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H.B. 410

             1     

CAMPAIGN FINANCE REVISIONS

             2     
2013 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Kraig Powell

             5     
Senate Sponsor: ____________

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill amends provisions of the Election Code relating to campaign contributions.
             10      Highlighted Provisions:
             11          This bill:
             12          .    provides that a state office candidate, a legislative office candidate, a school board
             13      office candidate, or a judge may not, during any two-year period, accept total
             14      contributions from the same individual or source in an amount of $9,999 or more.
             15      Money Appropriated in this Bill:
             16          None
             17      Other Special Clauses:
             18          None
             19      Utah Code Sections Affected:
             20      AMENDS:
             21          20A-11-201, as last amended by Laws of Utah 2012, Chapter 230
             22          20A-11-301, as last amended by Laws of Utah 2012, Chapter 230
             23          20A-11-1301, as last amended by Laws of Utah 2012, Chapter 230
             24          20A-12-303, as last amended by Laws of Utah 2011, Chapter 396
             25     
             26      Be it enacted by the Legislature of the state of Utah:
             27          Section 1. Section 20A-11-201 is amended to read:


             28           20A-11-201. State office candidate -- Separate bank account for campaign funds
             29      -- No personal use -- Report contributions within 30 days -- Report other accounts.
             30          (1) (a) Each state office candidate or the candidate's personal campaign committee
             31      shall deposit each contribution and public service assistance received in one or more separate
             32      campaign accounts in a financial institution.
             33          (b) A state office candidate or a candidate's personal campaign committee may not use
             34      money deposited in a campaign account for:
             35          (i) a personal use expenditure; or
             36          (ii) an expenditure prohibited by law.
             37          (2) A state office candidate or the candidate's personal campaign committee may not
             38      deposit or mingle any contributions received into a personal or business account.
             39          (3) If a person who is no longer a state office candidate chooses not to expend the
             40      money remaining in a campaign account, the person shall continue to file the year-end
             41      summary report required by Section 20A-11-203 until the statement of dissolution and final
             42      summary report required by Section 20A-11-205 are filed with the lieutenant governor.
             43          (4) (a) Except as provided in Subsection (4)(b) and Section 20A-11-402 , a person who
             44      is no longer a state office candidate may not expend or transfer the money in a campaign
             45      account in a manner that would cause the former state office candidate to recognize the money
             46      as taxable income under federal tax law.
             47          (b) A person who is no longer a state office candidate may transfer the money in a
             48      campaign account in a manner that would cause the former state office candidate to recognize
             49      the money as taxable income under federal tax law if the transfer is made to a campaign
             50      account for federal office.
             51          (5) (a) As used in this Subsection (5) and Section 20A-11-204 , "received" means:
             52          (i) for a cash contribution, that the cash is given to a state office candidate or a member
             53      of the candidate's personal campaign committee;
             54          (ii) for a contribution that is a negotiable instrument or check, that the negotiable
             55      instrument or check is negotiated; and
             56          (iii) for any other type of contribution, that any portion of the contribution's benefit
             57      inures to the state office candidate.
             58          (b) Each state office candidate shall report each contribution and public service


             59      assistance to the lieutenant governor within 30 days after the contribution or public service
             60      assistance is received.
             61          (6) (a) As used in this Subsection (6), "account" means an account in a financial
             62      institution:
             63          (i) that is not described in Subsection (1)(a); and
             64          (ii) into which or from which a person who, as a candidate for an office, other than the
             65      state office for which the person files a declaration of candidacy or federal office, or as a holder
             66      of an office, other than a state office for which the person files a declaration of candidacy or
             67      federal office, deposits a contribution or makes an expenditure.
             68          (b) A state office candidate shall include on any financial statement filed in accordance
             69      with this part:
             70          (i) a contribution deposited in an account:
             71          (A) since the last campaign finance statement was filed; or
             72          (B) that has not been reported under a statute or ordinance that governs the account; or
             73          (ii) an expenditure made from an account:
             74          (A) since the last campaign finance statement was filed; or
             75          (B) that has not been reported under a statute or ordinance that governs the account.
             76          (7) A state office candidate may not, during any two-year period, accept total
             77      contributions from the same individual or source in an amount of $9,999 or more.
             78          Section 2. Section 20A-11-301 is amended to read:
             79           20A-11-301. Legislative office candidate -- Campaign finance requirements --
             80      Candidate as a political action committee officer -- No personal use -- Report
             81      contributions within 30 days -- Report other accounts.
             82          (1) (a) (i) Each legislative office candidate shall deposit each contribution and public
             83      service assistance received in one or more separate accounts in a financial institution that are
             84      dedicated only to that purpose.
             85          (ii) A legislative office candidate may:
             86          (A) receive a contribution or public service assistance from a political action
             87      committee registered under Section 20A-11-601 ; and
             88          (B) be designated by a political action committee as an officer who has primary
             89      decision-making authority as described in Section 20A-11-601 .


