H.B. 267

1

LOBBYIST DISCLOSURE AND REGULATION
2 ACT AMENDMENTS
3 2010 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Kevin S. Garn
6 Senate Sponsor: Scott K. Jenkins
7
8 LONG TITLE
9 General Description:
10 This bill amends the Lobbyist Disclosure and Regulation Act related to an expenditure
11 by a lobbyist, principal, or government officer for the benefit of a public official.
12 Highlighted Provisions:
13 This bill:
14 . requires the disclosure of an expenditure or aggregate daily expenditure greater than
15 $10;
16 . prohibits a lobbyist, principal, or government officer from making an expenditure
17 greater than $10, except for food, a beverage, or attendance at a meeting;
18 . repeals and amends definitions, including the definition of expenditure to exclude
19 certain items or items under certain circumstances;
20 . amends the information a lobbyist files when registering;
21 . repeals a section establishing different reporting schedules; and
22 . makes technical changes.
23 Monies Appropriated in this Bill:
24 None
25 Other Special Clauses:
26 None
27 Utah Code Sections Affected:

28 AMENDS:
29 36-11-102, as last amended by Laws of Utah 2009, Chapter 109
30 36-11-103, as last amended by Laws of Utah 2009, Chapters 356 and 360
31 36-11-201, as last amended by Laws of Utah 2009, Chapter 109
32 REPEALS AND REENACTS:
33 36-11-304, as last amended by Laws of Utah 2009, Chapter 109
34 REPEALS:
35 36-11-201.3, as enacted by Laws of Utah 2007, Chapter 233
36
37 Be it enacted by the Legislature of the state of Utah:
38 Section 1. Section 36-11-102 is amended to read:
39 36-11-102. Definitions.
40 As used in this chapter:
41 (1) "Aggregate daily expenditures" means:
42 (a) for a single lobbyist, principal, or government officer, the total of all expenditures
43 made within a calendar day by the lobbyist, principal, or government officer for the benefit of
44 an individual public official;
45 (b) [when] for an expenditure [is] made by a member of a lobbyist group, the total of
46 all expenditures made within a calendar day by every member of the lobbyist group for the
47 benefit of an individual public official; or
48 (c) for a multiclient lobbyist, the total of all expenditures made by the multiclient
49 lobbyist within a calendar day for the benefit of an individual public official, regardless of
50 whether the expenditures were attributed to different clients.
51 (2) "Approved meeting" means a meeting to which a legislator is invited:
52 (a) of a national organization whose primary purpose is addressing general legislative
53 policy; and
54 (b) attendance at which is approved by:
55 (i) the speaker of the House of Representatives, if the public official is a member of the
56 House of Representatives; or
57 (ii) the president of the Senate, if the public official is a member of the Senate.
58 (3) (a) "Compensation" means anything of economic value, however designated, that is

59 paid, loaned, granted, given, donated, or transferred to an individual for the provision of
60 services or ownership before any withholding required by federal or state law.
61 (b) "Compensation" includes:
62 (i) a salary or commission;
63 (ii) a bonus;
64 (iii) a benefit;
65 (iv) a contribution to a retirement program or account;
66 (v) a payment includable in gross income, as defined in Section 62, Internal Revenue
67 Code, and subject to Social Security deductions, including a payment in excess of the
68 maximum amount subject to deduction under Social Security law;
69 (vi) an amount that the individual authorizes to be deducted or reduced for salary
70 deferral or other benefits authorized by federal law; or
71 (vii) income based on an individual's ownership interest.
72 (4) "Compensation payor" means a person who pays compensation to a public official
73 in the ordinary course of business:
74 (a) because of the public official's ownership interest in the compensation payor; or
75 (b) for services rendered by the public official on behalf of the compensation payor.
76 [(2)] (5) "Executive action" means:
77 (a) [nominations and appointments] a nomination or appointment by the governor;
78 (b) the proposal, drafting, amendment, enactment, or defeat by a state agency of [any] a
79 rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
80 [and]
81 (c) agency ratemaking proceedings[.]; or
82 (d) an adjudicative proceeding of a state agency.
83 [(3)] (6) (a) "Expenditure" means any of the items listed in this Subsection [(3)] (6)(a)
84 when given to or for the benefit of a public official[:] unless consideration of equal or greater
85 value is received:
86 (i) a purchase, payment, or distribution[,];
87 (ii) a loan, gift, or advance[,];
88 (iii) a deposit, subscription, or forbearance[,];
89 (iv) services[,] or goods[, unless consideration of equal or greater value is received;

