Campaign Finance 101 For City & Town Clerks PART 1 ELECTIONS OVERVIEW & CANDIDATE ELECTIONS Arizona Municipal Clerks Association Elections Training July

Campaign Finance 101Campaign Finance 101For City & Town ClerksFor City & Town Clerks

PART 1

OVERVIEW & CANDIDATE ELECTIONSELECTIONS

Arizona Municipal Clerks AssociationElections TrainingJuly 2015

OverviewOverview

Purpose / Content of Outline Purpose / Content of Outline The Law and Recent ChangesThe Law and Recent Changes Overview of Clerk ResponsibilitiesOverview of Clerk Responsibilities Political Committees (Candidate Political Committees (Candidate

Elections)Elections) Registration of Political CommitteesRegistration of Political Committees Contribution LimitationsContribution Limitations

OverviewOverview

Disclosure in Campaign Literature & Disclosure in Campaign Literature & AdvertisementsAdvertisements

Reporting for Organizations Making Reporting for Organizations Making Independent ExpendituresIndependent Expenditures

Reporting Contributions & Reporting Contributions & ExpendituresExpenditures

Financial DisclosureFinancial Disclosure

PURPOSE / CONTENTPURPOSE / CONTENT

Content of OutlineContent of Outline Duties and issues for Clerks as filing officersDuties and issues for Clerks as filing officers NOT details on contribution & expendituresNOT details on contribution & expenditures

SOS Workshops for candidatesSOS Workshops for candidates

Reference SummaryReference Summary Reference Guide to apply lawReference Guide to apply law Only a Summary – does not cover all details!Only a Summary – does not cover all details! Always refer to statutes – references provided!Always refer to statutes – references provided!

LAW – Legal CounselLAW – Legal Counsel Important to consult attorneyImportant to consult attorney

Campaign Finance regulation increasingly complexCampaign Finance regulation increasingly complex Law and duties unclear in many cases – conflicting!Law and duties unclear in many cases – conflicting! Legal opinions differ! Know your attorney’s position!Legal opinions differ! Know your attorney’s position!

Responding to Questions Responding to Questions Law unclear – interpreting is legal advice Law unclear – interpreting is legal advice Clerk is Filing officer – provide information, not adviceClerk is Filing officer – provide information, not advice Opponent or public could challenge any adviceOpponent or public could challenge any advice

""You need to discuss that with your attorney or You need to discuss that with your attorney or campaign advisor.campaign advisor.""

THE LAWTHE LAW

Arizona Constitution, Art VII, Sec Arizona Constitution, Art VII, Sec 1616 Campaign Finance information to be Campaign Finance information to be

public public

Arizona Revised Statutes - Arizona Revised Statutes -

Title 16, Chapter 6Title 16, Chapter 6 Campaign Finance (Article I)Campaign Finance (Article I) Clean Elections (Article II) Clean Elections (Article II)

(Not applicable to cities and towns!)(Not applicable to cities and towns!)

THE LAW - RESOURCESTHE LAW - RESOURCES

Arizona Election Law PamphletArizona Election Law Pamphlet Constitution, Titles 16, 19, 38Constitution, Titles 16, 19, 38

(Blue Book) (Aug 2014) (2015 Supplement in progress)(Blue Book) (Aug 2014) (2015 Supplement in progress)

Attorney General Opinions (not law!)Attorney General Opinions (not law!) Secretary of State (materials online)Secretary of State (materials online)

Campaign Finance Filing GuideCampaign Finance Filing Guide Election Procedures Manual (2014)Election Procedures Manual (2014)

League of Cities and TownsLeague of Cities and Towns Municipal Election Manual (MEM)Municipal Election Manual (MEM) Campaign Finance Reports HandbookCampaign Finance Reports Handbook

LAW – Purpose & LimitsLAW – Purpose & Limits

Publicly disclose contributions & expendituresPublicly disclose contributions & expenditures Protect public contributions from misuseProtect public contributions from misuse Limit contributions to candidates (declining)Limit contributions to candidates (declining)

