Second Substitute S.B. 97

Senator Todd Weiler proposes the following substitute bill:


             1     
LOBBYIST DISCLOSURE AND REGULATION ACT

             2     
AMENDMENTS

             3     
2014 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Todd Weiler

             6     
House Sponsor: Michael E. Noel

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill amends Title 36, Chapter 11, Lobbyist Disclosure and Regulation Act.
             11      Highlighted Provisions:
             12          This bill:
             13          .    defines terms;
             14          .    describes and clarifies the difference between an event, a tour, and a meeting;
             15          .    describes reporting and other requirements relating to an event, a tour, and a
             16      meeting;
             17          .    requires a lobbyist or principal, that provides donated time to an individual who is
             18      seeking to fill a midterm vacancy for an elective office in the executive or
             19      legislative branch of state government, to file certain reports with the lieutenant
             20      governor in relation to the donated time;
             21          .    provides penalties for a lobbyist or principal that fails to comply with the reporting
             22      requirements described in the preceding paragraph;
             23          .    addresses public posting requirements for reports described in this bill; and
             24          .    makes technical and conforming changes.
             25      Money Appropriated in this Bill:


             26          None
             27      Other Special Clauses:
             28          None
             29      Utah Code Sections Affected:
             30      AMENDS:
             31           36-11-102 , as last amended by Laws of Utah 2011, Chapter 212
             32           36-11-103 , as last amended by Laws of Utah 2010, Chapter 325
             33           36-11-304 , as repealed and reenacted by Laws of Utah 2010, Chapter 325
             34           36-11-401 , as last amended by Laws of Utah 2011, Chapter 389
             35      ENACTS:
             36           36-11-203 , Utah Code Annotated 1953
             37     
             38      Be it enacted by the Legislature of the state of Utah:
             39          Section 1. Section 36-11-102 is amended to read:
             40           36-11-102. Definitions.
             41          As used in this chapter:
             42          (1) "Aggregate daily expenditures" means:
             43          (a) for a single lobbyist, principal, or government officer, the total of all expenditures
             44      made within a calendar day by the lobbyist, principal, or government officer for the benefit of
             45      an individual public official;
             46          (b) for an expenditure made by a member of a lobbyist group, the total of all
             47      expenditures made within a calendar day by every member of the lobbyist group for the benefit
             48      of an individual public official; or
             49          (c) for a multiclient lobbyist, the total of all expenditures made by the multiclient
             50      lobbyist within a calendar day for the benefit of an individual public official, regardless of
             51      whether the expenditures were attributed to different clients.
             52          (2) "Approved [meeting or] activity" means a tour or a meeting [or activity]:
             53          (a) (i) to which a legislator is invited; and
             54          (ii) attendance at which is approved by:
             55          (A) the speaker of the House of Representatives, if the public official is a member of
             56      the House of Representatives; or


             57          (B) the president of the Senate, if the public official is a member of the Senate; or
             58          (b) (i) to which a public official who holds a position in the executive branch of state
             59      government is invited; and
             60          (ii) attendance at which is approved by the governor or the lieutenant governor.
             61          (3) (a) "Compensation" means anything of economic value, however designated, that is
             62      paid, loaned, granted, given, donated, or transferred to an individual for the provision of
             63      services or ownership before any withholding required by federal or state law.
             64          (b) "Compensation" includes:
             65          (i) a salary or commission;
             66          (ii) a bonus;
             67          (iii) a benefit;
             68          (iv) a contribution to a retirement program or account;
             69          (v) a payment includable in gross income, as defined in Section 62, Internal Revenue
             70      Code, and subject to Social Security deductions, including a payment in excess of the
             71      maximum amount subject to deduction under Social Security law;
             72          (vi) an amount that the individual authorizes to be deducted or reduced for salary
             73      deferral or other benefits authorized by federal law; or
             74          (vii) income based on an individual's ownership interest.
             75          (4) "Compensation payor" means a person who pays compensation to a public official
             76      in the ordinary course of business:
             77          (a) because of the public official's ownership interest in the compensation payor; or
             78          (b) for services rendered by the public official on behalf of the compensation payor.
             79          (5) "Donated time" means the time provided by a principal or lobbyist, or by an
             80      employee or independent contractor of a principal or lobbyist at the direction of the principal or
             81      lobbyist, without charge or at a reduced rate, for the benefit of a prospective appointee.
             82          [(5)] (6) "Executive action" means:
             83          (a) a nomination or appointment by the governor;
             84          (b) the proposal, drafting, amendment, enactment, or defeat by a state agency of a rule
             85      made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
             86          (c) agency ratemaking proceedings; or
             87          (d) an adjudicative proceeding of a state agency.


