H.B. 297

             1     

CAMPAIGN FINANCE AMENDMENTS

             2     
2014 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 amends Title 20A, Chapter 11, Campaign and Financial Reporting
             10      Requirements, by establishing and enforcing contribution limits.
             11      Highlighted Provisions:
             12          This bill:
             13          .    defines terms;
             14          .    establishes contribution limits;
             15          .    makes it a class A misdemeanor to violate the contribution limits described in this
             16      bill; and
             17          .    makes technical changes.
             18      Money Appropriated in this Bill:
             19          None
             20      Other Special Clauses:
             21          None
             22      Utah Code Sections Affected:
             23      AMENDS:
             24           20A-11-101 , as last amended by Laws of Utah 2013, Chapters 86, 170, 318, and 420
             25      ENACTS:
             26           20A-11-604 , Utah Code Annotated 1953
             27           20A-11-705 , Utah Code Annotated 1953


             28           20A-11-1504 , Utah Code Annotated 1953
             29           20A-11-1701 , Utah Code Annotated 1953
             30           20A-11-1702 , Utah Code Annotated 1953
             31           20A-11-1703 , Utah Code Annotated 1953
             32           20A-11-1704 , Utah Code Annotated 1953
             33     
             34      Be it enacted by the Legislature of the state of Utah:
             35          Section 1. Section 20A-11-101 is amended to read:
             36           20A-11-101. Definitions.
             37          As used in this chapter:
             38          (1) "Address" means the number and street where an individual resides or where a
             39      reporting entity has its principal office.
             40          (2) "Ballot proposition" includes initiatives, referenda, proposed constitutional
             41      amendments, and any other ballot propositions submitted to the voters that are authorized by
             42      the Utah Code [Annotated 1953].
             43          (3) "Candidate" means any person who:
             44          (a) files a declaration of candidacy for a public office; or
             45          (b) receives contributions, makes expenditures, or gives consent for any other person to
             46      receive contributions or make expenditures to bring about the person's nomination or election
             47      to a public office.
             48          (4) "Cash" means currency or coinage that constitutes legal tender.
             49          [(4)] (5) "Chief election officer" means:
             50          (a) the lieutenant governor for state office candidates, legislative office candidates,
             51      officeholders, political parties, political action committees, corporations, political issues
             52      committees, state school board candidates, judges, and labor organizations, as defined in
             53      Section 20A-11-1501 ; and
             54          (b) the county clerk for local school board candidates.
             55          [(5)] (6) (a) "Contribution" means any of the following when done for political
             56      purposes:
             57          (i) a gift, subscription, donation, loan, advance, or deposit of money or anything of
             58      value given to the filing entity;


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


             90      political party.
             91          [(7)] (9) (a) "Corporation" means a domestic or foreign, profit or nonprofit, business
             92      organization that is registered as a corporation or is authorized to do business in a state and
             93      makes any expenditure from corporate funds for:
             94          (i) the purpose of expressly advocating for political purposes; or
             95          (ii) the purpose of expressly advocating the approval or the defeat of any ballot
             96      proposition.
             97          (b) "Corporation" does not mean:
             98          (i) a business organization's political action committee or political issues committee; or
             99          (ii) a business entity organized as a partnership or a sole proprietorship.
             100          [(8)] (10) "County political party" means, for each registered political party, all of the
             101      persons within a single county who, under definitions established by the political party, are
             102      members of the registered political party.
             103          [(9)] (11) "County political party officer" means a person whose name is required to be
             104      submitted by a county political party to the lieutenant governor in accordance with Section
             105      20A-8-402 .
             106          [(10)] (12) "Detailed listing" means:
             107          (a) for each contribution or public service assistance:
             108          (i) the name and address of the individual or source making the contribution or public
             109      service assistance;
             110          (ii) the amount or value of the contribution or public service assistance; and
             111          (iii) the date the contribution or public service assistance was made; and
             112          (b) for each expenditure:
             113          (i) the amount of the expenditure;
             114          (ii) the person or entity to whom it was disbursed;
             115          (iii) the specific purpose, item, or service acquired by the expenditure; and
             116          (iv) the date the expenditure was made.
             117          [(11)] (13) (a) "Donor" means a person that gives money, including a fee, due, or
             118      assessment for membership in the corporation, to a corporation without receiving full and
             119      adequate consideration for the money.
             120          (b) "Donor" does not include a person that signs a statement that the corporation may


