Arizona committees can end activity and receive relief from some late-report penalties

A committee may end its activity by having its treasurer file a termination statement with the proper filing officer. The rule applies to committees that file campaign finance statements, including standing committees that end activity in one reporting area but remain active in others. The treasurer must certify either that the committee received no contributions or that it will receive no more contributions or make no more payments. If the committee received contributions, it must have no debts, obligations, or void penalties, or its creditors must agree to discharge debts that are more than five years old and agree to termination. The committee must dispose of all surplus money, have no cash left, and report all contributions and spending. After termination, the committee may not receive money or make payments unless it files a new statement of organization. After a termination statement is filed, the committee does not have to file later campaign finance reports, but it must file a new organization statement before resuming financial activity.

Filing officers must stop or void certain late-report penalties when a committee meets specified no-activity and termination requirements, and penalties for each late report are capped at $5,000 beginning July 1, 2026. The rules cover committees with late campaign finance reports, including committees that had no contributions or spending during the reporting period and later file a qualifying termination statement. A committee may avoid or erase penalties for a reporting period if it certifies that it received no contributions and made no expenditures and files the required termination statement. For some termination statements, penalties tied to inactive reporting periods are void retroactively, and related enforcement actions must end or be dismissed. The separate relief for untimely reports requires complete reports and a termination statement filed by December 31, 2026. The $5,000 limit applies to penalties accrued for each late report beginning July 1, 2026. The penalty cap begins July 1, 2026. The special relief for earlier penalties applies when the committee files its termination statement on or before December 31, 2026, and the act states that it applies retroactively from after July 5, 2016.

Filing officers must offer electronic filing, post campaign finance reports online, and publish a list of active committees that owe late-filing penalties. The requirement applies to filing officers responsible for statewide, county, school, community college, special taxing district, city, and town elections and related committees. The penalty list must identify active committees that owe penalties for late reports. A filing officer may meet the electronic filing and online publication requirements by using the secretary of state's electronic filing system. For a late complete report, the filing officer must email the committee within five days after the deadline with information about the report, penalty calculation, and payment methods. The penalty list must be published within five days after the report-closing date, and the late-report notice must be sent within five days after the filing deadline.