Chapter 4 – Campaign Expenses – AZ League Data Portal

CHAPTER 4 – CAMPAIGN EXPENSES

CHAPTER 7 – CAMPAIGN EXPENSES

This Chapter addresses the reporting requirements for campaign expenses.^1a ^1b

The Arizona Constitution, article 7, § 16, requires the Legislature at its
first session “to enact a law providing for a general publicity, before
and after election, of all campaign contributions to, and expenditures
of campaign committees and candidates for public office.” This
provision requires disclosure of campaign monies, as established in
state law.

Moreover, under article 13, § 2, a charter city may have additional requirements relating to campaign monies. If you are in a charter city, review your charter for any additional requirement relating to campaign finance.

Campaign Expenses of Candidate Committees

Campaign Expenses of Candidate Committees²

State law requires city and town candidates who receive or expend, in any combination, $500 or more to register as a candidate committee and account for all monies or things of value received and expended by them, their campaign committee or individuals on behalf of a person’s candidacy for public office.^3a ^3b For example, if a city or town candidate receives $300 and spends $200, the total amount is $500 and the candidate is required to register as a candidate committee. Any total combination of contributions or expenditures that remains below $500 does not trigger registration requirement.⁴

Once a city or town candidate receives contributions or makes expenditures, in any combination, of $500, the candidate must also file a Statement of Organization with the clerk within 10 days of reaching the $500 threshold.⁵

A candidate may only have one candidate committee⁶ in existence for the same office during the same election cycle.⁷ For example, a candidate may have a candidate committee open for a council seat and another committee open for statewide office because these are 2 separate offices.⁸

Campaign Expenses of Political Action Committees (PACs)

In addition to the candidate committee requirement above, an entity may also be required to register as a political action committee if both of the following apply:

The entity is organized for the primary purpose of influencing the result of an election.
The entity knowingly receives contributions or makes expenditures, in any combination, of at least $1,400 ($1,500 on January 1, 2025, and $1,600 on January 1, 2027^9a ^9b) in connection with any election during a calendar year.

To determine the “primary purpose” of an entity, the clerk or city or town attorney must make a rebuttable presumption¹⁰ that the entity is organized for the primary purpose of influencing the result of an election, which means the entity meets any of the following:

Except for a religious organization, assembly, or institution,¹¹ claims tax exempt status but had not filed or Form 1024 with the Internal Revenue Service (IRS), or the equivalent successor form designated by the IRS, before making a contribution or expenditure;
Made a contribution or expenditure and, at that time, had its tax-exempt status revoked by the IRS; or
Made a contribution or expenditure and, at that time, failed to file Form 990 with the IRS or the equivalent successor form designated by the IRS, if required by law.¹²

Except for the requirements applying to candidate and PAC registration and the enforcement officer’s actions following a reasonable cause determination, if a 501(a) entity in good standing with the IRS is not registered as a political action committee, the clerk, attorney, or any other municipal officer is prohibited from requiring the entity to do any of the following:

Register or file as a political action committee;
Report or otherwise disclose personally identifying information relating to individuals who have made contributions to that entity;
Disclose its Schedule B, Form 990; or
Submit to an audit or subpoena or produce evidence regarding a potential campaign finance violation.¹³

Statement of Organization (Candidate Committees and Political Action Committees)

The Statement of Organization of a candidate committee or political action committee^14a ^14b ^14c must include the following:

The name, mailing address, e-mail address, website, if any, telephone number, if any, and type of committee.
The name, mailing address, e-mail address, website, if any, and telephone number of any sponsoring organization.
The names, physical locations or street addresses, e-mail addresses, telephone numbers, occupations and employers of the chairman and treasurer of the committee. (In the case of a candidate committee, the candidate can be both chairman and treasurer.)
In the case of a candidate’s committee, the name, mailing address, e-mail address, website, if any, telephone number, and party affiliation of the candidate. Party affiliation is not required for nonpartisan elections. Also, the candidate must provide the office sought only if the candidate has a candidate committee open for more than one office.
The name, physical location or street address, e-mail address, telephone number, occupation, and employer of the committee’s chairperson and treasurer. For a candidate committee, the candidate may serve as both the chairperson and treasurer.
A listing of all banks or financial institutions used by the committee. Bank account numbers should not be listed.¹⁵
A statement that the chairman and treasurer have read the 2025-2026 Campaign Finance Guide (PAC)* published by the Secretary of State and agree to comply with campaign finance laws and agree to accept all notifications and service of process via the e-mail address provided by the committee.

When filing the Statement of Organization* with the clerk, each candidate or political action committee must sign and file with the clerk a statement to indicate that the candidate has read the Secretary of State’s 2025-2026 Campaign Finance Guide (Candidates)*, agrees to comply with campaign finance laws, and agrees to accept all notifications and service of process via the e-mail address provided by the committee.¹⁶

Upon filing a Statement of Organization*, a political action committee is issued an identification number by the clerk and may perform any lawful activity (including making contributions, making expenditures or conducting issue advocacy) without establishing a separate committee for each activity or specifying each activity in its Statement of Organization.¹⁷

Committees are required to file an amended Statement of Organization* within 10 days of a change in the information required as outlined above.¹⁸

Campaign Contributions Limits

Campaign contribution limits¹⁹ were established by a 1986 voter initiative and have been increased throughout the years. These amounts automatically increase in January of every odd numbered year.²⁰

The use of a candidate’s personal monies is not subject to the contribution limitations.^21a ^21b ^21c Campaign contributions, however, are limited and those limits apply to each “election cycle”.^22a ^22b ^22c

As of January 1, 2025, the limits will increase to $6,750 and $13,200 respectively.²³

The campaign contribution limits will then automatically increase on January 1 of every odd-numbered year as follows:

As of January 1, 2027, the limits will increase to $6,850 and $13,300 respectively.
As of January 1, 2029, the limits will increase to $6,950 and $13,400 respectively.²⁴

An Attorney General’s Opinion states that a candidate may not accept contributions that exceed the limitations in effect on the date that the contribution is made even if the election is more than 2 years away and the candidate assumes the limitations will be increased.²⁵

Prohibited Candidate Contributions

A candidate committee is prohibited from making contributions to a candidate committee for another candidate (unless terminating the committee, and under very limited conditions, – see Surplus Monies).

