H.B. 41

This document includes House Committee Amendments incorporated into the bill on Mon, Jan 28, 2008 at 12:16 PM by ddonat. --> This document includes House Floor Amendments incorporated into the bill on Mon, Feb 4, 2008 at 1:12 PM by jeyring. --> This document includes Senate Committee Amendments incorporated into the bill on Tue, Feb 12, 2008 at 9:30 AM by rday. --> 1

CAMPAIGN REPORT AMENDMENTS
2 2008 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Sheryl L. Allen
5 Senate Sponsor: Peter C. Knudson
6
7 LONG TITLE
8 Committee Note:
9 The Political Subdivisions Interim Committee recommended this bill.
10 General Description:
11 This bill modifies provisions of the Campaign and Financial Reporting Requirements
12 chapter of the Election Code.
13 Highlighted Provisions:
14 This bill:
15 . consolidates definitions for clarity and consistency;
16 . clarifies the election officer's obligations to provide notice that certain campaign
17 financial statements are due;
18 . specifies what information the notices sent by the election officer must contain;
19 . requires the election officer to assess an administrative fee for each campaign
20 financial statement that is filed late by a state office candidate, a legislative
21 candidate, a state office or legislative officeholder, a political party, a political
22 action committee, a political issues committee, a state or local school board office
23 candidate, or a judicial retention candidate;
24 . clarifies that financial statements may be submitted via the Internet;
25 . provides procedures for filing amended campaign financial statements;
26 . requires the election officer to assess an administrative fee for all amended
27 campaign financial statements and provides a formula for calculation of the

28 administrative fee;
29 . provides for the deposit of administrative fees and penalties assessed under the
30 Campaign and Financial Reporting Requirements chapter;
31 . provides a process for appealing administrative fees assessed by the election officer;
32 and
33 . makes technical changes.
34 Monies Appropriated in this Bill:
35 None
36 Other Special Clauses:
37 H. [ None ] This bill coordinates with S.B. 21, Campaign Finance Disclosure Revisions,
37a by providing superceding amendments. .H
38 Utah Code Sections Affected:
39 AMENDS:
40 20A-11-101, as last amended by Laws of Utah 2004, Chapter 90
41 20A-11-103, as last amended by Laws of Utah 2001, Chapter 166
42 20A-11-206, as last amended by Laws of Utah 1999, Chapter 93
43 20A-11-305, as last amended by Laws of Utah 1999, Chapter 93
44 20A-11-403, as repealed and reenacted by Laws of Utah 1997, Chapter 355
45 20A-11-508, as last amended by Laws of Utah 2006, Chapter 16
46 20A-11-603, as enacted by Laws of Utah 1997, Chapter 355
47 20A-11-703, as enacted by Laws of Utah 1997, Chapter 355
48 20A-11-803, as enacted by Laws of Utah 1997, Chapter 355
49 20A-11-1305, as last amended by Laws of Utah 2003, Chapter 215
50 20A-12-306, as enacted by Laws of Utah 2001, Chapter 166
51 ENACTS:
52 20A-11-104, Utah Code Annotated 1953
53 20A-11-105, Utah Code Annotated 1953
54 20A-11-106, Utah Code Annotated 1953
55
56 Be it enacted by the Legislature of the state of Utah:
57 Section 1. Section 20A-11-101 is amended to read:
58 20A-11-101. Definitions.

