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H.B. 213

             1     

BAN ON GIFTS TO LEGISLATORS

             2     
2009 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Christine A. Johnson

             5     
Senate Sponsor: ____________

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies the Lobbyist Disclosure and Regulation Act by banning certain gifts
             10      from lobbyists to public officials.
             11      Highlighted Provisions:
             12          This bill:
             13          .    defines gifts;
             14          .    prohibits public officials from receiving certain gifts;
             15          .    repeals the existing section governing gifts;
             16          .    addresses donations to the state; and
             17          .    makes technical changes.
             18      Monies Appropriated in this Bill:
             19          None
             20      Other Special Clauses:
             21          None
             22      Utah Code Sections Affected:
             23      AMENDS:
             24          36-11-103, as last amended by Laws of Utah 2008, Chapter 382
             25          36-11-401, as last amended by Laws of Utah 2000, Chapter 338
             26          63A-1-105, as last amended by Laws of Utah 2002, Chapter 176
             27          63E-1-404, as enacted by Laws of Utah 2001, Chapter 201


             28      ENACTS:
             29          36-11-501, Utah Code Annotated 1953
             30          36-11-502, Utah Code Annotated 1953
             31      REPEALS:
             32          36-11-304, as last amended by Laws of Utah 2007, Chapter 233
             33     
             34      Be it enacted by the Legislature of the state of Utah:
             35          Section 1. Section 36-11-103 is amended to read:
             36           36-11-103. Licensing requirements.
             37          (1) (a) Before engaging in any lobbying, a lobbyist shall obtain a license from the
             38      lieutenant governor by completing the form required by this section.
             39          (b) The lieutenant governor shall issue licenses to qualified lobbyists.
             40          (c) The lieutenant governor shall prepare a Lobbyist License Application Form that
             41      includes:
             42          (i) a place for the lobbyist's name and business address;
             43          (ii) a place for the name and business address of each principal for whom the lobbyist
             44      works or is hired as an independent contractor;
             45          (iii) a place for the name and address of the person who paid or will pay the lobbyist's
             46      registration fee, if the fee is not paid by the lobbyist;
             47          (iv) a place for the lobbyist to disclose any elected or appointed position that the
             48      lobbyist holds in state or local government, if any;
             49          (v) a place for the lobbyist to disclose the types of expenditures for which the lobbyist
             50      will be reimbursed; and
             51          (vi) a certification to be signed by the lobbyist that certifies that the information
             52      provided in the form is true, accurate, and complete to the best of the lobbyist's knowledge and
             53      belief.
             54          (2) Each lobbyist who obtains a license under this section shall update the licensure
             55      information when the lobbyist accepts employment for lobbying by a new client.
             56          (3) (a) Except as provided in Subsection (4), the lieutenant governor shall grant a
             57      lobbying license to an applicant who:
             58          (i) files an application with the lieutenant governor that contains the information


             59      required by this section; and
             60          (ii) pays a $25 filing fee.
             61          (b) A license entitles a person to serve as a lobbyist on behalf of one or more principals
             62      and expires on December 31 of each even-numbered year.
             63          (4) (a) The lieutenant governor may disapprove an application for a lobbying license:
             64          (i) if the applicant has been convicted of violating Section 76-8-103 , 76-8-107 ,
             65      76-8-108 , or 76-8-303 within five years before the date of the lobbying license application;
             66          (ii) if the applicant has been convicted of violating Section 76-8-104 or 76-8-304
             67      within one year before the date of the lobbying license application;
             68          (iii) for the term of any suspension imposed under Section 36-11-401 ; or
             69          (iv) if, within one year before the date of the lobbying license application, the applicant
             70      has been found to have willingly and knowingly:
             71          (A) violated Section 36-11-103 , 36-11-201 , 36-11-301 , 36-11-302 , 36-11-303 ,
             72      [ 36-11-304 ,] 36-11-305 , [or] 36-11-403 , or 36-11-502 ; or
             73          (B) filed a document required by this chapter that the lobbyist knew contained
             74      materially false information or omitted material information.
             75          (b) An applicant may appeal the disapproval in accordance with the procedures
             76      established by the lieutenant governor under this chapter and Title 63G, Chapter 4,
             77      Administrative Procedures Act.
             78          (5) The lieutenant governor shall deposit license fees in the General Fund.
             79          (6) A principal need not obtain a license under this section, but if the principal makes
             80      expenditures to benefit a public official without using a lobbyist as an agent to confer those
             81      benefits, the principal shall disclose those expenditures as required by Sections 36-11-201 .
             82          (7) Government officers need not obtain a license under this section, but shall disclose
             83      any expenditures made to benefit public officials as required by Sections 36-11-201 .
             84          (8) Surrender, cancellation, or expiration of a lobbyist license does not absolve the
             85      lobbyist of the duty to file the financial reports if the lobbyist is otherwise required to file the
             86      reports by Section 36-11-201 .
             87          Section 2. Section 36-11-401 is amended to read:
             88           36-11-401. Penalties.
             89          (1) Any person who willfully and knowingly violates Section 36-11-103 , 36-11-201 ,