             121      not use the money for an expenditure or political issues expenditure.
             122          [(12)] (14) "Election" means each:
             123          (a) regular general election;
             124          (b) regular primary election; and
             125          (c) special election at which candidates are eliminated and selected.
             126          [(13)] (15) "Electioneering communication" means a communication that:
             127          (a) has at least a value of $10,000;
             128          (b) clearly identifies a candidate or judge; and
             129          (c) is disseminated through the Internet, newspaper, magazine, outdoor advertising
             130      facility, direct mailing, broadcast, cable, or satellite provider within 45 days of the clearly
             131      identified candidate's or judge's election date.
             132          [(14)] (16) (a) "Expenditure" means:
             133          (i) any disbursement from contributions, receipts, or from the separate bank account
             134      required by this chapter;
             135          (ii) a purchase, payment, donation, distribution, loan, advance, deposit, gift of money,
             136      or anything of value made for political purposes;
             137          (iii) an express, legally enforceable contract, promise, or agreement to make any
             138      purchase, payment, donation, distribution, loan, advance, deposit, gift of money, or anything of
             139      value for political purposes;
             140          (iv) compensation paid by a filing entity for personal services rendered by a person
             141      without charge to a reporting entity;
             142          (v) a transfer of funds between the filing entity and a candidate's personal campaign
             143      committee; or
             144          (vi) goods or services provided by the filing entity to or for the benefit of another
             145      reporting entity for political purposes at less than fair market value.
             146          (b) "Expenditure" does not include:
             147          (i) services provided without compensation by individuals volunteering a portion or all
             148      of their time on behalf of a reporting entity;
             149          (ii) money lent to a reporting entity by a financial institution in the ordinary course of
             150      business; or
             151          (iii) anything listed in Subsection [(14)] (16)(a) that is given by a reporting entity to


             152      candidates for office or officeholders in states other than Utah.
             153          [(15)] (17) "Federal office" means the office of President of the United States, United
             154      States Senator, or United States Representative.
             155          [(16)] (18) "Filing entity" means the reporting entity that is required to file a financial
             156      statement required by this chapter or Chapter 12, [Part 2, Judicial Retention Elections]
             157      Selection and Election of Judges.
             158          [(17)] (19) "Financial statement" includes any summary report, interim report, verified
             159      financial statement, or other statement disclosing contributions, expenditures, receipts,
             160      donations, or disbursements that is required by this chapter or Chapter 12, [Part 2, Judicial
             161      Retention Elections] Selection and Election of Judges.
             162          [(18)] (20) "Governing board" means the individual or group of individuals that
             163      determine the candidates and committees that will receive expenditures from a political action
             164      committee, political party, or corporation.
             165          [(19)] (21) "Incorporation" means the process established by Title 10, Chapter 2, Part
             166      1, Incorporation, by which a geographical area becomes legally recognized as a city or town.
             167          [(20)] (22) "Incorporation election" means the election authorized by Section 10-2-111 .
             168          [(21)] (23) "Incorporation petition" means a petition authorized by Section 10-2-109 .
             169          [(22)] (24) "Individual" means a natural person.
             170          [(23)] (25) "Interim report" means a report identifying the contributions received and
             171      expenditures made since the last report.
             172          [(24)] (26) "Legislative office" means the office of state senator, state representative,
             173      speaker of the House of Representatives, president of the Senate, and the leader, whip, and
             174      assistant whip of any party caucus in either house of the Legislature.
             175          [(25)] (27) "Legislative office candidate" means a person who:
             176          (a) files a declaration of candidacy for the office of state senator or state representative;
             177          (b) declares oneself to be a candidate for, or actively campaigns for, the position of
             178      speaker of the House of Representatives, president of the Senate, or the leader, whip, and
             179      assistant whip of any party caucus in either house of the Legislature; or
             180          (c) receives contributions, makes expenditures, or gives consent for any other person to
             181      receive contributions or make expenditures to bring about the person's nomination, election, or
             182      appointment to a legislative office.


