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S.B. 239

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AMENDMENTS TO ETHICS LAW

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1997 GENERAL SESSION

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STATE OF UTAH

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Sponsor: David L. Buhler

5    AN ACT RELATING TO MUNICIPAL ETHICS; MODIFYING PROVISIONS OF THE
6    PUBLIC ETHICS ACTS RELATING TO THE USE OF OFFICE FOR PERSONAL
7    BENEFIT; AND MAKING TECHNICAL CORRECTIONS.
8    This act affects sections of Utah Code Annotated 1953 as follows:
9    AMENDS:
10         10-3-1304, as last amended by Chapter 280, Laws of Utah 1992
11         67-16-4, as last amended by Chapter 280, Laws of Utah 1992
12         67-16-5, as last amended by Chapter 147, Laws of Utah 1989
13    Be it enacted by the Legislature of the state of Utah:
14        Section 1. Section 10-3-1304 is amended to read:
15         10-3-1304. Use of office for personal benefit prohibited.
16        (1) As used in this section, "economic benefit tantamount to a gift" includes:
17        (a) a loan at an interest rate that is substantially lower than the commercial rate then
18    currently prevalent for similar loans; and
19        (b) compensation received for private services rendered at a rate substantially exceeding
20    the fair market value of the services.
21        [(1) No] (2) An elected or appointed officer or municipal employee [shall] may not:
22        (a) disclose or improperly use private, controlled, or protected information acquired by
23    reason of his official position or in the course of official duties in order to further substantially the
24    officer's or employee's personal economic interest or to secure special privileges or exemptions
25    for himself or others;
26        (b) use or attempt to use his official position to:
27        (i) further substantially the officer's or employee's personal economic interest; or


1        (ii) secure special privileges for himself or others; or
2        (c) knowingly receive, accept, take, seek, or solicit, directly or indirectly, [any gift or loan
3    for himself or another if the gift or loan tends to influence him in the discharge of his official
4    duties.] for himself or another a gift of substantial value or a substantial economic benefit
5    tantamount to a gift that:
6        (i) would tend improperly to influence a reasonable person in the person's position to
7    depart from the faithful and impartial discharge of the person's public duties; or
8        (ii) the person knows or that a reasonable person in that position should know under the
9    circumstances is primarily for the purpose of rewarding the person for official action taken.
10        [(2) This subsection] (3) Subsection (2)(c) does not apply to:
11        (a) an occasional nonpecuniary gift having a value of less than $50;
12        (b) an award publicly presented in recognition of public services;
13        (c) any bona fide loan made in the ordinary course of business; or
14        (d) a political campaign contribution [if the contribution is actually used in a political
15    campaign].
16        Section 2. Section 67-16-4 is amended to read:
17         67-16-4. Improperly disclosing or using private, controlled, or protected information
18     -- Using position to secure privileges or exemptions -- Accepting employment which would
19     impair independence of judgment or ethical performance.
20        A public officer [or], public employee, or legislator may not:
21        (1) accept employment or engage in any business or professional activity [which] that he
22    might reasonably expect would require or induce him to improperly disclose controlled
23    information [which] that he has gained by reason of his official position;
24        (2) [improperly] disclose or improperly use controlled, private, or protected information
25    acquired by reason of his official position [nor use such information for his or another's private
26    gain or benefit] or in the course of official duties in order to further substantially the officer's or
27    employee's personal economic interest or to secure special privileges or exemptions for himself
28    or others;
29        (3) use or attempt to use his official position to:
30        (a) further substantially the officer's or employee's personal economic interest; or
31        (b) secure special privileges or exemptions for himself or others;

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1        (4) accept other employment [which] that he might expect would impair his independence
2    of judgment in the performance of his public duties; or
3        (5) accept other employment [which] that he might expect would interfere with the ethical
4    performance of his public duties.
5        Section 3. Section 67-16-5 is amended to read:
6         67-16-5. Accepting gift, compensation, or loan -- When prohibited.
7        (1) As used in this section, "economic benefit tantamount to a gift" includes:
8        (a) a loan at an interest rate that is substantially lower than the commercial rate then
9    currently prevalent for similar loans;
10        (b) compensation received for private services rendered at a rate substantially exceeding
11    the fair market value of the services.
12        [(1) No] (2) A public officer [or], public employee [shall], or legislator may not
13    knowingly receive, accept, take, seek, or solicit, directly or indirectly[, any gift, compensation, or
14    loan for himself or another if: (a) it tends to influence him in the discharge of his official duties;
15    or] for himself or another a gift of substantial value or a substantial economic benefit tantamount
16    to a gift:
17        (a) that would tend improperly to influence a reasonable person in the person's position
18    to depart from the faithful and impartial discharge of the person's public duties;
19        (b) that the person knows or that a reasonable person in that position should know under
20    the circumstances is primarily for the purpose of rewarding the person for official action taken; or
21        [(b)] (c) he recently has been, or is now, or in the near future may be involved in any
22    governmental action directly affecting the donor or lender, unless a disclosure of the gift,
23    compensation, or loan and other relevant information has been made in the manner provided in
24    Section 67-16-6.
25        [(2)] (3) Subsection (1) does not apply to the following:
26        (a) an occasional nonpecuniary gift, having a value of not in excess of $50;
27        (b) an award publicly presented in recognition of public services;
28        (c) any bona fide loan made in the ordinary course of business [by an institution authorized
29    by the laws of this state or any other state to engage in making such loans]; or
30        (d) a political campaign contribution [if the contribution is actually used in a political
31    campaign of the recipient public officer or public employee].

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Legislative Review Note
    as of 2-3-97 1:05 PM


A limited legal review of this bill raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel


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