A.R.S. tit. 16 ch. 6 — Arizona Revised Statutes Title 16 Chapter 6 — Campaign Contributions And Expenses

16-901. Definitions In this chapter, unless the context otherwise requires: 1. "Advertisement" means information or materials, other than nonpaid social media messages, that are mailed, e-mailed, posted, distributed, published, displayed, delivered, broadcasted or placed in a communication medium and that are for the purpose of influencing an election. 2. "Affiliate" means any organization that controls, is controlled by or is under common control with a corporation, limited liability company or labor organization. 3. "Agent" means any person who has actual authority, either express or implied, to represent or make decisions on behalf of another person. 4. "Ballot measure expenditure" means an expenditure made by a person that expressly advocates the support or opposition of a clearly identified ballot measure. 5. "Best effort" means that a committee treasurer or treasurer's agent makes at least one written effort, including an attempt by e-mail, text message, private message through social media or other similar communication, or at least one oral effort that is documented in writing to identify the contributor of an incomplete contribution. 6. "Calendar quarter" means a period of three consecutive calendar months ending on March 31, June 30, September 30 or December 31. 7. "Candidate" means an individual who receives contributions or makes expenditures or who gives consent to another person to receive contributions or make expenditures on behalf of that individual in connection with the candidate's nomination, election or retention for any public office. 8. "Candidate committee" includes the candidate. 9. "Clearly identified candidate" means that the name or a description, image, photograph or drawing of the candidate appears or the identity of the candidate is otherwise apparent by unambiguous reference. 10. "Committee" means a candidate committee, a political action committee or a political party. 11. "Contribution" means any money, advance, deposit or other thing of value that is made to a person for the purpose of influencing an election. Contribution includes: (a) A contribution that is made to retire campaign debt from a previous election cycle. (b) Money or the fair market value of anything that is directly or indirectly provided to an elected official for the specific purpose of defraying the expense of communications with constituents. (c) The full purchase price of any item from a committee. (d) A loan that is made to a committee for the purpose of influencing an election, to the extent the loan remains outstanding. 12. "Control" means to possess, directly or indirectly, the power to direct or to cause the direction of the management or policies of another organization, whether through voting power, ownership, contract or otherwise. 13. "Coordinate", "coordinated" or "coordination" means the coordination of an expenditure as prescribed by section 16-922. 14. "Coordinated party expenditures" means expenditures that are made by a political party to directly pay for goods or services on behalf of its nominee. 15. "District office" means an elected office established or organized pursuant to title 15 or 48. 16. "Earmarked" means a designation, instruction or encumbrance between the transferor of a contribution and a transferee that requires the transferee to make a contribution to a clearly identified candidate. 17. "Election" means any election for any ballot measure in this state or any candidate election during a primary, general, recall, special or runoff election for any office in this state other than a federal office and a political party office prescribed by chapter 5, article 2 of this title. 18. "Election cycle" means the two-year period beginning on January 1 in the year after a statewide general election and ending on December 31 in the year of a statewide general election or, for cities and towns, the two-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. For the purposes of a: (a) Recall election, "election cycle" means the period between issuance of a recall petition serial number and the latest of the following: (i) The date of the recall election that is called pursuant to section 19-209. (ii) The date that a resignation is accepted pursuant to section 19-208. (iii) The date that the receiving officer provides notice pursuant to section 19-208.01 that the number of signatures is insufficient. (b) Special election, "election cycle" means the period between the date of issuance of a proclamation or order calling the special election and the last day of the calendar quarter in which the special election is held. 19. "Employee" means an individual who is entitled to compensation for labor or services performed for the individual's employer. 20. "Employer" means any person that pays compensation to and directs the labor or services of any individual in the course of employment. 21. "Enforcement officer" means the attorney general or the county, city or town attorney with authority to collect fines or issue penalties with respect to a given election pursuant to section 16-938. 22. "Entity" means a corporation, limited liability company, labor organization, partnership, trust, association, organization, joint venture, cooperative, unincorporated organization or association or other organized group that consists of more than one individual. 23. "Excess contribution" means a contribution that exceeds the applicable contribution limits for a particular election. 24. "Exclusive insurance contract" means an insurance producer's contract with an insurer that does either of the following: (a) Prohibits the producer from soliciting insurance business for any other insurer. (b) Requires a right of first refusal on all lines of insurance business written by the insurer and solicited by the producer. 25. "Expenditure" means any purchase, payment or other thing of value that is made by a person for the purpose of influencing an election. 26. "Family contribution" means any contribution that is provided to a candidate's committee by the parent, grandparent, aunt, uncle, child or sibling of the candidate or the candidate's spouse, including the spouse of any of the listed family members, regardless of whether the relation is established by marriage or adoption. 27. "Filing officer" means the secretary of state or the county, city or town officer in charge of elections for that jurisdiction who accepts statements and reports for those elections pursuant to section 16-928. 28. "Firewall" means a written policy that precludes one person from sharing information with another person. 