First Substitute H.B. 246

This document includes House Committee Amendments incorporated into the bill on Mon, Feb 24, 2014 at 3:12 PM by jeyring. -->

Representative Craig Hall proposes the following substitute bill:


             1     
FAILURE TO REPORT CONTRIBUTIONS OR PUBLIC

             2     
SERVICE ASSISTANCE

             3     
2014 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Craig Hall

             6     
Senate Sponsor: Todd Weiler

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill amends provisions of the Election Code by imposing a penalty for failure to
             11      report contributions or public service assistance within the 30-day period required by
             12      law.
             13      Highlighted Provisions:
             14          This bill:
             15          .    imposes a penalty for a state office candidate, a legislative office candidate, a school
             16      board office candidate, or a judge, that fails to report contributions or public service
             17      assistance, as applicable, within the 30-day period required by law; and
             18          .    provides for publication of information relating to a penalty described in the
             19      preceding paragraph.
             20      Money Appropriated in this Bill:
             21          None
             22      Other Special Clauses:
             23          This bill provides an immediate effective date.
             24      Utah Code Sections Affected:
             25      AMENDS:


             26           20A-11-201 , as last amended by Laws of Utah 2012, Chapter 230
             27           20A-11-301 , as last amended by Laws of Utah 2012, Chapter 230
             28           20A-11-1301 , as last amended by Laws of Utah 2012, Chapter 230
             29           20A-12-303 , as last amended by Laws of Utah 2011, Chapter 396
             30     
             31      Be it enacted by the Legislature of the state of Utah:
             32          Section 1. Section 20A-11-201 is amended to read:
             33           20A-11-201. State office candidate -- Separate bank account for campaign funds
             34      -- No personal use -- Report contributions within 30 days -- Report other accounts.
             35          (1) (a) Each state office candidate or the candidate's personal campaign committee
             36      shall deposit each contribution and public service assistance received in one or more separate
             37      campaign accounts in a financial institution.
             38          (b) A state office candidate or a candidate's personal campaign committee may not use
             39      money deposited in a campaign account for:
             40          (i) a personal use expenditure; or
             41          (ii) an expenditure prohibited by law.
             42          (2) A state office candidate or the candidate's personal campaign committee may not
             43      deposit or mingle any contributions received into a personal or business account.
             44          (3) If a person who is no longer a state office candidate chooses not to expend the
             45      money remaining in a campaign account, the person shall continue to file the year-end
             46      summary report required by Section 20A-11-203 until the statement of dissolution and final
             47      summary report required by Section 20A-11-205 are filed with the lieutenant governor.
             48          (4) (a) Except as provided in Subsection (4)(b) and Section 20A-11-402 , a person who
             49      is no longer a state office candidate may not expend or transfer the money in a campaign
             50      account in a manner that would cause the former state office candidate to recognize the money
             51      as taxable income under federal tax law.
             52          (b) A person who is no longer a state office candidate may transfer the money in a
             53      campaign account in a manner that would cause the former state office candidate to recognize
             54      the money as taxable income under federal tax law if the transfer is made to a campaign
             55      account for federal office.
             56          (5) (a) As used in this Subsection (5) and Section 20A-11-204 , "received" means:


             57          (i) for a cash contribution, that the cash is given to a state office candidate or a member
             58      of the candidate's personal campaign committee;
             59          (ii) for a contribution that is a negotiable instrument or check, that the negotiable
             60      instrument or check is negotiated; and
             61          (iii) for any other type of contribution, that any portion of the contribution's benefit
             62      inures to the state office candidate.
             63          (b) Each state office candidate shall report each contribution and public service
             64      assistance to the lieutenant governor within 30 days after the contribution or public service
             65      assistance is received.
             66          (c) Except as provided in Subsection (5)(d), for each contribution or provision of
             67      public service assistance that a state office candidate fails to report within the 30-day time
             68      period described in Subsection (5)(b), the lieutenant governor shall impose a fine against the
             69      state office candidate in an amount equal to:
             70          (i) the greater of $50 or 15% of the amount of the contribution; or
             71          (ii) the greater of $50 or 15% of the value of the public service assistance.
             72          (d) A fine described in Subsection (5)(c) may not exceed the amount of the
             73      contribution or the value of the public service assistance to which the fine relates.
             74          (e) The lieutenant governor shall:
             75          (i) deposit money received under Subsection (5)(c) into the General Fund; and
             76          (ii) report on the lieutenant governor's website, in the location where reports relating to
             77      each state office candidate are available for public access:
             78          (A) each fine imposed by the lieutenant governor against the state office candidate;
             79          (B) the amount of the fine;
             80          (C) the amount of the contribution to which the fine relates; H. and .H
             81          (D) the date of the contribution H. [ ; and
             82          (E) the name of the person who made the contribution
] .H
.
             83          (6) (a) As used in this Subsection (6), "account" means an account in a financial
             84      institution:
             85          (i) that is not described in Subsection (1)(a); and
             86          (ii) into which or from which a person who, as a candidate for an office, other than the
             87      state office for which the person files a declaration of candidacy or federal office, or as a holder


