H.B. 268

1

LEGISLATOR REPORTING OF GIFTS AND
2 OTHER ITEMS
3 2009 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Mark A. Wheatley
6 Senate Sponsor: ____________
7
8 LONG TITLE
9 General Description:
10 This bill requires a legislator to report the receipt of certain gifts, meals, and
11 admissions.
12 Highlighted Provisions:
13 This bill:
14 . defines "gift";
15 . requires legislators to quarterly report the receipt of:
16 . gifts received from someone other than a relative;
17 . food and beverage for which the legislator pays less than fair market value; and
18 . certain admissions for which the legislator pays less than fair market value;
19 . applies administrative penalties to a legislator who violates gift reporting
20 provisions; and
21 . makes technical changes.
22 Monies Appropriated in this Bill:
23 None
24 Other Special Clauses:
25 None
26 Utah Code Sections Affected:
27 AMENDS:

28 36-11-102, as last amended by Laws of Utah 2008, Chapter 382
29 36-11-304, as last amended by Laws of Utah 2007, Chapter 233
30 36-11-401, as last amended by Laws of Utah 2000, Chapter 338
31 ENACTS:
32 36-11-203, Utah Code Annotated 1953
33
34 Be it enacted by the Legislature of the state of Utah:
35 Section 1. Section 36-11-102 is amended to read:
36 36-11-102. Definitions.
37 As used in this chapter:
38 (1) "Aggregate daily expenditures" means:
39 (a) for a single lobbyist, principal, or government officer, the total of all expenditures
40 made within a calendar day by the lobbyist, principal, or government officer for the benefit of
41 an individual public official;
42 (b) when an expenditure is made by a member of a lobbyist group, the total of all
43 expenditures made within a calendar day by every member of the lobbyist group for the benefit
44 of an individual public official; or
45 (c) for a multiclient lobbyist, the total of all expenditures made by the multiclient
46 lobbyist within a calendar day for the benefit of an individual public official, regardless of
47 whether expenditures were attributed to different clients.
48 (2) "Executive action" means:
49 (a) nominations and appointments by the governor;
50 (b) the proposal, drafting, amendment, enactment, or defeat by a state agency of any
51 rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act; and
52 (c) agency ratemaking proceedings.
53 (3) (a) "Expenditure" means any of the items listed in this Subsection (3)(a) when
54 given to or for the benefit of a public official:
55 (i) a purchase, payment, distribution, loan, gift, advance, deposit, subscription,
56 forbearance, services, or goods, unless consideration of equal or greater value is received; and
57 (ii) a contract, promise, or agreement, whether or not legally enforceable, to provide
58 any of the items listed in Subsection (3)(a)(i).

59 (b) "Expenditure" does not mean:
60 (i) a commercially reasonable loan made in the ordinary course of business;
61 (ii) a campaign contribution reported in accordance with Title 20A, Chapter 11,
62 Campaign and Financial Reporting Requirements;
63 (iii) printed informational material that is related to the performance of the recipient's
64 official duties;
65 (iv) a devise or inheritance;
66 (v) any item listed in Subsection (3)(a) if given by a relative;
67 (vi) a modest item of food or refreshment such as a beverage or pastry offered other
68 than as part of a meal, the value of which does not exceed $5;
69 (vii) a greeting card or other item of little intrinsic value that is intended solely for
70 presentation; or
71 (viii) plaques, commendations, or awards presented in public and having a cash value
72 not exceeding $50.
73 (4) (a) "Gift" means a transfer of real property or tangible personal property for less
74 than fair and adequate consideration.
75 (b) "Gift" does not include a plaque, commendation, or award that is presented in
76 public.
77 [(4)] (5) (a) "Government officer" means:
78 (i) an individual elected to a position in state or local government, when acting within
79 the government officer's official capacity; or
80 (ii) an individual appointed to or employed in a full-time position by state or local
81 government, when acting within the scope of the individual's employment.
82 (b) "Government officer" does not mean a member of the legislative branch of state
83 government.
84 [(5)] (6) "Immediate family" means:
85 (a) a spouse;
86 (b) a child residing in the household; or
87 (c) an individual claimed as a dependent for tax purposes.
88 [(6)] (7) "Interested person" means an individual defined in Subsections [(9)]
89 (10)(b)(iii) and (viii).

