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H.B. 311

             1     

CAMPAIGN FINANCE PROVISIONS

             2     
2013 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Brian S. King

             5     
Senate Sponsor: ____________

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill establishes campaign finance limits.
             10      Highlighted Provisions:
             11          This bill:
             12          .    defines terms;
             13          .    establishes contribution limits;
             14          .    makes a violation of contribution limits a class A misdemeanor; and
             15          .    makes technical changes.
             16      Money Appropriated in this Bill:
             17          None
             18      Other Special Clauses:
             19          None
             20      Utah Code Sections Affected:
             21      AMENDS:
             22          20A-11-101, as last amended by Laws of Utah 2012, Chapter 230
             23      ENACTS:
             24          20A-11-604, Utah Code Annotated 1953
             25          20A-11-705, Utah Code Annotated 1953
             26          20A-11-1504, Utah Code Annotated 1953
             27          20A-11-1701, Utah Code Annotated 1953


             28          20A-11-1702, Utah Code Annotated 1953
             29          20A-11-1703, Utah Code Annotated 1953
             30     
             31      Be it enacted by the Legislature of the state of Utah:
             32          Section 1. Section 20A-11-101 is amended to read:
             33           20A-11-101. Definitions.
             34          As used in this chapter:
             35          (1) "Address" means the number and street where an individual resides or where a
             36      reporting entity has its principal office.
             37          (2) "Ballot proposition" includes initiatives, referenda, proposed constitutional
             38      amendments, and any other ballot propositions submitted to the voters that are authorized by
             39      the Utah Code Annotated 1953.
             40          (3) "Candidate" means any person who:
             41          (a) files a declaration of candidacy for a public office; or
             42          (b) receives contributions, makes expenditures, or gives consent for any other person to
             43      receive contributions or make expenditures to bring about the person's nomination or election
             44      to a public office.
             45          (4) "Cash" means currency or coinage that constitutes legal tender.
             46          [(4)] (5) "Chief election officer" means:
             47          (a) the lieutenant governor for state office candidates, legislative office candidates,
             48      officeholders, political parties, political action committees, corporations, political issues
             49      committees, state school board candidates, judges, and labor organizations, as defined in
             50      Section 20A-11-1501 ; and
             51          (b) the county clerk for local school board candidates.
             52          [(5)] (6) (a) "Contribution" means any of the following when done for political
             53      purposes:
             54          (i) a gift, subscription, donation, loan, advance, or deposit of money or anything of
             55      value given to the filing entity;
             56          (ii) an express, legally enforceable contract, promise, or agreement to make a gift,
             57      subscription, donation, unpaid or partially unpaid loan, advance, or deposit of money or
             58      anything of value to the filing entity;


             59          (iii) any transfer of funds from another reporting entity to the filing entity;
             60          (iv) compensation paid by any person or reporting entity other than the filing entity for
             61      personal services provided without charge to the filing entity;
             62          (v) remuneration from:
             63          (A) any organization or its directly affiliated organization that has a registered lobbyist;
             64      or
             65          (B) any agency or subdivision of the state, including school districts; and
             66          (vi) goods or services provided to or for the benefit of the filing entity at less than fair
             67      market value.
             68          (b) "Contribution" does not include:
             69          (i) services provided without compensation by individuals volunteering a portion or all
             70      of their time on behalf of the filing entity;
             71          (ii) money lent to the filing entity by a financial institution in the ordinary course of
             72      business; or
             73          (iii) goods or services provided for the benefit of a candidate or political party at less
             74      than fair market value that are not authorized by or coordinated with the candidate or political
             75      party.
             76          (7) "Contribution cycle" means a two-year period of time:
             77          (a) beginning January 1, 2015, and each January 1 of an odd-numbered year thereafter;
             78      and
             79          (b) ending December 31 of an even-numbered year immediately following an odd
             80      numbered year described in Subsection (7)(a).
             81          [(6)] (8) "Coordinated with" means that goods or services provided for the benefit of a
             82      candidate or political party are provided:
             83          (a) with the candidate's or political party's prior knowledge, if the candidate or political
             84      party does not object;
             85          (b) by agreement with the candidate or political party;
             86          (c) in coordination with the candidate or political party; or
             87          (d) using official logos, slogans, and similar elements belonging to a candidate or
             88      political party.
             89          [(7)] (9) (a) "Corporation" means a domestic or foreign, profit or nonprofit, business


