First Substitute S.B. 21

Senator Peter C. Knudson proposes the following substitute bill:

1 CAMPAIGN FINANCE DISCLOSURE
2 REVISIONS
3 2008 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Peter C. Knudson
6 House Sponsor: Glenn A. Donnelson
7
8 LONG TITLE
9 General Description:
10 This bill modifies provisions related to campaign finance disclosure.
11 Highlighted Provisions:
12 This bill:
13 . requires a candidate to receive notice that they must comply with financial
14 disclosure laws at the time the candidate files for office;
15 . requires candidates for state constitutional office and the Legislature and applicable
16 local candidates to receive notice of the obligation to file a pre-convention report
17 when the candidate files for office;
18 . consolidates definitions for clarity and consistency;
19 . clarifies the election officer's obligations to provide notice that certain campaign
20 financial statements are due;
21 . provides that the election officer is not required to send advance notice of the
22 requirement to file a report due before a convention or a report due in relation to a
23 public hearing conducted on a proposed initiative;
24 . specifies what information the notices sent by the election officer must contain;
25 . requires that election-related financial reports that were previously due on

26 September 15, are due by August 31;
27 . requires that reports due on August 31 be filed by every candidate, rather than only
28 by those that are opposed;
29 . requires that year end summary reports that were previously due on January 5, are
30 due by January 10;
31 . removes outdated filing guidelines;
32 . requires that reports due before a political convention or primary election be filed by
33 all candidates, rather than only by those candidates that are opposed in the political
34 convention or primary election;
35 . requires that beginning with the 2008 regular general election, a former candidate
36 for state office, legislative office, or school board office must file an annual
37 summary report by January 10 of each year if the former candidate has not filed a
38 statement of dissolution of the former candidate's campaign account;
39 . requires that political action committees be required to file a statement of
40 organization after making expenditures of $50 or more, rather than $750, in order to
41 be consistent with the threshold for political issues committees;
42 . removes requirements for corporations to file reports on March 1 and June 1 in
43 relation to donations to political issues committees;
44 . removes requirements for political issues committees to file reports on March 1 and
45 June 1;
46 . provides that all filers have five days after the reporting period ends to prepare a
47 financial report;
48 . adds a requirement for political issues committees to file a financial report at the
49 time a verified referendum packet is submitted;
50 . requires a state school board office candidate to file a May 15 financial report; and
51 . makes technical changes.
52 Monies Appropriated in this Bill:
53 None
54 Other Special Clauses:
55 This bill provides an immediate effective date.
56 This bill coordinates with S.B. 12, Election Law Modifications by providing

57 substantive amendments.
58 Utah Code Sections Affected:
59 AMENDS:
60 20A-9-201, as last amended by Laws of Utah 2007, Chapters 83 and 97
61 20A-11-101, as last amended by Laws of Utah 2004, Chapter 90
62 20A-11-103, as last amended by Laws of Utah 2001, Chapter 166
63 20A-11-203, as last amended by Laws of Utah 1997, Chapter 355
64 20A-11-204, as last amended by Laws of Utah 1999, Chapter 93
65 20A-11-206, as last amended by Laws of Utah 1999, Chapter 93
66 20A-11-302, as last amended by Laws of Utah 1997, Chapter 355
67 20A-11-303, as last amended by Laws of Utah 1999, Chapter 93
68 20A-11-305, as last amended by Laws of Utah 1999, Chapter 93
69 20A-11-401, as last amended by Laws of Utah 2007, Chapter 233
70 20A-11-506, as last amended by Laws of Utah 1997, Chapter 355
71 20A-11-507, as last amended by Laws of Utah 1997, Chapter 355
72 20A-11-508, as last amended by Laws of Utah 2006, Chapter 16
73 20A-11-601, as last amended by Laws of Utah 2006, Chapter 226
74 20A-11-602, as last amended by Laws of Utah 1999, Chapters 45 and 86
75 20A-11-603, as enacted by Laws of Utah 1997, Chapter 355
76 20A-11-701, as last amended by Laws of Utah 1998, Chapter 40
77 20A-11-702, as last amended by Laws of Utah 2003, Chapters 160 and 304
78 20A-11-802, as last amended by Laws of Utah 2003, Chapters 160 and 304
79 20A-11-803, as enacted by Laws of Utah 1997, Chapter 355
80 20A-11-1302, as enacted by Laws of Utah 1997, Chapter 355
81 20A-11-1303, as enacted by Laws of Utah 1997, Chapter 355
82 20A-11-1305, as last amended by Laws of Utah 2003, Chapter 215
83 20A-12-304, as enacted by Laws of Utah 2001, Chapter 166
84
85 Be it enacted by the Legislature of the state of Utah:
86 Section 1. Section 20A-9-201 is amended to read:
87 20A-9-201. Declarations of candidacy -- Candidacy for more than one office or of