A local candidate committee is prohibited from transferring any committee monies directly to a statewide or legislative committee.^{26a 26b}

Campaign Finance Forms & Deadlines in General

State law requires the Secretary of State Elections Procedures Manual to prescribe the format for all Campaign Finance Reports* and statements.²⁷

Filing deadlines for the Campaign Finance Report* and statements are set by statute and the Secretary of State Elections Procedures Manual.²⁸

Prior to 2021, the State would move filing deadlines that fell on Sundays and legal holidays to the next business day.^29a ^{29b 29c} ^29d In 2021, the legislature adopted a state law that strictly prohibits modifying any deadline, filing date, submittal date or other statutory election-related date unless required by a court order.³⁰ This restriction applies to all officers and agents of the state, cities, towns, and all other governmental entities. Violations may be subject to a Class 6 felony.

CAMPAIGN FINANCE FILING DEADLINES – POLITICAL ACTION COMMITTEES

Quarterly Campaign Finance Reports

A candidate committee for a legislative, county, city or town candidate shall file campaign finance reports covering each reporting period as follows:

1. An Annual Campaign Finance Report* that is filed for each year other than the year of the general election for the office that candidate is seeking. For a city or town candidate, the year of the city’s or town’s second, runoff or general election for the office that candidate is seeking, however designated by the city or town, is deemed the year of the general election for that candidate. An annual report shall be complete through the end of the calendar year and shall be filed not later than January 15.

2. A Quarterly Campaign Finance Report* that is filed for each calendar quarter in the year of the general election for the office that candidate is seeking. A quarterly report shall be filed not later than the 15th day of the month after the calendar quarter.

3. In addition to the quarterly reports for the year of the general election for the office that candidate is seeking as prescribed above, a Post-Primary Campaign Finance Report* that is complete through the primary election and that is filed not later than 15 days after the primary election. For a city or town candidate, the first or primary election for the office that candidate is seeking, however designated by the city or town, is deemed the primary election for that office. A post-primary report shall be complete through the primary election and shall be filed not later than 15 days after the primary election.³¹

Quarterly Campaign Finance Reports* are due even if the political action committee did not receive any contribution or make any expenditure during the reporting period. If there is no financial activity during the reporting period from the immediately preceding Campaign Finance Report*, the committee must file the report and reflect the same amounts carried forward from the previous report in the Financial Summary on the Campaign Finance Report* and the committee must check the box at the bottom of the form that indicates there was no financial activity.^32a ^32b

Pre- and Post- Election Campaign Finance Report

For a calendar quarter³³ with an election at which any candidate, measure, question or proposition appears on the ballot, a political action committee or political party must also file the following Pre- and Post-Election Campaign Finance Report*s:³⁴

No less than 10 days before any election, a Pre-Election Campaign Finance Report* that is complete from the first day of the applicable calendar quarter through the 17^th day before the election;³⁵ and
No later than 15 days after the applicable quarter, a Post-Election Campaign Finance Report* that is complete from the 16^th day before the election through the last day of the applicable calendar quarter.³⁶

Reports in connection with special, recall or runoff elections must conform to the same filing deadlines set forth above and are based on the election dates.

Reports are deemed to be filed under the penalty of perjury by the committee treasurer and there is no statutory requirement for reports to require a signature; however, the Secretary of State Elections Procedures Manual requires the treasurer’s signature on page 2 of the Campaign Finance Report*.

Campaign Finance Filing Deadlines – Candidate Committees

A candidate committee is responsible for filing Campaign Finance Reports* for any election occurring within the 12 months preceding the candidate’s election.³⁷ Specifically, a candidate committee must file a Campaign Finance Report* during the 4 calendar quarters comprising the 12-month period preceding the general election for the office for which the candidate is seeking election – or for cities and towns, the city or town’s second, runoff or general election (as designated by the city or town).³⁸

For example, if a city or town has a candidate election scheduled on August 2, 2024, the candidate committee must file Quarterly Campaign Finance Reports during the 12 months preceding the November 2024 (scheduled general or runoff) election.

Additionally, if a special election is held on March 8, 2024, for another office or a measure, issue or question, the candidate running in the August 2, 2024, election is within their one-year reporting period and is required to file the pre- and post-election Campaign Finance Report* for the March special election. Reports in connection with special, recall or runoff elections must conform to the same filing deadlines set forth above.

Following the reporting period, if the candidate serves a 4-year term, the next Campaign Finance Report* is not due until January 2028. If a special election is held between 2025 and 2027, but it is not within the 12 months preceding the candidate’s election for that office, these specific candidates are not required to file a Campaign Finance Report*.

Schedules for Campaign Finance Reports* are included in Chapter 8 for both election years and non-election years; however, it is very important to follow the advice of your legal counsel regarding any deadline.

