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H.B. 29

             1     

ELECTION LAW - FINANCIAL REPORTING

             2     
2008 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Bradley M. Daw

             5     
Senate Sponsor: Margaret Dayton

             6     
             7      LONG TITLE
             8      Committee Note:
             9          The Political Subdivisions Interim Committee recommended this bill.
             10      General Description:
             11          This bill modifies election financial reporting provisions in the Election Code, the
             12      Municipal Code, and Title 17, Counties.
             13      Highlighted Provisions:
             14          This bill:
             15          .    requires municipalities and counties to make campaign finance disclosure
             16      statements that are filed by candidates for elective office available for public
             17      copying and inspection no later than the working day following the date of filing;
             18          .    requires municipalities and counties to either:
             19              .    post an electronic copy or the contents of the disclosure statement on the
             20      municipality's or county's website and provide the link to the lieutenant
             21      governor's office; or
             22              .    submit a copy of the statement for posting on the lieutenant governor's
             23      campaign finance disclosure website;
             24          .    expands the regulation of political issues committees to include committees that
             25      receive contributions or make expenditures in relation to local ballot issues, as
             26      opposed to prior regulation of only statewide ballot issues;
             27          .    clarifies definitions;


             28          .    requires the lieutenant governor to make campaign finance disclosure statements
             29      available for public copying and inspection no later than the working day following
             30      the date of filing;
             31          .    provides a statutory requirement for the lieutenant governor to post campaign
             32      finance disclosure statements on the Internet;
             33          .    requires the lieutenant governor to post each campaign finance statement that is
             34      provided by a municipality or a county on its website; and
             35          .    makes technical changes.
             36      Monies Appropriated in this Bill:
             37          None
             38      Other Special Clauses:
             39          None
             40      Utah Code Sections Affected:
             41      AMENDS:
             42          10-3-208, as last amended by Laws of Utah 2007, Chapter 256
             43          17-16-6.5, as last amended by Laws of Utah 2003, Chapter 215
             44          20A-11-101, as last amended by Laws of Utah 2004, Chapter 90
             45          20A-11-103, as last amended by Laws of Utah 2001, Chapter 166
             46          20A-11-802, as last amended by Laws of Utah 2003, Chapters 160 and 304
             47     
             48      Be it enacted by the Legislature of the state of Utah:
             49          Section 1. Section 10-3-208 is amended to read:
             50           10-3-208. Campaign finance statement in municipal election.
             51          (1) As used in this section:
             52          (a) "Reporting date" means:
             53          (i) ten days before a municipal general election, for a campaign finance statement
             54      required to be filed no later than seven days before a municipal general election; and
             55          (ii) the day of filing, for a campaign finance statement required to be filed no later than
             56      30 days after a municipal primary or general election.
             57          (b) "Reporting limit" means:
             58          (i) $50; or


             59          (ii) an amount lower than $50 that is specified in an ordinance of the municipality.
             60          (2) (a) (i) Each candidate for municipal office who is not eliminated at a municipal
             61      primary election shall file with the municipal clerk or recorder a campaign finance statement:
             62          (A) no later than seven days before the date of the municipal general election; and
             63          (B) no later than 30 days after the date of the municipal general election.
             64          (ii) Each candidate for municipal office who is eliminated at a municipal primary
             65      election shall file with the municipal clerk or recorder a campaign finance statement no later
             66      than 30 days after the date of the municipal primary election.
             67          (b) Each campaign finance statement under Subsection (2)(a) shall:
             68          (i) except as provided in Subsection (2)(b)(ii):
             69          (A) report all of the candidate's itemized and total:
             70          (I) campaign contributions, including in-kind and other nonmonetary contributions,
             71      received before the close of the reporting date; and
             72          (II) campaign expenditures made through the close of the reporting date; and
             73          (B) identify:
             74          (I) for each contribution that exceeds the reporting limit, the amount of the contribution
             75      and the name of the donor;
             76          (II) the aggregate total of all contributions that individually do not exceed the reporting
             77      limit; and
             78          (III) for each campaign expenditure, the amount of the expenditure and the name of the
             79      recipient of the expenditure; or
             80          (ii) report the total amount of all campaign contributions and expenditures if the
             81      candidate receives $500 or less in campaign contributions and spends $500 or less on the
             82      candidate's campaign.
             83          (3) (a) A municipality may, by ordinance:
             84          (i) provide a reporting limit lower than $50;
             85          (ii) require greater disclosure of campaign contributions and expenditures than is
             86      required in this section; and
             87          (iii) impose additional penalties on candidates who fail to comply with the applicable
             88      requirements beyond those imposed by this section.
             89          (b) A candidate for municipal office is subject to the provisions of this section and not