88 more than one political party prohibited with exceptions -- General filing and form
89 requirements.
90 (1) Before filing a declaration of candidacy for election to any office, a person shall:
91 (a) be a United States citizen; and
92 (b) meet the legal requirements of that office.
93 (2) (a) Except as provided in Subsection (2)(b), a person may not:
94 (i) file a declaration of candidacy for, or be a candidate for, more than one office in
95 Utah during any election year; or
96 (ii) appear on the ballot as the candidate of more than one political party.
97 (b) A person may file a declaration of candidacy for, or be a candidate for, President or
98 Vice President of the United States and another office, if the person resigns the person's
99 candidacy for the other office after the person is officially nominated for President or Vice
100 President of the United States.
101 (3) If the final date established for filing a declaration of candidacy is a Saturday or
102 Sunday, the filing time shall be extended until 5 p.m. on the following business day.
103 (4) (a) (i) Except for presidential candidates, before the filing officer may accept any
104 declaration of candidacy, the filing officer shall:
105 (A) read to the prospective candidate the constitutional and statutory qualification
106 requirements for the office that the candidate is seeking; and
107 (B) require the candidate to state whether or not the candidate meets those
108 requirements.
109 (ii) Before accepting a declaration of candidacy for the office of county attorney, the
110 county clerk shall ensure that the person filing that declaration of candidacy is:
111 (A) a United States citizen;
112 (B) an attorney licensed to practice law in Utah who is an active member in good
113 standing of the Utah State Bar;
114 (C) a registered voter in the county in which he is seeking office; and
115 (D) a current resident of the county in which he is seeking office and either has been a
116 resident of that county for at least one year or was appointed and is currently serving as county
117 attorney and became a resident of the county within 30 days after appointment to the office.
118 (iii) Before accepting a declaration of candidacy for the office of district attorney, the

119 county clerk shall ensure that, as of the date of the election, the person filing that declaration of
120 candidacy is:
121 (A) a United States citizen;
122 (B) an attorney licensed to practice law in Utah who is an active member in good
123 standing of the Utah State Bar;
124 (C) a registered voter in the prosecution district in which he is seeking office; and
125 (D) a current resident of the prosecution district in which he is seeking office and either
126 will have been a resident of that prosecution district for at least one year as of the date of the
127 election or was appointed and is currently serving as district attorney and became a resident of
128 the prosecution district within 30 days after receiving appointment to the office.
129 (iv) Before accepting a declaration of candidacy for the office of county sheriff, the
130 county clerk shall ensure that the person filing the declaration of candidacy:
131 (A) as of the date of filing:
132 (I) is a United States citizen;
133 (II) is a registered voter in the county in which the person seeks office;
134 (III) (Aa) has successfully met the standards and training requirements established for
135 law enforcement officers under Title 53, Chapter 6, Part 2, Peace Officer Training and
136 Certification Act; or
137 (Bb) has passed a certification examination as provided in Section 53-6-206 ; and
138 (IV) is qualified to be certified as a law enforcement officer, as defined in Section
139 53-13-103 ; and
140 (B) as of the date of the election, shall have been a resident of the county in which the
141 person seeks office for at least one year.
142 (b) If the prospective candidate states that he does not meet the qualification
143 requirements for the office, the filing officer may not accept the prospective candidate's
144 declaration of candidacy.
145 (c) If the candidate states that he meets the requirements of candidacy, the filing officer
146 shall:
147 (i) inform the candidate that:
148 (A) the candidate's name will appear on the ballot as it is written on the declaration of
149 candidacy;

