H.B. 260

             1     

LOCAL SCHOOL BOARD CANDIDATE REPORTING

             2     
AMENDMENTS

             3     
2014 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Kraig Powell

             6     
Senate Sponsor: Kevin T. Van Tassell

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill amends provisions of the Election Code and Title 17, Chapter 16, County
             11      Officers, in relation to financial reporting requirements for a local school board
             12      candidate.
             13      Highlighted Provisions:
             14          This bill:
             15          .    removes provisions that require a local school board office candidate to comply
             16      with the financial reporting requirements applicable to a state school board office
             17      candidate;
             18          .    requires a local school board office candidate to comply with the financial reporting
             19      requirements applicable to a county office candidate in the county where the local
             20      school board office candidate resides; and
             21          .    makes technical and conforming changes.
             22      Money Appropriated in this Bill:
             23          None
             24      Other Special Clauses:
             25          None
             26      Utah Code Sections Affected:
             27      AMENDS:


             28           17-16-6.5 , as last amended by Laws of Utah 2012, Chapter 230
             29           20A-11-101 , as last amended by Laws of Utah 2013, Chapters 86, 170, 318, and 420
             30           20A-11-1301 , as last amended by Laws of Utah 2012, Chapter 230
             31           20A-11-1303 , as last amended by Laws of Utah 2013, Chapter 420
             32           20A-11-1305 , as last amended by Laws of Utah 2013, Chapters 252, 317, and 420
             33     
             34      Be it enacted by the Legislature of the state of Utah:
             35          Section 1. Section 17-16-6.5 is amended to read:
             36           17-16-6.5. Campaign financial disclosure in county elections.
             37          (1) (a) A county shall adopt an ordinance establishing campaign finance disclosure
             38      requirements for:
             39          (i) candidates for county office[.]; and
             40          (ii) candidates for local school board office who reside in that county.
             41          (b) The ordinance required by Subsection (1)(a) shall include:
             42          (i) a requirement that each candidate for county office or local school board office
             43      report the candidate's itemized and total campaign contributions and expenditures at least once
             44      within the two weeks before the election and at least once within two months after the election;
             45          (ii) a definition of "contribution" and "expenditure" that requires reporting of
             46      nonmonetary contributions such as in-kind contributions and contributions of tangible things;
             47          (iii) a requirement that the financial reports identify:
             48          (A) for each contribution of more than $50, the name of the donor of the contribution
             49      and the amount of the contribution; and
             50          (B) for each expenditure, the name of the recipient and the amount of the expenditure;
             51          (iv) a requirement that a candidate for county office or local school board office
             52      deposit a contribution in a separate campaign account in a financial institution; and
             53          (v) a prohibition against a candidate for county office or local school board office
             54      depositing or mingling any contributions received into a personal or business account.
             55          (c) (i) As used in this Subsection (1)(c), "account" means an account in a financial
             56      institution:
             57          (A) that is not described in Subsection (1)(b)(iv); and
             58          (B) into which or from which a person who, as a candidate for an office, other than a


             59      county office for which the person files a declaration of candidacy or federal office, or as a
             60      holder of an office, other than a county office for which the person files a declaration of
             61      candidacy or federal office, deposits a contribution or makes an expenditure.
             62          (ii) The ordinance required by Subsection (1)(a) shall include a requirement that a
             63      candidate for county office or local school board office include on a financial report filed in
             64      accordance with the ordinance a contribution deposited in or an expenditure made from an
             65      account:
             66          (A) since the last financial report was filed; or
             67          (B) that has not been reported under a statute or ordinance that governs the account.
             68          (2) If any county fails to adopt a campaign finance disclosure ordinance described in
             69      Subsection (1), candidates for county office, other than community council office, and
             70      candidates for local school board office shall comply with the financial reporting requirements
             71      contained in Subsections (3) through (7).
             72          (3) A candidate for elective office in a county or local school board office:
             73          (a) shall deposit a contribution in a separate campaign account in a financial institution;
             74      and
             75          (b) may not deposit or mingle any contributions received into a personal or business
             76      account.
             77          (4) Each candidate for elective office in any county who is not required to submit a
             78      campaign financial statement to the lieutenant governor, and each candidate for local school
             79      board office, shall file a signed campaign financial statement with the county clerk:
             80          (a) seven days before the date of the regular general election, reporting each
             81      contribution of more than $50 and each expenditure as of 10 days before the date of the regular
             82      general election; and
             83          (b) no later than 30 days after the date of the regular general election.
             84          (5) (a) The statement filed seven days before the regular general election shall include:
             85          (i) a list of each contribution of more than $50 received by the candidate, and the name
             86      of the donor;
             87          (ii) an aggregate total of all contributions of $50 or less received by the candidate; and
             88          (iii) a list of each expenditure for political purposes made during the campaign period,
             89      and the recipient of each expenditure.


