House Committee Approves HB2054, Clark’s Campaign Transparency Bill

Rep. Ken Clark’s HB2054 was passed unanimously this week by the House Government Committee.

HB2054 requires an out-of-state nonprofit or LLC to obtain a certificate of registration to do business in Arizona before spending money for the purpose of influencing an election in Arizona.

Clark argued that “voters have a right to know when political operatives from out of state come to Arizona to involve themselves in our elections. This is a simple and logical disclosure in our law.”

Bill overview:

Provisions

1. Prohibits a foreign nonprofit corporation or foreign LLC from making expenditures for the purpose of influencing an election in Arizona until it is authorized or receives a certificate of registration to transact business in the State. (Sec. 1, 2, 3, 4)

2. Defines conduct affairs, conduct business, conducting affairs and transacting business to include the expenditure of monies for the purpose of influencing the outcome of an election in Arizona.
(Sec. 1, 2, 3)

3. Makes technical changes. (Sec. 1, 2)

Current Law

A foreign nonprofit corporation is prohibited from conducting affairs or maintaining a proceeding in any court in Arizona until it is granted authority to transact business in the state (A.R.S. §§ 10-11501, 10-11502). The corporation may apply for authority to conduct affairs in Arizona by delivering an application and certificate of disclosure with the ACC. The application must include a brief statement of the character of the business that the corporation initially intends to conduct in Arizona (A.R.S. § 10-11503).

A foreign LLC is required to obtain a certificate of registration by submitting an application and nonrefundable filing fee to the ACC. The application is required to include the purpose of the foreign LLC or the general character of the business it proposes to transact in Arizona (A.R.S. § 29-802).