Second Substitute H.B. 29

Senator Margaret Dayton proposes the following substitute bill:

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

26 receive contributions or make expenditures to influence the election of a candidate for county
27 or municipal office;
28 . clarifies definitions;
29 . requires the lieutenant governor to make campaign finance disclosure statements
30 available for public copying and inspection no later than the working day following
31 the date of filing;
32 . provides a statutory requirement for the lieutenant governor to post campaign
33 finance disclosure statements on the Internet;
34 . requires the lieutenant governor to post each campaign finance statement that is
35 provided by a municipality or a county on its website; and
36 . makes technical changes.
37 Monies Appropriated in this Bill:
38 None
39 Other Special Clauses:
40 None
41 Utah Code Sections Affected:
42 AMENDS:
43 10-3-208, as last amended by Laws of Utah 2007, Chapter 256
44 17-16-6.5, as last amended by Laws of Utah 2003, Chapter 215
45 20A-11-101, as last amended by Laws of Utah 2004, Chapter 90
46 20A-11-602, as last amended by Laws of Utah 1999, Chapters 45 and 86
47 20A-11-103, as last amended by Laws of Utah 2001, Chapter 166
48 20A-11-802, as last amended by Laws of Utah 2003, Chapters 160 and 304
49
50 Be it enacted by the Legislature of the state of Utah:
51 Section 1. Section 10-3-208 is amended to read:
52 10-3-208. Campaign finance statement in municipal election.
53 (1) As used in this section:
54 (a) "Reporting date" means:
55 (i) ten days before a municipal general election, for a campaign finance statement
56 required to be filed no later than seven days before a municipal general election; and

57 (ii) the day of filing, for a campaign finance statement required to be filed no later than
58 30 days after a municipal primary or general election.
59 (b) "Reporting limit" means:
60 (i) $50; or
61 (ii) an amount lower than $50 that is specified in an ordinance of the municipality.
62 (2) (a) (i) Each candidate for municipal office who is not eliminated at a municipal
63 primary election shall file with the municipal clerk or recorder a campaign finance statement:
64 (A) no later than seven days before the date of the municipal general election; and
65 (B) no later than 30 days after the date of the municipal general election.
66 (ii) Each candidate for municipal office who is eliminated at a municipal primary
67 election shall file with the municipal clerk or recorder a campaign finance statement no later
68 than 30 days after the date of the municipal primary election.
69 (b) Each campaign finance statement under Subsection (2)(a) shall:
70 (i) except as provided in Subsection (2)(b)(ii):
71 (A) report all of the candidate's itemized and total:
72 (I) campaign contributions, including in-kind and other nonmonetary contributions,
73 received before the close of the reporting date; and
74 (II) campaign expenditures made through the close of the reporting date; and
75 (B) identify:
76 (I) for each contribution that exceeds the reporting limit, the amount of the contribution
77 and the name of the donor;
78 (II) the aggregate total of all contributions that individually do not exceed the reporting
79 limit; and
80 (III) for each campaign expenditure, the amount of the expenditure and the name of the
81 recipient of the expenditure; or
82 (ii) report the total amount of all campaign contributions and expenditures if the
83 candidate receives $500 or less in campaign contributions and spends $500 or less on the
84 candidate's campaign.
85 (3) (a) A municipality may, by ordinance:
86 (i) provide a reporting limit lower than $50;
87 (ii) require greater disclosure of campaign contributions and expenditures than is

88 required in this section; and
89 (iii) impose additional penalties on candidates who fail to comply with the applicable
90 requirements beyond those imposed by this section.
91 (b) A candidate for municipal office is subject to the provisions of this section and not
92 the provisions of an ordinance adopted by the municipality under Subsection (3)(a) if:
93 (i) the municipal ordinance establishes requirements or penalties that differ from those
94 established in this section; and
95 (ii) the municipal clerk or recorder fails to notify the candidate of the provisions of the
96 ordinance as required in Subsection (4).
97 (4) Each municipal clerk or recorder shall, at the time the candidate for municipal
98 office files a declaration of candidacy, and again 14 days before each municipal general
99 election, notify the candidate in writing of:
100 (a) the provisions of statute or municipal ordinance governing the disclosure of
101 campaign contributions and expenditures;
102 (b) the dates when the candidate's campaign finance statement is required to be filed;
103 and
104 (c) the penalties that apply for failure to file a timely campaign finance statement,
105 including the statutory provision that requires removal of the candidate's name from the ballot
106 for failure to file the required campaign finance statement when required.
107 (5) Notwithstanding any provision of Title 63, Chapter 2, Government Records Access
108 and Management Act, the municipal clerk or recorder shall:
109 (a) make each campaign finance statement filed by a candidate available for public
110 inspection and copying no later than one business day after the statement is filed[.]; and
111 (b) make the campaign finance statement filed by a candidate available for public
112 inspection by:
113 (i) (A) posting an electronic copy or the contents of the statement on the municipality's
114 website no later than seven business days after the statement is filed; and
115 (B) verifying that the address of the municipality's website has been provided to the
116 lieutenant governor in order to meet the requirements of Subsection 20A-11-103 (5); or
117 (ii) submitting a copy of the statement to the lieutenant governor for posting on the
118 website established by the lieutenant governor under Section 20A-11-103 no later than two

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

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

181 statement filed seven days before the election, and the name of the donor;
182 (ii) an aggregate total of all contributions of $50 or less received by the candidate after
183 the cutoff date for the statement filed seven days before the election; and
184 (iii) a list of all expenditures for political purposes made by the candidate after the
185 cutoff date for the statement filed seven days before the election, and the recipient of each
186 expenditure.
187 (5) Candidates for elective office in any county who are eliminated at a primary
188 election shall file a signed campaign financial statement containing the information required by
189 this section not later than 30 days after the primary election.
190 (6) Any person who fails to comply with this section is guilty of an infraction.
191 (7) Counties may, by ordinance, enact requirements that:
192 (a) require greater disclosure of campaign contributions and expenditures; and
193 (b) impose additional penalties.
194 (8) (a) If a candidate fails to file an interim report due before the election, the county
195 clerk shall, after making a reasonable attempt to discover if the report was timely mailed,
196 inform the appropriate election officials who:
197 (i) shall, if practicable, remove the name of the candidate by blacking out the
198 candidate's name before the ballots are delivered to voters; or
199 (ii) shall, if removing the candidate's name from the ballot is not practicable, inform
200 the voters by any practicable method that the candidate has been disqualified and that votes
201 cast for the candidate will not be counted; and
202 (iii) may not count any votes for that candidate.
203 (b) Notwithstanding Subsection (8)(a), a candidate is not disqualified if:
204 (i) the candidate files the reports required by this section;
205 (ii) those reports are completed, detailing accurately and completely the information
206 required by this section except for inadvertent omissions or insignificant errors or inaccuracies;
207 and
208 (iii) those omissions, errors, or inaccuracies are corrected in an amended report or in
209 the next scheduled report.
210 (c) A report is considered filed if:
211 (i) it is received in the county clerk's office no later than 5 p.m. on the date that it is

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

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

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

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

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

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