Limitation on Regulation Limitation on Regulation First Amendment (political speech)First Amendment (political speech) Supreme Court DecisionsSupreme Court Decisions

– – Striking restrictions, upholding disclosureStriking restrictions, upholding disclosure

LAW - EnforcementLAW - Enforcement

By Public Disclosure of InformationBy Public Disclosure of Information Public & Candidates identify issuesPublic & Candidates identify issues Voters enforce by casting ballotsVoters enforce by casting ballots

Filing Officers Enforce Report FilingFiling Officers Enforce Report Filing Ensure that public disclosure occurs!Ensure that public disclosure occurs!

Other CF violations – find reasonable Other CF violations – find reasonable cause cause Expanding role enforcing other violations!Expanding role enforcing other violations! Complaints being used as campaign Complaints being used as campaign

strategy strategy

THE LAW – 2015 CHANGESTHE LAW – 2015 CHANGES

Chapter 291 (HB 2589) Chapter 291 (HB 2589) (Eff 7/3/15)

Electronic Filing for Campaign FinanceElectronic Filing for Campaign Finance Authorizes SOS to develop filing database for Authorizes SOS to develop filing database for

elections other than state electionselections other than state elections Cities & towns and other jurisdictions may opt in Cities & towns and other jurisdictions may opt in

each election cycleeach election cycle SOS may charge jurisdictions a feeSOS may charge jurisdictions a fee

SOS goal to develop a statewide system by SOS goal to develop a statewide system by 2017 2017

THE LAW – 2015 CHANGESTHE LAW – 2015 CHANGESChapter 288 (HB 2415)Chapter 288 (HB 2415) “Election” – includes primary & general “Election cycle” –

21 days after general to 20 days after next general (end of reporting period) for a particular office

Eliminates separate accounts (primary & general)

Increases contribution limits to $6250 per cycle Session Law

2014 committees with surplus must form new committee for 2016 and transfer money

Filing officers must assist committees that already amended SO to combine separate committees


Chapter 297 (HB 2649) Chapter 297 (HB 2649) Changes definition of “Political Changes definition of “Political

Committee”Committee” Eliminates general definition of Eliminates general definition of

committee committee Association or combination of personsAssociation or combination of persons Organized to influence electionsOrganized to influence elections Engaging in political activityEngaging in political activity Receiving contributions & expendituresReceiving contributions & expenditures

Removes $250 threshold for registrationRemoves $250 threshold for registration


Chapter 297 (HB 2649) Chapter 297 (HB 2649) (Cont) Defines several committee types separatelyDefines several committee types separately

Most types are those previously listed as examplesMost types are those previously listed as examples Association of persons is a committee IF Association of persons is a committee IF

(both):(both): Organized for primary purpose of influencing electionOrganized for primary purpose of influencing election Receives contributions or makes expenditures in Receives contributions or makes expenditures in

excess of $500 in connection with an election in a excess of $500 in connection with an election in a calendar yearcalendar year


Chapter 292 (HB 2595)Chapter 292 (HB 2595)

Late Filing of ReportsLate Filing of Reports Late filing penalty ($10/day) no longer paid to Late filing penalty ($10/day) no longer paid to

filefile Filing officers must now accept reports without Filing officers must now accept reports without

payment of late feespayment of late fees Clarifies late penalty ($10/day) accrues only Clarifies late penalty ($10/day) accrues only

until report fileduntil report filed Filing officers cannot enforce for late reports Filing officers cannot enforce for late reports

until 31 days after due dateuntil 31 days after due date

Overview of Clerk ResponsibilitiesOverview of Clerk Responsibilities

1.1. ““Filing Officer” for campaign finance Filing Officer” for campaign finance documents for your city or towndocuments for your city or town