             90      the provisions of an ordinance adopted by the municipality under Subsection (3)(a) if:
             91          (i) the municipal ordinance establishes requirements or penalties that differ from those
             92      established in this section; and
             93          (ii) the municipal clerk or recorder fails to notify the candidate of the provisions of the
             94      ordinance as required in Subsection (4).
             95          (4) Each municipal clerk or recorder shall, at the time the candidate for municipal
             96      office files a declaration of candidacy, and again 14 days before each municipal general
             97      election, notify the candidate in writing of:
             98          (a) the provisions of statute or municipal ordinance governing the disclosure of
             99      campaign contributions and expenditures;
             100          (b) the dates when the candidate's campaign finance statement is required to be filed;
             101      and
             102          (c) the penalties that apply for failure to file a timely campaign finance statement,
             103      including the statutory provision that requires removal of the candidate's name from the ballot
             104      for failure to file the required campaign finance statement when required.
             105          (5) Notwithstanding any provision of Title 63, Chapter 2, Government Records Access
             106      and Management Act, the municipal clerk or recorder shall:
             107          (a) make each campaign finance statement filed by a candidate available for public
             108      inspection and copying no later than one business day after the statement is filed[.]; and
             109          (b) make the campaign finance statement filed by a candidate available for public
             110      inspection by:
             111          (i) (A) posting an electronic copy or the contents of the statement on the municipality's
             112      website no later than seven business days after the statement is filed; and
             113          (B) verifying that the address of the municipality's website has been provided to the
             114      lieutenant governor in order to meet the requirements of Subsection 20A-11-103 (5); or
             115          (ii) submitting a copy of the statement to the lieutenant governor for posting on the
             116      website established by the lieutenant governor under Section 20A-11-103 no later than two
             117      business days after the statement is filed.
             118          (6) (a) If a candidate fails to file a campaign finance statement before the municipal
             119      general election by the deadline specified in Subsection (2)(a)(i)(A), the municipal clerk or
             120      recorder shall inform the appropriate election official who:


             121          (i) shall:
             122          (A) if practicable, remove the candidate's name from the ballot by blacking out the
             123      candidate's name before the ballots are delivered to voters; or
             124          (B) if removing the candidate's name from the ballot is not practicable, inform the
             125      voters by any practicable method that the candidate has been disqualified and that votes cast for
             126      the candidate will not be counted; and
             127          (ii) may not count any votes for that candidate.
             128          (b) Notwithstanding Subsection (6)(a), a candidate who files a campaign finance
             129      statement seven days before a municipal general election is not disqualified if:
             130          (i) the statement details accurately and completely the information required under
             131      Subsection (2)(b), except for inadvertent omissions or insignificant errors or inaccuracies; and
             132          (ii) the omissions, errors, or inaccuracies are corrected in an amended report or in the
             133      next scheduled report.
             134          (7) A campaign finance statement required under this section is considered filed if it is
             135      received in the municipal clerk or recorder's office by 5 p.m. on the date that is it due.
             136          (8) (a) A private party in interest may bring a civil action in district court to enforce the
             137      provisions of this section or an ordinance adopted under this section.
             138          (b) In a civil action under Subsection (8)(a), the court may award costs and attorney's
             139      fees to the prevailing party.
             140          Section 2. Section 17-16-6.5 is amended to read:
             141           17-16-6.5. Campaign financial disclosure in county elections.
             142          (1) (a) By January 1, 1996, each county shall adopt an ordinance establishing campaign
             143      finance disclosure requirements for candidates for county office.
             144          (b) The ordinance shall include:
             145          (i) a requirement that each candidate for county office report his itemized and total
             146      campaign contributions and expenditures at least once within the two weeks before the election
             147      and at least once within two months after the election;
             148          (ii) a definition of "contribution" and "expenditure" that requires reporting of
             149      nonmonetary contributions such as in-kind contributions and contributions of tangible things;
             150      and
             151          (iii) a requirement that the financial reports identify:


