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Second Substitute H.B. 94

Representative Patricia W. Jones proposes the following substitute bill:


             1     
BAN ON GIFTS TO ELECTED OFFICIALS

             2     
2006 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Patricia W. Jones

             5     
Senate Sponsor: Patrice M. Arent

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies the Lobbyist Disclosure and Regulation Act by banning certain gifts
             10      to public officials.
             11      Highlighted Provisions:
             12          This bill:
             13          .    defines gifts and prohibits public officials from receiving certain gifts; and
             14          .    repeals the existing section governing gifts.
             15      Monies Appropriated in this Bill:
             16          None
             17      Other Special Clauses:
             18          None
             19      Utah Code Sections Affected:
             20      AMENDS:
             21          36-11-103, as last amended by Chapter 27, Laws of Utah 2003
             22          36-11-401, as last amended by Chapter 338, Laws of Utah 2000
             23          63A-1-105, as last amended by Chapter 176, Laws of Utah 2002
             24          63E-1-404, as enacted by Chapter 201, Laws of Utah 2001
             25      ENACTS:


             26          36-11-501, Utah Code Annotated 1953
             27          36-11-502, Utah Code Annotated 1953
             28      REPEALS:
             29          36-11-304, as enacted by Chapter 192, Laws of Utah 1995
             30     
             31      Be it enacted by the Legislature of the state of Utah:
             32          Section 1. Section 36-11-103 is amended to read:
             33           36-11-103. Licensing requirements.
             34          (1) (a) Before engaging in any lobbying, a lobbyist shall obtain a license from the
             35      lieutenant governor by completing the form required by this section.
             36          (b) The lieutenant governor shall issue licenses to qualified lobbyists.
             37          (c) The lieutenant governor shall prepare a Lobbyist License Application Form that
             38      includes:
             39          (i) a place for the lobbyist's name and business address;
             40          (ii) a place for the name and business address of each principal for whom the lobbyist
             41      works or is hired as an independent contractor;
             42          (iii) a place for the name and address of the person who paid or will pay the lobbyist's
             43      registration fee, if the fee is not paid by the lobbyist;
             44          (iv) a place for the lobbyist to disclose any elected or appointed position that the
             45      lobbyist holds in state or local government, if any;
             46          (v) a place for the lobbyist to disclose the types of expenditures for which the lobbyist
             47      will be reimbursed; and
             48          (vi) a certification to be signed by the lobbyist that certifies that the information
             49      provided in the form is true, accurate, and complete to the best of the lobbyist's knowledge and
             50      belief.
             51          (2) Each lobbyist who obtains a license under this section shall update the licensure
             52      information when the lobbyist accepts employment for lobbying by a new client.
             53          (3) (a) Except as provided in Subsection (4), the lieutenant governor shall grant a
             54      lobbying license to an applicant who:
             55          (i) files an application with the lieutenant governor that contains the information
             56      required by this section; and


             57          (ii) pays a $25 filing fee.
             58          (b) A license entitles a person to serve as a lobbyist on behalf of one or more principals
             59      and expires on December 31 of each even-numbered year.
             60          (4) (a) The lieutenant governor may disapprove an application for a lobbying license:
             61          (i) if the applicant has been convicted of violating Section 76-8-103 , 76-8-107 ,
             62      76-8-108 , or 76-8-303 within five years before the date of the lobbying license application;
             63          (ii) if the applicant has been convicted of violating Section 76-8-104 or 76-8-304
             64      within one year before the date of the lobbying license application;
             65          (iii) for the term of any suspension imposed under Section 36-11-401 ; or
             66          (iv) if, within one year before the date of the lobbying license application, the applicant
             67      has been found to have willingly and knowingly:
             68          (A) violated Section 36-11-103 , 36-11-201 , 36-11-301 , 36-11-302 , 36-11-303 ,
             69      [ 36-11-304 ,] 36-11-305 , [or] 36-11-403 , or 36-11-502 ; or
             70          (B) filed a document required by this chapter that the lobbyist knew contained
             71      materially false information or omitted material information.
             72          (b) An applicant may appeal the disapproval in accordance with the procedures
             73      established by the lieutenant governor under this chapter and Title 63, Chapter 46b,
             74      Administrative Procedures Act.
             75          (5) The lieutenant governor shall deposit license fees in the General Fund.
             76          (6) A principal need not obtain a license under this section, but if the principal makes
             77      expenditures to benefit a public official without using a lobbyist as an agent to confer those
             78      benefits, the principal shall disclose those expenditures as required by Sections 36-11-201 .
             79          (7) Government officers need not obtain a license under this section, but shall disclose
             80      any expenditures made to benefit public officials as required by Sections 36-11-201 .
             81          (8) Surrender, cancellation, or expiration of a lobbyist license does not absolve the
             82      lobbyist of the duty to file the financial reports if the lobbyist is otherwise required to file the
             83      reports by Section 36-11-201 .
             84          Section 2. Section 36-11-401 is amended to read:
             85           36-11-401. Penalties.
             86          (1) Any person who willfully and knowingly violates Section 36-11-103 , 36-11-201 ,
             87      36-11-301 , 36-11-302 , 36-11-303 , [ 36-11-304 ,] 36-11-305 , [or] 36-11-403 , or 36-11-502 is