             90      organization that is registered as a corporation or is authorized to do business in a state and
             91      makes any expenditure from corporate funds for:
             92          (i) the purpose of expressly advocating for political purposes; or
             93          (ii) the purpose of expressly advocating the approval or the defeat of any ballot
             94      proposition.
             95          (b) "Corporation" does not mean:
             96          (i) a business organization's political action committee or political issues committee; or
             97          (ii) a business entity organized as a partnership or a sole proprietorship.
             98          [(8)] (10) "County political party" means, for each registered political party, all of the
             99      persons within a single county who, under definitions established by the political party, are
             100      members of the registered political party.
             101          [(9)] (11) "County political party officer" means a person whose name is required to be
             102      submitted by a county political party to the lieutenant governor in accordance with Section
             103      20A-8-402 .
             104          [(10)] (12) "Detailed listing" means:
             105          (a) for each contribution or public service assistance:
             106          (i) the name and address of the individual or source making the contribution or public
             107      service assistance;
             108          (ii) the amount or value of the contribution or public service assistance; and
             109          (iii) the date the contribution or public service assistance was made; and
             110          (b) for each expenditure:
             111          (i) the amount of the expenditure;
             112          (ii) the person or entity to whom it was disbursed;
             113          (iii) the specific purpose, item, or service acquired by the expenditure; and
             114          (iv) the date the expenditure was made.
             115          [(11)] (13) "Election" means each:
             116          (a) regular general election;
             117          (b) regular primary election; and
             118          (c) special election at which candidates are eliminated and selected.
             119          [(12)] (14) "Electioneering communication" means a communication that:
             120          (a) has at least a value of $10,000;


             121          (b) clearly identifies a candidate or judge; and
             122          (c) is disseminated through the Internet, newspaper, magazine, outdoor advertising
             123      facility, direct mailing, broadcast, cable, or satellite provider within 45 days of the clearly
             124      identified candidate's or judge's election date.
             125          [(13)] (15) (a) "Expenditure" means:
             126          (i) any disbursement from contributions, receipts, or from the separate bank account
             127      required by this chapter;
             128          (ii) a purchase, payment, donation, distribution, loan, advance, deposit, gift of money,
             129      or anything of value made for political purposes;
             130          (iii) an express, legally enforceable contract, promise, or agreement to make any
             131      purchase, payment, donation, distribution, loan, advance, deposit, gift of money, or anything of
             132      value for political purposes;
             133          (iv) compensation paid by a filing entity for personal services rendered by a person
             134      without charge to a reporting entity;
             135          (v) a transfer of funds between the filing entity and a candidate's personal campaign
             136      committee; or
             137          (vi) goods or services provided by the filing entity to or for the benefit of another
             138      reporting entity for political purposes at less than fair market value.
             139          (b) "Expenditure" does not include:
             140          (i) services provided without compensation by individuals volunteering a portion or all
             141      of their time on behalf of a reporting entity;
             142          (ii) money lent to a reporting entity by a financial institution in the ordinary course of
             143      business; or
             144          (iii) anything listed in Subsection [(13)] (15)(a) that is given by a reporting entity to
             145      candidates for office or officeholders in states other than Utah.
             146          [(14)] (16) "Federal office" means the office of President of the United States, United
             147      States Senator, or United States Representative.
             148          [(15)] (17) "Filing entity" means the reporting entity that is required to file a financial
             149      statement required by this chapter or [Chapter 12, Part 2, Judicial Retention Elections] Section
             150      20A-12-201 .
             151          [(16)] (18) "Financial statement" includes any summary report, interim report, verified


