Section R2-20-703. Documentation for Direct Campaign Expendi- tures

A.      In addition to the general books and records requirements pre- scribed in R2-20-111, participating candidates shall comply with the following requirements:

1.        All participating candidates shall have the burden of proving that expenditures made by the candidate were for direct campaign purposes. The candidate shall obtain and furnish to the Commission on request any evidence regarding direct campaign expenses made by the candi- date as provided in subsection (A)(2).

2.        All participating candidates shall retain records with respect to each expenditure and receipt, including bank records, vouchers, worksheets, receipts, bills and accounts, journals, ledgers, fundraising solicitation mate- rial, accounting systems documentation, and any related materials documenting campaign receipts and disburse- ments, for a period of three years, and shall present these records to the Commission on request.

3.        All participating candidates shall maintain a list of all fixed assets whose purchase price exceeded $200 when acquired by the campaign. The list shall include a brief description of each fixed asset, the purchase price, the date it was acquired, the method of disposition and the amount received in disposition.

B.       Upon written request from a candidate, the Commission shall determine whether a planned campaign expenditure or fund- raising activity is permissible under the Act. To make a request, a candidate shall submit a written description of the planned expenditure or activity to the Commission. The Com- mission shall inform the candidate whether an enforcement action will be necessary if the candidate carries out the planned expenditure or activity. The Commission shall ensure that the candidate can rely on a “no action” letter. A “no action” letter applies only to the candidate who requested it.

C.      Joint expenditures. Expenditures may be made in conjunction with other candidates, but each candidate shall pay his or her proportionate share of the cost. A candidate’s payment for an advertisement, literature, material, campaign event or other activity shall be considered a joint expenditure including, but not limited to, the following criteria:

1.        The activity includes express advocacy of the election or defeat of more than two candidates;

2.        The purpose of the material or activity is to promote or facilitate the election of a second candidate;

3.        The use and prominence of a second candidate or his or her name or likeness in the material or activity;

4.        The material or activity includes an expression by a sec- ond candidate of his or her view on issues brought up during the election campaign;

5.        The timing of the material or activity in relation to the election of a second candidate;

6.        The distribution of the material or the activity is targeted to a second candidate’s electorate; or

7.        The amount of control a second candidate has over the material or activity.

D.      Any expenditure made by the candidate or the candidate’s committee that cannot be documented as a direct expenditure shall promptly be repaid to the Fund with the candidate’s per- sonal monies.

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 12 A.A.R. 758, effec- tive February 15, 2006 (Supp. 06-1). Amended by final exempt rulemaking at 21 A.A.R. 1641, effective July 23,

2015 (Supp. 15-3).