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H.B. 232

             1     

CAMPAIGN AND FINANCIAL REPORTING

             2     
REQUIREMENTS REVISIONS

             3     
2009 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Douglas C. Aagard

             6     
Senate Sponsor: ____________

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill changes certain definitions in Title 20A, Chapter 11, Campaign and Financial
             11      Reporting Requirements.
             12      Highlighted Provisions:
             13          This bill:
             14          .    changes definitions concerning corporations, political action committees, political
             15      issues committees, and political issues expenditures;
             16          .    eliminates a definition; 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          20A-11-101, as last amended by Laws of Utah 2008, Chapters 14 and 49
             25          20A-11-1202, as last amended by Laws of Utah 2008, Chapters 225 and 360
             26     
             27      Be it enacted by the Legislature of the state of Utah:

             28          Section 1. Section 20A-11-101 is amended to read:
             29           20A-11-101. Definitions.
             30          As used in this chapter:
             31          (1) "Address" means the number and street where an individual resides or where a
             32      reporting entity has its principal office.
             33          (2) "Ballot proposition" includes initiatives, referenda, proposed constitutional
             34      amendments, and any other ballot propositions submitted to the voters that are authorized by
             35      the Utah Code Annotated 1953.
             36          (3) "Candidate" means any person who:
             37          (a) files a declaration of candidacy for a public office; or
             38          (b) receives contributions, makes expenditures, or gives consent for any other person to
             39      receive contributions or make expenditures to bring about the person's nomination or election
             40      to a public office.
             41          (4) "Chief election officer" means:
             42          (a) the lieutenant governor for state office candidates, legislative office candidates,
             43      officeholders, political parties, political action committees, corporations, political issues
             44      committees, and state school board candidates; and
             45          (b) the county clerk for local school board candidates.
             46          (5) "Continuing political party" means an organization of voters that participated in the
             47      last regular general election and polled a total vote equal to 2% or more of the total votes cast
             48      for all candidates for the United States House of Representatives.
             49          (6) (a) "Contribution" means any of the following when done for political purposes:
             50          (i) a gift, subscription, donation, loan, advance, or deposit of money or anything of
             51      value given to the filing entity;
             52          (ii) an express, legally enforceable contract, promise, or agreement to make a gift,
             53      subscription, donation, unpaid or partially unpaid loan, advance, or deposit of money or
             54      anything of value to the filing entity;
             55          (iii) any transfer of funds from another reporting entity or a corporation to the filing
             56      entity;
             57          (iv) compensation paid by any person or reporting entity other than the filing entity for
             58      personal services provided without charge to the filing entity;

             59          (v) remuneration from any organization or its directly affiliated organization that has a
             60      registered lobbyist to compensate a legislator for a loss of salary or income while the
             61      Legislature is in session;
             62          (vi) salaries or other remuneration paid to a legislator by any agency or subdivision of
             63      the state, including school districts, for the period the Legislature is in session; and
             64          (vii) goods or services provided to or for the benefit of the filing entity at less than fair
             65      market value.
             66          (b) "Contribution" does not include:
             67          (i) services provided without compensation by individuals volunteering a portion or all
             68      of their time on behalf of the filing entity; or
             69          (ii) money lent to the filing entity by a financial institution in the ordinary course of
             70      business.
             71          (7) (a) "Corporation" means a domestic or foreign, profit or nonprofit, business
             72      organization that is registered as a corporation or is authorized to do business in a state and
             73      makes any expenditure from corporate funds for:
             74          (i) political purposes; or
             75          (ii) the purpose of [influencing] expressly advocating the approval or the defeat of any
             76      ballot proposition.
             77          (b) "Corporation" does not mean:
             78          (i) a business organization's political action committee or political issues committee; or
             79          (ii) a business entity organized as a partnership or a sole proprietorship.
             80          (8) "Detailed listing" means:
             81          (a) for each contribution or public service assistance:
             82          (i) the name and address of the individual or source making the contribution or public
             83      service assistance;
             84          (ii) the amount or value of the contribution or public service assistance; and
             85          (iii) the date the contribution or public service assistance was made; and
             86          (b) for each expenditure:
             87          (i) the amount of the expenditure;
             88          (ii) the person or entity to whom it was disbursed;
             89          (iii) the specific purpose, item, or service acquired by the expenditure; and