             152      financial statement, or other statement disclosing contributions, expenditures, receipts,
             153      donations, or disbursements that is required by this chapter or [Chapter 12, Part 2, Judicial
             154      Retention Elections] Section 20A-12-201 .
             155          [(17)] (19) "Governing board" means the individual or group of individuals that
             156      determine the candidates and committees that will receive expenditures from a political action
             157      committee, political party, or corporation.
             158          [(18)] (20) "Incorporation" means the process established by Title 10, Chapter 2, Part
             159      1, Incorporation, by which a geographical area becomes legally recognized as a city or town.
             160          [(19)] (21) "Incorporation election" means the election authorized by Section 10-2-111 .
             161          [(20)] (22) "Incorporation petition" means a petition authorized by Section 10-2-109 .
             162          [(21)] (23) "Individual" means a natural person.
             163          [(22)] (24) "Interim report" means a report identifying the contributions received and
             164      expenditures made since the last report.
             165          [(23)] (25) "Legislative office" means the office of state senator, state representative,
             166      speaker of the House of Representatives, president of the Senate, and the leader, whip, and
             167      assistant whip of any party caucus in either house of the Legislature.
             168          [(24)] (26) "Legislative office candidate" means a person who:
             169          (a) files a declaration of candidacy for the office of state senator or state representative;
             170          (b) declares oneself to be a candidate for, or actively campaigns for, the position of
             171      speaker of the House of Representatives, president of the Senate, or the leader, whip, and
             172      assistant whip of any party caucus in either house of the Legislature; or
             173          (c) receives contributions, makes expenditures, or gives consent for any other person to
             174      receive contributions or make expenditures to bring about the person's nomination or election
             175      to a legislative office.
             176          [(25)] (27) "Officeholder" means a person who holds a public office.
             177          [(26)] (28) "Party committee" means any committee organized by or authorized by the
             178      governing board of a registered political party.
             179          [(27)] (29) "Person" means both natural and legal persons, including individuals,
             180      business organizations, personal campaign committees, party committees, political action
             181      committees, political issues committees, and labor organizations, as defined in Section
             182      20A-11-1501 .


             183          [(28)] (30) "Personal campaign committee" means the committee appointed by a
             184      candidate to act for the candidate as provided in this chapter.
             185          [(29)] (31) "Personal use expenditure" has the same meaning as provided under Section
             186      20A-11-104 .
             187          [(30)] (32) (a) "Political action committee" means an entity, or any group of
             188      individuals or entities within or outside this state, a major purpose of which is to:
             189          (i) solicit or receive contributions from any other person, group, or entity for political
             190      purposes; or
             191          (ii) make expenditures to expressly advocate for any person to refrain from voting or to
             192      vote for or against any candidate or person seeking election to a municipal or county office.
             193          (b) "Political action committee" includes groups affiliated with a registered political
             194      party but not authorized or organized by the governing board of the registered political party
             195      that receive contributions or makes expenditures for political purposes.
             196          (c) "Political action committee" does not mean:
             197          (i) a party committee;
             198          (ii) any entity that provides goods or services to a candidate or committee in the regular
             199      course of its business at the same price that would be provided to the general public;
             200          (iii) an individual;
             201          (iv) individuals who are related and who make contributions from a joint checking
             202      account;
             203          (v) a corporation, except a corporation a major purpose of which is to act as a political
             204      action committee; or
             205          (vi) a personal campaign committee.
             206          [(31)] (33) "Political convention" means a county or state political convention held by
             207      a registered political party to select candidates.
             208          [(32)] (34) (a) "Political issues committee" means an entity, or any group of individuals
             209      or entities within or outside this state, a major purpose of which is to:
             210          (i) solicit or receive donations from any other person, group, or entity to assist in
             211      placing a ballot proposition on the ballot, assist in keeping a ballot proposition off the ballot, or
             212      to advocate that a voter refrain from voting or vote for or vote against any ballot proposition;
             213          (ii) make expenditures to expressly advocate for any person to sign or refuse to sign a


