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 ¦ REFERENCE TITLE: clean elections amendments ¦
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 ¦                                          ¦
 ¦                                          ¦
 ¦                                          ¦
 ¦ State of Arizona                         ¦
 ¦ Senate                                   ¦
 ¦ Forty-sixth Legislature                  ¦
 ¦ First Regular Session                    ¦
 ¦ 2003                                     ¦
 ¦                                          ¦
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 ¦                SB 1299                   ¦
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 ¦             Introduced by                ¦
 ¦             Senator Waring               ¦
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AN ACT

AMENDING SECTIONS 16-901.01, 16-941 AND 16-942, ARIZONA REVISED STATUTES; REPEALING SECTION 16-944, ARIZONA REVISED STATUTES; AMENDING SECTIONS 16-945, 16-946, 16-947, 16-948, 16-950, 16-955, 16-956, 16-957, 16-958, 16-959 AND 16-961, ARIZONA REVISED STATUTES; RELATING TO THE CITIZENS CLEAN ELECTIONS ACT.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1. Subject to the requirements of article IV, part 1, section 1, subsection (6), Constitution of Arizona, section 16-901.01, Arizona Revised Statutes, is amended to read:

16-901.01. Limitations on certain unreported expenditures and contributions

A. For purposes of this chapter, "expressly advocates" means EITHER OF THE FOLLOWING:

1. Conveying a communication containing a phrase such as "vote for," "elect," "re-elect REELECT," "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) AND THAT COMPLIES WITH BOTH OF THE FOLLOWING:

(A) (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) (b) OCCURS in the sixteen-week period immediately preceding a general election.

B. 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.

Sec. 2. Subject to the requirements of article IV, part 1, section 1, subsection (6), Constitution of Arizona, section 16-941, Arizona Revised Statutes, is amended to read:

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

A. 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 16-954, 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 ELECTIONS fund described in this article.

B. Notwithstanding any law to the contrary, a nonparticipating candidate:

1. Shall not accept contributions in excess of an amount that is twenty percent PER CENT 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 16-905, subsections L through P and section 16-924.

2. BEGINNING WITH THE FIRST DAY OF THE QUALIFYING PERIOD, shall comply with section 16-958 regarding reporting IF THE CANDIDATE IS OPPOSED IN THE PRIMARY ELECTION BY A PARTICIPATING CANDIDATE WHO HAS FILED AN APPLICATION FOR CERTIFICATION OR IS OPPOSED IN THE GENERAL ELECTION BY A PARTICIPATING CANDIDATE WHO HAS FILED AN APPLICATION FOR CERTIFICATION, including filing reports with the secretary of state indicating whenever EITHER OF THE FOLLOWING OCCURS:

(A) (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 PER CENT of the original primary election spending limit applicable to a participating candidate seeking the same office. , or

(B) (b) 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 PER CENT of the original general election spending limit applicable to a participating candidate seeking the same office.

C. 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 agreed-upon 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.

D. Notwithstanding any law to the contrary, any person who makes independent expenditures related to a particular office cumulatively exceeding five hundred dollars 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.

Sec. 3. Subject to the requirements of article IV, part 1, section 1, subsection (6), Constitution of Arizona, section 16-942, Arizona Revised Statutes, is amended to read:

16-942. Civil penalties and forfeiture of office

A. 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.

B. 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. The penalty imposed by this subsection shall be doubled if the amount not reported for a particular election cycle exceeds ten percent PER CENT 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.

C. Any campaign finance report filed indicating a violation of section 16-941, subsections SUBSECTION A or B or section 16-941, subsection C, paragraph 1 involving an amount in excess of ten percent PER CENT 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.

D. Any participating candidate adjudged to have committed a knowing violation of section 16-941, subsection A or subsection 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.

E. UNLESS ANOTHER PENALTY IS SPECIFICALLY PRESCRIBED BY THIS ARTICLE, IF THE COMMISSION FINDS PURSUANT TO SECTION 16-957, SUBSECTION B THAT A PERSON HAS VIOLATED ANY PROVISION OF THIS ARTICLE AND REMAINS OUT OF COMPLIANCE, THE COMMISSION MAY ASSESS A CIVIL PENALTY OF NOT MORE THAN ONE THOUSAND DOLLARS FOR EACH VIOLATION. All civil penalties collected pursuant to this article shall be deposited into the fund.