29. "Identification" or "identify" means: (a) For an individual, the individual's first and last name, residence location or street address and occupation and the name of the individual's primary employer. (b) For any other person, the person's full name and physical location or street address. 30. "Incomplete contribution" means any contribution that is received by a committee for which the contributor's complete identification has not been obtained. 31. "Independent expenditure" means an expenditure by a person, other than a candidate committee, that complies with both of the following: (a) Expressly advocates the election or defeat of a clearly identified candidate. (b) Is not made in cooperation or consultation with or at the request or suggestion of the candidate or the candidate's agent. 32. "In-kind contribution" means a contribution of goods, services or anything of value that is provided without charge or at less than the usual and normal charge. 33. "Insurance producer" means a person that: (a) Is required to be licensed to sell, solicit or negotiate insurance. (b) Has an exclusive insurance contract with an insurer. 34. "Itemized" means that each contribution received or expenditure made is set forth separately. 35. "Labor organization" means any employee representation organization that exists for the purpose of dealing with employers concerning grievances, labor disputes, wages, rates of pay, hours of employment or other conditions of employment. 36. "Legislative office" means the office of representative in the state house of representatives or senator in the state senate. 37. "Mega PAC status" means official recognition that a political action committee has received contributions from five hundred or more individuals in amounts of ten dollars or more in the four-year period immediately before application to the secretary of state. 38. "Nominee" means a candidate who prevails in a primary election for partisan office and includes the nominee's candidate committee. 39. "Person" means an individual or a candidate, nominee, committee, corporation, limited liability company, labor organization, partnership, trust, association, organization, joint venture, cooperative or unincorporated organization or association. 40. "Personal monies" means any of the following: (a) Assets to which the individual or individual's spouse has either legal title or an equitable interest. (b) Salary and other earned income from bona fide employment of the individual or individual's spouse. (c) Dividends and proceeds from the sale of investments of the individual or individual's spouse. (d) Bequests to the individual or individual's spouse. (e) Income to the individual or individual's spouse from revocable trusts for which the individual or individual's spouse is a beneficiary. (f) Gifts of a personal nature to the individual or individual's spouse that would have been given regardless of whether the individual became a candidate or accepted a contribution. (g) The proceeds of loans obtained by the individual or individual's spouse that are secured by collateral or security provided by the individual or individual's spouse. (h) Family contributions. 41. "Political action committee" means an entity that is required to register as a political action committee pursuant to section 16-905. 42. "Political party" means a committee that meets the requirements for recognition as a political party pursuant to chapter 5 of this title. 43. "Primary purpose" means an entity's predominant purpose. Notwithstanding any other law or rule, an entity is not organized for the primary purpose of influencing an election if all of the following apply at the time the contribution or expenditure is made: (a) The entity has tax exempt status under section 501(a) of the internal revenue code. (b) Except for a religious organization, assembly or institution, the entity has properly filed a form 1023 or form 1024 with the internal revenue service or the equivalent successor form designated by the internal revenue service. (c) The entity's tax exempt status has not been denied or revoked by the internal revenue service. (d) The entity has properly filed a form 990 with the internal revenue service or the equivalent successor form designated by the internal revenue service in compliance with the most recent filing deadline established by internal revenue service regulations or policies. 44. "Retention" means the election process by which a superior court judge, appellate court judge or supreme court justice is retained in office as prescribed by article VI, section 38 or 40, Constitution of Arizona. 45. "Separate segregated fund" means a fund established by a corporation, limited liability company, labor organization or partnership that is required to register as a political action committee. 46. "Social media messages" means forms of communication, including internet sites for social networking or blogging, through which users create a personal profile and participate in online communities to share information, ideas and personal messages. 47. "Sponsor" means any person that establishes, administers or contributes financial support to the administration of a political action committee or that has common or overlapping membership or officers with that political action committee. 48. "Standing committee" means a political action committee or political party that is active in more than one reporting jurisdiction in this state and that files a statement of organization in a format prescribed by the secretary of state. 49. "Statewide office" means the office of governor, secretary of state, state treasurer, attorney general, superintendent of public instruction, corporation commissioner or mine inspector. 50. "Surplus monies" means those monies of a terminating committee that remain after all of the committee's expenditures have been made, all debts have been extinguished and the committee ceases accepting contributions. 16-901.01. Limitations on certain unreported expenditures and contributions (Caution: 1998 Prop 105 applies) A. For the purposes of this chapter, "expressly advocates" means: 1. Conveying a communication containing a phrase such as "vote for," "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. 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) 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. 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. 