Fifth Substitute H.B. 246

Senator Curtis S. Bramble proposes the following substitute bill:


             1     
GOVERNMENT ETHICS REVISIONS

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Craig Hall

             5     
Senate Sponsor: Curtis S. Bramble

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


             26      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              .    increasing the license fee by $10;
             32              .    requiring a lobbyist to, while engaging in lobbying at the capitol hill complex,
             33      wear a name tag, issued by the lieutenant governor, that identifies the lobbyist as
             34      a lobbyist;
             35              .    requiring a lobbyist to, at the beginning of making a communication to a public
             36      official that constitutes lobbying, inform the public official of the identity of the
             37      principal on whose behalf the lobbyist is lobbying; and
             38              .    modifying penalty provisions; and
             39          .    makes technical and conforming changes.
             40      Money Appropriated in this Bill:
             41          None
             42      Other Special Clauses:
             43          This bill provides an immediate effective date.
             44          This bill coordinates with S.B. 97, Lobbyist Disclosure and Regulation Act
             45      Amendments, by providing substantive amendments.
             46      Utah Code Sections Affected:
             47      AMENDS:
             48           20A-11-103 , as last amended by Laws of Utah 2012, Chapter 369
             49           20A-11-201 , as last amended by Laws of Utah 2012, Chapter 230
             50           20A-11-301 , as last amended by Laws of Utah 2012, Chapter 230
             51           20A-11-1301 , as last amended by Laws of Utah 2012, Chapter 230
             52           20A-12-303 , as last amended by Laws of Utah 2011, Chapter 396
             53           36-11-102 , as last amended by Laws of Utah 2011, Chapter 212
             54           36-11-103 , as last amended by Laws of Utah 2010, Chapter 325
             55           36-11-401 , as last amended by Laws of Utah 2011, Chapter 389
             56      ENACTS:


             57           20A-11-1604 , Utah Code Annotated 1953
             58           36-11-305.5 , Utah Code Annotated 1953
             59      Utah Code Sections Affected by Coordination Clause:
             60           36-11-103 , as last amended by Laws of Utah 2010, Chapter 325
             61     
             62      Be it enacted by the Legislature of the state of Utah:
             63          Section 1. Section 20A-11-103 is amended to read:
             64           20A-11-103. Notice of pending interim and summary reports -- Form of
             65      submission -- Public availability -- Notice of reporting and filing requirements.
             66          (1) (a) Except as provided under Subsection (1)(b), 10 days before an interim report or
             67      summary report is due under this chapter or Chapter 12, Part 2, Judicial Retention Elections,
             68      the chief election officer shall inform the filing entity by postal mail or, if requested by the
             69      filing entity, by electronic mail:
             70          (i) that the financial statement is due;
             71          (ii) of the date that the financial statement is due; and
             72          (iii) of the penalty for failing to file the financial statement.
             73          (b) The chief election officer is not required to provide notice:
             74          (i) to a candidate or political party of the financial statement that is due before the
             75      candidate's or political party's political convention;
             76          (ii) of a financial statement due in connection with a public hearing for an initiative
             77      under the requirements of Section 20A-7-204.1 ; or
             78          (iii) to a corporation or labor organization, as defined in Section 20A-11-1501 .
             79          (2) A filing entity shall electronically file a financial statement via electronic mail or
             80      the Internet according to specifications established by the chief election officer.
             81          (3) (a) A financial statement is considered timely filed if it is received by the chief
             82      election officer's office before the close of regular office hours on the date that it is due.
             83          (b) A chief election officer may extend the time in which a filing entity is required to
             84      file a financial statement if a filing entity notifies the chief election officer of the existence of
             85      an extenuating circumstance that is outside the control of the filing entity.
             86          (4) Notwithstanding any provision of Title 63G, Chapter 2, Government Records
             87      Access and Management Act, the lieutenant governor shall:


             88          (a) make each campaign finance statement filed by a candidate available for public
             89      inspection and copying no later than one business day after the statement is filed; and
             90          (b) post an electronic copy or the contents of each financial statement in a searchable
             91      format on a website established by the lieutenant governor:
             92          (i) for campaign finance statements submitted to the lieutenant governor under the
             93      requirements of Section 10-3-208 or Section 17-16-6.5 , no later than seven business days after
             94      the date of receipt of the campaign finance statement; or
             95          (ii) for a summary report or interim report filed under the requirements of this chapter
             96      or Chapter 12, Part 2, Judicial Retention Elections, no later than three business days after the
             97      date the summary report or interim report is electronically filed.
             98          (5) If a municipality, under Section 10-3-208 , or a county, under Section 17-16-6.5 ,
             99      elects to provide campaign finance disclosure on its own website, rather than through the
             100      lieutenant governor, the website established by the lieutenant governor shall contain a link or
             101      other access point to the municipality or county website.
             102          (6) Between January 1 and January 15 of each year, the chief election officer shall
             103      provide notice, by postal mail or email, to each filing entity for which the chief election officer
             104      has a physical or email address, of the reporting and filing requirements described in this
             105      chapter.
             106          Section 2. Section 20A-11-201 is amended to read:
             107           20A-11-201. State office candidate -- Separate bank account for campaign funds
             108      -- No personal use -- Contribution reporting deadline -- Report other accounts.
             109          (1) (a) Each state office candidate or the candidate's personal campaign committee
             110      shall deposit each contribution and public service assistance received in one or more separate
             111      campaign accounts in a financial institution.
             112          (b) A state office candidate or a candidate's personal campaign committee may not use
             113      money deposited in a campaign account for:
             114          (i) a personal use expenditure; or
             115          (ii) an expenditure prohibited by law.
             116          (2) A state office candidate or the candidate's personal campaign committee may not
             117      deposit or mingle any contributions received into a personal or business account.
             118          (3) If a person who is no longer a state office candidate chooses not to expend the


