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HomeMy WebLinkAboutCampaign Finance Records - Termination Statement - Friends of Gary Sherwood - 2/1/2017February 1, 2017 Gary Sherwood Friends of Gary Sherwood 5938 W. Pershing Ave Glendale, AZ 85304 Dear Mr. Sherwood: As I indicated in emails dated January 191h and 251h, 2017, the committee, Friends of Gary Sherwood; has failed to file its quarterly campaign finance report that was due Sunday, January 15, 2017, covering the period of October 28, 2016 through December 31, 2016. Pursuant to A.R.S. 16-937: B) A committee that fails to timely file a report shall pay the filing officer a penalty of ten dollars for each day that the filing is late during the first fifteen days after the filing deadline and twenty- five dollars for each subsequent day that the filing is late. Penalties accrue until the late report is filed. The campaign finance report is a fillable PDF and no longer requires a signature. Once you've completed and saved the report, you can file it electronically by attaching it to an email and sending it to me atjbower@glenadleaz.com. If you send it electronically, you do not need to file a paper copy. The forms are also available on the City's website at http://www.cilendaleaz-com/Clerk/politicalcommitteeforms.cfm. Please contact me at 623-930-2030 regarding the total penalty due and options for payment. Failure to file the report and remit payment of the penalties due by February 14, 2017 may result in notification being sent to the appropriate enforcement officer pursuant to A.R.S. 16-937(C). Sincerely, Julie K. Bower, MMC Glendale City Clerk cc: Michael Bailey, City Attorney February 24, 2017 Michael Bailey, City Attorney City of Glendale 5850 W. Glendale Ave Glendale, AZ 85301 Michael: As I indicated at our meeting earlier today, Gary Sherwood and the candidate committee, Friends of Gary Sherwood, has failed to file its quarterly campaign finance report that was due Sunday, January 15, 2017, covering the period of October 28, 2016 through December 31, 2016. Pursuant to A.R.S. 16- 937: B) A committee that fails to timely file a report shall pay the filing officer a penalty of ten dollars for each day that the filing is late during the first fifteen days after the filing deadline and twenty-five dollars for each subsequent day that the filing is late. Penalties accrue until the late report is filed. C) If a committee fails to file a complete report within thirty days after the filing deadline and after providing notice pursuant to subsection A of this section, the filing officer may notify the appropriate enforcement officer prescribed in this article. Pursuant to A.R.S. 16-937(A), Mr. Sherwood was sent email notification on January 19 and January 25. 2017. A certified letter was sent to his home address on February 1, 2017 and to the post office box that is on file for the candidate committee by regular mail, also on February 1 s�, notifying him of the delinquent report. As prescribed by A.R.S. 16-937(C), I am notifying you, the appropriate enforcement office, that the report is now thirty days past due and request that you take whatever action is necessary. Sincerely, Julie K. Bower, MMC Glendale City Clerk ■�� CITY CLERK 6 GLENv Memorandum DATE: June 22, 2017 TO: Friends of Gary Sherwood Gary Sherwood, Chairman/Treasurer FROM: Julie K. Bower, MMC 014 City Clerk SUBJECT: Termination of Existing Committees Required by 2016 Campaign Finance Legislation — Deadline June 30, 2017 Prior communications have informed committees that during the 2016 Legislative Session, three bills were adopted that made significant changes to campaign finance laws. The primary bill was SIB 1516,' followed by two "trailer bills": HB 22962 and HB 22973. These new laws were effective on November 5, 2016. Section 14 of HB 2297 ("Section 14") requires that for a committee in existence on November 8, 2016, the committee officers terminate the committee on or before June 30, 2017. A copy of Section 14 is attached. To assist you in complying with this termination requirement, this memo will provide information about the applicable statutory requirements. Further, it explains the process to terminate committees, and if necessary, register a new committee. Please note that as a filing officer, the clerk is able to assist you with general questions but is unable to provide you with legal advice. This memo is for informational purposes only and is not a substitute for legal advice, counsel, guidance or opinion from your committee officers and campaign advisors. It is recommended that you carefully review campaign finance laws and consult with your legal advisor prior to taking action. Termination of Political Committees If you had a committee in existence on November 8, 2016 (General Election Day), Section 14 requires that you terminate that committee by June 30, 2017. This requirement applies to all committee types, including candidate committees. 1 Laws 2016, Ch. 79. 2 Laws 2016, Ch. 346. 