Sec. 4. Repeal

Subject to the requirements of article IV, part 1, section 1, subsection (6), Constitution of Arizona, section 16-944, Arizona Revised Statutes, is repealed.

Sec. 5. Subject to the requirements of article IV, part 1, section 1, subsection (6), Constitution of Arizona, section 16-945, Arizona Revised Statutes, is amended to read:

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 PER CENT 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.

B. 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. A PARTICIPATING CANDIDATE SHALL FILE A CAMPAIGN FINANCE REPORT THAT SETS FORTH THE CANDIDATE'S COMMITTEE'S RECEIPTS AND DISBURSEMENTS. THE REPORT SHALL BE FILED WITH THE COMMISSION NOT MORE THAN SEVEN BUSINESS DAYS AFTER THE END OF THE QUALIFYING PERIOD AND SHALL BE COMPLETE THROUGH THE END OF THE QUALIFYING PERIOD. Any early contributions not spent by the end of the qualifying period shall be paid to the fund.

C. 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 16-941, subsection A, paragraph 2, provided that such contributions and monies are used solely to retire such debt.

Sec. 6. Subject to the requirements of article IV, part 1, section 1, subsection (6), Constitution of Arizona, section 16-946, Arizona Revised Statutes, is amended to read:

16-946. Qualifying contributions

A. During the qualifying period ELECTION CYCLE, a participating candidate may collect qualifying contributions, which shall be paid to the fund. A CANDIDATE SHALL NOT ACCEPT QUALIFYING CONTRIBUTIONS BEFORE THE CANDIDATE IS CERTIFIED AS A PARTICIPATING CANDIDATE PURSUANT TO SECTION 16-947.

B. To qualify as a "qualifying contribution," a contribution must be ALL OF THE FOLLOWING:

1. Made by a qualified elector as defined in section 16-121, who at the time of the contribution is registered in A QUALIFIED ELECTOR OF 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. ;

4. 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 AN EIGHT AND ONE-HALF INCH BY ELEVEN INCH 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, AND the date, and the printed name and signature of the solicitor.

C. 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 THE CANDIDATE SHALL SORT THE original reporting slip to SLIPS BY COUNTY, SHALL ALPHABETIZE THEM BY THE LAST NAME OF THE CONTRIBUTOR IN EACH COUNTY GROUP AND SHALL FILE THEM WITH the secretary of state shall excuse the candidate from disclosure of these contributions on campaign finance reports filed under article 1 of this chapter WHEN THE CANDIDATE APPLIES FOR CLEAN CAMPAIGN FUNDING PURSUANT TO SECTION 16-950. THE CANDIDATE SHALL REPORT THE TOTAL AMOUNT OF THE QUALIFYING CONTRIBUTIONS TENDERED TO THE SECRETARY OF STATE ON THE CAMPAIGN FINANCE REPORTS FILED UNDER ARTICLE 1 OF THIS CHAPTER.

Sec. 7. Subject to the requirements of article IV, part 1, section 1, subsection (6), Constitution of Arizona, section 16-947, Arizona Revised Statutes, is amended to read:

16-947. Certification as a participating candidate

A. 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 FORM SHALL INCLUDE A CAMPAIGN FINANCE REPORT FOR THE CANDIDATE AS PRESCRIBED BY SECTION 16-915. THE REPORT SHALL INCLUDE ALL CAMPAIGN ACTIVITY TO THE DATE OF FILING.

B. 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.

C. 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.

Sec. 8. Subject to the requirements of article IV, part 1, section 1, subsection (6), Constitution of Arizona, section 16-948, Arizona Revised Statutes, is amended to read:

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 SECTION 16-945 or 16-946.

B. A candidate may designate other persons with authority to withdraw funds MONIES 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.