             119      money remaining in a campaign account, the person shall continue to file the year-end
             120      summary report required by Section 20A-11-203 until the statement of dissolution and final
             121      summary report required by Section 20A-11-205 are filed with the lieutenant governor.
             122          (4) (a) Except as provided in Subsection (4)(b) and Section 20A-11-402 , a person who
             123      is no longer a state office candidate may not expend or transfer the money in a campaign
             124      account in a manner that would cause the former state office candidate to recognize the money
             125      as taxable income under federal tax law.
             126          (b) A person who is no longer a state office candidate may transfer the money in a
             127      campaign account in a manner that would cause the former state office candidate to recognize
             128      the money as taxable income under federal tax law if the transfer is made to a campaign
             129      account for federal office.
             130          (5) (a) As used in this Subsection (5) and Section 20A-11-204 , "received" means:
             131          (i) for a cash contribution, that the cash is given to a state office candidate or a member
             132      of the candidate's personal campaign committee;
             133          (ii) for a contribution that is a negotiable instrument or check, that the negotiable
             134      instrument or check is negotiated; and
             135          (iii) for any other type of contribution, that any portion of the contribution's benefit
             136      inures to the state office candidate.
             137          (b) Each state office candidate shall report to the lieutenant governor each contribution
             138      and public service assistance [to the lieutenant governor] received by the state office candidate:
             139          (i) except as provided in Subsection (5)(b)(ii), within 30 days after the day on which
             140      the contribution or public service assistance is received[.]; or
             141          (ii) within three business days after the day on which the contribution or public service
             142      assistance is received, if:
             143          (A) the state office candidate is contested in a convention and the contribution or
             144      public service assistance is received within 30 days before the day on which the convention is
             145      held;
             146          (B) the state office candidate is contested in a primary election and the contribution or
             147      public service assistance is received within 30 days before the day on which the primary
             148      election is held; or
             149          (C) the state office candidate is contested in a general election and the contribution or


             150      public service assistance is received within 30 days before the day on which the general
             151      election is held.
             152          (c) Except as provided in Subsection (5)(d), for each contribution or provision of
             153      public service assistance that a state office candidate fails to report within the time period
             154      described in Subsection (5)(b), the lieutenant governor shall impose a fine against the state
             155      office candidate in an amount equal to:
             156          (i) the greater of $50 or 15% of the amount of the contribution; or
             157          (ii) the greater of $50 or 15% of the value of the public service assistance.
             158          (d) A fine described in Subsection (5)(c) may not exceed the amount of the
             159      contribution or the value of the public service assistance to which the fine relates.
             160          (e) The lieutenant governor shall:
             161          (i) deposit money received under Subsection (5)(c) into the General Fund; and
             162          (ii) report on the lieutenant governor's website, in the location where reports relating to
             163      each state office candidate are available for public access:
             164          (A) each fine imposed by the lieutenant governor against the state office candidate;
             165          (B) the amount of the fine;
             166          (C) the amount of the contribution to which the fine relates; and
             167          (D) the date of the contribution.
             168          (6) (a) As used in this Subsection (6), "account" means an account in a financial
             169      institution:
             170          (i) that is not described in Subsection (1)(a); and
             171          (ii) into which or from which a person who, as a candidate for an office, other than the
             172      state office for which the person files a declaration of candidacy or federal office, or as a holder
             173      of an office, other than a state office for which the person files a declaration of candidacy or
             174      federal office, deposits a contribution or makes an expenditure.
             175          (b) A state office candidate shall include on any financial statement filed in accordance
             176      with this part:
             177          (i) a contribution deposited in an account:
             178          (A) since the last campaign finance statement was filed; or
             179          (B) that has not been reported under a statute or ordinance that governs the account; or
             180          (ii) an expenditure made from an account:


             181          (A) since the last campaign finance statement was filed; or
             182          (B) that has not been reported under a statute or ordinance that governs the account.
             183          Section 3. Section 20A-11-301 is amended to read:
             184           20A-11-301. Legislative office candidate -- Campaign finance requirements --
             185      Candidate as a political action committee officer -- No personal use -- Contribution
             186      reporting deadline -- Report other accounts.
             187          (1) (a) (i) Each legislative office candidate shall deposit each contribution and public
             188      service assistance received in one or more separate accounts in a financial institution that are
             189      dedicated only to that purpose.
             190          (ii) A legislative office candidate may:
             191          (A) receive a contribution or public service assistance from a political action
             192      committee registered under Section 20A-11-601 ; and
             193          (B) be designated by a political action committee as an officer who has primary
             194      decision-making authority as described in Section 20A-11-601 .
             195          (b) A legislative office candidate or the candidate's personal campaign committee may
             196      not use money deposited in an account described in Subsection (1)(a)(i) for:
             197          (i) a personal use expenditure; or
             198          (ii) an expenditure prohibited by law.
             199          (2) A legislative office candidate may not deposit or mingle any contributions or public
             200      service assistance received into a personal or business account.
             201          (3) If a person who is no longer a legislative candidate chooses not to expend the
             202      money remaining in a campaign account, the person shall continue to file the year-end
             203      summary report required by Section 20A-11-302 until the statement of dissolution and final
             204      summary report required by Section 20A-11-304 are filed with the lieutenant governor.
             205          (4) (a) Except as provided in Subsection (4)(b) and Section 20A-11-402 , a person who
             206      is no longer a legislative office candidate may not expend or transfer the money in a campaign
             207      account in a manner that would cause the former legislative office candidate to recognize the
             208      money as taxable income under federal tax law.
             209          (b) A person who is no longer a legislative office candidate may transfer the money in
             210      a campaign account in a manner that would cause the former legislative office candidate to
             211      recognize the money as taxable income under federal tax law if the transfer is made to a


             212      campaign account for federal office.
             213          (5) (a) As used in this Subsection (5) and Section 20A-11-303 , "received" means:
             214          (i) for a cash contribution, that the cash is given to a legislative office candidate or a
             215      member of the candidate's personal campaign committee;
             216          (ii) for a contribution that is a negotiable instrument or check, that the negotiable
             217      instrument or check is negotiated; and
             218          (iii) for any other type of contribution, that any portion of the contribution's benefit
             219      inures to the legislative office candidate.
             220          (b) Each legislative office candidate shall report to the lieutenant governor each
             221      contribution and public service assistance [to the lieutenant governor] received by the
             222      legislative office candidate:
             223          (i) except as provided in Subsection (5)(b)(ii), within 30 days after the day on which
             224      the contribution or public service assistance is received[.]; or
             225          (ii) within three business days after the day on which the contribution or public service
             226      assistance is received, if:
             227          (A) the legislative office candidate is contested in a convention and the contribution or
             228      public service assistance is received within 30 days before the day on which the convention is
             229      held;
             230          (B) the legislative office candidate is contested in a primary election and the
             231      contribution or public service assistance is received within 30 days before the day on which the
             232      primary election is held; or
             233          (C) the legislative office candidate is contested in a general election and the
             234      contribution or public service assistance is received within 30 days before the day on which the
             235      general election is held.
             236          (c) Except as provided in Subsection (5)(d), for each contribution or provision of
             237      public service assistance that a legislative office candidate fails to report within the time period
             238      described in Subsection (5)(b), the lieutenant governor shall impose a fine against the
             239      legislative office candidate in an amount equal to:
             240          (i) the greater of $50 or 15% of the amount of the contribution; or
             241          (ii) the greater of $50 or 15% of the value of the public service assistance.
             242          (d) A fine described in Subsection (5)(c) may not exceed the amount of the


             243      contribution or the value of the public service assistance to which the fine relates.
             244          (e) The lieutenant governor shall:
             245          (i) deposit money received under Subsection (5)(c) into the General Fund; and
             246          (ii) report on the lieutenant governor's website, in the location where reports relating to
             247      each legislative office candidate are available for public access:
             248          (A) each fine imposed by the lieutenant governor against the legislative office
             249      candidate;
             250          (B) the amount of the fine;
             251          (C) the amount of the contribution to which the fine relates; and
             252          (D) the date of the contribution.
             253          (6) (a) As used in this Subsection (6), "account" means an account in a financial
             254      institution:
             255          (i) that is not described in Subsection (1)(a)(i); and
             256          (ii) into which or from which a person who, as a candidate for an office, other than a
             257      legislative office for which the person files a declaration of candidacy or federal office, or as a
             258      holder of an office, other than a legislative office for which the person files a declaration of
             259      candidacy or federal office, deposits a contribution or makes an expenditure.
             260          (b) A legislative office candidate shall include on any financial statement filed in
             261      accordance with this part:
             262          (i) a contribution deposited in an account:
             263          (A) since the last campaign finance statement was filed; or
             264          (B) that has not been reported under a statute or ordinance that governs the account; or
             265          (ii) an expenditure made from an account:
             266          (A) since the last campaign finance statement was filed; or
             267          (B) that has not been reported under a statute or ordinance that governs the account.
             268          Section 4. Section 20A-11-1301 is amended to read:
             269           20A-11-1301. School board office candidate -- Campaign finance requirements --
             270      Candidate as a political action committee officer -- No personal use -- Contribution
             271      reporting deadline -- Report other accounts.
             272          (1) (a) (i) Each school board office candidate shall deposit each contribution and public
             273      service assistance received in one or more separate accounts in a financial institution that are


