to this subsection shall not apply to personal money expenditure limits provided in A.R.S. ?16-941(A)(2). b. Nonparticipating candidatei. Money raised or spent pursuant to this subsection will not be calculated in matching funds to opponents as provided in A.R.S. ?16-952, and ii. Money raised or spent pursuant to this subsection will not trigger the reporting requirements provided in A.R.S. ??16-941(D) & -958. 5. Any money raised or spent in excess of the limits established in this rule, however, shall be calculated as early contributions or personal monies for participating candidates, or for matching funds and reporting requirements for nonparticipating candidates. 6. Money raised or spent for officeholder expenses shall be reported under campaign finance reporting requirements pursuant to A.R.S. Title 16, Chapter 6, Article 1 as follows: a. The officeholder shall establish an account for officeholder expenses, which shall be separate from any candidate campaign account; b. The account shall be designated on the statement of organization as "Officeholder Expense Account;" and c. Any money remaining in the officeholder expense account after April 30 of an election year shall either not be spent for the remainder of the calendar year, or shall be remitted to the Clean Elections Fund; 7. Money in the officeholder expense account shall not be used for direct campaign purposes or in connection with the officeholder's future campaign for elective office; and 8. Permissible uses of the money in the officeholder expense account include:



Revised 4/27/06







6.







CITIZENS CLEAN ELECTIONS ACT, RULES AND POLICIES MANUAL -29-







G. H.







I.







a. Expenditure for office equipment and supplies; b. Expenditures for work-related travel; c. Donations to tax-exempt charitable organizations; or d. Expenditures to meet or communicate with constituents. A participating candidate may raise early contributions for election to one office and choose to run for election to another office. If the Commission has reason to believe by a preponderance of the evidence that a participating candidate is not in compliance with the Act or Commission rules, the Commission may decertify a candidate, deny or suspend funding, order repayment of funds, or specify a penalty of no more than $500. Contributions to officeholder expense accounts are subject to the restrictions of A.R.S. ? 411234.01, contributions prohibited during session; exceptions.







R2-20-105. Certification for funding A. After a candidate is certified as a participating candidate, pursuant to A.R.S. ? 16-947, in accordance with the procedure set forth in A.A.C. R2-20-104, that candidate may collect qualifying contributions only during the qualifying period. B. A participating candidate must submit to the Secretary of State, a list of names of persons who made qualifying contributions, an application for funding prescribed by the Secretary of State, the minimum number of original reporting slips, and an amount equal to the sum of the qualifying contributions collected pursuant to A.R.S. 16-950 no later than one week after the end of the qualifying period. A candidate may develop his or her own 3-part reporting slip for qualifying contributions, or one that is photocopied or computer-reproduced, if the form substantially complies with the form prescribed by the Commission. The candidate must comply with the Citizens Clean Elections Act and ensure that the original qualifying slip is tendered to the Secretary of State, a copy remains with the candidate, and that a copy is given to the contributor. C. A solicitor who seeks signatures and qualifying contributions on behalf of a participating candidate shall provide his or her residential address, typed or printed name and signature on each reporting slip. The solicitor shall also sign a sworn statement on the contribution slip avowing that the contributor signed the slip, that the contributor contributed the $5, that based on information and belief, the contributor's name and address are correctly stated and that each contributor is a qualified elector of this state. Nothing in this rule shall prohibit the use of direct mail to obtain qualifying contributions nor prohibit the contributor from also being the solicitor. D. The Secretary of State has the authority to approve or deny a candidate for Clean Elections funding, pursuant to A.R.S. ? 16-950(C), based upon the verification of the qualifying contribution forms by the appropriate county recorder. The county recorder shall disqualify any qualifying contribution forms that are: 1. Unsigned by the contributor; 2. Undated; or 3. That the recorder is unable to verify as matching signature of a person who is registered to vote, on the date specified, inside the electoral district the candidate is seeking. E. The Secretary of State will notify the candidate and the Commission regarding the approval or denial of Clean Election funds. If the result of the random sample is from ninety percent to one hundred ten per cent of the slips needed to qualify for funding, a candidate who is denied clean elections funding after all of the slips are verified may be eligible to submit supplemental qualifying contribution forms for one additional opportunity to be approved for funding pursuant to subsection G of this rule. The amount equal to the sum of the qualifying contributions collected and tendered to the Secretary of State pursuant to A.R.S.?16-950(B) will be deposited into the fund, and the



Revised 4/27/06







F.