C. 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.

D. 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.

E. A PARTICIPATING CANDIDATE MAY SPEND LAWFUL CONTRIBUTIONS AND CLEAN ELECTION MONIES THAT ARE RECEIVED UNDER THIS ARTICLE ONLY FOR REASONABLE AND NECESSARY EXPENSES THAT ARE DIRECTLY RELATED TO THE CAMPAIGN OF THAT PARTICIPATING CANDIDATE AND SHALL NOT MAKE ANY EXPENDITURE THAT IS PRIMARILY FOR THE PERSONAL USE OF THE PARTICIPATING CANDIDATE.

F. IF THE COMMISSION FINDS THAT A PARTICIPATING CANDIDATE HAS VIOLATED SUBSECTION E OF THIS SECTION, THE COMMISSION SHALL NOTIFY THE CANDIDATE AND ORDER THE CANDIDATE TO PAY TO THE CITIZENS CLEAN ELECTIONS FUND AN AMOUNT EQUAL TO THE FULL AMOUNT USED IN VIOLATION OF SUBSECTION E OF THIS SECTION AND ANY CIVIL PENALTY IMPOSED BY THE COMMISSION.

Sec. 9. Subject to the requirements of article IV, part 1, section 1, subsection (6), Constitution of Arizona, section 16-950, Arizona Revised Statutes, is amended to read:

16-950. Qualification for clean campaign funding

A. 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.

B. 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.

C. THE SECRETARY OF STATE SHALL DISQUALIFY ANY REPORTING SLIPS RECEIVED THAT ARE ANY OF THE FOLLOWING:

1. NOT SIGNED BY A CONTRIBUTOR.

2. NOT DATED.

3. NOT DATED DURING THE QUALIFYING PERIOD.

4. DATED BEFORE THE DATE THE CANDIDATE WAS CERTIFIED PURSUANT TO SECTION 16-947.

5. DUPLICATES OF REPORTING SLIPS OF AN IDENTICAL CONTRIBUTOR TO THE SAME CANDIDATE.

D. IF THE NUMBER OF REPORTING SLIPS REMAINING FOR THAT CANDIDATE AFTER DISQUALIFICATIONS PURSUANT TO SUBSECTION C OF THIS SECTION IS LESS THAN THE MINIMUM NUMBER REQUIRED FOR CERTIFICATION, THE CANDIDATE MAY MAKE ONE SUPPLEMENTAL FILING OF ADDITIONAL QUALIFYING CONTRIBUTIONS PURSUANT TO SUBSECTION F OF THIS SECTION.

C. E. IF THE NUMBER OF REPORTING SLIPS REMAINING IS AT LEAST THE MINIMUM NUMBER REQUIRED TO QUALIFY THE CANDIDATE FOR FUNDING, the secretary of state shall select at random a sample of five percent of the number of non-duplicative names on the list and TWENTY-FIVE PER CENT OF THE REPORTING SLIPS FOR A CANDIDATE FOR THE LEGISLATURE AND FIVE PER CENT FOR A CANDIDATE FOR A STATEWIDE OFFICE AND SHALL forward facsimiles of the selected reporting slips to the county recorder RECORDERS for the counties of the addresses specified in the selected slips. Within ten CALENDAR days, the county recorders shall COMPARE THE REPORTING SLIP AND THE CONTRIBUTOR'S SIGNATURE TO THE CONTRIBUTOR'S VOTER REGISTRATION FORM AND 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 A QUALIFIED ELECTOR OF THE ELECTORAL DISTRICT OF THE OFFICE THE CANDIDATE IS SEEKING, 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 FOR EACH CANDIDATE FOR A STATEWIDE OFFICE AND SHALL MULTIPLY THE NUMBER OF SLIPS NOT DISQUALIFIED BY FOUR FOR EACH CANDIDATE FOR THE LEGISLATURE, and if the result is greater than one hundred and ten percent PER CENT of the quantity required, shall approve the candidate for funds, and if the result is less than ninety percent PER CENT of the quantity required, shall deny the application for funds. Otherwise,

