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H.B. 301
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5 David Ure
6 AN ACT RELATING TO THE ELECTION CODE; MODIFYING CERTAIN REQUIREMENTS
7 GOVERNING THE USE AND DISPOSITION OF CAMPAIGN FUNDS; AND MAKING
8 TECHNICAL CORRECTIONS.
9 This act affects sections of Utah Code Annotated 1953 as follows:
10 AMENDS:
11 20A-11-101, as last amended by Chapters 45 and 93, Laws of Utah 1999
12 20A-11-201, as last amended by Chapter 355, Laws of Utah 1997
13 20A-11-301, as last amended by Chapter 355, Laws of Utah 1997
14 20A-11-402, as last amended by Chapter 355, Laws of Utah 1997
15 Be it enacted by the Legislature of the state of Utah:
16 Section 1. Section 20A-11-101 is amended to read:
17 20A-11-101. Definitions.
18 As used in this chapter:
19 (1) "Address" means the number and street where an individual resides or where a
20 reporting entity has its principal office.
21 (2) "Ballot proposition" includes initiatives, referenda, proposed constitutional
22 amendments, and any other ballot propositions submitted to the voters that are authorized by the
23 Utah Code Annotated 1953.
24 (3) "Candidate" means any person who:
25 (a) files a declaration of candidacy for a public office; or
26 (b) receives contributions, makes expenditures, or gives consent for any other person to
27 receive contributions or make expenditures to bring about the person's nomination or election to
28 a public office.
29 (4) "Chief election officer" means:
30 (a) the lieutenant governor for state office candidates, legislative office candidates,
31 officeholders, political parties, political action committees, corporations, political issues
32 committees, and state school board candidates; and
33 (b) the county clerk for local school board candidates.
34 (5) "Continuing political party" means an organization of voters that participated in the last
35 regular general election and polled a total vote equal to 2% or more of the total votes cast for all
36 candidates for the United States House of Representatives.
37 (6) (a) "Contribution" means any of the following when done for political purposes:
38 (i) a gift, subscription, donation, loan, advance, or deposit of money or anything of value
39 given to the filing entity;
40 (ii) an express, legally enforceable contract, promise, or agreement to make a gift,
41 subscription, donation, unpaid or partially unpaid loan, advance, or deposit of money or anything
42 of value to the filing entity;
43 (iii) any transfer of funds from another reporting entity or a corporation to the filing entity;
44 (iv) compensation paid by any person or reporting entity other than the filing entity for
45 personal services provided without charge to the filing entity;
46 (v) remuneration from any organization or its directly affiliated organization that has a
47 registered lobbyist to compensate a legislator for a loss of salary or income while the Legislature
48 is in session;
49 (vi) salaries or other remuneration paid to a legislator by any agency or subdivision of the
50 state, including school districts, for the period the Legislature is in session; and
51 (vii) goods or services provided to or for the benefit of the filing entity at less than fair
52 market value.
53 (b) "Contribution" does not include:
54 (i) services provided without compensation by individuals volunteering a portion or all of
55 their time on behalf of the filing entity; or
56 (ii) money lent to the filing entity by a financial institution in the ordinary course of
57 business.
58 (7) (a) "Corporation" means a domestic or foreign, profit or nonprofit, business
59 organization that is registered as a corporation or is authorized to do business in a state and makes
60 any expenditure from corporate funds for:
61 (i) political purposes; or
62 (ii) the purpose of influencing the approval or the defeat of any ballot proposition.
63 (b) "Corporation" does not mean:
64 (i) a business organization's political action committee or political issues committee; or
65 (ii) a business entity organized as a partnership or a sole proprietorship.
66 (8) "Detailed listing" means:
67 (a) for each contribution or public service assistance:
68 (i) the name and address of the individual or source making the contribution or public
69 service assistance;
70 (ii) the amount or value of the contribution or public service assistance; and
71 (iii) the date the contribution or public service assistance was made; and
72 (b) for each expenditure:
73 (i) the amount of the expenditure;
74 (ii) the person or entity to whom it was disbursed;
75 (iii) the specific purpose, item, or service acquired by the expenditure; and
76 (iv) the date the expenditure was made.