2.2. Assign Committee ID numbers & Assign Committee ID numbers & keep Logkeep Log

3.3. Provide Notice and Statement of Provide Notice and Statement of Org to applicants for Initiative, Org to applicants for Initiative, Referendum & Recall (also Title 19 Referendum & Recall (also Title 19 Pamphlet)Pamphlet)


4.4. Receive Campaign Finance DocumentsReceive Campaign Finance Documents

Campaign Financing & Reporting StatementCampaign Financing & Reporting Statement Statement have read campaign finance lawStatement have read campaign finance law Candidates with nomination paper (in form)Candidates with nomination paper (in form) Committee officers with registration (in SO form)Committee officers with registration (in SO form)

Committee Registration DocumentsCommittee Registration Documents Statement of Org or $500 Exemption StatementStatement of Org or $500 Exemption Statement

Periodic ReportsPeriodic Reports Contribution & Expenditure ReportsContribution & Expenditure Reports No Activity StatementNo Activity Statement Annual No Activity Statement (Candidates only)Annual No Activity Statement (Candidates only)


4.4. Receive Campaign Finance Documents Receive Campaign Finance Documents (Cont)(Cont)

Candidate Contribution Notices (New 2013)Candidate Contribution Notices (New 2013) File Notice of receipt of $1000 or more from a File Notice of receipt of $1000 or more from a

single source within 20 days before election single source within 20 days before election Does not apply to cumulative contributions (AG Does not apply to cumulative contributions (AG

Op)Op) ““10K” Notices10K” Notices

Large amounts (ballot measures and recall)Large amounts (ballot measures and recall) Termination Statements – (SO & $500 ES)Termination Statements – (SO & $500 ES) ““Registrations” & Notices for Independent Registrations” & Notices for Independent

Expenditures by Corps, LLCs & Labor OrgsExpenditures by Corps, LLCs & Labor Orgs


5.5. Post Campaign Finance Documents on InternetPost Campaign Finance Documents on Internet(if population over 2500)(if population over 2500) CF Reports & List of committees that filed $500 ESCF Reports & List of committees that filed $500 ES Not required for Registration docs, Fin Disc, NoticesNot required for Registration docs, Fin Disc, Notices May post on city/town site or League siteMay post on city/town site or League site

6.6. Enforce Campaign Finance ReportingEnforce Campaign Finance Reporting Determine Failure to File (on time, sign, good faith)Determine Failure to File (on time, sign, good faith) Send Failure to File NoticesSend Failure to File Notices Refer to attorney if remains delinquent Refer to attorney if remains delinquent Notify attorney if reasonable cause to believe there Notify attorney if reasonable cause to believe there

is some other violation of CF lawis some other violation of CF law


7.7. Enforce Indep Exp Registration & Notice FilingEnforce Indep Exp Registration & Notice Filing Corps, LLCs and Labor Orgs making Corps, LLCs and Labor Orgs making

independent expenditures in candidate independent expenditures in candidate electionselections

Must “Register” for each election cycleMust “Register” for each election cycle If Notice of Expenditure filed –If Notice of Expenditure filed –

Must verify whether entity has registeredMust verify whether entity has registered If Not – categorize “unverified” & contact entityIf Not – categorize “unverified” & contact entity If do not register within 5 days – categorize If do not register within 5 days – categorize

“delinquent” and “remove from public view”“delinquent” and “remove from public view”

Responsibility IssuesResponsibility Issues

Compliance is ultimately the Compliance is ultimately the responsibility of the candidates & responsibility of the candidates & committeescommittees

Law & Scope of duties unclear Law & Scope of duties unclear (growing)(growing)

Interpretation and opinions differInterpretation and opinions differ Some actions not required, but are Some actions not required, but are

appropriate for the Clerk role and appropriate for the Clerk role and further the purposes of the lawfurther the purposes of the law

Political CommitteesPolitical Committees

• General definition of a committee stricken• $250 threshold removed from definition• Several types of committees defined

separately – Candidates and committees they designate– Exploratory committee– Separate segregated fund (Corps & Labor Orgs)– Political party– Political organization


