Assigned to JUDE AS PASSED BY COW
ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
AMENDED
FACT SHEET FOR S.C.R. 1027
elections; foreign contributions; certification; donations
Purpose
Subject to voter approval, statutorily prohibits the use of monies or in-kind goods or
services donated by a foreign source for election administration purposes and prohibits a person,
entity or committee from accepting or using contributions, expenditures or in-kind goods or
services contributed by a foreign national to influence the outcome of a ballot measure.
Background
The Federal Election Campaign Act of 1971 (Act) prohibits a foreign national from directly
or indirectly participating in the decision making process regarding a person's federal or non-
federal election related activities, including by way of: 1) a contribution or donation of money or
other thing of value in connection with a federal, state or local election; 2) a contribution or
donation to a committee of a political party; or 3) an expenditure, independent expenditure or
disbursement for electioneering communication. In 2021, the Federal Elections Commission
determined that spending specifically related to ballot initiatives is generally outside the purview
of the Act because such spending is not in connection with elections as defined by the Act (52
U.S.C. 30121; FEC).
Statute prohibits the state or a city, town, county, school district or other public body that
conducts or administers elections from receiving or expending private monies for the purpose of
preparing for, administering or conducting an election, including to register voters (A.R.S.
§ 16-407.01).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
1. Prohibits a foreign national from directing, dictating, controlling or directly or indirectly
participating in the decision-making process of any person, entity or committee with regard to
activities to influence the outcome of a ballot measure referendum.
2. Prohibits a person, entity or committee from knowingly or willfully receiving, soliciting,
accepting or using, contributions, expenditures or in-kind goods or services contributed
directly or indirectly by a foreign national to influence the outcome of an election on a ballot
measure. FACT SHEET – Amended
S.C.R. 1027
Page 2
3. Requires a person, entity or committee that is required to file campaign finance reports to:
a) certify in the reports, under penalty of perjury, that the person, entity or committee has not
knowingly or willfully received, solicited, accepted or used prohibited foreign
contributions, expenditures or in-kind goods or services; and
b) affirm that each person that contributed to influence the outcome of an election on a ballot
measure is not a foreign national and has not knowingly or willfully received, solicited or
accepted, whether directly or indirectly, contributions, expenditures or in-kind goods or
services from one or more prohibited sources aggregating more than $100,000 within the
four-year period immediately preceding the date on which the contribution is made.
4. Requires the Secretary of State (SOS) to require any person, entity or committee that files a
statement of organization with the intent or purpose of influencing the outcome of an election
on a ballot measure to certify that no preliminary activity was funded by prohibited sources.
5. Requires a person that makes a contribution to a person, entity or committee that is required to
file a campaign finance report for influencing the outcome of an election on a ballot measure,
or a person that makes a ballot measure expenditure that is required to be reported, to provide
the applicable person, entity or committee treasurer and the SOS, within 48 hours of making
that contribution or expenditure, a certification that includes a dated and sworn statement under
penalty of perjury that the person:
a) is not a foreign national;
b) has not knowingly or willfully received, solicited or accepted, directly or indirectly,
contributions, expenditures or in-kind goods or services from one or more prohibited
sources aggregating more than $100,000 within the four-year period immediately
preceding the date on which the contribution or expenditure is made; and
c) that the person will not accept contributions, expenditures or in-kind goods or services from
a foreign national until after the date of the election in which the ballot measure will appear
on the ballot.
6. Stipulates that the required certifications do not apply to a person or organization when
providing common goods.
7. Stipulates that these certifications are in addition to any reports required.
8. Stipulates that these requirements must not be deemed to create or eliminate any existing donor
disclosure rights or duties beyond those enumerated in this legislation.
9. Deems that a determination that a person required to provide this certification has indeed
accepted contributions, expenditures or in-kind goods or services from foreign nationals in an
aggregate amount or more than $100,000 within the applicable four-year period creates a
presumption that the person has committed a violation.
10. Requires any person who makes a ballot measure expenditure, or a person entity or committee
that receives a ballot measure expenditure and is required to file campaign finance reports, to
keep and preserve a record of the expenditure for two years following the end of the election
cycle during which the expenditure was made or received. FACT SHEET – Amended
S.C.R. 1027
Page 3
11. Prohibits a government entity in Arizona from using monies or in-kind goods or services
donated, directly or indirectly, by a foreign national.
12. Requires a person or vendor that provides services to a government entity for election
administration to provide a certification (foreign donation certification) to the SOS that
includes a dated and sworn statement, under penalty of perjury, that the person is not
knowingly the direct or indirect recipient of donations from a foreign national.
13. Specifies that the foreign donation certification requirements do not apply to a person or
organization when providing common goods or a facility that serves as a voting location.
14. Requires the person to update the foreign donation certification annually.
15. Requires a person, if the person obtains information that was unknown at the time of initial
certification, to update the initial certification within five business days to reflect the new
information and to include a new statement that the person is not knowingly the direct or
indirect recipient of foreign donations.
