Download Zipped Introduced WP 9 HB0049.ZIP
[Status][Bill Documents][Fiscal Note][Bills Directory]

H.B. 49

             1     

BAN ON GIFTS TO ELECTED OFFICIALS

             2     
2003 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: Ralph Becker

             5      This act modifies the Lobbyist Disclosure and Regulation Act. This act defines gifts and
             6      prohibits legislators from receiving certain gifts. This act repeals the existing section
             7      governing gifts. This act makes technical corrections.
             8      This act affects sections of Utah Code Annotated 1953 as follows:
             9      AMENDS:
             10          36-11-103, as last amended by Chapter 338, Laws of Utah 2000
             11          36-11-401, as last amended by Chapter 338, Laws of Utah 2000
             12          63-95-403, as renumbered and amended by Chapter 210, Laws of Utah 2000
             13          63A-1-105, as last amended by Chapter 176, Laws of Utah 2002
             14          63E-1-404, as enacted by Chapter 201, Laws of Utah 2001
             15      ENACTS:
             16          36-11-501, Utah Code Annotated 1953
             17          36-11-502, Utah Code Annotated 1953
             18      REPEALS:
             19          36-11-304, as enacted by Chapter 192, Laws of Utah 1995
             20      Be it enacted by the Legislature of the state of Utah:
             21          Section 1. Section 36-11-103 is amended to read:
             22           36-11-103. Licensing requirements.
             23          (1) (a) Before engaging in any lobbying, a lobbyist shall obtain a license from the
             24      lieutenant governor by completing the form required by this section.
             25          (b) The lieutenant governor shall issue licenses to qualified lobbyists.
             26          (c) The lieutenant governor shall prepare a Lobbyist License Application Form that
             27      includes:



             28          (i) a place for the lobbyist's name and business address;
             29          (ii) a place for the name and business address of each principal for whom the lobbyist
             30      works or is hired as an independent contractor;
             31          (iii) a place for the name and address of the person who paid or will pay the lobbyist's
             32      registration fee, if the fee is not paid by the lobbyist;
             33          (iv) a place for the lobbyist to disclose any elected or appointed position that the
             34      lobbyist holds in state or local government, if any;
             35          (v) a place for the lobbyist to disclose the types of expenditures for which the lobbyist
             36      will be reimbursed; and
             37          (vi) a certification to be signed by the lobbyist that certifies that the information
             38      provided in the form is true, accurate, and complete to the best of the lobbyist's knowledge and
             39      belief.
             40          (2) Each lobbyist who obtains a license under this section shall update the licensure
             41      information when the lobbyist accepts employment for lobbying by a new client.
             42          (3) (a) Except as provided in Subsection (4), the lieutenant governor shall grant a
             43      lobbying license to an applicant who:
             44          (i) files an application with the lieutenant governor that contains the information
             45      required by this section; and
             46          (ii) pays a $25 filing fee.
             47          (b) A license entitles a person to serve as a lobbyist on behalf of one or more principals
             48      and expires on December 31 of each even-numbered year.
             49          (4) (a) The lieutenant governor may disapprove an application for a lobbying license:
             50          (i) if the applicant has been convicted of violating Section 76-8-103 , 76-8-107 ,
             51      76-8-108 , or 76-8-303 within five years before the date of the lobbying license application;
             52          (ii) if the applicant has been convicted of violating Section 76-8-104 or 76-8-304
             53      within one year before the date of the lobbying license application;
             54          (iii) for the term of any suspension imposed under Section 36-11-401 ; or
             55          (iv) if, within one year before the date of the lobbying license application, the applicant
             56      has been found to have willingly and knowingly:
             57          (A) violated Section 36-11-103 , 36-11-201 , 36-11-301 , 36-11-302 , 36-11-303 ,
             58      [ 36-11-304 ,] 36-11-305 , [or] 36-11-403 , or 36-11-502 ; or