CITIZENS CLEAN ELECTIONS ACT, RULES AND POLICIES MANUAL -30-







G.







H.







I.







amount tendered will not be returned to a candidate if a candidate is denied clean campaign funding. In accordance with the procedure pursuant to A.R.S. ? 16-950(C), if the Secretary of State determines that the result of the five percent random sample is from ninety percent to one hundred ten per cent of the slips needed to qualify for funding, then the Secretary of State shall send all of the slips for verification. If the county recorder has verified all of the candidate's signature slips and there is an insufficient number of valid qualifying contribution slips to qualify the candidate for funding, the candidate may make only one supplemental filing of additional qualifying contribution slips and qualifying contributions to the Secretary of State if all of the following apply: 1. The candidate files at least the minimum number of additional slips needed to qualify for funding. 2. The slips are not receipts for duplicate contributions from individuals who have previously contributed to that candidate. 3. The period for filing qualifying contribution slips has not expired. The Secretary of State shall forward facsimiles of all of the supplemental qualifying contribution slips to the appropriate county recorders for the county of the contributors' addresses as shown on the contribution slips. The county recorder shall verify all of the supplemental slips within ten business days after receipt of the facsimiles and shall provide a report to the Secretary of State identifying as disqualified any slips that are unsigned by the contributor or undated or that the recorder is unable to verify as matching the signature of a person who is registered to vote, on the date specified on the slip, inside the electoral district of the office the candidate is seeking. On receipt of the report of the county recorder on all supplemental slips, the Secretary of State shall calculate the candidate's total number of valid qualifying contribution slips and shall approve or deny the candidate for funds. Pursuant to A.R.S. ? 16-956(D), the Citizens Clean Elections Commission adopted the following rule changing the minimum number of qualifying contributions: Minimum Qualifying Contributions 210 525 1,575 1,575 1,575 2,625 2,625 4,200







Legislature Mine Inspector Corporation Commissioner Superintendent of Public Instruction Treasurer Attorney General Secretary of State Governor







R2-20-106. Distribution of funds to certified candidates A. Before the initial disbursement of funds, the Commission shall review the candidate's funding application and all relevant facts and circumstances and: 1. Verify that the number of signatures on the candidate's nominating petitions equals or exceeds the number required pursuant to A.R.S. ? 16-322 as follows: a. If the application is submitted before the March 1 voter registration list is determined, the Commission shall verify that the number of signatures on the candidate's nominating petitions equals or exceeds 115 percent of the number required pursuant to A.R.S. ? 16-322 based on the prior election voter registration list as determined by the Secretary of State; or b. If the application is submitted after the current year March 1 voter registration list is determined, the Commission shall verify that the number of signatures on the candidate's nominating petitions is equal to or greater than the number required pursuant to A.R.S. ? 16-322.



CITIZENS CLEAN ELECTIONS ACT, RULES AND POLICIES MANUAL -31Revised 4/27/06







2. B.







Determine that the required number of qualifying contributions have been received and paid to the Secretary of State for deposit in the Fund; and 3. Determine whether the candidate is opposed in the election. In making the reviews, verifications and determinations in subsection A, paragraph 3, the Commission shall consider all relevant facts and circumstances, and it shall not be bound by election formalities such as the filing of nominating petitions by others in determining whether an applicant is opposed. Among other evidence the Commission may consider is the existence of exploratory committees or filings made to organize campaign committees of opponents and other like indicia.







C. D.







The Commission may review and affirm or change its determination that the candidate is or is not opposed until the ballot for the election is established.