             152          (A) for each contribution of more than $50, the name of the donor of the contribution
             153      and the amount of the contribution; and
             154          (B) for each expenditure, the name of the recipient and the amount of the expenditure.
             155          (2) (a) Except as provided in Subsection (2)(b), if any county fails to adopt a campaign
             156      finance disclosure ordinance by January 1, 1996, candidates for county office shall comply
             157      with the financial reporting requirements contained in Subsections (3) through (6).
             158          (b) If, after August 1, 1995, any county adopts a campaign finance ordinance meeting
             159      the requirements of Subsection (1), that county need not comply with the requirements of
             160      Subsections (3) through (6).
             161          (3) (a) Except as provided in Subsection (3)(b), and if there is no county ordinance
             162      meeting the requirements of this section, each candidate for elective office in any county who
             163      is not required to submit a campaign financial statement to the lieutenant governor shall file a
             164      signed campaign financial statement with the county clerk:
             165          (i) seven days before the date of the regular general election, reporting each
             166      contribution of more than $50 and each expenditure as of ten days before the date of the regular
             167      general election; and
             168          (ii) no later than 30 days after the date of the regular general election.
             169          (b) Candidates for community council offices are exempt from the requirements of this
             170      section.
             171          (4) (a) The statement filed seven days before the regular general election shall include:
             172          (i) a list of each contribution of more than $50 received by the candidate, and the name
             173      of the donor;
             174          (ii) an aggregate total of all contributions of $50 or less received by the candidate; and
             175          (iii) a list of each expenditure for political purposes made during the campaign period,
             176      and the recipient of each expenditure.
             177          (b) The statement filed 30 days after the regular general election shall include:
             178          (i) a list of each contribution of more than $50 received after the cutoff date for the
             179      statement filed seven days before the election, and the name of the donor;
             180          (ii) an aggregate total of all contributions of $50 or less received by the candidate after
             181      the cutoff date for the statement filed seven days before the election; and
             182          (iii) a list of all expenditures for political purposes made by the candidate after the


             183      cutoff date for the statement filed seven days before the election, and the recipient of each
             184      expenditure.
             185          (5) Candidates for elective office in any county who are eliminated at a primary
             186      election shall file a signed campaign financial statement containing the information required by
             187      this section not later than 30 days after the primary election.
             188          (6) Any person who fails to comply with this section is guilty of an infraction.
             189          (7) Counties may, by ordinance, enact requirements that:
             190          (a) require greater disclosure of campaign contributions and expenditures; and
             191          (b) impose additional penalties.
             192          (8) (a) If a candidate fails to file an interim report due before the election, the county
             193      clerk shall, after making a reasonable attempt to discover if the report was timely mailed,
             194      inform the appropriate election officials who:
             195          (i) shall, if practicable, remove the name of the candidate by blacking out the
             196      candidate's name before the ballots are delivered to voters; or
             197          (ii) shall, if removing the candidate's name from the ballot is not practicable, inform
             198      the voters by any practicable method that the candidate has been disqualified and that votes
             199      cast for the candidate will not be counted; and
             200          (iii) may not count any votes for that candidate.
             201          (b) Notwithstanding Subsection (8)(a), a candidate is not disqualified if:
             202          (i) the candidate files the reports required by this section;
             203          (ii) those reports are completed, detailing accurately and completely the information
             204      required by this section except for inadvertent omissions or insignificant errors or inaccuracies;
             205      and
             206          (iii) those omissions, errors, or inaccuracies are corrected in an amended report or in
             207      the next scheduled report.
             208          (c) A report is considered filed if:
             209          (i) it is received in the county clerk's office no later than 5 p.m. on the date that it is
             210      due;
             211          (ii) it is received in the county clerk's office with a U.S. Postal Service postmark three
             212      days or more before the date that the report was due; or
             213          (iii) the candidate has proof that the report was mailed, with appropriate postage and


             214      addressing, three days before the report was due.
             215          (9) (a) Any private party in interest may bring a civil action in district court to enforce
             216      the provisions of this section or any ordinance adopted under this section.
             217          (b) In a civil action filed under Subsection (9)(a), the court shall award costs and
             218      attorney's fees to the prevailing party.
             219          (10) Notwithstanding any provision of Title 63, Chapter 2, Government Records
             220      Access and Management Act, the county clerk shall:
             221          (a) make each campaign finance statement filed by a candidate available for public
             222      inspection and copying no later than one business day after the statement is filed; and
             223          (b) make the campaign finance statement filed by a candidate available for public
             224      inspection by:
             225          (i) (A) posting an electronic copy or the contents of the statement on the county's
             226      website no later than seven business days after the statement is filed; and
             227          (B) verifying that the address of the county's website has been provided to the
             228      lieutenant governor in order to meet the requirements of Subsection 20A-11-103 (5); or
             229          (ii) submitting a copy of the statement to the lieutenant governor for posting on the
             230      website established by the lieutenant governor under Section 20A-11-103 no later than two
             231      business days after the statement is filed.
             232          Section 3. Section 20A-11-101 is amended to read:
             233           20A-11-101. Definitions.
             234          As used in this chapter:
             235          (1) "Address" means the number and street where an individual resides or where a
             236      reporting entity has its principal office.
             237          (2) "Ballot proposition" includes initiatives, referenda, proposed constitutional
             238      amendments, and any other ballot propositions submitted to the voters that are authorized by
             239      the Utah Code Annotated 1953.
             240          (3) "Candidate" means any person who:
             241          (a) files a declaration of candidacy for a public office; or
             242          (b) receives contributions, makes expenditures, or gives consent for any other person to
             243      receive contributions or make expenditures to bring about the person's nomination or election
             244      to a public office.