77 (9) "Election" means each:
78 (a) regular general election;
79 (b) regular primary election; and
80 (c) special election at which candidates are eliminated and selected.
81 (10) (a) "Expenditure" means:
82 (i) any disbursement from contributions, receipts, or from the separate bank account
83 required by this chapter;
84 (ii) a purchase, payment, donation, distribution, loan, advance, deposit, gift of money, or
85 anything of value made for political purposes;
86 (iii) an express, legally enforceable contract, promise, or agreement to make any purchase,
87 payment, donation, distribution, loan, advance, deposit, gift of money, or anything of value for
88 political purposes;
89 (iv) compensation paid by a corporation or filing entity for personal services rendered by
90 a person without charge to a reporting entity;
91 (v) a transfer of funds between the filing entity and a candidate's personal campaign
92 committee; or
93 (vi) goods or services provided by the filing entity to or for the benefit of another reporting
94 entity for political purposes at less than fair market value.
95 (b) "Expenditure" does not include:
96 (i) services provided without compensation by individuals volunteering a portion or all of
97 their time on behalf of a reporting entity;
98 (ii) money lent to a reporting entity by a financial institution in the ordinary course of
99 business; or
100 (iii) anything listed in Subsection (5)(a) that is given by a corporation or reporting entity
101 to candidates for office or officeholders in states other than Utah.
102 (11) "Filing entity" means the reporting entity that is filing a report required by this
103 chapter.
104 (12) "Financial statement" includes any summary report, interim report, or other statement
105 disclosing contributions, expenditures, receipts, donations, or disbursements that is required by this
106 chapter.
107 (13) "Governing board" means the individual or group of individuals that determine the
108 candidates and committees that will receive expenditures from a political action committee.
109 (14) "Incorporation" means the process established by Title 10, Chapter 2, Part 1,
110 Incorporation, by which a geographical area becomes legally recognized as a city or town.
111 (15) "Incorporation election" means the election authorized by Section 10-2-111 .
112 (16) "Incorporation petition" means a petition authorized by Section 10-2-109 .
113 (17) "Individual" means a natural person.
114 (18) "Interim report" means a report identifying the contributions received and
115 expenditures made since the last report.
116 (19) "Legislative office" means the office of state senator, state representative, speaker of
117 the House of Representatives, president of the Senate, and the leader, whip, and assistant whip of
118 any party caucus in either house of the Legislature.
119 (20) "Legislative office candidate" means a person who:
120 (a) files a declaration of candidacy for the office of state senator or state representative;
121 (b) declares himself to be a candidate for, or actively campaigns for, the position of
122 speaker of the House of Representatives, president of the Senate, or the leader, whip, and assistant
123 whip of any party caucus in either house of the Legislature; and
124 (c) receives contributions, makes expenditures, or gives consent for any other person to
125 receive contributions or make expenditures to bring about the person's nomination or election to
126 a legislative office.
127 (21) "Newly registered political party" means an organization of voters that has complied
128 with the petition and organizing procedures of this chapter to become a registered political party.
129 (22) "Officeholder" means a person who holds a public office.
130 (23) "Party committee" means any committee organized by or authorized by the governing
131 board of a registered political party.
132 (24) "Person" means both natural and legal persons, including individuals, business
133 organizations, personal campaign committees, party committees, political action committees,
134 political issues committees, labor unions, and labor organizations.
135 (25) "Personal campaign committee" means the committee appointed by a candidate to act
136 for the candidate as provided in this chapter.
137 (26) (a) "Personal use" means an expenditure that provides a direct or indirect benefit of
138 any kind to a candidate, legislative office candidate, or officeholder that is not reasonably related
139 to political purposes.
140 (b) "Personal use" does not mean an expenditure for political purposes.
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142 or entities within or outside this state, that solicits or receives contributions from any other person,
143 group, or entity or makes expenditures for political purposes. A group or entity may not divide or
144 separate into units, sections, or smaller groups for the purpose of avoiding the financial reporting
145 requirements of this chapter, and substance shall prevail over form in determining the scope or size
146 of a political action committee.