3 Laws 2016, Ch. 347. In order to terminate4'the committee must file a Termination Statement, which requires the treasurer to certify under penalty of perjury that the committee satisfies the following requirements: 1) It will no longer receive any contributions or make any disbursements; 2) The committee does not have any outstanding debts or obligations (unless the debts or obligations are more than five years old and have been discharged); 3) It has disposed of surplus monies and has no cash on hand (see below); and 4) The committee has reported any remaining transactions since the last report filed. If the committee had a balance on its last report, or there has been activity since the last report, the committee must also file a Campaign Finance Report disclosing the activity since the last report and the distribution of all committee monies so that the committee has a zero balance. If the last report filed by the committee had a zero balance and there has been no further unreported activity, a report is not required with the Termination Statement. $500 Threshold Committees If you had registered a committee under the $500 Threshold Exemption, that committee also must be terminated by June 30. If the committee did not exceed the $500 limit, the committee may file a Termination Statement and do not need to file a report. These committees will presumably not have to register a new committee since the $500 Threshold registration was repealed, and the new threshold for registration of a committee increased from $500 to $1,100. Procedure for Termination The procedure to terminate your Committee will vary based on whether you will need to form a new committee. The 2016 legislation changed the requirements regarding when an entity or association must register as a political committee.' If you no longer meet the legal requirements to register as a committee, you may choose to terminate your committee without registering a new committee. Requirements for Registration of a Political Committee A candidate is required to register a committee if the candidate receives contributions or makes expenditures, in any combination, of at least $1,1006 in connection with that candidacy. If your committee does not exceed this amount, you may be able to terminate your committee without registering a new committee. For example, if a candidate receives $600 and spends $501 of that amount, the combined total is $1,101, which is over the threshold amount and registration is required. Exploratory committees have been repealed and must be terminated. Also, a candidate may now have only one committee in existence for the same office during the same election cycle. Candidates that have more than one committee in existence for the same office will have to terminate the old committees and consolidate them into one new committee for the office. Please review the campaign finance statutes or consult with an attorney if you have questions about whether you should register as a committee. Procedures to Convert or Terminate a Committee 4 A.R.S. § 16-934 5 A.R.S. §16-905. 6 Originally $1,000 but adjusted January 1, 2017 by the Secretary of State pursuant to A.R.S. § 16-931. Page 2 of 4 If you determine that you are still required to register a committee, or if you choose to register a committee, a Statement of Organization must be filed. Refer to the procedure below for "conversion" of your existing committee(s) to a new committee. If you determine that you do NOT need to register a new committee, refer to the procedure below for termination of a committee. Conversion to a New Committee If you choose or are required to register a new committee, you will need to prepare and file the following documents: 1. A Termination Statement for the existing committee; 2. A Statement of Organization to register the new committee; and 3. A Campaign Finance Report showing activity since the last report and the transfer of any remaining balances to the new committee (Schedule B-13). (The balance transferred will be reported as a receipt for the new committee on its first report). These documents should be filed at the same time and with the same date to avoid any gaps or overlap in activity and reporting between the old and new committees. Copies of the forms are attached. They can also be accessed on the City Clerk's webpage at http://wwvj.qlendaleaz.com/Clerk/politicalcommitteeforms.cfrn. Termination of a Committee If you determine that you will NOT register a new committee, you will need to prepare and file the following documents at the same time: 1. A Termination Statement for the existing committee; 2. A Campaign Finance Report showing all activity since the last report and disposal of any "surplus monies." Disposal of Surplus Monies Surplus monies are defined in A.R.S. §16-901(50) as monies of a terminating committee that remain after all of the committee's expenditures have been made, all debts have been extinguished, and the committee ceases accepting contributions. A committee may dispose of surplus monies in the following ways': 1. Return surplus monies to the contributor; 2. Contribute the monies to a political action committee or political party within contribution limits; 3. Donate the monies to a 501(c)(3) nonprofit organization; or 4. A candidate committee may contribute surplus monies to another candidate committee if the following conditions are met: a. The nomination filing deadline has passed for that election cycle; b. The candidate contributing the surplus monies has not filed a nomination paper to run for election in the current election cycle; C. The terminating candidate committee cannot give surplus monies to a legislative candidate committee during the legislative session; and d. The contribution is within the individual contribution limits. The Clerk is authorized by A.R.S. §16-934(C) to reject the Termination Statement if it appears that these requirements have not been satisfied. 