Assigned to ELEC FOR COMMITTEE ARIZONA STATE SENATE Fifty-Sixth Legislature, First Regular Session FACT SHEET FOR H.B. 2378 officials; political action committee prohibition Purpose Prohibits the Secretary of State (SOS), a member of a county board of supervisors (county BOS), a county recorder or any other officer in charge of elections, or their employee, from being a chairperson, treasurer or other member of a political action committee (PAC). Background A person must obtain an election officer's certificate issued by the SOS before January 1 of each election year in order to assume the duties or authority of an election officer, clerk of the county BOS or the county recorder in relation to election duties or on behalf of any county. The SOS must examine applicants for election officer certificates (A.R.S. § 16-407). As the chief election officer of the state, the SOS must provide for the oversight and administration of secure and accurate elections. The SOS's office certifies: 1) voting devices; 2) election results; 3) candidates; 4) measures to the ballot; and 5) the results of an election (AZSOS). Statute outlines the duties of a county BOS including: 1) establishing, abolishing and changing election precincts; 2) appointing inspectors and judges of elections; 3) canvassing election returns; 4) declaring election results; and 5) issuing certificates of election results (A.R.S. § 11-251). Statute outlines the duties of the county recorder which includes having custody of and keeping all records, maps and papers deposited in the recorder's office (A.R.S. § 11-461). An entity must register as a PAC if the entity: 1) is organized for the primary purpose of influencing the result of an election; and 2) receives contributions or makes expenditures of at least $1,000 in connection to any election during a calendar year. A PAC must file a statement of organization with the filing officer within 10 days after qualifying as a PAC. Once a statement of organization has been filed by a PAC, the filing officer must issue an identification number to the PAC. Additionally, once a statement of organization has been filed, a PAC may perform any lawful activity without establishing a separate PAC for each activity or specifying each activity in its statement of organization, including: 1) making contributions; 2) making expenditures; or 3) conducting issue advocacy (A.R.S. § 16-906). A PAC treasurer is the custodian of the PAC's books and accounts. The PAC may not make a contribution, expenditure or disbursement without the treasurer's authorization. A PAC must keep records of: 1) all contributions made or received; 2) the identification of a contributor that contributes at least $50 during an election cycle; 3) totals contributed by each contributor during the election cycle; and 4) the name and address of every person that receives a contribution, expenditure or disbursement from the PAC (A.R.S. § 16-907). There is no anticipated fiscal impact to the state General Fund associated with this legislation. FACT SHEET H.B. 2378 Page 2 Provisions 1. Prohibits the SOS, a member of a county BOS, a county recorder or any other officer in charge of elections from being a chairperson, treasurer or other member of a PAC. 2. Prohibits any employee of the SOS, county recorder, other officer in charge of elections or a county BOS from being a chairperson, treasurer or other member of a PAC. 3. Prohibits the SOS, a member of the county BOS, a county recorder or any other officer in charge of elections, or their employee, from coordinating with an PAC to fundraise or advocate for the support or defeat of any candidate or ballot measure. 4. Includes, in the prohibition relating to coordinating with a PAC, independent contractors who are contracted for work related to elections. 5. Exempts, from the prohibition relating to membership in a PAC, an individual's membership in a candidate committee for the individual's own candidacy. 6. Becomes effective on the general effective date. House Action MOE 1/25/23 DPA 10-0-0-0 3 rd Read 2/21/23 49-11-0 Prepared by Senate Research March 2, 2023 AN/CS/slp