             90          (b) The statement filed 30 days after the regular general election shall include:
             91          (i) a list of each contribution of more than $50 received after the cutoff date for the
             92      statement filed seven days before the election, and the name of the donor;
             93          (ii) an aggregate total of all contributions of $50 or less received by the candidate after
             94      the cutoff date for the statement filed seven days before the election; and
             95          (iii) a list of all expenditures for political purposes made by the candidate after the
             96      cutoff date for the statement filed seven days before the election, and the recipient of each
             97      expenditure.
             98          (6) (a) As used in this Subsection (6), "account" means an account in a financial
             99      institution:
             100          (i) that is not described in Subsection (3)(a); and
             101          (ii) into which or from which a person who, as a candidate for an office, other than a
             102      county office for which the person filed a declaration of candidacy or federal office, or as a
             103      holder of an office, other than a county office for which the person filed a declaration of
             104      candidacy or federal office, deposits a contribution or makes an expenditure.
             105          (b) A county office candidate and a local school board office candidate shall include on
             106      any campaign financial statement filed in accordance with Subsection (4) or (5):
             107          (i) a contribution deposited in an account:
             108          (A) since the last campaign finance statement was filed; or
             109          (B) that has not been reported under a statute or ordinance that governs the account; or
             110          (ii) an expenditure made from an account:
             111          (A) since the last campaign finance statement was filed; or
             112          (B) that has not been reported under a statute or ordinance that governs the account.
             113          (7) Candidates for elective office in any county, and candidates for local school board
             114      office, who are eliminated at a primary election shall file a signed campaign financial statement
             115      containing the information required by this section not later than 30 days after the primary
             116      election.
             117          (8) Any person who fails to comply with this section is guilty of an infraction.
             118          (9) (a) Counties may, by ordinance, enact requirements that:
             119          [(a)] (i) require greater disclosure of campaign contributions and expenditures; and
             120          [(b)] (ii) impose additional penalties.


             121          (b) The requirements described in Subsection (9)(a) apply to a local school board office
             122      candidate who resides in that county.
             123          (10) (a) If a candidate fails to file an interim report due before the election, the county
             124      clerk shall, after making a reasonable attempt to discover if the report was timely mailed,
             125      inform the appropriate election officials who:
             126          (i) (A) shall, if practicable, remove the name of the candidate by blacking out the
             127      candidate's name before the ballots are delivered to voters; or
             128          (B) shall, if removing the candidate's name from the ballot is not practicable, inform
             129      the voters by any practicable method that the candidate has been disqualified and that votes
             130      cast for the candidate will not be counted; and
             131          (ii) may not count any votes for that candidate.
             132          (b) Notwithstanding Subsection (10)(a), a candidate is not disqualified if:
             133          (i) the candidate files the reports required by this section;
             134          (ii) those reports are completed, detailing accurately and completely the information
             135      required by this section except for inadvertent omissions or insignificant errors or inaccuracies;
             136      and
             137          (iii) those omissions, errors, or inaccuracies are corrected in an amended report or in
             138      the next scheduled report.
             139          (c) A report is considered filed if:
             140          (i) it is received in the county clerk's office no later than 5 p.m. on the date that it is
             141      due;
             142          (ii) it is received in the county clerk's office with a United States Postal Service
             143      postmark three days or more before the date that the report was due; or
             144          (iii) the candidate has proof that the report was mailed, with appropriate postage and
             145      addressing, three days before the report was due.
             146          (11) (a) Any private party in interest may bring a civil action in district court to enforce
             147      the provisions of this section or any ordinance adopted under this section.
             148          (b) In a civil action filed under Subsection (11)(a), the court shall award costs and
             149      attorney's fees to the prevailing party.
             150          (12) Notwithstanding any provision of Title 63G, Chapter 2, Government Records
             151      Access and Management Act, the county clerk shall:


             152          (a) make each campaign finance statement filed by a candidate available for public
             153      inspection and copying no later than one business day after the statement is filed; and
             154          (b) make the campaign finance statement filed by a candidate available for public
             155      inspection by:
             156          (i) (A) posting an electronic copy or the contents of the statement on the county's
             157      website no later than seven business days after the statement is filed; and
             158          (B) verifying that the address of the county's website has been provided to the
             159      lieutenant governor in order to meet the requirements of Subsection 20A-11-103 (5); or
             160          (ii) submitting a copy of the statement to the lieutenant governor for posting on the
             161      website established by the lieutenant governor under Section 20A-11-103 no later than two
             162      business days after the statement is filed.
             163          Section 2. Section 20A-11-101 is amended to read:
             164           20A-11-101. Definitions.
             165          As used in this chapter:
             166          (1) "Address" means the number and street where an individual resides or where a
             167      reporting entity has its principal office.
             168          (2) "Ballot proposition" includes initiatives, referenda, proposed constitutional
             169      amendments, and any other ballot propositions submitted to the voters that are authorized by
             170      the Utah Code Annotated 1953.
             171          (3) "Candidate" means any person who:
             172          (a) files a declaration of candidacy for a public office; or
             173          (b) receives contributions, makes expenditures, or gives consent for any other person to
             174      receive contributions or make expenditures to bring about the person's nomination or election
             175      to a public office.
             176          (4) "Chief election officer" means:
             177          (a) the lieutenant governor for state office candidates, legislative office candidates,
             178      officeholders, political parties, political action committees, corporations, political issues
             179      committees, state school board candidates, judges, and labor organizations, as defined in
             180      Section 20A-11-1501 ; and
             181          (b) the county clerk for local school board candidates.
             182          (5) (a) "Contribution" means any of the following when done for political purposes:


             183          (i) a gift, subscription, donation, loan, advance, or deposit of money or anything of
             184      value given to the filing entity;
             185          (ii) an express, legally enforceable contract, promise, or agreement to make a gift,
             186      subscription, donation, unpaid or partially unpaid loan, advance, or deposit of money or
             187      anything of value to the filing entity;
             188          (iii) any transfer of funds from another reporting entity to the filing entity;
             189          (iv) compensation paid by any person or reporting entity other than the filing entity for
             190      personal services provided without charge to the filing entity;
             191          (v) remuneration from:
             192          (A) any organization or its directly affiliated organization that has a registered lobbyist;
             193      or
             194          (B) any agency or subdivision of the state, including school districts; and
             195          (vi) goods or services provided to or for the benefit of the filing entity at less than fair
             196      market value.
             197          (b) "Contribution" does not include:
             198          (i) services provided without compensation by individuals volunteering a portion or all
             199      of their time on behalf of the filing entity;
             200          (ii) money lent to the filing entity by a financial institution in the ordinary course of
             201      business; or
             202          (iii) goods or services provided for the benefit of a candidate or political party at less
             203      than fair market value that are not authorized by or coordinated with the candidate or political
             204      party.
             205          (6) "Coordinated with" means that goods or services provided for the benefit of a
             206      candidate or political party are provided:
             207          (a) with the candidate's or political party's prior knowledge, if the candidate or political
             208      party does not object;
             209          (b) by agreement with the candidate or political party;
             210          (c) in coordination with the candidate or political party; or
             211          (d) using official logos, slogans, and similar elements belonging to a candidate or
             212      political party.
             213          (7) (a) "Corporation" means a domestic or foreign, profit or nonprofit, business


             214      organization that is registered as a corporation or is authorized to do business in a state and
             215      makes any expenditure from corporate funds for:
             216          (i) the purpose of expressly advocating for political purposes; or
             217          (ii) the purpose of expressly advocating the approval or the defeat of any ballot
             218      proposition.
             219          (b) "Corporation" does not mean:
             220          (i) a business organization's political action committee or political issues committee; or
             221          (ii) a business entity organized as a partnership or a sole proprietorship.
             222          (8) "County political party" means, for each registered political party, all of the persons
             223      within a single county who, under definitions established by the political party, are members of
             224      the registered political party.
             225          (9) "County political party officer" means a person whose name is required to be
             226      submitted by a county political party to the lieutenant governor in accordance with Section
             227      20A-8-402 .
             228          (10) "Detailed listing" means:
             229          (a) for each contribution or public service assistance:
             230          (i) the name and address of the individual or source making the contribution or public
             231      service assistance;
             232          (ii) the amount or value of the contribution or public service assistance; and
             233          (iii) the date the contribution or public service assistance was made; and
             234          (b) for each expenditure:
             235          (i) the amount of the expenditure;
             236          (ii) the person or entity to whom it was disbursed;
             237          (iii) the specific purpose, item, or service acquired by the expenditure; and
             238          (iv) the date the expenditure was made.
             239          (11) (a) "Donor" means a person that gives money, including a fee, due, or assessment
             240      for membership in the corporation, to a corporation without receiving full and adequate
             241      consideration for the money.
             242          (b) "Donor" does not include a person that signs a statement that the corporation may
             243      not use the money for an expenditure or political issues expenditure.
             244          (12) "Election" means each:


             245          (a) regular general election;
             246          (b) regular primary election; and
             247          (c) special election at which candidates are eliminated and selected.
             248          (13) "Electioneering communication" means a communication that:
             249          (a) has at least a value of $10,000;
             250          (b) clearly identifies a candidate or judge; and
             251          (c) is disseminated through the Internet, newspaper, magazine, outdoor advertising
             252      facility, direct mailing, broadcast, cable, or satellite provider within 45 days of the clearly
             253      identified candidate's or judge's election date.
             254          (14) (a) "Expenditure" means:
             255          (i) any disbursement from contributions, receipts, or from the separate bank account
             256      required by this chapter;
             257          (ii) a purchase, payment, donation, distribution, loan, advance, deposit, gift of money,
             258      or anything of value made for political purposes;
             259          (iii) an express, legally enforceable contract, promise, or agreement to make any
             260      purchase, payment, donation, distribution, loan, advance, deposit, gift of money, or anything of
             261      value for political purposes;
             262          (iv) compensation paid by a filing entity for personal services rendered by a person
             263      without charge to a reporting entity;
             264          (v) a transfer of funds between the filing entity and a candidate's personal campaign
             265      committee; or
             266          (vi) goods or services provided by the filing entity to or for the benefit of another
             267      reporting entity for political purposes at less than fair market value.
             268          (b) "Expenditure" does not include:
             269          (i) services provided without compensation by individuals volunteering a portion or all
             270      of their time on behalf of a reporting entity;
             271          (ii) money lent to a reporting entity by a financial institution in the ordinary course of
             272      business; or
             273          (iii) anything listed in Subsection (14)(a) that is given by a reporting entity to
             274      candidates for office or officeholders in states other than Utah.
             275          (15) "Federal office" means the office of President of the United States, United States


             276      Senator, or United States Representative.
             277          (16) "Filing entity" means the reporting entity that is required to file a financial
             278      statement required by this chapter or Chapter 12, Part 2, Judicial Retention Elections.
             279          (17) "Financial statement" includes any summary report, interim report, verified
             280      financial statement, or other statement disclosing contributions, expenditures, receipts,
             281      donations, or disbursements that is required by this chapter or Chapter 12, Part 2, Judicial
             282      Retention Elections.
             283          (18) "Governing board" means the individual or group of individuals that determine the
             284      candidates and committees that will receive expenditures from a political action committee,
             285      political party, or corporation.
             286          (19) "Incorporation" means the process established by Title 10, Chapter 2, Part 1,
             287      Incorporation, by which a geographical area becomes legally recognized as a city or town.
             288          (20) "Incorporation election" means the election authorized by Section 10-2-111 .
             289          (21) "Incorporation petition" means a petition authorized by Section 10-2-109 .
             290          (22) "Individual" means a natural person.
             291          (23) "Interim report" means a report identifying the contributions received and
             292      expenditures made since the last report.
             293          (24) "Legislative office" means the office of state senator, state representative, speaker
             294      of the House of Representatives, president of the Senate, and the leader, whip, and assistant
             295      whip of any party caucus in either house of the Legislature.
             296          (25) "Legislative office candidate" means a person who:
             297          (a) files a declaration of candidacy for the office of state senator or state representative;
             298          (b) declares oneself to be a candidate for, or actively campaigns for, the position of
             299      speaker of the House of Representatives, president of the Senate, or the leader, whip, and
             300      assistant whip of any party caucus in either house of the Legislature; or
             301          (c) receives contributions, makes expenditures, or gives consent for any other person to
             302      receive contributions or make expenditures to bring about the person's nomination, election, or
             303      appointment to a legislative office.
             304          (26) "Major political party" means either of the two registered political parties that
             305      have the greatest number of members elected to the two houses of the Legislature.
             306          (27) "Officeholder" means a person who holds a public office.


             307          (28) "Party committee" means any committee organized by or authorized by the
             308      governing board of a registered political party.
             309          (29) "Person" means both natural and legal persons, including individuals, business
             310      organizations, personal campaign committees, party committees, political action committees,
             311      political issues committees, and labor organizations, as defined in Section 20A-11-1501 .
             312          (30) "Personal campaign committee" means the committee appointed by a candidate to
             313      act for the candidate as provided in this chapter.
             314          (31) "Personal use expenditure" has the same meaning as provided under Section
             315      20A-11-104 .
             316          (32) (a) "Political action committee" means an entity, or any group of individuals or
             317      entities within or outside this state, a major purpose of which is to:
             318          (i) solicit or receive contributions from any other person, group, or entity for political
             319      purposes; or
             320          (ii) make expenditures to expressly advocate for any person to refrain from voting or to
             321      vote for or against any candidate or person seeking election to a municipal or county office.
             322          (b) "Political action committee" includes groups affiliated with a registered political
             323      party but not authorized or organized by the governing board of the registered political party
             324      that receive contributions or makes expenditures for political purposes.
             325          (c) "Political action committee" does not mean:
             326          (i) a party committee;
             327          (ii) any entity that provides goods or services to a candidate or committee in the regular
             328      course of its business at the same price that would be provided to the general public;
             329          (iii) an individual;
             330          (iv) individuals who are related and who make contributions from a joint checking
             331      account;
             332          (v) a corporation, except a corporation a major purpose of which is to act as a political
             333      action committee; or
             334          (vi) a personal campaign committee.
             335          (33) "Political convention" means a county or state political convention held by a
             336      registered political party to select candidates.
             337          (34) (a) "Political issues committee" means an entity, or any group of individuals or