Campaign Finance Reports – Requirements For All Committee Types

The information that must be disclosed for each Campaign Finance Report* is fully described in A.R.S. § 16-926(B). In summary, the information required includes:

The amount of cash on hand at the beginning of the reporting period.
For the reporting period and the election, the total amount of all receipts and an itemized list of all receipts in the following categories, including the source, amount, and date of receipt, together with the total of all receipts in each category:
- Contributions from in-state individuals whose contributions exceed $100 for that election cycle, including identification of the contributor’s occupation and employer. Notwithstanding A.R.S. § 16-901(29)(a), a person whose residential address is protected from public disclosure pursuant to A.R.S. § 16-153 is not required to disclose the person’s residential address and must instead provide an alternative mailing address.
- Contributions from out-of-state individuals, including identification of the contributor’s occupation and employer.
- Contributions from candidate committees.
- Contributions from political action committees.
- Contributions from political parties.
- Contributions from partnerships.
- For a political action committee or political party, contributions from corporations or limited liability companies (LLC), including identification of the corporation’s or LLC’s file number issued by the Arizona Corporation Commission.
- For a political action committee or political party, contributions from labor organizations, including identification of the labor organization’s file number issued by the Arizona Corporation Commission.
- For a candidate’s campaign committee, the candidate’s contribution of personal monies.
- All loans, including identification of any endorser or guarantor other than a candidate’s spouse, and the contribution amount endorsed or guaranteed by each.
- Rebates and refunds.
- Interest on committee monies.
- The fair market value of in-kind contributions received.
The aggregate number of contributions from all in-state individuals whose contributions do not exceed $100 for the election cycle.
For the reporting period and the election, an itemized list of disbursements exceeding $250, including the recipient, the recipient’s address, a description of the disbursement and the amount and date of the disbursement, together with the total of all disbursements in each category:
- Disbursements for operating expenses.
- Contributions to candidate committees.
- Contributions to PACs.
- Contributions to political parties.
- Contributions to partnerships.
- For a political action committee or political party, contributions to corporations or LLCs, including identification of the corporation’s or LLC’s file number issued by the Arizona Corporation Commission.
- For a political action committee or political party, contributions to labor organizations, including identification of the labor organization’s file number issued by the Arizona Corporation Commission.
- Repayment of loans.
- Refunds of contributions.
- Loans made.
- The value of in-kind contributions provided.
- Independent expenditures that are made to advocate the election or defeat of a candidate, including identification of the candidate, office sought by the candidate, election date, mode of advertising and distribution or publication date.
- Expenditures to advocate the passage or defeat of a ballot measure, including identification of the ballot measure, ballot measure serial number, election date, mode of advertising and distribution or publication date.
- Expenditures to advocate for or against the issuance of a recall election order or for the election or defeat of a candidate in a recall election, including identification of the officer to be recalled or candidate supported or opposed, mode of advertising and distribution or publication date.
- Any other disbursements or expenditures.
The total sum of all receipts and disbursements for the reporting period, including a line to aggregate any expenditures under $250.
A certification by the committee treasurer, issued under penalty of perjury, that the contents of the report are true and correct.

For reporting purposes:

A contribution is deemed to be received either on the date the committee knowingly takes possession of the contribution or on the date of the check or credit card payment. For an in-kind contribution of services, the contribution is deemed made either on the date the services are performed or the date the committee receives the services.
An expenditure or disbursement is deemed made either on the date the committee authorizes the monies to be spent or the date the monies are withdrawn from the committee’s account. For a transaction by check, the expenditure or disbursement is deemed made on the date the committee signs the check. For a credit card transaction on paper, the expenditure or disbursement is deemed made on the date the committee signs the authorization to charge the credit card. For an electronic transaction, an expenditure or disbursement is deemed made on the date the committee electronically authorizes the charge. For an agreement to purchase goods or services, the expenditure or disbursement is deemed made either on the date the parties enter into the agreement or the date the purchase order is issued.
A committee may record its transactions using any of the methods authorized by this subsection but for each type of contribution, expenditure or disbursement made or received, the committee must use a consistent method of recording transactions throughout the election cycle.

Other reporting categories:

In-kind contribution of services must be equal to the usual and normal charges for the services on the date performed. If any receipt or disbursement is earmarked, the committee must report the identity of the person to whom the receipt or disbursement is earmarked.

Independent Expenditure/Ballot Measure Expenditures

An independent expenditure means an expenditure by a person, other than a candidate committee, that “expressly advocates” the election or defeat of a clearly identified candidate and is not made in cooperation or consultation with or at the request or suggestion of the candidate or the candidate’s agent.³⁹ A ballot measure expenditure means an expenditure made by a person that “expressly advocates” the support or opposition of a clearly identified ballot measure.⁴⁰ The definition of “expressly advocates” is defined in statute.⁴¹

An entity that makes an independent expenditure or ballot measure expenditure in excess of $1,000 during a reporting period must file an expenditure report (using the Campaign Finance Report form) with the clerk for the applicable reporting period, even though the entity may not be required to file a Statement of Organization.⁴² The Secretary of State has prescribed a Statement of Registration form for these entities to use when submitting their report.⁴³ This form is only for use by the Secretary’s Office to register the person into their online campaign finance system and is optional for cities and towns.

Expenditure reports must identify the candidate or ballot measure supported or opposed, office sought by the candidate, if any, election date, mode of advertising and first date of publication, display, delivery, or broadcast of the advertisement. This information is reflected in Schedule B(6) of the Campaign Finance Report and a person reporting independent expenditures can submit this schedule along with the cover sheet. No other reporting information is required.

Termination of Political Action Committees

Termination of Political Action Committees⁴⁴

A political action committee may terminate after addressing any surplus or debts and obligations. Under any other conditions and for all other committees, a political action committee may terminate only when the committee treasurer files a Termination Statement⁴⁵ with the clerk certifying that it will no longer receive any contributions or make any disbursements; that the committee has no outstanding debts or obligations (or has outstanding debts or obligations, or both, that are all more than 5 years old and have been discharged by the creditors) and that any surplus monies were disbursed and the committee has no cash on hand, and all contributions and expenditures have been reported, including any disposal of surplus monies.⁴⁶

When a clerk becomes aware that a committee no longer has any outstanding debts and obligations, a Termination Statement should be sent to the treasurer encouraging termination of the committee. If a standing committee terminates its activities in a jurisdiction but remains active in others the committee must file a statement of that intent in each reporting jurisdiction.⁴⁷

The clerk may reject the Termination Statement if it appears to the clerk that the requirements have not been satisfied. For example, if a committee still has debts or obligations, the committee must remain open, and reports must continue to be filed. Check with your attorney for additional guidance prior to rejecting a Termination Statement.

