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H.B. 301

             1     

CAMPAIGN FINANCE REFORM AMENDMENTS

             2     
2000 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: Ralph Becker

             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.
             141          [(26)] (27) (a) "Political action committee" means an entity, or any group of individuals
             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.
             159          [(27)] (28) "Political convention" means a county or state political convention held by a
             160      registered political party to select candidates.
             161          [(28)] (29) (a) "Political issues committee" means an entity, or any group of individuals
             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.
             179          [(29)] (30) (a) "Political issues contribution" means any of the following:
             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.
             194          [(30)] (31) (a) "Political issues expenditure" means any of the following:
             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.
             210          [(31)] (32) "Political purposes" means an act done with the intent or in a way to influence
             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.
             213          [(32)] (33) "Primary election" means any regular primary election held under the election


             214      laws.
             215          [(33)] (34) "Public office" means the office of governor, lieutenant governor, state auditor,
             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.
             219          [(34)] (35) (a) "Public service assistance" means the following when given or provided to
             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.
             236          [(35)] (36) "Publicly identified class of individuals" means a group of 50 or more
             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.
             241          [(36)] (37) "Receipts" means contributions and public service assistance.
             242          [(37)] (38) "Registered lobbyist" means a person registered under Title 36, Chapter 11,
             243      Lobbyist Disclosure and Regulation Act.
             244          [(38)] (39) "Registered political action committee" means any political action committee


             245      that is required by this chapter to file a statement of organization with the lieutenant governor's
             246      office.
             247          [(39)] (40) "Registered political issues committee" means any political issues committee
             248      that is required by this chapter to file a statement of organization with the lieutenant governor's
             249      office.
             250          [(40)] (41) "Registered political party" means an organization of voters that:
             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.
             255          [(41)] (42) "Report" means a verified financial statement.
             256          [(42)] (43) "Reporting entity" means a candidate, a candidate's personal campaign
             257      committee, an officeholder, and a party committee, a political action committee, and a political
             258      issues committee.
             259          [(43)] (44) "School board office" means the office of state school board or local school
             260      board.
             261          [(44)] (45) (a) "Source" means the person or entity that is the legal owner of the tangible
             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.
             266          [(45)] (46) "State office" means the offices of governor, lieutenant governor, attorney
             267      general, state auditor, and state treasurer.
             268          [(46)] (47) "State office candidate" means a person who:
             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.
             273          [(47)] (48) "Summary report" means the year end report containing the summary of a
             274      reporting entity's contributions and expenditures.
             275          [(48)] (49) "Supervisory board" means the individual or group of individuals that allocate


             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.
             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 [who] withdraws or is eliminated in a convention, primary, or regular
             289      general election, or is no longer a state office candidate [chooses not to expend the monies
             290      remaining in his campaign account], the person shall, within 60 calendar days of the date of
             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.
             317          (4) (a) If a person [who] withdraws or is eliminated in a convention, primary, or regular
             318      general election, or is no longer a legislative candidate [chooses not to expend the monies
             319      remaining in his campaign account], the person shall, within 60 calendar days of the date of the
             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.

Office of Legislative Research and General Counsel


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