90 [(7)] (8) "Legislative action" means:
91 (a) bills, resolutions, amendments, nominations, and other matters pending or proposed
92 in either house of the Legislature or its committees or requested by a legislator; and
93 (b) the action of the governor in approving or vetoing legislation.
94 [(8)] (9) "Lobbying" means communicating with a public official for the purpose of
95 influencing the passage, defeat, amendment, or postponement of legislative or executive action.
96 [(9)] (10) (a) "Lobbyist" means:
97 (i) an individual who is employed by a principal; or
98 (ii) an individual who contracts for economic consideration, other than reimbursement
99 for reasonable travel expenses, with a principal to lobby a public official.
100 (b) "Lobbyist" does not include:
101 (i) a government officer;
102 (ii) a member or employee of the legislative branch of government;
103 (iii) any person appearing at, or providing written comments to, a hearing conducted in
104 accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act or Title 63G,
105 Chapter 4, Administrative Procedures Act;
106 (iv) any person participating on or appearing before an advisory or study task force,
107 commission, board, or committee, constituted by the Legislature or any agency or department
108 of state government, except legislative standing, appropriation, or interim committees;
109 (v) a representative of a political party;
110 (vi) an individual representing a bona fide church solely for the purpose of protecting
111 the right to practice the religious doctrines of the church unless the individual or church makes
112 an expenditure that confers a benefit on a public official;
113 (vii) a newspaper, television station or network, radio station or network, periodical of
114 general circulation, or book publisher for the purpose of publishing news items, editorials,
115 other comments, or paid advertisements that directly or indirectly urge legislative or executive
116 action; or
117 (viii) an individual who appears on the individual's own behalf before a committee of
118 the Legislature or an executive branch agency solely for the purpose of testifying in support of
119 or in opposition to legislative or executive action.
120 [(10)] (11) "Lobbyist group" means two or more lobbyists, principals, government

121 officers, and any combination of lobbyists, principals, and officers who each contribute a
122 portion of an expenditure made to benefit a public official or member of the public official's
123 immediate family.
124 [(11)] (12) "Multiclient lobbyist" means a single lobbyist, principal, or government
125 officer who represents two or more clients and divides the aggregate daily expenditure made to
126 benefit a public official or member of the public official's immediate family between two or
127 more of those clients.
128 [(12)] (13) "Person" includes individuals, bodies politic and corporate, partnerships,
129 associations, and companies.
130 [(13)] (14) "Principal" means a person that employs an individual to perform lobbying
131 either as an employee or as an independent contractor.
132 [(14)] (15) "Public official" means:
133 (a) (i) a member of the Legislature;
134 (ii) an individual elected to a position in the executive branch; or
135 (iii) an individual appointed to or employed in the executive or legislative branch if
136 that individual:
137 (A) occupies a policymaking position or makes purchasing or contracting decisions;
138 (B) drafts legislation or makes rules;
139 (C) determines rates or fees; or
140 (D) makes adjudicative decisions; or
141 (b) an immediate family member of a person described in Subsection [(14)] (15)(a).
142 [(15)] (16) "Public official type" means a notation to identify whether a public official
143 is:
144 (a) (i) a member of the Legislature;
145 (ii) an individual elected to a position in the executive branch;
146 (iii) an individual appointed to or employed in a position in the legislative branch who
147 meets the definition of public official under Subsection [(14)] (15)(a)(iii); or
148 (iv) an individual appointed to or employed in a position in the executive branch who
149 meets the definition of public official under Subsection [(14)] (15)(a)(iii); or
150 (b) an immediate family member of a person described in Subsection [(14)] (15)(b).
151 [(16)] (17) "Quarterly reporting period" means the three-month period covered by each

152 financial report required under Subsection 36-11-201 (2)(a).
153 [(17)] (18) "Related person" means any person, or agent or employee of a person, who
154 knowingly and intentionally assists a lobbyist, principal, or government officer in lobbying.
155 [(18)] (19) "Relative" means a spouse, child, parent, grandparent, grandchild, brother,
156 sister, parent-in-law, brother-in-law, sister-in-law, nephew, niece, aunt, uncle, first cousin, or
157 spouse of any of these individuals.
158 [(19)] (20) (a) "Tangible personal property" means an item having a description that is
159 consistent with the meaning of tangible personal property found in the Utah Constitution,
160 Article XIII.
161 (b) "Tangible personal property" does not include the admission price or cost for
162 events, meals, recreation, outings, or functions.
163 Section 2. Section 36-11-203 is enacted to read:
164 36-11-203. Legislator reporting of certain gifts, meals, and admissions.
165 (1) A legislator shall file a quarterly report with the lieutenant governor on or before
166 the dates listed in Subsection (2).
167 (2) (a) A quarterly report required by this section is due:
168 (i) April 10, for the period of January 1 through March 31;
169 (ii) July 10, for the period of April 1 through June 31;
170 (iii) October 10, for the period of July 1 through September 30; and
171 (iv) January 10, for the period of October 1 through December 31.
172 (b) If the due date for a quarterly report falls on a Saturday, Sunday, or legal holiday,
173 the report is due the following business day.
174 (3) (a) A quarterly report required by this section shall contain:
175 (i) a listing of any gift the legislator received during the reporting period, including the
176 name of the person giving the gift and an estimate of the value of the gift;
177 (ii) a listing of any food and beverage received during the reporting period for which
178 the legislator did not pay fair market value, including the name of the person providing the
179 food and beverage and an estimate of the value of the food and beverage; and
180 (iii) a listing of any admission to a sporting, recreational, or artistic event, whether as a
181 spectator or participant, for which the legislator did not pay fair market value, including the
182 name of the person providing the admission and an estimate of the value of the admission.

