Third Substitute H.B. 246

Senator Curtis S. Bramble proposes the following substitute bill:


             1     
GOVERNMENT ETHICS REVISIONS

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Craig Hall

             5     
Senate Sponsor: Curtis S. Bramble

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill amends provisions of the Election Code and the Lobbyist Disclosure and
             10      Regulation Act.
             11      Highlighted Provisions:
             12          This bill:
             13          .    defines terms;
             14          .    requires the chief election officer to provide notice to each filing entity, for which
             15      the chief election officer has a physical or email address, of the reporting and filing
             16      requirements described in Title 20A, Chapter 11, Campaign and Financial
             17      Reporting Requirements;
             18          .    imposes a penalty for a state office candidate, a legislative office candidate, a school
             19      board office candidate, or a judge, who fails to report contributions or public service
             20      assistance, as applicable, within the time period required by law;
             21          .    provides for publication of information relating to a penalty described in the
             22      preceding paragraph;
             23          .    reduces from 30 days to three business days, under certain circumstances, the
             24      deadline by which a state office candidate, a legislative office candidate, a school
             25      board office candidate, or a judge is required to report contributions or public


             26      service assistance;
             27          .    requires that the Legislature's website include, for each legislative officeholder, a
             28      link to the financial reports maintained on the lieutenant governor's website in
             29      relation to that legislative officeholder;
             30          .    amends provisions of the Lobbyist Disclosure and Regulation Act by:
             31              .    requiring a lobbyist to, at the beginning of making a communication to a public
             32      official that constitutes lobbying, inform the public official of the identity of the
             33      principal on whose behalf the lobbyist is lobbying; and
             34              .    modifying penalty provisions; and
             35          .    makes technical and conforming changes.
             36      Money Appropriated in this Bill:
             37          None
             38      Other Special Clauses:
             39          None
             40      Utah Code Sections Affected:
             41      AMENDS:
             42           20A-11-103 , as last amended by Laws of Utah 2012, Chapter 369
             43           20A-11-201 , as last amended by Laws of Utah 2012, Chapter 230
             44           20A-11-301 , as last amended by Laws of Utah 2012, Chapter 230
             45           20A-11-1301 , as last amended by Laws of Utah 2012, Chapter 230
             46           20A-12-303 , as last amended by Laws of Utah 2011, Chapter 396
             47           36-11-401 , as last amended by Laws of Utah 2011, Chapter 389
             48      ENACTS:
             49           20A-11-1604 , Utah Code Annotated 1953
             50           36-11-305.5 , Utah Code Annotated 1953
             51     
             52      Be it enacted by the Legislature of the state of Utah:
             53          Section 1. Section 20A-11-103 is amended to read:
             54           20A-11-103. Notice of pending interim and summary reports -- Form of
             55      submission -- Public availability -- Notice of reporting and filing requirements.
             56          (1) (a) Except as provided under Subsection (1)(b), 10 days before an interim report or


             57      summary report is due under this chapter or Chapter 12, Part 2, Judicial Retention Elections,
             58      the chief election officer shall inform the filing entity by postal mail or, if requested by the
             59      filing entity, by electronic mail:
             60          (i) that the financial statement is due;
             61          (ii) of the date that the financial statement is due; and
             62          (iii) of the penalty for failing to file the financial statement.
             63          (b) The chief election officer is not required to provide notice:
             64          (i) to a candidate or political party of the financial statement that is due before the
             65      candidate's or political party's political convention;
             66          (ii) of a financial statement due in connection with a public hearing for an initiative
             67      under the requirements of Section 20A-7-204.1 ; or
             68          (iii) to a corporation or labor organization, as defined in Section 20A-11-1501 .
             69          (2) A filing entity shall electronically file a financial statement via electronic mail or
             70      the Internet according to specifications established by the chief election officer.
             71          (3) (a) A financial statement is considered timely filed if it is received by the chief
             72      election officer's office before the close of regular office hours on the date that it is due.
             73          (b) A chief election officer may extend the time in which a filing entity is required to
             74      file a financial statement if a filing entity notifies the chief election officer of the existence of
             75      an extenuating circumstance that is outside the control of the filing entity.
             76          (4) Notwithstanding any provision of Title 63G, Chapter 2, Government Records
             77      Access and Management Act, the lieutenant governor shall:
             78          (a) make each campaign finance statement filed by a candidate available for public
             79      inspection and copying no later than one business day after the statement is filed; and
             80          (b) post an electronic copy or the contents of each financial statement in a searchable
             81      format on a website established by the lieutenant governor:
             82          (i) for campaign finance statements submitted to the lieutenant governor under the
             83      requirements of Section 10-3-208 or Section 17-16-6.5 , no later than seven business days after
             84      the date of receipt of the campaign finance statement; or
             85          (ii) for a summary report or interim report filed under the requirements of this chapter
             86      or Chapter 12, Part 2, Judicial Retention Elections, no later than three business days after the
             87      date the summary report or interim report is electronically filed.