59 As used in this chapter:
60 (1) "Address" means the number and street where an individual resides or where a
61 reporting entity has its principal office.
62 (2) "Ballot proposition" includes initiatives, referenda, proposed constitutional
63 amendments, and any other ballot propositions submitted to the voters that are authorized by
64 the Utah Code Annotated 1953.
65 (3) "Candidate" means any person who:
66 (a) files a declaration of candidacy for a public office; or
67 (b) receives contributions, makes expenditures, or gives consent for any other person to
68 receive contributions or make expenditures to bring about the person's nomination or election
69 to a public office.
70 (4) "Chief election officer" means:
71 (a) the lieutenant governor for state office candidates, legislative office candidates,
72 officeholders, political parties, political action committees, corporations, political issues
73 committees, and state school board candidates; and
74 (b) the county clerk for local school board candidates.
75 (5) "Continuing political party" means an organization of voters that participated in the
76 last regular general election and polled a total vote equal to 2% or more of the total votes cast
77 for all candidates for the United States House of Representatives.
78 (6) (a) "Contribution" means any of the following when done for political purposes:
79 (i) a gift, subscription, donation, loan, advance, or deposit of money or anything of
80 value given to the filing entity;
81 (ii) an express, legally enforceable contract, promise, or agreement to make a gift,
82 subscription, donation, unpaid or partially unpaid loan, advance, or deposit of money or
83 anything of value to the filing entity;
84 (iii) any transfer of funds from another reporting entity or a corporation to the filing
85 entity;
86 (iv) compensation paid by any person or reporting entity other than the filing entity for
87 personal services provided without charge to the filing entity;
88 (v) remuneration from any organization or its directly affiliated organization that has a
89 registered lobbyist to compensate a legislator for a loss of salary or income while the

90 Legislature is in session;
91 (vi) salaries or other remuneration paid to a legislator by any agency or subdivision of
92 the state, including school districts, for the period the Legislature is in session; and
93 (vii) goods or services provided to or for the benefit of the filing entity at less than fair
94 market value.
95 (b) "Contribution" does not include:
96 (i) services provided without compensation by individuals volunteering a portion or all
97 of their time on behalf of the filing entity; or
98 (ii) money lent to the filing entity by a financial institution in the ordinary course of
99 business.
100 (7) (a) "Corporation" means a domestic or foreign, profit or nonprofit, business
101 organization that is registered as a corporation or is authorized to do business in a state and
102 makes any expenditure from corporate funds for:
103 (i) political purposes; or
104 (ii) the purpose of influencing the approval or the defeat of any ballot proposition.
105 (b) "Corporation" does not mean:
106 (i) a business organization's political action committee or political issues committee; or
107 (ii) a business entity organized as a partnership or a sole proprietorship.
108 (8) "Detailed listing" means:
109 (a) for each contribution or public service assistance:
110 (i) the name and address of the individual or source making the contribution or public
111 service assistance;
112 (ii) the amount or value of the contribution or public service assistance; and
113 (iii) the date the contribution or public service assistance was made; and
114 (b) for each expenditure:
115 (i) the amount of the expenditure;
116 (ii) the person or entity to whom it was disbursed;
117 (iii) the specific purpose, item, or service acquired by the expenditure; and
118 (iv) the date the expenditure was made.
119 (9) "Election" means each:
120 (a) regular general election;

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

152 Incorporation, by which a geographical area becomes legally recognized as a city or town.
153 (15) "Incorporation election" means the election authorized by Section 10-2-111 .
154 (16) "Incorporation petition" means a petition authorized by Section 10-2-109 .
155 (17) "Individual" means a natural person.
156 (18) "Interim report" means a report identifying the contributions received and
157 expenditures made since the last report.
158 (19) "Legislative office" means the office of state senator, state representative, speaker
159 of the House of Representatives, president of the Senate, and the leader, whip, and assistant
160 whip of any party caucus in either house of the Legislature.
161 (20) "Legislative office candidate" means a person who:
162 (a) files a declaration of candidacy for the office of state senator or state representative;
163 (b) declares himself to be a candidate for, or actively campaigns for, the position of
164 speaker of the House of Representatives, president of the Senate, or the leader, whip, and
165 assistant whip of any party caucus in either house of the Legislature; and
166 (c) receives contributions, makes expenditures, or gives consent for any other person to
167 receive contributions or make expenditures to bring about the person's nomination or election
168 to a legislative office.
169 (21) "Newly registered political party" means an organization of voters that has
170 complied with the petition and organizing procedures of this chapter to become a registered
171 political party.
172 (22) "Officeholder" means a person who holds a public office.
173 (23) "Party committee" means any committee organized by or authorized by the
174 governing board of a registered political party.
175 (24) "Person" means both natural and legal persons, including individuals, business
176 organizations, personal campaign committees, party committees, political action committees,
177 political issues committees, labor unions, and labor organizations.
178 (25) "Personal campaign committee" means the committee appointed by a candidate to
179 act for the candidate as provided in this chapter.
180 (26) (a) "Political action committee" means an entity, or any group of individuals or
181 entities within or outside this state, that solicits or receives contributions from any other person,
182 group, or entity or makes expenditures for political purposes. A group or entity may not divide

