LobbyComply Blog

Voters in Phoenix overwhelmingly passed Proposition 419, an amendment to the Charter of the City of Phoenix requiring any person, association of persons or entity making expenditures to influence the result of a city election to disclose and identify expenditures and contributions including original and intermediary sources of major contributions.

This is the latest in a nationwide trend to limit the influence of so-called dark money.

Proponents for the proposition argued Proposition 419 was a critical step to restoring the public’s trust in our elections.

The proposition passed 86.1 percent to 13.89 percent.

In Tuesday’s election, Arizona passed Proposition 306, placing limits on the state’s Clean Elections Commission’s rulemaking ability among other things.

The voter created Arizona Clean Elections Commission was established in 1998 and runs a public-financing system for candidates and enforces financial-reporting rules for campaigns and groups that spend money in elections.

Proposition 306 requires the Commission’s rules to be approved by the Governor’s Regulatory Review Council comprised of political appointees. Opponents argued it was a way to limit the Commission’s ability to police dark money spending in Arizona.

The measure also prohibits candidates who receive public financing from paying money to political parties or private tax-exempt groups that try to influence elections.

Proposition 306 passed with 56 percent of the vote.

Gov. Doug Ducey has named Sen. Jon Kyl to fill the late Sen. John McCain’s seat in the Senate.

Sen. Kyl represented Arizona in the Senate for close to 20 years before reaching retirement in 2013. Kyl has committed to serving until the end of 2018, and possibly until a 2020 special election to fill the seat more permanently.

Gov. Ducey’s office reportedly considered several replacements since Sen. McCain’s diagnosis 13 months ago, including his wife Cindy McCain.

Gov. Ducey is the first governor in Arizona’s 106-year history to fill a U.S. Senate seat by appointment.

City Councilman Daniel Valenzuela resigned yesterday in order to comply with state law to resign by August 8 to pursue the mayor’s office.

In order to make a smoother transition for City Council, Councilwoman Kate Gallego will be resigning after the council appoints someone to fill the Council District 5 seat, and then the council will repeat the process for the Council District 8 seat after her resignation becomes official.

A special election has been scheduled for March 12, 2019, for the Council District 5 seat.

Phoenix Mayor Greg Stanton resigned this week to run for a seat in the U.S. Congress. Arizona has a resign to run law, forcing Stanton to leave his position to campaign for a different office.

Thelda Williams, a council member representing Phoenix’s District One, will serve as the interim mayor until June 11 when the Phoenix City Council will appoint a mayor pro tempore who will serve until a special election is held. The special election will likely take place on November 6, 2018 along with the state’s regularly scheduled elections.

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.

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.