             183          [(26)] (28) "Major political party" means either of the two registered political parties
             184      that have the greatest number of members elected to the two houses of the Legislature.
             185          [(27)] (29) "Officeholder" means a person who holds a public office.
             186          [(28)] (30) "Party committee" means any committee organized by or authorized by the
             187      governing board of a registered political party.
             188          [(29)] (31) "Person" means both natural and legal persons, including individuals,
             189      business organizations, personal campaign committees, party committees, political action
             190      committees, political issues committees, and labor organizations, as defined in Section
             191      20A-11-1501 .
             192          [(30)] (32) "Personal campaign committee" means the committee appointed by a
             193      candidate to act for the candidate as provided in this chapter.
             194          [(31)] (33) "Personal use expenditure" has the same meaning as provided under Section
             195      20A-11-104 .
             196          [(32)] (34) (a) "Political action committee" means an entity, or any group of
             197      individuals or entities within or outside this state, a major purpose of which is to:
             198          (i) solicit or receive contributions from any other person, group, or entity for political
             199      purposes; or
             200          (ii) make expenditures to expressly advocate for any person to refrain from voting or to
             201      vote for or against any candidate or person seeking election to a municipal or county office.
             202          (b) "Political action committee" includes groups affiliated with a registered political
             203      party but not authorized or organized by the governing board of the registered political party
             204      that receive contributions or makes expenditures for political purposes.
             205          (c) "Political action committee" does not mean:
             206          (i) a party committee;
             207          (ii) any entity that provides goods or services to a candidate or committee in the regular
             208      course of its business at the same price that would be provided to the general public;
             209          (iii) an individual;
             210          (iv) individuals who are related and who make contributions from a joint checking
             211      account;
             212          (v) a corporation, except a corporation a major purpose of which is to act as a political
             213      action committee; or


             214          (vi) a personal campaign committee.
             215          [(33)] (35) "Political convention" means a county or state political convention held by
             216      a registered political party to select candidates.
             217          [(34)] (36) (a) "Political issues committee" means an entity, or any group of individuals
             218      or entities within or outside this state, a major purpose of which is to:
             219          (i) solicit or receive donations from any other person, group, or entity to assist in
             220      placing a ballot proposition on the ballot, assist in keeping a ballot proposition off the ballot, or
             221      to advocate that a voter refrain from voting or vote for or vote against any ballot proposition;
             222          (ii) make expenditures to expressly advocate for any person to sign or refuse to sign a
             223      ballot proposition or incorporation petition or refrain from voting, vote for, or vote against any
             224      proposed ballot proposition or an incorporation in an incorporation election; or
             225          (iii) make expenditures to assist in qualifying or placing a ballot proposition on the
             226      ballot or to assist in keeping a ballot proposition off the ballot.
             227          (b) "Political issues committee" does not mean:
             228          (i) a registered political party or a party committee;
             229          (ii) any entity that provides goods or services to an individual or committee in the
             230      regular course of its business at the same price that would be provided to the general public;
             231          (iii) an individual;
             232          (iv) individuals who are related and who make contributions from a joint checking
             233      account; or
             234          (v) a corporation, except a corporation a major purpose of which is to act as a political
             235      issues committee.
             236          [(35)] (37) (a) "Political issues contribution" means any of the following:
             237          (i) a gift, subscription, unpaid or partially unpaid loan, advance, or deposit of money or
             238      anything of value given to a political issues committee;
             239          (ii) an express, legally enforceable contract, promise, or agreement to make a political
             240      issues donation to influence the approval or defeat of any ballot proposition;
             241          (iii) any transfer of funds received by a political issues committee from a reporting
             242      entity;
             243          (iv) compensation paid by another reporting entity for personal services rendered
             244      without charge to a political issues committee; and