             88          (7) "Event" means entertainment, a performance, a contest, or a recreational activity
             89      that an individual participates in or is a spectator at, including a sporting event, an artistic
             90      event, a play, a movie, dancing, or singing.
             91          [(6)] (8) (a) "Expenditure" means any of the items listed in this Subsection [(6)] (8)(a)
             92      when given to or for the benefit of a public official unless consideration of equal or greater
             93      value is received:
             94          (i) a purchase, payment, or distribution;
             95          (ii) a loan, gift, or advance;
             96          (iii) a deposit, subscription, or forbearance;
             97          (iv) services or goods;
             98          (v) money;
             99          (vi) real property;
             100          (vii) a ticket or admission to [a sporting, recreational, or artistic] an event; or
             101          (viii) a contract, promise, or agreement, whether or not legally enforceable, to provide
             102      any item listed in Subsections [(6)] (8)(a)(i) through (vii).
             103          (b) "Expenditure" does not mean:
             104          (i) a commercially reasonable loan made in the ordinary course of business;
             105          (ii) a campaign contribution reported in accordance with Title 20A, Chapter 11,
             106      Campaign and Financial Reporting Requirements;
             107          (iii) printed informational material that is related to the performance of the recipient's
             108      official duties;
             109          (iv) a devise or inheritance;
             110          (v) any item listed in Subsection [(6)] (8)(a) if:
             111          (A) given by a relative;
             112          (B) given by a compensation payor for a purpose solely unrelated to the public
             113      official's position as a public official; or
             114          (C) (I) the item has a value of less than $10; and
             115          (II) the aggregate daily expenditures do not exceed $10;
             116          (vi) food or beverage that is provided at an event, a tour, or a meeting to which the
             117      following are invited:
             118          (A) all members of the Legislature;


             119          (B) all members of a standing or interim committee;
             120          (C) all members of an official legislative task force;
             121          (D) all members of a party caucus; or
             122          (E) all members of a group described in Subsections [(6)] (8)(b)(vi)(A) through (D)
             123      who are attending a meeting of a national organization whose primary purpose is addressing
             124      general legislative policy;
             125          (vii) food or beverage that is provided at an event, a tour, or a meeting to a public
             126      official who is:
             127          (A) giving a speech at the event;
             128          (B) participating in a panel discussion at the event; or
             129          (C) presenting or receiving an award at the event;
             130          (viii) a plaque, commendation, or award presented in public and having a cash value
             131      not exceeding $50;
             132          (ix) admission to or attendance at an event, a tour, or a meeting, the primary purpose of
             133      which is:
             134          (A) to solicit contributions reportable under:
             135          (I) Title 20A, Chapter 11, Campaign and Financial Reporting Requirements; or
             136          (II) 2 U.S.C. Sec. 434; or
             137          (B) charitable solicitation, as defined in Section 13-22-2 ;
             138          (x) travel to, lodging at, food or beverage served at, and admission to an approved
             139      [meeting or] activity;
             140          (xi) sponsorship of an [official event or official entertainment of] event that is an
             141      approved [meeting or] activity;
             142          (xii) notwithstanding Subsection [(6)] (8)(a)(vii), admission to or attendance at an
             143      event, a tour, or a meeting:
             144          (A) that is sponsored by a governmental entity; or
             145          (B) that is widely attended and related to a governmental duty of a public official; or
             146          (xiii) travel to a widely attended [event] tour or meeting related to a governmental duty
             147      of a public official if that travel results in a financial savings to the state.
             148          [(7)] (9) (a) "Government officer" means:
             149          (i) an individual elected to a position in state or local government, when acting within