             90          (iv) the date the expenditure was made.
             91          (9) "Election" means each:
             92          (a) regular general election;
             93          (b) regular primary election; and
             94          (c) special election at which candidates are eliminated and selected.
             95          (10) (a) "Expenditure" means:
             96          (i) any disbursement from contributions, receipts, or from the separate bank account
             97      required by this chapter;
             98          (ii) a purchase, payment, donation, distribution, loan, advance, deposit, gift of money,
             99      or anything of value made for political purposes;
             100          (iii) an express, legally enforceable contract, promise, or agreement to make any
             101      purchase, payment, donation, distribution, loan, advance, deposit, gift of money, or anything of
             102      value for political purposes;
             103          (iv) compensation paid by a corporation or filing entity for personal services rendered
             104      by a person without charge to a reporting entity;
             105          (v) a transfer of funds between the filing entity and a candidate's personal campaign
             106      committee; or
             107          (vi) goods or services provided by the filing entity to or for the benefit of another
             108      reporting entity for political purposes at less than fair market value.
             109          (b) "Expenditure" does not include:
             110          (i) services provided without compensation by individuals volunteering a portion or all
             111      of their time on behalf of a reporting entity;
             112          (ii) money lent to a reporting entity by a financial institution in the ordinary course of
             113      business; or
             114          (iii) anything listed in Subsection (10)(a) that is given by a corporation or reporting
             115      entity to candidates for office or officeholders in states other than Utah.
             116          (11) "Filing entity" means the reporting entity that is filing a financial statement
             117      required by this chapter.
             118          (12) "Financial statement" includes any summary report, interim report, verified
             119      financial statement, or other statement disclosing contributions, expenditures, receipts,
             120      donations, or disbursements that is required by this chapter.

             121          (13) "Governing board" means the individual or group of individuals that determine the
             122      candidates and committees that will receive expenditures from a political action committee.
             123          (14) "Incorporation" means the process established by Title 10, Chapter 2, Part 1,
             124      Incorporation, by which a geographical area becomes legally recognized as a city or town.
             125          (15) "Incorporation election" means the election authorized by Section 10-2-111 .
             126          (16) "Incorporation petition" means a petition authorized by Section 10-2-109 .
             127          (17) "Individual" means a natural person.
             128          (18) "Interim report" means a report identifying the contributions received and
             129      expenditures made since the last report.
             130          (19) "Legislative office" means the office of state senator, state representative, speaker
             131      of the House of Representatives, president of the Senate, and the leader, whip, and assistant
             132      whip of any party caucus in either house of the Legislature.
             133          (20) "Legislative office candidate" means a person who:
             134          (a) files a declaration of candidacy for the office of state senator or state representative;
             135          (b) declares himself to be a candidate for, or actively campaigns for, the position of
             136      speaker of the House of Representatives, president of the Senate, or the leader, whip, and
             137      assistant whip of any party caucus in either house of the Legislature; and
             138          (c) receives contributions, makes expenditures, or gives consent for any other person to
             139      receive contributions or make expenditures to bring about the person's nomination or election
             140      to a legislative office.
             141          (21) "Newly registered political party" means an organization of voters that has
             142      complied with the petition and organizing procedures of this chapter to become a registered
             143      political party.
             144          (22) "Officeholder" means a person who holds a public office.
             145          (23) "Party committee" means any committee organized by or authorized by the
             146      governing board of a registered political party.
             147          (24) "Person" means both natural and legal persons, including individuals, business
             148      organizations, personal campaign committees, party committees, political action committees,
             149      political issues committees, labor unions, and labor organizations.
             150          (25) "Personal campaign committee" means the committee appointed by a candidate to
             151      act for the candidate as provided in this chapter.