90 and];
91 (v) money;
92 (vi) real property;
93 (vii) a ticket or admission to a sporting, recreational, or artistic event; or
94 [(ii)] (viii) a contract, promise, or agreement, whether or not legally enforceable, to
95 provide any [of the items] item listed in [Subsection (3)(a)(i)] Subsections (6)(a)(i) through
96 (vii).
97 (b) "Expenditure" does not mean:
98 (i) a commercially reasonable loan made in the ordinary course of business;
99 (ii) a campaign contribution reported in accordance with Title 20A, Chapter 11,
100 Campaign and Financial Reporting Requirements;
101 (iii) printed informational material that is related to the performance of the recipient's
102 official duties;
103 (iv) a devise or inheritance;
104 (v) any item listed in Subsection [(3)] (6)(a) if:
105 (A) given by a relative;
106 [(vi) a modest item of food or refreshment such as a beverage or pastry offered other
107 than as part of a meal, the value of which does not exceed $5;]
108 [(vii) a greeting card or other item of little intrinsic value that is intended solely for
109 presentation; or]
110 (B) given by a compensation payor for a purpose solely unrelated to the public
111 official's position as a public official; or
112 (C) (I) the item has a value of less than $10; and
113 (II) the aggregate daily expenditures of the person making the expenditure do not
114 exceed $10;
115 (vi) food, beverage, or entertainment for which a ticket is not required, if provided at
116 an event to which the following are invited:
117 (A) all members of the Legislature;
118 (B) all members of a standing or interim committee;
119 (C) all members of an official legislative task force; or
120 (D) all members of a party caucus;

121 (vii) food, beverage, or entertainment for which a ticket is not required that is provided
122 at an event to a public official who is:
123 (A) giving a speech at the event;
124 (B) participating in a panel discussion at the event; or
125 (C) presenting or receiving an award at the event;
126 [(viii) plaques, commendations, or awards]
127 (viii) a plaque, commendation, or award presented in public and having a cash value
128 not exceeding $50[.];
129 [(4) "Gift" is as defined in Section 36-11-304 .]
130 (ix) admission to or attendance at an event, the primary purpose of which is:
131 (A) to solicit contributions reportable under:
132 (I) Title 20A, Chapter 11, Campaign and Financial Reporting Requirements; or
133 (II) 2 U.S.C. Sec. 434; or
134 (B) charitable solicitation, as defined in Section 13-22-2 ;
135 (x) travel to, lodging at, and admission to an approved meeting; or
136 (xi) sponsorship of an official event or official entertainment of an approved meeting.
137 [(5)] (7) (a) "Government officer" means:
138 (i) an individual elected to a position in state or local government, when acting within
139 the government officer's official capacity; or
140 (ii) an individual appointed to or employed in a full-time position by state or local
141 government, when acting within the scope of the individual's employment.
142 (b) "Government officer" does not mean a member of the legislative branch of state
143 government.
144 [(6)] (8) "Immediate family" means:
145 (a) a spouse;
146 (b) a child residing in the household; or
147 (c) an individual claimed as a dependent for tax purposes.
148 [(7) "Interested person" means an individual defined in Subsections (10)(b)(iii) and
149 (viii).]
150 [(8)] (9) "Legislative action" means:
151 (a) [bills, resolutions, amendments, nominations, and other matters] a bill, resolution,