After a Termination Statement is filed, a committee is not required to file any subsequent Campaign Finance Reports and will have no further receipts and disbursements without filing a new Statement of Organization.

Committee Disposal of Surplus Monies

A committee must dispose of surplus monies⁴⁸ as follows:

Return surplus monies to the contributor to the extent records are available permitting such return.
Contribute surplus monies pursuant to Article 1.2 of Title 16, Chapter 6, which is any contribution that is not otherwise prohibited by law.
Donate the surplus monies to a nonprofit organization that has tax exempt status under Section 501(c)(3) of the United States Internal Revenue Code.
In the case of a statewide or legislative candidate committee, transfer surplus monies to the candidate’s officeholder expense account.
For a candidate committee, contribute surplus monies to a candidate committee for ANOTHER candidate under the following conditions:
1. The candidate committee makes the contribution after the nomination paper filing deadline.⁴⁹
2. The candidate associated with the committee making the contribution did not file a nomination paper to run for election in the current election cycle.
3. For transfer to a legislative candidate committee, the contribution cannot be made when the Legislature is in regular session.
4. The candidate committee makes the contribution within the individual contribution limits.⁵⁰
The use of surplus monies cannot be used for or converted to personal use.

Additional information about repayment of debts (fundraising, forgiveness) can be found in the Secretary’s Campaign Finance – Candidate Guide.

Campaign Finance Complaints – Enforcement Authority

Campaign Finance Complaints – Enforcement Authority^51a ^51b

When a campaign finance complaint⁵² is received from a third party, the clerk is authorized to initiate an investigation into alleged violations of campaign finance laws, including the alleged failure to register as a committee. The clerk cannot initiate a complaint.⁵³ The complaint must be made in writing, signed by a human being and submitted to the applicable filing officer for campaign finance reports. Email submissions are acceptable. See A.R.S. § 16-938(B).

Since September 2025, A.R.S. 16-938(A) specifically prohibits a filing officer from accepting a campaign finance complaint from a third party unless it is filed with evidence that the complainant is an identifiable human being. Per the 2025 Secretary of State’s Elections Procedure Manual, this requirement means the complaint must contain the full name, email address, mailing address, physical address, and phone number of the complainant ias proof that the complainant is an identifiable human being.

A complaint should also:

Clearly recite the facts that describe a violation of Arizona campaign finance law under the filing officer’s jurisdiction as specifically as possible (citations to the law are highly encouraged);
Clearly identify each person, committee, organization or group that is alleged to have committed a violation;
Include any supporting documentation (such as sworn affidavits from persons with first-hand knowledge, media reports, advertisements, website links, etc.) supporting the alleged violation, if available; and
Differentiate between statements based on a complainant’s personal knowledge and those based on information and belief. Statements not based on personal knowledge should identify the source of the information.

Complaints should be filed as soon as possible after the alleged violation becomes known to the complainant in order to preserve available evidence and initiate the enforcement process within the four-year statute of limitations period. See A.R.S. § 12-550. A filing officer must retain candidate filings, including campaign finance filings, based on the applicable record retention schedule.

The clerk must limit investigation to alleged violations within the city or town. If the clerk declares a conflict of interest, the law allows the clerk to refer the investigation to any other clerk in the state who agrees to accept the referral. It is recommended that this course of action be discussed with your attorney prior to any referral and arranged before any campaign finance complaints are filed.

The Secretary of State is required to establish guidelines in the State Elections Procedures Manual to outline the procedures, timelines and other processes that apply to investigations by all filing officers in Arizona.⁵⁴

Prior to finding reasonable cause, the clerk is prohibited from requiring a person to register as a committee and cannot audit or subpoena the person to compel production of evidence or the attendance of witnesses. The clerk may request the voluntary production of evidence or attendance of witnesses in making a reasonable cause determination after a complaint is filed.

After reviewing the complaint, if the clerk believes there is reasonable cause that a person violated campaign finance laws, the clerk must refer the matter to the city or town attorney.

Once the referral is made from the clerk to the city or town attorney, the attorney may:

Conduct an investigation, including using subpoena powers granted to the officer except that a person must not be compelled to file Campaign Finance Reports unless that attorney has determined the person is a committee.
Serve the alleged violator with a Notice of Violation. The notice must state with reasonable particularity:
- The nature of the violation;
- The fine or penalty imposed;
- Require compliance within 20 days after the date of issuance of the notice.
  
  The attorney must impose a presumptive civil penalty equal to the value or amount of money that has been received, spent, or promised in violation of the campaign finance laws. A Finding of Special Circumstance by the attorney allows a penalty of up to 3 times the amount of the presumptive civil penalty based on the severity, extent, or willful nature of the alleged violation. If the Notice of Violation requires a person to file Campaign Finance Reports, the reports are not required to be filed until the attorney’s Notice of Violation has been upheld after any timely appeal.
1. Keep any nonpublic information gathered by the attorney during the committee status investigation confidential until the final disposition of any appeal to the attorney. “Nonpublic” is undefined; consult public records law and discuss with your attorney.

Any complaint that is filed pursuant to A.R.S. 16-938 is deemed dismissed if the filing officer does not resolve or rule on the complaint within 180 days after the complaint is filed and does not extend the deadline for resolving or ruling on the complaint. A.R.S. 16-938(J).

The city or town attorney has the sole and exclusive authority to initiate any applicable administrative or judicial proceedings to enforce an alleged violation of campaign finance laws that have been referred by the clerk. Discuss with your attorney how to address complaints that must be handled by another jurisdiction due to a conflict.

An alleged violator may appeal a city or town enforcement action to the superior court, instead of pursuing an appeal through the state administrative hearing process.⁵⁵ If the alleged violator takes corrective action within 20 days after the date of the issuance of the Notice of Violation by the attorney, the alleged violator is not subject to any penalty.