             150      the government officer's official capacity; or
             151          (ii) an individual appointed to or employed in a full-time position by state or local
             152      government, when acting within the scope of the individual's employment.
             153          (b) "Government officer" does not mean a member of the legislative branch of state
             154      government.
             155          [(8)] (10) "Immediate family" means:
             156          (a) a spouse;
             157          (b) a child residing in the household; or
             158          (c) an individual claimed as a dependent for tax purposes.
             159          [(9)] (11) "Legislative action" means:
             160          (a) a bill, resolution, amendment, nomination, veto override, or other matter pending or
             161      proposed in either house of the Legislature or its committees or requested by a legislator; and
             162          (b) the action of the governor in approving or vetoing legislation.
             163          [(10)] (12) "Lobbying" means communicating with a public official for the purpose of
             164      influencing the passage, defeat, amendment, or postponement of legislative or executive action.
             165          [(11)] (13) (a) "Lobbyist" means:
             166          (i) an individual who is employed by a principal; or
             167          (ii) an individual who contracts for economic consideration, other than reimbursement
             168      for reasonable travel expenses, with a principal to lobby a public official.
             169          (b) "Lobbyist" does not include:
             170          (i) a government officer;
             171          (ii) a member or employee of the legislative branch of state government;
             172          (iii) a person while appearing at, or providing written comments to, a hearing
             173      conducted in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act or
             174      Title 63G, Chapter 4, Administrative Procedures Act;
             175          (iv) a person participating on or appearing before an advisory or study task force,
             176      commission, board, or committee, constituted by the Legislature or any agency or department
             177      of state government, except legislative standing, appropriation, or interim committees;
             178          (v) a representative of a political party;
             179          (vi) an individual representing a bona fide church solely for the purpose of protecting
             180      the right to practice the religious doctrines of the church, unless the individual or church makes


             181      an expenditure that confers a benefit on a public official;
             182          (vii) a newspaper, television station or network, radio station or network, periodical of
             183      general circulation, or book publisher for the purpose of publishing news items, editorials,
             184      other comments, or paid advertisements that directly or indirectly urge legislative or executive
             185      action; or
             186          (viii) an individual who appears on the individual's own behalf before a committee of
             187      the Legislature or an agency of the executive branch of state government solely for the purpose
             188      of testifying in support of or in opposition to legislative or executive action.
             189          [(12)] (14) "Lobbyist group" means two or more lobbyists, principals, government
             190      officers, or any combination of lobbyists, principals, and officers who each contribute a portion
             191      of an expenditure made to benefit a public official or member of the public official's immediate
             192      family.
             193          (15) "Meeting" means a gathering of people to discuss an issue, receive instruction, or
             194      make a decision, including a conference, seminar, or summit.
             195          [(13)] (16) "Multiclient lobbyist" means a single lobbyist, principal, or government
             196      officer who represents two or more clients and divides the aggregate daily expenditure made to
             197      benefit a public official or member of the public official's immediate family between two or
             198      more of those clients.
             199          (17) "Prospective appointee" means an individual who is seeking to fill a midterm
             200      vacancy for an elective office in the executive or legislative branch of state government.
             201          [(14)] (18) "Principal" means a person that employs an individual to perform lobbying,
             202      either as an employee or as an independent contractor.
             203          [(15)] (19) "Public official" means:
             204          (a) (i) a member of the Legislature;
             205          (ii) an individual elected to a position in the executive branch of state government; or
             206          (iii) an individual appointed to or employed in a position in the executive or legislative
             207      branch of state government if that individual:
             208          (A) occupies a policymaking position or makes purchasing or contracting decisions;
             209          (B) drafts legislation or makes rules;
             210          (C) determines rates or fees; or
             211          (D) makes adjudicative decisions; or