             214      ballot proposition or incorporation petition or refrain from voting, vote for, or vote against any
             215      proposed ballot proposition or an incorporation in an incorporation election; or
             216          (iii) make expenditures to assist in qualifying or placing a ballot proposition on the
             217      ballot or to assist in keeping a ballot proposition off the ballot.
             218          (b) "Political issues committee" does not mean:
             219          (i) a registered political party or a party committee;
             220          (ii) any entity that provides goods or services to an individual or committee in the
             221      regular course of its business at the same price that would be provided to the general public;
             222          (iii) an individual;
             223          (iv) individuals who are related and who make contributions from a joint checking
             224      account; or
             225          (v) a corporation, except a corporation a major purpose of which is to act as a political
             226      issues committee.
             227          [(33)] (35) (a) "Political issues contribution" means any of the following:
             228          (i) a gift, subscription, unpaid or partially unpaid loan, advance, or deposit of money or
             229      anything of value given to a political issues committee;
             230          (ii) an express, legally enforceable contract, promise, or agreement to make a political
             231      issues donation to influence the approval or defeat of any ballot proposition;
             232          (iii) any transfer of funds received by a political issues committee from a reporting
             233      entity;
             234          (iv) compensation paid by another reporting entity for personal services rendered
             235      without charge to a political issues committee; and
             236          (v) goods or services provided to or for the benefit of a political issues committee at
             237      less than fair market value.
             238          (b) "Political issues contribution" does not include:
             239          (i) services provided without compensation by individuals volunteering a portion or all
             240      of their time on behalf of a political issues committee; or
             241          (ii) money lent to a political issues committee by a financial institution in the ordinary
             242      course of business.
             243          [(34)] (36) (a) "Political issues expenditure" means any of the following:
             244          (i) any payment from political issues contributions made for the purpose of influencing


             245      the approval or the defeat of:
             246          (A) a ballot proposition; or
             247          (B) an incorporation petition or incorporation election;
             248          (ii) a purchase, payment, distribution, loan, advance, deposit, or gift of money made for
             249      the express purpose of influencing the approval or the defeat of:
             250          (A) a ballot proposition; or
             251          (B) an incorporation petition or incorporation election;
             252          (iii) an express, legally enforceable contract, promise, or agreement to make any
             253      political issues expenditure;
             254          (iv) compensation paid by a reporting entity for personal services rendered by a person
             255      without charge to a political issues committee; or
             256          (v) goods or services provided to or for the benefit of another reporting entity at less
             257      than fair market value.
             258          (b) "Political issues expenditure" does not include:
             259          (i) services provided without compensation by individuals volunteering a portion or all
             260      of their time on behalf of a political issues committee; or
             261          (ii) money lent to a political issues committee by a financial institution in the ordinary
             262      course of business.
             263          [(35)] (37) "Political purposes" means an act done with the intent or in a way to
             264      influence or tend to influence, directly or indirectly, any person to refrain from voting or to vote
             265      for or against any candidate or a person seeking a municipal or county office at any caucus,
             266      political convention, or election.
             267          [(36)] (38) "Primary election" means any regular primary election held under the
             268      election laws.
             269          [(37)] (39) "Public office" means the office of governor, lieutenant governor, state
             270      auditor, state treasurer, attorney general, state or local school board member, state senator, state
             271      representative, speaker of the House of Representatives, president of the Senate, and the leader,
             272      whip, and assistant whip of any party caucus in either house of the Legislature.
             273          [(38)] (40) (a) "Public service assistance" means the following when given or provided
             274      to an officeholder to defray the costs of functioning in a public office or aid the officeholder to
             275      communicate with the officeholder's constituents:


             276          (i) a gift, subscription, donation, unpaid or partially unpaid loan, advance, or deposit of
             277      money or anything of value to an officeholder; or
             278          (ii) goods or services provided at less than fair market value to or for the benefit of the
             279      officeholder.
             280          (b) "Public service assistance" does not include:
             281          (i) anything provided by the state;
             282          (ii) services provided without compensation by individuals volunteering a portion or all
             283      of their time on behalf of an officeholder;
             284          (iii) money lent to an officeholder by a financial institution in the ordinary course of
             285      business;
             286          (iv) news coverage or any publication by the news media; or
             287          (v) any article, story, or other coverage as part of any regular publication of any
             288      organization unless substantially all the publication is devoted to information about the
             289      officeholder.
             290          [(39)] (41) "Publicly identified class of individuals" means a group of 50 or more
             291      individuals sharing a common occupation, interest, or association that contribute to a political
             292      action committee or political issues committee and whose names can be obtained by contacting
             293      the political action committee or political issues committee upon whose financial statement the
             294      individuals are listed.
             295          [(40)] (42) "Receipts" means contributions and public service assistance.
             296          [(41)] (43) "Registered lobbyist" means a person registered under Title 36, Chapter 11,
             297      Lobbyist Disclosure and Regulation Act.
             298          [(42)] (44) "Registered political action committee" means any political action
             299      committee that is required by this chapter to file a statement of organization with the lieutenant
             300      governor's office.
             301          [(43)] (45) "Registered political issues committee" means any political issues
             302      committee that is required by this chapter to file a statement of organization with the lieutenant
             303      governor's office.
             304          [(44)] (46) "Registered political party" means an organization of voters that:
             305          (a) participated in the last regular general election and polled a total vote equal to 2%
             306      or more of the total votes cast for all candidates for the United States House of Representatives


             307      for any of its candidates for any office; or
             308          (b) has complied with the petition and organizing procedures of Chapter 8, Political
             309      Party Formation and Procedures.
             310          [(45)] (47) (a) "Remuneration" means a payment:
             311          (i) made to a legislator for the period the Legislature is in session; and
             312          (ii) that is approximately equivalent to an amount a legislator would have earned
             313      during the period the Legislature is in session in the legislator's ordinary course of business.
             314          (b) "Remuneration" does not mean anything of economic value given to a legislator by:
             315          (i) the legislator's primary employer in the ordinary course of business; or
             316          (ii) a person or entity in the ordinary course of business:
             317          (A) because of the legislator's ownership interest in the entity; or
             318          (B) for services rendered by the legislator on behalf of the person or entity.
             319          [(46)] (48) "Reporting entity" means a candidate, a candidate's personal campaign
             320      committee, a judge, a judge's personal campaign committee, an officeholder, a party
             321      committee, a political action committee, a political issues committee, a corporation, or a labor
             322      organization, as defined in Section 20A-11-1501 .
             323          [(47)] (49) "School board office" means the office of state school board or local school
             324      board.
             325          [(48)] (50) (a) "Source" means the person or entity that is the legal owner of the
             326      tangible or intangible asset that comprises the contribution.
             327          (b) "Source" means, for political action committees and corporations, the political
             328      action committee and the corporation as entities, not the contributors to the political action
             329      committee or the owners or shareholders of the corporation.
             330          [(49)] (51) "State office" means the offices of governor, lieutenant governor, attorney
             331      general, state auditor, and state treasurer.
             332          [(50)] (52) "State office candidate" means a person who:
             333          (a) files a declaration of candidacy for a state office; or
             334          (b) receives contributions, makes expenditures, or gives consent for any other person to
             335      receive contributions or make expenditures to bring about the person's nomination or election
             336      to a state office.
             337          [(51)] (53) "Summary report" means the year end report containing the summary of a