             274      dedicated only to that purpose.
             275          (ii) A school board office candidate may:
             276          (A) receive a contribution or public service assistance from a political action
             277      committee registered under Section 20A-11-601 ; and
             278          (B) be designated by a political action committee as an officer who has primary
             279      decision-making authority as described in Section 20A-11-601 .
             280          (b) A school board office candidate may not use money deposited in an account
             281      described in Subsection (1)(a)(i) for:
             282          (i) a personal use expenditure; or
             283          (ii) an expenditure prohibited by law.
             284          (2) A school board office candidate may not deposit or mingle any contributions or
             285      public service assistance received into a personal or business account.
             286          (3) A school board office candidate may not make any political expenditures prohibited
             287      by law.
             288          (4) If a person who is no longer a school board candidate chooses not to expend the
             289      money remaining in a campaign account, the person shall continue to file the year-end
             290      summary report required by Section 20A-11-1302 until the statement of dissolution and final
             291      summary report required by Section 20A-11-1304 are filed with:
             292          (a) the lieutenant governor in the case of a state school board candidate; and
             293          (b) the county clerk, in the case of a local school board candidate.
             294          (5) (a) Except as provided in Subsection (5)(b) and Section 20A-11-402 , a person who
             295      is no longer a school board candidate may not expend or transfer the money in a campaign
             296      account in a manner that would cause the former school board candidate to recognize the
             297      money as taxable income under federal tax law.
             298          (b) A person who is no longer a school board candidate may transfer the money in a
             299      campaign account in a manner that would cause the former school board candidate to recognize
             300      the money as taxable income under federal tax law if the transfer is made to a campaign
             301      account for federal office.
             302          (6) (a) As used in this Subsection (6) and Section 20A-11-1303 , "received" means:
             303          (i) for a cash contribution, that the cash is given to a school board office candidate or a
             304      member of the candidate's personal campaign committee;


             305          (ii) for a contribution that is a negotiable instrument or check, that the negotiable
             306      instrument or check is negotiated; and
             307          (iii) for any other type of contribution, that any portion of the contribution's benefit
             308      inures to the school board office candidate.
             309          (b) Each school board office candidate shall report to the chief election officer each
             310      contribution and public service assistance received by the school board office candidate:
             311          (i) except as provided in Subsection (6)(b)(ii), within 30 days after the day on which
             312      the contribution or public service assistance is received[.]; or
             313          (ii) within three business days after the day on which the contribution or public service
             314      assistance is received, if:
             315          (A) the school board office candidate is contested in a primary election and the
             316      contribution or public service assistance is received within 30 days before the day on which the
             317      primary election is held; or
             318          (B) the school board office candidate is contested in a general election and the
             319      contribution or public service assistance is received within 30 days before the day on which the
             320      general election is held.
             321          (c) Except as provided in Subsection (6)(d), for each contribution or provision of
             322      public service assistance that a school board office candidate fails to report within the time
             323      period described in Subsection (6)(b), the chief election officer shall impose a fine against the
             324      school board office candidate in an amount equal to:
             325          (i) the greater of $50 or 15% of the amount of the contribution; or
             326          (ii) the greater of $50 or 15% of the value of the public service assistance.
             327          (d) A fine described in Subsection (6)(c) may not exceed the amount of the
             328      contribution or the value of the public service assistance to which the fine relates.
             329          (e) The chief election officer shall:
             330          (i) deposit money received under Subsection (6)(c) into the General Fund; and
             331          (ii) report on the chief election officer's website, in the location where reports relating
             332      to each school board office candidate are available for public access:
             333          (A) each fine imposed by the chief election officer against the school board office
             334      candidate;
             335          (B) the amount of the fine;


             336          (C) the amount of the contribution to which the fine relates; and
             337          (D) the date of the contribution.
             338          (7) (a) As used in this Subsection (7), "account" means an account in a financial
             339      institution:
             340          (i) that is not described in Subsection (1)(a)(i); and
             341          (ii) into which or from which a person who, as a candidate for an office, other than a
             342      school board office for which the person files a declaration of candidacy or federal office, or as
             343      a holder of an office, other than a school board office for which the person files a declaration of
             344      candidacy or federal office, deposits a contribution or makes an expenditure.
             345          (b) A school board office candidate shall include on any financial statement filed in
             346      accordance with this part:
             347          (i) a contribution deposited in an account:
             348          (A) since the last campaign finance statement was filed; or
             349          (B) that has not been reported under a statute or ordinance that governs the account; or
             350          (ii) an expenditure made from an account:
             351          (A) since the last campaign finance statement was filed; or
             352          (B) that has not been reported under a statute or ordinance that governs the account.
             353          Section 5. Section 20A-11-1604 is enacted to read:
             354          20A-11-1604. Link to financial reports on Legislature's website.
             355          The Legislature's website shall include, for each legislative officeholder, a link to the
             356      financial reports maintained on the lieutenant governor's website in relation to that legislative
             357      officeholder.
             358          Section 6. Section 20A-12-303 is amended to read:
             359           20A-12-303. Separate account for campaign funds -- Reporting contributions.
             360          (1) The judge or the judge's personal campaign committee shall deposit each
             361      contribution in one or more separate personal campaign accounts in a financial institution.
             362          (2) The judge or the judge's personal campaign committee may not deposit or mingle
             363      any contributions received into a personal or business account.
             364          (3) (a) As used in this Subsection (3) and Section 20A-12-305 , "received" means:
             365          (i) for a cash contribution, that the cash is given to a judge or the judge's personal
             366      campaign committee;


