Arizona's Proposition 211 would require disclosure of campaign donors. Here's what to know

Arizona's Proposition 211 on the November ballot would curtail anonymous spending on campaign attack ads by requiring disclosure of anyone who gives more than $5,000 to a group that sponsors the ad.

"The Voters' Right to Know Act" was referred to the ballot by a citizen initiative, which gathered more than 281,000 signatures to qualify for the ballot.

What would Arizona's Proposition 211 do?

Proposition 211 would require disclosure of any individual who makes a financial contribution of $5,000 or more to a committee that spends at least $50,000 on a statewide or legislative ad campaign. For local elections, the amounts would be $2,500 for any individual donation to a campaign spending at least $25,000.

Organizations that fail to disclose would face a fine equal to the amount contributed, or up to three times that amount. The Citizens Clean Elections Commission would administer the program.

Proposition 211 would apply to corporations, nonprofit groups and charities that currently are not required to disclose the names of the people who give money to political campaigns that the organization backs.

The rule would pertain only to spending on political advertising; if someone gave money to a nonprofit and stipulated they did not want any of their dollars funding campaign ads, they would not face public disclosure.

The measure also would impose a 1% surcharge on fines for criminal offenses and civil violations to cover the cost of running the program.

Learn more about ballot measures: Read pro/con arguments, get details from the official publicity pamphlet

Why backers say proposition is needed

Those campaign ads with blurry photos of a candidate or ominous music? They are usually the product of groups with vague or innocuous names, such as "Americans for Peanut Butter," said Terry Goddard, co-chair of the Voter's Right to Know campaign.

But the name doesn't give the viewer any idea of who is paying for the ads, which is why supporters say Proposition 211 is needed. They argue it will bring transparency and fairness to "dark money" or anonymous, campaign spending.

Currently, anyone who gives $50 or more to a candidate must provide their name, address and occupation to the candidate's campaign for public disclosure.

But donors to independent expenditure committees don't have to follow the same rules. Their donors can give money to a nonprofit or a charity that in turn gives the funding to a committee that does the actual spending. It allows the donor to hide his donation while still getting a message out about a candidate or an issue.

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Goddard said naming the "original donors" to a campaign would help voters evaluate the message the campaign is pushing.

“Voters have a right to know who is screaming in their ear," he said.

Given that many of such ads are negative, Goddard suggests that disclosure of who's actually paying for the ad could lead to more civil debates.

He points to "dark money" or anonymous expenditures made by the Free Enterprise Club in 2014 as an example. The club declined to name its donors, although it was widely suspected that the parent company of Arizona Public Service Co. was the financial muscle behind the club's support for two candidates for the Arizona Corporation Commission, which regulates utilities, including APS.

The club also gave heavily to a secretary of state candidate whose father was a corporation commissioner, although the candidate failed to win his primary. Goddard was the Democratic nominee for secretary of state in 2014, and lost after a late attack from a dark money group.

If APS had to put its name behind its spending, Goddard said it's highly doubtful the business would have gotten involved, given the obvious conflict and the risk of bad publicity. APS only disclosed its spending years later when forced to by a subpoena issued by corporation commissioners.

The argument against Proposition 211

Opponents contend the proposition would chill free speech and said they believe it likely is unconstitutional.

They argue disclosure of money spent by nonprofits and corporations could lead to harassment and threats against named donors and that it is not the same as the disclosure the law requires of individuals who give to candidates.

Scot Mussi of the Free Enterprise Club said the comparison is "apples and oranges" because Proposition 211 takes aim at private individuals giving money to private organizations. The ballot measure, if passed, could force disclosure of the membership lists of various charities, such as the Sierra Club or the local chamber of commerce, he claims.

Goddard disputes that. The measure states disclosure is only required if and when any membership organization gives money to an independent expenditure committee that is spending $50,000 or more on political advertisements, and would only apply to any individual member of the organization who gives at least $5,000 to the effort.

Mussi also argues there is a "big fat exception" for media, which would allow media organizations to publish editorials and host news coverage of political issues without having to disclose their donors. Such a provision could run afoul of the First Amendment, however.

The main objection from opponents is that Proposition 211 puts the focus on the messenger when they say the message is what counts in a political campaign.

Fans and foes

Supporters: The League of Women Voters, the Alliance of Arizona Nonprofits, the Arizona Grantmakers Forum, Corporation Commissioner Sandra Kennedy, former Corporation Commissioner Bob Burns, former Gov. Fife Symington and the Sierra Club.

Opponents: The Free Enterprise Club, the Arizona Center for Policy Action.

Hear more about the propositions on this year's ballot from azcentral's podcast The Gaggle: https://www.azcentral.com/story/news/politics/arizona/2022/10/12/what-know-arizona-propositions-before-filling-out-your-ballot/10472415002/

Reach the reporter at maryjo.pitzl@arizonarepublic.com and follow her on Twitter @maryjpitzl.

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This article originally appeared on Arizona Republic: Prop. 211 on Arizona's November ballot would shine light on dark money