If the alleged violator does not take corrective action within 20 days after the date of issuance of the Notice of Violation by the attorney, the attorney must impose the penalty set forth in the Notice and must provide formal notice that the imposition of the penalty may be appealed to superior court.

Within 30 days after receiving the Notice of Violation from the city or town attorney, the alleged violator may appeal to the superior court and must inform the attorney of the appeal by providing a copy of the appeal notice to the city or town attorney (must be received by the enforcement officer).

Any superior court trial is de novo and the burden is on the city or town attorney to prove a violation occurred under a preponderance of evidence standard.

Sample forms:

Notification Letter of CF Reply Exceeding Complaint Parameters
Notification Letter of Receipt of CF Complaint
Notification to Complainant of Deficiencies in Complaint
Notification to Respondent of Complaint Filed and Time to Respond

Referral of Reasonable Cause Finding to Attorney
Sample Letter Parties Dismiss Complaint
Sample Letter Parties No Reasonable Cause
Sample Letter Refer Matter Conflict
Sample Notification Letter Complaint Deficiencies
Sample Notification Letter Complaint Filed
Sample Notification Letter Parties Conflict
Sample Notification Letter Receipt Complaint
Sample Notification Letter Response Submitted
Sample Reasonable Cause Finding

Late or Incomplete Reports; Notice by Clerk

A committee must file timely and complete Campaign Finance Reports.^56a ^56b If a committee fails to file a Campaign Finance Report by the applicable deadline, the clerk must send a written Notice of Delinquency to the committee treasurer by email within 5 calendar days after the filing deadline.⁵⁷ The notice must:

Identify the campaign finance report that was not filed;
Explain that penalties accrue at $10.00 per day for the first 15 days following the deadline, and $25.00 per day for each day thereafter the report is not filed; and
Identify permissible methods of payment.⁵⁸

Financial penalties accrue until the late Campaign Finance Report is filed.^{59a 59b} A filing officer must accept a Campaign Finance Report regardless of whether past-due financial penalties have been paid. If the committee does not file its Campaign Finance Report within 30 days after the filing deadline, the filing officer may refer the committee to the proper enforcement officer:^60a ^60b

The Attorney General is the enforcement officer for matters within the Secretary of State’s jurisdiction;^61a ^61b
The County Attorney is the enforcement officer for matters within the jurisdiction of the county officer in charge of elections and County School Superintendent;^62a ^62b and
The City or Town Attorney is the enforcement officer for matters within the city or town clerk’s jurisdiction.^63a ^63b

A failure to file occurs if a committee fails to timely file a complete report as prescribed in this chapter, which includes the following:

Amended Campaign Finance Report when incomplete contribution information is obtained;⁶⁴
An Independent Expenditure Report⁶⁵ pursuant to A.R.S. § 16-926⁶⁶
Campaign Finance Reports.⁶⁷

For any political action committee or political party that fails to file 3 consecutive complete reports, the clerk must email a Notice of Temporary Suspension to the committee.⁶⁸ The Notice of Temporary Suspension must state that failure to comply with all filing and payment requirements within 30 days after the date of the notice will result in permanent suspension of the committee’s authority to operate in that jurisdiction.⁶⁹ On receipt of this Notice of Temporary Suspension, the committee’s authority to operate in the jurisdiction is temporarily suspended.⁷⁰ If the committee remains non-complaint after the 30-day period, the clerk may permanently suspend the committee and notify the committee about the permanent suspension by e-mail through a Notice of Permanent Suspension.⁷¹ No other notice is required after the Notice of Permanent Suspension.

Permanent or temporary suspension does not eliminate a committee’s continuing obligation to file reports and pay any outstanding and accruing penalties provided by law.

Campaign Advertising and Fund-Raising Disclosure Statements

Campaign Advertising and Fund-Raising Disclosure Statements⁷²

A person,⁷³ other than an individual, that makes an expenditure including an independent expenditure for an advertisement or fund-raising solicitation, must include the following disclosures in the advertisement or solicitation:

The words “paid for by,” followed by the name of the person making the expenditure for the advertisement or fund-raising solicitation.

Whether the expenditure was authorized by any candidate, followed by the identity of the authorizing candidate, if any. The statute requires an expenditure authorized by a candidate to specify the identity of the candidate, not necessarily the candidate’s committee. Candidates who do not meet the committee threshold registration requirement do not need to register as a committee to meet this disclosure requirement.

A political action committee must comply with the requirements above and the following additional requirements:

The names of the three political action committees making the largest aggregate contributions to the political action committee making the expenditure, if those aggregate contributions exceed $20,000 during the election cycle, as calculated at the time the advertisement was distributed for publication, display, delivery or broadcast.

The aggregate percentage of out-of-state contributors as calculated at the time the advertisement was produced for publication, display, delivery, or broadcast. the disclosure must state “paid for by _____” as prescribed by A.R.S. § 16-925(A), followed by “with _____ % from out-of-state contributors” with the blank to be filled by the aggregate percentage.⁷⁴

If a disclosure contains any acronym or nickname that is not commonly known, the disclosure must also spell out the acronym or provide the full name.

If the advertisement is:

Broadcast on the radio, the disclosure statement must be clearly spoken at the beginning or end of the advertisement.
Delivered by hand or by mail, the disclosure statement must be clearly readable and, if the advertisement is also paid for by a political action committee, the disclosure statement must be displayed in a height that is at least 10% of the vertical height of the advertisement.
Delivered electronically, the disclosure statement must be clearly readable.
Displayed on a sign or billboard, the disclosure statement must be displayed in a height that is at least 4% of the vertical height of the sign or billboard, except that if the advertisement is paid for by a political action committee, the disclosure statement must be displayed in a height that is at least 10% of the vertical height of the sign or billboard.
Broadcast on television or in a video or film, both of the following requirements apply:
- The disclosure must be both written and spoken at the beginning or end of the advertisement, except that if the written disclosure statement is displayed for the greater of at least one-sixth of the broadcast duration or 4 seconds, a spoken disclosure statement is not required.
- The written disclosure statement must be printed in letters that are displayed in a height that is at least 4% of the vertical picture height, except that if the advertisement is paid for by a political action committee, the written disclosure statement must be displayed in a height that is at least ten percent of the vertical picture height.