             338      entities within or outside this state, a major purpose of which is to:
             339          (i) solicit or receive donations from any other person, group, or entity to assist in
             340      placing a ballot proposition on the ballot, assist in keeping a ballot proposition off the ballot, or
             341      to advocate that a voter refrain from voting or vote for or vote against any ballot proposition;
             342          (ii) make expenditures to expressly advocate for any person to sign or refuse to sign a
             343      ballot proposition or incorporation petition or refrain from voting, vote for, or vote against any
             344      proposed ballot proposition or an incorporation in an incorporation election; or
             345          (iii) make expenditures to assist in qualifying or placing a ballot proposition on the
             346      ballot or to assist in keeping a ballot proposition off the ballot.
             347          (b) "Political issues committee" does not mean:
             348          (i) a registered political party or a party committee;
             349          (ii) any entity that provides goods or services to an individual or committee in the
             350      regular course of its business at the same price that would be provided to the general public;
             351          (iii) an individual;
             352          (iv) individuals who are related and who make contributions from a joint checking
             353      account; or
             354          (v) a corporation, except a corporation a major purpose of which is to act as a political
             355      issues committee.
             356          (35) (a) "Political issues contribution" means any of the following:
             357          (i) a gift, subscription, unpaid or partially unpaid loan, advance, or deposit of money or
             358      anything of value given to a political issues committee;
             359          (ii) an express, legally enforceable contract, promise, or agreement to make a political
             360      issues donation to influence the approval or defeat of any ballot proposition;
             361          (iii) any transfer of funds received by a political issues committee from a reporting
             362      entity;
             363          (iv) compensation paid by another reporting entity for personal services rendered
             364      without charge to a political issues committee; and
             365          (v) goods or services provided to or for the benefit of a political issues committee at
             366      less than fair market value.
             367          (b) "Political issues contribution" does not include:
             368          (i) services provided without compensation by individuals volunteering a portion or all


             369      of their time on behalf of a political issues committee; or
             370          (ii) money lent to a political issues committee by a financial institution in the ordinary
             371      course of business.
             372          (36) (a) "Political issues expenditure" means any of the following:
             373          (i) any payment from political issues contributions made for the purpose of influencing
             374      the approval or the defeat of:
             375          (A) a ballot proposition; or
             376          (B) an incorporation petition or incorporation election;
             377          (ii) a purchase, payment, distribution, loan, advance, deposit, or gift of money made for
             378      the express purpose of influencing the approval or the defeat of:
             379          (A) a ballot proposition; or
             380          (B) an incorporation petition or incorporation election;
             381          (iii) an express, legally enforceable contract, promise, or agreement to make any
             382      political issues expenditure;
             383          (iv) compensation paid by a reporting entity for personal services rendered by a person
             384      without charge to a political issues committee; or
             385          (v) goods or services provided to or for the benefit of another reporting entity at less
             386      than fair market value.
             387          (b) "Political issues expenditure" does not include:
             388          (i) services provided without compensation by individuals volunteering a portion or all
             389      of their time on behalf of a political issues committee; or
             390          (ii) money lent to a political issues committee by a financial institution in the ordinary
             391      course of business.
             392          (37) "Political purposes" means an act done with the intent or in a way to influence or
             393      tend to influence, directly or indirectly, any person to refrain from voting or to vote for or
             394      against any candidate or a person seeking a municipal or county office at any caucus, political
             395      convention, or election.
             396          (38) (a) "Poll" means the survey of a person regarding the person's opinion or
             397      knowledge of an individual who has filed a declaration of candidacy for public office, or of a
             398      ballot proposition that has legally qualified for placement on the ballot, which is conducted in
             399      person or by telephone, facsimile, Internet, postal mail, or email.


             400          (b) "Poll" does not include:
             401          (i) a ballot; or
             402          (ii) an interview of a focus group that is conducted, in person, by one individual, if:
             403          (A) the focus group consists of more than three, and less than thirteen, individuals; and
             404          (B) all individuals in the focus group are present during the interview.
             405          (39) "Primary election" means any regular primary election held under the election
             406      laws.
             407          (40) "Public office" means the office of governor, lieutenant governor, state auditor,
             408      state treasurer, attorney general, state or local school board member, state senator, state
             409      representative, speaker of the House of Representatives, president of the Senate, and the leader,
             410      whip, and assistant whip of any party caucus in either house of the Legislature.
             411          (41) (a) "Public service assistance" means the following when given or provided to an
             412      officeholder to defray the costs of functioning in a public office or aid the officeholder to
             413      communicate with the officeholder's constituents:
             414          (i) a gift, subscription, donation, unpaid or partially unpaid loan, advance, or deposit of
             415      money or anything of value to an officeholder; or
             416          (ii) goods or services provided at less than fair market value to or for the benefit of the
             417      officeholder.
             418          (b) "Public service assistance" does not include:
             419          (i) anything provided by the state;
             420          (ii) services provided without compensation by individuals volunteering a portion or all
             421      of their time on behalf of an officeholder;
             422          (iii) money lent to an officeholder by a financial institution in the ordinary course of
             423      business;
             424          (iv) news coverage or any publication by the news media; or
             425          (v) any article, story, or other coverage as part of any regular publication of any
             426      organization unless substantially all the publication is devoted to information about the
             427      officeholder.
             428          (42) "Publicly identified class of individuals" means a group of 50 or more individuals
             429      sharing a common occupation, interest, or association that contribute to a political action
             430      committee or political issues committee and whose names can be obtained by contacting the