16-905. Committee qualification; requirements; exemption; adjustments A. A candidate for election or retention shall register as a candidate committee if the candidate receives contributions or makes expenditures, in any combination, of at least one thousand dollars in connection with that candidacy. B. For city and town elections, a candidate for election or retention shall register as a candidate committee if the candidate receives contributions or makes expenditures, in any combination, of at least five hundred dollars in connection with that candidacy. C. An entity shall register as a political action committee if both of the following apply: 1. The entity is organized for the primary purpose of influencing the result of an election. 2. The entity knowingly receives contributions or makes expenditures, in any combination, of at least one thousand dollars in connection with any election during a calendar year. D. A filing officer or enforcement officer shall make a rebuttable presumption that an entity is organized for the primary purpose of influencing the result of an election if the entity meets any of the following: 1. Except for a religious organization, assembly or institution, claims tax exempt status but had not filed form 1023 or form 1024 with the internal revenue service, or the equivalent successor form designated by the internal revenue service, before making a contribution or expenditure. 2. Made a contribution or expenditure and at that time had its tax exempt status revoked by the internal revenue service. 3. Made a contribution or expenditure and at that time failed to file form 990 with the internal revenue service, or the equivalent successor form designated by the internal revenue service, if required by law. E. Except as prescribed in subsections B and C of this section and section 16-938, a filing officer, enforcement officer or other officer of a city, town, county or other political subdivision of this state may not require an entity that claims tax exempt status under section 501(a) of the internal revenue code and that remains in good standing with the internal revenue service to do any of the following: 1. Register or file as a political action committee. 2. Report or otherwise disclose personally identifying information relating to individuals who have made contributions to that entity. 3. Disclose its schedule B, form 990. 4. Submit to an audit or subpoena or produce evidence regarding a potential campaign finance violation. F. A fund that is established by a corporation, limited liability company, labor organization or partnership for the purpose of influencing the result of an election shall register as a political action committee. G. An entity may register as a political party committee only as prescribed in chapter 5 of this title. H. A committee is not subject to state income tax and is not required to file a state income tax return. I. The dollar amounts prescribed by subsections A and C of this section shall be increased every two years pursuant to section 16-931. 16-906. Committee statement of organization; amendment; committee limitation; alternate mailing address A. A committee shall file a statement of organization with the filing officer within ten days after qualifying as a committee. B. Except as provided in subsection H of this section, a statement of organization shall include the following committee information: 1. The committee name, mailing address, email address, website, if any, and telephone number, if any, and the type of committee. The committee name shall include: (a) For a candidate committee, the candidate's first or last name and, if the candidate has a candidate committee open for more than one office, the office sought. (b) For a political action committee that is sponsored, the sponsor's name or commonly known nickname. 2. The name, mailing address, email address, website, if any, and telephone number of any sponsor. 3. The name, physical location or street address, email address, telephone number, occupation and employer of the committee's chairperson and treasurer. For a candidate committee, the candidate may serve as both chairperson and treasurer. 4. For a candidate committee for a partisan office, the candidate's party affiliation. 5. A listing of all banks or other financial institutions used by the committee. 6. A statement that the committee chairperson and committee treasurer have read the filing officer's campaign finance and reporting guide, agree to comply with this article and articles 1, 1.2, 1.3, 1.4, 1.5, 1.6 and 1.7 of this chapter, and agree to accept all notifications and service of process via the email address provided by the committee. C. A committee shall file an amended statement of organization within ten days after any change in committee information. D. On filing a statement of organization, the filing officer shall issue an identification number to the committee. E. A standing committee shall file a statement of organization with the secretary of state and a copy of the statement in each jurisdiction in which the committee is active. Only the secretary of state shall issue an identification number. F. A candidate may have only one committee in existence for the same office during the same election cycle. G. On filing a statement of organization, a political action committee or political party 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. H. A person may provide an alternate mailing address for the purposes of this section and may attest that the person's residence is in the electoral district if the person's residential address is both: 1. Required to be included pursuant to subsection B of this section. 2. Protected from public disclosure pursuant to section 16-153. 16-907. Committee recordkeeping; treasurer; accounts A. A committee treasurer is the custodian of the committee's books and accounts. A committee may not make a contribution, expenditure or disbursement without the authorization of the treasurer or the treasurer's designated agent. B. All committee monies shall be deposited in one or more bank accounts held by the financial institutions listed in the committee's statement of organization. Committee bank accounts shall be segregated as follows: 1. Committee monies shall be segregated in different bank accounts from personal monies. 2. Contributions from individuals, partnerships, candidate committees, political action committees or political parties shall be segregated in different bank accounts from contributions from other donors. 3. Contributions to a political party to defray operating expenses or support party-building activities shall be segregated in different bank accounts from contributions used to support candidates. 4. For a committee that is a political party, the committee may commingle monies from any source in a single bank account if the account is maintained as prescribed in 11 Code of Federal Regulations section 106.7. 