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H.B. 164

             1     

CAMPAIGN CONTRIBUTIONS LIMITS

             2     
2011 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Rebecca Chavez-Houck

             5     
Senate Sponsor: ____________

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill establishes campaign contribution limits.
             10      Highlighted Provisions:
             11          This bill:
             12          .    defines terms;
             13          .    establishes contribution limits;
             14          .    makes a violation of contribution limits a class A misdemeanor; and
             15          .    makes technical changes.
             16      Money Appropriated in this Bill:
             17          None
             18      Other Special Clauses:
             19          This bill takes effect January 1, 2013.
             20      Utah Code Sections Affected:
             21      AMENDS:
             22          20A-11-101, as last amended by Laws of Utah 2010, Chapters 197, 246, and 389
             23      ENACTS:
             24          20A-11-604, Utah Code Annotated 1953
             25          20A-11-705, Utah Code Annotated 1953
             26          20A-11-1504, Utah Code Annotated 1953
             27          20A-11-1701, Utah Code Annotated 1953

             28          20A-11-1702, Utah Code Annotated 1953
             29     
             30      Be it enacted by the Legislature of the state of Utah:
             31          Section 1. Section 20A-11-101 is amended to read:
             32           20A-11-101. Definitions.
             33          As used in this chapter:
             34          (1) "Address" means the number and street where an individual resides or where a
             35      reporting entity has its principal office.
             36          (2) "Ballot proposition" includes initiatives, referenda, proposed constitutional
             37      amendments, and any other ballot propositions submitted to the voters that are authorized by
             38      the Utah Code Annotated 1953.
             39          (3) "Candidate" means any person who:
             40          (a) files a declaration of candidacy for a public office; or
             41          (b) receives contributions, makes expenditures, or gives consent for any other person to
             42      receive contributions or make expenditures to bring about the person's nomination or election
             43      to a public office.
             44          (4) "Cash" means currency or coinage that constitutes legal tender.
             45          [(4)] (5) "Chief election officer" means:
             46          (a) the lieutenant governor for state office candidates, legislative office candidates,
             47      officeholders, political parties, political action committees, corporations, political issues
             48      committees, state school board candidates, judges, and labor organizations, as defined in
             49      Section 20A-11-1501 ; and
             50          (b) the county clerk for local school board candidates.
             51          [(5)] (6) (a) "Contribution" means any of the following when done for political
             52      purposes:
             53          (i) a gift, subscription, donation, loan, advance, or deposit of money or anything of
             54      value given to the filing entity;
             55          (ii) an express, legally enforceable contract, promise, or agreement to make a gift,
             56      subscription, donation, unpaid or partially unpaid loan, advance, or deposit of money or
             57      anything of value to the filing entity;
             58          (iii) any transfer of funds from another reporting entity to the filing entity;

             59          (iv) compensation paid by any person or reporting entity other than the filing entity for
             60      personal services provided without charge to the filing entity;
             61          (v) remuneration from:
             62          (A) any organization or its directly affiliated organization that has a registered lobbyist;
             63      or
             64          (B) any agency or subdivision of the state, including school districts; and
             65          (vi) goods or services provided to or for the benefit of the filing entity at less than fair
             66      market value.
             67          (b) "Contribution" does not include:
             68          (i) services provided without compensation by individuals volunteering a portion or all
             69      of their time on behalf of the filing entity;
             70          (ii) money lent to the filing entity by a financial institution in the ordinary course of
             71      business; or
             72          (iii) goods or services provided for the benefit of a candidate or political party at less
             73      than fair market value that are not authorized by or coordinated with the candidate or political
             74      party.
             75          (7) "Contribution" cycle means a two-year period of time:
             76          (a) beginning January 1, 2013, and each January 1 of an odd-numbered year thereafter;
             77      and
             78          (b) ending December 31 of an even-numbered year immediately following an odd
             79      numbered year described in Subsection (7)(a).
             80          [(6)] (8) "Coordinated with" means that goods or services provided for the benefit of a
             81      candidate or political party are provided:
             82          (a) with the candidate's or political party's prior knowledge, if the candidate or political
             83      party does not object;
             84          (b) by agreement with the candidate or political party;
             85          (c) in coordination with the candidate or political party; or
             86          (d) using official logos, slogans, and similar elements belonging to a candidate or
             87      political party.
             88          [(7)] (9) (a) "Corporation" means a domestic or foreign, profit or nonprofit, business
             89      organization that is registered as a corporation or is authorized to do business in a state and

