H.B. 246
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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
16 political action committee, a political issues committee, a school board office
17 candidate, or a judge, that fails to report contributions or public service assistance,
18 as applicable, within the 30-day period required by law; and
19 . provides for publication of information relating to a penalty described in the
20 preceding paragraph.
21 Money Appropriated in this Bill:
22 None
23 Other Special Clauses:
24 This bill provides an immediate effective date.
25 Utah Code Sections Affected:
26 AMENDS:
27 20A-11-201 , as last amended by Laws of Utah 2012, Chapter 230
28 20A-11-301 , as last amended by Laws of Utah 2012, Chapter 230
29 20A-11-602 , as last amended by Laws of Utah 2013, Chapter 420
30 20A-11-802 , as last amended by Laws of Utah 2013, Chapter 420
31 20A-11-1301 , as last amended by Laws of Utah 2012, Chapter 230
32 20A-12-303 , as last amended by Laws of Utah 2011, Chapter 396
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34 Be it enacted by the Legislature of the state of Utah:
35 Section 1. Section 20A-11-201 is amended to read:
36 20A-11-201. State office candidate -- Separate bank account for campaign funds
37 -- No personal use -- Report contributions within 30 days -- Report other accounts.
38 (1) (a) Each state office candidate or the candidate's personal campaign committee
39 shall deposit each contribution and public service assistance received in one or more separate
40 campaign accounts in a financial institution.
41 (b) A state office candidate or a candidate's personal campaign committee may not use
42 money deposited in a campaign account for:
43 (i) a personal use expenditure; or
44 (ii) an expenditure prohibited by law.
45 (2) A state office candidate or the candidate's personal campaign committee may not
46 deposit or mingle any contributions received into a personal or business account.
47 (3) If a person who is no longer a state office candidate chooses not to expend the
48 money remaining in a campaign account, the person shall continue to file the year-end
49 summary report required by Section 20A-11-203 until the statement of dissolution and final
50 summary report required by Section 20A-11-205 are filed with the lieutenant governor.
51 (4) (a) Except as provided in Subsection (4)(b) and Section 20A-11-402 , a person who
52 is no longer a state office candidate may not expend or transfer the money in a campaign
53 account in a manner that would cause the former state office candidate to recognize the money
54 as taxable income under federal tax law.
55 (b) A person who is no longer a state office candidate may transfer the money in a
56 campaign account in a manner that would cause the former state office candidate to recognize
57 the money as taxable income under federal tax law if the transfer is made to a campaign
58 account for federal office.
59 (5) (a) As used in this Subsection (5) and Section 20A-11-204 , "received" means:
60 (i) for a cash contribution, that the cash is given to a state office candidate or a member
61 of the candidate's personal campaign committee;
62 (ii) for a contribution that is a negotiable instrument or check, that the negotiable
63 instrument or check is negotiated; and
64 (iii) for any other type of contribution, that any portion of the contribution's benefit
65 inures to the state office candidate.
66 (b) Each state office candidate shall report each contribution and public service
67 assistance to the lieutenant governor within 30 days after the contribution or public service
68 assistance is received.
69 (c) Except as provided in Subsection (5)(d), for each contribution or provision of
70 public service assistance that a state office candidate fails to report within the 30-day time
71 period described in Subsection (5)(b), the lieutenant governor shall impose a fine against the
72 state office candidate in an amount equal to:
73 (i) the greater of $50 or 15% of the amount of the contribution; or
74 (ii) the greater of $50 or 15% of the value of the public service assistance.
75 (d) A fine described in Subsection (5)(c) may not exceed the amount of the
76 contribution or the value of the public service assistance to which the fine relates.
77 (e) The lieutenant governor shall:
78 (i) deposit money received under Subsection (5)(c) into the General Fund; and
79 (ii) report on the lieutenant governor's website, in the location where reports relating to
80 each state office candidate are available for public access:
81 (A) each fine imposed by the lieutenant governor against the state office candidate;
82 (B) the amount of the fine;
83 (C) the amount of the contribution to which the fine relates;
84 (D) the date of the contribution; and
85 (E) the name of the person who made the contribution.