5. For contributions intended to influence a recall election, the committee shall segregate those contributions into bank accounts that are different from those intended to influence any other election and those recall contributions may not be used to influence any other election. C. A committee shall exercise its best effort to obtain the required information for any incomplete contribution received that is required to be itemized and reported. The committee shall clearly ask for identification and inform the contributor that the committee is required by law to seek identification. Notwithstanding section 16-901, paragraph 29, subdivision (a), a person whose residential address is protected from public disclosure pursuant to section 16-153 is not required to disclose the person's residential address and shall instead provide an alternate mailing address. The committee shall report in an amended report any contributor identification obtained after the contribution has been disclosed on a campaign finance report. D. A committee shall keep records of the following: 1. All contributions made or received by the committee. 2. The identification of any contributor that contributes in the aggregate at least $50 to the committee during the election cycle, the date and amount of each contribution and the date of deposit into the committee's account. 3. Cumulative totals contributed by each contributor during the election cycle. 4. 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. E. A committee may accept a cash contribution. F. A committee may accept a contribution by written or electronic instrument, including a check, credit card, payroll deduction, online payment or electronic transfer, if the contributor is an account holder of the instrument. Unless designated as a joint contribution, a contribution shall be attributed to the account holder that signs the instrument or authorizes the transaction. G. A committee shall preserve all records required to be kept by this section for two years following the end of the election cycle. H. On request of the filing officer or enforcement officer, a committee that has filed a statement of organization shall produce any of the records required to be kept pursuant to this section to the filing officer or enforcement officer. I. A person that qualifies as a committee as prescribed by section 16-905 shall report all contributions, expenditures and disbursements that occurred before qualifying as a committee and shall maintain and produce records as prescribed by this section. 16-908. Mega PAC status qualification A. A political action committee may apply to the secretary of state for mega PAC status. B. A political action committee qualifies for mega PAC status if it receives at least ten dollars in contributions from at least five hundred individuals in the four-year period immediately before application to the secretary of state. C. If the applicant demonstrates it has met the requirements for mega PAC status, the secretary of state shall provide written certification to the political action committee of its mega PAC status, which status is valid for four years. 16-911. Exemption from definition of contribution A. A person may make any contribution not otherwise prohibited by law. B. The following are not contributions: 1. The value of an individual's volunteer services or expenses that are provided without compensation or reimbursement, including the individual's: (a) Travel expenses. (b) Use of real or personal property. (c) Cost of invitations, food or beverages. (d) Use of e-mail, internet activity or social media messages, only if the individual's use is not paid for by the individual or any other person and if the e-mails, social media messages or other internet activities do not contain or include transmittal of a paid advertisement or paid fund-raising solicitation. 2. The costs incurred for covering or carrying a news story, commentary or editorial by a broadcasting station or cable television operator, video service provider, an internet website, a newspaper or another periodical publication, including an internet-based or electronic publication, if the cost for the news story, commentary or editorial is not paid for by and the medium is not owned or under the control of a candidate or committee. 3. Any payment to defray the expense of an elected official meeting with constituents or attending an informational tour, conference, seminar or presentation, if the payor or the elected official does not attempt to influence the result of an election and the payment is reported if required pursuant to title 38, chapter 3.1 or title 41, chapter 7, article 8.1, or both. 4. The payment by a political party to support its nominee, including: (a) The printing or distribution of, or postage expenses for, voter guides, sample ballots, pins, bumper stickers, handbills, brochures, posters, yard signs and other similar materials distributed through the party. (b) Coordinated party expenditures. 5. The payment by any person to defray a political party's operating expenses or party-building activities, including: (a) Party staff and personnel. (b) Studies and reports. (c) Voter registration, recruitment, polling and turnout efforts. (d) Party conventions and party meetings. (e) Construction, purchase or lease of party buildings or facilities. 6. The value of any of the following to a committee: (a) Interest earned on the committee's deposits or investments. (b) Transfers between committees to reimburse expenses and distribute monies raised through a joint fund-raising effort, if the transfers comply with an agreement to reimburse and distribute monies that was executed before the joint fund-raising effort occurred. (c) Payment of a committee's legal or accounting expenses by any person. (d) An extension of credit for goods and services on a committee's behalf by a creditor if the terms are substantially similar to extensions of credit to nonpolitical debtors that are of similar risk and size of obligation. The creditor must make a commercially reasonable attempt to collect the debt, except that if an extension of credit remains unsatisfied by the committee after six months the committee is deemed to have received a contribution but the creditor is not deemed to have made a contribution. 7. The value of nonpartisan communications that are intended to encourage voter registration and turnout efforts. 8. Any payment to a filing officer for arguments in a publicity pamphlet. 9. The payment by any sponsor or its affiliate for the costs of establishing, administering and soliciting contributions from its employees, members, executives, stockholders and retirees and their families to the sponsor's separate segregated fund. 10. Any payment by any entity for the costs of communicating with its employees, members, executives, stockholders and retirees and their families about any subject, without regard to whether those communications are made in coordination with any candidate or candidate's agent. 