• Petition Groups– An association of persons that circulates a petition for

a ballot measure or a recall is a committee– Other groups organized to support or oppose a ballot

measure or a recall are NOT defined as a committee

• Groups no longer defined as a committee – Association organized to support or oppose one or

more candidates– Association organized for purpose of making

independent expenditures


• Association of persons is a committee IF (both):– Organized conducted or combined for primary

purpose of influencing result of any election; AND– Knowingly receives contributions or makes

expenditures of more than $500 in connection with an election during a calendar year

• Primary purpose must be influencing election– Appears to exclude many groups

• Must receive/expend more $500 in a calendar year– Appears to provide groups a $500 annual exception

without requiring registration and reporting


• Committee to Make Independent Expenditures– Must meet definition of a committee in subsection F– Not primary purpose of many groups– A political committee that receives contributions and

makes expenditures to support / oppose candidates, but “independent” of the candidates

• Distinguish from a Corp, LLC, Labor Org that makes “independent expenditures” from corporate funds to support or oppose candidates– Not required to register as a political committee


• “Independent expenditure” – is an expenditure By a person or committee (not a candidate committee) "Expressly advocates" for or against a candidate Without cooperation or consultation with the candidate

or the candidate’s committee (independent)

• Evaluating whether expenditure is “Independent” New section 16-911 3-part test for trade associations Serving on host committee for fundraising event not

necessarily coordination!

Political Committees?Political Committees?

• Specific Situations . . .– A candidate?– Individual (not a candidate) acting alone? – Corporation that makes independent expenditures

supporting a candidate?

• When to Consider Question . . .– Inquiry about candidacy (always on 1st contact!)– Inquiry about making contributions to candidates

Political Committee RegistrationPolitical Committee Registration

When to Register?

•Most committees - before engaging in "political activity“

– Accepting any contributions

– Making any expenditures

– Distributing any campaign literature

– Circulating any petitions


When to Register?

•Subsection F committees (Association of persons)

– Not required to register before engaging in "political activity“

– Not required to register using a $500 ES

– Must register within 5 days after meeting definition of a committee

– But . . . must disclose “Paid for By” and committee name as registered on any literature or advertisement?


How to Register?•Statement of Organization

– If intends to receive / expend more than $500– Must file all applicable reports

•$500 Threshold Exemption Statement– If intends to receive / expend less than $500– “Exempt” from filing reports – but must track money!– If exceed $500, must file Stmt of Org within 5 bus days


Penalty for Failure to Register

• Civil penalty – Up to 3x amount received/expended

• Nomination petition signatures– Filing officers have no authority to invalidate signatures– No statute invalidating signatures as for Init / Ref / Recall– But . . . since 2006, Superior Court has invalidated sigs– No appellate ruling yet to rely on

Candidate CommitteesCandidate Committees

• Candidate may be chairman and treasurer

• Committee name must include candidate name

• Candidate must designate a committee for each Election– May form new committee or designate existing– If use existing, how designate?

• By amending / updating Statement of Org• Filing first report for new election cycle?

• Only one committee per election (cycle), but may have more than one in existence at a time

Exploratory CommitteesExploratory Committees

• Chairman & Treasurer must be different people

• Committee name must include name of designating individual (potential candidate)

• Person may have only one exploratory committee at a time

• Can circulate nomination petitions• Limited value for elected officials now

Other Political CommitteesOther Political Committees

• Chairman & Treasurer must be different people

• Committee name must identify the "sponsoring" organization, if any

• Out of state committees

– May register in AZ if registered in another state or for federal elections

Standing Political CommitteesStanding Political Committees

• Eligibility to be “Standing” committee

– Active in more than 1 jurisdiction more than 1 yr

– One of the specific types of eligible committees

• File a Statement of Organization with the Secretary of State and a copy in each jurisdiction in which the committee is active