             367          (ii) for a contribution that is a negotiable instrument or check, that the negotiable
             368      instrument or check is negotiated; and
             369          (iii) for any other type of contribution, that any portion of the contribution's benefit
             370      inures to the judge.
             371          (b) The judge or the judge's personal campaign committee shall report to the lieutenant
             372      governor each contribution received by the judge, within 30 days after the day on which the
             373      contribution is received.
             374          (c) Except as provided in Subsection (3)(d), for each contribution that a judge fails to
             375      report within the time period described in Subsection (3)(b), the lieutenant governor shall
             376      impose a fine against the judge in an amount equal to the greater of $50 or 15% of the amount
             377      of the contribution.
             378          (d) A fine described in Subsection (3)(c) may not exceed the amount of the
             379      contribution to which the fine relates.
             380          (e) The lieutenant governor shall:
             381          (i) deposit money received under Subsection (3)(c) into the General Fund; and
             382          (ii) report on the lieutenant governor's website, in the location where reports relating to
             383      each judge are available for public access:
             384          (A) each fine imposed by the lieutenant governor against the judge;
             385          (B) the amount of the fine;
             386          (C) the amount of the contribution to which the fine relates; and
             387          (D) the date of the contribution.
             388          Section 7. Section 36-11-102 is amended to read:
             389           36-11-102. Definitions.
             390          As used in this chapter:
             391          (1) "Aggregate daily expenditures" means:
             392          (a) for a single lobbyist, principal, or government officer, the total of all expenditures
             393      made within a calendar day by the lobbyist, principal, or government officer for the benefit of
             394      an individual public official;
             395          (b) for an expenditure made by a member of a lobbyist group, the total of all
             396      expenditures made within a calendar day by every member of the lobbyist group for the benefit
             397      of an individual public official; or


             398          (c) for a multiclient lobbyist, the total of all expenditures made by the multiclient
             399      lobbyist within a calendar day for the benefit of an individual public official, regardless of
             400      whether the expenditures were attributed to different clients.
             401          (2) "Approved meeting or activity" means a meeting or activity:
             402          (a) (i) to which a legislator is invited; and
             403          (ii) attendance at which is approved by:
             404          (A) the speaker of the House of Representatives, if the public official is a member of
             405      the House of Representatives; or
             406          (B) the president of the Senate, if the public official is a member of the Senate; or
             407          (b) (i) to which a public official who holds a position in the executive branch of state
             408      government is invited; and
             409          (ii) attendance at which is approved by the governor or the lieutenant governor.
             410          (3) "Capitol hill complex" is as defined in Section 63C-9-102 .
             411          [(3)] (4) (a) "Compensation" means anything of economic value, however designated,
             412      that is paid, loaned, granted, given, donated, or transferred to an individual for the provision of
             413      services or ownership before any withholding required by federal or state law.
             414          (b) "Compensation" includes:
             415          (i) a salary or commission;
             416          (ii) a bonus;
             417          (iii) a benefit;
             418          (iv) a contribution to a retirement program or account;
             419          (v) a payment includable in gross income, as defined in Section 62, Internal Revenue
             420      Code, and subject to Social Security deductions, including a payment in excess of the
             421      maximum amount subject to deduction under Social Security law;
             422          (vi) an amount that the individual authorizes to be deducted or reduced for salary
             423      deferral or other benefits authorized by federal law; or
             424          (vii) income based on an individual's ownership interest.
             425          [(4)] (5) "Compensation payor" means a person who pays compensation to a public
             426      official in the ordinary course of business:
             427          (a) because of the public official's ownership interest in the compensation payor; or
             428          (b) for services rendered by the public official on behalf of the compensation payor.


             429          [(5)] (6) "Executive action" means:
             430          (a) a nomination or appointment by the governor;
             431          (b) the proposal, drafting, amendment, enactment, or defeat by a state agency of a rule
             432      made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
             433          (c) agency ratemaking proceedings; or
             434          (d) an adjudicative proceeding of a state agency.
             435          [(6)] (7) (a) "Expenditure" means any of the items listed in this Subsection [(6)] (7)(a)
             436      when given to or for the benefit of a public official unless consideration of equal or greater
             437      value is received:
             438          (i) a purchase, payment, or distribution;
             439          (ii) a loan, gift, or advance;
             440          (iii) a deposit, subscription, or forbearance;
             441          (iv) services or goods;
             442          (v) money;
             443          (vi) real property;
             444          (vii) a ticket or admission to a sporting, recreational, or artistic event; or
             445          (viii) a contract, promise, or agreement, whether or not legally enforceable, to provide
             446      any item listed in Subsections [(6)] (7)(a)(i) through (vii).
             447          (b) "Expenditure" does not mean:
             448          (i) a commercially reasonable loan made in the ordinary course of business;
             449          (ii) a campaign contribution reported in accordance with Title 20A, Chapter 11,
             450      Campaign and Financial Reporting Requirements;
             451          (iii) printed informational material that is related to the performance of the recipient's
             452      official duties;
             453          (iv) a devise or inheritance;
             454          (v) any item listed in Subsection [(6)] (7)(a) if:
             455          (A) given by a relative;
             456          (B) given by a compensation payor for a purpose solely unrelated to the public
             457      official's position as a public official; or
             458          (C) (I) the item has a value of less than $10; and
             459          (II) the aggregate daily expenditures do not exceed $10;