             90      makes any expenditure from corporate funds for:
             91          (i) the purpose of expressly advocating for political purposes; or
             92          (ii) the purpose of expressly advocating the approval or the defeat of any ballot
             93      proposition.
             94          (b) "Corporation" does not mean:
             95          (i) a business organization's political action committee or political issues committee; or
             96          (ii) a business entity organized as a partnership or a sole proprietorship.
             97          [(8)] (10) "Detailed listing" means:
             98          (a) for each contribution or public service assistance:
             99          (i) the name and address of the individual or source making the contribution or public
             100      service assistance;
             101          (ii) the amount or value of the contribution or public service assistance; and
             102          (iii) the date the contribution or public service assistance was made; and
             103          (b) for each expenditure:
             104          (i) the amount of the expenditure;
             105          (ii) the person or entity to whom it was disbursed;
             106          (iii) the specific purpose, item, or service acquired by the expenditure; and
             107          (iv) the date the expenditure was made.
             108          [(9)] (11) "Election" means each:
             109          (a) regular general election;
             110          (b) regular primary election; and
             111          (c) special election at which candidates are eliminated and selected.
             112          [(10)] (12) "Electioneering communication" means a communication that:
             113          (a) has at least a value of $10,000;
             114          (b) clearly identifies a candidate or judge; and
             115          (c) is disseminated through the Internet, newspaper, magazine, outdoor advertising
             116      facility, direct mailing, broadcast, cable, or satellite provider within 45 days of the clearly
             117      identified candidate's or judge's election date.
             118          [(11)] (13) (a) "Expenditure" means:
             119          (i) any disbursement from contributions, receipts, or from the separate bank account
             120      required by this chapter;

             121          (ii) a purchase, payment, donation, distribution, loan, advance, deposit, gift of money,
             122      or anything of value made for political purposes;
             123          (iii) an express, legally enforceable contract, promise, or agreement to make any
             124      purchase, payment, donation, distribution, loan, advance, deposit, gift of money, or anything of
             125      value for political purposes;
             126          (iv) compensation paid by a filing entity for personal services rendered by a person
             127      without charge to a reporting entity;
             128          (v) a transfer of funds between the filing entity and a candidate's personal campaign
             129      committee; or
             130          (vi) goods or services provided by the filing entity to or for the benefit of another
             131      reporting entity for political purposes at less than fair market value.
             132          (b) "Expenditure" does not include:
             133          (i) services provided without compensation by individuals volunteering a portion or all
             134      of their time on behalf of a reporting entity;
             135          (ii) money lent to a reporting entity by a financial institution in the ordinary course of
             136      business; or
             137          (iii) anything listed in Subsection [(11)] (13)(a) that is given by a reporting entity to
             138      candidates for office or officeholders in states other than Utah.
             139          [(12)] (14) "Filing entity" means the reporting entity that is required to file a financial
             140      statement required by this chapter or Chapter 12, Part 2, Judicial Retention Elections.
             141          [(13)] (15) "Financial statement" includes any summary report, interim report, verified
             142      financial statement, or other statement disclosing contributions, expenditures, receipts,
             143      donations, or disbursements that is required by this chapter or Chapter 12, Part 2, Judicial
             144      Retention Elections.
             145          [(14)] (16) "Governing board" means the individual or group of individuals that
             146      determine the candidates and committees that will receive expenditures from a political action
             147      committee, political party, or corporation.
             148          [(15)] (17) "Incorporation" means the process established by Title 10, Chapter 2, Part
             149      1, Incorporation, by which a geographical area becomes legally recognized as a city or town.
             150          [(16)] (18) "Incorporation election" means the election authorized by Section 10-2-111 .
             151          [(17)] (19) "Incorporation petition" means a petition authorized by Section 10-2-109 .