             90          (b) A legislative office candidate or the candidate's personal campaign committee may
             91      not use money deposited in an account described in Subsection (1)(a)(i) for:
             92          (i) a personal use expenditure; or
             93          (ii) an expenditure prohibited by law.
             94          (2) A legislative office candidate may not deposit or mingle any contributions or public
             95      service assistance received into a personal or business account.
             96          (3) If a person who is no longer a legislative candidate chooses not to expend the
             97      money remaining in a campaign account, the person shall continue to file the year-end
             98      summary report required by Section 20A-11-302 until the statement of dissolution and final
             99      summary report required by Section 20A-11-304 are filed with the lieutenant governor.
             100          (4) (a) Except as provided in Subsection (4)(b) and Section 20A-11-402 , a person who
             101      is no longer a legislative office candidate may not expend or transfer the money in a campaign
             102      account in a manner that would cause the former legislative office candidate to recognize the
             103      money as taxable income under federal tax law.
             104          (b) A person who is no longer a legislative office candidate may transfer the money in
             105      a campaign account in a manner that would cause the former legislative office candidate to
             106      recognize the money as taxable income under federal tax law if the transfer is made to a
             107      campaign account for federal office.
             108          (5) (a) As used in this Subsection (5) and Section 20A-11-303 , "received" means:
             109          (i) for a cash contribution, that the cash is given to a legislative office candidate or a
             110      member of the candidate's personal campaign committee;
             111          (ii) for a contribution that is a negotiable instrument or check, that the negotiable
             112      instrument or check is negotiated; and
             113          (iii) for any other type of contribution, that any portion of the contribution's benefit
             114      inures to the legislative office candidate.
             115          (b) Each legislative office candidate shall report each contribution and public service
             116      assistance to the lieutenant governor within 30 days after the contribution or public service
             117      assistance is received.
             118          (6) (a) As used in this Subsection (6), "account" means an account in a financial
             119      institution:
             120          (i) that is not described in Subsection (1)(a)(i); and


             121          (ii) into which or from which a person who, as a candidate for an office, other than a
             122      legislative office for which the person files a declaration of candidacy or federal office, or as a
             123      holder of an office, other than a legislative office for which the person files a declaration of
             124      candidacy or federal office, deposits a contribution or makes an expenditure.
             125          (b) A legislative office candidate shall include on any financial statement filed in
             126      accordance with this part:
             127          (i) a contribution deposited in an account:
             128          (A) since the last campaign finance statement was filed; or
             129          (B) that has not been reported under a statute or ordinance that governs the account; or
             130          (ii) an expenditure made from an account:
             131          (A) since the last campaign finance statement was filed; or
             132          (B) that has not been reported under a statute or ordinance that governs the account.
             133          (7) A legislative office candidate may not, during any two-year period, accept total
             134      contributions from the same individual or source in an amount of $9,999 or more.
             135          Section 3. Section 20A-11-1301 is amended to read:
             136           20A-11-1301. School board office candidate -- Campaign finance requirements --
             137      Candidate as a political action committee officer -- No personal use -- Report
             138      contributions within 30 days -- Report other accounts.
             139          (1) (a) (i) Each school board office candidate shall deposit each contribution and public
             140      service assistance received in one or more separate accounts in a financial institution that are
             141      dedicated only to that purpose.
             142          (ii) A school board office candidate may:
             143          (A) receive a contribution or public service assistance from a political action
             144      committee registered under Section 20A-11-601 ; and
             145          (B) be designated by a political action committee as an officer who has primary
             146      decision-making authority as described in Section 20A-11-601 .
             147          (b) A school board office candidate may not use money deposited in an account
             148      described in Subsection (1)(a)(i) for:
             149          (i) a personal use expenditure; or
             150          (ii) an expenditure prohibited by law.
             151          (2) A school board office candidate may not deposit or mingle any contributions or


