Arizona adjourned the 53rd Legislature, 2nd Regular Session sine die on May 4, 2018. The Legislature was schedule to adjourn the week of April 21 but continued until a budget could be passed.

Notable bills passed during the session include House Bill 2078 clarifying political committee registration thresholds, House Bill 2153 prohibiting campaign finance filing entities from requiring entities claiming tax exempt status to register as political committees, and House Bill 1249 updating the enforcement, investigation, and appeal process for alleged violators of campaign finance laws.

The state budget, passed at the last minute and signed by Gov. Doug Ducey, allocated $237 million to pay raises for teachers, ending the statewide teacher walkout.

Gov. Ducey’s gun-safety bill to prevent school shootings, a top priority from the session, failed without a final vote.

Phoenix, Arizona has launched an online lobbyist database for 2018 registration and reporting purposes. It is available at https://lobbyist.phoenix.gov.

In order to use the system, a user name and password is needed. The website can also be used to search for a particular organization’s lobbying efforts.

For questions about using this new system, contact the Phoenix Office of the City Clerk at lobbyist@phoenix.gov or 602-534-0490.

The Arizona Corporation Commission released a code of ethics draft that would ban lobbyists from buying gifts or food for commissioners, as well as require lobbyist registration with the state.

The draft can be amended before the Corporation Commission adopts the code of ethics, which is expected by March.

On Tuesday, Tucson voters rejected a ballot measure to increase the city sales tax by a half-penny and a second measure aiming to increase it by a tenth of a percent to fund zoo renovations.

The proposed half-cent increase was intended for early childhood education funding and pre-school vouchers and would have generated an estimated $50 million a year. There was strong opposition to the measure by city officials and both local political parties.

Tucson voters approved a sales tax increase earlier this year to fund police and infrastructure.

On Tuesday, Tucson voters rejected a ballot measure to increase the city sales tax by a half-penny and a second measure aiming to increase it by a tenth of a percent to fund zoo renovations.

The proposed half-cent increase was intended for early childhood education funding and pre-school vouchers and would have generated an estimated $50 million a year. There was strong opposition to the measure by city officials and both local political parties.

Tucson voters approved a sales tax increase earlier this year to fund police and infrastructure.

Tempe City Council will vote next month on whether to send a ballot measure to voters next March seeking tighter restrictions on independent expenditures.

The Sunshine Ordinance would require groups making independent expenditures over $1,000 to disclose their organization name and source of funding. Tempe has not seen an uptick in independent expenditures yet but wants to prevent a future increase as independent expenditures are often associated with mud-slinging and attack ads.

The Mayor’s office and the Tempe Chamber of Commerce have expressed concern over the Sunshine Ordinance, worrying it might cause legal trouble for the city for infringing on first amendment rights and the Citizens United decision.

Even if the measure is approved by voters, as a charter amendment it will be automatically reviewed by the state to ensure there is no conflict with state law. 

On August 31, the Arizona Corporation Commission held a workshop to develop a code of ethics for the commission. Commission staff presented an overview of various Arizona statutes and rules covering open meetings, conflicts of interest, financial disclosures, gifts, and lobbyists, according the commission’s press release.

The Arizona Corporation Commission is responsible for the regulation of public utilities, the oversight of incorporation or registration of companies wishing to do business in Arizona, the registration of securities offerings and dealers, and the enforcement of railroad and pipeline safety. The five commissioners making up the commission are elected officials.

The code of ethics will next be considered by the commission’s Ethics Committee on September 15.

The Phoenix City Council voted unanimously Wednesday to give final approval to the city’s lobbying ordinance overhaul.

Under the amended rules, lobbyists not filing required registration or disclosure forms can face sanctions, including fines of up to $2,500, suspension from lobbying and jail time.

The ordinance also requires lobbyists to disclose to city officials whom they contact if they are working in a capacity as a lobbyist and expands covered officials that trigger registration.

The ordinance will take effect July 1, 2017.

The Phoenix City Council voted this week to amend the city’s lobbying ordinance to create sanctions for those who don’t comply with the lobbyist registration or expense disclosure rules.

Current city code includes no punishment for those who ignore the rules. The amendments will also include a clarification and expansion of the term lobbying to include city executives, department directors, the city manager and his top staffers, and board and commission members.

The strengthened rules raise fines and increase the amount of time lobbyists could be suspended from contacting city officials. Phoenix’s lobbying rules are currently unenforceable.

City Council will vote in the coming weeks to finalize the changes.

The Arizona Legislature adjourned the first regular session of the 53^rd Legislature sine die on May 10, 2017.

Senate Bill 1123 passed, prohibiting any person acting on behalf of a state agency from entering into a contract for lobbying services, and from spending money for any person or entity to lobby on behalf of the agency unless the person is a state employee.

The Legislature is not scheduled to convene again until early 2018.

City Council discovered its lobbying regulations have no enforcement mechanism several months ago, but it has yet to agree on whether violations should be treated as civil or criminal matters.

The discovery began following a controversial vote on a request to pay out $1.2 million to a developer for stormwater culverts on a city owned property. The developer’s lobbyists, a former city staffer and a lawyer at the law firm Burch & Cracchiolo, were not registered according to city records.

While the former city staffer’s attorney accused the city of losing or misfiling his registrations, the city contends the documents produced by Burch & Cracchiolo were falsely created and backdated because they use the law firm’s current letterhead, not the letterhead the firm used in 2015.

When the matter was referred to the city prosecutor, he discovered the current ordinance does not explicitly say failure to file proper lobbying documents is unlawful and does not specify the penalty for failing to register. The city prosecutor previously assumed noncompliance could result in a misdemeanor charge.

Any changes to current lobbying regulations will impact the work of more than 300 registered lobbyists in the city.

Photo of Phoenix City Hall by Kevin Dooley

On Tuesday, Phoenix City Council voted unanimously to move forward with creating a bipartisan ethics commission. The commission would screen allegations and recommend penalties for city officials who violate the city’s gift policies and other related rules.

Under a plan laid out by a City Council member, potential commissioners are screened by a city board and ultimately appointed by City Council. Phoenix’s current ethics rules are unenforceable as the city lacks a mechanism for investigating ethics complaints and recommending punishment.

This is not the first time Phoenix has attempted to create an ethics commission; previous attempts have been unsuccessful in part due to concerns about the commission becoming a political attack tool.

City Council will still need to approve a final ordinance in order to establish an ethics commission. A final vote on the matter is expected this spring.

On August 18, the city of Tempe, Arizona passed an ordinance creating a lobbying law.

Ordinance No. O2016.46 creates a lobbyist registration program requiring an individual to file a registration statement with the city clerk within 10 calendar days. Lobbying is defined as a communication with any public official for the purpose of influencing official action. Lobbyists are required to file annual expenditure reports covering a calendar year no later than January 31 following the reportable year.

The ordinance provides exceptions to registration, definitions, and other information relating to lobbyist disclosure and becomes effective on January 1, 2017.

Photo of the Tempe skyline by Schwnj on Wikimedia Commons.

On May 18, Arizona Gov. Doug Ducey signed campaign finance legislation advancing the effective date of implementation of some of the changes to June of this year. House bills 2296 and 2297 complement Senate Bill 1516, another campaign finance bill signed into law in March. The legislation also includes criminal penalties left out of the earlier Senate bill.

The package of legislation is controversial among many because of the relaxation of disclosure by some entities involved in political activity.