             212          (b) an immediate family member of a person described in Subsection [(15)] (19)(a).
             213          [(16)] (20) "Public official type" means a notation to identify whether a public official
             214      is:
             215          (a) (i) a member of the Legislature;
             216          (ii) an individual elected to a position in the executive branch of state government;
             217          (iii) an individual appointed to or employed in a position in the legislative branch of
             218      state government who meets the definition of public official under Subsection [(15)]
             219      (19)(a)(iii); or
             220          (iv) an individual appointed to or employed in a position in the executive branch of
             221      state government who meets the definition of public official under Subsection [(15)]
             222      (19)(a)(iii); or
             223          (b) an immediate family member of a person described in Subsection [(15)] (19)(b).
             224          [(17)] (21) "Quarterly reporting period" means the three-month period covered by each
             225      financial report required under Subsection 36-11-201 (2)(a).
             226          [(18)] (22) "Related person" means a person, agent, or employee who knowingly and
             227      intentionally assists a lobbyist, principal, or government officer in lobbying.
             228          [(19)] (23) "Relative" means a spouse, child, parent, grandparent, grandchild, brother,
             229      sister, parent-in-law, brother-in-law, sister-in-law, nephew, niece, aunt, uncle, first cousin, or
             230      spouse of any of these individuals.
             231          (24) "Tour" means visiting a location, for a purpose relating to the duties of a public
             232      official, and not for entertainment, including:
             233          (a) viewing a facility;
             234          (b) viewing the sight of a natural disaster; or
             235          (c) assessing a circumstance in relation to which a public official may need to take
             236      action within the scope of the public official's duties.
             237          Section 2. Section 36-11-103 is amended to read:
             238           36-11-103. Licensing requirements.
             239          (1) (a) Before engaging in any lobbying, a lobbyist shall obtain a license from the
             240      lieutenant governor by completing the form required by this section.
             241          (b) The lieutenant governor shall issue licenses to qualified lobbyists.
             242          (c) The lieutenant governor shall prepare a Lobbyist License Application Form that


             243      includes:
             244          (i) a place for the lobbyist's name and business address;
             245          (ii) a place for the following information for each principal for whom the lobbyist
             246      works or is hired as an independent contractor:
             247          (A) the principal's name;
             248          (B) the principal's business address;
             249          (C) the name of each public official that the principal employs and the nature of the
             250      employment with the public official; and
             251          (D) the general purposes, interests, and nature of the principal;
             252          (iii) a place for the name and address of the person who paid or will pay the lobbyist's
             253      registration fee, if the fee is not paid by the lobbyist;
             254          (iv) a place for the lobbyist to disclose:
             255          (A) any elected or appointed position that the lobbyist holds in state or local
             256      government, if any; and
             257          (B) the name of each public official that the lobbyist employs and the nature of the
             258      employment with the public official, if any;
             259          (v) a place for the lobbyist to disclose the types of expenditures for which the lobbyist
             260      will be reimbursed; and
             261          (vi) a certification to be signed by the lobbyist that certifies that the information
             262      provided in the form is true, accurate, and complete to the best of the lobbyist's knowledge and
             263      belief.
             264          (2) Each lobbyist who obtains a license under this section shall update the licensure
             265      information when the lobbyist accepts employment for lobbying by a new client.
             266          (3) (a) Except as provided in Subsection (4), the lieutenant governor shall grant a
             267      lobbying license to an applicant who:
             268          (i) files an application with the lieutenant governor that contains the information
             269      required by this section; and
             270          (ii) pays a $100 filing fee.
             271          (b) A license entitles a person to serve as a lobbyist on behalf of one or more principals
             272      and expires on December 31 of each even-numbered year.
             273          (4) (a) The lieutenant governor may disapprove an application for a lobbying license:


             274          (i) if the applicant has been convicted of violating Section 76-8-103 , 76-8-107 ,
             275      76-8-108 , or 76-8-303 within five years before the date of the lobbying license application;
             276          (ii) if the applicant has been convicted of violating Section 76-8-104 or 76-8-304
             277      within one year before the date of the lobbying license application;
             278          (iii) for the term of any suspension imposed under Section 36-11-401 ;
             279          (iv) if, within one year before the date of the lobbying license application, the applicant
             280      has been found to have willingly and knowingly:
             281          (A) violated this section or Section 36-11-201 , 36-11-301 , 36-11-302 , 36-11-303 ,
             282      36-11-304 , 36-11-305 , or 36-11-403 ; or
             283          (B) filed a document required by this chapter that the lobbyist knew contained
             284      materially false information or omitted material information; or
             285          (v) if the applicant is prohibited from becoming a lobbyist under Title 67, Chapter 24,
             286      Lobbying Restrictions Act.
             287          (b) An applicant may appeal the disapproval in accordance with the procedures
             288      established by the lieutenant governor under this chapter and Title 63G, Chapter 4,
             289      Administrative Procedures Act.
             290          (5) The lieutenant governor shall deposit license fees in the General Fund as a
             291      dedicated credit, to be used by the lieutenant governor to administer the licensing program
             292      described in this section.
             293          (6) A principal need not obtain a license under this section, but if the principal makes
             294      expenditures to benefit a public official without using a lobbyist as an agent to confer those
             295      benefits, the principal shall disclose those expenditures as required by Section 36-11-201 .
             296          (7) Government officers need not obtain a license under this section, but shall disclose
             297      any expenditures made to benefit public officials as required by Section 36-11-201 .
             298          (8) Surrender, cancellation, or expiration of a lobbyist license does not absolve the
             299      lobbyist of the duty to file the financial reports if the lobbyist is otherwise required to file the
             300      reports by Section 36-11-201 .
             301          Section 3. Section 36-11-203 is enacted to read:
             302          36-11-203. Reporting requirements for donated time to benefit prospective
             303      appointee.
             304          (1) Within one business day after the earlier of the day on which a lobbyist or principal


             305      agrees to provide, or the day on which the lobbyist or principal begins to provide, donated time
             306      to a prospective appointee, the lobbyist or principal shall file a written report with the
             307      lieutenant governor that includes:
             308          (a) the name, address, and telephone number of the lobbyist or principal;
             309          (b) the name of the prospective appointee;
             310          (c) the elective office for which the prospective appointee is seeking to be appointed;
             311      and
             312          (d) a statement that the lobbyist or principal has agreed to provide or begun to provide
             313      donated time to the prospective appointee.
             314          (2) A lobbyist or principal described in Subsection (1) shall, within three business days
             315      after the day on which the lobbyist or principal provides donated time to a prospective
             316      appointee, file a written report with the lieutenant governor that includes:
             317          (a) the name, address, and telephone number of the lobbyist or principal;
             318          (b) the name of the prospective appointee;
             319          (c) the elective office for which the prospective appointee is seeking to be appointed;
             320          (d) the number of hours of donated time, per day, that:
             321          (i) the lobbyist or principal has provided to the prospective appointee; and
             322          (ii) were not included in a previous report filed under this Subsection (2); and
             323          (e) a description of the services provided to the prospective appointee during the
             324      donated time.
             325          (3) The lieutenant governor shall:
             326          (a) post each report described in this section on the lieutenant governor's website
             327      within one business day after the day on which the lieutenant governor receives the report; and
             328          (b) ensure that an individual may view a report described in Subsection (3)(a) by
             329      searching for the prospective appointee's name from same location on the lieutenant governor's
             330      website that an individual uses to search for the name of a reporting entity in order to view a
             331      financial statement filed by the reporting entity.
             332          Section 4. Section 36-11-304 is amended to read:
             333           36-11-304. Expenditures over $10 prohibited -- Exceptions.
             334          (1) Except as provided in Subsection (2), a lobbyist, principal, or government officer
             335      may not make or offer to make aggregate daily expenditures that exceed $10.