             88          (5) If a municipality, under Section 10-3-208 , or a county, under Section 17-16-6.5 ,
             89      elects to provide campaign finance disclosure on its own website, rather than through the
             90      lieutenant governor, the website established by the lieutenant governor shall contain a link or
             91      other access point to the municipality or county website.
             92          (6) Between January 1 and January 15 of each year, the chief election officer shall
             93      provide notice, by postal mail or email, to each filing entity for which the chief election officer
             94      has a physical or email address, of the reporting and filing requirements described in this
             95      chapter.
             96          Section 2. Section 20A-11-201 is amended to read:
             97           20A-11-201. State office candidate -- Separate bank account for campaign funds
             98      -- No personal use -- Contribution reporting deadline -- Report other accounts.
             99          (1) (a) Each state office candidate or the candidate's personal campaign committee
             100      shall deposit each contribution and public service assistance received in one or more separate
             101      campaign accounts in a financial institution.
             102          (b) A state office candidate or a candidate's personal campaign committee may not use
             103      money deposited in a campaign account for:
             104          (i) a personal use expenditure; or
             105          (ii) an expenditure prohibited by law.
             106          (2) A state office candidate or the candidate's personal campaign committee may not
             107      deposit or mingle any contributions received into a personal or business account.
             108          (3) If a person who is no longer a state office candidate chooses not to expend the
             109      money remaining in a campaign account, the person shall continue to file the year-end
             110      summary report required by Section 20A-11-203 until the statement of dissolution and final
             111      summary report required by Section 20A-11-205 are filed with the lieutenant governor.
             112          (4) (a) Except as provided in Subsection (4)(b) and Section 20A-11-402 , a person who
             113      is no longer a state office candidate may not expend or transfer the money in a campaign
             114      account in a manner that would cause the former state office candidate to recognize the money
             115      as taxable income under federal tax law.
             116          (b) A person who is no longer a state office candidate may transfer the money in a
             117      campaign account in a manner that would cause the former state office candidate to recognize
             118      the money as taxable income under federal tax law if the transfer is made to a campaign


             119      account for federal office.
             120          (5) (a) As used in this Subsection (5) and Section 20A-11-204 , "received" means:
             121          (i) for a cash contribution, that the cash is given to a state office candidate or a member
             122      of the candidate's personal campaign committee;
             123          (ii) for a contribution that is a negotiable instrument or check, that the negotiable
             124      instrument or check is negotiated; and
             125          (iii) for any other type of contribution, that any portion of the contribution's benefit
             126      inures to the state office candidate.
             127          (b) Each state office candidate shall report to the lieutenant governor each contribution
             128      and public service assistance [to the lieutenant governor] received by the state office candidate:
             129          (i) except as provided in Subsection (5)(b)(ii), within 30 days after the day on which
             130      the contribution or public service assistance is received[.]; or
             131          (ii) within three business days after the day on which the contribution or public service
             132      assistance is received, if the contribution or public service assistance is received within:
             133          (A) 30 days before the day of the primary election or general election; or
             134          (B) 30 days before the day on which the state office candidate's political party's
             135      convention, for the office for which the state office candidate is running, is held.
             136          (c) Except as provided in Subsection (5)(d), for each contribution or provision of
             137      public service assistance that a state office candidate fails to report within the time period
             138      described in Subsection (5)(b), the lieutenant governor shall impose a fine against the state
             139      office candidate in an amount equal to:
             140          (i) the greater of $50 or 15% of the amount of the contribution; or
             141          (ii) the greater of $50 or 15% of the value of the public service assistance.
             142          (d) A fine described in Subsection (5)(c) may not exceed the amount of the
             143      contribution or the value of the public service assistance to which the fine relates.
             144          (e) The lieutenant governor shall:
             145          (i) deposit money received under Subsection (5)(c) into the General Fund; and
             146          (ii) report on the lieutenant governor's website, in the location where reports relating to
             147      each state office candidate are available for public access:
             148          (A) each fine imposed by the lieutenant governor against the state office candidate;
             149          (B) the amount of the fine;