11. The value of allowing a candidate or a committee's representative to appear at any private residence or at the facilities of any entity to speak about the candidate's campaign or about a ballot measure, if the venue is furnished by the venue's owner, is not paid for by a third party and is not a sports stadium, coliseum, convention center, hotel ballroom, concert hall or other similar arena that is generally open to the public. 12. The costs of hosting a debate or candidates' forum, if at least two opposing candidates, with respect to any given office sought, or representatives of at least two opposing ballot measure campaigns, with respect to any measure on the ballot, are invited with the same or similar advance notice and method of invitation. 13. The preparation and distribution of voter guides, subject to the following: (a) A featured candidate or ballot measure shall not receive greater prominence or substantially more space in the voter guide than any other candidate or ballot measure. (b) The voter guide shall not include any message that constitutes express advocacy. 14. Monies that are loaned by a financial institution in the ordinary course of business and not for the purpose of influencing the results of an election, except that the loan is deemed a pro rata contribution by any endorser or guarantor, other than the candidate's spouse. 15. The costs of publishing a book or producing a documentary, if the publication and production are for distribution to the general public through traditional distribution mechanisms or a fee is obtained for the purchase of the publication or viewing of the documentary. C. This section does not imply that any transactions that are not specifically listed in subsection B of this section are contributions unless those transactions otherwise meet the definition of contribution as defined in section 16-901. 16-912. Individual contribution limits; requirements A. An individual may not contribute more than the following amounts per election cycle: 1. Six thousand two hundred fifty dollars to a candidate committee for city, town, county or district office. 2. Six thousand two hundred fifty dollars to a candidate committee for legislative office. 3. Six thousand two hundred fifty dollars to a candidate committee for statewide office. B. An individual may make unlimited contributions to persons other than candidate committees. C. An individual may only make contributions using personal monies, except that a contribution from an unemancipated minor child shall be treated as a contribution by the child's custodial parent or parents. 16-913. Candidate committee contribution limits; requirements A. A candidate committee shall not make contributions to a candidate committee for another candidate. B. A candidate committee may transfer unlimited contributions to any one or more other candidate committees for that same candidate under the following conditions: 1. A candidate committee for a city or town candidate shall not transfer contributions to that same candidate's committee for a statewide or legislative office. 2. If a candidate committee for a city or town office transfers contributions to a candidate committee for a county office for that same candidate, the candidate committee for the county office shall not transfer contributions to a statewide or legislative candidate committee for that same candidate during the twenty-four months immediately following that transfer of contributions to the county candidate committee. 3. Contributions originally made to the transferring candidate committee are deemed to be contributions to the receiving candidate committee. On transfer, an individual's aggregate contributions to both candidate committees during the election cycle shall not exceed the individual's contribution limit for that candidate. C. A candidate committee shall not knowingly accept contributions in excess of the contribution limits prescribed by law. A candidate committee that unknowingly accepts an excess contribution shall refund or reattribute any excess contribution within sixty days after receipt of the contribution. A candidate committee may reattribute an excess contribution only if both of the following apply: 1. The excess contribution was received from an individual contributor. 2. The individual contributor authorizes the candidate committee to reattribute the excess amount to another individual who was identified as a joint account holder in the original instrument used to make the excess contribution. D. A candidate committee may accept contributions only from an individual, a partnership, a candidate committee, a political action committee or a political party. E. A candidate committee may make unlimited contributions to a person other than a candidate's committee. F. A candidate may contribute unlimited personal monies to the candidate's own candidate committee. 16-914. Political action committee contribution limits; requirements A. A political action committee without mega PAC status may not contribute more than the following amounts per election cycle: 1. Six thousand two hundred fifty dollars to a candidate committee for city, town, county or district office. 2. Six thousand two hundred fifty dollars to a candidate committee for legislative office. 3. Six thousand two hundred fifty dollars to a candidate committee for statewide office. B. A political action committee with mega PAC status may contribute twice the amounts prescribed in subsection A of this section per election cycle if the political action committee provides the recipient candidate committee a copy of the political action committee's certification of mega PAC status. C. A political action committee may only contribute to a candidate committee using monies contributed by an individual, a partnership, a candidate committee, a political action committee or a political party. D. A political action committee may make unlimited contributions to persons other than candidate committees. 16-915. Political party contribution limits; requirements A. A political party may not contribute more than the following amounts per election cycle: 1. Ten thousand dollars to the party's nominee for a city, town, county or district office. 2. Ten thousand dollars to the party's nominee for legislative office. 