             152          [(18)] (20) "Individual" means a natural person.
             153          [(19)] (21) "Interim report" means a report identifying the contributions received and
             154      expenditures made since the last report.
             155          [(20)] (22) "Legislative office" means the office of state senator, state representative,
             156      speaker of the House of Representatives, president of the Senate, and the leader, whip, and
             157      assistant whip of any party caucus in either house of the Legislature.
             158          [(21)] (23) "Legislative office candidate" means a person who:
             159          (a) files a declaration of candidacy for the office of state senator or state representative;
             160          (b) declares oneself to be a candidate for, or actively campaigns for, the position of
             161      speaker of the House of Representatives, president of the Senate, or the leader, whip, and
             162      assistant whip of any party caucus in either house of the Legislature; or
             163          (c) receives contributions, makes expenditures, or gives consent for any other person to
             164      receive contributions or make expenditures to bring about the person's nomination or election
             165      to a legislative office.
             166          [(22)] (24) "Officeholder" means a person who holds a public office.
             167          [(23)] (25) "Party committee" means any committee organized by or authorized by the
             168      governing board of a registered political party.
             169          [(24)] (26) "Person" means both natural and legal persons, including individuals,
             170      business organizations, personal campaign committees, party committees, political action
             171      committees, political issues committees, and labor organizations, as defined in Section
             172      20A-11-1501 .
             173          [(25)] (27) "Personal campaign committee" means the committee appointed by a
             174      candidate to act for the candidate as provided in this chapter.
             175          [(26)] (28) "Personal use expenditure" has the same meaning as provided under Section
             176      20A-11-104 .
             177          [(27)] (29) (a) "Political action committee" means an entity, or any group of
             178      individuals or entities within or outside this state, a major purpose of which is to:
             179          (i) solicit or receive contributions from any other person, group, or entity for political
             180      purposes; or
             181          (ii) make expenditures to expressly advocate for any person to refrain from voting or to
             182      vote for or against any candidate or person seeking election to a municipal or county office.

             183          (b) "Political action committee" includes groups affiliated with a registered political
             184      party but not authorized or organized by the governing board of the registered political party
             185      that receive contributions or makes expenditures for political purposes.
             186          (c) "Political action committee" does not mean:
             187          (i) a party committee;
             188          (ii) any entity that provides goods or services to a candidate or committee in the regular
             189      course of its business at the same price that would be provided to the general public;
             190          (iii) an individual;
             191          (iv) individuals who are related and who make contributions from a joint checking
             192      account;
             193          (v) a corporation, except a corporation a major purpose of which is to act as a political
             194      action committee; or
             195          (vi) a personal campaign committee.
             196          [(28)] (30) "Political convention" means a county or state political convention held by
             197      a registered political party to select candidates.
             198          [(29)] (31) (a) "Political issues committee" means an entity, or any group of individuals
             199      or entities within or outside this state, a major purpose of which is to:
             200          (i) solicit or receive donations from any other person, group, or entity to assist in
             201      placing a ballot proposition on the ballot, assist in keeping a ballot proposition off the ballot, or
             202      to advocate that a voter refrain from voting or vote for or vote against any ballot proposition;
             203          (ii) make expenditures to expressly advocate for any person to sign or refuse to sign a
             204      ballot proposition or incorporation petition or refrain from voting, vote for, or vote against any
             205      proposed ballot proposition or an incorporation in an incorporation election; or
             206          (iii) make expenditures to assist in qualifying or placing a ballot proposition on the
             207      ballot or to assist in keeping a ballot proposition off the ballot.
             208          (b) "Political issues committee" does not mean:
             209          (i) a registered political party or a party committee;
             210          (ii) any entity that provides goods or services to an individual or committee in the
             211      regular course of its business at the same price that would be provided to the general public;
             212          (iii) an individual;
             213          (iv) individuals who are related and who make contributions from a joint checking