F. IF THE SECRETARY OF STATE DETERMINES PURSUANT TO SUBSECTION E OF THIS SECTION THAT THE RESULT OF THE RANDOM SAMPLE VERIFICATION IS AT LEAST NINETY PER CENT AND NOT MORE THAN ONE HUNDRED TEN PER CENT OF THE NUMBER OF SLIPS NEEDED TO QUALIFY FOR FUNDING, 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 WITHIN TEN CALENDAR DAYS in accordance with the process above. IF THE COUNTY RECORDER HAS VERIFIED ALL OF THE CANDIDATE'S REPORTING SLIPS AND THE NUMBER OF VALID SLIPS IS INSUFFICIENT TO QUALIFY THE CANDIDATE FOR FUNDING AND IF THE CANDIDATE HAS NOT MADE A SUPPLEMENTAL FILING PURSUANT TO SUBSECTION D OF THIS SECTION, THE CANDIDATE MAY MAKE ONLY ONE SUPPLEMENTAL FILING OF ADDITIONAL QUALIFYING CONTRIBUTION REPORTING SLIPS AND QUALIFYING CONTRIBUTIONS TO THE SECRETARY OF STATE. THE SECRETARY OF STATE SHALL ACCEPT THE SUPPLEMENTAL FILING OF QUALIFYING CONTRIBUTION REPORTING SLIPS AND QUALIFYING CONTRIBUTIONS ONLY 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 PERSONS WHO HAVE PREVIOUSLY CONTRIBUTED TO THAT CANDIDATE.

3. THE PERIOD FOR FILING QUALIFYING CONTRIBUTION SLIPS HAS NOT EXPIRED.

G. ON RECEIPT OF SUPPLEMENTAL CONTRIBUTIONS AND REPORTING SLIPS THAT COMPLY WITH SUBSECTION F OF THIS SECTION, THE SECRETARY OF STATE SHALL FORWARD FACSIMILES OF ALL OF THE SUPPLEMENTAL SLIPS TO THE COUNTY RECORDERS FOR THE COUNTY OF THE CONTRIBUTORS' ADDRESSES AS SHOWN ON THE REPORTING SLIPS. THE COUNTY RECORDER SHALL VERIFY ALL OF THE SUPPLEMENTAL REPORTING SLIPS WITHIN TEN CALENDAR DAYS AFTER RECEIPT OF THE FACSIMILES AND SHALL PROVIDE A REPORT TO THE SECRETARY OF STATE THAT IDENTIFIES AS DISQUALIFIED ANY SLIPS THAT THE RECORDER IS UNABLE TO VERIFY AS MATCHING A PERSON WHO IS A QUALIFIED ELECTOR OF THE ELECTORAL DISTRICT OF THE OFFICE THE CANDIDATE IS SEEKING ON THE DATE SPECIFIED ON THE SLIP. 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 CLEAN CAMPAIGN FUNDING.

D. H. To qualify FOR THE SECRETARY OF STATE TO APPROVE A CANDIDATE for clean campaign funding, a candidate must have been approved as a participating candidate pursuant to section 16-947 and have obtained the following number 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.

E. I. To qualify FOR THE SECRETARY OF STATE TO APPROVE A CANDIDATE 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.

Sec. 10. Subject to the requirements of article IV, part 1, section 1, subsection (6), Constitution of Arizona, section 16-955, Arizona Revised Statutes, is amended to read:

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.

B. The commission on appellate court appointments shall nominate candidates for vacant commissioner positions SHALL BE PERSONS 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.

C. 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-highest-ranking 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.

D. 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 FEBRUARY 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.

E. 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.

F. If a commissioner does not complete his or her THE COMMISSIONER'S term of office for any reason, the commission on appellate court appointments shall nominate one slate of three candidates as soon as 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 AFTER THE VACANCY OCCURS. 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.

G. 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.

H. 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.

I. A member of the commission shall serve no more than one term and is not eligible for reappointment. No commissioner, during his or her THE COMMISSIONER'S 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.

J. 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.

Sec. 11. Subject to the requirements of article IV, part 1, section 1, subsection (6), Constitution of Arizona, section 16-956, Arizona Revised Statutes, is amended to read:

16-956. Voter education and enforcement duties

A. 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".

(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 E and E F.

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.

B. 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.

C. 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.

D. 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 16-950, subsection D H, by no more than twenty per cent of the number applicable for the preceding election.