183 or separate into units, sections, or smaller groups for the purpose of avoiding the financial
184 reporting requirements of this chapter, and substance shall prevail over form in determining the
185 scope or size of a political action committee.
186 (b) "Political action committee" includes groups affiliated with a registered political
187 party but not authorized or organized by the governing board of the registered political party
188 that receive contributions or makes expenditures for political purposes.
189 (c) "Political action committee" does not mean:
190 (i) a party committee;
191 (ii) any entity that provides goods or services to a candidate or committee in the regular
192 course of its business at the same price that would be provided to the general public;
193 (iii) an individual;
194 (iv) individuals who are related and who make contributions from a joint checking
195 account;
196 (v) a corporation; or
197 (vi) a personal campaign committee.
198 (27) "Political convention" means a county or state political convention held by a
199 registered political party to select candidates.
200 (28) (a) "Political issues committee" means an entity, or any group of individuals or
201 entities within or outside this state, that solicits or receives donations from any other person,
202 group, or entity or makes disbursements to influence, or to intend to influence, directly or
203 indirectly, any person to:
204 (i) assist in placing a statewide ballot proposition on the ballot, assist in keeping a
205 statewide ballot proposition off the ballot, or refrain from voting or vote for or vote against any
206 statewide ballot proposition; or
207 (ii) sign or refuse to sign an incorporation petition or refrain from voting, vote for, or
208 vote against any proposed incorporation in an incorporation election.
209 (b) "Political issues committee" does not mean:
210 (i) a registered political party or a party committee;
211 (ii) any entity that provides goods or services to an individual or committee in the
212 regular course of its business at the same price that would be provided to the general public;
213 (iii) an individual;

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

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

276 (35) "Publicly identified class of individuals" means a group of 50 or more individuals
277 sharing a common occupation, interest, or association that contribute to a political action
278 committee or political issues committee and whose names can be obtained by contacting the
279 political action committee or political issues committee upon whose financial report they are
280 listed.
281 (36) "Receipts" means contributions and public service assistance.
282 (37) "Registered lobbyist" means a person registered under Title 36, Chapter 11,
283 Lobbyist Disclosure and Regulation Act.
284 (38) "Registered political action committee" means any political action committee that
285 is required by this chapter to file a statement of organization with the lieutenant governor's
286 office.
287 (39) "Registered political issues committee" means any political issues committee that
288 is required by this chapter to file a statement of organization with the lieutenant governor's
289 office.
290 (40) "Registered political party" means an organization of voters that:
291 (a) participated in the last regular general election and polled a total vote equal to 2%
292 or more of the total votes cast for all candidates for the United States House of Representatives
293 for any of its candidates for any office; or
294 (b) has complied with the petition and organizing procedures of this chapter.
295 [(41) "Report" means a verified financial statement.]
296 [(42)] (41) "Reporting entity" means a candidate, a candidate's personal campaign
297 committee, an officeholder, [and] a party committee, a political action committee, and a
298 political issues committee.
299 [(43)] (42) "School board office" means the office of state school board or local school
300 board.
301 [(44)] (43) (a) "Source" means the person or entity that is the legal owner of the
302 tangible or intangible asset that comprises the contribution.
303 (b) "Source" means, for political action committees and corporations, the political
304 action committee and the corporation as entities, not the contributors to the political action
305 committee or the owners or shareholders of the corporation.
306 [(45)] (44) "State office" means the offices of governor, lieutenant governor, attorney