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 percentage 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 percentage points, of the total ballots cast, larger than the vote total cast for the candidate with the 3rd highest vote total. 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 been made. If a participating candidate has received funds from the Commission pursuant to subsection D 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 fund from the date of the canvass. The Commission may refuse to distribute funds to participating candidates in cases of fraud or illegal activity committed by the participating candidate.







E.







F.







R2-20-107. Candidate Debates A. The Commission shall sponsor debates among statewide and legislative office candidates prior to the primary and general elections unless there is no participating candidate in the election for a particular office. B. In the primary election, the Commission shall sponsor primary election debates as follows: 1. According to political party affiliation of candidates, recognized on the official ballot, where at least one of the candidates is a participating candidate, and 2. Party primary candidates are opposed in the election for the political party's nomination. C. The following candidates will not be invited to participate in debates as follows: In the primary election, write-in candidates for the primary election, independent candidates, no party affiliation or unrecognized party candidates. 2. In the general election, write-in candidates. Pursuant to A.R.S. ? 16-956(A)(2), all participating candidates certified pursuant to A.R.S. ? 16-947 shall attend and participate in the debates sponsored by the Commission. Unless exempted, if a participating candidate fails to participate in any Commissionsponsored debate, the participating candidate shall be ineligible to receive any further equalizing funds for that election. For purposes of this section, each primary or general election shall be considered a separate election. 1.







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A participating candidate may request to be exempt from participating in a required debate by doing the following: 1. Submit a written request to the Commission at least one week prior to the scheduled debate; and 2. State the reasons and circumstances justifying the request for exemption. After examining the request to be exempt, the Commission will exempt a candidate from participating in a debate if at least 3 Commissioners determine that the circumstances are: 1. Beyond the control of the candidate; 2. Of such nature that a reasonable person would find the failure to attend justifiable or excusable; or 3. Good cause, as defined in A.R.S. ? 16-918(E). A participating candidate who fails to participate in a required debate may submit a request for reconsideration to the Commission. 1. The candidate's request for reconsideration shall: a. State the reason the candidate failed to participate in the debate; and b. Be submitted to the Commission no later than 5 business days after the date of the debate the candidate failed to attend. 2. After examining the request for reconsideration, the Commission will excuse a candidate from the penalties imposed if at least 3 Commissioners determine that the circumstances were: a. Beyond the control of the candidate; b. Of such nature that a reasonable person would find the failure to attend justifiable or excusable; or c. Good cause, as defined in A.R.S. ? 16-918(E). When a participating candidate is unopposed in the candidate's party primary election, the candidate shall be exempt from participating in a Commission-sponsored debate for the primary election. When a participating candidate is unopposed in the general election, the candidate shall be exempt from participating in a Commission-sponsored debate for the general election.







R2-20-108. Voluntary termination of participating candidate status A. Voluntary termination of participating candidate status may only occur before the end of the qualifying period. To withdraw from participating candidate status, a candidate shall send a letter to the Commission stating the candidate's intent to withdraw and the reason for the withdrawal. The candidate shall not accept any private monies until the withdrawal is approved by the Commission. The Commission shall act on the withdrawal 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 Fund. B. A candidate, whose withdrawal has been approved by, or occurred by lack of action of the Commission, shall: 1. No longer be eligible to receive public funding. 2. Return all Clean Elections funds, spent and unspent, to the Fund within 30 calendar days after he or she ceases to be a participating candidate. C. A participating candidate who withdraws prior to submitting qualifying contributions and an application for funds to the Secretary of State shall use the candidate's best efforts to return all qualifying contributions collected to the contributors within 30 days of the candidate's withdrawal. If a contributor cannot be located, the qualifying contributions collected by the candidate shall be remitted to the Fund.







R2-20-109. Reporting requirements A. Reporting of transactions; Secretary of State's computer software. All campaign finance reports shall be filed in electronic format in accordance with A.R.S. 16-958(E). The



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Commission shall coordinate with the Secretary of State to make electronic-filing computer software available to candidates. If a campaign finance report is specifically requested by a candidate, the Commission will deliver copies of campaign finance reports required under A.R.S.