HB2874

Official summary

HB2874 - 572R - Senate Fact Sheet Assigned to JUDE������������������������������������������������������������������ AS PASSED BY CONFERENCE COMMITTEE ARIZONA STATE SENATE Fifty-Seventh Legislature, Second Regular Session AMENDED FACT SHEET FOR H.B. 2874 campaign committees; termination statements; contributions Purpose An emergency measure that, retroactive to July 6, 2016, modifies procedures relating to the accrual and assessment of penalties for untimely filing of campaign finance reports when a committee files a termination statement as prescribed. Background A committee may only terminate when a committee treasurer files a termination statement with the filing officer with whom the committee's statement of organization was filed. The committee treasurer must certify in the termination statement, under penalty of perjury, that: 1) the committee will no longer receive any contributions or make any disbursements; 2) the committee has no outstanding debts or obligations, or the committee does have outstanding debts or obligations, or both, that are over five years old and the committee's creditors have agreed to discharge the debts and obligations and agreed to the termination of the committee; 3) any surplus monies have been disposed of and the committee has no cash on hand; and 4) all contributions and expenditures have been reported, including any disposal of surplus monies ( A.R.S. � 16-934 ). If a committee fails to file a complete campaign finance report, the filing officer must send a written notice by email to the committee within five days after the filing deadline that identifies the late report, describes how fines accrue and identifies methods of payment. A committee that fails to file a timely report must pay the filing officer a penalty of $10 for each day that the filing is late, for the first 15 days, and $25 for each subsequent day that the filing is late. If the committee fails to file a complete report after the filing officer provides notice and within 30 days after the filing deadline, the filing officer may notify the appropriate enforcement officer ( A.R.S. � 16-937 ). There is no anticipated fiscal impact to the state General Fund associated with this legislation. Provisions 1. Modifies the required conditions that a committee treasurer must certify in a committee termination statement by allowing the committee treasurer to specify that the committee either: a) did not receive contributions; or b) received contributions and all currently prescribed conditions apply. 2. Specifies that penalties for untimely filing of campaign finance reports may not be assessed, and any accrued penalties are void if the committee certifies that the committee received no contributions and made no expenditures during the applicable reporting period and the committee files a termination statement. 3. Caps, effective July 1, 2026, the amount of penalties for untimely campaign finance reports that a committee may accrue for each late report at $5,000. 4. Outlines conditions that apply if a committee termination statement states that the committee received no contributions, or if a committee certifies that it received no contributions and made no expenditures during a campaign finance reporting period and files a termination statement, including that: a) penalties may not be assessed and accrue against the committee; b) any penalties assessed or that accrue against a committee for the specific reporting period or against a committee that subsequently files a termination statement stating that the committee received no contributions are deemed void retroactively; and c) for any enforcement action against an outlined committee, the enforcement officer is deemed without jurisdiction and, if the matter is before a court, the court must dismiss the matter promptly. 5. Specifies that penalties may not be assessed against a committee and all accrued penalties are void if the: a) committee files a termination statement by December 31, 2026; and b) penalties were accrued during a reporting period for which the committee certifies and files complete reports that the committee received no contributions and made no expenditures during the reporting period and if the committee subsequently receives contributions and makes expenditures , the committee files complete reports for those reporting periods. 6. Requires the filing officer, within five days after the closing date for filing a campaign finance report, to include a list of all active committees that owe penalties for late filing of reports with the statements and reports that the filing officer must make publicly available on the internet. 7. Makes technical and conforming changes. 8. Becomes effective on signature of the Governor, if the emergency clause is enacted, retroactive to July 6, 2016, with a delayed effective date as noted. Amendments Adopted by Committee 1. Prohibits penalties for untimely campaign finance reports from being assessed or accrued against a committee that certifies that it did not receive contributions and made no expenditures during the applicable reporting period. 2. Applies the conditions that exist when a committee termination statement states that the committee received no contributions to a committee who has not filed a termination statement but certifies that the committee received no contributions and made no expenditures during a campaign finance reporting period. 3. Applies the outlined requirements relating to the accrual and assessment of campaign finance penalties retroactively to January 1, 2022. Amendments Adopted by Committee of the Whole � Adds an emergency clause. Amendments Adopted by Conference Committee 1. Caps, effective July 1, 2026, the amount of penalties that a committee may accrue for a late campaign finance report at $5,000. 2. Specifies that a committee that certifies to receiving no contributions and making no expenditures during a reporting period must also file a committee termination statement for the prohibition on the accrual of assessments to apply and for any accrued assessments to be void. 3. Specifies that penalties may not be assessed against a committee that files a termination statement by December 31, 2026, and accrued penalties are void if the penalties were accrued during a reporting period for which the committee certifies that the committee received no contributions and made no expenditures and, if the committee subsequently receives contributions and makes expenditures, the committee files complete reports for the applicable reporting periods. 4. Requires the filing officer to include a list of all active committees that owe penalties for late filing of reports with the publicly available statements and reports that the filing officer makes available on the internet. 5. Applies the outlined requirements relating to the accrual and assessment of campaign finance penalties retroactive to July 6, 2016, rather than January 1, 2022. 6. Adds an emergency clause. 7. Makes technical and conforming changes. House Action ��������������������������������������������������������� Senate Action FMAE������������ 2/18/26����� DP������ 7-0-0-0�������������� JUDE������������� 3/18/26����� DPA���������� 5-0-2 3 rd Read��������� 2/26/26����������������� 54-0-6 �������������� 3 rd Read��������� 3/26/26������������������������� 18-11-1 �������������������������������������������������������������������������������� 3 rd Read*������� 3/30/26������������������������� 16-12-2 �������������������������������������������������������������������������������� (W/O emergency) �������������������������������������������������������������������������������� * on reconsideration Prepared by Senate Research April 16, 2026 ZD/KS/ci