147 (b) "Political action committee" includes groups affiliated with a registered political party
148 but not authorized or organized by the governing board of the registered political party that receive
149 contributions or makes expenditures for political purposes.
150 (c) "Political action committee" does not mean:
151 (i) a party committee;
152 (ii) any entity that provides goods or services to a candidate or committee in the regular
153 course of its business at the same price that would be provided to the general public;
154 (iii) an individual;
155 (iv) individuals who are related and who make contributions from a joint checking
156 account;
157 (v) a corporation; or
158 (vi) a personal campaign committee.
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160 registered political party to select candidates.
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162 or entities within or outside this state, that solicits or receives donations from any other person,
163 group, or entity or makes disbursements to influence, or to intend to influence, directly or
164 indirectly, any person to:
165 (i) assist in placing a statewide ballot proposition on the ballot, assist in keeping a
166 statewide ballot proposition off the ballot, or refrain from voting or vote for or vote against any
167 statewide ballot proposition; or
168 (ii) sign or refuse to sign an incorporation petition or refrain from voting, vote for, or vote
169 against any proposed incorporation in an incorporation election.
170 (b) "Political issues committee" does not mean:
171 (i) a registered political party or a party committee;
172 (ii) any entity that provides goods or services to an individual or committee in the regular
173 course of its business at the same price that would be provided to the general public;
174 (iii) an individual;
175 (iv) individuals who are related and who make contributions from a joint checking
176 account; or
177 (v) a corporation, except a corporation whose apparent purpose is to act as a political
178 issues committee.
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180 (i) a gift, subscription, unpaid or partially unpaid loan, advance, or deposit of money or
181 anything of value given to a political issues committee;
182 (ii) an express, legally enforceable contract, promise, or agreement to make a political
183 issues donation to influence the approval or defeat of any ballot proposition;
184 (iii) any transfer of funds received by a political issues committee from a reporting entity;
185 (iv) compensation paid by another reporting entity for personal services rendered without
186 charge to a political issues committee; and
187 (v) goods or services provided to or for the benefit of a political issues committee at less
188 than fair market value.
189 (b) "Political issues contribution" does not include:
190 (i) services provided without compensation by individuals volunteering a portion or all of
191 their time on behalf of a political issues committee; or
192 (ii) money lent to a political issues committee by a financial institution in the ordinary
193 course of business.
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195 (i) any payment from political issues contributions made for the purpose of influencing the
196 approval or the defeat of a statewide ballot proposition;
197 (ii) a purchase, payment, distribution, loan, advance, deposit, or gift of money made for
198 the purpose of influencing the approval or the defeat of a statewide ballot proposition;
199 (iii) an express, legally enforceable contract, promise, or agreement to make any political
200 issues expenditure;
201 (iv) compensation paid by a reporting entity for personal services rendered by a person
202 without charge to a political issues committee; or
203 (v) goods or services provided to or for the benefit of another reporting entity at less than
204 fair market value.
205 (b) "Political issues expenditure" does not include:
206 (i) services provided without compensation by individuals volunteering a portion or all of
207 their time on behalf of a political issues committee; or
208 (ii) money lent to a political issues committee by a financial institution in the ordinary
209 course of business.
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211 or tend to influence, directly or indirectly, any person to refrain from voting or to vote for or
212 against any candidate for public office at any caucus, political convention, primary, or election.
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214 laws.
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216 state treasurer, attorney general, state or local school board member, state senator, state
217 representative, speaker of the House of Representatives, president of the Senate, and the leader,
218 whip, and assistant whip of any party caucus in either house of the Legislature.
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220 an officeholder to defray the costs of functioning in a public office or aid the officeholder to
221 communicate with the officeholder's constituents:
222 (i) a gift, subscription, donation, unpaid or partially unpaid loan, advance, or deposit of
223 money or anything of value to an officeholder; or
224 (ii) goods or services provided at less than fair market value to or for the benefit of the
225 officeholder.