152 amendment, nomination, veto override, or other matter pending or proposed in either house of
153 the Legislature or its committees or requested by a legislator; and
154 (b) the action of the governor in approving or vetoing legislation.
155 [(9)] (10) "Lobbying" means communicating with a public official for the purpose of
156 influencing the passage, defeat, amendment, or postponement of legislative or executive action.
157 [(10)] (11) (a) "Lobbyist" means:
158 (i) an individual who is employed by a principal; or
159 (ii) an individual who contracts for economic consideration, other than reimbursement
160 for reasonable travel expenses, with a principal to lobby a public official.
161 (b) "Lobbyist" does not include:
162 (i) a government officer;
163 (ii) a member or employee of the legislative branch of state government;
164 (iii) [any] a person while appearing at, or providing written comments to, a hearing
165 conducted in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act or
166 Title 63G, Chapter 4, Administrative Procedures Act;
167 (iv) [any] a person participating on or appearing before an advisory or study task force,
168 commission, board, or committee, constituted by the Legislature or any agency or department
169 of state government, except legislative standing, appropriation, or interim committees;
170 (v) a representative of a political party;
171 (vi) an individual representing a bona fide church solely for the purpose of protecting
172 the right to practice the religious doctrines of the church, unless the individual or church makes
173 an expenditure that confers a benefit on a public official;
174 (vii) a newspaper, television station or network, radio station or network, periodical of
175 general circulation, or book publisher for the purpose of publishing news items, editorials,
176 other comments, or paid advertisements that directly or indirectly urge legislative or executive
177 action; or
178 (viii) an individual who appears on the individual's own behalf before a committee of
179 the Legislature or an agency of the executive branch [agency] of state government solely for the
180 purpose of testifying in support of or in opposition to legislative or executive action.
181 [(11)] (12) "Lobbyist group" means two or more lobbyists, principals, government
182 officers, [and] or any combination of lobbyists, principals, and officers who each contribute a

183 portion of an expenditure made to benefit a public official or member of the public official's
184 immediate family.
185 [(12)] (13) "Multiclient lobbyist" means a single lobbyist, principal, or government
186 officer who represents two or more clients and divides the aggregate daily expenditure made to
187 benefit a public official or member of the public official's immediate family between two or
188 more of those clients.
189 [(13) "Person" includes individuals, bodies politic and corporate, partnerships,
190 associations, and companies.]
191 (14) "Principal" means a person that employs an individual to perform lobbying, either
192 as an employee or as an independent contractor.
193 (15) "Public official" means:
194 (a) (i) a member of the Legislature;
195 (ii) an individual elected to a position in the executive branch of state government; or
196 (iii) an individual appointed to or employed in a position in the executive or legislative
197 branch of state government if that individual:
198 (A) occupies a policymaking position or makes purchasing or contracting decisions;
199 (B) drafts legislation or makes rules;
200 (C) determines rates or fees; or
201 (D) makes adjudicative decisions; or
202 (b) an immediate family member of a person described in Subsection (15)(a).
203 (16) "Public official type" means a notation to identify whether a public official is:
204 (a) (i) a member of the Legislature;
205 (ii) an individual elected to a position in the executive branch of state government;
206 (iii) an individual appointed to or employed in a position in the legislative branch of
207 state government who meets the definition of public official under Subsection (15)(a)(iii); or
208 (iv) an individual appointed to or employed in a position in the executive branch of
209 state government who meets the definition of public official under Subsection (15)(a)(iii); or
210 (b) an immediate family member of a person described in Subsection (15)(b).
211 (17) "Quarterly reporting period" means the three-month period covered by each
212 financial report required under Subsection 36-11-201 (2)(a).
213 (18) "Related person" means [any] a person, [or] agent, or employee [of a person,] who