150 (B) the candidate may be required to comply with state or local campaign finance
151 disclosure laws; and
152 (C) the candidate is required to file a financial statement before the candidate's political
153 convention under:
154 (I) Section 20A-11-204 for a candidate for constitutional office;
155 (II) Section 20A-11-303 for a candidate for the Legislature; or
156 (III) local campaign finance disclosure laws, if applicable;
157 (ii) provide the candidate with a copy of Section 20A-7-801 regarding the Statewide
158 Electronic Voter Information Website Program and inform the candidate of the submission
159 deadline under Subsection 20A-7-801 (4)(a);
160 (iii) provide the candidate with a copy of the pledge of fair campaign practices
161 described under Section 20A-9-206 and inform the candidate that:
162 (A) signing the pledge is voluntary; and
163 (B) signed pledges shall be filed with the filing officer;
164 (iv) accept the candidate's declaration of candidacy; and
165 (v) if the candidate has filed for a partisan office, provide a certified copy of the
166 declaration of candidacy to the chair of the county or state political party of which the
167 candidate is a member.
168 (d) If the candidate elects to sign the pledge of fair campaign practices, the filing
169 officer shall:
170 (i) accept the candidate's pledge; and
171 (ii) if the candidate has filed for a partisan office, provide a certified copy of the
172 candidate's pledge to the chair of the county or state political party of which the candidate is a
173 member.
174 (5) Except for presidential candidates, the form of the declaration of candidacy shall be
175 substantially as follows:
176 "State of Utah, County of ____
177 I, ______________, declare my intention of becoming a candidate for the office of
178 ____ as a candidate for the ____ party. I do solemnly swear that: I can qualify to hold that
179 office, both legally and constitutionally, if selected; I reside at _____________ in the City or
180 Town of ____, Utah, Zip Code ____ Phone No. ____; I will not knowingly violate any law

181 governing campaigns and elections; and I will qualify for the office if elected to it. The
182 mailing address that I designate for receiving official election notices is
183 ___________________________.
184 ____________________________________________________________________
185 Subscribed and sworn before me this __________(month\day\year).
186

Notary Public (or other officer qualified to administer oath.)"

187 (6) (a) Except for presidential candidates, the fee for filing a declaration of candidacy
188 is:
189 (i) $25 for candidates for the local school district board; and
190 (ii) 1/8 of 1% of the total salary for the full term of office legally paid to the person
191 holding the office, but not less than $5, for all other federal, state, and county offices.
192 (b) Except for presidential candidates, the filing officer shall refund the filing fee to
193 any candidate:
194 (i) who is disqualified; or
195 (ii) who the filing officer determines has filed improperly.
196 (c) (i) The county clerk shall immediately pay to the county treasurer all fees received
197 from candidates.
198 (ii) The lieutenant governor shall:
199 (A) apportion to and pay to the county treasurers of the various counties all fees
200 received for filing of nomination certificates or acceptances; and
201 (B) ensure that each county receives that proportion of the total amount paid to the
202 lieutenant governor from the congressional district that the total vote of that county for all
203 candidates for representative in Congress bears to the total vote of all counties within the
204 congressional district for all candidates for representative in Congress.
205 (d) (i) Each person who is unable to pay the filing fee may file a declaration of
206 candidacy without payment upon a prima facie showing of impecuniosity as evidenced by an
207 affidavit of impecuniosity filed with the filing officer.
208 (ii) The filing officer shall ensure that the affidavit of impecuniosity is printed in
209 substantially the following form:
210 "Affidavit of Impecuniosity
211 Individual Name

212 ____________________________Address_____________________________
213 Phone Number _________________
214 I,__________________________(name), do solemnly [swear] [affirm] that, owing to my
215 poverty, I am unable to pay the filing fee required by law.
216 Date ______________ Signature________________________________________________
217 Affiant
218 Subscribed and sworn to before me on ___________ (month\day\year)
219

______________________

220

(signature)

