Section R2-20-702. Use of Campaign Funds

A.      A participating candidate shall use funds in the candidate’s current campaign account to pay for goods and services for direct campaign purposes only. Funds shall be disbursed and reported in accordance with A.R.S. § 16-948(C).

B.       A participating candidate’s payment from a campaign account to a political committee or civic organization is not a contribu- tion if the payment is reasonable in relation  to the value received. Payment of customary charges for services rendered, such as for printing voter or telephone lists, and payment of not more than $200 per person to attend a political event open to the public or to party members shall be considered reason- able in relation to the value received.

C.      A participating candidate shall not use funds in the candidate’s campaign account for:

1.        Costs of legal defense in any campaign law enforcement proceeding or for any affirmative claim or litigation in court or before the Commission regarding a campaign. This prohibition does not bar use of campaign funds for payments to attorneys or certified accountants for proac- tive compliance advice and assistance.

2.        Food and beverages for staff and volunteers exceeding

$11 for breakfast, $16 for lunch, and $27 for dinner, per person.

3.        Personal use, which includes, but is not limited to, any item listed below:

a.         Household food items or supplies.

b.        Clothing, other than items of de minimis value that are used in the campaign, such as campaign “t- shirts” or caps with campaign slogans.

c.         Tuition payments, other than those associated with training campaign staff.

d.        Mortgage, loan, rent, lease or utility payments:

i.         For any part of any personal residence of the candidate or a member of the candidate’s fam- ily; or

ii.        For real or personal property that is owned or leased by the candidate or a member of the can-

didate’s family and used for campaign pur- poses, to the extent the payments exceed the fair market value of the property usage.

e.         Admission to a sporting event, concert, theater or other form of entertainment, unless part of a specific campaign activity.

f.         Dues, fees or gratuities at a country club, health club, recreational facility or other nonpolitical orga- nization, unless they are part of the costs of a spe- cific fundraising event that takes place on the organization’s premises.

g.        Gifts or donations.

h.        Extended warranties or other  similar purchase options that extend beyond the campaign.

4.        Payment to a candidate or a candidate’s family member, as defined in R2-20-101(13), or an enterprise owned in whole or part by a candidate or family member, for the provisions of goods or services to the extent the payments exceed the fair market value of the goods or services. All payments made to family members or to enterprises owned in whole or part by the candidate or a family mem- ber shall be clearly itemized and indicated as such in all campaign finance reports.

D.      Participating candidates may purchase fixed assets with a value not to exceed $800. Fixed assets, including accessories, purchased with campaign funds that can be used for non-cam- paign purposes with a value of $200 or more shall be turned into the Commission no later than 14 days after the primary election or the general election if the candidate was successful in the primary. For purposes of determining whether a fixed asset is valued at $200 or more, the value shall include any accessories purchased for use with the fixed asset in question. A candidate may elect to keep an item by reimbursing the Commission for  80 percent  of the original  purchase price including the cost of accessories.

E.       During the primary election period, a participating candidate shall not make any expenditure greater than the difference between:

1.        The sum of early contributions received plus public funds disbursed through the primary election period; less

2.        All other expenditures made during and for the explor- atory, qualifying and primary election periods.

F.       During the general election period, a participating candidate shall not make any expenditure greater than the difference between:

1.        The amount of public funds disbursed during and for the general election period; less

2.        All other expenditures made during and for the general election period.

Historical Note

New Section made by exempt rulemaking at 8 A.A.R. 588, effective November 27, 2001 (Supp. 02-1). Section repealed; new Section made by exempt rulemaking at 11

A.A.R. 4518, effective May 28, 2005 (Supp. 05-4). Amended by exempt rulemaking at 13 A.A.R. 3606, effective January 1, 2008 (Supp. 07-4). Amended by

exempt rulemaking at 15 A.A.R. 1423, effective October 22, 2009 (Supp. 09-3). Amended by exempt rulemaking

at 17 A.A.R. 1267, effective April 12, 2011 (Supp. 11-2). Since language in subsections R2-20-702(C)(3)(d)(i) and

(ii) and R2-20-702(C)(4) and (5) are substantively identi- cal, the Commission requested to remove the redundant language in R2-20-702(C)(3)(d)(i) and (ii) under A.R.S.

§ 41-1011(C), Office File No. M11-345, filed October 3, 2011 (Supp. 11-2). Amended by exempt rulemaking at 19

A.A.R. 1702, effective October 6, 2011 (Supp. 13-2).