             152          (26) (a) "Political action committee" means an entity, or any group of individuals or
             153      entities within or outside this state, [that solicits or receives] a major purpose of which is to
             154      solicit or receive contributions from any other person, group, or entity or makes expenditures:
             155          (i) for political purposes; or
             156          (ii) [with the intent or in a way to influence or tend to influence, directly or indirectly,]
             157      to expressly advocate any person to refrain from voting or to vote for or against any candidate
             158      for a municipal or county office.
             159          (b) "Political action committee" includes groups affiliated with a registered political
             160      party but not authorized or organized by the governing board of the registered political party
             161      that receive contributions or makes expenditures for political purposes.
             162          (c) "Political action committee" does not mean:
             163          (i) a party committee;
             164          (ii) any entity that provides goods or services to a candidate or committee in the regular
             165      course of its business at the same price that would be provided to the general public;
             166          (iii) an individual;
             167          (iv) individuals who are related and who make contributions from a joint checking
             168      account;
             169          (v) a corporation; or
             170          (vi) a personal campaign committee.
             171          (27) "Political convention" means a county or state political convention held by a
             172      registered political party to select candidates.
             173          (28) (a) "Political issues committee" means an entity, or any group of individuals or
             174      entities within or outside this state, [that solicits or receives] a major purpose of which is to
             175      solicit or receive donations from any other person, group, or entity or [makes] make
             176      disbursements to [influence, or to intend to influence, directly or indirectly,] expressly advocate
             177      any person to:
             178          (i) assist in placing a ballot proposition on the ballot, assist in keeping a ballot
             179      proposition off the ballot, or refrain from voting or vote for or vote against any ballot
             180      proposition; or
             181          (ii) sign or refuse to sign an incorporation petition or refrain from voting, vote for, or
             182      vote against any proposed incorporation in an incorporation election.

             183          (b) "Political issues committee" does not mean:
             184          (i) a registered political party or a party committee;
             185          (ii) any entity that provides goods or services to an individual or committee in the
             186      regular course of its business at the same price that would be provided to the general public;
             187          (iii) an individual;
             188          (iv) individuals who are related and who make contributions from a joint checking
             189      account; or
             190          (v) a corporation, except a corporation whose apparent purpose is to act as a political
             191      issues committee.
             192          (29) (a) "Political issues contribution" means any of the following:
             193          (i) a gift, subscription, unpaid or partially unpaid loan, advance, or deposit of money or
             194      anything of value given to a political issues committee;
             195          (ii) an express, legally enforceable contract, promise, or agreement to make a political
             196      issues donation to influence the approval or defeat of any ballot proposition;
             197          (iii) any transfer of funds received by a political issues committee from a reporting
             198      entity;
             199          (iv) compensation paid by another reporting entity for personal services rendered
             200      without charge to a political issues committee; and
             201          (v) goods or services provided to or for the benefit of a political issues committee at
             202      less than fair market value.
             203          (b) "Political issues contribution" does not include:
             204          (i) services provided without compensation by individuals volunteering a portion or all
             205      of their time on behalf of a political issues committee; or
             206          (ii) money lent to a political issues committee by a financial institution in the ordinary
             207      course of business.
             208          (30) (a) "Political issues expenditure" means any of the following:
             209          (i) any payment from political issues contributions made for the purpose of influencing
             210      the approval or the defeat of:
             211          (A) a ballot proposition; or
             212          (B) an incorporation petition or incorporation election;
             213          (ii) a purchase, payment, distribution, loan, advance, deposit, or gift of money made for

             214      the express purpose of influencing the approval or the defeat of:
             215          (A) a ballot proposition; or
             216          (B) an incorporation petition or incorporation election;
             217          (iii) an express, legally enforceable contract, promise, or agreement to make any
             218      political issues expenditure;
             219          (iv) compensation paid by a reporting entity for personal services rendered by a person
             220      without charge to a political issues committee; or
             221          (v) goods or services provided to or for the benefit of another reporting entity at less
             222      than fair market value.
             223          (b) "Political issues expenditure" does not include:
             224          (i) services provided without compensation by individuals volunteering a portion or all
             225      of their time on behalf of a political issues committee; or
             226          (ii) money lent to a political issues committee by a financial institution in the ordinary
             227      course of business.
             228          (31) "Political purposes" means an act done with the intent or in a way to influence or
             229      tend to influence, directly or indirectly, any person to refrain from voting or to vote for or
             230      against any candidate for public office at any caucus, political convention, primary, or election.
             231          (32) "Primary election" means any regular primary election held under the election
             232      laws.
             233          (33) "Public office" means the office of governor, lieutenant governor, state auditor,
             234      state treasurer, attorney general, state or local school board member, state senator, state
             235      representative, speaker of the House of Representatives, president of the Senate, and the leader,
             236      whip, and assistant whip of any party caucus in either house of the Legislature.
             237          (34) (a) "Public service assistance" means the following when given or provided to an
             238      officeholder to defray the costs of functioning in a public office or aid the officeholder to
             239      communicate with the officeholder's constituents:
             240          (i) a gift, subscription, donation, unpaid or partially unpaid loan, advance, or deposit of
             241      money or anything of value to an officeholder; or
             242          (ii) goods or services provided at less than fair market value to or for the benefit of the
             243      officeholder.
             244          (b) "Public service assistance" does not include:

             245          (i) anything provided by the state;
             246          (ii) services provided without compensation by individuals volunteering a portion or all
             247      of their time on behalf of an officeholder;
             248          (iii) money lent to an officeholder by a financial institution in the ordinary course of
             249      business;
             250          (iv) news coverage or any publication by the news media; or
             251          (v) any article, story, or other coverage as part of any regular publication of any
             252      organization unless substantially all the publication is devoted to information about the
             253      officeholder.
             254          (35) "Publicly identified class of individuals" means a group of 50 or more individuals
             255      sharing a common occupation, interest, or association that contribute to a political action
             256      committee or political issues committee and whose names can be obtained by contacting the
             257      political action committee or political issues committee upon whose financial report they are
             258      listed.
             259          (36) "Receipts" means contributions and public service assistance.
             260          (37) "Registered lobbyist" means a person registered under Title 36, Chapter 11,
             261      Lobbyist Disclosure and Regulation Act.
             262          (38) "Registered political action committee" means any political action committee that
             263      is required by this chapter to file a statement of organization with the lieutenant governor's
             264      office.
             265          (39) "Registered political issues committee" means any political issues committee that
             266      is required by this chapter to file a statement of organization with the lieutenant governor's
             267      office.
             268          (40) "Registered political party" means an organization of voters that:
             269          (a) participated in the last regular general election and polled a total vote equal to 2%
             270      or more of the total votes cast for all candidates for the United States House of Representatives
             271      for any of its candidates for any office; or
             272          (b) has complied with the petition and organizing procedures of this chapter.
             273          (41) "Reporting entity" means a candidate, a candidate's personal campaign committee,
             274      an officeholder, a party committee, a political action committee, and a political issues
             275      committee.

             276          (42) "School board office" means the office of state school board or local school board.
             277          (43) (a) "Source" means the person or entity that is the legal owner of the tangible or
             278      intangible asset that comprises the contribution.
             279          (b) "Source" means, for political action committees and corporations, the political
             280      action committee and the corporation as entities, not the contributors to the political action
             281      committee or the owners or shareholders of the corporation.
             282          (44) "State office" means the offices of governor, lieutenant governor, attorney general,
             283      state auditor, and state treasurer.
             284          (45) "State office candidate" means a person who:
             285          (a) files a declaration of candidacy for a state office; or
             286          (b) receives contributions, makes expenditures, or gives consent for any other person to
             287      receive contributions or make expenditures to bring about the person's nomination or election
             288      to a state office.
             289          (46) "Summary report" means the year end report containing the summary of a
             290      reporting entity's contributions and expenditures.
             291          (47) "Supervisory board" means the individual or group of individuals that allocate
             292      expenditures from a political issues committee.
             293          Section 2. Section 20A-11-1202 is amended to read:
             294           20A-11-1202. Definitions.
             295          As used in this part:
             296          (1) "Ballot proposition" means constitutional amendments, initiatives, referenda,
             297      judicial retention questions, opinion questions, bond approvals, or other questions submitted to
             298      the voters for their approval or rejection.
             299          (2) (a) "Commercial interlocal cooperation agency" means an interlocal cooperation
             300      agency that receives its revenues from conduct of its commercial operations.
             301          (b) "Commercial interlocal cooperation agency" does not mean an interlocal
             302      cooperation agency that receives some or all of its revenues from:
             303          (i) government appropriations;
             304          (ii) taxes;
             305          (iii) government fees imposed for regulatory or revenue raising purposes; or
             306          (iv) interest earned on public funds or other returns on investment of public funds.