             338      reporting entity's contributions and expenditures.
             339          [(52)] (54) "Supervisory board" means the individual or group of individuals that
             340      allocate expenditures from a political issues committee.
             341          Section 2. Section 20A-11-604 is enacted to read:
             342          20A-11-604. Limits on contributions by political action committees.
             343          (1) A political action committee may not make contributions totaling more than the
             344      following amounts per contribution cycle:
             345          (a) $10,000 to one state office candidate;
             346          (b) $5,000 to one legislative office candidate;
             347          (c) $5,000 to one school board office candidate;
             348          (d) $5,000 to one judge;
             349          (e) $40,000 to one registered political party;
             350          (f) $10,000 to one political action committee; or
             351          (g) $50,000 in the aggregate to one or more:
             352          (i) registered political parties;
             353          (ii) labor organizations; and
             354          (iii) political action committees.
             355          (2) A political action committee may not make a cash contribution in excess of $100 in
             356      a contribution cycle.
             357          Section 3. Section 20A-11-705 is enacted to read:
             358          20A-11-705. Limits on contributions by corporations.
             359          (1) A corporation may not make contributions totaling more than the following
             360      amounts per contribution cycle:
             361          (a) $10,000 to one state office candidate;
             362          (b) $5,000 to one legislative office candidate;
             363          (c) $5,000 to one school board office candidate;
             364          (d) $5,000 to one judge;
             365          (e) $40,000 to one registered political party;
             366          (f) $10,000 to one political action committee; or
             367          (g) $50,000 in the aggregate to one or more:
             368          (i) registered political parties;


             369          (ii) labor organizations; and
             370          (iii) political action committees.
             371          (2) A corporation may not make a cash contribution in excess of $100 in a contribution
             372      cycle.
             373          Section 4. Section 20A-11-1504 is enacted to read:
             374          20A-11-1504. Limits on contributions by a labor organization.
             375          (1) As used in this section, "labor organization" is as defined in Section 20A-11-1402 .
             376          (2) A labor organization may not make contributions totaling more than the following
             377      amounts per contribution cycle:
             378          (a) $10,000 to one state office candidate;
             379          (b) $5,000 to one legislative office candidate;
             380          (c) $5,000 to one school board office candidate;
             381          (d) $5,000 to one judge;
             382          (e) $40,000 to one registered political party;
             383          (f) $10,000 to one political action committee; or
             384          (g) $50,000 in the aggregate to one or more:
             385          (i) registered political parties;
             386          (ii) labor organizations; and
             387          (iii) political action committees.
             388          (3) A labor organization may not make a cash contribution in excess of $100 in a
             389      contribution cycle.
             390          Section 5. Section 20A-11-1701 is enacted to read:
             391     
Part 17. Contribution Limits

             392          20A-11-1701. Limits on contributions by an individual.
             393          (1) An individual may not make contributions totaling more than the following
             394      amounts per contribution cycle:
             395          (a) $10,000 to one state office candidate;
             396          (b) $5,000 to one legislative office candidate;
             397          (c) $5,000 to one school board office candidate;
             398          (d) $5,000 to one judge;
             399          (e) $40,000 to one registered political party; or


             400          (f) $10,000 to one political action committee.
             401          (2) An individual may not make a cash contribution in excess of $100 in a contribution
             402      cycle.
             403          Section 6. Section 20A-11-1702 is enacted to read:
             404          20A-11-1702. Contribution limit transition.
             405          A person may not make a contribution between May 14, 2013, and December 31, 2014,
             406      in excess of the contribution limits established in Sections 20A-11-604 , 20A-11-705 ,
             407      20A-11-1501 , or 20A-11-1504 .
             408          Section 7. Section 20A-11-1703 is enacted to read:
             409          20A-11-1703. Penalty for contributions in excess of limit.
             410          (1) A person that makes a contribution in excess of the contribution limits established
             411      in Section 20A-11-604 , 20A-11-705 , 20A-11-1504 , 20A-11-1701 , or 20A-11-1702 is guilty of
             412      a class A misdemeanor.
             413          (2) A person that accepts a contribution in excess of the contribution limits established
             414      in Section 20A-11-604 , 20A-11-705 , 20A-11-1504 , 20A-11-1701 , or 20A-11-1702 is guilty of
             415      a class A misdemeanor.




Legislative Review Note
    as of 2-11-13 8:55 AM


Office of Legislative Research and General Counsel


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