7 A.R.S.§16-933 Page 3 of 4 After a Termination Statement is filed and accepted by the clerk, a committee is not required to file any subsequent reports and shall have no further receipts and disbursements. Copies of the forms are attached. They can also be accessed on the City Clerk's webpage at http://www.glendaleaz.com/Clerk/Doliticalcommitteeforms.cfm. Administrative Termination of Political Committees that Fail to Terminate If a committee does not terminate by June 30, 2017, Section 14 authorizes the Clerk to administratively terminate the committee. If your committee is administratively terminated, the committee is still legally responsible for providing the information required in the Termination Statement, and for filing a report disclosing any activity since the last report and the disposal of any surplus monies. If a committee does not file the termination or the required report, the committee is at risk of penalties for a campaign finance violation. Committees that have not terminated by June 30 will be administratively terminated by the clerk as of that date. Administrative termination is essentially equivalent to suspending the committee. The committee will be notified of the termination and reminded of the responsibility to file the required Termination Statement and accompanying report. Since the termination and report were not filed by the statutory deadline of June 30, the committee would be subject to the enforcement procedure for failure to file. The penalty for late filing of required reports is $10 per day for the first 15 days, and then $25 per day for each subsequent day that the report is iate.e A committee that does not file after a specified period of time may face additional penalties. The information in this memo has been provided to assist you in complying with the requirement in state law that all committees in existence on November 8, 2016 Terminate by June 30, 2017. Please review the campaign finance statutes or consult with an attorney if you have questions about the requirements for terminating your committee and whether you should register a new committee. Please contact the City Clerk's Office at 623-930-2252, option 1, if you have questions about the process or filing of the documents. 8 A.R.S. § 16-937. Page 4 of 4 Section 14 of H.B. 2297 (Laws 2016, Ch. 347)' Sec. 14. Filing officers committee termination and transition March 2017 election A. A political committee that is in existence on November 8, 2016 shall be terminated by its authorized officers on or before June 30, 2017. That political committee shall not conduct any activity after November 8, 2016 except for winding down its operations as prescribed in title 16, chapter 6, article 1.6, Arizona Revised Statutes, as added by Laws 2016, chapter 79, section 12. B. For any political committee that has not terminated on or before June 30. 2017, the filing officer for that jurisdiction may administratively terminate the politicai committee or convert the political committee to the appropriate committee as prescribed in title 16, chapter 6, article 1.6, Arizona Revised Statutes, as added by Laws 2016, chapter 79, section 12, as follows: 1. For an exploratory committee, the filing officer may convert the committee to a candidate committee. 2. For a political organization, the filing officer may convert the committee to a political party. 3. For a recall committee, ballot measure committee, candidate campaign committee or independent expenditure committee, a separate segregated fund or any other type of committee that is defined as a political committee in section 16-901, Arizona Revised Statutes, as amended by Laws 2015, chapter 286, section 1 and chapter 297, section 1, the filing officer may convert the committee to a political action committee. C. For any jurisdiction that conducts an election on March 14, 2017, the filing officer for that jurisdiction may reasonably adjust the campaign finance filing deadlines for that election if compliance with the new filing requirements prescribed in Laws 2016, chapter 79 would create a substantial hardship. ' h ://www.azle . - i2 2zi 521c 2r/laws/0347.htm 'i � CITY CLERK a■ Memorandum DATE: July 6, 2017 TO: Friends of Gary Sherwood Gary Sherwood, Chairman/Treasurer FROM: Julie K. Bower, MMC City Clerk SUBJECT: Termination of Existing Committees Required by 2016 Campaign Finance Legislation — Failure to Terminate Prior communications have informed committees that during the 2016 Legislative Session, three bills were adopted that made significant changes to campaign finance laws. The primary bill was SB 1516,1 followed by two "trailer bills". HB 22962 and HB 22973. These new iaws were effective on November 5, 2016. Section 14 of HB 2297 ("Section 14") requires