             90      36-11-301 , 36-11-302 , 36-11-303 , [36-11-304 ,] 36-11-305 , [or] 36-11-403 , or 36-11-502 , is
             91      subject to the following penalties:
             92          (a) an administrative penalty of up to $1,000 for each violation; and
             93          (b) for each subsequent violation of that same section within 24 months, either:
             94          (i) an administrative penalty of up to $5,000; or
             95          (ii) suspension of the violator's lobbying license for up to one year, if the person is a
             96      lobbyist.
             97          (2) Any person who willfully and knowingly fails to file a financial report required by
             98      this chapter, omits material information from a license application form or financial report, or
             99      files false information on a license application form or financial report, is subject to the
             100      following penalties:
             101          (a) an administrative penalty of up to $1,000 for each violation; or
             102          (b) suspension of the violator's lobbying license for up to one year, if the person is a
             103      lobbyist.
             104          (3) Any person who willfully and knowingly fails to file a financial report required by
             105      this chapter on the date that it is due shall, in addition to the penalties, if any, imposed under
             106      Subsection (1) or (2), pay a penalty of up to $50 per day for each day that the report is late.
             107          (4) (a) When a lobbyist is convicted of violating Section 76-8-103 , 76-8-107 , 76-8-108 ,
             108      or 76-8-303 , the lieutenant governor shall suspend the lobbyist's license for up to five years
             109      from the date of the conviction.
             110          (b) When a lobbyist is convicted of violating Section 76-8-104 or 76-8-304 , the
             111      lieutenant governor shall suspend a lobbyist's license for up to one year from the date of
             112      conviction.
             113          (5) (a) Any person who willfully and knowingly violates Section 36-11-301 ,
             114      36-11-302 , or 36-11-303 is guilty of a class B misdemeanor.
             115          (b) The lieutenant governor shall suspend the lobbyist license of any person convicted
             116      under any of these sections for up to one year.
             117          (c) The suspension shall be in addition to any administrative penalties imposed by the
             118      lieutenant governor under this section.
             119          (d) Any person with evidence of a possible violation of this chapter may submit that
             120      evidence to the lieutenant governor for investigation and resolution.


             121          (6) Nothing in this chapter creates a third-party cause of action or appeal rights.
             122          Section 3. Section 36-11-501 is enacted to read:
             123     
Part 5. Gifts

             124          36-11-501. Definitions.
             125          As used in this part:
             126          (1) (a) "Gift" means a transfer of real or personal property for less than fair and
             127      adequate consideration.
             128          (b) "Gift" does not mean:
             129          (i) a campaign contribution properly received and reported as required under Title 20A,
             130      Chapter 11, Campaign and Financial Reporting Requirements;
             131          (ii) compensation, food, beverages, entertainment, transportation, lodging, or other
             132      goods or services extended to a public official by a public official's employer;
             133          (iii) a usual and customary commercial loan made in the ordinary course of business;
             134          (iv) an award publicly presented in recognition of public service if the award is valued
             135      at less than $50;
             136          (v) informational or educational items, such as books, articles, periodicals, other
             137      written materials, newspapers, audiotapes, videotapes, or other forms of communication with
             138      no substantial resale value and related to the performance of the recipient's official duties;
             139          (vi) anything received from a person related by blood or marriage or a member of the
             140      public official's household unless the donor is acting as an agent or intermediary for another
             141      person not so related;
             142          (vii) any devise or inheritance from a person related by blood or marriage or a member
             143      of the legislator's household unless the donor is acting as an agent or intermediary for another
             144      person not so related;
             145          (viii) a gift that is not used and, no later than 30 days after receipt, is:
             146          (A) returned to the donor;
             147          (B) donated to a bona fide nonprofit charitable or educational organization and is not
             148      claimed as a charitable contribution for federal or state income tax purposes; or
             149          (C) donated to a government entity, public body, or to the Department of
             150      Administrative Services;
             151          (ix) a gift or gifts from one member of the Legislature to another member of the