             150          (C) the amount of the contribution to which the fine relates; and
             151          (D) the date of the contribution.
             152          (6) (a) As used in this Subsection (6), "account" means an account in a financial
             153      institution:
             154          (i) that is not described in Subsection (1)(a); and
             155          (ii) into which or from which a person who, as a candidate for an office, other than the
             156      state office for which the person files a declaration of candidacy or federal office, or as a holder
             157      of an office, other than a state office for which the person files a declaration of candidacy or
             158      federal office, deposits a contribution or makes an expenditure.
             159          (b) A state office candidate shall include on any financial statement filed in accordance
             160      with this part:
             161          (i) a contribution deposited in an account:
             162          (A) since the last campaign finance statement was filed; or
             163          (B) that has not been reported under a statute or ordinance that governs the account; or
             164          (ii) an expenditure made from an account:
             165          (A) since the last campaign finance statement was filed; or
             166          (B) that has not been reported under a statute or ordinance that governs the account.
             167          Section 3. Section 20A-11-301 is amended to read:
             168           20A-11-301. Legislative office candidate -- Campaign finance requirements --
             169      Candidate as a political action committee officer -- No personal use -- Contribution
             170      reporting deadline -- Report other accounts.
             171          (1) (a) (i) Each legislative office candidate shall deposit each contribution and public
             172      service assistance received in one or more separate accounts in a financial institution that are
             173      dedicated only to that purpose.
             174          (ii) A legislative office candidate may:
             175          (A) receive a contribution or public service assistance from a political action
             176      committee registered under Section 20A-11-601 ; and
             177          (B) be designated by a political action committee as an officer who has primary
             178      decision-making authority as described in Section 20A-11-601 .
             179          (b) A legislative office candidate or the candidate's personal campaign committee may
             180      not use money deposited in an account described in Subsection (1)(a)(i) for:


             181          (i) a personal use expenditure; or
             182          (ii) an expenditure prohibited by law.
             183          (2) A legislative office candidate may not deposit or mingle any contributions or public
             184      service assistance received into a personal or business account.
             185          (3) If a person who is no longer a legislative candidate chooses not to expend the
             186      money remaining in a campaign account, the person shall continue to file the year-end
             187      summary report required by Section 20A-11-302 until the statement of dissolution and final
             188      summary report required by Section 20A-11-304 are filed with the lieutenant governor.
             189          (4) (a) Except as provided in Subsection (4)(b) and Section 20A-11-402 , a person who
             190      is no longer a legislative office candidate may not expend or transfer the money in a campaign
             191      account in a manner that would cause the former legislative office candidate to recognize the
             192      money as taxable income under federal tax law.
             193          (b) A person who is no longer a legislative office candidate may transfer the money in
             194      a campaign account in a manner that would cause the former legislative office candidate to
             195      recognize the money as taxable income under federal tax law if the transfer is made to a
             196      campaign account for federal office.
             197          (5) (a) As used in this Subsection (5) and Section 20A-11-303 , "received" means:
             198          (i) for a cash contribution, that the cash is given to a legislative office candidate or a
             199      member of the candidate's personal campaign committee;
             200          (ii) for a contribution that is a negotiable instrument or check, that the negotiable
             201      instrument or check is negotiated; and
             202          (iii) for any other type of contribution, that any portion of the contribution's benefit
             203      inures to the legislative office candidate.
             204          (b) Each legislative office candidate shall report to the lieutenant governor each
             205      contribution and public service assistance [to the lieutenant governor] received by the
             206      legislative office candidate:
             207          (i) except as provided in Subsection (5)(b)(ii), within 30 days after the day on which
             208      the contribution or public service assistance is received[.]; or
             209          (ii) within three business days after the day on which the contribution or public service
             210      assistance is received, if the contribution or public service assistance is received within:
             211          (A) 30 days before the day of the primary election or general election; or