that a committee in existence on November 8, 2016 be terminated by its authorized committee officers on or before June 30, 2017. Section 14 further provides that committees that fail to terminate by the deadline may be administratively terminated by the filing officer. A copy of Section 14 is attached. You were initially notified of the changes to campaign finance law on October 25, 2016, which included the requirement to terminate your candidate committee. Reminders were sent on November 21, 2016, December 21, 2016 and January 11, 2107. On June 22, 2017, a memo was sent, that provided information about the applicable statutory requirements and explained the process to terminate committees, and if necessary, register a new committee. Your candidate committee, Friends of Gary Sherwood, failed to terminate by the statutory deadline of June 30, 2017 and has been administratively terminated by the city clerk as of that date. The committee is still legally responsible for providing the information required in the Termination Statement, and for filing a report disclosing any activity since the last report and the disposal of any surplus monies. Because the termination and report were not filed by the statutory deadline of June 30, the committee is subject to the enforcement procedure for failure to file. The penalty for 1 Laws 2016, Ch. 79. 2 Laws 2016, Ch. 346. 3 Laws 2016, Ch. 347. late filing of required reports is $10 per day for the first 15 days, and then $25 per day for each subsequent day that the report is late.° A committee that does not file within thirty days, may face additional penalties. Please contact the City Clerk's Office at 623-930-2252, option 1, if you have questions about the process or filing of the documents. Enc.: Section 14 of H.B. 2297 June 22"d Memo 4 A.R.S § 16-937(B). Page 2 of 2 rj& CITY CLERK Memorandum DATE: June 22, 2017 TO: Friends of Gary Sherwood Gary Sherwood, Chairman/Treasurer FROM: Julie K. Bower, MMC City Clerk SUBJECT: Termination of Existing Committees Required by 2016 Campaign Finance Legislation — Deadline June 30, 2017 Prior communications have informed committees that during the 2016 Legislative Session, three bills were adopted that made significant changes to campaign finance laws. The primary bill was SB 1516,1 followed by two "trailer bills": HB 22962 and HB 22973. These new laws were effective on November 5, 2016, Section 14 of HB 2297 ("Section 14") requires that for a committee in existence on November 8, 2016, the committee officers terminate the committee on or before June 30, 2017. A copy of Section 14 is attached_ To assist you in complying with this termination requirement, this memo will provide information about the applicable statutory requirements. Further, it explains the process to terminate committees, and if necessary, register a new committee. Please note that as a filing officer, the clerk is able to assist you with general questions but is unable to provide you with legal advice. This memo Is for informational purposes only and is not a substitute for legal advice, counsel, guidance or opinion from your committee officers and campaign advisors, It is recommended that you carefully review campaign finance laws and consult with your legal advisor prior to taking action. Termination of Political Committees If you had a committee in existence on November 8, 2016 (General Election Day), Section 14 requires that you terminate that committee by June 30, 2017. This requirement applies to all committee types, including candidate committees. 1 Laws 2016. Ch. 79, 2 Laws 2016. Ch. 346. 3 Laws 2016, Ch. 347, In order to terminate4,the committee must file a Termination Statement, which requires the treasurer to certify under penalty of perjury that the committee satisfies the following requirements: 1) It will no longer receive any contributions or make any disbursements; 2) The committee does not have any outstanding debts or obligations (unless the debts or obligations are more than five years old and have been discharged); 3) It has disposed of surplus monies and has no cash on hand (see below); and 4) The committee has reported any remaining transactions since the last report filed. If the committee had a balance on its last report, or there has been activity since the last report, the committee must also file a Campaign Finance Report disclosing the activity since the last report and the distribution of all committee monies so that the committee has a zero balance. If the last report filed by the committee had a zero balance and there has been no further unreported activity, a report is not required with the Termination Statement. 