             152      Legislature;
             153          (x) anything for which the public official pays or gives full value;
             154          (xi) any service spontaneously extended to a public official in an emergency situation;
             155          (xii) items received from a bona fide charitable, professional, educational, or business
             156      organization to which the public official belongs as a dues-paying member, if:
             157          (A) the items are given to all members of the organization without regard to individual
             158      members' status or positions held outside of the organization; and
             159          (B) the dues paid are not inconsequential when compared to the items received;
             160          (xiii) funeral flowers or memorials given to honor a public official, a person related to
             161      the public official by blood or marriage, or to a member of the public official's household;
             162          (xiv) unsolicited flowers, plants, and floral arrangements valued at less than $50;
             163          (xv) the cost of admission, attendance, or participation, and of food and beverages
             164      consumed, at a public policy activity to which all members of the Legislature or all members of
             165      a legislative committee, a legislative subcommittee, or a task force are invited;
             166          (xvi) items valued at less than $50 for a wedding or 25th, 50th, or 75th wedding
             167      anniversary celebration; or
             168          (xvii) the cost paid, reimbursed, raised, or obtained by or for a public official for
             169      attendance or participation, and for food and beverages consumed at, or in connection with, and
             170      activities offered at or in connection with, and funds, goods, and services provided at or in
             171      connection with, or for conducting conventions, conferences, or other events sponsored or
             172      coordinated by multistate or national organization of, or including, state governments, state
             173      legislatures, or state legislators.
             174          (2) "Public official's immediate family" means:
             175          (a) the public official's spouse;
             176          (b) children living in the public official's household; or
             177          (c) other persons living in the public official's household.
             178          Section 4. Section 36-11-502 is enacted to read:
             179          36-11-502. Gifts prohibited.
             180          A lobbyist, principal, or government officer may not offer or give a gift valued at more
             181      than $5 to any public official or member of the public official's immediate family.
             182          Section 5. Section 63A-1-105 is amended to read:


             183           63A-1-105. Appointment of executive director -- Compensation.
             184          (1) The governor shall:
             185          (a) appoint the executive director with the consent of the Senate; and
             186          (b) establish the executive director's salary within the salary range fixed by the
             187      Legislature in Title 67, Chapter 22, State Officer Compensation.
             188          (2) The executive director shall serve at the pleasure of the governor.
             189          (3) For items donated to the state under Section 36-11-501 , the executive director or
             190      designee shall dispose of each donated items by either:
             191          (a) assigning the item to a state agency for its official use; or
             192          (b) selling the item at a public sale and depositing the net proceeds from the sale into
             193      the General Fund.
             194          Section 6. Section 63E-1-404 is amended to read:
             195           63E-1-404. Penalties for violation.
             196          (1) A person who knowingly violates this part:
             197          (a) is guilty of a third degree felony if the combined value of any compensation or
             198      assets received by the person as a result of the violation is equal to or greater than $10,000; or
             199          (b) is guilty of a class A misdemeanor if the combined value of any compensation or
             200      assets received by the person as a result of the violation is less than $10,000.
             201          (2) (a) In addition to any penalty imposed under Subsection (1), a person that violates
             202      this part shall return to the successor of the independent entity any compensation or assets
             203      received in violation of this part.
             204          (b) If the assets received by the person in violation of this part are no longer in the
             205      possession of the person, the person shall pay the successor of the independent entity an
             206      amount equal to the fair market value of the asset at the time the person received the asset.
             207          (3) Notwithstanding [Subsection] Section 36-11-401 [(3)], if a lobbyist violates
             208      Subsection 63E-1-402 (2)(b)(i)[,]:
             209          (a) the lobbyist is guilty of the crime outlined in Subsection (1)[, which]; and
             210          (b) the crime shall be determined by the value of compensation or assets received by
             211      the lobbyist.
             212          Section 7. Repealer.
             213          This bill repeals:


             214          Section 36-11-304, Prohibition on certain gifts of real or tangible personal
             215      property.




Legislative Review Note
    as of 1-16-09 8:18 AM


Office of Legislative Research and General Counsel


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