             59          (B) filed a document required by this chapter that the lobbyist knew contained
             60      materially false information or omitted material information.
             61          (b) An applicant may appeal the disapproval in accordance with the procedures
             62      established by the lieutenant governor under this chapter and Title 63, Chapter 46b,
             63      Administrative Procedures Act.
             64          (5) The lieutenant governor shall deposit license fees in the General Fund.
             65          (6) A principal need not obtain a license under this section, but if the principal makes
             66      expenditures to benefit a public official without using a lobbyist as an agent to confer those
             67      benefits, the principal shall disclose those expenditures as required by Sections 36-11-201 .
             68          (7) Government officers need not obtain a license under this section, but shall disclose
             69      any expenditures made to benefit public officials as required by Sections 36-11-201 .
             70          Section 2. Section 36-11-401 is amended to read:
             71           36-11-401. Penalties.
             72          (1) Any person who willfully and knowingly violates Section 36-11-103 , 36-11-201 ,
             73      36-11-301 , 36-11-302 , 36-11-303 , [36-11-304 ,] 36-11-305 , [or] 36-11-403 , or 36-11-502 is
             74      subject to the following penalties:
             75          (a) an administrative penalty of up to $1,000 for each violation; and
             76          (b) for each subsequent violation of that same section within 24 months, either:
             77          (i) an administrative penalty of up to $5,000; or
             78          (ii) suspension of the violator's lobbying license for up to one year, if the person is a
             79      lobbyist.
             80          (2) Any person who willfully and knowingly fails to file a financial report required by
             81      this chapter, omits material information from a license application form or financial report, or
             82      files false information on a license application form or financial report, is subject to the
             83      following penalties:
             84          (a) an administrative penalty of up to $1,000 for each violation; or
             85          (b) suspension of the violator's lobbying license for up to one year, if the person is a
             86      lobbyist.
             87          (3) Any person who willfully and knowingly fails to file a financial report required by
             88      this chapter on the date that it is due shall, in addition to the penalties, if any, imposed under
             89      Subsection (1) or (2), pay a penalty of up to $50 per day for each day that the report is late.


             90          (4) (a) When a lobbyist is convicted of violating Section 76-8-103 , 76-8-107 , 76-8-108 ,
             91      or 76-8-303 , the lieutenant governor shall suspend the lobbyist's license for up to five years
             92      from the date of the conviction.
             93          (b) When a lobbyist is convicted of violating Section 76-8-104 or 76-8-304 , the
             94      lieutenant governor shall suspend a lobbyist's license for up to one year from the date of
             95      conviction.
             96          (5) (a) Any person who willfully and knowingly violates Section 36-11-301 ,
             97      36-11-302 , or 36-11-303 is guilty of a class B misdemeanor.
             98          (b) The lieutenant governor shall suspend the lobbyist license of any person convicted
             99      under any of these sections for up to one year.
             100          (c) The suspension shall be in addition to any administrative penalties imposed by the
             101      lieutenant governor under this section.
             102          (d) Any person with evidence of a possible violation of this chapter may submit that
             103      evidence to the lieutenant governor for investigation and resolution.
             104          (6) Nothing in this chapter creates a third-party cause of action or appeal rights.
             105          Section 3. Section 36-11-501 is enacted to read:
             106     
Part 5. Gifts to Legislators

             107          36-11-501. Definitions.
             108          As used in this part:
             109          (1) (a) "Gift" means a transfer of real or personal property for less than fair and
             110      adequate consideration.
             111          (b) "Gift" does not mean:
             112          (i) a campaign contribution properly received and reported as required by Title 20A,
             113      Chapter 11, Campaign and Financial Reporting Requirements;
             114          (ii) compensation, food, beverages, entertainment, transportation, lodging, or other
             115      goods or services extended to a legislator by the legislator's private employer;
             116          (iii) a usual and customary commercial loan made in the ordinary course of business,
             117      without regard to the recipient's status as a legislator, by a person or institution authorized by
             118      law to engage in the business of making loans;
             119          (iv) unsolicited awards of appreciation, honorary degrees, or bona fide awards in
             120      recognition of public service in the form of a certificate, plaque, trophy, desk item, wall


             121      memento, or commemorative token of less than $50 value but only if the item is in a form that
             122      can not be readily converted to cash;
             123          (v) informational, educational, or promotional items, such as books, articles,
             124      periodicals, other written materials, audiotapes, videotapes, or other forms of communication
             125      with no substantial resale value and related to the performance of the recipient's official duties;
             126          (vi) a subscription to a legislative periodical;
             127          (vii) anything received from a person related by blood or marriage or a member of the
             128      legislator's household unless the donor is acting as an agent or intermediary for another person
             129      not so related;
             130          (viii) any devise or inheritance from a person related by blood or marriage or a member
             131      of the legislator's household unless the donor is acting as an agent or intermediary for another
             132      person not so related;
             133          (ix) a gift that is not used and, no later than 30 days after receipt, is:
             134          (A) returned to the donor; or
             135          (B) donated to a public body or to the Department of Administrative Services;
             136          (x) a gift or gifts from one member of the Legislature to another member of the
             137      Legislature;
             138          (xi) anything for which the legislator pays or gives full value;
             139          (xii) any service spontaneously extended to a legislator in an emergency situation;
             140          (xiii) items received from a bona fide charitable, professional, educational, or business
             141      organization to which the legislator belongs as a dues-paying member, if the items are given to
             142      all members of the organization without regard to individual members' status or positions held
             143      outside of the organization and if the dues paid are not inconsequential when compared to the
             144      items received;
             145          (xiv) funeral flowers or memorials to a church or a nonprofit organization given to
             146      honor a legislator, a person related to the legislator by blood or marriage, or to a member of the
             147      legislator's household;
             148          (xv) unsolicited flowers, plants, and floral arrangements valued at less than $50;
             149          (xvi) items valued at less than $50 for a wedding or 25th or 50th wedding anniversary
             150      celebration;
             151          (xvii) the cost of admission, attendance, or participation, and of food and beverages