86 (6) (a) As used in this Subsection (6), "account" means an account in a financial
87 institution:
88 (i) that is not described in Subsection (1)(a); and
89 (ii) into which or from which a person who, as a candidate for an office, other than the
90 state office for which the person files a declaration of candidacy or federal office, or as a holder
91 of an office, other than a state office for which the person files a declaration of candidacy or
92 federal office, deposits a contribution or makes an expenditure.
93 (b) A state office candidate shall include on any financial statement filed in accordance
94 with this part:
95 (i) a contribution deposited in 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; or
98 (ii) an expenditure made from an account:
99 (A) since the last campaign finance statement was filed; or
100 (B) that has not been reported under a statute or ordinance that governs the account.
101 Section 2. Section 20A-11-301 is amended to read:
102 20A-11-301. Legislative office candidate -- Campaign finance requirements --
103 Candidate as a political action committee officer -- No personal use -- Report
104 contributions within 30 days -- Report other accounts.
105 (1) (a) (i) Each legislative office candidate shall deposit each contribution and public
106 service assistance received in one or more separate accounts in a financial institution that are
107 dedicated only to that purpose.
108 (ii) A legislative office candidate may:
109 (A) receive a contribution or public service assistance from a political action
110 committee registered under Section 20A-11-601 ; and
111 (B) be designated by a political action committee as an officer who has primary
112 decision-making authority as described in Section 20A-11-601 .
113 (b) A legislative office candidate or the candidate's personal campaign committee may
114 not use money deposited in an account described in Subsection (1)(a)(i) for:
115 (i) a personal use expenditure; or
116 (ii) an expenditure prohibited by law.
117 (2) A legislative office candidate may not deposit or mingle any contributions or public
118 service assistance received into a personal or business account.
119 (3) If a person who is no longer a legislative candidate chooses not to expend the
120 money remaining in a campaign account, the person shall continue to file the year-end
121 summary report required by Section 20A-11-302 until the statement of dissolution and final
122 summary report required by Section 20A-11-304 are filed with the lieutenant governor.
123 (4) (a) Except as provided in Subsection (4)(b) and Section 20A-11-402 , a person who
124 is no longer a legislative office candidate may not expend or transfer the money in a campaign
125 account in a manner that would cause the former legislative office candidate to recognize the
126 money as taxable income under federal tax law.
127 (b) A person who is no longer a legislative office candidate may transfer the money in
128 a campaign account in a manner that would cause the former legislative office candidate to
129 recognize the money as taxable income under federal tax law if the transfer is made to a
130 campaign account for federal office.
131 (5) (a) As used in this Subsection (5) and Section 20A-11-303 , "received" means:
132 (i) for a cash contribution, that the cash is given to a legislative office candidate or a
133 member of the candidate's personal campaign committee;
134 (ii) for a contribution that is a negotiable instrument or check, that the negotiable
135 instrument or check is negotiated; and
136 (iii) for any other type of contribution, that any portion of the contribution's benefit
137 inures to the legislative office candidate.
138 (b) Each legislative office candidate shall report each contribution and public service
139 assistance to the lieutenant governor within 30 days after the contribution or public service
140 assistance is received.
141 (c) Except as provided in Subsection (5)(d), for each contribution or provision of
142 public service assistance that a legislative office candidate fails to report within the 30-day time
143 period described in Subsection (5)(b), the lieutenant governor shall impose a fine against the
144 legislative office candidate in an amount equal to:
145 (i) the greater of $50 or 15% of the amount of the contribution; or
146 (ii) the greater of $50 or 15% of the value of the public service assistance.
147 (d) A fine described in Subsection (5)(c) may not exceed the amount of the
148 contribution or the value of the public service assistance to which the fine relates.
149 (e) The lieutenant governor shall:
150 (i) deposit money received under Subsection (5)(c) into the General Fund; and
151 (ii) report on the lieutenant governor's website, in the location where reports relating to
152 each legislative office candidate are available for public access:
153 (A) each fine imposed by the lieutenant governor against the legislative office
154 candidate;
155 (B) the amount of the fine;
156 (C) the amount of the contribution to which the fine relates;
157 (D) the date of the contribution; and
158 (E) the name of the person who made the contribution.
