SB 1180 Initials SJ Page 1 Appropriations ARIZONA HOUSE OF REPRESENTATIVES Fifty-fifth Legislature Second Regular Session Senate: APPROP DPA/SE 7-2-1-0 | 3 rd Read 25-3-2-0 SB 1180: COVID-related; expenditures; reporting; federal funds S/E: campaigns; expenditures; commission; appropriation Sponsor: Senator Gowan, LD 14 Committee on Appropriations Summary of the Strike-Everything Amendment to SB 1180 Overview Modifies statute relating to campaign contributions, lobbyist expenditures and the Commission on Salaries for Elective State Officers (Commission). History The Secretary of State (SOS) is a statewide elected officer who serves a term of four years (AZ Const. Art. V, § 1). The SOS is responsible for the registration of lobbyists and serves as the filing officer for state campaign finance reports (A.R.S. §§ 41-1232; 16-901). The Commission on Salaries for Elective State Officers is authorized by the Arizona Constitution to be established by the Legislature. The Commission is composed of five members who are appointed from private life and must report to the Governor with recommendations concerning the rate of pay of elected state officers. Such recommendations for legislative salaries must be certified by the Secretary of State and then submitted to the qualified electors at the next regular general election (AZ Const. Art. V, § 12). Provisions 1. Requires a campaign finance report to additionally include: a) An itemized list of all people who are required to be registered as an authorized public lobbyist, a lobbyist or designated public lobbyist pursuant to statute; b) Who the committee reasonably knows or has credited with two or more contributions that in aggregate total $15,000 or more; and c) The prescribed itemized list must include the name and address of the person who forwarded or is credited with the contributions, the person's employer and the aggregate amount of contributions. (Sec. 1) 2. Instructs a political action committee (PAC) and a candidate committee to report every contribution within 30 business days after receiving the contribution on a web-based digital platform maintained by the SOS. (Sec. 2) 3. States that the contribution report posted on the web-based digital platform must only include the name of the contributor, the amount and date of the contribution. (Sec. 2) 4. Directs a principal, public body, designated public lobbyist, lobbyist for compensation and designated lobbyist to report the following within five business days after making the expenditures: a) All single expenditures; and SB 1180 Initials SJ Page 2 Appropriations b) The aggregate of all expenditures of $20 or less received by or benefitting a state employee or officer. (Sec. 4, 5) 5. Contains a delayed repeal of January 1, 2025 of the prohibition on a lobbyist making an expenditure for the entertainment of a state officer, state employee or elected or appointed members of a political subdivision governing body. (Sec. 6) 6. Stipulates that the SOS must develop and maintain a web-based digital platform for lobbyist expenditure reporting and campaign contributions that is accessible from a mobile application and allows for the real-time entry of information. (Sec. 7) 7. Authorizes the SOS to enter into a contract with a third party to develop and maintain the web- based digital platform application. (Sec. 7) 8. Changes the name of the Commission to the Independent Commission on Salaries for Elective State Officers. (Sec. 8) 9. Modifies and outlines the membership of the Commission and specifies that the Commission meets on the call of the chair or vice chair. (Sec. 9) 10. Asserts that the Commission, beginning in 2023, must meet annually, rather than biennially, to conduct a review of the rates of pay of elective state officers and must include consideration of changes to the state and national cost of living changes. (Sec. 10) 11. Requires the Commission to submit, no later than December 1, a report of the results of each review to the Governor and the Legislature. (Sec. 10) 12. Removes the requirement that the Governor submit the report to the Legislature as part of the Governor's budget. (Sec. 11) 13. Provides that the recommendations of the Commission, rather than the recommendations of the Governor, be enacted on July 1, if that date is after the close of the regular legislative session. (Sec. 11) 14. Replaces the legislative salary referral process with a requirement that legislative salaries be no less than 60% of the Governor's salary, beginning on the second Monday of 2023. (Sec. 11) 15. Appropriates $10 million from the state General Fund in FY 2023 to the SOS for development and implementation of the campaign finance and lobbyist report systems. (Sec. 12) 16. Specifies that the appropriation is exempt from the provisions of statute relating to lapsing of appropriations. (Sec. 12) 17. Directs the SOS to submit the prescribed proposed expenditures quarterly to the Joint Legislative Budget Committee. (Sec. 12) 18. Contains a conditional enactment clause upon voter approval of the amendment to the Arizona Constitution by passage of Senate Concurrent Resolution 1018, Fifty-fifth Legislature, Second Regular Session. (Sec. 13) 19. Modifies the definitions of expenditure, gift and single expenditure. (Sec. 3) 20. Makes technical and conforming changes. (Sec. 1-5, 8-11) ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note