             307          (3) "Expenditure" means:
             308          (a) a purchase, payment, donation, distribution, loan, advance, deposit, gift of money,
             309      or anything of value;
             310          (b) an express, legally enforceable contract, promise, or agreement to make any
             311      purchase, payment, donation, distribution, loan, advance, deposit, gift of money, or anything of
             312      value;
             313          (c) a transfer of funds between a public entity and a candidate's personal campaign
             314      committee;
             315          (d) a transfer of funds between a public entity and a political issues committee; or
             316          (e) goods or services provided to or for the benefit of a candidate, a candidate's
             317      personal campaign committee, or a political issues committee for political purposes at less than
             318      fair market value.
             319          (4) "Governmental interlocal cooperation agency" means an interlocal cooperation
             320      agency that receives some or all of its revenues from:
             321          (a) government appropriations;
             322          (b) taxes;
             323          (c) government fees imposed for regulatory or revenue raising purposes; or
             324          (d) interest earned on public funds or other returns on investment of public funds.
             325          (5) (a) "Influence" means to campaign or advocate for or against a ballot proposition.
             326          (b) "Influence" does not mean providing a brief statement about a public entity's
             327      position on a ballot proposition and the reason for that position.
             328          (6) "Interlocal cooperation agency" means an entity created by interlocal agreement
             329      under the authority of Title 11, Chapter 13, Interlocal Cooperation Act.
             330          (7) "Local district" means an entity under Title 17B, Limited Purpose Local
             331      Government Entities - Local Districts, and includes a special service district under Title 17D,
             332      Chapter 1, Special Service District Act.
             333          [(8) (a) "Political issues committee" means an entity, or any group of individuals or
             334      entities within or outside this state, that solicits or receives a contribution from any other
             335      person, group, or entity and makes an expenditure from one or more contributions to influence,
             336      or to intend to influence, directly or indirectly, any person to assist in placing a ballot
             337      proposition on the ballot, to assist in keeping a ballot proposition off the ballot, or to refrain

             338      from voting or to vote for or to vote against any ballot proposition.]
             339          [(b) "Political issues committee" does not mean an entity that provides goods or
             340      services to an individual or committee in the regular course of its business at the same price
             341      that would be provided to the general public.]
             342          [(9)] (8) "Political purposes" means an act done with the intent or in a way to influence
             343      or intend to influence, directly or indirectly, any person to refrain from voting or to vote for or
             344      against any candidate for public office at any caucus, political convention, primary, or election.
             345          [(10)] (9) (a) "Public entity" includes the state, each state agency, each county,
             346      municipality, school district, local district, governmental interlocal cooperation agency, and
             347      each administrative subunit of each of them.
             348          (b) "Public entity" does not include a commercial interlocal cooperation agency.
             349          (c) "Public entity" includes local health departments created under Title 26, Chapter 1,
             350      [Local Health Departments] Department of Health Organization.
             351          [(11)] (10) (a) "Public funds" means any monies received by a public entity from
             352      appropriations, taxes, fees, interest, or other returns on investment.
             353          (b) "Public funds" does not include monies donated to a public entity by a person or
             354      entity.
             355          [(12)] (11) (a) "Public official" means an elected or appointed member of government
             356      with authority to make or determine public policy.
             357          (b) "Public official" includes the person or group that:
             358          (i) has supervisory authority over the personnel and affairs of a public entity; and
             359          (ii) approves the expenditure of funds for the public entity.
             360          [(13)] (12) (a) "State agency" means each department, commission, board, council,
             361      agency, institution, officer, corporation, fund, division, office, committee, authority, laboratory,
             362      library, unit, bureau, panel, or other administrative unit of the state.
             363          (b) "State agency" includes the legislative branch, the Board of Regents, the
             364      institutional councils of each higher education institution, and each higher education
             365      institution.




Legislative Review Note
    as of 12-29-08 11:47 AM

Office of Legislative Research and General Counsel

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