159 (6) (a) As used in this Subsection (6), "account" means an account in a financial
160 institution:
161 (i) that is not described in Subsection (1)(a)(i); and
162 (ii) into which or from which a person who, as a candidate for an office, other than a
163 legislative office for which the person files a declaration of candidacy or federal office, or as a
164 holder of an office, other than a legislative office for which the person files a declaration of
165 candidacy or federal office, deposits a contribution or makes an expenditure.
166 (b) A legislative office candidate shall include on any financial statement filed in
167 accordance with this part:
168 (i) a contribution deposited in 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; or
171 (ii) an expenditure made from an account:
172 (A) since the last campaign finance statement was filed; or
173 (B) that has not been reported under a statute or ordinance that governs the account.
174 Section 3. Section 20A-11-602 is amended to read:
175 20A-11-602. Political action committees -- Financial reporting.
176 (1) (a) Each registered political action committee that has received contributions
177 totaling at least $750, or disbursed expenditures totaling at least $50, during a calendar year
178 shall file a verified financial statement with the lieutenant governor's office:
179 (i) on January 10, reporting contributions and expenditures as of December 31 of the
180 previous year;
181 (ii) seven days before the state political convention of each major political party;
182 (iii) seven days before the regular primary election date;
183 (iv) on August 31; and
184 (v) seven days before:
185 (A) the municipal general election; and
186 (B) the regular general election date.
187 (b) The registered political action committee shall report:
188 (i) a detailed listing of all contributions received and expenditures made since the last
189 statement; and
190 (ii) for financial statements filed under Subsections (1)(a)(ii) through (iv), all
191 contributions and expenditures as of five days before the required filing date of the financial
192 statement.
193 (c) The registered political action committee need not file a statement under this
194 section if it received no contributions and made no expenditures during the reporting period.
195 (2) (a) The verified financial statement shall include:
196 (i) the name and address of any individual that makes a contribution to the reporting
197 political action committee, and the amount of the contribution;
198 (ii) the identification of any publicly identified class of individuals that makes a
199 contribution to the reporting political action committee, and the amount of the contribution;
200 (iii) the name and address of any political action committee, group, or entity that makes
201 a contribution to the reporting political action committee, and the amount of the contribution;
202 (iv) for each nonmonetary contribution, the fair market value of the contribution;
203 (v) the name and address of each reporting entity that received an expenditure from the
204 reporting political action committee, and the amount of each expenditure;
205 (vi) for each nonmonetary expenditure, the fair market value of the expenditure;
206 (vii) the total amount of contributions received and expenditures disbursed by the
207 reporting political action committee;
208 (viii) a statement by the political action committee's treasurer or chief financial officer
209 certifying that, to the best of the person's knowledge, the financial report is accurate; and
210 (ix) a summary page in the form required by the lieutenant governor that identifies:
211 (A) beginning balance;
212 (B) total contributions during the period since the last statement;
213 (C) total contributions to date;
214 (D) total expenditures during the period since the last statement; and
215 (E) total expenditures to date.
216 (b) (i) Contributions received by a political action committee that have a value of $50
217 or less need not be reported individually, but shall be listed on the report as an aggregate total.
218 (ii) Two or more contributions from the same source that have an aggregate total of
219 more than $50 may not be reported in the aggregate, but shall be reported separately.
220 (3) A group or entity may not divide or separate into units, sections, or smaller groups
221 for the purpose of avoiding the financial reporting requirements of this chapter, and substance
222 shall prevail over form in determining the scope or size of a political action committee.
223 (4) (a) As used in this Subsection (4), "received" means:
224 (i) for a cash contribution, that the cash is given to a political action committee;
225 (ii) for a contribution that is a negotiable instrument or check, that the negotiable
226 instrument or check is negotiated; and
227 (iii) for any other type of contribution, that any portion of the contribution's benefit
228 inures to the political action committee.
229 (b) A political action committee shall report each contribution to the lieutenant
230 governor within 30 days after the contribution is received.
