Arizona Voters Approve Increased Independent Expenditure Disclosure
Arizonans overwhelmingly approved a statewide ballot measure in last week’s election requiring groups making independent expenditures in the state to reveal the “original source” of funding. The additional disclosure will be required of any covered person, corporation, association, or other entity making independent expenditures of $50,000 or more in connection with statewide races or $25,000 or more in connection with any other race. However, the new reporting requirement does not apply to individuals spending personal funds, businesses spending their own business income, candidate committees, and PACs receiving no more than $5,000 from any contributor during an election cycle.
Within five days of reaching the aggregate $50,000 or $25,000 spending threshold, a covered person must file an initial report that identifies each donor who contributed $5,000 or more, along with details about how the money was spent. The identity must be traced back to the source of “original monies” –the individual or business that originally earned money as income.
Additional reports must be filed once the covered person spends an additional $25,000 or $15,000 on statewide or other races, respectively.
Attorneys in Wiley’s Election Law & Government Ethics group continually monitor changes to campaign finance laws across the country and regularly counsel clients on compliance with federal, state, and local disclosure requirements.