307 general, state auditor, and state treasurer.
308 [(46)] (45) "State office candidate" means a person who:
309 (a) files a declaration of candidacy for a state office; or
310 (b) receives contributions, makes expenditures, or gives consent for any other person to
311 receive contributions or make expenditures to bring about the person's nomination or election
312 to a state office.
313 [(47)] (46) "Summary report" means the year end report containing the summary of a
314 reporting entity's contributions and expenditures.
315 [(48)] (47) "Supervisory board" means the individual or group of individuals that
316 allocate expenditures from a political issues committee.
317 Section 2. Section 20A-11-103 is amended to read:
318 20A-11-103. Notice of pending interim and summary reports -- Form of
319 submission.
320 (1) (a) [(i)] Ten days before a [report] financial statement from a state office candidate,
321 legislative office candidate, officeholder, state school board candidate, political party, political
322 action committee, political issues committee, or judge is due under this chapter, the lieutenant
323 governor shall inform those candidates, officeholders, parties, committees, and judges[, and
324 entities] by postal mail or, if requested by the candidate, [judge,] officeholder, party, [or]
325 committee, or judge, by electronic mail:
326 [(A)] (i) that the [report] financial statement is due; [and]
327 [(B)] (ii) the date that the [report] financial statement is due[.];
328 (iii) that administrative fees will be assessed if the financial statement is not timely
329 received;
330 [(ii)] (iv) [In addition to the information required by Subsection (1)(a)(i) and in the
331 same mailing, ten days before the interim reports for candidates or judges are due, the
332 lieutenant governor shall inform the candidate or judge] if the notification is sent to a judge in
333 reference to the interim report due before the regular general election, H. [ or ] that voters will be
333a informed that the judge has been disqualified and any votes cast for the judge will not be
333b counted if the report is not timely filed;
333c (v) if the notification is sent .H to a candidate in
334 reference to an interim report due before the regular primary election, on September 15, or
335 before the regular general election, that H. [ if the report is not ] .H [received in the
335a lieutenant governor's
336 office by 5 p.m. on the date that it is due] H. [ timely filed, ] .H voters will be informed that the
337 candidate H. [ or judge ] .H has been disqualified and any votes cast for the candidate H. [ or
337a judge ] .H will not

338 be counted[.] H. if the report is not timely filed .H ;
339 [(iii)] H. [ (v) ] (vi) .H [In addition to the information required by Subsection (1)(a)(i)
339a and in the
340 same mailing, ten days before the interim reports or verified financial statements for entities
341 that are due September 15 and before the regular general election are due, and ten days before
342 summary reports or January 5 financial statements are due, the lieutenant governor shall inform
343 the entity, candidate, judge, or officeholder that if the report is not received in the lieutenant
344 governor's office by the date that it is due, the entity, candidate, judge, or officeholder] if the
345 notification is sent to a political party, political action committee, or political issues committee
346 in reference to an interim report or a verified financial statement, that the entity may be guilty
347 of a class B misdemeanor for failing to file the report or statement[.]; and
348 H. [ (vi) ] (vii) .H if the notification is in reference to a summary report, that the candidate,
349 officeholder, party, committee, or judge may be guilty of a class B misdemeanor for failing to
350 file the report.
351 (b) Ten days before [a] an interim or summary report from a local school board
352 candidate is due under this chapter, the county clerk shall inform the candidate by postal mail
353 or, if requested, by electronic mail:
354 (i) that the report is due;
355 (ii) the date that the report is due; [and]
356 (iii) that the candidate will be assessed administrative fees if the report is not timely
357 received;
358 [(iii)] (iv) if the notification is in reference to an interim report due before the regular
359 primary election, on September 15, or before the regular general election, that, if the report is
360 not [received in the county clerk's office by 5 p.m. on the date that it is due] timely filed, voters
361 will be informed that the candidate has been disqualified and any votes cast for the candidate
362 will not be counted[.]; and
363 (v) if the notification is in reference to a summary report, that the candidate may be
364 guilty of a class B misdemeanor for failing to file the report.
365 (2) Persons or entities submitting [reports] financial statements required by this chapter
366 may submit them:
367 (a) on paper, printed, typed, or legibly handwritten or hand printed;
368 (b) on a computer disk according to specifications established by the chief election

369 officer that protect against fraudulent filings and secure the accuracy of the information
370 contained on the computer disk;
371 (c) via fax; or
372 (d) via electronic mail or the Internet, according to specifications established by the
373 chief election officer.
374 (3) A [report] financial statement is considered timely filed if:
375 (a) it is received in the chief election officer's office no later than 5:00 p.m. on the date
376