– Registration Statement must be notarized (must file paper)

– Must file copy of amended Stmt Org in each jurisdiction

• Files Reports only with the Secretary of State

• Can’t be sponsor of candidate or other committees

Statement of OrganizationStatement of Organization

• Contents– Name, contact info, sponsor, officers– Candidate name and office sought– Designate financial institution– Statement has read all CF laws (on form)

• Clerk issues ID number• Amendments

– Required for any change in required information– Must file within 5 days (no specific penalty)

Treasurer DutiesTreasurer Duties

• Principal officer – has virtually all duties• Authorize all expenditures, keep records• Track details of all contributions and

expenditures• File reports• Use best efforts to obtain donor info

(at least 1 documented written or oral attempt)

• Preserve committee records - 3 years

Contribution LimitationsContribution Limitations

Apply to Apply to CANDIDATES ONLYCANDIDATES ONLY!! SOS must adjust limits biennially (odd SOS must adjust limits biennially (odd

yrs)yrs) Primary & general combined – 1 Primary & general combined – 1

electionelection Limits apply to an election for an officeLimits apply to an election for an office

One cycle per term (2 years or 4 years) One cycle per term (2 years or 4 years) Limit increased to $6250 per cycleLimit increased to $6250 per cycle After General, all surplus can be After General, all surplus can be

combined for subsequent electioncombined for subsequent election


NO Limits on: NO Limits on: Total an individual can give to all Total an individual can give to all

candidatescandidates Total a candidate can receive from PACsTotal a candidate can receive from PACs Use of candidate’s own moneyUse of candidate’s own money

Foreign Contributions prohibited (Fed Foreign Contributions prohibited (Fed law)law)


Corporations and Labor OrganizationsCorporations and Labor Organizations

Prohibited – Contributions directly to candidatesProhibited – Contributions directly to candidates

Permitted –Permitted – Contributions to candidates from a segregated fundContributions to candidates from a segregated fund

Funded by voluntary contributions solicited from employees, Funded by voluntary contributions solicited from employees, shareholders, retirees and families of entity and its affiliates shareholders, retirees and families of entity and its affiliates

Contributions to support or oppose ballot measuresContributions to support or oppose ballot measures Contributions to Independent Expenditure committees Contributions to Independent Expenditure committees

(which make expenditures for candidates)(which make expenditures for candidates) ““Independent Expenditures” for candidates (Corp $$)Independent Expenditures” for candidates (Corp $$)

Disclosure for Campaign Lit & AdsDisclosure for Campaign Lit & Ads

For Candidates and “Independent For Candidates and “Independent Expenditures”Expenditures”

Disclosure Requirements:Disclosure Requirements: ““Paid for By” followed by the name of committeePaid for By” followed by the name of committee For Independent Expenditures, also disclose:For Independent Expenditures, also disclose:

The statement “Not authorized by candidate”The statement “Not authorized by candidate” Names of 3 largest contributors (during that year) Names of 3 largest contributors (during that year)

ExceptionsExceptions Items too small to fit disclosureItems too small to fit disclosure Candidate’s own signsCandidate’s own signs (assume paid by candidate) (assume paid by candidate)

Broadcast mediums – new specific requirementsBroadcast mediums – new specific requirements

Disclosure for Campaign Lit & AdsDisclosure for Campaign Lit & Ads

Must provide copy of Independent Must provide copy of Independent Expenditure Ads to candidate!Expenditure Ads to candidate!