231 (c) Except as provided in Subsection (4)(d), for each contribution that a political action
232 committee fails to report within the 30-day time period described in Subsection (4)(b), the
233 lieutenant governor shall impose a fine against the political action committee in an amount
234 equal to the greater of $50 or 15% of the contribution.
235 (d) A fine described in Subsection (4)(c) may not exceed the amount of the
236 contribution to which the fine relates.
237 (e) The lieutenant governor shall:
238 (i) deposit money received under Subsection (4)(c) into the General Fund; and
239 (ii) report on the lieutenant governor's website, in the location where reports relating to
240 each political action committee are available for public access:
241 (A) each fine imposed by the lieutenant governor against the political action
242 committee;
243 (B) the amount of the fine;
244 (C) the amount of the contribution to which the fine relates;
245 (D) the date of the contribution; and
246 (E) the name of the person who made the contribution.
247 Section 4. Section 20A-11-802 is amended to read:
248 20A-11-802. Political issues committees -- Financial reporting.
249 (1) (a) Each registered political issues committee that has received political issues
250 contributions totaling at least $750, or disbursed political issues expenditures totaling at least
251 $50, during a calendar year, shall file a verified financial statement with the lieutenant
252 governor's office:
253 (i) on January 10, reporting contributions and expenditures as of December 31 of the
254 previous year;
255 (ii) seven days before the state political convention of each major political party;
256 (iii) seven days before the regular primary election date;
257 (iv) seven days before the date of an incorporation election, if the political issues
258 committee has received donations or made disbursements to affect an incorporation;
259 (v) at least three days before the first public hearing held as required by Section
260 20A-7-204.1 ;
261 (vi) if the political issues committee has received or expended funds in relation to an
262 initiative or referendum, at the time the initiative or referendum sponsors submit:
263 (A) the verified and certified initiative packets as required by Section 20A-7-206 ; or
264 (B) the signed and verified referendum packets as required by Section 20A-7-306 ;
265 (vii) on August 31; and
266 (viii) seven days before:
267 (A) the municipal general election; and
268 (B) the regular general election.
269 (b) The political issues committee shall report:
270 (i) a detailed listing of all contributions received and expenditures made since the last
271 statement; and
272 (ii) all contributions and expenditures as of five days before the required filing date of
273 the financial statement, except for a financial statement filed on January 10.
274 (c) The political issues committee need not file a statement under this section if it
275 received no contributions and made no expenditures during the reporting period.
276 (2) (a) That statement shall include:
277 (i) the name and address of any individual that makes a political issues contribution to
278 the reporting political issues committee, and the amount of the political issues contribution;
279 (ii) the identification of any publicly identified class of individuals that makes a
280 political issues contribution to the reporting political issues committee, and the amount of the
281 political issues contribution;
282 (iii) the name and address of any political issues committee, group, or entity that makes
283 a political issues contribution to the reporting political issues committee, and the amount of the
284 political issues contribution;
285 (iv) the name and address of each reporting entity that makes a political issues
286 contribution to the reporting political issues committee, and the amount of the political issues
287 contribution;
288 (v) for each nonmonetary contribution, the fair market value of the contribution;
289 (vi) except as provided in Subsection (2)(c), the name and address of each individual,
290 entity, or group of individuals or entities that received a political issues expenditure of more
291 than $50 from the reporting political issues committee, and the amount of each political issues
292 expenditure;
293 (vii) for each nonmonetary expenditure, the fair market value of the expenditure;
294 (viii) the total amount of political issues contributions received and political issues
295 expenditures disbursed by the reporting political issues committee;
296 (ix) a statement by the political issues committee's treasurer or chief financial officer
297 certifying that, to the best of the person's knowledge, the financial statement is accurate; and
298 (x) a summary page in the form required by the lieutenant governor that identifies:
299 (A) beginning balance;
300 (B) total contributions during the period since the last statement;
301 (C) total contributions to date;
302 (D) total expenditures during the period since the last statement; and
303 (E) total expenditures to date.
304 (b) (i) Political issues contributions received by a political issues committee that have a
305 value of $50 or less need not be reported individually, but shall be listed on the report as an
306 aggregate total.