214 knowingly and intentionally assists a lobbyist, principal, or government officer in lobbying.
215 (19) "Relative" means a spouse, child, parent, grandparent, grandchild, brother, sister,
216 parent-in-law, brother-in-law, sister-in-law, nephew, niece, aunt, uncle, first cousin, or spouse
217 of any of these individuals.
218 [(20) "Tangible personal property" means an item having a description that is consistent
219 with the meaning of tangible personal property found in the Utah Constitution, Article XIII.]
220 Section 2. Section 36-11-103 is amended to read:
221 36-11-103. Licensing requirements.
222 (1) (a) Before engaging in any lobbying, a lobbyist shall obtain a license from the
223 lieutenant governor by completing the form required by this section.
224 (b) The lieutenant governor shall issue licenses to qualified lobbyists.
225 (c) The lieutenant governor shall prepare a Lobbyist License Application Form that
226 includes:
227 (i) a place for the lobbyist's name and business address;
228 (ii) a place for the [name and business address of] following information for each
229 principal for whom the lobbyist works or is hired as an independent contractor[;]:
230 (A) the principal's name;
231 (B) the principal's business address;
232 (C) the name of each public official that the principal employs or has hired as an
233 independent contractor and the nature of the employment or contract with the public official;
234 and
235 (D) the general purposes, interests, and nature of the principal;
236 (iii) a place for the name and address of the person who paid or will pay the lobbyist's
237 registration fee, if the fee is not paid by the lobbyist;
238 (iv) a place for the lobbyist to disclose:
239 (A) any elected or appointed position that the lobbyist holds in state or local
240 government, if any; and
241 (B) the name of each public official that the lobbyist employs or has hired as an
242 independent contractor and the nature of the employment or contract with the public official, if
243 any;
244 (v) a place for the lobbyist to disclose the types of expenditures for which the lobbyist

245 will be reimbursed; and
246 (vi) a certification to be signed by the lobbyist that certifies that the information
247 provided in the form is true, accurate, and complete to the best of the lobbyist's knowledge and
248 belief.
249 (2) Each lobbyist who obtains a license under this section shall update the licensure
250 information when the lobbyist accepts employment for lobbying by a new client.
251 (3) (a) Except as provided in Subsection (4), the lieutenant governor shall grant a
252 lobbying license to an applicant who:
253 (i) files an application with the lieutenant governor that contains the information
254 required by this section; and
255 (ii) pays a $25 filing fee.
256 (b) A license entitles a person to serve as a lobbyist on behalf of one or more principals
257 and expires on December 31 of each even-numbered year.
258 (4) (a) The lieutenant governor may disapprove an application for a lobbying license:
259 (i) if the applicant has been convicted of violating Section 76-8-103 , 76-8-107 ,
260 76-8-108 , or 76-8-303 within five years before the date of the lobbying license application;
261 (ii) if the applicant has been convicted of violating Section 76-8-104 or 76-8-304
262 within one year before the date of the lobbying license application;
263 (iii) for the term of any suspension imposed under Section 36-11-401 ;
264 (iv) if, within one year before the date of the lobbying license application, the applicant
265 has been found to have willingly and knowingly:
266 (A) violated this section or Section 36-11-201 , 36-11-301 , 36-11-302 , 36-11-303 ,
267 36-11-304 , 36-11-305 , or 36-11-403 ; or
268 (B) filed a document required by this chapter that the lobbyist knew contained
269 materially false information or omitted material information; or
270 (v) if the applicant is prohibited from becoming a lobbyist under Title 67, Chapter 24,
271 Lobbying Restrictions Act.
272 (b) An applicant may appeal the disapproval in accordance with the procedures
273 established by the lieutenant governor under this chapter and Title 63G, Chapter 4,
274 Administrative Procedures Act.
275 (5) The lieutenant governor shall deposit license fees in the General Fund.

276 (6) A principal need not obtain a license under this section, but if the principal makes
277 expenditures to benefit a public official without using a lobbyist as an agent to confer those
278 benefits, the principal shall disclose those expenditures as required by Section 36-11-201 .
279 (7) Government officers need not obtain a license under this section, but shall disclose
280 any expenditures made to benefit public officials as required by Section 36-11-201 .
281 (8) Surrender, cancellation, or expiration of a lobbyist license does not absolve the
282 lobbyist of the duty to file the financial reports if the lobbyist is otherwise required to file the
283 reports by Section 36-11-201 .
284 Section 3. Section 36-11-201 is amended to read:
285 36-11-201. Lobbyist, principal, and government officer financial reporting
286 requirements -- Prohibition for related person to make expenditures.
287 (1) (a) (i) [Each] A lobbyist shall file [quarterly] financial reports with the lieutenant
288 governor on or before the due dates [under] specified in Subsection (2)(a).
289 (ii) If [the] a lobbyist has not made an expenditure during the quarterly reporting
290 period, the lobbyist shall file a [quarterly] financial report listing the amount of expenditures as
291 "none."
292 (b) [Each] A government officer or principal that makes an expenditure during any of
293 the quarterly reporting periods under Subsection (2)(a) shall file a [quarterly] financial report
294 with the lieutenant governor on or before the date that a report for that quarter is due.
295 (2) (a) [Quarterly expense reports shall be due] A financial report is due quarterly on
296 the following dates:
297 (i) April 10, for the period of January 1 through March 31;
298 (ii) July 10, for the period of April 1 through June 30;
299 (iii) October 10, for the period of July 1 through September 30; and
300 (iv) January 10, for the period of October 1 through December 31 of the previous year.
301 (b) If the due date for a financial report falls on a Saturday, Sunday, or legal holiday,
302 the report [shall be considered to be] is due on the next succeeding business day.
303 (c) A financial report [shall be considered] is timely filed if it is:
304 (i) postmarked on its due date; or
305 (ii) filed electronically on or before the due date.
306 (3) A [quarterly] financial report shall contain:

307 (a) the total amount of expenditures made to benefit any public official during the
308 quarterly reporting period;
309 (b) the total amount of expenditures made, by [public official] the type of public
310 official, during the quarterly reporting period;
311 (c) for the financial report due on January 10:
312 (i) the total amount of expenditures made to benefit any public official during the last
313 calendar year; and
314 (ii) the total amount of expenditures made, by [public official] the type of public
315 official, during the last calendar year;
316 [(d) a disclosure of each expenditure made during the quarterly reporting period to
317 reimburse or pay for the travel or lodging expenses of a public official, including for each trip:]
318 [(i) the purpose and each destination of the trip;]
319 [(ii) the name of each public official that participated in the trip;]
320 [(iii) the public official type of each public official named;]
321 [(iv) for each public official named, a listing of the amount and purpose of each
322 expenditure made for travel or lodging that benefitted the public official; and]
323 [(v) the total amount of expenditures made to benefit each public official named;]
324 [(e)] (d) a disclosure of [each expenditure] aggregate daily expenditures greater than
325 $10 made during the quarterly reporting period [that was not disclosed under Subsection (3)(d),
326 to be provided as follows:] including:
327 [(i) using Schedule A under Section 36-11-201.3 , a disclosure of each of the following
328 expenditures:]
329 [(A) an expenditure made for the cost or value of admission to a sporting, recreational,
330 or artistic event, whether as a spectator or a participant;]
331 [(B) an expenditure made for a gift, if the aggregate daily expenditures benefitting the
332 public official are greater than $10;]
333 [(C) an expenditure made for food or beverage, if the aggregate daily expenditures
334 benefitting the public official are greater than $25 unless the food or beverage is provided in
335 connection with an event to which:]
336 [(I) all of the members of the Legislature, a standing or interim committee or official
337 legislative task force, or a party caucus are invited; or]

338 [(II) all attendees from a house of the Legislature are invited, if the event is held in
339 conjunction with a meeting of a regional or national organization the members of which are
340 comprised of state legislatures or legislators; and]
341 [(D) any expenditure not otherwise reported in Subsection (3)(d), or this Subsection
342 (3)(e)(i), except for an expenditure for food and beverage provided in connection with an event
343 to which:]
344 [(I) all of the members of the Legislature, a standing or interim committee or official
345 legislative task force, or a party caucus are invited; or]
346 [(II) all attendees from a house of the Legislature are invited, if the event is held in
347 conjunction with a meeting of a regional or national organization the members of which are
348 comprised of state legislatures or legislators; and]
349 [(ii) using Schedule B under Section 36-11-201.3 , a disclosure of every expenditure not
350 reported in Subsection (3)(d) or (3)(e)(i);]
351 (i) the date and purpose of the expenditure;
352 (ii) the location of the expenditure;
353 (iii) the name of any public official benefitted by the expenditure;
354 (iv) the type of the public official benefitted by the expenditure; and
355 (v) the total monetary worth of the benefit that the expenditure conferred on any public
356 official;
357 [(f)] (e) for each public official who was employed by the lobbyist, principal, or
358 government officer or who performed work as an independent contractor for the lobbyist,
359 principal, or government officer during the last year, a list that provides:
360 (i) the name of the public official; and
361 (ii) the nature of the employment or contract with the public official;
362 [(g)] (f) each bill or resolution, by number and short title, on behalf of which the
363 lobbyist, principal, or government officer made an expenditure to a public official [for which a
364 report is required by this section, if any];
365 [(h)] (g) a description of each executive action on behalf of which the lobbyist,
366 principal, or government officer made an expenditure to a public official [for which a report is
367 required by this section, if any];
368 [(i)] (h) the general purposes, interests, and nature of the [organization or