             460          (vi) food or beverage that is provided at an event to which the following are invited:
             461          (A) all members of the Legislature;
             462          (B) all members of a standing or interim committee;
             463          (C) all members of an official legislative task force;
             464          (D) all members of a party caucus; or
             465          (E) all members of a group described in Subsections [(6)] (7)(b)(vi)(A) through (D)
             466      who are attending a meeting of a national organization whose primary purpose is addressing
             467      general legislative policy;
             468          (vii) food or beverage that is provided at an event to a public official who is:
             469          (A) giving a speech at the event;
             470          (B) participating in a panel discussion at the event; or
             471          (C) presenting or receiving an award at the event;
             472          (viii) a plaque, commendation, or award presented in public and having a cash value
             473      not exceeding $50;
             474          (ix) admission to or attendance at an event, the primary purpose of which is:
             475          (A) to solicit contributions reportable under:
             476          (I) Title 20A, Chapter 11, Campaign and Financial Reporting Requirements; or
             477          (II) 2 U.S.C. Sec. 434; or
             478          (B) charitable solicitation, as defined in Section 13-22-2 ;
             479          (x) travel to, lodging at, food or beverage served at, and admission to an approved
             480      meeting or activity;
             481          (xi) sponsorship of an official event or official entertainment of an approved meeting
             482      or activity;
             483          (xii) notwithstanding Subsection [(6)] (7)(a)(vii), admission to or attendance at an
             484      event:
             485          (A) that is sponsored by a governmental entity; or
             486          (B) that is widely attended and related to a governmental duty of a public official; or
             487          (xiii) travel to a widely attended event related to a governmental duty of a public
             488      official if that travel results in a financial savings to the state.
             489          [(7)] (8) (a) "Government officer" means:
             490          (i) an individual elected to a position in state or local government, when acting within


             491      the government officer's official capacity; or
             492          (ii) an individual appointed to or employed in a full-time position by state or local
             493      government, when acting within the scope of the individual's employment.
             494          (b) "Government officer" does not mean a member of the legislative branch of state
             495      government.
             496          [(8)] (9) "Immediate family" means:
             497          (a) a spouse;
             498          (b) a child residing in the household; or
             499          (c) an individual claimed as a dependent for tax purposes.
             500          [(9)] (10) "Legislative action" means:
             501          (a) a bill, resolution, amendment, nomination, veto override, or other matter pending or
             502      proposed in either house of the Legislature or its committees or requested by a legislator; and
             503          (b) the action of the governor in approving or vetoing legislation.
             504          [(10)] (11) "Lobbying" means communicating with a public official for the purpose of
             505      influencing the passage, defeat, amendment, or postponement of legislative or executive action.
             506          [(11)] (12) (a) "Lobbyist" means:
             507          (i) an individual who is employed by a principal; or
             508          (ii) an individual who contracts for economic consideration, other than reimbursement
             509      for reasonable travel expenses, with a principal to lobby a public official.
             510          (b) "Lobbyist" does not include:
             511          (i) a government officer;
             512          (ii) a member or employee of the legislative branch of state government;
             513          (iii) a person while appearing at, or providing written comments to, a hearing
             514      conducted in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act or
             515      Title 63G, Chapter 4, Administrative Procedures Act;
             516          (iv) a person participating on or appearing before an advisory or study task force,
             517      commission, board, or committee, constituted by the Legislature or any agency or department
             518      of state government, except legislative standing, appropriation, or interim committees;
             519          (v) a representative of a political party;
             520          (vi) an individual representing a bona fide church solely for the purpose of protecting
             521      the right to practice the religious doctrines of the church, unless the individual or church makes


             522      an expenditure that confers a benefit on a public official;
             523          (vii) a newspaper, television station or network, radio station or network, periodical of
             524      general circulation, or book publisher for the purpose of publishing news items, editorials,
             525      other comments, or paid advertisements that directly or indirectly urge legislative or executive
             526      action; or
             527          (viii) an individual who appears on the individual's own behalf before a committee of
             528      the Legislature or an agency of the executive branch of state government solely for the purpose
             529      of testifying in support of or in opposition to legislative or executive action.
             530          [(12)] (13) "Lobbyist group" means two or more lobbyists, principals, government
             531      officers, or any combination of lobbyists, principals, and officers who each contribute a portion
             532      of an expenditure made to benefit a public official or member of the public official's immediate
             533      family.
             534          [(13)] (14) "Multiclient lobbyist" means a single lobbyist, principal, or government
             535      officer who represents two or more clients and divides the aggregate daily expenditure made to
             536      benefit a public official or member of the public official's immediate family between two or
             537      more of those clients.
             538          [(14)] (15) "Principal" means a person that employs an individual to perform lobbying,
             539      either as an employee or as an independent contractor.
             540          [(15)] (16) "Public official" means:
             541          (a) (i) a member of the Legislature;
             542          (ii) an individual elected to a position in the executive branch of state government; or
             543          (iii) an individual appointed to or employed in a position in the executive or legislative
             544      branch of state government if that individual:
             545          (A) occupies a policymaking position or makes purchasing or contracting decisions;
             546          (B) drafts legislation or makes rules;
             547          (C) determines rates or fees; or
             548          (D) makes adjudicative decisions; or
             549          (b) an immediate family member of a person described in Subsection [(15)] (16)(a).
             550          [(16)] (17) "Public official type" means a notation to identify whether a public official
             551      is:
             552          (a) (i) a member of the Legislature;