16. Requires the SOS to:
a) maintain records of submitted foreign donation certifications and to post the foreign
donation certifications on the SOS's website;
b) require government entities to provide the SOS a quarterly report of all persons or vendors
that provide services for election administration to the government entity; and
c) notify a government entity by email if the government entity fails to file a quarterly report
as outlined, and to advise the government entity of possible enforcement actions.
17. Classifies knowingly failing to provide an accurate initial or updated foreign donation
certification to the SOS as a class 1 misdemeanor.
18. Stipulates that a person's or vendor's failure to provide an accurate foreign donation
certification:
a) invalidates any agreement between the person and a government entity; and
b) bars a state, county or local government entity from entering into or continuing any
agreement with the person.
19. Allows the Attorney General to file an action regarding a person's knowing violation of the
foreign donation prohibition or certification requirement.
20. Specifies that a foreign donation violation action may include a request for:
a) an injunction;
b) damages of at least $5,000 for each knowing violation; and
c) other relief that the court may provide.
21. Allows any qualified elector or state officer to initiate a civil action to enjoin a foreign donation
violation or enforce any requirement relating to disclosure of foreign donations.
22. Requires the court to award a prevailing civil claimant:
a) injunctive relief sufficient to prevent the defendant from violations or engaging in, acts that
aid or abet foreign donation violations; FACT SHEET – Amended
S.C.R. 1027
Page 4
b) damages in the amount of $1,000 per day from the date of noncompliance until the
defendant comes into compliance; and
c) costs and attorney fees.
23. Specifies that the remedies, duties, prohibitions and penalties associated with foreign donation
violations are in addition to all other causes of action, remedies or penalties as provided by
law.
24. Defines person as 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 and excludes poll workers.
25. Defines foreign national as:
a) any individual who is not a lawful citizen or permanent resident United States Citizen:
b) a government, subdivision or municipality of a foreign country;
c) a foreign political party;
d) any entity organized under the laws of a foreign country or that has a place of nosiness in
a foreign country; and
e) any U.S. entity that is wholly or majority owned by any foreign national, unless any
contribution or expenditure the entity makes derives entirely from monies generated by the
entity's operations in the U.S, and all decisions concerning the contribution or expenditure
are made by individuals who are U.S citizens or permanent residents, except for decisions
setting overall budget amounts.
26. Specifies that a foreign government or foreign nongovernmental source does not include
federally recognized sovereign tribal nations.
27. Defines common goods as items that are commonly used across wide variety of organizations
and that are not specific to the administration of elections.
28. Defines preliminary activity as conducting a poll or focus group, drafting ballot measure
language, making telephone calls or travelling.
29. Makes technical and conforming changes.
30. Requires the SOS to submit the proposition to the voters at the next general election.
31. Becomes effective if approved by the voters and on proclamation of the Governor.
Amendments Adopted by Committee of the Whole
1. Expands the list of foreign nationals that are prohibited from contributing to ballot measures
to include foreign political parties, entities that are organized under or have a principal place
of business in a foreign country, and any U.S. entity that is wholly or majority owned by any
foreign national, unless certain exceptions apply.
2. Prohibits foreign nationals from directing, controlling or directly or indirectly participating in
a decision-making process regarding activities that influence the outcome of a ballot initiative
or referendum. FACT SHEET – Amended
S.C.R. 1027
Page 5
3. Requires a person filing campaign finance reports to affirm that each person that contributed
to influence the outcome of a ballot measure is not a foreign national and has not knowingly
used prohibited foreign contributions exceeding an aggregate of $100,000 within the four-year
period immediately preceding the date the contribution was made.
4. Directs the SOS to require any person, entity or committee that files a statement of organization
with intent to influence the outcome of a ballot measure to certify that no preliminary activity
was funded by prohibited sources.
5. Requires a person who makes outlined contributions or expenditures to provide a sworn
certification to the SOS and the applicable person, entity or committee treasurer that the person
is not a foreign national and has not knowingly received prohibited monies aggregating more
than $100,000 within the previous four years from prohibited sources, unless the person
provided common goods.
6. Stipulates that a determination that a person required to provide prescribed certifications has
accepted prohibited monies from foreign nationals aggregating more than $100,000 is
presumed to have violated prohibitions against such activity.
7. Stipulates that nothing in this legislation shall be deemed to create or eliminate any existing
donor disclosure rights or duties beyond those enumerated in this legislation.
8. Requires any person who makes a ballot measure expenditure, and a person, entity or
committee that receives such expenditures to keep and preserve a record of the expenditure for
at least two years following the end of the applicable election cycle.
9. Defines preliminary activity as conducting a poll or focus group, drafting ballot measure
language, making telephone calls or travelling.
10. Defines common goods as items that are commonly used across a wide variety of organizations
and that are not specific to the administration of elections.
11. Modifies other definitions and makes technical and conforming changes.
Senate Action
JUDE 2/19/25 DP 4-3-0
Prepared by Senate Research
March 4, 2025
ZD/ci