500 Threshold Committees If you had registered a committee under the S500 Threshold Exemption, that committee also must be terminated by June 30. If the committee did not exceed the $500 limit, the committee may file a Termination Statement and do not need to file a report. These committees will presumably not have to register a new committee since the $500 Threshold registration was repealed, and the new threshold for registration of a committee increased from $500 to $1,100. Procedure for Termination The procedure to terminate your committee will vary based on whether you will need to form a new committee. The 20161egislation changed the requirements regarding when an entity or association must register as a political committee.5 If you no longer meet the legal requirements to register as a committee, you may choose to terminate your committee without registering a new committee. Requirements for Registration of a Political Committee A candidate is required to register a committee if the candidate receives contributions or makes expenditures, 1n any combination, of at least $1,1000 in connection with that candidacy. If your committee does not exceed this amount, you may be able to terminate your committee without registering a new committee. For example, If a candidate receives $600 and spends $501 of that amount, the combined total is $1,101, which is over the threshold amount and registration is required. Exploratory committees have been repealed and must be terminated. Also, a candidate may now have only one committee in existence for the same office during the same election cycle. Candidates that have more than one committee in existence for the same office will have to terminate the old committees and consolidate them into one new committee for the office. Please review the campaign finance statutes or consult with an attorney if you have questions about whether you should register as a committee. Procedures to Convert or Terminate a Committee 4 A.R.S. § 16-934 5 A.R.S. §16-905. 6 Originally $1,000 but adjusted January 1, 2017 by the Secretary of State pursuant to A.R.S_ § 16-931. Page 2 of 4 if you determine that you are still required to register a committee, or if you choose to register a committee, a Statement of Organization must be filed. Refer to the procedure below for "Conversion" of your existing committees) to a new committee. If you determine that you do NOT need to register a new committee, refer to the procedure below for termination of a committee. Conversion to a New Committee If you choose or are required to register a new committee, you will need to prepare and file the following documents: 1. A Termination Statement for the existing committee; 2. A Statement of Organization to register the new committee; and 3. A Campaign Finance Report showing activity since the last report and the transfer of any remaining balances to the new committee (Schedule B-13). (The balance transferred will be reported as a receipt for the new committee on Its first report). These documents should be filed at the same time and with the some date to avoid any gaps or overlap in activity and reporting between the old and new committees. Copies of the forms are attached. They can also be accessed on the City Clerk's webpage at http://wmv.glendaleaz.com/Clork/ oli icalcommitteeforms.cfm. Termination of a Committee If you determine that you will NOT register a new committee, you will need to prepare and file the following documents at the same time: 1. A Termination Statement for the existing committee; 2. A Campaign Finance Report showing all activity since the last report and disposal of any °surplus monies." Disposal of Surplus Monies Surplus monies are defined in A.R.S. §16-901(50) as monies of a terminating committee that remain after all of the committee's expenditures have been made, all debts have been extinguished, and the committee ceases accepting contributions. A committee may dispose of surplus monies in the following ways: 1. Return surplus monies to the contributor; 2. Contribute the monies to a political action committee or political party within contribution limits,- 3. Donate the monies to a 501(c)(3) nonprofit organization; or 4. A candidate committee may contribute surplus monies to another candidate committee if the following conditions are met: a. The nomination filing deadline has passed for that election cycle; b. The candidate contributing the surplus monies has not filed a nomination paper to run for election in the current election cycle; C. The terminating candidate committee cannot give surplus monies to a legislative candidate committee during the legislative session; and d. The contribution is within the individual contribution limits. The Clerk is authorized by A.R.S. §16-934(C) to reject the Termination Statement if it appears that these requirements have not been satisfied. 7 A.R.S.§16-933 Page 3 of 4 After a Termination Statement is filed and accepted by the clerk, a committee is not required to file any subsequent reports and shall have no further receipts and disbursements. Copies of the forms are attached. They can also be accessed on the City Clerk's webpage at http://www.glencial-eaz.com/Clerk/politicalcommitteeforms.cfm. Administrative Termination of political Committees that Fail to Terminate If a committee does not terminate by June 30, 2017, Section 14 authorizes the Clerk to administratively terminate the committee. If your committee is administratively terminated, the committee is still legally responsible for providing the information required in the Termination Statement, and for filing a report disclosing any activity since the last report and the disposal of any surplus monies. If a committee does not file the termination or the required report, the committee is at risk of penalties