183 (b) If a legislator receives no gifts, food and beverage, or admissions required to be
184 reported under Subsection (3)(a), the legislator shall file a quarterly report indicating that fact.
185 (4) Subsection (3) does not apply to a gift, food and beverage, or admission provided
186 by a relative.
187 Section 3. Section 36-11-304 is amended to read:
188 36-11-304. Prohibition on certain gifts of real or tangible personal property.
189 [(1) As used in this section:]
190 [(a) "Gift" means a transfer of real property or tangible personal property for less than
191 fair and adequate consideration.]
192 [(b) "Gift" does not include a plaque, commendation, or award that is presented in
193 public.]
194 [(2)] (1) Except as provided in Subsection [(3)] (2), a lobbyist, principal, or
195 government officer may not offer to or give any public official any gift or loan if the public
196 official has been, or is now, or in the near future may be involved in any governmental action
197 directly affecting the donor or lender.
198 [(3)] (2) Subsection [(2)] (1) does not apply to the following:
199 (a) an occasional nonpecuniary gift, having a value of not in excess of $50 per
200 individual;
201 (b) an award publicly presented in recognition of public services;
202 (c) any bona fide loan made in the ordinary course of business; or
203 (d) gifts to a relative.
204 Section 4. Section 36-11-401 is amended to read:
205 36-11-401. Penalties.
206 (1) Any person who willfully and knowingly violates Section 36-11-103 , 36-11-201 ,
207 36-11-203 , 36-11-301 , 36-11-302 , 36-11-303 , 36-11-304 , 36-11-305 , or 36-11-403 , is subject
208 to the following penalties:
209 (a) an administrative penalty of up to $1,000 for each violation; and
210 (b) for each subsequent violation of that same section within 24 months, either:
211 (i) an administrative penalty of up to $5,000; or
212 (ii) suspension of the violator's lobbying license for up to one year, if the person is a
213 lobbyist.

214 (2) Any person who willfully and knowingly fails to file a financial report required by
215 this chapter, omits material information from a license application form or financial report, or
216 files false information on a license application form or financial report, is subject to the
217 following penalties:
218 (a) an administrative penalty of up to $1,000 for each violation; or
219 (b) suspension of the violator's lobbying license for up to one year, if the person is a
220 lobbyist.
221 (3) Any person who willfully and knowingly fails to file a financial report required by
222 this chapter on the date that it is due shall, in addition to the penalties, if any, imposed under
223 Subsection (1) or (2), pay a penalty of up to $50 per day for each day that the report is late.
224 (4) (a) When a lobbyist is convicted of violating Section 76-8-103 , 76-8-107 , 76-8-108 ,
225 or 76-8-303 , the lieutenant governor shall suspend the lobbyist's license for up to five years
226 from the date of the conviction.
227 (b) When a lobbyist is convicted of violating Section 76-8-104 or 76-8-304 , the
228 lieutenant governor shall suspend a lobbyist's license for up to one year from the date of
229 conviction.
230 (5) (a) Any person who willfully and knowingly violates Section 36-11-301 ,
231 36-11-302 , or 36-11-303 is guilty of a class B misdemeanor.
232 (b) The lieutenant governor shall suspend the lobbyist license of any person convicted
233 under any of these sections for up to one year.
234 (c) The suspension shall be in addition to any administrative penalties imposed by the
235 lieutenant governor under this section.
236 (d) Any person with evidence of a possible violation of this chapter may submit that
237 evidence to the lieutenant governor for investigation and resolution.
238 (6) Nothing in this chapter creates a third-party cause of action or appeal rights.




Legislative Review Note
as of 1-26-09 11:27 AM

Office of Legislative Research and General Counsel