3. One hundred thousand dollars to the party's nominee for statewide office. B. A political party may only contribute to nominees using monies contributed by an individual, a partnership, a candidate committee, a political action committee or a political party. C. A political party shall not contribute to candidate committees other than nominees. D. A political party may make unlimited contributions to persons other than candidate committees and nominees. 16-916. Corporation, limited liability company and labor organization contributions; separate segregated fund; limits; requirements A. A corporation, limited liability company or labor organization shall not make contributions to a candidate committee. B. A corporation, limited liability company or labor organization may make unlimited contributions to persons other than candidate committees. C. A corporation, limited liability company or labor organization may sponsor a separate segregated fund. Employees, members, executives, stockholders and retirees and their families of a corporation, limited liability company or labor organization and any subsidiary or affiliate of a corporation, limited liability company or labor organization may make contributions to the separate segregated fund, subject to the following: 1. The separate segregated fund must register as a political action committee. 2. The sponsor or its affiliate may pay the administrative, personnel and fund-raising expenses of its separate segregated fund, which shall not be deemed contributions to the fund. 3. The sponsor or its separate segregated fund may solicit contributions from the sponsor's, sponsor's affiliates' or sponsor's subsidiaries' employees, members, executives, stockholders and retirees and their families. The following additional restrictions apply: (a) With respect to an insurer, an insurer or its separate segregated fund may also solicit contributions from an insurance producer's employees, members, executives, stockholders and retirees and their families. (b) With respect to a trade association or membership organization, the association or organization may solicit contributions from its members' employees, executives, stockholders, subsidiaries and retirees and their families. 4. A sponsor or its affiliate or a trade association or membership organization may facilitate the making of contributions to its separate segregated fund by establishing a payroll deduction system or other similar payment transfer method. 5. A sponsor, trade association, membership organization or separate segregated fund may rely on the federal election commission's written guidance interpreting 52 United States Code section 30118(b) and rules adopted under that section when interpreting this subsection, if otherwise consistent with this article and articles 1, 1.1, 1.3, 1.4, 1.5, 1.6 and 1.7 of this chapter. 16-917. Partnership contribution limits; requirements A. A partnership may not contribute more than the following amounts per election cycle: 1. Six thousand two hundred fifty dollars to a candidate committee for city, town, county or district office. 2. Six thousand two hundred fifty dollars to a candidate committee for legislative office. 3. Six thousand two hundred fifty dollars to a candidate committee for statewide office. B. A partnership may make unlimited contributions to persons other than candidate committees. C. Partnership contributions are subject to the following: 1. Partnership contributions shall be attributed to each contributing partner as designated by the partnership. The partnership shall provide the recipient committee written notice identifying the contributing partners and the amount attributed to each. 2. Partnership contributions shall count against both the partnership's and the individual partners' contribution limits to a recipient. The portion attributed to each partner shall be aggregated with the individual partner's nonpartnership contributions to that recipient and shall not exceed the individual partner's contribution limit. 3. The partnership shall not attribute any contribution to a partner that is a corporation, limited liability company or labor organization. 4. Partnership contributions need not be accompanied by the signature of each contributing partner. D. A partnership may establish a separate segregated fund as prescribed in section 16-916. 16-918. Earmarking prohibited A contributor shall not give and a committee shall not accept a contribution that has been earmarked for a candidate. 16-921. Exemptions from definition of expenditure A. A person may make any expenditure not otherwise prohibited by law. B. The following are not expenditures: 1. The value of an individual's volunteer services or expenses that are provided without compensation or reimbursement, including the individual's: (a) Travel expenses. (b) Use of real or personal property. (c) Cost of invitations, food or beverages. (d) Use of e-mail, internet activity or social media messages, only if the individual's use is not paid for by the individual or any other person and if the e-mails, social media messages or other internet activities do not contain or include transmittal of a paid advertisement or paid fund-raising solicitation. 2. The value of any news story, commentary or editorial by any broadcasting station, cable television operator, video service provider, programmer or producer, newspaper, magazine, website or other periodical publication that is not owned or operated by a candidate, a candidate's spouse or any committee. 3. The payment by any person to defray a political party's operating expenses or party-building activities, including: (a) Party staff and personnel. (b) Studies and reports. (c) Voter registration, recruitment, polling and turnout efforts. (d) Party conventions and party meetings. (e) Construction, purchase or lease of party buildings or facilities. 4. The value of any of the following to a committee: (a) Interest earned on the committee's deposits or investments. (b) Transfers between committees to reimburse expenses and distribute monies raised through a joint fund-raising effort, except that contributions shall be allocated as described in the fund-raising solicitation and expenses shall be allocated in the same proportion as contributions. (c) Payment of a committee's legal or accounting expenses. (d) An extension of credit for goods and services on a committee's behalf by a creditor if the terms are substantially similar to extensions of credit to nonpolitical debtors that are of similar risk and size of obligation. The creditor must make a commercially reasonable attempt to collect the debt, except that if an extension of credit remains unsatisfied by the committee after six months the committee is deemed to have received a contribution but the creditor is not deemed to have made a contribution. 5. The value of nonpartisan communications that are intended to encourage voter registration and turnout efforts. 