for a campaign finance violation. Committees that have not terminated by June 30 will be administratively terminated by the clerk as of that date. Administrative termination is essentially equivalent to suspending the committee. The committee will be notified of the termination and reminded of the responsibility to file the required Termination Statement and accompanying report. Since the termination and report were not filed by the statutory deadline of June 30, the committee would be subject to the enforcement procedure for failure to file. The penalty for late filing of required reports is $10 per day for the first 15 days, and then $25 per day for each subsequent day that the report is late.' A committee that does not file after a specified period of time may face additional penalties. The information in this memo has been provided to assist you in complying with the requirement in state law that all committees in existence on November $, 2016 Terminate by June 30, 2017. Please review the campaign finance statutes or consult with an attorney if you have questions about the requirements for terminating your committee and whether you should register a new committee. Please contact the City Clerk's Office at 623-930-2252, option 1, if you have questions about the process or filing of the documents. 8 A.R.S. § 16.937. Page 4 of 4 Section 14 of H.B. 2297 (Laws 2016, Ch. 347)1 Sec. 14. Filin officers' committ a termination an transition March 2017 election A. A political committee that is in existence on November 8, 2016 shall be terminated by its authorized officers on or before June 30, 2017. That political committee shall not conduct any activity after November 8, 2016 except for winding down its operations as prescribed in title 16, chapter 6, article 1.6, Arizona Revised Statutes, as added by Laws 2016, chapter 79, section 12. B. For any political committee that has not terminated on or before June 30, 2017, the filing officer for that jurisdiction may administratively terminate the political committee or convert the political committee to the appropriate committee as prescribed in title 16, chapter 6, article 1.6, Arizona Revised Statutes, as added by Laws 2016, chapter 79, section 12, as follows; 1. For an exploratory committee, the filing officer may convert the committee to a candidate committee. 2. For a political organization, the filing officer may convert the committee to a political party. 3. For a recall committee, ballot measure committee, candidate campaign committee or independent expenditure committee, a separate segregated fund or any other type of committee that is defined as a political committee in section 16-901, Arizona Revised Statutes, as amended by Laws 2015, chapter 286, section 1 and chapter 297, section 1, the filing officer may convert the committee to a political action committee. C. For any jurisdiction that conducts an election on March 14, 2017, the filing officer for that jurisdiction may reasonably adjust the campaign finance filing deadlines for that election if compliance with the new filing requirements prescribed In Laws 2016, chapter 79 would create a substantial hardship. Nw az ova exd52lc 2 /1aws/C347.htm August 4, 2017 Michael Bailey, City Attorney City of Glendale 5850 W. Glendale Ave Glendale, AZ 85301 Michael: Gary Sherwood and the candidate committee, Friends of Gary Sherwood, has failed to terminate the committee by June 30, 2017, as required by Section 14 of HB2297. Section 14 also authorizes the filing officer to administratively terminate any committees that fail to terminate by the deadline. The candidate committee, Friends of Gary Sherwood, was administratively terminated on July 1, 2017. Because the termination and final report was not filed by the statutory deadline of June 30, 2017, the committee is subject to the enforcement procedure for failure to file, pursuant to A.R.S. 16-937: 8) A committee that fails to timely file a report shall pay the filing officer a penalty of ten dollars for each day that the filing is late during the first fifteen days after the filing deadline and twenty-five dollars for each subsequent day that the filing is late. Penalties accrue until the late report is filed. C) If a committee fails to file a complete report within thirty days after the filing deadline and after providing notice pursuant to subsection A of this section, the filing officer may notify the appropriate enforcement officer prescribed in this article. Mr. Sherwood was initially notified of the changes to campaign finance law on October 25, 2016, which included the requirement to terminate his candidate committee. Reminders were sent on November 21, 2016, December 21, 2016 and January 11, 2017. On June 22, 2017, a memo was sent that provided information about the applicable statutory requirements and explained the process to terminate a committee, and if necessary, register a new committee. I have received no response from Mr. Sherwood. As prescribed by A.R.S. 16-937(C), 1 am notifying you, the appropriate enforcement office, that the termination statement and report are now thirty days past due and request that you take whatever action is necessary. Sincerely; Julie K. Bower, MMC Glendale City Clerk