             553          (ii) an individual elected to a position in the executive branch of state government;
             554          (iii) an individual appointed to or employed in a position in the legislative branch of
             555      state government who meets the definition of public official under Subsection [(15)]
             556      (16)(a)(iii); or
             557          (iv) an individual appointed to or employed in a position in the executive branch of
             558      state government who meets the definition of public official under Subsection [(15)]
             559      (16)(a)(iii); or
             560          (b) an immediate family member of a person described in Subsection [(15)(b)] (16)(a).
             561          [(17)] (18) "Quarterly reporting period" means the three-month period covered by each
             562      financial report required under Subsection 36-11-201 (2)(a).
             563          [(18)] (19) "Related person" means a person, agent, or employee who knowingly and
             564      intentionally assists a lobbyist, principal, or government officer in lobbying.
             565          [(19)] (20) "Relative" means a spouse, child, parent, grandparent, grandchild, brother,
             566      sister, parent-in-law, brother-in-law, sister-in-law, nephew, niece, aunt, uncle, first cousin, or
             567      spouse of any of these individuals.
             568          Section 8. Section 36-11-103 is amended to read:
             569           36-11-103. Licensing requirements.
             570          (1) (a) Before engaging in any lobbying, a lobbyist shall obtain a license from the
             571      lieutenant governor by completing the form required by this section.
             572          (b) The lieutenant governor shall issue licenses to qualified lobbyists.
             573          (c) The lieutenant governor shall prepare a Lobbyist License Application Form that
             574      includes:
             575          (i) a place for the lobbyist's name and business address;
             576          (ii) a place for the following information for each principal for whom the lobbyist
             577      works or is hired as an independent contractor:
             578          (A) the principal's name;
             579          (B) the principal's business address;
             580          (C) the name of each public official that the principal employs and the nature of the
             581      employment with the public official; and
             582          (D) the general purposes, interests, and nature of the principal;
             583          (iii) a place for the name and address of the person who paid or will pay the lobbyist's


             584      registration fee, if the fee is not paid by the lobbyist;
             585          (iv) a place for the lobbyist to disclose:
             586          (A) any elected or appointed position that the lobbyist holds in state or local
             587      government, if any; and
             588          (B) the name of each public official that the lobbyist employs and the nature of the
             589      employment with the public official, if any;
             590          (v) a place for the lobbyist to disclose the types of expenditures for which the lobbyist
             591      will be reimbursed; and
             592          (vi) a certification to be signed by the lobbyist that certifies that the information
             593      provided in the form is true, accurate, and complete to the best of the lobbyist's knowledge and
             594      belief.
             595          (2) Each lobbyist who obtains a license under this section shall update the licensure
             596      information when the lobbyist accepts employment for lobbying by a new client.
             597          (3) (a) Except as provided in Subsection (4), the lieutenant governor shall grant a
             598      lobbying license to an applicant who:
             599          (i) files an application with the lieutenant governor that contains the information
             600      required by this section; and
             601          (ii) pays a [$100] $110 filing fee.
             602          (b) A license entitles a person to serve as a lobbyist on behalf of one or more principals
             603      and expires on December 31 of each even-numbered year.
             604          (4) (a) The lieutenant governor may disapprove an application for a lobbying license:
             605          (i) if the applicant has been convicted of violating Section 76-8-103 , 76-8-107 ,
             606      76-8-108 , or 76-8-303 within five years before the date of the lobbying license application;
             607          (ii) if the applicant has been convicted of violating Section 76-8-104 or 76-8-304
             608      within one year before the date of the lobbying license application;
             609          (iii) for the term of any suspension imposed under Section 36-11-401 ;
             610          (iv) if, within one year before the date of the lobbying license application, the applicant
             611      has been found to have willingly and knowingly:
             612          (A) violated this section or Section 36-11-201 , 36-11-301 , 36-11-302 , 36-11-303 ,
             613      36-11-304 , 36-11-305 , or 36-11-403 ; or
             614          (B) filed a document required by this chapter that the lobbyist knew contained