307 (ii) Two or more political issues contributions from the same source that have an
308 aggregate total of more than $50 may not be reported in the aggregate, but shall be reported
309 separately.
310 (c) When reporting political issue expenditures made to circulators of initiative
311 petitions, the political issues committee:
312 (i) need only report the amount paid to each initiative petition circulator; and
313 (ii) need not report the name or address of the circulator.
314 (3) (a) As used in this Subsection (3), "received" means:
315 (i) for a cash contribution, that the cash is given to a political issues committee;
316 (ii) for a contribution that is a negotiable instrument or check, that the negotiable
317 instrument or check is negotiated; and
318 (iii) for any other type of contribution, that any portion of the contribution's benefit
319 inures to the political issues committee.
320 (b) A political issues committee shall report each contribution to the lieutenant
321 governor within 30 days after the contribution is received.
322 (c) Except as provided in Subsection (3)(d), for each contribution that a political issues
323 committee fails to report within the 30-day time period described in Subsection (3)(b), the
324 lieutenant governor shall impose a fine against the political issues committee in an amount
325 equal to the greater of $50 or 15% of the contribution.
326 (d) A fine described in Subsection (3)(c) may not exceed the amount of the
327 contribution to which the fine relates.
328 (e) The lieutenant governor shall:
329 (i) deposit money received under Subsection (3)(c) into the General Fund; and
330 (ii) report on the lieutenant governor's website, in the location where reports relating to
331 each political issues committee are available for public access:
332 (A) each fine imposed by the lieutenant governor against the political issues
333 committee;
334 (B) the amount of the fine;
335 (C) the amount of the contribution to which the fine relates;
336 (D) the date of the contribution; and
337 (E) the name of the person who made the contribution.
338 Section 5. Section 20A-11-1301 is amended to read:
339 20A-11-1301. School board office candidate -- Campaign finance requirements --
340 Candidate as a political action committee officer -- No personal use -- Report
341 contributions within 30 days -- Report other accounts.
342 (1) (a) (i) Each school board office candidate shall deposit each contribution and public
343 service assistance received in one or more separate accounts in a financial institution that are
344 dedicated only to that purpose.
345 (ii) A school board office candidate may:
346 (A) receive a contribution or public service assistance from a political action
347 committee registered under Section 20A-11-601 ; and
348 (B) be designated by a political action committee as an officer who has primary
349 decision-making authority as described in Section 20A-11-601 .
350 (b) A school board office candidate may not use money deposited in an account
351 described in Subsection (1)(a)(i) for:
352 (i) a personal use expenditure; or
353 (ii) an expenditure prohibited by law.
354 (2) A school board office candidate may not deposit or mingle any contributions or
355 public service assistance received into a personal or business account.
356 (3) A school board office candidate may not make any political expenditures prohibited
357 by law.
358 (4) If a person who is no longer a school board candidate chooses not to expend the
359 money remaining in a campaign account, the person shall continue to file the year-end
360 summary report required by Section 20A-11-1302 until the statement of dissolution and final
361 summary report required by Section 20A-11-1304 are filed with:
362 (a) the lieutenant governor in the case of a state school board candidate; and
363 (b) the county clerk, in the case of a local school board candidate.
364 (5) (a) Except as provided in Subsection (5)(b) and Section 20A-11-402 , a person who
365 is no longer a school board candidate may not expend or transfer the money in a campaign
366 account in a manner that would cause the former school board candidate to recognize the
367 money as taxable income under federal tax law.
368 (b) A person who is no longer a school board candidate may transfer the money in a
369 campaign account in a manner that would cause the former school board candidate to recognize
370 the money as taxable income under federal tax law if the transfer is made to a campaign
371 account for federal office.
372 (6) (a) As used in this Subsection (6) and Section 20A-11-1303 , "received" means:
373 (i) for a cash contribution, that the cash is given to a school board office candidate or a
374 member of the candidate's personal campaign committee;
375 (ii) for a contribution that is a negotiable instrument or check, that the negotiable
376 instrument or check is negotiated; and
377 (iii) for any other type of contribution, that any portion of the contribution's benefit
378 inures to the school board office candidate.