             245          (4) "Chief election officer" means:
             246          (a) the lieutenant governor for state office candidates, legislative office candidates,
             247      officeholders, political parties, political action committees, corporations, political issues
             248      committees, and state school board candidates; and
             249          (b) the county clerk for local school board candidates.
             250          (5) "Continuing political party" means an organization of voters that participated in the
             251      last regular general election and polled a total vote equal to 2% or more of the total votes cast
             252      for all candidates for the United States House of Representatives.
             253          (6) (a) "Contribution" means any of the following when done for political purposes:
             254          (i) a gift, subscription, donation, loan, advance, or deposit of money or anything of
             255      value given to the filing entity;
             256          (ii) an express, legally enforceable contract, promise, or agreement to make a gift,
             257      subscription, donation, unpaid or partially unpaid loan, advance, or deposit of money or
             258      anything of value to the filing entity;
             259          (iii) any transfer of funds from another reporting entity or a corporation to the filing
             260      entity;
             261          (iv) compensation paid by any person or reporting entity other than the filing entity for
             262      personal services provided without charge to the filing entity;
             263          (v) remuneration from any organization or its directly affiliated organization that has a
             264      registered lobbyist to compensate a legislator for a loss of salary or income while the
             265      Legislature is in session;
             266          (vi) salaries or other remuneration paid to a legislator by any agency or subdivision of
             267      the state, including school districts, for the period the Legislature is in session; and
             268          (vii) goods or services provided to or for the benefit of the filing entity at less than fair
             269      market value.
             270          (b) "Contribution" does not include:
             271          (i) services provided without compensation by individuals volunteering a portion or all
             272      of their time on behalf of the filing entity; or
             273          (ii) money lent to the filing entity by a financial institution in the ordinary course of
             274      business.
             275          (7) (a) "Corporation" means a domestic or foreign, profit or nonprofit, business


             276      organization that is registered as a corporation or is authorized to do business in a state and
             277      makes any expenditure from corporate funds for:
             278          (i) political purposes; or
             279          (ii) the purpose of influencing the approval or the defeat of any ballot proposition.
             280          (b) "Corporation" does not mean:
             281          (i) a business organization's political action committee or political issues committee; or
             282          (ii) a business entity organized as a partnership or a sole proprietorship.
             283          (8) "Detailed listing" means:
             284          (a) for each contribution or public service assistance:
             285          (i) the name and address of the individual or source making the contribution or public
             286      service assistance;
             287          (ii) the amount or value of the contribution or public service assistance; and
             288          (iii) the date the contribution or public service assistance was made; and
             289          (b) for each expenditure:
             290          (i) the amount of the expenditure;
             291          (ii) the person or entity to whom it was disbursed;
             292          (iii) the specific purpose, item, or service acquired by the expenditure; and
             293          (iv) the date the expenditure was made.
             294          (9) "Election" means each:
             295          (a) regular general election;
             296          (b) regular primary election; and
             297          (c) special election at which candidates are eliminated and selected.
             298          (10) (a) "Expenditure" means:
             299          (i) any disbursement from contributions, receipts, or from the separate bank account
             300      required by this chapter;
             301          (ii) a purchase, payment, donation, distribution, loan, advance, deposit, gift of money,
             302      or anything of value made for political purposes;
             303          (iii) an express, legally enforceable contract, promise, or agreement to make any
             304      purchase, payment, donation, distribution, loan, advance, deposit, gift of money, or anything of
             305      value for political purposes;
             306          (iv) compensation paid by a corporation or filing entity for personal services rendered