             212          (B) 30 days before the day on which the legislative office candidate's political party's
             213      convention, for the office for which the legislative office candidate is running, is held.
             214          (c) Except as provided in Subsection (5)(d), for each contribution or provision of
             215      public service assistance that a legislative office candidate fails to report within the time period
             216      described in Subsection (5)(b), the lieutenant governor shall impose a fine against the
             217      legislative office candidate in an amount equal to:
             218          (i) the greater of $50 or 15% of the amount of the contribution; or
             219          (ii) the greater of $50 or 15% of the value of the public service assistance.
             220          (d) A fine described in Subsection (5)(c) may not exceed the amount of the
             221      contribution or the value of the public service assistance to which the fine relates.
             222          (e) The lieutenant governor shall:
             223          (i) deposit money received under Subsection (5)(c) into the General Fund; and
             224          (ii) report on the lieutenant governor's website, in the location where reports relating to
             225      each legislative office candidate are available for public access:
             226          (A) each fine imposed by the lieutenant governor against the legislative office
             227      candidate;
             228          (B) the amount of the fine;
             229          (C) the amount of the contribution to which the fine relates; and
             230          (D) the date of the contribution.
             231          (6) (a) As used in this Subsection (6), "account" means an account in a financial
             232      institution:
             233          (i) that is not described in Subsection (1)(a)(i); and
             234          (ii) into which or from which a person who, as a candidate for an office, other than a
             235      legislative office for which the person files a declaration of candidacy or federal office, or as a
             236      holder of an office, other than a legislative office for which the person files a declaration of
             237      candidacy or federal office, deposits a contribution or makes an expenditure.
             238          (b) A legislative office candidate shall include on any financial statement filed in
             239      accordance with this part:
             240          (i) a contribution deposited in an account:
             241          (A) since the last campaign finance statement was filed; or
             242          (B) that has not been reported under a statute or ordinance that governs the account; or


             243          (ii) an expenditure made from an account:
             244          (A) since the last campaign finance statement was filed; or
             245          (B) that has not been reported under a statute or ordinance that governs the account.
             246          Section 4. Section 20A-11-1301 is amended to read:
             247           20A-11-1301. School board office candidate -- Campaign finance requirements --
             248      Candidate as a political action committee officer -- No personal use -- Contribution
             249      reporting deadline -- Report other accounts.
             250          (1) (a) (i) Each school board office candidate shall deposit each contribution and public
             251      service assistance received in one or more separate accounts in a financial institution that are
             252      dedicated only to that purpose.
             253          (ii) A school board office candidate may:
             254          (A) receive a contribution or public service assistance from a political action
             255      committee registered under Section 20A-11-601 ; and
             256          (B) be designated by a political action committee as an officer who has primary
             257      decision-making authority as described in Section 20A-11-601 .
             258          (b) A school board office candidate may not use money deposited in an account
             259      described in Subsection (1)(a)(i) for:
             260          (i) a personal use expenditure; or
             261          (ii) an expenditure prohibited by law.
             262          (2) A school board office candidate may not deposit or mingle any contributions or
             263      public service assistance received into a personal or business account.
             264          (3) A school board office candidate may not make any political expenditures prohibited
             265      by law.
             266          (4) If a person who is no longer a school board candidate chooses not to expend the
             267      money remaining in a campaign account, the person shall continue to file the year-end
             268      summary report required by Section 20A-11-1302 until the statement of dissolution and final
             269      summary report required by Section 20A-11-1304 are filed with:
             270          (a) the lieutenant governor in the case of a state school board candidate; and
             271          (b) the county clerk, in the case of a local school board candidate.
             272          (5) (a) Except as provided in Subsection (5)(b) and Section 20A-11-402 , a person who
             273      is no longer a school board candidate may not expend or transfer the money in a campaign


