Section R2-20-105. Certification for Funding

A.      After a candidate is certified as a participating candidate, pur- suant to A.R.S. § 16-947, in accordance with the procedure set forth in R2-20-104, that candidate may collect qualifying con- tributions only during the qualifying period.

B.       A participating  candidate must submit to the Secretary of State, a list of names of persons who made qualifying contri- butions, an application for funding prescribed by the Secretary of State, the minimum number of original reporting slips, and an amount equal to the sum of the qualifying contributions col- lected pursuant to A.R.S. § 16-950 no later than one week after the end of the qualifying period. Any and all expenses associ- ated with obtaining the qualifying contributions, including credit card processing fees must be paid for from the candi- date’s early contributions or personal monies. A candidate may develop his or her own three-part reporting slip for quali- fying contributions, or one that is photocopied or computer reproduced, if the form substantially complies with the form prescribed by the Commission. The candidate must comply with the Act and ensure that the original qualifying slip is ten- dered to the Secretary of State, a copy remains with the candi- date, and that a copy is given to the contributor.

C.      A candidate may accept electronic $5 qualifying contributions up to a maximum of 50 percent of the minimum number required to qualify for funding for the elected office sought by the candidate. The Secretary of State’s secured internet portal must be used to collect electronic $5 qualifying. A $5 contri- bution must accompany every $5 qualifying contribution form and must be submitted via the Secretary of State’s portal using a private electronic payment service, specified by the Secre- tary of State’s Office, bank account, credit or debit card. A non-refundable transaction fee may be assessed on electronic

$5 qualifying contribution transactions. The transaction fee is not a contribution to the candidate’s campaign and is paid by the contributor. If excess funds are accumulated by the candi- date’s campaign based on the transaction fee then all excess funds must be given to the Commission and must be entered into the candidate’s campaign finance report as interest/divi- dend/other income in accordance with A.R.S. § 16-915(3)(e).

D.      A solicitor who seeks signatures and qualifying contributions on behalf of a participating candidate shall provide his or her residential address, typed or printed name and signature on

each reporting slip. The solicitor shall also sign a sworn state- ment on the contribution slip avowing that the contributor signed the slip, that the contributor contributed the $5, that based on information and belief, the contributor’s name and address are correctly stated and that each contributor is a qual- ified elector of this state. If a contribution is received unsolic- ited, the candidate  or  contributor  may  sign  the  qualifying contribution form as the solicitor and is accountable for all of the responsibilities of a solicitor. Nothing in this rule shall pro- hibit the use of direct mail or the internet to obtain qualifying contributions as long as an original signature is provided on the qualifying contribution form. The candidate may sign the qualifying contribution form as the solicitor and is accountable for all of the responsibilities of a solicitor. For qualifying con- tributions received in accordance with subsection (C) of this Section, the residential address and signature of the solicitor is not required.

E.       The Secretary of State has the authority to approve or deny a candidate for Clean Elections funding, pursuant to A.R.S. § 16-950(C) based upon the verification of the qualifying contri- bution forms by the appropriate county recorder. The county recorder shall disqualify any qualifying contribution forms that are:

1.        Unsigned by the contributor;

2.        Undated; or

3.        That the recorder is unable to verify as matching signa- ture of a person who is registered to vote, on the date specified inside the electoral district the candidate is seeking.

F.       The Secretary of State will notify the candidate and the Com- mission regarding the approval or denial of Clean Elections funds. A candidate who is denied Clean Elections funding after all of the slips are verified is eligible to submit supple- mental qualifying contribution forms for one additional oppor- tunity to be approved for funding pursuant to subsection (G) of this rule.

G.      The amount equal to the sum of the qualifying contributions collected and tendered to the Secretary of State pursuant to

A.R.S. § 16-950(B) will be deposited into the fund, and the amount tendered will not be returned to a candidate if a candi- date is denied Clean Elections funding.

H.      In accordance with the procedure set forth at A.R.S. § 16- 950(C), if the Secretary of State determines that the result of the five percent random sample is less than 110 percent of the slips needed to qualify for funding, then the Secretary of State shall send all of the slips for verification. If the county recorder has verified all of the candidate’s signature slips and there is an insufficient number of valid qualifying contribution slips to qualify the candidate for funding, the candidate may make only one supplemental filing of additional qualifying contribution slips and qualifying contributions to the Secretary of State if all of the following apply:

1.        The candidate files at least the minimum number of addi- tional slips needed to qualify for funding;

2.        The slips are not receipts for duplicate contributions from individuals who have previously contributed to that can- didate; and