             245          (v) goods or services provided to or for the benefit of a political issues committee at
             246      less than fair market value.
             247          (b) "Political issues contribution" does not include:
             248          (i) services provided without compensation by individuals volunteering a portion or all
             249      of their time on behalf of a political issues committee; or
             250          (ii) money lent to a political issues committee by a financial institution in the ordinary
             251      course of business.
             252          [(36)] (38) (a) "Political issues expenditure" means any of the following:
             253          (i) any payment from political issues contributions made for the purpose of influencing
             254      the approval or the defeat of:
             255          (A) a ballot proposition; or
             256          (B) an incorporation petition or incorporation election;
             257          (ii) a purchase, payment, distribution, loan, advance, deposit, or gift of money made for
             258      the express purpose of influencing the approval or the defeat of:
             259          (A) a ballot proposition; or
             260          (B) an incorporation petition or incorporation election;
             261          (iii) an express, legally enforceable contract, promise, or agreement to make any
             262      political issues expenditure;
             263          (iv) compensation paid by a reporting entity for personal services rendered by a person
             264      without charge to a political issues committee; or
             265          (v) goods or services provided to or for the benefit of another reporting entity at less
             266      than fair market value.
             267          (b) "Political issues expenditure" does not include:
             268          (i) services provided without compensation by individuals volunteering a portion or all
             269      of their time on behalf of a political issues committee; or
             270          (ii) money lent to a political issues committee by a financial institution in the ordinary
             271      course of business.
             272          [(37)] (39) "Political purposes" means an act done with the intent or in a way to
             273      influence or tend to influence, directly or indirectly, any person to refrain from voting or to vote
             274      for or against any candidate or a person seeking a municipal or county office at any caucus,
             275      political convention, or election.


             276          [(38)] (40) (a) "Poll" means the survey of a person regarding the person's opinion or
             277      knowledge of an individual who has filed a declaration of candidacy for public office, or of a
             278      ballot proposition that has legally qualified for placement on the ballot, which is conducted in
             279      person or by telephone, facsimile, Internet, postal mail, or email.
             280          (b) "Poll" does not include:
             281          (i) a ballot; or
             282          (ii) an interview of a focus group that is conducted, in person, by one individual, if:
             283          (A) the focus group consists of more than three, and less than thirteen, individuals; and
             284          (B) all individuals in the focus group are present during the interview.
             285          [(39)] (41) "Primary election" means any regular primary election held under the
             286      election laws.
             287          (42) "Publicly identified class of individuals" means a group of 50 or more individuals
             288      sharing a common occupation, interest, or association that contribute to a political action
             289      committee or political issues committee and whose names can be obtained by contacting the
             290      political action committee or political issues committee upon whose financial statement the
             291      individuals are listed.
             292          [(40)] (43) "Public office" means the office of governor, lieutenant governor, state
             293      auditor, state treasurer, attorney general, state or local school board member, state senator, state
             294      representative, speaker of the House of Representatives, president of the Senate, and the leader,
             295      whip, and assistant whip of any party caucus in either house of the Legislature.
             296          [(41)] (44) (a) "Public service assistance" means the following when given or provided
             297      to an officeholder to defray the costs of functioning in a public office or aid the officeholder to
             298      communicate with the officeholder's constituents:
             299          (i) a gift, subscription, donation, unpaid or partially unpaid loan, advance, or deposit of
             300      money or anything of value to an officeholder; or
             301          (ii) goods or services provided at less than fair market value to or for the benefit of the
             302      officeholder.
             303          (b) "Public service assistance" does not include:
             304          (i) anything provided by the state;
             305          (ii) services provided without compensation by individuals volunteering a portion or all
             306      of their time on behalf of an officeholder;