Required for political committees and Required for political committees and organizations making “Independent organizations making “Independent Expenditures”Expenditures”

For an expenditure within 60 days before an For an expenditure within 60 days before an election relating to a candidate or officeelection relating to a candidate or office Must provide clear copy of the literature / ad to the Must provide clear copy of the literature / ad to the

candidate named or referencedcandidate named or referenced Must provide the copy within 24 hours of when Must provide the copy within 24 hours of when

submitted submitted for printing, mailing or broadcastfor printing, mailing or broadcast Not required to send copy to filing officerNot required to send copy to filing officer

(as required for “10K Notices”)(as required for “10K Notices”)

Independent Expenditures byIndependent Expenditures byCorp, LLC or Labor OrgsCorp, LLC or Labor Orgs

OverviewOverview Permits use of corporate $$ to influence Permits use of corporate $$ to influence

candidate elections if expenditures are candidate elections if expenditures are “independent”“independent”

Same definition of “independent expenditure” as Same definition of “independent expenditure” as for political committees (no coordination w/ for political committees (no coordination w/ candidate)candidate)

Entity must “register” only if cumulative Entity must “register” only if cumulative expenditures in a city or town exceeds $1,000expenditures in a city or town exceeds $1,000

Must file a notice of expenditure each time Must file a notice of expenditure each time exceed $1,000 in local races in a city or townexceed $1,000 in local races in a city or town


““Registration”Registration” Not the sameNot the same as for political committees! as for political committees!

(No Statement of Org or $500 Exemption Stmt)(No Statement of Org or $500 Exemption Stmt) Required only if cumulative expenditures in the Required only if cumulative expenditures in the

jurisdiction exceed $1,000 (not all one jurisdiction exceed $1,000 (not all one candidate)candidate)

Must register for each election cycle (if Must register for each election cycle (if >$1,000)>$1,000)

Not required before expenditure (within 5 days)Not required before expenditure (within 5 days) Use special registration form for IEs (MEM)Use special registration form for IEs (MEM)


Notices of Expenditures - Notices of Expenditures - File with Clerk each time expenditures File with Clerk each time expenditures

for city/town candidates exceeds $1000for city/town candidates exceeds $1000 Form in League ManualForm in League Manual

Must file within 24 hours after Must file within 24 hours after expenditureexpenditure Expenditure occurs when info is mailed, Expenditure occurs when info is mailed,

published, submitted or posted - not when paid!published, submitted or posted - not when paid! Clerk must make available to publicClerk must make available to public

Not required to post on Internet! (SOS is!)Not required to post on Internet! (SOS is!)


Categorize NoticesCategorize Notices – Is Entity Registered? – Is Entity Registered? If registered – mark as verified and file If registered – mark as verified and file If not registered – If not registered –

Categorize as “unverified” (and file)Categorize as “unverified” (and file) Must make reasonable effort to contact entityMust make reasonable effort to contact entity

If entity does not register within 5 days –If entity does not register within 5 days – Mark Notice as “delinquent”Mark Notice as “delinquent” ““Remove from public view”!Remove from public view”!

Public record! How? Public record! How?


Suggested ProceduresSuggested Procedures

Assign ID to each entity (“IE”, year, Assign ID to each entity (“IE”, year, #)#)

File registrations by entity (alpha)File registrations by entity (alpha) File “Notices” by date & office File “Notices” by date & office Categorize and track by recording Categorize and track by recording

date in spaces provideddate in spaces provided ““Remove” delinquent notices by Remove” delinquent notices by

placing in separate fileplacing in separate file


Enforcement of IE NoticesEnforcement of IE Notices Requires reasonable cause Requires reasonable cause

determinationdetermination City or town can make determination or City or town can make determination or

refer to SOS refer to SOS Use process in 16-924 used for other Use process in 16-924 used for other

campaign finance violationscampaign finance violations


Non-Profit Corporation Issue (“Dark Money”)Non-Profit Corporation Issue (“Dark Money”) Has no “income” from operations to make Has no “income” from operations to make

expendituresexpenditures Not required to register a committee – so do not Not required to register a committee – so do not

file Reports!file Reports! Non-profits being formed to make independent Non-profits being formed to make independent

expenditures – with no disclosure of source of $$expenditures – with no disclosure of source of $$