6. Any payment by a person that is not a committee to a filing officer for arguments in a publicity pamphlet. 7. Any payment for legal or accounting services that are provided to a committee. 8. The payment of costs of publishing a book or producing a documentary, if the publication and production are for distribution to the general public through traditional distribution mechanisms or a fee is obtained for the purchase of the publication or viewing of the documentary. C. This section does not imply that any transactions that are not specifically listed in subsection B of this section are expenditures unless those transactions otherwise meet the definition of expenditure as defined in section 16-901. 16-922. Independent and coordinated expenditures A. Any person may make independent expenditures. B. An expenditure is not an independent expenditure if either of the following applies: 1. 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. 2. Both of the following apply: (a) 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. (b) The candidate or candidate's agent provides the nonpublic information with an intent toward having the expenditure made. C. In evaluating whether an expenditure is an independent expenditure, a filing officer or enforcement officer may consider the following to be rebuttable evidence of coordination: 1. 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. 2. 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. 3. 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. D. Notwithstanding subsection C of this section, coordination does not exist under either of the following: 1. If the person making the expenditure maintains a firewall between the person and that person's agent in compliance with all of the following: (a) The person's agent did not participate in deciding to make the expenditure or in deciding the content, timing or targeting of the expenditure. (b) The person making the expenditure has a written policy establishing the firewall and its requirements. (c) The person making the expenditure and the person's agent followed the written policy regarding the firewall. 2. 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. E. An expenditure that is coordinated with a candidate, other than a coordinated party expenditure, is deemed an in-kind contribution to the candidate. F. An entity that makes an independent expenditure, other than an individual or a committee, shall file independent expenditure reports pursuant to section 16-926, subsection H. 16-925. Advertising and fundraising disclosure statements A. A person that makes an expenditure for an advertisement or fundraising solicitation, other than an individual, shall include the following disclosures in the advertisement or solicitation: 1. The words "paid for by", followed by the name of the person making the expenditure for the advertisement or fundraising solicitation. 2. Whether the expenditure was authorized by any candidate, followed by the identity of the authorizing candidate, if any. B. In addition to the disclosure required by subsection A of this section, a political action committee that makes an expenditure for an advertisement shall include a disclosure stating: 1. 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. 2. 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 shall state "paid for by _____" as prescribed by subsection A of this section, followed by "with _____% from out-of-state contributors" with the blank to be filled by the aggregate percentage prescribed by this paragraph. C. If a disclosure contains any acronym or nickname that is not commonly known, the disclosure shall also spell out the acronym or provide the full name. D. If the advertisement is: 1. Broadcast on radio, the disclosure shall be clearly spoken at the beginning or end of the advertisement. 2. Delivered by hand or by mail, the disclosure shall be clearly readable, and if the advertisement is paid for by a political action committee, the disclosure shall be displayed in a height that is at least ten percent of the vertical height of the advertisement. 3. Delivered electronically, the disclosure shall be clearly readable. 4. Displayed on a sign or billboard, the disclosure shall be displayed in a height that is at least four percent of the vertical height of the sign or billboard, except that if the advertisement is paid for by a political action committee, the disclosure shall be displayed in a height that is at least ten percent of the vertical height of the sign or billboard. 5. Broadcast on television or in a video or film, both of the following requirements apply: (a) The disclosure shall 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 four seconds, a spoken disclosure statement is not required. (b) The written disclosure statement shall be printed in letters that are displayed in a height that is at least four percent of the vertical picture height, except that if the advertisement is paid for by a political action committee, the written disclosure statement shall be displayed in a height that is at least ten percent of the vertical picture height. E. This section does not apply to: 1. Social media messages, text messages or messages sent by a short message service. 2. Advertisements that are placed as a paid link on a website, if the message is not more than two hundred characters in length and the link directs the user to another website that complies with this section. 3. 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. 4. Bumper stickers, pins, buttons, pens and similar small items on which the statements required in this section cannot be conveniently printed. 5. A solicitation of contributions by a separate segregated fund. 6. A communication by a tax-exempt organization solely to its members. 7. A published book or a documentary film or video. 16-926. Campaign finance reports; contents A. A committee shall file campaign finance reports with the filing officer. The secretary of state's instructions and procedures manual adopted pursuant to section 16-452 shall prescribe the format for all reports and statements. B. A campaign finance report shall set forth: 1. The amount of cash on hand at the beginning of the reporting period. 