LobbyComply Blog

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.

On May 7, the Arizona Legislature adjourned its 52nd, Second regular session sine die at 5:45 a.m. The governor has 10 days once the Legislature has adjourned to sign a bill into law, veto a bill, or do nothing and allow it to become law without his or her signature. The governor does not have a pocket veto. The Legislature can override a governor’s veto with a vote of two-thirds of its members.

Signatures are being collected to put a campaign finance initiative on the Arizona state ballot this November.

The initiative, filed on April 12 by Arizonans for Clean and Accountable Elections, is in response to Senate Bill 1516, a recently passed campaign finance bill taking effect in 2017. “Our initiative addresses the most egregious parts of [Senate Bill] 1516,” said Samantha Pstross, the chairperson of committee putting forth the issue, according to the Herald Dispatch.

Senate Bill 1516 allows groups registered with the IRS as social welfare organizations to withhold disclosing donor information, removes spending caps on expenditures for political fundraisers, and allows for candidate-to-candidate transfers of campaign funds. The initiative increases disclosure of political activity, lowers contribution limits, and prevents contributions between candidates. Additionally, lobbyists would be required to disclose all meals purchased for elected officials and would be prohibited from paying travel expenses for them, according to the Herald Dispatch.

State law requires 150,000 valid signatures to have the initiative placed on the November ballot.

On March 31, a bill overhauling campaign finance passed by the Arizona Legislature was signed into law by Gov. Doug Ducey. Among the changes to the state’s law, Senate Bill 1516 allows groups registered with the IRS as “social welfare” organizations to withhold disclosing donor information, removes spending caps on expenditures for political fundraisers, and allows for candidate to candidate transfers of campaign funds.

“When it comes to free speech and participation in the democratic process, our laws should reflect the goal of making it easier for more citizens to engage. That’s what this reform package does,” the Albuquerque Journal reports Ducey as saying. The law becomes effective January 1, 2017.

On March 29, a bill overhauling campaign finance was passed by the Arizona Legislature. Among the changes to the state’s law, Senate Bill 1516 allows groups registered with the IRS as “social welfare” organizations to withhold disclosing donor information, removes spending caps on expenditures for political fundraisers, and allows for candidate to candidate transfers of campaign funds.

While the lack of requiring disclosure of political donors was a major objection from state legislators opposed to the bill, the majority of the Legislature was willing to accept the changes. “I think transparency is a good principle. But it is not the overarching principle,” said bill supporter Rep. J.D. Mesnard, as reported by the Arizona Daily Star. If not vetoed by Gov. Doug Ducey, the law becomes effective January 1, 2017.

On January 8, the Arizona Secretary of State’s office proposed changes to the state’s campaign finance law in order to make it simpler and easier to understand. Changes include revisions of the definitions of committee and election cycle and elimination of the “paid for” disclosures in campaign messages on social media, according to The Arizona Republic.

“We are keeping almost every existing policy, but we have rewritten it in a simpler manner. We have reorganized it to the place where you would expect to find it. And we have created the statutes like the way you would read a book,” said Director of Election Services Eric Spencer, according to KJZZ.org. The office has drafted legislation to be considered by the Legislature this year.

On November 12, the Tempe, Arizona City Council passed an ordinance that could limit political contributions to city candidates. Pursuant to the city’s charter, the ordinance will only be effective if passed by voters at a March 8, 2016, special election and after approval by the governor. Among the changes in the ordinance, contributions for mayor and councilmembers would be limited to $500 from individuals and $1,000 from any PAC or single partnership. The limits would be adjust biennially to the nearest $10 by the percentage change in the consumer price index. If passed, the limitations on candidate contributions for city elected office will begin with the 2018 election cycle.

On October 30, 2015, the Arizona Legislature adjourned its special session after lawmakers agreed on educational funding for the state. Gov. Doug Ducey immediately signed the legislation into law, which also creates a special election on May 17, 2016, to enact constitutional changes required by the funding reforms. “Educators will finally have the resources they have been asking for, and our students will have greater opportunities to succeed,” Ducey said in a press release.

On October 28, 2015, Arizona Gov. Doug Ducey called a special session of the Legislature to meet on the same day at 8 p.m. In anticipation of the session, lawmakers had met to create bills dealing with education funding in the state and to authorize a special election for the May 2016 consolidated election date. Once the bills were ready, Ducey issued the proclamation for a special session and tweeted a picture of the proclamation on his twitter account.

Photo of the Arizona State Capitol by Jeff Dean on Wikimedia Commons.

On April 3, the Arizona Legislature adjourned its regular session sine die.

Gov. Doug Ducey has until April 15 to sign or veto legislation.

The governor does not have a pocket veto.

Photo of the Arizona State Capitol by Jeff Dean on Wikimedia Commons.

In a statement regarding the impact of a recent district court order, the Arizona Office of the Secretary of State said it is not currently enforcing the compliance provisions of campaign finance law.

In December, the United States District Court for the District of Arizona ruled A.R.S. §16-901(19), the definition of political committee, unconstitutional. A motion to stay the case, Galassini v. Town of Fountain Hills, was filed by the Arizona Attorney General’s Office to maintain the current application of campaign finance law while an appeal is being filed with the Ninth Circuit, according to the secretary of state.

However, the secretary of state “strongly encourages all political committees to adhere to the statutory requirements until a final resolution is obtained to prevent any unforeseen challenges if the appeal is successful”.