             431      political action committee or political issues committee upon whose financial statement the
             432      individuals are listed.
             433          (43) "Receipts" means contributions and public service assistance.
             434          (44) "Registered lobbyist" means a person registered under Title 36, Chapter 11,
             435      Lobbyist Disclosure and Regulation Act.
             436          (45) "Registered political action committee" means any political action committee that
             437      is required by this chapter to file a statement of organization with the Office of the Lieutenant
             438      Governor.
             439          (46) "Registered political issues committee" means any political issues committee that
             440      is required by this chapter to file a statement of organization with the Office of the Lieutenant
             441      Governor.
             442          (47) "Registered political party" means an organization of voters that:
             443          (a) participated in the last regular general election and polled a total vote equal to 2%
             444      or more of the total votes cast for all candidates for the United States House of Representatives
             445      for any of its candidates for any office; or
             446          (b) has complied with the petition and organizing procedures of Chapter 8, Political
             447      Party Formation and Procedures.
             448          (48) (a) "Remuneration" means a payment:
             449          (i) made to a legislator for the period the Legislature is in session; and
             450          (ii) that is approximately equivalent to an amount a legislator would have earned
             451      during the period the Legislature is in session in the legislator's ordinary course of business.
             452          (b) "Remuneration" does not mean anything of economic value given to a legislator by:
             453          (i) the legislator's primary employer in the ordinary course of business; or
             454          (ii) a person or entity in the ordinary course of business:
             455          (A) because of the legislator's ownership interest in the entity; or
             456          (B) for services rendered by the legislator on behalf of the person or entity.
             457          (49) "Reporting entity" means a candidate, a candidate's personal campaign committee,
             458      a judge, a judge's personal campaign committee, an officeholder, a party committee, a political
             459      action committee, a political issues committee, a corporation, or a labor organization, as
             460      defined in Section 20A-11-1501 .
             461          (50) "School board office" means the office of state school board [or local school


             462      board].
             463          (51) (a) "Source" means the person or entity that is the legal owner of the tangible or
             464      intangible asset that comprises the contribution.
             465          (b) "Source" means, for political action committees and corporations, the political
             466      action committee and the corporation as entities, not the contributors to the political action
             467      committee or the owners or shareholders of the corporation.
             468          (52) "State office" means the offices of governor, lieutenant governor, attorney general,
             469      state auditor, and state treasurer.
             470          (53) "State office candidate" means a person who:
             471          (a) files a declaration of candidacy for a state office; or
             472          (b) receives contributions, makes expenditures, or gives consent for any other person to
             473      receive contributions or make expenditures to bring about the person's nomination, election, or
             474      appointment to a state office.
             475          (54) "Summary report" means the year end report containing the summary of a
             476      reporting entity's contributions and expenditures.
             477          (55) "Supervisory board" means the individual or group of individuals that allocate
             478      expenditures from a political issues committee.
             479          Section 3. Section 20A-11-1301 is amended to read:
             480           20A-11-1301. School board office candidate -- Campaign finance requirements --
             481      Candidate as a political action committee officer -- No personal use -- Report
             482      contributions within 30 days -- Report other accounts.
             483          (1) (a) (i) Each school board office candidate shall deposit each contribution and public
             484      service assistance received in one or more separate accounts in a financial institution that are
             485      dedicated only to that purpose.
             486          (ii) A school board office candidate may:
             487          (A) receive a contribution or public service assistance from a political action
             488      committee registered under Section 20A-11-601 ; and
             489          (B) be designated by a political action committee as an officer who has primary
             490      decision-making authority as described in Section 20A-11-601 .
             491          (b) A school board office candidate may not use money deposited in an account
             492      described in Subsection (1)(a)(i) for:


             493          (i) a personal use expenditure; or
             494          (ii) an expenditure prohibited by law.
             495          (2) A school board office candidate may not deposit or mingle any contributions or
             496      public service assistance received into a personal or business account.
             497          (3) A school board office candidate may not make any political expenditures prohibited
             498      by law.
             499          (4) If a person who is no longer a school board candidate chooses not to expend the
             500      money remaining in a campaign account, the person shall continue to file the year-end
             501      summary report required by Section 20A-11-1302 until the statement of dissolution and final
             502      summary report required by Section 20A-11-1304 are filed with[: (a)] the lieutenant governor
             503      [in the case of a state school board candidate; and].
             504          [(b) the county clerk, in the case of a local school board candidate.]
             505          (5) (a) Except as provided in Subsection (5)(b) and Section 20A-11-402 , a person who
             506      is no longer a school board candidate may not expend or transfer the money in a campaign
             507      account in a manner that would cause the former school board candidate to recognize the
             508      money as taxable income under federal tax law.
             509          (b) A person who is no longer a school board candidate may transfer the money in a
             510      campaign account in a manner that would cause the former school board candidate to recognize
             511      the money as taxable income under federal tax law if the transfer is made to a campaign
             512      account for federal office.
             513          (6) (a) As used in this Subsection (6) and Section 20A-11-1303 , "received" means:
             514          (i) for a cash contribution, that the cash is given to a school board office candidate or a
             515      member of the candidate's personal campaign committee;
             516          (ii) for a contribution that is a negotiable instrument or check, that the negotiable
             517      instrument or check is negotiated; and
             518          (iii) for any other type of contribution, that any portion of the contribution's benefit
             519      inures to the school board office candidate.
             520          (b) Each school board office candidate shall report to the chief election officer each
             521      contribution and public service assistance within 30 days after the contribution or public
             522      service assistance is received.
             523          (7) (a) As used in this Subsection (7), "account" means an account in a financial


             524      institution:
             525          (i) that is not described in Subsection (1)(a)(i); and
             526          (ii) into which or from which a person who, as a candidate for an office, other than a
             527      school board office for which the person files a declaration of candidacy or federal office, or as
             528      a holder of an office, other than a school board office for which the person files a declaration of
             529      candidacy or federal office, deposits a contribution or makes an expenditure.
             530          (b) A school board office candidate shall include on any financial statement filed in
             531      accordance with this part:
             532          (i) a contribution deposited in an account:
             533          (A) since the last campaign finance statement was filed; or
             534          (B) that has not been reported under a statute or ordinance that governs the account; or
             535          (ii) an expenditure made from an account:
             536          (A) since the last campaign finance statement was filed; or
             537          (B) that has not been reported under a statute or ordinance that governs the account.
             538          Section 4. Section 20A-11-1303 is amended to read:
             539           20A-11-1303. School board office candidate and school board office holder --
             540      Financial reporting requirements -- Interim reports.
             541          (1) (a) As used in this Subsection (1), "campaign account" means a separate campaign
             542      account required under Subsection 20A-11-1301 (1)(a)(i).
             543          (b) Each school board office candidate shall file an interim report at the following
             544      times in any year in which the candidate has filed a declaration of candidacy for a public office:
             545          (i) May 15[, for a state school board office candidate];
             546          (ii) seven days before the regular primary election date;
             547          (iii) August 31; and
             548          (iv) seven days before the regular general election date.
             549          (c) Each [state] school board office holder who has a campaign account that has not
             550      been dissolved under Section 20A-11-1304 shall, in an even year, file an interim report at the
             551      following times, regardless of whether an election for the [state] school board office holder's
             552      office is held that year:
             553          (i) May 15;
             554          (ii) seven days before the regular primary election date for that year;


             555          (iii) August 31; and
             556          (iv) seven days before the regular general election date.
             557          (2) Each interim report shall include the following information:
             558          (a) the net balance of the last summary report, if any;
             559          (b) a single figure equal to the total amount of receipts reported on all prior interim
             560      reports, if any, during the calendar year in which the interim report is due;
             561          (c) a single figure equal to the total amount of expenditures reported on all prior
             562      interim reports, if any, filed during the calendar year in which the interim report is due;
             563          (d) a detailed listing of each contribution and public service assistance received since
             564      the last summary report that has not been reported in detail on a prior interim report;
             565          (e) for each nonmonetary contribution:
             566          (i) the fair market value of the contribution with that information provided by the
             567      contributor; and
             568          (ii) a specific description of the contribution;
             569          (f) a detailed listing of each expenditure made since the last summary report that has
             570      not been reported in detail on a prior interim report;
             571          (g) for each nonmonetary expenditure, the fair market value of the expenditure;
             572          (h) a net balance for the year consisting of the net balance from the last summary
             573      report, if any, plus all receipts since the last summary report minus all expenditures since the
             574      last summary report;
             575          (i) a summary page in the form required by the lieutenant governor that identifies:
             576          (i) beginning balance;
             577          (ii) total contributions during the period since the last statement;
             578          (iii) total contributions to date;
             579          (iv) total expenditures during the period since the last statement; and
             580          (v) total expenditures to date; and
             581          (j) the name of a political action committee for which the school board office candidate
             582      or school board office holder is designated as an officer who has primary decision-making
             583      authority under Section 20A-11-601 .
             584          (3) (a) For all individual contributions or public service assistance of $50 or less, a
             585      single aggregate figure may be reported without separate detailed listings.