             307          (iii) money lent to an officeholder by a financial institution in the ordinary course of
             308      business;
             309          (iv) news coverage or any publication by the news media; or
             310          (v) any article, story, or other coverage as part of any regular publication of any
             311      organization unless substantially all the publication is devoted to information about the
             312      officeholder.
             313          [(43)] (45) "Receipts" means contributions and public service assistance.
             314          [(44)] (46) "Registered lobbyist" means a person registered under Title 36, Chapter 11,
             315      Lobbyist Disclosure and Regulation Act.
             316          [(45)] (47) "Registered political action committee" means any political action
             317      committee that is required by this chapter to file a statement of organization with the Office of
             318      the Lieutenant Governor.
             319          [(46)] (48) "Registered political issues committee" means any political issues
             320      committee that is required by this chapter to file a statement of organization with the Office of
             321      the Lieutenant Governor.
             322          [(47)] (49) "Registered political party" means an organization of voters that:
             323          (a) participated in the last regular general election and polled a total vote equal to 2%
             324      or more of the total votes cast for all candidates for the United States House of Representatives
             325      for any of its candidates for any office; or
             326          (b) has complied with the petition and organizing procedures of Chapter 8, Political
             327      Party Formation and Procedures.
             328          [(48)] (50) (a) "Remuneration" means a payment:
             329          (i) made to a legislator for the period the Legislature is in session; and
             330          (ii) that is approximately equivalent to an amount a legislator would have earned
             331      during the period the Legislature is in session in the legislator's ordinary course of business.
             332          (b) "Remuneration" does not mean anything of economic value given to a legislator by:
             333          (i) the legislator's primary employer in the ordinary course of business; or
             334          (ii) a person or entity in the ordinary course of business:
             335          (A) because of the legislator's ownership interest in the entity; or
             336          (B) for services rendered by the legislator on behalf of the person or entity.
             337          [(49)] (51) "Reporting entity" means a candidate, a candidate's personal campaign


             338      committee, a judge, a judge's personal campaign committee, an officeholder, a party
             339      committee, a political action committee, a political issues committee, a corporation, or a labor
             340      organization, as defined in Section 20A-11-1501 .
             341          [(50)] (52) "School board office" means the office of state school board or local school
             342      board.
             343          [(51)] (53) (a) "Source" means the person or entity that is the legal owner of the
             344      tangible or intangible asset that comprises the contribution.
             345          (b) "Source" means, for political action committees and corporations, the political
             346      action committee and the corporation as entities, not the contributors to the political action
             347      committee or the owners or shareholders of the corporation.
             348          [(52)] (54) "State office" means the offices of governor, lieutenant governor, attorney
             349      general, state auditor, and state treasurer.
             350          [(53)] (55) "State office candidate" means a person who:
             351          (a) files a declaration of candidacy for a state office; or
             352          (b) receives contributions, makes expenditures, or gives consent for any other person to
             353      receive contributions or make expenditures to bring about the person's nomination, election, or
             354      appointment to a state office.
             355          [(54)] (56) "Summary report" means the year end report containing the summary of a
             356      reporting entity's contributions and expenditures.
             357          [(55)] (57) "Supervisory board" means the individual or group of individuals that
             358      allocate expenditures from a political issues committee.
             359          Section 2. Section 20A-11-604 is enacted to read:
             360          20A-11-604. Limits on contributions by political action committees.
             361          (1) A political action committee may not make contributions totaling more than the
             362      following amounts per contribution cycle:
             363          (a) $10,000 to one state office candidate;
             364          (b) $5,000 to one legislative office candidate;
             365          (c) $5,000 to one school board office candidate;
             366          (d) $5,000 to one judge;
             367          (e) $40,000 to one registered political party;
             368          (f) $10,000 to one political action committee; or