             615      materially false information or omitted material information; or
             616          (v) if the applicant is prohibited from becoming a lobbyist under Title 67, Chapter 24,
             617      Lobbying Restrictions Act.
             618          (b) An applicant may appeal the disapproval in accordance with the procedures
             619      established by the lieutenant governor under this chapter and Title 63G, Chapter 4,
             620      Administrative Procedures Act.
             621          (5) The lieutenant governor shall:
             622          (a) deposit $100 of each license [fees in] fee into the General Fund[.]; and
             623          (b) deposit $10 of each license fee into the General Fund as a dedicated credit to be
             624      used by the lieutenant governor to pay the cost of administering the license program described
             625      in this section.
             626          (6) A principal need not obtain a license under this section, but if the principal makes
             627      expenditures to benefit a public official without using a lobbyist as an agent to confer those
             628      benefits, the principal shall disclose those expenditures as required by Section 36-11-201 .
             629          (7) Government officers need not obtain a license under this section, but shall disclose
             630      any expenditures made to benefit public officials as required by Section 36-11-201 .
             631          (8) Surrender, cancellation, or expiration of a lobbyist license does not absolve the
             632      lobbyist of the duty to file the financial reports if the lobbyist is otherwise required to file the
             633      reports by Section 36-11-201 .
             634          Section 9. Section 36-11-305.5 is enacted to read:
             635          36-11-305.5. Lobbyist requirements.
             636          (1) The lieutenant governor shall issue to each lobbyist a name tag that includes:
             637          (a) the word "Lobbyist" in at least 18-point type; and
             638          (b) the first and last name of the lobbyist, in at least 18-point type.
             639          (2) Beginning on August 1, 2014, a lobbyist may not lobby a public official while the
             640      lobbyist is at the capitol hill complex unless the lobbyist is wearing the name tag described in
             641      Subsection (1) in plain view.
             642          (3) A lobbyist shall, at the beginning of making a communication to a public official
             643      that constitutes lobbying, inform the public official of the identity of the principal on whose
             644      behalf the lobbyist is lobbying.
             645          Section 10. Section 36-11-401 is amended to read:


             646           36-11-401. Penalties.
             647          (1) Any person who [willfully and knowingly] intentionally violates Section
             648      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
             649      36-11-403 , is subject to the following penalties:
             650          (a) an administrative penalty of up to $1,000 for each violation; and
             651          (b) for each subsequent violation of that same section within 24 months, either:
             652          (i) an administrative penalty of up to $5,000; or
             653          (ii) suspension of the violator's lobbying license for up to one year, if the person is a
             654      lobbyist.
             655          (2) Any person who [willfully and knowingly] intentionally fails to file a financial
             656      report required by this chapter, omits material information from a license application form or
             657      financial report, or files false information on a license application form or financial report, is
             658      subject to the following penalties:
             659          (a) an administrative penalty of up to $1,000 for each violation; or
             660          (b) suspension of the violator's lobbying license for up to one year, if the person is a
             661      lobbyist.
             662          (3) Any person who [willfully and knowingly] intentionally fails to file a financial
             663      report required by this chapter on the date that it is due shall, in addition to the penalties, if any,
             664      imposed under Subsection (1) or (2), pay a penalty of up to $50 per day for each day that the
             665      report is late.
             666          (4) (a) When a lobbyist is convicted of violating Section 76-8-103 , 76-8-107 , 76-8-108 ,
             667      or 76-8-303 , the lieutenant governor shall suspend the lobbyist's license for up to five years
             668      from the date of the conviction.
             669          (b) When a lobbyist is convicted of violating Section 76-8-104 or 76-8-304 , the
             670      lieutenant governor shall suspend a lobbyist's license for up to one year from the date of
             671      conviction.
             672          (5) (a) Any person who [willfully and knowingly] intentionally violates Section
             673      36-11-301 , 36-11-302 , or 36-11-303 is guilty of a class B misdemeanor.
             674          (b) The lieutenant governor shall suspend the lobbyist license of any person convicted
             675      under any of these sections for up to one year.
             676          (c) The suspension shall be in addition to any administrative penalties imposed by the


             677      lieutenant governor under this section.
             678          (d) Any person with evidence of a possible violation of this chapter may submit that
             679      evidence to the lieutenant governor for investigation and resolution.
             680          (6) A lobbyist who does not complete the training required by Section 36-11-307 is
             681      subject to the following penalties:
             682          (a) an administrative penalty of up to $1,000 for each failure to complete the training
             683      required by Section 36-11-307 ; and
             684          (b) for two or more failures to complete the training required by Section 36-11-307
             685      within 24 months, suspension of the lobbyist's lobbying license.
             686          (7) Nothing in this chapter creates a third-party cause of action or appeal rights.
             687          Section 11. Effective date.
             688          If approved by two-thirds of all the members elected to each house, this bill takes effect
             689      upon approval by the governor, or the day following the constitutional time limit of Utah
             690      Constitution, Article VII, Section 8, without the governor's signature, or in the case of a veto,
             691      the date of veto override.
             692          Section 12. Coordinating H.B. 246 with S.B. 97 -- Substantive amendments.
             693          If this H.B. 246 and S.B. 97, Lobbyist Disclosure and Regulation Act, both pass and
             694      become law, it is the intent of the Legislature that the changes to Subsection 36-11-103 (5) in
             695      S.B. 97 supercede the changes to Subsection 36-11-103 (5) in this bill when the Office of
             696      Legislative Research and General Counsel prepares the Utah Code database for publication.


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