             336          (2) A lobbyist, principal, or government officer may make aggregate daily expenditures
             337      that exceed $10:
             338          (a) for the following items, if the expenditure is reported in accordance with Section
             339      36-11-201 :
             340          (i) food;
             341          (ii) beverage;
             342          (iii) travel;
             343          (iv) lodging; or
             344          (v) admission to or attendance at a tour or meeting [or activity] that is not an approved
             345      [meeting or] activity; or
             346          (b) if the expenditure is made for a purpose solely unrelated to the public official's
             347      position as a public official.
             348          Section 5. Section 36-11-401 is amended to read:
             349           36-11-401. Penalties.
             350          (1) Any person who willfully and knowingly violates Section 36-11-103 , 36-11-201 ,
             351      36-11-203 , 36-11-301 , 36-11-302 , 36-11-303 , 36-11-304 , 36-11-305 , or 36-11-403 , is subject
             352      to the following penalties:
             353          (a) an administrative penalty of up to $1,000 for each violation; and
             354          (b) for each subsequent violation of that same section within 24 months, either:
             355          (i) an administrative penalty of up to $5,000; or
             356          (ii) suspension of the violator's lobbying license for up to one year, if the person is a
             357      lobbyist.
             358          (2) Any person who willfully and knowingly fails to file a financial report required by
             359      this chapter, omits material information from a license application form or financial report, or
             360      files false information on a license application form or financial report, is subject to the
             361      following penalties:
             362          (a) an administrative penalty of up to $1,000 for each violation; or
             363          (b) suspension of the violator's lobbying license for up to one year, if the person is a
             364      lobbyist.
             365          (3) Any person who willfully and knowingly fails to file a financial report required by
             366      this chapter on the date that it is due shall, in addition to the penalties, if any, imposed under


             367      Subsection (1) or (2), pay a penalty of up to $50 per day for each day that the report is late.
             368          (4) (a) When a lobbyist is convicted of violating Section 76-8-103 , 76-8-107 , 76-8-108 ,
             369      or 76-8-303 , the lieutenant governor shall suspend the lobbyist's license for up to five years
             370      from the date of the conviction.
             371          (b) When a lobbyist is convicted of violating Section 76-8-104 or 76-8-304 , the
             372      lieutenant governor shall suspend a lobbyist's license for up to one year from the date of
             373      conviction.
             374          (5) (a) Any person who willfully and knowingly violates Section 36-11-301 ,
             375      36-11-302 , or 36-11-303 is guilty of a class B misdemeanor.
             376          (b) The lieutenant governor shall suspend the lobbyist license of any person convicted
             377      under any of these sections for up to one year.
             378          (c) The suspension shall be in addition to any administrative penalties imposed by the
             379      lieutenant governor under this section.
             380          (d) Any person with evidence of a possible violation of this chapter may submit that
             381      evidence to the lieutenant governor for investigation and resolution.
             382          (6) A lobbyist who does not complete the training required by Section 36-11-307 is
             383      subject to the following penalties:
             384          (a) an administrative penalty of up to $1,000 for each failure to complete the training
             385      required by Section 36-11-307 ; and
             386          (b) for two or more failures to complete the training required by Section 36-11-307
             387      within 24 months, suspension of the lobbyist's lobbying license.
             388          (7) Nothing in this chapter creates a third-party cause of action or appeal rights.


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