3.        The period for filing qualifying contributions slips has not expired.

I.        The Secretary of State shall forward facsimiles of all of the supplemental qualifying contribution slips to the appropriate county recorders for the county of the contributors’ addresses as shown on the contribution slips. The county recorder shall verify all of the supplemental slips within 10 business days after receipt of the facsimiles and shall provide a report to the Secretary of State identifying as disqualified any slips that are

unsigned by the contributor or undated or that the recorder is	C.	The Commission may review and affirm or change its determi-
unable to verify as matching the signature of a person who is		nation that the candidate is or is not opposed until the ballot for
registered to vote, on the date specified on the slip, inside the		the election is established.
electoral district of the office the candidate is seeking. On	D.	Within seven days after a primary election and before the Sec-
receipt of the report of the county recorder on all supplemental		retary of State completes the canvass, the Commission shall
slips, the Secretary of State shall calculate the candidate’s total		disburse funds for general election campaigns to the participat-
number  of   valid  qualifying   contribution  slips  and  shall		ing candidates who received the greatest number of votes at
approve or deny the candidate for funds.		each primary election, provided that the candidate with the
J.     Pursuant to A.R.S. § 16-956(F), the minimum number of qual-		highest number of votes out of the total number of votes, has at
ifying contributions shall be as follows:		least two percentage points greater than the candidate with the
1.     Legislature: 250		next highest votes based on the unofficial results as of that
2.     Mine Inspector: 650		date. In a legislative race for the Arizona House of Representa-
3.     Corporation Commissioner: 1,700		tives, the Commission shall disburse funds for general election
4.     Superintendent of Public Instruction: 1,700		campaigns to participating candidates with the highest or sec-
5.     Treasurer: 1,700		ond highest number of votes cast, provided such candidate
6.     Attorney General: 2,800		received votes totaling at least two percentage points, of the
7.     Secretary of State: 2,800		total ballots cast, larger than the vote total cast for the candi-
8.     Governor: 4,500		date with the third highest vote total.
Historical Note	E.	Promptly after the Secretary of State completes the canvass,
New Section adopted by exempt rulemaking at 6 A.A.R.		the Commission shall disburse funds for general election cam-
1567, effective June 21, 2000 (Supp. 00-2). Section		paigns to all eligible participating candidates to whom pay-
repealed; new Section made by exempt rulemaking at 8		ment  has  not  been  made.  If  a  participating  candidate  has
A.A.R. 588, effective October 17, 2001 (Supp. 02-1).		received funds from the Commission pursuant to subsection
Amended by exempt rulemaking at 9 A.A.R. 3506, effec-		(D) and the canvass or recount determines that the candidate is
tive April 30, 2002 (Supp. 03-3). Amended by exempt		not eligible to appear on the general election ballot, the partic-
rulemaking at 13 A.A.R. 2434, effective August 27, 2007		ipating candidate shall return all unused funds to the Fund
(Supp. 07-2). Amended by exempt rulemaking at 16		within 10 days after such determination is made. That candi-
A.A.R. 1200, effective February 28, 2008 (Supp. 10-2).		date shall make no expenditures from general election funds
Subsection R2-20-105(C) amended by exempt rulemak-		from the date of the canvass.
ing at 19 A.A.R. 1688, effective October 6, 2011; Subsec-	F.	The Commission may refuse to distribute funds to participat-
tion R2-20-105(J) amended by exempt rulemaking at 19		ing candidates in cases in which the Commission finds evi-
A.A.R. 1688, effective May 23, 2013 (Supp. 13-2).		dence   of    fraud   or   illegal   activity    committed   by   the
		participating candidate.
R2-20-106.     Distribution of Funds to Certified Candidates	G.	Pursuant to A.R.S. § 16-953(A), a participating candidate shall
A.   Before the initial disbursement of funds, the Commission shall		return to the Fund all of his or her primary election funds not
review the candidate’s funding application and all relevant		committed to expenditures (1) during the primary election
facts and circumstances and:		period; and (2) for goods or services directed to the primary
1.     Verify that the number of signatures on the candidate’s		election. A candidate shall not be deemed to have violated
nominating  petitions   equals  or  exceeds  the  number		A.R.S. § 16-953(A) or this subsection on account of failure to
required pursuant to A.R.S. § 16-322 as follows:		use all materials purchased with primary election funds prior
a.      If the application is submitted before the March 1		to the primary election, provided such candidate exercises
voter registration list is determined, the Commission		good faith and diligent efforts to comply with the requirement
shall verify that the number of signatures on the can-		that goods and services purchased with primary election funds
didate’s nominating petitions equals or exceeds 115		be directed to the primary election. Subject to A.R.S. § 16-
percent of the number required pursuant to A.R.S. §		953(A) and this subsection, a candidate may continue to use
16-322 based on the prior election voter registration		goods purchased with primary election funds during the gen-
list as determined by the Secretary of State; or		eral election period.

b. If the application is submitted after the current year March 1 voter registration list is determined, the Commission shall verify that the number of signa- tures on the candidate’s nominating petitions is equal to or greater than the number required pursu- ant to A.R.S. § 16-322.

2.        Determine that the required number of qualifying contri- butions have been received and paid to the Secretary of State for deposit in the Fund; and

3.        Determine whether the candidate is opposed in the elec- tion.

B.  In making the determinations described in subsection (A)(3), the Commission shall consider all relevant facts and circum- stances, and it shall not be bound by election formalities such as the filing of nominating petitions by others in determining whether an applicant is opposed. Among other evidence the Commission may consider is the existence of exploratory committees or filings made to organize campaign committees of opponents and other like indicia.

Historical Note

New Section adopted by exempt rulemaking at 6 A.A.R. 1567, effective June 21, 2000 (Supp. 00-2). Section repealed; new Section made by exempt rulemaking at 8

A.A.R. 588, effective October 17, 2001 (Supp. 02-1). Amended by exempt rulemaking at 13 A.A.R. 2434,

effective August 27, 2007 (Supp. 07-2).