             88      of an office, other than a state office for which the person files a declaration of candidacy or
             89      federal office, deposits a contribution or makes an expenditure.
             90          (b) A state office candidate shall include on any financial statement filed in accordance
             91      with this part:
             92          (i) a contribution deposited in an account:
             93          (A) since the last campaign finance statement was filed; or
             94          (B) that has not been reported under a statute or ordinance that governs the account; or
             95          (ii) an expenditure made from an account:
             96          (A) since the last campaign finance statement was filed; or
             97          (B) that has not been reported under a statute or ordinance that governs the account.
             98          Section 2. Section 20A-11-301 is amended to read:
             99           20A-11-301. Legislative office candidate -- Campaign finance requirements --
             100      Candidate as a political action committee officer -- No personal use -- Report
             101      contributions within 30 days -- Report other accounts.
             102          (1) (a) (i) Each legislative office candidate shall deposit each contribution and public
             103      service assistance received in one or more separate accounts in a financial institution that are
             104      dedicated only to that purpose.
             105          (ii) A legislative office candidate may:
             106          (A) receive a contribution or public service assistance from a political action
             107      committee registered under Section 20A-11-601 ; and
             108          (B) be designated by a political action committee as an officer who has primary
             109      decision-making authority as described in Section 20A-11-601 .
             110          (b) A legislative office candidate or the candidate's personal campaign committee may
             111      not use money deposited in an account described in Subsection (1)(a)(i) for:
             112          (i) a personal use expenditure; or
             113          (ii) an expenditure prohibited by law.
             114          (2) A legislative office candidate may not deposit or mingle any contributions or public
             115      service assistance received into a personal or business account.
             116          (3) If a person who is no longer a legislative candidate chooses not to expend the
             117      money remaining in a campaign account, the person shall continue to file the year-end
             118      summary report required by Section 20A-11-302 until the statement of dissolution and final


             119      summary report required by Section 20A-11-304 are filed with the lieutenant governor.
             120          (4) (a) Except as provided in Subsection (4)(b) and Section 20A-11-402 , a person who
             121      is no longer a legislative office candidate may not expend or transfer the money in a campaign
             122      account in a manner that would cause the former legislative office candidate to recognize the
             123      money as taxable income under federal tax law.
             124          (b) A person who is no longer a legislative office candidate may transfer the money in
             125      a campaign account in a manner that would cause the former legislative office candidate to
             126      recognize the money as taxable income under federal tax law if the transfer is made to a
             127      campaign account for federal office.
             128          (5) (a) As used in this Subsection (5) and Section 20A-11-303 , "received" means:
             129          (i) for a cash contribution, that the cash is given to a legislative office candidate or a
             130      member of the candidate's personal campaign committee;
             131          (ii) for a contribution that is a negotiable instrument or check, that the negotiable
             132      instrument or check is negotiated; and
             133          (iii) for any other type of contribution, that any portion of the contribution's benefit
             134      inures to the legislative office candidate.
             135          (b) Each legislative office candidate shall report each contribution and public service
             136      assistance to the lieutenant governor within 30 days after the contribution or public service
             137      assistance is received.
             138          (c) Except as provided in Subsection (5)(d), for each contribution or provision of
             139      public service assistance that a legislative office candidate fails to report within the 30-day time
             140      period described in Subsection (5)(b), the lieutenant governor shall impose a fine against the
             141      legislative office candidate in an amount equal to:
             142          (i) the greater of $50 or 15% of the amount of the contribution; or
             143          (ii) the greater of $50 or 15% of the value of the public service assistance.
             144          (d) A fine described in Subsection (5)(c) may not exceed the amount of the
             145      contribution or the value of the public service assistance to which the fine relates.
             146          (e) The lieutenant governor shall:
             147          (i) deposit money received under Subsection (5)(c) into the General Fund; and
             148          (ii) report on the lieutenant governor's website, in the location where reports relating to
             149      each legislative office candidate are available for public access:


             150          (A) each fine imposed by the lieutenant governor against the legislative office
             151      candidate;
             152          (B) the amount of the fine;
             153          (C) the amount of the contribution to which the fine relates; H. and .H
             154          (D) the date of the contribution H. [ ; and
             155          (E) the name of the person who made the contribution
] .H
.
             156          (6) (a) As used in this Subsection (6), "account" means an account in a financial
             157      institution:
             158          (i) that is not described in Subsection (1)(a)(i); and
             159          (ii) into which or from which a person who, as a candidate for an office, other than a
             160      legislative office for which the person files a declaration of candidacy or federal office, or as a
             161      holder of an office, other than a legislative office for which the person files a declaration of
             162      candidacy or federal office, deposits a contribution or makes an expenditure.
             163          (b) A legislative office candidate shall include on any financial statement filed in
             164      accordance with this part:
             165          (i) a contribution deposited in an account:
             166          (A) since the last campaign finance statement was filed; or
             167          (B) that has not been reported under a statute or ordinance that governs the account; or
             168          (ii) an expenditure made from an account:
             169          (A) since the last campaign finance statement was filed; or
             170          (B) that has not been reported under a statute or ordinance that governs the account.
             171          Section 3. Section 20A-11-1301 is amended to read:
             172           20A-11-1301. School board office candidate -- Campaign finance requirements --
             173      Candidate as a political action committee officer -- No personal use -- Report
             174      contributions within 30 days -- Report other accounts.
             175          (1) (a) (i) Each school board office candidate shall deposit each contribution and public
             176      service assistance received in one or more separate accounts in a financial institution that are
             177      dedicated only to that purpose.
             178          (ii) A school board office candidate may:
             179          (A) receive a contribution or public service assistance from a political action
             180      committee registered under Section 20A-11-601 ; and


             181          (B) be designated by a political action committee as an officer who has primary
             182      decision-making authority as described in Section 20A-11-601 .
             183          (b) A school board office candidate may not use money deposited in an account
             184      described in Subsection (1)(a)(i) for:
             185          (i) a personal use expenditure; or
             186          (ii) an expenditure prohibited by law.
             187          (2) A school board office candidate may not deposit or mingle any contributions or
             188      public service assistance received into a personal or business account.
             189          (3) A school board office candidate may not make any political expenditures prohibited
             190      by law.
             191          (4) If a person who is no longer a school board candidate chooses not to expend the
             192      money remaining in a campaign account, the person shall continue to file the year-end
             193      summary report required by Section 20A-11-1302 until the statement of dissolution and final
             194      summary report required by Section 20A-11-1304 are filed with:
             195          (a) the lieutenant governor in the case of a state school board candidate; and
             196          (b) the county clerk, in the case of a local school board candidate.
             197          (5) (a) Except as provided in Subsection (5)(b) and Section 20A-11-402 , a person who
             198      is no longer a school board candidate may not expend or transfer the money in a campaign
             199      account in a manner that would cause the former school board candidate to recognize the
             200      money as taxable income under federal tax law.
             201          (b) A person who is no longer a school board candidate may transfer the money in a
             202      campaign account in a manner that would cause the former school board candidate to recognize
             203      the money as taxable income under federal tax law if the transfer is made to a campaign
             204      account for federal office.
             205          (6) (a) As used in this Subsection (6) and Section 20A-11-1303 , "received" means:
             206          (i) for a cash contribution, that the cash is given to a school board office candidate or a
             207      member of the candidate's personal campaign committee;
             208          (ii) for a contribution that is a negotiable instrument or check, that the negotiable
             209      instrument or check is negotiated; and
             210          (iii) for any other type of contribution, that any portion of the contribution's benefit
             211      inures to the school board office candidate.