             369          (g) $50,000 in the aggregate to one or more:
             370          (i) registered political parties;
             371          (ii) labor organizations; and
             372          (iii) political action committees.
             373          (2) A political action committee may not make a cash contribution in excess of $100 in
             374      a contribution cycle.
             375          Section 3. Section 20A-11-705 is enacted to read:
             376          20A-11-705. Limits on contributions by corporations.
             377          (1) A corporation may not make contributions totaling more than the following
             378      amounts per contribution cycle:
             379          (a) $10,000 to one state office candidate;
             380          (b) $5,000 to one legislative office candidate;
             381          (c) $5,000 to one school board office candidate;
             382          (d) $5,000 to one judge;
             383          (e) $40,000 to one registered political party;
             384          (f) $10,000 to one political action committee; or
             385          (g) $50,000 in the aggregate to one or more:
             386          (i) registered political parties;
             387          (ii) labor organizations; and
             388          (iii) political action committees.
             389          (2) A corporation may not make a cash contribution in excess of $100 in a contribution
             390      cycle.
             391          Section 4. Section 20A-11-1504 is enacted to read:
             392          20A-11-1504. Limits on contributions by a labor organization.
             393          (1) As used in this section, "labor organization" is as defined in Section 20A-11-1402 .
             394          (2) A labor organization may not make contributions totaling more than the following
             395      amounts per contribution cycle:
             396          (a) $10,000 to one state office candidate;
             397          (b) $5,000 to one legislative office candidate;
             398          (c) $5,000 to one school board office candidate;
             399          (d) $5,000 to one judge;


             400          (e) $40,000 to one registered political party;
             401          (f) $10,000 to one political action committee; or
             402          (g) $50,000 in the aggregate to one or more:
             403          (i) registered political parties;
             404          (ii) labor organizations; and
             405          (iii) political action committees.
             406          (3) A labor organization may not make a cash contribution in excess of $100 in a
             407      contribution cycle.
             408          Section 5. Section 20A-11-1701 is enacted to read:
             409     
Part 17. Contribution Limits

             410          20A-11-1701. Title.
             411          This part is known as "Contribution Limits."
             412          Section 6. Section 20A-11-1702 is enacted to read:
             413          20A-11-1702. Limits on contributions by an individual.
             414          (1) An individual may not make contributions totaling more than the following
             415      amounts per contribution cycle:
             416          (a) $10,000 to one state office candidate;
             417          (b) $5,000 to one legislative office candidate;
             418          (c) $5,000 to one school board office candidate;
             419          (d) $5,000 to one judge;
             420          (e) $40,000 to one registered political party; or
             421          (f) $10,000 to one political action committee.
             422          (2) An individual may not make a cash contribution in excess of $100 in a contribution
             423      cycle.
             424          Section 7. Section 20A-11-1703 is enacted to read:
             425          20A-11-1703. Contribution limit transition.
             426          A person may not make a contribution between May 13, 2014, and December 31, 2014,
             427      in excess of one-half of the contribution limits established in Section 20A-11-604 ,
             428      20A-11-705 , 20A-11-1504 , or 20A-11-1702 .
             429          Section 8. Section 20A-11-1704 is enacted to read:
             430          20A-11-1704. Penalty for contributions in excess of limit.


             431          (1) A person that makes a contribution in excess of the contribution limits established
             432      in Section 20A-11-604 , 20A-11-705 , 20A-11-1504 , 20A-11-1702 , or 20A-11-1703 is guilty of
             433      a class A misdemeanor.
             434          (2) A person that accepts a contribution in excess of the contribution limits established
             435      in Section 20A-11-604 , 20A-11-705 , 20A-11-1504 , 20A-11-1702 , or 20A-11-1703 is guilty of
             436      a class A misdemeanor.




Legislative Review Note
    as of 9-26-13 11:11 AM


Office of Legislative Research and General Counsel


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