             214      account; or
             215          (v) a corporation, except a corporation a major purpose of which is to act as a political
             216      issues committee.
             217          [(30)] (32) (a) "Political issues contribution" means any of the following:
             218          (i) a gift, subscription, unpaid or partially unpaid loan, advance, or deposit of money or
             219      anything of value given to a political issues committee;
             220          (ii) an express, legally enforceable contract, promise, or agreement to make a political
             221      issues donation to influence the approval or defeat of any ballot proposition;
             222          (iii) any transfer of funds received by a political issues committee from a reporting
             223      entity;
             224          (iv) compensation paid by another reporting entity for personal services rendered
             225      without charge to a political issues committee; and
             226          (v) goods or services provided to or for the benefit of a political issues committee at
             227      less than fair market value.
             228          (b) "Political issues contribution" does not include:
             229          (i) services provided without compensation by individuals volunteering a portion or all
             230      of their time on behalf of a political issues committee; or
             231          (ii) money lent to a political issues committee by a financial institution in the ordinary
             232      course of business.
             233          [(31)] (33) (a) "Political issues expenditure" means any of the following:
             234          (i) any payment from political issues contributions made for the purpose of influencing
             235      the approval or the defeat of:
             236          (A) a ballot proposition; or
             237          (B) an incorporation petition or incorporation election;
             238          (ii) a purchase, payment, distribution, loan, advance, deposit, or gift of money made for
             239      the express purpose of influencing the approval or the defeat of:
             240          (A) a ballot proposition; or
             241          (B) an incorporation petition or incorporation election;
             242          (iii) an express, legally enforceable contract, promise, or agreement to make any
             243      political issues expenditure;
             244          (iv) compensation paid by a reporting entity for personal services rendered by a person

             245      without charge to a political issues committee; or
             246          (v) goods or services provided to or for the benefit of another reporting entity at less
             247      than fair market value.
             248          (b) "Political issues expenditure" does not include:
             249          (i) services provided without compensation by individuals volunteering a portion or all
             250      of their time on behalf of a political issues committee; or
             251          (ii) money lent to a political issues committee by a financial institution in the ordinary
             252      course of business.
             253          [(32)] (34) "Political purposes" means an act done with the intent or in a way to
             254      influence or tend to influence, directly or indirectly, any person to refrain from voting or to vote
             255      for or against any candidate or a person seeking a municipal or county office at any caucus,
             256      political convention, or election.
             257          [(33)] (35) "Primary election" means any regular primary election held under the
             258      election laws.
             259          [(34)] (36) "Public office" means the office of governor, lieutenant governor, state
             260      auditor, state treasurer, attorney general, state or local school board member, state senator, state
             261      representative, speaker of the House of Representatives, president of the Senate, and the leader,
             262      whip, and assistant whip of any party caucus in either house of the Legislature.
             263          [(35)] (37) (a) "Public service assistance" means the following when given or provided
             264      to an officeholder to defray the costs of functioning in a public office or aid the officeholder to
             265      communicate with the officeholder's constituents:
             266          (i) a gift, subscription, donation, unpaid or partially unpaid loan, advance, or deposit of
             267      money or anything of value to an officeholder; or
             268          (ii) goods or services provided at less than fair market value to or for the benefit of the
             269      officeholder.
             270          (b) "Public service assistance" does not include:
             271          (i) anything provided by the state;
             272          (ii) services provided without compensation by individuals volunteering a portion or all
             273      of their time on behalf of an officeholder;
             274          (iii) money lent to an officeholder by a financial institution in the ordinary course of
             275      business;