2. Total receipts during the reporting period, including: (a) An itemized list of receipts in the following categories, including the source, amount and date of receipt, together with the total of all receipts in each category: (i) Contributions from in-state individuals whose contributions exceed $100 for that election cycle, including identification of the contributor's occupation and employer. Notwithstanding section 16-901, paragraph 29, subdivision (a), a person whose residential address is protected from public disclosure pursuant to section 16-153 is not required to disclose the person's residential address and shall instead provide an alternate mailing address. (ii) Contributions from out-of-state individuals, including identification of the contributor's occupation and employer. (iii) Contributions from candidate committees. (iv) Contributions from political action committees. (v) Contributions from political parties. (vi) Contributions from partnerships. (vii) For a political action committee or political party, contributions from corporations and limited liability companies, including identification of the corporation's or limited liability company's file number issued by the corporation commission. (viii) For a political action committee or political party, contributions from labor organizations, including identification of the labor organization's file number issued by the corporation commission. (ix) For a candidate committee, a candidate's contribution of personal monies. (x) All loans, including identification of any endorser or guarantor other than a candidate's spouse, and the contribution amount endorsed or guaranteed by each. (xi) Rebates and refunds. (xii) Interest on committee monies. (xiii) The fair market value of in-kind contributions received. (xiv) Extensions of credit that remain outstanding, including identification of the creditor and the purpose of the extension. (b) The aggregate amount of contributions from all in-state individuals whose contributions do not exceed $100 for the election cycle. 3. An itemized list of all disbursements in excess of $250 during the reporting period in the following categories, 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: (a) Disbursements for operating expenses. (b) Contributions to candidate committees. (c) Contributions to political action committees. (d) Contributions to political parties. (e) Contributions to partnerships. (f) For a political action committee or political party, contributions to corporations and limited liability companies, including identification of the corporation's or limited liability company's file number issued by the corporation commission. (g) For a political action committee or political party, contributions to labor organizations, including identification of the labor organization's file number issued by the corporation commission. (h) Repayment of loans. (i) Refunds of contributions. (j) Loans made. (k) The value of in-kind contributions provided. (l) 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. (m) 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. (n) 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. (o) Any other disbursements or expenditures. 4. The total sum of all receipts and disbursements for the reporting period. 5. A certification by the committee treasurer, issued under penalty of perjury, that the contents of the report are true and correct. C. For the purposes of reporting under subsection B of this section: 1. A contribution is deemed to be received either on the date the committee knowingly takes possession of the contribution or 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. 2. 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. 3. 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 shall use a consistent method of recording transactions throughout the election cycle. D. The amount of an in-kind contribution of services shall be equal to the usual and normal charges for the services on the date performed. E. If any receipt or disbursement is earmarked, the committee shall report the identity of the person to whom the receipt or disbursement is earmarked. F. Candidate committee reports shall be cumulative for the election cycle to which they relate. Political action committee and political party reports shall be cumulative for a two-year election cycle ending in the year of a statewide general election. If there has been no change during the reporting period in an item listed in the immediately preceding report, only the amount need be carried forward. G. For a political action committee that receives individual contributions through a payroll deduction plan, that committee is not required to separately itemize each contribution received from the contributor during the reporting period. In lieu of itemization, the committee may report all of the following: 1. The aggregate amount of contributions received from the contributor through the payroll deduction plan during the reporting period. 2. The individual's identity. 3. The amount deducted per pay period. H. An entity that makes independent expenditures or ballot measure expenditures in excess of $1,000 during a reporting period shall file an expenditure report with the filing officer for the applicable reporting period. Expenditure reports shall 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. 16-927. Campaign finance reporting period A. A political action committee and political party shall file a campaign finance report covering each reporting period as follows: 1. For a calendar quarter without an election, the political action committee or political party shall file a quarterly report. The quarterly report shall be: (a) Filed not later than the fifteenth day of the month after the calendar quarter. (b) Complete through the last day of the calendar quarter. 2. For a calendar quarter with an election, the political action committee or political party shall file a preelection and postelection report as follows: (a) A preelection report shall be: (i) Filed not later than fifteen days before the election. (ii) Complete from the first day of the applicable calendar quarter through the seventeenth day before the election. (b) A postelection report shall be: (i) Filed not later than the fifteenth day after the applicable calendar quarter. (ii) Complete from the sixteenth day before the election through the last day of the applicable calendar quarter. B. A candidate committee for a statewide candidate shall file campaign finance reports covering each reporting period as follows: 1. A quarterly report that is filed for each calendar quarter every year. A quarterly report shall be filed not later than the fifteenth day of the month after the calendar quarter. 2. In addition to the reports prescribed by paragraph 1 of this subsection, a postprimary report that is complete through the primary election and that is filed not later than fifteen days after the primary election. C. 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 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 report that is filed for each calendar quarter in the year of the general election for the office that candida