““Primary Purpose” IssuePrimary Purpose” Issue Cannot form for primary purpose of influencing Cannot form for primary purpose of influencing

elections - must register as political committeeelections - must register as political committee Difficult to prove “primary purpose” before Difficult to prove “primary purpose” before

electionelection


““Issue Advocacy” Expenditures Issue Advocacy” Expenditures Use of IE rules by CandidateUse of IE rules by Candidate Candidate forms a non-profit on a specific issueCandidate forms a non-profit on a specific issue Solicits donations or transfers surplus from Solicits donations or transfers surplus from

campaign committeescampaign committees Makes expenditures for Ads to promote issues Makes expenditures for Ads to promote issues

and accomplishments on that issueand accomplishments on that issue Does not mention opponent or solicit vote (not Does not mention opponent or solicit vote (not

influencing election)influencing election) Not required to register a committee and reportNot required to register a committee and report Not required to file IE registration or noticesNot required to file IE registration or notices No disclosure of source of funds, and No disclosure of source of funds, and

contribution limits not apply contribution limits not apply

Reporting Political Committee Reporting Political Committee Contributions & ExpendituresContributions & Expenditures

Who must file?Who must file? Every political committee that has Stmt Org on Every political committee that has Stmt Org on

filefile

What to file?What to file? Campaign Finance Report for the reporting periodCampaign Finance Report for the reporting period OROR - - a No Activity Statement (if had no activity) a No Activity Statement (if had no activity)

Content of ReportsContent of Reports Requirements in §16-915Requirements in §16-915 See CF Handbook of Instructions / FormsSee CF Handbook of Instructions / Forms


When to file? When to file? (Depends on what year it is!)(Depends on what year it is!) For an Election year (regular election scheduled)For an Election year (regular election scheduled)

June ReportJune Report Pre and Post Election reports (for Primary & General)Pre and Post Election reports (for Primary & General) Note: Preelection now due 4 days before election (Fridays)Note: Preelection now due 4 days before election (Fridays)

For a Year with No Scheduled ElectionFor a Year with No Scheduled Election January Report – file by Jan 31 of following year (in Elec yr)January Report – file by Jan 31 of following year (in Elec yr)

If a Special Election is calledIf a Special Election is called Election year reports dueElection year reports due When does report filing begin? Unclear! Reporting period? When does report filing begin? Unclear! Reporting period?


Where to file?Where to file? Each jurisdiction where committee registeredEach jurisdiction where committee registered UnlessUnless Standing Political Committee (only SOS) Standing Political Committee (only SOS)

Filing date?Filing date? Date of actual receipt in officeDate of actual receipt in office By Certified Mail – US postmark dateBy Certified Mail – US postmark date By Commercial Delivery (confirmation date)By Commercial Delivery (confirmation date)

If Due on Weekend/Holiday - Next business dayIf Due on Weekend/Holiday - Next business day

Office closed on Friday? Monday? Be Open?Office closed on Friday? Monday? Be Open?


Alternatives to ReportAlternatives to Report

No Activity StatementsNo Activity Statements IFIF NONO contributions or expenditures during reporting period contributions or expenditures during reporting period

Annual No Activity Statement Annual No Activity Statement (Candidate only)(Candidate only) IFIF

Committee remains active because has outstanding debtCommittee remains active because has outstanding debt Expects no activity during the next calendar yearExpects no activity during the next calendar year

File by January 31 for that yearFile by January 31 for that year Do not file reports or No Activity unless have activityDo not file reports or No Activity unless have activity

Candidate Notices of Receipt ofCandidate Notices of Receipt of$1000 Contribution - (“1K” Notices)$1000 Contribution - (“1K” Notices)

New 2013 New 2013 Notice from candidate committee of receipt of -Notice from candidate committee of receipt of -

Contribution of $1000 or more from a single source Contribution of $1000 or more from a single source within 20 days before electionwithin 20 days before election

Does not apply to cumulative contributions (AG Op) Does not apply to cumulative contributions (AG Op) File notice with filing officer within 72 hoursFile notice with filing officer within 72 hours