             276          (iv) news coverage or any publication by the news media; or
             277          (v) any article, story, or other coverage as part of any regular publication of any
             278      organization unless substantially all the publication is devoted to information about the
             279      officeholder.
             280          [(36)] (38) "Publicly identified class of individuals" means a group of 50 or more
             281      individuals sharing a common occupation, interest, or association that contribute to a political
             282      action committee or political issues committee and whose names can be obtained by contacting
             283      the political action committee or political issues committee upon whose financial statement the
             284      individuals are listed.
             285          [(37)] (39) "Receipts" means contributions and public service assistance.
             286          [(38)] (40) "Registered lobbyist" means a person registered under Title 36, Chapter 11,
             287      Lobbyist Disclosure and Regulation Act.
             288          [(39)] (41) "Registered political action committee" means any political action
             289      committee that is required by this chapter to file a statement of organization with the lieutenant
             290      governor's office.
             291          [(40)] (42) "Registered political issues committee" means any political issues
             292      committee that is required by this chapter to file a statement of organization with the lieutenant
             293      governor's office.
             294          [(41)] (43) "Registered political party" means an organization of voters that:
             295          (a) participated in the last regular general election and polled a total vote equal to 2%
             296      or more of the total votes cast for all candidates for the United States House of Representatives
             297      for any of its candidates for any office; or
             298          (b) has complied with the petition and organizing procedures of Chapter 8, Political
             299      Party Formation and Procedures.
             300          [(42)] (44) (a) "Remuneration" means a payment:
             301          (i) made to a legislator for the period the Legislature is in session; and
             302          (ii) that is approximately equivalent to an amount a legislator would have earned
             303      during the period the Legislature is in session in the legislator's ordinary course of business.
             304          (b) "Remuneration" does not mean anything of economic value given to a legislator by:
             305          (i) the legislator's primary employer in the ordinary course of business; or
             306          (ii) a person or entity in the ordinary course of business:

             307          (A) because of the legislator's ownership interest in the entity; or
             308          (B) for services rendered by the legislator on behalf of the person or entity.
             309          [(43)] (45) "Reporting entity" means a candidate, a candidate's personal campaign
             310      committee, a judge, a judge's personal campaign committee, an officeholder, a party
             311      committee, a political action committee, a political issues committee, a corporation, or a labor
             312      organization, as defined in Section 20A-11-1501 .
             313          [(44)] (46) "School board office" means the office of state school board or local school
             314      board.
             315          (47) "Solicitation and administration costs" means the cost of office space, phones,
             316      salaries, employee benefits, utilities, supplies, legal and accounting fees, fund-raising, and
             317      other expenses incurred in setting up and running a political action committee established by a
             318      corporation or labor organization.
             319          [(45)] (48) (a) "Source" means the person or entity that is the legal owner of the
             320      tangible or intangible asset that comprises the contribution.
             321          (b) "Source" means, for political action committees and corporations, the political
             322      action committee and the corporation as entities, not the contributors to the political action
             323      committee or the owners or shareholders of the corporation.
             324          [(46)] (49) "State office" means the offices of governor, lieutenant governor, attorney
             325      general, state auditor, and state treasurer.
             326          [(47)] (50) "State office candidate" means a person who:
             327          (a) files a declaration of candidacy for a state office; or
             328          (b) receives contributions, makes expenditures, or gives consent for any other person to
             329      receive contributions or make expenditures to bring about the person's nomination or election
             330      to a state office.
             331          [(48)] (51) "Summary report" means the year end report containing the summary of a
             332      reporting entity's contributions and expenditures.
             333          [(49)] (52) "Supervisory board" means the individual or group of individuals that
             334      allocate expenditures from a political issues committee.
             335          Section 2. Section 20A-11-604 is enacted to read:
             336          20A-11-604. Limits on contributions by political action committees.
             337          (1) A political action committee may not make contributions totaling more than the