379 (b) Each school board office candidate shall report to the chief election officer each
380 contribution and public service assistance within 30 days after the contribution or public
381 service assistance is received.
382 (c) Except as provided in Subsection (6)(d), for each contribution or provision of
383 public service assistance that a school board office candidate fails to report within the 30-day
384 time period described in Subsection (6)(b), the chief election officer shall impose a fine against
385 the school board office candidate in an amount equal to:
386 (i) the greater of $50 or 15% of the amount of the contribution; or
387 (ii) the greater of $50 or 15% of the value of the public service assistance.
388 (d) A fine described in Subsection (6)(c) may not exceed the amount of the
389 contribution or the value of the public service assistance to which the fine relates.
390 (e) The chief election officer shall:
391 (i) deposit money received under Subsection (6)(c) into the General Fund; and
392 (ii) report on the chief election officer's website, in the location where reports relating
393 to each school board office candidate are available for public access:
394 (A) each fine imposed by the chief election officer against the school board office
395 candidate;
396 (B) the amount of the fine;
397 (C) the amount of the contribution to which the fine relates;
398 (D) the date of the contribution; and
399 (E) the name of the person who made the contribution.
400 (7) (a) As used in this Subsection (7), "account" means an account in a financial
401 institution:
402 (i) that is not described in Subsection (1)(a)(i); and
403 (ii) into which or from which a person who, as a candidate for an office, other than a
404 school board office for which the person files a declaration of candidacy or federal office, or as
405 a holder of an office, other than a school board office for which the person files a declaration of
406 candidacy or federal office, deposits a contribution or makes an expenditure.
407 (b) A school board office candidate shall include on any financial statement filed in
408 accordance with this part:
409 (i) a contribution deposited in an account:
410 (A) since the last campaign finance statement was filed; or
411 (B) that has not been reported under a statute or ordinance that governs the account; or
412 (ii) an expenditure made from an account:
413 (A) since the last campaign finance statement was filed; or
414 (B) that has not been reported under a statute or ordinance that governs the account.
415 Section 6. Section 20A-12-303 is amended to read:
416 20A-12-303. Separate account for campaign funds -- Reporting contributions.
417 (1) The judge or the judge's personal campaign committee shall deposit each
418 contribution in one or more separate personal campaign accounts in a financial institution.
419 (2) The judge or the judge's personal campaign committee may not deposit or mingle
420 any contributions received into a personal or business account.
421 (3) (a) As used in this Subsection (3) and Section 20A-12-305 , "received" means:
422 (i) for a cash contribution, that the cash is given to a judge or the judge's personal
423 campaign committee;
424 (ii) for a contribution that is a negotiable instrument or check, that the negotiable
425 instrument or check is negotiated; and
426 (iii) for any other type of contribution, that any portion of the contribution's benefit
427 inures to the judge.
428 (b) The judge or the judge's personal campaign committee shall report to the lieutenant
429 governor each contribution within 30 days after the contribution is received.
430 (c) Except as provided in Subsection (3)(d), for each contribution that a judge fails to
431 report within the 30-day time period described in Subsection (3)(b), the lieutenant governor
432 shall impose a fine against the judge in an amount equal to the greater of $50 or 15% of the
433 amount of the contribution.
434 (d) A fine described in Subsection (3)(c) may not exceed the amount of the
435 contribution to which the fine relates.
436 (e) The lieutenant governor shall:
437 (i) deposit money received under Subsection (3)(c) into the General Fund; and
438 (ii) report on the lieutenant governor's website, in the location where reports relating to
439 each judge are available for public access:
440 (A) each fine imposed by the lieutenant governor against the judge;
441 (B) the amount of the fine;
442 (C) the amount of the contribution to which the fine relates;
443 (D) the date of the contribution; and
444 (E) the name of the person who made the contribution.
445 Section 7. Effective date.
446 If approved by two-thirds of all the members elected to each house, this bill takes effect
447 upon approval by the governor, or the day following the constitutional time limit of Utah
448 Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto,
449 the date of veto override.
Legislative Review Note
as of 12-18-13 3:19 PM