             307      by a person without charge to a reporting entity;
             308          (v) a transfer of funds between the filing entity and a candidate's personal campaign
             309      committee; or
             310          (vi) goods or services provided by the filing entity to or for the benefit of another
             311      reporting entity for political purposes at less than fair market value.
             312          (b) "Expenditure" does not include:
             313          (i) services provided without compensation by individuals volunteering a portion or all
             314      of their time on behalf of a reporting entity;
             315          (ii) money lent to a reporting entity by a financial institution in the ordinary course of
             316      business; or
             317          (iii) anything listed in Subsection (10)(a) that is given by a corporation or reporting
             318      entity to candidates for office or officeholders in states other than Utah.
             319          (11) "Filing entity" means the reporting entity that is filing a report required by this
             320      chapter.
             321          (12) "Financial statement" includes any summary report, interim report, or other
             322      statement disclosing contributions, expenditures, receipts, donations, or disbursements that is
             323      required by this chapter.
             324          (13) "Governing board" means the individual or group of individuals that determine the
             325      candidates and committees that will receive expenditures from a political action committee.
             326          (14) "Incorporation" means the process established by Title 10, Chapter 2, Part 1,
             327      Incorporation, by which a geographical area becomes legally recognized as a city or town.
             328          (15) "Incorporation election" means the election authorized by Section 10-2-111 .
             329          (16) "Incorporation petition" means a petition authorized by Section 10-2-109 .
             330          (17) "Individual" means a natural person.
             331          (18) "Interim report" means a report identifying the contributions received and
             332      expenditures made since the last report.
             333          (19) "Legislative office" means the office of state senator, state representative, speaker
             334      of the House of Representatives, president of the Senate, and the leader, whip, and assistant
             335      whip of any party caucus in either house of the Legislature.
             336          (20) "Legislative office candidate" means a person who:
             337          (a) files a declaration of candidacy for the office of state senator or state representative;


             338          (b) declares himself to be a candidate for, or actively campaigns for, the position of
             339      speaker of the House of Representatives, president of the Senate, or the leader, whip, and
             340      assistant whip of any party caucus in either house of the Legislature; and
             341          (c) receives contributions, makes expenditures, or gives consent for any other person to
             342      receive contributions or make expenditures to bring about the person's nomination or election
             343      to a legislative office.
             344          (21) "Newly registered political party" means an organization of voters that has
             345      complied with the petition and organizing procedures of this chapter to become a registered
             346      political party.
             347          (22) "Officeholder" means a person who holds a public office.
             348          (23) "Party committee" means any committee organized by or authorized by the
             349      governing board of a registered political party.
             350          (24) "Person" means both natural and legal persons, including individuals, business
             351      organizations, personal campaign committees, party committees, political action committees,
             352      political issues committees, labor unions, and labor organizations.
             353          (25) "Personal campaign committee" means the committee appointed by a candidate to
             354      act for the candidate as provided in this chapter.
             355          (26) (a) "Political action committee" means an entity, or any group of individuals or
             356      entities within or outside this state, that solicits or receives contributions from any other person,
             357      group, or entity or makes expenditures for political purposes. A group or entity may not divide
             358      or separate into units, sections, or smaller groups for the purpose of avoiding the financial
             359      reporting requirements of this chapter, and substance shall prevail over form in determining the
             360      scope or size of a political action committee.
             361          (b) "Political action committee" includes groups affiliated with a registered political
             362      party but not authorized or organized by the governing board of the registered political party
             363      that receive contributions or makes expenditures for political purposes.
             364          (c) "Political action committee" does not mean:
             365          (i) a party committee;
             366          (ii) any entity that provides goods or services to a candidate or committee in the regular
             367      course of its business at the same price that would be provided to the general public;
             368          (iii) an individual;


             369          (iv) individuals who are related and who make contributions from a joint checking
             370      account;
             371          (v) a corporation; or
             372          (vi) a personal campaign committee.
             373          (27) "Political convention" means a county or state political convention held by a
             374      registered political party to select candidates.
             375          (28) (a) "Political issues committee" means an entity, or any group of individuals or
             376      entities within or outside this state, that solicits or receives donations from any other person,
             377      group, or entity or makes disbursements to influence, or to intend to influence, directly or
             378      indirectly, any person to:
             379          (i) assist in placing a [statewide] ballot proposition on the ballot, assist in keeping a
             380      [statewide] ballot proposition off the ballot, or refrain from voting or vote for or vote against
             381      any [statewide] ballot proposition; or
             382          (ii) sign or refuse to sign an incorporation petition or refrain from voting, vote for, or
             383      vote against any proposed incorporation in an incorporation election.
             384          (b) "Political issues committee" does not mean:
             385          (i) a registered political party or a party committee;
             386          (ii) any entity that provides goods or services to an individual or committee in the
             387      regular course of its business at the same price that would be provided to the general public;
             388          (iii) an individual;
             389          (iv) individuals who are related and who make contributions from a joint checking
             390      account; or
             391          (v) a corporation, except a corporation whose apparent purpose is to act as a political
             392      issues committee.
             393