             274      account in a manner that would cause the former school board candidate to recognize the
             275      money as taxable income under federal tax law.
             276          (b) A person who is no longer a school board candidate may transfer the money in a
             277      campaign account in a manner that would cause the former school board candidate to recognize
             278      the money as taxable income under federal tax law if the transfer is made to a campaign
             279      account for federal office.
             280          (6) (a) As used in this Subsection (6) and Section 20A-11-1303 , "received" means:
             281          (i) for a cash contribution, that the cash is given to a school board office candidate or a
             282      member of the candidate's personal campaign committee;
             283          (ii) for a contribution that is a negotiable instrument or check, that the negotiable
             284      instrument or check is negotiated; and
             285          (iii) for any other type of contribution, that any portion of the contribution's benefit
             286      inures to the school board office candidate.
             287          (b) Each school board office candidate shall report to the chief election officer each
             288      contribution and public service assistance received by the school board office candidate:
             289          (i) except as provided in Subsection (6)(b)(ii), within 30 days after the day on which
             290      the contribution or public service assistance is received[.]; or
             291          (ii) within three business days after the day on which the contribution or public service
             292      assistance is received, if the contribution or public service assistance is received within 30 days
             293      before the day of the general election.
             294          (c) Except as provided in Subsection (6)(d), for each contribution or provision of
             295      public service assistance that a school board office candidate fails to report within the time
             296      period described in Subsection (6)(b), the chief election officer shall impose a fine against the
             297      school board office candidate in an amount equal to:
             298          (i) the greater of $50 or 15% of the amount of the contribution; or
             299          (ii) the greater of $50 or 15% of the value of the public service assistance.
             300          (d) A fine described in Subsection (6)(c) may not exceed the amount of the
             301      contribution or the value of the public service assistance to which the fine relates.
             302          (e) The chief election officer shall:
             303          (i) deposit money received under Subsection (6)(c) into the General Fund; and
             304          (ii) report on the chief election officer's website, in the location where reports relating


             305      to each school board office candidate are available for public access:
             306          (A) each fine imposed by the chief election officer against the school board office
             307      candidate;
             308          (B) the amount of the fine;
             309          (C) the amount of the contribution to which the fine relates; and
             310          (D) the date of the contribution.
             311          (7) (a) As used in this Subsection (7), "account" means an account in a financial
             312      institution:
             313          (i) that is not described in Subsection (1)(a)(i); and
             314          (ii) into which or from which a person who, as a candidate for an office, other than a
             315      school board office for which the person files a declaration of candidacy or federal office, or as
             316      a holder of an office, other than a school board office for which the person files a declaration of
             317      candidacy or federal office, deposits a contribution or makes an expenditure.
             318          (b) A school board office candidate shall include on any financial statement filed in
             319      accordance with this part:
             320          (i) a contribution deposited in an account:
             321          (A) since the last campaign finance statement was filed; or
             322          (B) that has not been reported under a statute or ordinance that governs the account; or
             323          (ii) an expenditure made from an account:
             324          (A) since the last campaign finance statement was filed; or
             325          (B) that has not been reported under a statute or ordinance that governs the account.
             326          Section 5. Section 20A-11-1604 is enacted to read:
             327          20A-11-1604. Link to financial reports on Legislature's website.
             328          The Legislature's website shall include, for each legislative officeholder, a link to the
             329      financial reports maintained on the lieutenant governor's website in relation to that legislative
             330      officeholder.
             331          Section 6. Section 20A-12-303 is amended to read:
             332           20A-12-303. Separate account for campaign funds -- Reporting contributions.
             333          (1) The judge or the judge's personal campaign committee shall deposit each
             334      contribution in one or more separate personal campaign accounts in a financial institution.
             335          (2) The judge or the judge's personal campaign committee may not deposit or mingle