221 Name and Title of Officer Authorized to Administer Oath

______________________"

222 (7) Any person who fails to file a declaration of candidacy or certificate of nomination
223 within the time provided in this chapter is ineligible for nomination to office.
224 (8) A declaration of candidacy filed under this section may not be amended or
225 modified after the final date established for filing a declaration of candidacy.
226 Section 2. Section 20A-11-101 is amended to read:
227 20A-11-101. Definitions.
228 As used in this chapter:
229 (1) "Address" means the number and street where an individual resides or where a
230 reporting entity has its principal office.
231 (2) "Ballot proposition" includes initiatives, referenda, proposed constitutional
232 amendments, and any other ballot propositions submitted to the voters that are authorized by
233 the Utah Code Annotated 1953.
234 (3) "Candidate" means any person who:
235 (a) files a declaration of candidacy for a public office; or
236 (b) receives contributions, makes expenditures, or gives consent for any other person to
237 receive contributions or make expenditures to bring about the person's nomination or election
238 to a public office.
239 (4) "Chief election officer" means:
240 (a) the lieutenant governor for state office candidates, legislative office candidates,
241 officeholders, political parties, political action committees, corporations, political issues
242 committees, and state school board candidates; and

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

274 (b) "Corporation" does not mean:
275 (i) a business organization's political action committee or political issues committee; or
276 (ii) a business entity organized as a partnership or a sole proprietorship.
277 (8) "Detailed listing" means:
278 (a) for each contribution or public service assistance:
279 (i) the name and address of the individual or source making the contribution or public
280 service assistance;
281 (ii) the amount or value of the contribution or public service assistance; and
282 (iii) the date the contribution or public service assistance was made; and
283 (b) for each expenditure:
284 (i) the amount of the expenditure;
285 (ii) the person or entity to whom it was disbursed;
286 (iii) the specific purpose, item, or service acquired by the expenditure; and
287 (iv) the date the expenditure was made.
288 (9) "Election" means each:
289 (a) regular general election;
290 (b) regular primary election; and
291 (c) special election at which candidates are eliminated and selected.
292 (10) (a) "Expenditure" means:
293 (i) any disbursement from contributions, receipts, or from the separate bank account
294 required by this chapter;
295 (ii) a purchase, payment, donation, distribution, loan, advance, deposit, gift of money,
296 or anything of value made for political purposes;
297 (iii) an express, legally enforceable contract, promise, or agreement to make any
298 purchase, payment, donation, distribution, loan, advance, deposit, gift of money, or anything of
299 value for political purposes;
300 (iv) compensation paid by a corporation or filing entity for personal services rendered
301 by a person without charge to a reporting entity;
302 (v) a transfer of funds between the filing entity and a candidate's personal campaign
303 committee; or
304 (vi) goods or services provided by the filing entity to or for the benefit of another

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

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

367 (27) "Political convention" means a county or state political convention held by a
368 registered political party to select candidates.
369 (28) (a) "Political issues committee" means an entity, or any group of individuals or
370 entities within or outside this state, that solicits or receives donations from any other person,
371 group, or entity or makes disbursements to influence, or to intend to influence, directly or
372 indirectly, any person to:
373 (i) assist in placing a statewide ballot proposition on the ballot, assist in keeping a
374 statewide ballot proposition off the ballot, or refrain from voting or vote for or vote against any
375 statewide ballot proposition; or
376 (ii) sign or refuse to sign an incorporation petition or refrain from voting, vote for, or
377 vote against any proposed incorporation in an incorporation election.
378 (b) "Political issues committee" does not mean:
379 (i) a registered political party or a party committee;
380 (ii) any entity that provides goods or services to an individual or committee in the
381 regular course of its business at the same price that would be provided to the general public;
382 (iii) an individual;
383 (iv) individuals who are related and who make contributions from a joint checking
384 account; or
385 (v) a corporation, except a corporation whose apparent purpose is to act as a political
386 issues committee.
387 (29) (a) "Political issues contribution" means any of the following:
388 (i) a gift, subscription, unpaid or partially unpaid loan, advance, or deposit of money or
389 anything of value given to a political issues committee;
390 (ii) an express, legally enforceable contract, promise, or agreement to make a political
391 issues donation to influence the approval or defeat of any ballot proposition;
392 (iii) any transfer of funds received by a political issues committee from a reporting