369 organizations] entities that the lobbyist, principal, or government officer filing the report
370 represents; and
371 [(j)] (i) for a lobbyist, a certification that the information provided in the report is true,
372 accurate, and complete to the lobbyist's best knowledge and belief.
373 [(4) In reporting expenditures under this section for events to which all legislators are
374 invited, each lobbyist, principal, and government officer:]
375 [(a) may not divide the cost of the event by the number of legislators who actually
376 attend the event and report that cost as an expenditure made to those legislators;]
377 [(b) shall divide the total cost by the total number of Utah legislators and others invited
378 to the event and report that quotient as the amount expended for each legislator who actually
379 attended the event; and]
380 [(c) may not report any expenditure as made to a legislator who did not attend the
381 event.]
382 [(5)] (4) A related person may not, while assisting a lobbyist, principal, or government
383 officer in lobbying, make an expenditure that benefits a public official under circumstances
384 [which] that would otherwise fall within the disclosure requirements of this chapter if the
385 expenditure was made by the lobbyist, principal, or government officer.
386 [(6)] (5) The lieutenant governor shall:
387 (a) (i) develop a preprinted [forms for all financial reports] form for a financial report
388 required by this section; and
389 (ii) make copies of the [forms] form available to [each person] a lobbyist, principal, or
390 government officer who requests [them] a form; and
391 (b) provide a reporting system that allows a lobbyist, principal, or government officer
392 to submit a financial [reports to be submitted] report required by this chapter via the Internet.
393 [(7)] (6) (a) [Each] A lobbyist and [each] a principal shall continue to file [the
394 quarterly] a financial [reports] report required by this section until the lobbyist or principal files
395 a statement with the lieutenant governor that:
396 (i) states:
397 (A) for a lobbyist, that the lobbyist has ceased lobbying activities; or
398 (B) for a principal, that the principal no longer employs an individual as a lobbyist;
399 (ii) in the case of a lobbyist, states that the lobbyist is surrendering the lobbyist's

400 license;
401 (iii) contains a listing, as required by this section, of all previously unreported
402 expenditures that have been made through the date of the statement; and
403 (iv) states that the lobbyist or principal will not make any additional expenditure that is
404 not disclosed on the statement unless the lobbyist or principal complies with the disclosure and
405 licensing requirements of this chapter.
406 (b) A [lobbyist] person that fails to renew the lobbyist's license or otherwise ceases to
407 be licensed [shall be] is required to file [quarterly reports] a financial report quarterly until the
408 [lobbyist] person files the statement required by Subsection [(7)] (6)(a).
409 Section 4. Section 36-11-304 is repealed and reenacted to read:
410 36-11-304. Expenditures over $10 prohibited -- Exceptions.
411 (1) Except as provided in Subsection (2), a lobbyist, principal, or government officer
412 may not make or offer to make aggregate daily expenditures that exceed $10.
413 (2) A lobbyist, principal, or government officer may make aggregate daily expenditures
414 that exceed $10:
415 (a) for the following items, if the expenditure is reported in accordance with Section
416 36-11-201 :
417 (i) food;
418 (ii) a beverage; or
419 (iii) admission to or attendance at a meeting that is not an approved meeting; or
420 (b) if the expenditure is made for a purpose solely unrelated to the public official's
421 position as a public official.
422 Section 5. Repealer.
423 This bill repeals:
424 Section 36-11-201.3, Expenditure reporting schedules.




Legislative Review Note
as of 1-25-10 2:17 PM

Office of Legislative Research and General Counsel