             212          (b) Each school board office candidate shall report to the chief election officer each
             213      contribution and public service assistance within 30 days after the contribution or public
             214      service assistance is received.
             215          (c) Except as provided in Subsection (6)(d), for each contribution or provision of
             216      public service assistance that a school board office candidate fails to report within the 30-day
             217      time period described in Subsection (6)(b), the chief election officer shall impose a fine against
             218      the school board office candidate in an amount equal to:
             219          (i) the greater of $50 or 15% of the amount of the contribution; or
             220          (ii) the greater of $50 or 15% of the value of the public service assistance.
             221          (d) A fine described in Subsection (6)(c) may not exceed the amount of the
             222      contribution or the value of the public service assistance to which the fine relates.
             223          (e) The chief election officer shall:
             224          (i) deposit money received under Subsection (6)(c) into the General Fund; and
             225          (ii) report on the chief election officer's website, in the location where reports relating
             226      to each school board office candidate are available for public access:
             227          (A) each fine imposed by the chief election officer against the school board office
             228      candidate;
             229          (B) the amount of the fine;
             230          (C) the amount of the contribution to which the fine relates; H. and .H
             231          (D) the date of the contribution H. [ ; and
             232          (E) the name of the person who made the contribution
] .H
.
             233          (7) (a) As used in this Subsection (7), "account" means an account in a financial
             234      institution:
             235          (i) that is not described in Subsection (1)(a)(i); and
             236          (ii) into which or from which a person who, as a candidate for an office, other than a
             237      school board office for which the person files a declaration of candidacy or federal office, or as
             238      a holder of an office, other than a school board office for which the person files a declaration of
             239      candidacy or federal office, deposits a contribution or makes an expenditure.
             240          (b) A school board office candidate shall include on any financial statement filed in
             241      accordance with this part:
             242          (i) a contribution deposited in an account:


             243          (A) since the last campaign finance statement was filed; or
             244          (B) that has not been reported under a statute or ordinance that governs the account; or
             245          (ii) an expenditure made from an account:
             246          (A) since the last campaign finance statement was filed; or
             247          (B) that has not been reported under a statute or ordinance that governs the account.
             248          Section 4. Section 20A-12-303 is amended to read:
             249           20A-12-303. Separate account for campaign funds -- Reporting contributions.
             250          (1) The judge or the judge's personal campaign committee shall deposit each
             251      contribution in one or more separate personal campaign accounts in a financial institution.
             252          (2) The judge or the judge's personal campaign committee may not deposit or mingle
             253      any contributions received into a personal or business account.
             254          (3) (a) As used in this Subsection (3) and Section 20A-12-305 , "received" means:
             255          (i) for a cash contribution, that the cash is given to a judge or the judge's personal
             256      campaign committee;
             257          (ii) for a contribution that is a negotiable instrument or check, that the negotiable
             258      instrument or check is negotiated; and
             259          (iii) for any other type of contribution, that any portion of the contribution's benefit
             260      inures to the judge.
             261          (b) The judge or the judge's personal campaign committee shall report to the lieutenant
             262      governor each contribution within 30 days after the contribution is received.
             263          (c) Except as provided in Subsection (3)(d), for each contribution that a judge fails to
             264      report within the 30-day time period described in Subsection (3)(b), the lieutenant governor
             265      shall impose a fine against the judge in an amount equal to the greater of $50 or 15% of the
             266      amount of the contribution.
             267          (d) A fine described in Subsection (3)(c) may not exceed the amount of the
             268      contribution to which the fine relates.
             269          (e) The lieutenant governor shall:
             270          (i) deposit money received under Subsection (3)(c) into the General Fund; and
             271          (ii) report on the lieutenant governor's website, in the location where reports relating to
             272      each judge are available for public access:
             273          (A) each fine imposed by the lieutenant governor against the judge;


             274          (B) the amount of the fine;
             275          (C) the amount of the contribution to which the fine relates; H. and .H
             276          (D) the date of the contribution H. [ ; and
             277          (E) the name of the person who made the contribution
] .H
.
             278          Section 5. Effective date.
             279          If approved by two-thirds of all the members elected to each house, this bill takes effect
             280      upon approval by the governor, or the day following the constitutional time limit of Utah
             281      Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto,
             282      the date of veto override.


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