             88      subject to the following penalties:
             89          (a) an administrative penalty of up to $1,000 for each violation; and
             90          (b) for each subsequent violation of that same section within 24 months, either:
             91          (i) an administrative penalty of up to $5,000; or
             92          (ii) suspension of the violator's lobbying license for up to one year, if the person is a
             93      lobbyist.
             94          (2) Any person who willfully and knowingly fails to file a financial report required by
             95      this chapter, omits material information from a license application form or financial report, or
             96      files false information on a license application form or financial report, is subject to the
             97      following penalties:
             98          (a) an administrative penalty of up to $1,000 for each violation; or
             99          (b) suspension of the violator's lobbying license for up to one year, if the person is a
             100      lobbyist.
             101          (3) Any person who willfully and knowingly fails to file a financial report required by
             102      this chapter on the date that it is due shall, in addition to the penalties, if any, imposed under
             103      Subsection (1) or (2), pay a penalty of up to $50 per day for each day that the report is late.
             104          (4) (a) When a lobbyist is convicted of violating Section 76-8-103 , 76-8-107 , 76-8-108 ,
             105      or 76-8-303 , the lieutenant governor shall suspend the lobbyist's license for up to five years
             106      from the date of the conviction.
             107          (b) When a lobbyist is convicted of violating Section 76-8-104 or 76-8-304 , the
             108      lieutenant governor shall suspend a lobbyist's license for up to one year from the date of
             109      conviction.
             110          (5) (a) Any person who willfully and knowingly violates Section 36-11-301 ,
             111      36-11-302 , or 36-11-303 is guilty of a class B misdemeanor.
             112          (b) The lieutenant governor shall suspend the lobbyist license of any person convicted
             113      under any of these sections for up to one year.
             114          (c) The suspension shall be in addition to any administrative penalties imposed by the
             115      lieutenant governor under this section.
             116          (d) Any person with evidence of a possible violation of this chapter may submit that
             117      evidence to the lieutenant governor for investigation and resolution.
             118          (6) Nothing in this chapter creates a third-party cause of action or appeal rights.


             119          Section 3. Section 36-11-501 is enacted to read:
             120     
Part 5. Gifts

             121          36-11-501. Definitions.
             122          As used in this part:
             123          (1) (a) "Gift" means a transfer of real or personal property for less than fair and
             124      adequate consideration.
             125          (b) "Gift" does not mean:
             126          (i) a campaign contribution properly received and reported as required under Title 20A,
             127      Chapter 11, Campaign and Financial Reporting Requirements;
             128          (ii) compensation, food, beverages, entertainment, transportation, lodging, or other
             129      goods or services extended to a public official by a public official's employer;
             130          (iii) a usual and customary commercial loan made in the ordinary course of business;
             131          (iv) an award publicly presented in recognition of public service;
             132          (v) informational or educational items, such as books, articles, periodicals, other
             133      written materials, audiotapes, videotapes, or other forms of communication with no substantial
             134      resale value and related to the performance of the recipient's official duties;
             135          (vi) anything received from a person related by blood or marriage or a member of the
             136      public official's household unless the donor is acting as an agent or intermediary for another
             137      person not so related;
             138          (vii) a gift that is not used and, no later than 30 days after receipt, is:
             139          (A) returned to the donor; or
             140          (B) donated to a public body or to the Department of Administrative Services;
             141          (viii) a gift or gifts from one member of the Legislature to another member of the
             142      Legislature;
             143          (ix) anything for which the public official pays or gives full value;
             144          (x) any service spontaneously extended to a public official in an emergency situation;
             145          (xi) items received from a bona fide charitable, professional, educational, or business
             146      organization to which the public official belongs as a dues-paying member, if:
             147          (A) the items are given to all members of the organization without regard to individual
             148      members' status or positions held outside of the organization; and
             149          (B) the dues paid are not inconsequential when compared to the items received;


