S.B. 162

This document includes Senate Committee Amendments incorporated into the bill on Tue, Feb 24, 2009 at 9:09 AM by rday. --> 1

USE OF CAMPAIGN FUNDS AMENDMENTS
2 2009 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: John L. Valentine
5 House Sponsor: John Dougall
6
7 LONG TITLE
8 General Description:
9 This bill prohibits the use of campaign and officeholder funds for a purpose that would
10 result in the funds' recognition as taxable income under federal tax law.
11 Highlighted Provisions:
12 This bill:
13 . prohibits the use of campaign and officeholder funds for a purpose that would result
14 in the candidate or officeholder recognizing the funds as taxable income under
15 federal tax law; and
16 . makes technical changes.
17 Monies Appropriated in this Bill:
18 None
19 Other Special Clauses:
20 None
21 Utah Code Sections Affected:
22 AMENDS:
23 20A-11-201, as last amended by Laws of Utah 1997, Chapter 355
24 20A-11-301, as last amended by Laws of Utah 1997, Chapter 355
25 20A-11-402, as last amended by Laws of Utah 1997, Chapter 355
26 20A-11-1301, as enacted by Laws of Utah 1997, Chapter 355
27

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Be it enacted by the Legislature of the state of Utah:
29 Section 1. Section 20A-11-201 is amended to read:
30 20A-11-201. State office candidate -- Separate bank account for campaign funds.
31 (1) (a) Each state office candidate or the candidate's personal campaign committee
32 shall deposit each contribution and public service assistance received in one or more separate
33 campaign accounts in a financial institution.
34 (b) The state office candidate or the candidate's personal campaign committee may use
35 the monies in those accounts only for political purposes.
36 (2) A state office candidate or the candidate's personal campaign committee may not
37 deposit or mingle any contributions received into a personal or business account.
38 (3) If a person who is no longer a state office candidate chooses not to expend the
39 monies remaining in [his] a campaign account, the person shall continue to file the year-end
40 summary report required by Section 20A-11-203 until the statement of dissolution and final
41 summary report required by Section 20A-11-205 are filed with the lieutenant governor.
42 (4) S. [ A ] (a) Except as provided in Subsection (4)(b) and Section 20A-11-402, a .S
42a person who is no longer a state office candidate may not expend or transfer the
43 monies in a campaign account in a manner that would cause the former state office candidate to
44 recognize the monies as taxable income under federal tax law.
44a S. (b) A person who is no longer a state office candidate may transfer the monies in a
44b campaign account in a manner that would cause the former state office candidate to recognize
44c the monies as taxable income under federal tax law if the transfer is made to a campaign
44d account for federal office. .S
45 Section 2. Section 20A-11-301 is amended to read:
46 20A-11-301. Legislative office candidate -- Campaign requirements.
47 (1) Each legislative office candidate shall deposit each contribution and public service
48 assistance received in one or more separate accounts in a financial institution that are dedicated
49 only to that purpose.
50 (2) A legislative office candidate may not deposit or mingle any contributions or public
51 service assistance received into a personal or business account.
52 (3) A legislative office candidate may not make any political expenditures prohibited
53 by law.
54 (4) If a person who is no longer a legislative candidate chooses not to expend the
55 monies remaining in [his] a campaign account, the person shall continue to file the year-end
56 summary report required by Section 20A-11-302 until the statement of dissolution and final

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summary report required by Section 20A-11-304 are filed with the lieutenant governor.
58 (5) S. [ A ] (a) Except as provided in Subsection (5)(b) and Section 20A-11-402, a .S person who is no longer a legislative office candidate may not expend or transfer

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the monies in a campaign account in a manner that would cause the former legislative office
60 candidate to recognize the monies as taxable income under federal tax law.
60a S. (b) A person who is no longer a legislative office candidate may transfer the monies in a
60b campaign account in a manner that would cause the former legislative office candidate to
60c recognize the monies as taxable income under federal tax law if the transfer is made to a
60d campaign account for federal office. .S
61 Section 3. Section 20A-11-402 is amended to read:
62 20A-11-402. Officeholder financial reporting requirements -- Termination of
63 duty to report.
64 (1) An officeholder is active and subject to reporting requirements until the
65 officeholder has filed a statement of dissolution with the lieutenant governor stating that:
66 (a) the officeholder is no longer receiving contributions or public service assistance and
67 is no longer making expenditures;
68 (b) the ending balance on the last summary report filed is zero and the balance in the
69 separate bank account required by Sections 20A-11-201 and 20A-11-301 is zero; and
70 (c) a final summary report in the form required by Section 20A-11-401 showing a zero
71 balance is attached to the statement of dissolution.
72 (2) A statement of dissolution and a final summary report may be filed at any time.
73 (3) Each officeholder shall continue to file the year-end summary report required by
74 Section 20A-11-401 until the statement of dissolution and final summary report required by
75 this section are filed with the lieutenant governor.
76 (4) S. [ A ] (a) Except as provided in Subsection (4)(b), a .S person who is no longer an
76a officeholder may not expend or transfer the monies in
77 a campaign account in a manner that would cause the former officeholder to recognize the
78 monies as taxable income under federal tax law.
78a S. (b) A person who is no longer an officeholder may transfer the monies in a campaign
78b account in a manner that would cause the former officeholder to recognize the monies as
78c taxable income under federal tax law if the transfer is made to a campaign account for federal
78d office. .S
79 Section 4. Section 20A-11-1301 is amended to read:
80 20A-11-1301. School board office candidate -- Campaign requirements.
81 (1) Each school board office candidate shall deposit each contribution and public
82 service assistance received in one or more separate accounts in a financial institution that are
83 dedicated only to that purpose.

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(2) A school board office candidate may not deposit or mingle any contributions or
85 public service assistance received into a personal or business account.
86 (3) A school board office candidate may not make any political expenditures prohibited
87 by law.
88 (4) If a person who is no longer a school board candidate chooses not to expend the
89 monies remaining in [his] a campaign account, the person shall continue to file the year-end

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91 summary report required by Section 20A-11-1304 are filed with:
92 (a) the lieutenant governor in the case of a state school board candidate; and
93 (b) the county clerk, in the case of a local school board candidate.
94 (5) S. [ A ] (a) Except as provided in Subsection (5)(a) and Section 20A-11-402, a .S
94a person who is no longer a school board candidate may not expend or transfer the
95 monies in a campaign account in a manner that would cause the former school board candidate
96 to recognize the monies as taxable income under federal tax law.
96a S. (b) A person who is no longer a school board candidate may transfer the monies in a
96b campaign account in a manner that would cause the former school board candidate to
96c recognize the monies as taxable income under federal tax law if the transfer is made to a
96d campaign account for federal office. .S

Legislative Review Note
as of 2-3-09 1:12 PM

Office of Legislative Research and General Counsel