Sec. 12. Subject to the requirements of article IV, part 1, section 1, subsection (6), Constitution of Arizona, section 16-957, Arizona Revised Statutes, is amended to read:

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.

B. 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. THE ALLEGED VIOLATOR MAY APPEAL THE COMMISSION'S ACTION PURSUANT TO TITLE 41, CHAPTER 6, ARTICLE 10.

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.

Sec. 13. Subject to the requirements of article IV, part 1, section 1, subsection (6), Constitution of Arizona, section 16-958, Arizona Revised Statutes, is amended to read:

16-958. Manner of filing reports

A. Any person who has previously reached the dollar amount specified in section 16-941, subsection D for filing an original report THE FOLLOWING PERSONS shall file a supplemental report each time previously unreported independent expenditures specified by that SECTION 16-941, subsection D exceeds EXCEED one thousand dollars: .

1. A NONPARTICIPATING CANDIDATE WHO IS OPPOSED IN THE PRIMARY ELECTION BY A PARTICIPATING CANDIDATE WHO HAS BEEN CERTIFIED.

2. A NONPARTICIPATING CANDIDATE WHO IS OPPOSED IN THE GENERAL ELECTION BY A PARTICIPATING CANDIDATE WHO HAS BEEN CERTIFIED.

3. ANY PERSON WHO HAS PREVIOUSLY REACHED THE DOLLAR AMOUNT SPECIFIED IN SECTION 16-941, SUBSECTION D FOR FILING AN ORIGINAL REPORT.

B. Any person who has previously reached the dollar amounts specified in section 16-941, 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 PER CENT of the original primary election spending limit or twenty-five thousand dollars, whichever is lower, before the general election period, or (2) ten percent PER CENT 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 C of this section and shall identify the dollar amount being reported, the candidate, and the date.

B. C. A NONPARTICIPATING CANDIDATE WHO IS OPPOSED IN THE PRIMARY ELECTION BY A PARTICIPATING CANDIDATE WHO HAS FILED FOR CERTIFICATION, A NONPARTICIPATING CANDIDATE WHO IS OPPOSED IN THE GENERAL ELECTION BY A PARTICIPATING CANDIDATE WHO HAS FILED FOR CERTIFICATION OR 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 OR B 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.

C. D. 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 C 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.

D. E. 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.

E. F. 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. A REPORT FILED PURSUANT TO THIS SECTION SHALL INCLUDE THE NAME OF THE CANDIDATE, THE DOLLAR AMOUNT BEING REPORTED AND THE DATE.

F. G. 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.

Sec. 14. Subject to the requirements of article IV, part 1, section 1, subsection (6), Constitution of Arizona, section 16-959, Arizona Revised Statutes, is amended to read:

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:

1. Section 16-941, subsection A, paragraph 2 or subsection D.;

2. Section 16-942, subsection B.; section 16-944;

3. Section 16-945, subsection A, paragraphs 1 and 2.;

4. Section 16-948, paragraph SUBSECTION C.;

5. Section 16-954, subsection B.;

6. Section 16-955, subsection G.; and

7. Section 16-961, subsections G and H.

B. 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.

C. 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.

B. D. 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.

Sec. 15. Subject to the requirements of article IV, part 1, section 1, subsection (6), Constitution of Arizona, section 16-961, Arizona Revised Statutes, is amended to read:

16-961. Definitions

A. 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, AFTER THE IMMEDIATELY PRECEDING GENERAL ELECTION and ending seventy-five SIXTY days before the day of the general PRIMARY 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.

3. 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.

D. "Commission" means the citizens clean elections commission established pursuant to section 16-955.

E. "Fund" means the citizens clean election ELECTIONS fund defined by this article.

F. 1. "Party nominee" means a person who has been nominated by a political party pursuant to sections SECTION 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.

G. "Primary election spending limits" means:

1. For a candidate for legislature, ten thousand dollars.

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.

H. "General election spending limits" means amounts fifty percent PER CENT greater than the amounts specified in subsection G of this section.

I. 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.

Sec. 16. Requirements for enactment; three-fourths vote

Pursuant to article IV, part 1, section 1, subsection (6), Constitution of Arizona, this act is effective only on the affirmative vote of at least three-fourths of the members of each house of the legislature.