             150          (xii) funeral flowers or memorials to a church or a nonprofit organization given to
             151      honor a public official, a person related to the public official by blood or marriage, or to a
             152      member of the public official's household;
             153          (xiii) the cost of admission, attendance, or participation, and of food and beverages
             154      consumed, at a public policy activity to which all members of the Legislature or all members of
             155      a legislative committee, a legislative subcommittee, or a task force are invited;
             156          (xiv) the cost paid, reimbursed, raised, or obtained by or for a public official in
             157      connection with a convention, conference, or other event sponsored or coordinated by
             158      multistate or national organizations of, or including, state governments, state legislatures, or
             159      state legislators for:
             160          (A) attendance at, participation in, or conducting the event;
             161          (B) food or beverages consumed at, or in connection with, the event;
             162          (C) activities offered at, or in connection with, the event; or
             163          (D) funds, goods, or services provided at, or in connection with, the event.
             164          (2) "Public official's immediate family" means:
             165          (a) the public official's spouse; and
             166          (b) children or other persons living in the public official's household.
             167          Section 4. Section 36-11-502 is enacted to read:
             168          36-11-502. Gifts prohibited.
             169          A lobbyist, principal, or government officer may not offer or give a gift valued at more
             170      than $5 to any public official or member of the public official's immediate family.
             171          Section 5. Section 63A-1-105 is amended to read:
             172           63A-1-105. Appointment of executive director -- Compensation.
             173          (1) The governor shall:
             174          (a) appoint the executive director with the consent of the Senate; and
             175          (b) establish the executive director's salary within the salary range fixed by the
             176      Legislature in Title 67, Chapter 22, State Officer Compensation.
             177          (2) The executive director shall serve at the pleasure of the governor.
             178          (3) For items donated to the state under Section 36-11-501 , the executive director shall
             179      dispose of each donated item by either:
             180          (a) assigning the item to a state agency for its official use; or


             181          (b) selling the item at a public sale and depositing the net proceeds from the sale into
             182      the General Fund.
             183          Section 6. Section 63E-1-404 is amended to read:
             184           63E-1-404. Penalties for violation.
             185          (1) A person who knowingly violates this part:
             186          (a) is guilty of a third degree felony if the combined value of any compensation or
             187      assets received by the person as a result of the violation is equal to or greater than $10,000; or
             188          (b) is guilty of a class A misdemeanor if the combined value of any compensation or
             189      assets received by the person as a result of the violation is less than $10,000.
             190          (2) (a) In addition to any penalty imposed under Subsection (1), a person that violates
             191      this part shall return to the successor of the independent entity any compensation or assets
             192      received in violation of this part.
             193          (b) If the assets received by the person in violation of this part are no longer in the
             194      possession of the person, the person shall pay the successor of the independent entity an
             195      amount equal to the fair market value of the asset at the time the person received the asset.
             196          (3) Notwithstanding [Subsection] Section 36-11-401 [(3)], if a lobbyist violates
             197      Subsection 63E-1-402 (2)(b)(i)[,]:
             198          (a) the lobbyist is guilty of the crime outlined in Subsection (1)[, which]; and
             199          (b) the crime shall be determined by the value of compensation or assets received by
             200      the lobbyist.
             201          Section 7. Repealer.
             202          This bill repeals:
             203          Section 36-11-304, Offering gift or loan -- When prohibited.


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