             152      consumed, at a public policy activity to which all members of the Legislature or all members of
             153      a legislative committee, a legislative subcommittee, or a task force are invited;
             154          (xviii) the cost paid, reimbursed, raised, or obtained by or for a public official for
             155      attendance or participation, and for food and beverages consumed at, or in connection with, and
             156      activities offered at or in connection with, and funds, goods, and services provided at or in
             157      connection with, or for conducting, conventions, conferences, or other events sponsored or
             158      coordinated by multistate or national organizations of, or including, state governments, state
             159      legislatures, or state legislators; or
             160          (xix) travel and accommodations provided to a public official when the public official
             161      is representing the state in an official or ceremonial capacity, and travel and accommodations
             162      provided to a legislator or spouse for which prior approval has been obtained from the
             163      president or speaker, when the legislator is representing the Legislature, or a chamber of the
             164      Legislature, in an official or ceremonial capacity.
             165          (2) "Immediate family" means:
             166          (a) the public official's spouse; and
             167          (b) children or other persons living in the public official's household.
             168          Section 4. Section 36-11-502 is enacted to read:
             169          36-11-502. Gifts prohibited.
             170          A lobbyist, principal, or government officer may not offer or give a gift valued at more
             171      than $5 to any public official or member of the public official's immediate family.
             172          Section 5. Section 63-95-403 is amended to read:
             173           63-95-403. Penalties for violation.
             174          (1) A person who knowingly violates this part:
             175          (a) is guilty of a third degree felony if the combined value of any compensation or
             176      assets received by the person as a result of the violation is equal to or greater than $10,000; or
             177          (b) is guilty of a class A misdemeanor if the combined value of any compensation or
             178      assets received by the person as a result of the violation is less than $10,000.
             179          (2) (a) In addition to any penalty imposed under Subsection (1), a person that violates
             180      this part shall return to the successor of the quasi-governmental entity any compensation or
             181      assets received in violation of this part.
             182          (b) If the assets received by the person in violation of this part are no longer in the


             183      possession of the person, the person shall pay the successor of the quasi-governmental entity an
             184      amount equal to the fair market value of the asset at the time the person received the asset.
             185          (3) Notwithstanding [Subsection] Section 36-11-401 [(3)(a)], if a lobbyist violates
             186      Subsection 63-95-401 (2)(b)(i)[,]:
             187          (a) the lobbyist is guilty of the crime outlined in Subsection (1)[, which]; and
             188          (b) the crime shall be determined by the value of compensation or assets received by
             189      the lobbyist.
             190          Section 6. Section 63A-1-105 is amended to read:
             191           63A-1-105. Appointment of executive director -- Compensation.
             192          (1) The governor shall:
             193          (a) appoint the executive director with the consent of the Senate; and
             194          (b) establish the executive director's salary within the salary range fixed by the
             195      Legislature in Title 67, Chapter 22, State Officer Compensation.
             196          (2) The executive director shall serve at the pleasure of the governor.
             197          (3) For items donated to the state under Section 36-11-501 , the executive director shall
             198      dispose of each donated item by either:
             199          (a) assigning the item to a state agency for its official use; or
             200          (b) selling the item at a public sale and depositing the net proceeds from the sale into
             201      the General Fund.
             202          Section 7. Section 63E-1-404 is amended to read:
             203           63E-1-404. Penalties for violation.
             204          (1) A person who knowingly violates this part:
             205          (a) is guilty of a third degree felony if the combined value of any compensation or
             206      assets received by the person as a result of the violation is equal to or greater than $10,000; or
             207          (b) is guilty of a class A misdemeanor if the combined value of any compensation or
             208      assets received by the person as a result of the violation is less than $10,000.
             209          (2) (a) In addition to any penalty imposed under Subsection (1), a person that violates
             210      this part shall return to the successor of the independent entity any compensation or assets
             211      received in violation of this part.
             212          (b) If the assets received by the person in violation of this part are no longer in the
             213      possession of the person, the person shall pay the successor of the independent entity an


             214      amount equal to the fair market value of the asset at the time the person received the asset.
             215          (3) Notwithstanding [Subsection] Section 36-11-401 [(3)], if a lobbyist violates
             216      Subsection 63E-1-402 (2)(b)(i), the lobbyist is guilty of the crime outlined in Subsection (1),
             217      which crime shall be determined by the value of compensation or assets received by the
             218      lobbyist.
             219          Section 8. Repealer.
             220          This act repeals:
             221          Section 36-11-304, Offering gift or loan -- When prohibited.




Legislative Review Note
    as of 9-23-02 3:22 PM


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

Office of Legislative Research and General Counsel


[Bill Documents][Bills Directory]