226 (b) "Public service assistance" does not include:
227 (i) anything provided by the state;
228 (ii) services provided without compensation by individuals volunteering a portion or all
229 of their time on behalf of an officeholder;
230 (iii) money lent to an officeholder by a financial institution in the ordinary course of
231 business;
232 (iv) news coverage or any publication by the news media; or
233 (v) any article, story, or other coverage as part of any regular publication of any
234 organization unless substantially all the publication is devoted to information about the
235 officeholder.
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237 individuals sharing a common occupation, interest, or association that contribute to a political
238 action committee or political issues committee and whose names can be obtained by contacting
239 the political action committee or political issues committee upon whose financial report they are
240 listed.
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242 [
243 Lobbyist Disclosure and Regulation Act.
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245 that is required by this chapter to file a statement of organization with the lieutenant governor's
246 office.
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248 that is required by this chapter to file a statement of organization with the lieutenant governor's
249 office.
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251 (a) participated in the last regular general election and polled a total vote equal to 2% or
252 more of the total votes cast for all candidates for the United States House of Representatives for
253 any of its candidates for any office; or
254 (b) has complied with the petition and organizing procedures of this chapter.
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257 committee, an officeholder, and a party committee, a political action committee, and a political
258 issues committee.
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260 board.
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262 or intangible asset that comprises the contribution.
263 (b) "Source" means, for political action committees and corporations, the political action
264 committee and the corporation as entities, not the contributors to the political action committee or
265 the owners or shareholders of the corporation.
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267 general, state auditor, and state treasurer.
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269 (a) files a declaration of candidacy for a state office; or
270 (b) receives contributions, makes expenditures, or gives consent for any other person to
271 receive contributions or make expenditures to bring about the person's nomination or election to
272 a state office.
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274 reporting entity's contributions and expenditures.
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276 expenditures from a political issues committee.
277 Section 2. Section 20A-11-201 is amended to read:
278 20A-11-201. State office candidate -- Separate bank account for campaign funds.
279 (1) (a) Each state office candidate or the candidate's personal campaign committee shall
280 deposit each contribution and public service assistance received in one or more separate campaign
281 accounts in a financial institution.
282 (b) (i) The state office candidate or the candidate's personal campaign committee may use
283 the monies in those accounts only for political purposes.
284 (ii) The state office candidate or the candidate's personal committee may not use the
285 monies in those accounts for personal use.
285a h (iii) NOTHING IN SUBSECTION (1)(b)(ii) REQUIRES THE LIEUTENANT GOVERNOR TO
285b INVESTIGATE, SANCTION, IMPOSE PENALTIES, SUBMIT FOR PROSECUTION, OR OTHERWISE
285c RESPOND TO AN ALLEGATION THAT A STATE OFFICE CANDIDATE HAS EXPENDED MONIES FROM
285d THE ACCOUNTS REQUIRED BY THIS SECTION FOR PERSONAL USE. h
286 (2) A state office candidate or the candidate's personal campaign committee may not
287 deposit or mingle any contributions received into a personal or business account.
288 (3) (a) If a person [
289 general election, or is no longer a state office candidate [
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291 withdrawal or elimination, dispose of monies remaining in the person's campaign account by:
292 (i) donating the monies to a registered political party or political action committee;
293 (ii) donating the monies to the state general fund;
294 (iii) expending the monies for political purposes;
295 (iv) donating the monies to a tax-exempt nonprofit entity;
296 (v) repaying documented loans to the state office candidate's campaign;
297 (vi) donating the monies to another candidate's campaign account;
298 (vii) transferring the monies to an escrow account for the person to use as a candidate for
299 public office within the next four years; or
300 (viii) some combination of Subsections (4)(a)(i) through (vii).
301 (b) After four years, if the person has not run for public office, the person shall expend the
302 monies in the escrow account according to the requirements of Subsection (3)(a).
303 (4) The person shall continue to file the year-end summary report required by Section
304 20A-11-203 until the statement of dissolution and final summary report required by Section
305 20A-11-205 are filed with the lieutenant governor.