The disclosure requirements above do not apply to:

Social media messages, text messages or messages sent by a short message service.
Advertisements that are placed as a paid link on a website, if the message is not more than 200 characters in length and the link directs the user to another website that complies with this section.
Advertisements that are placed as a graphic or picture link, if the statements required in this section cannot be conveniently printed due to the size of the graphic or picture and the link directs the user to another website that complies with this section.
Bumper stickers, pins, buttons, pens, and similar small items on which the statements required in this section cannot be conveniently printed.
A solicitation of contributions by a separate segregated fund.
A communication by a tax-exempt organization solely to its members.
A published book or a documentary film or video.

If a disclosure statement contains an acronym or nickname that is not commonly known, the disclosure must spell out the acronym or provide the full name.

An entity that makes independent expenditures or ballot measure expenditures⁷⁵ of more than $1,000 during a reporting period must file an expenditure report (using the Campaign Finance Report form) with the clerk for the applicable reporting period, even if the entity is not registered as a committee. Expenditure reports must identify the candidate or ballot measure supported or opposed, office sought by the candidate, if any, election date, mode of advertising and first date of publication, display, delivery, or broadcast of the advertisement.

Note: If a candidate or political action committee violates A.R.S. § 16-925, it is subject to investigation upon a third-party complaint filed with the clerk and may result in a campaign finance violation. This is distinguished from a complaint against a person for illegally tampering with a “political sign” pursuant to A.R.S. § 16-1019(A) or the removal of a sign by a city or town for a reason stated in A.R.S. § 16-1019(C), (D) or (G). Political signs are discussed further in Chapter 5 of this Manual.

Contributions and Expenditures by Committees or Agents

The Arizona Constitution provides for the enactment of legislation requiring campaign contributions and expenditures made by committees on behalf of candidates for public office to be matters of public knowledge before and after each election.⁷⁶ A committee must preserve the following records for 2 years following the end of the election cycle (reminder: an election cycle is 2 years):

All contributions made or received by the committee.
The identification of any contributor that contributes in the aggregate at least $50^{77a 77b} ^77cto the committee during the election cycle, the date and amount of each contribution and the date of deposit into the committee’s account.
Cumulative totals contributed by each contributor during the election cycle.
The name and address of every person that receives a contribution, expenditure, or disbursement from the committee, including the date and amount, and for any expenditure or disbursement, the purpose of the expenditure or disbursement.⁷⁸

Please refer to the Retention Schedules for Election Records of the Arizona State Library, Archives and Public Records regarding the clerk’s obligations to maintain election materials and reports.

Contributions and Expenditures by Private Corporations and Labor Organizations

Corporations, limited liability companies and labor organizations cannot make contributions to a candidate committee but may make unlimited contributions to persons other than candidate committees and may make independent expenditures in candidate elections.^79a ^79b

A fund that is established by a corporation, limited liability company, labor organization or partnership for purposes of influencing the result of an election must register as a political action committee.⁸⁰

If an organization’s independent expenditure exceeds $1,000 in a city or town election during a reporting period, the organization must file an expenditure report (using the Campaign Finance Report form) with the clerk for the applicable reporting period, even if the organization is not registered as a committee. Expenditure reports must identify the candidate or ballot measure supported or opposed, office sought by the candidate, if any, election date, mode of advertising and first date of publication, display, delivery, or broadcast of the advertisement.

An expenditure is not an independent expenditure⁸¹ if either of the following applies:

There is actual coordination with respect to an expenditure between a candidate or candidate’s agent and the person making the expenditure or that person’s agent; or
The expenditure is based on nonpublic information about a candidate’s or candidate committee’s plans or needs that the candidate or candidate’s agent provides to the person making the expenditure or that person’s agent and the candidate or candidate’s agent provides the nonpublic information with an intent toward having the expenditure made.

In evaluating whether an expenditure is an independent expenditure, the clerk or city or town attorney may consider the following to be rebuttable evidence of coordination:

Any agent of the person making the expenditure is also an agent of the candidate whose election or whose opponent’s defeat is being advocated by the expenditure.
In the same election cycle, the person making the expenditure or that person’s agent is or has been authorized to raise or spend monies on the candidate’s behalf.
In the same election cycle, the candidate is or has been authorized to raise money or solicit contributions on behalf of the person making the expenditure.

Coordination does not exist under either of the following:

If the person making the expenditure maintains a firewall between the person and that person’s agent in compliance with all the following:
- The person’s agent did not participate in deciding to make the expenditure or in deciding the content, timing or targeting of the expenditure.
- The person making the expenditure has a written policy establishing the firewall and its requirements.
- The person making the expenditure and the person’s agent followed the written policy regarding the firewall.
Solely because an agent of a person making the expenditure serves or has served on a candidate’s host committee for a fund-raising event.

An expenditure that is coordinated with a candidate, other than a coordinated party expenditure, is deemed an in-kind contribution to the candidate.

Any entity that makes an independent expenditure must register as a committee if it is organized for the primary purpose of influencing the results of an election and knowingly receives contributions or makes expenditures, in any combination, of at least $1,000 in connection with any election during a calendar year.⁸² If the committee test is met, the entity must file a Statement of Organization with the city clerk. If the test is not met, the entity does not have to register as a committee but must file Expenditure reports (using the Campaign Finance Report form). Reports must identify the candidate or ballot measure supported or opposed, office sought by the candidate, if any, election date, mode of advertising and first date of publication, display, delivery, or broadcast of the advertisement. This information is reflected in Schedule B(6) of the Campaign Finance Report form and a person reporting independent expenditures can submit this schedule along with the cover sheet.⁸³ No other reporting information is required.