             586          (b) Two or more contributions from the same source that have an aggregate total of
             587      more than $50 may not be reported in the aggregate, but shall be reported separately.
             588          (4) (a) In preparing each interim report, all receipts and expenditures shall be reported
             589      as of five days before the required filing date of the report.
             590          (b) Any negotiable instrument or check received by a school board office candidate or
             591      school board office holder more than five days before the required filing date of a report
             592      required by this section shall be included in the interim report.
             593          Section 5. Section 20A-11-1305 is amended to read:
             594           20A-11-1305. School board office candidate -- Failure to file statement --
             595      Penalties.
             596          (1) (a) A school board office candidate who fails to file a financial statement by the
             597      deadline is subject to a fine imposed in accordance with Section 20A-11-1005 .
             598          (b) If a school board office candidate fails to file an interim report due before the
             599      regular primary election, on August 31, or before the regular general election, the chief election
             600      officer shall, after making a reasonable attempt to discover if the report was timely filed,
             601      inform the county clerk and other appropriate election officials who:
             602          (i) (A) shall, if practicable, remove the name of the candidate from the ballots before
             603      the ballots are delivered to voters; or
             604          (B) shall, if removing the candidate's name from the ballot is not practicable, inform
             605      the voters by any practicable method that the candidate has been disqualified and that votes
             606      cast for the candidate will not be counted; and
             607          (ii) may not count any votes for that candidate.
             608          (c) Any school board office candidate who fails to file timely a financial statement
             609      required by Subsection 20A-11-1303 (1)(b)(ii), (iii), or (iv) is disqualified.
             610          (d) Notwithstanding Subsections (1)(b) and (1)(c), a school board office candidate is
             611      not disqualified and the chief election officer may not impose a fine if:
             612          (i) the candidate timely files the reports required by this section in accordance with
             613      Section 20A-11-103 ;
             614          (ii) those reports are completed, detailing accurately and completely the information
             615      required by this part except for inadvertent omissions or insignificant errors or inaccuracies;
             616      and


             617          (iii) those omissions, errors, or inaccuracies described in Subsection (1)(d)(ii) are
             618      corrected in:
             619          (A) an amended report; or
             620          (B) the next scheduled report.
             621          (2) (a) Within 30 days after a deadline for the filing of a summary report by a school
             622      board office candidate [for state school board], the lieutenant governor shall review each filed
             623      summary report to ensure that:
             624          (i) each [state] school board candidate that is required to file a summary report has
             625      filed one; and
             626          (ii) each summary report contains the information required by this part.
             627          (b) If it appears that [any state] a school board candidate has failed to file the summary
             628      report required by law, if it appears that a filed summary report does not conform to the law, or
             629      if the lieutenant governor has received a written complaint alleging a violation of the law or the
             630      falsity of any summary report, the lieutenant governor shall, within five days of discovery of a
             631      violation or receipt of a written complaint, notify the [state] school board candidate of the
             632      violation or written complaint and direct the [state] school board candidate to file a summary
             633      report correcting the problem.
             634          (c) (i) It is unlawful for [any state] a school board candidate to fail to file or amend a
             635      summary report within seven days after receiving notice from the lieutenant governor under
             636      this section.
             637          (ii) Each [state] school board candidate who violates Subsection (2)(c)(i) is guilty of a
             638      class B misdemeanor.
             639          (iii) The lieutenant governor shall report all violations of Subsection (2)(c)(i) to the
             640      attorney general.
             641          (iv) In addition to the criminal penalty described in Subsection (2)(c)(ii), the lieutenant
             642      governor shall impose a civil fine of $100 against a [state] school board candidate who violates
             643      Subsection (2)(c)(i).
             644          [(3) (a) Within 30 days after a deadline for the filing of a summary report, the county
             645      clerk shall review each filed summary report to ensure that:]
             646          [(i) each local school board candidate that is required to file a summary report has filed
             647      one; and]


             648          [(ii) each summary report contains the information required by this part.]
             649          [(b) If it appears that any local school board candidate has failed to file the summary
             650      report required by law, if it appears that a filed summary report does not conform to the law, or
             651      if the county clerk has received a written complaint alleging a violation of the law or the falsity
             652      of any summary report, the county clerk shall, within five days of discovery of a violation or
             653      receipt of a written complaint, notify the local school board candidate of the violation or
             654      written complaint and direct the local school board candidate to file a summary report
             655      correcting the problem.]
             656          [(c) (i) It is unlawful for any local school board candidate to fail to file or amend a
             657      summary report within seven days after receiving notice from the county clerk under this
             658      section.]
             659          [(ii) Each local school board candidate who violates Subsection (3)(c)(i) is guilty of a
             660      class B misdemeanor.]
             661          [(iii) The county clerk shall report all violations of Subsection (3)(c)(i) to the district or
             662      county attorney.]
             663          [(iv) In addition to the criminal penalty described in Subsection (3)(c)(ii), the
             664      lieutenant governor shall impose a civil fine of $100 against a local school board candidate
             665      who violates Subsection (3)(c)(i).]




Legislative Review Note
    as of 1-2-14 11:16 AM


Office of Legislative Research and General Counsel


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