306 Section 3. Section 20A-11-301 is amended to read:
307 20A-11-301. Legislative office candidate -- Campaign requirements.
308 (1) Each legislative office candidate shall deposit each contribution and public service
309 assistance received in one or more separate accounts in a financial institution that are dedicated
310 only to that purpose.
311 (2) A legislative office candidate may not deposit or mingle any contributions or public
312 service assistance received into a personal or business account.
313 (3) (a) A legislative office candidate may not make any political expenditures prohibited
314 by law.
315 (b) A legislative office candidate may not use monies in the accounts required by this
316 section for personal use.
316a h (c) NOTHING IN SUBSECTION (3)(b) REQUIRES THE LIEUTENANT GOVERNOR TO
316b INVESTIGATE, SANCTION, IMPOSE PENALTIES, SUBMIT FOR PROSECUTION, OR OTHERWISE
316c RESPOND TO AN ALLEGATION THAT A LEGISLATIVE OFFICE CANDIDATE HAS EXPENDED MONIES
316d FROM THE ACCOUNTS REQUIRED BY THIS SECTION FOR PERSONAL USE. h
317 (4) (a) If a person [
318 general election, or is no longer a legislative candidate [
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320 withdrawal or elimination, dispose of monies remaining in the person's campaign account by:
321 (i) donating the monies to a registered political party or political action committee;
322 (ii) donating the monies to the state general fund;
323 (iii) expending the monies for political purposes;
324 (iv) donating the monies to a tax-exempt nonprofit entity;
325 (v) repaying documented loans to the legislative candidate's campaign;
326 (vi) donating the monies to another candidate's campaign account;
327 (vii) transferring the monies to an escrow account for the person to use as a candidate for
328 public office within the next four years; or
329 (viii) some combination of Subsections (4)(a)(i) through (vii).
330 (b) After four years, if the person has not run for public office, the person shall expend the
331 monies in the escrow account according to the requirements of Subsection (4)(a).
332 (5) The person shall continue to file the year-end summary report required by Section
333 20A-11-302 until the statement of dissolution and final summary report required by Section
334 20A-11-304 are filed with the lieutenant governor.
335 Section 4. Section 20A-11-402 is amended to read:
336 20A-11-402. Officeholder financial reporting requirements -- Termination of duty
337 to report.
338 (1) An officeholder is active and subject to reporting requirements until the officeholder
339 has filed a statement of dissolution with the lieutenant governor stating that:
340 (a) the officeholder is no longer receiving contributions or public service assistance and
341 is no longer making expenditures;
342 (b) the ending balance on the last summary report filed is zero and the balance in the
343 separate bank account required by Sections 20A-11-201 and 20A-11-301 is zero; and
344 (c) a final summary report in the form required by Section 20A-11-401 showing a zero
345 balance is attached to the statement of dissolution.
346 (2) A statement of dissolution and a final summary report may be filed at any time.
347 (3) Each officeholder shall continue to file the year-end summary report required by
348 Section 20A-11-401 until the statement of dissolution and final summary report required by this
349 section are filed with the lieutenant governor.
350 (4) (a) When an officeholder leaves office, the person shall, within 60 calendar days of
351 leaving office, dispose of monies remaining in the person's campaign accounts required by
352 Sections 20A-11-201 and 20A-11-301 by:
353 (i) donating the monies to a registered political party or political action committee;
354 (ii) donating the monies to the state general fund;
355 (iii) expending the monies for political purposes;
356 (iv) donating the monies to a tax-exempt nonprofit entity;
357 (v) repaying documented loans to the officeholder's campaign;
358 (vi) donating the monies to another candidate's campaign account;
359 (vii) transferring the monies to an escrow account for the person to use as a candidate for
360 public office within the next four years; or
361 (viii) some combination of Subsections (4)(a)(i) through (vii).
362 (b) After four years, if the person has not run for public office, the person shall expend the
363 monies in the escrow account according to the requirements of Subsection (4)(a).
Legislative Review Note
as of 2-9-00 9:05 AM
A limited legal review of this legislation raises no obvious constitutional or statutory concerns.