Posting Campaign Finance Statement and Report Forms

The clerk must provide the option for electronic filing and must make all campaign finance statements and reports publicly available by posting them on the city or town website or utilizing the Secretary’s electronic filing system when this system becomes available to cities and towns.⁸⁴ The electronic filing requirement applies to all cities and towns and there is no longer an exemption for a city or town with a population less than 2,500 persons.⁸⁵ The statements and reports must be posted online. A fee is no longer required to opt-in to the Secretary’s system; however, the system may not be ready for local filings until the 2024 election cycle.

CHAPTER 4 – FOOTNOTES

A.R.S. §§ 16-901 – 16-938; see also Campaign Finance, Ariz. Op. Atty. Gen. No. I13-007 (2013).
Charter cities that regulate campaign finance disclosure should discuss local requirements (if any) with their city attorneys.
A.R.S. § 16-905(B). Political action committees and candidates in nonmunicipal races must continue to meet a $1,300 threshold before committee registration is triggered ($1,400 on January 1, 2023, and $1,500 on January 1, 2025). This amount for nonmunicipal races was originally set at $1,000, but the amount automatically increases by $100 every January of an odd-numbered year pursuant to A.R.S. § 16-905(I) and A.R.S. § 16-931. Unlike nonmunicipal candidates, the candidate committee registration threshold for city and town candidates is set at $500 and is not adjusted on a biennial basis. A.R.S. § 16-905(B).
A.R.S. § 16-905(B). Additionally, there is no longer a Threshold Exemption Statement requirement. Therefore, you may have local candidates who will not have to submit any campaign finance registration or complete any campaign finance forms or reports because they do not receive or spend, in any combination, $500. A Statement of Interest is required before a candidate begins obtaining signatures but is not related to campaign finance requirements.
A.R.S. § 16-906(A).
The committee is not subject to state income tax and is not required to file a state income tax return. A.R.S. § 16-905(H).
A.R.S. § 16-906(F).
Exploratory committees have been eliminated.
A.R.S. § 16-905(C). This amount for political action committees was originally set at $1,000, but the amount automatically increases by $100 every January of an odd-numbered year pursuant to A.R.S. § 16-905(I) and A.R.S. § 16-931.
A rebuttable presumption is a conclusion drawn from certain facts that establish a prima facie case (what it appears at first sight), which may be overcome by the introduction of contrary evidence. Consult with your attorney.
A religious organization, assembly or institution is no longer automatically exempt from the requirement to register as a political action committee or the filing requirements. The same “primary purpose” test applies with one exception: the lack of filing a Form 1023 or Form 1024 with the IRS is not a factor to be considered by the clerk when applying the “primary purpose” test. A.R.S. § 16-905(D)(1).
A.R.S. § 16-905(D). A political action committee is not subject to state income tax and is not required to file a state income tax return. A.R.S. § 16-905(H).
A.R.S. § 16-905(E). Charter cities that regulate campaign finance disclosure should discuss these restrictions with your attorney.
A political action committee can also register with the Secretary of State as a Standing Political Committee if it is active in multiple jurisdictions and wants the ability to electronically file with Secretary of State’s office rather than with each jurisdiction. Only the Secretary of State will issue the identification number; however, the Standing Committee must still file a Statement of Organization in municipalities where it is active (which provide notice to the municipalities). See A.R.S. §§ 16-901, 16-906, 16-934.
Committees are solely responsible for adhering to banking policies and clerks are not required to assist a committee that is establishing a bank account.
A.R.S. § 16-906(B)(6).
A.R.S. § 16-906 (G).
A.R.S. § 16-906 (C).
A special election has its own contribution limits, and a candidate is not required to use funds from their regular election committee. See A.R.S. § 16-901. The Secretary of State provides more specific guidance on this matter in its Campaign Finance – Candidate Guide.
A.R.S. § 16-931.
The use of a candidate’s personal monies is not subject to the limitations. A.R.S. §§ 16-912, 16-913, Davis v. FEC, 554 U.S. 724 (2008).
Title 16, Ch. 6, Art. 1.2. The definition of “election cycle” is the 2-year period beginning on the first day of the calendar quarter after the calendar quarter in which the city’s or town’s second runoff or general election is scheduled and ending on the last day of the calendar quarter in which the city’s or town’s immediately following second, runoff or general election is scheduled, however that election is designated by the city or town. See A.R.S. § 16-901. The cycle is no longer tied to the term of office. For example, if your scheduled runoff is November, it is in the October – December calendar quarter, which means the new 2-year period begins on January 1 of the following year. If your scheduled runoff is May, it is in the April – June calendar quarter, which means the new 2-year period begins July 1 of the same year. The practical effect means that an elected official who has a 4-year term will have 2 sets of contribution limits and may collect $6,550 each cycle for a total of $13,000 during a 4-year period. A.R.S. § 16-912 (contribution limits increase by $100 on each odd-numbered year pursuant to A.R.S. § 16-931).
A.R.S. § 16-931(A).
See A.R.S. § 16-931(A). The limitations set in state law are increased, decreased, or kept the same in accordance with the consumer price index and it would be impossible to predict accurately. Therefore, a candidate may only accept a contribution that is within the established limitation on the date the contribution is received.
Contribution Limits, Ariz. Op. Atty. Gen. No. I97-006 (1997) (concluding that candidates and their contributions must adhere to the contribution limit until it is adjusted).
