ARTICLE VII. CAMPAIGN FINANCE; CANDIDATES, POLITICAL ACTION COMMITTEES, AND PUBLIC FUNDING PROGRAM

   The provisions of this article shall apply to all political committees making contributions to candidates for the offices of mayor or council member, and all candidate committees in any city election. Political action committees intending to influence any petition drive must also comply with provisions of article XI of this chapter.

(Ord. No. 11525, § 2, 2-21-18)

Sec. 12-81. Public matching funds program; campaign contract.

   (a)   In exchange for public matching funds, a candidate for mayor or council member may file a signed, notarized contract with the city agreeing to abide by limitations on the candidate's contributions, limitations on campaign expenditures, and limitations on the use of all contributions as specified in the City Charter, and pursuant to the Campaign Finance Administration Rules and Regulations adopted by the mayor and council.

   (b)   An individual wishing to become a public funding candidate must sign a campaign contract within thirty (30) days after the first of any of the following events occur:

      (1)   The individual circulates or files nomination papers for a specified election; or

      (2)   The individual publicly or formally declares candidacy for a specified election; or

      (3)   The individual accepts a contribution or makes an expenditure for a specified election.

   (c)   A candidate who signs a contract shall comply with all contribution and expenditure limitations, even if the candidate never qualifies to receive public funds.

(Ord. No. 11525, § 2, 2-21-18)

Sec. 12-82. Campaign finance administrator; duties thereof.

   (a)   The city clerk or other officer appointed by the mayor and council shall administer the public matching funds program as the "campaign finance administrator." The office of the campaign finance administrator shall not be included in the classified civil service.

   (b)   The campaign finance administrator shall be responsible for the management of said office, shall administer the program, and is authorized to adopt, promulgate, amend, and rescind administrative rules and regulations to carry out the policies and purposes of the program. Prior to becoming effective, such rules and regulations shall be approved by the mayor and council.

(Ord. No. 11525, § 2, 2-21-18)

Sec. 12-83. Registration of political committees.

   (a)   A candidate for election shall register as a candidate committee if the candidate receives contributions or makes expenditures, in any combination, of at least five hundred dollars ($500) in connection with that candidacy.

   (b)   For public funding candidates any contributions received prior to the filing of a statement of organization will not be matched with public funds.

   (c)   A person that qualifies as a committee as prescribed by this section shall report all contributions, expenditures and disbursements that occurred before qualifying as a committee and shall maintain and produce records as prescribed by section 12-85 of this code.

   (d)   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 one hundred dollars ($1,100) in connection with any election during a calendar year.

   (e)   Notwithstanding the provisions set forth in subsection (d) above, a person shall register as a political action committee prior to the circulation of initiative, referendum or recall petitions.

   (f)   The city clerk shall make a rebuttable presumption that an entity is organized for the primary purpose of influencing the results of an election if it meets the requirements found in A.R.S. § 16-905 (c).

   (g)   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.

   (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 this section shall be increased pursuant to A.R.S. § 16-931.

(Ord. No. 11525, § 2, 2-21-18; Ord. No. 11813, § 1, 1-20-21)

Sec. 12-84. Organization of political committees.

   (a)   A committee shall file a statement of organization with the city clerk within ten (10) days after qualifying as a committee.

   (b)   A statement of organization shall include the following committee information:

      (1)   The committee name, mailing address, e-mail address, website, if any, telephone number, if any, and type of committee. The committee name shall include:

         a.   For a candidate committee, the candidate's first or last name and office sought.

         b.   For a political action committee that is sponsored, the sponsor's name or commonly known nickname.

      (2)   The name, mailing address, e-mail address, website, if any, and telephone number of any sponsor.

      (3)   The name, physical location or street address, e-mail 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, 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 city clerk's campaign finance and reporting guide, agree to comply with this article and all relevant provisions of A.R.S. Title 16, Chapter 6, and all successor provisions, and agree to accept all notifications and service of process via the e-mail address provided by the committee.

   (c)   A committee shall file an amended statement of organization within ten (10) days after any change in committee information.

   (d)   On the filing of a statement of organization a political action committee shall be issued a city identification number.

   (e)   A standing committee shall file a statement of organization with the secretary of state and a copy of the statement with the city clerk. Only the secretary of state shall issue an identification number.

   (f)   A candidate may have only one (1) 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.

(Ord. No. 11525, § 2, 2-21-18)

Sec. 12-85. 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. 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 fifty dollars ($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. Cash contributions are subject to the identification requirements set forth in subsection (d)(2) of this section.

   (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 (2) years following the end of the election cycle.

   (h)   On request of the city clerk or city attorney, 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 city clerk or city attorney.

   (i)   A person that qualifies as a committee as prescribed by A.R.S. § 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.

(Ord. No. 11525, § 2, 2-21-18)

Sec. 12-86. Contribution limits.

   Notwithstanding the provisions of this section, public funding candidates must comply with the requirements of the Tucson Charter and the campaign finance administration rules and regulations.

   (a)   No individual shall make a contribution of more than five hundred dollars ($500) to any candidate for mayor or council member during any campaign period.

   (b)   A political action committee may contribute up to one thousand dollars ($1,000) to any candidate for mayor or council member. No individual member of such committee shall contribute more than five hundred dollars ($500) toward the contribution, nor an aggregate amount of more than five hundred dollars ($500) to any candidate whether through a committee contribution or a personal contribution.

   (c)   No candidate for mayor or council member shall accept or receive a campaign contribution of more than five hundred dollars ($500) from any individual or more than one thousand dollars ($1,000) from any political action committee during any campaign period.

   (d)   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.

   (e)   A candidate committee shall not make contributions to a candidate committee for another candidate.

   (f)   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 mayor or council member shall not transfer contributions to that same candidate's committee for a statewide or legislative office.

      (2)   If a candidate committee for mayor or council member 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 (24) 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.

   (g)   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 (60) 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.

   (h)   A candidate committee may accept contributions only from an individual, a partnership, a candidate committee, a political action committee or a political party.

   (i)   A candidate committee may make unlimited contributions to a person other than a candidate's committee.

   (j)   A candidate may contribute unlimited personal monies to the candidate's own candidate committee.

   (k)   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.

   (l)   A political action committee may make unlimited contributions to persons other than candidate committees.

(Ord. No. 11525, § 2, 2-21-18)