             152      public service assistance received into a personal or business account.
             153          (3) A school board office candidate may not make any political expenditures prohibited
             154      by law.
             155          (4) If a person who is no longer a school board candidate chooses not to expend the
             156      money remaining in a campaign account, the person shall continue to file the year-end
             157      summary report required by Section 20A-11-1302 until the statement of dissolution and final
             158      summary report required by Section 20A-11-1304 are filed with:
             159          (a) the lieutenant governor in the case of a state school board candidate; and
             160          (b) the county clerk, in the case of a local school board candidate.
             161          (5) (a) Except as provided in Subsection (5)(b) and Section 20A-11-402 , a person who
             162      is no longer a school board candidate may not expend or transfer the money in a campaign
             163      account in a manner that would cause the former school board candidate to recognize the
             164      money as taxable income under federal tax law.
             165          (b) A person who is no longer a school board candidate may transfer the money in a
             166      campaign account in a manner that would cause the former school board candidate to recognize
             167      the money as taxable income under federal tax law if the transfer is made to a campaign
             168      account for federal office.
             169          (6) (a) As used in this Subsection (6) and Section 20A-11-1303 , "received" means:
             170          (i) for a cash contribution, that the cash is given to a school board office candidate or a
             171      member of the candidate's personal campaign committee;
             172          (ii) for a contribution that is a negotiable instrument or check, that the negotiable
             173      instrument or check is negotiated; and
             174          (iii) for any other type of contribution, that any portion of the contribution's benefit
             175      inures to the school board office candidate.
             176          (b) Each school board office candidate shall report to the chief election officer each
             177      contribution and public service assistance within 30 days after the contribution or public
             178      service assistance is received.
             179          (7) (a) As used in this Subsection (7), "account" means an account in a financial
             180      institution:
             181          (i) that is not described in Subsection (1)(a)(i); and
             182          (ii) into which or from which a person who, as a candidate for an office, other than a


             183      school board office for which the person files a declaration of candidacy or federal office, or as
             184      a holder of an office, other than a school board office for which the person files a declaration of
             185      candidacy or federal office, deposits a contribution or makes an expenditure.
             186          (b) A school board office candidate shall include on any financial statement filed in
             187      accordance with this part:
             188          (i) a contribution deposited in an account:
             189          (A) since the last campaign finance statement was filed; or
             190          (B) that has not been reported under a statute or ordinance that governs the account; or
             191          (ii) an expenditure made from an account:
             192          (A) since the last campaign finance statement was filed; or
             193          (B) that has not been reported under a statute or ordinance that governs the account.
             194          (8) A school board office candidate may not, during any two-year period, accept total
             195      contributions from the same individual or source in an amount of $9,999 or more.
             196          Section 4. Section 20A-12-303 is amended to read:
             197           20A-12-303. Separate account for campaign funds -- Reporting contributions.
             198          (1) The judge or the judge's personal campaign committee shall deposit each
             199      contribution in one or more separate personal campaign accounts in a financial institution.
             200          (2) The judge or the judge's personal campaign committee may not deposit or mingle
             201      any contributions received into a personal or business account.
             202          (3) (a) As used in this Subsection (3) and Section 20A-12-305 , "received" means:
             203          (i) for a cash contribution, that the cash is given to a judge or the judge's personal
             204      campaign committee;
             205          (ii) for a contribution that is a negotiable instrument or check, that the negotiable
             206      instrument or check is negotiated; and
             207          (iii) for any other type of contribution, that any portion of the contribution's benefit
             208      inures to the judge.
             209          (b) The judge or the judge's personal campaign committee shall report to the lieutenant
             210      governor each contribution within 30 days after the contribution is received.
             211          (4) A judge may not, during any two-year period, accept total contributions from the
             212      same individual or source in an amount of $9,999 or more.





Legislative Review Note
    as of 3-5-13 6:06 PM


Office of Legislative Research and General Counsel


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