             338      following amounts per contribution cycle:
             339          (a) $10,000 to one state office candidate;
             340          (b) $5,000 to one legislative office candidate;
             341          (c) $40,000 to one registered political party;
             342          (d) $10,000 to one political action committee; or
             343          (e) $50,000 in the aggregate to one or more:
             344          (i) registered political parties;
             345          (ii) labor organizations; and
             346          (iii) political action committees.
             347          (2) Solicitation or administrative costs incurred by a political action committee are
             348      excluded from the contribution limits specified in Subsection (1).
             349          (3) A political action committee may not make a cash contribution in excess of $50 in
             350      a contribution cycle.
             351          Section 3. Section 20A-11-705 is enacted to read:
             352          20A-11-705. Limits on contributions by corporations.
             353          (1) A corporation may not make contributions totaling more than the following
             354      amounts per contribution cycle:
             355          (a) $10,000 to one state office candidate;
             356          (b) $5,000 to one legislative office candidate;
             357          (c) $40,000 to one registered political party;
             358          (d) $10,000 to one political action committee; or
             359          (e) $50,000 in the aggregate to one or more:
             360          (i) registered political parties;
             361          (ii) labor organizations; and
             362          (iii) political action committees.
             363          (2) Solicitation or administrative costs incurred by a corporation are excluded from the
             364      contribution limits specified in Subsection (1).
             365          (3) A corporation may not make a cash contribution in excess of $50 in a contribution
             366      cycle.
             367          Section 4. Section 20A-11-1504 is enacted to read:
             368          20A-11-1504. Limits on contributions by a labor organization.

             369          (1) A labor organization may not make contributions totaling more than the following
             370      amounts per contribution cycle:
             371          (a) $10,000 to one state office candidate;
             372          (b) $5,000 to one legislative office candidate;
             373          (c) $40,000 to one registered political party;
             374          (d) $10,000 to one political action committee; or
             375          (e) $50,000 in the aggregate to one or more:
             376          (i) registered political parties;
             377          (ii) labor organizations; and
             378          (iii) political action committees.
             379          (2) Solicitation or administrative costs incurred by a labor organization are excluded
             380      from the contribution limits specified in Subsection (1).
             381          (3) A labor organization may not make a cash contribution in excess of $50 in a
             382      contribution cycle.
             383          Section 5. Section 20A-11-1701 is enacted to read:
             384     
Part 17. Contribution Limits

             385          20A-11-1701. Limits on contributions by an individual.
             386          (1) An individual may not make contributions totaling more than the following
             387      amounts per contribution cycle:
             388          (a) $10,000 to one state office candidate;
             389          (b) $5,000 to one legislative office candidate;
             390          (c) $40,000 to one registered political party; or
             391          (d) $10,000 to one political action committee.
             392          (2) An individual may not make a cash contribution in excess of $50 in a contribution
             393      cycle.
             394          Section 6. Section 20A-11-1702 is enacted to read:
             395          20A-11-1702. Penalty for contributions in excess of limit.
             396          (1) A person who makes a contribution in excess of the contribution limits established
             397      in Section 20A-11-604 , 20A-11-705 , 20A-11-1504 , or 20A-11-1701 is guilty of a class A
             398      misdemeanor.
             399          (2) A person who accepts a contribution in excess of the contribution limits established

             400      in Section 20A-11-604 , 20A-11-705 , 20A-11-1504 , or 20A-11-1701 is guilty of a class A
             401      misdemeanor.
             402          Section 7. Effective date.
             403          This bill takes effect January 1, 2013.




Legislative Review Note
    as of 1-26-11 7:01 PM

Office of Legislative Research and General Counsel

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