Third Substitute H.B. 246
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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
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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 [
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[
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 [
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[
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[
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[
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 [
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 [
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 [
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 [
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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