Candidate or clerk NOT required to send to other Candidate or clerk NOT required to send to other candidatescandidates

Clerk not required to post on WebClerk not required to post on Web Must include date, contributor, amount (on form)Must include date, contributor, amount (on form) Must disclose in next campaign finance reportMust disclose in next campaign finance report

Reporting SoftwareReporting Software

State ReportingState Reporting Web-based database application (2008)Web-based database application (2008) Committees enter data onlineCommittees enter data online Reports “filed” with passwordsReports “filed” with passwords Note – reporting schedules different in state systemNote – reporting schedules different in state system

(Special cover sheet for committees using state (Special cover sheet for committees using state system)system)

SOS software – discontinued 2008SOS software – discontinued 2008 Committees could track money and generate Committees could track money and generate

reportsreports AMCA / League explored taking over softwareAMCA / League explored taking over software

Reporting SoftwareReporting Software Online Database for Cities and TownsOnline Database for Cities and Towns

Phoenix developed and implemented Dec 2012Phoenix developed and implemented Dec 2012 Committees can enter activity onlineCommittees can enter activity online Provides electronic filing (now required in Phx)Provides electronic filing (now required in Phx) Reports post to web when filedReports post to web when filed Public can search for reports, contributorsPublic can search for reports, contributors Intend to make available to League & Intend to make available to League &

other cities and townsother cities and towns Added “10K” , IE and Candidate Notices Added “10K” , IE and Candidate Notices Changes completed - 2015!Changes completed - 2015!

SOS developing Statewide system SOS developing Statewide system

Reporting SoftwareReporting Software

Phoenix developed and implemented Dec Phoenix developed and implemented Dec 20122012 Committees can enter activity onlineCommittees can enter activity online Provides electronic filing (now required in Phx)Provides electronic filing (now required in Phx) Reports post to web when filedReports post to web when filed Public can search for reports, contributorsPublic can search for reports, contributors

Phoenix making improvements & adding Phoenix making improvements & adding NoticesNotices HB 2665 change (one committee for Prim & Gen) HB 2665 change (one committee for Prim & Gen)

required more changesrequired more changes Plan to provide to League & other cities and townsPlan to provide to League & other cities and towns When available? 2015! When available? 2015!

Financial DisclosureFinancial Disclosure

Distinguish from “campaign finance"Distinguish from “campaign finance" Campaign contributions and expensesCampaign contributions and expenses

vs.vs. Candidate’s personal financial informationCandidate’s personal financial information

Every city/town had to adopt standards (Did!)Every city/town had to adopt standards (Did!) Electronic filing Electronic filing notnot required for cities and required for cities and

townstowns Who must file?Who must file?

Local public officers (if held office at any time during Local public officers (if held office at any time during preceding calendar year)preceding calendar year)

AppointeesAppointees CandidatesCandidates

Financial DisclosureFinancial Disclosure When to File?When to File?

Public officers – by January 31 for prior yearPublic officers – by January 31 for prior year(Includes year after leave office, unless term ended in (Includes year after leave office, unless term ended in January!)January!)

Candidates - with nomination papersCandidates - with nomination papers Appointees - within 60 days of taking officeAppointees - within 60 days of taking office

Penalties for Failure (if “knowing”)Penalties for Failure (if “knowing”) Class 1 misdemeanorClass 1 misdemeanor $50 per day penalty up to $500$50 per day penalty up to $500 Note: not like campaign finance reports!Note: not like campaign finance reports!

Penalty not automaticPenalty not automatic Public Officer can file statement without payingPublic Officer can file statement without paying

Use Process in 16-924 to enforce (other CF Use Process in 16-924 to enforce (other CF violations)violations)

Campaign Finance 101Campaign Finance 101

End of Part 1End of Part 1

CANDIDATE ELECTIONSCANDIDATE ELECTIONS

Questions?Questions?