             336      any contributions received into a personal or business account.
             337          (3) (a) As used in this Subsection (3) and Section 20A-12-305 , "received" means:
             338          (i) for a cash contribution, that the cash is given to a judge or the judge's personal
             339      campaign committee;
             340          (ii) for a contribution that is a negotiable instrument or check, that the negotiable
             341      instrument or check is negotiated; and
             342          (iii) for any other type of contribution, that any portion of the contribution's benefit
             343      inures to the judge.
             344          (b) The judge or the judge's personal campaign committee shall report to the lieutenant
             345      governor each contribution received by the judge:
             346          (i) except as provided in Subsection (3)(b)(ii), within 30 days after the day on which
             347      the contribution is received[.]; or
             348          (ii) within three business days after the day on which the contribution is received, if the
             349      contribution is received within 30 days before the day of the retention election.
             350          (c) Except as provided in Subsection (3)(d), for each contribution that a judge fails to
             351      report within the time period described in Subsection (3)(b), the lieutenant governor shall
             352      impose a fine against the judge in an amount equal to the greater of $50 or 15% of the amount
             353      of the contribution.
             354          (d) A fine described in Subsection (3)(c) may not exceed the amount of the
             355      contribution to which the fine relates.
             356          (e) The lieutenant governor shall:
             357          (i) deposit money received under Subsection (3)(c) into the General Fund; and
             358          (ii) report on the lieutenant governor's website, in the location where reports relating to
             359      each judge are available for public access:
             360          (A) each fine imposed by the lieutenant governor against the judge;
             361          (B) the amount of the fine;
             362          (C) the amount of the contribution to which the fine relates; and
             363          (D) the date of the contribution.
             364          Section 7. Section 36-11-305.5 is enacted to read:
             365          36-11-305.5. Lobbyist requirements.
             366          A lobbyist shall, at the beginning of making a communication to a public official that


             367      constitutes lobbying, inform the public official of the identity of the principal on whose behalf
             368      the lobbyist is lobbying.
             369          Section 8. Section 36-11-401 is amended to read:
             370           36-11-401. Penalties.
             371          (1) Any person who [willfully and knowingly] intentionally violates Section
             372      36-11-103 , 36-11-201 , 36-11-301 , 36-11-302 , 36-11-303 , 36-11-304 , 36-11-305 , 36-11-308 , or
             373      36-11-403 , is subject to the following penalties:
             374          (a) an administrative penalty of up to $1,000 for each violation; and
             375          (b) for each subsequent violation of that same section within 24 months, either:
             376          (i) an administrative penalty of up to $5,000; or
             377          (ii) suspension of the violator's lobbying license for up to one year, if the person is a
             378      lobbyist.
             379          (2) Any person who [willfully and knowingly] intentionally fails to file a financial
             380      report required by this chapter, omits material information from a license application form or
             381      financial report, or files false information on a license application form or financial report, is
             382      subject to the following penalties:
             383          (a) an administrative penalty of up to $1,000 for each violation; or
             384          (b) suspension of the violator's lobbying license for up to one year, if the person is a
             385      lobbyist.
             386          (3) Any person who [willfully and knowingly] intentionally fails to file a financial
             387      report required by this chapter on the date that it is due shall, in addition to the penalties, if any,
             388      imposed under Subsection (1) or (2), pay a penalty of up to $50 per day for each day that the
             389      report is late.
             390          (4) (a) When a lobbyist is convicted of violating Section 76-8-103 , 76-8-107 , 76-8-108 ,
             391      or 76-8-303 , the lieutenant governor shall suspend the lobbyist's license for up to five years
             392      from the date of the conviction.
             393          (b) When a lobbyist is convicted of violating Section 76-8-104 or 76-8-304 , the
             394      lieutenant governor shall suspend a lobbyist's license for up to one year from the date of
             395      conviction.
             396          (5) (a) Any person who [willfully and knowingly] intentionally violates Section
             397      36-11-301 , 36-11-302 , or 36-11-303 is guilty of a class B misdemeanor.


             398          (b) The lieutenant governor shall suspend the lobbyist license of any person convicted
             399      under any of these sections for up to one year.
             400          (c) The suspension shall be in addition to any administrative penalties imposed by the
             401      lieutenant governor under this section.
             402          (d) Any person with evidence of a possible violation of this chapter may submit that
             403      evidence to the lieutenant governor for investigation and resolution.
             404          (6) A lobbyist who does not complete the training required by Section 36-11-307 is
             405      subject to the following penalties:
             406          (a) an administrative penalty of up to $1,000 for each failure to complete the training
             407      required by Section 36-11-307 ; and
             408          (b) for two or more failures to complete the training required by Section 36-11-307
             409      within 24 months, suspension of the lobbyist's lobbying license.
             410          (7) Nothing in this chapter creates a third-party cause of action or appeal rights.


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