See A.R.S. § 16-913. Transfer can be made from a local committee to a county candidate committee, but the monies cannot be transferred to a statewide or legislative candidate committee for 24 months immediately following the transfer of contributions if received from the city/town candidate committee. The Campaign Finance – Candidate Guide states that violating this “cooling off” period may trigger a complaint before either filing officer. There is no restriction on the downward transfer of monies so a candidate in a state, legislative or county committee can transfer monies to a local committee without penalty.
See A.R.S. § 16-926.
The deadlines are also outlined in the Secretary of State’s Campaign Finance – Candidate Guide. The Campaign Finance Report is a fillable pdf and can be emailed to the clerk, including on weekends and holidays, at any time.
See A.R.S. §§ 1-243, 1-301, 1-303. It is important to follow the advice of your legal counsel regarding any deadline. While Title 1 generally allows the state to move a deadline from a Sunday or legal holiday, A.R.S. § 16-407.03.
See A.R.S. § 16-407.03.
See A.R.S. § 16-927.
See A.R.S. § 16-927(C); See also, Secretary of State, Campaign Finance – Candidate Guide (and Political Action Committee Guide) (“A committee is required to file Campaign Finance Reports until formally terminated, regardless of the level of political or financial activity during a reporting period.” A political action committee that receives individual contributions through a payroll deduction plan does not have to separately itemize each contribution received from the contributor during the reporting period. A.R.S. § 16-926(G). In lieu of itemization, the political action committee may report the following: (i) the aggregate number of contributions received from the contributor through the payroll deduction plan during the reporting period; (ii) the individual’s identity; and (iii) the amount deducted per pay period.
“Calendar quarter” means “a period of 3 consecutive calendar months ending on March 31, June 30, September 30 or December 31.” A.R.S. § 16-901(6).
See A.R.S. § 16-927(A)(2). This is in addition to filing a Statement of Organization and filing quarterly Campaign Finance Reports. If a scheduled primary, general, or runoff election is cancelled, the corresponding pre-election and post-election Campaign Finance Reports are not required.
A.R.S. § 16-927(A)(2).
A.R.S. § 16-927(A)(2).
Candidate committee reports must be cumulative for the election cycle to which they relate. The reporting period for a candidate committee’s first Campaign Finance Report of the election cycle must include the entire election cycle to date. A.R.S. § 16-927(B).
A.R.S. § 16-927(B).
A.R.S. § 16-901(31).
A.R.S. § 16-901(4).
A.R.S. § 16-901.01.
There is no longer a requirement for a candidate to report $1,000 single source contribution less than 20 days before the election.
See the Secretary of State’s website for more information.
A.R.S. § 16-934.
A sample Termination Statement is also provided in Appendix D of the Campaign Finance-Political Action Committee Guide.
A.R.S. § 16-934(B).
A.R.S. § 16-934.
A.R.S. § 16-933.
A.R.S. § 16-311(A).
A.R.S. § 16-912.
A.R.S. § 16-938. A city or town attorney has the authority to enforce the provisions of Title 16 (elections) through civil or criminal actions for city or town elections. A.R.S. § 16-1021.
We recommend a city or town clerk require a written complaint.
Arizona Advocacy Network Found. v. State, 250 Ariz. 109 (App. 2020), as amended (Nov. 9, 2020) (ruling that A.R.S § 16-938(A) requiring a complaint from a third party and the filing officer being the sole officer authorized to initiate an investigation is unconstitutional and unenforceable because it violates the state Voter Protection Act as it relates to the Clean Elections Act).
State Elections Procedures Manual, Ch. 16 Campaign Finance. For the latest approved version of the State Elections Manual, go to the Arizona Secretary of State’s website: https://azsos.gov/elections/arizona-election-laws-publications.
A.R.S. § 16-938.
A.R.S. §§ 16-926(A), 16-937(A).
A.R.S. § 16-937(A). The clerk must send a written Notification of Delinquency by e-mail to the committee within 5 days after the filing deadline. The notice must identify the late report, describe how fines accrue, and identify the methods of payment. At the clerk’s discretion, the clerk may also email the committee chairman, or any other persons associated with the committee. Following this notice by the clerk, if a committee fails to file a complete report within 30 days after the filing deadline, the filing officer may notify the city or town attorney.
A.R.S. § 16-937(A) – (B).
A.R.S. § 16-938; Amended Campaign Finance Reports, Ariz. Op. Atty. Gen. No. I99-009 (1999).
A.R.S. §§ 16-901(21); 16-937(C).
A.R.S. §§ 16-901(21); 16-938(C)(1).
A.R.S. §§ 16-901(21); 16-938(C)(2).
A.R.S. §§ 16-901(21); 16-938(C)(3).
A.R.S. § 16-907.
Candidates should contact the Secretary of State’s website for more information about the Independent Expenditure Report.
A.R.S. § 16-922.
A.R.S. § 16-926.
A.R.S. § 16-937.
A.R.S. § 16-937.
A.R.S. § 16-937.
A.R.S. § 16-937.
A.R.S. § 16-925.
A.R.S. § 16-901(39) defines “person” as an individual or a candidate, nominee, committee, corporation, limited liability company, labor organization, joint venture, partnership, trust, association, organization, joint venture, cooperative or unincorporated organization or association. Since an individual is exempt from this requirement, consult with your attorney if you receive complaints regarding lack of disclosure to determine if it is an individual not required to disclose or a person who failed to disclose.
A.R.S. § 16-906(B).
Independent expenditures and ballot measure expenditures are defined. A.R.S. § 16-901.
Ariz. Const., art. VII, § 16.
2021 Ariz. Sess. Laws Ch. 154, § 1 increased this amount from $50 to $100 in A.R.S. § 16-926 but no corresponding change was made in A.R.S. § 16-907.
A.R.S. § 16-907(D), (G).
A.R.S. §§ 16-916, 16-922.
A.R.S. § 16-905 (D).
A.R.S. § 16-922.
A.R.S. § 16-905.
A.R.S. § 16-926 (H).
To find out about the availability of the filing system, contact the Secretary of State. As of September 24, 2022, it does not appear to be available to cities and towns.
See A.R.S. § 16-928.